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CHAPTER 146--H.F.No. 2245

An act

relating to education; providing for policy and funding for early childhood, family, adult, and prekindergarten through grade 12 education including general education, education excellence, special programs, facilities and technology, nutrition and accounting, libraries, state agencies, pupil transportation standards, early childhood and adult programs; education forecast adjustments, and technical and conforming amendments; providing for task force and advisory groups; requiring reports; authorizing rulemaking; funding parenting centers; funding lead hazard reduction; appropriating money;

amending Minnesota Statutes 2006, sections 16A.152, subdivision 2; 119A.50, by adding a subdivision; 119A.52; 119A.535; 120A.22, subdivision 7; 120B.021, subdivision 1; 120B.022, subdivision 1; 120B.024; 120B.12, subdivision 2; 120B.132; 120B.15; 120B.30; 120B.31, subdivision 3; 120B.36, subdivision 1; 121A.17, subdivision 5; 122A.20, subdivision 1; 122A.61, by adding a subdivision; 122A.628, subdivision 2; 122A.72, subdivision 5; 123A.44; 123A.441; 123A.442; 123A.443; 123A.73, subdivision 8; 123B.02, by adding a subdivision; 123B.10, subdivision 1; 123B.143, subdivision 1; 123B.53, subdivision 1; 123B.54; 123B.57, subdivision 3; 123B.63, subdivision 3; 123B.77, subdivision 4; 123B.79, subdivisions 6, 8, by adding a subdivision; 123B.81, subdivisions 2, 4, 7; 123B.83, subdivision 2; 123B.88, subdivision 12; 123B.90, subdivision 2; 123B.92, subdivisions 1, 3; 124D.095, subdivisions 2, 3, 4, 7; 124D.10, subdivisions 4, 23a, 24; 124D.111, subdivision 1; 124D.128, subdivisions 1, 2, 3; 124D.13, subdivisions 1, 2, 11, by adding a subdivision; 124D.135, subdivisions 1, 3, 5, 6; 124D.15, subdivision 3; 124D.34, subdivision 7; 124D.454, subdivisions 2, 3; 124D.531, subdivisions 1, 4; 124D.65, subdivision 11; 124D.66, subdivision 3; 124D.84, subdivision 1; 125A.11, subdivision 1; 125A.13; 125A.14; 125A.39; 125A.42; 125A.44; 125A.45; 125A.50; 125A.56; 125A.63, by adding a subdivision; 125A.75, subdivisions 1, 4, by adding a subdivision; 125A.76, subdivisions 1, 2, 4, 5, by adding a subdivision; 125A.78; 125A.79, subdivisions 1, 5, 6, 8; 125B.15; 126C.01, subdivision 9; 126C.05, subdivision 1; 126C.10, subdivisions 2, 2b, 24, 34; 126C.126; 126C.13, subdivision 4; 126C.15, subdivision 2; 126C.21, subdivisions 3, 5; 126C.41, by adding a subdivision; 126C.44; 126C.48, subdivisions 2, 7; 127A.095, subdivision 2; 127A.441; 127A.47, subdivision 7; 127A.49, subdivisions 2, 3; 128D.11, subdivision 3; 134.31, by adding a subdivision; 134.34, subdivision 4; 134.355, subdivision 9; 169.01, by adding a subdivision; 169.443, by adding a subdivision; 169.447, subdivision 2; 169.4501, subdivisions 1, 2; 169.4502, subdivision 5; 169.4503, subdivisions 13, 20; 171.02, subdivisions 2, 2a; 171.321, subdivision 4; 205A.05, subdivision 1; 272.02, subdivision 64; 272.029, by adding a subdivision; 275.065, subdivisions 1, 1a; 517.08, subdivision 1c; Laws 2005, First Special Session chapter 5, article 1, sections 50, subdivision 2; 54, subdivisions 2, as amended, 4, 5, as amended, 6, as amended, 7, as amended, 8, as amended; article 2, sections 81, as amended; 84, subdivisions 2, as amended, 3, as amended, 4, as amended, 6, as amended, 10, as amended; article 3, section 18, subdivisions 2, as amended, 3, as amended, 4, as amended, 6, as amended; article 4, section 25, subdivisions 2, as amended, 3, as amended; article 5, section 17, subdivision 3, as amended; article 7, section 20, subdivisions 2, as amended, 3, as amended, 4, as amended; article 8, section 8, subdivisions 2, as amended, 5, as amended; article 9, section 4, subdivision 2; Laws 2006, chapter 263, article 3, section 15; Laws 2006, chapter 282, article 2, section 28, subdivision 4; article 3, section 4, subdivision 2; proposing coding for new law in Minnesota Statutes, chapters 119A; 124D; 127A; repealing Minnesota Statutes 2006, sections 120B.233; 123A.22, subdivision 11; 123B.749; 123B.81, subdivision 8; 124D.06; 124D.081, subdivisions 1, 2, 3, 4, 5, 6, 9; 124D.175; 124D.454, subdivisions 4, 5, 6, 7; 124D.531, subdivision 5; 124D.62; 125A.10; 125A.75, subdivision 6; 125A.76, subdivision 3; 169.4502, subdivision 15; 169.4503, subdivisions 17, 18, 26.

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

ARTICLE 1

GENERAL EDUCATION

Section 1.

Minnesota Statutes 2006, section 16A.152, subdivision 2, is amended to read:

Subd. 2.

Additional revenues; priority.

(a) If on the basis of a forecast of general fund revenues and expenditures, the commissioner of finance determines that there will be a positive unrestricted budgetary general fund balance at the close of the biennium, the commissioner of finance must allocate money to the following accounts and purposes in priority order:

(1) the cash flow account established in subdivision 1 until that account reaches $350,000,000;

(2) the budget reserve account established in subdivision 1a until that account reaches $653,000,000;

(3) the amount necessary to increase the aid payment schedule for school district aids and credits payments in section 127A.45 to not more than 90 percent rounded to the nearest tenth of a percent without exceeding the amount available and with any remaining funds deposited in the budget reserve; and

(4) the amount necessary to restore all or a portion of the net aid reductions under section 127A.441 and to reduce the property tax revenue recognition shift under section 123B.75, subdivision 5, paragraph deleted text begin (c)deleted text end new text begin (b)new text end , and Laws 2003, First Special Session chapter 9, article 5, section 34, as amended by Laws 2003, First Special Session chapter 23, section 20, by the same amount.

(b) The amounts necessary to meet the requirements of this section are appropriated from the general fund within two weeks after the forecast is released or, in the case of transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations schedules otherwise established in statute.

(c) To the extent that a positive unrestricted budgetary general fund balance is projected, appropriations under this section must be made before section 16A.1522 takes effect.

(d) The commissioner of finance shall certify the total dollar amount of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of education. The commissioner of education shall increase the aid payment percentage and reduce the property tax shift percentage by these amounts and apply those reductions to the current fiscal year and thereafter.

Sec. 2.

Minnesota Statutes 2006, section 124D.128, subdivision 1, is amended to read:

Subdivision 1.

Program established.

A learning year program provides instruction throughout the yearnew text begin on an extended year calendar, extended school day calendar, or bothnew text end . A pupil may participate in the program and accelerate attainment of grade level requirements or graduation requirements. A learning year program may begin after the close of the regular school year in June. The program may be for students in one or more grade levels from kindergarten through grade 12.

Sec. 3.

Minnesota Statutes 2006, section 124D.128, subdivision 2, is amended to read:

Subd. 2.

Commissioner designation.

(a) An area learning center designated by the state must be a site. new text begin An area learning center must provide services to students who meet the criteria in section 124D.68 and who are enrolled in:new text end

new text begin (1) a district that is served by the center; or new text end

new text begin (2) a charter school located within the geographic boundaries of a district that is served by the center. new text end

new text begin (b) A school district or charter school may be approved biennially by the state to provide additional instructional programming that results in grade level acceleration. The program must be designed so that students make grade progress during the school year and graduate prior to the students' peers. new text end

new text begin (c) new text end To be designated, a districtnew text begin , charter school,new text end or center must demonstrate to the commissioner that it will:

(1) provide a program of instruction that permits pupils to receive instruction throughout the entire year; and

(2) new text begin develop and new text end maintain a new text begin separate new text end record system that, for purposes of section 126C.05, permits identification of membership attributable to pupils participating in the program. The record system and identification must ensure that the program will not have the effect of increasing the total deleted text begin number of pupil unitsdeleted text end new text begin average daily membership new text end attributable to an individual pupil as a result of a learning year program. The record system must include the date the pupil originally enrolled in a learning year program, the pupil's grade level, the date of each grade promotion, the average daily membership generated in each grade level, the number of credits or standards earned, and the number needed to graduate.

deleted text begin (b)deleted text end new text begin (d) new text end A student who has not completed a school district's graduation requirements may continue to enroll in courses the student must complete in order to graduate until the student satisfies the district's graduation requirements or the student is 21 years old, whichever comes first.

Sec. 4.

Minnesota Statutes 2006, section 124D.128, subdivision 3, is amended to read:

Subd. 3.

Student planning.

A districtnew text begin , charter school, or area learning centernew text end must inform all pupils and their parents about the learning year program and that participation in the program is optional. A continual learning plan must be developed at least annually for each pupil with the participation of the pupil, parent or guardian, teachers, and other staff; each participant must sign and date the plan. The plan must specify the learning experiences that must occur during the entire fiscal year anddeleted text begin ,deleted text end new text begin are necessary for grade progression or, new text end for secondary students, deleted text begin fordeleted text end graduation. The plan must include:

(1) the pupil's learning objectives and experiences, including courses or credits the pupil plans to complete each year and, for a secondary pupil, the graduation requirements the student must complete;

(2) the assessment measurements used to evaluate a pupil's objectives;

(3) requirements for grade level or other appropriate progression; and

(4) for pupils generating more than one average daily membership in a given grade, an indication of which objectives were unmet.

The plan may be modified to conform to district schedule changes. The district may not modify the plan if the modification would result in delaying the student's time of graduation.

Sec. 5.

Minnesota Statutes 2006, section 126C.05, subdivision 1, is amended to read:

Subdivision 1.

Pupil unit.

Pupil units for each Minnesota resident pupil under the age of 21 or who meets the requirements of section 120A.20, subdivision 1, paragraph (c), in average daily membership enrolled in the district of residence, in another district under sections 123A.05 to 123A.08, 124D.03, 124D.06, 124D.07, 124D.08, or 124D.68; in a charter school under section 124D.10; or for whom the resident district pays tuition under section 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65, shall be counted according to this subdivision.

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

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

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

(d) A kindergarten pupil who is not included in paragraph (c) is counted as deleted text begin .557 of a pupil unit for fiscal year 2000 and thereafterdeleted text end new text begin 0.612 pupil unitsnew text end .

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

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008. new text end

Sec. 6.

Minnesota Statutes 2006, section 126C.10, subdivision 2, is amended to read:

Subd. 2.

Basic revenue.

The basic revenue for each district equals the formula allowance times the adjusted marginal cost pupil units for the school year. deleted text begin The formula allowance for fiscal year 2005 is $4,601. The formula allowance for fiscal year 2006 is $4,783.deleted text end The formula allowance for fiscal year 2007new text begin is $4,974. The formula allowance for fiscal year 2008 is $5,074 and the formula allowance for fiscal year 2009new text end and subsequent years is deleted text begin $4,974deleted text end new text begin $5,124new text end .

Sec. 7.

Minnesota Statutes 2006, section 126C.10, subdivision 2b, is amended to read:

Subd. 2b.

Gifted and talented revenue.

Gifted and talented revenue for each district equals deleted text begin $4 timesdeleted text end the district's adjusted marginal cost pupil units for deleted text begin fiscal year 2006 and $9 for fiscal year 2007 and laterdeleted text end new text begin that school year times $12 for fiscal year 2008 and laternew text end . A school district must reserve gifted and talented revenue and, consistent with section 120B.15, must spend the revenue only to:

(1) identify gifted and talented students;

(2) provide education programs for gifted and talented students; or

(3) provide staff development to prepare teachers to best meet the unique needs of gifted and talented students.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008. new text end

Sec. 8.

Minnesota Statutes 2006, section 126C.10, subdivision 24, is amended to read:

Subd. 24.

Equity revenue.

(a) A school district qualifies for equity revenue if:

(1) the school district's adjusted marginal cost pupil unit amount of basic revenue, supplemental revenue, transition revenue, and referendum revenue is less than the value of the school district at or immediately above the 95th percentile of school districts in its equity region for those revenue categories; and

(2) the school district's administrative offices are not located in a city of the first class on July 1, 1999.

(b) Equity revenue for a qualifying district that receives referendum revenue under section 126C.17, subdivision 4, equals the product of (1) the district's adjusted marginal cost pupil units for that year; times (2) the sum of (i) $13, plus (ii) $75, times the school district's equity index computed under subdivision 27.

(c) Equity revenue for a qualifying district that does not receive referendum revenue under section 126C.17, subdivision 4, equals the product of the district's adjusted marginal cost pupil units for that year times $13.

(d) A school district's equity revenue is increased by the greater of zero or an amount equal to the district's resident marginal cost pupil units times the difference between ten percent of the statewide average amount of referendum revenue per resident marginal cost pupil unit for that year and the district's referendum revenue per resident marginal cost pupil unit. A school district's revenue under this paragraph must not exceed $100,000 for that year.

(e) A school district's equity revenue for a school district located in the metro equity region equals the amount computed in paragraphs (b), (c), and (d) multiplied by 1.25.

(f) For fiscal year 2007 and later, notwithstanding paragraph (a), clause (2), a school district that has per pupil referendum revenue below the 95th percentile qualifies for additional equity revenue equal to $46 times its adjusted marginal cost pupil deleted text begin unitdeleted text end new text begin unitsnew text end .

(g) A district that does not qualify for revenue under paragraph (f) qualifies for equity revenue equal to deleted text begin one-half of the per pupil allowance in paragraph (f)deleted text end new text begin $46new text end times its adjusted marginal cost pupil units.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008. new text end

Sec. 9.

Minnesota Statutes 2006, section 126C.10, subdivision 34, is amended to read:

Subd. 34.

Basic alternative teacher compensation aid.

(a) deleted text begin For fiscal year 2006, the basic alternative teacher compensation aid for a school district or an intermediate school district with a plan approved under section 122A.414, subdivision 2b, equals the alternative teacher compensation revenue under section 122A.415, subdivision 1. The basic alternative teacher compensation aid for a charter school with an approved plan under section 122A.414, subdivision 2b, equals $260 times the number of pupils enrolled in the school on October 1 of the previous school year, or on October 1 of the current fiscal year for a charter school in the first year of operation.deleted text end

deleted text begin (b)deleted text end For fiscal deleted text begin yeardeleted text end new text begin years new text end 2007 and later, the basic alternative teacher compensation aid for a school district with a plan approved under section 122A.414, subdivision 2b, equals deleted text begin 73.1deleted text end new text begin 65new 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.

deleted text begin (c)deleted text end new text begin (b) new text end Notwithstanding paragraphs (a) and (b) and section 122A.415, subdivision 1, the state total basic alternative teacher compensation aid entitlement must not exceed deleted text begin $19,329,000 for fiscal year 2006 anddeleted text end $75,636,000 for fiscal year 2007 and later. The commissioner must limit the amount of alternative teacher compensation aid approved under section 122A.415 so as not to exceed these limits.

Sec. 10.

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

126C.126 REALLOCATING GENERAL EDUCATION REVENUE FOR ALL-DAY KINDERGARTENnew text begin AND PREKINDERGARTENnew text end .

new text begin (a) new text end In order to provide additional revenue for an optional all-day kindergarten program, a district may reallocate general education revenue attributable to 12th grade students who have graduated early under section 120B.07.

new text begin (b) A school district may spend general education revenue on extended time kindergarten and prekindergarten programs. new text end

Sec. 11.

Minnesota Statutes 2006, section 126C.13, subdivision 4, is amended to read:

Subd. 4.

General education aid.

deleted text begin (a) For fiscal year 2006, a district's general education aid is the sum of the following amounts: deleted text end

deleted text begin (1) general education revenue, excluding equity revenue, total operating capital, and transition revenue; deleted text end

deleted text begin (2) operating capital aid according to section 126C.10, subdivision 13b; deleted text end

deleted text begin (3) equity aid according to section 126C.10, subdivision 30; deleted text end

deleted text begin (4) transition aid according to section 126C.10, subdivision 33; deleted text end

deleted text begin (5) shared time aid according to section 126C.01, subdivision 7; deleted text end

deleted text begin (6) referendum aid according to section 126C.17; and deleted text end

deleted text begin (7) online learning aid according to section 124D.096. deleted text end

deleted text begin (b)deleted text end For fiscal deleted text begin yeardeleted text end new text begin years new text end 2007 and later, a district's general education aid is the sum of the following amounts:

(1) general education revenue, excluding equity revenue, total operating capital revenue, alternative teacher compensation revenue, and transition revenue;

(2) operating capital aid under section 126C.10, subdivision 13b;

(3) equity aid under section 126C.10, subdivision 30;

(4) alternative teacher compensation aid under section 126C.10, subdivision 36;

(5) transition aid under section 126C.10, subdivision 33;

(6) shared time aid under section 126C.01, subdivision 7;

(7) referendum aid under section 126C.17new text begin , subdivisions 7 and 7anew text end ; and

(8) online learning aid according to section 124D.096.

Sec. 12.

Minnesota Statutes 2006, section 126C.21, subdivision 3, is amended to read:

Subd. 3.

County apportionment deduction.

Each year the amount of money apportioned to a district for that year pursuant to deleted text begin sectiondeleted text end new text begin sectionsnew text end 127A.34, subdivision 2, new text begin and 272.029, subdivision 6, new text end must be deducted from the general education aid earned by that district for the same year or from aid earned from other state sources.

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

Minnesota Statutes 2006, section 126C.21, subdivision 5, is amended to read:

Subd. 5.

Adjustment for failure to meet federal maintenance of effort.

new text begin (a) new text end The general education aid paid to a school district or charter school that failed to meet federal special education maintenance of effort for the previous fiscal year must be reduced by the amount that must be paid to the federal government due to the shortfall.

new text begin (b) The general education aid paid to school districts that were members of a cooperative that failed to meet federal special education maintenance of effort must be reduced by the amount that must be paid to the federal government due to the shortfall. The commissioner must apportion the aid reduction amount to the member school districts based on each district's individual shortfall in maintaining effort, and on each member district's proportionate share of any shortfall in expenditures made by the cooperative. Each district's proportionate share of shortfall in expenditures made by the cooperative must be calculated using the adjusted marginal pupil units of each member school district. new text end

new text begin (c) new text end The amounts recovered under this subdivision shall be paid to the federal government to meet the state's obligations resulting from the district's deleted text begin ordeleted text end new text begin ,new text end charter school'snew text begin , or cooperative'snew text end failure to meet federal special education maintenance of effort.

new text begin EFFECTIVE DATE. new text end

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

Sec. 14.

Minnesota Statutes 2006, section 126C.44, is amended to read:

126C.44 SAFE SCHOOLS LEVY.

new text begin (a) new text end Each district may make a levy on all taxable property located within the district for the purposes specified in this section. The maximum amount which may be levied for all costs under this section shall be equal to deleted text begin $27deleted text end new text begin $30new text end multiplied by the district's adjusted marginal cost pupil units for the school year. The proceeds of the levy must be reserved and used for directly funding the following purposes or for reimbursing the cities and counties who contract with the district for the following purposes: (1) to pay the costs incurred for the salaries, benefits, and transportation costs of peace officers and sheriffs for liaison in services in the district's schools; (2) to pay the costs for a drug abuse prevention program as defined in section 609.101, subdivision 3, paragraph (e), in the elementary schools; (3) to pay the costs for a gang resistance education training curriculum in the district's schools; (4) to pay the costs for security in the district's schools and on school property; deleted text begin ordeleted text end (5) to pay the costs for other crime prevention, drug abuse, student and staff safety, new text begin voluntary opt-in suicide prevention tools, new text end and violence prevention measures taken by the school districtnew text begin ; or (6) to pay costs for licensed school counselors, licensed school nurses, licensed school social workers, licensed school psychologists, and licensed alcohol and chemical dependency counselors to help provide early responses to problemsnew text end . For expenditures under clause (1), the district must initially attempt to contract for services to be provided by peace officers or sheriffs with the police department of each city or the sheriff's department of the county within the district containing the school receiving the services. If a local police department or a county sheriff's department does not wish to provide the necessary services, the district may contract for these services with any other police or sheriff's department located entirely or partially within the school district's boundaries.

new text begin (b) A school district that is a member of an intermediate school district may include in its authority under this section the costs associated with safe schools activities authorized under paragraph (a) for intermediate school district programs. This authority must not exceed $10 times the adjusted marginal cost pupil units of the member districts. This authority is in addition to any other authority authorized under this section. Revenue raised under this paragraph must be transferred to the intermediate school district. new text end

new text begin (c) If a school district spends safe schools levy proceeds under paragraph (a), clause (6), the district must annually certify that its total spending on services provided by the employees listed in paragraph (a), clause (6), is not less than the sum of its expenditures for these purposes, excluding amounts spent under this section, in the previous year plus the amount spent under this section. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2008. new text end

Sec. 15.

Minnesota Statutes 2006, section 127A.441, is amended to read:

127A.441 AID REDUCTION; LEVY REVENUE RECOGNITION CHANGE.

Each year, the state aids payable to any school district for that fiscal year that are recognized as revenue in the school district's general and community service funds shall be adjusted by an amount equal to (1) the amount the district recognized as revenue for the prior fiscal year pursuant to section 123B.75, subdivision 5, paragraph (b) deleted text begin or (c)deleted text end , minus (2) the amount the district recognized as revenue for the current fiscal year pursuant to section 123B.75, subdivision 5, paragraph deleted text begin (c)deleted text end new text begin (b)new text end . For purposes of making the aid adjustments under this section, the amount the district recognizes as revenue for either the prior fiscal year or the current fiscal year pursuant to section 123B.75, subdivision 5, paragraph (b) deleted text begin or (c)deleted text end , shall not include any amount levied pursuant to section 124D.86, subdivision 4, for school districts receiving revenue under sections 124D.86, subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48, subdivision 6. Payment from the permanent school fund shall not be adjusted pursuant to this section. The school district shall be notified of the amount of the adjustment made to each payment pursuant to this section.

Sec. 16.

Minnesota Statutes 2006, section 127A.47, subdivision 7, is amended to read:

Subd. 7.

Alternative attendance programs.

The general education aid and special education aid for districts must be adjusted for each pupil attending a nonresident district under sections 123A.05 to 123A.08, 124D.03, 124D.06, 124D.08, and 124D.68. The adjustments must be made according to this subdivision.

(a) General education aid paid to a resident district must be reduced by an amount equal to the referendum equalization aid attributable to the pupil in the resident district.

(b) General education aid paid to a district serving a pupil in programs listed in this subdivision must be increased by an amount equal to the new text begin greater of (1) the new text end referendum equalization aid attributable to the pupil in the nonresident districtnew text begin ; or (2) the product of the district's open enrollment concentration index, the maximum amount of referendum revenue in the first tier, and the district's net open enrollment pupil units for that year. A district's open enrollment concentration index equals the greater of: (i) zero, or (ii) the lesser of 1.0, or the difference between the district's ratio of open enrollment pupil units served to its resident pupil units for that year and 0.2. This clause does not apply to a school district where more than 50 percent of the open enrollment students are enrolled solely in online learning coursesnew text end .

(c) If the amount of the reduction to be made from the general education aid of the resident district is greater than the amount of general education aid otherwise due the district, the excess reduction must be made from other state aids due the district.

(d) For fiscal year 2006, the district of residence must pay tuition to a district or an area learning center, operated according to paragraph (f), providing special instruction and services to a pupil with a disability, as defined in section 125A.02, or a pupil, as defined in section 125A.51, who is enrolled in a program listed in this subdivision. The tuition must be equal to (1) the actual cost of providing special instruction and services to the pupil, including a proportionate amount for special transportation and unreimbursed building lease and debt service costs for facilities used primarily for special education, minus (2) if the pupil receives special instruction and services outside the regular classroom for more than 60 percent of the school day, the amount of general education revenue and referendum aid attributable to that pupil for the portion of time the pupil receives special instruction and services outside of the regular classroom, excluding portions attributable to district and school administration, district support services, operations and maintenance, capital expenditures, and pupil transportation, minus (3) special education aid attributable to that pupil, that is received by the district providing special instruction and services. For purposes of this paragraph, general education revenue and referendum aid attributable to a pupil must be calculated using the serving district's average general education revenue and referendum aid per adjusted pupil unit.

(e) For fiscal year 2007 and later, special education aid paid to a resident district must be reduced by an amount equal to (1) the actual cost of providing special instruction and services, including special transportation and unreimbursed building lease and debt service costs for facilities used primarily for special education, for a pupil with a disability, as defined in section 125A.02, or a pupil, as defined in section 125A.51, who is enrolled in a program listed in this subdivision, minus (2) if the pupil receives special instruction and services outside the regular classroom for more than 60 percent of the school day, the amount of general education revenue and referendum aid attributable to that pupil for the portion of time the pupil receives special instruction and services outside of the regular classroom, excluding portions attributable to district and school administration, district support services, operations and maintenance, capital expenditures, and pupil transportation, minus (3) special education aid attributable to that pupil, that is received by the district providing special instruction and services. For purposes of this paragraph, general education revenue and referendum aid attributable to a pupil must be calculated using the serving district's average general education revenue and referendum aid per adjusted pupil unit. Special education aid paid to the district or cooperative providing special instruction and services for the pupil, or to the fiscal agent district for a cooperative, must be increased by the amount of the reduction in the aid paid to the resident district. If the resident district's special education aid is insufficient to make the full adjustment, the remaining adjustment shall be made to other state aids due to the district.

(f) An area learning center operated by a service cooperative, intermediate district, education district, or a joint powers cooperative may elect through the action of the constituent boards to charge the resident district tuition for pupils rather than to have the general education revenue paid to a fiscal agent school district. Except as provided in paragraph (d) or (e), the district of residence must pay tuition equal to at least 90 percent of the district average general education revenue per pupil unit minus an amount equal to the product of the formula allowance according to section 126C.10, subdivision 2, times .0485, calculated without basic skills revenue and transportation sparsity revenue, times the number of pupil units for pupils attending the area learning center, plus the amount of compensatory revenue generated by pupils attending the area learning center.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008. new text end

Sec. 17.

Minnesota Statutes 2006, 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 new text begin or referendum market value new text end 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; deleted text begin anddeleted text end

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

new 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; new text end

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

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

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

new text begin (I) 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; new text end

new text begin (J) 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; new text end

new text begin (K) 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 new text end

new text begin (L) 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; new text end to

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

Sec. 18.

Minnesota Statutes 2006, 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; deleted text begin anddeleted text end

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

new 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; new text end

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

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

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

new text begin (I) 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; new text end

new text begin (J) 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; new text end

new text begin (K) 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 new text end

new text begin (L) 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; new text end 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. 19.

Minnesota Statutes 2006, section 205A.05, subdivision 1, is amended to read:

Subdivision 1.

Questions.

Special elections must be held for a school district on a question on which the voters are authorized by law to pass judgment. The school board may on its own motion call a special election to vote on any matter requiring approval of the voters of a district. Upon petition of 50 or more voters of the school district or five percent of the number of voters voting at the preceding deleted text begin regulardeleted text end school district new text begin generalnew text end election, new text begin whichever is greater, new text end the school board shall by resolution call a special election to vote on any matter requiring approval of the voters of a district. A question is carried only with the majority in its favor required by law. The election officials for a special election are the same as for the most recent school district general election unless changed according to law. Otherwise, special elections must be conducted and the returns made in the manner provided for the school district general election. A special election may not be held during the 30 days before and the 30 days after the state primary, during the 30 days before and the 40 days after the state general election. In addition, a special election may not be held during the 20 days before and the 20 days after any regularly scheduled election of a municipality wholly or partially within the school district. Notwithstanding any other law to the contrary, the time period in which a special election must be conducted under any other law may be extended by the school board to conform with the requirements of this subdivision.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and applies to petitions for special election submitted 30 days after that date and later. new text end

Sec. 20.

Minnesota Statutes 2006, section 272.029, is amended by adding a subdivision to read:

new text begin Subd. 6a. new text end

new text begin Report to commissioner of education. new text end

new text begin The county auditor, on the first Wednesday after such settlement, shall report to the commissioner the amount distributed to each school district under subdivision 6. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2008, for settlements made during fiscal year 2009. new text end

Sec. 21.

Laws 2005, First Special Session chapter 5, article 1, section 50, subdivision 2, is amended to read:

Subd. 2.

Application process.

Independent School Districts Nos. 11, Anoka-Hennepin; 279, Osseo; 281, Robbinsdale; new text begin 286, Brooklyn Center; new text end 535, Rochester; and 833, South Washington may submit an application to the commissioner of education deleted text begin by August 15, 2005,deleted text end for a plan to allocate compensatory revenue to school sites based on student performance. The application must include a written resolution approved by the school board that: (1) identifies the test results that will be used to assess student performance; (2) describes the method for distribution of compensatory revenue to the school sites; and (3) summarizes the evaluation procedure the district will use to determine if the redistribution of compensatory revenue improves overall student performance. The application must be submitted in the form and manner specified by the commissioner. The commissioner must notify the selected school districts deleted text begin by September 1, 2005deleted text end new text begin within 90 days of receipt of their applicationnew 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. 22.

Laws 2006, chapter 282, article 3, section 4, subdivision 2, is amended to read:

Subd. 2.

Onetime energy assistance aid.

For onetime energy assistance aid under section 3:

$ 3,495,000 ..... deleted text begin 2007 deleted text end new text begin 2006 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 retroactively to fiscal year 2006. new text end

Sec. 23.

new text begin SCHOOL FINANCE REFORM; TASK FORCE ESTABLISHED. new text end

new text begin Subdivision 1. new text end

new text begin Task force established. new text end

new text begin A School Finance Reform Task Force is established. new text end

new text begin Subd. 2. new text end

new text begin Task force goals. new text end

new text begin The goals of the School Finance Reform Task Force include: new text end

new text begin (1) creating a standard and index to ensure that the formula remains adequate over time; new text end

new text begin (2) simplifying the remaining school formulas; new text end

new text begin (3) analyzing categorical funding formulas, including but not limited to pupil transportation, compensatory revenue, and limited English proficiency revenue; new text end

new text begin (4) establishing a schedule for implementation of the other new formulas; and new text end

new text begin (5) examining the role of the regional delivery structure including the functions performed by intermediate school districts, service cooperatives, education districts, and other cooperative organizations. new text end

new text begin Subd. 3. new text end

new text begin Task force members. new text end

new text begin The task force consists of nine members. Membership includes the commissioner of education, four members appointed according to the rules of the senate by the senate Committee on Rules and Administration Subcommittee on Committees, and four members appointed by the speaker of the house. new text end

new text begin Subd. 4. new text end

new text begin Task force recommendations. new text end

new text begin The task force must submit a report to the education committees of the legislature by January 15, 2008, describing the formula recommendations according to the goals it has established. 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. 24.

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 General education aid. new text end

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

new text begin $ new text end new text begin 5,618,342,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 5,618,342,000 new text end new text begin ..... new text end new text begin 2009 new text end

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

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

new text begin Subd. 3. new text end

new text begin Referendum tax base replacement aid. new text end

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

new text begin $ new text end new text begin 870,000 new text end new text begin ..... new text end new text begin 2008 new text end

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

new text begin Subd. 4. new text end

new text begin Enrollment options transportation. new text end

new text begin 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: new text end

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

new text begin Subd. 5. new text end

new text begin Abatement revenue. new text end

new text begin For abatement aid under Minnesota Statutes, section 127A.49: new text end

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

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

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

new text begin Subd. 6. new text end

new text begin Consolidation transition. new text end

new text begin For districts consolidating under Minnesota Statutes, section 123A.485: new text end

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

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

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

new text begin Subd. 7. new text end

new text begin Nonpublic pupil education aid. new text end

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

new text begin $ new text end new text begin 16,290,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 16,620,000 new text end new text begin ..... new text end new text begin 2009 new text end

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

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

new text begin Subd. 8. new text end

new text begin Nonpublic pupil transportation. new text end

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

new text begin $ new text end new text begin 21,551,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 21,392,000 new text end new text begin ..... new text end new text begin 2009 new text end

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

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

new text begin Subd. 9. new text end

new text begin One-room schoolhouse. new text end

new text begin For a grant to Independent School District No. 690, Warroad, to operate the Angle Inlet School: new text end

new text begin $ new text end new text begin 65,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 65,000 new text end new text begin ..... new text end new text begin 2009 new text end

new text begin Subd. 10. new text end

new text begin Compensatory revenue pilot project. new text end

new text begin For grants for participation in the compensatory revenue pilot program under Laws 2005, First Special Session chapter 5, article 1, section 50: new text end

new text begin $ new text end new text begin 2,175,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 2,175,000 new text end new text begin ..... new text end new text begin 2009 new text end

new text begin Of this amount, $1,500,000 in each year is for a grant to Independent School District No. 11, Anoka-Hennepin; $210,000 in each year is for a grant to Independent School District No. 279, Osseo; $160,000 in each year is for a grant to Independent School District No. 281, Robbinsdale; $75,000 in each year is for a grant to Independent School District No. 286, Brooklyn Center; $165,000 in each year is for a grant to Independent School District No. 535, Rochester; and $65,000 in each year is for a grant to Independent School District No. 833, South Washington. new text end

new text begin If a grant to a specific school district is not awarded, the commissioner may increase the aid amounts to any of the remaining participating school districts. new text end

new text begin This appropriation is part of the base budget for subsequent fiscal years. new text end

new text begin Subd. 11. new text end

new text begin Declining pupil unit aid; Browns Valley. new text end

new text begin For declining pupil unit aid to Independent School District No. 801, Browns Valley: new text end

new text begin $ new text end new text begin 100,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 100,000 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

new text begin Subd. 12. new text end

new text begin Education finance study. new text end

new text begin For a contract to hire an independent contractor to assist the education finance task force: new text end

new text begin $ new text end new text begin 75,000 new text end new text begin ..... new text end new text begin 2008 new text end

new text begin This is a onetime appropriation.new text end * (The preceding subdivision was indicated as vetoed by the governor.)

new text begin Subd. 13. new text end

new text begin Declining pupil aid, Red Lake. new text end

new text begin For a grant to Independent School District No. 38, Red Lake, for declining pupil aid: new text end

new text begin $ new text end new text begin 455,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 50,000 new text end new text begin ..... new text end new text begin 2009 new text end

new text begin Subd. 14. new text end

new text begin Declining pupil aid McGregor. new text end

new text begin For declining pupil aid for Independent School District No. 4, McGregor: new text end

new text begin $ new text end new text begin 100,000 new text end new text begin ..... new text end new text begin 2008 new text end

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

Sec. 25.

new text begin REVISOR'S INSTRUCTION. new text end

new text begin In Minnesota Statutes, the revisor of statutes shall correct any incorrect cross-references resulting from the repeal of Minnesota Statutes, section 124D.06. new text end

Sec. 26.

new text begin REPEALER. new text end

new text begin (a) new text end new text begin Minnesota Statutes 2006, section 124D.06, new text end new text begin is repealed. new text end

new text begin (b) new text end new text begin Minnesota Statutes 2006, section 124D.081, subdivisions 1, 2, 3, 4, 5, 6, and 9, new text end new text begin are repealed effective for revenue for fiscal year 2010. new text end

ARTICLE 2

EDUCATION EXCELLENCE

Section 1.

Minnesota Statutes 2006, section 119A.50, is amended by adding a subdivision to read:

new text begin Subd. 3. new text end

new text begin Early childhood literacy programs. new text end

new text begin (a) A research-based early childhood literacy program premised on actively involved parents, ongoing professional staff development, and high quality early literacy program standards is established to increase the literacy skills of children participating in Head Start to prepare them to be successful readers and to increase families' participation in providing early literacy experiences to their children. Program providers must: new text end

new text begin (1) work to prepare children to be successful learners; new text end

new text begin (2) work to close the achievement gap for at-risk children; new text end

new text begin (3) use an integrated approach to early literacy that daily offers a literacy-rich classroom learning environment composed of books, writing materials, writing centers, labels, rhyming, and other related literacy materials and opportunities; new text end

new text begin (4) support children's home language while helping the children master English and use multiple literacy strategies to provide a cultural bridge between home and school; new text end

new text begin (5) use literacy mentors, ongoing literacy groups, and other teachers and staff to provide appropriate, extensive professional development opportunities in early literacy and classroom strategies for preschool teachers and other preschool staff; new text end

new text begin (6) use ongoing data-based assessments that enable preschool teachers to understand, plan, and implement literacy strategies, activities, and curriculum that meet children's literacy needs and continuously improve children's literacy; and new text end

new text begin (7) foster participation by parents, community stakeholders, literacy advisors, and evaluation specialists. new text end

new text begin Program providers are encouraged to collaborate with qualified, community-based early childhood providers in implementing this program and to seek nonstate funds to supplement the program. new text end

new text begin (b) Program providers under paragraph (a) interested in extending literacy programs to children in kindergarten through grade 3 may elect to form a partnership with an eligible organization under section 124D.38, subdivision 2, or 124D.42, subdivision 6, clause (3), schools enrolling children in kindergarten through grade 3, and other interested and qualified community-based entities to provide ongoing literacy programs that offer seamless literacy instruction focused on closing the literacy achievement gap. To close the literacy achievement gap by the end of third grade, partnership members must agree to use best efforts and practices and to work collaboratively to implement a seamless literacy model from age three to grade 3, consistent with paragraph (a). Literacy programs under this paragraph must collect and use literacy data to: new text end

new text begin (1) evaluate children's literacy skills; and new text end

new text begin (2) formulate specific intervention strategies to provide reading instruction to children premised on the outcomes of formative and summative assessments and research-based indicators of literacy development. new text end

new text begin The literacy programs under this paragraph also must train teachers and other providers working with children to use the assessment outcomes under clause (2) to develop and use effective, long-term literacy coaching models that are specific to the program providers. new text end

new text begin (c) The commissioner must collect and evaluate literacy data on children from age three to grade 3 who participate in literacy programs under this section to determine the efficacy of early literacy programs on children's success in developing the literacy skills that they need for long-term academic success and the programs' success in closing the literacy achievement gap. Annually by February 1, the commissioner must report to the education policy and finance committees of the legislature on the ongoing impact of these programs. new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2006, section 120A.22, subdivision 7, is amended to read:

Subd. 7.

Education records.

(a) A districtnew text begin , a charter school, or a nonpublic school that receives services or aid under sections 123B.40 to 123B.48new text end from which a student is transferring must transmit the student's educational records, within ten business days of a request, to the districtnew text begin , the charter school, or the nonpublic schoolnew text end in which the student is enrolling. Districtsnew text begin , charter schools, and nonpublic schools that receive services or aid under sections 123B.40 to 123B.48new text end must make reasonable efforts to determine the districtnew text begin , the charter school, or the nonpublic schoolnew text end in which a transferring student is next enrolling in order to comply with this subdivision.

(b) new text begin A closed charter school must transfer the student's educational records, within ten business days of the school's closure, to the student's school district of residence where the records must be retained unless the records are otherwise transferred under this subdivision.new text end

new text begin (c) new text end A school districtnew text begin , a charter school, or a nonpublic school that receives services or aid under sections 123B.40 to 123B.48new text end that transmits a student's educational records to another school district or other educational entitynew text begin , charter school, or nonpublic schoolnew text end to which the student is transferring must include in the transmitted records information aboutnew text begin any formal suspension, expulsion, and exclusionnew text end disciplinary action deleted text begin taken as a result of any incident in which the student possessed or used a dangerous weapondeleted text end new text begin under sections 121A.40 to 121A.56. The district, the charter school, or the nonpublic school that receives services or aid under sections 123B.40 to 123B.48 must provide notice to a student and the student's parent or guardian that formal disciplinary records will be transferred as part of the student's educational record, in accordance with data practices under chapter 13 and the Family Educational Rights and Privacy Act of 1974, United States Code, title 20, section 1232(g)new text end .

deleted text begin (c)deleted text end new text begin (d)new text end Notwithstanding section 138.17, a principal or chief administrative officer must remove from a student's educational record and destroy a probable cause notice received under section 260B.171, subdivision 5, or paragraph (d), if one year has elapsed since the date of the notice and the principal or chief administrative officer has not received a disposition or court order related to the offense described in the notice. This paragraph does not apply if the student no longer attends the school when this one-year period expires.

deleted text begin (d)deleted text end new text begin (e)new text end A principal or chief administrative officer who receives a probable cause notice under section 260B.171, subdivision 5, or a disposition or court order, must include a copy of that data in the student's educational records if they are transmitted to another school, unless the data are required to be destroyed under paragraph (c) or section 121A.75.

Sec. 3.

Minnesota Statutes 2006, section 120B.021, subdivision 1, is amended to read:

Subdivision 1.

Required academic standards.

The following subject areas are required for statewide accountability:

(1) language arts;

(2) mathematics;

(3) science;

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

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

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

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

For purposes of applicable federal law, the academic standards for language arts, mathematics, and science apply to all public school students, except the very few students with extreme cognitive or physical impairments for whom an individualized education plan team has determined that the required academic standards are inappropriate. An individualized education plan team that makes this determination must establish alternative standards.

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

new text begin The commissioner must include the contributions of Minnesota American Indian tribes and communities as they relate to the academic standards during the review and revision of the required academic standards. 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. 4.

Minnesota Statutes 2006, section 120B.022, subdivision 1, is amended to read:

Subdivision 1.

Elective standards.

new text begin (a) new text end A district must establish its own standards in the following subject areas:

(1) vocational and technical education; and

(2) world languages.

A school district must offer courses in all elective subject areas.

new text begin (b) World languages teachers and other school staff should develop and implement world languages programs that acknowledge and reinforce the language proficiency and cultural awareness that non-English language speakers already possess, and encourage students' proficiency in multiple world languages. Programs under this paragraph must encompass indigenous American Indian languages and cultures, among other world languages and cultures. The department shall consult with postsecondary institutions in developing related professional development opportunities. new text end

Sec. 5.

Minnesota Statutes 2006, section 120B.024, is amended to read:

120B.024 GRADUATION REQUIREMENTS; COURSE CREDITS.

(a) Students beginning 9th grade in the 2004-2005 school year and later must successfully complete the following high school level course credits for graduation:

(1) four credits of language arts;

(2) three credits of mathematics, encompassing at least algebra, geometry, statistics, and probability sufficient to satisfy the academic standard;

(3) three credits of science, including at least one credit in biology;

(4) three and one-half credits of social studies, encompassing at least United States history, geography, government and citizenship, world history, and economics or three credits of social studies encompassing at least United States history, geography, government and citizenship, and world history, and one-half credit of economics taught in a school's social studies, agriculture education, or business department;

(5) one credit in the arts; and

(6) a minimum of seven elective course credits.

A course credit is equivalent to a student successfully completing an academic year of study or a student mastering the applicable subject matter, as determined by the local school district.

(b) An agriculture science course may fulfill a science credit requirement in addition to the specified science credits in biology and chemistry or physics under paragraph (a), clause (3).

new text begin (c) A career and technical education course may fulfill a science, mathematics, or arts credit requirement in addition to the specified science, mathematics, or arts credits under paragraph (a), clause (2), (3), or (5). new text end

Sec. 6.

Minnesota Statutes 2006, section 120B.12, subdivision 2, is amended to read:

Subd. 2.

Identification.

For the 2002-2003 school year and later, each school district shall identify before the end of first grade students who are at risk of not learning to read before the end of second grade. The district must use a locally adopted assessment method.new text begin The district must annually report the results of the assessment to the commissioner by June 1.new text end

Sec. 7.

Minnesota Statutes 2006, section 120B.132, is amended to read:

120B.132 RAISED ACADEMIC ACHIEVEMENT; ADVANCED PLACEMENTnew text begin AND INTERNATIONAL BACCALAUREATEnew text end PROGRAMS.

Subdivision 1.

Establishment; eligibility.

A program is established to raise kindergarten through grade 12 academic achievement through increased student participation in preadvanced placement deleted text begin anddeleted text end new text begin ,new text end advanced placementnew text begin , and international baccalaureatenew text end programsnew text begin , consistent with section 120B.13new text end . Schools and charter schools eligible to participate under this section:

(1) new text begin must have a three-year plan approved by the local school board to establish a new international baccalaureate program leading to international baccalaureate authorization, expand an existing program that leads to international baccalaureate authorization, or expand an existing authorized international baccalaureate program; ornew text end

new text begin (2) new text end must have a three-year plan approved by the local school board to create a new or expand an existing program to implement the college board advanced placement courses and exams or preadvanced placement deleted text begin coursesdeleted text end new text begin initiativenew text end ; and

deleted text begin (2)deleted text end new text begin (3)new text end must propose to further raise students' academic achievement by:

(i) increasing the availability of and all students' access to advanced placementnew text begin or international baccalaureate courses or programsnew text end ;

(ii) expanding the breadth of advanced placement new text begin or international baccalaureate new text end courses or programs that are available to students;

(iii) increasing the number and the diversity of the students who participate in advanced placement new text begin or international baccalaureate new text end courses or programs and succeed;

(iv) providing low-income and other disadvantaged students with increased access to advanced placementnew text begin or international baccalaureatenew text end courses and programs; or

(v) increasing the number of high school students, including low-income and other disadvantaged students, who receive college credit by successfully completing advanced placement new text begin or international baccalaureate new text end courses or programs and achieving satisfactory scores on related exams.

Subd. 2.

Application and review process; funding priority.

(a) Charter schools and school districts in which eligible schools under subdivision 1 are located may apply to the commissioner, in the form and manner the commissioner determines, for competitive funding to further raise students' academic achievement. The application must detail the specific efforts the applicant intends to undertake in further raising students' academic achievement, consistent with subdivision 1, and a proposed budget detailing the district or charter school's current and proposed expenditures for advanced placement deleted text begin ordeleted text end new text begin ,new text end preadvanced placementnew text begin , and international baccalaureatenew text end courses and programs. The proposed budget must demonstrate that the applicant's efforts will deleted text begin supplement but not supplant any expenditures for advanced placement and preadvanced placement courses and programs the applicant currently makes available to studentsdeleted text end new text begin support implementation of advanced placement, preadvanced placement, and international baccalaureate courses and programsnew text end . Expenditures for administration must not exceed five percent of the proposed budget. The commissioner may require an applicant to provide additional information.

(b) When reviewing applications, the commissioner must determine whether the applicant satisfied all the requirements in this subdivision and subdivision 1. The commissioner may give funding priority to an otherwise qualified applicant that demonstrates:

(1) a focus on developing or expanding new text begin preadvanced placement, new text end advanced placementnew text begin , or international baccalaureatenew text end courses deleted text begin anddeleted text end new text begin ornew text end programs or increasing students' participation in, access to, or success with the courses or programs, including the participation, access, or success of low-income and other disadvantaged students;

(2) a compelling need for access to new text begin preadvanced placement, new text end advanced placementnew text begin , or international baccalaureate courses ornew text end programs;

(3) an effective ability to actively involve local business and community organizations in student activities that are integral to new text begin preadvanced placement, new text end advanced placementnew text begin , or international baccalaureatenew text end courses deleted text begin anddeleted text end new text begin ornew text end programs;

(4) access to additional public or nonpublic funds or in-kind contributions that are available for new text begin preadvanced placement, new text end advanced placementnew text begin , or international baccalaureate courses ornew text end programs; or

(5) an intent to implement activities that target low-income and other disadvantaged students.

Subd. 3.

Funding; permissible funding uses.

(a) The commissioner shall award grants to applicant school districts and charter schools that meet the requirements of subdivisions 1 and 2. The commissioner must award grants on an equitable geographical basis to the extent feasible and consistent with this section. Grant awards must not exceed the lesser of:

(1) $85 times the number of pupils enrolled at the participating sites on October 1 of the previous fiscal year; or

(2) the approved supplemental expenditures based on the budget submitted under subdivision 2. For charter schools in their first year of operation, the maximum deleted text begin grantdeleted text end new text begin fundingnew text end award must be calculated using the number of pupils enrolled on October 1 of the current fiscal year. The commissioner may adjust the maximum deleted text begin grantdeleted text end new text begin fundingnew text end award computed using prior year data for changes in enrollment attributable to school closings, school openings, grade level reconfigurations, or school district reorganizations between the prior fiscal year and the current fiscal year.

(b) School districts and charter schools that submit an application and receive funding under this section must use the funding, consistent with the application, to:

(1) provide teacher training and instruction to more effectively serve students, including low-income and other disadvantaged students, who participate in preadvanced deleted text begin anddeleted text end new text begin placement, new text end advanced placementnew text begin , or international baccalaureate courses ornew text end programs;

(2) further develop new text begin preadvanced placement, new text end advanced placementnew text begin , or international baccalaureatenew text end courses or programs;

(3) improve the transition between grade levels to better prepare students, including low-income and other disadvantaged students, for succeeding in new text begin preadvanced placement, new text end advanced placementnew text begin , or international baccalaureate courses ornew text end programs;

(4) purchase books and supplies;

(5) pay course or program fees;

(6) increase students' participation in and success with new text begin preadvanced placement, new text end advanced placementnew text begin , or international baccalaureate courses ornew text end programs;

(7) expand students' access to preadvanced placement deleted text begin ordeleted text end new text begin ,new text end advanced placementnew text begin , or international baccalaureatenew text end courses or programs through online learning;

(8) hire appropriately licensed personnel to teach additional advanced placement new text begin or international baccalaureate courses or new text end programs; or

(9) engage in other activity directly related to expanding students' access to, participation in, and success with preadvanced placement deleted text begin ordeleted text end new text begin ,new text end advanced placementnew text begin , or international baccalaureatenew text end courses deleted text begin anddeleted text end new text begin ornew text end programs, including low-income and other disadvantaged students.

Subd. 4.

Annual reports.

(a) Each school district and charter school that receives a grant under this section annually must collect demographic and other student data to demonstrate and measure the extent to which the district or charter school raised students' academic achievement under this program and must report the data to the commissioner in the form and manner the commissioner determines. The commissioner annually by February 15 must make summary data about this program available to the education policy and finance committees of the legislature.

(b) Each school district and charter school that receives a grant under this section annually must report to the commissioner, consistent with the Uniform Financial Accounting and Reporting Standards, its actual expenditures for advanced placement deleted text begin anddeleted text end new text begin ,new text end preadvanced placementnew text begin , and international baccalaureate courses andnew text end programs. The report must demonstrate that the school district or charter school has maintained its effort from other sources for advanced placement deleted text begin anddeleted text end new text begin ,new text end preadvanced placementnew text begin , and international baccalaureate courses andnew text end programs compared with the previous fiscal year, and the district or charter school has expended all grant funds, consistent with its approved budget.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and applies to the 2007-2008 school year and later. new text end

Sec. 8.

Minnesota Statutes 2006, section 120B.15, is amended to read:

120B.15 GIFTED AND TALENTED STUDENTS PROGRAMS.

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

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

(1) multiple and objective criteria; and

(2) assessments and procedures that are valid and reliable, fair, and based on current theory and research.

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

new text begin (1) assess a student's readiness and motivation for acceleration; and new text end

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

Sec. 9.

Minnesota Statutes 2006, section 120B.30, is amended to read:

120B.30 STATEWIDE TESTING AND REPORTING SYSTEM.

Subdivision 1.

Statewide testing.

(a) The commissioner, with advice from experts with appropriate technical qualifications and experience and stakeholders, consistent with subdivision 1a, shall include in the comprehensive assessment system, for each grade level to be tested, state-constructed tests developed from and aligned with the state's required academic standards under section 120B.021 and administered annually to all students in grades 3 through 8 and at the high school level. A state-developed test in a subject other than writing, developed after the 2002-2003 school year, must include both machine-scoreable and constructed response questions. The commissioner shall establish one or more months during which schools shall administer the tests to students each school year. For students enrolled in grade 8 before the 2005-2006 school year, only Minnesota basic skills tests in reading, mathematics, and writing shall fulfill students' basic skills testing requirements for a passing state notation. The passing scores of deleted text begin the statedeleted text end new text begin basic skillsnew text end tests in reading and mathematics are the equivalent ofdeleted text begin :deleted text end

deleted text begin (1) 70 percent correct for students entering grade 9 in 1996; and deleted text end

deleted text begin (2)deleted text end 75 percent correct for students entering grade 9 in 1997 and thereafter, as based on the first uniform test administration of February 1998.

new text begin (b) new text end For students enrolled in grade 8 in the 2005-2006 school year and later, only the deleted text begin Minnesota Comprehensive Assessments Second Edition (MCA-IIs) in reading, mathematics, and writingdeleted text end new text begin following optionsnew text end shall fulfill students' deleted text begin academic standarddeleted text end new text begin state graduation testnew text end requirementsdeleted text begin .deleted text end new text begin :new text end

new text begin (1) for reading and mathematics: new text end

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

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

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

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

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

new text begin (2) for writing: new text end

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

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

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

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

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

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

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

(1) uniform statewide testing of all students in grades 3 through 8 and at the high school level that provides new text begin appropriate,new text end new text begin technically sound accommodations, alternate assessments, ornew text end exemptionsnew text begin consistent with applicable federal lawnew text end , only with parent or guardian approval, for those very few students for whom the student's individual education plan team under sections 125A.05 and 125A.06deleted text begin ,deleted text end determines that the new text begin general statewide test is inappropriate for a new text end student deleted text begin is incapable of taking a statewide testdeleted text end , or for a limited English proficiency student under section 124D.59, subdivision 2deleted text begin , if the student has been in the United States for deleted text end deleted text begin fewer than three yearsdeleted text end ;

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

(3) deleted text begin students' scoresdeleted text end new text begin state resultsnew text end on the American College Test; and

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

deleted text begin (e) Districts must report exemptions under paragraph (d), clause (1), to the commissioner consistent with a format provided by the commissioner. deleted text end

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 deleted text begin the 2006-2007deleted text end new text begin no later than the 2008-2009new text end school year, a value-added component deleted text begin todeleted text end new text begin that is in addition to anew text end measure new text begin fornew text end student achievement growth over time; and

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

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

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

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

Subd. 2.

Department of Education assistance.

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

Subd. 3.

Reporting.

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

Subd. 4.

Access to tests.

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

Sec. 10.

Minnesota Statutes 2006, section 120B.31, subdivision 3, is amended to read:

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 establishednew text begin , and shall be funded through the Board of Regents of the University of Minnesotanew text end . 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 results-oriented graduation rule. The office shall deleted text begin considerdeleted text end new text begin determine and annually report to the legislaturenew text end whether new text begin and how effectively: new text end

new text begin (1) new text end the statewide system of educational accountability utilizes 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 systemdeleted text begin .deleted text end new text begin ;new text end

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

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

new text begin (4) 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 new text end

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

(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.

new text begin EFFECTIVE DATE. new text end

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

Sec. 11.

Minnesota Statutes 2006, section 120B.36, subdivision 1, is amended to read:

Subdivision 1.

School performance report cards.

(a) The commissioner shall use objective criteria based on levels of student performance to deleted text begin identify four to six designations applicable to high and low performing public schools. The objective criteria shall includedeleted text end new text begin reportnew text end at least student academic performance, school safety, new text begin 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,new text end and staff characteristics, with a value-added deleted text begin growthdeleted text end component added deleted text begin by the 2006-2007deleted text end new text begin no later than the 2008-2009new text end school year.new 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.new text end

(b) The commissioner shall develop, annually update, and post on the department Web site school performance report cards. deleted text begin A school's designation must be clearly stated on each school performance report card.deleted text end

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

(d) A school or district may appeal new text begin its adequate yearly progress status new text end in writing deleted text begin a designation under this sectiondeleted text end to the commissioner within 30 days of receiving the deleted text begin designationdeleted text end new text begin notice of its statusnew text end . The commissioner's decision to uphold or deny an appeal is final.

(e) School performance report cardsnew text begin datanew text end 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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and applies to the school performance report cards for the 2006-2007 school year and later. new text end

Sec. 12.

Minnesota Statutes 2006, section 122A.20, subdivision 1, is amended to read:

Subdivision 1.

Grounds for revocation, suspension, or denial.

(a) The Board of Teaching or Board of School Administrators, whichever has jurisdiction over a teacher's licensure, may, on the written complaint of the school board employing a teacher, a teacher organization, or any other interested person, refuse to issue, refuse to renew, suspend, or revoke a teacher's license to teach for any of the following causes:

(1) immoral character or conduct;

(2) failure, without justifiable cause, to teach for the term of the teacher's contract;

(3) gross inefficiency or willful neglect of duty;

(4) failure to meet licensure requirements; or

(5) fraud or misrepresentation in obtaining a license.

The written complaint must specify the nature and character of the charges.

(b) The Board of Teaching or Board of School Administrators, whichever has jurisdiction over a teacher's licensure, shall refuse to issue, refuse to renew, or automatically revoke a teacher's license to teach without the right to a hearing upon receiving a certified copy of a conviction showing that the teacher has been convicted of child abuse, as defined in section 609.185, deleted text begin ordeleted text end sexual abuse under section 609.342, 609.343, 609.344, 609.345, 609.3451, subdivision 3, or 617.23, subdivision 3, deleted text begin ordeleted text end new text begin using minors in a sexual performance under section 617.246, or possessing pornographic works involving a minor under section 617.247, or new text end under a similar law of another state or the United States. The board shall send notice of this licensing action to the district in which the teacher is currently employed.

(c) A person whose license to teach has been revoked, not issued, or not renewed under paragraph (b), may petition the board to reconsider the licensing action if the person's conviction for child abuse or sexual abuse is reversed by a final decision of the Court of Appeals or the Supreme Court or if the person has received a pardon for the offense. The petitioner shall attach a certified copy of the appellate court's final decision or the pardon to the petition. Upon receiving the petition and its attachment, the board shall schedule and hold a disciplinary hearing on the matter under section 214.10, subdivision 2, unless the petitioner waives the right to a hearing. If the board finds that, notwithstanding the reversal of the petitioner's criminal conviction or the issuance of a pardon, the petitioner is disqualified from teaching under paragraph (a), clause (1), the board shall affirm its previous licensing action. If the board finds that the petitioner is not disqualified from teaching under paragraph (a), clause (1), it shall reverse its previous licensing action.

(d) For purposes of this subdivision, the Board of Teaching is delegated the authority to suspend or revoke coaching licenses.

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

Minnesota Statutes 2006, section 122A.61, is amended by adding a subdivision to read:

new text begin Subd. 3. new text end

new text begin Coursework and training. new text end

new text begin A school district may use the revenue reserved under subdivision 1 for grants to the district's teachers to pay for coursework and training leading to certification as a college in the schools or concurrent enrollment teacher. In order to receive a grant, the teacher must be enrolled in a program that includes coursework and training focused on teaching a core subject. new text end

Sec. 14.

Minnesota Statutes 2006, section 122A.72, subdivision 5, is amended to read:

Subd. 5.

Center functions.

new text begin (a) new text end A teacher center shall perform functions according to this subdivision. The center shall assist teachers, diagnose learning needs, experiment with the use of multiple instructional approaches, assess pupil outcomes, assess staff development needs and plans, and teach school personnel about effective pedagogical approaches. The center shall develop and produce curricula and curricular materials designed to meet the educational needs of pupils being served, by applying educational research and new and improved methods, practices, and techniques. The center shall provide programs to improve the skills of teachers to meet the special educational needs of pupils. The center shall provide programs to familiarize teachers with developments in curriculum formulation and educational research, including how research can be used to improve teaching skills. The center shall facilitate sharing of resources, ideas, methods, and approaches directly related to classroom instruction and improve teachers' familiarity with current teaching materials and products for use in their classrooms. The center shall provide in-service programs.

new text begin (b) Each teacher center must provide a professional development program to train interested and highly qualified elementary, middle, and secondary teachers, selected by the employing school district, to assist other teachers in that district with mathematics and science curriculum, standards, and instruction so that all teachers have access to: new text end

new text begin (1) high quality professional development programs in mathematics and science that address curriculum, instructional methods, alignment of standards, and performance measurements, enhance teacher and student learning, and support state mathematics and science standards; and new text end

new text begin (2) research-based mathematics and science programs and instructional models premised on best practices that inspire teachers and students and have practical classroom application. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2007-2008 school year and later. new text end

Sec. 15.

Minnesota Statutes 2006, section 123B.02, is amended by adding a subdivision to read:

new text begin Subd. 24. new text end

new text begin Membership in economic development, community, and civic organizations. new text end

new text begin The board may authorize and pay for the membership of the school district or of any district representative designated by the board in those local economic development associations or other community or civic organizations that the board deems appropriate. new text end

Sec. 16.

Minnesota Statutes 2006, 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 January 10, submit an annual report to the commissioner in a manner prescribed by the commissioner, in consultation with school districts, identifying the expenditures that the district requires to ensure an 80 percent student passage rate on the deleted text begin basic standards testdeleted text end new text begin MCA-IIsnew text end taken in the eighth grade, identifying the highest student passage rate the district expects it will be able to attain on the deleted text begin basic standards testdeleted text end new text begin MCA-IIsnew text end by grade 12, new text begin and new text end the amount of expenditures that the district requires to attain the targeted student passage ratedeleted text begin , and how much the district is cross-subsidizing programs with special education, basic skills, and general education revenuedeleted text end ; and

(6) perform other duties prescribed by the board.

Sec. 17.

Minnesota Statutes 2006, section 123B.92, subdivision 3, is amended to read:

Subd. 3.

Alternative attendance programs.

new text begin (a) new text end A district that enrolls nonresident pupils in programs under sections 124D.03, 124D.06, 124D.08, 123A.05 to 123A.08, and 124D.68, must provide authorized transportation to the pupil within the attendance area for the school that the pupil attends at the same level of service that is provided to resident pupils within the attendance area. The resident district need not provide or pay for transportation between the pupil's residence and the district's border.

new text begin (b) A district may provide transportation to allow a student who attends a high-need English language learner program and who resides within the transportation attendance area of the program to continue in the program until the student completes the highest grade level offered by the program. 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. 18.

new text begin [124D.091] CONCURRENT ENROLLMENT PROGRAM AID. new text end

new text begin Subdivision 1. new text end

new text begin Accreditation. new text end

new text begin To establish a uniform standard by which concurrent enrollment courses and professional development activities may be measured, postsecondary institutions are encouraged to apply for accreditation by the National Alliance of Concurrent Enrollment Partnership. new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin A district that offers a concurrent enrollment course according to an agreement under section 124D.09, subdivision 10, is eligible to receive aid for the costs of providing postsecondary courses at the high school. Beginning in fiscal year 2011, districts only are eligible for aid if the college or university concurrent enrollment courses offered by the district are accredited by the National Alliance of Concurrent Enrollment Partnership, in the process of being accredited, or are shown by clear evidence to be of comparable standard to accredited courses. new text end

new text begin Subd. 3. new text end

new text begin Aid. new text end

new text begin An eligible district shall receive $150 per pupil enrolled in a concurrent enrollment course. The money must be used to defray the cost of delivering the course at the high school. The commissioner shall establish application procedures and deadlines for receipt of aid payments. new text end

Sec. 19.

Minnesota Statutes 2006, section 124D.095, subdivision 2, is amended to read:

Subd. 2.

Definitions.

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

(a) "Online learning" is an interactive course or program that delivers instruction from a teacher to a student by computer; is combined with other traditional delivery methods that include frequent student assessment and may include actual teacher contact time; and meets or exceeds state academic standards.

(b) "Online learning provider" is a school district, an intermediate school district, an organization of two or more school districts operating under a joint powers agreement, or a charter school located in Minnesota that provides online learning to students.

(c) "Student" is a Minnesota resident enrolled in a school under section 120A.22, subdivision 4, in kindergarten through grade 12.

(d) "Online learning student" is a student enrolled in an online learning course or program delivered by an online provider under paragraph (b).

(e) "Enrolling district" means the school district or charter school in which a student is enrolled under section 120A.22, subdivision 4, for purposes of compulsory attendance.

new text begin (f) "Supplemental online learning" means an online course taken in place of a course period during the regular school day at a local district school. new text end

new text begin (g) "Full-time online provider" means an enrolling school authorized by the department to deliver comprehensive public education at any or all of the elementary, middle, or high school levels. new text end

Sec. 20.

Minnesota Statutes 2006, section 124D.095, subdivision 3, is amended to read:

Subd. 3.

Authorization; notice; limitations on enrollment.

(a) A student may apply deleted text begin to an online learning provider to enroll in online learningdeleted text end new text begin for full-time enrollment in an approved online learning program under section 124D.03, 124D.08 or 124D.10, or for supplemental online learning. Notwithstanding sections 124D.03, 124D.08, and 124D.10, procedures for enrolling in online learning shall be as provided in this subdivisionnew text end . 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. deleted text begin An online learning provider that accepts a student under this section must, within ten days, notify the student and the enrolling district if the enrolling district is not the online learning provider. The notice must report the student's course or program and hours of instruction.deleted text end new text begin 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 enrollment in online learning in writing on a form provided by the department.new text end

new text begin (b) Supplemental online learning notification to the enrolling district upon student enrollment in the online learning program will include the courses or program, credits to be awarded, the start date of online enrollment, and confirmation that the courses will meet the student's graduation plan. 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. new text end

deleted text begin (b) An online learning student must notify the enrolling district at least 30 days before taking an online learning course or program if the enrolling district is not providing the online learning.deleted text end new text begin (c)new text end 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.

deleted text begin (c)deleted text end new text begin (d)new text end 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.

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

Sec. 21.

Minnesota Statutes 2006, 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. new text begin An online learning provider must make available to the enrolling district the course syllabus, standard alignment, content outline, assessment requirements, and contact information for supplemental online courses taken by students in the enrolling district. new 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 deleted text begin teacher contact timedeleted text end new text begin course schedule new text end 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 new text begin in supplemental online learning courses new text end during a single school year deleted text begin in a maximum of 12 semester-long courses or their equivalent delivered by an online learning provider or the enrolling districtdeleted text end new text begin 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 servicesnew text end ;

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

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

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

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

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

new text begin (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. new text end

Sec. 22.

Minnesota Statutes 2006, section 124D.095, subdivision 7, is amended to read:

Subd. 7.

Department of Education.

(a) The department must review and certify online learning providers. The online learning courses and programs must be rigorous, aligned with state academic standards, and contribute to grade progression in a single subject. Online learning providers must deleted text begin affirmdeleted text end new text begin demonstratenew text end 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. 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. 23.

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

Subd. 4.

Formation of school.

(a) A sponsor may authorize one or more licensed teachers under section 122A.18, subdivision 1, to operate a charter school subject to approval by the commissioner. A board must vote on charter school application for sponsorship no later than 90 days after receiving the application. deleted text begin After 90 days, the applicant may apply to the commissioner. If a board elects not to sponsor a charter school, the applicant may appeal the board's decision to the commissioner who may elect to assist the applicant in finding an eligible sponsor.deleted text end The school must be organized and operated as a cooperative under chapter 308A or nonprofit corporation under chapter 317A and the provisions under the applicable chapter shall apply to the school except as provided in this section. Notwithstanding sections 465.717 and 465.719, a school district may create a corporation for the purpose of creating a charter school.

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

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

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

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

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

(2) the charter school is fiscally sound;

(3) the sponsor supports the expansion; and

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

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

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

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

(3) establish proper filing techniques;

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

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

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

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

Sec. 24.

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

Subd. 23a.

Related party lease costs.

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

(b) For purposes of this deleted text begin subdivisiondeleted text end new text begin section and section 124D.11new text end :

(1) A "related party" is an affiliate or close relative of the other party in question, an affiliate of a close relative, or a close relative of an affiliate.

(2) "Affiliate" means a person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, another person.

(3) "Close relative" means an individual whose relationship by blood, marriage, or adoption to another individual is no more remote than first cousin.

(4) "Person" means an individual or entity of any kind.

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

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

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

Sec. 25.

Minnesota Statutes 2006, section 124D.10, subdivision 24, is amended to read:

Subd. 24.

Pupil enrollment upon nonrenewal or termination of charter school contract.

If a contract is not renewed or is terminated according to subdivision 23, a pupil who attended the school, siblings of the pupil, or another pupil who resides in the same place as the pupil may enroll in the resident district or may submit an application to a nonresident district according to section 124D.03 at any time. Applications and notices required by section 124D.03 must be processed and provided in a prompt manner. The application and notice deadlines in section 124D.03 do not apply under these circumstances. new text begin The closed charter school must transfer the student's educational records within ten business days of closure to the student's school district of residence where the records must be retained or transferred under section 120A.22, subdivision 7.new text end

Sec. 26.

new text begin [124D.645] MULTIRACIAL DIVERSITY. new text end

new text begin (a) Notwithstanding other law or rule to the contrary and in order to effectively meet students' educational needs and foster parents' meaningful participation in their children's education, a school district may apply to the commissioner for a waiver from the requirement to maintain racial balance within a district school if the racial imbalance in that school results from: new text end

new text begin (1) the enrollment of protected multiracial students and the proportion of enrolled multiracial students reflects the proportion of multiracial students who reside in the school attendance area or who are enrolled in the grade levels served by the district; or new text end

new text begin (2) the enrollment of limited English proficiency students in a transition program that includes an intensive English component. new text end

new text begin The commissioner must grant the waiver if the district in which the school is located offers the multiracial students or the limited English proficiency students, as appropriate, the option of enrolling in another school with the requisite racial balance, and the students' parents choose not to pursue that option. new text end

new text begin (b) This section is effective for the 2006-2007 through 2010-2011 school years or until amended rules are adopted under Minnesota Rules, chapter 3535, pertaining to racial diversity, whichever comes first. 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. 27.

Minnesota Statutes 2006, section 124D.66, subdivision 3, is amended to read:

Subd. 3.

Eligible services.

(a) Assurance of mastery programs may provide direct new text begin scientific, research-based new text end instructional services new text begin and intervention new text end to an eligible pupil, or a group of eligible pupils, under the following conditions in paragraphs (b) to (d).

(b) Instruction may be provided at one or more grade levels from kindergarten to grade 8 and for students in grades 9 through 12 who were enrolled in grade 8 before the 2005-2006 school year and have failed the basic skills tests, or were enrolled in grade 8 in the 2005-2006 school year and later and who have failed the Minnesota Comprehensive Assessments (MCA-IIs) in reading, mathematics, or writing as required for high school graduation under section 120B.02. If an assessment of pupils' needs within a district demonstrates that the eligible pupils in grades kindergarten to grade 8 are being appropriately served, a district may serve eligible pupils in grades 9 to 12.

(c) Instruction must be provided under the supervision of the eligible pupil's regular classroom teacher. Instruction may be provided by the eligible pupil's classroom teacher, by another teacher, by a team of teachers, or by an education assistant or aide. A special education teacher may provide instruction, but instruction that is provided under this section is not eligible for aid under section 125A.76.

(d) The instruction that is provided must differ from the initial instruction the pupil received in the regular classroom setting. The instruction may differ by presenting different curriculum than was initially presented in the regular classroom or by presenting the same curriculum:

(1) at a different rate or in a different sequence than it was initially presented;

(2) using different teaching methods or techniques than were used initially; or

(3) using different instructional materials than were used initially.

Sec. 28.

Minnesota Statutes 2006, section 124D.84, subdivision 1, is amended to read:

Subdivision 1.

Awards.

The deleted text begin commissioner may awarddeleted text end new text begin director of the Office of Higher Education shall establish procedures for the distribution ofnew text end scholarships to any Minnesota resident student who is of one-fourth or more Indian ancestry, who has applied for other existing state and federal scholarship and grant programs, and who, in the opinion of the deleted text begin commissionerdeleted text end new text begin director of the Office of Higher Educationnew text end ,new text begin based upon postsecondary institution recommendations,new text end has the capabilities to benefit from further education. Scholarships must be for accredited degree programs in accredited Minnesota colleges or universities or for courses in accredited Minnesota business, technical, or vocational schools. Scholarships may also be given to students attending Minnesota colleges that are in candidacy status for obtaining full accreditation, and are eligible for and receiving federal financial aid programs. Students are also eligible for scholarships when enrolled as students in Minnesota higher education institutions that have joint programs with other accredited higher education institutions. Scholarships shall be used to defray the total cost of education including tuition, incidental fees, books, supplies, transportation, other related school costs and the cost of board and room and shall be paid directly to the college or school concerned where the student receives federal financial aid. The total cost of education includes all tuition and fees for each student enrolling in a public institution and the portion of tuition and fees for each student enrolling in a private institution that does not exceed the tuition and fees at a comparable public institution. Each student shall be awarded a scholarship based on deleted text begin the total cost of the student's education anddeleted text end a federal standardized need analysis. Applicants are encouraged to apply for all other sources of financial aid.

When an Indian student satisfactorily completes the work required by a certain college or school in a school year the student is eligible for additional scholarships, if additional training is necessary to reach the student's educational and vocational objective. Scholarships may not be given to any Indian student for more than five years of studynew text begin at the undergraduate level and five years at the graduate level. Students may acquire only one degree per level and one terminal degreenew text end .

Sec. 29.

new text begin [124D.8955] PARENT AND FAMILY INVOLVEMENT POLICY. new text end

new text begin (a) In order to promote and support student achievement, a local school board is encouraged to formally adopt and implement a parent and family involvement policy that promotes and supports: new text end

new text begin (1) communication between home and school that is regular, two-way, and meaningful; new text end

new text begin (2) parenting skills; new text end

new text begin (3) parents and caregivers who play an integral role in assisting student learning and learn about fostering students' academic success and learning at home and school; new text end

new text begin (4) welcoming parents in the school and seeking their support and assistance; new text end

new text begin (5) partnerships with parents in the decisions that affect children and families in the schools; and new text end

new text begin (6) providing community resources to strengthen schools, families, and student learning. new text end

new text begin (b) A school board that implements a parent and family involvement policy under paragraph (a) must convene an advisory committee composed of an equal number of resident parents who are not district employees and school staff to make recommendations to the board on developing and evaluating the board's parent and family involvement policy. If possible, the advisory committee must represent the diversity of the district. The advisory committee must consider the district's demographic diversity and barriers to parent involvement when developing its recommendations. The advisory committee must present its recommendations to the board for board consideration. new text end

new text begin (c) The board must consider best practices when implementing this policy. new text end

new text begin (d) The board periodically must review this policy to determine whether it is aligned with the most current research findings on parent involvement policies and practices and how effective the policy is in supporting increased student achievement. new text end

new text begin (e) Nothing in this section obligates a school district to exceed any parent or family involvement requirement under federal law. 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. 30.

Minnesota Statutes 2006, section 125A.50, is amended to read:

125A.50 ALTERNATIVE DELIVERY OF SPECIALIZED INSTRUCTIONAL SERVICES.

Subdivision 1.

Commissioner approval.

The commissioner may approve applications from districts new text begin initiating or significantly changing a program new text end to provide prevention services as an alternative to special education and other compensatory programs. A district with an approved program may provide instruction and services in a regular education classroom, or an area learning center, to eligible pupils. Pupils eligible to participate in the program are deleted text begin low-performingdeleted text end pupils whodeleted text begin , based on documented experience, the professional judgment of a classroom teacher, or a team of licensed professionals, woulddeleted text end new text begin need additional academic or behavioral support to succeed in the general education environment and who maynew text end eventually qualify for special education instruction or related services under sections 125A.03 to 125A.24 and 125A.65 if the intervention services authorized by this section were unavailable. Pupils may be provided services during extended school days and throughout the entire year and through the assurance of mastery program under sections 125A.03 to 125A.24 and 125A.65.

Subd. 2.

Application contents.

The application must set forth:

(1) instructional services available to eligible pupils under section 124D.66, subdivision 2, and pupils with a disability under section 125A.02;

(2) criteria to select pupils for the program and the assessment procedures to determine eligibility;

(3) involvement in the program of parents of pupils in the program, parent advocates, and community special education advocates;

(4) accounting procedures to document that federal special education money is used to supplement or increase the level of special education instruction and related services provided with state and local revenue, but in no case to supplant the state and local revenue, and that districts are expending at least the amount for special education instruction and related services required by federal law;

(5) the role of deleted text begin regulardeleted text end new text begin generalnew text end and special education teachers in planning deleted text begin anddeleted text end new text begin ,new text end implementingnew text begin , and evaluatingnew text end the program; deleted text begin anddeleted text end

(6) new text begin an annual budget detailing program expenditures; andnew text end

new text begin (7) new text end other information requested by the commissioner.

Subd. 3.

Evaluation.

The application must also set forth the review and evaluation procedures to be used by the district addressing at least the following:

(1) the number of pupils with and without a disability served;

(2) the impact of the program on the academic new text begin and behavioral new text end progress deleted text begin and social adjustmentdeleted text end of the pupils;

(3) the level of satisfaction teachers, parents, and pupils have with the program;

(4) the effect of the program on the number of referrals for special education, federal deleted text begin chapterdeleted text end new text begin Titlenew text end 1, and other programs;new text begin andnew text end

(5) deleted text begin the amount of time spent by teachers on procedural activities;deleted text end

deleted text begin (6) the increased amount of time the pupil is in a regular education classroom; and deleted text end

deleted text begin (7)deleted text end cost implications.

Subd. 4.

new text begin Budget new text end review deleted text begin for excess expendituresdeleted text end new text begin and approvalnew text end .

new text begin (a) Each year before a district receives aid under section 125A.78, the district must submit to the commissioner for review and approval a budget detailing program expenditures for the fiscal year. new text end The commissioner must deleted text begin review each application todeleted text end determine whether the personnel, equipment, supplies, deleted text begin residential aid,deleted text end and deleted text begin summerdeleted text end new text begin extendednew text end school new text begin year new text end are necessary to meet the district's obligation to provide special instruction and services to children with a disability according to sections 125A.03 to 125A.24 and 125A.65. The commissioner may not approve revenue for any expenditures determined to be unnecessary.

new text begin (b) The commissioner must not approve budget increases under this section that would cause the state to fail to meet maintenance of effort requirements under federal special education law. The commissioner must establish criteria for prioritizing and approving budget increases, which may include criteria such as maintaining current programs, locating programs throughout the state, and developing innovative programs. new text end

Subd. 5.

Annual report.

Each year the district must submit to the commissioner a report containing the information described in subdivision 3.

Subd. 6.

Pupil rights.

A pupil participating in the program must be individually evaluated according to the pupil's actual abilities and needs. A pupil who is eligible for services under sections 125A.03 to 125A.24 and 125A.65 is entitled to procedural protections provided under United States Code, title 20, section 33, in any matter that affects the identification, evaluation, placement, or change in placement of a pupil. The district must ensure the protection of a pupil's civil rights, provide equal educational opportunities, and prohibit discrimination. Failure to comply with this subdivision will at least cause a district to become ineligible to participate in the program. Notwithstanding rules of the Department of Education, new text begin the commissioner cannot waive new text end a pupil's rights under this section deleted text begin cannot be waived by the commissionerdeleted text end .

Sec. 31.

Minnesota Statutes 2006, section 125A.56, is amended to read:

125A.56 ALTERNATE INSTRUCTION REQUIRED BEFORE ASSESSMENT REFERRALdeleted text begin ; WAIVERdeleted text end .

new text begin Subdivision 1. new text end

new text begin Requirement. new text end

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

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

new text begin Subd. 2. new text end

new text begin Early intervening services program. new text end

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

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

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

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

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

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

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

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

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

Sec. 32.

Minnesota Statutes 2006, section 127A.095, subdivision 2, is amended to read:

Subd. 2.

No Child Left Behind review.

(a) The legislature intends to require the Department of Education to conduct a comprehensive review of the consolidated state plan the state submitted to the federal Department of Education to implement the No Child Left Behind Act. The Minnesota Department of Education shall seek waivers under paragraph (b). If the Department of Education is unable to obtain waivers under paragraph (b), it should recommend in its report under paragraph (b) whether the state should opt out of the No Child Left Behind Act.

(b) The commissioner, by January 15, deleted text begin 2007deleted text end new text begin 2008new text end , shall report to the house of representatives and senate committees having jurisdiction over kindergarten through grade 12 education policy and finance whether the department has received approval from the federal Department of Education to:

(1) deleted text begin allow the state to develop a plan for determining adequate yearly progress that uses multiple measures of student achievement that include value-added measurement of student achievement in addition to standardized test results to evaluate school and student performancedeleted text end new text begin participate in the growth model pilot programnew text end ;

(2) deleted text begin exclude from sanctions a school that is classified as not having made adequate yearly progress due solely to different subgroups testing below proficient levels for at least two consecutive years;deleted text end

deleted text begin (3) allow the state to average three years of data for the purposes of identifying a school for improvement; deleted text end

deleted text begin (4) allow the state to use No Child Left Behind Act money to provide supplemental education services only in the academic subject area that causes a school to miss adequate yearly progress; deleted text end

deleted text begin (5)deleted text end exclude from sanctions schools that have not made adequate yearly progress due solely to a subgroup of students with disabilities not testing at a proficient level;

deleted text begin (6)deleted text end new text begin (3) new text end identify a school as not making adequate yearly progress only after the school has missed the adequate yearly progress targets in the same deleted text begin subject anddeleted text end subgroup for two consecutive years;

deleted text begin (7) limit the score of a student within multiple subgroups to the smallest subgroup in which that student is included when calculating adequate yearly progress; deleted text end

deleted text begin (8)deleted text end new text begin (4) new text end determine when to hold schools accountable for including a student with limited English proficiency in adequate yearly progress calculations; deleted text begin anddeleted text end

deleted text begin (9) use a fully computer-adaptive test for purposes of compliance with the No Child Left Behind Act deleted text end

new text begin (5) allow a district not making adequate yearly progress to offer supplemental educational services as an option before offering school choice; new text end

new text begin (6) allow a district not making adequate yearly progress to also be the supplemental educational services provider; new text end

new text begin (7) allow the state to maintain a subgroup size to 40 for the purposes of calculating adequate yearly progress for subgroups of students with limited English proficiency and subgroups of students with disabilities; and new text end

new text begin (8) create flexibility to enable the state to define and identify highly qualified teachersnew text end .

Sec. 33.

Laws 2005, First Special Session chapter 5, article 2, section 81, as amended by Laws 2006, chapter 263, article 2, section 20, is amended to read:

Sec. 81. BOARD OF SCHOOL ADMINISTRATORS; RULEMAKING AUTHORITY.

new text begin (a) new text end On or before June 30, deleted text begin 2007deleted text end new text begin 2008new text end , the Board of School Administrators may adopt rules to reflect the changes in duties, responsibilities, and roles of school administrators under sections 121A.035, 121A.037 and 299F.30, and to make technical revisions and clarifications to Minnesota Rules, chapter 3512.

new text begin (b) Any rules the board adopts under the authority in paragraph (a) must retain the requirement in effect in calendar year 2006 governing classroom teaching experience for licensure as a principal. 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. 34.

new text begin RULEMAKING REQUIRED. new text end

new text begin (a) Notwithstanding the time limit in Minnesota Statutes, section 14.125, the Board of Teaching must adopt the rules it was mandated to adopt under Laws 2003, chapter 129, article 1, section 10. The board must publish a notice of intent to adopt rules or a notice of hearing for rules subject to this section before January 1, 2008. new text end

new text begin (b) The Board of Teaching may charge fees to issue new credentials and to renew credentials for paraprofessionals issued credentials under the rules adopted under this section. 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. 35.

new text begin RULEMAKING AUTHORIZED; SUPPLEMENTAL EDUCATION SERVICE PROVIDERS. new text end

new text begin Notwithstanding the two-year limit under Minnesota Statutes, section 14.388, subdivision 1, clause (2), the expired Minnesota Rules 2005, part 3512.5400, governing supplemental education service providers is revived and readopted without further administrative action. The commissioner of education, as soon as possible, must amend this rule under Minnesota Statutes 2006, section 14.389, to include specifications that provide the basis for withdrawing Department of Education approval from supplemental education service providers that fail to increase students' academic proficiency for two consecutive school years. The amended rule must clearly indicate: new text end

new text begin (1) how the Department of Education will distinguish the effect of supplemental education from the effect of regular school instruction on students' academic performance; and new text end

new text begin (2) whether the Department of Education will assess effectiveness of the supplemental education service providers using an absolute measure, such as percent of "proficient" students or measure individual students' growth toward proficiency over time. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactive to September 15, 2005. new text end

Sec. 36.

new text begin RULEMAKING AUTHORITY. new text end

new text begin The commissioner of education shall adopt rules for implementing and administering the graduation-required assessment for diploma (GRAD) in reading and mathematics and in writing, consistent with Minnesota Statutes, section 120B.30, subdivision 1, and for public review of the GRAD test. The rules must specify the GRAD requirements that apply to students in unique circumstances including dual enrolled students, English language learners, foreign exchange students, home school students, open enrollment students, Minnesota postsecondary enrollment options students, shared-time students, transfer students from other states, and district-placed students and students attending school under a tuition agreement. The rules must establish the criteria for determining individualized GRAD passing scores for students with an individual education plan or a Section 504 plan and for using an alternative assessment when a student's individual education plan team decides to replace the GRAD test. 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. 37.

new text begin GRANT PROGRAM TO PROMOTE PROFESSIONAL TEACHING STANDARDS. new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin A grant program to promote professional teaching standards through the National Board for Professional Teaching Standards is established to provide teachers with the opportunity to receive National Board for Professional Teaching Standards certification and to reward teachers who have already received this certification. new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin An applicant for a grant must: new text end

new text begin (1) be a licensed teacher employed in a Minnesota public school; new text end

new text begin (2) have a minimum of five school years' classroom teaching experience; and new text end

new text begin (3) demonstrate acceptance by the National Board for Professional Teaching Standards as a candidate for board certification or as a recipient of board certification. new text end

new text begin Subd. 3. new text end

new text begin Application process. new text end

new text begin To obtain a grant to participate in the National Board for Professional Teaching Standards certification process or to receive a reward for already completing the board certification process, a teacher must submit an application to the commissioner of education in the form and manner established by the commissioner. The commissioner shall consult with the Board of Teaching when reviewing the applications. The commissioner shall also provide program support to assist applicants during the national board certification process. new text end

new text begin Subd. 4. new text end

new text begin Grant awards; proceeds. new text end

new text begin (a) The commissioner may award grants of $1,000 to eligible teachers accepted as candidates for the National Board for Professional Teaching Standards certification or for national board certification renewal for partial payment of the teacher's candidate application fee. new text end

new text begin (b) The commissioner shall award grants of $3,000 to all eligible teacher applicants who hold certification from the National Board for Professional Teaching Standards and $2,000 for renewal of their national board certification.new text end * Paragraph (b) was indicated as vetoed by the governor.

new text begin (c) The commissioner shall also award grants to eligible teachers who have received National Board for Professional Teaching Standards certification within one year prior to the date of the teacher's application for a grant to use for educational purposes, including purchasing instructional materials, equipment, or supplies, and pursuing professional development opportunities. The commissioner, under this paragraph, may award grants not to exceed $1,000 after consulting with interested stakeholders regarding the grant amount. new text end

Sec. 38.

new text begin WORLD LANGUAGES PILOT PROGRAM GRANTS. new text end

new text begin (a) A pilot program awarding five world languages grants to interested and qualified school sites and school districts is established for fiscal years 2008 and 2009 to develop and implement sustainable, high-quality model world languages programs and to enhance existing world languages programs at various grade levels for students in kindergarten through grade 12. Program participants must simultaneously support both non-English language learners in maintaining their native language while mastering English and native English speakers in learning other languages. new text end

new text begin (b) Interested school sites and school districts must apply to the commissioner of education in the form and manner the commissioner determines. The application must indicate whether the applicant intends to develop a new world languages program or expand an existing world languages program and whether the applicant intends to offer more intensive programs or programs that are readily accessible to larger numbers of students. Applicants must agree to disseminate information about their programs to interested school sites and school districts. new text end

new text begin (c) The commissioner must award grants to qualified applicants that satisfy the requirements in paragraphs (a) and (b). To the extent there are qualified applicants, the commissioner must award grants to qualified applicants on an equitable geographic basis to the extent feasible. The commissioner must award three grants to kindergarten through grade 8 sites, one grant to a qualified site interested in developing or enhancing a sustainable Mandarin Chinese program, and one grant to an indigenous American Indian world languages program. Grantees must expend the grant consistent with the content of their application and this section. new text end

new text begin (d) The commissioner shall provide for an evaluation of the grantees to identify exemplary model world languages programs and the staff development needs of world languages teachers and report the findings of the evaluation to the education policy and finance committees of the legislature by February 15, 2010. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2007-2008 school year. new text end

Sec. 39.

new text begin BILINGUAL AND MULTILINGUAL CERTIFICATES; DEPARTMENT OF EDUCATION. new text end

new text begin The Department of Education, in consultation with interested stakeholders, must develop and recommend to the legislature by February 15, 2008, the standards and process for awarding bilingual and multilingual certificates to those kindergarten through grade 12 students who demonstrate and maintain a requisite level of proficiency in multiple languages. 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. 40.

new text begin SCHOOL PERFORMANCE REPORT CARDS; ADVISORY GROUP RECOMMENDATIONS. new text end

new text begin (a) To sustain equity and excellence in education, the Independent Office of Educational Accountability under Minnesota Statutes, section 120B.31, subdivision 3, must convene and facilitate an advisory group of curriculum and measurement experts to consider and recommend how to structure school performance data and school performance report cards under Minnesota Statutes, section 120B.36, subdivision 1, to fully, fairly, and accurately report student achievement and emphasize school excellence under Minnesota's system of educational accountability and public reporting. The advisory group at least must consider and recommend how to: evaluate student achievement using multiple measures of growth that take into account student demographic characteristics, consistent with Minnesota Statutes, section 120B.31, subdivision 4; and identify outstanding schools based on student achievement and achievement growth and using multiple performance measures that are objective and consistent with the highest standards in the field of educational measurements and accountability. new text end

new text begin (b) Advisory group members under paragraph (a) include: two qualified experts in measurement in education selected by the State Council on Measurement in Education; one qualified expert in elementary curriculum and one qualified expert in secondary curriculum selected by the Minnesota Association for Supervision and Curriculum Development; three regionally diverse school district research and evaluation directors selected by the Minnesota Assessment Group; one school superintendent selected by the Minnesota Association of School Administrators; one University of Minnesota faculty selected by the dean of the College of Education and Human Development; one licensed teacher selected by Education Minnesota; two parents selected by the Minnesota Parent Teachers Association with expertise in measurement in education; and two employees from the Minnesota Department of Education selected by the commissioner. Advisory group members' terms and other advisory group matters are subject to Minnesota Statutes, section 15.059, subdivision 6. The Independent Office of Educational Accountability must present the advisory group's recommendations under paragraph (a) to the education policy and finance committees of the legislature by February 15, 2008. The advisory group expires February 16, 2008. 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. 41.

new text begin ADVISORY TASK FORCE ON MINNESOTA AMERICAN INDIAN TRIBES AND COMMUNITIES AND K-12 STANDARDS-BASED REFORM. new text end

new text begin Subdivision 1. new text end

new text begin Duties. new text end

new text begin An advisory task force on Minnesota American Indian tribes and communities and K-12 standards-based reform is established to examine the impact of state and federal standards-based reform on Minnesota's K-12 students, with particular attention to the impacts on American Indian students enrolled in Minnesota schools. The task force, in consultation with American Indian educators, parents, and others who advocate for American Indian children, must determine if: new text end

new text begin (1) state education standards and assessments are appropriate for American Indian students; new text end

new text begin (2) American Indian students are fairly compared; new text end

new text begin (3) American Indian students receive the assistance they need to achieve the state standards; and new text end

new text begin (4) schools receive financial and technical assistance sufficient to meet the educational needs of American Indian students. new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin (a) The commissioner of education shall appoint representatives from the following organizations and agencies to the task force: new text end

new text begin (1) Department of Education staff experienced in working with American Indian students and programs; new text end

new text begin (2) Minnesota American Indian tribes and communities; new text end

new text begin (3) the Minnesota School Board Association; new text end

new text begin (4) school administrators; new text end

new text begin (5) Education Minnesota; new text end

new text begin (6) the state Board of Teaching; new text end

new text begin (7) the Minnesota Council on Indian Affairs; new text end

new text begin (8) postsecondary faculty who serve as instructors in teacher preparation programs; and new text end

new text begin (9) local community service providers who work with Minnesota American Indian tribes and communities. new text end

new text begin (b) After the task force has been convened, the commissioner of education may appoint additional public members recommended by members of the task force. new text end

new text begin Subd. 3. new text end

new text begin Organization; compensation. new text end

new text begin (a) The commissioner shall complete appointments to the task force, under subdivision 2, paragraph (a), by September 1, 2007. The commissioner of education or the commissioner's designee shall convene the first meeting of the task force within 30 days after the appointments are completed. The task force shall select a chair from its membership at the first meeting. new text end

new text begin (b) Vacancies, renewal, and compensation of members are as provided in Minnesota Statutes, section 15.059, subject to the availability of appropriations. new text end

new text begin (c) The commissioner of education must provide the task force with administrative and clerical support. new text end

new text begin Subd. 4. new text end

new text begin Recommendations. new text end

new text begin By February 15, 2008, the task force must report recommendations and suggest implementing legislation to the legislative committees and divisions with jurisdiction over education policy and finance regarding the changes, if any, to the state's educational performance standards, content requirements, assessments measures, and teacher preparation programs that will enable Minnesota schools to most effectively meet the educational needs of American Indian students consistent with Minnesota Statutes, sections 124D.71 to 124D.82. new text end

new text begin Subd. 5. new text end

new text begin Expiration. new text end

new text begin This section expires the day following the submission of the report required by subdivision 4. 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. 42.

new text begin AMERICAN INDIAN SCHOLARSHIP. new text end

new text begin Administration of the American Indian scholarship program under Minnesota Statutes, section 124D.84, is transferred from the Department of Education to the Minnesota Office of Higher Education. The director of the Minnesota Office of Higher Education must contract with at least one knowledgeable person residing in or near the city of Bemidji to assist students with the scholarships under Minnesota Statutes, section 124D.84, subdivision 1, and with other information about financial aid for which the students may be eligible. Bemidji State University must provide office space at no cost to the Minnesota Office of Higher Education for purposes of administering the American Indian scholarship program under Minnesota Statutes, section 124D.84. new text end

Sec. 43.

new text begin WORLD LANGUAGES RESOURCES. new text end

new text begin (a) The commissioner of education shall employ a full-time state coordinator for world languages education within the department by July 1, 2007. The commissioner shall seek advice from the quality teaching network before assigning or hiring the coordinator. The coordinator, at a minimum, shall: new text end

new text begin (1) assist charter schools and school districts in planning to develop or enhance their capacity to offer world languages courses and programs; new text end

new text begin (2) collaborate with Minnesota world languages professionals and charter schools and school districts and continuously seek their advice in developing all aspects of world languages programs; new text end

new text begin (3) survey Minnesota charter schools and school districts to (i) determine the types of existing world languages programs including, among others, those that use information technology to provide high-quality world languages instruction, (ii) identify exemplary model world languages programs, and (iii) identify and address staff development needs of current world languages teachers, preservice teachers, and teacher preparation programs; new text end

new text begin (4) identify successful world languages programs in other states; new text end

new text begin (5) consult with interested stakeholders to prepare a report for the commissioner of education to submit by February 15, 2008, to the education policy and finance committees of the legislature assessing the feasibility and structure of a statewide world languages graduation requirement under Minnesota Statutes, section 120B.021, subdivision 1; and new text end

new text begin (6) beginning February 1, 2008, and until February 1, 2012, report annually to the education policy and finance committees of the legislature on the status of world languages in Minnesota and the programmatic needs identified by charter school and school district surveys, and make recommendations on how to address the identified needs. new text end

new text begin (b) After carefully examining existing world languages assessments, including among other considerations the ease or difficulty with which the assessments may be adapted to world languages not currently assessed, the commissioner, by July 1, 2009, shall recommend an assessment tool for charter schools and school districts to use in measuring student progress in acquiring proficiency in world languages. new text end

new text begin (c) The commissioner, upon request, must evaluate the plans of charter schools and school districts to develop or enhance their capacity to offer world languages courses and programs and continue to offer technical assistance to districts in developing or enhancing world languages programs. The department shall assist districts in monitoring local assessment results. 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. 44.

new text begin APPROPRIATIONS. new text end

new text begin Subdivision 1. new text end

new text begin Minnesota Office of Higher Education. new text end

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

new text begin Subd. 2. new text end

new text begin American Indian scholarships. new text end

new text begin For American Indian scholarships under Minnesota Statutes, section 124D.84: new text end

new text begin $ new text end new text begin 1,950,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 1,950,000 new text end new text begin ..... new text end new text begin 2009 new text end

new text begin Of this appropriation, $75,000 each year is for administration under section 42. new text end

Sec. 45.

new text begin APPROPRIATIONS. new text end

new text begin Subdivision 1. new text end

new text begin Board of Regents of the University of Minnesota. new text end

new text begin The sums indicated in this section are appropriated from the general fund to the Board of Regents of the University of Minnesota for the fiscal years designated. new text end

new text begin Subd. 2. new text end

new text begin Independent Office of Educational Accountability. new text end

new text begin For the Independent Office of Educational Accountability under Minnesota Statutes, section 120B.31, subdivision 3: 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 2008 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 This is a onetime appropriation.new text end * (The preceding subdivision was indicated as vetoed by the governor.)

Sec. 46.

new text begin APPROPRIATIONS. new text end

new text begin Subdivision 1. new text end

new text begin Department. 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 Charter school building lease aid. new text end

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

new text begin $ new text end new text begin 31,875,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 36,193,000 new text end new text begin ..... new text end new text begin 2009 new text end

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

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

new text begin Subd. 3. new text end

new text begin Charter school startup cost aid. new text end

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

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

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

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

new text begin Subd. 4. new text end

new text begin Integration aid. new text end

new text begin For integration aid under Minnesota Statutes, section 124D.86, subdivision 5: new text end

new text begin $ new text end new text begin 61,769,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 61,000,000 new text end new text begin ..... new text end new text begin 2009 new text end

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

new text begin The 2009 appropriation includes $6,216,000 for 2008 and $54,784,000 for 2009. new text end

new text begin Subd. 5. new text end

new text begin Magnet school program grants. new text end

new text begin For magnet school program grants: new text end

new text begin $ new text end new text begin 750,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 750,000 new text end new text begin ..... new text end new text begin 2009 new text end

new text begin These amounts may be used for magnet school programs under Minnesota Statutes, section 124D.871. new text end

new text begin Up to $100,000 each year is available for site-based decision-making grant proposals that meet the goals outlined in section 124D.871 under Minnesota Statutes, section 123B.04, subdivision 2, paragraph (g). new text end

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

new text begin Subd. 6. new text end

new text begin Interdistrict desegregation or integration transportation grants. new text end

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

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

new text begin Subd. 7. new text end

new text begin Success for the future. new text end

new text begin For American Indian success for the future grants under Minnesota Statutes, section 124D.81: new text end

new text begin $ new text end new text begin 2,137,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 2,137,000 new text end new text begin ..... new text end new text begin 2009 new text end

new text begin The 2008 appropriation includes $213,000 for 2007 and $1,924,000 for 2008. new text end

new text begin The 2009 appropriation includes $213,000 for 2008 and $1,924,000 for 2009. new text end

new text begin Subd. 8. new text end

new text begin American Indian teacher preparation grants. new text end

new text begin For joint grants to assist American Indians to become teachers under Minnesota Statutes, section 122A.63: new text end

new text begin $ new text end new text begin 190,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 190,000 new text end new text begin ..... new text end new text begin 2009 new text end

new text begin Subd. 9. new text end

new text begin Tribal contract schools. new text end

new text begin For tribal contract school aid under Minnesota Statutes, section 124D.83: new text end

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

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

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

new text begin Subd. 10. new text end

new text begin Early childhood programs at tribal schools. new text end

new text begin For early childhood family education programs at tribal contract schools under Minnesota Statutes, section 124D.83, subdivision 4: new text end

new text begin $ new text end new text begin 68,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 68,000 new text end new text begin ..... new text end new text begin 2009 new text end

new text begin Subd. 11. new text end

new text begin Statewide testing and reporting system. new text end

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

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

new text begin 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. new text end

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

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

new text begin Subd. 12. new text end

new text begin Examination fees; teacher training and support programs. new text end

new text begin (a) For students' advanced placement and international baccalaureate examination fees under Minnesota Statutes, section 120B.13, subdivision 3, and the training and related costs for teachers and other interested educators under Minnesota Statutes, section 120B.13, subdivision 1: new text end

new text begin $ new text end new text begin 4,500,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 4,500,000 new text end new text begin ..... new text end new text begin 2009 new text end

new text begin (b) The advanced placement program shall receive 75 percent of the appropriation each year and the international baccalaureate program shall receive 25 percent of the appropriation each year. The department, in consultation with representatives of the advanced placement and international baccalaureate programs selected by the Advanced Placement Advisory Council and IBMN, respectively, shall determine the amounts of the expenditures each year for examination fees and training and support programs for each program. new text end

new text begin (c) Notwithstanding Minnesota Statutes, section 120B.13, subdivision 1, at least $500,000 each year is for teachers to attend subject matter summer training programs and follow-up support workshops approved by the advanced placement or international baccalaureate programs. The amount of the subsidy for each teacher attending an advanced placement or international baccalaureate summer training program or workshop shall be the same. The commissioner shall determine the payment process and the amount of the subsidy. new text end

new text begin (d) The commissioner shall pay all examination fees for all students of low-income families under Minnesota Statutes, section 120B.13, subdivision 3, and to the extent of available appropriations shall also pay examination fees for other students sitting for an advanced placement examination, international baccalaureate examination, or both. new text end

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

new text begin Subd. 13. new text end

new text begin Preadvanced placement, advanced placement, international baccalaureate, and concurrent enrollment programs. new text end

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

new text begin $ new text end new text begin 6,500,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 6,500,000 new text end new text begin ..... new text end new text begin 2009 new text end

new text begin 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 end

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

new text begin Subd. 14. new text end

new text begin Collaborative urban educator. new text end

new text begin For collaborative urban educator grants under Minnesota Statutes, section 122A.641: new text end

new text begin $ new text end new text begin 528,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 528,000 new text end new text begin ..... new text end new text begin 2009 new text end

new text begin $210,000 each year is for the Southeast Asian teacher program at Concordia University, St. Paul; $159,000 each year is for the collaborative urban educator program at the University of St. Thomas; and $159,000 each year is for the Center for Excellence in Urban Teaching at Hamline University. Grant recipients must collaborate with urban and nonurban school districts. new text end

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

new text begin Subd. 15. new text end

new text begin Youth works program. new text end

new text begin For funding youth works programs under Minnesota Statutes, sections 124D.37 to 124D.45: new text end

new text begin $ new text end new text begin 900,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 900,000 new text end new text begin ..... new text end new text begin 2009 new text end

new text begin A grantee organization may provide health and child care coverage to the dependents of each participant enrolled in a full-time youth works program to the extent the coverage is not otherwise available. new text end

new text begin Subd. 16. new text end

new text begin Early childhood literacy programs. new text end

new text begin For early childhood literacy programs under Minnesota Statutes, section 119A.50, subdivision 3: new text end

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

new text begin $1,000,000 each year is for leveraging federal and private funding to support AmeriCorps members serving in the Minnesota Reading Corps program established by Serve Minnesota, including costs associated with the training and teaching of early literacy skills to children age three to grade 3 and the evaluation of the impact of the program under Minnesota Statutes, sections 124D.38, subdivision 2, and 124D.42, subdivision 6. new text end

new text begin $500,000 each year is for words work grants for early childhood literacy allocated by the commissioner under Minnesota Statutes, section 119A.50, subdivision 3, paragraph (a). new text end

new text begin Any balance in the first year does not cancel but is available in the second year. The base appropriation for fiscal year 2010 and later is $1,000,000. new text end

new text begin Subd. 17. new text end

new text begin St. Croix River Education District. new text end

new text begin For a grant to the St. Croix River Education District: new text end

new text begin $ new text end new text begin 500,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 500,000 new text end new text begin ..... new text end new text begin 2009 new text end

new text begin These funds must be used to: new text end

new text begin (1) deliver standardized research-based professional development in problem-solving, including response to intervention, scientifically based reading instruction, and standards-aligned instruction and assessment; new text end

new text begin (2) provide coaching to targeted districts throughout the state; new text end

new text begin (3) deliver large scale training throughout the state; new text end

new text begin (4) provide ongoing technical assistance to schools; new text end

new text begin (5) assist with implementing professional development content into higher education instructional curricula; and new text end

new text begin (6) evaluate the effectiveness of project activities. new text end

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

new text begin Subd. 18. new text end

new text begin Student organizations. new text end

new text begin For student organizations: new text end

new text begin $ new text end new text begin 725,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 725,000 new text end new text begin ..... new text end new text begin 2009 new text end

new text begin $40,000 each year is for student organizations serving health occupations. new text end

new text begin $38,000 each year is for student organizations serving service occupations. new text end

new text begin $88,000 each year is for student organizations serving trade and industry occupations. new text end

new text begin $84,000 each year is for student organizations serving business occupations. new text end

new text begin $131,000 each year is for student organizations serving agriculture occupations. new text end

new text begin $125,000 each year is for student organizations serving family and consumer science occupations. new text end

new text begin $95,000 each year is for student organizations serving marketing occupations. new text end

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

new text begin Subd. 19. new text end

new text begin Educational Planning and Assessment System (EPAS) program. new text end

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

new text begin $ new text end new text begin 829,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 829,000 new text end new text begin ..... new text end new text begin 2009 new text end

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

new text begin Subd. 20. new text end

new text begin College-level examination program (CLEP). new text end

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

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

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

new text begin Subd. 21. new text end

new text begin World Languages grants. new text end

new text begin For World Languages grants: new text end

new text begin $ new text end new text begin 250,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 250,000 new text end new text begin ..... new text end new text begin 2009 new text end

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

new text begin Subd. 22. new text end

new text begin National Board for Professional Teaching Standards. new text end

new text begin (a) For professional teacher licensure: new text end

new text begin $ new text end new text begin 250,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 250,000 new text end new text begin ..... new text end new text begin 2009 new text end

new text begin (b) $63,000 of this amount is for grants of $1,000 each to eligible teachers accepted as candidates for National Board for Professional Teaching Standards certification according to Minnesota Statutes, section 122A.73, subdivision 4, paragraph (a). The grant award shall be made to the national board. new text end

new text begin (c) $125,000 of this amount is for grants of $2,000 each to eligible teachers according to Minnesota Statutes, section 122A.73, subdivision 4, paragraph (b). new text end

new text begin (d) $62,000 of this amount is for grants of up to $1,000 each to eligible teachers who have received National Board for Professional Teaching Standards certification according to Minnesota Statutes, section 122A.73, subdivision 4, paragraph (c). new text end

new text begin (e) Any balance in the first year does not cancel but is available in the second year. new text end

new text begin (f) This is a onetime appropriation.new text end * (The preceding subdivision was indicated as vetoed by the governor.)

new text begin Subd. 23. new text end

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

new text begin For teacher centers for mathematics and science teacher development: new text end

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

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

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

new text begin Subd. 24. new text end

new text begin First Grade Preparedness. new text end

new text begin For first grade preparedness grants under Minnesota Statutes, section 124D.081: new text end

new text begin $ new text end new text begin 7,250,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 7,250,000 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

new text begin Subd. 25. new text end

new text begin Statewide science, technology, engineering, and math initiative. new text end

new text begin For a grant to the Science Museum of Minnesota for the statewide science, technology, engineering, and math initiative: new text end

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

new text begin Of this amount, $750,000 each year is available for the teacher resource center and other related programs and $750,000 each year is available for the expansion and support of the middle school math and science initiative, including teacher workshops and expanded outreach programs in classrooms. This grant includes funding for an evaluation of the programs by an entity approved by the Department of Education. new text end

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

Sec. 47.

new text begin REVISOR'S INSTRUCTION. new text end

new text begin (a) The revisor of statutes shall renumber Minnesota Statutes, section 124D.84 to section 136A.126, correct cross-references, and make other necessary corrections to implement section 41. new text end

new text begin (b) In Minnesota Statutes, the revisor of statutes shall codify Minnesota Statutes, section 124D.10, subdivision 23a, paragraph (b), as Minnesota Statutes, section 124D.10, subdivision 26. new text end

Sec. 48.

new text begin REPEALER. new text end

new text begin Minnesota Statutes 2006, sections 120B.233; and 124D.62, new text end new text begin are repealed. new text end

ARTICLE 3

SPECIAL PROGRAMS

Section 1.

Minnesota Statutes 2006, section 123B.92, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

For purposes of this section and section 125A.76, the terms defined in this subdivision have the meanings given to them.

(a) "Actual expenditure per pupil transported in the regular and excess transportation categories" means the quotient obtained by dividing:

(1) the sum of:

(i) all expenditures for transportation in the regular category, as defined in paragraph (b), clause (1), and the excess category, as defined in paragraph (b), clause (2), plus

(ii) an amount equal to one year's depreciation on the district's school bus fleet and mobile units computed on a straight line basis at the rate of 15 percent per year for districts operating a program under section 124D.128 for grades 1 to 12 for all students in the district and 12-1/2 percent per year for other districts of the cost of the fleet, plus

(iii) an amount equal to one year's depreciation on the district's type three school buses, as defined in section 169.01, subdivision 6, clause (5), which must be used a majority of the time for pupil transportation purposes, computed on a straight line basis at the rate of 20 percent per year of the cost of the type three school buses by:

(2) the number of pupils eligible for transportation in the regular category, as defined in paragraph (b), clause (1), and the excess category, as defined in paragraph (b), clause (2).

(b) "Transportation category" means a category of transportation service provided to pupils as follows:

(1) Regular transportation is:

(i) transportation to and from school during the regular school year for resident elementary pupils residing one mile or more from the public or nonpublic school they attend, and resident secondary pupils residing two miles or more from the public or nonpublic school they attend, excluding desegregation transportation and noon kindergarten transportation; but with respect to transportation of pupils to and from nonpublic schools, only to the extent permitted by sections 123B.84 to 123B.87;

(ii) transportation of resident pupils to and from language immersion programs;

(iii) transportation of a pupil who is a custodial parent and that pupil's child between the pupil's home and the child care provider and between the provider and the school, if the home and provider are within the attendance area of the school;

(iv) transportation to and from or board and lodging in another district, of resident pupils of a district without a secondary school; and

(v) transportation to and from school during the regular school year required under subdivision 3 for nonresident elementary pupils when the distance from the attendance area border to the public school is one mile or more, and for nonresident secondary pupils when the distance from the attendance area border to the public school is two miles or more, excluding desegregation transportation and noon kindergarten transportation.

For the purposes of this paragraph, a district may designate a licensed day care facility, school day care facility, respite care facility, the residence of a relative, or the residence of a person chosen by the pupil's parent or guardian as the home of a pupil for part or all of the day, if requested by the pupil's parent or guardian, and if that facility or residence is within the attendance area of the school the pupil attends.

(2) Excess transportation is:

(i) transportation to and from school during the regular school year for resident secondary pupils residing at least one mile but less than two miles from the public or nonpublic school they attend, and transportation to and from school for resident pupils residing less than one mile from school who are transported because of extraordinary traffic, drug, or crime hazards; and

(ii) transportation to and from school during the regular school year required under subdivision 3 for nonresident secondary pupils when the distance from the attendance area border to the school is at least one mile but less than two miles from the public school they attend, and for nonresident pupils when the distance from the attendance area border to the school is less than one mile from the school and who are transported because of extraordinary traffic, drug, or crime hazards.

(3) Desegregation transportation is transportation within and outside of the district during the regular school year of pupils to and from schools located outside their normal attendance areas under a plan for desegregation mandated by the commissioner or under court order.

(4) "Transportation services for pupils with disabilities" is:

(i) transportation of pupils with disabilities who cannot be transported on a regular school bus between home or a respite care facility and school;

(ii) necessary transportation of pupils with disabilities from home or from school to other buildings, including centers such as developmental achievement centers, hospitals, and treatment centers where special instruction or services required by sections 125A.03 to 125A.24, 125A.26 to 125A.48, and 125A.65 are provided, within or outside the district where services are provided;

(iii) necessary transportation for resident pupils with disabilities required by sections 125A.12, and 125A.26 to 125A.48;

(iv) board and lodging for pupils with disabilities in a district maintaining special classes;

(v) transportation from one educational facility to another within the district for resident pupils enrolled on a shared-time basis in educational programs, and necessary transportation required by sections 125A.18, and 125A.26 to 125A.48, for resident pupils with disabilities who are provided special instruction and services on a shared-time basis or if resident pupils are not transported, the costs of necessary travel between public and private schools or neutral instructional sites by essential personnel employed by the district's program for children with a disability;

(vi) transportation for resident pupils with disabilities to and from board and lodging facilities when the pupil is boarded and lodged for educational purposes; and

(vii) services described in clauses (i) to (vi), when provided for pupils with disabilities in conjunction with a summer instructional program that relates to the pupil's individual education plan or in conjunction with a learning year program established under section 124D.128.

For purposes of computing special education deleted text begin base revenuedeleted text end new text begin initial aidnew text end under section 125A.76, subdivision 2, the cost of providing transportation for children with disabilities includes (A) the additional cost of transporting a homeless student from a temporary nonshelter home in another district to the school of origin, or a formerly homeless student from a permanent home in another district to the school of origin but only through the end of the academic year; and (B) depreciation on district-owned school buses purchased after July 1, 2005, and used primarily for transportation of pupils with disabilities, calculated according to paragraph (a), clauses (ii) and (iii). Depreciation costs included in the disabled transportation category must be excluded in calculating the actual expenditure per pupil transported in the regular and excess transportation categories according to paragraph (a).

(5) "Nonpublic nonregular transportation" is:

(i) transportation from one educational facility to another within the district for resident pupils enrolled on a shared-time basis in educational programs, excluding transportation for nonpublic pupils with disabilities under clause (4);

(ii) transportation within district boundaries between a nonpublic school and a public school or a neutral site for nonpublic school pupils who are provided pupil support services pursuant to section 123B.44; and

(iii) late transportation home from school or between schools within a district for nonpublic school pupils involved in after-school activities.

(c) "Mobile unit" means a vehicle or trailer designed to provide facilities for educational programs and services, including diagnostic testing, guidance and counseling services, and health services. A mobile unit located off nonpublic school premises is a neutral site as defined in section 123B.41, subdivision 13.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008. new text end

Sec. 2.

Minnesota Statutes 2006, section 124D.454, subdivision 2, is amended to read:

Subd. 2.

Definitions.

For the purposes of this section, the definitions in this subdivision apply.

(a) deleted text begin "Base year" means the second fiscal year preceding the fiscal year for which aid will be paid.deleted text end

deleted text begin (b)deleted text end "Basic revenue" has the meaning given it in section 126C.10, subdivision 2. For the purposes of computing basic revenue pursuant to this section, each child with a disability shall be counted as prescribed in section 126C.05, subdivision 1.

deleted text begin (c) "Average daily membership" has the meaning given it in section 126C.05. deleted text end

deleted text begin (d) "Program growth factor" means 1.00 for fiscal year 1998 and later. deleted text end

deleted text begin (e) "Aid percentage factor" means 100 percent for fiscal year 2000 and later. deleted text end

deleted text begin (f)deleted text end new text begin (b) new text end "Essential personnel" means a licensed teacher, licensed support services staff person, paraprofessional providing direct services to students, or licensed personnel under subdivision 12. This definition is not intended to change or modify the definition of essential employee in chapter 179A.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008. new text end

Sec. 3.

Minnesota Statutes 2006, section 124D.454, subdivision 3, is amended to read:

Subd. 3.

deleted text begin Base revenuedeleted text end new text begin Initial aidnew text end .

deleted text begin (a)deleted text end The transition-disabled program deleted text begin base revenuedeleted text end new text begin initial aid new text end equals the sum of the following amounts computed using deleted text begin basedeleted text end new text begin current new text end year data:

(1) 68 percent of the salary of each essential licensed person or approved paraprofessional who provides direct instructional services to students employed during that fiscal year for services rendered in that district's transition program for children with a disability;

(2) 47 percent of the costs of necessary equipment for transition programs for children with a disability;

(3) 47 percent of the costs of necessary travel between instructional sites by transition program teachers of children with a disability but not including travel to and from local, regional, district, state, or national career and technical student organization meetings;

(4) 47 percent of the costs of necessary supplies for transition programs for children with a disability but not to exceed an average of $47 in any one school year for each child with a disability receiving these services;

(5) for transition programs for children with disabilities provided by a contract approved by the commissioner with public, private, or voluntary agencies other than a Minnesota school district or cooperative center, in place of programs provided by the district, 52 percent of the difference between the amount of the contract and the basic revenue of the district for that pupil for the fraction of the school day the pupil receives services under the contract;

(6) for transition programs for children with disabilities provided by a contract approved by the commissioner with public, private, or voluntary agencies other than a Minnesota school district or cooperative center, that are supplementary to a full educational program provided by the school district, 52 percent of the amount of the contract; and

(7) for a contract approved by the commissioner with another Minnesota school district or cooperative center for vocational evaluation services for children with a disability for children that are not yet enrolled in grade 12, 52 percent of the amount of the contract.

deleted text begin (b) If requested by a school district for transition programs during the base year for deleted text end deleted text begin less than the full school year, the commissioner may adjust the base revenue to reflect deleted text end deleted text begin the expenditures that would have occurred during the base year had the program been deleted text end deleted text begin operated for the full year. deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008. new text end

Sec. 4.

Minnesota Statutes 2006, section 125A.11, subdivision 1, is amended to read:

Subdivision 1.

Nonresident tuition rate; other costs.

(a) For fiscal year 2006, when a school district provides instruction and services outside the district of residence, board and lodging, and any tuition to be paid, shall be paid by the district of residence. The tuition rate to be charged for any child with a disability, excluding a pupil for whom tuition is calculated according to section 127A.47, subdivision 7, paragraph (d), must be the sum of (1) the actual cost of providing special instruction and services to the child including a proportionate amount for special transportation and unreimbursed building lease and debt service costs for facilities used primarily for special education, plus (2) the amount of general education revenue and referendum aid attributable to the pupil, minus (3) the amount of special education aid for children with a disability received on behalf of that child, minus (4) if the pupil receives special instruction and services outside the regular classroom for more than 60 percent of the school day, the amount of general education revenue and referendum aid, excluding portions attributable to district and school administration, district support services, operations and maintenance, capital expenditures, and pupil transportation, attributable to that pupil for the portion of time the pupil receives special instruction and services outside of the regular classroom. If the boards involved do not agree upon the tuition rate, either board may apply to the commissioner to fix the rate. Notwithstanding chapter 14, the commissioner must then set a date for a hearing or request a written statement from each board, giving each board at least ten days' notice, and after the hearing or review of the written statements the commissioner must make an order fixing the tuition rate, which is binding on both school districts. General education revenue and referendum new text begin equalization new text end aid attributable to a pupil must be calculated using the resident district's average general education new text begin revenue new text end and referendum deleted text begin revenuedeleted text end new text begin equalization aidnew text end per adjusted pupil unit.

(b) For fiscal year 2007 and later, when a school district provides special instruction and services for a pupil with a disability as defined in section 125A.02 outside the district of residence, excluding a pupil for whom an adjustment to special education aid is calculated according to section 127A.47, subdivision 7, paragraph (e), special education aid paid to the resident district must be reduced by an amount equal to (1) the actual cost of providing special instruction and services to the pupil, including a proportionate amount for special transportation and unreimbursed building lease and debt service costs for facilities used primarily for special education, plus (2) the amount of general education revenue and referendum new text begin equalization new text end aid attributable to that pupil, new text begin calculated using the resident district's average general education revenue and referendum equalization aid per adjusted pupil unit excluding basic skills revenue, elementary sparsity revenue and secondary sparsity revenue,new text end minus (3) the amount of special education aid for children with a disability received on behalf of that child, minus (4) if the pupil receives special instruction and services outside the regular classroom for more than 60 percent of the school day, the amount of general education revenue and referendum new text begin equalization new text end aid, excluding portions attributable to district and school administration, district support services, operations and maintenance, capital expenditures, and pupil transportation, attributable to that pupil for the portion of time the pupil receives special instruction and services outside of the regular classroomdeleted text begin . general education revenue and referendum aid attributable to a pupil must bedeleted text end new text begin ,new text end calculated using the resident district's average general education revenue and referendum new text begin equalization new text end aid per adjusted pupil unitnew text begin excluding basic skills revenue, elementary sparsity revenue and secondary sparsity revenue and the serving district's basic skills revenue, elementary sparsity revenue and secondary sparsity revenue per adjusted pupil unit. Notwithstanding clauses (1) and (4), for pupils served by a cooperative unit without a fiscal agent school district, the general education revenue and referendum equalization aid attributable to a pupil must be calculated using the resident district's average general education revenue and referendum equalization aid excluding elementary sparsity revenue and secondary sparsity revenuenew text end . Special education aid paid to the district or cooperative providing special instruction and services for the pupil must be increased by the amount of the reduction in the aid paid to the resident district. Amounts paid to cooperatives under this subdivision and section 127A.47, subdivision 7, shall be recognized and reported as revenues and expenditures on the resident school district's books of account under sections 123B.75 and 123B.76. If the resident district's special education aid is insufficient to make the full adjustment, the remaining adjustment shall be made to other state aid due to the district.

(c) Notwithstanding paragraphs (a) and (b) and section 127A.47, subdivision 7, paragraphs (d) and (e), a charter school where more than 30 percent of enrolled students receive special education and related services, new text begin a site approved under section 125A.515, new text end an intermediate district, a special education cooperative, or a school district that served as the applicant agency for a group of school districts for federal special education aids for fiscal year 2006 may apply to the commissioner for authority to charge the resident district an additional amount to recover any remaining unreimbursed costs of serving pupils with a disability. The application must include a description of the costs and the calculations used to determine the unreimbursed portion to be charged to the resident district. Amounts approved by the commissioner under this paragraph must be included in the tuition billings or aid adjustments under paragraph (a) or (b), or section 127A.47, subdivision 7, paragraph (d) or (e), as applicable.

(d) For purposes of this subdivision and section 127A.47, subdivision 7, paragraphs (d) and (e), "general education revenue and referendum new text begin equalizationnew text end aid" means the sum of the general education revenue according to section 126C.10, subdivision 1, excluding alternative teacher compensation revenue, plus the referendum new text begin equalizationnew text end aid according to section 126C.17, subdivision 7, as adjusted according to section 127A.47, subdivision 7, paragraphs (a) to (c).

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 125A.13, is amended to read:

125A.13 SCHOOL OF PARENTS' CHOICE.

new text begin (a) new text end Nothing in this chapter must be construed as preventing parents of a child with a disability from sending the child to a school of their choice, if they so elect, subject to admission standards and policies adopted according to sections 125A.62 to 125A.64 and 125A.66 to 125A.73, and all other provisions of chapters 120A to 129C.

new text begin (b) The parent of a student with a disability not yet enrolled in kindergarten and not open enrolled in a nonresident district may request that the resident district enter into a tuition agreement with the nonresident district if: new text end

new text begin (1) the child is enrolled in a Head Start program or a licensed child care setting in the nonresident district; and new text end

new text begin (2) the child can be served in the same setting as other children in the nonresident district with the same level of disability. new text end

Sec. 6.

Minnesota Statutes 2006, section 125A.14, is amended to read:

125A.14 deleted text begin SUMMER PROGRAMSdeleted text end new text begin EXTENDED SCHOOL YEARnew text end .

A district may provide deleted text begin summer programsdeleted text end new text begin extended school year services new text end for children with a disability living within the district and nonresident children temporarily placed in the district pursuant to section 125A.15 or 125A.16. Prior to March 31 or 30 days after the child with a disability is placed in the district, whichever is later, the providing district shall give notice to the district of residence of any nonresident children temporarily placed in the district pursuant to section 125A.15 or 125A.16, of its intention to provide these programs. Notwithstanding any contrary provisions in sections 125A.15 and 125A.16, the district providing the special instruction and services must apply for special education aid for the deleted text begin summer programdeleted text end new text begin extended school year servicesnew text end . The unreimbursed actual cost of providing the program for nonresident children with a disability, including the cost of board and lodging, may be billed to the district of the child's residence and must be paid by the resident district. Transportation costs must be paid by the district responsible for providing transportation pursuant to section 125A.15 or 125A.16 and transportation aid must be paid to that district.

Sec. 7.

Minnesota Statutes 2006, section 125A.63, is amended by adding a subdivision to read:

new text begin Subd. 5. new text end

new text begin Statewide hearing loss early education intervention coordinator. new text end

new text begin (a) The coordinator shall: new text end

new text begin (1) collaborate with the early hearing detection and intervention coordinator for the Department of Health, the director of the Department of Education Resource Center for Deaf and Hard-of-Hearing, and the Department of Health Early Hearing Detection and Intervention Advisory Council; new text end

new text begin (2) coordinate and support Department of Education early hearing detection and intervention teams; new text end

new text begin (3) leverage resources by serving as a liaison between interagency early intervention committees; part C coordinators from the Departments of Education, Health, and Human Services; Department of Education regional low-incidence facilitators; service coordinators from school districts; Minnesota children with special health needs in the Department of Health; public health nurses; child find; Department of Human Services Deaf and Hard-of-Hearing Services Division; and others as appropriate; new text end

new text begin (4) identify, support, and promote culturally appropriate and evidence-based early intervention practices for infants with hearing loss, and provide training, outreach, and use of technology to increase consistency in statewide service provision; new text end

new text begin (5) identify culturally appropriate specialized reliable and valid instruments to assess and track the progress of children with hearing loss and promote their use; new text end

new text begin (6) ensure that early childhood providers, parents, and members of the individual family service and intervention plan are provided with child progress data resulting from specialized assessments; new text end

new text begin (7) educate early childhood providers and teachers of the deaf and hard-of-hearing to use developmental data from specialized assessments to plan and adjust individual family service plans; and new text end

new text begin (8) make recommendations that would improve educational outcomes to the early hearing detection and intervention committee, the commissioners of education and health, the Minnesota Commission Serving Deaf and Hard-of-Hearing People, and the advisory council of the Minnesota Department of Education Resource Center for the Deaf and Hard-of-Hearing. new text end

new text begin (b) The Department of Education must provide aggregate data regarding outcomes of deaf and hard-of-hearing children who receive early intervention services within the state in accordance with the state performance plan. new text end

Sec. 8.

Minnesota Statutes 2006, section 125A.75, subdivision 1, is amended to read:

Subdivision 1.

Travel aid.

The state must pay each district one-half of the sum actually expended by a district, based on mileage, for necessary travel of essential personnel providing home-based new text begin or community-based new text end services to children with a disability under age five and their families.

Sec. 9.

Minnesota Statutes 2006, section 125A.75, subdivision 4, is amended to read:

Subd. 4.

Program and aid approval.

Before June 1 of each year, each district providing special instruction and services to children with a disabilitynew text begin , including children eligible for Part C, as defined in section 125A.02, subdivision 1, and section 125A.27, subdivision 8, new text end must submit to the commissioner an application for approval of these programs and their budgets for the next fiscal year. The application must include an enumeration of the costs proposed as eligible for state aid pursuant to this section and of the estimated number and grade level of children with a disability in the district who will receive special instruction and services deleted text begin during the regular school year and in summer school programsdeleted text end during the next fiscal year. The application must also include any other information deemed necessary by the commissioner for the calculation of state aid and for the evaluation of the necessity of the program, the necessity of the personnel to be employed in the program, for determining the amount which the program will receive from grants from federal funds, or special grants from other state sources, and the program's compliance with the rules and standards of the Department of Education. The commissioner shall review each application to determine whether the program and the personnel to be employed in the program are actually necessary and essential to meet the district's obligation to provide special instruction and services to children with a disability pursuant to sections 125A.03 to 125A.24, 125A.259 to 125A.48, and 125A.65. The commissioner shall not approve aid pursuant to this section for any program or for the salary of any personnel determined to be unnecessary or unessential on the basis of this review. The commissioner may withhold all or any portion of the aid for programs which receive grants from federal funds, or special grants from other state sources. By August 31 the commissioner shall approve, disapprove, or modify each application, and notify each applying district of the action and of the estimated amount of aid for the programs. The commissioner shall provide procedures for districts to submit additional applications for program and budget approval during the fiscal year, for programs needed to meet any substantial changes in the needs of children with a disability in the district. Notwithstanding the provisions of section 127A.42, the commissioner may modify or withdraw the program or aid approval and withhold aid pursuant to this section without proceeding according to section 127A.42 at any time the commissioner determines that the program does not comply with rules of the Department of Education or that any facts concerning the program or its budget differ from the facts in the district's approved application.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008. new text end

Sec. 10.

Minnesota Statutes 2006, section 125A.75, is amended by adding a subdivision to read:

new text begin Subd. 9. new text end

new text begin Litigation costs; annual report. new text end

new text begin (a) By November 30 of each year, a school district must annually report the district's special education litigation costs, including attorney fees and costs of due process hearings, to the commissioner of education, consistent with the Uniform Financial Accounting and Reporting Standards. new text end

new text begin (b) By January 15 of each year, the commissioner shall report school district special education litigation costs to the house of representatives and the senate committees having jurisdiction over kindergarten through grade 12 education finance. new text end

Sec. 11.

Minnesota Statutes 2006, section 125A.76, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

For the purposes of this section, the definitions in this subdivision apply.

(a) deleted text begin "Base year" for fiscal year 1998 and later fiscal years means the second fiscal year preceding the fiscal year for which aid will be paid.deleted text end

deleted text begin (b)deleted text end "Basic revenue" has the meaning given it in section 126C.10, subdivision 2. For the purposes of computing basic revenue pursuant to this section, each child with a disability shall be counted as prescribed in section 126C.05, subdivision 1.

deleted text begin (c)deleted text end new text begin (b) new text end "Essential personnel" means teachers, cultural liaisons, related services, and support services staff providing direct services to students. Essential personnel may also include special education paraprofessionals or clericals providing support to teachers and students by preparing paperwork and making arrangements related to special education compliance requirements, including parent meetings and individual education plans.

deleted text begin (d)deleted text end new text begin (c) new text end "Average daily membership" has the meaning given it in section 126C.05.

deleted text begin (e)deleted text end new text begin (d) new text end "Program growth factor" means 1.046 for fiscal year deleted text begin 2003, and 1.0 for fiscal year 2004deleted text end new text begin 2012 new text end and later.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008. new text end

Sec. 12.

Minnesota Statutes 2006, section 125A.76, subdivision 2, is amended to read:

Subd. 2.

Special education deleted text begin base revenuedeleted text end new text begin initial aidnew text end .

deleted text begin (a)deleted text end The special education deleted text begin base revenuedeleted text end new text begin initial aid new text end equals the sum of the following amounts computed using deleted text begin basedeleted text end new text begin current new text end year data:

(1) 68 percent of the salary of each essential person employed in the district's program for children with a disability during the fiscal year, whether the person is employed by one or more districts or a Minnesota correctional facility operating on a fee-for-service basis;

(2) for the Minnesota State Academy for the Deaf or the Minnesota State Academy for the Blind, 68 percent of the salary of each instructional aide assigned to a child attending the academy, if that aide is required by the child's individual education plan;

(3) for special instruction and services provided to any pupil by contracting with public, private, or voluntary agencies other than school districts, in place of special instruction and services provided by the district, 52 percent of the difference between the amount of the contract and deleted text begin the amount of the basic revenue, as defined in section 126C.10, subdivision 2, special education aid, and any other aid earned on behalf of the childdeleted text end new text begin the general education revenue, excluding basic skills revenue and alternative teacher compensation revenue, and referendum equalization aid attributable to a pupil, calculated using the resident district's average general education revenue and referendum equalization aid per adjusted pupil unit new text end for the fraction of the school day the pupil receives services under the contractnew text begin . This includes children who are residents of the state, receive services under this subdivision and subdivision 1, and are placed in a care and treatment facility by court action in a state that does not have a reciprocity agreement with the commissioner under section 125A.155 as provided for in section 125A.79, subdivision 8new text end ;

(4) for special instruction and services provided to any pupil by contracting for services with public, private, or voluntary agencies other than school districts, that are supplementary to a full educational program provided by the school district, 52 percent of the amount of the contract for that pupil;

(5) for supplies and equipment purchased or rented for use in the instruction of children with a disability, an amount equal to 47 percent of the sum actually expended by the district, or a Minnesota correctional facility operating on a fee-for-service basis, but not to exceed an average of $47 in any one school year for each child with a disability receiving instruction;

(6) for fiscal years 1997 and later, special education base revenue shall include amounts under clauses (1) to (5) for special education summer programs provided during the base year for that fiscal year; deleted text begin anddeleted text end

(7) deleted text begin for fiscal years 1999 and later,deleted text end the cost of providing transportation services for children with disabilities under section 123B.92, subdivision 1, paragraph (b), clause (4)new text begin ; andnew text end

new text begin (8) the district's transition-disabled program initial aid according to section 124D.454, subdivision 3new text end .

The department shall establish procedures through the uniform financial accounting and reporting system to identify and track all revenues generated from third-party billings as special education revenue at the school district level; include revenue generated from third-party billings as special education revenue in the annual cross-subsidy report; and exclude third-party revenue from calculation of excess cost aid to the districts.

deleted text begin (b) If requested by a school district operating a special education program during the base year for less than the full fiscal year, or a school district in which is located a Minnesota correctional facility operating on a fee-for-service basis for less than the full fiscal year, the commissioner may adjust the base revenue to reflect the expenditures that would have occurred during the base year had the program been operated for the full fiscal year. deleted text end

deleted text begin (c) Notwithstanding paragraphs (a) and (b), the portion of a school district's base revenue attributable to a Minnesota correctional facility operating on a fee-for-service basis during the facility's first year of operating on a fee-for-service basis shall be computed using current year data. deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008. new text end

Sec. 13.

Minnesota Statutes 2006, section 125A.76, subdivision 4, is amended to read:

Subd. 4.

State total special education aid.

deleted text begin The state total special education aid for fiscal year 2004 equals $530,642,000.deleted text end The state total special education aid deleted text begin for fiscal year 2005deleted text end equals deleted text begin $529,164,000deleted text end new text begin $529,247,000 for fiscal year 2007, $694,063,000 for fiscal year 2008, $719,470,000 for fiscal year 2009, $735,693,000 for fiscal year 2010, and $786,586,000 for fiscal year 2011new text end . The state total special education aid for later fiscal years equals:

(1) the state total special education aid for the preceding fiscal year; times

(2) the program growth factor; times

(3) the greater of one, or the ratio of the state total average daily membership for the current fiscal year to the state total average daily membership for the preceding fiscal year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008. new text end

Sec. 14.

Minnesota Statutes 2006, section 125A.76, subdivision 5, is amended to read:

Subd. 5.

School district special education aid.

deleted text begin (a)deleted text end A school district's special education aid for fiscal year deleted text begin 2000deleted text end new text begin 2008 new text end and later equals the state total special education aiddeleted text begin , minus the amount determined under paragraphs (b) and (c),deleted text end times the ratio of the district's deleted text begin adjusteddeleted text end new text begin initial new text end special education deleted text begin base revenuedeleted text end new text begin aid new text end to the state total deleted text begin adjusteddeleted text end new text begin initial new text end special education deleted text begin base revenuedeleted text end new text begin aidnew text end . deleted text begin If the commissioner of education modifies its rules for special education in a manner that increases a district's special education obligations or service requirements, the commissioner shall annually increase each district's special education aid by the amount necessary to compensate for the increased service requirements. The additional aid equals the cost in the current year attributable to rule changes not reflected in the computation of special education base revenue, multiplied by the appropriate percentages from subdivision 2.deleted text end

deleted text begin (b) Notwithstanding paragraph (a), if the special education base revenue for a district equals zero, the special education aid equals the amount computed according to subdivision 2 using current year data. deleted text end

deleted text begin (c) Notwithstanding paragraphs (a) and (b), if the special education base revenue for a district is greater than zero, and the base year amount for the district under subdivision 2, paragraph (a), clause (7), equals zero, the special education aid equals the sum of the amount computed according to paragraph (a), plus the amount computed according to subdivision 2, paragraph (a), clause (7), using current year data. deleted text end

deleted text begin (d) A charter school under section 124D.10 shall generate state special education aid based on current year expenditures for its first four years of operation and only in its fifth and later years shall paragraphs (a), (b), and (c) apply. deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008. new text end

Sec. 15.

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

new text begin Subd. 8. new text end

new text begin Special education forecast maintenance of effort. new text end

new text begin (a) If, on the basis of a forecast of general fund revenues and expenditures under section 16A.103, the state's expenditures for special education and related services for children with disabilities from nonfederal sources for a fiscal year, including special education aid under section 125A.76; special education excess cost aid under section 125A.76, subdivision 7; travel for home-based services under section 125A.75, subdivision 1; aid for students with disabilities under section 125A.75, subdivision 3; court-placed special education under section 125A.79, subdivision 4; out-of-state tuition under section 125A.79, subdivision 8; and direct expenditures by state agencies are projected to be less than the amount required to meet federal special education maintenance of effort, the additional amount required to meet federal special education maintenance of effort is added to the state total special education aid in section 125A.76, subdivision 4. new text end

new text begin (b) If, on the basis of a forecast of general fund revenues and expenditures under section 16A.103, expenditures in the programs in paragraph (a) are projected to be greater than previously forecast for an enacted budget, and an addition to state total special education aid has been made under paragraph (a), the state total special education aid must be reduced by the lesser of the amount of the expenditure increase or the amount previously added to state total special education aid in section 125A.76, subdivision 4. new text end

new text begin (c) For the purpose of this section, "previously forecast for an enacted budget" means the allocation of funding for these programs in the most recent forecast of general fund revenues and expenditures or the act appropriating money for these programs, whichever occurred most recently. It does not include planning estimates for a future biennium. new text end

new text begin (d) If the amount of special education aid is adjusted in accordance with this subdivision, the commissioner of education shall notify the chairs of the legislative committees having jurisdiction over kindergarten through grade 12 education regarding the amount of the adjustment and provide an explanation of the federal maintenance of effort requirements. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal year 2008. new text end

Sec. 16.

Minnesota Statutes 2006, section 125A.78, is amended to read:

125A.78 ALTERNATIVE DELIVERY deleted text begin BASE REVENUEdeleted text end new text begin INITIAL AID new text end ADJUSTMENT.

Subdivision 1.

Eligibility.

A district is eligible for an alternative delivery deleted text begin base revenuedeleted text end new text begin initial aid new text end adjustment if the commissioner has approved the application of the district according to section 125A.50.

Subd. 2.

deleted text begin Base revenuedeleted text end new text begin Initial aid new text end adjustment.

For the deleted text begin thirddeleted text end fiscal year after approval of a district's application, and thereafter, the special education deleted text begin base revenuedeleted text end new text begin initial aid new text end under section 125A.76, subdivision 1, must be computed based on activities defined as reimbursable under Department of Education rules for special education and nonspecial education students, and additional activities as detailed and approved by the commissioner.

Subd. 3.

Use of revenue.

Revenue under section 125A.76 shall be used to implement the approved program.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008. new text end

Sec. 17.

Minnesota Statutes 2006, section 125A.79, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

For the purposes of this section, the definitions in this subdivision apply.

(a) "Unreimbursed special education cost" means the sum of the following:

(1) expenditures for teachers' salaries, contracted services, supplies, equipment, and transportation services eligible for revenue under section 125A.76; plus

(2) expenditures for tuition bills received under sections 125A.03 to 125A.24 and 125A.65 for services eligible for revenue under section 125A.76, subdivision 2; minus

(3) revenue for teachers' salaries, contracted services, supplies, deleted text begin anddeleted text end equipmentnew text begin , and transportation servicesnew text end under section 125A.76; minus

(4) tuition receipts under sections 125A.03 to 125A.24 and 125A.65 for services eligible for revenue under section 125A.76, subdivision 2.

(b) "General revenue" means the sum of the general education revenue according to section 126C.10, subdivision 1, excluding alternative teacher compensation revenue, plus the total qualifying referendum revenue specified in paragraph (e) minus transportation sparsity revenue minus total operating capital revenue.

(c) "Average daily membership" has the meaning given it in section 126C.05.

(d) "Program growth factor" means 1.02 for fiscal year deleted text begin 2003, and 1.0 for fiscal year 2004deleted text end new text begin 2012 new text end and later.

(e) "Total qualifying referendum revenue" means two-thirds of the district's total referendum revenue as adjusted according to section 127A.47, subdivision 7, paragraphs (a) to (c), for fiscal year 2006, one-third of the district's total referendum revenue for fiscal year 2007, and none of the district's total referendum revenue for fiscal year 2008 and later.

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 125A.79, subdivision 5, is amended to read:

Subd. 5.

Initial excess cost aid.

For fiscal years deleted text begin 2002deleted text end new text begin 2008 new text end and later, a district's initial excess cost aid equals the deleted text begin greatestdeleted text end new text begin greater new text end of:

(1) 75 percent of the difference between (i) the district's unreimbursed special education cost and (ii) 4.36 percent of the district's general revenue; new text begin ornew text end

(2) deleted text begin 70 percent of the difference between (i) the increase in the district's unreimbursed special education cost between the base year as defined in section 125A.76, subdivision 1, and the current year and (ii) 1.6 percent of the district's general revenue; ordeleted text end

deleted text begin (3)deleted text end zero.

Sec. 19.

Minnesota Statutes 2006, section 125A.79, subdivision 6, is amended to read:

Subd. 6.

State total special education excess cost aid.

The state total special education excess cost aid deleted text begin for fiscal year 2005deleted text end equals deleted text begin $91,811,000deleted text end new text begin $104,700,000 for fiscal year 2007, $110,641,000 for fiscal year 2008, $110,918,000 for fiscal year 2009, $110,847,000 for fiscal year 2010, and $110,892,000 for fiscal year 2011new text end . deleted text begin The state total special education excess cost aid equals $103,600,000 for fiscal year 2006 and $104,700,000 for fiscal year 2007.deleted text end The state total special education excess cost aid for deleted text begin fiscal year 2008 anddeleted text end later fiscal years equals:

(1) the state total special education excess cost aid for the preceding fiscal year; times

(2) the program growth factor; times

(3) the greater of one, or the ratio of the state total average daily membership for the current fiscal year to the state total average daily membership for the preceding fiscal year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008. new text end

Sec. 20.

Minnesota Statutes 2006, section 125A.79, subdivision 8, is amended to read:

Subd. 8.

Out-of-state tuition.

For children who are residents of the state, receive services under section 125A.76, subdivisions 1 and 2, and are placed in a care and treatment facility by court action in a state that does not have a reciprocity agreement with the commissioner under section 125A.155, the resident school district shall submit the balance of the tuition bills, minus deleted text begin the amount of the basic revenue, as defined by section 126C.10, subdivision 2, of the district for the child anddeleted text end new text begin the general education revenue, excluding basic skills revenue and alternative teacher compensation revenue, and referendum equalization aid attributable to the pupil, calculated using the resident district's average general education revenue and referendum equalization aid per adjusted pupil unit minus new text end the special education deleted text begin aid, and any other aid earned on behalf of the childdeleted text end new text begin contracted services initial revenue attributable to the pupilnew text end .

Sec. 21.

Minnesota Statutes 2006, section 127A.47, subdivision 7, is amended to read:

Subd. 7.

Alternative attendance programs.

The general education aid and special education aid for districts must be adjusted for each pupil attending a nonresident district under sections 123A.05 to 123A.08, 124D.03, 124D.06, 124D.08, and 124D.68. The adjustments must be made according to this subdivision.

(a) General education aid paid to a resident district must be reduced by an amount equal to the referendum equalization aid attributable to the pupil in the resident district.

(b) General education aid paid to a district serving a pupil in programs listed in this subdivision must be increased by an amount equal to the referendum equalization aid attributable to the pupil in the nonresident district.

(c) If the amount of the reduction to be made from the general education aid of the resident district is greater than the amount of general education aid otherwise due the district, the excess reduction must be made from other state aids due the district.

(d) For fiscal year 2006, the district of residence must pay tuition to a district or an area learning center, operated according to paragraph (f), providing special instruction and services to a pupil with a disability, as defined in section 125A.02, or a pupil, as defined in section 125A.51, who is enrolled in a program listed in this subdivision. The tuition must be equal to (1) the actual cost of providing special instruction and services to the pupil, including a proportionate amount for special transportation and unreimbursed building lease and debt service costs for facilities used primarily for special education, minus (2) if the pupil receives special instruction and services outside the regular classroom for more than 60 percent of the school day, the amount of general education revenue and referendum new text begin equalization new text end aid attributable to that pupil for the portion of time the pupil receives special instruction and services outside of the regular classroom, excluding portions attributable to district and school administration, district support services, operations and maintenance, capital expenditures, and pupil transportation, minus (3) special education aid attributable to that pupil, that is received by the district providing special instruction and services. For purposes of this paragraph, general education revenue and referendum new text begin equalization new text end aid attributable to a pupil must be calculated using the serving district's average general education revenue and referendum new text begin equalization new text end aid per adjusted pupil unit.

(e) For fiscal year 2007 and later, special education aid paid to a resident district must be reduced by an amount equal to (1) the actual cost of providing special instruction and services, including special transportation and unreimbursed building lease and debt service costs for facilities used primarily for special education, for a pupil with a disability, as defined in section 125A.02, or a pupil, as defined in section 125A.51, who is enrolled in a program listed in this subdivision, minus (2) if the pupil receives special instruction and services outside the regular classroom for more than 60 percent of the school day, the amount of general education revenue and referendum new text begin equalization new text end aid attributable to that pupil for the portion of time the pupil receives special instruction and services outside of the regular classroom, excluding portions attributable to district and school administration, district support services, operations and maintenance, capital expenditures, and pupil transportation, minus (3) special education aid attributable to that pupil, that is received by the district providing special instruction and services. For purposes of this paragraph, general education revenue and referendum new text begin equalization new text end aid attributable to a pupil must be calculated using the serving district's average general education revenue and referendum new text begin equalization new text end aid per adjusted pupil unit. Special education aid paid to the district or cooperative providing special instruction and services for the pupil, or to the fiscal agent district for a cooperative, must be increased by the amount of the reduction in the aid paid to the resident district. If the resident district's special education aid is insufficient to make the full adjustment, the remaining adjustment shall be made to other state aids due to the district.

(f) An area learning center operated by a service cooperative, intermediate district, education district, or a joint powers cooperative may elect through the action of the constituent boards to charge the resident district tuition for pupils rather than to have the general education revenue paid to a fiscal agent school district. Except as provided in paragraph (d) or (e), the district of residence must pay tuition equal to at least 90 percent of the district average general education revenue per pupil unit minus an amount equal to the product of the formula allowance according to section 126C.10, subdivision 2, times .0485, calculated without basic skills revenue and transportation sparsity revenue, times the number of pupil units for pupils attending the area learning center, plus the amount of compensatory revenue generated by pupils attending the area learning center.

new text begin EFFECTIVE DATE. new text end

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

Sec. 22.

Laws 2006, chapter 263, article 3, section 15, is amended to read:

Sec. 15.

SPECIAL EDUCATION TUITION BILLING FOR FISCAL YEARS 2006 deleted text begin ANDdeleted text end new text begin ,new text end 2007new text begin , AND 2008new text end .

(a) Notwithstanding Minnesota Statutes, sections 125A.11, subdivision 1, paragraph (a), and 127A.47, subdivision 7, paragraph (d), for fiscal year 2006 an intermediate district, special education cooperative, or school district that served as an applicant agency for a group of school districts for federal special education aids for fiscal year 2006 is not subject to the uniform special education tuition billing calculations, but may instead continue to bill the resident school districts for the actual unreimbursed costs of serving pupils with a disability as determined by the intermediate districtnew text begin , special education cooperative, or school districtnew text end .

(b) Notwithstanding Minnesota Statutes, section 125A.11, subdivision 1, paragraph (c), for fiscal year 2007 only, an deleted text begin applicant districtdeleted text end new text begin agency exempted from the uniform special education tuition billing calculations for fiscal year 2006 under paragraph (a)new text end may apply to the commissioner for deleted text begin a waiverdeleted text end new text begin an exemptionnew text end from the uniform special education tuition calculations and aid adjustments under Minnesota Statutes, sections 125A.11, subdivision 1, paragraph (b), and 127A.47, subdivision 7, paragraph (e). The commissioner must grant the deleted text begin waiverdeleted text end new text begin exemptionnew text end within 30 days of receiving the following information from the intermediate districtnew text begin , special education cooperative, or school districtnew text end :

(1) a detailed description of the applicant district's methodology for calculating special education tuition for fiscal years 2006 and 2007, as required by the applicant district to recover the full cost of serving pupils with a disability;

(2) sufficient data to determine the total amount of special education tuition actually charged for each student with a disability, as required by the applicant district to recover the full cost of serving pupils with a disability in fiscal year 2006; and

(3) sufficient data to determine the amount that would have been charged for each student for fiscal year 2006 using the uniform tuition billing methodology according to Minnesota Statutes, sections 125A.11, subdivision 1, or 127A.47, subdivision 7, as applicable.

new text begin (c) Notwithstanding Minnesota Statutes, section 125A.11, subdivision 1, paragraph (c), for fiscal year 2008 only, an agency granted an exemption from the uniform special education tuition billing calculations and aid adjustments for fiscal year 2007 under paragraph (b) may apply to the commissioner for a one-year extension of the exemption granted under paragraph (b). The commissioner must grant the extension within 30 days of receiving the request. new text end

new text begin (d) Notwithstanding Minnesota Statutes, section 125A.11, subdivision 1, paragraphs (a) and (b), and section 127A.47, subdivision 7, paragraphs (d) and (e), for fiscal year 2007 only, a school district or charter school not eligible for a waiver under Minnesota Statutes, section 125A.11, subdivision 1, paragraph (d), may apply to the commissioner for authority to charge the resident district an additional amount to recover any remaining unreimbursed costs of serving pupils with a disability. The application must include a description of the costs and the calculations used to determine the unreimbursed portion to be charged to the resident district. Amounts approved by the commissioner under this paragraph must be included in the tuition billings or aid adjustments under paragraph (a) or (b), or Minnesota Statutes, section 127A.47, subdivision 7, paragraph (d) or (e), as applicable. 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. 23.

new text begin TASK FORCE TO COMPARE FEDERAL AND STATE SPECIAL EDUCATION REQUIREMENTS. new text end

new text begin Subdivision 1. new text end

new text begin Establishment; duties. new text end

new text begin A task force is established to recommend which state laws and rules that exceed or expand upon minimum federal special education requirements for providing special education programs and services to eligible students should be amended to conform with minimum federal requirements. The commissioner of the Bureau of Mediation Services under Minnesota Statutes, section 179.02, after consulting with interested stakeholders, shall appoint a ten-member task force composed of equal numbers of providers, advocates, regulators, consumers of special education services, lawyers who practice in the field of special education and represent either parents or school districts, special education teachers, and school officials. The commissioner must convene the task force by August 1, 2007, which shall meet regularly and shall review the January 25, 2006, report prepared by the Minnesota Department of Education Office of Compliance and Assistance and other relevant studies and resources analyzing differences between federal and state special education requirements. The terms and compensation of task force members are governed by Minnesota Statutes, section 15.059, subdivision 6. new text end

new text begin Subd. 2. new text end

new text begin Report. new text end

new text begin The task force must submit to the education policy and finance committees of the legislature by February 15, 2008, a report that identifies and clearly and concisely explains each provision in state law or rule that exceeds or expands upon 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 provisions that exceed or expand upon a minimum federal requirement may be amended to conform with minimum federal requirements. The task force expires when it submits its report to the legislature. 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. 24.

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 Special education; regular. new text end

new text begin For special education aid under Minnesota Statutes, section 125A.75: new text end

new text begin $ new text end new text begin 677,622,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 716,929,000 new text end new text begin ..... new text end new text begin 2009 new text end

new text begin The 2008 appropriation includes $52,965,000 for 2007 and $624,657,000 for 2008. new text end

new text begin The 2009 appropriation includes $69,406,000 for 2008 and $647,523,000 for 2009. new text end

new text begin Subd. 3. new text end

new text begin Aid for children with disabilities. new text end

new text begin 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: new text end

new text begin $ new text end new text begin 1,538,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 1,729,000 new text end new text begin ..... new text end new text begin 2009 new text end

new text begin If the appropriation for either year is insufficient, the appropriation for the other year is available. new text end

new text begin Subd. 4. new text end

new text begin Travel for home-based services. new text end

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

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

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

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

new text begin Subd. 5. new text end

new text begin Special education; excess costs. new text end

new text begin For excess cost aid under Minnesota Statutes, section 125A.79, subdivision 7: new text end

new text begin $ new text end new text begin 108,656,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 110,826,000 new text end new text begin ..... new text end new text begin 2009 new text end

new text begin The 2008 appropriation includes $34,969,000 for 2007 and $73,687,000 for 2008. new text end

new text begin The 2009 appropriation includes $36,954,000 for 2008 and $73,872,000 for 2009. new text end

new text begin Subd. 6. new text end

new text begin Transition for disabled students. new text end

new text begin For aid for transition programs for children with disabilities under Minnesota Statutes, section 124D.454: new text end

new text begin $ new text end new text begin 879,000 new text end new text begin ..... new text end new text begin 2008 new text end

new text begin The 2008 appropriation includes $879,000 for 2007 and $0 for 2008. new text end

new text begin Subd. 7. new text end

new text begin Court-placed special education revenue. new text end

new text begin For reimbursing serving school districts for unreimbursed eligible expenditures attributable to children placed in the serving school district by court action under Minnesota Statutes, section 125A.79, subdivision 4: new text end

new text begin $ new text end new text begin 72,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 74,000 new text end new text begin ..... new text end new text begin 2009 new text end

new text begin Subd. 8. new text end

new text begin Special education out-of-state tuition. new text end

new text begin For special education out-of-state tuition according to Minnesota Statutes, section 125A.79, subdivision 8: new text end

new text begin $ new text end new text begin 250,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 250,000 new text end new text begin ..... new text end new text begin 2009 new text end

new text begin Subd. 9. new text end

new text begin Special Education Task Force. new text end

new text begin For the task force to compare federal and state special education requirements: new text end

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

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

Sec. 25.

new text begin REPEALER. new text end

new text begin (a) new text end new text begin Minnesota Statutes 2006, sections 125A.10; and 125A.75, subdivision 6, new text end new text begin are repealed. new text end

new text begin (b) new text end new text begin Minnesota Statutes 2006, sections 124D.454, subdivisions 4, 5, 6, and 7; and 125A.76, subdivision 3, new text end new text begin are repealed effective for revenue for fiscal year 2008. new text end

ARTICLE 4

FACILITIES AND TECHNOLOGY

Section 1.

Minnesota Statutes 2006, section 123A.44, is amended to read:

123A.44 CITATION.

Sections 123A.441 to 123A.446 may be cited as the "Cooperative deleted text begin Secondarydeleted text end Facilities Grant Act."

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2006, section 123A.441, is amended to read:

123A.441 POLICY AND PURPOSE.

Because of the rates of decline in school-aged population, population shifts and economic changes that the state has experienced in recent years and anticipates in future years, and because in some instances local districts have not, and will not be able to provide the required construction funds through local property taxes, the purpose of the cooperative deleted text begin secondarydeleted text end facilities grant program is to provide an incentive to encourage cooperation in making available to all deleted text begin secondarydeleted text end students those educational programs, services and facilities that are most efficiently and effectively provided by a cooperative effort of deleted text begin severaldeleted text end school districts. The policy and purpose of sections 123A.442 to 123A.446 is to use the credit of the state, to a limited degree, to provide grants to cooperating groups of districts to improve and expand the educational opportunities and facilities available to their deleted text begin secondarydeleted text end students.

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2006, section 123A.442, is amended to read:

123A.442 APPROVAL AUTHORITY; APPLICATION FORMS.

Subdivision 1.

Approval by commissioner.

To the extent money is available, the commissioner may approve projects from applications submitted under section 123A.443. The grant money must be used only to acquire, construct, remodel or improve the building or site of a cooperative deleted text begin secondarydeleted text end facility under contracts to be entered into within 15 months after the date on which each grant is awarded.

Subd. 2.

Cooperation and combination.

Districts that new text begin have not already consolidated and new text end receive a cooperative deleted text begin secondarydeleted text end facilities grant deleted text begin after May 1, 1991,deleted text end shall:

(1) submit a new text begin consolidation new text end plan deleted text begin as set forth indeleted text end new text begin undernew text end section for approval by the deleted text begin State Board of Education before December 31, 1999, ordeleted text end Department of Education deleted text begin after December 30, 1999deleted text end ; and

(2) hold a referendum on the question of deleted text begin combinationdeleted text end new text begin consolidationnew text end no later than four years after a grant is awarded under subdivision 1.

The districts are eligible for deleted text begin cooperation and combinationdeleted text end new text begin consolidationnew text end revenue under section deleted text begin 123A.39, subdivision 3deleted text end new text begin 123A.485new text end .

new text begin Subd. 3. new text end

new text begin Consolidated districts. new text end

new text begin A school district that has consolidated with another school district since July 1, 1980, is eligible for a cooperative facilities grant. 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 2006, section 123A.443, is amended to read:

123A.443 GRANT APPLICATION PROCESS.

Subdivision 1.

Qualification.

Any group of districtsnew text begin or a consolidated districtnew text end that meets the criteria required under subdivision 2 may apply for an incentive grant for construction of a new deleted text begin secondarydeleted text end facility or for remodeling and improving an existing deleted text begin secondarydeleted text end facility. A grant for new construction must not exceed the lesser of deleted text begin $5,000,000deleted text end new text begin $20,000,000new text end or 75 percent of the approved construction costs of a cooperative deleted text begin secondarydeleted text end education facility. A grant for remodeling and improving an existing facility must not exceed deleted text begin $200,000deleted text end new text begin the lesser of $10,000,000, or 75 percent of the approved remodeling costsnew text end .

Subd. 2.

Review by commissioner.

(a) A group of districts new text begin or a consolidated district new text end that submits an application for a grant must submit a proposal to the commissioner for review and comment under section 123B.71. The commissioner shall prepare a review and comment on the proposed facility by July 1 of an odd-numbered year, regardless of the amount of the capital expenditure required to acquire, construct, remodel or improve the deleted text begin secondarydeleted text end facility. The commissioner shall not approve an application for an incentive grant for any deleted text begin secondarydeleted text end facility unless the facility receives a favorable review and comment under section 123B.71 and the following criteria are met:

(1) new text begin the applicant is a consolidated district or new text end a minimum of two or more districtsdeleted text begin , with kindergarten to grade 12 enrollments in each district of no more than 1,200 pupils, enterdeleted text end new text begin that have enterednew text end into a joint powers agreement;

(2) new text begin for a group of districts, new text end a joint powers board representing all participating districts is established under section 471.59 to govern the cooperative deleted text begin secondarydeleted text end facility;

deleted text begin (3) the planned secondary facility will result in the joint powers district meeting the requirements of Minnesota Rules, parts 3500.2010 and 3500.2110; deleted text end

deleted text begin (4) at least 198 pupils would be served in grades 10 to 12, 264 pupils would be served in grades 9 to 12, or 396 pupils would be served in grades 7 to 12; deleted text end

deleted text begin (5)deleted text end new text begin (3) for a group of districts, new text end no more than one superintendent is employed by the joint powers board as a result of the cooperative deleted text begin secondarydeleted text end facility agreement;

deleted text begin (6)deleted text end new text begin (4)new text end a statement of need is submitted, that may include reasons why the current deleted text begin secondarydeleted text end facilities are inadequate, unsafe or inaccessible to persons with disabilities;

deleted text begin (7)deleted text end new text begin (5)new text end an educational plan is prepared, that includes input from both community and professional staff;

deleted text begin (8)deleted text end new text begin (6) for a group of districts,new text end a combined seniority list for all participating districts is developed by the joint powers board;

deleted text begin (9)deleted text end new text begin (7) for a group of districts,new text end an education program is developed that provides for more learning opportunities and course offerings, including the offering of advanced placement courses, for students than is currently available in any single member district;

deleted text begin (10)deleted text end new text begin (8)new text end a plan is developed for providing instruction of any resident students in other districts when distance to the deleted text begin secondarydeleted text end education facility makes attendance at the facility unreasonably difficult or impractical; and

deleted text begin (11)deleted text end new text begin (9) for a secondary facility,new text end the joint powers board established under clause (2) discusses with technical colleges located in the area how vocational education space in the cooperative deleted text begin secondarydeleted text end facility could be jointly used for secondary and postsecondary purposes.

(b) To the extent possible, the joint powers board is encouraged to provide for severance pay or for early retirement incentives under section 122A.48, for any teacher or administrator, as defined under section 122A.40, subdivision 1, who is placed on unrequested leave as a result of the cooperative deleted text begin secondarydeleted text end facility agreement.

(c) For the purpose of paragraph (a), clause deleted text begin (8)deleted text end new text begin (6)new text end , each district must be considered to have started school each year on the same date.

(d) The districts may develop a plan that provides for the location of social service, health, and other programs serving pupils and community residents within the cooperative deleted text begin secondarydeleted text end facility. The commissioner shall consider this plan when preparing a review and comment on the proposed facility.

(e) The districts must schedule and conduct a meeting on library services. The school districts, in cooperation with the regional public library system and its appropriate member libraries, must discuss the possibility of including jointly operated library services at the cooperative deleted text begin secondarydeleted text end facility.

(f) The board of a district that has reorganized under section 123A.37 or 123A.48 and that is applying for a grant for remodeling or improving an existing facility may act in the place of a joint powers board to meet the criteria of this subdivision.

Subd. 3.

Reorganizing districts.

A district that is a member of a joint powers board established under subdivision 2 and that is planning to reorganize under section 123A.45, 123A.46, or 123A.48 must notify the joint powers board one year in advance of the effective date of the reorganization. Notwithstanding section 471.59 or any other law to the contrary, the board of a district that reorganizes under section 123A.45, 123A.46, or 123A.48 may appoint representatives to the joint powers board who will serve on the joint powers board for two years after the effective date of the reorganization if authorized in the agreement establishing the joint powers board to govern the cooperative deleted text begin secondarydeleted text end facility. These representatives shall have the same powers as representatives of any other school district under the joint powers agreement.

Subd. 4.

District procedures.

A joint powers board of a deleted text begin secondarydeleted text end district established under subdivision 2 or a school board of a reorganized district that intends to apply for a grant must adopt a resolution stating the proposed costs of the project, the purpose for which the costs are to be incurred, and an estimate of the dates when the facilities for which the grant is requested will be contracted for and completed. Applications for the state grants must be accompanied by (a) a copy of the resolution, (b) a certificate by the clerk and treasurer of the joint powers board showing the current outstanding indebtedness of each member district, and (c) a certificate by the county auditor of each county in which a portion of the joint powers district lies showing the information in the auditor's official records that is required to be used in computing the debt limit of the district under section 475.53, subdivision 4. The clerk's and treasurer's certificate must show, as to each outstanding bond issue of each member district, the amount originally issued, the purpose for which issued, the date of issue, the amount remaining unpaid as of the date of the resolution, and the interest rates and due dates and amounts of principal thereon. Applications and necessary data must be in the form prescribed by the commissioner deleted text begin and the rules of the State Board of Education before December 31, 1999, and after December 30, 1999, in the form prescribed by the commissionerdeleted text end . Applications must be received by the commissioner by September 1 of an odd-numbered year. When an application is received, the commissioner shall obtain from the commissioner of revenue, and from the Public Utilities Commission when required, the information in their official records that is required to be used in computing the debt limit of the joint powers district under section 475.53, subdivision 4.

Subd. 5.

Award of grants.

By November 1 of the odd-numbered year, the commissioner shall examine and consider all applications for grants, and if any district is found not qualified, the commissioner shall promptly notify that board.

A grant award is subject to verification by the district as specified in subdivision 8. A grant award for a new facility must not be made until the site of the deleted text begin secondarydeleted text end facility has been determined. A grant award to remodel or improve an existing facility must not be made until the districts have reorganized. If the total amount of the approved applications exceeds the amount that is or can be made available, the commissioner shall new text begin first award grants to districts that will close at least one existing school building, and then, to the extent funds remain, new text end allot the available amount equally between deleted text begin thedeleted text end new text begin any othernew text end approved applicant districts. The commissioner shall promptly certify to each qualified district the amount, if any, of the grant awarded to it.

Subd. 6.

Collocation grant.

A group of districts that receives a grant for a new facility under subdivision 4 is also eligible to receive an additional grant in the amount of $1,000,000. To receive the additional grant, the group of districts must develop a plan under subdivision 2, paragraph (d), that provides for the location of a significant number of noneducational student and community service programs within the cooperative deleted text begin secondarydeleted text end facility.

Subd. 7.

Referendum; bond issue.

Within 180 days after being awarded a grant for a new facility under subdivision 5, the joint powers board must submit the question of authorizing the borrowing of funds for the deleted text begin secondarydeleted text end facility to the voters of the joint powers district at a special election, which may be held in conjunction with the deleted text begin annualdeleted text end new text begin generalnew text end election of the school board members of the member districts. The question submitted must state the total amount of funding needed from all sources. A majority of those voting in the affirmative on the question is sufficient to authorize the joint powers board to accept the grant and to issue the bonds on public sale deleted text begin in accordance withdeleted text end new text begin according tonew text end chapter 475. The clerk of the joint powers board must certify the vote of the bond election to the commissioner. If the question is approved by the voters, the commissioner shall notify the approved applicant districts that the grant amount certified under subdivision 5 is available and appropriated for payment under this subdivision. If a majority of those voting on the question do not vote in the affirmative, the grant must be canceled.

Subd. 8.

Contract.

Each grant must be evidenced by a contract between the board and the state acting through the commissioner. The contract obligates the state to pay to the board an amount computed according to subdivision 5, and according to a schedule, and terms and conditions acceptable to the commissioner of finance.

Subd. 9.

Consolidation.

A group of districts that operates a cooperative deleted text begin secondarydeleted text end facility that was acquired, constructed, remodeled, or improved under this section and implements consolidation proceedings according to section 123A.48, may propose a temporary school board structure in the petition or resolution required under section 123A.48, subdivision 2. The districts may propose the number of existing school board members of each district to become members of the board of the consolidated district and a method to gradually reduce the membership to six or seven. The proposal must be approved, disapproved, or modified by the deleted text begin state board of educationdeleted text end new text begin commissionernew text end . The election requirements of section 123A.48, subdivision 20, do not apply to a proposal approved by the state board. Elections conducted after the effective date of the consolidation are subject to the Minnesota Election Law.

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 123B.53, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the eligible debt service revenue of a district is defined as follows:

(1) the amount needed to produce between five and six percent in excess of the amount needed to meet when due the principal and interest payments on the obligations of the district for eligible projects according to subdivision 2, including the amounts necessary for repayment of energy loans according to section 216C.37 or sections 298.292 to 298.298, debt service loans and capital loans, lease purchase payments under section 126C.40, subdivision 2, alternative facilities levies under section 123B.59, subdivision 5, new text begin paragraph (a), new text end minus

(2) the amount of debt service excess levy reduction for that school year calculated according to the procedure established by the commissioner.

(b) The obligations in this paragraph are excluded from eligible debt service revenue:

(1) obligations under section 123B.61;

(2) the part of debt service principal and interest paid from the taconite environmental protection fund or Douglas J. Johnson economic protection trust;

(3) obligations issued under Laws 1991, chapter 265, article 5, section 18, as amended by Laws 1992, chapter 499, article 5, section 24; and

(4) obligations under section 123B.62.

(c) For purposes of this section, if a preexisting school district reorganized under sections 123A.35 to 123A.43, 123A.46, and 123A.48 is solely responsible for retirement of the preexisting district's bonded indebtedness, capital loans or debt service loans, debt service equalization aid must be computed separately for each of the preexisting districts.

(d) For purposes of this section, the adjusted net tax capacity determined according to section 127A.48 shall be adjusted to include deleted text begin a portion ofdeleted text end the tax capacity of property generally exempted from ad valorem taxes under section 272.02, deleted text begin subdivisionsdeleted text end new text begin subdivisionnew text end 64 deleted text begin and 65, equal to the product of that tax capacity times the ratio of the eligible debt service revenue attributed to general obligation bonds to the total eligible debt service revenue of the districtdeleted text end .

Sec. 6.

Minnesota Statutes 2006, section 123B.54, is amended to read:

123B.54 DEBT SERVICE APPROPRIATION.

(a) deleted text begin $21,624,000deleted text end new text begin $14,813,000new text end in fiscal year 2008 deleted text begin and $20,403,000deleted text end new text begin , $11,124,000new text end in fiscal year 2009new text begin , $8,866,000 in fiscal year 2010, and $6,631,000 in fiscal year 2011new text end 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.

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

Minnesota Statutes 2006, section 123B.57, subdivision 3, is amended to read:

Subd. 3.

Health and safety revenue.

A district's health and safety revenue for a fiscal year equalsnew text begin the district's alternative facilities levy under section 123B.59, subdivision 5, paragraph (b), plus the greater of zero ornew text end :

(1) the sum of (a) the total approved cost of the district's hazardous substance plan for fiscal years 1985 through 1989, plus (b) the total approved cost of the district's health and safety program for fiscal year 1990 through the fiscal year to which the levy is attributable, excluding expenditures funded with bonds issued under section 123B.59 or 123B.62, or chapter 475; certificates of indebtedness or capital notes under section 123B.61; levies under section 123B.58, 123B.59, 123B.63, or 126C.40, subdivision 1 or 6; and other federal, state, or local revenues, minus

(2) the sum of (a) the district's total hazardous substance aid and levy for fiscal years 1985 through 1989 under sections 124.245 and 275.125, subdivision 11c, plus (b) the district's health and safety revenue under this subdivision, for years before the fiscal year to which the levy is attributable.

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Minnesota Statutes 2006, section 123B.63, subdivision 3, is amended to read:

Subd. 3.

Capital project levy referendum.

A district may levy the local tax rate approved by a majority of the electors voting on the question to provide funds for an approved project. The election must take place no more than five years before the estimated date of commencement of the project. The referendum must be held on a date set by the board. A referendum for a project not receiving a positive review and comment by the commissioner under section 123B.71 must be approved by at least 60 percent of the voters at the election. The referendum may be called by the school board and may be held:

(1) separately, before an election for the issuance of obligations for the project under chapter 475; or

(2) in conjunction with an election for the issuance of obligations for the project under chapter 475; or

(3) notwithstanding section 475.59, as a conjunctive question authorizing both the capital project levy and the issuance of obligations for the project under chapter 475. Any obligations authorized for a project may be issued within five years of the date of the election.

The ballot must provide a general description of the proposed project, state the estimated total cost of the project, state whether the project has received a positive or negative review and comment from the commissioner, state the maximum amount of the capital project levy as a percentage of net tax capacity, state the amount that will be raised by that local tax rate in the first year it is to be levied, and state the maximum number of years that the levy authorization will apply.

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

"Shall the capital project levy proposed by the board of .......... School District No. .......... be approved?"

If approved, the amount provided by the approved local tax rate applied to the net tax capacity for the year preceding the year the levy is certified may be certified for the number of yearsnew text begin , not to exceed ten,new text end approved.

In the event a conjunctive question proposes to authorize both the capital project levy and the issuance of obligations for the project, appropriate language authorizing the issuance of obligations must also be included in the question.

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 July 1, 2007, for elections conducted on or after that day. new text end

Sec. 9.

Minnesota Statutes 2006, section 128D.11, subdivision 3, is amended to read:

Subd. 3.

No election.

Subject to the provisions of subdivisions 7 to 10, the school district may also by a two-thirds majority vote of all the members of its board of education and without any election by the voters of the district, issue and sell in each calendar year general obligation bonds of the district in an amount not to exceed 5-1/10 per cent of the net tax capacity of the taxable property in the district (plus, for calendar years 1990 to 2003, an amount not to exceed $7,500,000, and for calendar years 2004 to deleted text begin 2008deleted text end new text begin 2016 new text end an amount not to exceed $15,000,000; with an additional provision that any amount of bonds so authorized for sale in a specific year and not sold can be carried forward and sold in the year immediately following).

new text begin EFFECTIVE DATE. new text end

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

Sec. 10.

Minnesota Statutes 2006, section 272.02, subdivision 64, is amended to read:

Subd. 64.

Job opportunity building zone property.

(a) Improvements to real property, and personal property, classified under section 273.13, subdivision 24, and located within a job opportunity building zone, designated under section 469.314, are exempt from ad valorem taxes levied under chapter 275.

(b) Improvements to real property, and tangible personal property, of an agricultural production facility located within an agricultural processing facility zone, designated under section 469.314, is exempt from ad valorem taxes levied under chapter 275.

(c) For property to qualify for exemption under paragraph (a), the occupant must be a qualified business, as defined in section 469.310.

(d) The exemption applies beginning for the first assessment year after designation of the job opportunity building zone by the commissioner of employment and economic development. The exemption applies to each assessment year that begins during the duration of the job opportunity building zone. To be exempt, the property must be occupied by July 1 of the assessment year by a qualified business that has signed the business subsidy agreement and relocation agreement, if required, by July 1 of the assessment year. This exemption does not apply to:

(1) the levy under section 475.61 or similar levy provisions under any other law to pay general obligation bonds; or

(2) deleted text begin a levy under section 126C.17, if the levy was approved by the voters before the designation of the job opportunity building zonedeleted text end new text begin other school district levies included in the debt service levy of the district under section 123B.55new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2008. new text end

Sec. 11.

new text begin SCHOOL TECHNOLOGY AND OPERATING CAPITAL AID. new text end

new text begin For fiscal years 2008, and 2009 only, school technology and operating capital aid equals $40 for fiscal year 2008 and $55 for fiscal year 2009 times the district's adjusted marginal cost pupil units for that fiscal year. This aid must only be used for the purposes of Minnesota Statutes, section 126C.10, subdivision 14. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal years 2008 and 2009. new text end

Sec. 12.

new text begin BONDING AUTHORIZATION. new text end

new text begin To provide funds for the acquisition or betterment of school facilities, Independent School District No. 625, St. Paul, may by two-thirds majority vote of all the members of the board of directors issue general obligation bonds in one or more series for calendar years 2008 through 2016, as provided in this section. The aggregate principal amount of any bonds issued under this section for each calendar year must not exceed $15,000,000. Issuance of the bonds is not subject to Minnesota Statutes, section 475.58 or 475.59. The bonds must otherwise be issued as provided in Minnesota Statutes, chapter 475. The authority to issue bonds under this section is in addition to any bonding authority authorized by Minnesota Statutes, chapter 123B, or other law. The amount of bonding authority authorized under this section must be disregarded in calculating the bonding limit of Minnesota Statutes, chapter 123B, or any other law other than Minnesota Statutes, section 475.53, subdivision 4. new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

new text begin TAX LEVY FOR DEBT SERVICE. new text end

new text begin To pay the principal of and interest on bonds issued under section 12, Independent School District No. 625, St. Paul, must levy a tax annually in an amount sufficient under Minnesota Statutes, section 475.61, subdivisions 1 and 3, to pay the principal of and interest on the bonds. The tax authorized under this section is in addition to the taxes authorized to be levied under Minnesota Statutes, chapter 123B, 124D, or 126C, or other law. 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. 14.

new text begin ADMINISTRATIVE LEASE LEVY; SPRING LAKE PARK. new text end

new text begin Notwithstanding the instructional purposes limitation of Minnesota Statutes, section 126C.40, subdivision 1, Independent School District No. 16, Spring Lake Park, may lease administrative space under Minnesota Statutes, section 126C.40, subdivision 1, if the district can demonstrate to the satisfaction of the commissioner of education that the administrative space is less expensive than instruction space that the district would otherwise lease. A school district may not levy under this section for more than five years. The commissioner must deny this levy authority unless the district passes a resolution stating its intent to lease instructional space under Minnesota Statutes, section 126C.40, subdivision 1, if the commissioner does not grant authority under this section. The resolution must also certify that a lease of administrative space under this section is less expensive than the district's proposed instructional lease. Levy authority under this section shall not exceed the total levy authority under Minnesota Statutes, section 126C.40, subdivision 1, paragraph (e). new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2008. new text end

Sec. 15.

new text begin HEALTH AND SAFETY REVENUE; CLEARBROOK-GONVICK. new text end

new text begin Notwithstanding Minnesota Statutes, section 123B.57, Independent School District No. 2311, Clearbrook-Gonvick, may use health and safety revenue for the demolition of the Gonvick school building. The district must recognize the revenue under this section in fiscal year 2008. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2008. new text end

Sec. 16.

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 Health and safety revenue. new text end

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

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

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

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

new text begin Subd. 3. new text end

new text begin Debt service equalization. new text end

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

new text begin $ new text end new text begin 14,813,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 11,124,000 new text end new text begin ..... new text end new text begin 2009 new text end

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

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

new text begin Subd. 4. new text end

new text begin Alternative facilities bonding aid. new text end

new text begin For alternative facilities bonding aid, according to Minnesota Statutes, section 123B.59, subdivision 1: new text end

new text begin $ new text end new text begin 19,287,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 19,287,000 new text end new text begin ..... new text end new text begin 2009 new text end

new text begin The 2008 appropriation includes $1,928,000 for 2007 and $17,359,000 for 2008. new text end

new text begin The 2009 appropriation includes $1,928,000 for 2008 and $17,359,000 for 2009. new text end

new text begin Subd. 5. new text end

new text begin Equity in telecommunications access. new text end

new text begin For equity in telecommunications access: new text end

new text begin $ new text end new text begin 7,622,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 8,743,000 new text end new text begin ..... new text end new text begin 2009 new text end

new text begin If the appropriation amount is insufficient, the commissioner shall reduce the reimbursement rate in Minnesota Statutes, section 125B.26, subdivisions 4 and 5, and the revenue for fiscal years 2008 and 2009 shall be prorated. new text end

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

new text begin The base appropriation for fiscal year 2010 and later is $3,750,000. new text end

new text begin Subd. 6. new text end

new text begin Deferred maintenance aid. new text end

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

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

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

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

new text begin Subd. 7. new text end

new text begin Rocori school district. new text end

new text begin For Rocori, Independent School District No. 750, for Project Serv: new text end

new text begin $ new text end new text begin 53,000 new text end new text begin ..... new text end new text begin 2008 new text end

new text begin Subd. 8. new text end

new text begin School technology and operating capital aid grants. new text end

new text begin For school technology and operating capital grants under section 11: new text end

new text begin $ new text end new text begin 38,145,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 52,676,000 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

new text begin Subd. 9. new text end

new text begin Eden Valley-Watkins; environmental remediation. new text end

new text begin For a grant to Independent School District No. 463, Eden Valley-Watkins, to recover the amount actually spent on environmental remediation efforts related to the cleanup of a mercury spill. new text end

new text begin $ new text end new text begin 126,000 new text end new text begin ..... new text end new text begin 2008 new text end

ARTICLE 5

NUTRITION AND ACCOUNTING

Section 1.

Minnesota Statutes 2006, section 123B.10, subdivision 1, is amended to read:

Subdivision 1.

Budgetsnew text begin ; form of notificationnew text end .

new text begin (a) new text end Every board must publish revenue and expenditure budgets for the current year and the actual revenues, expenditures, fund balances for the prior year and projected fund balances for the current year in a form prescribed by the commissioner within one week of the acceptance of the final audit by the board, or November 30, whichever is earlier. The forms prescribed must be designed so that year to year comparisons of revenue, expenditures and fund balances can be made. deleted text begin These budgets, reports of revenue, expenditures and fund balances must be published in a qualified newspaper of general circulation in the district or on the district's official Web site. If published on the district's official Web site, the district must also publish an announcement in a qualified newspaper of general circulation in the district that includes the Internet address where the information has been posted.deleted text end

new text begin (b) A school board annually must notify the public of its revenue, expenditures, fund balances, and other relevant budget information. The board must include the budget information required by this section in the materials provided as a part of its truth in taxation hearing, post the materials in a conspicuous place on the district's official Web site, including a link to the district's school report card on the Department of Education's Web site, and publish the information in a qualified newspaper of general circulation in the district. new text end

Sec. 2.

Minnesota Statutes 2006, section 123B.77, subdivision 4, is amended to read:

Subd. 4.

Budget approval.

Prior to July 1 of each year, the board of each district must approve and adopt its revenue and expenditure budgets for the next school year. The budget document so adopted must be considered an expenditure-authorizing or appropriations document. No funds shall be expended by any board or district for any purpose in any school year prior to the adoption of the budget document which authorizes that expenditure, or prior to an amendment to the budget document by the board to authorize the expenditure. Expenditures of funds in violation of this subdivision shall be considered unlawful expenditures. deleted text begin Prior to the appropriation of revenue for the next school year in the initial budget, the board shall inform the principal or other responsible administrative authority of each site of the amount of general education and referendum revenue that the Department of Education estimates will be generated by the pupils in attendance at each site. For purposes of this subdivision, a district may adjust the department's estimates for school building openings, school building closings, changes in attendance area boundaries, or other changes in programs or student demographics not reflected in the department's calculations. A district must report to the department any adjustments it makes according to this subdivision in the department's estimates of compensatory revenue generated by the pupils in attendance at each site, and the department must use the adjusted compensatory revenue estimates in preparing the report required under section 123B.76, subdivision 3, paragraph (c).deleted text end

Sec. 3.

Minnesota Statutes 2006, section 123B.79, subdivision 8, is amended to read:

Subd. 8.

Account transfer for reorganizing districts.

A district that has reorganized according to sections 123A.35 to 123A.43, 123A.46, or 123A.48, or has conducted a successful referendum on the question of combination under section 123A.37, subdivision 2, or consolidation under section 123A.48, subdivision 15, or has been assigned an identification number by the commissioner under section 123A.48, subdivision 16, may make permanent transfers between any of the funds new text begin or accounts new text end in the newly created or enlarged district with the exception of the debt redemption fund, food service fund, and health and safety account of the capital expenditure fund. Fund transfers under this section may be made for up to one year prior to the effective date of combination or consolidation new text begin by the consolidating boards new text end and during the year following the effective date of reorganizationnew text begin by the consolidated board. The newly formed board of the combined district may adopt a resolution on or before August 30 of the year of the reorganization authorizing a transfer among accounts or funds of the previous independent school districts which transfer or transfers shall be reported in the affected districts' audited financial statements for the year immediately preceding the consolidationnew text end .

Sec. 4.

Minnesota Statutes 2006, section 123B.79, is amended by adding a subdivision to read:

new text begin Subd. 9. new text end

new text begin Elimination of reserve accounts. new text end

new text begin A school board shall eliminate all reserve accounts established in the school district's general fund under Minnesota Statutes before July 1, 2006, for which no specific authority remains in statute as of June 30, 2007. Any balance in the district's reserved for bus purchases account as of June 30, 2007, shall be transferred to the reserved account for operating capital in the school district's general fund. Any balance in other reserved accounts established in the school district's general fund under Minnesota Statutes before July 1, 2006, for which no specific authority remains in statute as of June 30, 2007, shall be transferred to the school district's unreserved general fund balance. A school board may, upon adoption of a resolution by the school board, establish a designated account for any program for which a reserved account has been eliminated. new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2006, section 124D.111, subdivision 1, is amended to read:

Subdivision 1.

School lunch aid computation.

Each school year, the state must pay participants in the national school lunch program the amount of deleted text begin 10.5deleted text end new text begin 12new text end cents for each full paid, reduced, and free student lunch served to students.

Sec. 6.

Minnesota Statutes 2006, section 126C.15, subdivision 2, is amended to read:

Subd. 2.

Building allocation.

(a) A district must allocate its compensatory revenue to each school building in the district where the children who have generated the revenue are served unless the school district has received permission under new text begin Laws 2005, First Special Session chapter 5, article 1,new text end section 50new text begin ,new text end to allocate compensatory revenue according to student performance measures developed by the school board.

(b) Notwithstanding paragraph (a), a district may allocate up to five percent of the amount of compensatory revenue that the district receives to school sites according to a plan adopted by the school board.new text begin The money reallocated under this paragraph must be spent for the purposes listed in subdivision 1, but may be spent on students in any grade, including students attending school readiness or other prekindergarten programs.new text end

(c) For the purposes of this section and section 126C.05, subdivision 3, "building" means education site as defined in section 123B.04, subdivision 1.

(d) If the pupil is served at a site other than one owned and operated by the district, the revenue shall be paid to the district and used for services for pupils who generate the revenue.

new text begin (e) A district with school building openings, school building closings, changes in attendance area boundaries, or other changes in programs or student demographics between the prior year and the current year may reallocate compensatory revenue among sites to reflect these changes. A district must report to the department any adjustments it makes according to this paragraph and the department must use the adjusted compensatory revenue allocations in preparing the report required under section 123B.76, subdivision 3, paragraph (c). new text end

Sec. 7.

Minnesota Statutes 2006, section 126C.41, is amended by adding a subdivision to read:

new text begin Subd. 6. new text end

new text begin Levy authority for unfunded severance and retirement costs. new text end

new text begin (a) A school district qualifies for eligibility under this section if the district: new text end

new text begin (1) participated in the cooperative secondary facilities program; new text end

new text begin (2) consolidated with at least two other school districts; and new text end

new text begin (3) has unfunded severance or retirement costs. new text end

new text begin (b) An eligible school district may annually levy up to $150,000 for unfunded severance or retirement costs. This levy authority expires after taxes payable in 2017. new text end

new text begin (c) A school district that levies under this section must reserve the proceeds of the levy and spend those amounts only for unfunded severance or retirement costs. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2008. new text end

Sec. 8.

Minnesota Statutes 2006, section 126C.48, subdivision 2, is amended to read:

Subd. 2.

Notice to commissioner; forms.

By October 7 of each year each district must notify the commissioner of the proposed levies in compliance with the levy limitations of this chapter and chapters 120B, 122A, 123A, 123B, 124D, 125A, 127A, and 136D. new text begin A school district that has reached an agreement with its home county auditor to extend the date of certification of its proposed levy under section 275.065, subdivision 1, must submit its notice of proposed levies to the commissioner no later than October 10 of each year. new text end By January 7 of each year each district must notify the commissioner of the final levies certified. The commissioner shall prescribe the form of these notifications and may request any additional information necessary to compute certified levy amounts.

Sec. 9.

Minnesota Statutes 2006, section 275.065, subdivision 1, is amended to read:

Subdivision 1.

Proposed levy.

(a) Notwithstanding any law or charter to the contrary, on or before September 15, each taxing authority, other than a school district, shall adopt a proposed budget and shall certify to the county auditor the proposed or, in the case of a town, the final property tax levy for taxes payable in the following year.

(b) On or before September 30, each school district new text begin that has not mutually agreed with its home county to extend this date new text end shall certify to the county auditor the proposed property tax levy for taxes payable in the following year. new text begin Each school district that has agreed with its home county to delay the certification of its proposed property tax levy must certify its proposed property tax levy for the following year no later than October 7. new text end The school district shall certify the proposed levy as:

(1) a specific dollar amount by school district fund, broken down between voter-approved and non-voter-approved levies and between referendum market value and tax capacity levies; or

(2) the maximum levy limitation certified by the commissioner of education according to section 126C.48, subdivision 1.

(c) If the board of estimate and taxation or any similar board that establishes maximum tax levies for taxing jurisdictions within a first class city certifies the maximum property tax levies for funds under its jurisdiction by charter to the county auditor by September 15, the city shall be deemed to have certified its levies for those taxing jurisdictions.

(d) For purposes of this section, "taxing authority" includes all home rule and statutory cities, towns, counties, school districts, and special taxing districts as defined in section 275.066. Intermediate school districts that levy a tax under chapter 124 or 136D, joint powers boards established under sections 123A.44 to 123A.446, and Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special taxing districts for purposes of this section.

Sec. 10.

Minnesota Statutes 2006, section 275.065, subdivision 1a, is amended to read:

Subd. 1a.

Overlapping jurisdictions.

In the case of a taxing authority lying in two or more counties, the home county auditor shall certify the proposed levy and the proposed local tax rate to the other county auditor by October 5new text begin , unless the home county has agreed to delay the certification of its proposed property tax levy, in which case the home county auditor shall certify the proposed levy and the proposed local tax rate to the other county auditor by October 10new text end . The home county auditor must estimate the levy or rate in preparing the notices required in subdivision 3, if the other county has not certified the appropriate information. If requested by the home county auditor, the other county auditor must furnish an estimate to the home county auditor.

Sec. 11.

new text begin PLAINVIEW-ELGIN-MILLVILLE; CONSOLIDATED DISTRICT FUND BALANCE CALCULATIONS. new text end

new text begin Subdivision 1. new text end

new text begin Fiscal year 2007 replacement aid. new text end

new text begin Independent School District No. 2899, Plainview-Elgin-Millville, is eligible for replacement aid to offset its excess fund balance penalty for fiscal year 2007. new text end

new text begin Subd. 2. new text end

new text begin Fiscal years 2008 and 2009. new text end

new text begin Upon receipt of appropriate documentation from Independent School District No. 2899, Plainview-Elgin-Millville, the Department of Education must adjust the district's three-year adjusted average fund balances required under Minnesota Statutes, sections 124D.135, 124D.16 and 124D.20. The department shall adjust the fiscal year 2006 account balances reported by former Independent School Districts Nos. 806, Elgin-Millville, and 810, Plainview, to reflect any permanent account of fund transfers made under Minnesota Statutes, section 123B.79. new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 12.

new text begin FUND TRANSFER. new text end

new text begin Subdivision 1. new text end

new text begin Brainerd. new text end

new text begin Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, on June 30, 2007, Independent School District No. 181, Brainerd, may permanently transfer up to $750,000 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 Campbell-Tintah. new text end

new text begin Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, on June 30, 2007, Independent School District No. 852, Campbell-Tintah, may permanently transfer up to $100,000 from its reserved for operating capital account to its undesignated general fund without making a levy reduction. new text end

new text begin Subd. 3. new text end

new text begin Comfrey. new text end

new text begin Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, on June 30, 2007, Independent School District No. 81, Comfrey, may permanently transfer up to $250,000 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 Floodwood. new text end

new text begin Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, on June 30, 2007, Independent School District No. 698, Floodwood, may transfer up to $227,000 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 International Falls. new text end

new text begin Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, on June 30, 2007, Independent School District No. 361, International Falls, may permanently 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. 6. new text end

new text begin Jackson County Central. new text end

new text begin Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, on June 30, 2007, Independent School District No. 2895, Jackson County Central, may permanently 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. 7. new text end

new text begin Red Rock Central. new text end

new text begin Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, on June 30, 2007, Independent School District No. 2884, Red Rock Central, may permanently transfer up to $81,000 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. 8. new text end

new text begin Windom. new text end

new text begin Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, on June 30, 2007, Independent School District No. 177, Windom, may transfer up to $50,000 from its reserved for operating capital account to its undesignated general fund balance without making a levy reduction. new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

new text begin 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 School lunch. new text end

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

new text begin $ new text end new text begin 12,022,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 12,166,000 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 Traditional school breakfast; kindergarten milk. new text end

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

new text begin $ new text end new text begin 5,460,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 5,695,000 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 Summer food service replacement aid. new text end

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

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

new text begin Subd. 5. new text end

new text begin Plainview-Elgin-Millville fund balance replacement aid. new text end

new text begin For fund balance replacement aid for Independent School District No. 2899, Plainview-Elgin-Millville: new text end

new text begin $ new text end new text begin 17,000 new text end new text begin ..... new text end new text begin 2008 new text end

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

Sec. 14.

new text begin REPEALER. new text end

new text begin Minnesota Statutes 2006, section 123B.749, new text end new text begin is repealed. new text end

ARTICLE 6

LIBRARIES

Section 1.

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

new text begin Subd. 4a. new text end

new text begin Services to the blind and physically handicapped. new text end

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

Sec. 2.

Minnesota Statutes 2006, section 134.34, subdivision 4, is amended to read:

Subd. 4.

Limitation.

A regional library basic system support grant shall not be made to a regional public library system for a participating city or county which decreases the dollar amount provided for support for operating purposes of public library service below the amount provided by it for the second preceding year. new text begin For purposes of this subdivision and subdivision 1, any funds provided under section 473.757, subdivision 2, for extending library hours of operation shall not be considered amounts provided by a city or county for support for operating purposes of public library service. new text end This subdivision shall not apply to participating cities or counties where the adjusted net tax capacity of that city or county has decreased, if the dollar amount of the reduction in support is not greater than the dollar amount by which support would be decreased if the reduction in support were made in direct proportion to the decrease in adjusted net tax capacity.

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

new text begin DEPARTMENT OF EDUCATION; LIBRARY 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 Basic system support. new text end

new text begin For basic system support grants under Minnesota Statutes, section 134.355: new text end

new text begin $ new text end new text begin 9,182,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 13,138,000 new text end new text begin ..... new text end new text begin 2009 new text end

new text begin The 2008 appropriation includes $857,000 for 2007 and $8,325,000 for 2008. new text end

new text begin The 2009 appropriation includes $925,000 for 2008 and $12,213,000 for 2009. new text end

new text begin Subd. 3. new text end

new text begin Multicounty, multitype library systems. new text end

new text begin For grants under Minnesota Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems: new text end

new text begin $ new text end new text begin 1,260,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 1,300,000 new text end new text begin ..... new text end new text begin 2009 new text end

new text begin The 2008 appropriation includes $90,000 for 2007 and $1,170,000 for 2008. new text end

new text begin The 2009 appropriation includes $130,000 for 2008 and $1,170,000 for 2009. new text end

new text begin Subd. 4. new text end

new text begin Electronic library for Minnesota. new text end

new text begin For statewide licenses to online databases selected in cooperation with the Minnesota Office of Higher Education for school media centers, public libraries, state government agency libraries, and public or private college or university libraries: new text end

new text begin $ new text end new text begin 900,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 900,000 new text end new text begin ..... new text end new text begin 2009 new text end

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

new text begin Subd. 5. new text end

new text begin Regional library telecommunications aid. new text end

new text begin For regional library telecommunications aid under Minnesota Statutes, section 134.355: new text end

new text begin $ new text end new text begin 2,190,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 2,300,000 new text end new text begin ..... new text end new text begin 2009 new text end

new text begin The 2008 appropriation includes $120,000 for 2007 and $2,070,000 for 2008. new text end

new text begin The 2009 appropriation includes $230,000 for 2008 and $2,070,000 for 2009. new text end

new text begin Subd. 6. new text end

new text begin Hennepin County and Minneapolis library systems merger. new text end

new text begin For costs attributable to the library system merger: new text end

new text begin $ new text end new text begin 4,500,000 new text end new text begin ..... new text end new text begin 2008 new text end

new text begin If the Hennepin County and Minneapolis city library systems do not merge, any unexpended balance remaining in this appropriation must be allocated to increase the fiscal year 2008 entitlement for Basic System Support Grants under Minnesota Statutes, section 134.355. new text end

new text begin This appropriation is available through June 30, 2009. new text end

new text begin This is a onetime appropriation.new text end * (The preceding subdivision was indicated as vetoed by the governor.)

ARTICLE 7

STATE AGENCIES

Section 1.

new text begin [127A.065] CROSS-SUBSIDY REPORT. new text end

new text begin By January 10, the commissioner of education shall submit an annual report to the legislative committees having jurisdiction over kindergarten through grade 12 education on the amount each district is cross-subsidizing special education costs with general education revenue. new text end

Sec. 2.

Minnesota Statutes 2006, section 517.08, subdivision 1c, is amended to read:

Subd. 1c.

Disposition of license fee.

(a) Of the marriage license fee collected pursuant to subdivision 1b, paragraph (a), $15 must be retained by the county. The local registrar must pay $85 to the commissioner of finance to be deposited as follows:

(1) $50 in the general fund;

(2) $3 in the new text begin state government new text end special revenue fund to be appropriated to the commissioner of deleted text begin educationdeleted text end new text begin public safetynew text end for parenting time centers under section 119A.37;

(3) $2 in the special revenue fund to be appropriated to the commissioner of health for developing and implementing the MN ENABL program under section 145.9255;

(4) $25 in the special revenue fund is appropriated to the commissioner of employment and economic development for the displaced homemaker program under section 116L.96; and

(5) $5 in the special revenue fund is appropriated to the commissioner of human services for the Minnesota Healthy Marriage and Responsible Fatherhood Initiative under section 256.742.

(b) Of the $30 fee under subdivision 1b, paragraph (b), $15 must be retained by the county. The local registrar must pay $15 to the commissioner of finance to be deposited as follows:

(1) $5 as provided in paragraph (a), clauses (2) and (3); and

(2) $10 in the special revenue fund is appropriated to the commissioner of employment and economic development for the displaced homemaker program under section 116L.96.

(c) The increase in the marriage license fee under paragraph (a) provided for in Laws 2004, chapter 273, and disbursement of the increase in that fee to the special fund for the Minnesota Healthy Marriage and Responsible Fatherhood Initiative under paragraph (a), clause (5), is contingent upon the receipt of federal funding under United States Code, title 42, section 1315, for purposes of the initiative.

Sec. 3.

new text begin RULEMAKING AUTHORITY; CAREER AND TECHNICAL EDUCATION. new text end

new text begin The commissioner of education shall adopt rules under Minnesota Statutes, chapter 14, for the administration of career and technical education programs for grades 7 through 12 under Minnesota Statutes, sections 124D.452, 124D.4531, and 124D.454, to ensure that the career and technical levy and programs can be administered to serve students under the current state and local organizational structures. 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.

new text begin APPROPRIATIONS; DEPARTMENT OF EDUCATION. new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin 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. new text end

new text begin Subd. 2. new text end

new text begin Department. new text end

new text begin (a) For the Department of Education: new text end

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

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

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

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

new text begin (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. new text end

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

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

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

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

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

new text begin (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. new text end

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

Sec. 5.

new text begin APPROPRIATIONS; MINNESOTA STATE ACADEMIES. new text end

new text begin The sums indicated in this section are appropriated from the general fund to the Minnesota State Academies for the Deaf and the Blind for the fiscal years designated: new text end

new text begin $ new text end new text begin 11,788,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 11,915,000 new text end new text begin ..... new text end new text begin 2009 new text end

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

Sec. 6.

new text begin APPROPRIATIONS; PERPICH CENTER FOR ARTS EDUCATION. new text end

new text begin The sums indicated in this section are appropriated from the general fund to the Perpich Center for Arts Education for the fiscal years designated: new text end

new text begin $ new text end new text begin 6,929,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 7,090,000 new text end new text begin ..... new text end new text begin 2009 new text end

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

Sec. 7.

new text begin APPROPRIATIONS; DEPARTMENT OF PUBLIC SAFETY. new text end

new text begin The sums indicated in this section are appropriated from the state government special revenue fund to the Department of Public Safety for the fiscal years designated to fund parenting time centers as described in Minnesota Statutes, section 119A.37: new text end

new text begin $ new text end new text begin 96,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 96,000 new text end new text begin ..... new text end new text begin 2009 new text end

ARTICLE 8

PUPIL TRANSPORTATION STANDARDS

Section 1.

Minnesota Statutes 2006, section 123B.88, subdivision 12, is amended to read:

Subd. 12.

Early childhood family education participants.

Districts may provide bus transportation along deleted text begin regulardeleted text end school bus routes when space is available for participants in early childhood family education programs and school readiness programs if these services do not result in an increase in the district's expenditures for transportation. The costs allocated to these services, as determined by generally accepted accounting principles, shall be considered part of the authorized cost for deleted text begin regulardeleted text end transportation for the purposes of section 123B.92.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and applies for fiscal year 2007 and later. new text end

Sec. 2.

Minnesota Statutes 2006, section 123B.90, subdivision 2, is amended to read:

Subd. 2.

Student training.

(a) Each district must provide public school pupils enrolled in kindergarten through grade 10 with age-appropriate school bus safety training, as described in this section, of the following concepts:

(1) transportation by school bus is a privilege and not a right;

(2) district policies for student conduct and school bus safety;

(3) appropriate conduct while on the school bus;

(4) the danger zones surrounding a school bus;

(5) procedures for safely boarding and leaving a school bus;

(6) procedures for safe street or road crossing; and

(7) school bus evacuation.

(b) Each nonpublic school located within the district must provide all nonpublic school pupils enrolled in kindergarten through grade 10 who are transported by school bus at public expense and attend school within the district's boundaries with training as required in paragraph (a).

(c) Students enrolled in kindergarten through grade 6 who are transported by school bus and are enrolled during the first or second week of school must receive the school bus safety training competencies by the end of the third week of school. Students enrolled in grades 7 through 10 who are transported by school bus and are enrolled during the first or second week of school and have not previously received school bus safety training must receive the training or receive bus safety instructional materials by the end of the sixth week of school. Students taking driver's training instructional classes deleted text begin and other students in grades 9 and 10deleted text end must receive training in the laws and proper procedures when operating a motor vehicle in the vicinity of a school busnew text begin as required by section 169.446, subdivisions 2 and 3new text end . Students enrolled in kindergarten through grade 10 who enroll in a school after the second week of school and are transported by school bus and have not received training in their previous school district shall undergo school bus safety training or receive bus safety instructional materials within four weeks of the first day of attendance. new text begin Upon request of the superintendent of schools, new text end the school transportation safety director in each district must certify to the superintendent deleted text begin of schools annuallydeleted text end that all students transported by school bus within the district have received the school bus safety training according to this section. new text begin Upon request of the superintendent of the school district where the nonpublic school is located, new text end the principal or other chief administrator of each nonpublic school must certify deleted text begin annuallydeleted text end to the school transportation safety director of the district in which the school is located that the school's students transported by school bus at public expense have received training according to this section.

(d) A district and a nonpublic school with students transported by school bus at public expense may provide kindergarten pupils with bus safety training before the first day of school.

(e) A district and a nonpublic school with students transported by school bus at public expense may also provide student safety education for bicycling and pedestrian safety, for students enrolled in kindergarten through grade 5.

(f) A district and a nonpublic school with students transported by school bus at public expense must make reasonable accommodations for the school bus safety training of pupils known to speak English as a second language and pupils with disabilities.

(g) The district and a nonpublic school with students transported by school bus at public expense must provide students enrolled in kindergarten through grade 3 school bus safety training twice during the school year.

(h) A district and a nonpublic school with students transported by school bus at public expense must conduct a school bus evacuation drill at least once during the school year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007. new text end

Sec. 3.

Minnesota Statutes 2006, section 169.01, is amended by adding a subdivision to read:

new text begin Subd. 92. new text end

new text begin Cellular phone. new text end

new text begin "Cellular phone" means a cellular, analog, wireless, or digital telephone capable of sending or receiving telephone or text messages without an access line for service. new text end

Sec. 4.

Minnesota Statutes 2006, section 169.443, is amended by adding a subdivision to read:

new text begin Subd. 9. new text end

new text begin Personal cellular phone call prohibition. new text end

new text begin A school bus driver may not operate a school bus while communicating over, or otherwise operating, a cellular phone for personal reasons, whether hand-held or hands free, when the vehicle is in motion. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007. new text end

Sec. 5.

Minnesota Statutes 2006, section 169.447, subdivision 2, is amended to read:

Subd. 2.

Driver seat belt.

deleted text begin Newdeleted text end School buses and Head Start buses deleted text begin manufactured after December 31, 1994,deleted text end must be equipped with driver seat belts and seat belt assemblies of the type described in section 169.685, subdivision 3. School bus drivers and Head Start bus drivers must use these seat belts.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007. new text end

Sec. 6.

Minnesota Statutes 2006, section 169.4501, subdivision 1, is amended to read:

Subdivision 1.

National standards adopted.

Except as provided in sections 169.4502 and 169.4503, the construction, design, equipment, and color of types A, B, C, deleted text begin anddeleted text end D new text begin and multifunctional school activity bus new text end school buses used for the transportation of school children shall meet the requirements of the "bus chassis standards" and "bus body standards" in the deleted text begin 2000deleted text end new text begin 2005new text end edition of the "National School Transportation Specifications and Procedures" adopted by the National deleted text begin Conferencedeleted text end new text begin Congressnew text end on School Transportation. Except as provided in section 169.4504, the construction, design, and equipment of types A, B, C, deleted text begin anddeleted text end D new text begin and multifunctional school activity bus new text end school buses used for the transportation of students with disabilities also shall meet the requirements of the "specially equipped school bus standards" in the deleted text begin 2000deleted text end new text begin 2005new text end National School Transportation Specifications and Procedures. The "bus chassis standards," "bus body standards," and "specially equipped school bus standards" sections of the deleted text begin 2000deleted text end new text begin 2005new text end edition of the "National School Transportation Specifications and Procedures" are incorporated by reference in this chapter.

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

Minnesota Statutes 2006, section 169.4501, subdivision 2, is amended to read:

Subd. 2.

Applicability.

(a) The standards adopted in this section and sections 169.4502 and 169.4503, govern the construction, design, equipment, and color of school buses used for the transportation of school children, when owned or leased and operated by a school or privately owned or leased and operated under a contract with a school. Each school, its officers and employees, and each person employed under the contract is subject to these standards.

(b) The standards apply to school buses manufactured after deleted text begin October 31, 2004deleted text end new text begin December 31, 2007new text end . Buses complying with the standards when manufactured need not comply with standards established later except as specifically provided for by law.

(c) A school bus manufactured on or before deleted text begin October 31, 2004deleted text end new text begin December 31, 2007new text end , must conform to the Minnesota standards in effect on the date the vehicle was manufactured except as specifically provided for in law.

(d) A new bus body may be remounted on a used chassis provided that the remounted vehicle meets state and federal standards for new buses which are current at the time of the remounting. Permission must be obtained from the commissioner of public safety before the remounting is done. A used bus body may not be remounted on a new or used chassis.

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Minnesota Statutes 2006, section 169.4502, subdivision 5, is amended to read:

Subd. 5.

Electrical system; battery.

(a) The storage battery, as established by the manufacturer's rating, must be of sufficient capacity to care for starting, lighting, signal devices, heating, and other electrical equipment. In a bus with a gas-powered chassis, the battery or batteries must provide a minimum of 800 cold cranking amperes. In a bus with a diesel-powered chassis, the battery or batteries must provide a minimum of 1050 cold cranking amperes.

(b) In a type B bus with a gross vehicle weight rating of 15,000 pounds or more, and type C and D buses, the battery shall be temporarily mounted on the chassis frame. The final location of the battery and the appropriate cable lengths in these buses must comply with the SBMI design objectives booklet.

(c) All batteries shall be mounted according to chassis manufacturers' recommendations.

(d) In a type C bus, other than are powered by diesel fuel, a battery providing at least 550 cold cranking amperes may be installed in the engine compartment only if used in combination with a generator or alternator of at least deleted text begin 120deleted text end new text begin 130new text end amperes.

(e) A bus with a gross vehicle weight rating of 15,000 pounds or less may be equipped with a battery to provide a minimum of 550 cold cranking amperes only if used in combination with an alternator of at least deleted text begin 80deleted text end new text begin 130new text end amperes. This paragraph does not apply to those buses with wheelchair lifts or diesel engines.

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2006, section 169.4503, subdivision 13, is amended to read:

Subd. 13.

Identification.

(a) Each bus shall, in the beltline, identify the school district serviced, or company name, or owner of the bus. Numbers necessary for identification must appear on the sides and rear of the bus. Symbols or letters may be used on the outside of the bus near the entrance door for student identification. A manufacturer's nameplate or logo may be placed on the bus.

(b) Effective December 31, 1994, all new text begin type A, B, C, and D new text end buses sold must display lettering "Unlawful to pass when red lights are flashing" on the rear of the bus. The lettering shall be in two-inch black letters on school bus yellow background. This message shall be displayed directly below the upper window of the rear door. On rear engine buses, it shall be centered at approximately the same location. Only signs and lettering approved or required by state law may be displayed.

new text begin EFFECTIVE DATE. new text end

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

Sec. 10.

Minnesota Statutes 2006, section 169.4503, subdivision 20, is amended to read:

Subd. 20.

Seat and crash barriers.

new text begin (a) new text end All restraining barriers and passenger seats shall be covered with a material that has fire retardant or fire block characteristics.

new text begin (b) All seats must have a minimum cushion depth of 15 inches and a seat back height of at least 20 inches above the seating reference point. new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 11.

Minnesota Statutes 2006, section 171.02, subdivision 2, is amended to read:

Subd. 2.

Driver's license classifications, endorsements, exemptions.

(a) Drivers' licenses are classified according to the types of vehicles that may be driven by the holder of each type or class of license. The commissioner may, as appropriate, subdivide the classes listed in this subdivision and issue licenses classified accordingly.

(b) Except as provided in paragraph (c), clauses (1) and (2), and subdivision 2a, no class of license is valid to operate a motorcycle, school bus, tank vehicle, double-trailer or triple-trailer combination, vehicle transporting hazardous materials, or bus, unless so endorsed. There are four general classes of licenses as described in paragraphs (c) through (f).

(c) Class D drivers' licenses are valid for:

(1) operating all farm trucks if the farm truck is:

(i) controlled and operated by a farmer, including operation by an immediate family member or an employee of the farmer;

(ii) used to transport agricultural products, farm machinery, or farm supplies, including hazardous materials, to or from a farm;

(iii) not used in the operations of a common or contract motor carrier as governed by Code of Federal Regulations, title 49, part 365; and

(iv) used within 150 miles of the farm;

(2) notwithstanding paragraph (b), operating an authorized emergency vehicle, as defined in section 169.01, subdivision 5, whether or not in excess of 26,000 pounds gross vehicle weight;

(3) operating a recreational vehicle as defined in section 168.011, subdivision 25, that is operated for personal use;

(4) operating all single-unit vehicles except vehicles with a gross vehicle weight of more than 26,000 pounds, vehicles designed to carry more than 15 passengers including the driver, and vehicles that carry hazardous materials;

(5) notwithstanding paragraph (d), operating a type A school bus new text begin or a multifunctional school activity bus new text end without a school bus endorsement if:

(i) the bus has a gross vehicle weight of 10,000 pounds or less;

(ii) the bus is designed to transport 15 or fewer passengers, including the driver; and

(iii) the requirements of subdivision 2a are satisfied, as determined by the commissioner;

(6) operating any vehicle or combination of vehicles when operated by a licensed peace officer while on duty; and

(7) towing vehicles if:

(i) the towed vehicles have a gross vehicle weight of 10,000 pounds or less; or

(ii) the towed vehicles have a gross vehicle weight of more than 10,000 pounds and the combination of vehicles has a gross vehicle weight of 26,000 pounds or less.

(d) Class C drivers' licenses are valid for:

(1) operating class D motor vehicles;

(2) with a hazardous materials endorsement, transporting hazardous materials in class D vehicles; and

(3) with a school bus endorsement, operating school buses designed to transport 15 or fewer passengers, including the driver.

(e) Class B drivers' licenses are valid for:

(1) operating all class C motor vehicles, class D motor vehicles, and all other single-unit motor vehicles including, with a passenger endorsement, buses; and

(2) towing only vehicles with a gross vehicle weight of 10,000 pounds or less.

(f) Class A drivers' licenses are valid for operating any vehicle or combination of vehicles.

new text begin EFFECTIVE DATE. new text end

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

Sec. 12.

Minnesota Statutes 2006, section 171.02, subdivision 2a, is amended to read:

Subd. 2a.

Exception for certain school bus drivers.

Notwithstanding subdivision 2, paragraph (c), the holder of a class D driver's license, without a school bus endorsement, may operate a type A school bus described in subdivision 2, paragraph (b), under the following conditions:

(a) The operator is an employee of the entity that owns, leases, or contracts for the school bus and is not solely hired to provide transportation services under this subdivision.

(b) The operator drives the school bus only from points of origin to points of destination, not including home-to-school trips to pick up or drop off students.

(c) The operator is prohibited from using the eight-light system. Violation of this paragraph is a misdemeanor.

(d) The operator's employer has adopted and implemented a policy that provides for annual training and certification of the operator in:

(1) safe operation of the type of school bus the operator will be driving;

(2) understanding student behavior, including issues relating to students with disabilities;

(3) encouraging orderly conduct of students on the bus and handling incidents of misconduct appropriately;

(4) knowing and understanding relevant laws, rules of the road, and local school bus safety policies;

(5) handling emergency situations; and

(6) safe loading and unloading of students.

(e) A background check or background investigation of the operator has been conducted that meets the requirements under section 122A.18, subdivision 8, or 123B.03 for teachers; section 144.057 or chapter 245C for day care employees; or section 171.321, subdivision 3, for all other persons operating a type A school bus under this subdivision.

(f) Operators shall submit to a physical examination as required by section 171.321, subdivision 2.

(g) The operator's driver's license is verified annually by the entity that owns, leases, or contracts for the school bus.

(h) A person who sustains a conviction, as defined under section 609.02, of violating section 169A.25, 169A.26, 169A.27, 169A.31, 169A.51, or 169A.52, or a similar statute or ordinance of another state is precluded from operating a school bus for five years from the date of conviction.

(i) A person who has ever been convicted of a disqualifying offense as defined in section 171.3215, subdivision 1, paragraph (c), may not operate a school bus under this subdivision.

(j) A person who sustains a conviction, as defined under section 609.02, of a fourth moving offense in violation of chapter 169 is precluded from operating a school bus for one year from the date of the last conviction.

(k) Students riding the school bus must have training required under section 123B.90, subdivision 2.

(l) An operator must be trained in the proper use of child safety restraints as set forth in the National Highway Traffic Safety Administration's "Guideline for the Safe Transportation of Pre-school Age Children in School Busesdeleted text begin .deleted text end new text begin ,new text end "new text begin if child safety restraints are used by the passengers.new text end

(m) Annual certification of the requirements listed in this subdivision must be maintained under separate file at the business location for each operator licensed under this subdivision and subdivision 2, paragraph (b), clause (5). The business manager, school board, governing body of a nonpublic school, or any other entity that owns, leases, or contracts for the school bus operating under this subdivision is responsible for maintaining these files for inspection.

(n) The school bus must bear a current certificate of inspection issued under section 169.451.

(o) The word "School" on the front and rear of the bus must be covered by a sign that reads "Activities" when the bus is being operated under authority of this subdivision.

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

Minnesota Statutes 2006, section 171.321, subdivision 4, is amended to read:

Subd. 4.

Training.

(a) No person shall drive a class A, B, C, or D school bus when transporting school children to or from school or upon a school-related trip or activity without having demonstrated sufficient skills and knowledge to transport students in a safe and legal manner.

(b) A bus driver must have training or experience that allows the driver to meet at least the following competencies:

(1) safely operate the type of school bus the driver will be driving;

(2) understand student behavior, including issues relating to students with disabilities;

(3) encourage orderly conduct of students on the bus and handle incidents of misconduct appropriately;

(4) know and understand relevant laws, rules of the road, and local school bus safety policies;

(5) handle emergency situations; and

(6) safely load and unload students.

(c) The commissioner of public safety shall develop a comprehensive model school bus driver training program and model assessments for school bus driver training competencies, which are not subject to chapter 14. A school districtnew text begin , nonpublic school, or private contractornew text end may use alternative assessments for bus driver training competencies with the approval of the commissioner of public safety. new text begin A driver may receive at least eight hours of school bus in-service training any year, as an alternative to being assessed for bus driver competencies after the initial year of being assessed for bus driver competencies. new text end The employer shall keep the assessment new text begin or a record of the in-service training new text end for the current period available for inspection by representatives of the commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007. new text end

Sec. 14.

new text begin RULES REVISED: COMMISSIONER OF PUBLIC SAFETY. new text end

new text begin Subdivision 1. new text end

new text begin Rules revised under the good cause exemption. new text end

new text begin The commissioner of public safety must amend and adopt the revisions to the rules listed in subdivisions 2 to 8 under the good cause exemption to the rulemaking process under Minnesota Statutes, section 14.388, subdivision 1, clause (3). new text end

new text begin Subd. 2. new text end

new text begin Minnesota Rules, part 7470.0500. new text end

new text begin The commissioner of public safety must amend Minnesota Rules, part 7470.0500, by replacing two obsolete references to the Department of Children, Families, and Learning, with a reference to the Department of Public Safety and removing references to specifically repealed rules. new text end

new text begin Subd. 3. new text end

new text begin Minnesota Rules, part 7470.0700. new text end

new text begin The commissioner of public safety must amend Minnesota Rules, part 7470.0700, as follows: new text end

new text begin (1) for the points assigned to school bus equipment defects, strike the reference to "orange" school buses and include a new school bus color exemption for multifunctional school activity buses; and new text end

new text begin (2) replace the references to type I and type II school buses with type A, B, C, or D school buses. new text end

new text begin Subd. 4. new text end

new text begin Minnesota Rules, part 7470.1000. new text end

new text begin The commissioner of public safety must amend Minnesota Rules, part 7470.1000, to: new text end

new text begin (1) include multifunctional school activity buses in the headnote; new text end

new text begin (2) update subpart 1 to include multifunctional school activity buses as a type of school bus listed after bus types A, B, C, and D; new text end

new text begin (3) modify subpart 2 to clarify that the prohibition against loading or unloading while adjacent to a turn lane applies only when it is a right-hand turn lane and does not prohibit a bus from loading or unloading at the side of the road when there is a center turn lane; and new text end

new text begin (4) expand the exception that allows service dogs on school buses to include all companion animals. new text end

new text begin Subd. 5. new text end

new text begin Minnesota Rules, part 7470.1100. new text end

new text begin The commissioner of public safety must amend Minnesota Rules, part 7470.1100, to include multifunctional school activity buses in the headnote and amend subpart 1 to include multifunctional school activity buses as a type of school bus listed after bus types A, B, C, and D. The commissioner must also amend item B of this part to require drivers to use prewarning flashing signals, flashing red signals, and stop signals arms on buses that are equipped with those signals. new text end

new text begin Subd. 6. new text end

new text begin Minnesota Rules, part 7470.1400. new text end

new text begin The commissioner of public safety must amend Minnesota Rules, part 7470.1400, to clarify that the operating rules in parts 7470.1000 to 7470.1500 apply to buses that are leased and rented as well as to school buses that are owned by a school district, a nonpublic school, or a private operator under contract to a school district or nonpublic school. new text end

new text begin Subd. 7. new text end

new text begin Minnesota Rules, part 7470.1500. new text end

new text begin The commissioner of public safety must amend Minnesota Rules, part 7470.1500, to: new text end

new text begin (1) clarify that the prohibition against loading or unloading while adjacent to a turn lane applies only when it is a right-hand turn lane and does not prohibit a bus from loading or unloading at the side of the road when there is a center turn lane; and new text end

new text begin (2) delete item H because it is obsolete. new text end

new text begin Subd. 8. new text end

new text begin Minnesota Rules, part 7470.1700. new text end

new text begin The commissioner of public safety must amend Minnesota Rules, part 7470.1700, subpart 2, to: new text end

new text begin (1) clarify that the bus driver and the bus aide must have access to emergency health care information for the students with disabilities transported on the bus; and new text end

new text begin (2) add an item E that allows the health information to be maintained either in a hard copy on the vehicle or immediately accessible through a two-way communications system. 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. 15.

new text begin REPEALER. new text end

new text begin Minnesota Statutes 2006, sections 169.4502, subdivision 15; and 169.4503, subdivisions 17, 18, and 26, new text end new text begin are repealed. new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 9

EARLY CHILDHOOD AND
ADULT PROGRAMS

Section 1.

Minnesota Statutes 2006, section 119A.52, is amended to read:

119A.52 DISTRIBUTION OF APPROPRIATION.

new text begin (a) new text end The commissioner of education must distribute money appropriated for that purpose to federally designated Head Start programs to expand services and to serve additional low-income children. Migrant and Indian reservation programs must be initially allocated money based on the programs' share of federal funds. The remaining money must be initially allocated to the remaining local agencies based equally on the agencies' share of federal funds and on the proportion of eligible children in the agencies' service area who are not currently being served. A Head Start deleted text begin granteedeleted text end new text begin programnew text end must be funded at a per child rate equal to its contracted, federally funded base level at the start of the fiscal year. In allocating funds under this paragraph, the commissioner of education must assure that each Head Start program in existence in 1993 is allocated no less funding in any fiscal year than was allocated to that program in fiscal year 1993. Before paying money to the programs, the commissioner must notify each program of its initial allocation, how the money must be used, and the number of low-income children to be served with the allocation based upon the federally funded per child rate. Each program must present a plan under section 119A.535. For any deleted text begin granteedeleted text end new text begin programnew text end that cannot utilize its full allocationnew text begin at the beginning of the fiscal yearnew text end , the commissioner must reduce the allocation proportionately. Money available after the initial allocations are reduced must be redistributed to eligible deleted text begin granteesdeleted text end new text begin programsnew text end .

new text begin (b) The commissioner must develop procedures to make payments to programs based upon the number of children reported to be enrolled during the required time period of program operations. Enrollment is defined by federal Head Start regulations. The procedures must include a reporting schedule, corrective action plan requirements, and financial consequences to be imposed on programs that do not meet full enrollment after the period of corrective action. Programs reporting chronic underenrollment, as defined by the commissioner, will have their subsequent program year allocation reduced proportionately. Funds made available by prorating payments and allocations to programs with reported underenrollment will be made available to the extent funds exist to fully enrolled Head Start programs through a form and manner prescribed by the department. new text end

Sec. 2.

Minnesota Statutes 2006, section 119A.535, is amended to read:

119A.535 APPLICATION REQUIREMENTS.

Eligible Head Start organizations must submit a plan to the department for approval on a form and in the manner prescribed by the commissioner. The plan must include:

(1) the deleted text begin estimateddeleted text end number of low-income children and families the program will be able to serve;

(2) a description of the program design and service delivery area which meets the needs of and encourages access by low-income working families;

(3) a program design that ensures fair and equitable access to Head Start services for all populations and parts of the service area;

(4) a plan for deleted text begin coordinating services to maximize assistance for child care costs available to families under chapter 119Bdeleted text end new text begin providing Head Start services in conjunction with full-day child care programs to minimize child transitions, increase program intensity and duration, and improve child and family outcomes as required in section 119A.5411new text end ; and

(5) identification of regular Head Start, early Head Start, new text begin full-day services identified in section 119A.5411, new text end and innovative services based upon demonstrated needs to be provided.

Sec. 3.

new text begin [119A.5411] FULL-DAY REQUIREMENTS. new text end

new text begin The following phase-in of full-day services in Head Start programs or licensed child care as defined in chapter 245A is required: new text end

new text begin (1) by fiscal year 2009, a minimum of 25 percent of the total state-funded enrollment throughout the state must be provided in full-day services; new text end

new text begin (2) by fiscal year 2011, a minimum of 40 percent of the total state-funded enrollment throughout the state must be provided in full-day services; and new text end

new text begin (3) by fiscal year 2013, a minimum of 50 percent of the total state-funded enrollment throughout the state must be provided in full-day services. new text end

new text begin Head Start programs may provide full-day services as part of their own program model or through agreements with licensed full-day child care programs. If licensed child care providers do not exist in a geographic area, choose not to participate, cannot meet the federal Head Start performance standards after sufficient opportunity, or a Head Start program is unable to establish the full-day services as a part of their own program model, the Head Start program may request exemption from the commissioner. new text end

Sec. 4.

Minnesota Statutes 2006, section 121A.17, subdivision 5, is amended to read:

Subd. 5.

Developmental screening program information.

The board must inform each resident family with a child eligible to participate in the developmental screening program about the availability of the program and the state's requirement that a child receive a developmental screening or provide health records indicating that the child received a comparable developmental screening from a public or private health care organization or individual health care provider not later than 30 days after the first day of attending kindergarten in a public school. A school district must inform all resident families with eligible children under age seven that their children may receive a developmental screening conducted either by the school district or by a public or private health care organization or individual health care providernew text begin and that the screening is not required if a statement signed by the child's parent or guardian is submitted to the administrator or other person having general control and supervision of the school that the child has not been screenednew text end .

Sec. 5.

Minnesota Statutes 2006, section 124D.13, subdivision 1, is amended to read:

Subdivision 1.

Establishmentnew text begin ; purposenew text end .

A district that provides a community education program under sections 124D.18 and 124D.19 may establish an early childhood family education program. Two or more districts, each of which provides a community education program, may cooperate to jointly provide an early childhood family education program.new text begin The purpose of the early childhood family education program is to provide parenting education to support children's learning and development.new text end

Sec. 6.

Minnesota Statutes 2006, section 124D.13, subdivision 2, is amended to read:

Subd. 2.

Program deleted text begin characteristicsdeleted text end new text begin requirementsnew text end .

(a) Early childhood family education programs are programs for children in the period of life from birth to kindergarten, for the parents and other relatives of these children, and for expectant parents. To the extent that funds are insufficient to provide programs for all children, early childhood family education programs should emphasize programming for a child from birth to age three and encourage parents and other relatives to involve four- and five-year-old children in school readiness programs, and other public and nonpublic early learning programs.new text begin A district may not limit participation to school district residents.new text end Early childhood family education programs deleted text begin may include the followingdeleted text end new text begin must providenew text end :

(1) programs to educate parents and other relatives about the physical, mental, and emotional development of childrennew text begin and to enhance the skills of parents and other relatives in providing for their children's learning and developmentnew text end ;

(2) deleted text begin programs to enhance the skills of parents and other relatives in providing for their children's learning and developmentdeleted text end new text begin structured learning activities requiring interaction between children and their parents or relativesnew text end ;

(3) new text begin structured new text end learning deleted text begin experiencesdeleted text end new text begin activitiesnew text end for children deleted text begin and parents and other relativesdeleted text end that promote children's developmentnew text begin and positive interaction with peers, which are held while parents or relatives attend parent education classesnew text end ;

deleted text begin (4) activities designed to detect children's physical, mental, emotional, or behavioral problems that may cause learning problems; deleted text end

deleted text begin (5) activities and materials designed to encourage self-esteem, skills, and behavior that prevent sexual and other interpersonal violence; deleted text end

deleted text begin (6) educational materials which may be borrowed for home use; deleted text end

deleted text begin (7)deleted text end new text begin (4)new text end information on related community resources;

deleted text begin (8) programs to preventdeleted text end new text begin (5) information, materials, and activities that support the safety of children, including prevention ofnew text end child abuse and neglect;new text begin andnew text end

deleted text begin (9) other programs or activities to improve the health, development, and school readiness of children; or deleted text end

deleted text begin (10) activities designed to maximize development during infancy. deleted text end

new text begin (6) a community outreach plan to ensure participation by families who reflect the racial, cultural, and economic diversity of the school district. new text end

new text begin The programs must include learning experiences for children, parents, and other relatives that promote children's early literacy skills. new text end The deleted text begin programsdeleted text end new text begin program new text end must not include activities for children that do not require substantial involvement of the children's parents or other relatives. The deleted text begin programsdeleted text end new text begin programnew text end must be reviewed periodically to assure the instruction and materials are not racially, culturally, or sexually biased. The programs must encourage parents to be aware of practices that may affect equitable development of children.

(b) For the purposes of this section, "relative" or "relatives" means noncustodial grandparents or other persons related to a child by blood, marriage, adoption, or foster placement, excluding parents.

Sec. 7.

Minnesota Statutes 2006, section 124D.13, subdivision 11, is amended to read:

Subd. 11.

Teachers.

A school board must employ necessary qualified teachers new text begin licensed in early childhood or parent education new text end for its early childhood family education programs.

Sec. 8.

Minnesota Statutes 2006, section 124D.13, is amended by adding a subdivision to read:

new text begin Subd. 13. new text end

new text begin Plan and program data submission requirements. new text end

new text begin (a) An early childhood family education program must submit a biennial plan addressing the requirements of subdivision 2 for approval by the commissioner. The plan must also describe how the program provides parenting education and ensures participation of families representative of the school district. A school district must submit the plan for approval by the commissioner in the form and manner prescribed by the commissioner. One-half of districts, as determined by the commissioner, must first submit a biennial plan by April 1, 2009, and the remaining districts must first submit a plan by April 1, 2010. new text end

new text begin (b) Districts receiving early childhood family education revenue under section 124D.135 must submit annual program data to the department by July 15 in the form and manner prescribed by the commissioner. new text end

new text begin (c) Beginning with levies for fiscal year 2011, a school district must submit its annual program data to the department before it may certify a levy under section 124D.135. Districts selected by the commissioner to submit a biennial plan by April 1, 2009, must also have an approved plan on file with the commissioner before certifying a levy under section 124D.135 for fiscal year 2011. Beginning with levies for fiscal year 2012, all districts must submit annual program data and have an approved biennial plan on file with the commissioner before certifying a levy under section 124D.135. new text end

Sec. 9.

Minnesota Statutes 2006, section 124D.135, subdivision 1, is amended to read:

Subdivision 1.

Revenue.

The revenue for early childhood family education programs for a school district equals $112 for fiscal year 2007 new text begin and $120 for fiscal year 2008 new text end and later, times the greater of:

(1) 150; or

(2) the number of people under five years of age residing in the district on October 1 of the previous school year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008. new text end

Sec. 10.

Minnesota Statutes 2006, section 124D.135, subdivision 3, is amended to read:

Subd. 3.

Early childhood family education levy.

deleted text begin For fiscal year 2001 to obtain early childhood family education revenue, a district may levy an amount equal to the tax rate of .5282 percent times the adjusted tax capacity of the district for the year preceding the year the levy is certified. Beginning with levies for fiscal year 2002,deleted text end new text begin (a)new text end By September 30 of each year, the commissioner shall establish a tax rate for early childhoodnew text begin familynew text end education revenue that raises deleted text begin $21,027,000 for fiscal year 2002 anddeleted text end $22,135,000 innew text begin eachnew text end fiscal year deleted text begin 2003 and each subsequent yeardeleted text end . If the amount of the early childhood family education levy would exceed the early childhood family education revenue, the early childhood family education levy must equal the early childhood family education revenue.new text begin Beginning with levies for fiscal year 2011, a district may not certify an early childhood family education levy unless it has met the annual program data reporting and biennial plan requirements under section 124D.13, subdivision 13.new text end

new text begin (b) Notwithstanding paragraph (a), for fiscal year 2009 only, the commissioner shall establish a tax rate for early education revenue that raises $13,565,000. new text end

Sec. 11.

Minnesota Statutes 2006, section 124D.135, subdivision 5, is amended to read:

Subd. 5.

Use of revenue restricted.

new text begin (a) new text end Early childhood family education revenue may be used only for early childhood family education programs.

new text begin (b)new text end Not more than five percent of early childhood family education revenue, as defined in subdivision 7, may be used to administer early childhood family education programs.

new text begin (c) An early childhood family education program may use up to ten percent of its early childhood family education revenue as defined in subdivision 1, including revenue from participant fees, for equipment that is used in the early childhood family education program. This revenue may only be used for the following purposes: new text end

new text begin (1) to purchase or lease computers and related materials; and new text end

new text begin (2) to purchase or lease equipment for instruction for participating children and their families. new text end

new text begin If a district anticipates an unusual circumstance requiring its early childhood family education program capital expenditures to exceed the ten percent limitation, prior approval to exceed the limit must be obtained in writing from the commissioner. new text end

Sec. 12.

Minnesota Statutes 2006, section 124D.135, subdivision 6, is amended to read:

Subd. 6.

Home visiting levy.

A district thatnew text begin is eligible to levy for early childhood family education under subdivision 3 and thatnew text end enters into a collaborative agreement to provide education services and social services to families with young children may levy an amount equal to $1.60 times the number of people under five years of age residing in the district on September 1 of the last school year. Levy revenue under this subdivision must not be included as revenue under subdivision 1. The revenue must be used for home visiting programs under section 124D.13, subdivision 4.

Sec. 13.

Minnesota Statutes 2006, section 124D.15, subdivision 3, is amended to read:

Subd. 3.

Program requirements.

A school readiness program provider must:

(1) assess each child's cognitive skills when the child enters and again before the child leaves the program to inform program planning and promote kindergarten readiness;

(2) provide comprehensive program content based on early childhood research and professional practice that is focused on children's cognitive skills and development and prepares children for the transition to kindergartennew text begin , including early literacy skillsnew text end ;

(3) arrange for early childhood screening and appropriate referral;

(4) involve parents in program planning and decision making;

(5) coordinate with relevant community-based services; and

(6) cooperate with adult basic education programs and other adult literacy programs.

Sec. 14.

new text begin [124D.2211] AFTER-SCHOOL COMMUNITY LEARNING PROGRAMS. new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin A competitive statewide after-school community learning grant program is established to provide grants to community or nonprofit organizations, political subdivisions, for-profit or nonprofit child care centers, or school-based programs that serve youth after school or during nonschool hours. The commissioner shall develop criteria for after-school community learning programs. new text end

new text begin Subd. 2. new text end

new text begin Program outcomes. new text end

new text begin The expected outcomes of the after-school community learning programs are to increase: new text end

new text begin (1) school connectedness of participants; new text end

new text begin (2) academic achievement of participating students in one or more core academic areas; new text end

new text begin (3) the capacity of participants to become productive adults; and new text end

new text begin (4) prevent truancy from school and prevent juvenile crime. new text end

new text begin Subd. 3. new text end

new text begin Grants. new text end

new text begin An applicant shall submit an after-school community learning program proposal to the commissioner. The submitted plan must include: new text end

new text begin (1) collaboration with and leverage of existing community resources that have demonstrated effectiveness; new text end

new text begin (2) outreach to children and youth; and new text end

new text begin (3) involvement of local governments, including park and recreation boards or schools, unless no government agency is appropriate. new text end

new text begin Proposals will be reviewed and approved by the commissioner. new text end

Sec. 15.

Minnesota Statutes 2006, 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. new text begin 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. new text end 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) 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.

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. 16.

Minnesota Statutes 2006, section 124D.531, subdivision 4, is amended to read:

Subd. 4.

Adult basic education program aid limit.

(a) Notwithstanding subdivisions 2 and 3, the total adult basic education aid for a program per prior year contact hour must not exceed deleted text begin $21deleted text end new text begin $22new text end per prior year contact hour computed under subdivision 3, clause (2).

deleted text begin (b) For fiscal year 2004, the aid for a program under subdivision 3, clause (2), adjusted for changes in program membership, must not exceed the aid for that program under subdivision 3, clause (2), for fiscal year 2003 by more than the greater of eight percent or $10,000. deleted text end

deleted text begin (c) For fiscal year 2005, the aid for a program under subdivision 3, clause (2), adjusted for changes in program membership, must not exceed the sum of the aid for that program under subdivision 3, clause (2), and Laws 2003, First Special Session chapter 9, article 9, section 8, paragraph (a), for the preceding fiscal year by more than the greater of eight percent or $10,000. deleted text end

deleted text begin (d)deleted text end new text begin (b)new text end For fiscal year 2006 and deleted text begin laterdeleted text end new text begin fiscal year 2007new text end , the aid for a program under subdivision 3, clause (2), adjusted for changes in program membership, must not exceed the aid for that program under subdivision 3, clause (2), for the first preceding fiscal year by more than the greater of eight percent or $10,000.

new text begin (c) For fiscal year 2008, the aid for a program under subdivision 3, clause (2), adjusted for changes in program membership, shall not be limited. new text end

new text begin (d) For fiscal year 2009 and later, the aid for a program under subdivision 3, clause (2), adjusted for changes in program membership, must not exceed the aid for that program under subdivision 3, clause (2), for the first preceding fiscal year by more than the greater of 11 percent or $10,000. new text end

(e) Adult basic education aid is payable to a program for unreimbursed costs occurring in the program year as defined in section 124D.52, subdivision 3.

(f) Any adult basic education aid that is not paid to a program because of the program aid limitation under paragraph (a) must be added to the state total adult basic education aid for the next fiscal year under subdivision 1. Any adult basic education aid that is not paid to a program because of the program aid limitations under paragraph (b), (c), or (d), must be reallocated among programs by adjusting the rate per contact hour under subdivision 3, clause (2).

Sec. 17.

new text begin APPROPRIATION. new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

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

new text begin Subd. 2. new text end

new text begin Early childhood family education aid. new text end

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

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

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

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

new text begin Subd. 3. new text end

new text begin School readiness. new text end

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

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

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

new text begin The 2009 appropriation includes $1,009,000 for 2008 and $9,086,000 for 2009. new text end

new text begin Subd. 4. new text end

new text begin Health and developmental screening aid. new text end

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

new text begin $ new text end new text begin 3,159,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 3,330,000 new text end new text begin ..... new text end new text begin 2009 new text end

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

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

new text begin Subd. 5. new text end

new text begin Educate parents partnership. new text end

new text begin For the educate parents partnership under Minnesota Statutes, section 124D.129: new text end

new text begin $ new text end new text begin 50,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 50,000 new text end new text begin ..... new text end new text begin 2009 new text end

new text begin Any funds unexpended in fiscal year 2008 do not cancel and are available in fiscal year 2009. new text end

new text begin Subd. 6. new text end

new text begin Kindergarten entrance assessment initiative and intervention program. new text end

new text begin For the kindergarten entrance assessment initiative and intervention program under Minnesota Statutes, section 124D.162: new text end

new text begin $ new text end new text begin 287,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 287,000 new text end new text begin ..... new text end new text begin 2009 new text end

new text begin Any funds unexpended in fiscal year 2008 do not cancel and are available in fiscal year 2009. new text end

new text begin Subd. 7. new text end

new text begin Head Start programs. new text end

new text begin For Head Start programs under Minnesota Statutes, section 119A.52: new text end

new text begin $ new text end new text begin 20,100,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 20,100,000 new text end new text begin ..... new text end new text begin 2009 new text end

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

new text begin Subd. 8. new text end

new text begin Community education aid. new text end

new text begin For community education aid under Minnesota Statutes, section 124D.20: new text end

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

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

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

new text begin Subd. 9. new text end

new text begin Adults with disabilities program aid. new text end

new text begin For adults with disabilities programs under Minnesota Statutes, section 124D.56: new text end

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

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

new text begin The 2009 appropriation includes $71,000 for 2008 and $639,000 for 2009. new text end

new text begin 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. new text end

new text begin Subd. 10. new text end

new text begin Hearing-impaired adults. new text end

new text begin For programs for hearing-impaired adults under Minnesota Statutes, section 124D.57: new text end

new text begin $ new text end new text begin 70,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 70,000 new text end new text begin ..... new text end new text begin 2009 new text end

new text begin Subd. 11. new text end

new text begin School-age care revenue. new text end

new text begin For extended day aid under Minnesota Statutes, section 124D.22: new text end

new text begin $ new text end new text begin 1,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 1,000 new text end new text begin ..... new text end new text begin 2009 new text end

new text begin The 2008 appropriation includes $0 for 2007 and $1,000 for 2008. new text end

new text begin The 2009 appropriation includes $0 for 2008 and $1,000 for 2009. new text end

new text begin Subd. 12. new text end

new text begin After-school community learning grants. new text end

new text begin For after-school community learning grants: new text end

new text begin $ new text end new text begin 2,775,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 2,600,000 new text end new text begin ..... new text end new text begin 2009 new text end

new text begin The commissioner may hire one full-time equivalent staff person to administer the statewide after-school community learning grant program. new text end

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

new text begin Subd. 13. new text end

new text begin Adult basic education aid. new text end

new text begin For adult basic education aid under Minnesota Statutes, section 124D.531: new text end

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

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

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

new text begin Subd. 14. new text end

new text begin GED test fees. new text end

new text begin For GED test fees under Minnesota Statutes, section 124D.55: new text end

new text begin $ new text end new text begin 125,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 125,000 new text end new text begin ..... new text end new text begin 2009 new text end

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

new text begin Subd. 15. new text end

new text begin Adult literacy grants for recent immigrants. new text end

new text begin For adult literacy grants for recent immigrants to Minnesota under Laws 2006, chapter 282, article 2, section 26: new text end

new text begin $ new text end new text begin 1,250,000 new text end new text begin ..... new text end new text begin 2008 new text end

Sec. 18.

new text begin APPROPRIATIONS; DEPARTMENT OF HEALTH. new text end

new text begin Subdivision 1. new text end

new text begin Department of Health. new text end

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

new text begin Subd. 2. new text end

new text begin Lead hazard reduction. new text end

new text begin For lead hazard reduction under Minnesota Statutes, section 144.9512: new text end

new text begin $ new text end new text begin 100,000 new text end new text begin ..... new text end new text begin 2008 new text end
new text begin $ new text end new text begin 100,000 new text end new text begin ..... new text end new text begin 2009 new text end

Sec. 19.

new text begin REPEALER. new text end

new text begin Minnesota Statutes 2006, sections 124D.175; and 124D.531, subdivision 5, new text end new text begin are repealed. new text end

ARTICLE 10

EDUCATION FORECAST ADJUSTMENTS

A. GENERAL EDUCATION

Section 1.

Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 2, as amended by Laws 2006, chapter 282, article 3, section 2, is amended to read:

Subd. 2

General education aid

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

$ 5,819,153,000 ..... 2006
$ deleted text begin 5,472,238,000 deleted text end new text begin 5,453,693,000 new text end ..... 2007

The 2006 appropriation includes $787,978,000 for 2005 and $5,031,175,000 for 2006.

The 2007 appropriation includes deleted text begin $513,848,000deleted text end new text begin $518,218,000new text end for 2006 and deleted text begin $4,958,390,000deleted text end new text begin $4,935,475,000new text end for 2007.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 4, is amended to read:

Subd. 4.

Enrollment options transportation.