SF 3001

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

1.1A bill for an act

1.2relating to education; providing for prekindergarten through grade 12 education,
1.3including general education, education excellence, special programs, libraries,
1.4state agencies, and self-sufficiency and lifelong learning; authorizing rulemaking;
1.5appropriating money;amending Minnesota Statutes 2006, sections 13.32,
1.6by adding subdivisions; 120A.22, subdivisions 5, 6; 120B.02; 120B.023,
1.7subdivision 2; 120B.11, subdivision 5; 120B.131, subdivision 2; 121A.11,
1.8subdivisions 1, 2; 122A.07, subdivisions 2, 3; 122A.09, subdivision 4; 122A.14,
1.9by adding subdivisions; 122A.18, by adding a subdivision; 122A.40, subdivision
1.105; 122A.60; 122A.61, subdivision 1; 122A.75, subdivision 1; 123B.14,
1.11subdivision 7; 123B.36, subdivision 1; 123B.49, subdivision 4; 123B.51, by
1.12adding a subdivision; 123B.57, subdivisions 2, 6; 123B.71, subdivision 9;
1.13123B.77, subdivision 3; 123B.81, subdivisions 3, 5; 123B.83, subdivision
1.143; 124D.10, subdivisions 2a, 4a, 6, 6a, 7, 8, 9, 23; 124D.19, subdivision
1.1514; 124D.522; 124D.55; 124D.60, subdivision 1; 124D.86, subdivision 1;
1.16125A.15; 125A.51; 125A.65, subdivision 4, by adding a subdivision; 125A.744,
1.17subdivision 3; 126C.40, subdivision 6; 134.31, subdivision 6, by adding a
1.18subdivision; 135A.14, subdivision 2; Minnesota Statutes 2007 Supplement,
1.19sections 120B.021, subdivision 1; 120B.15; 123B.143, subdivision 1; 123B.81,
1.20subdivision 4; 124D.095, subdivision 4; 124D.10, subdivisions 4, 23a; 124D.13,
1.21subdivision 11; 124D.531, subdivision 1; 125A.14; 126C.10, subdivision 34;
1.22127A.49, subdivisions 2, 3; 134.31, subdivision 4a; proposing coding for
1.23new law in Minnesota Statutes, chapters 3; 120B; 121A; 124D; 125B; 127A;
1.24repealing Minnesota Statutes 2006, sections 121A.67; 125A.16; 125A.19;
1.25125A.20; 125A.57; Laws 2006, chapter 263, article 3, section 16.
1.26BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.27ARTICLE 1

1.28GENERAL EDUCATION

1.29    Section 1. [3.9855] EDUCATION FIRST.
1.30    Notwithstanding any law to the contrary, during a regular legislative session, the
1.31legislature must pass and send to the governor, the state early education through grade
1.3212 biennial finance legislation in the first year of the biennium and the early education
2.1through grade 12 supplemental finance legislation in the second year of the biennium
2.2before passing any other state budget finance legislation.
2.3EFFECTIVE DATE.This section is effective the day following final enactment.

2.4    Sec. 2. Minnesota Statutes 2006, section 122A.40, subdivision 5, is amended to read:
2.5    Subd. 5. Probationary period. (a) The first three consecutive years of a teacher's
2.6first teaching experience in Minnesota in a single district is deemed to be a probationary
2.7period of employment, and after completion thereof, the probationary period in each
2.8district in which the teacher is thereafter employed shall be one year. The school board
2.9must adopt a plan for written evaluation of teachers during the probationary period.
2.10Evaluation must occur at least three times each year for a teacher performing services on
2.11120 or more school days, at least two times each year for a teacher performing services on
2.1260 to 119 school days, and at least one time each year for a teacher performing services
2.13on fewer than 60 school days. Days devoted to parent-teacher conferences, teachers'
2.14workshops, and other staff development opportunities and days on which a teacher is
2.15absent from school must not be included in determining the number of school days on
2.16which a teacher performs services. Except as otherwise provided in paragraph paragraphs
2.17(b) and (c), during the probationary period any annual contract with any teacher may or
2.18may not be renewed as the school board shall see fit. However, the board must give any
2.19such teacher whose contract it declines to renew for the following school year written
2.20notice to that effect before July 1. If the teacher requests reasons for any nonrenewal
2.21of a teaching contract, the board must give the teacher its reason in writing, including
2.22a statement that appropriate supervision was furnished describing the nature and the
2.23extent of such supervision furnished the teacher during the employment by the board,
2.24within ten days after receiving such request. The school board may, after a hearing held
2.25upon due notice, discharge a teacher during the probationary period for cause, effective
2.26immediately, under section 122A.44.
2.27    (b) A board must discharge a probationary teacher, effective immediately, upon
2.28receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the teacher's
2.29license has been revoked due to a conviction for child abuse or sexual abuse.
2.30    (c) A school district that fails to evaluate a probationary teacher under paragraph (a)
2.31must renew the teacher unless it completes the required evaluation or budget constraints
2.32require the board to not renew the probationary teacher.
2.33    (d) A probationary teacher whose first three years of consecutive employment are
2.34interrupted for active military service and who promptly resumes teaching consistent with
2.35federal reemployment timelines for uniformed service personnel under United States
3.1Code, title 38, section 4312(e), is considered to have a consecutive teaching experience
3.2for purposes of paragraph (a).
3.3    (d) (e) A probationary teacher must complete at least 60 days of teaching service
3.4each year during the probationary period. Days devoted to parent-teacher conferences,
3.5teachers' workshops, and other staff development opportunities and days on which a
3.6teacher is absent from school do not count as days of teaching service under this paragraph.

3.7    Sec. 3. Minnesota Statutes 2006, section 123B.14, subdivision 7, is amended to read:
3.8    Subd. 7. Clerk records. The clerk shall keep a record of all meetings of the
3.9district and the board in books provided by the district for that purpose. The clerk shall,
3.10within three days after an election, notify all persons elected of their election. By August
3.11September 15 of each year the clerk shall file with the board a report of the revenues,
3.12expenditures and balances in each fund for the preceding fiscal year. The report together
3.13with vouchers and supporting documents shall subsequently be examined by a public
3.14accountant or the state auditor, either of whom shall be paid by the district, as provided
3.15in section 123B.77, subdivision 3. The board shall by resolution approve the report or
3.16require a further or amended report. By August September 15 of each year, the clerk shall
3.17make and transmit to the commissioner certified reports, showing:
3.18    (1) The condition and value of school property;
3.19    (2) (1) The revenues and expenditures in detail, and such other financial information
3.20required by law, rule, or as may be called for by the commissioner;
3.21    (3) (2) The length of school term and the enrollment and attendance by grades; and
3.22    (4) (3) Such other items of information as may be called for by the commissioner.
3.23    The clerk shall enter in the clerk's record book copies of all reports and of the
3.24teachers' term reports, as they appear in the registers, and of the proceedings of any
3.25meeting as furnished by the clerk pro tem, and keep an itemized account of all the
3.26expenses of the district. The clerk shall furnish to the auditor of the proper county, by
3.27October 10 September 30 of each year, an attested copy of the clerk's record, showing the
3.28amount of money proposed property taxes voted by the district or the board for school
3.29purposes; draw and sign all orders upon the treasurer for the payment of money for bills
3.30allowed by the board for salaries of officers and for teachers' wages and all claims, to be
3.31countersigned by the chair. Such orders must state the consideration, payee, and the
3.32fund and the clerk shall take a receipt therefor. Teachers' wages shall have preference in
3.33the order in which they become due, and no money applicable for teachers' wages shall
3.34be used for any other purpose, nor shall teachers' wages be paid from any fund except
3.35that raised or apportioned for that purpose.

4.1    Sec. 4. Minnesota Statutes 2006, section 123B.57, subdivision 2, is amended to read:
4.2    Subd. 2. Contents of program. (a) To qualify for health and safety revenue, a
4.3district must adopt a health and safety program. The program must include plans, where
4.4applicable, for hazardous substance removal, fire and life safety code repairs, regulated
4.5facility and equipment violations, and health, safety, and environmental management,
4.6including indoor air quality management.
4.7    (a) (b) A hazardous substance plan must contain provisions for the removal or
4.8encapsulation of asbestos from school buildings or property, asbestos-related repairs,
4.9cleanup and disposal of polychlorinated biphenyls found in school buildings or property,
4.10and cleanup, removal, disposal, and repairs related to storing heating fuel or transportation
4.11fuels such as alcohol, gasoline, fuel, oil, and special fuel, as defined in section 296A.01.
4.12If a district has already developed a plan for the removal or encapsulation of asbestos as
4.13required by the federal Asbestos Hazard Emergency Response Act of 1986, the district
4.14may use a summary of that plan, which includes a description and schedule of response
4.15actions, for purposes of this section. The plan must also contain provisions to make
4.16modifications to existing facilities and equipment necessary to limit personal exposure
4.17to hazardous substances, as regulated by the federal Occupational Safety and Health
4.18Administration under Code of Federal Regulations, title 29, part 1910, subpart Z; or is
4.19determined by the commissioner to present a significant risk to district staff or student
4.20health and safety as a result of foreseeable use, handling, accidental spill, exposure, or
4.21contamination.
4.22    (b) (c) A fire and life safety plan must contain a description of the current fire and,
4.23life safety, or elevator code violations, a plan for the removal or repair of the fire and, life
4.24safety, or elevator safety hazard, and a description of safety preparation and awareness
4.25procedures to be followed until the hazard is fully corrected.
4.26    (c) (d) A facilities and equipment violation plan must contain provisions to correct
4.27health and safety hazards as provided in Department of Labor and Industry standards
4.28pursuant to section 182.655.
4.29    (d) (e) A health, safety, and environmental management plan must contain a
4.30description of training, record keeping, hazard assessment, and program management as
4.31defined in section 123B.56.
4.32    (e) (f) A plan to test for and mitigate radon produced hazards.
4.33    (f) (g) A plan to monitor and improve indoor air quality.
4.34EFFECTIVE DATE.This section is effective the day following final enactment.

4.35    Sec. 5. Minnesota Statutes 2006, section 123B.57, subdivision 6, is amended to read:
5.1    Subd. 6. Uses of health and safety revenue. (a) Health and safety revenue may
5.2be used only for approved expenditures necessary to correct fire and life safety hazards,
5.3or for the removal or encapsulation of asbestos from school buildings or property
5.4owned or being acquired by the district, asbestos-related repairs, cleanup and disposal
5.5of polychlorinated biphenyls found in school buildings or property owned or being
5.6acquired by the district, or the cleanup, removal, disposal, and repairs related to storing
5.7heating fuel or transportation fuels such as alcohol, gasoline, fuel oil, and special fuel,
5.8as defined in section 296A.01, Minnesota occupational safety and health administration
5.9regulated facility and equipment hazards, indoor air quality mold abatement, upgrades
5.10or replacement of mechanical ventilation systems to meet American Society of Heating,
5.11Refrigerating and Air Conditioning Engineers standards and State Mechanical Code,
5.12Department of Health Food Code and swimming pool hazards excluding depth correction,
5.13and health, safety, and environmental management. Testing and calibration activities are
5.14permitted for existing mechanical ventilation systems at intervals no less than every five
5.15years. Health and safety revenue may be used to replace or repair elevators, according to a
5.16plan adopted under subdivision 2. Health and safety revenue must not be used to finance a
5.17lease purchase agreement, installment purchase agreement, or other deferred payments
5.18agreement. Health and safety revenue must not be used for the construction of new
5.19facilities or the purchase of portable classrooms, for interest or other financing expenses,
5.20or for energy efficiency projects under section 123B.65. The revenue may not be used for
5.21a building or property or part of a building or property used for postsecondary instruction
5.22or administration or for a purpose unrelated to elementary and secondary education.
5.23    (b) Notwithstanding paragraph (a), health and safety revenue must not be used for
5.24replacement of building materials or facilities including roof, walls, windows, internal
5.25fixtures and flooring, nonhealth and safety costs associated with demolition of facilities,
5.26structural repair or replacement of facilities due to unsafe conditions, violence prevention
5.27and facility security, ergonomics, building and heating, ventilating and air conditioning
5.28supplies, maintenance, and cleaning activities. All assessments, investigations,
5.29inventories, and support equipment not leading to the engineering or construction of a
5.30project shall be included in the health, safety, and environmental management costs in
5.31subdivision 8, paragraph (a).

5.32    Sec. 6. Minnesota Statutes 2006, section 123B.77, subdivision 3, is amended to read:
5.33    Subd. 3. Statement for comparison and correction. (a) By November 30 of the
5.34calendar year of the submission of the unaudited financial data, the district must provide to
5.35the commissioner audited financial data for the preceding fiscal year. The audit must be
6.1conducted in compliance with generally accepted governmental auditing standards, the
6.2federal Single Audit Act, and the Minnesota legal compliance guide issued by the Office
6.3of the State Auditor. An audited financial statement prepared in a form which will allow
6.4comparison with and correction of material differences in the unaudited financial data
6.5shall be submitted to the commissioner and the state auditor by December 31. The audited
6.6financial statement must also provide a statement of assurance pertaining to uniform
6.7financial accounting and reporting standards compliance and a copy of the management
6.8letter submitted to the district by the school district's auditor.
6.9    (b) By January February 15 of the calendar year following the submission of the
6.10unaudited financial data, the commissioner shall convert the audited financial data
6.11required by this subdivision into the consolidated financial statement format required
6.12under subdivision 1a and publish the information on the department's Web site.

6.13    Sec. 7. Minnesota Statutes 2006, section 123B.81, subdivision 3, is amended to read:
6.14    Subd. 3. Debt verification. The commissioner shall establish a uniform auditing or
6.15other verification procedure for districts to determine whether a statutory operating debt
6.16exists in any Minnesota school district as of June 30, 1977. This procedure must identify
6.17all interfund transfers made during fiscal year 1977 from a fund included in computing
6.18statutory operating debt to a fund not included in computing statutory operating debt.
6.19The standards for this uniform auditing or verification procedure must be promulgated
6.20by the state board pursuant to chapter 14. If a district applies to the commissioner for
6.21a statutory operating debt verification or if the unaudited financial statement for the
6.22school year ending June 30, 1977 reveals that a statutory operating debt might exist, the
6.23commissioner shall require a verification of the amount of the statutory operating debt
6.24which actually does exist.

6.25    Sec. 8. Minnesota Statutes 2007 Supplement, section 123B.81, subdivision 4, is
6.26amended to read:
6.27    Subd. 4. Debt elimination. If an audit or other verification procedure conducted
6.28pursuant to subdivision 3 determines that a statutory operating debt exists, a district
6.29must follow the procedures set forth in this section 123B.83 to eliminate this statutory
6.30operating debt.

6.31    Sec. 9. Minnesota Statutes 2006, section 123B.81, subdivision 5, is amended to read:
6.32    Subd. 5. Certification of debt. The commissioner shall certify the amount of
6.33statutory operating debt for each district. Prior to June 30, 1979, the commissioner may,
7.1on the basis of corrected figures, adjust the total amount of statutory operating debt
7.2certified for any district.

7.3    Sec. 10. Minnesota Statutes 2006, section 123B.83, subdivision 3, is amended to read:
7.4    Subd. 3. Failure to limit expenditures. If a district does not limit its expenditures in
7.5accordance with this section, the commissioner may so notify the appropriate committees
7.6of the legislature by no later than January 1 February 15 of the year following the end
7.7of that fiscal year.

7.8    Sec. 11. Minnesota Statutes 2007 Supplement, section 126C.10, subdivision 34,
7.9is amended to read:
7.10    Subd. 34. Basic alternative teacher compensation aid. (a) For fiscal years
7.112007 and later, 2008, and 2009, the basic alternative teacher compensation aid for a
7.12school district with a plan approved under section 122A.414, subdivision 2b, equals 65
7.1373.1 percent of the alternative teacher compensation revenue under section 122A.415,
7.14subdivision 1 . The basic alternative teacher compensation aid for an intermediate school
7.15district or charter school with a plan approved under section 122A.414, subdivisions 2a
7.16and 2b , if the recipient is a charter school, equals $260 times the number of pupils enrolled
7.17in the school on October 1 of the previous fiscal year, or on October 1 of the current fiscal
7.18year for a charter school in the first year of operation, times the ratio of the sum of the
7.19alternative teacher compensation aid and alternative teacher compensation levy for all
7.20participating school districts to the maximum alternative teacher compensation revenue
7.21for those districts under section 122A.415, subdivision 1.
7.22    (b) For fiscal years 2010 and later, the basic alternative teacher compensation aid
7.23for a school district with a plan approved under section 122A.414, subdivision 2b, equals
7.2465 percent of the alternative teacher compensation revenue under section 122A.415,
7.25subdivision 1. The basic alternative teacher compensation aid for an intermediate school
7.26district or charter school with a plan approved under section 122A.414, subdivisions 2a
7.27and 2b, if the recipient is a charter school, equals $260 times the number of pupils enrolled
7.28in the school on October 1 of the previous fiscal year, or on October 1 of the current fiscal
7.29year for a charter school in the first year of operation, times the ratio of the sum of the
7.30alternative teacher compensation aid and alternative teacher compensation levy for all
7.31participating school districts to the maximum alternative teacher compensation revenue
7.32for those districts under section 122A.415, subdivision 1.
7.33    (b) (c) Notwithstanding paragraphs (a) and (b) and section 122A.415, subdivision
7.341 , the state total basic alternative teacher compensation aid entitlement must not exceed
8.1$75,636,000 for fiscal year 2007 and later. The commissioner must limit the amount
8.2of alternative teacher compensation aid approved under section 122A.415 so as not to
8.3exceed these limits.
8.4EFFECTIVE DATE.This section is effective the day following final enactment.

8.5    Sec. 12. Minnesota Statutes 2006, section 126C.40, subdivision 6, is amended to read:
8.6    Subd. 6. Lease purchase; installment buys. (a) Upon application to, and approval
8.7by, the commissioner in accordance with the procedures and limits in subdivision 1,
8.8paragraphs (a) and (b), a district, as defined in this subdivision, may:
8.9    (1) purchase real or personal property under an installment contract or may lease
8.10real or personal property with an option to purchase under a lease purchase agreement, by
8.11which installment contract or lease purchase agreement title is kept by the seller or vendor
8.12or assigned to a third party as security for the purchase price, including interest, if any; and
8.13    (2) annually levy the amounts necessary to pay the district's obligations under the
8.14installment contract or lease purchase agreement.
8.15    (b) The obligation created by the installment contract or the lease purchase
8.16agreement must not be included in the calculation of net debt for purposes of section
8.17475.53 , and does not constitute debt under other law. An election is not required in
8.18connection with the execution of the installment contract or the lease purchase agreement.
8.19    (c) The proceeds of the levy authorized by this subdivision must not be used to
8.20acquire a facility to be primarily used for athletic or school administration purposes.
8.21    (d) For the purposes of this subdivision, "district" means:
8.22    (1) a racially isolated school district or a school district with a racially identifiable
8.23school required to have a comprehensive desegregation or integration plan for the
8.24elimination of segregation under Minnesota Rules, parts 3535.0100 to 3535.0180, which
8.25is eligible for revenue under section 124D.86, subdivision 3, clause (1), (2), or (3),
8.26and whose plan has been determined by the commissioner to be in compliance with
8.27Department of Education rules relating to equality of educational opportunity and school
8.28desegregation and, for a district eligible for revenue under section 124D.86, subdivision 3,
8.29clause (4) or (5), where the acquisition of property under this subdivision is determined by
8.30the commissioner to contribute to the implementation of the desegregation plan; or
8.31    (2) a school district that participates in a joint program for interdistrict desegregation
8.32with a district defined in clause (1) if the facility acquired under this subdivision is to
8.33be primarily used for the joint program and the commissioner determines that the joint
8.34programs are being undertaken to implement the districts' desegregation plan.
9.1    (e) Notwithstanding subdivision 1, the prohibition against a levy by a district to lease
9.2or rent a district-owned building to itself does not apply to levies otherwise authorized
9.3by this subdivision.
9.4    (f) For the purposes of this subdivision, any references in subdivision 1 to building
9.5or land shall include personal property.

9.6    Sec. 13. Minnesota Statutes 2007 Supplement, section 127A.49, subdivision 2, is
9.7amended to read:
9.8    Subd. 2. Abatements. Whenever by virtue of chapter 278, sections 270C.86,
9.9375.192 , or otherwise, the net tax capacity or referendum market value of any district for
9.10any taxable year is changed after the taxes for that year have been spread by the county
9.11auditor and the local tax rate as determined by the county auditor based upon the original
9.12net tax capacity is applied upon the changed net tax capacities, the county auditor shall,
9.13prior to February 1 of each year, certify to the commissioner of education the amount of
9.14any resulting net revenue loss that accrued to the district during the preceding year. Each
9.15year, the commissioner shall pay an abatement adjustment to the district in an amount
9.16calculated according to the provisions of this subdivision. This amount shall be deducted
9.17from the amount of the levy authorized by section 126C.46. The amount of the abatement
9.18adjustment must be the product of:
9.19    (1) the net revenue loss as certified by the county auditor, times
9.20    (2) the ratio of:
9.21    (i) the sum of the amounts of the district's certified levy in the third preceding year
9.22according to the following:
9.23    (A) section 123B.57, if the district received health and safety aid according to that
9.24section for the second preceding year;
9.25    (B) section 124D.20, if the district received aid for community education programs
9.26according to that section for the second preceding year;
9.27    (C) section 124D.135, subdivision 3, if the district received early childhood family
9.28education aid according to section 124D.135 for the second preceding year;
9.29    (D) section 126C.17, subdivision 6, if the district received referendum equalization
9.30aid according to that section for the second preceding year;
9.31    (E) section 126C.13, if the district received general education aid according to
9.32section 126C.13, subdivision 4, paragraph (b), clause (1), of that section in the second
9.33preceding year;
9.34    (F) (E) section 126C.10, subdivision 13a, if the district received operating capital aid
9.35according to section 126C.10, subdivision 13b, in the second preceding year;
10.1    (G) (F) section 126C.10, subdivision 29, if the district received equity aid according
10.2to section 126C.10, subdivision 30, in the second preceding year;
10.3    (H) (G) section 126C.10, subdivision 32, if the district received transition aid
10.4according to section 126C.10, subdivision 33, in the second preceding year;
10.5    (I) (H) section 123B.53, subdivision 5, if the district received debt service
10.6equalization aid according to section 123B.53, subdivision 6, in the second preceding year;
10.7    (J) (I) section 124D.22, subdivision 3, if the district received school-age care aid
10.8according to section 124D.22, subdivision 4, in the second preceding year;
10.9    (K) (J) section 123B.591, subdivision 3, if the district received deferred maintenance
10.10aid according to section 123B.591, subdivision 4, in the second preceding year; and
10.11    (L) (K) section 126C.10, subdivision 35, if the district received alternative teacher
10.12compensation equalization aid according to section 126C.10, subdivision 36, paragraph
10.13(a), in the second preceding year; to
10.14    (ii) the total amount of the district's certified levy in the third preceding December,
10.15plus or minus auditor's adjustments.

10.16    Sec. 14. Minnesota Statutes 2007 Supplement, section 127A.49, subdivision 3, is
10.17amended to read:
10.18    Subd. 3. Excess tax increment. (a) If a return of excess tax increment is made to a
10.19district pursuant to sections 469.176, subdivision 2, and 469.177, subdivision 9, or upon
10.20decertification of a tax increment district, the school district's aid and levy limitations
10.21must be adjusted for the fiscal year in which the excess tax increment is paid under the
10.22provisions of this subdivision.
10.23    (b) An amount must be subtracted from the district's aid for the current fiscal year
10.24equal to the product of:
10.25    (1) the amount of the payment of excess tax increment to the district, times
10.26    (2) the ratio of:
10.27    (i) the sum of the amounts of the district's certified levy for the fiscal year in which
10.28the excess tax increment is paid according to the following:
10.29    (A) section 123B.57, if the district received health and safety aid according to that
10.30section for the second preceding year;
10.31    (B) section 124D.20, if the district received aid for community education programs
10.32according to that section for the second preceding year;
10.33    (C) section 124D.135, subdivision 3, if the district received early childhood family
10.34education aid according to section 124D.135 for the second preceding year;
11.1    (D) section 126C.17, subdivision 6, if the district received referendum equalization
11.2aid according to that section for the second preceding year;
11.3    (E) section 126C.13, if the district received general education aid according to
11.4section 126C.13, subdivision 4, paragraph (b), clause (1), of that section in the second
11.5preceding year;
11.6    (F) (E) section 126C.10, subdivision 13a, if the district received operating capital aid
11.7according to section 126C.10, subdivision 13b, in the second preceding year;
11.8    (G) (F) section 126C.10, subdivision 29, if the district received equity aid according
11.9to section 126C.10, subdivision 30, in the second preceding year;
11.10    (H) (G) section 126C.10, subdivision 32, if the district received transition aid
11.11according to section 126C.10, subdivision 33, in the second preceding year;
11.12    (I) (H) section 123B.53, subdivision 5, if the district received debt service
11.13equalization aid according to section 123B.53, subdivision 6, in the second preceding year;
11.14    (J) (I) section 124D.22, subdivision 3, if the district received school-age care aid
11.15according to section 124D.22, subdivision 4, in the second preceding year;
11.16    (K) (J) section 123B.591, subdivision 3, if the district received deferred maintenance
11.17aid according to section 123B.591, subdivision 4, in the second preceding year; and
11.18    (L) (K) section 126C.10, subdivision 35, if the district received alternative teacher
11.19compensation equalization aid according to section 126C.10, subdivision 36, paragraph
11.20(a), in the second preceding year; to
11.21    (ii) the total amount of the district's certified levy for the fiscal year, plus or minus
11.22auditor's adjustments.
11.23    (c) An amount must be subtracted from the school district's levy limitation for the
11.24next levy certified equal to the difference between:
11.25    (1) the amount of the distribution of excess increment; and
11.26    (2) the amount subtracted from aid pursuant to clause (a).
11.27    If the aid and levy reductions required by this subdivision cannot be made to the aid
11.28for the fiscal year specified or to the levy specified, the reductions must be made from
11.29aid for subsequent fiscal years, and from subsequent levies. The school district must use
11.30the payment of excess tax increment to replace the aid and levy revenue reduced under
11.31this subdivision.
11.32    (d) This subdivision applies only to the total amount of excess increments received
11.33by a district for a calendar year that exceeds $25,000.

12.1ARTICLE 2

12.2EDUCATION EXCELLENCE

12.3    Section 1. Minnesota Statutes 2006, section 13.32, is amended by adding a subdivision
12.4to read:
12.5    Subd. 8a. Access to student records; school conferences. (a) A parent or guardian
12.6of a student may designate an individual, defined under paragraph (c), to participate in a
12.7school conference involving the child of the parent or guardian. The parent or guardian
12.8must provide the school with prior written consent allowing the significant individual to
12.9participate in the conference and to receive any data on the child of the consenting parent
12.10or guardian that is necessary and relevant to the conference discussions. The consenting
12.11parent or guardian may withdraw consent, in writing, at any time.
12.12    (b) A school may accept the following form, or another consent to release student
12.13data form, as sufficient to meet the requirements of this subdivision:

12.14"CONSENT TO PARTICIPATE IN CONFERENCES AND
12.15RECEIVE STUDENT DATA

12.16    I, ........................................... (Name of parent or guardian), as parent or guardian of
12.17........................................... (Name of child), consent to allow ...........................................
12.18(Name of an individual) to participate in school conferences and receive student data
12.19relating to the above-named child, consistent with Minnesota Statutes, section 13.32,
12.20subdivision 8a. I understand that I may withdraw my consent, upon written request, at
12.21any time.

12.22	(Signature of parent or guardian)
12.23	(Date)"

12.24    (c) For purposes of this section, "an individual" means one additional adult
12.25designated by a child's parent or guardian to attend school-related activities and
12.26conferences.
12.27EFFECTIVE DATE.This section is effective for the 2008-2009 school year and
12.28later.

12.29    Sec. 2. Minnesota Statutes 2006, section 13.32, is amended by adding a subdivision to
12.30read:
12.31    Subd. 11. Data to improve instruction. The Minnesota Department of Education
12.32and the Minnesota Office of Higher Education may each share educational data with
12.33the other agency for the purpose of analyzing and improving school district instruction,
12.34consistent with Code of Federal Regulations, title 34, section 99.31(a)(6). The educational
13.1data that may be shared between the two agencies under this subdivision must be limited
13.2to:
13.3    (1) student attendance data that include the name of the school or institution, school
13.4district, the year or term of attendance, and term type;
13.5    (2) student demographic and enrollment data;
13.6    (3) student academic performance and testing data; and
13.7    (4) any special academic services provided to a student.
13.8    Any analysis of or report on these data must contain only summary data.
13.9EFFECTIVE DATE.This section is effective the day following final enactment.

13.10    Sec. 3. Minnesota Statutes 2006, section 120B.02, is amended to read:
13.11120B.02 EDUCATIONAL EXPECTATIONS FOR MINNESOTA'S
13.12STUDENTS.
13.13    (a) The legislature is committed to establishing rigorous academic standards for
13.14Minnesota's public school students. To that end, the commissioner shall adopt in rule
13.15statewide academic standards. The commissioner shall not prescribe in rule or otherwise
13.16the delivery system, classroom assessments, or form of instruction that school sites must
13.17use. For purposes of this chapter, a school site is a separate facility, or a separate program
13.18within a facility that a local school board recognizes as a school site for funding purposes.
13.19    (b) All commissioner actions regarding the rule must be premised on the following:
13.20    (1) the rule is intended to raise academic expectations for students, teachers, and
13.21schools;
13.22    (2) any state action regarding the rule must evidence consideration of school district
13.23autonomy; and
13.24    (3) the Department of Education, with the assistance of school districts, must make
13.25available information about all state initiatives related to the rule to students and parents,
13.26teachers, and the general public in a timely format that is appropriate, comprehensive, and
13.27readily understandable.
13.28    (c) When fully implemented, the requirements for high school graduation in
13.29Minnesota must require students to satisfactorily complete, as determined by the school
13.30district, the course credit requirements under section 120B.024 and: successfully pass
13.31graduation examinations required under section 120B.30.
13.32    (1) for students enrolled in grade 8 before the 2005-2006 school year, to pass the
13.33basic skills test requirements; and
14.1    (2) for students enrolled in grade 8 in the 2005-2006 school year and later, to pass
14.2the Minnesota Comprehensive Assessments Second Edition (MCA-IIs).
14.3    (d) The commissioner shall periodically review and report on the state's assessment
14.4process.
14.5    (e) School districts are not required to adopt specific provisions of the federal
14.6School-to-Work programs.

14.7    Sec. 4. Minnesota Statutes 2007 Supplement, section 120B.021, subdivision 1, is
14.8amended to read:
14.9    Subdivision 1. Required academic standards. The following subject areas are
14.10required for statewide accountability:
14.11    (1) language arts;
14.12    (2) mathematics;
14.13    (3) science;
14.14    (4) social studies, including history, geography, economics, and government and
14.15citizenship;
14.16    (5) health and physical education, for which locally developed academic standards
14.17apply; and
14.18    (6) the arts, for which statewide or locally developed academic standards apply, as
14.19determined by the school district. Public elementary and middle schools must offer at least
14.20three and require at least two of the following four arts areas: dance; music; theater; and
14.21visual arts. Public high schools must offer at least three and require at least one of the
14.22following five arts areas: media arts; dance; music; theater; and visual arts.
14.23    The commissioner must submit proposed standards in science and social studies to
14.24the legislature by February 1, 2004.
14.25For purposes of applicable federal law, the academic standards for language arts,
14.26mathematics, and science apply to all public school students, except the very few students
14.27with extreme cognitive or physical impairments for whom an individualized education
14.28plan team has determined that the required academic standards are inappropriate.
14.29An individualized education plan team that makes this determination must establish
14.30alternative standards with appropriate alternate achievement standards based on these
14.31academic standards for students with individualized education plans.
14.32    A school district, no later than the 2007-2008 school year, must adopt graduation
14.33requirements that meet or exceed state graduation requirements established in law or
14.34rule. A school district that incorporates these state graduation requirements before the
14.352007-2008 school year must provide students who enter the 9th grade in or before
15.1the 2003-2004 school year the opportunity to earn a diploma based on existing locally
15.2established graduation requirements in effect when the students entered the 9th grade.
15.3District efforts to develop, implement, or improve instruction or curriculum as a result
15.4of the provisions of this section must be consistent with sections 120B.10, 120B.11,
15.5and 120B.20.
15.6    The commissioner must include the contributions of Minnesota American Indian
15.7tribes and communities as they relate to the academic standards during the review and
15.8revision of the required academic standards.

15.9    Sec. 5. Minnesota Statutes 2006, section 120B.023, subdivision 2, is amended to read:
15.10    Subd. 2. Revisions and reviews required. (a) The commissioner of education must
15.11revise and appropriately embed technology and information literacy standards consistent
15.12with recommendations from school media specialists into the state's academic standards
15.13and graduation requirements and implement a review cycle for state academic standards
15.14and related benchmarks, consistent with this subdivision. During each review cycle, the
15.15commissioner also must examine the alignment of each required academic standard and
15.16related benchmark with the knowledge and skills students need for college readiness and
15.17advanced work in the particular subject area.
15.18    (b) The commissioner in the 2006-2007 school year must revise and align the state's
15.19academic standards and high school graduation requirements in mathematics to require
15.20that students satisfactorily complete the revised mathematics standards, beginning in the
15.212010-2011 school year. Under the revised standards:
15.22    (1) students must satisfactorily complete an algebra I credit by the end of eighth
15.23grade; and
15.24    (2) students scheduled to graduate in the 2014-2015 school year or later must
15.25satisfactorily complete an algebra II credit or its equivalent.
15.26The commissioner also must ensure that the statewide mathematics assessments
15.27administered to students in grades 3 through 8 and 11 beginning in the 2010-2011 school
15.28year are aligned with the state academic standards in mathematics. The commissioner
15.29must ensure that the statewide 11th grade mathematics test assessment administered to
15.30students under clause (2) in grade 11 beginning in the 2013-2014 school year must
15.31include is aligned with state academic standards in mathematics, including algebra II test
15.32items that are aligned with corresponding state academic standards in mathematics. The
15.33commissioner must implement a review of the academic standards and related benchmarks
15.34in mathematics beginning in the 2015-2016 school year.
16.1    (c) The commissioner in the 2007-2008 school year must revise and align the state's
16.2academic standards and high school graduation requirements in the arts to require that
16.3students satisfactorily complete the revised arts standards beginning in the 2010-2011
16.4school year. The commissioner must implement a review of the academic standards and
16.5related benchmarks in arts beginning in the 2016-2017 school year.
16.6    (d) The commissioner in the 2008-2009 school year must revise and align the
16.7state's academic standards and high school graduation requirements in science to require
16.8that students satisfactorily complete the revised science standards, beginning in the
16.92011-2012 school year. The commissioner also must ensure that the statewide science
16.10assessments administered to students under section 120B.30, subdivision 1a, beginning
16.11in the 2011-2012 school year, are aligned with the state academic standards in science.
16.12Under the revised standards, students scheduled to graduate in the 2014-2015 school year
16.13or later must satisfactorily complete a chemistry or physics credit. The commissioner
16.14must implement a review of the academic standards and related benchmarks in science
16.15beginning in the 2017-2018 school year.
16.16    (e) The commissioner in the 2009-2010 school year must revise and align the state's
16.17academic standards and high school graduation requirements in language arts to require
16.18that students satisfactorily complete the revised language arts standards beginning in the
16.192012-2013 school year. The commissioner also must ensure that the statewide language
16.20arts assessments administered to students in grades 3 through 8 and grade 10 beginning
16.21in the 2012-2013 school year are aligned with the state academic standards in language
16.22arts. The commissioner must implement a review of the academic standards and related
16.23benchmarks in language arts beginning in the 2018-2019 school year.
16.24    (f) The commissioner in the 2010-2011 school year must revise and align the state's
16.25academic standards and high school graduation requirements in social studies to require
16.26that students satisfactorily complete the revised social studies standards beginning in the
16.272013-2014 school year. The commissioner must implement a review of the academic
16.28standards and related benchmarks in social studies beginning in the 2019-2020 school year.
16.29    (g) School districts and charter schools must revise and align local academic
16.30standards and high school graduation requirements in health, physical education, world
16.31languages, and career and technical education to require students to complete the revised
16.32standards beginning in a school year determined by the school district or charter school.
16.33School districts and charter schools must formally establish a periodic review cycle for
16.34the academic standards and related benchmarks in health, physical education, world
16.35languages, and career and technical education.

17.1    Sec. 6. Minnesota Statutes 2006, section 120B.131, subdivision 2, is amended to read:
17.2    Subd. 2. Reimbursement for examination fees. The state may reimburse
17.3college-level examination program (CLEP) fees for a Minnesota public or nonpublic high
17.4school student who has successfully completed one or more college-level courses in high
17.5school in the subject matter of each examination in the following subjects: composition
17.6and literature, mathematics and science, social sciences and history, foreign languages, and
17.7business and humanities. The state may reimburse each student for up to six examination
17.8fees. The commissioner shall establish application procedures and a process and schedule
17.9for fee reimbursements. The commissioner must give priority to reimburse the CLEP
17.10examination fees of students of low-income families.

17.11    Sec. 7. Minnesota Statutes 2006, section 120B.11, subdivision 5, is amended to read:
17.12    Subd. 5. Report. (a) By October 1 of each year, the school board shall use standard
17.13statewide reporting procedures the commissioner develops and adopt a report that includes
17.14the following:
17.15    (1) student achievement goals for meeting state academic standards;
17.16    (2) results of local assessment data, and any additional test data;
17.17    (3) evidence of student achievement in subject areas under section 120B.021,
17.18subdivision 1, for which locally developed or statewide academic standards apply and
17.19statewide assessments are not developed, and which shall be presented at a local public
17.20meeting convened for the purpose of presenting the evidence;
17.21    (3) (4) the annual school district improvement plans including staff development
17.22goals under section 122A.60;
17.23    (4) (5) information about district and learning site progress in realizing previously
17.24adopted improvement plans; and
17.25    (5) (6) the amount and type of revenue attributed to each education site as defined
17.26in section 123B.04.
17.27    (b) The school board shall publish the report in the local newspaper with the largest
17.28circulation in the district, by mail, or by electronic means such as the district Web site. If
17.29electronic means are used, school districts must publish notice of the report in a periodical
17.30of general circulation in the district. School districts must make copies of the report
17.31available to the public on request. The board shall make a copy of the report available to
17.32the public for inspection. The board shall send a copy of the report to the commissioner
17.33of education by October 15 of each year.
18.1    (c) The title of the report shall contain the name and number of the school district and
18.2read "Annual Report on Curriculum, Instruction, and Student Achievement." The report
18.3must include at least the following information about advisory committee membership:
18.4    (1) the name of each committee member and the date when that member's term
18.5expires;
18.6    (2) the method and criteria the school board uses to select committee members; and
18.7    (3) the date by which a community resident must apply to next serve on the
18.8committee.

18.9    Sec. 8. Minnesota Statutes 2007 Supplement, section 120B.15, is amended to read:
18.10120B.15 GIFTED AND TALENTED STUDENTS PROGRAMS.
18.11    (a) School districts may identify students, locally develop programs, provide
18.12staff development, and evaluate programs to provide gifted and talented students with
18.13challenging educational programs.
18.14    (b) School districts may adopt guidelines for assessing and identifying students for
18.15participation in gifted and talented programs. The guidelines should include the use of:
18.16    (1) multiple and objective criteria; and
18.17    (2) assessments and procedures that are valid and reliable, fair, and based on current
18.18theory and research.; and
18.19    (3) an identification appeals process.
18.20    (c) School districts must adopt procedures for the academic acceleration of gifted
18.21and talented students. These procedures must include how the district will:
18.22    (1) assess a student's readiness and motivation for acceleration; and
18.23    (2) match the level, complexity, and pace of the curriculum to a student to achieve
18.24the best type of academic acceleration for that student.

18.25    Sec. 9. [120B.194] FIREARMS SAFETY CURRICULUM.
18.26    School districts must allow secondary students to receive firearms safety instruction
18.27and complete a firearms safety certification program. The curriculum, instruction, and
18.28program certification requirements must be consistent with the firearms safety program for
18.29youth developed by the Enforcement Division of the Department of Natural Resources.
18.30EFFECTIVE DATE.This section is effective the day following final enactment.

18.31    Sec. 10. Minnesota Statutes 2006, section 121A.11, subdivision 1, is amended to read:
19.1    Subdivision 1. Displayed by schools. Every public school and charter school in
19.2Minnesota must display an appropriate United States flag when in session. The flag shall
19.3be displayed upon the school grounds or outside the school building, on a proper staff, on
19.4every legal holiday occurring during the school term and at such other times as the board
19.5of the district may direct. The flag must be displayed within the principal rooms of the
19.6school building at all other times while school is in session.
19.7EFFECTIVE DATE.This section is effective for the 2008-2009 school year and
19.8later.

19.9    Sec. 11. Minnesota Statutes 2006, section 121A.11, subdivision 2, is amended to read:
19.10    Subd. 2. School boards to provide flags and staffs. (a) The board must provide
19.11the flag for each of the school buildings in their districts, together with a suitable staff to
19.12display the flag outside of the school building and proper arrangement to display the flag
19.13in the building, and a suitable receptacle for the safekeeping of the flag when not in use.
19.14    (b) A charter school board of directors that leases space from a public entity also
19.15must provide the flag for its charter school, together with a suitable staff to display the
19.16flag outside of the charter school building and proper arrangement to display the flag in
19.17the building, and a suitable receptacle for the safekeeping of the flag when not in use. A
19.18charter school board of directors that leases space from a nonpublic entity must address
19.19the requirement under this subdivision to provide flags and staff in its lease.
19.20EFFECTIVE DATE.This section is effective for the 2008-2009 school year and
19.21later.

19.22    Sec. 12. [121A.231] RESPONSIBLE FAMILY LIFE AND SEXUALITY
19.23EDUCATION PROGRAMS.
19.24    Subdivision 1. Definitions. (a) "Responsible family life and sexuality education"
19.25means education in grades 7 through 12 that:
19.26    (1) respects community values, marriage, and encourages family communication;
19.27    (2) develops skills in communication, decision making, and conflict resolution;
19.28    (3) contributes to healthy relationships;
19.29    (4) provides human development and sexuality education that is age-appropriate
19.30and medically accurate;
19.31    (5) includes an abstinence-first approach to delaying initiation of sexual activity that
19.32emphasizes abstinence while also including education about contraception and disease
19.33prevention; and
20.1    (6) promotes individual responsibility.
20.2    (b) "Age-appropriate" refers to topics, messages, and teaching methods suitable to
20.3particular ages or age groups of children and adolescents, based on developing cognitive,
20.4emotional, and behavioral capacity typical for the age or age group.
20.5    (c) "Medically accurate" means verified or supported by research conducted in
20.6compliance with scientific methods and published in peer-reviewed journals, where
20.7appropriate, and recognized as accurate and objective by professional organizations
20.8and agencies in the relevant field, such as the federal Centers for Disease Control
20.9and Prevention, the American Public Health Association, the American Academy of
20.10Pediatrics, or the American College of Obstetricians and Gynecologists.
20.11    Subd. 2. Curriculum requirements. (a) Consistent with its curriculum review
20.12cycle under section 120B.11, or no later than the start of the 2011-2012 school year,
20.13whichever comes first, a school district must offer and may independently establish
20.14policies, procedures, curriculum, and services for providing responsible family life and
20.15sexuality education that is age-appropriate and medically accurate for grades 7 through 12.
20.16    (b) A school district must consult with parents or guardians of enrolled students
20.17when establishing policies, procedures, curriculum, and services under this subdivision.
20.18    Subd. 3. Notice and parental options. (a) It is the legislature's intent to encourage
20.19pupils to communicate with their parents or guardians about human sexuality and to respect
20.20rights of parents or guardians to supervise their children's education on these subjects.
20.21    (b) Parents or guardians may excuse their children from all or part of a responsible
20.22family life and sexuality education program.
20.23    (c) A school district must establish policies and procedures consistent with
20.24paragraph (e) and this section for providing parents or guardians reasonable notice with
20.25the following information:
20.26    (1) if the district is offering a responsible family life and sexuality education program
20.27to the parents' or guardians' child during the course of the year;
20.28    (2) how the parents or guardians may inspect the written and audiovisual educational
20.29materials used in the program and the process for inspection;
20.30    (3) if the program is presented by school district personnel or outside consultants,
20.31and if outside consultants are used, who they may be; and
20.32    (4) parents' or guardians' right to choose not to have the child participate in the
20.33program and the procedure for exercising that right.
20.34    (d) A school district must establish policies and procedures for reasonably restricting
20.35the availability of written and audiovisual educational materials from public view of
20.36students who have been excused from all or part of a responsible family life and sexuality
21.1education program at the request of a parent or guardian, consistent with paragraph (e)
21.2and this section.
21.3    (e) A school district may develop a policy for a parent, guardian, or adult student
21.4age 18 or older to review the content of the instructional materials under this section. If a
21.5school district develops a policy, it must make reasonable arrangements with school
21.6personnel for alternative instruction for those pupils whose parents or guardians object to
21.7the content of the instruction, and must not impose an academic or other penalty upon a
21.8pupil for arranging the alternative instruction. School personnel may evaluate and assess
21.9the quality of the pupil's work completed as part of the alternative instruction.
21.10    Subd. 4. Assistance to school districts. (a) The Department of Education may offer
21.11services to school districts under paragraph (b), clauses (1) to (12), to the extent funds are
21.12available, to help them implement effective responsible family life and sexuality education
21.13programs. In making these services available, the department may provide:
21.14    (1) training for teachers, parents, and community members in the development of
21.15responsible family life and sexuality education curriculum or services and in planning
21.16for monitoring and evaluation activities;
21.17    (2) resource staff persons to provide expert training, curriculum development and
21.18implementation, and evaluation services;
21.19    (3) technical assistance to promote and coordinate community, parent, and youth
21.20forums in communities identified as having high needs for responsible family life and
21.21sexuality education; and
21.22    (4) technical assistance for issue management and policy development training for
21.23school boards, superintendents, principals, and administrators across the state.
21.24    (b) Technical assistance in accordance with National Health Education Standards
21.25provided by the department to school districts may:
21.26    (1) promote instruction and use of materials that are age-appropriate;
21.27    (2) provide information that is medically accurate and objective;
21.28    (3) provide instruction and promote use of materials that are respectful of marriage
21.29and commitments in relationships;
21.30    (4) provide instruction and promote use of materials that are appropriate for use
21.31with pupils and family experiences based on race, gender, sexual orientation, and ethnic
21.32and cultural background, and appropriately accommodate alternative learning based on
21.33language or disability;
21.34    (5) provide instruction and promote use of materials that encourage pupils to
21.35communicate with their parents or guardians about human sexuality;
22.1    (6) provide instruction and promote use of age-appropriate materials that teach
22.2abstinence from sexual intercourse as the only certain way to prevent unintended
22.3pregnancy or sexually transmitted infections, including HIV, chlamydia, and human
22.4papillomavirus (HPV), and provide information about the role and value of abstinence
22.5while also providing medically accurate information on other methods of preventing and
22.6reducing risk for unintended pregnancy and sexually transmitted infections;
22.7    (7) provide instruction and promote use of age-appropriate materials that are
22.8medically accurate in explaining transmission modes, risks, symptoms, and treatments for
22.9sexually transmitted infections, including HIV, chlamydia, and HPV;
22.10    (8) provide instruction and promote use of age-appropriate materials that address
22.11varied societal views on sexuality, sexual behaviors, pregnancy, and sexually transmitted
22.12infections, including HIV, chlamydia, and HPV, in an age-appropriate manner;
22.13    (9) provide instruction and promote use of age-appropriate materials that provide
22.14information about the effectiveness and safety of all FDA-approved methods for
22.15preventing and reducing risk for unintended pregnancy and sexually transmitted infections,
22.16including HIV, chlamydia, and HPV;
22.17    (10) provide instruction and promote use of age-appropriate materials that provide
22.18instruction in skills for making and implementing responsible decisions about sexuality;
22.19    (11) provide instruction and promote use of age-appropriate materials that provide
22.20instruction in skills for making and implementing responsible decisions about finding and
22.21using health services; and
22.22    (12) provide instruction and promote use of age-appropriate materials that do not
22.23teach or promote religious doctrine or bias against a religion or reflect or promote bias
22.24against any person on the basis of any category protected under the Minnesota Human
22.25Rights Act, chapter 363A.

22.26    Sec. 13. Minnesota Statutes 2006, section 122A.07, subdivision 2, is amended to read:
22.27    Subd. 2. Eligibility; board composition. Except for the representatives of higher
22.28education and the public, to be eligible for appointment to the Board of Teaching a person
22.29must be a teacher currently teaching in a Minnesota school and fully licensed for the
22.30position held and have at least five years teaching experience in Minnesota, including the
22.31two years immediately preceding nomination and appointment. Each nominee, other than
22.32a public nominee, must be selected on the basis of professional experience and knowledge
22.33of teacher education, accreditation, and licensure. The board must be composed of:
23.1    (1) six teachers who are currently teaching in a Minnesota school or who were
23.2teaching at the time of the appointment, at least four of whom must be teaching in a
23.3public school;
23.4    (2) one higher education representative, who must be a faculty member preparing
23.5teachers;
23.6    (3) one school administrator; and
23.7    (4) three members of the public, two of whom must be present or former members
23.8of school boards.

23.9    Sec. 14. Minnesota Statutes 2006, section 122A.07, subdivision 3, is amended to read:
23.10    Subd. 3. Vacant position. With the exception of a teacher who retires from teaching
23.11during the course of completing a board term, the position of a member who leaves
23.12Minnesota or whose employment status changes to a category different from that from
23.13which appointed is deemed vacant.

23.14    Sec. 15. Minnesota Statutes 2006, section 122A.09, subdivision 4, is amended to read:
23.15    Subd. 4. License and rules. (a) The board must adopt rules to license public school
23.16teachers and interns subject to chapter 14.
23.17    (b) The board must adopt rules requiring a person to successfully complete a skills
23.18examination in reading, writing, and mathematics as a requirement for initial teacher
23.19licensure. Such rules must require college and universities offering a board-approved
23.20teacher preparation program to provide remedial assistance to persons who did not
23.21achieve a qualifying score on the skills examination, including those for whom English is
23.22a second language.
23.23    (c) The board must adopt rules to approve teacher preparation programs. The board,
23.24upon the request of a postsecondary student preparing for teacher licensure or a licensed
23.25graduate of a teacher preparation program, shall assist in resolving a dispute between the
23.26person and a postsecondary institution providing a teacher preparation program when the
23.27dispute involves an institution's recommendation for licensure affecting the person or the
23.28person's credentials. At the board's discretion, assistance may include the application
23.29of chapter 14.
23.30    (d) The board must provide the leadership and shall adopt rules for the redesign of
23.31teacher education programs to implement a research based, results-oriented curriculum
23.32that focuses on the skills teachers need in order to be effective. The board shall implement
23.33new systems of teacher preparation program evaluation to assure program effectiveness
23.34based on proficiency of graduates in demonstrating attainment of program outcomes.
24.1The board must require that persons enrolled in a teacher preparation program receive
24.2instruction in historical and cultural competencies related to Minnesota American
24.3Indian tribes and communities and their contributions to Minnesota, consistent with
24.4sections 120B.021, subdivision 1, and 124D.71 to 124D.82. The competencies related
24.5to Minnesota American Indian tribes and communities must include, among other
24.6components, standards for instructional practices most effective for successfully teaching
24.7elementary and secondary American Indian students.
24.8    (e) The board must adopt rules requiring successful completion of an examination
24.9of general pedagogical knowledge and examinations of licensure-specific teaching
24.10skills. The rules shall be effective on the dates determined by the board but not later
24.11than September 1, 2001.
24.12    (f) The board must adopt rules requiring teacher educators to work directly with
24.13elementary or secondary school teachers in elementary or secondary schools to obtain
24.14periodic exposure to the elementary or secondary teaching environment.
24.15    (g) The board must grant licenses to interns and to candidates for initial licenses.
24.16    (h) The board must design and implement an assessment system which requires a
24.17candidate for an initial license and first continuing license to demonstrate the abilities
24.18necessary to perform selected, representative teaching tasks at appropriate levels.
24.19    (i) The board must receive recommendations from local committees as established
24.20by the board for the renewal of teaching licenses.
24.21    (j) The board must grant life licenses to those who qualify according to requirements
24.22established by the board, and suspend or revoke licenses pursuant to sections 122A.20 and
24.23214.10 . The board must not establish any expiration date for application for life licenses.
24.24    (k) The board must adopt rules that require all licensed teachers who are renewing
24.25their continuing license to include in their renewal requirements further preparation in
24.26the areas of using positive behavior interventions and in accommodating, modifying, and
24.27adapting curricula, materials, and strategies to appropriately meet the needs of individual
24.28students and ensure adequate progress toward the state's graduation rule.
24.29    (l) In adopting rules to license public school teachers who provide health-related
24.30services for disabled children, the board shall adopt rules consistent with license or
24.31registration requirements of the commissioner of health and the health-related boards who
24.32license personnel who perform similar services outside of the school.
24.33    (m) The board must adopt rules that require all licensed teachers who are renewing
24.34their continuing license to include in their renewal requirements further reading
24.35preparation, consistent with section 122A.06, subdivision 4. The rules do not take effect
24.36until they are approved by law. Teachers who do not provide direct instruction including, at
25.1least, counselors, school psychologists, school nurses, school social workers, audiovisual
25.2directors and coordinators, and recreation personnel are exempt from this section.
25.3    (n) The board must adopt rules that require all licensed teachers who are renewing
25.4their continuing license to include in their renewal requirements further preparation
25.5in understanding the key warning signs of early-onset mental illness in children and
25.6adolescents.
25.7EFFECTIVE DATE.This section is effective for the 2008-2009 school year and
25.8later.

25.9    Sec. 16. Minnesota Statutes 2006, section 122A.14, is amended by adding a
25.10subdivision to read:
25.11    Subd. 2a. Gifted and talented preparation. A university approved by the board to
25.12prepare candidates for administrative licensure must provide candidates, as part of the
25.13traditional and alternative preparation programs, the opportunity to acquire competency in
25.14administering gifted and talented services.
25.15EFFECTIVE DATE.This section is effective the day following final enactment
25.16and applies to candidates who enroll in either a traditional or an alternative preparation
25.17administrator licensure program after August 15, 2009.

25.18    Sec. 17. Minnesota Statutes 2006, section 122A.14, is amended by adding a
25.19subdivision to read:
25.20    Subd. 2c. Gifted and talented preparation; board review. (a) The board must
25.21periodically review and approve traditional and alternative preparation sequences for
25.22school administrators and the sequence of competencies in administering gifted and
25.23talented student programs and services.
25.24    (b) The board also may advise a university on developing and implementing
25.25continuing education programs focused on building competencies for administering gifted
25.26and talented programs and other gifted services.
25.27EFFECTIVE DATE.This section is effective the day following final enactment.

25.28    Sec. 18. Minnesota Statutes 2006, section 122A.18, is amended by adding a
25.29subdivision to read:
25.30    Subd. 10. Gifted and talented preparation; board review. (a) A college or
25.31university with a teacher preparation program approved by the board must provide teacher
26.1candidates with the opportunity to acquire competency in recognizing gifted students and
26.2in providing classroom instruction to gifted and talented students.
26.3    (b) The board must periodically review and approve traditional and alternative
26.4sequences for teacher candidates in recognizing gifted students and in providing classroom
26.5instruction to gifted and talented students.
26.6EFFECTIVE DATE.This section is effective the day following final enactment
26.7and applies to teacher candidates who enroll in either a traditional or an alternative
26.8preparation teacher licensure program after September 1, 2009.

26.9    Sec. 19. Minnesota Statutes 2006, section 122A.60, is amended to read:
26.10122A.60 STAFF DEVELOPMENT PROGRAM.
26.11    Subdivision 1. Staff development committee. A school board must use the revenue
26.12authorized in section 122A.61 for in-service education for programs under section
26.13120B.22, subdivision 2 , or for staff development plans under this section. The board
26.14must establish an advisory staff development committee to develop the plan, assist site
26.15professional development teams in developing a site plan consistent with the goals of the
26.16plan, and evaluate staff development efforts at the site level. A majority of the advisory
26.17committee and the site professional development team must be teachers representing
26.18various grade levels, subject areas, and special education. The advisory committee must
26.19also include nonteaching staff, parents, and administrators.
26.20    Subd. 1a. Effective staff development activities. (a) Staff development activities
26.21must be aligned with the district and school site staff development plans, based on student
26.22achievement data, focused on student learning goals, and used in the classroom setting.
26.23Activities must:
26.24    (1) focus on the school classroom and research-based strategies that improve student
26.25learning;
26.26    (2) provide opportunities for teachers to practice and improve their instructional
26.27skills over time;
26.28    (3) provide regular opportunities for teachers to use student data as part of their
26.29daily work to increase student achievement;
26.30    (4) enhance teacher content knowledge and instructional skills;
26.31    (5) align with state and local academic standards;
26.32    (6) provide job-embedded or integrated professional development opportunities
26.33during teacher contract day to build professional relationships, foster collaboration among
26.34principals and staff who provide instruction to identify instructional strategies to meet
27.1student learning goals, plan for instruction, practice new teaching strategies, review
27.2the results of implementing strategies, and provide opportunities for teacher-to-teacher
27.3coaching and mentoring; and
27.4    (7) align with the plan of the district or site for an alternative teacher professional
27.5pay system.
27.6Staff development activities may also include curriculum development and curriculum
27.7training programs, and activities that provide teachers and other members of site-based
27.8teams training to enhance team performance. The school district also may implement other
27.9staff development activities required by law and activities associated with professional
27.10teacher compensation models.
27.11    (b) Release time provided for teachers to supervise students on field trips and school
27.12activities, or independent tasks not associated with enhancing the teacher's knowledge
27.13and instructional skills, such as preparing report cards, calculating grades, or organizing
27.14classroom materials, may not be counted as staff development time that is financed with
27.15staff development reserved revenue under section 122A.61.
27.16    Subd. 2. Contents of the plan. The plan must be based on student achievement and
27.17include student learning goals, the staff development outcomes under subdivision 3, the
27.18means to achieve the outcomes, and procedures for evaluating progress at each school
27.19site toward meeting education outcomes.
27.20    Subd. 3. Staff development outcomes. The advisory staff development committee
27.21must adopt a staff development plan for increasing teacher effectiveness and improving
27.22student achievement. The plan must be consistent with education outcomes that the
27.23school board determines. The plan must include ongoing staff development activities that
27.24contribute toward continuous improvement in achievement of the following goals:
27.25    (1) improve student achievement of state and local education standards in all areas
27.26of the curriculum by using research-based best practices methods;
27.27    (2) effectively meet the needs of a diverse student population, including at-risk
27.28children, English language learners, children with disabilities, and gifted children, within
27.29the regular classroom and other settings;
27.30    (3) provide an inclusive curriculum for a racially, ethnically, and culturally diverse
27.31student population that is consistent with the state education diversity rule and the district's
27.32education diversity plan;
27.33    (4) improve staff collaboration and develop mentoring and peer coaching programs
27.34for teachers new to the school or district or in their first five years of teaching;
28.1    (5) effectively teach and model violence prevention policy and curriculum that
28.2address early intervention alternatives, issues of harassment, and teach nonviolent
28.3alternatives for conflict resolution; and
28.4    (6) provide teachers and other members of site-based management teams with
28.5appropriate management and financial management skills.
28.6    Subd. 4. Staff development report. (a) By October 15 1 of each year, the district
28.7and site staff development committees shall write and submit a report of staff development
28.8activities and expenditures for the previous year, in the form and manner determined by
28.9the commissioner. The report, signed by the district superintendent and staff development
28.10chair, must include assessment and evaluation data indicating progress toward district and
28.11site staff development goals based on teaching and learning outcomes, including the
28.12percentage of teachers and other staff involved in instruction who participate in effective
28.13staff development activities under subdivision 3.
28.14    (b) The report must break down expenditures for:
28.15    (1) curriculum development and curriculum training programs; and
28.16    (2) staff development training models, workshops, and conferences, and the cost of
28.17releasing teachers or providing substitute teachers for staff development purposes.
28.18    The report also must indicate whether the expenditures were incurred at the district
28.19level or the school site level, and whether the school site expenditures were made possible
28.20by grants to school sites that demonstrate exemplary use of allocated staff development
28.21revenue. These expenditures must be reported using the uniform financial and accounting
28.22and reporting standards.
28.23    (c) The commissioner shall report the staff development progress and expenditure
28.24data to the house of representatives and senate committees having jurisdiction over
28.25education by February 15 each year.

28.26    Sec. 20. Minnesota Statutes 2006, section 122A.61, subdivision 1, is amended to read:
28.27    Subdivision 1. Staff development revenue. A district is required to reserve
28.28an amount equal to at least two percent of the basic revenue under section 126C.10,
28.29subdivision 2 , for in-service education for programs under section 120B.22, subdivision 2,
28.30for with the primary purpose of creating and implementing district and school site staff
28.31development plans, including. Funds may also be used to support plans for challenging
28.32instructional activities and experiences under section 122A.60, and for curriculum
28.33development and programs, other in-service education, teachers' workshops, teacher
28.34conferences, the cost of substitute teachers staff development purposes, preservice and
28.35in-service education for special education professionals and paraprofessionals, and other
29.1related costs for staff development efforts. A district may annually waive the requirement
29.2to reserve their basic revenue under this section if a majority vote of the licensed teachers
29.3in the district and a majority vote of the school board agree to a resolution to waive the
29.4requirement. A district in statutory operating debt is exempt from reserving basic revenue
29.5according to this section. Districts may expend an additional amount of unreserved
29.6revenue for staff development based on their needs. With the exception of amounts
29.7reserved for staff development from revenues allocated directly to school sites, the board
29.8must initially allocate 50 percent of the reserved revenue to each school site in the district
29.9on a per teacher basis, which must be retained by the school site until used. The board may
29.10retain 25 percent to be used for district wide staff development efforts. The remaining
29.1125 percent of the revenue must be used to make grants to school sites for best practices
29.12methods. A grant may be used for any purpose authorized under section 120B.22,
29.13subdivision 2 , 122A.60, or for the costs of curriculum development and programs,
29.14other in-service education, teachers' workshops, teacher conferences, substitute teachers
29.15for staff development purposes, and other staff development efforts, and determined by
29.16the site professional development team. The site professional development team must
29.17demonstrate to the school board the extent to which staff at the site have met the outcomes
29.18of the program. The board may withhold a portion of initial allocation of revenue if the
29.19staff development outcomes are not being met.

29.20    Sec. 21. Minnesota Statutes 2006, section 122A.75, subdivision 1, is amended to read:
29.21    Subdivision 1. Services. An Administrators Academy is established. The academy
29.22shall provide at least the following services:
29.23    (1) an administrator assessment that results in an individual professional
29.24development plan;
29.25    (2) research and development assistance that provides current research and data
29.26of interest to administrators; and
29.27    (3) brokerage assistance to provide services and resources to help administrators
29.28with needs identified in their individual professional development plan; and
29.29    (4) the opportunity for administrators to acquire competency in administering gifted
29.30and talented services, consistent with section 122A.14, subdivision 2c.
29.31EFFECTIVE DATE.This section is effective the day following final enactment
29.32and applies to administrators participating in an administrators academy program after
29.33August 1, 2009.

30.1    Sec. 22. Minnesota Statutes 2007 Supplement, section 123B.143, subdivision 1,
30.2is amended to read:
30.3    Subdivision 1. Contract; duties. All districts maintaining a classified secondary
30.4school must employ a superintendent who shall be an ex officio nonvoting member of the
30.5school board. The authority for selection and employment of a superintendent must be
30.6vested in the board in all cases. An individual employed by a board as a superintendent
30.7shall have an initial employment contract for a period of time no longer than three years
30.8from the date of employment. Any subsequent employment contract must not exceed a
30.9period of three years. A board, at its discretion, may or may not renew an employment
30.10contract. A board must not, by action or inaction, extend the duration of an existing
30.11employment contract. Beginning 365 days prior to the expiration date of an existing
30.12employment contract, a board may negotiate and enter into a subsequent employment
30.13contract to take effect upon the expiration of the existing contract. A subsequent contract
30.14must be contingent upon the employee completing the terms of an existing contract. If a
30.15contract between a board and a superintendent is terminated prior to the date specified in
30.16the contract, the board may not enter into another superintendent contract with that same
30.17individual that has a term that extends beyond the date specified in the terminated contract.
30.18A board may terminate a superintendent during the term of an employment contract for any
30.19of the grounds specified in section 122A.40, subdivision 9 or 13. A superintendent shall
30.20not rely upon an employment contract with a board to assert any other continuing contract
30.21rights in the position of superintendent under section 122A.40. Notwithstanding the
30.22provisions of sections 122A.40, subdivision 10 or 11, 123A.32, 123A.75, or any other law
30.23to the contrary, no individual shall have a right to employment as a superintendent based
30.24on order of employment in any district. If two or more districts enter into an agreement for
30.25the purchase or sharing of the services of a superintendent, the contracting districts have
30.26the absolute right to select one of the individuals employed to serve as superintendent
30.27in one of the contracting districts and no individual has a right to employment as the
30.28superintendent to provide all or part of the services based on order of employment in a
30.29contracting district. The superintendent of a district shall perform the following:
30.30    (1) visit and supervise the schools in the district, report and make recommendations
30.31about their condition when advisable or on request by the board;
30.32    (2) recommend to the board employment and dismissal of teachers;
30.33    (3) superintend school grading practices and examinations for promotions;
30.34    (4) make reports required by the commissioner; and
30.35    (5) by January 10, submit an annual report to the commissioner in a manner
30.36prescribed by the commissioner, in consultation with school districts, identifying the
31.1expenditures that the district requires to ensure an 80 percent student passage rate on
31.2the MCA-IIs taken in the eighth grade, identifying the highest student passage rate the
31.3district expects it will be able to attain on the MCA-IIs by grade 12, and the amount of
31.4expenditures that the district requires to attain the targeted student passage rate; and
31.5    (6) perform other duties prescribed by the board.
31.6EFFECTIVE DATE.This section is effective the day following final enactment.

31.7    Sec. 23. Minnesota Statutes 2006, section 123B.36, subdivision 1, is amended to read:
31.8    Subdivision 1. School boards may require fees. (a) For purposes of this
31.9subdivision, "home school" means a home school as defined in sections 120A.22 and
31.10120A.24 with five or fewer students receiving instruction.
31.11    (b) A school board is authorized to require payment of fees in the following areas:
31.12    (1) in any program where the resultant product, in excess of minimum requirements
31.13and at the pupil's option, becomes the personal property of the pupil;
31.14    (2) admission fees or charges for extracurricular activities, where attendance
31.15is optional and where the admission fees or charges a student must pay to attend or
31.16participate in an extracurricular activity is the same for all students, regardless of whether
31.17the student is enrolled in a public or a home school;
31.18    (3) a security deposit for the return of materials, supplies, or equipment;
31.19    (4) personal physical education and athletic equipment and apparel, although any
31.20pupil may personally provide it if it meets reasonable requirements and standards relating
31.21to health and safety established by the board;
31.22    (5) items of personal use or products that a student has an option to purchase such as
31.23student publications, class rings, annuals, and graduation announcements;
31.24    (6) fees specifically permitted by any other statute, including but not limited to
31.25section 171.05, subdivision 2; provided (i) driver education fees do not exceed the actual
31.26cost to the school and school district of providing driver education, and (ii) the driver
31.27education courses are open to enrollment to persons between the ages of 15 and 18 who
31.28reside or attend school in the school district;
31.29    (7) field trips considered supplementary to a district educational program;
31.30    (8) any authorized voluntary student health and accident benefit plan;
31.31    (9) for the use of musical instruments owned or rented by the district, a reasonable
31.32rental fee not to exceed either the rental cost to the district or the annual depreciation plus
31.33the actual annual maintenance cost for each instrument;
31.34    (10) transportation of pupils to and from extracurricular activities conducted at
31.35locations other than school, where attendance is optional, and transportation of charter
32.1school students participating in extracurricular activities in their resident district under
32.2section 123B.49, subdivision 4 , paragraph (a), which must be charged to the charter school;
32.3    (11) transportation to and from school of pupils living within two miles from school
32.4and all other transportation services not required by law. If a district charges fees for
32.5transportation of pupils, it must establish guidelines for that transportation to ensure that
32.6no pupil is denied transportation solely because of inability to pay;
32.7    (12) motorcycle classroom education courses conducted outside of regular school
32.8hours; provided the charge must not exceed the actual cost of these courses to the school
32.9district;
32.10    (13) transportation to and from postsecondary institutions for pupils enrolled under
32.11the postsecondary enrollment options program under section 123B.88, subdivision 22.
32.12Fees collected for this service must be reasonable and must be used to reduce the cost
32.13of operating the route. Families who qualify for mileage reimbursement under section
32.14124D.09, subdivision 22 , may use their state mileage reimbursement to pay this fee. If no
32.15fee is charged, districts must allocate costs based on the number of pupils riding the route.
32.16EFFECTIVE DATE.This section is effective for the 2008-2009 school year and
32.17later.

32.18    Sec. 24. Minnesota Statutes 2006, section 123B.49, subdivision 4, is amended to read:
32.19    Subd. 4. Board control of extracurricular activities. (a) The board may take
32.20charge of and control all extracurricular activities of the teachers and children of the public
32.21schools in the district. Extracurricular activities means all direct and personal services for
32.22pupils for their enjoyment that are managed and operated under the guidance of an adult
32.23or staff member. The board shall allow all resident pupils receiving instruction in a home
32.24school as defined in section 123B.36, subdivision 1, paragraph (a), and all resident pupils
32.25receiving instruction in a charter school as defined in section 124D.10 to be eligible to
32.26fully participate in extracurricular activities on the same basis as public school students.
32.27enrolled in the district's schools. A charter school student must give the enrolling charter
32.28school and the resident school district at least a 30-day notice of the student's intent to
32.29participate in an extracurricular activity in the resident district. Before a charter school
32.30student begins participating in an extracurricular activity in the resident district, the
32.31charter school must agree in writing to pay the amount attributable to that student that the
32.32district may charge to the charter school under paragraph (f). A charter school student
32.33is not eligible to participate in an extracurricular activity in the resident district if that
32.34extracurricular activity is offered by the enrolling charter school or the extracurricular
32.35activity is not controlled by the high school league under chapter 128C. Charter school
33.1students participating in extracurricular activities must meet the academic and student
33.2conduct requirements of the resident district. The charter school must:
33.3    (1) collect the same information that a district collects on a student's eligibility to
33.4participate in an extracurricular activity;
33.5    (2) transmit that information to the district at least ten days before a student begins
33.6to participate in the extracurricular activity; and
33.7    (3) immediately transmit to the district any additional information affecting the
33.8student's eligibility.
33.9    (b) Extracurricular activities have all of the following characteristics:
33.10    (1) they are not offered for school credit nor required for graduation;
33.11    (2) they are generally conducted outside school hours, or if partly during school
33.12hours, at times agreed by the participants, and approved by school authorities;
33.13    (3) the content of the activities is determined primarily by the pupil participants
33.14under the guidance of a staff member or other adult.
33.15    (c) If the board does not take charge of and control extracurricular activities, these
33.16activities shall be self-sustaining with all expenses, except direct salary costs and indirect
33.17costs of the use of school facilities, met by dues, admissions, or other student fund-raising
33.18events. The general fund must reflect only those salaries directly related to and readily
33.19identified with the activity and paid by public funds. Other revenues and expenditures for
33.20extra curricular activities must be recorded according to the Manual for Activity Fund
33.21Accounting. Extracurricular activities not under board control must have an annual
33.22financial audit and must also be audited annually for compliance with this section.
33.23    (d) If the board takes charge of and controls extracurricular activities, any or all
33.24costs of these activities may be provided from school revenues and all revenues and
33.25expenditures for these activities shall be recorded in the same manner as other revenues
33.26and expenditures of the district.
33.27    (e) If the board takes charge of and controls extracurricular activities, the teachers or
33.28pupils in the district must not participate in such activity, nor shall the school name or any
33.29allied name be used in connection therewith, except by consent and direction of the board.
33.30    (f) School districts may charge charter schools for each student for each activity the
33.31lesser of one-half of the statewide average per pupil expenditure on student activities
33.32and athletics as measured by the most recent edition of School District Profiles posted
33.33to the Department of Education's Web site, or their proportional share of the amount of
33.34the extracurricular activities that are not covered by student fees under section 123B.36,
33.35subdivision 1 , ticket revenues, fund-raising efforts, sponsorships, or other income
33.36generated for those activities for which the charter school is charged. A district may charge
34.1charter school students the same fees it charges enrolled students to participate in an
34.2extracurricular activity. All charges to a charter school and charter school students must be
34.3paid when the charter school students are selected to participate in the activity. A district is
34.4not required to provide transportation from the charter school to the resident district for a
34.5charter school student who participates in an extracurricular activity in the resident district.
34.6EFFECTIVE DATE.This section is effective for the 2008-2009 school year and
34.7later.

34.8    Sec. 25. Minnesota Statutes 2006, section 123B.51, is amended by adding a
34.9subdivision to read:
34.10    Subd. 5a. Temporary closing. A school district that proposes to temporarily close a
34.11schoolhouse or that intends to lease the facility to another entity for use as a schoolhouse
34.12for three or fewer years is not subject to subdivision 5 if the school board holds a public
34.13meeting and allows public comment on the schoolhouse's future.
34.14EFFECTIVE DATE.This section is effective the day following final enactment.

34.15    Sec. 26. Minnesota Statutes 2006, section 123B.57, subdivision 6, is amended to read:
34.16    Subd. 6. Uses of health and safety revenue. (a) Health and safety revenue may
34.17be used only for approved expenditures necessary to correct fire and life safety hazards,
34.18or for the removal or encapsulation of asbestos from school buildings or property
34.19owned or being acquired by the district, asbestos-related repairs, cleanup and disposal
34.20of polychlorinated biphenyls found in school buildings or property owned or being
34.21acquired by the district, or the cleanup, removal, disposal, and repairs related to storing
34.22heating fuel or transportation fuels such as alcohol, gasoline, fuel oil, and special fuel,
34.23as defined in section 296A.01, Minnesota occupational safety and health administration
34.24regulated facility and equipment hazards, indoor air quality mold abatement, upgrades
34.25or replacement of mechanical ventilation systems to meet American Society of Heating,
34.26Refrigerating and Air Conditioning Engineers standards and State Mechanical Code,
34.27Department of Health Food Code and swimming pool hazards excluding depth correction,
34.28and health, safety, and environmental management. Testing and calibration activities are
34.29permitted for existing mechanical ventilation systems at intervals no less than every five
34.30years. Health and safety revenue must not be used to finance a lease purchase agreement,
34.31installment purchase agreement, or other deferred payments agreement. Health and safety
34.32revenue must not be used for the construction of new facilities or the purchase of portable
34.33classrooms, for interest or other financing expenses, or for energy efficiency projects
35.1under section 123B.65. The revenue may not be used for a building or property or part
35.2of a building or property used for postsecondary instruction or administration or for a
35.3purpose unrelated to elementary and secondary education.
35.4    (b) Notwithstanding paragraph (a), health and safety revenue must not be used for
35.5replacement of building materials or facilities including roof, walls, windows, internal
35.6fixtures and flooring, nonhealth and safety costs associated with demolition of facilities,
35.7structural repair or replacement of facilities due to unsafe conditions, violence prevention
35.8and facility security, ergonomics, building and heating, ventilating and air conditioning
35.9supplies, maintenance, and cleaning activities. All assessments, investigations,
35.10inventories, and support equipment not leading to the engineering or construction of a
35.11project shall be included in the health, safety, and environmental management costs in
35.12subdivision 8, paragraph (a).
35.13    (c) Health and safety revenue may be used for basic first aid training, focusing on
35.14CPR and the use of automatic external defibrillators.
35.15    (d) Health and safety revenue may be used to contract for a site-specific evaluation
35.16and impact report on the health and environmental effects of the use or installation of
35.17synthetic turf on an athletic playing field on school property.

35.18    Sec. 27. Minnesota Statutes 2006, section 123B.71, subdivision 9, is amended to read:
35.19    Subd. 9. Information required. A school board proposing to construct a facility
35.20described in subdivision 8 shall submit to the commissioner a proposal containing
35.21information including at least the following:
35.22    (1) the geographic area and population to be served, preschool through grade 12
35.23student enrollments for the past five years, and student enrollment projections for the
35.24next five years;
35.25    (2) a list of existing facilities by year constructed, their uses, and an assessment of
35.26the extent to which alternate facilities are available within the school district boundaries
35.27and in adjacent school districts;
35.28    (3) a list of the specific deficiencies of the facility that demonstrate the need for a
35.29new or renovated facility to be provided, and a list of the specific benefits that the new
35.30or renovated facility will provide to the students, teachers, and community users served
35.31by the facility;
35.32    (4) the relationship of the project to any priorities established by the school district,
35.33educational cooperatives that provide support services, or other public bodies in the
35.34service area;
36.1    (5) a specification of how the project will increase community use of the facility
36.2and whether and how the project will increase collaboration with other governmental or
36.3nonprofit entities;
36.4    (6) a description of the project, including the specification of site and outdoor space
36.5acreage and square footage allocations for classrooms, laboratories, and support spaces;
36.6estimated expenditures for the major portions of the project; and the dates the project will
36.7begin and be completed;
36.8    (7) a specification of the source of financing the project; the scheduled date for
36.9a bond issue or school board action; a schedule of payments, including debt service
36.10equalization aid; and the effect of a bond issue on local property taxes by the property
36.11class and valuation;
36.12    (8) an analysis of how the proposed new or remodeled facility will affect school
36.13district operational or administrative staffing costs, and how the district's operating budget
36.14will cover any increased operational or administrative staffing costs;
36.15    (9) a description of the consultation with local or state road and transportation
36.16officials on school site access and safety issues, and the ways that the project will address
36.17those issues;
36.18    (10) a description of how indoor air quality issues have been considered and a
36.19certification that the architects and engineers designing the facility will have professional
36.20liability insurance;
36.21    (11) as required under section 123B.72, for buildings coming into service after
36.22July 1, 2002, a certification that the plans and designs for the extensively renovated or
36.23new facility's heating, ventilation, and air conditioning systems will meet or exceed
36.24code standards; will provide for the monitoring of outdoor airflow and total airflow of
36.25ventilation systems; and will provide an indoor air quality filtration system that meets
36.26ASHRAE standard 52.1;
36.27    (12) a specification of any desegregation requirements that cannot be met by any
36.28other reasonable means;
36.29    (13) a specification, if applicable, of how the facility will utilize environmentally
36.30sustainable school facility design concepts; and
36.31    (14) a description of how the architects and engineers have considered the American
36.32National Standards Institute Acoustical Performance Criteria, Design Requirements
36.33and Guidelines for Schools of the maximum background noise level and reverberation
36.34times; and
36.35    (15) for projects that include installation of synthetic turf on an athletic playing
36.36field, a site-specific evaluation and impact report on the health and environmental effects
37.1of the use or installation of synthetic turf on an athletic playing field on school property.
37.2For purposes of this section, "synthetic turf" means any materials or compositions that
37.3include crumb rubber used in the place of grass to surface parks, outdoor athletic playing
37.4fields, indoor athletic facilities, or other venues; and "crumb rubber" means ground rubber
37.5derived from waste tires, which contain one or more of the following: acetone, arsenic,
37.6cadmium, chromium, lead, vanadium, or zinc.
37.7EFFECTIVE DATE.This section is effective the day following final enactment.

37.8    Sec. 28. Minnesota Statutes 2007 Supplement, section 124D.095, subdivision 4,
37.9is amended to read:
37.10    Subd. 4. Online learning parameters. (a) An online learning student must receive
37.11academic credit for completing the requirements of an online learning course or program.
37.12Secondary credits granted to an online learning student must be counted toward the
37.13graduation and credit requirements of the enrolling district. An online learning provider
37.14must make available to the enrolling district the course syllabus, standard alignment,
37.15content outline, assessment requirements, and contact information for supplemental online
37.16courses taken by students in the enrolling district. The enrolling district must apply the
37.17same graduation requirements to all students, including online learning students, and
37.18must continue to provide nonacademic services to online learning students. If a student
37.19completes an online learning course or program that meets or exceeds a graduation
37.20standard or grade progression requirement at the enrolling district, that standard or
37.21requirement is met. The enrolling district must use the same criteria for accepting online
37.22learning credits or courses as it does for accepting credits or courses for transfer students
37.23under section 124D.03, subdivision 9. The enrolling district may reduce the course
37.24schedule of an online learning student in proportion to the number of online learning
37.25courses the student takes from an online learning provider that is not the enrolling district.
37.26    (b) An online learning student may:
37.27    (1) enroll in supplemental online learning courses during a single school year to a
37.28maximum of 50 percent of the student's full schedule of courses per term. A student may
37.29exceed the supplemental online learning registration limit if the enrolling district grants
37.30permission for supplemental online learning enrollment above the limit, or if an agreement
37.31is made between the enrolling district and the online learning provider for instructional
37.32services;
37.33    (2) complete course work at a grade level that is different from the student's current
37.34grade level; and
38.1    (3) enroll in additional courses with the online learning provider under a separate
38.2agreement that includes terms for payment of any tuition or course fees.
38.3    (c) An online learning student has the same access to the computer hardware and
38.4education software available in a school as all other students in the enrolling district. An
38.5online learning provider must assist an online learning student whose family qualifies
38.6for the education tax credit under section 290.0674 to acquire computer hardware and
38.7educational software for online learning purposes.
38.8    (d) An enrolling district may offer online learning to its enrolled students.
38.9Such online learning does not generate online learning funds under this section.
38.10Notwithstanding paragraph (e), an enrolling district that offers online learning only to its
38.11enrolled students is not subject to the reporting requirements or review criteria under
38.12subdivision 7, unless the enrolling district is a full-time online provider. A teacher with a
38.13Minnesota license must assemble and deliver instruction to enrolled students receiving
38.14online learning from an enrolling district. The delivery of instruction occurs when the
38.15student interacts with the computer or the teacher and receives ongoing assistance and
38.16assessment of learning. The instruction may include curriculum developed by persons
38.17other than a teacher with a Minnesota license.
38.18    (e) An online learning provider that is not the enrolling district is subject to
38.19the reporting requirements and review criteria under subdivision 7. A teacher with a
38.20Minnesota license must assemble and deliver instruction to online learning students. The
38.21delivery of instruction occurs when the student interacts with the computer or the teacher
38.22and receives ongoing assistance and assessment of learning. The instruction may include
38.23curriculum developed by persons other than a teacher with a Minnesota license. Unless
38.24the commissioner grants a waiver, a teacher providing online learning instruction must not
38.25instruct more than 40 students in any one online learning course or program.
38.26    (f) To enroll in more than 50 percent of the student's full schedule of courses per term
38.27in online learning, the student must qualify to exceed the supplemental online learning
38.28registration limit under paragraph (b) or apply for enrollment to an approved full-time
38.29online learning program following appropriate procedures in subdivision 3, paragraph (a).
38.30Full-time online learning students may enroll in classes at a local school per contract for
38.31instructional services between the online learning provider and the school district.

38.32    Sec. 29. Minnesota Statutes 2006, section 124D.10, subdivision 2a, is amended to read:
38.33    Subd. 2a. Charter School Advisory Council. (a) A Charter School Advisory
38.34Council is established under section 15.059 except that the term for each council member
38.35shall be three years. The advisory council is composed of seven members from throughout
39.1the state who have demonstrated experience with or interest in charter schools. The
39.2members of the council shall be appointed by the commissioner. The advisory council
39.3shall bring to the attention of the commissioner any matters related to charter schools
39.4that the council deems necessary and shall:
39.5    (1) encourage school boards to make full use of charter school opportunities;
39.6    (2) encourage the creation of innovative schools;
39.7    (3) provide leadership and support for charter school sponsors to increase the
39.8innovation in and the effectiveness, accountability, and fiscal soundness of charter schools;
39.9    (4) serve an ombudsman function in facilitating the operations of new and existing
39.10charter schools;
39.11    (5) promote timely financial management training for newly elected members of
39.12a charter school board of directors and ongoing training for other members of a charter
39.13school board of directors; and
39.14    (6) facilitate compliance with auditing and other reporting requirements. The
39.15advisory council shall refer all its proposals to the commissioner who shall provide time
39.16for reports from the council.
39.17    (b) The Charter School Advisory Council under this subdivision expires June 30,
39.182007 does not expire and the expiration date provided in section 15.059, subdivision
39.195, does not apply to this section.
39.20EFFECTIVE DATE.This section is effective retroactively from June 30, 2007.

39.21    Sec. 30. Minnesota Statutes 2007 Supplement, section 124D.10, subdivision 4, is
39.22amended to read:
39.23    Subd. 4. Formation of school. (a) A sponsor may authorize one or more licensed
39.24teachers under section 122A.18, subdivision 1, to operate a charter school subject to
39.25approval by the commissioner. A board must vote on charter school application for
39.26sponsorship no later than 90 days after receiving the application. The school must be
39.27organized and operated as a cooperative under chapter 308A or nonprofit corporation
39.28under chapter 317A and the provisions under the applicable chapter shall apply to the
39.29school except as provided in this section. Notwithstanding sections 465.717 and 465.719,
39.30a school district may create a corporation for the purpose of creating a charter school.
39.31    (b) Before the operators may form and operate a school, the sponsor must file an
39.32affidavit with the commissioner stating its intent to authorize a charter school. The
39.33affidavit must demonstrate the sponsor's ability to fulfill the responsibilities of a sponsor
39.34and state the terms and conditions under which the sponsor would authorize a charter
39.35school and how the sponsor intends to oversee the fiscal and student performance of the
40.1charter school and to comply with the terms of the written contract between the sponsor
40.2and the charter school board of directors under subdivision 6 in the form and manner
40.3prescribed by the commissioner. The sponsor must submit an affidavit to the commissioner
40.4for each charter school it proposes to authorize. The commissioner must approve or
40.5disapprove the sponsor's proposed authorization within 90 days of receipt of the affidavit.
40.6Failure to obtain commissioner approval precludes a sponsor from authorizing the charter
40.7school that was the subject of the affidavit.
40.8    (c) The operators authorized to organize and operate a school, before entering into a
40.9contract or other agreement for professional or other services, goods, or facilities, must
40.10incorporate as a cooperative under chapter 308A or as a nonprofit corporation under
40.11chapter 317A and must establish a board of directors composed of at least five nonrelated
40.12members until a timely election for members of the charter school board of directors is
40.13held according to the school's articles and bylaws. A charter school board of directors
40.14must be composed of at least five members. Any staff members who are employed at the
40.15school, including teachers providing instruction under a contract with a cooperative, and
40.16all parents of children enrolled in the school may are eligible to participate in the election
40.17for members of the school's board of directors. Licensed teachers employed at the school,
40.18including teachers providing instruction under a contract with a cooperative, must be a
40.19majority of the members of the board of directors before the school completes its third
40.20year of operation, unless the commissioner waives the requirement for a majority of
40.21licensed teachers on the board. Board of director meetings must comply with chapter 13D.
40.22    (d) The granting or renewal of a charter by a sponsoring entity must not be
40.23conditioned upon the bargaining unit status of the employees of the school.
40.24    (e) The granting or renewal of a charter school by a sponsor must not be contingent
40.25on the charter school being required to contract, lease, or purchase services from the
40.26sponsor. A sponsor is prohibited from entering into a contract to provide management or
40.27financial services for a school that it is authorized to sponsor.
40.28    (e) (f) A sponsor may authorize the operators of a charter school to expand the
40.29operation of the charter school to additional sites or to add additional grades at the school
40.30beyond those described in the sponsor's application as approved by the commissioner only
40.31after submitting a supplemental application to the commissioner in a form and manner
40.32prescribed by the commissioner. The supplemental application must provide evidence that:
40.33    (1) the expansion of the charter school is supported by need and projected enrollment;
40.34    (2) the charter school is fiscally sound;
40.35    (3) the sponsor supports the expansion; and
41.1    (4) the building of the additional site meets all health and safety requirements to
41.2be eligible for lease aid.
41.3    (f) (g) The commissioner annually must provide timely financial management
41.4training to newly elected members of a charter school board of directors and ongoing
41.5training to other members of a charter school board of directors. Training must address
41.6ways to:
41.7    (1) proactively assess opportunities for a charter school to maximize all available
41.8revenue sources;
41.9    (2) establish and maintain complete, auditable records for the charter school;
41.10    (3) establish proper filing techniques;
41.11    (4) document formal actions of the charter school, including meetings of the charter
41.12school board of directors;
41.13    (5) properly manage and retain charter school and student records;
41.14    (6) comply with state and federal payroll record-keeping requirements; and
41.15    (7) address other similar factors that facilitate establishing and maintaining complete
41.16records on the charter school's operations.

41.17    Sec. 31. Minnesota Statutes 2006, section 124D.10, subdivision 4a, is amended to read:
41.18    Subd. 4a. Conflict of interest. (a) A member of a charter school board of directors
41.19is prohibited from serving as a member of the board of directors or as an employee or agent
41.20of or a contractor with a for-profit entity with whom the charter school contracts, directly
41.21or indirectly, for professional services, goods, or facilities. A violation of this prohibition
41.22renders a contract voidable at the option of the commissioner. The commissioner may
41.23reduce a charter school's state aid under section 127A.42 if the charter school board fails
41.24to correct a violation under this subdivision in a timely manner. A member of a charter
41.25school board of directors who violates this prohibition shall be individually liable to the
41.26charter school for any damage caused by the violation.
41.27    (b) An individual may serve as a member of the board of directors if no conflict of
41.28interest under paragraph (a) exists.
41.29    (c) A member of a charter school board of directors that serves as a member of the
41.30board of directors or as an employee or agent of or a contractor with a nonprofit entity
41.31with whom the charter school contracts, directly or indirectly, for professional services,
41.32goods, or facilities, must disclose all potential conflicts to the commissioner. A violation
41.33of this requirement makes a contract voidable at the option of the commissioner. The
41.34commissioner may reduce a charter school's aid under section 127A.42 if the charter
41.35school fails to correct a violation under this subdivision in a timely manner.
42.1    (d) The conflict of interest provisions under this subdivision do not apply to
42.2compensation paid to a teacher employed by the charter school who also serves as a
42.3member of the board of directors.
42.4    (e) The conflict of interest provisions under this subdivision do not apply to a teacher
42.5who provides services to a charter school through a cooperative formed under chapter
42.6308A when the teacher also serves on the charter school board of directors.

42.7    Sec. 32. Minnesota Statutes 2006, section 124D.10, subdivision 6, is amended to read:
42.8    Subd. 6. Contract. The sponsor's authorization for a charter school must be in the
42.9form of a written contract signed by the sponsor and the board of directors of the charter
42.10school. The contract must be completed within 90 days of the commissioner's approval
42.11of the sponsor's proposed authorization. The contract for a charter school must be in
42.12writing and contain at least the following:
42.13    (1) a description of a program that carries out one or more of the purposes in
42.14subdivision 1;
42.15    (2) specific outcomes pupils are to achieve under subdivision 10;
42.16    (3) admission policies and procedures;
42.17    (4) management and administration of the school;
42.18    (5) requirements and procedures for program and financial audits;
42.19    (6) how the school will comply with subdivisions 8, 13, 16, and 23;
42.20    (7) assumption of liability by the charter school;
42.21    (8) types and amounts of insurance coverage to be obtained by the charter school;
42.22    (9) the term of the contract, which may be up to three years;
42.23    (10) if how the board of directors or the operators of the charter school will provide
42.24special instruction and services for children with a disability under sections 125A.03
42.25to 125A.24, and 125A.65, a description of the financial parameters within which the
42.26charter school will operate to provide the special instruction and services to children
42.27with a disability; and
42.28    (11) the process and criteria the sponsor intends to use to monitor and evaluate the
42.29fiscal and student performance of the charter school, consistent with subdivision 15.

42.30    Sec. 33. Minnesota Statutes 2006, section 124D.10, subdivision 6a, is amended to read:
42.31    Subd. 6a. Audit report. (a) The charter school must submit an audit report to the
42.32commissioner by December 31 each year.
42.33    (b) The charter school, with the assistance of the auditor conducting the audit, must
42.34include with the report a copy of all charter school agreements for corporate management
43.1services. If the entity that provides the professional services to the charter school is
43.2exempt from taxation under section 501 of the Internal Revenue Code of 1986, that entity
43.3must file with the commissioner by February 15 a copy of the annual return required under
43.4section 6033 of the Internal Revenue Code of 1986.
43.5    (c) If the commissioner receives as part of the an audit report a management letter
43.6indicating that a material weakness exists in the financial reporting systems of a charter
43.7school, the charter school must submit a written report to the commissioner explaining
43.8how the material weakness will be resolved.
43.9    (d) Upon the request of an individual, the charter school must make available in a
43.10timely fashion the minutes of meetings of members, the board of directors, and committees
43.11having any of the authority of the board of directors, and statements showing the financial
43.12result of all operations and transactions affecting income and surplus during the school's
43.13last annual accounting period and a balance sheet containing a summary of its assets and
43.14liabilities as of the closing date of the accounting period.

43.15    Sec. 34. Minnesota Statutes 2006, section 124D.10, subdivision 7, is amended to read:
43.16    Subd. 7. Public status; exemption from statutes and rules. A charter school is a
43.17public school and is part of the state's system of public education. Except as provided in
43.18this section, a charter school is exempt from all statutes and rules applicable to a school,
43.19a board, or a district, although it may elect to comply with one or more provisions of
43.20statutes or rules. A charter school is exempt from all statutes and rules applicable to
43.21a school, school board, or school district unless a statute or rule is made specifically
43.22applicable to a charter school.

43.23    Sec. 35. Minnesota Statutes 2006, section 124D.10, subdivision 8, is amended to read:
43.24    Subd. 8. State and local requirements. (a) A charter school shall meet all
43.25applicable federal, state, and local health and safety requirements applicable to school
43.26districts.
43.27    (b) A school sponsored by a school board may be located in any district, unless the
43.28school board of the district of the proposed location disapproves by written resolution.
43.29    (c) A charter school must be nonsectarian in its programs, admission policies,
43.30employment practices, and all other operations. A sponsor may not authorize a charter
43.31school or program that is affiliated with a nonpublic sectarian school or a religious
43.32institution. A charter school must not modify any charter school space or otherwise
43.33accommodate the practices of any one religious group unless the charter school also
44.1accommodates any other religious group that requests a modification of the charter school
44.2space or other accommodation of its religious practices.
44.3    (d) Charter schools must not be used as a method of providing education or
44.4generating revenue for students who are being home-schooled.
44.5    (e) The primary focus of a charter school must be to provide a comprehensive
44.6program of instruction for at least one grade or age group from five through 18 years
44.7of age. Instruction may be provided to people younger than five years and older than
44.818 years of age.
44.9    (f) A charter school may not charge tuition.
44.10    (g) A charter school is subject to and must comply with chapter 363A and section
44.11121A.04 .
44.12    (h) A charter school is subject to and must comply with the Pupil Fair Dismissal
44.13Act, sections 121A.40 to 121A.56, and the Minnesota Public School Fee Law, sections
44.14123B.34 to 123B.39.
44.15    (i) A charter school is subject to the same financial audits, audit procedures, and
44.16audit requirements as a district. Audits must be conducted in compliance with generally
44.17accepted governmental auditing standards, the Federal Single Audit Act, if applicable,
44.18and section 6.65. A charter school is subject to and must comply with sections 15.054;
44.19118A.01 ; 118A.02; 118A.03; 118A.04; 118A.05; 118A.06; 123B.52, subdivision 5;
44.20471.38 ; 471.391; 471.392; 471.425; 471.87; 471.88, subdivisions 1, 2, 3, 4, 5, 6, 12, 13,
44.21and 15 ; 471.881; and 471.89. The audit must comply with the requirements of sections
44.22123B.75 to 123B.83, except to the extent deviations are necessary because of the program
44.23at the school. Deviations must be approved by the commissioner. The Department
44.24of Education, state auditor, or legislative auditor may conduct financial, program, or
44.25compliance audits. A charter school determined to be in statutory operating debt under
44.26sections 123B.81 to 123B.83 must submit a plan under section 123B.81, subdivision 4.
44.27    (j) A charter school is a district for the purposes of tort liability under chapter 466.
44.28    (k) A charter school must comply with sections 13.32; 120A.22, subdivision 7;
44.29121A.75 ; and 260B.171, subdivisions 3 and 5.
44.30    (l) A charter school is subject to the Pledge of Allegiance requirement under section
44.31121A.11, subdivision 3 .
44.32    (m) A charter school is subject to sections 123B.36 , subdivision 1, paragraph
44.33(b), clause (10), and 123B.49, subdivision 4, paragraphs (a) and (f), when its students
44.34participate in extracurricular activities in their resident district.
44.35EFFECTIVE DATE.This section is effective for the 2009-2009 school year and
44.36later.

45.1    Sec. 36. Minnesota Statutes 2006, section 124D.10, subdivision 9, is amended to read:
45.2    Subd. 9. Admission requirements. A charter school may limit admission to:
45.3    (1) pupils within an age group or grade level;
45.4    (2) people who are eligible to participate in the graduation incentives program
45.5under section 124D.68; or
45.6    (3) residents of a specific geographic area where the percentage of the population
45.7of non-Caucasian people of that area is greater than the percentage of the non-Caucasian
45.8population in the congressional district in which the geographic area is located, and as
45.9long as the school reflects the racial and ethnic diversity of the specific area.
45.10    A charter school shall enroll an eligible pupil who submits a timely application,
45.11unless the number of applications exceeds the capacity of a program, class, grade level, or
45.12building. In this case, pupils must be accepted by lot. If a charter school is the only school
45.13located in a town municipality serving pupils within a particular grade level, then pupils
45.14that are residents of the town must be given preference for enrollment before accepting
45.15pupils by lot. If a pupil lives within two miles of a charter school and the next closest
45.16public school is more than five miles away, the charter school must give those pupils
45.17preference for enrollment before accepting other pupils by lot.
45.18    A charter school shall give preference for enrollment to a sibling of an enrolled pupil
45.19and to a foster child of that pupil's parents before accepting other pupils by lot.
45.20    A charter school may not limit admission to pupils on the basis of intellectual ability,
45.21measures of achievement or aptitude, or athletic ability.
45.22EFFECTIVE DATE.This section is effective the day following final enactment
45.23and applies to all applications for enrollment in the 2008-2009 school year and later.

45.24    Sec. 37. Minnesota Statutes 2006, section 124D.10, subdivision 23, is amended to read:
45.25    Subd. 23. Causes for nonrenewal or termination of charter school contract.
45.26    (a) The duration of the contract with a sponsor must be for the term contained in the
45.27contract according to subdivision 6. The sponsor may or may not renew a contract at
45.28the end of the term for any ground listed in paragraph (b). A sponsor may unilaterally
45.29terminate a contract during the term of the contract for any ground listed in paragraph (b).
45.30At least 60 days before not renewing or terminating a contract, the sponsor shall notify the
45.31board of directors of the charter school of the proposed action in writing by registered
45.32mail. The notice shall state the grounds for the proposed action in reasonable detail and
45.33that the charter school's board of directors may request in writing an informal hearing
45.34before the sponsor within 14 days of receiving notice of nonrenewal or termination of
45.35the contract. Failure by the board of directors to make a written request for a hearing
46.1within the 14-day period shall be treated as acquiescence to the proposed action. Upon
46.2receiving a timely written request for a hearing, the sponsor shall give reasonable notice
46.3to the charter school's board of directors of the hearing date. The sponsor shall conduct
46.4an informal hearing before taking final action. The sponsor shall take final action to
46.5renew or not renew a contract by the last day of classes in the school year no later than 15
46.6days before the date the sponsor terminates the contract or the end date specified in the
46.7contract. If the sponsor is a local board, the school's board of directors may appeal the
46.8sponsor's decision to the commissioner.
46.9    (b) A contract may be terminated or not renewed upon any of the following grounds:
46.10    (1) failure to meet the requirements for pupil performance contained in the contract;
46.11    (2) failure to meet generally accepted standards of fiscal management;
46.12    (3) violations of law; or
46.13    (4) other good cause shown.
46.14    If a contract is terminated or not renewed under this paragraph, the school must be
46.15dissolved according to the applicable provisions of chapter 308A or 317A, except when
46.16the commissioner approves the decision of a different eligible sponsor to authorize the
46.17charter school.
46.18    (c) If at the end of a contract term, either the sponsor or and the charter school
46.19board of directors wants mutually agree to voluntarily terminate the contract, a change
46.20in sponsors is allowed if the commissioner approves the decision of a different eligible
46.21sponsor to authorize the charter school. The party intending to terminate the contract must
46.22notify the other party and the commissioner of its intent at least 90 days before the date
46.23on which the contract ends. Both parties jointly must submit to the commissioner their
46.24written intent to terminate the contract. The commissioner must determine whether the
46.25charter school and the prospective new sponsor can clearly identify and effectively resolve
46.26those circumstances causing the previous sponsor and the charter school to terminate the
46.27contract before the commissioner determines whether to grant the change of sponsor. The
46.28sponsor that is a party to the existing contract at least must inform the approved different
46.29eligible sponsor about the fiscal and student performance of the school. If no different
46.30eligible sponsor is approved, the school must be dissolved according to applicable law and
46.31the terms of the contract.
46.32    (d) The commissioner, after providing reasonable notice to the board of directors
46.33of a charter school and the existing sponsor, and after providing an opportunity for a
46.34public hearing, may terminate the existing sponsorial relationship if the charter school
46.35has a history of:
47.1    (1) sustained failure to meet the requirements for pupil performance contained
47.2in the contract;
47.3    (1) (2) financial mismanagement; or
47.4    (2) (3) repeated violations of the law; or
47.5    (4) other good cause shown.

47.6    Sec. 38. Minnesota Statutes 2007 Supplement, section 124D.10, subdivision 23a,
47.7is amended to read:
47.8    Subd. 23a. Related party lease costs. (a) A charter school is prohibited from
47.9entering a lease of real property with a related party as defined in subdivision 26
47.10this subdivision, unless the lessor is a nonprofit corporation under chapter 317A or a
47.11cooperative under chapter 308A, and the lease cost is reasonable under section 124D.11,
47.12subdivision 4 , clause (1).
47.13    (b) For purposes of this subdivision:
47.14    (1) "related party" means an affiliate or close relative of the other party in question,
47.15an affiliate of a close relative, or a close relative of an affiliate;
47.16    (2) "affiliate" means a person that directly or indirectly, through one or more
47.17intermediaries, controls, is controlled by, or is under common control with another person;
47.18    (3) "close relative" means an individual whose relationship by blood, marriage, or
47.19adoption to another individual is no more remote than first cousin;
47.20    (4) "person" means an individual or entity of any kind; and
47.21    (5) "control" means the ability to affect the management, operations, or policies of a
47.22person, whether through ownership of voting securities, by contract, or otherwise.
47.23    (b) (c) A lease of real property to be used for a charter school, not excluded in
47.24paragraph (a), must contain the following statement: "This lease is subject to Minnesota
47.25Statutes, section 124D.10, subdivision 23a."
47.26    (c) (d) If a charter school enters into as lessee a lease with a related party and the
47.27charter school subsequently closes, the commissioner has the right to recover from the
47.28lessor any lease payments in excess of those that are reasonable under section 124D.11,
47.29subdivision 4 , clause (1).

47.30    Sec. 39. [124D.805] COMMITTEE ON AMERICAN INDIAN EDUCATION
47.31PROGRAMS.
47.32    Subdivision 1. Establishment. The commissioner of education shall establish an
47.33American Indian education committee. Members appointed by the commissioner must
47.34include representatives of tribal bodies, community groups, parents of children eligible
48.1to be served by the programs, American Indian administrators and teachers, persons
48.2experienced in the training of teachers for American Indian education programs, persons
48.3involved in programs for American Indian children in American Indian schools, and
48.4persons knowledgeable in the field of American Indian education. Appointed members
48.5shall be representative of significant segments of the population of American Indians.
48.6    Subd. 2. Committee to advise commissioner. The committee on American
48.7Indian education programs shall advise the commissioner in the administration of the
48.8commissioner's duties under sections 124D.71 to 124D.82 and other programs for the
48.9education of American Indian people as determined by the commissioner.
48.10    Subd. 3. Expenses. Members serve without compensation of any kind for any
48.11purpose. The commissioner must determine the membership terms and the duration of
48.12the committee, which expire no later than June 30, 2020.

48.13    Sec. 40. Minnesota Statutes 2006, section 124D.86, subdivision 1, is amended to read:
48.14    Subdivision 1. Use of revenue. (a) Integration revenue under this section must
48.15be used for programs established under a desegregation plan filed with the Department
48.16of Education according to Minnesota Rules, parts 3535.0100 to 3535.0180, or under
48.17court order. The revenue must be used to create or enhance learning opportunities which
48.18are designed to provide opportunities for students to have increased interracial contacts
48.19through classroom experiences, staff initiatives, and other educationally related programs.
48.20    (b) A school district, as a condition of receiving revenue each year under this
48.21section, must have:
48.22    (1) published specific desegregation or integration goals;
48.23    (2) identified valid and reliable indicators to measure annual progress toward
48.24achieving district goals; and
48.25    (3) using its identified indicators, demonstrated to the commissioner the amount of
48.26progress in achieving the district goals in the preceding school year.
48.27EFFECTIVE DATE.This section is effective the day following final enactment
48.28and applies to the 2008-2009 school year and later.

48.29    Sec. 41. [125B.015] STATE AND SCHOOL DISTRICT TECHNOLOGY
48.30STANDARDS.
48.31    Subdivision 1. State technology standards; standard setting. (a) Notwithstanding
48.32other law to the contrary, the commissioner, the Minnesota Education Technology Task
48.33Force, and representatives of school districts must work together to identify for school
48.34districts the robust technology tools and systems that improve the educational achievement
49.1of all Minnesota students. These entities must establish a foundation of flexible shared
49.2services that supports state development and implementation of new and more efficient
49.3educational business practices, including the use of modern analytical tools that help
49.4schools and school districts make data-driven decisions and increase instructional time.
49.5These entities also must anticipate the needs of school districts for effectively using
49.6emerging technologies to make the best and most cost-effective use of finite educational
49.7resources.
49.8    (b) The commissioner, the Minnesota Education Technology Task Force,
49.9representatives of school districts, and other interested and affected stakeholders, must
49.10establish and then maintain, revise, and publish every four years beginning December 1,
49.112008, state and district technology standards and accompanying guidelines consistent with
49.12the requirements of this section and section 120B.023, subdivision 2, paragraph (a). The
49.13state and school districts must use the technology standards to participate in a uniform
49.14data collection system premised on:
49.15    (1) common data definitions for all required data elements;
49.16    (2) a common course catalogue;
49.17    (3) common transcript definitions; and
49.18    (4) school district infrastructure technology standards.
49.19    (c) School districts, consistent with this section and other applicable law, may use
49.20financial resources in addition to state funding to provide students with the technology
49.21tools they need to succeed in an increasingly complex and information-rich environment.
49.22    Subd. 2. District technology standards. (a) The commissioner, in collaboration
49.23with the Minnesota Education Technology Task Force, must establish and then maintain,
49.24revise, and publish six categories of district technology standards consistent with this
49.25section. The district technology standards must encompass:
49.26    (1) instructional technology that includes best practices in 21st century classroom
49.27instruction and student learning;
49.28    (2) technological tools that support formative and summative online assessments,
49.29equipment, and software;
49.30    (3) shared services that facilitate network and data systems administration;
49.31    (4) data practices that include technical security, Internet safety, and data privacy;
49.32    (5) data management that facilitates efficient data transfers involving school districts
49.33and the department; and
49.34    (6) facilities infrastructure that supports multipurpose technology facilities for
49.35instruction and assessment.
50.1    (b) School districts must align district technology expenditures with state and district
50.2technology standards established under this section.
50.3    (c) Beginning December 1, 2010, and each two-year period thereafter, school
50.4districts must use the district technology standards in this section to complete a review of
50.5the district technology environment that:
50.6    (1) examines the alignment of district technology expenditures to the technology
50.7standards under this section;
50.8    (2) identifies service gaps in the district technology plan; and
50.9    (3) estimates the funding needed to fill service gaps.
50.10    (d) School districts must transmit the substance of the review to the commissioner in
50.11the form and manner the commissioner determines in collaboration with the Minnesota
50.12Education Technology Task Force. The commissioner must evaluate and report the
50.13substance of the reviews to the legislature by February 15, 2011, and each two-year period
50.14thereafter.
50.15    Subd. 3. Expedited process. The commissioner must use the expedited rulemaking
50.16process under section 14.389 to adopt state and district technology standards consistent
50.17with this section.
50.18EFFECTIVE DATE.This section is effective the day following final enactment
50.19and applies to the 2008-2009 school year and later.

50.20    Sec. 42. [127A.70] MINNESOTA P-20 EDUCATION PARTNERSHIP.
50.21    Subdivision 1. Establishment; membership. (a) A P-20 education partnership is
50.22established to create a seamless system of education that maximizes achievements of
50.23all students, from early childhood through elementary, secondary, and postsecondary
50.24education, while promoting the efficient use of financial and human resources. The
50.25partnership shall consist of major statewide educational groups or constituencies or
50.26noneducational statewide organizations with a stated interest in P-20 education. The initial
50.27membership of the partnership includes the members serving on the Minnesota P-16
50.28Education Partnership and four legislators appointed as follows:
50.29    (1) one senator from the majority party and one senator from the minority party,
50.30appointed by the Subcommittee on Committees of the Committee on Rules and
50.31Administration; and
50.32    (2) one member of the house of representatives appointed by the speaker of the
50.33house and one member appointed by the minority leader of the house.
50.34    The chair of the P-16 education partnership must convene the first meeting of the
50.35P-20 partnership. Prospective members may be nominated by any partnership member and
51.1new members will be added with the approval of a two-thirds majority of the partnership.
51.2The partnership will also seek input from nonmember organizations whose expertise can
51.3help inform the partnership's work.
51.4    Partnership members shall be represented by the chief executives, presidents, or
51.5other formally designated leaders of their respective organizations, or their designees. The
51.6partnership shall meet at least three times during each calendar year.
51.7    Subd. 2. Powers and duties; report. The partnership shall develop
51.8recommendations to the governor and the legislature designed to maximize the
51.9achievement of all P-20 students while promoting the efficient use of state resources,
51.10thereby helping the state realize the maximum value for its investment. These
51.11recommendations may include, but are not limited to, strategies, policies, or other actions
51.12focused on:
51.13    (1) improving the quality of and access to education at all points from preschool
51.14through the graduate education;
51.15    (2) improving preparation for, and transitions to, postsecondary education and
51.16work; and
51.17    (3) ensuring educator quality by creating rigorous standards for teacher recruitment,
51.18teacher preparation, induction and mentoring of beginning teachers, and continuous
51.19professional development for career teachers.
51.20    By January 15 of each year, the partnership shall submit a report to the governor
51.21and to the chairs and ranking minority members of the legislative committees and
51.22divisions with jurisdiction over P-20 education policy and finance that summarizes the
51.23partnership's progress in meeting its goals and identifies the need for any draft legislation
51.24when necessary to further the goals of the partnership to maximize student achievement
51.25while promoting efficient use of resources.
51.26    Subd. 3. Expiration. Notwithstanding section 15.059, subdivision 5, the partnership
51.27is permanent and does not expire.

51.28    Sec. 43. SCHOOL DISTRICT PLANS TO IMPROVE STUDENTS' ACADEMIC
51.29ACHIEVEMENT.
51.30    Subdivision 1. District academic achievement plan; priorities. (a) A school
51.31district experiencing disparities in academic achievement is encouraged to develop a
51.32short and long-term plan encompassing one through four years to significantly improve
51.33students' academic achievement that uses concrete measures to eliminate differences in
51.34academic performance among groups of students defined by race, ethnicity, and income.
51.35The plan must:
52.1    (1) reflect a research-based understanding of high-performing educational systems
52.2and best educational practices;
52.3    (2) include innovative and practical strategies and programs, whether existing or
52.4new, that supplement district initiatives to increase students' academic achievement under
52.5state and federal educational accountability requirements; and
52.6    (3) contain valid and reliable measures of student achievement that the district uses
52.7to demonstrate the efficacy of the district plan to the commissioner of education.
52.8    (b) A district must address the elements under section 44, paragraph (a), to the
52.9extent those elements are implicated in the district's plan.
52.10    (c) A district must identify in its plan the strategies and programs the district has
52.11implemented and found effective in improving students' academic achievement.
52.12    (d) The district must include with the plan the amount of expenditures necessary
52.13to implement the plan. The district must indicate how current resources are used to
52.14implement the plan, including, but not limited to, state-limited English proficiency aid
52.15under Minnesota Statutes, section 124D.65; integration revenue under Minnesota Statutes,
52.16section 124D.86; early childhood family education revenue under Minnesota Statutes,
52.17section 124D.135; school readiness aid under Minnesota Statutes, section 124D.16; basic
52.18skills revenue under Minnesota Statutes, section 126C.10, subdivision 4; extended time
52.19revenue under Minnesota Statutes, section 126C.10, subdivision 2a; and alternative
52.20compensation revenue under Minnesota Statutes, section 122A.415.
52.21    Subd. 2. Plan. (a) A school district by October 1, 2008, must submit its plan in
52.22electronic format to the commissioner of education, consistent with subdivision 1.
52.23    (b) The commissioner of education must analyze the commonalities and differences
52.24of the district plans and the effective strategies and programs districts have implemented
52.25to improve students' academic achievement, and submit the analysis and underlying data
52.26to the advisory task force on improving students' academic achievement under section
52.2744 by November 1, 2008, and also report the substance of the analyses to the education
52.28policy and finance committees of the legislature by January 1, 2009.
52.29EFFECTIVE DATE.This section is effective the day following final enactment.

52.30    Sec. 44. ADVISORY TASK FORCE ON IMPROVING STUDENTS'
52.31ACADEMIC ACHIEVEMENT.
52.32    (a) An advisory task force on improving students' academic achievement is
52.33established to review the plans submitted to the commissioner of education under section
52.3443 and recommend to the education committees of the legislature a proposal for improving
52.35students' academic achievement and eliminating differences in academic performance
53.1among groups of students defined by race, ethnicity, and income. The task force members
53.2must at least consider how the following education-related issues impact the educational
53.3achievement of low-income students and students of color:
53.4    (1) rigorous preparation and coursework and how to (i) effectively invest in early
53.5childhood and parent education, (ii) increase academic rigor and high expectations on
53.6elementary and secondary students in schools serving a majority of low-income students
53.7and students of color, and (iii) provide parents, educators, and community members with
53.8meaningful opportunities to collaborate in educating students in schools serving a majority
53.9of low-income students and students of color;
53.10    (2) professional development for educators and how to (i) provide stronger financial
53.11and professional incentives to attract and retain experienced, bilingual, and culturally
53.12competent teachers and administrators in schools serving a majority of low-income
53.13students and students of color, (ii) recruit and retain teachers of color, and (iii) develop and
53.14include cultural sensitivity and interpersonal and pedagogical skills training that teachers
53.15need for effective intercultural teaching;
53.16    (3) English language learners and how to (i) use well-designed tests, curricula,
53.17and English as a second language programs and services as diagnostic tools to develop
53.18effective student interventions, (ii) monitor students' language capabilities, (iii) provide
53.19academic instruction in English that supports students' learning and is appropriate
53.20for students' level of language proficiency, and (iv) incorporate the perspectives and
53.21contributions of ethnic and racial groups, consistent with Minnesota Statutes, section
53.22120B.022, subdivision 1, paragraph (b);
53.23    (4) special education and how to (i) incorporate linguistic and cultural sensitivity
53.24into special education diagnosis and referral, (ii) increase the frequency and quality of
53.25prereferral interventions, and (iii) decrease the number of minority and nonnative English
53.26speaking students inappropriately placed in special education;
53.27    (5) GRAD tests and how to (i) incorporate linguistic and cultural sensitivity into the
53.28reading and math GRAD tests, and (ii) develop interventions to meet students' learning
53.29needs; and
53.30    (6) valid and reliable data and how to use data on student on-time graduation rates,
53.31student dropout rates, documented disciplinary actions, and completed and rigorous course
53.32work indicators to determine how well-prepared low-income students and students of
53.33color are for postsecondary academic and career opportunities.
53.34    The task force also must examine the findings of a 2008 report by Minnesota
53.35superintendents on strategies for creating a world-class educational system to establish
54.1priorities for improving students' academic achievement. The task force may consider
54.2other related matters at its discretion.
54.3    (b) The commissioner of education must convene the first meeting of the advisory
54.4task force on improving students' academic achievement by July 1, 2008. The task force
54.5members must adopt internal procedures and standards for subsequent meetings. The task
54.6force is composed of the following members:
54.7    (1) a representative from a Twin Cities metropolitan area school district, a suburban
54.8school district, a school district located in a regional center, and a rural school district,
54.9all four representatives appointed by the education commissioner based on identified
54.10concentrations of low-performing, low-income students and students of color;
54.11    (2) a faculty member of a teacher preparation program at the University of
54.12Minnesota's College of Education and Human Development, appointed by the college
54.13dean or the dean's designee;
54.14    (3) a faculty member from the urban teachers program at Metropolitan State
54.15University appointed by the university president or the president's designee;
54.16    (4) a faculty member from a Minnesota State Colleges and Universities teacher
54.17preparation program located outside the Twin Cities metropolitan area, appointed by
54.18the chancellor or the chancellor's designee;
54.19    (5) a classroom teacher appointed by Education Minnesota;
54.20    (6) an expert in early childhood care and education appointed by a state early
54.21childhood organization;
54.22    (7) a member from each state council representing a community of color, appointed
54.23by the respective council;
54.24    (8) a curriculum specialist with expertise in providing language instruction for
54.25nonnative English speakers, appointed by a state curriculum organization;
54.26    (9) a special education teacher, appointed by a state organization of special education
54.27educators;
54.28    (10) a parent of color, appointed by a state parent-teacher organization;
54.29    (11) a district testing director appointed by a recognized Minnesota assessment
54.30group composed of assessment and evaluation directors and staff and researchers; and
54.31    (12) a Department of Education staff person with expertise in school desegregation
54.32matters appointed by the commissioner of education or the commissioner's designee.
54.33    A majority of task force members, at their discretion, may invite other representatives
54.34of interested public or nonpublic organizations, Minnesota's communities of color, and
54.35stakeholders in local and state educational equity to become task force members. A
54.36majority of task force members must be persons of color.
55.1    (c) Members of the task force serve without compensation of any kind for any
55.2purpose. By February 15, 2009, the task force must submit a written proposal to the
55.3education policy and finance committees of the legislature on how to significantly improve
55.4students' academic achievement.
55.5    (d) The advisory task force expires on February 16, 2009.
55.6EFFECTIVE DATE.This section is effective the day following final enactment.

55.7    Sec. 45. ADVISORY TASK FORCE; INTEGRATING SECONDARY AND
55.8POSTSECONDARY ACADEMIC AND CAREER EDUCATION.
55.9    (a) An advisory task force on improving teacher quality and identifying institutional
55.10structures and strategies for effectively integrating secondary and postsecondary academic
55.11and career education is established to consider and recommend to the education policy and
55.12finance committees of the legislature proposals on how to:
55.13    (1) foster classroom teachers' interest and ability to acquire a master's degree in the
55.14teachers' substantive fields of licensure; and
55.15    (2) meet all elementary and secondary students' needs for adequate education
55.16planning and preparation and improve all students' ability to acquire the knowledge and
55.17skills needed for postsecondary academic and career education.
55.18    (b) The commissioner of education, or the commissioner's designee, shall appoint
55.19an advisory task force that is composed of a representative from each of the following
55.20entities: Education Minnesota, the University of Minnesota, the Department of
55.21Education, the Board of Teaching, the Minnesota Private College Council, the Office of
55.22Higher Education, the Minnesota Career College Association, the Minnesota PTA, the
55.23Minnesota Chamber of Commerce, the Minnesota Business Partnership, the Department
55.24of Employment and Economic Development, the Minnesota Association of Career and
55.25Technical Administrators, the Minnesota Association of Career and Technical Educators,
55.26the Minnesota State Colleges and Universities, and other representatives of other
55.27entities recommended by task force members. Members of the task force serve without
55.28compensation of any kind for any purpose. By February 15, 2009, the task force must
55.29submit written recommendations to the education policy and finance committees of the
55.30legislature on improving teacher quality and identifying the institutional structures and
55.31strategies for effectively integrating secondary and postsecondary academic and career
55.32education, consistent with this section.
55.33    (c) Upon request, the commissioner of education must provide the task force with
55.34technical, fiscal, and other support services.
55.35    (d) The advisory task force expires February 16, 2009.
56.1EFFECTIVE DATE.This section is effective the day following final enactment.

56.2    Sec. 46. NO CHILD LEFT BEHIND ACT; WAIVER FROM FINANCIAL
56.3CONSTRAINTS.
56.4    (a) The commissioner of education must immediately petition the federal
56.5Department of Education to allow Minnesota schools to continue to receive federal
56.6funds under the No Child Left Behind Act of 2001 for state educational services without
56.7the restrictions in federal regulations. The commissioner must include in the petition
56.8information to demonstrate the long history of Minnesota's educational efficacy and how
56.9flexibility related to expending such federal funds will enhance the state education system.
56.10    (b) The commissioner must not enforce the educational assessment and
56.11accountability provisions in Minnesota Statutes, chapter 120B, related to implementing
56.12the No Child Left Behind Act of 2001 after the 2008-2009 school year. A school board
56.13may file a written resolution with the state auditor under Minnesota Statutes, section
56.146.79, recommending how the legislature should reform the educational assessment
56.15and accountability provisions in Minnesota Statutes, chapter 120B, absent the federal
56.16mandates. The commissioner may report proposals and requests to the educational
56.17committees of the legislature by January 1, 2009.

56.18    Sec. 47. COMPUTER ADAPTIVE ASSESSMENTS.
56.19    The Department of Education, by December 1, 2008, must report to the education
56.20committees of the legislature on its efforts to add a computer adaptive assessment that
56.21includes formative analytics to the Minnesota's comprehensive assessment administered
56.22under Minnesota Statutes, section 120B.30.
56.23EFFECTIVE DATE.This section is effective the day following final enactment.

56.24    Sec. 48. ENDING PARTICIPATION IN NO CHILD LEFT BEHIND.
56.25    The commissioner of education must nullify and revoke by August 1, 2009, the
56.26consolidated state plan that the state of Minnesota submitted to the federal Department
56.27of Education on implementing the No Child Left Behind Act of 2001, and any other
56.28Minnesota state contract or agreement entered into under the provisions of the No Child
56.29Left Behind Act of 2001 if (1) the commissioners of education and finance jointly certify
56.30that by not implementing the provisions of the No Child Left Behind Act, the state's
56.31schools will realize a net financial benefit; (2) state assessment and accountability reforms
56.32to include a growth-based assessment are enacted during the 2008 legislative session; and
56.33(3) the commissioner of education implements these reforms.

57.1    Sec. 49. REVIVAL AND REENACTMENT.
57.2    Minnesota Statutes, section 124D.10, subdivision 2a, is revived and reenacted
57.3effective retroactively and without interruption from June 30, 2007.

57.4ARTICLE 3

57.5SPECIAL PROGRAMS

57.6    Section 1. Minnesota Statutes 2006, section 124D.60, subdivision 1, is amended to
57.7read:
57.8    Subdivision 1. Notice. Within ten 30 days after the enrollment of any pupil in an
57.9instructional program for limited English proficient students, the district in which the pupil
57.10resides must notify the parent by mail. This notice must:
57.11    (1) be in writing in English and in the primary language of the pupil's parents;
57.12    (2) inform the parents that their child has been enrolled in an instructional program
57.13for limited English proficient students;
57.14    (3) contain a simple, nontechnical description of the purposes, method and content
57.15of the program;
57.16    (4) inform the parents that they have the right to visit the educational program for
57.17limited English proficient students in which their child is enrolled;
57.18    (5) inform the parents of the time and manner in which to request and receive a
57.19conference for the purpose of explaining the nature and purpose of the program; and
57.20    (6) inform the parents of their rights to withdraw their child from an educational
57.21program for limited English proficient students and the time and manner in which to do so.
57.22    The department shall, at the request of the district, prepare the notice in the primary
57.23language of the parent.

57.24    Sec. 2. Minnesota Statutes 2007 Supplement, section 125A.14, is amended to read:
57.25125A.14 EXTENDED SCHOOL YEAR.
57.26    A district may provide extended school year services for children with a disability
57.27living within the district and nonresident children temporarily placed in the district
57.28pursuant to section 125A.15 or 125A.16. Prior to March 31 or 30 days after the child with
57.29a disability is placed in the district, whichever is later, the providing district shall give
57.30notice to the district of residence of any nonresident children temporarily placed in the
57.31district pursuant to section 125A.15 or 125A.16, of its intention to provide these programs.
57.32Notwithstanding any contrary provisions in sections 125A.15 and 125A.16, the district
57.33providing the special instruction and services must apply for special education aid for the
57.34extended school year services. The unreimbursed actual cost of providing the program
58.1for nonresident children with a disability, including the cost of board and lodging, may
58.2be billed to the district of the child's residence and must be paid by the resident district.
58.3Transportation costs must be paid by the district responsible for providing transportation
58.4pursuant to section 125A.15 or 125A.16 and transportation aid must be paid to that district.

58.5    Sec. 3. Minnesota Statutes 2006, section 125A.15, is amended to read:
58.6125A.15 PLACEMENT IN ANOTHER DISTRICT; RESPONSIBILITY.
58.7    The responsibility for special instruction and services for a child with a disability
58.8temporarily placed in another district for care and treatment shall be determined in the
58.9following manner:
58.10    (a) The district of residence of a child shall be the district in which the child's parent
58.11resides, if living, or the child's guardian, or the district designated by the commissioner if
58.12neither parent nor guardian is living within the state.
58.13    (b) If a district other than the resident district places a pupil for care and treatment,
58.14the district placing the pupil must notify and give the resident district an opportunity to
58.15participate in the placement decision. When an immediate emergency placement of a
58.16pupil is necessary and time constraints foreclose a resident district from participating in
58.17the emergency placement decision, the district in which the pupil is temporarily placed
58.18must notify the resident district of the emergency placement within 15 days. The resident
58.19district has up to five business days after receiving notice of the emergency placement
58.20to request an opportunity to participate in the placement decision, which the placing
58.21district must then provide.
58.22    (c) When a child is temporarily placed for care and treatment in a day program
58.23located in another district and the child continues to live within the district of residence
58.24during the care and treatment, the district of residence is responsible for providing
58.25transportation to and from the care and treatment facility program and an appropriate
58.26educational program for the child. The resident district may establish reasonable
58.27restrictions on transportation, except if a Minnesota court or agency orders the child
58.28placed at a day care and treatment program and the resident district receives a copy of
58.29the order, then the resident district must provide transportation to and from the program
58.30unless the court or agency orders otherwise. Transportation shall only be provided by the
58.31resident district during regular operating hours of the resident district. The resident district
58.32may provide the educational program at a school within the district of residence, at the
58.33child's residence, or in the district in which the day treatment center is located by paying
58.34tuition to that district.
59.1    (c) (d) When a child is temporarily placed in a residential program for care and
59.2treatment, the nonresident district in which the child is placed is responsible for providing
59.3an appropriate educational program for the child and necessary transportation while the
59.4child is attending the educational program; and must bill the district of the child's residence
59.5for the actual cost of providing the program, as outlined in section 125A.11, except as
59.6provided in paragraph (d) (e). However, the board, lodging, and treatment costs incurred
59.7in behalf of a child with a disability placed outside of the school district of residence by
59.8the commissioner of human services or the commissioner of corrections or their agents,
59.9for reasons other than providing for the child's special educational needs must not become
59.10the responsibility of either the district providing the instruction or the district of the child's
59.11residence. For the purposes of this section, the state correctional facilities operated on a
59.12fee-for-service basis are considered to be residential programs for care and treatment.
59.13    (d) (e) A privately owned and operated residential facility may enter into a contract
59.14to obtain appropriate educational programs for special education children and services
59.15with a joint powers entity. The entity with which the private facility contracts for special
59.16education services shall be the district responsible for providing students placed in that
59.17facility an appropriate educational program in place of the district in which the facility is
59.18located. If a privately owned and operated residential facility does not enter into a contract
59.19under this paragraph, then paragraph (c) (d) applies.
59.20    (e) (f) The district of residence shall pay tuition and other program costs, not
59.21including transportation costs, to the district providing the instruction and services.
59.22The district of residence may claim general education aid for the child as provided by
59.23law. Transportation costs must be paid by the district responsible for providing the
59.24transportation and the state must pay transportation aid to that district.
59.25EFFECTIVE DATE.This section is effective the day after final enactment.

59.26    Sec. 4. Minnesota Statutes 2006, section 125A.51, is amended to read:
59.27125A.51 PLACEMENT OF CHILDREN WITHOUT DISABILITIES;
59.28EDUCATION AND TRANSPORTATION.
59.29    The responsibility for providing instruction and transportation for a pupil without a
59.30disability who has a short-term or temporary physical or emotional illness or disability, as
59.31determined by the standards of the commissioner, and who is temporarily placed for care
59.32and treatment for that illness or disability, must be determined as provided in this section.
59.33    (a) The school district of residence of the pupil is the district in which the pupil's
59.34parent or guardian resides.
60.1    (b) When parental rights have been terminated by court order, the legal residence
60.2of a child placed in a residential or foster facility for care and treatment is the district in
60.3which the child resides.
60.4    (c) Before the placement of a pupil for care and treatment, the district of residence
60.5must be notified and provided an opportunity to participate in the placement decision.
60.6When an immediate emergency placement is necessary and time does not permit
60.7resident district participation in the placement decision, the district in which the pupil is
60.8temporarily placed, if different from the district of residence, must notify the district
60.9of residence of the emergency placement within 15 days of the placement. When a
60.10nonresident district makes an emergency placement without first consulting with the
60.11resident district, the resident district has up to five business days after receiving notice
60.12of the emergency placement to request an opportunity to participate in the placement
60.13decision, which the placing district must then provide.
60.14    (d) When a pupil without a disability is temporarily placed for care and treatment
60.15in a day program and the pupil continues to live within the district of residence during
60.16the care and treatment, the district of residence must provide instruction and necessary
60.17transportation to and from the care and treatment facility program for the pupil. The
60.18resident district may establish reasonable restrictions on transportation, except if a
60.19Minnesota court or agency orders the child placed at a day care and treatment program
60.20and the resident district receives a copy of the order, then the resident district must provide
60.21transportation to and from the program unless the court or agency orders otherwise.
60.22Transportation shall only be provided by the resident district during regular operating
60.23hours of the resident district. The resident district may provide the instruction at a school
60.24within the district of residence, at the pupil's residence, or in the case of a placement
60.25outside of the resident district, in the district in which the day treatment program is located
60.26by paying tuition to that district. The district of placement may contract with a facility to
60.27provide instruction by teachers licensed by the state Board of Teaching.
60.28    (e) When a pupil without a disability is temporarily placed in a residential program
60.29for care and treatment, the district in which the pupil is placed must provide instruction
60.30for the pupil and necessary transportation while the pupil is receiving instruction, and in
60.31the case of a placement outside of the district of residence, the nonresident district must
60.32bill the district of residence for the actual cost of providing the instruction for the regular
60.33school year and for summer school, excluding transportation costs.
60.34    (f) Notwithstanding paragraph (e), if the pupil is homeless and placed in a public or
60.35private homeless shelter, then the district that enrolls the pupil under section 127A.47,
60.36subdivision 2 , shall provide the transportation, unless the district that enrolls the pupil
61.1and the district in which the pupil is temporarily placed agree that the district in which
61.2the pupil is temporarily placed shall provide transportation. When a pupil without a
61.3disability is temporarily placed in a residential program outside the district of residence,
61.4the administrator of the court placing the pupil must send timely written notice of the
61.5placement to the district of residence. The district of placement may contract with a
61.6residential facility to provide instruction by teachers licensed by the state Board of
61.7Teaching. For purposes of this section, the state correctional facilities operated on a
61.8fee-for-service basis are considered to be residential programs for care and treatment.
61.9    (g) The district of residence must include the pupil in its residence count of pupil
61.10units and pay tuition as provided in section 123A.488 to the district providing the
61.11instruction. Transportation costs must be paid by the district providing the transportation
61.12and the state must pay transportation aid to that district. For purposes of computing state
61.13transportation aid, pupils governed by this subdivision must be included in the disabled
61.14transportation category if the pupils cannot be transported on a regular school bus route
61.15without special accommodations.
61.16EFFECTIVE DATE.This section is effective the day after final enactment.

61.17    Sec. 5. Minnesota Statutes 2006, section 125A.744, subdivision 3, is amended to read:
61.18    Subd. 3. Implementation. Consistent with section 256B.0625, subdivision 26,
61.19school districts may enroll as medical assistance providers or subcontractors and bill
61.20the Department of Human Services under the medical assistance fee for service claims
61.21processing system for special education services which are covered services under chapter
61.22256B, which are provided in the school setting for a medical assistance recipient, and for
61.23whom the district has secured informed consent consistent with section 13.05, subdivision
61.244 , paragraph (d), and section 256B.77, subdivision 2, paragraph (p), to bill for each type
61.25of covered service. School districts shall be reimbursed by the commissioner of human
61.26services for the federal share of individual education plan health-related services that
61.27qualify for reimbursement by medical assistance, minus up to five percent retained by the
61.28commissioner of human services for administrative costs, not to exceed $350,000 per
61.29fiscal year. The commissioner may withhold up to five percent of each payment to a
61.30school district. Following the end of each fiscal year, the commissioner shall settle up with
61.31each school district in order to ensure that collections from each district for departmental
61.32administrative costs are made on a pro rata basis according to federal earnings for these
61.33services in each district. A school district is not eligible to enroll as a home care provider
61.34or a personal care provider organization for purposes of billing home care services under
61.35sections 256B.0651 and 256B.0653 to 256B.0656 until the commissioner of human
62.1services issues a bulletin instructing county public health nurses on how to assess for the
62.2needs of eligible recipients during school hours. To use private duty nursing services or
62.3personal care services at school, the recipient or responsible party must provide written
62.4authorization in the care plan identifying the chosen provider and the daily amount
62.5of services to be used at school.

62.6    Sec. 6. EXPEDITED PROCESS, SPECIFIC LEARNING DISABILITY RULE.
62.7    The commissioner of education may use the expedited process under Minnesota
62.8Statutes, section 14.389, to conform Minnesota Rule, part 3525.1341, to new federal
62.9requirements on specific learning disabilities under Public Law 108-446, Sections 602(30)
62.10and 614(b)(6), the Individuals with Disabilities Education Improvement Act of 2004,
62.11and its implementing regulations.
62.12EFFECTIVE DATE.This section is effective the day after final enactment.

62.13    Sec. 7. REPEALER.
62.14Minnesota Statutes 2006, sections 121A.67; 125A.16; 125A.19; 125A.20; and
62.15125A.57, and Laws 2006, chapter 263, article 3, section 16, are repealed.
62.16EFFECTIVE DATE.This section is effective the day following final enactment.

62.17ARTICLE 4

62.18LIBRARIES

62.19    Section 1. Minnesota Statutes 2007 Supplement, section 134.31, subdivision 4a,
62.20is amended to read:
62.21    Subd. 4a. Services to the blind and physically handicapped. The Minnesota
62.22Department of Education shall provide specialized services to the blind and physically
62.23handicapped through the Minnesota Braille and Talking Book Library for the Blind and
62.24Physically Handicapped under a cooperative plan with the National Library Services for
62.25the Blind and Physically Handicapped of the Library of Congress.

62.26    Sec. 2. Minnesota Statutes 2006, section 134.31, subdivision 6, is amended to read:
62.27    Subd. 6. Advisory committee. The commissioner shall appoint an advisory
62.28committee of five members to advise the staff of the Minnesota Braille and Talking
62.29Book Library for the Blind and Physically Handicapped on long-range plans and library
62.30services. Members shall be people who use the library. Section 15.059 governs this
62.31committee except that the committee shall not expire.

63.1    Sec. 3. Minnesota Statutes 2006, section 134.31, is amended by adding a subdivision
63.2to read:
63.3    Subd. 7. Telephone or electronic meetings. (a) Notwithstanding section 13D.01,
63.4the Advisory Committee for the Minnesota Braille and Talking Book Library may conduct
63.5a meeting of its members by telephone or other electronic means so long as the following
63.6conditions are met:
63.7    (1) all members of the committee participating in the meeting, wherever their
63.8physical locations, can hear one another and can hear all discussion and testimony;
63.9    (2) members of the public present at the regular meeting location of the committee
63.10can hear all discussion, testimony, and votes of the members of the committee;
63.11    (3) at least one member of the committee is physically present at the regular meeting
63.12location; and
63.13    (4) all votes are conducted by roll call, so each member's votes on each issue can be
63.14identified and recorded.
63.15    (b) Each member of the committee participating in a meeting by telephone or other
63.16electronic means is considered present at the meeting for purposes of determining quorum
63.17and participating in all proceedings.
63.18    (c) If telephone or other electronic means is used to conduct a meeting, to the extent
63.19practical, the committee shall allow a person to monitor the meeting electronically from a
63.20remote location. The committee may require the person making the connection to pay
63.21for the documented marginal costs that the committee incurs as a result of the additional
63.22connection.
63.23    (d) If telephone or other electronic means is used to conduct a regular, special, or
63.24emergency meeting, the committee shall provide notice of the regular meeting location,
63.25the fact that some members may participate by telephone or other electronic means, and
63.26the provisions of paragraph (c). The timing and method of providing notice is governed
63.27by section 13D.04.

63.28ARTICLE 5

63.29STATE AGENCIES

63.30    Section 1. Minnesota Statutes 2006, section 125A.65, subdivision 4, is amended to
63.31read:
63.32    Subd. 4. Unreimbursed costs. (a) For fiscal year 2006, in addition to the tuition
63.33charge allowed in subdivision 3, the academies may charge the child's district of residence
63.34for the academy's unreimbursed cost of providing an instructional aide assigned to that
63.35child, after deducting the special education aid under section 125A.76, attributable to the
64.1child, if that aide is required by the child's individual education plan. Tuition received
64.2under this paragraph must be used by the academies to provide the required service.
64.3    (b) For fiscal year 2007 2008 and later, the special education aid paid to the
64.4academies shall be increased by the academy's unreimbursed cost of providing an one
64.5to one instructional aide and behavioral management aides assigned to a child, after
64.6deducting the special education aid under section 125A.76 attributable to the child, if that
64.7aide is the aides are required by the child's individual education plan. Aid received under
64.8this paragraph must be used by the academies to provide the required service.
64.9    (c) For fiscal year 2007 2008 and later, the special education aid paid to the district
64.10of the child's residence shall be reduced by the amount paid to the academies for district
64.11residents under paragraph (b).
64.12    (d) Notwithstanding section 127A.45, subdivision 3, beginning in fiscal year 2008,
64.13the commissioner shall make an estimated final adjustment payment to the Minnesota
64.14State Academies for general education aid and special education aid for the prior fiscal
64.15year by August 15.
64.16    (e) For fiscal year 2008, the academies may retain receipts received through mutual
64.17agreements with school districts for one to one behavior management aides.
64.18EFFECTIVE DATE.This section is effective the day following final enactment.

64.19    Sec. 2. Minnesota Statutes 2006, section 125A.65, is amended by adding a subdivision
64.20to read:
64.21    Subd. 11. Third-party reimbursement. The Minnesota State Academies must seek
64.22reimbursement under section 125A.21 from third parties for the cost of services provided
64.23by the Minnesota State Academies whenever the services provided are otherwise covered
64.24by a child's public or private health plan.
64.25EFFECTIVE DATE.This section is effective the day following final enactment
64.26for revenue in fiscal year 2008.

64.27    Sec. 3. Minnesota Statutes 2006, section 135A.14, subdivision 2, is amended to read:
64.28    Subd. 2. Statement of immunization required; disclosure. (a) Except as provided
64.29in subdivision 3, no student may remain enrolled in a public or private postsecondary
64.30educational institution unless the student has submitted to the administrator a statement that
64.31the student has received appropriate immunization against measles, rubella, and mumps
64.32after having attained the age of 12 months, and against diphtheria and tetanus within ten
64.33years of first registration at the institution. This statement must indicate the month and
65.1year of each immunization given. Instead of submitting a statement, a student may provide
65.2an immunization record maintained by a school according to section 121A.15, subdivision
65.37 , or a school in another state if the required information is contained in the record. A
65.4student who has submitted a statement as provided in this subdivision may transfer to
65.5a different Minnesota institution without submitting another statement if the student's
65.6transcript or other official documentation indicates that the statement was submitted.
65.7    (b) Any written information provided to a student about immunization requirements
65.8under this subdivision must describe the exemptions from immunizations under
65.9subdivision 3 on the same page and in the same format and style as the written
65.10communication for the immunization requirements.

65.11ARTICLE 6

65.12SELF-SUFFICIENCY AND LIFELONG LEARNING

65.13    Section 1. Minnesota Statutes 2006, section 120A.22, subdivision 5, is amended to
65.14read:
65.15    Subd. 5. Ages and terms. (a) Every child between seven and 16 years of age must
65.16receive instruction. Every child under the age of seven who is enrolled in a half-day
65.17kindergarten, or a full-day kindergarten program on alternate days, or other kindergarten
65.18programs shall receive instruction. Except as provided in subdivision 6, a parent may
65.19withdraw a child under the age of seven from enrollment at any time.
65.20    (b) A school district by annual board action may require children subject to this
65.21subdivision to receive instruction in summer school. A district that acts to require children
65.22to receive instruction in summer school shall establish at the time of its action the criteria
65.23for determining which children must receive instruction.
65.24EFFECTIVE DATE.This section is effective for the 2008-2009 school year and
65.25later.

65.26    Sec. 2. Minnesota Statutes 2006, section 120A.22, subdivision 6, is amended to read:
65.27    Subd. 6. Children under seven. (a) Once a pupil under the age of seven is enrolled
65.28in kindergarten first grade or a higher grade in a public school, the pupil is subject to the
65.29compulsory attendance provisions of this chapter and section 120A.34, unless the board of
65.30the district in which the pupil is enrolled has a policy that exempts children under seven
65.31from this subdivision or paragraph (b) applies.
65.32    (b) In a district in which children under seven are subject to compulsory attendance
65.33under this subdivision, paragraphs (c) to (e) apply.
66.1    (c) A parent or guardian may withdraw the pupil from enrollment in the school for
66.2good cause by notifying the district. Good cause includes, but is not limited to, enrollment
66.3of the pupil in another school, as defined in subdivision 4, or the immaturity of the child.
66.4    (d) When the pupil enrolls, the enrolling official must provide the parent or guardian
66.5who enrolls the pupil with a written explanation of the provisions of this subdivision.
66.6    (e) A pupil under the age of seven who is withdrawn from enrollment in the public
66.7school under paragraph (c) is no longer subject to the compulsory attendance provisions
66.8of this chapter.
66.9    (f) (b) This subdivision does not apply to:
66.10    (1) a kindergartner under age seven whose parent withdraws the child after notifying
66.11the district; and
66.12    (2) a child under age seven enrolled in first grade whose parent withdraws the child
66.13after notifying the district and enrolls the child in another school under subdivision 4.
66.14     (c) In a district that had adopted a policy to exempt children under seven from this
66.15subdivision, the district's chief attendance officer must keep the truancy enforcement
66.16authorities supplied with a copy of the board's current policy certified by the clerk of
66.17the board.
66.18EFFECTIVE DATE.This section is effective for the 2008-2009 school year and
66.19later.

66.20    Sec. 3. Minnesota Statutes 2007 Supplement, section 124D.13, subdivision 11, is
66.21amended to read:
66.22    Subd. 11. Teachers. A school board must employ necessary qualified licensed
66.23teachers licensed in early childhood or parent education for its early childhood family
66.24education programs. The Board of Teaching, at its discretion, may grant an applicant a
66.25variance under this subdivision, consistent with sections 122A.09, subdivision 10, and
66.26122A.25, and Board of Teaching rules.
66.27EFFECTIVE DATE.This section is effective the day following final enactment.

66.28    Sec. 4. Minnesota Statutes 2006, section 124D.19, subdivision 14, is amended to read:
66.29    Subd. 14. Community education; annual report. Each district offering a
66.30community education program under this section must annually complete a program
66.31report to the department information regarding the cost per participant and cost per contact
66.32hour for each community education program, including youth after-school enrichment
67.1programs, that receives aid or levy. The department must include cost per participant and
67.2cost per contact hour information by program in the community education annual report.
67.3EFFECTIVE DATE.This section is effective for the 2008-2009 school year and
67.4later.

67.5    Sec. 5. Minnesota Statutes 2006, section 124D.522, is amended to read:
67.6124D.522 ADULT BASIC EDUCATION SUPPLEMENTAL SERVICE
67.7GRANTS.
67.8    (a) The commissioner, in consultation with the policy review task force under
67.9section 124D.521, may make grants to nonprofit organizations to provide services that
67.10are not offered by a district adult basic education program or that are supplemental to
67.11either the statewide adult basic education program, or a district's adult basic education
67.12program. The commissioner may make grants for: staff development for adult basic
67.13education teachers and administrators; training for volunteer tutors; training, services, and
67.14materials for serving disabled students through adult basic education programs; statewide
67.15promotion of adult basic education services and programs; development and dissemination
67.16of instructional and administrative technology for adult basic education programs;
67.17programs which primarily serve communities of color; adult basic education distance
67.18learning projects, including television instruction programs; and other supplemental
67.19services to support the mission of adult basic education and innovative delivery of adult
67.20basic education services.
67.21    (b) The commissioner must establish eligibility criteria and grant application
67.22procedures. Grants under this section must support services throughout the state, focus on
67.23educational results for adult learners, and promote outcome-based achievement through
67.24adult basic education programs. Beginning in fiscal year 2002, the commissioner may
67.25make grants under this section from the state total adult basic education aid set aside for
67.26supplemental service grants under section 124D.531. Up to one-fourth of the appropriation
67.27for supplemental service grants must be used for grants for adult basic education programs
67.28to encourage and support innovations in adult basic education instruction and service
67.29delivery. A grant to a single organization cannot exceed $100,000 25 percent of the total
67.30supplemental services aid. Nothing in this section prevents an approved adult basic
67.31education program from using state or federal aid to purchase supplemental services.

67.32    Sec. 6. Minnesota Statutes 2007 Supplement, section 124D.531, subdivision 1, is
67.33amended to read:
68.1    Subdivision 1. State total adult basic education aid. (a) The state total adult basic
68.2education aid for fiscal year 2005 is $36,509,000. The state total adult basic education
68.3aid for fiscal year 2006 equals $36,587,000 plus any amount that is not paid for during
68.4the previous fiscal year, as a result of adjustments under subdivision 4, paragraph (a), or
68.5section 124D.52, subdivision 3. The state total adult basic education aid for fiscal year
68.62007 equals $37,673,000 plus any amount that is not paid for during the previous fiscal
68.7year, as a result of adjustments under subdivision 4, paragraph (a), or section 124D.52,
68.8subdivision 3 . The state total adult basic education aid for fiscal year 2008 equals
68.9$40,650,000, plus any amount that is not paid during the previous fiscal year as a result of
68.10adjustments under subdivision 4, paragraph (a), or section 124D.52, subdivision 3. The
68.11state total adult basic education aid for later fiscal years equals:
68.12    (1) the state total adult basic education aid for the preceding fiscal year plus any
68.13amount that is not paid for during the previous fiscal year, as a result of adjustments under
68.14subdivision 4, paragraph (a), or section 124D.52, subdivision 3; times
68.15    (2) the lesser of:
68.16    (i) 1.03; or
68.17    (ii) the greater of 1.00 or the ratio of the state total contact hours in the first prior
68.18program year to the state total contact hours in the second prior program year the average
68.19growth in state total contact hours over the prior ten program years.
68.20    Beginning in fiscal year 2002, two percent of the state total adult basic education
68.21aid must be set aside for adult basic education supplemental service grants under section
68.22124D.522 .
68.23    (b) The state total adult basic education aid, excluding basic population aid, equals
68.24the difference between the amount computed in paragraph (a), and the state total basic
68.25population aid under subdivision 2.

68.26    Sec. 7. Minnesota Statutes 2006, section 124D.55, is amended to read:
68.27124D.55 GENERAL EDUCATION DEVELOPMENT (GED) TEST FEES.
68.28    The commissioner shall pay 60 percent of the fee that is charged to an eligible
68.29individual for the full battery of a general education development (GED) test, but not
68.30more than $20 $40 for an eligible individual.