SF 3631

2nd Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to education; providing for prekindergarten through grade 12 education,
including general education, education excellence, and state agencies;
appropriating money; amending Minnesota Statutes 2006, sections 120B.31, as
amended; 120B.35, as amended; 120B.36, as amended; 120B.362; 121A.19;
122A.21; 122A.415, by adding subdivisions; 122A.72, by adding a subdivision;
123B.62; 124D.04, subdivisions 6, 8, 9; 124D.05, by adding a subdivision;
124D.09, subdivision 5; 124D.095, subdivision 10; 124D.118, subdivision
4; 125A.76, by adding a subdivision; 126C.10, subdivisions 1, 31, 35, 36,
by adding a subdivision; 126C.17, subdivision 9; 126C.40, subdivision 1;
126C.45; 126C.51; 126C.52, subdivision 2, by adding a subdivision; 126C.53;
126C.55; 127A.45, subdivision 16; Minnesota Statutes 2007 Supplement,
sections 120B.30, subdivision 1a; 123B.143, subdivision 1; 123B.54; 124D.095,
subdivisions 3, 4, 7; 124D.531, subdivision 1; 126C.10, subdivision 34; 127A.49,
subdivisions 2, 3; Laws 2007, chapter 146, article 1, section 24, subdivisions 2,
3, 4, 5, 6, 7, 8; article 2, section 46, subdivisions 2, 3, 4, 6, 9, 11, 13, 19, 20;
article 3, sections 23, subdivision 2; 24, subdivisions 3, 4, 9; article 4, section 16,
subdivisions 2, 3, 6, 8; article 5, sections 11, subdivision 1; 13, subdivisions 2, 3,
4; article 7, section 4; article 9, section 17, subdivisions 2, 3, 4, 8, 9, 13; Laws
2007, First Special Session chapter 2, article 1, section 11, subdivisions 1, 2, 6;
proposing coding for new law in Minnesota Statutes, chapters 1; 120B; 123B;
124D; repealing Minnesota Statutes 2006, sections 126C.10, subdivisions 35,
36; 126C.21, subdivision 1; 127A.45, subdivision 7a; Minnesota Statutes 2007
Supplement, section 126C.10, subdivision 34; Laws 2007, First Special Session
chapter 2, article 1, section 11, subdivisions 3, 4.

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

ARTICLE 1

GENERAL EDUCATION

Section 1.

Minnesota Statutes 2007 Supplement, section 123B.143, subdivision 1,
is amended to read:

Subdivision 1.

Contract; duties.

All districts maintaining a classified secondary
school must employ a superintendent who shall be an ex officio nonvoting member of the
school board. The authority for selection and employment of a superintendent must be
vested in the board in all cases. An individual employed by a board as a superintendent
shall have an initial employment contract for a period of time no longer than three years
from the date of employment. Any subsequent employment contract must not exceed a
period of three years. A board, at its discretion, may or may not renew an employment
contract. A board must not, by action or inaction, extend the duration of an existing
employment contract. Beginning 365 days prior to the expiration date of an existing
employment contract, a board may negotiate and enter into a subsequent employment
contract to take effect upon the expiration of the existing contract. A subsequent contract
must be contingent upon the employee completing the terms of an existing contract. If a
contract between a board and a superintendent is terminated prior to the date specified in
the contract, the board may not enter into another superintendent contract with that same
individual that has a term that extends beyond the date specified in the terminated contract.
A board may terminate a superintendent during the term of an employment contract for any
of the grounds specified in section 122A.40, subdivision 9 or 13. A superintendent shall
not rely upon an employment contract with a board to assert any other continuing contract
rights in the position of superintendent under section 122A.40. Notwithstanding the
provisions of sections 122A.40, subdivision 10 or 11, 123A.32, 123A.75, or any other law
to the contrary, no individual shall have a right to employment as a superintendent based
on order of employment in any district. If two or more districts enter into an agreement for
the purchase or sharing of the services of a superintendent, the contracting districts have
the absolute right to select one of the individuals employed to serve as superintendent
in one of the contracting districts and no individual has a right to employment as the
superintendent to provide all or part of the services based on order of employment in a
contracting district. The superintendent of a district shall perform the following:

(1) visit and supervise the schools in the district, report and make recommendations
about their condition when advisable or on request by the board;

(2) recommend to the board employment and dismissal of teachers;

(3) superintend school grading practices and examinations for promotions;

(4) make reports required by the commissioner;

(5) by deleted text begin January deleted text end new text begin August new text end 10, new text begin 2009, and each year thereafter, new text end submit an annual report
to the commissioner in a manner prescribed by the commissioner, in consultation with
school districts, deleted text begin identifying the expenditures that the district requires to ensure an 80
percent student passage rate on the MCA-IIs taken in the eighth grade, deleted text end identifying the
highest student passage rate the district expects it will be able to attain on the deleted text begin MCA-IIs deleted text end new text begin
GRAD new text end by grade 12, and the amount of expenditures that the district requires to attain the
targeted student passage rate; and

(6) perform other duties prescribed by the board.

Sec. 2.

Minnesota Statutes 2006, section 124D.04, subdivision 6, is amended to read:

Subd. 6.

Tuition payments.

new text begin (a) new text end In each odd-numbered year, before March 1, the
commissioner must agree to rates of tuition for Minnesota elementary and secondary
pupils attending in other states for the next two fiscal years when the other state agrees to
negotiate tuition rates. The commissioner must negotiate equal, reciprocal rates with the
designated authority in each state for pupils who reside in an adjoining state and enroll in
a Minnesota district. The rates must be at least equal to the tuition specified in section
124D.05, subdivision 1. If the other state does not agree to negotiate a general tuition rate,
a Minnesota school district may negotiate a tuition rate with the school district in the other
state that sends a pupil to or receives a pupil from the Minnesota school district. The
tuition rate for a pupil with a disability must be equal to the actual cost of instruction and
services provided. The resident district of a Minnesota pupil attending in another state
under this section must pay the amount of tuition agreed upon in this section to the district
of attendance, prorated on the basis of the proportion of the school year attended.

new text begin (b) Notwithstanding paragraph (a) and subdivision 9, if an agreement is reached
between the state of Minnesota and an adjoining state pursuant to section 124D.041,
the provisions of section 124D.041 and the agreement shall apply to all enrollment
transfers between Minnesota and the adjoining state, and provisions of paragraph (a)
and subdivision 9 shall not apply.
new text end

Sec. 3.

Minnesota Statutes 2006, section 124D.04, subdivision 8, is amended to read:

Subd. 8.

Effective if reciprocal.

This section is effective with respect to deleted text begin South
Dakota upon enactment of provisions by South Dakota that the commissioner determines
are essentially similar to the provisions for Minnesota pupils in this section. This section
is effective with respect to deleted text end any deleted text begin other deleted text end bordering state upon enactment of provisions by the
bordering state that the commissioner determines are essentially similar to the provisions
for Minnesota pupils in this section.

Sec. 4.

Minnesota Statutes 2006, section 124D.04, subdivision 9, is amended to read:

Subd. 9.

Appeal to the commissioner.

If a Minnesota school district cannot agree
with an adjoining state on a tuition rate for a Minnesota student attending school in that
state and that state has met the requirements in subdivision 8, then the student's parent or
guardian may request that the commissioner deleted text begin agree on deleted text end new text begin set new text end a tuition rate for the student. The
Minnesota district must pay the amount of tuition the commissioner deleted text begin agrees upon deleted text end new text begin sets new text end .

Sec. 5.

new text begin [124D.041] RECIPROCITY WITH ADJOINING STATES.
new text end

new text begin Subdivision 1. new text end

new text begin Agreements. new text end

new text begin (a) The commissioner may enter into an agreement
with the designated authority from an adjoining state to establish an enrollment options
program between Minnesota and the adjoining state. Any agreement entered into pursuant
to this section must specify the following:
new text end

new text begin (1) for students who are not residents of Minnesota, the enrollment options program
applies only to a student whose resident school district borders Minnesota;
new text end

new text begin (2) the commissioner must negotiate equal, reciprocal rates with the designated
authority from the adjoining state;
new text end

new text begin (3) if the adjoining state sends more students to Minnesota than Minnesota sends to
the adjoining state, the adjoining state must pay the state of Minnesota the rate agreed
upon under clause (2) for the excess number of students sent to Minnesota;
new text end

new text begin (4) if Minnesota sends more students to the adjoining state than the adjoining state
sends to Minnesota, the state of Minnesota will pay the adjoining state the rate agreed
upon under clause (2) for the excess number of students sent to the adjoining state;
new text end

new text begin (5) the application procedures for the enrollment options program between
Minnesota and the adjoining state;
new text end

new text begin (6) the reasons for which an application for the enrollment options program between
Minnesota and the adjoining state may be denied; and
new text end

new text begin (7) that a Minnesota school district is not responsible for transportation for any
resident student attending school in an adjoining state under the provisions of this section.
A Minnesota school district may, at its discretion, provide transportation services for
such a student.
new text end

new text begin (b) Any agreement entered into pursuant to this section may specify additional terms
relating to any student in need of special education and related services pursuant to chapter
125A. Any additional terms must apply equally to both states.
new text end

new text begin Subd. 2. new text end

new text begin Pupil accounting. new text end

new text begin (a) Any student from an adjoining state enrolled in
Minnesota pursuant to this section is included in the receiving school district's average
daily membership and pupil units according to section 126C.05 as if the student were
a resident of another Minnesota school district attending the receiving school district
under section 124D.03.
new text end

new text begin (b) Any Minnesota resident student enrolled in an adjoining state pursuant to this
section is included in the resident school district's average daily membership and pupil
units according to section 126C.05 as if the student were a resident of the district attending
another Minnesota school district under section 124D.03.
new text end

new text begin Subd. 3. new text end

new text begin Procedures. new text end

new text begin (a) The Department of Education must establish procedures
relating to the application process, the collection or payment of funds under the provisions
of any agreement established pursuant to this section, and the collection of data necessary
to implement any agreement established pursuant to this section.
new text end

new text begin (b) Notwithstanding sections 124D.04 and 124D.05, if an agreement is established
between Minnesota and an adjoining state pursuant to this section, the provisions of this
section and the agreement shall apply to all enrollment transfers between Minnesota and
the adjoining state, and provisions of sections 124D.04 and 124D.05 to the contrary,
including provisions relating to tuition payments, shall not apply.
new text end

new text begin (c) Notwithstanding paragraph (a), any payments to adjoining states under this
section shall be made according to section 127A.45, subdivision 16.
new text end

new text begin (d) Notwithstanding paragraph (b), sections 124D.04, subdivision 6, paragraph (b),
and 124D.05, subdivision 2a, the provisions of this section and the agreement shall not
apply to:
new text end

new text begin (1) enrollment transfers between Minnesota and a school district in an adjoining
state enrolling fewer than 150 pupils that is exempted from participation in the program
under the laws of the adjoining state; or
new text end

new text begin (2) enrollment transfers between Minnesota and a school district in an adjoining
state under a board agreement initiated in fiscal year 2009 to serve students in grade
levels discontinued by the resident district.
new text end

Sec. 6.

Minnesota Statutes 2006, section 124D.05, is amended by adding a subdivision
to read:

new text begin Subd. 2a. new text end

new text begin Exception. new text end

new text begin Notwithstanding subdivisions 1 and 2, if an agreement
is reached between the state of Minnesota and an adjoining state pursuant to section
124D.041, the provisions of section 124D.041 and the agreement shall apply to all
enrollment transfers between Minnesota and the adjoining state, and provisions of
subdivisions 1 and 2 to the contrary, including provisions relating to tuition payments,
shall not apply.
new text end

Sec. 7.

Minnesota Statutes 2006, section 125A.76, is amended by adding a subdivision
to read:

new text begin Subd. 4a. new text end

new text begin Adjustments for tuition reciprocity with adjoining states. new text end

new text begin (a) If an
agreement is reached between the state of Minnesota and an adjoining state pursuant to
section 124D.041 that requires a special education tuition payment from the state of
Minnesota to the adjoining state, the tuition payment shall be made from the special
education aid appropriation for that year, and the state total special education aid under
subdivision 4 shall be reduced by the amount of the payment.
new text end

new text begin (b) If an agreement is reached between the state of Minnesota and an adjoining state
pursuant to section 124D.041 that requires a special education tuition payment from
an adjoining state to the state of Minnesota, the special education aid appropriation for
that year and the state total special education aid under subdivision 4 shall be increased
by the amount of the payment.
new text end

new text begin (c) If an agreement is reached between the state of Minnesota and an adjoining state
pursuant to section 124D.041 that requires special education tuition payments to be made
between the two states and not between districts in the two states, the special education aid
for a Minnesota school district serving a student with a disability from the adjoining state
shall be calculated according to section 127A.47, subdivision 7, except that no reduction
shall be made in the special education aid paid to the resident district.
new text end

Sec. 8.

Minnesota Statutes 2006, section 126C.10, subdivision 1, is amended to read:

Subdivision 1.

General education revenue.

new text begin (a) new text end For fiscal deleted text begin year 2006 and later deleted text end new text begin years
2008 and 2009 new text end , the general education revenue for each district equals the sum of the
district's basic revenue, extended time revenue, gifted and talented revenue, basic skills
revenue, training and experience revenue, secondary sparsity revenue, elementary sparsity
revenue, transportation sparsity revenue, total operating capital revenue, equity revenue,
alternative teacher compensation revenue new text begin under section 122A.415 new text end , and transition revenue.

new text begin (b) For fiscal year 2010 and later, the general education revenue for each district
equals the sum of the district's basic revenue, extended time revenue, gifted and talented
revenue, basic skills revenue, training and experience revenue, secondary sparsity revenue,
elementary sparsity revenue, transportation sparsity revenue, total operating capital
revenue, equity revenue, and transition revenue.
new text end

Sec. 9.

Minnesota Statutes 2006, section 126C.10, subdivision 31, is amended to read:

Subd. 31.

Transition revenue.

(a) A district's transition allowance equals the
greater of zero or the product of the ratio of the number of adjusted marginal cost pupil
units the district would have counted for fiscal year 2004 under Minnesota Statutes 2002
to the district's adjusted marginal cost pupil units for fiscal year 2004, times the difference
between: (1) the lesser of the district's general education revenue per adjusted marginal
cost pupil unit for fiscal year 2003 or the amount of general education revenue the district
would have received per adjusted marginal cost pupil unit for fiscal year 2004 according
to Minnesota Statutes 2002, and (2) the district's general education revenue for fiscal year
2004 excluding transition revenue divided by the number of adjusted marginal cost pupil
units the district would have counted for fiscal year 2004 under Minnesota Statutes 2002.

(b) A district's transition revenue for fiscal deleted text begin year deleted text end new text begin years new text end 2006 deleted text begin and later deleted text end new text begin through 2009 new text end
equals the sum of the product of the district's transition allowance times the district's
adjusted marginal cost pupil units plus the district's transition for prekindergarten revenue
under subdivision 31a.

new text begin (c) A district's transition revenue for fiscal year 2010 and later equals the sum of
the product of the district's transition allowance times the district's adjusted marginal cost
pupil units plus the district's transition for prekindergarten revenue under subdivision 31a
plus the district's transition for tuition reciprocity revenue under subdivision 31c.
new text end

new text begin (d) Notwithstanding paragraph (b), for fiscal year 2010 and later, the transition
revenue for Independent School District No. 356, Lancaster, equals the sum of the product
of the district's transition allowance plus $361 times the district's adjusted marginal cost
pupil units plus the district's transition for prekindergarten revenue under subdivision 31a.
new text end

Sec. 10.

Minnesota Statutes 2006, section 126C.10, is amended by adding a
subdivision to read:

new text begin Subd. 31c. new text end

new text begin Transition for tuition reciprocity revenue. new text end

new text begin For the first year that a
tuition reciprocity agreement with an adjoining state is in effect under section 124D.041
and later, a school district's transition for tuition reciprocity revenue equals the greater of
zero or the difference between the sum of the general education revenue and net tuition
revenue the district would have received for pupils enrolled under section 124D.041 for
the first year the agreement is in effect if the agreement had not been in effect, and the
sum of the district's general education revenue and net tuition revenue for the first year
the agreement is in effect.
new text end

Sec. 11.

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

Subd. 34.

Basic alternative teacher compensation aid.

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

(b) Notwithstanding paragraphs (a) and (b) and section 122A.415, subdivision 1,
the state total basic alternative teacher compensation aid entitlement must not exceed
deleted text begin $75,636,000 deleted text end new text begin $48,060,000 new text end for fiscal year deleted text begin 2007 deleted text end new text begin 2008, new text end and deleted text begin later deleted text end new text begin $52,407,000 for fiscal year
2009 new text end . The commissioner must limit the amount of alternative teacher compensation aid
approved under section 122A.415 so as not to exceed these limits.

Sec. 12.

Minnesota Statutes 2006, section 126C.10, subdivision 35, is amended to read:

Subd. 35.

Alternative teacher compensation levy.

For fiscal deleted text begin year 2007 and later deleted text end new text begin
years 2008 and 2009 new text end , the alternative teacher compensation levy for a district receiving
basic alternative teacher compensation aid equals the product of (1) the difference between
the district's alternative teacher compensation revenue and the district's basic alternative
teacher compensation aid times (2) the lesser of one or the ratio of the district's adjusted
net tax capacity per adjusted pupil unit to $5,913.

Sec. 13.

Minnesota Statutes 2006, section 126C.10, subdivision 36, is amended to read:

Subd. 36.

Alternative teacher compensation aid.

(a) For fiscal deleted text begin year 2007 and later deleted text end new text begin
years 2008 and 2009 new text end , a district's alternative teacher compensation equalization aid equals
the district's alternative teacher compensation revenue minus the district's basic alternative
teacher compensation aid minus the district's alternative teacher compensation levy. If a
district does not levy the entire amount permitted, the alternative teacher compensation
equalization aid must be reduced in proportion to the actual amount levied.

(b) A district's alternative teacher compensation aid equals the sum of the
district's basic alternative teacher compensation aid and the district's alternative teacher
compensation equalization aid.

Sec. 14.

Minnesota Statutes 2006, section 126C.17, subdivision 9, is amended to read:

Subd. 9.

Referendum revenue.

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

"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU deleted text begin MAY BE VOTING
FOR A PROPERTY TAX INCREASE deleted text end new text begin ARE VOTING TO EXTEND AN EXISTING
PROPERTY TAX REFERENDUM THAT IS SCHEDULED TO EXPIRE new text end ."

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

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

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

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

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

The notice must include the following statement: "Passage of this referendum will
result in an increase in your property taxes." However, in cases of renewing existing
levies, the notice may include the following statement: "Passage of this referendum deleted text begin may deleted text end
deleted text begin result in deleted text end deleted text begin an increase deleted text end deleted text begin in your property taxes deleted text end new text begin extends an existing operating referendum at the
same amount per pupil as in the previous year new text end ."

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 15.

Minnesota Statutes 2006, section 126C.40, subdivision 1, is amended to read:

Subdivision 1.

To lease building or land.

(a) When an independent or a special
school district or a group of independent or special school districts finds it economically
advantageous to rent or lease a building or land for any instructional purposes or for
school storage or furniture repair, and it determines that the operating capital revenue
authorized under section 126C.10, subdivision 13, is insufficient for this purpose, it may
apply to the commissioner for permission to make an additional capital expenditure levy
for this purpose. An application for permission to levy under this subdivision must contain
financial justification for the proposed levy, the terms and conditions of the proposed
lease, and a description of the space to be leased and its proposed use.

(b) The criteria for approval of applications to levy under this subdivision must
include: the reasonableness of the price, the appropriateness of the space to the proposed
activity, the feasibility of transporting pupils to the leased building or land, conformity
of the lease to the laws and rules of the state of Minnesota, and the appropriateness of
the proposed lease to the space needs and the financial condition of the district. The
commissioner must not authorize a levy under this subdivision in an amount greater than
the cost to the district of renting or leasing a building or land for approved purposes.
The proceeds of this levy must not be used for custodial or other maintenance services.
A district may not levy under this subdivision for the purpose of leasing or renting a
district-owned building or site to itself.

(c) For agreements finalized after July 1, 1997, a district may not levy under this
subdivision for the purpose of leasing: (1) a newly constructed building used primarily
for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed
building addition or additions used primarily for regular kindergarten, elementary, or
secondary instruction that contains more than 20 percent of the square footage of the
previously existing building.

(d) Notwithstanding paragraph (b), a district may levy under this subdivision for the
purpose of leasing or renting a district-owned building or site to itself only if the amount
is needed by the district to make payments required by a lease purchase agreement,
installment purchase agreement, or other deferred payments agreement authorized by law,
and the levy meets the requirements of paragraph (c). A levy authorized for a district by
the commissioner under this paragraph may be in the amount needed by the district to
make payments required by a lease purchase agreement, installment purchase agreement,
or other deferred payments agreement authorized by law, provided that any agreement
include a provision giving the school districts the right to terminate the agreement
annually without penalty.

(e) The total levy under this subdivision for a district for any year must not exceed
deleted text begin $100 deleted text end new text begin $150 new text end times the resident pupil units for the fiscal year to which the levy is attributable.

(f) For agreements for which a review and comment have been submitted to the
Department of Education after April 1, 1998, the term "instructional purpose" as used in
this subdivision excludes expenditures on stadiums.

(g) The commissioner of education may authorize a school district to exceed the
limit in paragraph (e) if the school district petitions the commissioner for approval. The
commissioner shall grant approval to a school district to exceed the limit in paragraph (e)
for not more than five years if the district meets the following criteria:

(1) the school district has been experiencing pupil enrollment growth in the
preceding five years;

(2) the purpose of the increased levy is in the long-term public interest;

(3) the purpose of the increased levy promotes colocation of government services;
and

(4) the purpose of the increased levy is in the long-term interest of the district by
avoiding over construction of school facilities.

(h) A school district that is a member of an intermediate school district may include
in its authority under this section the costs associated with leases of administrative and
classroom space for intermediate school district programs. This authority must not
exceed deleted text begin $25 deleted text end new text begin $37 new text end times the adjusted marginal cost pupil units of the member districts. This
authority is in addition to any other authority authorized under this section.

(i) In addition to the allowable capital levies in paragraph (a), a district that is a
member of the "Technology and Information Education Systems" data processing joint
board, that finds it economically advantageous to enter into a lease purchase agreement for
a building for a group of school districts or special school districts for staff development
purposes, may levy for its portion of lease costs attributed to the district within the total
levy limit in paragraph (e).

Sec. 16.

Minnesota Statutes 2006, section 126C.51, is amended to read:

126C.51 APPLICATION OF LIMITING TAX LEGISLATION.

Notwithstanding the provisions of section 471.69 or 471.75, or of any other
provision of law which by per capita limitation, local tax rate limitation, or otherwise,
limits the power of a district to incur any debt or to issue any warrant or order, a new text begin school
new text end district new text begin or intermediate school district new text end has the powers in sections 126C.50 to 126C.56
specifically conferred upon it and all powers incident and necessary to carrying out the
purposes of sections 126C.50 to 126C.56.

new text begin EFFECTIVE DATE. new text end

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

Sec. 17.

Minnesota Statutes 2006, section 126C.52, subdivision 2, is amended to read:

Subd. 2.

Limitations.

The board new text begin of any school district new text end may also borrow money
in the manner and subject to the limitations set forth in sections 126C.50 to 126C.56 in
anticipation of receipt of state aids for schools as defined in Minnesota Statutes and of
federal school aids to be distributed by or through the department. The aggregate of such
borrowings under this subdivision shall never exceed 75 percent of such aids which are
receivable by said school district in the deleted text begin school deleted text end new text begin fiscal new text end year deleted text begin (from July 1 to June 30) deleted text end in which
the money is borrowed, as estimated and certified by the commissioner.

new text begin EFFECTIVE DATE. new text end

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

Sec. 18.

Minnesota Statutes 2006, section 126C.52, is amended by adding a
subdivision to read:

new text begin Subd. 3. new text end

new text begin Intermediate school districts. new text end

new text begin (a) The board of an intermediate school
district may borrow money in the manner and subject to the limitations set forth in
sections 126C.50 to 126C.56 in anticipation of the receipt of:
new text end

new text begin (1) state aids for schools as defined in Minnesota Statutes;
new text end

new text begin (2) federal school aids to be distributed by or through the department; and
new text end

new text begin (3) membership fees and tuition payments from its member school districts.
new text end

new text begin The aggregate of such borrowings under this subdivision shall never exceed 75
percent of such aids, fees, and tuition payments which are receivable by the intermediate
school district in the fiscal year in which the money is borrowed, as estimated and certified
by the commissioner.
new text end

new text begin (b) The board of an intermediate school district may, upon receipt of a written
resolution by each of its member school districts, pledge the member district's full faith
and credit and unlimited taxing powers to repay each member district's pro rata share of
any certificates issued or the amount paid by the state under section 126C.55, subdivision
2, plus interest, if the revenues specified in paragraph (a) and any other revenues of the
intermediate school district are insufficient to do so.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 19.

Minnesota Statutes 2006, section 126C.53, is amended to read:

126C.53 ENABLING RESOLUTION; FORM OF CERTIFICATES OF
INDEBTEDNESS.

The board new text begin of a school district or intermediate school district new text end may authorize and
effect such borrowing, and may issue such certificates of indebtedness upon passage of
a resolution specifying the amount and purposes for which it deems such borrowing is
necessary. The resolution must be adopted by a vote of at least two-thirds of its members.
The board must fix the amount, date, maturity, form, denomination, and other details of
the certificates of indebtedness, not inconsistent with this chapter. The board must fix the
date and place for receipt of bids for the purchase of the certificates when bids are required
and direct the clerk to give notice of the date and place for bidding.

new text begin EFFECTIVE DATE. new text end

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

Sec. 20.

Minnesota Statutes 2006, section 126C.55, is amended to read:

126C.55 STATE PAYMENT OF DEBT OBLIGATION UPON POTENTIAL
DEFAULT; REPAYMENT; STATE OBLIGATION NOT DEBT.

Subdivision 1.

Definitions.

For the purposes of this section, the term "debt
obligation" means:

(1) a deleted text begin tax or aid anticipation deleted text end certificate of indebtedness new text begin issued under section 126C.52 new text end ;

(2) a certificate of participation issued under section 126C.40, subdivision 6; or

(3) a general obligation bond.

Subd. 2.

Notifications; payment; appropriation.

(a) If a new text begin school new text end district new text begin or
intermediate school district new text end believes that it may be unable to make a principal or interest
payment on any outstanding debt obligation on the date that payment is due, it must
notify the commissioner as soon as possible, but not less than 15 working days before the
date that principal or interest payment is due. The notice must include the name of the
district, an identification of the debt obligation issue in question, the date the payment is
due, the amount of principal and interest due on the payment date, the amount of principal
or interest that the district will be unable to repay on that date, the paying agent for the
debt obligation, the wire transfer instructions to transfer funds to that paying agent, and an
indication as to whether a payment is being requested by the district under this section.
If a paying agent becomes aware of a potential default, it shall inform the commissioner
of that fact. After receipt of a notice which requests a payment under this section, after
consultation with the district and the paying agent, and after verification of the accuracy of
the information provided, the commissioner shall notify the commissioner of finance of
the potential default. The notice must include a final figure as to the amount due that the
district will be unable to repay on the date due.

(b) Except as provided in subdivision 9, upon receipt of this notice from the
commissioner, the commissioner of finance shall issue a warrant and authorize the
commissioner of education to pay to the paying agent for the debt obligation the specified
amount on or before the date due. The amounts needed for the purposes of this subdivision
are annually appropriated to the department from the state general fund.

(c) The Departments of Education and Finance must jointly develop detailed
procedures for new text begin school new text end districts new text begin and intermediate school districts new text end to notify the state that they
have obligated themselves to be bound by the provisions of this section, procedures for
districts and paying agents to notify the state of potential defaults and to request state
payment under this section, and procedures for the state to expedite payments to prevent
defaults. The procedures are not subject to chapter 14.

Subd. 3.

School district bound; interest rate on state paid amount.

If, at the
request of a new text begin school new text end district new text begin or intermediate school district new text end , the state has paid part or all of
the principal or interest due on a district's debt obligation on a specific date, the new text begin school
district or intermediate school new text end district is bound by all provisions of this section and the
amount paid shall bear taxable interest from the date paid until the date of repayment at
the invested cash rate as it is certified by the commissioner of finance. Interest shall only
accrue on the amounts paid and outstanding less the reduction in aid under subdivision 4
and other payments received from the district.

Subd. 4.

Pledge of district's full faith and credit.

If, at the request of a new text begin school
new text end district new text begin or intermediate school district new text end , the state has paid part or all of the principal or
interest due on a district's debt obligation on a specific date, the pledge of the full faith
and credit and unlimited taxing powers of the new text begin school new text end district new text begin or the member districts
of the intermediate school district new text end to repay the principal and interest due on those debt
obligations shall also, without an election or the requirement of a further authorization,
become a pledge of the full faith and credit and unlimited taxing powers of the new text begin school new text end
district new text begin or the member districts of the intermediate school district new text end to repay to the state the
amount paid, with interest. Amounts paid by the state must be repaid in the order in which
the state payments were made.

new text begin Subd. 4a. new text end

new text begin Aid reduction for repayment. new text end

new text begin (a) Except as provided in this subdivision,
the state must reduce the state aid payable to the school district or intermediate school
district under this chapter and chapters 122A, 123A, 123B, 124D, 125A, 126C, and 273
by the amount paid by the state under this section on behalf of the district, plus the interest
due on it, and the amount reduced must revert from the appropriate account to the state
general fund. Payments from the school district endowment fund or any federal aid
payments shall not be reduced.
new text end

new text begin (b) For an intermediate school district, the state aid payable to the intermediate
school district must first be reduced, before any reduction is made to the state aids payable
to the member districts. If the state aid payable to the intermediate school district is
not sufficient to repay the state, state aid payable to member districts may be reduced
proportionately based on the ratio of each member district's adjusted net tax capacity to
the total adjusted net tax capacity of all member districts.
new text end

new text begin (c) If, after review of the financial situation of the school district or intermediate
school district, the commissioner advises the commissioner of finance that a total reduction
of aids would cause an undue hardship on or an undue disruption of the educational
program of the district, the commissioner, with the approval of the commissioner of
finance, may establish a different schedule for reduction of aids to repay the state. The
amount of aids to be reduced is decreased by any amounts repaid to the state by the district
from other revenue sources.
new text end

Subd. 6.

Tax levy for repayment.

(a) With the approval of the commissioner, a
district may levy in the year the state makes a payment under this section an amount up to
the amount necessary to provide funds for the repayment of the amount paid by the state
plus interest through the date of estimated repayment by the district. The proceeds of this
levy may be used only for this purpose unless they are in excess of the amount actually
due, in which case the excess shall be used to repay other state payments made under this
section or shall be deposited in the debt redemption fund of the school district. This levy
shall be an increase in the levy limits of the district for purposes of section 275.065,
subdivision 6. The amount of aids to be reduced to repay the state shall be decreased by
the amount levied. This levy by the district is not eligible for debt service equalization
under section 123B.53.

(b) If the state is not repaid in full for a payment made under this section by
November 30 of the calendar year following the year in which the state makes the
payment, the commissioner shall require the district to certify a property tax levy in an
amount up to the amount necessary to provide funds for repayment of the amount paid by
the state plus interest through the date of estimated repayment by the school district. To
prevent undue hardship, the commissioner may allow the district to certify the levy over a
five-year period. The proceeds of the levy may be used only for this purpose unless they
are in excess of the amount actually due, in which case the excess shall be used to repay
other state payments made under this section or shall be deposited in the debt redemption
fund of the district. This levy shall be an increase in the levy limits of the school district
for purposes of section 275.065, subdivision 6. If the commissioner orders the district
to levy, the amount of aids reduced to repay the state shall be decreased by the amount
levied. This levy by the district is not eligible for debt service equalization under section
123B.53 or any successor provision. A levy under this subdivision must be explained as a
specific increase at the meeting required under section 275.065, subdivision 6.

new text begin (c) For an intermediate school district, a levy made by a member district under
paragraph (a) or (b) to pay its pro rata share must be spread by the commissioner as a
tax rate based on the total adjusted net tax capacity of the member school districts. The
proceeds of the levy must be remitted by the member school district to the intermediate
school district and must be used by the intermediate school district only to repay the state
amounts owed. Any amount in excess of the amount owed to the state must be repaid to
the member school districts and the commissioner shall adjust each member district's
property tax levy in the next year.
new text end

Subd. 7.

Election as to mandatory application.

A new text begin school new text end district new text begin or intermediate
school district new text end may covenant and obligate itself, prior to the issuance of an issue of debt
obligations, to notify the commissioner of a potential default and to use the provisions of
this section to guarantee payment of the principal and interest on those debt obligations
when due. If the district obligates itself to be bound by this section, it must covenant in the
resolution that authorizes the issuance of the debt obligations to deposit with the paying
agent three business days prior to the date on which a payment is due an amount sufficient
to make that payment or to notify the commissioner under subdivision 1 that it will be
unable to make all or a portion of that payment. A district that has obligated itself must
include a provision in its agreement with the paying agent for that issue that requires
the paying agent to inform the commissioner if it becomes aware of a potential default
in the payment of principal or interest on that issue or if, on the day two business days
prior to the date a payment is due on that issue, there are insufficient funds to make the
payment on deposit with the paying agent. Funds invested in a refunding escrow account
established under section 475.67 that are to become available to the paying agent on a
principal or interest payment date are deemed to be on deposit with the paying agent three
business days before the payment date. If a district either covenants to be bound by this
section or accepts state payments under this section to prevent a default of a particular
issue of debt obligations, the provisions of this section shall be binding as to that issue
as long as any debt obligation of that issue remain outstanding. If the provisions of this
section are or become binding for more than one issue of debt obligations and a district is
unable to make payments on one or more of those issues, the district must continue to
make payments on the remaining issues.

Subd. 8.

Mandatory plan; technical assistance.

If the state makes payments on
behalf of a new text begin school new text end district new text begin or intermediate school district new text end under this section or the district
defaults in the payment of principal or interest on an outstanding debt obligation, it must
submit a plan to the commissioner for approval specifying the measures it intends to
implement to resolve the issues which led to its inability to make the payment and to
prevent further defaults. The department must provide technical assistance to the district
in preparing its plan. If the commissioner determines that a district's plan is not adequate,
the commissioner shall notify the district that the plan has been disapproved, the reasons
for the disapproval, and that the state shall not make future payments under this section for
debt obligations issued after the date specified in that notice until its plan is approved. The
commissioner may also notify the district that until its plan is approved, other aids due the
district will be withheld after a date specified in the notice.

Subd. 9.

State bond rating.

If the commissioner of finance determines that the
credit rating of the state would be adversely affected thereby, the commissioner of finance
shall not issue warrants under subdivision 2 for the payment of principal or interest on any
debt obligations for which a district did not, prior to their issuance, obligate itself to be
bound by the provisions of this section.

Subd. 10.

Continuing disclosure agreements.

The commissioner of finance
may enter into written agreements or contracts relating to the continuing disclosure of
information needed to facilitate the ability of school districts to issue debt obligations
according to federal securities laws, rules, and regulations, including securities and
exchange commission rules and regulations, section 240.15c2-12. Such agreements or
contracts may be in any form the commissioner of finance deems reasonable and in the
state's best interests.

new text begin EFFECTIVE DATE. new text end

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

Sec. 21.

Minnesota Statutes 2006, section 127A.45, subdivision 16, is amended to read:

Subd. 16.

Payments to third parties.

Notwithstanding subdivision 3, the current
year aid payment percentage of the amounts under section 123A.26, subdivision 3 new text begin and
section 124D.041 new text end , shall be paid in equal installments on August 30, December 30, and
March 30, with a final adjustment payment on October 30 of the next fiscal year of the
remaining amount.

Sec. 22.

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

Subd. 2.

Abatements.

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

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

(2) the ratio of:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Sec. 23.

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

Subd. 3.

Excess tax increment.

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

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

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

(2) the ratio of:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Sec. 24.

Laws 2007, chapter 146, article 1, section 24, subdivision 2, is amended to
read:

Subd. 2.

General education aid.

For general education aid under Minnesota
Statutes, section 126C.13, subdivision 4:

	$	deleted text begin 5,618,342,000 deleted text end new text begin 5,600,647,000 new text end	.....	2008
	$	deleted text begin 5,618,342,000 deleted text end new text begin 5,650,587,000 new text end	.....	2009

The 2008 appropriation includes deleted text begin $531,733,000 deleted text end new text begin $536,251,000 new text end for 2007 and
deleted text begin $5,073,250,000 deleted text end new text begin $5,064,396,000 new text end for 2008.

The 2009 appropriation includes deleted text begin $546,314,000 deleted text end new text begin $543,752,000 new text end for 2008 and
deleted text begin $5,072,028,000 deleted text end new text begin $5,106,835,000 new text end for 2009.

Sec. 25.

Laws 2007, First Special Session chapter 2, article 1, section 11, subdivision
1, is amended to read:

Subdivision 1. Total Appropriation

$

deleted text begin 584,000 deleted text end new text begin 148,000 new text end

The appropriations in this section are from
the general fund. The amounts that may be
spent for each purpose are specified in the
following subdivisions.

Sec. 26.

Laws 2007, First Special Session chapter 2, article 1, section 11, subdivision
2, is amended to read:

Subd. 2. Independent School District No. 239, Rushford-Peterson

(a) Flood Enrollment Impact Aid

89,000

The commissioner of education shall pay to
the school district flood enrollment impact
aid equal to $5,394 times the number of
pupils lost as a result of the floods of August
2007. The district must provide to the
commissioner of education documentation
of the number of pupils in average daily
membership lost as a result of the flood.

(b) deleted text begin Disaster Relief Facilities Grant deleted text end

deleted text begin 250,000 deleted text end

deleted text begin For facilities cleanup, repair, and replacement
costs related to the floods of August 2007 not
covered by the district's insurance settlement
or through Federal Emergency Management
Agency payments. The commissioner of
education may request the school district
to provide necessary information before
awarding a grant.
deleted text end

deleted text begin (c) deleted text end Pupil Transportation Aid

40,000

For increased costs associated with
transporting students as a result of the floods
of August 2007.

Sec. 27.

Laws 2007, First Special Session chapter 2, article 1, section 11, subdivision
6, is amended to read:

Subd. 6. Disaster Relief Facilities Grants to Other Districts

deleted text begin 90,000 deleted text end new text begin 14,000 new text end

For facilities cleanup, repair, and replacement
costs related to the floods of August 2007 not
covered by the district's insurance settlement
or through Federal Emergency Management
Agency payments. The commissioner of
education may request the school district
to provide necessary information before
awarding a grant. School districts not
included in subdivisions 2 to 5 must be given
priority in the allocation of this appropriation.

Sec. 28. new text begin ENROLLMENT AND TRANSPORTATION AID.
new text end

new text begin For fiscal year 2010 only, Independent School District No. 239, Rushford-Peterson,
is eligible for school district flood enrollment aid and aid for increased transportation costs
equal to $158,000 as a result of the floods of August 2007. Of this amount, $40,000 is
for increased costs associated with transporting students.
new text end

Sec. 29. new text begin LIMITATION ON NEW ALTERNATIVE COMPENSATION SCHOOL
DISTRICTS AND CHARTER SCHOOLS, FISCAL YEARS 2009 TO 2013.
new text end

new text begin Notwithstanding Minnesota Statutes, sections 122A.413; 122A.414; 122A.415;
122A.416; and 126C.10, subdivisions 34, 35, and 36, the Department of Education must
limit the participation in the alternative teacher pay program to those district sites and
charter schools that received alternative compensation revenue in fiscal year 2008 or those
district sites and charter schools that have submitted an application, under Minnesota
Statutes, section 122A.414, by February 28, 2008, for fiscal year 2009 alternative
compensation participation. This limitation applies to fiscal year 2009 through fiscal
year 2013. No additional district sites or charter schools may be approved until after
June 30, 2013.
new text end

Sec. 30. new text begin SPARSITY, ADJUSTMENT AID, LANCASTER.
new text end

new text begin For fiscal year 2009 only, Independent School District No. 356, Lancaster, is eligible
to receive sparsity adjustment aid equal to $82,000.
new text end

Sec. 31.

new text begin SPARSITY TRANSPORTATION LEVY.
new text end

new text begin A school district that is eligible to receive elementary or secondary sparsity revenue,
under Minnesota Statutes, section 126C.10, subdivisions 7 and 8, may levy to pay for
transportation costs. The total amount of the levy must not exceed $80 times the adjusted
marginal cost pupil units in the district for the year in which the levy is certified.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2009 only.
new text end

Sec. 32. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

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

new text begin Subd. 2. new text end

new text begin Independent School District No. 239, Rushford-Peterson. new text end

new text begin For school
district flood enrollment impact aid as a result of the floods of August 2007.
new text end

new text begin $ new text end

new text begin 158,000 new text end

new text begin ..... new text end

new text begin 2009 new text end

new text begin The base appropriation for fiscal year 2010 is $158,000. The base appropriation for
later years is zero.
new text end

new text begin The district must provide to the commissioner of education documentation of
the additional pupil transportation costs and the number of pupils in average daily
membership lost as a result of the flood.
new text end

new text begin Up to $40,000 is for increased costs associated with transporting students as a result
of the floods of August 2007.
new text end

new text begin Subd. 3. new text end

new text begin Independent School District No. 356, Lancaster. new text end

new text begin For sparsity adjustment
aid.
new text end

new text begin $ new text end

new text begin 82,000 new text end

new text begin ..... new text end

new text begin 2009 new text end

new text begin This is a onetime appropriation.
new text end

Sec. 33. new text begin REPEALER.
new text end

new text begin (a) Minnesota Statutes 2006, section 126C.21, subdivision 1, new text end new text begin is repealed for revenue
for fiscal year 2009 and later.
new text end

new text begin (b) Minnesota Statutes 2006, section 126C.10, subdivisions 35 and 36, new text end new text begin are repealed
for revenue for fiscal year 2010 and later.
new text end

new text begin (c) Minnesota Statutes 2006, section 127A.45, subdivision 7a, new text end new text begin is repealed.
new text end

new text begin (d) Minnesota Statutes 2007 Supplement, section 126C.10, subdivision 34, new text end new text begin is
repealed for revenue for fiscal year 2010 and later.
new text end

new text begin (e) Laws 2007, First Special Session chapter 2, article 1, section 11, subdivisions 3,
and 4, new text end new text begin are repealed.
new text end

ARTICLE 2

EDUCATION EXCELLENCE

Section 1.

new text begin [1.1499] STATE SPORT.
new text end

new text begin Ice hockey is adopted as the official sport of the state of Minnesota.
new text end

Sec. 2.

new text begin [120B.17] MINNESOTA VIRTUAL EDUCATION PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Program. new text end

new text begin A state of Minnesota virtual education program is
established for teachers and students to improve and enhance teacher instruction and
student learning through integration of technology and online learning. The commissioner
of education shall establish the program and develop a selection of online courses for
students and lesson plans for teachers. The online student courses shall be established
for grades 6 through 12.
new text end

new text begin Subd. 2. new text end

new text begin Scope and requirements. new text end

new text begin (a) The student courses and teacher lesson plans
shall be developed by department staff, content experts, licensed Minnesota teachers,
licensed administrators, and business representatives. The courses must be aligned to
the Minnesota academic standards established in Minnesota Rules, chapter 3501. The
commissioner of education, in working with qualified individuals, must establish at
least ten student courses and teacher lesson plans that will be available to students and
teachers no later than the 2009-2010 school year. The commissioner must give priority
in the development of courses and lesson plans to science, technology, engineering,
mathematics, and advanced courses. The courses available to students must be monitored
and delivered by licensed Minnesota teachers under section 122A.16.
new text end

new text begin (b) School districts and charter schools participating in the program must:
new text end

new text begin (1) submit a letter of intent to the commissioner of education;
new text end

new text begin (2) allow students to participate in the program;
new text end

new text begin (3) train teachers to monitor and deliver courses;
new text end

new text begin (4) allow students to receive graduation credit, if appropriate, for successful
completion of the courses;
new text end

new text begin (5) issue grades to students enrolled in the online courses; and
new text end

new text begin (6) report progress to the department on student participation and completion rates.
new text end

new text begin Subd. 3. new text end

new text begin Report. new text end

new text begin The commissioner of education must submit a report to the chairs
of the house of representatives and senate education committees by October 1, 2010,
assessing the progress and development of the program.
new text end

Sec. 3.

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

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin Subd. 2. new text end

new text begin Growth. new text end

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

new text begin Subd. 3. new text end

new text begin Value-added. new text end

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

new text begin Subd. 4. new text end

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

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

new text begin Subd. 5. new text end

new text begin Adequate yearly progress. new text end

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

new text begin Subd. 6. new text end

new text begin State growth norm. new text end

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

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

Subd. 1a.

Statewide and local assessments; results.

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

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

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

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

(c) Reporting of assessment results must:

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

(2) include, by no later than the 2008-2009 school year, a new text begin growth-based, new text end value-added
deleted text begin component that is in addition to a measure for student achievement growth over time deleted text end new text begin
indicator of student achievement under section 120B.35, subdivision 3, paragraph (b) new text end ; and

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

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

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

Subdivision 1.

Educational accountability and public reporting.

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

Subd. 2.

Statewide testing.

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

Subd. 3.

Educational accountability.

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

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

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

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

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

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

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

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

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

Subd. 4.

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

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

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

Subdivision 1.

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

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

Subd. 2.

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

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

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

(c) The commissioner must:

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

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

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

Subd. 3.

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

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

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

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

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

(c) deleted text begin If a district has an accountability plan that includes gains-based analysis or
"value-added" assessment, the commissioner shall, to the extent practicable, incorporate
those measures in determining whether the district or school site meets expectations. The
department must coordinate with the district in evaluating school sites and continuous
improvement plans, consistent with best practices. deleted text end new text begin If a district has an accountability
plan that includes other growth-based value-added analysis, the commissioner may, to
the extent practicable and consistent with this section, incorporate those measures in
determining whether the district or school site shows growth. When reporting student
performance under section 120B.36, subdivision 1, the commissioner annually, beginning
July 1, 2011, must report two core measures indicating the extent to which current high
school graduates are being prepared for postsecondary academic and career opportunities:
new text end

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

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

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

Subd. 4.

Improving schools.

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

Subd. 5.

Improving graduation rates for students with emotional or behavioral
disorders.

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

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

new text begin EFFECTIVE DATE. new text end

new text begin Subdivision 3, paragraph (b), applies to students in the
2009-2010 school year and later. Subdivision 3, paragraph (c), applies to students in the
2010-2011 school year and later. Subdivision 4 applies in the 2011-2012 school year
and later.
new text end

Sec. 7.

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

120B.36 SCHOOL ACCOUNTABILITY; APPEALS PROCESS.

Subdivision 1.

School performance report cards.

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

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

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

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

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

Subd. 2.

Adequate yearly progress data.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2006, section 122A.21, is amended to read:

122A.21 TEACHERS' AND ADMINISTRATORS' LICENSES; FEES new text begin ;
LICENSURE VIA PORTFOLIO new text end .

new text begin (a) new text end Each application for the issuance, renewal, or extension of a license to teach new text begin ,
including candidates for licensure via portfolio under paragraph (b), new text end must be accompanied
by a processing fee of $57. Each application for issuing, renewing, or extending the
license of a school administrator or supervisor must be accompanied by a processing fee
in the amount set by the Board of Teaching. The processing fee for a teacher's license and
for the licenses of supervisory personnel must be paid to the executive secretary of the
appropriate board. The executive secretary of the board shall deposit the fees with the
commissioner of finance. The fees as set by the board are nonrefundable for applicants not
qualifying for a license. However, a fee must be refunded by the commissioner of finance
in any case in which the applicant already holds a valid unexpired license. The board may
waive or reduce fees for applicants who apply at the same time for more than one license.

new text begin (b) A qualified candidate may use licensure via portfolio to obtain an initial
licensure or to add a licensure field. A candidate for initial licensure must submit one
portfolio demonstrating pedagogical competence and one portfolio demonstrating
content competence consistent with the applicable Board of Teaching licensure rules. A
candidate seeking to add a licensure field must submit one portfolio demonstrating content
competence consistent with the Board of Teaching licensure rule. Candidates must
submit all portfolios to the Educator Licensing Division at the Minnesota Department of
Education. A candidate must pay a $500 fee for the first portfolio submitted for review and
a $250 fee for any portfolio submitted subsequently. The fees must be paid to the executive
secretary of the Board of Teaching. The revenue generated from the fee must be deposited
in an account in the state government special revenue fund. Money in the account,
including interest earned, is appropriated to the board for the operation of licensure via
portfolio. The fees as set by the board are nonrefundable for applicants not qualifying for
a license. The board may waive or reduce fees for candidates based on financial need.
new text end

Sec. 10.

Minnesota Statutes 2006, section 122A.415, is amended by adding a
subdivision to read:

new text begin Subd. 4. new text end

new text begin Basic alternative teacher compensation aid. new text end

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

new text begin (b) Notwithstanding paragraph (a) and subdivision 1, the state total basic alternative
teacher compensation aid entitlement must not exceed $46,781,000 for fiscal year 2010
and $46,538,000 for fiscal year 2011 and later. The commissioner must limit the amount
of alternative teacher compensation aid approved under this section so as not to exceed
these limits.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2010
and later.
new text end

Sec. 11.

Minnesota Statutes 2006, section 122A.415, is amended by adding a
subdivision to read:

new text begin Subd. 5. new text end

new text begin Alternative teacher compensation levy. new text end

new text begin For fiscal year 2010 and later,
the alternative teacher compensation levy for a district receiving basic alternative teacher
compensation aid equals the product of: (1) the difference between the district's alternative
teacher compensation revenue, under subdivision 1, and the district's basic alternative
teacher compensation aid, under subdivision 4; times (2) the lesser of one or the ratio of
the district's adjusted net tax capacity per adjusted pupil unit to $5,913.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2010
and later.
new text end

Sec. 12.

Minnesota Statutes 2006, section 122A.415, is amended by adding a
subdivision to read:

new text begin Subd. 6. new text end

new text begin Alternative teacher compensation aid. new text end

new text begin (a) For fiscal year 2010 and
later, a district's alternative teacher compensation equalization aid equals the district's
alternative teacher compensation revenue, minus the district's basic alternative teacher
compensation aid, minus the district's alternative teacher compensation levy. If a district
does not levy the entire amount permitted under subdivision 5, the alternative teacher
compensation equalization aid must be reduced in proportion to the actual amount levied.
new text end

new text begin (b) A district's alternative teacher compensation aid equals the sum of the
district's basic alternative teacher compensation aid and the district's alternative teacher
compensation equalization aid.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2010
and later.
new text end

Sec. 13.

Minnesota Statutes 2006, section 122A.72, is amended by adding a
subdivision to read:

new text begin Subd. 6. new text end

new text begin Teacher institute functions. new text end

new text begin A teacher institute shall perform functions
according to this subdivision. The teacher institute shall assist teachers in providing
advanced training during the summer months to licensed mathematics and science
teachers in the areas of content knowledge and effective instruction practices. The teacher
may be eligible for graduate-level credits upon successful completion of the institute. The
application process and criteria for admission to the teacher institute shall be established
by the commissioner of education.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 14.

new text begin [123B.881] REGIONAL PUPIL TRANSPORTATION SERVICES.
new text end

new text begin Three or more contiguous school districts in Hennepin County may enter into a
cooperative agreement to provide pupil transportation services upon a majority vote of
the school board. School districts that choose to participate in a cooperative agreement
under this section must agree to jointly provide transportation services to all students
who attend school in the participating school districts. School districts that choose to
participate in a cooperative agreement under this section may jointly operate bus garages
and maintenance facilities. School districts that agree to enter a cooperative agreement
under this section must report to the legislature by January 15 on the third year after
the inception of the cooperative agreement. The report must analyze the cost savings
and operating efficiencies to the districts, as well as the impacts on school bus drivers,
school bus maintenance workers, clerical workers, administrative workers, and technical
workers assigned to school bus duties.
new text end

Sec. 15.

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

Subd. 5.

Authorization; notification.

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

Sec. 16.

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

Subd. 3.

Authorization; notice; limitations on enrollment.

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

(b) Supplemental online learning notification to the enrolling district upon student
deleted text begin enrollment in deleted text end new text begin application to new text end the online learning deleted text begin program deleted text end new text begin provider new text end will include the courses
or program, credits to be awarded, new text begin and new text end the start date of online enrollment deleted text begin , and confirmation
that the courses will meet the student's graduation plan deleted text end . new text begin An online learning provider
must make available to the enrolling district the course syllabus in a format established
by the commissioner that identifies the state standards met by the course, content
outline, assessment requirements, expectations for actual teacher contact time, other
student-to-teacher communication, and academic support for supplemental online courses
taken by students in the enrolling district. Within 15 days after the online learning provider
makes information in this paragraph available to the enrolling district, the enrolling district
must either confirm or deny to the online provider that the student, parent or guardian, and
enrolling district have agreed the courses meet the student's graduation requirements. An
online learning course or program that meets or exceeds a graduation standard or grade
progression requirements at the enrolling district as demonstrated on the online provider's
syllabus must be considered to meet the corresponding graduation requirements of the
student in the enrolling district. new text end A student may enroll in supplemental online learning
courses up to the midpoint of the enrolling district's term. The enrolling district may waive
this requirement for special circumstances and upon acceptance by the online provider.

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

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

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

new text begin (f) The online provider must report student progress to the student, parent or
guardian, and enrolling district in a manner specified by the commissioner unless
previously agreed upon by the enrolling district and the online provider. The enrolling
district must designate a contact person to assist in the facilitation and monitoring of
student progress.
new text end

Sec. 17.

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

Subd. 4.

Online learning parameters.

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

(b) An online learning student may:

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

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

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

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

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

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

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

Sec. 18.

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

Subd. 7.

Department of Education.

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

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

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

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

Sec. 19.

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

Subd. 10.

Online Learning Advisory Council.

(a) An Online Learning Advisory
Council is established under section 15.059, except that the term for each council member
shall be three years. The advisory council is composed of 12 members from throughout
the state who have demonstrated experience with or interest in online learning. The
members of the council shall be appointed by the commissioner. The advisory council
shall bring to the attention of the commissioner any matters related to online learning and
provide input to the department in matters related, but not restricted, to:

(1) quality assurance;

(2) teacher qualifications;

(3) program approval;

(4) special education;

(5) attendance;

(6) program design and requirements; and

(7) fair and equal access to programs.

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

new text begin (b) Notwithstanding section 15.059, subdivision 5, the council expires June 30, 2009.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 20.

Laws 2007, chapter 146, article 2, section 46, subdivision 11, is amended to
read:

Subd. 11.

Statewide testing and reporting system.

For the statewide testing and
reporting system under Minnesota Statutes, section 120B.30:

	$	15,150,000	.....	2008
	$	deleted text begin 15,150,000 deleted text end new text begin 13,000,000 new text end	.....	2009

Any testing contracts awarded by the commissioner using appropriations in this
subdivision must include as part of that testing contract a method to vertically link testing
questions across grade levels for the purposes of working towards a statewide growth
model.

deleted text begin $1,150,000 each year is for the value-added index assessment model.
deleted text end

Any balance in the first year does not cancel but is available in the second year.

new text begin The base for fiscal year 2010 and later is $13,000,000.
new text end

Sec. 21.

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

Subd. 13.

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

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

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

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

deleted text begin The base appropriation for fiscal year 2010 and later is $2,000,000 deleted text end new text begin This is a onetime
appropriation new text end .

Sec. 22.

Laws 2007, chapter 146, article 2, section 46, subdivision 19, is amended to
read:

Subd. 19.

Educational Planning and Assessment System (EPAS) program.

For
the Educational Planning and Assessment System (EPAS) program under Minnesota
Statutes, section 120B.128:

	$	deleted text begin 829,000 deleted text end new text begin 600,000 new text end	.....	2008
	$	deleted text begin 829,000 deleted text end new text begin 400,000 new text end	.....	2009

Any balance in the first year does not cancel but is available in the second year.
new text begin This is a onetime appropriation.
new text end

Sec. 23.

Laws 2007, chapter 146, article 2, section 46, subdivision 20, is amended to
read:

Subd. 20.

College-level examination program (CLEP).

For the college-level
examination program (CLEP) under Minnesota Statutes, section 120B.131:

	$	deleted text begin 1,650,000 deleted text end new text begin 1,000,000 new text end	.....	2008
	$	deleted text begin 1,650,000 deleted text end new text begin 500,000 new text end	.....	2009

Any balance in the first year does not cancel but is available in the second year.
new text begin This is a onetime appropriation.
new text end

Sec. 24.

Laws 2007, chapter 146, article 3, section 23, subdivision 2, is amended to
read:

Subd. 2.

Report.

new text begin (a) new text end The task force must submit to the education policy and finance
committees of the legislature by February 15, deleted text begin 2008 deleted text end new text begin 2009 new text end , a report that identifies and
clearly and concisely explains each provision in state law or rule that exceeds deleted text begin or expands
upon deleted text end a minimum federal requirement contained in law or regulation for providing special
education programs and services to eligible students. The report also must recommend
which state deleted text begin provisions deleted text end new text begin statutes and rules new text end that exceed deleted text begin or expand upon deleted text end a minimum federal
requirement may be amended to conform with minimum federal requirements new text begin or made
more effective as determined by a majority of the task force members new text end . new text begin The task force must
recommend rules governing the use of aversive and deprivation procedures by school
district employees or persons under contract with a school district. new text end The task force expires
when it submits its report to the legislature.

new text begin (b) Consistent with subdivision 1, the Department of Education member of the
task force representing regulators shall be replaced with a parent advocate selected by a
statewide organization that advocates on behalf of families with children with disabilities.
new text end

new text begin (c) The Department of Education must provide technical assistance at the request of
the task force.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 25.

Laws 2007, chapter 146, article 3, section 24, subdivision 9, is amended to
read:

Subd. 9.

Special Education Task Force.

For the task force to compare federal
and state special education requirements:

	$	20,000	.....	2008
	new text begin $ new text end	new text begin 20,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

This is a onetime appropriation.

Sec. 26. new text begin IMPLEMENTING A STUDENT GROWTH-BASED VALUE-ADDED
SYSTEM.
new text end

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 27. new text begin GROWTH-BASED VALUE-ADDED SYSTEM.
new text end

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 28. new text begin SCHOOL DISTRICT PLANS TO IMPROVE STUDENTS' ACADEMIC
ACHIEVEMENT.
new text end

new text begin Subdivision 1. new text end

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

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

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

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

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

new text begin (b) A district must address the elements considered by the advisory task force on
improving students' academic achievement, to the extent those elements are implicated in
the district's plan.
new text end

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

new text begin Subd. 2. new text end

new text begin Plan. new text end

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 29. new text begin ADVISORY TASK FORCE ON IMPROVING STUDENTS'
ACADEMIC ACHIEVEMENT.
new text end

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

new text begin (d) The advisory task force expires on February 16, 2009, or on the date the report
required under this section is submitted, whichever is later.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 30. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

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

new text begin Subd. 2. new text end

new text begin Minnesota virtual education program. new text end

new text begin To develop and administer the
Minnesota virtual education program under Minnesota Statutes, section 120B.17:
new text end

new text begin $ new text end

new text begin 200,000 new text end

new text begin ..... new text end

new text begin 2009 new text end

new text begin Subd. 3. new text end

new text begin Mathematics and science teacher centers and institutes. new text end

new text begin For
mathematics and science teacher centers and institutes:
new text end

new text begin $ new text end

new text begin 400,000 new text end

new text begin ..... new text end

new text begin 2009 new text end

new text begin Subd. 4. new text end

new text begin Best practices. new text end

new text begin (a) For best practices grants:
new text end

new text begin $ new text end

new text begin 910,000 new text end

new text begin ..... new text end

new text begin 2009 new text end

new text begin (b) $275,000 is for a grant to the Minnesota Humanities Commission under
Minnesota Statutes, section 138.911.
new text end

new text begin (c) $200,000 is for a grant to the Minnesota Historical Society.
new text end

new text begin (d) $160,000 is for a grant to A Chance to Grow/New Visions for the Minnesota
Learning Resource Center's comprehensive training program for education professionals
charged with helping children acquire basic reading and mathematic skills.
new text end

new text begin (e) $275,000 is for the Principal's Leadership Institute under Minnesota Statutes,
section 122A.74.
new text end

new text begin (f) This is a onetime appropriation.
new text end

ARTICLE 3

FACILITIES AND ACCOUNTING

Section 1.

Minnesota Statutes 2007 Supplement, section 123B.54, is amended to read:

123B.54 DEBT SERVICE APPROPRIATION.

(a) deleted text begin $14,813,000 deleted text end new text begin $14,814,000 new text end in fiscal year 2008, deleted text begin $11,124,000 deleted text end new text begin $9,109,000 new text end in fiscal
year 2009, deleted text begin $8,866,000 deleted text end new text begin $7,286,000 new text end in fiscal year 2010, and deleted text begin $6,631,000 deleted text end new text begin $6,878,000 new text end in
fiscal year 2011 and later are appropriated from the general fund to the commissioner of
education for payment of debt service equalization aid under section 123B.53.

(b) The appropriations in paragraph (a) must be reduced by the amount of any
money specifically appropriated for the same purpose in any year from any state fund.

Sec. 2.

Minnesota Statutes 2006, section 123B.62, is amended to read:

123B.62 BONDS FOR CERTAIN CAPITAL FACILITIES.

(a) In addition to other bonding authority, with approval of the commissioner, a
district may issue general obligation bonds for certain capital projects under this section.
The bonds must be used only to make capital improvements including:

(1) under section 126C.10, subdivision 14, total operating capital revenue uses
specified in clauses (4), (6), (7), (8), (9), and (10);

(2) the cost of energy modifications;

(3) improving disability accessibility to school buildings; deleted text begin and
deleted text end

(4) bringing school buildings into compliance with life and safety codes and fire
codes deleted text begin . deleted text end new text begin ; and new text end

new text begin (5) modifying buildings and equipment for security.
new text end

(b) Before a district issues bonds under this subdivision, it must publish notice
of the intended projects, the amount of the bond issue, and the total amount of district
indebtedness.

(c) A bond issue tentatively authorized by the board under this subdivision becomes
finally authorized unless a petition signed by more than 15 percent of the registered voters
of the district is filed with the school board within 30 days of the board's adoption of a
resolution stating the board's intention to issue bonds. The percentage is to be determined
with reference to the number of registered voters in the district on the last day before the
petition is filed with the board. The petition must call for a referendum on the question of
whether to issue the bonds for the projects under this section. The approval of 50 percent
plus one of those voting on the question is required to pass a referendum authorized
by this section.

(d) The bonds must be paid off within deleted text begin ten deleted text end new text begin 15 new text end years of issuance. The bonds must be
issued in compliance with chapter 475, except as otherwise provided in this section. A tax
levy must be made for the payment of principal and interest on the bonds in accordance
with section 475.61. The sum of the tax levies under this section and section 123B.61 for
each year must not exceed the limit specified in section 123B.61. The levy for each year
must be reduced as provided in section 123B.61. A district using an excess amount in the
debt redemption fund to retire the bonds shall report the amount used for this purpose to
the commissioner by July 15 of the following fiscal year. A district having an outstanding
capital loan under section 126C.69 or an outstanding debt service loan under section
126C.68 must not use an excess amount in the debt redemption fund to retire the bonds.

(e) Notwithstanding paragraph (d), bonds issued by a district within the first
five years following voter approval of a combination according to section 123A.37,
subdivision 2, must be paid off within 20 years of issuance. All the other provisions and
limitation of paragraph (d) apply.

Sec. 3.

Minnesota Statutes 2006, section 126C.45, is amended to read:

126C.45 ICE ARENA LEVY.

(a) Each year, an independent school district operating and maintaining an ice arena,
may levy for the net operational costs of the ice arena. The levy may not exceed deleted text begin 90
percent of deleted text end the net actual costs of operation of the arena for the previous year. Net actual
costs are defined as operating costs less any operating revenues.

(b) Any district operating and maintaining an ice arena must demonstrate to the
satisfaction of the Office of Monitoring in the department that the district will offer equal
sports opportunities for male and female students to use its ice arena, particularly in areas
of access to prime practice time, team support, and providing junior varsity and younger
level teams for girls' ice sports and ice sports offerings.

Sec. 4. new text begin FUND TRANSFER.
new text end

new text begin Subdivision 1. new text end

new text begin Balaton. new text end

new text begin Notwithstanding Minnesota Statutes, section 123B.79 or
123B.80, on June 30, 2008, Independent School District No. 411, Balaton, may transfer
up to $70,000 from its reserved for operating capital account to its undesignated general
fund balance without making a levy reduction.
new text end

new text begin Subd. 2. new text end

new text begin East Central School District. new text end

new text begin Notwithstanding Minnesota Statutes,
section 123B.79 or 123B.80, on June 30, 2008, Independent School District No. 2580,
East Central, may transfer up to $300,000 from its reserved for operating capital account
to its undesignated general fund balance without making a levy reduction.
new text end

new text begin Subd. 3. new text end

new text begin Hills-Beaver Creek. new text end

new text begin (a) Notwithstanding Minnesota Statutes, section
123B.79 or 123B.80, on June 30, 2008, Independent School District No. 671, Hills-Beaver
Creek, may transfer up to $260,000 from its reserved for disabled accessibility account to
its undesignated general fund balance without making a levy reduction.
new text end

new text begin (b) Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, on June
30, 2008, Independent School District No. 671, Hills-Beaver Creek, may transfer up to
$100,000 from its reserved for operating capital account to its undesignated general fund
balance without making a levy reduction.
new text end

new text begin Subd. 4. new text end

new text begin Rocori School District. new text end

new text begin Notwithstanding Minnesota Statutes, section
123B.79 or 123B.80, on June 30, 2008, Independent School District No. 750, Rocori,
may transfer up to $82,000 from its reserved for disabled accessibility account to its
undesignated general fund balance without making a levy reduction.
new text end

new text begin Subd. 5. new text end

new text begin Virginia. new text end

new text begin Notwithstanding Minnesota Statutes, sections 123B.79, 123B.80,
and 475.61, subdivision 4, on June 30, 2008, Independent School District No. 706,
Virginia, may transfer up to $100,000 from its debt redemption fund to its undesignated
general fund balance without making a levy reduction.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 5. new text begin ALTERNATIVE FACILITIES REVENUE PROGRAM.
new text end

new text begin Notwithstanding the square foot limitations in Minnesota Statutes, section 123B.59,
subdivision 1, paragraph (a), clause (2), Independent School District No. 623, Roseville,
is eligible for the alternative facilities bonding and levy program as if the district has met
the square foot requirements of that program.
new text end

ARTICLE 4

NUTRITION

Section 1.

Minnesota Statutes 2006, section 124D.118, subdivision 4, is amended to
read:

Subd. 4.

Reimbursement.

In accordance with program guidelines, the
commissioner shall reimburse each participating public or nonpublic school deleted text begin 14 deleted text end new text begin 20 new text end cents
for each half-pint of milk that is served to kindergarten students and is not part of a school
lunch or breakfast reimbursed under section 124D.111 or 124D.1158.

Sec. 2.

Laws 2007, chapter 146, article 5, section 13, subdivision 3, is amended to read:

Subd. 3.

Traditional school breakfast; kindergarten milk.

For traditional school
breakfast aid and kindergarten milk under Minnesota Statutes, sections 124D.1158 and
124D.118:

	$	deleted text begin 5,460,000 deleted text end new text begin 5,583,000 new text end	.....	2008
	$	deleted text begin 5,695,000 deleted text end new text begin 6,396,000 new text end	.....	2009

ARTICLE 5

STATE AGENCIES

Section 1.

new text begin [124D.805] COMMITTEE ON AMERICAN INDIAN EDUCATION
PROGRAMS.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The commissioner of education shall create an
American Indian education committee. The commissioner must appoint the members
of the committee. Members must include representatives of tribal bodies, community
groups, parents of children eligible to be served by the programs, American Indian
administrators and teachers, persons experienced in the training of teachers for American
Indian education programs, persons involved in programs for American Indian children
in American Indian schools, and persons knowledgeable in the field of American Indian
education. Appointed members shall be representative of significant segments of the
population of American Indians.
new text end

new text begin Subd. 2. new text end

new text begin Committee to advise commissioner. new text end

new text begin The committee on American
Indian education programs shall advise the commissioner in the administration of the
commissioner's duties under sections 124D.71 to 124D.82 and other programs for the
education of American Indian people as determined by the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin Expenses. new text end

new text begin The committee members must not be reimbursed for expenses.
The commissioner must determine the membership terms and the duration of the
committee, which expire no later than June 30, 2020.
new text end

Sec. 2.

Laws 2007, chapter 146, article 7, section 4, is amended to read:

Sec. 4. APPROPRIATIONS; DEPARTMENT OF EDUCATION.

Subdivision 1.

Department of Education.

Unless otherwise indicated, the sums
indicated in this section are appropriated from the general fund to the Department of
Education for the fiscal years designated.

Subd. 2.

Department.

(a) For the Department of Education:

	$	22,169,000	.....	2008
	$	deleted text begin 22,653,000 deleted text end new text begin 22,207,000 new text end	.....	2009

Any balance in the first year does not cancel but is available in the second year.

(b) $7,000 in fiscal year 2008 is for GRAD test rulemaking.

(c) $7,000 in fiscal year 2008 is for rulemaking under section 3.

(d) $40,000 each year is for an early hearing loss intervention coordinator under
Minnesota Statutes, section 125A.63, subdivision 5. If the department expends federal
funds to employ a hearing loss coordinator under Minnesota Statutes, section 125.63,
subdivision 5, then the appropriation under this paragraph is reallocated for purposes of
employing a world languages coordinator.

(e) $260,000 each year is for the Minnesota Children's Museum.

(f) $41,000 each year is for the Minnesota Academy of Science.

(g) $619,000 in fiscal year 2008 and $632,000 in fiscal year 2009 are for the Board
of Teaching.

(h) $163,000 in fiscal year 2008 and $171,000 in fiscal year 2009 are for the Board
of School Administrators.

(i) $50,000 each year is for the Duluth Children's Museum.

(j) The expenditures of federal grants and aids as shown in the biennial budget
document and its supplements are approved and appropriated and shall be spent as
indicated.

(k) None of the amounts appropriated under this subdivision may be used for
Minnesota's Washington, D.C., office.

new text begin (l) $20,000 in fiscal year 2009 is for the outdoor education working group.
new text end

new text begin (m) $112,000 in fiscal year 2009 is for the administration of the online learning
program.
new text end

new text begin (n) $6,000 in fiscal year 2009 is for the Online Learning Advisory Council.
new text end

new text begin (o) $50,000 in fiscal year 2009 is for the State Advisory Board on Early Learning.
new text end

new text begin (p) $188,000 in fiscal year 2009 is for the administration of the school performance
report card.
new text end

new text begin (q) $100,000 in fiscal year 2009 is for the academic achievement plan. The
department shall not expend any funds unless a match of an equal amount of nonstate
funds has been received.
new text end

new text begin (r) The base for fiscal year 2010 and later is $21,914,000.
new text end

Sec. 3. new text begin OUTDOOR EDUCATION WORKING GROUP.
new text end

new text begin (a) The commissioner of natural resources shall coordinate a working group with the
commissioner of education to report recommendations to the legislature on the teaching of
outdoor education in grades 7 through 12.
new text end

new text begin (b) Each commissioner shall designate members of the working group and shall
include at least one parent, one representative of higher education, one outdoor educator,
and one representative from a sportsman or wildlife organization. The appointments and
designations must be completed by August 1, 2008.
new text end

new text begin (c) The working group must report recommendations, proposed changes, sources
of funding, and draft legislation to the legislative committees with jurisdiction over
kindergarten through grade 12 education policy and finance, and environment policy and
environment finance by January 15, 2009. The working group expires June 30, 2009.
new text end

ARTICLE 6

LIFELONG LEARNING

Section 1.

Minnesota Statutes 2006, section 121A.19, is amended to read:

121A.19 DEVELOPMENTAL SCREENING AID.

Each school year, the state must pay a district for each child or student screened by
the district according to the requirements of section 121A.17. The amount of state aid
for each child or student screened shall be: (1) deleted text begin $50 deleted text end new text begin $75 new text end for a child screened at age three;
(2) deleted text begin $40 deleted text end new text begin $50 new text end for a child screened at age four; (3) deleted text begin $30 deleted text end new text begin $40 new text end for a child screened at age five
or six prior to kindergarten; and (4) $30 for a student screened within 30 days after first
enrolling in a public school kindergarten if the student has not previously been screened
according to the requirements of section 121A.17. If this amount of aid is insufficient,
the district may permanently transfer from the general fund an amount that, when added
to the aid, is sufficient. Developmental screening aid shall not be paid for any student
who is screened more than 30 days after the first day of attendance at a public school
kindergarten, except if a student transfers to another public school kindergarten within
30 days after first enrolling in a Minnesota public school kindergarten program. In this
case, if the student has not been screened, the district to which the student transfers may
receive developmental screening aid for screening that student when the screening is
performed within 30 days of the transfer date.

Sec. 2.

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

Subdivision 1.

State total adult basic education aid.

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

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

(2) the lesser of:

(i) 1.03; or

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

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

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

Sec. 3.

Laws 2007, chapter 146, article 5, section 11, subdivision 1, is amended to read:

Subdivision 1.

Fiscal year 2007 replacement aid.

Independent School District No.
2899, Plainview-Elgin-Millville, is eligible for replacement deleted text begin aid deleted text end new text begin revenue new text end to offset its excess
fund balance penalty for fiscal year 2007. new text begin The aid adjustment must be made under Laws
2007, chapter 146, article 5, section 13, subdivision 5. The levy adjustment of $6,600
must be included as part of the district's property taxes for taxes payable in 2009.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Laws 2007, chapter 146, article 9, section 17, subdivision 4, is amended to read:

Subd. 4.

Health and developmental screening aid.

For health and developmental
screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

	$	deleted text begin 3,159,000 deleted text end new text begin 2,624,000 new text end	.....	2008
	$	deleted text begin 3,330,000 deleted text end new text begin 3,592,000 new text end	.....	2009

The 2008 appropriation includes $288,000 for 2007 and deleted text begin $2,871,000 deleted text end new text begin $2,336,000 new text end
for 2008.

The 2009 appropriation includes deleted text begin $319,000 deleted text end new text begin $259,000 new text end for 2008 and deleted text begin $3,011,000 deleted text end new text begin
$3,333,000 new text end for 2009.

Sec. 5. new text begin STATE ADVISORY BOARD ON EARLY LEARNING.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin A 12-member State Advisory Board on Early
Learning is established to make recommendations on the most efficient and effective way
to leverage state and federal funding streams for early childhood and child care programs.
The board must also consider the feasibility of coordinating or colocating early childhood
and child care programs in one state Office of Early Learning. The board shall also
review the Minnesota Early Learning Foundation recommendations and determine what
legislative changes, if any, need to be enacted and make recommendations by February
1 of each year to the governor and legislature, including proposed legislation on how to
most effectively create a high quality early childhood system in Minnesota in order to
improve the educational outcomes of children.
new text end

new text begin Subd. 2. new text end

new text begin Board members; terms. new text end

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

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

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

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

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

new text begin (5) four public members who are recognized experts in early care and education,
including one member appointed by the speaker of the house, one member appointed by
the minority leader of the house, one member appointed by the majority leader of the
senate, and one member appointed by the minority leader of the senate;
new text end

new text begin (6) two public members who are community or business leaders, including one
member appointed by the speaker of the house and one member appointed by the majority
leader of the senate; and
new text end

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

new text begin (b) Members appointed by the majority and minority leaders in the house and senate
serve three-year terms. Board members must nominate and elect a chair and other officers
from among the public members. Meetings shall be called by the chair or at the written
request of any three members. Members' terms, compensation, removal, and vacancies
are governed by Minnesota Statutes, section 15.0575, except that board members must
not be paid a per diem or reimbursed for any expenses associated with their membership
on the board.
new text end

new text begin (c) Appointing authorities must use their best efforts to ensure that the public
members of the board represent the communities of color.
new text end

new text begin Subd. 3. new text end

new text begin Board expiration. new text end

new text begin The State Advisory Board on Early Learning expires
January 1, 2013.
new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 7

PREKINDERGARTEN THROUGH GRADE 12 EDUCATION

FORECAST ADJUSTMENTS

A. GENERAL EDUCATION

Section 1.

Laws 2007, chapter 146, article 1, section 24, subdivision 3, is amended to
read:

Subd. 3.

Referendum tax base replacement aid.

For referendum tax base
replacement aid under Minnesota Statutes, section 126C.17, subdivision 7a:

$

deleted text begin 870,000 deleted text end new text begin 861,000 new text end

.....

2008

The 2008 appropriation includes deleted text begin $870,000 deleted text end new text begin $861,000 new text end for 2007 and $0 for 2008.

Sec. 2.

Laws 2007, chapter 146, article 1, section 24, subdivision 4, is amended to read:

Subd. 4.

Enrollment options transportation.

For transportation of pupils attending
postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation
of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

	$	deleted text begin 95,000 deleted text end new text begin 48,000 new text end	.....	2008
	$	deleted text begin 97,000 deleted text end new text begin 50,000 new text end	.....	2009

Sec. 3.

Laws 2007, chapter 146, article 1, section 24, subdivision 5, is amended to read:

Subd. 5.

Abatement revenue.

For abatement aid under Minnesota Statutes, section
127A.49:

	$	deleted text begin 1,343,000 deleted text end new text begin 1,333,000 new text end	.....	2008
	$	deleted text begin 1,347,000 deleted text end new text begin 1,629,000 new text end	.....	2009

The 2008 appropriation includes $76,000 for 2007 and deleted text begin $1,267,000 deleted text end new text begin $1,257,000 new text end
for 2008.

The 2009 appropriation includes deleted text begin $140,000 deleted text end new text begin $139,000 new text end for 2008 and deleted text begin $1,207,000 deleted text end new text begin
$1,490,000 new text end for 2009.

Sec. 4.

Laws 2007, chapter 146, article 1, section 24, subdivision 6, is amended to read:

Subd. 6.

Consolidation transition.

For districts consolidating under Minnesota
Statutes, section 123A.485:

	$	deleted text begin 565,000 deleted text end new text begin 240,000 new text end	.....	2008
	$	deleted text begin 212,000 deleted text end new text begin 339,000 new text end	.....	2009

The 2008 appropriation includes $43,000 for 2007 and deleted text begin $522,000 deleted text end new text begin $197,000 new text end for 2008.

The 2009 appropriation includes deleted text begin $57,000 deleted text end new text begin $21,000 new text end for 2008 and deleted text begin $155,000 deleted text end new text begin $318,000 new text end
for 2009.

Sec. 5.

Laws 2007, chapter 146, article 1, section 24, subdivision 7, is amended to read:

Subd. 7.

Nonpublic pupil education aid.

For nonpublic pupil education aid under
Minnesota Statutes, sections 123B.40 to 123B.43, and 123B.87:

	$	deleted text begin 16,290,000 deleted text end new text begin 15,601,000 new text end	.....	2008
	$	deleted text begin 16,620,000 deleted text end new text begin 16,608,000 new text end	.....	2009

The 2008 appropriation includes deleted text begin $1,606,000 deleted text end new text begin $1,214,000 new text end for 2007 and deleted text begin $14,684,000 deleted text end new text begin
$14,387,000 new text end for 2008.

The 2009 appropriation includes deleted text begin $1,631,000 deleted text end new text begin $1,598,000 new text end for 2008 and deleted text begin $14,989,000 deleted text end new text begin
$15,010,000 new text end for 2009.

Sec. 6.

Laws 2007, chapter 146, article 1, section 24, subdivision 8, is amended to read:

Subd. 8.

Nonpublic pupil transportation.

For nonpublic pupil transportation aid
under Minnesota Statutes, section 123B.92, subdivision 9:

	$	deleted text begin 21,551,000 deleted text end new text begin 20,755,000 new text end	.....	2008
	$	deleted text begin 21,392,000 deleted text end new text begin 21,007,000 new text end	.....	2009

The 2008 appropriation includes $2,124,000 for 2007 and deleted text begin $19,427,000 deleted text end new text begin $18,631,000 new text end
for 2008.

The 2009 appropriation includes deleted text begin $2,158,000 deleted text end new text begin $2,070,000 new text end for 2008 and deleted text begin $19,234,000 deleted text end new text begin
$18,937,000 new text end for 2009.

B. EDUCATION EXCELLENCE

Sec. 7.

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

Subd. 2.

Charter school building lease aid.

For building lease aid under Minnesota
Statutes, section 124D.11, subdivision 4:

	$	deleted text begin 31,875,000 deleted text end new text begin 32,817,000 new text end	.....	2008
	$	deleted text begin 36,193,000 deleted text end new text begin 37,527,000 new text end	.....	2009

The 2008 appropriation includes $2,814,000 for 2007 and deleted text begin $29,061,000 deleted text end new text begin $30,003,000 new text end
for 2008.

The 2009 appropriation includes deleted text begin $3,229,000 deleted text end new text begin $3,333,000 new text end for 2008 and deleted text begin $32,964,000 deleted text end new text begin
$34,194,000 new text end for 2009.

Sec. 8.

Laws 2007, chapter 146, article 2, section 46, subdivision 3, is amended to read:

Subd. 3.

Charter school startup cost aid.

For charter school startup cost aid
under Minnesota Statutes, section 124D.11:

	$	deleted text begin 1,896,000 deleted text end new text begin 1,801,000 new text end	.....	2008
	$	deleted text begin 2,161,000 deleted text end new text begin 1,987,000 new text end	.....	2009

The 2008 appropriation includes deleted text begin $241,000 deleted text end new text begin $239,000 new text end for 2007 and deleted text begin $1,655,000 deleted text end new text begin
$1,562,000 new text end for 2008.

The 2009 appropriation includes deleted text begin $183,000 deleted text end new text begin $173,000 new text end for 2008 and deleted text begin $1,978,000 deleted text end new text begin
$1,814,000 new text end for 2009.

Sec. 9.

Laws 2007, chapter 146, article 2, section 46, subdivision 4, is amended to read:

Subd. 4.

Integration aid.

For integration aid under Minnesota Statutes, section
124D.86, subdivision 5:

	$	deleted text begin 61,769,000 deleted text end new text begin 59,036,000 new text end	.....	2008
	$	deleted text begin 61,000,000 deleted text end new text begin 62,448,000 new text end	.....	2009

The 2008 appropriation includes $5,824,000 for 2007 and deleted text begin $55,945,000 deleted text end new text begin $53,212,000 new text end
for 2008.

The 2009 appropriation includes deleted text begin $6,216,000 deleted text end new text begin $5,912,000 new text end for 2008 and deleted text begin $54,784,000 deleted text end new text begin
$56,536,000 new text end for 2009.

Sec. 10.

Laws 2007, chapter 146, article 2, section 46, subdivision 6, is amended to
read:

Subd. 6.

Interdistrict desegregation or integration transportation grants.

For
interdistrict desegregation or integration transportation grants under Minnesota Statutes,
section 124D.87:

	$	deleted text begin 9,639,000 deleted text end new text begin 9,901,000 new text end	.....	2008
	$	deleted text begin 11,567,000 deleted text end new text begin 11,881,000 new text end	.....	2009

Sec. 11.

Laws 2007, chapter 146, article 2, section 46, subdivision 9, is amended to
read:

Subd. 9.

Tribal contract schools.

For tribal contract school aid under Minnesota
Statutes, section 124D.83:

	$	deleted text begin 2,238,000 deleted text end new text begin 2,207,000 new text end	.....	2008
	$	deleted text begin 2,422,000 deleted text end new text begin 2,392,000 new text end	.....	2009

The 2008 appropriation includes $204,000 for 2007 and deleted text begin $2,034,000 deleted text end new text begin $2,003,000 new text end
for 2008.

The 2009 appropriation includes deleted text begin $226,000 deleted text end new text begin $222,000 new text end for 2008 and deleted text begin $2,196,000 deleted text end new text begin
$2,170,000 new text end for 2009.

C. SPECIAL PROGRAMS

Sec. 12.

Laws 2007, chapter 146, article 3, section 24, subdivision 3, is amended to
read:

Subd. 3.

Aid for children with disabilities.

For aid under Minnesota Statutes,
section 125A.75, subdivision 3, for children with disabilities placed in residential facilities
within the district boundaries for whom no district of residence can be determined:

	$	deleted text begin 1,538,000 deleted text end new text begin 2,086,000 new text end	.....	2008
	$	deleted text begin 1,729,000 deleted text end new text begin 2,282,000 new text end	.....	2009

If the appropriation for either year is insufficient, the appropriation for the other
year is available.

Sec. 13.

Laws 2007, chapter 146, article 3, section 24, subdivision 4, is amended to
read:

Subd. 4.

Travel for home-based services.

For aid for teacher travel for home-based
services under Minnesota Statutes, section 125A.75, subdivision 1:

	$	deleted text begin 254,000 deleted text end new text begin 207,000 new text end	.....	2008
	$	deleted text begin 284,000 deleted text end new text begin 227,000 new text end	.....	2009

The 2008 appropriation includes $22,000 for 2007 and deleted text begin $232,000 deleted text end new text begin $185,000 new text end for 2008.

The 2009 appropriation includes deleted text begin $25,000 deleted text end new text begin $20,000 new text end for 2008 and deleted text begin $259,000 deleted text end new text begin $207,000 new text end
for 2009.

D. FACILITIES AND TECHNOLOGY

Sec. 14.

Laws 2007, chapter 146, article 4, section 16, subdivision 2, is amended to
read:

Subd. 2.

Health and safety revenue.

For health and safety aid according to
Minnesota Statutes, section 123B.57, subdivision 5:

	$	deleted text begin 190,000 deleted text end new text begin 254,000 new text end	.....	2008
	$	deleted text begin 179,000 deleted text end new text begin 103,000 new text end	.....	2009

The 2008 appropriation includes $20,000 for 2007 and deleted text begin $170,000 deleted text end new text begin $234,000 new text end for 2008.

The 2009 appropriation includes deleted text begin $18,000 deleted text end new text begin $26,000 new text end for 2008 and deleted text begin $161,000 deleted text end new text begin $77,000 new text end
for 2009.

Sec. 15.

Laws 2007, chapter 146, article 4, section 16, subdivision 3, is amended to
read:

Subd. 3.

Debt service equalization.

For debt service aid according to Minnesota
Statutes, section 123B.53, subdivision 6:

	$	deleted text begin 14,813,000 deleted text end new text begin 14,814,000 new text end	.....	2008
	$	deleted text begin 11,124,000 deleted text end new text begin 9,109,000 new text end	.....	2009

The 2008 appropriation includes deleted text begin $1,767,000 deleted text end new text begin $1,766,000 new text end for 2007 and deleted text begin $13,046,000 deleted text end new text begin
$13,048,000 new text end for 2008.

The 2009 appropriation includes deleted text begin $1,450,000 deleted text end new text begin $1,449,000 new text end for 2008 and deleted text begin $9,674,000 deleted text end new text begin
$7,660,000 new text end for 2009.

Sec. 16.

Laws 2007, chapter 146, article 4, section 16, subdivision 6, is amended to
read:

Subd. 6.

Deferred maintenance aid.

For deferred maintenance aid, according to
Minnesota Statutes, section 123B.591, subdivision 4:

	$	deleted text begin 3,290,000 deleted text end new text begin 3,232,000 new text end	.....	2008
	$	deleted text begin 2,667,000 deleted text end new text begin 2,627,000 new text end	.....	2009

The 2008 appropriation includes $0 for 2007 and deleted text begin $3,290,000 deleted text end new text begin $3,232,000 new text end for 2008.

The 2009 appropriation includes deleted text begin $365,000 deleted text end new text begin $359,000 new text end for 2008 and deleted text begin $2,302,000 deleted text end new text begin
$2,268,000 new text end for 2009.

Sec. 17.

Laws 2007, chapter 146, article 4, section 16, subdivision 8, is amended to
read:

Subd. 8.

School technology and operating capital aid grants.

For school
technology and operating capital grants under section 11:

	$	deleted text begin 38,145,000 deleted text end new text begin 38,236,000 new text end	.....	2008
	$	deleted text begin 52,676,000 deleted text end new text begin 52,454,000 new text end	.....	2009

This is a onetime appropriation.

E. NUTRITION

Sec. 18.

Laws 2007, chapter 146, article 5, section 13, subdivision 2, is amended to
read:

Subd. 2.

School lunch.

For school lunch aid according to Minnesota Statutes,
section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

	$	deleted text begin 12,022,000 deleted text end new text begin 12,094,000 new text end	.....	2008
	$	deleted text begin 12,166,000 deleted text end new text begin 12,394,000 new text end	.....	2009

Sec. 19.

Laws 2007, chapter 146, article 5, section 13, subdivision 4, is amended to
read:

Subd. 4.

Summer food service replacement aid.

For summer food service
replacement aid under Minnesota Statutes, section 124D.119:

	$	deleted text begin 150,000 deleted text end new text begin 127,000 new text end	.....	2008
	$	150,000	.....	2009

F. EARLY CHILDHOOD AND ADULT PROGRAMS

Sec. 20.

Laws 2007, chapter 146, article 9, section 17, subdivision 2, is amended to
read:

Subd. 2.

Early childhood family education aid.

For early childhood family
education aid under Minnesota Statutes, section 124D.135:

	$	deleted text begin 21,106,000 deleted text end new text begin 21,092,000 new text end	.....	2008
	$	deleted text begin 29,601,000 deleted text end new text begin 29,324,000 new text end	.....	2009

The 2008 appropriation includes $1,796,000 for 2007 and deleted text begin $19,310,000 deleted text end new text begin $19,296,000 new text end
for 2008.

The 2009 appropriation includes deleted text begin $2,145,000 deleted text end new text begin $2,144,000 new text end for 2008 and deleted text begin $27,456,000 deleted text end new text begin
$27,180,000 new text end for 2009.

Sec. 21.

Laws 2007, chapter 146, article 9, section 17, subdivision 3, is amended to
read:

Subd. 3.

School readiness.

For revenue for school readiness programs under
Minnesota Statutes, sections 124D.15 and 124D.16:

	$	deleted text begin 9,995,000 deleted text end new text begin 9,987,000 new text end	.....	2008
	$	10,095,000	.....	2009

The 2008 appropriation includes deleted text begin $909,000 deleted text end new text begin $901,000 new text end for 2007 and $9,086,000 for
2008.

The 2009 appropriation includes $1,009,000 for 2008 and $9,086,000 for 2009.

Sec. 22.

Laws 2007, chapter 146, article 9, section 17, subdivision 8, is amended to
read:

Subd. 8.

Community education aid.

For community education aid under
Minnesota Statutes, section 124D.20:

	$	deleted text begin 1,307,000 deleted text end new text begin 1,299,000 new text end	.....	2008
	$	deleted text begin 816,000 deleted text end new text begin 796,000 new text end	.....	2009

The 2008 appropriation includes $195,000 for 2007 and deleted text begin $1,112,000 deleted text end new text begin $1,104,000 new text end
for 2008.

The 2009 appropriation includes deleted text begin $123,000 deleted text end new text begin $122,000 new text end for 2008 and deleted text begin $693,000 deleted text end new text begin
$674,000 new text end for 2009.

Sec. 23.

Laws 2007, chapter 146, article 9, section 17, subdivision 9, is amended to
read:

Subd. 9.

Adults with disabilities program aid.

For adults with disabilities
programs under Minnesota Statutes, section 124D.56:

	$	deleted text begin 710,000 deleted text end new text begin 709,000 new text end	.....	2008
	$	710,000	.....	2009

The 2008 appropriation includes deleted text begin $71,000 deleted text end new text begin $70,000 new text end for 2007 and $639,000 for 2008.

The 2009 appropriation includes $71,000 for 2008 and $639,000 for 2009.

School districts operating existing adults with disabilities programs that are not fully
funded shall receive full funding for the program beginning in fiscal year 2008 before the
commissioner awards grants to other districts.

Sec. 24.

Laws 2007, chapter 146, article 9, section 17, subdivision 13, is amended to
read:

Subd. 13.

Adult basic education aid.

For adult basic education aid under
Minnesota Statutes, section 124D.531:

	$	deleted text begin 40,347,000 deleted text end new text begin 40,344,000 new text end	.....	2008
	$	deleted text begin 41,745,000 deleted text end new text begin 41,712,000 new text end	.....	2009

The 2008 appropriation includes $3,759,000 for 2007 and deleted text begin $36,588,000 deleted text end new text begin $36,585,000 new text end
for 2008.

The 2009 appropriation includes $4,065,000 for 2008 and deleted text begin $37,680,000 deleted text end new text begin $37,647,000 new text end
for 2009.