SF 3001

1st Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to education; providing for general education, education excellence,
special programs, state agencies, self-sufficiency and lifelong learning; amending
Minnesota Statutes 2006, sections 13.32, by adding a subdivision; 120A.03;
120A.05, subdivision 10a; 120A.22, subdivision 5; 120A.24, subdivisions 1,
2; 120B.02; 120B.023, subdivision 2; 120B.131, subdivision 2; 120B.31, as
amended; 120B.35, as amended; 120B.36, as amended; 120B.362; 121A.035,
subdivision 2; 121A.037; 122A.06, subdivision 4; 122A.07, subdivisions
2, 3; 122A.09, subdivision 4; 122A.14, by adding subdivisions; 122A.18,
subdivisions 2, 2a, by adding subdivisions; 122A.60; 122A.61, subdivision
1; 122A.75, subdivision 1; 123B.14, subdivision 7; 123B.36, subdivision
1; 123B.37, subdivision 1; 123B.51, by adding a subdivision; 123B.59,
subdivision 1; 123B.77, subdivision 3; 123B.81, subdivisions 3, 5; 123B.83,
subdivision 3; 123B.88, subdivision 3; 124D.09, subdivisions 3, 5, 7, 16,
24; 124D.095, subdivision 10; 124D.10, subdivisions 2a, 4a, 6, 6a, 7, 8, 20,
23; 124D.522; 124D.55; 124D.60, subdivision 1; 124D.68, subdivision 2;
125A.02, subdivision 1; 125A.15; 125A.51; 125A.65, subdivision 4, by adding
a subdivision; 125A.744, subdivision 3; 125B.07, by adding a subdivision;
126C.17, subdivision 9; 126C.40, subdivision 6; 134.31, subdivision 6, by adding
a subdivision; 205A.03, subdivision 1; 205A.06, subdivision 1a; 260C.007,
subdivision 19; 299F.30, subdivision 1; Minnesota Statutes 2007 Supplement,
sections 120B.021, subdivision 1; 120B.30; 123B.81, subdivision 4; 124D.095,
subdivisions 3, 4, 7; 124D.10, subdivisions 4, 23a; 124D.531, subdivision 1;
126C.05, subdivision 1; 126C.10, subdivision 34; 127A.49, subdivisions 2, 3;
134.31, subdivision 4a; Laws 2007, chapter 146, article 2, section 46, subdivision
13; proposing coding for new law in Minnesota Statutes, chapters 4; 120A;
120B; 121A; 123B; 124D; 125B; 126C; 127A; 134; repealing Minnesota Statutes
2006, sections 120A.22, subdivision 8; 121A.67; 126C.21, subdivision 1; Laws
2006, chapter 263, article 3, section 16.

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). 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. If the sponsor is a local board, the school's board of directors
may appeal the sponsor's decision to the commissioner.

(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 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.

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.17, subdivision 9, is amended to read:

Subd. 9.

Referendum revenue.

(a) The revenue authorized by section 126C.10,
subdivision 1, may be increased in the amount approved by the voters of the district at a
referendum called for the purpose. The referendum may be called by the board or shall be
called by the board upon written petition of qualified voters of the district. The referendum
must be conducted one or two calendar years before the increased levy authority, if
approved, first becomes payable. Only one election to approve an increase may be held
in a calendar year. Unless the referendum is conducted by mail under paragraph (g), the
referendum must be held on the first Tuesday after the first Monday in November. The
ballot must state the maximum amount of the increased revenue per resident marginal cost
pupil unit. The ballot may state a schedule, determined by the board, of increased revenue
per resident marginal cost pupil unit that differs from year to year over the number of
years for which the increased revenue is authorized or may state that the amount shall
increase annually by the rate of inflation. For this purpose, the rate of inflation shall be the
annual inflationary increase calculated under subdivision 2, paragraph (b). The ballot may
state that existing referendum levy authority is expiring. In this case, the ballot may also
compare the proposed levy authority to the existing expiring levy authority, and express
the proposed increase as the amount, if any, over the expiring referendum levy authority.
The ballot must designate the specific number of years, not to exceed ten, for which the
referendum authorization applies. The ballot, including a ballot on the question to revoke
or reduce the increased revenue amount under paragraph (c), must abbreviate the term
"per resident marginal cost pupil unit" as "per pupil." The notice required under section
275.60 may be modified to read, in cases of renewing existing levies:

"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU deleted text begin MAY BE VOTING
FOR A PROPERTY TAX INCREASE deleted text end new text begin ARE RENEWING AN EXISTING
PROPERTY TAX REFERENDUM. YOU ARE NOT CHANGING YOUR
OPERATING REFERENDUM FROM ITS LEVEL IN THE PREVIOUS YEAR new text end ."

The ballot may contain a textual portion with the information required in this
subdivision and a question stating substantially the following:

"Shall the increase in the revenue proposed by (petition to) the board of .........,
School District No. .., be approved?"

If approved, an amount equal to the approved revenue per resident marginal cost
pupil unit times the resident marginal cost pupil units for the school year beginning in
the year after the levy is certified shall be authorized for certification for the number of
years approved, if applicable, or until revoked or reduced by the voters of the district at a
subsequent referendum.

(b) The board must prepare and deliver by first class mail at least 15 days but no more
than 30 days before the day of the referendum to each taxpayer a notice of the referendum
and the proposed revenue increase. The board need not mail more than one notice to any
taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be
those shown to be owners on the records of the county auditor or, in any county where
tax statements are mailed by the county treasurer, on the records of the county treasurer.
Every property owner whose name does not appear on the records of the county auditor
or the county treasurer is deemed to have waived this mailed notice unless the owner
has requested in writing that the county auditor or county treasurer, as the case may be,
include the name on the records for this purpose. The notice must project the anticipated
amount of tax increase in annual dollars for typical residential homesteads, agricultural
homesteads, apartments, and commercial-industrial property within the school district.

The notice for a referendum may state that an existing referendum levy is expiring
and project the anticipated amount of increase over the existing referendum levy in
the first year, if any, in annual dollars for typical residential homesteads, agricultural
homesteads, apartments, and commercial-industrial property within the district.

The notice must include the following statement: "Passage of this referendum will
result in an increase in your property taxes." However, in cases of renewing existing
levies, the notice may include the following statement: "Passage of this referendum may
result in deleted text begin an increase deleted text end new text begin a change new text end in your property taxes."

(c) A referendum on the question of revoking or reducing the increased revenue
amount authorized pursuant to paragraph (a) may be called by the board and shall be called
by the board upon the written petition of qualified voters of the district. A referendum to
revoke or reduce the revenue amount must state the amount per resident marginal cost
pupil unit by which the authority is to be reduced. Revenue authority approved by the
voters of the district pursuant to paragraph (a) must be available to the school district at
least once before it is subject to a referendum on its revocation or reduction for subsequent
years. Only one revocation or reduction referendum may be held to revoke or reduce
referendum revenue for any specific year and for years thereafter.

(d) A petition authorized by paragraph (a) or (c) is effective if signed by a number of
qualified voters in excess of 15 percent of the registered voters of the district on the day
the petition is filed with the board. A referendum invoked by petition must be held on the
date specified in paragraph (a).

(e) The approval of 50 percent plus one of those voting on the question is required to
pass a referendum authorized by this subdivision.

(f) At least 15 days before the day of the referendum, the district must submit a
copy of the notice required under paragraph (b) to the commissioner and to the county
auditor of each county in which the district is located. Within 15 days after the results
of the referendum have been certified by the board, or in the case of a recount, the
certification of the results of the recount by the canvassing board, the district must notify
the commissioner of the results of the referendum.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for elections conducted on or after
July 1, 2008.
new text end

Sec. 12.

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. 13.

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. 14.

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.

Sec. 15. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, section 126C.21, subdivision 1, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2009.
new text end

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 Data sharing; improving instruction. new text end

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

new text begin (1) attendance data, including name of school or institution, school district, year or
term of attendance, and term type;
new text end

new text begin (2) student demographic and enrollment data;
new text end

new text begin (3) academic performance and testing data; and
new text end

new text begin (4) special academic services received by a student.
new text end

new text begin Any analysis of or report on the data must contain only summary data.
new text end

Sec. 2.

Minnesota Statutes 2006, section 120A.03, is amended to read:

120A.03 MISSION deleted text begin STATEMENT deleted text end new text begin AND VISION new text end .

new text begin Subdivision 1. new text end

new text begin Mission statement. new text end

The mission of public education in Minnesota,
a system for lifelong learning, is to ensure individual academic achievement, an
informed citizenry, and a highly productive work force. This system focuses on the
learner, promotes and values diversity, provides participatory decision making, ensures
accountability, models democratic principles, creates and sustains a climate for change,
provides personalized learning environments, encourages learners to reach their maximum
potential, and integrates and coordinates human services for learners. The public schools
of this state shall serve the needs of the students by cooperating with the students' parents
and legal guardians to develop the students' intellectual capabilities and lifework skills
in a safe and positive environment. It is part of the department's mission that within the
department's resources the commissioner shall endeavor to:

(1) prevent the waste or unnecessary spending of public money;

(2) use innovative fiscal and human resource practices to manage the state's
resources and operate the department as efficiently as possible;

(3) coordinate the department's activities wherever appropriate with the activities
of other governmental agencies;

(4) use technology where appropriate to increase agency productivity, improve
customer service, increase public access to information about government, and increase
public participation in the business of government;

(5) utilize constructive and cooperative labor-management practices to the extent
otherwise required by chapters 43A and 179A;

(6) report to the legislature on the performance of agency operations and the
accomplishment of agency goals in the agency's biennial budget according to section
16A.10, subdivision 1; and

(7) recommend to the legislature appropriate changes in law necessary to carry out
the mission and improve the performance of the department.

new text begin Subd. 2. new text end

new text begin World-class schools vision statement. new text end

new text begin To improve the mission of public
education in Minnesota, the legislature should pursue policies and school finance reforms
based on the following goals:
new text end

new text begin (1) in the area of early childhood education, ensure that investment in educational
success starts early;
new text end

new text begin (2) in the area of educator quality, ensure that great teachers and principals are
recruited, prepared, supported, and retained;
new text end

new text begin (3) in the area of academic rigor, ensure all roads are rigorous, and all lead to higher
education;
new text end

new text begin (4) in the area of family and community involvement, ensure families and
communities are full partners in education;
new text end

new text begin (5) ensure that all cultures are included and supported, and connections are made
across local and global cultural divides;
new text end

new text begin (6) in the area of data and research, ensure that educators use data and research to
improve teaching and learning every day;
new text end

new text begin (7) ensure schools are provided with funding that is predictable and sufficient to
produce world class performance;
new text end

new text begin (8) ensure schedules and calendars are designed to help all students reach high
standards:
new text end

new text begin (9) in the area of special education, ensure services for students with disabilities are
proactive, effective, efficient, and adequately funded; and
new text end

new text begin (10) in the area of health and wellness, encourage parents and other stakeholders to
ensure that students come to school physically and mentally ready to learn.
new text end

Sec. 3.

Minnesota Statutes 2006, section 120A.22, subdivision 5, is amended to read:

Subd. 5.

Ages and terms.

(a) Every child between new text begin age new text end seven new text begin or enrollment in first
grade new text end and deleted text begin 16 deleted text end new text begin 18 new text end years of age must receive instruction new text begin unless the child has completed
the requirements for graduation new text end . Every child under the age of seven who is enrolled in
a half-day kindergarten, or a full-day kindergarten program on alternate days, or other
kindergarten programs shall receive instruction. Except as provided in subdivision 6, a
parent may withdraw a child under the age of seven from enrollment at any time.

(b) A school district by annual board action may require children subject to this
subdivision to receive instruction in summer school. A district that acts to require children
to receive instruction in summer school shall establish at the time of its action the criteria
for determining which children must receive instruction.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to the 2008-2009 school year and later.
new text end

Sec. 4.

Minnesota Statutes 2006, section 120A.24, subdivision 1, is amended to read:

Subdivision 1.

Reports to superintendent.

The person in charge of providing
instruction to a child new text begin between the ages of seven and 16 new text end must submit the following
information to the superintendent of the district in which the child resides:

(1) by October 1 of each school year, the name, birth date, and address of each
child receiving instruction;

(2) the name of each instructor and evidence of compliance with one of the
requirements specified in section 120A.22, subdivision 10; new text begin and new text end

(3) an annual instructional calendar deleted text begin ; and deleted text end

deleted text begin (4) for each child instructed by a parent who meets only the requirement of section
deleted text end deleted text begin 120A.22, subdivision 10 deleted text end deleted text begin , clause (6), a quarterly report card on the achievement of the
deleted text end deleted text begin child in each subject area required in section deleted text end deleted text begin 120A.22, subdivision 9 deleted text end .

Sec. 5.

Minnesota Statutes 2006, section 120A.24, subdivision 2, is amended to read:

Subd. 2.

Availability of documentation.

The person in charge of providing
instruction to a child must make available documentation indicating that the subjects
required in section 120A.22, subdivision 9, are being taught. This documentation must
include class schedules, copies of materials used for instruction, and descriptions of
methods used to assess student achievement new text begin and for each child instructed by a parent who
meets only the requirement of section 120A.22, subdivision 10, clause (6), a copy of a
quarterly report card on the achievement of the child in each subject area required in
section 120A.22, subdivision 9 new text end .

Sec. 6.

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. 7.

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 new text begin , nutrition, new text end 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. 8.

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. 9.

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. 10.

new text begin [120B.299] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin The definitions in this section apply to this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Growth. new text end

new text begin "Growth" compares the difference between a student's
achievement score at two distinct points in time.
new text end

new text begin Subd. 3. new text end

new text begin Value-added. new text end

new text begin "Value-added" is the amount of achievement a student
demonstrates above an established baseline.
new text end

new text begin Subd. 4. new text end

new text begin Growth-based value-added. new text end

new text begin "Growth-based value-added" is a
value-added system of assessments that measures the difference between an established
baseline of growth and a student's growth over time.
new text end

new text begin Subd. 5. new text end

new text begin Adequate yearly progress. new text end

new text begin Adequate yearly progress compares the
average achievement of two different groups of students at two different points in time.
new text end

new text begin Subd. 6. new text end

new text begin State growth norm. new text end

new text begin "State growth norm" is an established statewide
percentile, or standard applicable to all students in a particular grade benchmarked to
an established school year. Beginning in the 2008-2009 school year, the state growth
norm is benchmarked to 2006-2007 school year data until the commissioner next changes
the vertically linked scale score. Each time the commissioner changes the vertically
linked scale score, a recognized Minnesota assessment group composed of assessment
and evaluation directors and staff and researchers, under Minnesota Statutes, section
120B.299, subdivision 6, in collaboration with the Independent Office of Educational
Accountability under section 120B.31, subdivision 3, must recommend a new state
growth norm that the commissioner shall consider with the revised standards. For each
newly established state growth norm, the commissioner also must establish criteria for
identifying schools and school districts that demonstrate accelerated growth in order to
advance educators' professional development and to replicate programs that succeed in
meeting students' diverse learning needs.
new text end

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 2007 Supplement, section 120B.30, is amended to read:

120B.30 STATEWIDE TESTING AND REPORTING SYSTEM.

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 deleted text begin , developed after the 2002-2003 school year, deleted text end 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 deleted text begin in 1997 and thereafter,
as deleted text end based on the first uniform test deleted text begin administration of deleted text end new text begin administered in new text end 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 new text begin
commissioner shall determine the new text end testing process and the order of administration deleted text begin shall be
determined by the commissioner deleted text end . 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.

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, deleted text begin and deleted text end 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 new text begin through 2010-2011 new text end school year new text begin , and an earth and space, life, and
physical sciences assessment in the grades 9 through 12 span for the 2011-2012 school
year new text end and later. new text begin Each assessment given in the high school grade span will be administered
at the end of the course for which science standards instruction is completed in each
content area of biology, earth and space, and physical sciences.
new text end

(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 new text begin growth-based new text end value-added
deleted text begin component that is in addition to a measure for student achievement growth over time deleted text end new text begin
indicator of student achievement under section 120B.35, subdivision 3, paragraph (b) new text end ; 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
deleted text begin progress in achieving the deleted text end new text begin proficiency in the context of the state's grade level new text end 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.

Subd. 2.

Department of Education assistance.

The Department of Education
shall contract for professional and technical services according to competitive bidding
procedures under chapter 16C for purposes of this section.

Subd. 3.

Reporting.

The commissioner shall report test data publicly and to
stakeholders, including the performance achievement levels developed from students'
unweighted test scores in each tested subject and a listing of demographic factors that
strongly correlate with student performance. The commissioner shall also report data that
compares performance results among school sites, school districts, Minnesota and other
states, and Minnesota and other nations. The commissioner shall disseminate to schools
and school districts a more comprehensive report containing testing information that
meets local needs for evaluating instruction and curriculum.

Subd. 4.

Access to tests.

The commissioner must adopt and publish a policy
to provide public and parental access for review of basic skills tests, Minnesota
Comprehensive Assessments, or any other such statewide test and assessment. Upon
receiving a written request, the commissioner must make available to parents or guardians
a copy of their student's actual responses to the test questions deleted text begin to be reviewed by the
parent deleted text end new text begin for their review new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 12.

Minnesota Statutes 2006, section 120B.31, as amended by Laws 2007, chapter
146, article 2, section 10, is amended to read:

120B.31 SYSTEM ACCOUNTABILITY deleted text begin AND STATISTICAL
ADJUSTMENTS deleted text end .

Subdivision 1.

Educational accountability and public reporting.

Consistent
with the deleted text begin process deleted text end new text begin direction new text end to adopt deleted text begin a results-oriented graduation rule deleted text end new text begin statewide academic
standards new text end under section 120B.02, the department, in consultation with education and other
system stakeholders, must deleted text begin establish deleted text end new text begin maintain new text end a coordinated and comprehensive system of
educational accountability and public reporting that promotes deleted text begin higher deleted text end new text begin greater new text end academic
achievement new text begin , preparation for higher academic education, preparation for the world of
work, citizenship as outlined under sections 120B.021, subdivision 1, clause (4); and
120B.024, paragraph (a), clause (4), and the arts new text end .

Subd. 2.

Statewide testing.

Each school year, all school districts shall give a
uniform statewide test to students at specified grades to provide information on the status,
needs and performance of Minnesota students.

Subd. 3.

Educational accountability.

(a) The Independent Office of Educational
Accountability, as authorized by Laws 1997, First Special Session chapter 4, article 5,
section 28, subdivision 2, is established, and shall be funded through the Board of Regents
of the University of Minnesota. The office shall advise the education committees of
the legislature and the commissioner of education, at least on a biennial basis, on the
degree to which the statewide educational accountability and reporting system includes a
comprehensive assessment framework that measures school accountability for students
achieving the goals described in the state's deleted text begin results-oriented deleted text end new text begin high school new text end graduation
rule. The office shall determine and annually report to the legislature whether and how
effectively:

(1) the statewide system of educational accountability deleted text begin utilizes deleted text end new text begin uses new text end multiple
indicators to provide valid and reliable comparative and contextual data on students,
schools, districts, and the state, and if not, recommend ways to improve the accountability
reporting system;

(2) deleted text begin the commissioner makes statistical adjustments when reporting student data over
time, consistent with clause (4);
deleted text end

deleted text begin (3) deleted text end the commissioner uses deleted text begin indicators of student achievement growth deleted text end new text begin a growth-based
value-added indicator of student achievement new text end over time deleted text begin and a value-added assessment
model deleted text end that estimates the effects of the school and school district on student achievement to
measure school performance, consistent with section deleted text begin 120B.36, subdivision 1 deleted text end new text begin 120B.35,
subdivision 3, paragraph (b) new text end ;

deleted text begin (4) deleted text end new text begin (3) new text end the commissioner makes data available on students who do not pass one or
more of the state's required GRAD tests and do not receive a diploma as a consequence,
and categorizes these data according to gender, race, eligibility for free or reduced lunch,
and English language proficiency; and

deleted text begin (5) deleted text end new text begin (4) new text end the commissioner fulfills the requirements under section 127A.095,
subdivision 2.

(b) When the office reviews the statewide educational accountability and reporting
system, it shall also consider:

(1) the objectivity and neutrality of the state's educational accountability system; and

(2) the impact of a testing program on school curriculum and student learning.

Subd. 4.

Statistical adjustments new text begin ; student performance data new text end .

In deleted text begin developing
deleted text end new text begin managing new text end 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 new text begin and growth new text end levels
measured at the new text begin school, new text end school district, deleted text begin regional, deleted text end deleted text begin or deleted text end new text begin and new text end statewide level. When collecting
and reporting the new text begin performance new text end data, the commissioner shall deleted text begin : (1) deleted text end deleted text begin 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.

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

Minnesota Statutes 2006, section 120B.35, as amended by Laws 2007, chapter
147, article 8, section 38, is amended to read:

120B.35 STUDENT ACADEMIC ACHIEVEMENT AND deleted text begin PROGRESS deleted text end new text begin
GROWTH new text end .

Subdivision 1.

deleted text begin Adequate yearly progress of schools and students deleted text end new text begin School and
student indicators of growth and achievement new text end .

The commissioner must deleted text begin develop
and implement deleted text end new text begin maintain new text end a system for measuring and reporting academic achievement
and individual student deleted text begin progress deleted text end new text begin growth new text end , consistent with the statewide educational
accountability and reporting system. The new text begin system new text end components deleted text begin of the system deleted text end must measure
the adequate yearly progress of schools and new text begin the growth of new text end individual students: students'
current achievement in schools under subdivision 2; and individual students' educational
deleted text begin progress deleted text end new text begin growth new text end over time under subdivision 3. The system also must include statewide
measures of student academic deleted text begin achievement deleted text end new text begin growth new text end that identify schools with high levels
of deleted text begin achievement deleted text end new text begin growth new text end , and also schools with low levels of deleted text begin achievement deleted text end new text begin growth new text end that need
improvement. When determining a school's effect, the data must include both statewide
measures of student achievement and deleted text begin , to the extent annual tests are administered, deleted text end
indicators of achievement growth that take into account a student's prior achievement.
Indicators of achievement and prior achievement must be based on highly reliable
statewide or districtwide assessments. Indicators that take into account a student's prior
achievement must not be used to disregard a school's low achievement or to exclude
a school from a program to improve low achievement levels. deleted text begin The commissioner by
January 15, 2002, must submit a plan for integrating these components to the chairs of
the legislative committees having policy and budgetary responsibilities for elementary
and secondary education.
deleted text end

Subd. 2.

new text begin Expectations for federally mandated new text end student academic achievement.

(a) Each school year, a school district must determine if the student achievement levels
at each school site meet deleted text begin state and local deleted text end new text begin federally mandated new text end expectations. If student
achievement levels at a school site do not meet deleted text begin state and local deleted text end new text begin federally mandated new text end
expectations and the site has not made adequate yearly progress for two consecutive
school years, beginning with the 2001-2002 school year, the district must work with the
school site to adopt a plan to raise student achievement levels to meet deleted text begin state and local deleted text end new text begin
federally mandated new text end expectations. The commissioner of education shall establish student
academic achievement levels new text begin to comply with this paragraph new text end .

(b) School sites identified as not meeting new text begin federally mandated new text end expectations must
develop continuous improvement plans in order to meet deleted text begin state and local deleted text end new text begin federally mandated new text end
expectations for student academic achievement. The department, at a district's request,
must assist the district and the school site in developing a plan to improve student
achievement. The plan must include parental involvement components.

(c) The commissioner must:

(1) deleted text begin provide assistance to deleted text end new text begin assist new text end school sites and districts identified as not meeting
new text begin federally mandated new text end expectations; and

(2) provide technical assistance to schools that integrate student deleted text begin progress deleted text end measures
deleted text begin under subdivision 3 deleted text end in the school continuous improvement plan.

(d) The commissioner shall establish and maintain a continuous improvement Web
site designed to make data on every school and district available to parents, teachers,
administrators, community members, and the general public.

Subd. 3.

Student deleted text begin progress assessment deleted text end new text begin growth; other state measures new text end .

(a)
The new text begin state's new text end educational assessment system deleted text begin component deleted text end measuring individual students'
educational deleted text begin progress must be deleted text end new text begin growth is new text end based deleted text begin , to the extent annual tests are administered, deleted text end
on indicators of achievement growth that show an individual student's prior achievement.
Indicators of achievement and prior achievement deleted text begin must be deleted text end new text begin are new text end based on highly reliable
statewide or districtwide assessments.

(b) The commissioner must deleted text begin identify effective models for measuring individual
student progress that enable a school district or school site to perform gains-based
analysis, including evaluating the effects of the teacher, school, and school district on
student achievement over time. At least one model must be a "value-added" assessment
model that reliably estimates those effects for classroom settings where a single teacher
teaches multiple subjects to the same group of students, for team teaching arrangements,
and for other teaching circumstances. deleted text end new text begin use a growth-based value-added system. The
commissioner must apply the state growth norm to students in grades 4 through 8
beginning in the 2008-2009 school year, consistent with section 120B.299, subdivision
6, initially benchmarking the state growth norm to 2007-2008 school year data. The
model must allow the user to:
new text end

new text begin (1) report student growth at and above the state norm; and
new text end

new text begin (2) for all student categories with a cell size of at least 20, report and compare
aggregated and disaggregated state growth data using the nine student categories identified
under the federal 2001 No Child Left Behind Act and two student gender categories of
male and female, respectively. The model must have the ability to measure the effects
on student growth at the teacher team level, grade teacher teams level, school level, and
school district level.
new text end

(c) deleted text begin If a district has an accountability plan that includes gains-based analysis or
"value-added" assessment, the commissioner shall, to the extent practicable, incorporate
those measures in determining whether the district or school site meets expectations. The
department must coordinate with the district in evaluating school sites and continuous
improvement plans, consistent with best practices deleted text end new text begin If a district has an accountability
plan that includes other growth-based value-added analysis, the commissioner may, to
the extent practicable and consistent with this section, incorporate those measures in
determining whether the district or school site shows growth new text end .

new text begin (d) When reporting student performance under section 120B.36, subdivision 1, the
commissioner annually, beginning July 1, 2011, must report two core measures indicating
the extent to which current high school graduates are being prepared for postsecondary
academic and career opportunities:
new text end

new text begin (1) a preparation measure indicating the number and percentage of high school
graduates in the most recent school year who completed course work important to
preparing them for postsecondary academic and career opportunities, consistent with the
core academic subjects required for admission to Minnesota's public four-year colleges
and universities as determined by the Minnesota Office of Higher Education under chapter
136A; and
new text end

new text begin (2) a rigorous coursework measure indicating the number and percentage of high
school graduates in the most recent school year who successfully completed one or more
college-level advanced placement, international baccalaureate, postsecondary enrollment
options, other rigorous courses of study under section 120B.021, subdivision 1a, or
industry certification courses.
new text end

new text begin When reporting the core measures under clauses (1) and (2), the commissioner must also
analyze and report separate categories of information using the nine student categories
identified under the federal 2001 No Child Left Behind Act and two student gender
categories of male and female, respectively.
new text end

new text begin (d) When reporting student performance under section 120B.36, subdivision 1, the
commissioner annually, beginning July 1, 2011, must include summary data showing
student's average self-reported sense of school safety, engagement in school, and the
quality of students' relationship with teachers, administrators, and other students. The
commissioner must gather these data consistently from students in grade 4 or 5, in one
grade level in grades 6 through 8, and in one grade level in high school, as determined by
the commissioner in consultation with recognized and qualified experts.
new text end

Subd. 4.

Improving schools.

Consistent with the requirements of this section, the
commissioner of education must deleted text begin establish a second achievement benchmark to identify
improving schools. The commissioner must recommend to deleted text end new text begin annually report to the public
and new text end the legislature deleted text begin by February 15, 2002, indicators in addition to the achievement
benchmark for identifying improving schools, including an indicator requiring a school to
demonstrate ongoing successful use of best teaching practices deleted text end new text begin best practices learned from
those schools that demonstrate accelerated growth compared to the state growth norm new text end .

new text begin The commissioner also must use those learned best practices to provide additional
assistance and intervention support to a district or school site that does not meet either
federally mandated expectations or the state growth norm.
new text end

Subd. 5.

Improving graduation rates for students with emotional or behavioral
disorders.

(a) A district must develop strategies in conjunction with parents of students
with emotional or behavioral disorders and the county board responsible for implementing
sections 245.487 to 245.4889 to keep students with emotional or behavioral disorders in
school, when the district has a drop-out rate for students with an emotional or behavioral
disorder in grades 9 through 12 exceeding 25 percent.

(b) A district must develop a plan in conjunction with parents of students with
emotional or behavioral disorders and the local mental health authority to increase the
graduation rates of students with emotional or behavioral disorders. A district with a
drop-out rate for children with an emotional or behavioral disturbance in grades 9 through
12 that is in the top 25 percent of all districts shall submit a plan for review and oversight
to the commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin Subdivision 3, paragraph (b), applies to students in the
2009-2010 school year and later. Subdivision 3, paragraph (c), applies to students in the
2010-2011 school year and later. Subdivision 3, paragraph (d), applies to high school
students in the 2009-2010 school year and later, and to students in any grades 4 through 8
in the 2010-2011 school year and later, consistent with the commissioner's grade level
determinations. Subdivision 4 applies in the 2011-2012 school year and later.
new text end

Sec. 14.

Minnesota Statutes 2006, section 120B.36, as amended by Laws 2007, chapter
146, article 2, section 11, is amended to read:

120B.36 SCHOOL ACCOUNTABILITY; APPEALS PROCESS.

Subdivision 1.

School performance report cards.

(a) The commissioner shall deleted text begin use
objective criteria based on levels of student performance to deleted text end report deleted text begin at least deleted text end student academic
performance new text begin under section 120B.35, subdivision 2, a table showing the percentages
of students at and above the state growth norm under section 120B.35, subdivision 3,
paragraph (b) new text end , school safety new text begin and student engagement under section 120B.35, subdivision
3, paragraph (d), rigorous coursework under section 120B.35, subdivision 3, paragraph
(c) new text end , two separate student-to-teacher ratios that clearly indicate the definition of teacher
consistent with sections 122A.06 and 122A.15 for purposes of determining these ratios,
deleted text begin and deleted text end staff characteristics new text begin excluding salaries new text end , deleted text begin with a value-added component added no later
than the 2008-2009 school year deleted text end new text begin student enrollment demographics, district mobility, and
extracurricular activities new text end . deleted text begin The report must indicate a school's adequate yearly progress
status, and must not set any designations applicable to high- and low-performing schools
due solely to adequate yearly progress status.
deleted text end

(b) The commissioner shall develop, annually update, and post on the department
Web site school performance report cards.

(c) The commissioner must make available deleted text begin the first deleted text end performance report cards by
deleted text begin November 2003, and during deleted text end the beginning of each school year deleted text begin thereafter deleted text end .

(d) A school or district may appeal its adequate yearly progress status in writing to
the commissioner within 30 days of receiving the notice of its status. The commissioner's
decision to uphold or deny an appeal is final.

(e) School performance report deleted text begin cards deleted text end new text begin card new text end data are nonpublic data under section
13.02, subdivision 9, until not later than ten days after the appeal procedure described in
paragraph (d) concludes. The department shall annually post school performance report
cards to its public Web site no later than September 1.

Subd. 2.

Adequate yearly progress data.

All data the department receives,
collects, or creates deleted text begin for purposes of determining deleted text end new text begin to determine new text end adequate yearly progress
deleted text begin designations deleted text end new text begin status new text end under Public Law 107-110, section 1116, new text begin set state growth norms, and
determine student growth new text end are nonpublic data under section 13.02, subdivision 9, until not
later than ten days after the appeal procedure described in subdivision 1, paragraph (d),
concludes. Districts must provide parents sufficiently detailed summary data to permit
parents to appeal under Public Law 107-110, section 1116(b)(2). The department shall
annually post new text begin federally mandated new text end adequate yearly progress data new text begin and state student growth
data new text end to its public Web site no later than September 1.

new text begin EFFECTIVE DATE. new text end

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

Sec. 15.

Minnesota Statutes 2006, section 120B.362, is amended to read:

120B.362 new text begin GROWTH-BASED new text end VALUE-ADDED ASSESSMENT PROGRAM.

deleted text begin (a) deleted text end The commissioner of education must implement a new text begin growth-based new text end value-added
assessment program to assist school districts, public schools, and charter schools in
assessing and reporting individual students' growth in academic achievement under section
120B.30, subdivision 1a. The program must use assessments of individual students'
academic achievement to make longitudinal comparisons of each student's academic
growth over time. deleted text begin School districts, public schools, and charter schools may apply to the
commissioner to participate in the initial trial program using a form and in the manner the
commissioner prescribes. The commissioner must select program participants from urban,
suburban, and rural areas throughout the state.
deleted text end

deleted text begin (b) The commissioner may issue a request for proposals to contract with an
organization that provides a value-added assessment model that reliably estimates school
and school district effects on students' academic achievement over time. The model the
commissioner selects must accommodate diverse data and must use each student's test
data across grades. Data on individual teachers generated under the model are personnel
data under section 13.43.
deleted text end

deleted text begin (c) The contract under paragraph (b) must be consistent with the definition of "best
value" under section 16C.02, subdivision 4.
deleted text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 16.

Minnesota Statutes 2006, section 121A.035, subdivision 2, is amended to read:

Subd. 2.

School district and charter school policy.

A school board and a
charter school must adopt a crisis management policy to address potential violent crisis
situations in the district or charter school. The policy must be developed cooperatively
with administrators, teachers, employees, students, parents, community members, law
enforcement agencies, other emergency management officials, county attorney offices,
social service agencies, emergency medical responders, and any other appropriate
individuals or organizations. The policy must include at least five school lock-down
drills, five school fire drills consistent with section 299F.30, deleted text begin and deleted text end one tornado drill new text begin , and an
expectation that students be present and participate in these drills. This section does not
apply to a full-time online learning student under section 124D.095 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2008-2009 school year and
later.
new text end

Sec. 17.

Minnesota Statutes 2006, section 121A.037, is amended to read:

121A.037 SCHOOL SAFETY DRILLS.

Private schools and educational institutions not subject to section 121A.035 must
have at least five school lock-down drills, five school fire drills consistent with section
299F.30, deleted text begin and deleted text end one tornado drill new text begin , and an expectation that students be present and participate
in these drills new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2008-2009 school year and
later.
new text end

Sec. 18.

new text begin [121A.37] ENVIRONMENTALLY SENSITIVE CLEANING AND
MAINTENANCE PRODUCTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following
definitions apply.
new text end

new text begin (b) "Environmentally sensitive cleaning and maintenance products" means cleaning
and maintenance products that minimize adverse impacts on human health and the
environment.
new text end

new text begin (c) "School" has the meaning given under section 120A.22, subdivision 4, excluding
home schools.
new text end

new text begin Subd. 2. new text end

new text begin Use of environmentally sensitive cleaning and maintenance products.
new text end

new text begin By September 1, 2009, a school may follow the specifications established under
subdivision 4 regarding the purchase and use of environmentally sensitive cleaning and
maintenance products, where economically feasible. A school may deplete existing
cleaning and maintenance product supplies purchased prior to this date. A school shall
annually review the school's cleaning and maintenance product purchasing practices, as
they relate to the specifications established under subdivision 4.
new text end

new text begin Subd. 3. new text end

new text begin Task force. new text end

new text begin (a) The commissioner of education shall appoint an
Environmentally Sensitive Product Task Force composed of the following members:
new text end

new text begin (1) the commissioner of education or the commissioner's designee;
new text end

new text begin (2) the commissioner of administration or the commissioner's designee;
new text end

new text begin (3) the commissioner of health or the commissioner's designee;
new text end

new text begin (4) the commissioner of natural resources or the commissioner's designee;
new text end

new text begin (5) the commissioner of the Pollution Control Agency or the commissioner's
designee;
new text end

new text begin (6) the commissioner of labor and industry or the commissioner's designee;
new text end

new text begin (7) one member from the environmentally sensitive cleaning and maintenance
product industry to be appointed by the commissioner;
new text end

new text begin (8) two members from environmental advocacy groups with knowledge of
environmentally sensitive cleaning and maintenance products to be appointed by the
commissioner;
new text end

new text begin (9) two school superintendents to be appointed by the commissioner; and
new text end

new text begin (10) a school nutrition professional appointed by the commissioner.
new text end

new text begin (b) The appointing authorities under paragraph (a) must complete their appointments
by June 30, 2011. The commissioner of education or the commissioner's designee shall
serve as the chair of the task force and convene the first meeting of the task force. The
commissioner shall provide meeting space and the necessary support staff for the task
force. Members of the task force serve until their appointing authority designates a
successor.
new text end

new text begin (c) Notwithstanding section 15.059, subdivision 5, the task force expires ......., 20...
new text end

new text begin Subd. 4. new text end

new text begin Environmentally sensitive cleaning and maintenance product
guidelines and specifications. new text end

new text begin (a) By January 1, 2009, the commissioner of education, in
cooperation with the task force established under subdivision 3, shall establish guidelines
and specifications for the purchase and use of environmentally sensitive cleaning and
maintenance products in schools. In developing the guidelines and specifications, the task
force shall review and evaluate existing standards established by other states regarding
environmentally sensitive cleaning and maintenance products, and research and guidance
issued by the United States Environmental Protection Agency and the Office of the
Federal Environmental Executive.
new text end

new text begin (b) The commissioner of education shall inform schools of the requirements of this
section, distribute the guidelines and specifications developed in paragraph (a) to all
schools, and make information regarding the requirements, guidelines, and specifications
available on the agency's Web site.
new text end

new text begin (c) By January 1, 2010, and annually thereafter, the commissioner, in cooperation
with the task force established in subdivision 3, shall review and issue any revisions to
the guidelines and specifications to reflect new research and guidance available. The
commissioner shall inform all schools of any revisions and post the updated guidelines
and specifications on the agency's Web site.
new text end

new text begin (d) The guidelines and specifications established under this section shall not prohibit
the use of disinfectants, disinfecting cleaners, sanitizers, or any other antimicrobial product
regulated by the federal Insecticide, Fungicide, and Rodenticide Act (United States Code,
title 7, section 136, et seq.), when necessary to protect public health and provided that the
use of these products is in accordance with responsible cleaning procedure requirements.
new text end

new text begin Subd. 5. new text end

new text begin Rule making exemption. new text end

new text begin The guidelines and specifications developed
under this section are exempt from the rulemaking provisions of chapter 14. The
guidelines and specifications are subject to section 14.386, except that notwithstanding
section 14.386, paragraph (b), the guidelines and specifications continue in effect until
repealed or superseded by other law or rule.
new text end

Sec. 19.

Minnesota Statutes 2006, section 122A.06, subdivision 4, is amended to read:

Subd. 4.

Comprehensive, scientifically based reading instruction.

new text begin (a)
new text end "Comprehensive, scientifically based reading instruction" includes a program or collection
of instructional practices that is based on deleted text begin reliable, deleted text end valid new text begin , replicated new text end evidence showing
that when these programs or practices are used, students can be expected to achieve, at
a minimum, satisfactory reading progress. The program or collection of practices must
include, at a minimum, instruction in five areas of reading: phonemic awareness, phonics,
fluency, vocabulary new text begin development new text end , and deleted text begin text deleted text end new text begin reading new text end comprehension.

Comprehensive, scientifically based reading instruction also includes and integrates
instructional strategies for continuously assessing, evaluating, and communicating
the student's reading progress and needs in order to design and implement ongoing
interventions so that students of all ages and proficiency levels can read and comprehend
text and apply higher level thinking skills.

new text begin (b) "Phonemic awareness" is the ability of students to notice, think about, and
manipulate the individual sounds in spoken syllables and words.
new text end

new text begin (c) "Phonics" is the understanding that there are systematic and predictable
relationships between written letters and spoken words. Phonics instruction is a way
of teaching reading that stresses learning how letters correspond to sounds and how to
apply this knowledge in reading and spelling.
new text end

new text begin (d) "Fluency" is the ability of students to be able to read orally with speed, accuracy,
and proper expression.
new text end

new text begin (e) "Vocabulary development" is the process of teaching vocabulary both directly
and indirectly, with repetition and multiple exposures to vocabulary items. Learning
in rich contexts, incidental learning, and use of computer technology all enhance the
acquisition of vocabulary.
new text end

new text begin (f) "Reading comprehension" is an active process that requires intentional thinking
during which meaning is constructed through interactions between text and reader.
Comprehension skills are taught explicitly by demonstrating, explaining, modeling, and
implementing specific cognitive strategies to help beginning readers derive meaning by
intentional, problem-solving thinking processes.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 20.

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. 21.

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. 22.

Minnesota Statutes 2006, section 122A.09, subdivision 4, is amended to read:

Subd. 4.

License and rules.

(a) The board must adopt rules to license public school
teachers and interns subject to chapter 14.

(b) The board must adopt rules requiring a person to successfully complete a skills
examination in reading, writing, and mathematics as a requirement for initial teacher
licensure. Such rules must require college and universities offering a board-approved
teacher preparation program to provide remedial assistance to persons who did not
achieve a qualifying score on the skills examination, including those for whom English is
a second language.

(c) The board must adopt rules to approve teacher preparation programs. The board,
upon the request of a postsecondary student preparing for teacher licensure or a licensed
graduate of a teacher preparation program, shall assist in resolving a dispute between the
person and a postsecondary institution providing a teacher preparation program when the
dispute involves an institution's recommendation for licensure affecting the person or the
person's credentials. At the board's discretion, assistance may include the application
of chapter 14.

(d) The board must provide the leadership and shall adopt rules for the redesign of
teacher education programs to implement a research based, results-oriented curriculum
that focuses on the skills teachers need in order to be effective. The board shall implement
new systems of teacher preparation program evaluation to assure program effectiveness
based on proficiency of graduates in demonstrating attainment of program outcomes.

(e) The board must adopt rules requiring successful completion of an examination
of general pedagogical knowledge and examinations of licensure-specific teaching
skills. The rules shall be effective on the dates determined by the board but not later
than September 1, 2001.

(f) The board must adopt rules requiring teacher educators to work directly with
elementary or secondary school teachers in elementary or secondary schools to obtain
periodic exposure to the elementary or secondary teaching environment.

(g) The board must grant licenses to interns and to candidates for initial licenses.

(h) The board must design and implement an assessment system which requires a
candidate for an initial license and first continuing license to demonstrate the abilities
necessary to perform selected, representative teaching tasks at appropriate levels.

(i) The board must receive recommendations from local committees as established
by the board for the renewal of teaching licenses.

(j) The board must grant life licenses to those who qualify according to requirements
established by the board, and suspend or revoke licenses pursuant to sections 122A.20 and
214.10. The board must not establish any expiration date for application for life licenses.

(k) The board must adopt rules that require all licensed teachers who are renewing
their continuing license to include in their renewal requirements further preparation in
the areas of using positive behavior interventions and in accommodating, modifying, and
adapting curricula, materials, and strategies to appropriately meet the needs of individual
students and ensure adequate progress toward the state's graduation rule.

(l) In adopting rules to license public school teachers who provide health-related
services for disabled children, the board shall adopt rules consistent with license or
registration requirements of the commissioner of health and the health-related boards who
license personnel who perform similar services outside of the school.

(m) The board must adopt rules that require all licensed teachers who are renewing
their continuing license to include in their renewal requirements further reading
preparation, consistent with section 122A.06, subdivision 4. The rules do not take effect
until they are approved by law. Teachers who do not provide direct instruction including, at
least, counselors, school psychologists, school nurses, school social workers, audiovisual
directors and coordinators, and recreation personnel are exempt from this section.

(n) The board must adopt rules that require all licensed teachers who are renewing
their continuing license to include in their renewal requirements further preparation
in understanding the key warning signs of early-onset mental illness in children and
adolescents.

new text begin (o) When reviewing and revising rules, the board must align the requirements for
teacher preparation programs to reflect the expectation that all students can successfully
complete rigorous academic coursework.
new text end

Sec. 23.

Minnesota Statutes 2006, section 122A.18, subdivision 2, is amended to read:

Subd. 2.

Teacher and support personnel qualifications.

(a) The Board of
Teaching must issue licenses under its jurisdiction to persons the board finds to be
qualified and competent for their respective positions.

(b) The board must require a person to successfully complete an examination of
skills in reading, writing, and mathematics before being granted an initial teaching license
to provide direct instruction to pupils in prekindergarten, elementary, secondary, or special
education programs. new text begin In addition, the board must require a person to successfully complete
a Minnesota reading instruction competence assessment consistent with subdivision 2c
before being granted an initial teaching license to provide direct instruction to pupils in
prekindergarten or elementary programs. new text end The board must require colleges and universities
offering a board approved teacher preparation program to provide remedial assistance
that includes a formal diagnostic component to persons enrolled in their institution
who did not achieve a qualifying score on the skills examination new text begin or Minnesota reading
instruction competence assessment new text end , including those for whom English is a second
language. The colleges and universities must provide assistance in the specific academic
areas of deficiency in which the person did not achieve a qualifying score. School
districts must provide similar, appropriate, and timely remedial assistance that includes a
formal diagnostic component and mentoring to those persons employed by the district
who completed their teacher education program outside the state of Minnesota, received
a one-year license to teach in Minnesota and did not achieve a qualifying score on the
skills examination, including those persons for whom English is a second language. The
Board of Teaching shall report annually to the education committees of the legislature
on the total number of teacher candidates during the most recent school year taking the
skills examination, the number who achieve a qualifying score on the examination, the
number who do not achieve a qualifying score on the examination, the distribution of all
candidates' scores, the number of candidates who have taken the examination at least once
before, and the number of candidates who have taken the examination at least once before
and achieve a qualifying score.

(c) A person who has completed an approved teacher preparation program and
obtained a one-year license to teach, but has not successfully completed the skills
examination, may renew the one-year license for two additional one-year periods. Each
renewal of the one-year license is contingent upon the licensee:

(1) providing evidence of participating in an approved remedial assistance program
provided by a school district or postsecondary institution that includes a formal diagnostic
component in the specific areas in which the licensee did not obtain qualifying scores; and

(2) attempting to successfully complete the skills examination during the period
of each one-year license.

(d) The Board of Teaching must grant continuing licenses only to those persons who
have met board criteria for granting a continuing license, which includes successfully
completing the skills examination in reading, writing, and mathematics new text begin and, where
applicable, the reading instruction competence assessment new text end .

(e) All colleges and universities approved by the board of teaching to prepare
persons for teacher licensure must include in their teacher preparation programs a common
core of teaching knowledge and skills to be acquired by all persons recommended
for teacher licensure. This common core shall meet the standards developed by the
interstate new teacher assessment and support consortium in its 1992 "model standards for
beginning teacher licensing and development." Amendments to standards adopted under
this paragraph are covered by chapter 14. The board of teaching shall report annually to
the education committees of the legislature on the performance of teacher candidates
on common core assessments of knowledge and skills under this paragraph during the
most recent school year.

new text begin EFFECTIVE DATE. new text end

new text begin Subdivision 2, paragraph (b), is effective July 1, 2010, and
subdivision 2, paragraph (d), is effective July 1, 2013.
new text end

Sec. 24.

Minnesota Statutes 2006, section 122A.18, subdivision 2a, is amended to read:

Subd. 2a.

Reading strategies.

(a) All colleges and universities approved by the
Board of Teaching to prepare persons for classroom teacher licensure must include in
their teacher preparation programs research-based best practices in reading, consistent
with section 122A.06, subdivision 4, that enable the licensure candidate to know how to
teach reading in the candidate's content areas new text begin and prepare the licensure candidate, where
applicable, for the Minnesota reading instruction competence assessment new text end .

(b) Board-approved teacher preparation programs for teachers of elementary
education must require instruction in the application of comprehensive, scientifically
based deleted text begin , and balanced deleted text end reading instruction programs that:

(1) teach students to read using foundational knowledge, practices, and strategies
consistent with section 122A.06, subdivision 4, so that all students will achieve continuous
progress in reading; and

(2) teach specialized instruction in reading strategies, interventions, and remediations
that enable students of all ages and proficiency levels to become proficient readers.

new text begin EFFECTIVE DATE. new text end

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

Sec. 25.

Minnesota Statutes 2006, section 122A.18, is amended by adding a
subdivision to read:

new text begin Subd. 2c. new text end

new text begin Minnesota reading instruction competence assessment. new text end

new text begin The Minnesota
reading instruction competence assessment must measure the knowledge, skill, and
ability of prekindergarten and elementary instructors in comprehensive, scientifically
based reading instruction as defined in section 122A.06. The assessment must have
been previously administered in another state for over five years and be composed
of multiple choice and constructed response questions designed to measure reading
instruction knowledge and skills. Test content areas must assess foundations of reading
development, development of reading comprehension, reading assessment and instruction,
and integration of knowledge and understanding.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 26.

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, new text begin English-language learners, new text end 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. 27.

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. 28.

Minnesota Statutes 2006, section 123B.88, subdivision 3, is amended to read:

Subd. 3.

Transportation services contracts new text begin ; requirements new text end .

new text begin (a) new text end The board may
contract for the furnishing of authorized transportation under section 123B.52, and may
purchase gasoline and furnish same to a contract carrier for use in the performance of a
contract with the school district for transportation of school children to and from school.

new text begin (b) An initiated transportation service contract shall include by contract language,
addendum, or supplementary information terms addressing:
new text end

new text begin (1) a summary of school bus driver training requirements, including the minimum
number of preservice training hours and the minimum number of inservice training hours;
new text end

new text begin (2) a driver recruitment and retention plan, including:
new text end

new text begin (i) an explanation of the actions the contractor has taken or will take to recruit
qualified drivers for the transportation services contract;
new text end

new text begin (ii) an explanation of the process for screening applicants to be certain that they
meet the school bus driver requirements of federal law, state law, and of the transportation
service contract, including federal and state controlled substance and alcohol testing
requirements;
new text end

new text begin (iii) an explanation of the training that drivers receive prior to assignment to
transportation service; and
new text end

new text begin (iv) an explanation of the actions of the employer to retain qualified drivers to meet
requirements of the transportation services contract, including an explanation of wage
rates and employee benefits and policies on compensated absences such as paid vacations,
holidays, and sick leave;
new text end

new text begin (3) the reporting to the local school district of all school bus accidents;
new text end

new text begin (4) the reporting to the local school district of all school bus driver reported traffic
convictions, based upon the requirement of commercial drivers to report traffic convictions
to their employer under Federal Motor Carrier Safety Administration, rule 383.31;
new text end

new text begin (5) the reporting within one week to the local school district the results of any
Minnesota Highway Patrol inspection of school buses being regularly utilized for the
transportation under the transportation contract;
new text end

new text begin (6) the school bus driver employee turnover ratio as defined as the number of school
bus drivers during the most recent school year, divided by the daily average number of
school bus drivers during the same regular school year within bus garage location or
other reasonable basis. The turnover rate may exclude those drivers whose employment
is terminated or who are otherwise removed from service at the direction of the local
school district; and
new text end

new text begin (7) the date of hire of the employer's current employees identified by their job
classification, which may include any relevant prior experience. Summer and other regular
school breaks should not be considered interruptions to employment.
new text end

new text begin (c) Notwithstanding section 123B.52, a school district may award a transportation
contract in the interest of student safety and cost effectiveness.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2008.
new text end

Sec. 29.

new text begin [123B.915] SCHOOL BUS DRIVERS.
new text end

new text begin Subdivision 1. new text end

new text begin Driver pay. new text end

new text begin School bus driver employees must be paid for the
actual time worked. If a route pay system or hourly estimation is used, school bus driver
employees must be scheduled and paid for actual time for required inspection of buses.
new text end

new text begin Subd. 2. new text end

new text begin Right to refuse. new text end

new text begin School bus drivers who document needed bus repairs
shall have the right to refuse to operate the bus immediately for a safety-related repair,
which meets the out-of-service definition of Minnesota Rules, part 7470.0600. In this
situation, the driver shall be provided an alternate bus, if available, and time to inspect it.
The driver shall not be penalized in any way for fees, fines, or consequences incurred by
the employer for delays or failure to provide the transportation service in a timely manner
in this situation. Nothing in this section may diminish the rights, pay, or benefits of drivers
covered by a collective bargaining agreement with an exclusive representative.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2008.
new text end

Sec. 30.

Minnesota Statutes 2006, section 124D.09, subdivision 3, is amended to read:

Subd. 3.

Definitions.

For purposes of this section, the following terms have the
meanings given to them.

(a) "Eligible institution" means a Minnesota public postsecondary institution, a
private, nonprofit two-year trade and technical school granting associate degrees, an
opportunities industrialization center accredited by the North Central Association of
Colleges and Schools, or a private, residential, two-year or four-year, liberal arts,
degree-granting college or university located in Minnesota.

(b) "Course" means a course or program.

new text begin (c) "Full time" means no less than 12 semester hours of college credit and no more
than 15 semester hours of college credit per semester.
new text end

new text begin (d) "Secondary pupils" means a high school student requiring four semesters or less
of full-time enrollment to meet requirements necessary for a high school diploma.
new text end

Sec. 31.

Minnesota Statutes 2006, section 124D.09, subdivision 5, is amended to read:

Subd. 5.

Authorization; notification.

Notwithstanding any other law to the
contrary, an 11th or 12th grade pupil enrolled in a school or an American Indian-controlled
tribal contract or grant school eligible for aid under section 124D.83, except a foreign
exchange pupil enrolled in a district under a cultural exchange program, may apply to an
eligible institution, as defined in subdivision 3, to enroll in nonsectarian courses offered by
that postsecondary institution. If an institution accepts a secondary pupil for enrollment
under this section, the institution shall send written notice to the pupil, the pupil's school
or school district, and the commissioner within ten days of acceptance. The notice must
indicate the course and hours of enrollment of that pupil. If the pupil enrolls in a course
for postsecondary credit new text begin only new text end , the institution must notify the pupil about payment in the
customary manner used by the institution.

Sec. 32.

Minnesota Statutes 2006, section 124D.09, subdivision 7, is amended to read:

Subd. 7.

Dissemination of information; notification of intent to enroll.

By March
1 of each year, a district must provide general information about the program to all pupils
in grades 10 and 11. To assist the district in planning, a pupil shall inform the district deleted text begin by deleted text end new text begin
no earlier than new text end March 30 of each year new text begin and no later than May 1 of each year new text end of the pupil's
intent to enroll in postsecondary courses during the following school year. deleted text begin A pupil is not
bound by notifying or not notifying the district by March 30.
deleted text end

Sec. 33.

Minnesota Statutes 2006, section 124D.09, subdivision 16, is amended to read:

Subd. 16.

Financial arrangements for courses provided according to
agreements.

(a) The agreement between a board and the governing body of a public
postsecondary system or private postsecondary institution shall set forth the payment
amounts and arrangements, if any, from the board to the postsecondary institution. No
payments shall be made by the department according to subdivision 13 or 15. For the
purpose of computing state aids for a district, a pupil enrolled according to subdivision
10 shall be counted in the average daily membership of the district as though the pupil
were enrolled in a secondary course that is not offered in connection with an agreement.
Nothing in this subdivision shall be construed to prohibit a public postsecondary system
or private postsecondary institution from receiving additional state funding deleted text begin that may be
available under any other law deleted text end new text begin not linked to calculation of state per pupil general education
revenue formula under section 126C.10, subdivision 2 new text end .

(b) If a course is provided under subdivision 10, offered at a secondary school, and
taught by a secondary teacher, the postsecondary system or institution must not require a
payment from the school board that exceeds the cost to the postsecondary institution that
is directly attributable to providing that course.

Sec. 34.

Minnesota Statutes 2006, section 124D.09, subdivision 24, is amended to read:

Subd. 24.

Limit; state obligation.

The provisions of subdivisions 13, 19, 22, and
23 shall not apply for any postsecondary courses in which a pupil is enrolled in addition
to being enrolled full time in that pupil's district or for any postsecondary course in
which a pupil is enrolled for postsecondary credit. deleted text begin The pupil is enrolled full time if the
pupil attends credit-bearing classes in the high school or high school program for all of
the available hours of instruction.
deleted text end

Sec. 35.

Minnesota Statutes 2007 Supplement, section 124D.095, subdivision 3,
is amended to read:

Subd. 3.

Authorization; notice; limitations on enrollment.

(a) A student may
apply for full-time enrollment in an approved online learning program under section
124D.03, 124D.08 or 124D.10 deleted text begin , or for supplemental online learning deleted text end . Notwithstanding
sections 124D.03, 124D.08, and 124D.10, procedures for enrolling in new text begin supplemental new text end online
learning shall be as provided in this subdivision. A student age 17 or younger must
have the written consent of a parent or guardian to apply. No school district or charter
school may prohibit a student from applying to enroll in online learning. In order that a
student may enroll in online learning, the student and the student's parents must submit an
application to the online learning provider and identify the reason for enrolling in online
learning. The online learning provider that accepts a student under this section must within
ten days notify the student and the enrolling district in writing if the enrolling district is
not the online learning provider. The student and family must notify the online learning
provider of their intent to enroll in online learning within ten days of acceptance, at which
time the student and parent must sign a statement of assurance that they have reviewed the
online course or program and understand the expectations of online learning enrollment.
The online learning provider must notify the enrolling district of the student's deleted text begin enrollment deleted text end new text begin
application to enroll new text end in online learning in writing on a form provided by the department.

(b) Supplemental online learning notification to the enrolling district upon student
deleted text begin enrollment in deleted text end new text begin application to new text end the online learning deleted text begin program deleted text end new text begin provider new text end will include the
courses or program, credits to be awarded, new text begin and new text end the start date of online enrollment deleted text begin , and
confirmation deleted text end new text begin . 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 confirm new text end that the courses will meet the student's graduation plan new text begin
before the student is enrolled in the online program new text end . A student may enroll in supplemental
online learning courses up to the midpoint of the enrolling district's term. The enrolling
district may waive this requirement for special circumstances and upon acceptance by
the online provider.

(c) An online learning provider must notify the commissioner that it is delivering
online learning and report the number of online learning students it is accepting and the
online learning courses and programs it is delivering.

(d) An online learning provider may limit enrollment if the provider's school board
or board of directors adopts by resolution specific standards for accepting and rejecting
students' applications.

(e) An enrolling district may reduce an online learning student's regular classroom
instructional membership in proportion to the student's membership in online learning
courses.

new text begin (f) The online provider must report student progress to the enrolling district in a
manner specified by the commissioner. The enrolling district must designate a contact
person to assist in monitoring student progress.
new text end

Sec. 36.

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. deleted text begin 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. deleted text end 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 new text begin or charter school new text end may offer online learning to its enrolled
students. Such online learning does not generate online learning funds under this section.
An enrolling district new text begin or charter school new text end 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 or charter school 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 new text begin or charter school new text end . 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) deleted text begin An deleted text end new text begin A full-time new text end online learning provider deleted text begin that is not the enrolling district deleted 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. 37.

Minnesota Statutes 2007 Supplement, section 124D.095, subdivision 7,
is amended to read:

Subd. 7.

Department of Education.

(a) The department must review and certify
online learning providers. The online learning courses and programs must be rigorous,
aligned with state academic standards, and contribute to grade progression in a single
subject. Online learning providers must demonstrate to the commissioner that online
learning courses deleted text begin have equivalent deleted text end new text begin meet professional new text end standards deleted text begin or deleted text end new text begin of new text end instruction, curriculum,
and assessment deleted text begin requirements as other courses offered to enrolled students deleted text end new text begin as indicated in a
syllabus submitted according to the commissioner's requirements new text end . The online learning
provider must also demonstrate expectations for actual teacher contact time or other
student-to-teacher communication. Once an online learning provider is approved under
this paragraph, all of its online learning course offerings are eligible for payment under
this section unless a course is successfully challenged by an enrolling district or the
department under paragraph (b).

(b) An enrolling district may challenge the validity of a course offered by an online
learning provider. The department must review such challenges based on the certification
procedures under paragraph (a). The department may initiate its own review of the validity
of an online learning course offered by an online learning provider.

(c) The department may collect a fee not to exceed $250 for certifying online
learning providers or $50 per course for reviewing a challenge by an enrolling district.

(d) The department must develop, publish, and maintain a list of approved online
learning providers and online learning courses and programs that it has reviewed and
certified.

Sec. 38.

Minnesota Statutes 2006, section 124D.095, subdivision 10, is amended to
read:

Subd. 10.

Online Learning Advisory Council.

deleted text begin (a) deleted text end An Online Learning 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 12 members from throughout
the state who have demonstrated experience with or interest in online learning. 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 online learning and
provide input to the department in matters related, but not restricted, to:

(1) quality assurance;

(2) teacher qualifications;

(3) program approval;

(4) special education;

(5) attendance;

(6) program design and requirements; and

(7) fair and equal access to programs.

deleted text begin (b) The Online Learning Advisory Council under this subdivision expires June
30, 2008.
deleted text end

Sec. 39.

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. 40.

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 with the commissioner stating its intent to authorize a charter school. The
affidavit must new text begin demonstrate the sponsor's abilities, capacities, and expertise in fulfilling the
responsibilities of a sponsor and new text end 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. The sponsor must submit
an affidavit to the commissioner for each charter school it proposes to authorize new text end . The
commissioner must approve or disapprove the sponsor's proposed authorization within
90 days of receipt of the affidavit. Failure to obtain commissioner approval precludes a
sponsor from authorizing the charter school that was the subject of the affidavit.

(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 new text begin nonrelated new text end
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 deleted text begin may deleted text end new text begin are eligible to new text end 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.

new text begin (e) The granting or renewal of a charter school by a sponsor must not be contingent
on the charter school being required to contract, lease, or purchase services from the
sponsor. A sponsor is prohibited from entering into a contract to provide management and
financial services for a school that it is authorized to sponsor.
new text end

deleted text begin (e) deleted text end new text begin (f) new text end 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.

deleted text begin (f) deleted text end new text begin (g) new text end 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. 41.

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. new text begin A violation
of this requirement renders a contract voidable at the option of the commissioner. The
charter school's aid may be reduced by the commissioner under section 127A.42 if the
charter school fails to correct violations under this subdivision in a timely manner.
new text end

(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. 42.

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

Subd. 6.

Contract.

The sponsor's authorization for a charter school must be in the
form of a written contract signed by the sponsor and the board of directors of the charter
school. The contract must be completed within 90 days of the commissioner's approval
of the sponsor's proposed authorization. The contract for a charter school must be in
writing and contain at least the following:

(1) a description of a program that carries out one or more of the purposes in
subdivision 1;

(2) specific outcomes pupils are to achieve under subdivision 10;

(3) admission policies and procedures;

(4) management and administration of the school;

(5) requirements and procedures for program and financial audits;

(6) how the school will comply with subdivisions 8, 13, 16, and 23;

(7) assumption of liability by the charter school;

(8) types and amounts of insurance coverage to be obtained by the charter school;

(9) the term of the contract, which may be up to three years new text begin for the initial contract,
and up to five years for renewed contracts based on the academic, financial, and
operational performance of the school new text end ;

(10) deleted text begin if deleted text end new text begin how new text end the board of directors or the operators of the charter school new text begin will new text end provide
special instruction and services for children with a disability under sections 125A.03
to 125A.24, and 125A.65, a description of the financial parameters within which the
charter school will operate to provide the special instruction and services to children
with a disability; and

(11) the process and criteria the sponsor intends to use to monitor and evaluate the
fiscal and student performance of the charter school, consistent with subdivision 15.

Sec. 43.

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. 44.

Minnesota Statutes 2006, section 124D.10, subdivision 20, is amended to read:

Subd. 20.

Leave to teach in a charter school.

If a teacher employed by a district
makes a written request for an extended leave of absence to teach at a charter school, the
district must grant the leave. The district must grant a leave not to exceed a total of five
years. Any request to extend the leave shall be granted only at the discretion of the school
board. The district may require that the request for a leave or extension of leave be made
deleted text begin up to 90 days before the teacher would otherwise have to report for duty deleted text end new text begin before February
1 in the school year preceding the school year in which the teacher wishes to return, or
February 1 of the calendar year in which the leave is scheduled to terminate new text end . Except as
otherwise provided in this subdivision and except for section 122A.46, subdivision 7, the
leave is governed by section 122A.46, including, but not limited to, reinstatement, notice
of intention to return, seniority, salary, and insurance.

During a leave, the teacher may continue to aggregate benefits and credits in the
Teachers' Retirement Association account by paying both the employer and employee
contributions based upon the annual salary of the teacher for the last full pay period before
the leave began. The retirement association may impose reasonable requirements to
efficiently administer this subdivision.

Sec. 45.

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). 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 new text begin by registered mail new text end . 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 deleted text begin by the last day of classes in the school year deleted text end new text begin no later than 15 days before
the termination date or the end of the contract new text end . If the sponsor is a local board, the school's
board of directors may appeal the sponsor's decision to the commissioner.

(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, deleted text begin either deleted text end the sponsor deleted text begin or deleted text end new text begin and new text end the charter school
board of directors deleted text begin wants deleted text end new text begin mutually agree new text end to voluntarily terminate the contract, a change
in sponsors is allowed if the commissioner approves the decision of a different eligible
sponsor to authorize the charter school. deleted text begin 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. deleted text end new text begin Both parties must jointly submit in writing to the commissioner
its intent to terminate the contract. new text end 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) new text begin sustained failure to meet the requirements for pupil performance contained
in the contract;
new text end

new text begin (2) new text end financial mismanagement; deleted text begin or
deleted text end

deleted text begin (2) deleted text end new text begin (3) new text end repeated violations of the law new text begin ; or
new text end

new text begin (4) other good cause shown new text end .

Sec. 46.

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. 47.

Minnesota Statutes 2006, section 124D.68, subdivision 2, is amended to read:

Subd. 2.

Eligible pupils.

new text begin (a) new text end A pupil under the age of 21 or who meets the
requirements of section 120A.20, subdivision 1, paragraph (c), is eligible to participate in
the graduation incentives program, if the pupil:

(1) performs substantially below the performance level for pupils of the same age
in a locally determined achievement test;

(2) is at least one year behind in satisfactorily completing coursework or obtaining
credits for graduation;

(3) is pregnant or is a parent;

(4) has been assessed as chemically dependent;

(5) has been excluded or expelled according to sections 121A.40 to 121A.56;

(6) has been referred by a school district for enrollment in an eligible program or
a program pursuant to section 124D.69;

(7) is a victim of physical or sexual abuse;

(8) has experienced mental health problems;

(9) has experienced homelessness sometime within six months before requesting a
transfer to an eligible program;

(10) speaks English as a second language or has limited English proficiency; or

(11) has withdrawn from school or has been chronically truant; or

(12) is being treated in a hospital in the seven-county metropolitan area for cancer or
other life threatening illness or is the sibling of an eligible pupil who is being currently
treated, and resides with the pupil's family at least 60 miles beyond the outside boundary
of the seven-county metropolitan area.

new text begin (b) A pupil who is between the ages of 16 and 21 who meets the criteria of clauses
(2), (5), or (11) may be assigned to an area learning center by the district only after
consultation with the pupil and their parent.
new text end

Sec. 48.

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. 49.

Minnesota Statutes 2006, section 260C.007, subdivision 19, is amended to
read:

Subd. 19.

Habitual truant.

"Habitual truant" means a child under the age of deleted text begin 16 deleted text end new text begin
18 new text end years who is absent from attendance at school without lawful excuse for seven school
days new text begin per school year new text end if the child is in elementary school or for one or more class periods
on seven school days new text begin per school year new text end if the child is in middle school, junior high school,
or high school deleted text begin , or a child who is 16 or 17 years of age who is absent from attendance at
school without lawful excuse for one or more class periods on seven school days and who
has not lawfully withdrawn from school under section 120A.22, subdivision 8 deleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to the 2008-2009 school year and later.
new text end

Sec. 50.

Minnesota Statutes 2006, section 299F.30, subdivision 1, is amended to read:

Subdivision 1.

Duties of fire marshal.

Consistent with sections 121A.035,
121A.037, and this section, it shall be the duty of the state fire marshal, deputies and
assistants, to require public and private schools and educational institutions to have at
least five fire drills each school year new text begin , to expect students to be present and participate
in these drills, new text end and to keep all doors and exits unlocked from the inside of the building
during school hours.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2008-2009 school year and
later.
new text end

Sec. 51.

Laws 2007, chapter 146, article 2, section 46, subdivision 13, is amended to
read:

Subd. 13.

Preadvanced placement, advanced placement, international
baccalaureate, and concurrent enrollment programs.

For preadvanced placement,
advanced placement, international baccalaureate, and concurrent enrollment programs
under Minnesota Statutes, sections 120B.132 and 124D.091:

	$	6,500,000	.....	2008
	$	6,500,000	.....	2009

Of this amount, $2,500,000 each year is for concurrent enrollment program aid
under Minnesota Statutes, section 124D.091. If the appropriation is insufficient, the
commissioner must proportionately reduce the aid payment to each district. new text begin Any balance
in the first year does not cancel but is available in the second year.
new text end

The base appropriation for fiscal year 2010 and later is $2,000,000.

Sec. 52. new text begin IMPLEMENTING A STUDENT GROWTH-BASED VALUE-ADDED
SYSTEM.
new text end

new text begin (a) To implement the requirements of Minnesota Statutes, section 120B.35,
subdivision 3, paragraph (b), and to help parents and members of the public compare the
reported data, the commissioner must convene a group of expert school district assessment
and evaluation staff, including a recognized Minnesota assessment group composed
of assessment and evaluation directors and staff and researchers under Minnesota
Statutes, section 120B.299, subdivision 6, and interested stakeholders, including school
superintendents, school principals, and school teachers to examine the actual statewide
performance of students using Minnesota's growth-based value-added system and
establish criteria for identifying schools and school districts that demonstrate accelerated
growth in order to advance educators' professional development and replicate programs
that succeed in meeting students' diverse learning needs.
new text end

new text begin (b) The commissioner must submit a written report to the education committees of
the house of representatives and senate by February 15, 2009, describing the criteria for
identifying schools and school districts that demonstrate accelerated growth.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to school report cards in the 2008-2009 school year and later.
new text end

Sec. 53. new text begin IMPLEMENTING RIGOROUS COURSEWORK MEASURES
RELATED TO STUDENT PERFORMANCE.
new text end

new text begin To implement the requirements of Minnesota Statutes, section 120B.35, subdivision
3, paragraph (c), clauses (1) and (2), and to help parents and members of the public
compare the reported data, the commissioner of education must convene a group of
recognized and qualified experts and interested stakeholders including parents to develop
a model projecting anticipated performance of each high school on preparation and
rigorous coursework measures that compares the school with similar schools. The model
must use information about entering high school students based on particular background
characteristics that are predictive of differing rates of college readiness. The characteristics
include grade 8 achievement levels, high school student mobility, high school student
attendance, the nine student categories identified under the federal 2001 No Child Left
Behind Act, and two student gender categories of male and female, respectively, to
predict student performance on these two core measures. The commissioner must use the
anticipated level of entering students' performance to provide a context for interpreting
graduating students' actual performance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to school report cards beginning July 1, 2011.
new text end

Sec. 54. new text begin IMPLEMENTING MEASURES FOR ASSESSING STUDENTS'
SELF-REPORTED SENSE OF SCHOOL SAFETY, ENGAGEMENT IN
SCHOOL, AND THE QUALITY OF RELATIONSHIPS WITH TEACHERS,
ADMINISTRATORS, AND OTHER STUDENTS.
new text end

new text begin (a) To implement the requirements of Minnesota Statutes, section 120B.35,
subdivision 3, paragraph (d), and to help parents and members of the public compare the
reported data, the commissioner of education, in consultation with interested stakeholders,
must convene a group of recognized and qualified experts including parents to:
new text end

new text begin (1) analyze the University of Minnesota student safety and engagement survey
instrument and other commonly recognized survey instruments to select or devise the
survey instrument that best meets state accountability requirements;
new text end

new text begin (2) ensure that the identified survey instrument has sound psychometric properties
and is useful for intervention planning;
new text end

new text begin (3) determine at what grade levels to administer the survey instrument and ensure
that the survey instrument can be used at those grade levels; and
new text end

new text begin (4) determine through disaggregated use of survey indicators or other means how to
report "safety" in order to comply with federal law.
new text end

new text begin (b) The commissioner must submit a written report to the education committees of
the house of representatives and senate by February 15, 2009, presenting the experts'
responses to paragraph (a), clauses (1) to (4).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to school report cards beginning July 1, 2011.
new text end

Sec. 55. new text begin GROWTH-BASED VALUE-ADDED SYSTEM.
new text end

new text begin The growth-based value-added system used by the commissioner of education to
comply with Minnesota Statutes, section 120B.35, subdivision 3, paragraph (b), must be
consistent with the growth-based value-added model contained in the document labeled
"Educational Report Card Growth Model, 2008." The document must be deposited with
the Minnesota Office of the Revisor of Statutes, the Minnesota Legislative Reference
Library, and the Minnesota State Law Library, where the document shall be maintained
until the commissioner implements the growth-based value-added system under
Minnesota Statutes, section 120B.35, subdivision 3, paragraph (b). The recognized
Minnesota assessment group composed of assessment and evaluation directors and
staff and researchers under Minnesota Statutes, section 120B.299, subdivision 6, must
determine whether the growth-based value-added model the commissioner uses to comply
with Minnesota Statutes, section 120B.35, subdivision 3, paragraph (b), is consistent with
the deposited document and report its determination to the education committees of the
house of representatives and senate by February 15, 2009.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 56. 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. 57. new text begin WORLD-CLASS SCHOOLS WORKING GROUP.
new text end

new text begin Subdivision 1. new text end

new text begin Creation. new text end

new text begin The world class school working group is established
and consists of the following members:
new text end new text begin new text end

new text begin (1) three senators, including two members from the majority party and one member
from the minority party, appointed by the Subcommittee on Committees of the Committee
on Rules and Administration of the senate;
new text end

new text begin (2) three members of the house of representatives, including two members appointed
by the speaker of the house and one member appointed by the minority leader;
new text end

new text begin (3) the commissioner of education; and
new text end

new text begin (4) two members of the public who have an interest in education, appointed by
the governor.
new text end

new text begin Subd. 2. new text end

new text begin Duties. new text end

new text begin The working group must monitor the progress of the state in
meeting the world-class schools goals under section 120A.03 and propose strategies,
recommendations, and draft legislation to the legislative committees with jurisdiction
over education by January 15 of each year.
new text end

new text begin Subd. 3. new text end

new text begin Administrative provisions. new text end

new text begin (a) The commissioner of education must
convene the initial meeting of the working group. Upon request of the working group, the
commissioner must provide meeting space and administrative services for the working
group. The members of the working group must elect a chair or cochairs from the
legislative members of the working group at the initial meeting.
new text end

new text begin (b) Public members of the working group serve without compensation or payment of
expenses.
new text end

new text begin (c) The working group expires January 15, 2015.
new text end

new text begin (d) The working group may accept gifts and grants, which are accepted on behalf of
the state and constitute donations to the state. Funds received under this paragraph are
appropriated to the commissioner of education for purposes of the working group.
new text end

new text begin Subd. 4. new text end

new text begin Deadline for appointments and designations. new text end

new text begin The appointments and
designations authorized under this section must be completed by August 1, 2008.
new text end

Sec. 58. new text begin MINNESOTA READING INSTRUCTION COMPETENCE
ASSESSMENT AND PRETEST.
new text end

new text begin Subdivision 1. new text end

new text begin Commissioner of education. new text end

new text begin (a) No later than June 30, 2008, the
commissioner of education shall adopt a reading instruction competence assessment for
all prekindergarten and elementary instructors consistent with Minnesota Statutes, section
122A.18, subdivision 2c.
new text end

new text begin (b) The commissioner shall report to the senate and house of representatives
committees having jurisdiction over prekindergarten through grade 12 education policy by
July 1, 2008, on the reading instruction competence assessment that was adopted.
new text end

new text begin (c) The commissioner, in consultation with members of the professional reading
community, shall establish an approved list of reading instruction program centers that
offer staff development and remedial training necessary to successfully complete the
assessment described under Minnesota Statutes, section 122A.18, subdivision 2c, and
adopted in paragraph (a).
new text end

new text begin Subd. 2. new text end

new text begin Pretest and grant for candidates in an approved teacher preparation
program. new text end

new text begin (a) No later than November 1, 2008, a candidate enrolled in the final year of an
approved teacher preparation program in prekindergarten or elementary education may
apply to the commissioner of education, in a manner prescribed by the commissioner, to
take a Minnesota reading instruction competence assessment pretest as determined under
subdivision 1, paragraph (a).
new text end

new text begin (b) A candidate taking the pretest under paragraph (a) is eligible for a grant to attend
an approved reading instruction program if the candidate also commits to attending and
completing an approved reading instruction program of their choosing, and takes the
reading instruction competence assessment as determined under subdivision 1, paragraph
(a), at the completion of the reading instruction program.
new text end

new text begin Subd. 3. new text end

new text begin Pretest and grant for districts. new text end

new text begin (a) No later than November 1, 2008,
schools providing instruction in prekindergarten through grade 6 may apply to the
commissioner of education, in a manner prescribed by the commissioner, for their teachers
to take a Minnesota reading instruction competence assessment pretest as determined
under subdivision 1, paragraph (a).
new text end

new text begin (b) A school is eligible for a grant for prekindergarten through grade 2 teachers to
attend an approved reading instruction program, if the teachers take the pretest, commit to
attending and completing an approved reading instruction program of their choosing, and
take the reading instruction competence assessment as determined under subdivision 1,
paragraph (a), at the completion of the reading instruction program.
new text end

new text begin Subd. 4. new text end

new text begin Passing score on the Minnesota reading instruction competence
assessment. new text end

new text begin The commissioner, in cooperation with the testing contractor providing the
reading instruction competence assessment, must use the reading instruction competence
assessment results on the pretest and posttest to determine a passing score on the
Minnesota reading instruction competence assessment by October 1, 2009.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 59. new text begin FOUNDATIONS OF READING GRANT FOR PREKINDERGARTEN
THROUGH GRADE 2 TEACHERS AND TEACHER CANDIDATES.
new text end

new text begin Of the amounts allocated under Laws 2007, chapter 146, article 7, section 4,
subdivision 2, paragraph (j), $....... must be allocated for foundations of reading grants
to school districts for their prekindergarten through grade 2 teachers and $....... must be
allocated for foundations of reading grants for prekindergarten and elementary teacher
candidates. The amounts allocated to this program must not be expended until the
commissioner has certified that a private match has been received.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal year 2009 only.
new text end

Sec. 60. new text begin READING INSTRUCTION RULES; LEGISLATIVE REVIEW.
new text end

new text begin Beginning Ju1y 1, 2008, and until July 1, 2009, the Board of Teaching must submit
any proposed rules regarding licensure in reading instruction to the chairs of the legislative
committees with jurisdiction over kindergarten through grade 12 education policy by
February 1, 2009. The board may not adopt the rules until the legislature has adjourned
the 2009 regular session.
new text end

Sec. 61. new text begin SCHOOL DISTRICT PLANS TO IMPROVE STUDENTS' ACADEMIC
ACHIEVEMENT.
new text end

new text begin Subdivision 1. new text end

new text begin District academic achievement plan; priorities. new text end

new text begin (a) A school
district experiencing disparities in academic achievement must develop a plan to
significantly improve students' academic achievement using concrete measures to
eliminate differences in academic performance among groups of students defined by
race, ethnicity and income. The plan must:
new text end

new text begin (1) reflect a research-based understanding of high-performing educational systems
and best educational practices;
new text end

new text begin (2) include innovative and practical strategies and programs, whether existing or
new, that supplement district initiatives to increase students' academic achievement under
state and federal educational accountability requirements; and
new text end

new text begin (3) contain valid and reliable measures of student achievement that the district uses
to demonstrate the efficacy of the district plan to the commissioner of education.
new text end

new text begin (b) A district must address the elements under section 63, paragraph (a), to the
extent those elements are implicated in the district's plan.
new text end

new text begin (c) The district must include with the plan the amount of expenditures necessary
to implement the plan. The district must indicate how current resources are used to
implement the plan, including, but not limited to, state-limited English proficiency aid
under Minnesota Statutes, section 124D.65; integration revenue under Minnesota Statutes,
section 124D.86; early childhood family education revenue under Minnesota Statutes,
section 124D.135; school readiness aid under Minnesota Statutes, section 124D.16; basic
skills revenue under Minnesota Statutes, section 126C.10, subdivision 4; extended time
revenue under Minnesota Statutes, section 126C.10, subdivision 2a; and alternative
compensation revenue under Minnesota Statutes, section 122A.415.
new text end

new text begin Subd. 2. new text end

new text begin Plan. new text end

new text begin (a) A school district by October 1, 2008, must submit its plan in
electronic format to the commissioner of education, consistent with subdivision 1.
new text end

new text begin (b) The commissioner must analyze the commonalities and differences of the district
plans and submit the analysis and underlying data to the advisory task force on improving
students' academic achievement under section 63 by November 1, 2008, and also report
the substance of the analyses to the education policy and finance committees of the
legislature by January 1, 2009.
new text end

new text begin (c) A school district that submits a plan must be given priority in funding if the
legislature provides funding for implementing the plans.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 62. new text begin ADVISORY TASK FORCE ON IMPROVING STUDENTS'
ACADEMIC ACHIEVEMENT.
new text end

new text begin (a) An advisory task force on improving students' academic achievement is
established to review the plans submitted to the commissioner of education and
recommend to the education committees of the legislature a proposal for improving
students' academic achievement and eliminating differences in academic performance
among groups of students defined by race, ethnicity, and income. The task force members
must at least consider how the following education-related issues impact the educational
achievement of low-income and minority students:
new text end

new text begin (1) rigorous preparation and coursework and how to (i) effectively invest in early
childhood and parent education, (ii) impose academic rigor and high expectations on
elementary and secondary students in low-income and minority schools, and (iii) provide
parents, educators, and community members with meaningful opportunities to collaborate
in educating students in low-income and minority schools;
new text end

new text begin (2) professional development for educators and how to (i) provide stronger financial
and professional incentives to attract and retain experienced, bilingual, and culturally
competent teachers and administrators in low-income and minority schools, (ii) recruit and
retain teachers of color, and (iii) develop and include cultural sensitivity and interpersonal
and pedagogical skills training that teachers need for effective intercultural teaching;
new text end

new text begin (3) English language learners and how to (i) use well designed tests, curricula,
and English as a second language programs and services as diagnostic tools to develop
effective student interventions, (ii) monitor students' language capabilities, (iii) provide
academic instruction in English that supports students' learning and is appropriate
for students' level of language proficiency, and (iv) incorporate the perspectives and
contributions of ethnic and racial groups, consistent with Minnesota Statutes, section
120B.022, subdivision 1, paragraph (b);
new text end

new text begin (4) special education and how to (i) incorporate linguistic and cultural sensitivity
into special education diagnosis and referral, (ii) increase the frequency and quality of
prereferral interventions, and (iii) decrease the number of minority and nonnative English
speaking students inappropriately placed in special education;
new text end

new text begin (5) GRAD tests and how to (i) incorporate linguistic and cultural sensitivity into the
reading and math GRAD tests, and (ii) develop interventions to meet students' learning
needs; and
new text end

new text begin (6) valid and reliable data and how to use data on student on-time graduation rates,
student dropout rates, documented disciplinary actions, and completed and rigorous course
work indicators to determine how well-prepared low-income and minority students are for
postsecondary academic and career opportunities.
new text end

new text begin The task force also must examine the findings of a 2008 report by Minnesota
superintendents on strategies for creating a world-class educational system to establish
priorities for improving students' academic achievement. The task force may consider
other related matters at its discretion.
new text end

new text begin (b) The commissioner of education must convene the first meeting of the advisory
task force on improving students' academic achievement by July 1, 2008. The task
force members must adopt internal standards for subsequent meetings. The task force
is composed of the following members:
new text end

new text begin (1) a representative from a Twin Cities metropolitan area school district, a suburban
school district, a school district located in a regional center, and a rural school district, all
four representatives appointed by the state demographer based on identified concentrations
of low-income, minority, and low performing students;
new text end

new text begin (2) a faculty member of a teacher preparation program at the University of
Minnesota's college of education and human development, appointed by the college dean
or the dean's designee;
new text end

new text begin (3) a faculty member from the urban teachers program at Metropolitan State
University appointed by the university president or the president's designee;
new text end

new text begin (4) a faculty member from a MnSCU teacher preparation program located outside
the Twin Cities metropolitan area, appointed by the university president or the president's
designee;
new text end

new text begin (5) a classroom teacher appointed by Education Minnesota;
new text end

new text begin (6) an expert in early childhood care and education appointed by a state early
childhood organization;
new text end

new text begin (7) a member from each state council representing a community of color, appointed
by the respective council;
new text end

new text begin (8) a curriculum specialist with expertise in providing language instruction for
nonnative English speakers, appointed by a state curriculum organization;
new text end

new text begin (9) a special education teacher, appointed by a state organization of special education
educators;
new text end

new text begin (10) a parent of color, appointed by a state parent-teacher organization;
new text end

new text begin (11) a district testing director appointed by a recognized Minnesota assessment
group composed of assessment and evaluation directors and staff and researchers; and
new text end

new text begin (12) a Minnesota Department of Education staff person with expertise in school
desegregation matters appointed by the commissioner of education or the commissioner's
designee.
new text end

new text begin A majority of task force members, at their discretion, may invite other representatives
of interested public or nonpublic organizations, Minnesota's business community,
Minnesota private colleges, Minnesota's communities of color, and stakeholders in local
and state educational equity to become task force members.
new text end

new text begin (c) Task force members' terms and other task force matters are subject to Minnesota
Statutes, section 15.059. The commissioner may reimburse task force members from the
Department of Education's current operating budget but may not compensate task force
members for task force activities. By February 15, 2009, the task force must submit a
written proposal to the education policy and finance committees of the legislature on how
to significantly improve students' academic achievement.
new text end

new text begin (d) The advisory task force expires on February 16, 2009.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 63. new text begin FIVE-YEAR PILOT PROGRAM FOR IDENTIFYING SYSTEMIC
IMPROVEMENT MEASURES TO BEST SERVE STUDENTS ENROLLED IN
ALTERNATIVE LEARNING CENTERS AND CHARTER SCHOOLS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) The definitions in this subdivision apply to this
section.
new text end

new text begin (b) "Systemic improvement measures" means methods that yield data and
information showing the progress of a well-ordered and repeatable process directed at
organizational and student learning; for example, management, services, curriculum,
resources, and overall organization.
new text end

new text begin (c) "Process" means a linked activity with the purpose of producing a school
program, resource, or service for students to support learning.
new text end

new text begin (d) "Sustainability" means the ability of the organization to stay current in addressing
the educational needs of students and society. Sustainability includes the ability and
strategic management to prepare for the future.
new text end

new text begin Subd. 2. new text end

new text begin Establishment; eligibility. new text end

new text begin A five-year pilot program is established to
allow alternative learning centers and charter schools to identify systemic improvement
measures to best serve eligible students. Interested alternative learning centers and
charter schools must serve eligible students under Minnesota Statutes, section 124D.68,
subdivision 2, to participate in this program.
new text end

new text begin Subd. 3. new text end

new text begin Application and selection process. new text end

new text begin Interested alternative learning centers
and charter schools serving eligible students under Minnesota Statutes, section 124D.68,
subdivision 2, may apply to the commissioner of education to participate in this program in
the form and manner the commissioner determines, in consultation with the advisory board
under subdivision 4, and consistent with this section. The applicant must demonstrate
the applicant's interest and ability to implement systemic improvement measures, the
sustainability of those measures, and the process the applicant proposes to use to ensure
that sustainability. The commissioner, after consulting with the advisory board under
subdivision 4, shall select by September 1, 2008, up to a total of 20 program participants.
new text end

new text begin Subd. 4. new text end

new text begin Advisory board. new text end

new text begin A Pilot Program Advisory Board is established to make
recommendations to the commissioner about program oversight, including selecting
program participants, coordinating program activities, training program participants,
managing program budgets, and making periodic program reports to the legislature.
The board members include: three Minnesota Association of Alternative Programs
members selected by the Minnesota Association of Alternative Programs; two Minnesota
Association of Charter Schools members selected by the Minnesota Association of
Charter Schools; one Metropolitan Federation of Alternative Schools members selected
by the Metropolitan Federation of Alternative Schools; one Minnesota K-12 Online
Learning Alliance member selected by the Minnesota K-12 Online Learning Alliance;
one Minnesota Department of Education staff selected by the commissioner of education;
two higher education representatives from teacher and administrator training programs
selected by the training programs; one Minnesota Council for Quality member selected by
the council; one member of the Minnesota House of Representatives selected by the house
speaker; and one state senator selected by the senate majority leader. Advisory board
members' terms and other board matters are subject to Minnesota Statutes, section 15.059.
The commissioner may reimburse board members from the Department of Education's
current operating budget but may not compensate board members for board activities. The
Minnesota Association of Alternative Programs president, or the president's designee,
must convene the first advisory board meeting before September 1, 2008. Advisory board
members are expected to meet at least one time per month. The advisory board expires
on March 1, 2014.
new text end

new text begin Subd. 5. new text end

new text begin Annual reports; evaluation. new text end

new text begin (a) The commissioner, after consulting with
the advisory board under subdivision 4, annually must submit to the education policy
and finance committees of the legislature no later than February 1 of the proximate
school year, a longitudinal report detailing the efforts and success of program participants
to implement systemic improvement measures to best serve eligible students under
Minnesota Statutes, section 124D.68, subdivision 2.
new text end

new text begin (b) The commissioner must contract with a qualified expert in systemic improvement
at the University of Minnesota College of Education and Human Development to evaluate
and report on short- and long-term program efficacy throughout the term of the program.
The commissioner must immediately convey the expert's reports to the education policy
and finance committees of the legislature upon receipt.
new text end

new text begin Subd. 6. new text end

new text begin Waivers. new text end

new text begin (a) Consistent with the data results submitted by program
participants, the commissioner of education must petition the federal Department of
Education for waivers from No Child Left Behind requirements to allow program
participants to use alternative forms of assessment. Also consistent with the data results
submitted by program participants, the commissioner must waive those state education
rules that interfere with the ability of program participants to implement systemic
improvement measures.
new text end

new text begin (b) Notwithstanding Minnesota Statutes, section 120A.41, or other law to the
contrary, program participants must annually allocate five days of student instruction for
staff development in systemic improvement measures.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2008-2009 through 2012-2013
school years.
new text end

Sec. 64. new text begin APPROPRIATION.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are
appropriated from the general fund to the Department of Education for the fiscal years
designated.
new text end

new text begin Subd. 2. new text end

new text begin Alternative Learning Center and charter school grants. new text end

new text begin For grants to
Alternative Learning Centers and charter schools:
new text end

	new text begin $ new text end	new text begin ....... new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin A program participant must obtain a dollar-for-dollar nonstate match. The
commissioner must allocate the appropriation on a per student basis to eligible program
participants for costs related to participating in the program.
new text end

Sec. 65. 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

Sec. 66. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, section 120A.22, subdivision 8, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2008-2009 school year and
later.
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 2006, section 125A.02, subdivision 1, is amended to read:

Subdivision 1.

Child with a disability.

Every child who has a hearing impairment,
blindness, visual disability, speech or language impairment, physical disability, other
health impairment, mental disability, emotional/behavioral disorder, specific learning
disability, autism, traumatic brain injury, multiple disabilities, or deaf/blind disability
and needs special instruction and services, as determined by the standards of the
commissioner, is a child with a disability. new text begin A licensed physician or a licensed psychologist
is qualified to make a diagnosis and determination of attention deficit disorder or attention
deficit hyperactivity disorder for purposes of identifying a child with a disability. new text end In
addition, every child under age three, and at local district discretion from age three to age
seven, who needs special instruction and services, as determined by the standards of the
commissioner, because the child has a substantial delay or has an identifiable physical or
mental condition known to hinder normal development is a child with a disability.

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2006, section 125A.15, is amended to read:

125A.15 PLACEMENT IN ANOTHER DISTRICT; RESPONSIBILITY.

The responsibility for special instruction and services for a child with a disability
temporarily placed in another district for care and treatment shall be determined in the
following manner:

(a) The district of residence of a child shall be the district in which the child's parent
resides, if living, or the child's guardian, or the district designated by the commissioner if
neither parent nor guardian is living within the state.

new text begin (b) If the placement of a pupil for care and treatment is not made by the district
of residence, the district of residence must be notified and provided an opportunity
to participate in the placement decision. When an immediate emergency placement
is necessary and time does not permit resident district participation in the placement
decision, the district in which the pupil is temporarily placed, if different from the district
of residence, must notify the district of residence of the emergency placement within 15
days of the placement. When placement has been made without prior consultation with
the resident district, the resident district has up to five business days following notice of
the emergency placement to respond and must, at that time, be provided an opportunity
to participate in the placement decision.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end When a child is temporarily placed for care and treatment in a day program
located in another district and the child continues to live within the district of residence
during the care and treatment, the district of residence is responsible for providing
transportation to and from the care and treatment deleted text begin facility deleted text end new text begin program new text end and an appropriate
educational program for the child. new text begin The resident district may establish reasonable
restrictions on transportation; however, if a court or state agency has ordered the placement
at the day care and treatment program and the resident district receives a copy of the order,
the resident district must provide transportation to and from the program unless the court
or agency otherwise orders. new text end Transportation shall only be provided by the new text begin resident new text end district
during regular operating hours of deleted text begin the deleted text end new text begin that new text end district. The new text begin resident new text end district may provide the
educational program at a school within the district of residence, at the child's residence, or
in the district in which the day treatment center is located by paying tuition to that district.

deleted text begin (c) deleted text end new text begin (d) new text end When a child is temporarily placed in a residential program for care and
treatment, the nonresident district in which the child is placed is responsible for providing
an appropriate educational program for the child and necessary transportation while the
child is attending the educational program; and must bill the district of the child's residence
for the actual cost of providing the program, as outlined in section 125A.11, except as
provided in paragraph deleted text begin (d) deleted text end new text begin (e) new text end . However, the board, lodging, and treatment costs incurred
in behalf of a child with a disability placed outside of the school district of residence by
the commissioner of human services or the commissioner of corrections or their agents,
for reasons other than providing for the child's special educational needs must not become
the responsibility of either the district providing the instruction or the district of the child's
residence. For the purposes of this section, the state correctional facilities operated on a
fee-for-service basis are considered to be residential programs for care and treatment.

deleted text begin (d) deleted text end new text begin (e) new text end A privately owned and operated residential facility may enter into a contract
to obtain appropriate educational programs for special education children and services
with a joint powers entity. The entity with which the private facility contracts for special
education services shall be the district responsible for providing students placed in that
facility an appropriate educational program in place of the district in which the facility is
located. If a privately owned and operated residential facility does not enter into a contract
under this paragraph, then paragraph deleted text begin (c) deleted text end new text begin (d) new text end applies.

deleted text begin (e) deleted text end new text begin (f) new text end The district of residence shall pay tuition and other program costs, not
including transportation costs, to the district providing the instruction and services.
The district of residence may claim general education aid for the child as provided by
law. Transportation costs must be paid by the district responsible for providing the
transportation and the state must pay transportation aid to that district.

Sec. 4.

Minnesota Statutes 2006, section 125A.51, is amended to read:

125A.51 PLACEMENT OF CHILDREN WITHOUT DISABILITIES;
EDUCATION AND TRANSPORTATION.

The responsibility for providing instruction and transportation for a pupil without a
disability who has a short-term or temporary physical or emotional illness or disability, as
determined by the standards of the commissioner, and who is temporarily placed for care
and treatment for that illness or disability, must be determined as provided in this section.

(a) The school district of residence of the pupil is the district in which the pupil's
parent or guardian resides.

(b) When parental rights have been terminated by court order, the legal residence
of a child placed in a residential or foster facility for care and treatment is the district in
which the child resides.

(c) Before the placement of a pupil for care and treatment, the district of residence
must be notified and provided an opportunity to participate in the placement decision.
When an immediate emergency placement is necessary and time does not permit
resident district participation in the placement decision, the district in which the pupil is
temporarily placed, if different from the district of residence, must notify the district of
residence of the emergency placement within 15 days of the placement. new text begin When placement
has been made without prior consultation with the resident district, the resident district
has up to five business days following notice of the emergency placement to respond and
must, at that time, be provided an opportunity to participate in the placement decision.
new text end

(d) When a pupil without a disability is temporarily placed for care and treatment
in a day program and the pupil continues to live within the district of residence during
the care and treatment, the district of residence must provide instruction and necessary
transportation to and from the new text begin care and new text end treatment deleted text begin facility deleted text end new text begin program new text end for the pupil. new text begin The
resident district may establish reasonable restrictions on transportation; however, if a
Minnesota court or state agency has ordered the placement at the day care and treatment
program and the resident district receives a copy of the order, the resident district must
provide transportation to and from the program unless the court or agency otherwise
orders. new text end Transportation shall only be provided by the new text begin resident new text end district during regular
operating hours of deleted text begin the deleted text end new text begin that new text end district. The new text begin resident new text end district may provide the instruction at a
school within the district of residence, at the pupil's residence, or in the case of a placement
outside of the resident district, in the district in which the day treatment program is located
by paying tuition to that district. The district of placement may contract with a facility to
provide instruction by teachers licensed by the state Board of Teaching.

(e) When a pupil without a disability is temporarily placed in a residential program
for care and treatment, the district in which the pupil is placed must provide instruction
for the pupil and necessary transportation while the pupil is receiving instruction, and in
the case of a placement outside of the district of residence, the nonresident district must
bill the district of residence for the actual cost of providing the instruction for the regular
school year and for summer school, excluding transportation costs.

(f) Notwithstanding paragraph (e), if the pupil is homeless and placed in a public or
private homeless shelter, then the district that enrolls the pupil under section 127A.47,
subdivision 2, shall provide the transportation, unless the district that enrolls the pupil
and the district in which the pupil is temporarily placed agree that the district in which
the pupil is temporarily placed shall provide transportation. When a pupil without a
disability is temporarily placed in a residential program outside the district of residence,
the administrator of the court placing the pupil must send timely written notice of the
placement to the district of residence. The district of placement may contract with a
residential facility to provide instruction by teachers licensed by the state Board of
Teaching. For purposes of this section, the state correctional facilities operated on a
fee-for-service basis are considered to be residential programs for care and treatment.

(g) The district of residence must include the pupil in its residence count of pupil
units and pay tuition as provided in section 123A.488 to the district providing the
instruction. Transportation costs must be paid by the district providing the transportation
and the state must pay transportation aid to that district. For purposes of computing state
transportation aid, pupils governed by this subdivision must be included in the disabled
transportation category if the pupils cannot be transported on a regular school bus route
without special accommodations.

Sec. 5.

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.

Sec. 6. new text begin EXPEDITED PROCESS; SPECIFIC LEARNING DISABILITY RULE.
new text end

new text begin The commissioner of education may use the expedited process under Minnesota
Statutes, section 14.389, to conform Minnesota Rules, part 3525.1341, to new federal
requirements on specific learning disabilities under Public Law 108-446, sections 602(30)
and 614(b)(6), the Individuals with Disabilities Education Improvement Act of 2004,
and its implementing regulations.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 7. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, section 121A.67, new text end new text begin and new text end new text begin Laws 2006, chapter 263, article 3,
section 16, new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 4

LIBRARIES AND FACILITIES

Section 1.

Minnesota Statutes 2006, section 123B.51, is amended by adding a
subdivision to read:

new text begin Subd. 5a. new text end

new text begin Temporary closing. new text end

new text begin A school district that proposes to temporarily close a
schoolhouse or that intends to lease the facility to another entity for use as a schoolhouse
for three or fewer years is not subject to subdivision 5 if the school board holds a public
meeting and allows public comment on the schoolhouse's future.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2006, section 123B.59, subdivision 1, is amended to read:

Subdivision 1.

To qualify.

(a) An independent or special school district qualifies to
participate in the alternative facilities bonding and levy program if the district has:

(1) more than 66 students per grade;

(2) over 1,850,000 square feet of space and the average age of building space is 15
years or older or over 1,500,000 square feet and the average age of building space is
35 years or older;

(3) insufficient funds from projected health and safety revenue and capital facilities
revenue to meet the requirements for deferred maintenance, to make accessibility
improvements, or to make fire, safety, or health repairs; and

(4) a ten-year facility plan approved by the commissioner according to subdivision 2.

(b) An independent or special school district not eligible to participate in the
alternative facilities bonding and levy program under paragraph (a) qualifies for limited
participation in the program if the district has:

(1) one or more health and safety projects with an estimated cost of $500,000 or
more per site that would qualify for health and safety revenue except for the project size
limitation in section 123B.57, subdivision 1, paragraph (b); and

(2) insufficient funds from capital facilities revenue to fund those projects.

new text begin (c) Notwithstanding the square footage limitation in paragraph (a), clause (2),
a school district that qualified for eligibility under paragraph (a) as of July 1, 2007,
remains eligible for funding under this section as long as the district continues to meet
the requirements of paragraph (a), clauses (1), (3), and (4).
new text end

Sec. 3.

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. 4.

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. 5.

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

Sec. 6.

new text begin [134.55] ELECTRONIC LIBRARY FOR MINNESOTA.
new text end

new text begin Notwithstanding Laws 1998, chapter 398, article 9, section 7, as amended by Laws
1999, chapter 241, article 8, section 3, a school media center, public library as defined
by section 134.001, subdivision 2, state government agency library, and public or private
college or university library must be given access to the electronic library for Minnesota
databases regardless of whether or not they are a member of a regional library system.
new text end

ARTICLE 5

STATE AGENCIES

Section 1.

Minnesota Statutes 2006, section 122A.14, is amended by adding a
subdivision to read:

new text begin Subd. 2a. new text end

new text begin Gifted and talented preparation. new text end

new text begin A university approved by the board to
prepare candidates for administrative licensure must provide candidates, as part of the
traditional and alternative preparation programs, the opportunity to acquire competency in
administering gifted and talented services.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to candidates who enroll in either a traditional or an alternative preparation
administrator licensure program after August 15, 2009.
new text end

Sec. 2.

Minnesota Statutes 2006, section 122A.14, is amended by adding a subdivision
to read:

new text begin Subd. 2c. new text end

new text begin Gifted and talented preparation; board review. new text end

new text begin (a) The board must
periodically review and approve traditional and alternative preparation sequences for
school administrators and the sequence of competencies in administering gifted and
talented student programs and services.
new text end

new text begin (b) The board also may advise a university on developing and implementing
continuing education programs focused on building competencies for administering gifted
and talented programs and other gifted services.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2006, section 122A.18, is amended by adding a subdivision
to read:

new text begin Subd. 10. new text end

new text begin Gifted and talented preparation; board review. new text end

new text begin (a) A college or
university with a teacher preparation program approved by the board must provide teacher
candidates with the opportunity to acquire competency in recognizing gifted students and
in providing classroom instruction to gifted and talented students.
new text end

new text begin (b) The board must periodically review and approve traditional and alternative
sequences for teacher candidates in recognizing gifted students and in providing classroom
instruction to gifted and talented students.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to teacher candidates who enroll in either a traditional or an alternative
preparation teacher licensure program after September 1, 2009.
new text end

Sec. 4.

Minnesota Statutes 2006, section 122A.75, subdivision 1, is amended to read:

Subdivision 1.

Services.

An Administrators Academy is established. The academy
shall provide at least the following services:

(1) an administrator assessment that results in an individual professional
development plan;

(2) research and development assistance that provides current research and data
of interest to administrators; deleted text begin and
deleted text end

(3) brokerage assistance to provide services and resources to help administrators
with needs identified in their individual professional development plan new text begin ; and
new text end

new text begin (4) the opportunity for administrators to acquire competency in administering gifted
and talented services, consistent with section 122A.14, subdivision 2c new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to administrators participating in an administrators academy program after
August 1, 2009.
new text end

Sec. 5.

Minnesota Statutes 2006, section 125A.65, subdivision 4, is amended to read:

Subd. 4.

Unreimbursed costs.

(a) For fiscal year 2006, in addition to the tuition
charge allowed in subdivision 3, the academies may charge the child's district of residence
for the academy's unreimbursed cost of providing an instructional aide assigned to that
child, after deducting the special education aid under section 125A.76, attributable to the
child, if that aide is required by the child's individual education plan. Tuition received
under this paragraph must be used by the academies to provide the required service.

(b) For fiscal year deleted text begin 2007 deleted text end new text begin 2008 new text end and later, the special education aid paid to the
academies shall be increased by the academy's unreimbursed cost of providing deleted text begin an deleted text end new text begin one
to one new text end instructional deleted text begin aide deleted text end new text begin and behavioral management aides new text end assigned to a child, after
deducting the special education aid under section 125A.76 attributable to the child, if deleted text begin that
aide is deleted text end new text begin the aides are new text end required by the child's individual education plan. Aid received under
this paragraph must be used by the academies to provide the required service.

(c) For fiscal year deleted text begin 2007 deleted text end new text begin 2008 new text end and later, the special education aid paid to the district
of the child's residence shall be reduced by the amount paid to the academies for district
residents under paragraph (b).

(d) Notwithstanding section 127A.45, subdivision 3, beginning in fiscal year 2008,
the commissioner shall make an estimated final adjustment payment to the Minnesota
State Academies for general education aid and special education aid for the prior fiscal
year by August 15.

new text begin (e) For fiscal year 2007, the academies may retain receipts received through mutual
agreements with school districts for one to one behavior management aides.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
for revenue in fiscal year 2008.
new text end

Sec. 6.

Minnesota Statutes 2006, section 125A.65, is amended by adding a subdivision
to read:

new text begin Subd. 11. new text end

new text begin Third party reimbursement. new text end

new text begin The Minnesota State Academies must seek
reimbursement under section 125A.21 from third parties for the cost of services provided
by the Minnesota State Academies whenever the services provided are otherwise covered
by a child's public or private health plan.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
for revenue in fiscal year 2008.
new text end

Sec. 7.

new text begin [125B.015] STATE AND SCHOOL DISTRICT TECHNOLOGY
STANDARDS.
new text end

new text begin Subdivision 1. new text end

new text begin State technology standards; standard setting. new text end

new text begin (a) Notwithstanding
other law to the contrary, the commissioner, the Minnesota Education Technology Task
Force, and representatives of school districts must enter into a technology partnership to
identify for school districts the robust technology tools and systems that improve the
educational achievement of all Minnesota students. The partnership must establish a
foundation of flexible shared services that supports state development and implementation
of new and more efficient educational business practices, including the use of modern
analytical tools that help schools and school districts make data-driven decisions
and increase instructional time. The partnership also must anticipate the needs of
school districts for effectively using emerging technologies to make the best and most
cost-effective use of finite educational resources.
new text end

new text begin (b) The commissioner, in collaboration with the other members of the technology
partnership and other interested and affected stakeholders, must establish and then
maintain, revise, and publish every four years beginning June 1, 2012, state and district
technology standards and accompanying guidelines consistent with the requirements of
this section. The state and school districts must use the technology standards to participate
in a uniform data collection system premised on:
new text end

new text begin (1) common data definitions for all required data elements;
new text end

new text begin (2) a common course catalogue;
new text end

new text begin (3) common transcript definitions; and
new text end

new text begin (4) school district infrastructure technology standards.
new text end

new text begin Subd. 2. new text end

new text begin District technology standards. new text end

new text begin (a) The commissioner, in collaboration
with the Minnesota Education Technology Task Force, must establish and then maintain,
revise, and publish six categories of district technology standards consistent with this
section. The district technology standards must encompass:
new text end

new text begin (1) instructional technology that include best practices in 21st century classroom
instruction and student learning;
new text end

new text begin (2) technological tools that support formative and summative online assessments,
equipment, and software;
new text end

new text begin (3) shared services that facilitate network and data systems administration;
new text end

new text begin (4) data practices that include technical security, Internet safety, and data privacy;
new text end

new text begin (5) data management that facilitates efficient data transfers involving school districts
and the department; and
new text end

new text begin (6) facilities infrastructure that supports multipurpose technology facilities for
instruction and assessment.
new text end

new text begin (b) School districts must align district technology expenditures with state and district
technology standards established under this section.
new text end

new text begin (c) Beginning December 1, 2010, and each two-year period thereafter, school
districts must use the district technology standards in this section to complete a review of
the district technology environment that:
new text end

new text begin (1) examines the alignment of district technology expenditures to the technology
standards under this section;
new text end

new text begin (2) identifies service gaps in the district technology plan; and
new text end

new text begin (3) estimates the funding needed to fill service gaps.
new text end

new text begin (d) School districts must transmit the substance of the review to the commissioner in
the form and manner the commissioner determines in collaboration with the Minnesota
Education Technology Task Force. The commissioner must evaluate and report the
substance of the reviews to the legislature by February 15, 2011, and each two-year period
thereafter.
new text end

new text begin Subd. 3. new text end

new text begin Nonapplicability. new text end

new text begin Consistent with section 14.03, subdivision 3, paragraph
(b), clause (4), and notwithstanding other law to the contrary, the state and district
technology standards established, maintained, revised, and published under this section
are not subject to chapter 14.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to the 2008-2009 school year and later.
new text end

Sec. 8.

new text begin [127A.70] MINNESOTA P-20 EDUCATION PARTNERSHIP.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment; membership. new text end

new text begin (a) A P-20 education partnership is
established to create a seamless system of education that maximizes achievements of
all students, from early childhood through elementary, secondary, and postsecondary
education, while promoting the efficient use of financial and human resources. The
partnership shall consist of major statewide educational groups or constituencies or
noneducational statewide organizations with a stated interest in P-20 education. Upon
enactment of this legislation, the members shall be those currently serving on the
Minnesota P-16 Education Partnership plus four legislators as follows:
new text end

new text begin (1) one senator from the majority party and one senator from the minority party,
appointed by the Subcommittee on Committees of the Committee on Rules and
Administration; and
new text end

new text begin (2) one member of the house of representatives appointed by the speaker of the
house and one member appointed by the minority leader of the house.
new text end

new text begin Prospective members may be nominated by any partnership member and new
members will be added with the approval of a two-thirds majority of the partnership. The
partnership will also seek input from nonmember organizations whose expertise can
help inform the partnership's work.
new text end

new text begin Partnership members shall be represented by the chief executives, presidents, or
other formally designated leaders of their respective organizations, or their designees. The
partnership shall meet at least three times during each calendar year.
new text end

new text begin Subd. 2. new text end

new text begin Powers and duties; report. new text end

new text begin The partnership shall develop
recommendations to the governor and the legislature designed to maximize the
achievement of all P-20 students while promoting the efficient use of state resources,
thereby helping the state realize the maximum value for its investment. These
recommendations may include, but are not limited to, strategies, policies, or other actions
focused on:
new text end

new text begin (1) improving the quality of and access to education at all points from preschool
through the graduate education;
new text end

new text begin (2) improving preparation for, and transitions to, postsecondary education and
work; and
new text end

new text begin (3) ensuring educator quality by creating rigorous standards for teacher recruitment,
teacher preparation, induction and mentoring of beginning teachers, and continuous
professional development for career teachers.
new text end

new text begin By January 15 of each year, the partnership shall submit a report to the governor
and to the legislature that summarizes the partnership's progress in meeting its goals and
identifies the need for any draft legislation when necessary to further the goals of the
partnership to maximize student achievement while promoting efficient use of resources.
new text end

Sec. 9.

Minnesota Statutes 2006, section 205A.03, subdivision 1, is amended to read:

Subdivision 1.

deleted text begin Required deleted text end new text begin Resolution requiring new text end primary in certain circumstances.

deleted text begin In deleted text end new text begin The school board of new text end a school district deleted text begin election, deleted text end new text begin may, by resolution adopted by June 1 of
any year, decide to choose school board nominees by a primary under this section. The
resolution, when adopted, is effective for all subsequent board member elections in the
school district until it is revoked. If the board decides to choose nominees by primary
and new text end if there are more than two candidates for a specified school board position or more
than twice as many school board candidates as there are at-large school board positions
available, a school district must hold a primary.

new text begin EFFECTIVE DATE. new text end

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

Sec. 10.

Minnesota Statutes 2006, section 205A.06, subdivision 1a, is amended to read:

Subd. 1a.

Filing period.

new text begin In school districts that have adopted a resolution to choose
nominees for school board by a primary election, new text end affidavits of candidacy must be filed
with the school district clerk no earlier than the 70th day and no later than the 56th day
before the first Tuesday after the second Monday in September in the year when the
school district general election is held. new text begin In all other school districts, affidavits of candidacy
must be filed no earlier than the 70th day and no later than the 56th day before the school
district's general election.
new text end

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. new text begin COMPUTER ADAPTIVE ASSESSMENTS.
new text end

new text begin The Department of Education, by December 1, 2008, must report to the education
committees of the legislature on it efforts to add a computer adaptive assessment that
includes formative analytics to the Minnesota's comprehensive assessment administered
under Minnesota Statutes, section 120B.30.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 12. new text begin DEPARTMENT OF EDUCATION REPORT.
new text end

new text begin The Department of Education must submit a report to the education committees of
the legislature by January 15, 2009, analyzing the department's data collection procedures
under each of the department's major data reporting systems and recommend a streamlined,
Web-based system of reporting school district data. The report also must analyze existing
stand-alone school district reporting requirements and recommend the elimination of any
district reports that are duplicative of other data already collected by the department.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 13. new text begin HEALTH, NUTRITION, AND PHYSICAL EDUCATION ADVISORY
COUNCIL.
new text end

new text begin The commissioner of education shall convene an advisory council that consists of
22 members. The council shall consist of two senators, including one member of the
minority caucus, appointed by the Subcommittee on Committees of the Committee on
Rules and Administration; two members of the house of representatives, one appointed by
the speaker and one appointed by the minority leader; the commissioner of health or the
commissioner's designee; the commissioner of education or the commissioner's designee;
up to 16 public members who have an interest in addressing childhood obesity, including
up to eight public members appointed by the speaker of the house of representatives and up
to eight public members appointed by the majority leader of the senate. The membership
of the council shall include a curriculum specialist from the Department of Education; a
representative of the Minnesota Association of Health, Physical Education, Recreation,
and Dance; a representative of the Minnesota Board of Teaching; a representative of the
Minnesota School Boards Association; a representative of the School Nurse Organization;
a representative of the American Heart Association; an elementary school principal;
a secondary school principal; a representative of the Minnesota School Nutrition
Association; a nutritionist; a health educator who sits on Quality Teaching Network;
a representative of the Obesity Prevention Center; a representative of the Minnesota
Association of Family and Consumer Sciences; a representative of the Minnesota Medical
Association; and a physical fitness educator who sits on the Quality Teaching Network.
new text end

new text begin The advisory council shall develop recommendations for statewide standards for
health, nutrition, and physical education and increased physical activity during the
school day based on 2007-2008 Health Care Access Commission's recommendations on
childhood obesity. The goal of these standards must be to promote the understanding
of the health habits that will serve students throughout their lifetimes, by promoting
health and avoiding health risks, encouraging increased activity and cardiovascular
health, and supporting improved nutrition. The commissioner of education shall report
the recommendations to the legislature by December 15, 2008. The advisory council is
governed by Minnesota Statutes, section 15.059.
new text end

Sec. 14. new text begin TASK FORCE ON TEACHER LICENSURE AND CERTIFICATION.
new text end

new text begin Subdivision 1. new text end

new text begin Creation and duties. new text end

new text begin (a) The commissioner of education shall
develop a task force in collaboration with Dakota and Ojibwe language immersion
programs and the Minnesota Indian Affairs Council to identify barriers to teacher
licensing, teacher certification, fluency certification, and licensing for prekindergarten
through grade 12 Dakota and Ojibwe language immersion programs. The task force shall
focus on changes needed in licensure to ensure the continuation and development of
Dakota and Ojibwe language immersion programs in Bureau of Indian Affairs programs,
charter schools, private schools, nonprofit organizations, and public schools in Minnesota.
new text end

new text begin (b) Minnesota recognizes the responsibility of the Minnesota tribes to oversee the
revitalization of Dakota and Ojibwe language in the state and shall receive tribal direction
on issues of teacher certification, fluency certification, and licensing of Dakota and Ojibwe
language immersion programs by the Departments of Human Services and Education.
The task force shall also identify strategies to ensure existing funding sources will be used
for Dakota and Ojibwe language immersion programs.
new text end

new text begin Subd. 2. new text end

new text begin Report. new text end

new text begin The task force shall report to the Minnesota Indian Affairs
Council and the legislature by December 15, 2008, on changes needed for licensing and
certification specified in subdivision 1. The task force shall make recommendations to the
legislature on changes required in law to obtain the licensing and certification specified in
subdivision 1.
new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 6

SELF-SUFFICIENCY AND LIFELONG LEARNING

Section 1.

new text begin [4.046] OFFICE OF EARLY LEARNING.
new text end

new text begin (a) An Office of Early Learning is established to coordinate a high quality early
childhood system in Minnesota to make such programs more effective, and to improve the
educational outcomes of all children. The governor must appoint, with the advice and
consent of the senate, a director who is a recognized expert in the field of early childhood
care and education who will facilitate communication and coordinate prekindergarten and
child care programs under the administration of the Departments of Education, Health,
and Human Services.
new text end

new text begin (b) The director of the Office of Early Learning must coordinate Departments of
Education, Health, and Human Services staff efforts to:
new text end

new text begin (1) consolidate and coordinate resources and public funding streams for early
education and child care, and ensure the accountability and coordinated development of
all early education and child care services to children from birth to age five;
new text end

new text begin (2) work with the Departments of Education, Health, and Human Services and
Minnesota Early Learning Foundation (MELF) to create common standards for quality
early childhood programming and rules for teacher training and certification;
new text end

new text begin (3) create a seamless transition from early childhood programs to kindergarten;
new text end

new text begin (4) encourage family choice by ensuring a mixed system of high quality public and
private programs, with local points of entry, staffed by well-qualified professionals;
new text end

new text begin (5) ensure parents a decisive role in the planning, operation, and evaluation of
programs that aid families in the care of children;
new text end

new text begin (6) provide consumer education and accessibility to early education and child care
resources;
new text end

new text begin (7) advance the quality of early education and child care programs in order to
support the healthy development of children and preparation for their success in school;
new text end

new text begin (8) develop a seamless service delivery system of early education and child care
programs administered by local, state, and federal agencies, with local points of entry;
new text end

new text begin (9) develop and manage an effective data collection system to support the necessary
functions of a coordinated system of early education and child care in order to enable
accurate evaluation of its impact;
new text end

new text begin (10) respect and be sensitive to family values and cultural heritage; and
new text end

new text begin (11) establish the administrative framework for and promote the development of
early education and child care services in order to provide that such services, staffed
by well-qualified professionals, are available in every community for all families that
express a need for them.
new text end

new text begin (c) The director of the Office of Early Learning must report to the legislative
committees with jurisdiction over the early childhood education and child care programs
by February 1 of each year on the status of the work required under paragraph (b) and
any statutory changes necessary to improve quality and increase access. The director
also must present to these same legislative committees by February 1, 2009, a detailed
plan, with an implementation timeline, to colocate state early childhood education and
child care assistance programs and services.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

new text begin [120A.015] SCHOOL READINESS GOAL.
new text end

new text begin The legislature seeks to ensure that 75 percent of Minnesota children are
school-ready by 2012.
new text end

Sec. 3.

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. Revenues and expenditures for full-day
kindergarten must be accounted for in the school district's general fund. Learning activities
provided as a part of a community education program are not kindergarten, and must be
accounted for in the school district's community service fund.
new text end

Sec. 4.

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. 5.

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. 6.

new text begin [124D.141] STATE ADVISORY BOARD ON SCHOOL READINESS.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin A 12-member State Advisory Board on School
Readiness is established. The director of the Office of Early Learning must start the
advisory board and assist in developing a coordinated, efficient, and cost-effective system
for delivering early childhood programs throughout Minnesota that focus on early care
and education, health care, and family support.
new text end

new text begin Subd. 2. new text end

new text begin Board members; terms. new text end

new text begin (a) The advisory board includes the following
12 members:
new text end

new text begin (1) the commissioner of employment and economic development or the
commissioner's designee;
new text end

new text begin (2) the commissioner of health or the commissioner's designee;
new text end

new text begin (3) the commissioner of education or the commissioner's designee;
new text end

new text begin (4) the commissioner of human services or the commissioner's designee;
new text end

new text begin (5) four public members appointed jointly by the majority and minority leaders in
the house and senate who are recognized experts in early care and education;
new text end

new text begin (6) two public members appointed jointly by the majority and minority leaders in the
house and senate who are community or business leaders; and
new text end

new text begin (7) two parents with at least one child under the age of six appointed by the governor.
new text end

new text begin (b) Members appointed by the majority and minority leaders in the house and senate
serve staggered three-year terms. Board members must nominate and elect a chair and
other officers from among the public members. Members initially appointed to the board
shall assign themselves by lot to terms of one, two, or three years. The chair must notify
the governor on the assignment of these terms. The board shall meet regularly at the times
and places the board determines. Meetings shall be called by the chair or at the written
request of any three members. Members' terms, compensation, removal, and vacancies
are governed by section 15.0575. Notwithstanding section 15.059, board members must
not be paid a per diem or reimbursed for any expenses associated with their membership
on the board.
new text end

new text begin (c) The public members of the board must represent the communities of color.
new text end

new text begin Subd. 3. new text end

new text begin Duties. new text end

new text begin The board shall recommend to the governor and the legislature:
new text end

new text begin (1) the most effective method to improve the coordination and delivery of early care
and education services that integrates child care, preschools, and family support services
and programs;
new text end

new text begin (2) a multiyear plan for effectively and efficiently coordinating and integrating
state services for early care and education, improving service delivery and standards
of care, avoiding duplication and fragmentation of service, and enhancing public and
private investment;
new text end

new text begin (3) methods for measuring the quality, quantity, and effectiveness of early care and
education programs throughout the state;
new text end

new text begin (4) how to identify and measure school readiness indicators on a regular basis;
new text end

new text begin (5) how to track, enhance, integrate, and coordinate federal, state, and local funds
allocated for early care and education and related family support services;
new text end

new text begin (6) policy changes to improve children's ability to start school ready to learn; and
new text end

new text begin (7) how to provide technical assistance to community efforts that promote school
readiness and encourage community organizations to collaborate in promoting school
readiness.
new text end

new text begin Subd. 4. new text end

new text begin Board expiration. new text end

new text begin The State Advisory Board on School Readiness
expires January 1, 2013.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

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 25 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. 8.

Minnesota Statutes 2007 Supplement, section 124D.531, subdivision 1, is
amended to read:

Subdivision 1.

State total adult basic education aid.

(a) The state total adult basic
education aid for fiscal year 2005 is $36,509,000. The state total adult basic education
aid for fiscal year 2006 equals $36,587,000 plus any amount that is not paid for during
the previous fiscal year, as a result of adjustments under subdivision 4, paragraph (a), or
section 124D.52, subdivision 3. The state total adult basic education aid for fiscal year
2007 equals $37,673,000 plus any amount that is not paid for during the previous fiscal
year, as a result of adjustments under subdivision 4, paragraph (a), or section 124D.52,
subdivision 3. The state total adult basic education aid for fiscal year 2008 equals
$40,650,000, plus any amount that is not paid during the previous fiscal year as a result of
adjustments under subdivision 4, paragraph (a), or section 124D.52, subdivision 3. The
state total adult basic education aid for later fiscal years equals:

(1) the state total adult basic education aid for the preceding fiscal year plus any
amount that is not paid for during the previous fiscal year, as a result of adjustments under
subdivision 4, paragraph (a), or section 124D.52, subdivision 3; times

(2) the lesser of:

(i) 1.03; or

(ii) deleted text begin the greater of 1.00 or the ratio of the state total contact hours in the first prior
program year to the state total contact hours in the second prior program year deleted text end new text begin the average
growth in state total contact hours over the prior 10 program years new text end .

Beginning in fiscal year 2002, two percent of the state total adult basic education
aid must be set aside for adult basic education supplemental service grants under section
124D.522.

(b) The state total adult basic education aid, excluding basic population aid, equals
the difference between the amount computed in paragraph (a), and the state total basic
population aid under subdivision 2.

Sec. 9.

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.

Sec. 10.

Minnesota Statutes 2007 Supplement, section 126C.05, subdivision 1, is
amended to read:

Subdivision 1.

Pupil unit.

Pupil units for each Minnesota resident pupil under the
age of 21 or who meets the requirements of section 120A.20, subdivision 1, paragraph (c),
in average daily membership enrolled in the district of residence, in another district under
sections 123A.05 to 123A.08, 124D.03, 124D.08, or 124D.68; in a charter school under
section 124D.10; or for whom the resident district pays tuition under section 123A.18,
123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, subdivision 4, 124D.04,
124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65, shall be counted according to this
subdivision.

(a) A prekindergarten pupil with a disability who is enrolled in a program approved
by the commissioner and has an individual education plan is counted as the ratio of the
number of hours of assessment and education service to 825 times 1.25 with a minimum
average daily membership of 0.28, but not more than 1.25 pupil units.

(b) A prekindergarten pupil who is assessed but determined not to be disabled is
counted as the ratio of the number of hours of assessment service to 825 times 1.25.

(c) A kindergarten pupil with a disability who is enrolled in a program approved
by the commissioner is counted as the ratio of the number of hours of assessment and
education services required in the fiscal year by the pupil's individual education program
plan to 875, but not more than one.

(d) A kindergarten pupil who is not included in paragraph (c) is counted as deleted text begin .612 deleted text end new text begin 1.0 new text end
pupil units.

(e) A pupil who is in any of grades 1 to 3 is counted as 1.115 pupil units for fiscal
year 2000 and thereafter.

(f) A pupil who is any of grades 4 to 6 is counted as 1.06 pupil units for fiscal
year 1995 and thereafter.

(g) A pupil who is in any of grades 7 to 12 is counted as 1.3 pupil units.

(h) A pupil who is in the postsecondary enrollment options program is counted
as 1.3 pupil units.

Sec. 11.

new text begin [126C.127] ALL-DAY KINDERGARTEN RESERVE.
new text end

new text begin Subdivision 1. new text end

new text begin Revenue. new text end

new text begin Of a district's general education revenue for fiscal
year 2009 and later, each school district shall reserve an amount equal to the formula
allowance multiplied by the sum of the adjusted marginal cost pupil units in average daily
membership, according to section 126C.05, subdivision 5, in kindergarten times .388.
new text end

new text begin Subd. 2. new text end

new text begin Revenue use. new text end

new text begin Revenue under this section must be used to provide all-day
kindergarten.
new text end

new text begin Subd. 3. new text end

new text begin Alternate revenue use. new text end

new text begin If the board of a district determines that the district
is already providing all-day kindergarten or if the board chooses to reallocate the revenue
under subdivision 1, a district may use the revenue to provide early childhood education
programs for children aged three or four.
new text end

Sec. 12. new text begin SCHOOL READINESS ASSESSMENTS AND KINDERGARTEN
TRANSITION STRATEGIES.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin In order to increase the capacity of school districts to
improve the performance of children at risk for not being fully prepared for kindergarten,
school readiness assessment and kindergarten transition strategy grants are established.
new text end

new text begin Subd. 2. new text end

new text begin Technical assistance. new text end

new text begin (a) The commissioner of education must provide
resources and technical assistance to enable a participating school district to offer
comprehensive and developmentally appropriate assessments to entering kindergartners
or, where applicable, children in prekindergarten programs and to develop and implement
kindergarten transition strategies.
new text end

new text begin (b) A school district's assessment tool must be research-based and must assist with
identifying risk and informing instructional improvement. A participating school district
must coordinate with community and school-based early childhood programs.
new text end

new text begin (c) An effective kindergarten transition strategy may include:
new text end

new text begin (1) transition plans for children entering kindergarten;
new text end

new text begin (2) a transition planning team composed of representatives from early care and
education providers, elementary school staff including kindergarten teachers, parents,
and community members;
new text end

new text begin (3) information and education for parents, program providers, and educators on:
new text end

new text begin (i) comprehensive child development;
new text end

new text begin (ii) the skills and knowledge incoming kindergartners should demonstrate; and
new text end

new text begin (iii) related community resources;
new text end

new text begin (4) building community awareness about the importance of children's school
readiness; and
new text end

new text begin (5) fostering collaboration among child care, Head Start, early childhood family
education, school readiness, family, friends and neighbors, and other early childhood
programs and elementary school providers.
new text end

new text begin Subd. 3. new text end

new text begin Application. new text end

new text begin A school district must submit its application to the
commissioner in the form and manner required by the commissioner. The commissioner
must select school districts to receive grants giving priority to districts with high poverty
rates. To the extent practical, the selected districts must be located throughout the state.
new text end

new text begin Subd. 4. new text end

new text begin Annual report. new text end

new text begin A school district that receives a grant must submit an
annual report to the commissioner in the form and manner required by the commissioner.
The report must include a description of the assessment tool, process, and results.
new text end

Sec. 13. new text begin APPROPRIATION.
new text end

new text begin Subdivision 1. new text end

new text begin Commissioner of education. new text end

new text begin The sums indicated in this section are
appropriated from the general fund to the commissioner of education for the fiscal years
designated.
new text end

new text begin Subd. 2. new text end

new text begin Parent-child home program. new text end

new text begin For a grant to the Jewish Family and
Children's Service for a research-based early childhood literacy and school readiness
program:
new text end

	new text begin $ new text end	new text begin 252,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Subd. 3. new text end

new text begin School readiness assessments and kindergarten transition strategies.
new text end

new text begin For school readiness assessments and kindergarten transition strategies:
new text end

	new text begin $ new text end	new text begin ....... new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Of this amount, $....... is for program administration. This appropriation must be
added to the base budget.
new text end