SF 3001

Conference Committee Report - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to education; providing for prekindergarten through grade 12 education,
including general education, education excellence, special programs, libraries,
and self-sufficiency and lifelong learning; amending Minnesota Statutes 2006,
sections 13.32, by adding a subdivision; 120A.05, subdivision 10a; 120B.02;
120B.023, subdivision 2; 120B.131, subdivision 2; 120B.31, subdivision
4; 122A.07, subdivisions 2, 3; 122A.60; 122A.61, subdivision 1; 123B.14,
subdivision 7; 123B.36, subdivision 1; 123B.37, subdivision 1; 123B.77,
subdivision 3; 123B.81, subdivisions 3, 5; 123B.83, subdivision 3; 124D.10,
subdivisions 2a, 4a, 6a, 7, 8, 23; 124D.522; 124D.55; 124D.60, subdivision
1; 125A.744, subdivision 3; 125B.07, by adding a subdivision; 126C.40,
subdivision 6; 134.31, subdivision 6, by adding a subdivision; Minnesota
Statutes 2007 Supplement, sections 120B.021, subdivision 1; 120B.15; 120B.30,
subdivisions 1, 1a; 123B.81, subdivision 4; 124D.095, subdivision 4; 124D.10,
subdivisions 4, 23a; 125A.56; 126C.10, subdivision 34; 127A.49, subdivisions
2, 3; 134.31, subdivision 4a.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

GENERAL EDUCATION

Section 1.

Minnesota Statutes 2006, section 123B.14, subdivision 7, is amended to read:

Subd. 7.

Clerk records.

The clerk shall keep a record of all meetings of the
district and the board in books provided by the district for that purpose. The clerk shall,
within three days after an election, notify all persons elected of their election. By deleted text begin August deleted text end
new text begin September new text end 15 of each year the clerk shall file with the board a report of the revenues,
expenditures and balances in each fund for the preceding fiscal year. The report together
with vouchers and supporting documents shall subsequently be examined by a public
accountant or the state auditor, either of whom shall be paid by the district, as provided
in section 123B.77, subdivision 3. The board shall by resolution approve the report or
require a further or amended report. By deleted text begin August deleted text end new text begin September new text end 15 of each year, the clerk shall
make and transmit to the commissioner certified reports, showing:

deleted text begin (1) The condition and value of school property;
deleted text end

deleted text begin (2) deleted text end new text begin (1) new text end The revenues and expenditures in detail, and such other financial information
required by law, rule, or as may be called for by the commissioner;

deleted text begin (3) deleted text end new text begin (2) new text end The length of school term and the enrollment and attendance by grades; and

deleted text begin (4) deleted text end new text begin (3) new text end Such other items of information as may be called for by the commissioner.

The clerk shall enter in the clerk's record book copies of all reports and of the
teachers' term reports, as they appear in the registers, and of the proceedings of any
meeting as furnished by the clerk pro tem, and keep an itemized account of all the
expenses of the district. The clerk shall furnish to the auditor of the proper county, by
deleted text begin October 10 deleted text end new text begin September 30 new text end of each year, an attested copy of the clerk's record, showing the
amount of deleted text begin money deleted text end new text begin proposed property taxes new text end voted by the district or the board for school
purposes; draw and sign all orders upon the treasurer for the payment of money for bills
allowed by the board for salaries of officers and for teachers' wages and all claims, to be
countersigned by the chair. Such orders must state the consideration, payee, and the
fund and the clerk shall take a receipt therefor. Teachers' wages shall have preference in
the order in which they become due, and no money applicable for teachers' wages shall
be used for any other purpose, nor shall teachers' wages be paid from any fund except
that raised or apportioned for that purpose.

Sec. 2.

Minnesota Statutes 2006, section 123B.77, subdivision 3, is amended to read:

Subd. 3.

Statement for comparison and correction.

(a) By November 30 of the
calendar year of the submission of the unaudited financial data, the district must provide to
the commissioner audited financial data for the preceding fiscal year. The audit must be
conducted in compliance with generally accepted governmental auditing standards, the
federal Single Audit Act, and the Minnesota legal compliance guide issued by the Office
of the State Auditor. An audited financial statement prepared in a form which will allow
comparison with and correction of material differences in the unaudited financial data
shall be submitted to the commissioner and the state auditor by December 31. The audited
financial statement must also provide a statement of assurance pertaining to uniform
financial accounting and reporting standards compliance and a copy of the management
letter submitted to the district by the school district's auditor.

(b) By deleted text begin January deleted text end new text begin February new text end 15 of the calendar year following the submission of the
unaudited financial data, the commissioner shall convert the audited financial data
required by this subdivision into the consolidated financial statement format required
under subdivision 1a and publish the information on the department's Web site.

Sec. 3.

Minnesota Statutes 2006, section 123B.81, subdivision 3, is amended to read:

Subd. 3.

Debt verification.

The commissioner shall establish a uniform auditing or
other verification procedure for districts to determine whether a statutory operating debt
exists in any Minnesota school district deleted text begin as of June 30, 1977. This procedure must identify
all interfund transfers made during fiscal year 1977 from a fund included in computing
statutory operating debt to a fund not included in computing statutory operating debt deleted text end .
The standards for this uniform auditing or verification procedure must be promulgated
by the state board pursuant to chapter 14. If a district applies to the commissioner for
a statutory operating debt verification deleted text begin or if the unaudited financial statement for the
school year ending June 30, 1977 reveals that a statutory operating debt might exist deleted text end , the
commissioner shall require a verification of the amount of the statutory operating debt
which actually does exist.

Sec. 4.

Minnesota Statutes 2007 Supplement, section 123B.81, subdivision 4, is
amended to read:

Subd. 4.

Debt elimination.

If an audit or other verification procedure conducted
pursuant to subdivision 3 determines that a statutory operating debt exists, a district
must follow the procedures set forth in deleted text begin this deleted text end section new text begin 123B.83 new text end to eliminate this statutory
operating debt.

Sec. 5.

Minnesota Statutes 2006, section 123B.81, subdivision 5, is amended to read:

Subd. 5.

Certification of debt.

The commissioner shall certify the amount of
statutory operating debt for each district. deleted text begin Prior to June 30, 1979, the commissioner may,
on the basis of corrected figures, adjust the total amount of statutory operating debt
certified for any district.
deleted text end

Sec. 6.

Minnesota Statutes 2006, section 123B.83, subdivision 3, is amended to read:

Subd. 3.

Failure to limit expenditures.

If a district does not limit its expenditures in
accordance with this section, the commissioner may so notify the appropriate committees
of the legislature by no later than deleted text begin January 1 deleted text end new text begin February 15 new text end of the year following the end
of that fiscal year.

Sec. 7.

Minnesota Statutes 2006, section 124D.10, subdivision 6a, is amended to read:

Subd. 6a.

Audit report.

new text begin (a) new text end The charter school must submit an audit report to the
commissioner by December 31 each year.

new text begin (b) new text end The charter school, with the assistance of the auditor conducting the audit, must
include with the report a copy of all charter school agreements for corporate management
services. If the entity that provides the professional services to the charter school is
exempt from taxation under section 501 of the Internal Revenue Code of 1986, that entity
must file with the commissioner by February 15 a copy of the annual return required under
section 6033 of the Internal Revenue Code of 1986.

new text begin (c) new text end If the commissioner receives deleted text begin as part of the deleted text end new text begin an new text end audit report deleted text begin a management letter deleted text end
indicating that a material weakness exists in the financial reporting systems of a charter
school, the charter school must submit a written report to the commissioner explaining
how the material weakness will be resolved.

new text begin (d) new text end Upon the request of an individual, the charter school must make available in a
timely fashion the minutes of meetings of members, the board of directors, and committees
having any of the authority of the board of directors, and statements showing the financial
result of all operations and transactions affecting income and surplus during the school's
last annual accounting period and a balance sheet containing a summary of its assets and
liabilities as of the closing date of the accounting period.

Sec. 8.

Minnesota Statutes 2006, section 124D.10, subdivision 8, is amended to read:

Subd. 8.

State and local requirements.

(a) A charter school shall meet all
deleted text begin applicable deleted text end new text begin federal, new text end state new text begin , new text end and local health and safety requirements new text begin applicable to school
districts new text end .

(b) A school sponsored by a school board may be located in any district, unless the
school board of the district of the proposed location disapproves by written resolution.

(c) A charter school must be nonsectarian in its programs, admission policies,
employment practices, and all other operations. A sponsor may not authorize a charter
school or program that is affiliated with a nonpublic sectarian school or a religious
institution.

(d) Charter schools must not be used as a method of providing education or
generating revenue for students who are being home-schooled.

(e) The primary focus of a charter school must be to provide a comprehensive
program of instruction for at least one grade or age group from five through 18 years
of age. Instruction may be provided to people younger than five years and older than
18 years of age.

(f) A charter school may not charge tuition.

(g) A charter school is subject to and must comply with chapter 363A and section
121A.04.

(h) A charter school is subject to and must comply with the Pupil Fair Dismissal
Act, sections 121A.40 to 121A.56, and the Minnesota Public School Fee Law, sections
123B.34 to 123B.39.

(i) A charter school is subject to the same financial audits, audit procedures, and
audit requirements as a district. Audits must be conducted in compliance with generally
accepted governmental auditing standards, the Federal Single Audit Act, if applicable,
and section 6.65. A charter school is subject to and must comply with sections 15.054;
118A.01; 118A.02; 118A.03; 118A.04; 118A.05; 118A.06; 123B.52, subdivision 5;
471.38; 471.391; 471.392; 471.425; 471.87; 471.88, subdivisions 1, 2, 3, 4, 5, 6, 12, 13,
and 15; 471.881; and 471.89. The audit must comply with the requirements of sections
123B.75 to 123B.83, except to the extent deviations are necessary because of the program
at the school. Deviations must be approved by the commissioner. The Department
of Education, state auditor, or legislative auditor may conduct financial, program, or
compliance audits. A charter school determined to be in statutory operating debt under
sections 123B.81 to 123B.83 must submit a plan under section 123B.81, subdivision 4.

(j) A charter school is a district for the purposes of tort liability under chapter 466.

(k) A charter school must comply with sections 13.32; 120A.22, subdivision 7;
121A.75; and 260B.171, subdivisions 3 and 5.

(l) A charter school is subject to the Pledge of Allegiance requirement under section
121A.11, subdivision 3.

Sec. 9.

Minnesota Statutes 2006, section 124D.10, subdivision 23, is amended to read:

Subd. 23.

Causes for nonrenewal or termination of charter school contract.

(a)
The duration of the contract with a sponsor must be for the term contained in the contract
according to subdivision 6. The sponsor may or may not renew a contract at the end of the
term for any ground listed in paragraph (b) new text begin or if the sponsor decides to no longer sponsor
any charter schools new text end . A sponsor may unilaterally terminate a contract during the term of the
contract for any ground listed in paragraph (b). At least 60 days before not renewing or
terminating a contract, the sponsor shall notify the board of directors of the charter school
of the proposed action in writing. The notice shall state the grounds for the proposed
action in reasonable detail and that the charter school's board of directors may request
in writing an informal hearing before the sponsor within 14 days of receiving notice of
nonrenewal or termination of the contract. Failure by the board of directors to make a
written request for a hearing within the 14-day period shall be treated as acquiescence to
the proposed action. Upon receiving a timely written request for a hearing, the sponsor
shall give reasonable notice to the charter school's board of directors of the hearing date.
The sponsor shall conduct an informal hearing before taking final action. The sponsor
shall take final action to renew or not renew a contract by the last day of classes in the
school year. deleted text begin If the sponsor is a local board, deleted text end The school's board of directors may appeal the
sponsor's decision to the commissioner. new text begin Any appeal of the commissioner's decision must
be made to the Court of Appeals.
new text end

(b) A contract may be terminated or not renewed upon any of the following grounds:

(1) failure to meet the requirements for pupil performance contained in the contract;

(2) failure to meet generally accepted standards of fiscal management;

(3) violations of law; or

(4) other good cause shown.

If a contract is terminated or not renewed under this paragraph, the school must be
dissolved according to the applicable provisions of chapter 308A or 317A, except when
the commissioner approves the decision of a different eligible sponsor to authorize the
charter school.

(c) If at the end of a contract term, either the sponsor or the charter school board of
directors wants to voluntarily terminate new text begin or not renew new text end the contract, a change in sponsors
is allowed if the commissioner approves the decision of a different eligible sponsor to
authorize the charter school. new text begin The commissioner shall consider whether the charter school
and prospective new sponsor have addressed any outstanding issues raised by the previous
sponsor when determining whether to grant the change of sponsor. new text end The party intending to
terminate the contract must notify the other party and the commissioner of its intent at
least 90 days before the date on which the contract ends. The sponsor that is a party to the
existing contract at least must inform the approved different eligible sponsor about the
fiscal and student performance of the school. If no different eligible sponsor is approved,
the school must be dissolved according to applicable law and the terms of the contract.

(d) The commissioner, after providing reasonable notice to the board of directors
of a charter school and the existing sponsor, and after providing an opportunity for a
public hearing, may terminate the existing sponsorial relationship if the charter school
has a history of:

(1) financial mismanagement; or

(2) repeated violations of the law.

new text begin Any appeal of the commissioner's decision must be made to the Court of Appeals.
new text end

Sec. 10.

Minnesota Statutes 2007 Supplement, section 126C.10, subdivision 34,
is amended to read:

Subd. 34.

Basic alternative teacher compensation aid.

(a) For fiscal years
2007 deleted text begin and later deleted text end , new text begin 2008, and 2009, new text end the basic alternative teacher compensation aid for a
school district with a plan approved under section 122A.414, subdivision 2b, equals deleted text begin 65 deleted text end
new text begin 73.1 new text end percent of the alternative teacher compensation revenue under section 122A.415,
subdivision 1. The basic alternative teacher compensation aid for an intermediate school
district or charter school with a plan approved under section 122A.414, subdivisions 2a
and 2b, if the recipient is a charter school, equals $260 times the number of pupils enrolled
in the school on October 1 of the previous fiscal year, or on October 1 of the current fiscal
year for a charter school in the first year of operation, times the ratio of the sum of the
alternative teacher compensation aid and alternative teacher compensation levy for all
participating school districts to the maximum alternative teacher compensation revenue
for those districts under section 122A.415, subdivision 1.

new text begin (b) For fiscal years 2010 and later, the basic alternative teacher compensation aid
for a school district with a plan approved under section 122A.414, subdivision 2b, equals
65 percent of the alternative teacher compensation revenue under section 122A.415,
subdivision 1. The basic alternative teacher compensation aid for an intermediate school
district or charter school with a plan approved under section 122A.414, subdivisions 2a
and 2b, if the recipient is a charter school, equals $260 times the number of pupils enrolled
in the school on October 1 of the previous fiscal year, or on October 1 of the current fiscal
year for a charter school in the first year of operation, times the ratio of the sum of the
alternative teacher compensation aid and alternative teacher compensation levy for all
participating school districts to the maximum alternative teacher compensation revenue
for those districts under section 122A.415, subdivision 1.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end Notwithstanding paragraphs (a) and (b) and section 122A.415, subdivision
1, the state total basic alternative teacher compensation aid entitlement must not exceed
$75,636,000 for fiscal year 2007 and later. The commissioner must limit the amount
of alternative teacher compensation aid approved under section 122A.415 so as not to
exceed these limits.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 11.

Minnesota Statutes 2006, section 126C.40, subdivision 6, is amended to read:

Subd. 6.

Lease purchase; installment buys.

(a) Upon application to, and approval
by, the commissioner in accordance with the procedures and limits in subdivision 1,
paragraphs (a) and (b), a district, as defined in this subdivision, may:

(1) purchase real or personal property under an installment contract or may lease
real or personal property with an option to purchase under a lease purchase agreement, by
which installment contract or lease purchase agreement title is kept by the seller or vendor
or assigned to a third party as security for the purchase price, including interest, if any; and

(2) annually levy the amounts necessary to pay the district's obligations under the
installment contract or lease purchase agreement.

(b) The obligation created by the installment contract or the lease purchase
agreement must not be included in the calculation of net debt for purposes of section
475.53, and does not constitute debt under other law. An election is not required in
connection with the execution of the installment contract or the lease purchase agreement.

(c) The proceeds of the levy authorized by this subdivision must not be used to
acquire a facility to be primarily used for athletic or school administration purposes.

(d) For the purposes of this subdivision, "district" means:

(1) a new text begin racially isolated new text end school district new text begin or a school district with a racially identifiable
school new text end required to have a deleted text begin comprehensive deleted text end new text begin desegregation or integration new text end plan deleted text begin for the
elimination of segregation deleted text end new text begin under Minnesota Rules, parts 3535.0100 to 3535.0180, which
is eligible for revenue under section 124D.86, subdivision 3, clause (1), (2), or (3),
and new text end whose plan has been determined by the commissioner to be in compliance with
Department of Education rules relating to equality of educational opportunity and school
desegregation and, for a district eligible for revenue under section 124D.86, subdivision 3,
clause (4) new text begin or (5) new text end , where the acquisition of property under this subdivision is determined by
the commissioner to contribute to the implementation of the desegregation plan; or

(2) a school district that participates in a joint program for interdistrict desegregation
with a district defined in clause (1) if the facility acquired under this subdivision is to
be primarily used for the joint program and the commissioner determines that the joint
programs are being undertaken to implement the districts' desegregation plan.

(e) Notwithstanding subdivision 1, the prohibition against a levy by a district to lease
or rent a district-owned building to itself does not apply to levies otherwise authorized
by this subdivision.

(f) For the purposes of this subdivision, any references in subdivision 1 to building
or land shall include personal property.

Sec. 12.

Minnesota Statutes 2007 Supplement, section 127A.49, subdivision 2, is
amended to read:

Subd. 2.

Abatements.

Whenever by virtue of chapter 278, sections 270C.86,
375.192, or otherwise, the net tax capacity or referendum market value of any district for
any taxable year is changed after the taxes for that year have been spread by the county
auditor and the local tax rate as determined by the county auditor based upon the original
net tax capacity is applied upon the changed net tax capacities, the county auditor shall,
prior to February 1 of each year, certify to the commissioner of education the amount of
any resulting net revenue loss that accrued to the district during the preceding year. Each
year, the commissioner shall pay an abatement adjustment to the district in an amount
calculated according to the provisions of this subdivision. This amount shall be deducted
from the amount of the levy authorized by section 126C.46. The amount of the abatement
adjustment must be the product of:

(1) the net revenue loss as certified by the county auditor, times

(2) the ratio of:

(i) the sum of the amounts of the district's certified levy in the third preceding year
according to the following:

(A) section 123B.57, if the district received health and safety aid according to that
section for the second preceding year;

(B) section 124D.20, if the district received aid for community education programs
according to that section for the second preceding year;

(C) section 124D.135, subdivision 3, if the district received early childhood family
education aid according to section 124D.135 for the second preceding year;

(D) section 126C.17, subdivision 6, if the district received referendum equalization
aid according to that section for the second preceding year;

deleted text begin (E) section 126C.13, if the district received general education aid according to
section 126C.13, subdivision 4, paragraph (b), clause (1), of that section in the second
preceding year;
deleted text end

deleted text begin (F) deleted text end new text begin (E) new text end section 126C.10, subdivision 13a, if the district received operating capital aid
according to section 126C.10, subdivision 13b, in the second preceding year;

deleted text begin (G) deleted text end new text begin (F) new text end section 126C.10, subdivision 29, if the district received equity aid according
to section 126C.10, subdivision 30, in the second preceding year;

deleted text begin (H) deleted text end new text begin (G) new text end section 126C.10, subdivision 32, if the district received transition aid
according to section 126C.10, subdivision 33, in the second preceding year;

deleted text begin (I) deleted text end new text begin (H) new text end section 123B.53, subdivision 5, if the district received debt service
equalization aid according to section 123B.53, subdivision 6, in the second preceding year;

deleted text begin (J) deleted text end new text begin (I) new text end section 124D.22, subdivision 3, if the district received school-age care aid
according to section 124D.22, subdivision 4, in the second preceding year;

deleted text begin (K) deleted text end new text begin (J) new text end section 123B.591, subdivision 3, if the district received deferred maintenance
aid according to section 123B.591, subdivision 4, in the second preceding year; and

deleted text begin (L) deleted text end new text begin (K) new text end section 126C.10, subdivision 35, if the district received alternative teacher
compensation equalization aid according to section 126C.10, subdivision 36, paragraph
(a), in the second preceding year; to

(ii) the total amount of the district's certified levy in the third preceding December,
plus or minus auditor's adjustments.

Sec. 13.

Minnesota Statutes 2007 Supplement, section 127A.49, subdivision 3, is
amended to read:

Subd. 3.

Excess tax increment.

(a) If a return of excess tax increment is made to a
district pursuant to sections 469.176, subdivision 2, and 469.177, subdivision 9, or upon
decertification of a tax increment district, the school district's aid and levy limitations
must be adjusted for the fiscal year in which the excess tax increment is paid under the
provisions of this subdivision.

(b) An amount must be subtracted from the district's aid for the current fiscal year
equal to the product of:

(1) the amount of the payment of excess tax increment to the district, times

(2) the ratio of:

(i) the sum of the amounts of the district's certified levy for the fiscal year in which
the excess tax increment is paid according to the following:

(A) section 123B.57, if the district received health and safety aid according to that
section for the second preceding year;

(B) section 124D.20, if the district received aid for community education programs
according to that section for the second preceding year;

(C) section 124D.135, subdivision 3, if the district received early childhood family
education aid according to section 124D.135 for the second preceding year;

(D) section 126C.17, subdivision 6, if the district received referendum equalization
aid according to that section for the second preceding year;

deleted text begin (E) section 126C.13, if the district received general education aid according to
section 126C.13, subdivision 4, paragraph (b), clause (1), of that section in the second
preceding year;
deleted text end

deleted text begin (F) deleted text end new text begin (E) new text end section 126C.10, subdivision 13a, if the district received operating capital aid
according to section 126C.10, subdivision 13b, in the second preceding year;

deleted text begin (G) deleted text end new text begin (F) new text end section 126C.10, subdivision 29, if the district received equity aid according
to section 126C.10, subdivision 30, in the second preceding year;

deleted text begin (H) deleted text end new text begin (G) new text end section 126C.10, subdivision 32, if the district received transition aid
according to section 126C.10, subdivision 33, in the second preceding year;

deleted text begin (I) deleted text end new text begin (H) new text end section 123B.53, subdivision 5, if the district received debt service
equalization aid according to section 123B.53, subdivision 6, in the second preceding year;

deleted text begin (J) deleted text end new text begin (I) new text end section 124D.22, subdivision 3, if the district received school-age care aid
according to section 124D.22, subdivision 4, in the second preceding year;

deleted text begin (K) deleted text end new text begin (J) new text end section 123B.591, subdivision 3, if the district received deferred maintenance
aid according to section 123B.591, subdivision 4, in the second preceding year; and

deleted text begin (L) deleted text end new text begin (K) new text end section 126C.10, subdivision 35, if the district received alternative teacher
compensation equalization aid according to section 126C.10, subdivision 36, paragraph
(a), in the second preceding year; to

(ii) the total amount of the district's certified levy for the fiscal year, plus or minus
auditor's adjustments.

(c) An amount must be subtracted from the school district's levy limitation for the
next levy certified equal to the difference between:

(1) the amount of the distribution of excess increment; and

(2) the amount subtracted from aid pursuant to clause (a).

If the aid and levy reductions required by this subdivision cannot be made to the aid
for the fiscal year specified or to the levy specified, the reductions must be made from
aid for subsequent fiscal years, and from subsequent levies. The school district must use
the payment of excess tax increment to replace the aid and levy revenue reduced under
this subdivision.

(d) This subdivision applies only to the total amount of excess increments received
by a district for a calendar year that exceeds $25,000.

ARTICLE 2

EDUCATION EXCELLENCE

Section 1.

Minnesota Statutes 2006, section 13.32, is amended by adding a subdivision
to read:

new text begin Subd. 11. new text end

new text begin Improving instruction. new text end

new text begin Education data may be shared by and between
the Department of Education and the Office of Higher Education as authorized by Code of
Federal Regulations, title 34, section 99.31(a)(6), to analyze instruction in school districts
for purposes of improvement.
new text end

Sec. 2.

Minnesota Statutes 2006, section 120B.02, is amended to read:

120B.02 EDUCATIONAL EXPECTATIONS FOR MINNESOTA'S
STUDENTS.

(a) The legislature is committed to establishing rigorous academic standards for
Minnesota's public school students. To that end, the commissioner shall adopt in rule
statewide academic standards. The commissioner shall not prescribe in rule or otherwise
the delivery system, classroom assessments, or form of instruction that school sites must
use. For purposes of this chapter, a school site is a separate facility, or a separate program
within a facility that a local school board recognizes as a school site for funding purposes.

(b) All commissioner actions regarding the rule must be premised on the following:

(1) the rule is intended to raise academic expectations for students, teachers, and
schools;

(2) any state action regarding the rule must evidence consideration of school district
autonomy; and

(3) the Department of Education, with the assistance of school districts, must make
available information about all state initiatives related to the rule to students and parents,
teachers, and the general public in a timely format that is appropriate, comprehensive, and
readily understandable.

(c) When fully implemented, the requirements for high school graduation in
Minnesota must require students to satisfactorily complete, as determined by the school
district, the course credit requirements under section 120B.024 and deleted text begin : deleted text end new text begin successfully pass
graduation examinations as required under section 120B.30.
new text end

deleted text begin (1) for students enrolled in grade 8 before the 2005-2006 school year, to pass the
basic skills test requirements; and
deleted text end

deleted text begin (2) for students enrolled in grade 8 in the 2005-2006 school year and later, to pass
the Minnesota Comprehensive Assessments Second Edition (MCA-IIs).
deleted text end

(d) The commissioner shall periodically review and report on the state's assessment
process.

(e) School districts are not required to adopt specific provisions of the federal
School-to-Work programs.

Sec. 3.

Minnesota Statutes 2007 Supplement, section 120B.021, subdivision 1, is
amended to read:

Subdivision 1.

Required academic standards.

The following subject areas are
required for statewide accountability:

(1) language arts;

(2) mathematics;

(3) science;

(4) social studies, including history, geography, economics, and government and
citizenship;

(5) health and physical education, for which locally developed academic standards
apply; and

(6) the arts, for which statewide or locally developed academic standards apply, as
determined by the school district. Public elementary and middle schools must offer at least
three and require at least two of the following four arts areas: dance; music; theater; and
visual arts. Public high schools must offer at least three and require at least one of the
following five arts areas: media arts; dance; music; theater; and visual arts.

The commissioner must submit proposed standards in science and social studies to
the legislature by February 1, 2004.

For purposes of applicable federal law, the academic standards for language arts,
mathematics, and science apply to all public school students, deleted text begin except the very few students
with extreme cognitive or physical impairments for whom an individualized education
plan team has determined that the required academic standards are inappropriate. An
individualized education plan team that makes this determination must establish alternative
standards deleted text end new text begin with appropriate alternate achievement standards based on these academic
standards for students with individualized education plans as described under federal law new text end .

A school district, no later than the 2007-2008 school year, must adopt graduation
requirements that meet or exceed state graduation requirements established in law or
rule. A school district that incorporates these state graduation requirements before the
2007-2008 school year must provide students who enter the 9th grade in or before
the 2003-2004 school year the opportunity to earn a diploma based on existing locally
established graduation requirements in effect when the students entered the 9th grade.
District efforts to develop, implement, or improve instruction or curriculum as a result
of the provisions of this section must be consistent with sections 120B.10, 120B.11,
and 120B.20.

The commissioner must include the contributions of Minnesota American Indian
tribes and communities as they relate to the academic standards during the review and
revision of the required academic standards.

Sec. 4.

Minnesota Statutes 2006, section 120B.023, subdivision 2, is amended to read:

Subd. 2.

Revisions and reviews required.

(a) The commissioner of education must
revise and appropriately embed technology and information literacy standards consistent
with recommendations from school media specialists into the state's academic standards
and graduation requirements and implement a review cycle for state academic standards
and related benchmarks, consistent with this subdivision. During each review cycle, the
commissioner also must examine the alignment of each required academic standard and
related benchmark with the knowledge and skills students need for college readiness and
advanced work in the particular subject area.

(b) The commissioner in the 2006-2007 school year must revise and align the state's
academic standards and high school graduation requirements in mathematics to require
that students satisfactorily complete the revised mathematics standards, beginning in the
2010-2011 school year. Under the revised standards:

(1) students must satisfactorily complete an algebra I credit by the end of eighth
grade; and

(2) students scheduled to graduate in the 2014-2015 school year or later must
satisfactorily complete an algebra II credit or its equivalent.

The commissioner also must ensure that the statewide mathematics assessments
administered to students in grades 3 through 8 deleted text begin and 11 deleted text end beginning in the 2010-2011 school
year are aligned with the state academic standards in mathematics. new text begin The commissioner
must ensure that new text end the statewide deleted text begin 11th grade deleted text end mathematics deleted text begin test deleted text end new text begin assessment new text end administered to
students deleted text begin under clause (2) deleted text end new text begin in grade 11 new text end beginning in the 2013-2014 school year deleted text begin must
include deleted text end new text begin is aligned with state academic standards in mathematics, including new text end algebra II test
items deleted text begin that are aligned with corresponding state academic standards in mathematics deleted text end . The
commissioner must implement a review of the academic standards and related benchmarks
in mathematics beginning in the 2015-2016 school year.

(c) The commissioner in the 2007-2008 school year must revise and align the state's
academic standards and high school graduation requirements in the arts to require that
students satisfactorily complete the revised arts standards beginning in the 2010-2011
school year. The commissioner must implement a review of the academic standards and
related benchmarks in arts beginning in the 2016-2017 school year.

(d) The commissioner in the 2008-2009 school year must revise and align the state's
academic standards and high school graduation requirements in science to require that
students satisfactorily complete the revised science standards, beginning in the 2011-2012
school year. new text begin The commissioner also must ensure that the statewide science assessments
administered to students as described under section 120B.30, subdivision 1a, beginning
in the 2011-2012 school year are aligned with the state academic standards in science.
new text end Under the revised standards, students scheduled to graduate in the 2014-2015 school year
or later must satisfactorily complete a chemistry or physics credit. The commissioner
must implement a review of the academic standards and related benchmarks in science
beginning in the 2017-2018 school year.

(e) The commissioner in the 2009-2010 school year must revise and align the state's
academic standards and high school graduation requirements in language arts to require
that students satisfactorily complete the revised language arts standards beginning in the
2012-2013 school year. new text begin The commissioner also must ensure that the statewide language
arts assessments administered to students in grades 3 through 8 and grade 10 beginning
in the 2012-2013 school year are aligned with the state academic standards in language
arts. new text end The commissioner must implement a review of the academic standards and related
benchmarks in language arts beginning in the 2018-2019 school year.

(f) The commissioner in the 2010-2011 school year must revise and align the state's
academic standards and high school graduation requirements in social studies to require
that students satisfactorily complete the revised social studies standards beginning in the
2013-2014 school year. The commissioner must implement a review of the academic
standards and related benchmarks in social studies beginning in the 2019-2020 school year.

(g) School districts and charter schools must revise and align local academic
standards and high school graduation requirements in health, physical education, world
languages, and career and technical education to require students to complete the revised
standards beginning in a school year determined by the school district or charter school.
School districts and charter schools must formally establish a periodic review cycle for
the academic standards and related benchmarks in health, physical education, world
languages, and career and technical education.

Sec. 5.

Minnesota Statutes 2006, section 120B.131, subdivision 2, is amended to read:

Subd. 2.

Reimbursement for examination fees.

The state may reimburse
college-level examination program (CLEP) fees for a Minnesota public or nonpublic high
school student who has successfully completed one or more college-level courses in high
school in the subject matter of each examination in the following subjects: composition
and literature, mathematics and science, social sciences and history, foreign languages, and
business and humanities. deleted text begin The state may reimburse each student for up to six examination
fees. deleted text end The commissioner shall establish application procedures and a process and schedule
for fee reimbursements. The commissioner must give priority to reimburse the CLEP
examination fees of students of low-income families.

Sec. 6.

Minnesota Statutes 2007 Supplement, section 120B.15, is amended to read:

120B.15 GIFTED AND TALENTED STUDENTS PROGRAMS.

(a) School districts may identify students, locally develop programs, provide
staff development, and evaluate programs to provide gifted and talented students with
challenging educational programs.

(b) School districts may adopt guidelines for assessing and identifying students for
participation in gifted and talented programs. The guidelines should include the use of:

(1) multiple and objective criteria; deleted text begin and
deleted text end

(2) assessments and procedures that are valid and reliable, fair, and based on current
theory and research deleted text begin . deleted text end new text begin ; and
new text end

new text begin (3) an identification appeals process.
new text end

(c) School districts must adopt procedures for the academic acceleration of gifted
and talented students. These procedures must include how the district will:

(1) assess a student's readiness and motivation for acceleration; and

(2) match the level, complexity, and pace of the curriculum to a student to achieve
the best type of academic acceleration for that student.

Sec. 7.

Minnesota Statutes 2007 Supplement, section 120B.30, subdivision 1, is
amended to read:

Subdivision 1.

Statewide testing.

(a) The commissioner, with advice from experts
with appropriate technical qualifications and experience and stakeholders, consistent with
subdivision 1a, shall include in the comprehensive assessment system, for each grade
level to be tested, state-constructed tests developed from and aligned with the state's
required academic standards under section 120B.021 and administered annually to all
students in grades 3 through 8 and at the high school level. A state-developed test in a
subject other than writing, developed after the 2002-2003 school year, must include both
machine-scoreable and constructed response questions. The commissioner shall establish
one or more months during which schools shall administer the tests to students each
school year. new text begin Schools selected for stand-alone state field testing or other national sampling
by the department must participate as requested. Superintendents or charter school
directors may appeal in writing to the commissioner of education or the commissioner's
designee for exemption from a selected field test if undue hardship is demonstrated. new text end For
students enrolled in grade 8 before the 2005-2006 school year, only Minnesota basic
skills tests in reading, mathematics, and writing shall fulfill students' basic skills testing
requirements for a passing state notation. The passing scores of basic skills tests in reading
and mathematics are the equivalent of 75 percent correct for students entering grade 9 in
1997 and thereafter, as based on the first uniform test administration of February 1998.

(b) For students enrolled in grade 8 in the 2005-2006 school year and later, only the
following options shall fulfill students' state graduation test requirements:

(1) for reading and mathematics:

(i) obtaining an achievement level equivalent to or greater than proficient as
determined through a standard setting process on the Minnesota comprehensive
assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing
score as determined through a standard setting process on the graduation-required
assessment for diploma in grade 10 for reading and grade 11 for mathematics or
subsequent retests;

(ii) achieving a passing score as determined through a standard setting process on the
state-identified language proficiency test in reading and the mathematics test for English
language learners or the graduation-required assessment for diploma equivalent of those
assessments for students designated as English language learners;

(iii) achieving an individual passing score on the graduation-required assessment
for diploma as determined by appropriate state guidelines for students with an individual
education plan or 504 plan;

(iv) obtaining achievement level equivalent to or greater than proficient as
determined through a standard setting process on the state-identified alternate assessment
or assessments in grade 10 for reading and grade 11 for mathematics for students with
an individual education plan; or

(v) achieving an individual passing score on the state-identified alternate assessment
or assessments as determined by appropriate state guidelines for students with an
individual education plan; and

(2) for writing:

(i) achieving a passing score on the graduation-required assessment for diploma;

(ii) achieving a passing score as determined through a standard setting process on
the state-identified language proficiency test in writing for students designated as English
language learners;

(iii) achieving an individual passing score on the graduation-required assessment
for diploma as determined by appropriate state guidelines for students with an individual
education plan or 504 plan; or

(iv) achieving an individual passing score on the state-identified alternate assessment
or assessments as determined by appropriate state guidelines for students with an
individual education plan.

(c) The 3rd through 8th grade and high school level test results shall be available
to districts for diagnostic purposes affecting student learning and district instruction and
curriculum, and for establishing educational accountability. The commissioner must
disseminate to the public the test results upon receiving those results.

(d) State tests must be constructed and aligned with state academic standards. The
testing process and the order of administration shall be determined by the commissioner.
The statewide results shall be aggregated at the site and district level, consistent with
subdivision 1a.

(e) In addition to the testing and reporting requirements under this section, the
commissioner shall include the following components in the statewide public reporting
system:

(1) uniform statewide testing of all students in grades 3 through 8 and at the high
school level that provides appropriate, technically sound accommodations, alternate
assessments, or exemptions consistent with applicable federal law, only with parent or
guardian approval, for those very few students for whom the student's individual education
plan team under sections 125A.05 and 125A.06 determines that the general statewide test
is inappropriate for a student, or for a limited English proficiency student under section
124D.59, subdivision 2;

(2) educational indicators that can be aggregated and compared across school
districts and across time on a statewide basis, including average daily attendance, high
school graduation rates, and high school drop-out rates by age and grade level;

(3) state results on the American College Test; and

(4) state results from participation in the National Assessment of Educational
Progress so that the state can benchmark its performance against the nation and other
states, and, where possible, against other countries, and contribute to the national effort
to monitor achievement.

Sec. 8.

Minnesota Statutes 2007 Supplement, section 120B.30, subdivision 1a, is
amended to read:

Subd. 1a.

Statewide and local assessments; results.

(a) The commissioner must
develop reading, mathematics, and science assessments aligned with state academic
standards that districts and sites must use to monitor student growth toward achieving
those standards. The commissioner must not develop statewide assessments for academic
standards in social studies, health and physical education, and the arts. The commissioner
must require:

(1) annual reading and mathematics assessments in grades 3 through 8 and at the
high school level for the 2005-2006 school year and later; and

(2) annual science assessments in one grade in the grades 3 through 5 span, the
grades 6 through deleted text begin 9 deleted text end new text begin 8 new text end span, and a life sciences assessment in the grades deleted text begin 10 deleted text end new text begin 9 new text end through 12
span for the 2007-2008 school year and later.

(b) The commissioner must ensure that all statewide tests administered to elementary
and secondary students measure students' academic knowledge and skills and not students'
values, attitudes, and beliefs.

(c) Reporting of assessment results must:

(1) provide timely, useful, and understandable information on the performance of
individual students, schools, school districts, and the state;

(2) include, by no later than the 2008-2009 school year, a value-added component
that is in addition to a measure for student achievement growth over time; and

(3)(i) for students enrolled in grade 8 before the 2005-2006 school year, determine
whether students have met the state's basic skills requirements; and

(ii) for students enrolled in grade 8 in the 2005-2006 school year and later, determine
whether students have met the state's academic standards.

(d) Consistent with applicable federal law and subdivision 1, paragraph (d), clause
(1), the commissioner must include appropriate, technically sound accommodations or
alternative assessments for the very few students with disabilities for whom statewide
assessments are inappropriate and for students with limited English proficiency.

(e) A school, school district, and charter school must administer statewide
assessments under this section, as the assessments become available, to evaluate student
progress in achieving the academic standards. If a state assessment is not available, a
school, school district, and charter school must determine locally if a student has met
the required academic standards. A school, school district, or charter school may use a
student's performance on a statewide assessment as one of multiple criteria to determine
grade promotion or retention. A school, school district, or charter school may use a high
school student's performance on a statewide assessment as a percentage of the student's
final grade in a course, or place a student's assessment score on the student's transcript new text begin ,
except as required in paragraph (f) new text end .

new text begin (f) A school, district, or charter school must place a student's assessment score
for grade 9 writing, grade 10 language arts, and grade 11 mathematics on the student's
high school transcript.
new text end

Sec. 9.

Minnesota Statutes 2006, section 120B.31, subdivision 4, is amended to read:

Subd. 4.

Statistical adjustments.

In developing policies and assessment processes
to hold schools and districts accountable for high levels of academic standards under
section 120B.021, the commissioner shall aggregate student data over time to report
student performance levels measured at the school district deleted text begin , regional, deleted text end or statewide level.
When collecting and reporting the data, the commissioner shall deleted text begin : (1) acknowledge the
impact of significant demographic factors such as residential instability, the number of
single parent families, parents' level of education, and parents' income level on school
outcomes; and (2) deleted text end organize and report the data so that state and local policy makers can
understand the educational implications of changes in districts' demographic profiles over
time. Any report the commissioner disseminates containing summary data on student
performance must integrate student performance and the demographic factors that strongly
correlate with that performance.

Sec. 10.

Minnesota Statutes 2006, section 122A.07, subdivision 2, is amended to read:

Subd. 2.

Eligibility; board composition.

Except for the representatives of higher
education and the public, to be eligible for appointment to the Board of Teaching a person
must be a teacher currently teaching in a Minnesota school and fully licensed for the
position held and have at least five years teaching experience in Minnesota, including the
two years immediately preceding nomination and appointment. Each nominee, other than
a public nominee, must be selected on the basis of professional experience and knowledge
of teacher education, accreditation, and licensure. The board must be composed of:

(1) six teachers who are currently teaching in a Minnesota school new text begin or who were
teaching at the time of the appointment new text end , at least four of whom must be teaching in a
public school;

(2) one higher education representative, who must be a faculty member preparing
teachers;

(3) one school administrator; and

(4) three members of the public, two of whom must be present or former members
of school boards.

Sec. 11.

Minnesota Statutes 2006, section 122A.07, subdivision 3, is amended to read:

Subd. 3.

Vacant position.

new text begin With the exception of a teacher who retires from
teaching, new text end the position of a member who leaves Minnesota or whose employment status
changes to a category different from that from which appointed is deemed vacant.

Sec. 12.

Minnesota Statutes 2006, section 122A.60, is amended to read:

122A.60 STAFF DEVELOPMENT PROGRAM.

Subdivision 1.

Staff development committee.

A school board must use the revenue
authorized in section 122A.61 for deleted text begin in-service deleted text end education deleted text begin for deleted text end programs under section
120B.22, subdivision 2, or for staff development new text begin and teacher training new text end plans under this
section. The board must establish an advisory staff development committee to develop the
plan, assist site professional development teams in developing a site plan consistent with
the goals of the plan, and evaluate staff development efforts at the site level. A majority
of the advisory committee and the site professional development team must be teachers
representing various grade levels, subject areas, and special education. The advisory
committee must also include nonteaching staff, parents, and administrators.

Subd. 1a.

Effective staff development activities.

(a) Staff development activities
must new text begin be aligned with the district and school site staff development plans, based on student
achievement data, focused on student learning goals and used in the classroom setting.
Activities must new text end :

(1) focus on the school classroom and deleted text begin research-based deleted text end new text begin scientifically based research
new text end strategies that improve student learning;

(2) provide opportunities for teachers to practice and improve their instructional
skills over time new text begin and receive instructional-based observations using objective
standards-based assessments to assist in the professional growth process new text end ;

(3) provide new text begin regular new text end opportunities for teachers to use student data as part of their
daily work to increase student achievement;

(4) enhance teacher content knowledge and instructional skills;

(5) align with state and local academic standards;

(6) provide new text begin job embedded or integrated professional development new text end opportunities
new text begin during teacher contract day new text end to build professional relationships, foster collaboration among
principals and staff deleted text begin who provide instruction deleted text end new text begin to identify instructional strategies to meet
student learning goals, plan for instruction, practice new teaching strategies, review
the results of implementing strategies new text end , and provide opportunities for teacher-to-teacher
new text begin coaching and new text end mentoring; and

(7) align with the plan of the district or site for deleted text begin an alternative teacher professional
pay system deleted text end new text begin those participating in an alternative professional pay system under section
122A.414 new text end .

Staff development activities may new text begin also new text end include curriculum development and curriculum
training programs, and activities that provide teachers and other members of site-based
teams training to enhance team performance. The school district also may implement other
staff development activities required by law and activities associated with professional
teacher compensation models.

(b) Release time provided for teachers to supervise students on field trips and school
activities, or independent tasks not associated with enhancing the teacher's knowledge
and instructional skills, such as preparing report cards, calculating grades, or organizing
classroom materials, may not be counted as staff development time that is financed with
staff development reserved revenue under section 122A.61.

Subd. 2.

Contents of the plan.

The plan must new text begin be based on student achievement and
new text end include new text begin student learning goals, new text end the staff development outcomes under subdivision 3, the
means to achieve the outcomes, and procedures for evaluating progress at each school
site toward meeting education outcomes.

Subd. 3.

Staff development outcomes.

The advisory staff development committee
must adopt a staff development plan for new text begin increasing teacher effectiveness and new text end improving
student achievement. The plan must be consistent with education outcomes that the
school board determines. The plan must include ongoing staff development activities that
contribute toward continuous improvement in achievement of the following goals:

(1) improve student achievement of state and local education standards in all areas
of the curriculum by using best practices methods new text begin and scientifically based research new text end ;

(2) effectively meet the needs of a diverse student population, including at-risk
children, children with disabilities, and gifted children, within the regular classroom
and other settings;

(3) provide an inclusive curriculum for a racially, ethnically, and culturally diverse
student population that is consistent with the state education diversity rule and the district's
education diversity plan;

(4) improve staff collaboration and develop mentoring and peer coaching programs
for teachers deleted text begin new to the school or district deleted text end new text begin in their first five years of teaching new text end ;

(5) effectively teach and model violence prevention policy and curriculum that
address early intervention alternatives, issues of harassment, and teach nonviolent
alternatives for conflict resolution; and

(6) provide teachers and other members of site-based management teams with
appropriate management and financial management skills.

Subd. 4.

Staff development report.

(a) By October deleted text begin 15 deleted text end new text begin 1 new text end of each year, the district
and site staff development committees shall write and submit a report of staff development
activities and expenditures for the previous year, in the form and manner determined by
the commissioner. The report, signed by the district superintendent and staff development
chair, must include assessment and evaluation data indicating progress toward district and
site staff development goals based on teaching and learning outcomes, including the
percentage of teachers and other staff involved in instruction who participate in effective
staff development activities under subdivision 3.

(b) The report must break down expenditures for:

(1) curriculum development and curriculum training programs; and

(2) staff development training models, workshops, and conferences, and the cost of
releasing teachers or providing substitute teachers for staff development purposes.

The report also must indicate whether the expenditures were incurred at the district
level or the school site level, and whether the school site expenditures were made possible
by grants to school sites that demonstrate exemplary use of allocated staff development
revenue. These expenditures must be reported using the uniform financial and accounting
and reporting standards.

(c) The commissioner shall report the staff development progress and expenditure
data to the house of representatives and senate committees having jurisdiction over
education by February 15 each year.

Sec. 13.

Minnesota Statutes 2006, section 122A.61, subdivision 1, is amended to read:

Subdivision 1.

Staff development revenue.

A district is required to reserve
an amount equal to at least two percent of the basic revenue under section 126C.10,
subdivision 2, for deleted text begin in-service deleted text end education deleted text begin for deleted text end programs under section 120B.22, subdivision 2,
deleted text begin for deleted text end new text begin with the primary purpose of creating and implementing district and school site new text end staff
development plans deleted text begin , including deleted text end new text begin . Funds may also be used to support new text end plans for challenging
instructional activities and experiences under section 122A.60, deleted text begin and for curriculum
development and programs, other in-service education, teachers' workshops, teacher
conferences, the cost of substitute teachers staff development purposes, deleted text end preservice and
in-service education for special education professionals and paraprofessionals, and other
related costs for staff development efforts. A district may annually waive the requirement
to reserve their basic revenue under this section if a majority vote of the licensed teachers
in the district and a majority vote of the school board agree to a resolution to waive the
requirement. A district in statutory operating debt is exempt from reserving basic revenue
according to this section. Districts may expend an additional amount of unreserved
revenue for staff development based on their needs. With the exception of amounts
reserved for staff development from revenues allocated directly to school sites, the board
must initially allocate 50 percent of the reserved revenue to each school site in the district
on a per teacher basis, which must be retained by the school site until used. The board may
retain 25 percent to be used for district wide staff development efforts. The remaining
25 percent of the revenue must be used to make grants to school sites for best practices
methods. A grant may be used for any purpose authorized under section 120B.22,
subdivision 2, 122A.60 deleted text begin , or for the costs of curriculum development and programs, other
in-service education, teachers' workshops, teacher conferences, substitute teachers for
staff development purposes, and other staff development efforts, and determined by
the site professional development team deleted text end . The site professional development team must
demonstrate to the school board the extent to which staff at the site have met the outcomes
of the program. The board may withhold a portion of initial allocation of revenue if the
staff development outcomes are not being met.

Sec. 14.

Minnesota Statutes 2007 Supplement, section 124D.095, subdivision 4,
is amended to read:

Subd. 4.

Online learning parameters.

(a) An online learning student must receive
academic credit for completing the requirements of an online learning course or program.
Secondary credits granted to an online learning student must be counted toward the
graduation and credit requirements of the enrolling district. An online learning provider
must make available to the enrolling district the course syllabus, standard alignment,
content outline, assessment requirements, and contact information for supplemental online
courses taken by students in the enrolling district. The enrolling district must apply the
same graduation requirements to all students, including online learning students, and
must continue to provide nonacademic services to online learning students. If a student
completes an online learning course or program that meets or exceeds a graduation
standard or grade progression requirement at the enrolling district, that standard or
requirement is met. The enrolling district must use the same criteria for accepting online
learning credits or courses as it does for accepting credits or courses for transfer students
under section 124D.03, subdivision 9. The enrolling district may reduce the course
schedule of an online learning student in proportion to the number of online learning
courses the student takes from an online learning provider that is not the enrolling district.

(b) An online learning student may:

(1) enroll in supplemental online learning courses during a single school year to a
maximum of 50 percent of the student's full schedule of courses per term. A student may
exceed the supplemental online learning registration limit if the enrolling district grants
permission for supplemental online learning enrollment above the limit, or if an agreement
is made between the enrolling district and the online learning provider for instructional
services;

(2) complete course work at a grade level that is different from the student's current
grade level; and

(3) enroll in additional courses with the online learning provider under a separate
agreement that includes terms for payment of any tuition or course fees.

(c) An online learning student has the same access to the computer hardware and
education software available in a school as all other students in the enrolling district. An
online learning provider must assist an online learning student whose family qualifies
for the education tax credit under section 290.0674 to acquire computer hardware and
educational software for online learning purposes.

(d) An enrolling district may offer online learning to its enrolled students. Such
online learning does not generate online learning funds under this section. An enrolling
district that offers online learning only to its enrolled students is not subject to the
reporting requirements or review criteria under subdivision 7 new text begin , unless the enrolling district
is a full-time online provider new text end . A teacher with a Minnesota license must assemble and
deliver instruction to enrolled students receiving online learning from an enrolling district.
The delivery of instruction occurs when the student interacts with the computer or the
teacher and receives ongoing assistance and assessment of learning. The instruction may
include curriculum developed by persons other than a teacher with a Minnesota license.

(e) An online learning provider deleted text begin that is not the deleted text end new text begin , excluding an new text end enrolling district new text begin exempt
under paragraph (d), new text end is subject to the reporting requirements and review criteria under
subdivision 7. A teacher with a Minnesota license must assemble and deliver instruction
to online learning students. The delivery of instruction occurs when the student interacts
with the computer or the teacher and receives ongoing assistance and assessment of
learning. The instruction may include curriculum developed by persons other than a
teacher with a Minnesota license. Unless the commissioner grants a waiver, a teacher
providing online learning instruction must not instruct more than 40 students in any one
online learning course or program.

(f) To enroll in more than 50 percent of the student's full schedule of courses per term
in online learning, the student must qualify to exceed the supplemental online learning
registration limit under paragraph (b) or apply for enrollment to an approved full-time
online learning program following appropriate procedures in subdivision 3, paragraph (a).
Full-time online learning students may enroll in classes at a local school per contract for
instructional services between the online learning provider and the school district.

Sec. 15.

Minnesota Statutes 2006, section 124D.10, subdivision 2a, is amended to read:

Subd. 2a.

Charter School Advisory Council.

(a) A Charter School Advisory
Council is established under section 15.059 except that the term for each council member
shall be three years. The advisory council is composed of seven members from throughout
the state who have demonstrated experience with or interest in charter schools. The
members of the council shall be appointed by the commissioner. The advisory council
shall bring to the attention of the commissioner any matters related to charter schools
that the council deems necessary and shall:

(1) encourage school boards to make full use of charter school opportunities;

(2) encourage the creation of innovative schools;

(3) provide leadership and support for charter school sponsors to increase the
innovation in and the effectiveness, accountability, and fiscal soundness of charter schools;

(4) serve an ombudsman function in facilitating the operations of new and existing
charter schools;

(5) promote timely financial management training for newly elected members of
a charter school board of directors and ongoing training for other members of a charter
school board of directors; and

(6) facilitate compliance with auditing and other reporting requirements. The
advisory council shall refer all its proposals to the commissioner who shall provide time
for reports from the council.

(b) The Charter School Advisory Council under this subdivision deleted text begin expires June 30,
2007 deleted text end new text begin does not expire and the expiration date provided in section 15.059, subdivision
5, does not apply to this section new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from June 30, 2007.
new text end

Sec. 16.

Minnesota Statutes 2007 Supplement, section 124D.10, subdivision 4, is
amended to read:

Subd. 4.

Formation of school.

(a) A sponsor may authorize one or more licensed
teachers under section 122A.18, subdivision 1, to operate a charter school subject to
approval by the commissioner. A board must vote on charter school application for
sponsorship no later than 90 days after receiving the application. The school must be
organized and operated as a cooperative under chapter 308A or nonprofit corporation
under chapter 317A and the provisions under the applicable chapter shall apply to the
school except as provided in this section. Notwithstanding sections 465.717 and 465.719,
a school district may create a corporation for the purpose of creating a charter school.

(b) Before the operators may form and operate a school, the sponsor must file an
affidavit new text begin and application new text end with the commissioner stating its intent to authorize a charter
school. The affidavit new text begin and application new text end must state the terms and conditions under which the
sponsor would authorize a charter school and how the sponsor intends to oversee the fiscal
and student performance of the charter school and to comply with the terms of the written
contract between the sponsor and the charter school board of directors under subdivision
6 new text begin in the form and manner prescribed by the commissioner new text end . The commissioner must
approve or disapprove the sponsor's proposed authorization within 90 days of receipt of
the affidavit new text begin and application new text end . Failure to obtain commissioner approval precludes a sponsor
from authorizing the charter school that was the subject of the affidavit new text begin and application new text end .

(c) The operators authorized to organize and operate a school, before entering into
a contract or other agreement for professional or other services, goods, or facilities,
must incorporate as a cooperative under chapter 308A or as a nonprofit corporation
under chapter 317A and must establish a board of directors composed of at least five
members until a timely election for members of the charter school board of directors is
held according to the school's articles and bylaws. A charter school board of directors
must be composed of at least five members. Any staff members who are employed at the
school, including teachers providing instruction under a contract with a cooperative, and
all parents of children enrolled in the school may participate in the election for members
of the school's board of directors. Licensed teachers employed at the school, including
teachers providing instruction under a contract with a cooperative, must be a majority
of the members of the board of directors before the school completes its third year of
operation, unless the commissioner waives the requirement for a majority of licensed
teachers on the board. Board of director meetings must comply with chapter 13D.

(d) The granting or renewal of a charter by a sponsoring entity must not be
conditioned upon the bargaining unit status of the employees of the school.

(e) A sponsor may authorize the operators of a charter school to expand the
operation of the charter school to additional sites or to add additional grades at the school
beyond those described in the sponsor's application as approved by the commissioner only
after submitting a supplemental application to the commissioner in a form and manner
prescribed by the commissioner. The supplemental application must provide evidence that:

(1) the expansion of the charter school is supported by need and projected enrollment;

(2) the charter school is fiscally sound;

(3) the sponsor supports the expansion; and

(4) the building of the additional site meets all health and safety requirements to
be eligible for lease aid.

(f) The commissioner annually must provide timely financial management training
to newly elected members of a charter school board of directors and ongoing training to
other members of a charter school board of directors. Training must address ways to:

(1) proactively assess opportunities for a charter school to maximize all available
revenue sources;

(2) establish and maintain complete, auditable records for the charter school;

(3) establish proper filing techniques;

(4) document formal actions of the charter school, including meetings of the charter
school board of directors;

(5) properly manage and retain charter school and student records;

(6) comply with state and federal payroll record-keeping requirements; and

(7) address other similar factors that facilitate establishing and maintaining complete
records on the charter school's operations.

Sec. 17.

Minnesota Statutes 2006, section 124D.10, subdivision 4a, is amended to read:

Subd. 4a.

Conflict of interest.

(a) A member of a charter school board of directors
is prohibited from serving as a member of the board of directors or as an employee or
agent of or a contractor with a for-profit entity with whom the charter school contracts,
directly or indirectly, for professional services, goods, or facilities. A violation of this
prohibition renders a contract voidable at the option of the commissioner. new text begin The charter
school's state aid may be reduced by the commissioner under section 127A.42 if the
charter school board fails to correct violations under this subdivision in a timely manner.
new text end A member of a charter school board of directors who violates this prohibition shall be
individually liable to the charter school for any damage caused by the violation.

(b) An individual may serve as a member of the board of directors if no conflict of
interest under paragraph (a) exists.

(c) A member of a charter school board of directors that serves as a member of the
board of directors or as an employee or agent of or a contractor with a nonprofit entity
with whom the charter school contracts, directly or indirectly, for professional services,
goods, or facilities, must disclose all potential conflicts to the commissioner.

(d) The conflict of interest provisions under this subdivision do not apply to
compensation paid to a teacher employed by the charter school who also serves as a
member of the board of directors.

(e) The conflict of interest provisions under this subdivision do not apply to a teacher
who provides services to a charter school through a cooperative formed under chapter
308A when the teacher also serves on the charter school board of directors.

Sec. 18.

Minnesota Statutes 2006, section 124D.10, subdivision 7, is amended to read:

Subd. 7.

Public status; exemption from statutes and rules.

A charter school is a
public school and is part of the state's system of public education. deleted text begin Except as provided in
this section, a charter school is exempt from all statutes and rules applicable to a school,
a board, or a district, although it may elect to comply with one or more provisions of
statutes or rules. deleted text end new text begin A charter school is exempt from all statutes and rules applicable to a
school, board, or district unless provided by this section or provided in another section
of statutes or rules.
new text end

Sec. 19.

Minnesota Statutes 2007 Supplement, section 124D.10, subdivision 23a,
is amended to read:

Subd. 23a.

Related party lease costs.

(a) A charter school is prohibited from
entering a lease of real property with a related party as defined in deleted text begin subdivision 26 deleted text end new text begin
this subdivision new text end , unless the lessor is a nonprofit corporation under chapter 317A or a
cooperative under chapter 308A, and the lease cost is reasonable under section 124D.11,
subdivision 4, clause (1).

new text begin (b) For purposes of this subdivision:
new text end

new text begin (1) "related party" means an affiliate or close relative of the other party in question,
an affiliate of a close relative, or a close relative of an affiliate;
new text end

new text begin (2) "affiliate" means a person that directly or indirectly, through one or more
intermediaries, controls, is controlled by, or is under common control with another person;
new text end

new text begin (3) "close relative" means an individual whose relationship by blood, marriage, or
adoption to another individual is no more remote than first cousin;
new text end

new text begin (4) "person" means an individual or entity of any kind; and
new text end

new text begin (5) "control" includes the terms "controlling," "controlled by," and "under common
control with" and means the possession, direct or indirect, of the power to direct or cause
the directions of the management, operations, or policies of a person, whether through
ownership of voting securities, by contract, or otherwise.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end A lease of real property to be used for a charter school, not excluded in
paragraph (a), must contain the following statement: "This lease is subject to Minnesota
Statutes, section 124D.10, subdivision 23a."

deleted text begin (c) deleted text end new text begin (d) new text end If a charter school enters into as lessee a lease with a related party and the
charter school subsequently closes, the commissioner has the right to recover from the
lessor any lease payments in excess of those that are reasonable under section 124D.11,
subdivision 4, clause (1).

Sec. 20.

Minnesota Statutes 2006, section 125B.07, is amended by adding a
subdivision to read:

new text begin Subd. 8. new text end

new text begin Technology data and guidelines. new text end

new text begin (a) The department shall maintain a list
of technology infrastructure data including, but not limited to, the following data:
new text end

new text begin (1) instructional technology;
new text end

new text begin (2) technology tools;
new text end

new text begin (3) network and data systems administration;
new text end

new text begin (4) data practices;
new text end

new text begin (5) data management; and
new text end

new text begin (6) facilities infrastructure.
new text end

new text begin Each school must provide the technology data to the department in the form and
manner prescribed by the commissioner. The data must include the impact of each
indicator on student achievement.
new text end

new text begin (b) new text end new text begin The commissioner shall maintain technology guidelines for uniform data
collections including common data definitions for required elements, a common course
catalogue, common transcript definitions, and district technology infrastructure standards.
new text end

Sec. 21. new text begin REVIVAL AND REENACTMENT.
new text end

new text begin Minnesota Statutes, section 124D.10, subdivision 2a, is revived and reenacted
effective retroactively and without interruption from June 30, 2007.
new text end

Sec. 22. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin In Minnesota Statutes, the revisor of statutes shall renumber section 122A.60,
subdivision 1a, as section 122A.60, subdivision 3a, and make necessary cross-reference
changes consistent with the renumbering.
new text end

ARTICLE 3

SPECIAL PROGRAMS

Section 1.

Minnesota Statutes 2006, section 124D.60, subdivision 1, is amended to
read:

Subdivision 1.

Notice.

Within deleted text begin ten deleted text end new text begin 30 new text end days after the enrollment of any pupil in an
instructional program for limited English proficient students, the district in which the pupil
resides must notify the parent by mail. This notice must:

(1) be in writing in English and in the primary language of the pupil's parents;

(2) inform the parents that their child has been enrolled in an instructional program
for limited English proficient students;

(3) contain a simple, nontechnical description of the purposes, method and content
of the program;

(4) inform the parents that they have the right to visit the educational program for
limited English proficient students in which their child is enrolled;

(5) inform the parents of the time and manner in which to request and receive a
conference for the purpose of explaining the nature and purpose of the program; and

(6) inform the parents of their rights to withdraw their child from an educational
program for limited English proficient students and the time and manner in which to do so.

The department shall, at the request of the district, prepare the notice in the primary
language of the parent.

Sec. 2.

Minnesota Statutes 2007 Supplement, section 125A.56, is amended to read:

125A.56 ALTERNATE INSTRUCTION REQUIRED BEFORE deleted text begin ASSESSMENT deleted text end new text begin
EVALUATION new text end REFERRAL.

Subdivision 1.

Requirement.

(a) Before a pupil is referred for a special education
evaluation, the district must conduct and document at least two deleted text begin instructional strategies,
alternatives, or interventions using a system of deleted text end scientific, research-based instruction and
intervention new text begin strategies new text end in academics or behavior, based on the pupil's needs, deleted text begin while the
pupil is in the regular classroom. The pupil's teacher must deleted text end new text begin and new text end document deleted text begin the deleted text end results. A
special education evaluation team may waive this requirement when it determines the
pupil's need for the evaluation is urgent. new text begin A district shall not use new text end this section deleted text begin may not be
used deleted text end to deny a pupil's right to a special education evaluation.

(b) A school district shall use alternative intervention services, including the
assurance of mastery program under section 124D.66, deleted text begin the supplemental early education
program under section 124D.081, deleted text end or an early intervening services program under
subdivision 2 to serve at-risk pupils who demonstrate a need for deleted text begin alternative instructional
deleted text end new text begin instruction and intervention new text end strategies deleted text begin or interventions deleted text end .

new text begin Subd. 1a. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the terms defined in this
subdivision have the meanings given them.
new text end

new text begin (b) "Early intervening services" means additional academic and behavioral support
in a general education environment provided to pupils who are not currently identified
as needing special education or related services, but who need additional academic and
behavioral supports to succeed in the general education classroom.
new text end

new text begin (c) "General outcomes measure" means valid and reliable measures based on
monitoring of pupil progress, including both screening of all pupils and more frequent
progress monitoring.
new text end

new text begin (d) "Progress monitoring" means a standardized, scientifically based practice using
ongoing assessments that compare expected and actual rates of learning to assess the
pupil's performance and effectiveness of instruction.
new text end

new text begin (e) "Interim assessment" means screening that is administered at least three times
per year to all pupils to identify those who are at academic risk or in need of early
intervening services.
new text end

new text begin (f) "Scientific, research-based instruction and intervention strategies" means
instruction and intervention derived from systematically applying rigorous and objective
procedures to obtain valid and reliable knowledge about educational activities and
programs.
new text end

Subd. 2.

Early intervening services program.

(a) A district may meet the
requirement under subdivision 1 by establishing an early intervening services program
that includes:

new text begin (1) use of screening and general outcome measures that are valid and reliable
interim assessments;
new text end

new text begin (2) progress monitoring data used to document the effectiveness of specific
interventions for each pupil and to compare a pupil's performance against general outcome
measures;
new text end

deleted text begin (1) a system of valid and reliable general outcome measures aligned to state academic
standards that is administered at least three times per year to pupils in kindergarten
through grade 8 who need additional academic or behavioral support to succeed in the
general education environment. The school must provide interim assessments that
measure pupils' performance three times per year and implement progress monitoring
appropriate to the pupil. For purposes of this section, "progress monitoring" means the
frequent and continuous measurement of a pupil's performance that includes these three
interim assessments and other pupil assessments during the school year. A school, at its
discretion, may allow pupils in grades 9 through 12 to participate in interim assessments;
deleted text end

deleted text begin (2) deleted text end new text begin (3) new text end a system of scientific, research-based instruction and intervention new text begin strategies new text end ;
and

deleted text begin (3) deleted text end new text begin (4) new text end an organizational plan that allows teachers, paraprofessionals, and volunteers
funded through various sources to new text begin deliver instruction, new text end work new text begin collaboratively new text end as a grade-level
team or use another configuration across grades and settings deleted text begin to deliver instruction deleted text end new text begin , and
receive training new text end . The team must be trained in scientific, research-based instruction and
intervention. Teachers and paraprofessionals at a site operating under this paragraph
must work collaboratively with those pupils who need additional academic or behavioral
support to succeed in a general education environment.

deleted text begin (b) As an intervention under paragraph (a), clause (2), staff generating special
education aid under section 125A.76 may provide small group instruction to pupils who
need additional academic or behavioral support to succeed in the general education
environment. Small group instruction that includes pupils with a disability may be
provided in the general education environment if the needs of the pupils with a disability
are met, consistent with their individual education plans, and all pupils in the group
receive the same level of instruction and make the same progress in the instruction or
intervention. Teachers and paraprofessionals must ensure that the needs of pupils with a
disability participating in small group instruction under this paragraph remain the focus
of the instruction. Expenditures attributable to the time special education staff spends
providing instruction to nondisabled pupils in this circumstance is eligible for special
education aid under section 125A.76 as an incidental benefit if:
deleted text end

deleted text begin (1) the group consists primarily of disabled pupils;
deleted text end

deleted text begin (2) no special education staff are added to meet nondisabled pupils' needs; and
deleted text end

deleted text begin (3) the primary purpose of the instruction is to implement the individual education
plans of pupils with a disability in this group.
deleted text end

deleted text begin Expenditures attributable to the time special education staff spends providing small
group instruction to nondisabled pupils that affords more than an incidental benefit to such
pupils is not eligible for special education aid under section 125A.76, except that such
expenditures may be included in the alternative delivery initial aid adjustment under
section 125A.78 if the district has an approved program under section 125A.50. During
each 60-day period that a nondisabled pupil participates in small group instruction under
this paragraph, the pupil's progress monitoring data must be examined to determine
whether the pupil is making progress and, if the pupil is not making progress, the pupil's
intervention strategies must be changed or the pupil must be referred for a special
education evaluation.
deleted text end

new text begin Subd. 3. new text end

new text begin Aid eligibility. new text end

new text begin (a) As an intervention under subdivision 2, clause (3),
staff generating special education aid under section 125A.76 may provide small group
instruction to pupils who need additional academic or behavioral support to succeed in
the general education environment. Small group instruction that includes pupils with a
disability may be provided in the general education environment if:
new text end

new text begin (1) the needs of each pupil with a disability are met, consistent with the individual
education plans of the pupil;
new text end

new text begin (2) during the 60-day period that a nondisabled pupil participates in small group
instruction under this paragraph, each pupil's progress monitoring data is examined to
determine whether the pupil is making progress and, if the pupil is not making progress,
the pupil's intervention strategies are changed or the pupil is referred for a special
education evaluation; and
new text end

new text begin (3) local school districts ensure that the needs of each pupil with a disability
participating in small group instruction under this paragraph remain the focus of the
instruction.
new text end

new text begin (b) Expenditures attributable to the time special education staff spends providing
instruction to nondisabled pupils under paragraph (a) are eligible for special education aid
under section 125A.76 if:
new text end

new text begin (1) the group consists primarily of disabled pupils;
new text end

new text begin (2) no special education staff are added to meet nondisabled pupils' needs; and
new text end

new text begin (3) the primary purpose of the instruction is to implement the individual education
plans of pupils with a disability in this group.
new text end

new text begin (c) Expenditures attributable to the time special education staff spends providing
small group instruction to nondisabled pupils under paragraph (a) that does not meet the
requirements of paragraph (b) are not eligible for special education aid under section
125A.76, except that the expenditures may be included in the alternative delivery initial
aid adjustment under section 125A.78 if the district has an approved program under
section 125A.50.
new text end

Sec. 3.

Minnesota Statutes 2006, section 125A.744, subdivision 3, is amended to read:

Subd. 3.

Implementation.

Consistent with section 256B.0625, subdivision 26,
school districts may enroll as medical assistance providers or subcontractors and bill
the Department of Human Services under the medical assistance fee for service claims
processing system for special education services which are covered services under chapter
256B, which are provided in the school setting for a medical assistance recipient, and for
whom the district has secured informed consent consistent with section 13.05, subdivision
4, paragraph (d), and section 256B.77, subdivision 2, paragraph (p), to bill for each type
of covered service. School districts shall be reimbursed by the commissioner of human
services for the federal share of individual education plan health-related services that
qualify for reimbursement by medical assistance, minus up to five percent retained by the
commissioner of human services for administrative costs deleted text begin , not to exceed $350,000 per
fiscal year deleted text end . The commissioner may withhold up to five percent of each payment to a
school district. Following the end of each fiscal year, the commissioner shall settle up with
each school district in order to ensure that collections from each district for departmental
administrative costs are made on a pro rata basis according to federal earnings for these
services in each district. A school district is not eligible to enroll as a home care provider
or a personal care provider organization for purposes of billing home care services under
sections 256B.0651 and 256B.0653 to 256B.0656 until the commissioner of human
services issues a bulletin instructing county public health nurses on how to assess for the
needs of eligible recipients during school hours. To use private duty nursing services or
personal care services at school, the recipient or responsible party must provide written
authorization in the care plan identifying the chosen provider and the daily amount
of services to be used at school.

ARTICLE 4

LIBRARIES

Section 1.

Minnesota Statutes 2007 Supplement, section 134.31, subdivision 4a,
is amended to read:

Subd. 4a.

Services to the blind and physically handicapped.

The Minnesota
Department of Education shall provide specialized services to the blind and physically
handicapped through the Minnesota new text begin Braille and Talking Book new text end Library deleted text begin for the Blind and
Physically Handicapped deleted text end under a cooperative plan with the National Library Services for
the Blind and Physically Handicapped of the Library of Congress.

Sec. 2.

Minnesota Statutes 2006, section 134.31, subdivision 6, is amended to read:

Subd. 6.

Advisory committee.

The commissioner shall appoint an advisory
committee of five members to advise the staff of the Minnesota new text begin Braille and Talking
Book new text end Library deleted text begin for the Blind and Physically Handicapped deleted text end on long-range plans and library
services. Members shall be people who use the library. Section 15.059 governs this
committee except that the committee shall not expire.

Sec. 3.

Minnesota Statutes 2006, section 134.31, is amended by adding a subdivision
to read:

new text begin Subd. 7. new text end

new text begin Telephone or electronic meetings. new text end

new text begin (a) Notwithstanding section 13D.01,
the Advisory Committee for the Minnesota Braille and Talking Book Library may conduct
a meeting of its members by telephone or other electronic means so long as the following
conditions are met:
new text end

new text begin (1) all members of the committee participating in the meeting, wherever their
physical locations, can hear one another and can hear all discussion and testimony;
new text end

new text begin (2) members of the public present at the regular meeting location of the committee
can hear all discussion, testimony, and votes of the members of the committee;
new text end

new text begin (3) at least one member of the committee is physically present at the regular meeting
location; and
new text end

new text begin (4) all votes are conducted by roll call, so each member's votes on each issue can be
identified and recorded.
new text end

new text begin (b) Each member of the committee participating in a meeting by telephone or other
electronic means is considered present at the meeting for purposes of determining quorum
and participating in all proceedings.
new text end

new text begin (c) If telephone or other electronic means is used to conduct a meeting, to the extent
practical, the committee shall allow a person to monitor the meeting electronically from a
remote location. The committee may require the person making the connection to pay
for the documented marginal costs that the committee incurs as a result of the additional
connection.
new text end

new text begin (d) If telephone or other electronic means is used to conduct a regular, special, or
emergency meeting, the committee shall provide notice of the regular meeting location,
the fact that some members may participate by telephone or other electronic means, and
the provisions of paragraph (c). The timing and method of providing notice is governed
by section 13D.04.
new text end

ARTICLE 5

SELF-SUFFICIENCY AND LIFELONG LEARNING

Section 1.

Minnesota Statutes 2006, section 120A.05, subdivision 10a, is amended to
read:

Subd. 10a.

Kindergarten.

new text begin (a) new text end "Kindergarten" means a program designed for pupils
five years of age on September 1 of the calendar year in which the school year commences
that prepares pupils to enter first grade the following school year. A program designed for
pupils younger than five years of age on September 1 of the calendar year in which the
school year commences that prepares pupils to enter kindergarten the following school
year is a prekindergarten program.

new text begin (b) "Full-day kindergarten" means an academic program that prepares pupils to enter
first grade the following school year, provides a minimum of 850 hours in a school year,
includes curriculum and instruction under section 120B.11, and aligns with academic
standards under section 120B.021, subdivision 1. Learning activities provided as a part of
a community education program are not full-day kindergarten.
new text end

Sec. 2.

Minnesota Statutes 2006, section 123B.36, subdivision 1, is amended to read:

Subdivision 1.

School boards may require fees.

(a) For purposes of this
subdivision, "home school" means a home school as defined in sections 120A.22 and
120A.24 with five or fewer students receiving instruction.

(b) A school board is authorized to require payment of fees in the following areas:

(1) in any program where the resultant product, in excess of minimum requirements
and at the pupil's option, becomes the personal property of the pupil;

(2) admission fees or charges for extracurricular activities, where attendance
is optional and where the admission fees or charges a student must pay to attend or
participate in an extracurricular activity is the same for all students, regardless of whether
the student is enrolled in a public or a home school;

(3) a security deposit for the return of materials, supplies, or equipment;

(4) personal physical education and athletic equipment and apparel, although any
pupil may personally provide it if it meets reasonable requirements and standards relating
to health and safety established by the board;

(5) items of personal use or products that a student has an option to purchase such as
student publications, class rings, annuals, and graduation announcements;

(6) fees specifically permitted by any other statute, including but not limited to
section 171.05, subdivision 2; provided (i) driver education fees do not exceed the actual
cost to the school and school district of providing driver education, and (ii) the driver
education courses are open to enrollment to persons between the ages of 15 and 18 who
reside or attend school in the school district;

(7) field trips considered supplementary to a district educational program;

(8) any authorized voluntary student health and accident benefit plan;

(9) for the use of musical instruments owned or rented by the district, a reasonable
rental fee not to exceed either the rental cost to the district or the annual depreciation plus
the actual annual maintenance cost for each instrument;

(10) transportation of pupils to and from extracurricular activities conducted at
locations other than school, where attendance is optional;

(11) transportation to and from school of pupils living within two miles from school
and all other transportation services not required by law. If a district charges fees for
transportation of pupils, it must establish guidelines for that transportation to ensure that
no pupil is denied transportation solely because of inability to pay;

(12) motorcycle classroom education courses conducted outside of regular school
hours; provided the charge must not exceed the actual cost of these courses to the school
district;

(13) transportation to and from postsecondary institutions for pupils enrolled under
the postsecondary enrollment options program under section 123B.88, subdivision 22.
Fees collected for this service must be reasonable and must be used to reduce the cost
of operating the route. Families who qualify for mileage reimbursement under section
124D.09, subdivision 22, may use their state mileage reimbursement to pay this fee. If
no fee is charged, districts must allocate costs based on the number of pupils riding the
route deleted text begin . deleted text end new text begin ; and new text end

new text begin (14) the additional cost of an optional full-day kindergarten program in a district or a
charter school that also provides a half-time kindergarten option, except that no fee shall
be charged for providing a child with a disability a free and appropriate public education
in accordance with the child's individualized education program according to section
125A.03. If a district charges fees for a full-day kindergarten program, it must establish a
reasonable sliding fee scale but it shall waive the fee for a participant unable to pay.
new text end

Sec. 3.

Minnesota Statutes 2006, section 123B.37, subdivision 1, is amended to read:

Subdivision 1.

Boards shall not charge certain fees.

(a) A board is not authorized
to charge fees in the following areas:

(1) textbooks, workbooks, art materials, laboratory supplies, towels;

(2) supplies necessary for participation in any instructional course except as
authorized in sections 123B.36 and 123B.38;

(3) field trips that are required as a part of a basic education program or course;

(4) graduation caps, gowns, any specific form of dress necessary for any educational
program, and diplomas;

(5) instructional costs for necessary school personnel employed in any course or
educational program required for graduation new text begin except as authorized in section 123B.36,
subdivision 1, clause (14) new text end ;

(6) library books required to be utilized for any educational course or program;

(7) admission fees, dues, or fees for any activity the pupil is required to attend;

(8) any admission or examination cost for any required educational course or
program;

(9) locker rentals;

(10) transportation to and from school of pupils living two miles or more from
school.

(b) Notwithstanding paragraph (a), clauses (1) and (6), a board may charge fees
for textbooks, workbooks, and library books, lost or destroyed by students. The board
must annually notify parents or guardians and students about its policy to charge a fee
under this paragraph.

Sec. 4.

Minnesota Statutes 2006, section 124D.522, is amended to read:

124D.522 ADULT BASIC EDUCATION SUPPLEMENTAL SERVICE
GRANTS.

(a) The commissioner, in consultation with the policy review task force under
section 124D.521, may make grants to nonprofit organizations to provide services that
are not offered by a district adult basic education program or that are supplemental to
either the statewide adult basic education program, or a district's adult basic education
program. The commissioner may make grants for: staff development for adult basic
education teachers and administrators; training for volunteer tutors; training, services, and
materials for serving disabled students through adult basic education programs; statewide
promotion of adult basic education services and programs; development and dissemination
of instructional and administrative technology for adult basic education programs;
programs which primarily serve communities of color; adult basic education distance
learning projects, including television instruction programs; and other supplemental
services to support the mission of adult basic education and innovative delivery of adult
basic education services.

(b) The commissioner must establish eligibility criteria and grant application
procedures. Grants under this section must support services throughout the state, focus on
educational results for adult learners, and promote outcome-based achievement through
adult basic education programs. Beginning in fiscal year 2002, the commissioner may
make grants under this section from the state total adult basic education aid set aside for
supplemental service grants under section 124D.531. Up to one-fourth of the appropriation
for supplemental service grants must be used for grants for adult basic education programs
to encourage and support innovations in adult basic education instruction and service
delivery. A grant to a single organization cannot exceed deleted text begin $100,000 deleted text end new text begin 15 percent of the total
supplemental services aid new text end . Nothing in this section prevents an approved adult basic
education program from using state or federal aid to purchase supplemental services.

Sec. 5.

Minnesota Statutes 2006, section 124D.55, is amended to read:

124D.55 GENERAL EDUCATION DEVELOPMENT (GED) TEST FEES.

The commissioner shall pay 60 percent of the fee that is charged to an eligible
individual for the full battery of a general education development (GED) test, but not
more than deleted text begin $20 deleted text end new text begin $40 new text end for an eligible individual.