1.1 	A bill for an act
1.2 	relating to education; providing for early childhood and family, prekindergarten 
1.3 	through grade 12, and adult education, including general education, education 
1.4 	excellence, special programs, facilities and technology, nutrition and accounting, 
1.5 	libraries, early childhood education, prevention, self-sufficiency and lifelong 
1.6 	learning, and stage agencies; authorizing rulemaking; appropriating money;
1.7 	amending Minnesota Statutes 2006, sections 120B.021, subdivision 1; 120B.022, 
1.8 	subdivision 1; 120B.023, subdivision 2; 120B.024; 120B.132; 122A.415, 
1.9 	subdivisions 1, 3; 122A.72, subdivision 5; 123B.10, subdivision 1; 123B.53, 
1.10 	subdivision 1; 123B.57, subdivision 3; 123B.92, subdivision 1; 124D.11, 
1.11 	subdivision 1; 124D.128, subdivisions 1, 2, 3; 124D.13, subdivisions 1, 2, by 
1.12 	adding a subdivision; 124D.135, subdivisions 3, 5, 6; 124D.42, subdivision 6, 
1.13 	by adding a subdivision; 124D.454, subdivisions 2, 3; 124D.65, subdivision 
1.14 	5; 125A.75, subdivision 4; 125A.76, subdivisions 1, 2, 4, 5, by adding a 
1.15 	subdivision; 125A.79, subdivisions 5, 6, 8; 126C.05, subdivisions 8, 15; 126C.10, 
1.16 	subdivisions 2, 2a, 4, 13a, 18, 24, 26, 27, 31, 34, by adding a subdivision; 
1.17 	126C.21, subdivision 3; 127A.47, subdivision 8; 127A.49, subdivisions 2, 3; 
1.18 	272.02, subdivision 64; 272.029, by adding a subdivision; 517.08, subdivision 
1.19 	1c;  Laws 2006, chapter 282, article 3, section 4, subdivision 2; proposing coding 
1.20 	for new law in Minnesota Statutes, chapters 119A; 120B; 122A; 124D; repealing 
1.21 	Minnesota Statutes 2006, sections 124D.454, subdivisions 4, 5, 6, 7; 125A.76, 
1.22 	subdivision 3; 126C.10, subdivisions 25, 28.
1.23 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.24 	ARTICLE 1
1.25 	GENERAL EDUCATION

1.26 	Section 1. Minnesota Statutes 2006, section 122A.415, subdivision 1, is amended to 
1.27 	read:
1.28 		Subdivision 1.Revenue amount. (a) A school district, intermediate school district, 
1.29 	school site, or charter school that meets the conditions of section 122A.414 and submits an 
1.30 	application approved by the commissioner is eligible for alternative teacher compensation 
1.31 	revenue.
2.1 	(b) For school district and intermediate school district applications, the commissioner 
2.2 	must consider only those applications to participate that are submitted jointly by a 
2.3 	district and the exclusive representative of the teachers. The application must contain an 
2.4 	alternative teacher professional pay system agreement that:
2.5 	(1) implements an alternative teacher professional pay system consistent with 
2.6 	section 122A.414; and
2.7 	(2) is negotiated and adopted according to the Public Employment Labor Relations 
2.8 	Act under chapter 179A, except that notwithstanding section 179A.20, subdivision 3, a 
2.9 	district may enter into a contract for a term of two or four years.
2.10 	Alternative teacher compensation revenue for a qualifying school district or site in 
2.11 	which the school board and the exclusive representative of the teachers agree to place 
2.12 	teachers in the district or at the site on the alternative teacher professional pay system 
2.13 	equals $260 times the ratio of the formula allowance for the current fiscal year to the 
2.14 	formula allowance for fiscal year 2007 times the number of pupils enrolled at the district 
2.15 	or site on October 1 of the previous fiscal year. Alternative teacher compensation revenue 
2.16 	for a qualifying intermediate school district must be calculated under section 126C.10, 
2.17 	subdivision 34, paragraphs (a) and (b).
2.18 	(c) For a newly combined or consolidated district, the revenue shall be computed 
2.19 	using the sum of pupils enrolled on October 1 of the previous year in the districts entering 
2.20 	into the combination or consolidation. The commissioner may adjust the revenue 
2.21 	computed for a site using prior year data to reflect changes attributable to school closings, 
2.22 	school openings, or grade level reconfigurations between the prior year and the current 
2.23 	year.
2.24 	(d) The revenue is available only to school districts, intermediate school districts, 
2.25 	school sites, and charter schools that fully implement an alternative teacher professional 
2.26 	pay system by October 1 of the current school year.

2.27 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

2.28 	Sec. 2. Minnesota Statutes 2006, section 122A.415, subdivision 3, is amended to read:
2.29 		Subd. 3.Revenue timing. (a) Districts, intermediate school districts, school sites, 
2.30 	or charter schools with approved applications must receive alternative compensation 
2.31 	revenue for each school year that the district, intermediate school district, school site, 
2.32 	or charter school implements an alternative teacher professional pay system under this 
2.33 	subdivision and section 122A.414. For fiscal year 2007 and later, a qualifying district, 
2.34 	intermediate school district, school site, or charter school that received alternative teacher 
2.35 	compensation aid for the previous fiscal year must receive at least an amount of alternative 
3.1 	teacher compensation revenue equal to the lesser of the amount it received for the previous 
3.2 	fiscal year or the amount it qualifies for under subdivision 1 for the current fiscal year if 
3.3 	the district, intermediate school district, school site, or charter school submits a timely 
3.4 	application and the commissioner determines that the district, intermediate school district, 
3.5 	school site, or charter school continues to implement an alternative teacher professional 
3.6 	pay system, consistent with its application under this section.
3.7 	(b) The commissioner shall approve applications that comply with subdivision 1, 
3.8 	and section 122A.414, subdivisions 2, paragraph (b), and 2a, if the applicant is a charter 
3.9 	school, in the order in which they are received, select applicants that qualify for this 
3.10 	program, notify school districts, intermediate school districts, school sites, and charter 
3.11 	schools about the program, develop and disseminate application materials, and carry out 
3.12 	other activities needed to implement this section.
3.13 	(c) For applications approved under this section before August 1 of the fiscal year for 
3.14 	which the aid is paid, the portion of the state total basic alternative teacher compensation 
3.15 	aid entitlement allocated to charter schools must not exceed $522,000 for fiscal year 
3.16 	2006 and $3,374,000 for fiscal year 2007. For fiscal year 2008 and later, the portion of 
3.17 	the state total basic alternative teacher compensation aid entitlement allocated to charter 
3.18 	schools must not exceed the product of $3,374,000 times the ratio of the state total charter 
3.19 	school enrollment for the previous fiscal year to the state total charter school enrollment 
3.20 	for the second previous year. Additional basic alternative teacher compensation aid may 
3.21 	be approved for charter schools after August 1, not to exceed the charter school limit for 
3.22 	the following fiscal year, if the basic alternative teacher compensation aid entitlement 
3.23 	for school districts based on applications approved by August 1 does not expend the 
3.24 	remaining amount under the limit.

3.25 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

3.26 	Sec. 3. Minnesota Statutes 2006, section 124D.11, subdivision 1, is amended to read:
3.27 		Subdivision 1.General education revenue. (a) General education revenue must 
3.28 	be paid to a charter school as though it were a district. The general education revenue 
3.29 	for each adjusted marginal cost pupil unit is the state average general education revenue 
3.30 	per pupil unit, plus the referendum equalization aid allowance in the pupil's district of 
3.31 	residence, minus an amount equal to the product of the formula allowance according to 
3.32 	section 126C.10, subdivision 2, times .0485 .0416, calculated without basic skills revenue, 
3.33 	extended time revenue, alternative teacher compensation revenue, transition revenue, and 
3.34 	transportation sparsity revenue, plus basic skills revenue, extended time revenue, basic 
3.35 	alternative teacher compensation aid according to section 126C.10, subdivision 34, and 
4.1 	transition revenue as though the school were a school district. The general education 
4.2 	revenue for each extended time marginal cost pupil unit equals $4,378 for fiscal year 2007, 
4.3 	$4,499 for fiscal year 2008, and $4,589 for fiscal year 2009 and later.
4.4 	(b) Notwithstanding paragraph (a), for charter schools in the first year of operation, 
4.5 	general education revenue shall be computed using the number of adjusted pupil units 
4.6 	in the current fiscal year.

4.7 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

4.8 	Sec. 4. Minnesota Statutes 2006, section 124D.128, subdivision 1, is amended to read:
4.9 		Subdivision 1.Program established. A learning year program provides instruction 
4.10 	throughout the year on an extended year calendar, extended school day calendar, or 
4.11 	both. A pupil may participate in the program and accelerate attainment of grade level 
4.12 	requirements or graduation requirements. A learning year program may begin after the 
4.13 	close of the regular school year in June. The program may be for students in one or more 
4.14 	grade levels from kindergarten through grade 12.

4.15 	Sec. 5. Minnesota Statutes 2006, section 124D.128, subdivision 2, is amended to read:
4.16 		Subd. 2.Commissioner designation. (a) An area learning center designated by the 
4.17 	state must be a site. An area learning center must provide services to students who meet 
4.18 	the criteria in section 124D.68 and who are enrolled in:
4.19 	(1) a district that is served by the center; or
4.20 	(2) a charter school located within the geographic boundaries of a district that is 
4.21 	served by the center.
4.22 	(b) A school district or charter school may be approved biennially by the state to 
4.23 	provide additional instructional programming that results in grade level acceleration. The 
4.24 	program must be designed so that students make grade progress during the school year 
4.25 	and graduate prior to the students' peers.
4.26 	(c) To be designated, a district, charter school, or center must demonstrate to the 
4.27 	commissioner that it will:
4.28 	(1) provide a program of instruction that permits pupils to receive instruction 
4.29 	throughout the entire year; and
4.30 	(2) develop and maintain a separate record system that, for purposes of section 
4.31 	126C.05, permits identification of membership attributable to pupils participating in the 
4.32 	program. The record system and identification must ensure that the program will not 
4.33 	have the effect of increasing the total number of pupil unitsaverage daily membership 
4.34 	attributable to an individual pupil as a result of a learning year program. The record 
5.1 	system must include the date the pupil originally enrolled in a learning year program, the 
5.2 	pupil's grade level, the date of each grade promotion, the average daily membership 
5.3 	generated in each grade level, the number of credits or standards earned, and the number 
5.4 	needed to graduate. 
5.5 	(b)(d) A student who has not completed a school district's graduation requirements 
5.6 	may continue to enroll in courses the student must complete in order to graduate until 
5.7 	the student satisfies the district's graduation requirements or the student is 21 years old, 
5.8 	whichever comes first.

5.9 	Sec. 6. Minnesota Statutes 2006, section 124D.128, subdivision 3, is amended to read:
5.10 		Subd. 3.Student planning. A district, charter school, or area learning center must 
5.11 	inform all pupils and their parents about the learning year program and that participation 
5.12 	in the program is optional. A continual learning plan must be developed at least annually 
5.13 	for each pupil with the participation of the pupil, parent or guardian, teachers, and other 
5.14 	staff; each participant must sign and date the plan. The plan must specify the learning 
5.15 	experiences that must occur during the entire fiscal year and,are necessary for grade 
5.16 	progression, or for secondary students, for graduation. The plan must include:
5.17 	(1) the pupil's learning objectives and experiences, including courses or credits the 
5.18 	pupil plans to complete each year and, for a secondary pupil, the graduation requirements 
5.19 	the student must complete;
5.20 	(2) the assessment measurements used to evaluate a pupil's objectives;
5.21 	(3) requirements for grade level or other appropriate progression; and
5.22 	(4) for pupils generating more than one average daily membership in a given grade, 
5.23 	an indication of which objectives were unmet.
5.24 	The plan may be modified to conform to district schedule changes. The district may 
5.25 	not modify the plan if the modification would result in delaying the student's time of 
5.26 	graduation.

5.27 	Sec. 7. Minnesota Statutes 2006, section 124D.65, subdivision 5, is amended to read:
5.28 		Subd. 5.School district LEP revenue. (a) The limited English proficiency 
5.29 	allowance equals $700 for fiscal year 2007, $714 for fiscal year 2008, and $729 for fiscal 
5.30 	year 2009 and later.
5.31 	(b) A district's limited English proficiency programs revenue equals the product of 
5.32 	(1) $700 in fiscal year 2004 and laterthe limited English proficiency allowance times (2) 
5.33 	the greater of 20 or the adjusted marginal cost average daily membership of eligible pupils 
5.34 	of limited English proficiency enrolled in the district during the current fiscal year.
6.1 	(b)(c) A pupil ceases to generate state limited English proficiency aid in the school 
6.2 	year following the school year in which the pupil attains the state cutoff score on a 
6.3 	commissioner-provided assessment that measures the pupil's emerging academic English.

6.4 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

6.5 	Sec. 8. Minnesota Statutes 2006, section 126C.05, subdivision 8, is amended to read:
6.6 		Subd. 8.Average daily membership. (a) Membership for pupils in grades 
6.7 	kindergarten through 12 and for prekindergarten pupils with disabilities shall mean the 
6.8 	number of pupils on the current roll of the school, counted from the date of entry until 
6.9 	withdrawal. The date of withdrawal shall mean the day the pupil permanently leaves 
6.10 	the school or the date it is officially known that the pupil has left or has been legally 
6.11 	excused. However, a pupil, regardless of age, who has been absent from school for 15 
6.12 	consecutive school days during the regular school year or for five consecutive school days 
6.13 	during summer school or intersession classes of flexible school year programs without 
6.14 	receiving instruction in the home or hospital shall be dropped from the roll and classified 
6.15 	as withdrawn. Nothing in this section shall be construed as waiving the compulsory 
6.16 	attendance provisions cited in section 120A.22. Average daily membership equals the 
6.17 	sum for all pupils of the number of days of the school year each pupil is enrolled in the 
6.18 	district's schools divided by the number of days the schools are in session. Days of 
6.19 	summer school or intersession classes of flexible school year programs are only included 
6.20 	in the computation of membership for pupils with a disability not appropriately served 
6.21 	primarily in the regular classroom. A student must not be counted as more than 1.21.5 
6.22 	pupils in average daily membership under this section. When the initial total average daily 
6.23 	membership exceeds 1.21.5 for a pupil enrolled in more than one school district during 
6.24 	the fiscal year, each district's average daily membership must be reduced proportionately. 
6.25 	(b) A student must not be counted as more than one pupil in average daily 
6.26 	membership except for purposes of section 126C.10, subdivision 2a. 

6.27 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

6.28 	Sec. 9. Minnesota Statutes 2006, section 126C.05, subdivision 15, is amended to read:
6.29 		Subd. 15.Learning year pupil units. (a) When a pupil is enrolled in a learning 
6.30 	year program under section 124D.128, an area learning center under sections 123A.05 and 
6.31 	123A.06, an alternative program approved by the commissioner, or a contract alternative 
6.32 	program under section 124D.68, subdivision 3, paragraph (d), or subdivision 3a, for more 
6.33 	than 1,020 hours in a school year for a secondary student, more than 935 hours in a school 
7.1 	year for an elementary student, or more than 425 hours in a school year for a kindergarten 
7.2 	student without a disability, that pupil may be counted as more than one pupil in average 
7.3 	daily membership for purposes of section 126C.10, subdivision 2a. The amount in excess 
7.4 	of one pupil must be determined by the ratio of the number of hours of instruction provided 
7.5 	to that pupil in excess of: (i) the greater of 1,020 hours or the number of hours required for 
7.6 	a full-time secondary pupil in the district to 1,020 for a secondary pupil; (ii) the greater of 
7.7 	935 hours or the number of hours required for a full-time elementary pupil in the district 
7.8 	to 935 for an elementary pupil in grades 1 through 6; and (iii) the greater of 425 hours or 
7.9 	the number of hours required for a full-time kindergarten student without a disability in 
7.10 	the district to 425 for a kindergarten student without a disability. Hours that occur after 
7.11 	the close of the instructional year in June shall be attributable to the following fiscal year. 
7.12 	A kindergarten student must not be counted as more than 1.21.5 pupils in average daily 
7.13 	membership under this subdivision. A student in grades 1 through 12 must not be counted 
7.14 	as more than 1.2 pupils in average daily membership under this subdivision. 
7.15 	(b)(i) To receive general education revenue for a pupil in an alternative program 
7.16 	that has an independent study component, a district must meet the requirements in this 
7.17 	paragraph. The district must develop, for the pupil, a continual learning plan consistent 
7.18 	with section 124D.128, subdivision 3. Each school district that has a state-approved public 
7.19 	alternative program must reserve revenue in an amount equal to at least 90 percent of the 
7.20 	district average general education revenue per pupil unit less compensatory revenue per 
7.21 	pupil unit times the number of pupil units generated by students attending a state-approved 
7.22 	public alternative program. The amount of reserved revenue available under this 
7.23 	subdivision may only be spent for program costs associated with the state-approved public 
7.24 	alternative program. Compensatory revenue must be allocated according to section 
7.25 	126C.15, subdivision 2. 
7.26 	(ii) General education revenue for a pupil in an approved alternative program 
7.27 	without an independent study component must be prorated for a pupil participating for 
7.28 	less than a full year, or its equivalent. The district must develop a continual learning plan 
7.29 	for the pupil, consistent with section 124D.128, subdivision 3. Each school district that 
7.30 	has a state-approved public alternative program must reserve revenue in an amount equal 
7.31 	to at least 90 percent of the district average general education revenue per pupil unit less 
7.32 	compensatory revenue per pupil unit times the number of pupil units generated by students 
7.33 	attending a state-approved public alternative program. The amount of reserved revenue 
7.34 	available under this subdivision may only be spent for program costs associated with the 
7.35 	state-approved public alternative program. Compensatory revenue must be allocated 
7.36 	according to section 126C.15, subdivision 2. 
8.1 	(iii) General education revenue for a pupil in an approved alternative program that 
8.2 	has an independent study component must be paid for each hour of teacher contact 
8.3 	time and each hour of independent study time completed toward a credit or graduation 
8.4 	standards necessary for graduation. Average daily membership for a pupil shall equal the 
8.5 	number of hours of teacher contact time and independent study time divided by 1,020.
8.6 	(iv) For an alternative program having an independent study component, the 
8.7 	commissioner shall require a description of the courses in the program, the kinds of 
8.8 	independent study involved, the expected learning outcomes of the courses, and the means 
8.9 	of measuring student performance against the expected outcomes.

8.10 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

8.11 	Sec. 10. Minnesota Statutes 2006, section 126C.10, subdivision 2, is amended to read:
8.12 		Subd. 2.Basic revenue. The basic revenue for each district equals the formula 
8.13 	allowance times the adjusted marginal cost pupil units for the school year. The formula 
8.14 	allowance for fiscal year 20052007 is $4,601 $4,974. The formula allowance for fiscal 
8.15 	year 20062008 is $4,783 $5,074. The formula allowance for fiscal year 20072009 and 
8.16 	subsequent years is $4,974 $5,176.

8.17 	Sec. 11. Minnesota Statutes 2006, section 126C.10, subdivision 2a, is amended to read:
8.18 		Subd. 2a.Extended time revenue. (a) A school district's extended time revenue is 
8.19 	equal to the product of $4,601the extended time allowance and the sum of the adjusted 
8.20 	marginal cost pupil units of the district for each pupil in average daily membership in 
8.21 	excess of 1.0 and less than 1.21.5 according to section 126C.05, subdivision 8. The 
8.22 	extended time allowance is $4,601 for fiscal year 2007, $4,694 for fiscal year 2008, and 
8.23 	$4,788 for fiscal year 2009 and subsequent years.
8.24 	(b) A school district's extended time revenue may be used for extended day 
8.25 	programs, extended week programs, summer school, and other programming authorized 
8.26 	under the learning year program, and for additional pupil transportation costs attributable 
8.27 	to these programs. Not more than five percent of the extended time revenue may be used 
8.28 	for administrative and oversight services.

8.29 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

8.30 	Sec. 12. Minnesota Statutes 2006, section 126C.10, subdivision 4, is amended to read:
8.31 		Subd. 4.Basic skills revenue. A school district's basic skills revenue equals the 
8.32 	sum of:
9.1 	(1) compensatory revenue under subdivision 3; plus
9.2 	(2) limited English proficiency revenue under section 124D.65, subdivision 5; plus 
9.3 	(3) $250the limited English proficiency concentration allowance times the limited 
9.4 	English proficiency concentration pupil units under section 126C.05, subdivision 17. 
9.5 	The limited English proficiency concentration allowance equals $250 for fiscal year 2007, 
9.6 	$255 for fiscal year 2008, and $261 for fiscal year 2009 and subsequent years.

9.7 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

9.8 	Sec. 13. Minnesota Statutes 2006, section 126C.10, subdivision 13a, is amended to 
9.9 	read:
9.10 		Subd. 13a.Operating capital levy. To obtain operating capital revenue for fiscal 
9.11 	year 2007 and later, a district may levy an amount not more than the product of its 
9.12 	operating capital revenue for the fiscal year times the lesser of one or the ratio of its 
9.13 	adjusted net tax capacity per adjusted marginal cost pupil unit to the operating capital 
9.14 	equalizing factor. The operating capital equalizing factor equals $22,222 for fiscal year 
9.15 	2006, and $10,700 for fiscal year 20072008 and $17,590 for fiscal year 2009 and later.

9.16 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2009.

9.17 	Sec. 14. Minnesota Statutes 2006, section 126C.10, subdivision 18, is amended to read:
9.18 		Subd. 18.Transportation sparsity revenue allowance. (a) A district's 
9.19 	transportation sparsity allowance equals the greater of zero or the result of the following 
9.20 	computation:
9.21 	(i) Multiply the formula allowance according to subdivision 2, by .1469 .1493.
9.22 	(ii) Multiply the result in clause (i) by the district's sparsity index raised to the 
9.23 	26/10030/100 power.
9.24 	(iii) Multiply the result in clause (ii) by the district's density index raised to the 
9.25 	13/10015/100 power.
9.26 	(iv) Multiply the formula allowance according to subdivision 2, by .0485 .0416.
9.27 	(v) Subtract the result in clause (iv) from the result in clause (iii).
9.28 	(b) Transportation sparsity revenue is equal to the transportation sparsity allowance 
9.29 	times the adjusted marginal cost pupil units.

9.30 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

9.31 	Sec. 15. Minnesota Statutes 2006, section 126C.10, subdivision 24, is amended to read:
9.32 		Subd. 24.Equity revenue. (a) A school district qualifies for equity revenue if:
10.1 	(1) the school district's adjusted marginal cost pupil unit amount of basic revenue, 
10.2 	supplemental revenue, transition revenue, and referendum revenue per resident marginal 
10.3 	cost pupil unit is less than the value of the school district at or immediately above the 95th 
10.4 	percentile of school districts in its equity region for those revenue categories 27 percent of 
10.5 	the formula allowance; and
10.6 	(2) the school district's administrative offices are not located in a city of the first 
10.7 	class on July 1, 1999.
10.8 	(b) Equity revenue for a qualifying district that receives referendum revenue under 
10.9 	section 126C.17, subdivision 4, equals the product of (1) the district's adjusted marginal 
10.10 	cost pupil units for that year; times (2) the sum of (i) $13, plus (ii) $75, times the school 
10.11 	district's equity index computed under subdivision 27.
10.12 	(c) Equity revenue for a qualifying district that does not receive referendum revenue 
10.13 	under section 126C.17, subdivision 4, equals the product of the district's adjusted marginal 
10.14 	cost pupil units for that year times $13.
10.15 	(d) A school district's equity revenue is increased by the greater of zero or an amount 
10.16 	equal to the district's resident marginal cost pupil units times the difference between ten
10.17 	1.5 percent of the statewide average amount of referendum revenue per resident marginal 
10.18 	cost pupil unitformula allowance for that year and the district's referendum revenue per 
10.19 	resident marginal cost pupil unit. A school district's revenue under this paragraph must 
10.20 	not exceed $100,000 for that year.
10.21 	(e) A school district's equity revenue for a school district located in the metro equity 
10.22 	region equals the amount computed in paragraphs (b), (c), and (d) multiplied by 1.25.
10.23 	(f) For fiscal year 20072008 and later, notwithstanding paragraph (a), clause (2), a 
10.24 	school district that has per pupil referendum revenue below the 95th percentilequalifies 
10.25 	for equity revenue under paragraph (a), clause (1), qualifies for additional equity revenue 
10.26 	equal to $46 times its adjusted marginal cost pupil unit units.
10.27 	(g) A district that does not qualify for revenue under paragraph (f) qualifies for 
10.28 	equity revenue equal to one-half of the per pupil allowance in paragraph (f) times its 
10.29 	adjusted marginal cost pupil units.

10.30 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

10.31 	Sec. 16. Minnesota Statutes 2006, section 126C.10, subdivision 26, is amended to read:
10.32 		Subd. 26.District equity gap. A district's equity gap equals the greater of zero or 
10.33 	the difference between the district's adjusted general revenue and the value of the school 
10.34 	district at or immediately above the regional 95th percentile of adjusted general revenue 
10.35 	per adjusted27 percent of the formula allowance and the sum of the district's equity 
11.1 	revenue per resident marginal cost pupil unit according to subdivision 24, paragraph 
11.2 	(c), and district's referendum revenue per resident marginal cost pupil unit according 
11.3 	to section 126C.17.

11.4 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

11.5 	Sec. 17. Minnesota Statutes 2006, section 126C.10, subdivision 27, is amended to read:
11.6 		Subd. 27.District equity index. A district's equity index equals the ratio of the 
11.7 	sum of the district equity gap amount to the regional equity gap amount 27 percent of the 
11.8 	formula allowance.

11.9 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

11.10 	Sec. 18. Minnesota Statutes 2006, section 126C.10, subdivision 31, is amended to read:
11.11 		Subd. 31.Transition revenue. (a) A district's transition allowance equals the 
11.12 	greater of zero or the product of the ratio of the number of adjusted marginal cost pupil 
11.13 	units the district would have counted for fiscal year 2004 under Minnesota Statutes 2002 
11.14 	to the district's adjusted marginal cost pupil units for fiscal year 2004, times the difference 
11.15 	between: (1) the lesser of the district's general education revenue per adjusted marginal 
11.16 	cost pupil unit for fiscal year 2003 or the amount of general education revenue the district 
11.17 	would have received per adjusted marginal cost pupil unit for fiscal year 2004 according 
11.18 	to Minnesota Statutes 2002, and (2) the district's general education revenue for fiscal year 
11.19 	2004 excluding transition revenue divided by the number of adjusted marginal cost pupil 
11.20 	units the district would have counted for fiscal year 2004 under Minnesota Statutes 2002.
11.21 	(b) A district's transition revenue for fiscal year 20062008 and later equals the 
11.22 	sum of (1) the product of the district's transition allowance times the district's adjusted 
11.23 	marginal cost pupil units plus (2) the district's transition for prekindergarten revenue under 
11.24 	subdivision 31a plus (3) the product of the district's transition equity allowance under 
11.25 	subdivision 31c times the district's adjusted marginal cost pupil units.

11.26 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

11.27 	Sec. 19. Minnesota Statutes 2006, section 126C.10, is amended by adding a 
11.28 	subdivision to read:
11.29 		Subd. 31c.Transition equity allowance. For fiscal year 2008 and later, a district's 
11.30 	transitional equity allowance equals the greater of zero or the difference between the 
11.31 	equity revenue the district would have received for fiscal year 2008 under section 
12.1 	126C.10, subdivision 24, and the district's equity revenue for fiscal year 2008, divided by 
12.2 	the district's adjusted marginal cost pupil units for fiscal year 2008.

12.3 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

12.4 	Sec. 20. Minnesota Statutes 2006, section 126C.10, subdivision 34, is amended to read:
12.5 		Subd. 34.Basic alternative teacher compensation aid. (a) For fiscal year 2006, 
12.6 	the basic alternative teacher compensation aid for a school district or an intermediate 
12.7 	school district with a plan approved under section 122A.414, subdivision 2b, equals the 
12.8 	alternative teacher compensation revenue under section 122A.415, subdivision 1. The 
12.9 	basic alternative teacher compensation aid for a charter school with an approved plan 
12.10 	under section 122A.414, subdivision 2b, equals $260 times the number of pupils enrolled 
12.11 	in the school on October 1 of the previous school year, or on October 1 of the current 
12.12 	fiscal year for a charter school in the first year of operation.
12.13 	(b)(a) For fiscal year 2007 and later, the basic alternative teacher compensation aid 
12.14 	for a school district with a plan approved under section 122A.414, subdivision 2b, equals 
12.15 	73.1 percent of the alternative teacher compensation revenue under section 122A.415, 
12.16 	subdivision 1. The basic alternative teacher compensation aid for an intermediate school 
12.17 	district or charter school with a plan approved under section 122A.414, subdivisions 2a 
12.18 	and 2b, if the recipient is a charter school, equals $260 times the number of pupils enrolled 
12.19 	in the school on October 1 of the previous fiscal year, or on October 1 of the current fiscal 
12.20 	year for a charter school in the first year of operation, times the ratio of the sum of the 
12.21 	alternative teacher compensation aid and alternative teacher compensation levy for all 
12.22 	participating school districts to the maximum alternative teacher compensation revenue 
12.23 	for those districts under section 122A.415, subdivision 1.
12.24 	(b) For fiscal year 2008 and later, the basic alternative teacher compensation aid for 
12.25 	a school district with a plan approved under section 122A.414, subdivision 2b, equals the 
12.26 	alternative teacher compensation revenue under section 122A.415, subdivision 1, minus 
12.27 	$70 times the number of pupils enrolled at participating sites on October 1 of the previous 
12.28 	fiscal year. The basic alternative teacher compensation aid for an intermediate school 
12.29 	district or charter school with a plan approved under section 122A.414, subdivisions 2a 
12.30 	and 2b, if the recipient is a charter school, equals $260 times the ratio of the formula 
12.31 	allowance for the current fiscal year to the formula allowance for fiscal year 2007 times 
12.32 	the number of pupils enrolled in the school on October 1 of the previous fiscal year, or on 
12.33 	October 1 of the current fiscal year for a charter school in the first year of operation, times 
12.34 	the ratio of the sum of the alternative teacher compensation aid and alternative teacher 
13.1 	compensation levy for all participating school districts to the maximum alternative teacher 
13.2 	compensation revenue for those districts under section 122A.415, subdivision 1.
13.3 	(c) Notwithstanding paragraphs (a) and (b) and section 122A.415, subdivision 1, 
13.4 	the state total basic alternative teacher compensation aid entitlement must not exceed 
13.5 	$19,329,000 for fiscal year 2006 and $75,636,000 for fiscal year 2007 and later. For 
13.6 	fiscal years 2008 and later, the state total basic alternative teacher compensation aid 
13.7 	entitlement must not exceed the product of the limit on state total basic alternative teacher 
13.8 	compensation aid for the previous fiscal year times 1.1 times the ratio of the formula 
13.9 	allowance for the current fiscal year to the formula allowance for the previous fiscal 
13.10 	year. The commissioner must limit the amount of alternative teacher compensation aid 
13.11 	approved under section 122A.415 so as not to exceed these limits.

13.12 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

13.13 	Sec. 21. Minnesota Statutes 2006, section 126C.21, subdivision 3, is amended to read:
13.14 		Subd. 3.County apportionment deduction. Each year the amount of money 
13.15 	apportioned to a district for that year pursuant to section sections127A.34, subdivision 2, 
13.16 	and 272.029, subdivision 6, must be deducted from the general education aid earned by 
13.17 	that district for the same year or from aid earned from other state sources. 

13.18 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2009.

13.19 	Sec. 22. Minnesota Statutes 2006, section 127A.47, subdivision 8, is amended to read:
13.20 		Subd. 8.Charter schools. (a) The general education aid for districts must be 
13.21 	adjusted for each pupil attending a charter school under section 124D.10. The adjustments 
13.22 	must be made according to this subdivision.
13.23 	(b) General education aid paid to a district in which a charter school not providing 
13.24 	transportation according to section 124D.10, subdivision 16, is located must be increased 
13.25 	by an amount equal to the sum of:
13.26 	(1) the product of: (i) the sum of an amount equal to the product of the formula 
13.27 	allowance according to section 126C.10, subdivision 2, times .0485 .0416, plus the 
13.28 	transportation sparsity allowance for the district; times (ii) the adjusted marginal cost 
13.29 	pupil units attributable to the pupil; plus
13.30 	(2) the product of $223 andfor fiscal year 2007, $195 for fiscal year 2008, and 
13.31 	$199 for fiscal year 2009 and later times the extended time marginal cost pupil units 
13.32 	attributable to the pupil.

13.33 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

14.1 	Sec. 23. Minnesota Statutes 2006, section 127A.49, subdivision 2, is amended to read:
14.2 		Subd. 2.Abatements. Whenever by virtue of chapter 278, sections 270C.86,
14.3 	section 375.192, or otherwise, the net tax capacity or referendum market value of any 
14.4 	district for any taxable year is changed after the taxes for that year have been spread by 
14.5 	the county auditor and the local tax rate as determined by the county auditor based upon 
14.6 	the original net tax capacity is applied upon the changed net tax capacities, the county 
14.7 	auditor shall, prior to February 1 of each year, certify to the commissioner of education the 
14.8 	amount of any resulting net revenue loss that accrued to the district during the preceding 
14.9 	year. Each year, the commissioner shall pay an abatement adjustment to the district in an 
14.10 	amount calculated according to the provisions of this subdivision. This amount shall be 
14.11 	deducted from the amount of the levy authorized by section 126C.46. The amount of the 
14.12 	abatement adjustment must be the product of:
14.13 	(1) the net revenue loss as certified by the county auditor, times
14.14 	(2) the ratio of:
14.15 	(i) the sum of the amounts of the district's certified levy in the third preceding year 
14.16 	according to the following:
14.17 	(A) section 123B.57, if the district received health and safety aid according to that 
14.18 	section for the second preceding year;
14.19 	(B) section 124D.20, if the district received aid for community education programs 
14.20 	according to that section for the second preceding year;
14.21 	(C) section 124D.135, subdivision 3, if the district received early childhood family 
14.22 	education aid according to section 124D.135 for the second preceding year; and
14.23 	(D) section 126C.17, subdivision 6, if the district received referendum equalization 
14.24 	aid according to that section for the second preceding year; 
14.25 	(E) section 126C.10, subdivision 13a, if the district received operating capital aid 
14.26 	according to section 126C.10, subdivision 13b, in the second preceding year;
14.27 	(F) section 126C.10, subdivision 29, if the district received equity aid according to 
14.28 	section 126C.10, subdivision 30, in the second preceding year;
14.29 	(G) section 126C.10, subdivision 32, if the district received transition aid according 
14.30 	to section 126C.10, subdivision 33, in the second preceding year;
14.31 	(H) section 123B.53, subdivision 5, if the district received debt service equalization 
14.32 	aid according to section 123B.53, subdivision 6, in the second preceding year;
14.33 	(I) section 124D.22, subdivision 3, if the district received school-age care aid 
14.34 	according to section 124D.22, subdivision 4, in the second preceding year;
14.35 	(J) section 123B.591, subdivision 3, if the district received deferred maintenance aid 
14.36 	according to section 123B.591, subdivision 4, in the second preceding year; and
15.1 	(K) section 126C.10, subdivision 35, if the district received alternative teacher 
15.2 	compensation equalization aid according to section 126C.10, subdivision 36, paragraph 
15.3 	(a), in the second preceding year; to
15.4 	(ii) the total amount of the district's certified levy in the third preceding December, 
15.5 	plus or minus auditor's adjustments.

15.6 	Sec. 24. Minnesota Statutes 2006, section 127A.49, subdivision 3, is amended to read:
15.7 		Subd. 3.Excess tax increment. (a) If a return of excess tax increment is made to a 
15.8 	district pursuant to sections 469.176, subdivision 2, and 469.177, subdivision 9, or upon 
15.9 	decertification of a tax increment district, the school district's aid and levy limitations 
15.10 	must be adjusted for the fiscal year in which the excess tax increment is paid under the 
15.11 	provisions of this subdivision.
15.12 	(b) An amount must be subtracted from the district's aid for the current fiscal year 
15.13 	equal to the product of:
15.14 	(1) the amount of the payment of excess tax increment to the district, times
15.15 	(2) the ratio of:
15.16 	(i) the sum of the amounts of the district's certified levy for the fiscal year in which 
15.17 	the excess tax increment is paid according to the following:
15.18 	(A) section 123B.57, if the district received health and safety aid according to that 
15.19 	section for the second preceding year;
15.20 	(B) section 124D.20, if the district received aid for community education programs 
15.21 	according to that section for the second preceding year;
15.22 	(C) section 124D.135, subdivision 3, if the district received early childhood family 
15.23 	education aid according to section 124D.135 for the second preceding year; and
15.24 	(D) section 126C.17, subdivision 6, if the district received referendum equalization 
15.25 	aid according to that section for the second preceding year; 
15.26 	(E) section 126C.10, subdivision 13a, if the district received operating capital aid 
15.27 	according to section 126C.10, subdivision 13b, in the second preceding year;
15.28 	(F) section 126C.10, subdivision 29, if the district received equity aid according to 
15.29 	section 126C.10, subdivision 30, in the second preceding year;
15.30 	(G) section 126C.10, subdivision 32, if the district received transition aid according 
15.31 	to section 126C.10, subdivision 33, in the second preceding year;
15.32 	(H) section 123B.53, subdivision 5, if the district received debt service equalization 
15.33 	aid according to section 123B.53, subdivision 6, in the second preceding year;
15.34 	(I) section 124D.22, subdivision 3, if the district received school-age care aid 
15.35 	according to section 124D.22, subdivision 4, in the second preceding year;
16.1 	(J) section 123B.591, subdivision 3, if the district received deferred maintenance aid 
16.2 	according to section 123B.591, subdivision 4, in the second preceding year; and
16.3 	(K) section 126C.10, subdivision 35, if the district received alternative teacher 
16.4 	compensation equalization aid according to section 126C.10, subdivision 36, paragraph 
16.5 	(a), in the second preceding year; to
16.6 	(ii) the total amount of the district's certified levy for the fiscal year, plus or minus 
16.7 	auditor's adjustments.
16.8 	(c) An amount must be subtracted from the school district's levy limitation for the 
16.9 	next levy certified equal to the difference between:
16.10 	(1) the amount of the distribution of excess increment; and
16.11 	(2) the amount subtracted from aid pursuant to clause (a).
16.12 	If the aid and levy reductions required by this subdivision cannot be made to the aid 
16.13 	for the fiscal year specified or to the levy specified, the reductions must be made from 
16.14 	aid for subsequent fiscal years, and from subsequent levies. The school district must use 
16.15 	the payment of excess tax increment to replace the aid and levy revenue reduced under 
16.16 	this subdivision.
16.17 	(d) This subdivision applies only to the total amount of excess increments received 
16.18 	by a district for a calendar year that exceeds $25,000.

16.19 	Sec. 25. Minnesota Statutes 2006, section 272.02, subdivision 64, is amended to read:
16.20 		Subd. 64.Job opportunity building zone property. (a) Improvements to real 
16.21 	property, and personal property, classified under section 273.13, subdivision 24, and 
16.22 	located within a job opportunity building zone, designated under section 469.314, are 
16.23 	exempt from ad valorem taxes levied under chapter 275.
16.24 	(b) Improvements to real property, and tangible personal property, of an agricultural 
16.25 	production facility located within an agricultural processing facility zone, designated 
16.26 	under section 469.314, is exempt from ad valorem taxes levied under chapter 275.
16.27 	(c) For property to qualify for exemption under paragraph (a), the occupant must be 
16.28 	a qualified business, as defined in section 469.310.
16.29 	(d) The exemption applies beginning for the first assessment year after designation 
16.30 	of the job opportunity building zone by the commissioner of employment and economic 
16.31 	development. The exemption applies to each assessment year that begins during the 
16.32 	duration of the job opportunity building zone. To be exempt, the property must be 
16.33 	occupied by July 1 of the assessment year by a qualified business that has signed the 
16.34 	business subsidy agreement and relocation agreement, if required, by July 1 of the 
16.35 	assessment year. This exemption does not apply to:
17.1 	(1) the levy under section 475.61 or similar levy provisions under any other law to 
17.2 	pay general obligation bonds; or.
17.3 	(2) a levy under section 126C.17, if the levy was approved by the voters before the 
17.4 	designation of the job opportunity building zone.

17.5 	EFFECTIVE DATE. This section is effective for taxes payable in 2008.

17.6 	Sec. 26. Minnesota Statutes 2006, section 272.029, is amended by adding a subdivision 
17.7 	to read:
17.8 		Subd. 6a.Report to commissioner of education. The county auditor, on the first 
17.9 	Wednesday after such settlement, shall report to the commissioner the amount distributed 
17.10 	to each school district under subdivision 6.

17.11 	EFFECTIVE DATE. This section is effective July 1, 2008, for settlements made 
17.12 	during fiscal year 2009.

17.13 	Sec. 27. Laws 2006, chapter 282, article 3, section 4, subdivision 2, is amended to read:
17.14 		Subd. 2.Onetime energy assistance aid. For onetime energy assistance aid under 
17.15 	section 3:

17.16
17.17		$
	3,495,000
	.....
	2007
 2006

17.18 	EFFECTIVE DATE. This section is effective the day following final enactment.

17.19 	Sec. 28. APPROPRIATIONS.
 17.20 		Subdivision 1.Department of Education. The sums indicated in this section are 
17.21 	appropriated from the general fund to the Department of Education for the fiscal years 
17.22 	designated.
17.23 		Subd. 2.General education aid. For general education aid under Minnesota 
17.24 	Statutes, section 126C.13, subdivision 4:

17.25		$
	5,593,263,000
	.....
	2008
	
17.26		$
	5,699,797,000
	.....
	2009
	
17.27 	The 2008 appropriation includes $531,494,000 for 2007 and $5,061,769,000 for 
17.28 	2008.
17.29 	The 2009 appropriation includes $543,274,000 for 2008 and $5,156,523,000 for 
17.30 	2009.
18.1 		Subd. 3.Referendum tax base replacement aid. For referendum tax base 
18.2 	replacement aid under Minnesota Statutes, section 126C.17, subdivision 7a:

18.3		$
	870,000
	.....
	2008
	
18.4 	The 2008 appropriation includes $870,000 for 2007 and $0 for 2008.
18.5 		Subd. 4.Enrollment options transportation. For transportation of pupils attending 
18.6 	postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation 
18.7 	of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

18.8		$
	88,000
	.....
	2008
	
18.9		$
	90,000
	.....
	2009
	
18.10 		Subd. 5.Abatement revenue. For abatement aid under Minnesota Statutes, section 
18.11 	127A.49:

18.12		$
	1,433,000
	.....
	2008
	
18.13		$
	1,489,000
	.....
	2009
	
18.14 	The 2008 appropriation includes $76,000 for 2007 and $1,357,000 for 2008.
18.15 	The 2009 appropriation includes $150,000 for 2008 and $1,339,000 for 2009.
18.16 		Subd. 6.Consolidation transition. For districts consolidating under Minnesota 
18.17 	Statutes, section 123A.485:

18.18		$
	565,000
	.....
	2008
	
18.19		$
	214,000
	.....
	2009
	
18.20 	The 2008 appropriation includes $43,000 for 2007 and $522,000 for 2008.
18.21 	The 2009 appropriation includes $58,000 for 2008 and $156,000 for 2009.
18.22 		Subd. 7.Nonpublic pupil education aid. For nonpublic pupil education aid under 
18.23 	Minnesota Statutes, sections 123B.87 and 123B.40 to 123B.43:

18.24		$
	16,524,000
	.....
	2008
	
18.25		$
	16,962,000
	.....
	2009
	
18.26 	The 2008 appropriation includes $1,608,000 for 2007 and $14,916,000 for 2008.
18.27 	The 2009 appropriation includes $1,656,000 for 2008 and $15,306,000 for 2009.
18.28 		Subd. 8.Nonpublic pupil transportation. For nonpublic pupil transportation aid 
18.29 	under Minnesota Statutes, section 123B.92, subdivision 9:

18.30		$
	20,804,000
	.....
	2008
	
18.31		$
	20,889,000
	.....
	2009
	
18.32 	The 2008 appropriation includes $2,053,000 for 2007 and $18,751,000 for 2008.
18.33 	The 2009 appropriation includes $2,082,000 for 2008 and $18,807,000 for 2009.
19.1 		Subd. 9.One-room schoolhouse. For a grant to Independent School District No. 
19.2 	690, Warroad, to operate the Angle Inlet School:

19.3		$
	50,000
	.....
	2008
	
19.4		$
	50,000
	.....
	2009
	
19.5 		Subd. 10.Compensatory revenue pilot project. For grants for participation in the 
19.6 	compensatory revenue pilot program under Laws 2005, First Special Session chapter 5, 
19.7 	article 1, section 50:

19.8		$
	2,100,000
	.....
	2008
	
19.9		$
	2,100,000
	.....
	2009
	
19.10 	Of this amount, $1,500,000 in each year is for a grant to Independent School District 
19.11 	No. 11, Anoka-Hennepin; $210,000 in each year is for a grant to Independent School 
19.12 	District No. 279, Osseo; $160,000 in each year is for a grant to Independent School 
19.13 	District No. 281, Robbinsdale; $165,000 in each year is for a grant to Independent School 
19.14 	District No. 535, Rochester; and $65,000 in each year is for a grant to Independent School 
19.15 	District No. 833, South Washington.
19.16 	If a grant to a specific school district is not awarded, the commissioner may increase 
19.17 	the aid amounts to any of the remaining participating school districts.
19.18 	This appropriation is part of the base budget for subsequent fiscal years.

19.19 	Sec. 29.  REPEALER.
 19.20 	Minnesota Statutes 2006, section 126C.10, subdivisions 25 and 28, are repealed 
19.21 	effective for fiscal year 2008 and thereafter.

19.22 	ARTICLE 2
19.23 	EDUCATION EXCELLENCE

19.24 	Section 1. Minnesota Statutes 2006, section 120B.021, subdivision 1, is amended to 
19.25 	read:
19.26 		Subdivision 1.Required academic standards. The following subject areas are 
19.27 	required for statewide accountability:
19.28 	(1) language arts;
19.29 	(2) mathematics;
19.30 	(3) science;
19.31 	(4) social studies, including history, geography, economics, and government and 
19.32 	citizenship;
20.1 	(5) health and physical education, for which locally developed academic standards 
20.2 	apply; and
20.3 	(6) the arts, for which statewide or locally developed academic standards apply, as 
20.4 	determined by the school district. so that:
20.5 	(i) public elementary and middle schools must offer at least three and require at least 
20.6 	two of the following four arts areas: dance; music; theater; and visual arts.; and
20.7 	(ii) public high schools must offer at least three and require at least one of the 
20.8 	following five arts areas: media arts; dance; music; theater; and visual arts.; and
20.9 	(7) a world language, for which locally developed academic standards apply.
20.10 	The commissioner must submit proposed standards in science and social studies to 
20.11 	the legislature by February 1, 2004.
20.12 	For purposes of applicable federal law, the academic standards for language arts, 
20.13 	mathematics, and science apply to all public school students, except the very few students 
20.14 	with extreme cognitive or physical impairments for whom an individualized education 
20.15 	plan team has determined that the required academic standards are inappropriate. 
20.16 	An individualized education plan team that makes this determination must establish 
20.17 	alternative standards.
20.18 	A school district, no later than the 2007-2008 school year, must adopt graduation 
20.19 	requirements that meet or exceed state graduation requirements established in law or 
20.20 	rule. A school district that incorporates these state graduation requirements before the 
20.21 	2007-2008 school year must provide students who enter the 9th grade in or before 
20.22 	the 2003-2004 school year the opportunity to earn a diploma based on existing locally 
20.23 	established graduation requirements in effect when the students entered the 9th grade. 
20.24 	District efforts to develop, implement, or improve instruction or curriculum as a result 
20.25 	of the provisions of this section must be consistent with sections 120B.10, 120B.11, 
20.26 	and 120B.20. 

20.27 	Sec. 2. Minnesota Statutes 2006, section 120B.022, subdivision 1, is amended to read:
20.28 		Subdivision 1.Elective standards. A district must establish its own standards in the 
20.29 	following subject areas:
20.30 	(1) vocational career and technical education; and
20.31 	(2) world languages standards.
20.32 	A school district must offer courses in all elective subject areas career and technical 
20.33 	education.

20.34 	Sec. 3. Minnesota Statutes 2006, section 120B.023, subdivision 2, is amended to read:
21.1 		Subd. 2.Revisions and reviews required. (a) The commissioner of education must 
21.2 	revise and appropriately embed technology and information literacy standards consistent 
21.3 	with recommendations from school media specialists into the state's academic standards 
21.4 	and graduation requirements and implement a review cycle for state academic standards 
21.5 	and related benchmarks, consistent with this subdivision. During each review cycle, the 
21.6 	commissioner also must examine the alignment of each required academic standard and 
21.7 	related benchmark with the knowledge and skills students need for college readiness and 
21.8 	advanced work in the particular subject area.
21.9 	(b) The commissioner in the 2006-2007 school year must revise and align the state's 
21.10 	academic standards and high school graduation requirements in mathematics to require 
21.11 	that students satisfactorily complete the revised mathematics standards, beginning in the 
21.12 	2010-2011 school year. Under the revised standards:
21.13 	(1) students must satisfactorily complete an algebra I credit by the end of eighth 
21.14 	grade; and
21.15 	(2) students scheduled to graduate in the 2014-2015 school year or later must 
21.16 	satisfactorily complete an algebra II credit or its equivalent.
21.17 	The commissioner also must ensure that the statewide mathematics assessments 
21.18 	administered to students in grades 3 through 8 and 11 beginning in the 2010-2011 
21.19 	school year are aligned with the state academic standards in mathematics. The statewide 
21.20 	11th grade mathematics test administered to students under clause (2) beginning in 
21.21 	the 2013-2014 school year must include algebra II test items that are aligned with 
21.22 	corresponding state academic standards in mathematics. The commissioner must 
21.23 	implement a review of the academic standards and related benchmarks in mathematics 
21.24 	beginning in the 2015-2016 school year.
21.25 	(c) The commissioner in the 2007-2008 school year must revise and align the state's 
21.26 	academic standards and high school graduation requirements in the arts to require that 
21.27 	students satisfactorily complete the revised arts standards beginning in the 2010-2011 
21.28 	school year. The commissioner must implement a review of the academic standards and 
21.29 	related benchmarks in arts beginning in the 2016-2017 school year.
21.30 	(d) The commissioner in the 2008-2009 school year must revise and align the state's 
21.31 	academic standards and high school graduation requirements in science to require that 
21.32 	students satisfactorily complete the revised science standards, beginning in the 2011-2012 
21.33 	school year. Under the revised standards, students scheduled to graduate in the 2014-2015 
21.34 	school year or later must satisfactorily complete a chemistry or physics credit. The 
21.35 	commissioner must implement a review of the academic standards and related benchmarks 
21.36 	in science beginning in the 2017-2018 school year.
22.1 	(e) The commissioner in the 2009-2010 school year must revise and align the state's 
22.2 	academic standards and high school graduation requirements in language arts to require 
22.3 	that students satisfactorily complete the revised language arts standards beginning in the 
22.4 	2012-2013 school year. The commissioner must implement a review of the academic 
22.5 	standards and related benchmarks in language arts beginning in the 2018-2019 school year.
22.6 	(f) The commissioner in the 2010-2011 school year must revise and align the state's 
22.7 	academic standards and high school graduation requirements in social studies to require 
22.8 	that students satisfactorily complete the revised social studies standards beginning in the 
22.9 	2013-2014 school year. The commissioner must implement a review of the academic 
22.10 	standards and related benchmarks in social studies beginning in the 2019-2020 school year.
22.11 	(g) School districts and charter schools must revise and align local academic 
22.12 	standards and high school graduation requirements in health, physical education, world 
22.13 	languages, and career and technical education to require students to complete the revised 
22.14 	standards beginning in a school year determined by the school district or charter school. 
22.15 	School districts and charter schools must formally establish a periodic review cycle for 
22.16 	the academic standards and related benchmarks in health, physical education, world 
22.17 	languages, and career and technical education.
22.18 	(h) Students who graduate in the 2014-2015 school year or later must satisfactorily 
22.19 	complete four credits of a world language between grades 7 through 12 as a graduation 
22.20 	requirement.

22.21 	Sec. 4. Minnesota Statutes 2006, section 120B.024, is amended to read:
22.22 	120B.024 GRADUATION REQUIREMENTS; COURSE CREDITS.
22.23 	(a) Students beginning 9th grade in the 2004-2005 school year and later must 
22.24 	successfully complete the following high school level course credits for graduation:
22.25 	(1) four credits of language arts;
22.26 	(2) three credits of mathematics, encompassing at least algebra, geometry, statistics, 
22.27 	and probability sufficient to satisfy the academic standard;
22.28 	(3) three credits of science, including at least one credit in biology;
22.29 	(4) three and one-half credits of social studies, encompassing at least United 
22.30 	States history, geography, government and citizenship, world history, and economics or 
22.31 	three credits of social studies encompassing at least United States history, geography, 
22.32 	government and citizenship, and world history, and one-half credit of economics taught in 
22.33 	a school's social studies, agriculture education, or business department;
22.34 	(5) one credit in the arts; and
22.35 	(6) a minimum of seven three elective course credits.
23.1 	A course credit is equivalent to a student successfully completing an academic 
23.2 	year of study or a student mastering the applicable subject matter, as determined by the 
23.3 	local school district.
23.4 	(b) An agriculture science course may fulfill a science credit requirement in addition 
23.5 	to the specified science credits in biology and chemistry or physics under paragraph (a), 
23.6 	clause (3).

23.7 	Sec. 5. [120B.0245] ENSURING ACADEMIC RIGOR AND POSTSECONDARY 
23.8 	COLLEGE AND CAREER OPPORTUNITIES.
23.9 		Subdivision 1.Dual credit course and program requirements. To learn effectively 
23.10 	without remediation in college and career preparation programs, public high school 
23.11 	students must complete one full school year of dual credit secondary and postsecondary 
23.12 	academic or career and technical courses or programs, consistent with section 120B.024, 
23.13 	as a condition of graduating from high school. To enable students to comply with this 
23.14 	requirement, and to acquire academic and work-ready knowledge and skills critical to 
23.15 	meeting college and workplace expectations, all public high schools must make available 
23.16 	dual-credit courses and programs that may include:
23.17 	(1) advanced placement courses or international baccalaureate programs under 
23.18 	section 120B.13;
23.19 	(2) postsecondary enrollment options courses and programs under section 124D.09;
23.20 	(3) concurrent enrollment courses under section 124D.09, subdivision 10, whether 
23.21 	or not the postsecondary institution grants postsecondary credit to high school students;
23.22 	(4) college in the schools courses under section 124D.09, subdivision 10;
23.23 	(5) college-level examination programs under section 120B.131;
23.24 	(6) work-based learning programs under sections 124D.4531, 124D.46, 124D.47, 
23.25 	or 124D.49; or
23.26 	(7) other relevant dual-credit course and program options that effectively prepare 
23.27 	students for postsecondary education and careers.
23.28 	School staff must continuously work with and support each student to strategically 
23.29 	plan and complete a core academic program and an academic or career and technical 
23.30 	concentration, consistent with this section and section 120B.024.
23.31 		Subd. 2.Expectations and opportunities for 3R high schools. (a) A high school 
23.32 	that applies to the commissioner to receive 3R high school aid under subdivision 3 must 
23.33 	use the funds the applicant receives to comply with the requirements of this subdivision.
23.34 	(b) A 3R high school must contract with a provider approved by the Department 
23.35 	of Education to implement a college access program that helps students, beginning in 
24.1 	grade 9, and their families determine students' interests in postsecondary education and 
24.2 	employment. The program also may provide:
24.3 	(1) college admission and financial aid counseling, mentoring, SAT and ACT test 
24.4 	preparation, tutoring, and career guidance; and
24.5 	(2) ongoing support to help students complete the academic requirements necessary 
24.6 	for college or for career and technical programs that lead to an associate's degree or a 
24.7 	certificate, without remediation.
24.8 	(c) A 3R high school must implement and review at least annually a personal 
24.9 	graduation plan for every student beginning no later than grade 9 that allows the student to:
24.10 	(1) explore career options, match careers with the student's identified interests 
24.11 	and skills, and, with sufficient school support, pursue college or postsecondary career 
24.12 	opportunities;
24.13 	(2) identify the student's academic and career goals and the academic, school 
24.14 	leadership and participation, community service, work, career planning, and 
24.15 	extracurricular activities that the student anticipates pursuing during high school; and
24.16 	(3) monitor the student's progress in completing the course credits the student needs 
24.17 	to graduate on time.
24.18 	The student, the student's parents, and the school staff annually must review and 
24.19 	revise the student's personal graduation plan and parents annually must sign the plan to 
24.20 	indicate their agreement with its content and their willingness to support their student and 
24.21 	the school in realizing the student's plan.
24.22 	(d) A 3R high school must provide effective professional development and training 
24.23 	programs that give teachers and the principal ongoing opportunities to observe exemplary 
24.24 	educators and gain practical on-the-job teaching or administrative experience, and ensure 
24.25 	that:
24.26 	(1) teachers have a sufficiently high level of knowledge and skills to teach their 
24.27 	subject areas effectively and help low-performing students succeed; and
24.28 	(2) the principal, or other person having administrative control of the school, is 
24.29 	sufficiently autonomous and successful to be able to continuously improve rates of student 
24.30 	achievement, student attendance, student graduation, and staff retention.
24.31 	A 3R high school is encouraged to enter into a school site decision-making 
24.32 	agreement under section 123B.04 to increase the school's autonomy and student 
24.33 	performance and to offer administrative opportunities to interested licensed teachers.
24.34 	(e) A 3R high school must provide its students with:
24.35 	(1) rigorous academic courses and challenging instruction;
24.36 	(2) relevant and accelerated learning opportunities;
25.1 	(3) critical academic and workplace skills;
25.2 	(4) performance expectations and formative assessments linked to postsecondary 
25.3 	readiness standards;
25.4 	(5) ongoing support for college and career readiness; and
25.5 	(6) opportunities to participate in online learning courses where appropriate.
25.6 	(f) A 3R high school must develop and implement a data system for school 
25.7 	improvement that uses formative and summative assessments to at least:
25.8 	(1) monitor student progress through established curriculum and against state and 
25.9 	local standards;
25.10 	(2) identify the needs and challenges of specific classes, grades, and demographic 
25.11 	groups of students;
25.12 	(3) provide instruction that meets students' identified needs;
25.13 	(4) identify exemplary faculty members to share instructional plans and strategies 
25.14 	that may help support individual teachers;
25.15 	(5) analyze disaggregated student assessment data for purposes of making 
25.16 	comparisons, planning instruction, and monitoring student progress;
25.17 	(6) determine whether or not the students are completing the course credit 
25.18 	requirements they need to graduate on time; and 
25.19 	(7) develop goals and benchmarks for school improvement planning.
25.20 	(g) A 3R high school must use student progress data to identify those students who 
25.21 	are not completing the course credit requirements they need to graduate on time, and 
25.22 	provide the educational support to enable those students to graduate on time.
25.23 		Subd. 3.3R high school aid. (a) A 3R high school aid program is established to 
25.24 	help public high schools meet expectations and realize opportunities for world-class, 21st 
25.25 	century high schools, consistent with subdivisions 1 and 2.
25.26 	(b) Interested public high schools must submit an application to the commissioner, 
25.27 	in the form and manner the commissioner determines, that demonstrates the applicanta??s 
25.28 	ability to meet the requirements of this section. A high school that does not enroll students 
25.29 	in grade 9 may submit a joint application with one or more junior high schools located 
25.30 	in the high school attendance area. The commissioner must approve or disapprove the 
25.31 	application based on the requirements under subdivision 2.
25.32 	(c) For fiscal year 2008, the 3R high school aid for a school district, intermediate 
25.33 	school district, charter school, or cooperative equals the product of $68 times the number 
25.34 	of pupils in grades 9 through 12 enrolled on October 1 of the previous school year in 
25.35 	schools with an approved application under paragraph (b). For fiscal years 2009 and 
25.36 	later, the 3R high school aid for a school district, intermediate school district, charter 
26.1 	school, or cooperative equals the product of $200 times the number of pupils in grades 9 
26.2 	through 12 enrolled on October 1 of the previous school year in schools with an approved 
26.3 	application under paragraph (b).
26.4 	(d) Notwithstanding paragraph (c), the aid for an eligible charter school in its first 
26.5 	year of operation must be computed using the number of pupils in grades 9 through 12 
26.6 	enrolled on October 1 of the current school year in a school with an approved application 
26.7 	under paragraph (b).
26.8 	(e) Aid recipients must periodically report to the commissioner on their efforts 
26.9 	under this section.

26.10 	EFFECTIVE DATE. This section is effective for the 2007-2008 school year and 
26.11 	later.

26.12 	Sec. 6. Minnesota Statutes 2006, section 120B.132, is amended to read:
26.13 	120B.132 RAISED ACADEMIC ACHIEVEMENT; ADVANCED 
26.14 	PLACEMENT PROGRAMS.
26.15 		Subdivision 1.Establishment; eligibility. A program is established to raise 
26.16 	kindergarten through grade 12 academic achievement through increased student 
26.17 	participation in preadvanced placement and, advanced placement, and international 
26.18 	baccalaureate programs, consistent with section 120B.13. Schools and charter schools 
26.19 	eligible to participate under this section: 
26.20 	(1) must have a three-year plan approved by the local school board to create
26.21 	establish a new international baccalaureate program leading to international baccalaureate 
26.22 	authorization, or expand an existing program that leads to international baccalaureate 
26.23 	authorization, or expand an existing authorized international baccalaureate program; or
26.24 	(2) must have a three-year plan approved by the local school board to create a new or 
26.25 	expand an existing program to implement the college board advanced placement courses 
26.26 	and exams or preadvanced placement courses initiative; and 
26.27 	(2) (3) also must propose to further raise students' academic achievement by: 
26.28 	(i) increasing the availability of and all students' access to advanced placement or 
26.29 	international baccalaureate courses or programs; 
26.30 	(ii) expanding the breadth of advanced placement or international baccalaureate
26.31 	courses or programs that are available to students; 
26.32 	(iii) increasing the number and the diversity of the students who participate in 
26.33 	advanced placement or international baccalaureate courses or programs and succeed; 
27.1 	(iv) providing low-income and other disadvantaged students with increased access 
27.2 	to advanced placement or international baccalaureate courses and or programs; or 
27.3 	(v) increasing the number of high school students, including low-income and other 
27.4 	disadvantaged students, who receive college credit by successfully completing advanced 
27.5 	placement or international baccalaureate courses or programs and achieving satisfactory 
27.6 	scores on related exams.
27.7 		Subd. 2.Application and review process; funding priority. (a) Charter schools 
27.8 	and school districts in which eligible schools under subdivision 1 are located may 
27.9 	apply to the commissioner, in the form and manner the commissioner determines, for 
27.10 	competitive funding to further raise students' academic achievement. The application must 
27.11 	detail the specific efforts the applicant intends to undertake in further raising students' 
27.12 	academic achievement, consistent with subdivision 1, and a proposed budget detailing 
27.13 	the district or charter school's current and proposed expenditures for advanced placement 
27.14 	or, preadvanced placement, and international baccalaureate courses and programs. 
27.15 	The proposed budget must demonstrate that the applicant's efforts will supplement 
27.16 	but not supplant any expenditures forsupport implementation of advanced placement 
27.17 	and, preadvanced placement, and international baccalaureate courses and programs the 
27.18 	applicant currently makes available to students. Expenditures for administration must not 
27.19 	exceed five percent of the proposed budget. The commissioner may require an applicant 
27.20 	to provide additional information.
27.21 	(b) When reviewing applications, the commissioner must determine whether 
27.22 	the applicant satisfied all the requirements in this subdivision and subdivision 1. 
27.23 	The commissioner may give funding priority to an otherwise qualified applicant that 
27.24 	demonstrates:
27.25 	(1) a focus on developing or expanding advanced placement or international 
27.26 	baccalaureate courses and or programs or increasing students' participation in, access to, 
27.27 	or success with the courses or programs, including the participation, access, or success of 
27.28 	low-income and other disadvantaged students;
27.29 	(2) a compelling need for access to advanced placement or international 
27.30 	baccalaureate courses or programs;
27.31 	(3) an effective ability to actively involve local business and community 
27.32 	organizations in student activities that are integral to advanced placement or international 
27.33 	baccalaureate courses and or programs; 
27.34 	(4) access to additional public or nonpublic funds or in-kind contributions that are 
27.35 	available for advanced placement programs or international baccalaureate courses or 
27.36 	programs; or
28.1 	(5) an intent to implement activities that target low-income and other disadvantaged 
28.2 	students.
28.3 		Subd. 3.Funding; permissible funding uses. (a) The commissioner shall award 
28.4 	grants to applicant school districts and charter schools that meet the requirements of 
28.5 	subdivisions 1 and 2. The commissioner must award grants on an equitable geographical 
28.6 	basis to the extent feasible and consistent with this section. Grant awards must not exceed 
28.7 	the lesser of:
28.8 	(1) $85 times the number of pupils enrolled at the participating sites on October 
28.9 	1 of the previous fiscal year; or
28.10 	(2) the approved supplemental expenditures based on the budget submitted under 
28.11 	subdivision 2. For charter schools in their first year of operation, the maximum grant 
28.12 	award must be calculated using the number of pupils enrolled on October 1 of the current 
28.13 	fiscal year. The commissioner may adjust the maximum grant award computed using prior 
28.14 	year data for changes in enrollment attributable to school closings, school openings, 
28.15 	grade level reconfigurations, or school district reorganizations between the prior fiscal 
28.16 	year and the current fiscal year.
28.17 	(b) School districts and charter schools that submit an application and receive 
28.18 	funding under this section must use the funding, consistent with the application, to:
28.19 	(1) provide teacher training and instruction to more effectively serve students, 
28.20 	including low-income and other disadvantaged students, who participate in preadvanced 
28.21 	and, advanced placement, or international baccalaureate courses or programs;
28.22 	(2) further develop advanced placement or international baccalaureate courses or 
28.23 	programs;
28.24 	(3) improve the transition between grade levels to better prepare students, including 
28.25 	low-income and other disadvantaged students, for succeeding in advanced placement or 
28.26 	international baccalaureate courses or programs;
28.27 	(4) purchase books and supplies;
28.28 	(5) pay course or program fees;
28.29 	(6) increase students' participation in and success with advanced placement or 
28.30 	international baccalaureate courses or programs;
28.31 	(7) expand students' access to preadvanced placement or, advanced placement, or 
28.32 	international baccalaureate courses or programs through online learning;
28.33 	(8) hire appropriately licensed personnel to teach additional advanced placement or 
28.34 	international baccalaureate courses or programs; or
28.35 	(9) engage in other activity directly related to expanding students' access to, 
28.36 	participation in, and success with preadvanced placement or, advanced placement, or 
29.1 	international baccalaureate courses and or programs, including low-income and other 
29.2 	disadvantaged students.
29.3 		Subd. 4.Annual reports. (a) Each school district and charter school that receives 
29.4 	a grant under this section annually must collect demographic and other student data to 
29.5 	demonstrate and measure the extent to which the district or charter school raised students' 
29.6 	academic achievement under this program and must report the data to the commissioner 
29.7 	in the form and manner the commissioner determines. The commissioner annually by 
29.8 	February 15 must make summary data about this program available to the education 
29.9 	policy and finance committees of the legislature.
29.10 	(b) Each school district and charter school that receives a grant under this section 
29.11 	annually must report to the commissioner, consistent with the Uniform Financial 
29.12 	Accounting and Reporting Standards, its actual expenditures for advanced placement and,
29.13 	preadvanced placement, and international baccalaureate courses and programs. The report 
29.14 	must demonstrate that the school district or charter school has maintained its effort from 
29.15 	other sources for advanced placement and, preadvanced placement, and international 
29.16 	baccalaureate courses and programs compared with the previous fiscal year, and the 
29.17 	district or charter school has expended all grant funds, consistent with its approved budget.

29.18 	EFFECTIVE DATE. This section is effective the day following final enactment 
29.19 	and applies to the 2007-2008 school year and later.

29.20 	Sec. 7. [122A.623] INDUCTION PROGRAM FOR NEW TEACHERS.
29.21 		Subdivision 1.Program established. (a) A new teacher induction program is 
29.22 	established to assist newly licensed elementary and secondary teachers whose initial 
29.23 	teaching assignment involves teaching in a high-need subject area or public school. For 
29.24 	purposes of this section, a "high-need subject area" for teacher licensure includes career 
29.25 	and technical education, science, mathematics, foreign languages, English as a second 
29.26 	language, and special education; and a "high-need" school is one where 35 percent or 
29.27 	more of enrolled students are eligible to receive a free or reduced price lunch and the 
29.28 	school failed to demonstrate adequate yearly progress in the two preceding school years.
29.29 	(b) Regional education service providers participating in this program must assist 
29.30 	school districts and charter schools employing new teachers, school sites where new 
29.31 	teachers work, and interested intermediate school districts to:
29.32 	(1) adopt a teaching model that supports new teachers' professional development 
29.33 	and growth and trains teacher mentors to successfully work with, coach, and observe the 
29.34 	new teachers;
30.1 	(2) provide unique professional learning activities that promote the growth of a new 
30.2 	teacher's practice in areas including classroom management, subject matter mastery, 
30.3 	pedagogy, relevant curriculum, effective instructional strategies, lesson planning, and 
30.4 	student assessments;
30.5 	(3) provide time for new teachers and mentors to work together;
30.6 	(4) establish expectations for mentors' coaching responsibilities and new teachers' 
30.7 	observations of exemplary teachers;
30.8 	(5) provide and use formative assessments based on professional teaching standards 
30.9 	to improve new teachers' instructional practice, and establish professional development 
30.10 	goals;
30.11 	(6) evaluate the program to determine its effectiveness and impact on new teacher 
30.12 	performance, recruitment, and retention;
30.13 	(7) adopt a model to deliver the new teacher induction program.
30.14 		Subd. 2.Eligibility; application; program funding. (a) Regional education service 
30.15 	providers, including education service cooperatives, school districts, postsecondary 
30.16 	institutions, charter schools, and other qualified education entities able to assist school 
30.17 	districts, charter schools, school sites, and intermediate school districts in supporting 
30.18 	newly licensed teachers, consistent with subdivision 1, may apply to the commissioner, 
30.19 	in the form and manner the commissioner prescribes, to participate in this program. 
30.20 	Applicants must demonstrate to the commissioner's satisfaction that the applicant is able 
30.21 	to meet the requirements of subdivision 1 and also must describe in the application:
30.22 	(1) the roles and relationship among participating school districts, charter schools, 
30.23 	school sites, and intermediate school districts and the regional education service provider;
30.24 	(2) the program components for each participant;
30.25 	(3) the applicant's program components;
30.26 	(4) how the applicant proposes to expend new teacher induction revenue; and
30.27 	(5) the actual program costs the applicant anticipates incurring.
30.28 	(b) In reviewing timely plans submitted to the commissioner, only those applicants 
30.29 	the commissioner determines have satisfied all requirements of this subdivision and 
30.30 	subdivision 1 are eligible for program funding.
30.31 	(c) The commissioner must approve funding for the new teacher induction program 
30.32 	on a first-come, first-served basis and must determine the amount of funding available to a 
30.33 	qualified regional education service provider based on actual program costs detailed in 
30.34 	the provider's application.
31.1 		Subd. 3.Planning; staff development revenue. Staff development revenue 
31.2 	available under sections 122A.60 and 122A.61 may be used to develop the program 
31.3 	plan under this section.
31.4 		Subd. 4.Reports. Regional education service providers that participate in the 
31.5 	program annually must report to the commissioner in the form and manner determined 
31.6 	by the commissioner on the implementation and effectiveness of the provider's program 
31.7 	and plan. Regional education service providers must survey participating school districts, 
31.8 	charter schools, school sites, and intermediate school districts as part of the report. The 
31.9 	commissioner must complete a timely review of the report to determine the providers' 
31.10 	ongoing eligibility to receive new teacher induction program funding.
31.11 		Subd. 5.Statewide training and assistance. The Department of Education, upon 
31.12 	request, may assist regional education service providers in developing a program plan. 
31.13 	The department also may provide regional education service providers with ongoing 
31.14 	support for teacher mentor training and staff development for new teachers, and may 
31.15 	provide materials and other assistance.

31.16 	EFFECTIVE DATE. This section is effective for the 2007-2008 school year and 
31.17 	later.

31.18 	Sec. 8. Minnesota Statutes 2006, section 122A.72, subdivision 5, is amended to read:
31.19 		Subd. 5.Center functions. (a) A teacher center shall perform functions according 
31.20 	to this subdivision. The center shall assist teachers, diagnose learning needs, experiment 
31.21 	with the use of multiple instructional approaches, assess pupil outcomes, assess staff 
31.22 	development needs and plans, and teach school personnel about effective pedagogical 
31.23 	approaches. The center shall develop and produce curricula and curricular materials 
31.24 	designed to meet the educational needs of pupils being served, by applying educational 
31.25 	research and new and improved methods, practices, and techniques. The center shall 
31.26 	provide programs to improve the skills of teachers to meet the special educational needs of 
31.27 	pupils. The center shall provide programs to familiarize teachers with developments in 
31.28 	curriculum formulation and educational research, including how research can be used to 
31.29 	improve teaching skills. The center shall facilitate sharing of resources, ideas, methods, 
31.30 	and approaches directly related to classroom instruction and improve teachers' familiarity 
31.31 	with current teaching materials and products for use in their classrooms. The center shall 
31.32 	provide in-service programs.
31.33 	(b) Each teacher center must provide a professional development program to train 
31.34 	interested and highly qualified elementary, middle, and secondary school teachers, selected 
32.1 	by the employing school district, to assist other teachers in that district with mathematics 
32.2 	and science curriculum, standards, and instruction so that all teachers have access to:
32.3 	(1) high-quality professional development programs in mathematics and science 
32.4 	that address curriculum, instructional methods, alignment of standards, and performance 
32.5 	measurements, enhance teacher and student learning, and support state mathematics and 
32.6 	science standards; and
32.7 	(2) mathematics and science programs and instructional models that inspire teachers 
32.8 	and students and have practical classroom application.

32.9 	Sec. 9. Minnesota Statutes 2006, section 124D.42, subdivision 6, is amended to read:
32.10 		Subd. 6.Program training. The commission must, within available resources:
32.11 	(1) orient each grantee organization in the nature, philosophy, and purpose of the 
32.12 	program; and
32.13 	(2) build an ethic of community service through general community service training; 
32.14 	and
32.15 	(3) provide additional training as it determines necessary, which may include 
32.16 	training in evaluating early literacy skills and teaching reading to preschool children 
32.17 	through the St. Croix River Education District under Laws 2001, First Special Session 
32.18 	chapter 6, article 2, section 70, to assist local Head Start organizations in establishing and 
32.19 	evaluating Head Start programs for developing children's early literacy skills.

32.20 	Sec. 10. Minnesota Statutes 2006, section 124D.42, is amended by adding a 
32.21 	subdivision to read:
32.22 		Subd. 8.The Minnesota reading corps program. (a) The Minnesota reading corps 
32.23 	program is established to provide training in a data-based problem-solving model of 
32.24 	literacy instruction to Americorps members working with local Head Start organizations, 
32.25 	other prekindergarten settings, and kindergarten through grade 3 schools to evaluate and 
32.26 	teach early literacy skills to children ages 3 to grade 3.
32.27 	(1) Data collected will be used to tailor specific interventions for children.
32.28 	(2) These interventions shall be guided by formative and summative general 
32.29 	outcome assessments linked to research-based indicators of literacy development.
32.30 	(3) The assessments will guide the implementation of coaching models for 
32.31 	AmeriCorps members and staff that is designed to develop internal literacy coaches that 
32.32 	sustain the model over time.
32.33 	(b) The Minnesota Commission on National and Community Service shall give 
32.34 	priority for allocating AmeriCorps members to partnerships of prekindergarten and 
33.1 	kindergarten through grade 3 schools that have agreed to a goal of closing the literacy 
33.2 	achievement gap by the end of grade 3 by implementing a seamless literacy model from 
33.3 	age 3 to grade 3 in the partnership agencies.
33.4 	(1) The commission shall collect literacy data on children across this age range for 
33.5 	the purpose of documenting the impact of the age 3 to grade 3 model on closing the 
33.6 	literacy achievement gap.
33.7 	(2) The commission shall be required to submit an annual report to the commissioner 
33.8 	of education by January 1.

33.9 	Sec. 11. ALTERNATIVE SCHOOL CALENDAR PILOT PROGRAM.
 33.10 		Subdivision 1.Establishment. Notwithstanding Minnesota Statutes, sections 
33.11 	120A.41, 120A.415, or other law to the contrary, a six-year alternative school calendar 
33.12 	pilot program is established to examine the impact of school calendar arrangements on 
33.13 	student learning by comparing studentsa?? academic gains in school districts and charter 
33.14 	schools that use traditional and nontraditional school calendars. The commissioner of 
33.15 	education must structure the program and select program participants with the purpose of 
33.16 	comparing the impact of traditional and nontraditional school calendars on:
33.17 	(1) the amount of educational material students retain after school vacations;
33.18 	(2) the educational enrichment opportunities and remedial help available to students 
33.19 	throughout the school year;
33.20 	(3) the impact of the calendar on student attendance, student disciplinary actions, 
33.21 	and student achievement test scores; and
33.22 	(4) the amount of time available to students and school staff for out-of-school 
33.23 	learning, vacations, and recreation.
33.24 		Subd. 2.Eligibility; application. An interested school district, charter school, or 
33.25 	group of school districts or charter schools that participate for a particular purpose may 
33.26 	apply to the commissioner of education to participate in this pilot program in the form 
33.27 	and manner the commissioner determines. An applicant must identify in its application 
33.28 	the internal and external factors that it anticipates may determine its preference for a 
33.29 	traditional or nontraditional school calendar, including the impact of the school calendar 
33.30 	on: costs related to employee compensation, transportation, food, facility use throughout 
33.31 	the calendar year, and facility maintenance; needs of at-risk students; number of 
33.32 	instructional and staff development days; and the availability of extracurricular activities, 
33.33 	community resources, and before and after-school care and child care. The commissioner 
33.34 	may require an applicant to provide additional information. 
34.1 		Subd. 3.Application review; grant awards. When reviewing an application, the 
34.2 	commissioner must determine whether the applicant met the requirements in subdivisions 
34.3 	1 and 2 and only an applicant that satisfies all the requirements is eligible to receive a grant 
34.4 	under this section. The commissioner must distribute grant awards, to the extent feasible, 
34.5 	on an equitable geographical basis. The commissioner must base the amount of the grant 
34.6 	award on the number of students the grantee has enrolled in school and the length and 
34.7 	structure of the granteea??s school calendar. Grant expenditures must be consistent with 
34.8 	budget information the grantee periodically submits to the commissioner.
34.9 		Subd. 4.Evaluation. The commissioner must provide for an evaluation of the 
34.10 	impact of school calendar arrangements on student learning, consistent with this section, 
34.11 	and recommend to the education policy and finance committees of the legislature 
34.12 	by February 1, 2015, a preferred school calendar based upon demonstrated student 
34.13 	achievement and the criteria listed in subdivision 1.

34.14 	EFFECTIVE DATE. This section is effective the day following final enactment 
34.15 	and applies to the 2008-2009 through 2013-2014 school years. 

34.16 	Sec. 12. MANDARIN CHINESE PROGRAM GRANTS.
 34.17 	(a) A pilot program for fiscal years 2008 and 2009 is established to assist interested 
34.18 	school districts or charter schools in initiating Mandarin Chinese programs or enhancing 
34.19 	successful models in place. The commissioner shall select program participants to include 
34.20 	both instate and outstate school districts or charter schools equitably to the extent possible.
34.21 	 (b) An interested school district, charter school, or group of school districts or 
34.22 	charter schools may apply to the commissioner of education in the form and manner the 
34.23 	commissioner determines. Eligible applicants must identify in their applications program 
34.24 	model: description of capacity for offering programs, including staffing; articulation 
34.25 	plan as needed based on program model; steps for the development of benchmarks and 
34.26 	the assessment of language proficiency; evidence of necessary target student population 
34.27 	that aligns with proposed program model; evidence of community and staff support; 
34.28 	plan for sustainability beyond the period of start-up funding; and the ability to provide 
34.29 	matching funds.
34.30 	(c) When reviewing applications, the commissioner shall determine whether 
34.31 	applicants meet the requirements in paragraphs (a) and (b). Grants shall be provided 
34.32 	to applicants that satisfy all the requirements to assist in initiating Mandarin Chinese 
34.33 	programs or enhancing successful models in place. The commissioner may award up to 
34.34 	25 grants and shall distribute the grant awards to instate and outstate school districts or 
34.35 	charter schools equitably to the extent possible.
35.1 	(d) The commissioner shall provide for an evaluation of the impact of each Mandarin 
35.2 	Chinese program biannually.

35.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

35.4 	Sec. 13. SUCCESSFUL SCHOOLS AID.
 35.5 		Subdivision 1.Eligibility. A school is eligible for successful schools aid if the 
35.6 	school earned at least three stars in reading or mathematics on its school performance 
35.7 	report card for the previous school year or if all pupils enrolled at the school are in 
35.8 	prekindergarten through grade 2.
35.9 		Subd. 2.Successful schools allowance. For fiscal years 2008 and 2009 only, the 
35.10 	successful schools allowance equals $75,000,000 divided by the number of pupils enrolled 
35.11 	in eligible schools on October 1 of the previous school year. However, the successful 
35.12 	schools allowance must be at least $90 and must not exceed $150.
35.13 		Subd. 3.Aid. For fiscal years 2008 and 2009 only, the successful schools aid for a 
35.14 	school district, intermediate school district, charter school, cooperative, or the Perpich 
35.15 	Center for Arts Education equals the product of the successful schools allowance times the 
35.16 	number of pupils enrolled in eligible schools on October 1 of the previous school year.
35.17 		Subd. 4.Uses. The aid must be allocated to the school building where the pupils who 
35.18 	generated the revenue are served. The aid may be used for any purpose for which general 
35.19 	education revenue under section 126C.10 may be used, except permanent salary increases.

35.20 	Sec. 14. APPROPRIATIONS.
 35.21 		Subdivision 1.Department. The sums indicated in this section are appropriated 
35.22 	from the general fund to the Department of Education for the fiscal years designated.
35.23 		Subd. 2.Charter school building lease aid. For building lease aid under Minnesota 
35.24 	Statutes, section 124D.11, subdivision 4: 

35.25		$
	31,915,000
	.....
	2008
	
35.26		$
	36,270,000
	.....
	2009
	
35.27 	The 2008 appropriation includes $2,815,000 for 2007 and $29,100,000 for 2008.
35.28 	The 2009 appropriation includes $3,233,000 for 2008 and $33,037,000 for 2009.
35.29 		Subd. 3.Charter school startup aid. For charter school startup cost aid under 
35.30 	Minnesota Statutes, section 124D.11:

35.31		$
	1,888,000
	.....
	2008
	
35.32		$
	2,161,000
	.....
	2009
	
36.1 	The 2008 appropriation includes $238,000 for 2007 and $1,650,000 for 2008.
36.2 	The 2009 appropriation includes $183,000 for 2008 and $1,978,000 for 2009.
36.3 		Subd. 4.Integration aid. For integration aid under Minnesota Statutes, section 
36.4 	124D.86, subdivision 5:

36.5		$
	61,941,000
	.....
	2008
	
36.6		$
	61,654,000
	.....
	2009
	
36.7 	The 2008 appropriation includes $5,810,000 for 2007 and $56,131,000 for 2008.
36.8 	The 2009 appropriation includes $6,236,000 for 2008 and $55,418,000 for 2009.
36.9 		Subd. 5.Magnet school grants. For magnet school and program grants:

36.10		$
	750,000
	.....
	2008
	
36.11		$
	750,000
	.....
	2009
	
36.12 	These amounts may be used for magnet school programs under Minnesota Statutes, 
36.13 	section 124D.88.
36.14 		Subd. 6.Interdistrict desegregation or integration transportation grants. For 
36.15 	interdistrict desegregation or integration transportation grants under Minnesota Statutes, 
36.16 	section 124D.87:

36.17		$
	8,976,000
	.....
	2008
	
36.18		$
	10,771,000
	.....
	2009
	
36.19 		Subd. 7.Success for the future. For American Indian success for the future grants 
36.20 	under Minnesota Statutes, section 124D.81:

36.21		$
	2,137,000
	.....
	2008
	
36.22		$
	2,137,000
	.....
	2009
	
36.23 	The 2008 appropriation includes $213,000 for 2007 and $1,924,000 for 2008.
36.24 	The 2009 appropriation includes $213,000 for 2008 and $1,924,000 for 2009.
36.25 		Subd. 8.American Indian scholarships. For American Indian scholarships under 
36.26 	Minnesota Statutes, section 124D.84:

36.27		$
	1,875,000
	.....
	2008
	
36.28		$
	1,875,000
	.....
	2009
	
36.29 		Subd. 9.American Indian teacher preparation grants. For joint grants to assist 
36.30 	American Indian people to become teachers under Minnesota Statutes, section 122A.63:

36.31		$
	190,000
	.....
	2008
	
36.32		$
	190,000
	.....
	2009
	
37.1 		Subd. 10.Tribal contract schools. For tribal contract school aid under Minnesota 
37.2 	Statutes, section 124D.83:

37.3		$
	2,231,000
	.....
	2008
	
37.4		$
	2,428,000
	.....
	2009
	
37.5 	The 2008 appropriation includes $203,000 for 2007 and $2,028,000 for 2008.
37.6 	The 2009 appropriation includes $224,000 for 2008 and $2,204,000 for 2009.
37.7 		Subd. 11.Early childhood programs at tribal schools. For early childhood 
37.8 	family education programs at tribal contract schools under Minnesota Statutes, section 
37.9 	124D.83, subdivision 4:

37.10		$
	68,000
	.....
	2008
	
37.11		$
	68,000
	.....
	2009
	
37.12 		Subd. 12.Statewide testing and reporting system. For the statewide testing and 
37.13 	reporting system under Minnesota Statutes, section 120B.30:

37.14		$
	15,373,000
	.....
	2008
	
37.15		$
	19,874,000
	.....
	2009
	
37.16 	$11,883,000 in fiscal year 2008 and $15,214,000 in fiscal year 2009 are to continue 
37.17 	the general administration and reporting of the statewide testing program.
37.18 	$1,150,000 each year is for the value-added index assessment model.
37.19 	$2,340,000 in fiscal year 2008 and $3,510,000 in fiscal year 2009 are to implement a 
37.20 	computer-based formative assessment component.
37.21 	Any balance in the first year does not cancel but is available in the second year.
37.22 	The base for this program in fiscal year 2010 and later is $21,263,000.
37.23 		Subd. 13.Examination fees; teacher training and support programs. (a) For 
37.24 	students' advanced placement and international baccalaureate examination fees under 
37.25 	Minnesota Statutes, section 120B.13, subdivision 3, and the training and related costs 
37.26 	for teachers and other interested educators under Minnesota Statutes, section 120B.13, 
37.27 	subdivision 1:

37.28		$
	4,500,000
	.....
	2008
	
37.29		$
	4,500,000
	.....
	2009
	
37.30 	(b) The advanced placement program shall receive 75 percent of the appropriation 
37.31 	each year and the international baccalaureate program shall receive 25 percent of the 
37.32 	appropriation each year. The department, in consultation with representatives of the 
37.33 	advanced placement and international baccalaureate programs selected by the Advanced 
37.34 	Placement Advisory Council and IBMN, respectively, shall determine the amounts of 
38.1 	the expenditures each year for examination fees and training and support programs for 
38.2 	each program.
38.3 	(c) Notwithstanding Minnesota Statutes, section 120B.13, subdivision 1, at least 
38.4 	$500,000 each year is for teachers to attend subject matter summer training programs 
38.5 	and follow-up support workshops approved by the advanced placement or international 
38.6 	baccalaureate programs. The amount of the subsidy for each teacher attending an 
38.7 	advanced placement or international baccalaureate summer training program or workshop 
38.8 	shall be the same. The commissioner shall determine the payment process and the amount 
38.9 	of the subsidy.
38.10 	(d) The commissioner shall pay all examination fees for all students of low-income 
38.11 	families under Minnesota Statutes, section 120B.13, subdivision 3, and to the extent 
38.12 	of available appropriations shall also pay examination fees for students sitting for an 
38.13 	advanced placement examination, international baccalaureate examination, or both.
38.14 	Any balance in the first year does not cancel but is available in the second year.
38.15 		Subd. 14.Advanced placement and international baccalaureate programs. For 
38.16 	advanced placement, preadvanced placement, and international baccalaureate programs 
38.17 	under Minnesota Statutes, section 120B.132:

38.18		$
	7,300,000
	.....
	2008
	
38.19		$
	8,111,000
	.....
	2009
	
38.20 	The 2008 appropriation includes $7,300,000 for fiscal year 2008. The 2009 
38.21 	appropriation includes $811,000 for fiscal year 2008 and $7,300,000 for fiscal year 2009.
38.22 		Subd. 15.First grade preparedness. For first grade preparedness grants under 
38.23 	Minnesota Statutes, section 124D.081:

38.24		$
	7,250,000
	.....
	2008
	
38.25		$
	7,250,000
	.....
	2009
	
38.26 		Subd. 16.Collaborative urban educator. For collaborative urban educator grants 
38.27 	under section 122A.641:

38.28		$
	1,301,000
	.....
	2008
	
38.29		$
	1,301,000
	.....
	2009
	
38.30 	Any balance in the first year does not cancel but is available in the second year.
38.31 		Subd. 17.Youth works program. For funding youth works programs under 
38.32 	Minnesota Statutes, sections 124D.37 to 124D.45:

38.33		$
	900,000
	.....
	2008
	
38.34		$
	900,000
	.....
	2009
	
39.1 	A grantee organization may provide health and child care coverage to the dependents 
39.2 	of each participant enrolled in a full-time youth works program to the extent such coverage 
39.3 	is not otherwise available.
39.4 		Subd. 18.Student organizations. For student organizations:

39.5		$
	725,000
	.....
	2008
	
39.6		$
	725,000
	.....
	2009
	
39.7 	$40,000 each year is for student organizations serving health occupations.
39.8 	$38,000 each year is for student organizations serving service occupations.
39.9 	$88,000 each year is for student organizations serving trade and industry occupations.
39.10 	$84,000 each year is for student organizations serving business occupations.
39.11 	$131,000 each year is for student organizations serving agriculture occupations.
39.12 	$125,000 each year is for student organizations serving family and consumer science 
39.13 	occupations.
39.14 	$95,000 each year is for student organizations serving marketing occupations.
39.15 	Any balance in the first year does not cancel but is available in the second year.
39.16 		Subd. 19.Education Planning and Assessment (EPAS) program. For the 
39.17 	Educational Planning and Assessment (EPAS) program under Minnesota Statutes, section 
39.18 	120B.128:

39.19		$
	1,293,000
	.....
	2008
	
39.20		$
	1,293,000
	.....
	2009
	
39.21 	Any balance in the first year does not cancel but is available in the second year.
39.22 	The base for this program in fiscal year 2010 and later is $1,394,000.
39.23 		Subd. 20.College Level Examination program (CLEP). For the College Level 
39.24 	Examination program (CLEP) under Minnesota Statutes, section 120B.131:

39.25		$
	1,650,000
	.....
	2008
	
39.26		$
	1,650,000
	.....
	2009
	
39.27 	Any balance in the first year does not cancel but is available in the second year.
39.28 		Subd. 21.Best practices. (a) For best practices grants:

39.29		$
	1,210,000
	.....
	2008
	
39.30		$
	1,210,000
	.....
	2009
	
39.31 	(b) $400,000 each year is for a grant to the Minnesota Humanities Commission 
39.32 	under Minnesota Statutes, section 138.911.
39.33 	(c) $150,000 each year is for a grant to the Minnesota Historical Society.
40.1 	(d) $160,000 each year is for a grant to A Chance to Grow/New Visions for the 
40.2 	Minnesota Learning Resource Center's comprehensive training program for education 
40.3 	professionals charged with helping children acquire basic reading and mathematic skills.
40.4 	(e) $400,000 each year is for the Principals' Leadership Institute under Minnesota 
40.5 	Statutes, section 122A.74. Any balance in the first year does not cancel but is available 
40.6 	in the second year.
40.7 	(f) $100,000 each year is for the quantum opportunities program.
40.8 		Subd. 22.3R high schools. For 3R high school aid under Minnesota Statutes, 
40.9 	section 120B.0245:

40.10		$
	19,147,000
	.....
	2008
	
40.11		$
	55,927,000
	.....
	2009
	
40.12 		Subd. 23.Successful schools. For successful schools aid under section 13:

40.13		$
	75,000,000
	.....
	2008
	
40.14		$
	75,000,000
	.....
	2009
	
40.15 	This is a onetime appropriation.
40.16 		Subd. 24.Alternative school calendar pilot program. For the alternative school 
40.17 	calendar pilot program under section 11:

40.18		$
	2,000,000
	.....
	2009

40.19 	A base of $2,000,000 is established for the period of the pilot program.
40.20 		Subd. 25.Minnesota first five new teacher induction program. For the Minnesota 
40.21 	first five new teacher induction program under section 122A.623:

40.22		$
	2,220,000
	.....
	2008
	
40.23		$
	2,220,000
	.....
	2009
	
40.24 	The commissioner shall distribute the grant funds based on teacher license shortages 
40.25 	and high needs schools and districts.
40.26 	Any balance in the first year does not cancel but is available in the second year.
40.27 		Subd. 26.Teacher training in mathematics and science instruction. For teacher 
40.28 	training in mathematics and science instruction under Minnesota Statutes, section 
40.29 	122A.72, subdivision 5, paragraph (b):

40.30		$
	2,000,000
	.....
	2008
	
40.31		$
	4,000,000
	.....
	2009
	
41.1 		Subd. 27.Mandarin Chinese program. For Mandarin Chinese program grants 
41.2 	under section 12:

41.3		$
	250,000
	.....
	2008
	
41.4		$
	250,000
	.....
	2009
	
41.5 	Any balance in the first year does not cancel but is available in the second year. 
41.6 	This is a onetime appropriation.
41.7 		Subd. 28.The Minnesota Reading Corps program. For the establishment of the 
41.8 	Minnesota Reading Corps program under Minnesota Statutes, section 124D.42:

41.9		$
	1,900,000
	.....
	2008
	
41.10		$
	1,900,000
	.....
	2009
	
41.11 	$1,000,000 each year is for leveraging federal and private funding to support 
41.12 	AmeriCorps members serving in the Minnesota Reading Corps program established by 
41.13 	Serve Minnesota, including costs associated with the training and teaching of early literacy 
41.14 	skills to children ages three to grade 3 and the evaluation of the impact of the program 
41.15 	under Minnesota Statutes, section 124D.42, subdivision 8.
41.16 	Any balance in the first year does not cancel but is available in the second year.

41.17 	ARTICLE 3
41.18 	SPECIAL PROGRAMS

41.19 	Section 1. Minnesota Statutes 2006, section 123B.92, subdivision 1, is amended to read:
41.20 		Subdivision 1.Definitions. For purposes of this section and section 125A.76, the 
41.21 	terms defined in this subdivision have the meanings given to them.
41.22 	(a) "Actual expenditure per pupil transported in the regular and excess transportation 
41.23 	categories" means the quotient obtained by dividing:
41.24 	(1) the sum of:
41.25 	(i) all expenditures for transportation in the regular category, as defined in paragraph 
41.26 	(b), clause (1), and the excess category, as defined in paragraph (b), clause (2), plus
41.27 	(ii) an amount equal to one year's depreciation on the district's school bus fleet 
41.28 	and mobile units computed on a straight line basis at the rate of 15 percent per year for 
41.29 	districts operating a program under section 124D.128 for grades 1 to 12 for all students in 
41.30 	the district and 12-1/2 percent per year for other districts of the cost of the fleet, plus
41.31 	(iii) an amount equal to one year's depreciation on the district's type three school 
41.32 	buses, as defined in section 169.01, subdivision 6, clause (5), which must be used a 
41.33 	majority of the time for pupil transportation purposes, computed on a straight line basis at 
41.34 	the rate of 20 percent per year of the cost of the type three school buses by:
42.1 	(2) the number of pupils eligible for transportation in the regular category, as defined 
42.2 	in paragraph (b), clause (1), and the excess category, as defined in paragraph (b), clause (2).
42.3 	(b) "Transportation category" means a category of transportation service provided to 
42.4 	pupils as follows:
42.5 	(1) Regular transportation is:
42.6 	(i) transportation to and from school during the regular school year for resident 
42.7 	elementary pupils residing one mile or more from the public or nonpublic school they 
42.8 	attend, and resident secondary pupils residing two miles or more from the public 
42.9 	or nonpublic school they attend, excluding desegregation transportation and noon 
42.10 	kindergarten transportation; but with respect to transportation of pupils to and from 
42.11 	nonpublic schools, only to the extent permitted by sections 123B.84 to 123B.87;
42.12 	(ii) transportation of resident pupils to and from language immersion programs;
42.13 	(iii) transportation of a pupil who is a custodial parent and that pupil's child between 
42.14 	the pupil's home and the child care provider and between the provider and the school, if 
42.15 	the home and provider are within the attendance area of the school;
42.16 	(iv) transportation to and from or board and lodging in another district, of resident 
42.17 	pupils of a district without a secondary school; and
42.18 	(v) transportation to and from school during the regular school year required under 
42.19 	subdivision 3 for nonresident elementary pupils when the distance from the attendance 
42.20 	area border to the public school is one mile or more, and for nonresident secondary pupils 
42.21 	when the distance from the attendance area border to the public school is two miles or 
42.22 	more, excluding desegregation transportation and noon kindergarten transportation.
42.23 	For the purposes of this paragraph, a district may designate a licensed day care 
42.24 	facility, school day care facility, respite care facility, the residence of a relative, or the 
42.25 	residence of a person chosen by the pupil's parent or guardian as the home of a pupil for 
42.26 	part or all of the day, if requested by the pupil's parent or guardian, and if that facility or 
42.27 	residence is within the attendance area of the school the pupil attends.
42.28 	(2) Excess transportation is:
42.29 	(i) transportation to and from school during the regular school year for resident 
42.30 	secondary pupils residing at least one mile but less than two miles from the public or 
42.31 	nonpublic school they attend, and transportation to and from school for resident pupils 
42.32 	residing less than one mile from school who are transported because of extraordinary 
42.33 	traffic, drug, or crime hazards; and
42.34 	(ii) transportation to and from school during the regular school year required under 
42.35 	subdivision 3 for nonresident secondary pupils when the distance from the attendance area 
42.36 	border to the school is at least one mile but less than two miles from the public school 
43.1 	they attend, and for nonresident pupils when the distance from the attendance area border 
43.2 	to the school is less than one mile from the school and who are transported because of 
43.3 	extraordinary traffic, drug, or crime hazards.
43.4 	(3) Desegregation transportation is transportation within and outside of the district 
43.5 	during the regular school year of pupils to and from schools located outside their normal 
43.6 	attendance areas under a plan for desegregation mandated by the commissioner or under 
43.7 	court order.
43.8 	(4) "Transportation services for pupils with disabilities" is:
43.9 	(i) transportation of pupils with disabilities who cannot be transported on a regular 
43.10 	school bus between home or a respite care facility and school;
43.11 	(ii) necessary transportation of pupils with disabilities from home or from school to 
43.12 	other buildings, including centers such as developmental achievement centers, hospitals, 
43.13 	and treatment centers where special instruction or services required by sections 125A.03
43.14 	to 125A.24, 125A.26 to 125A.48, and 125A.65 are provided, within or outside the district 
43.15 	where services are provided;
43.16 	(iii) necessary transportation for resident pupils with disabilities required by sections 
43.17 	125A.12, and 125A.26 to 125A.48;
43.18 	(iv) board and lodging for pupils with disabilities in a district maintaining special 
43.19 	classes;
43.20 	(v) transportation from one educational facility to another within the district for 
43.21 	resident pupils enrolled on a shared-time basis in educational programs, and necessary 
43.22 	transportation required by sections 125A.18, and 125A.26 to 125A.48, for resident pupils 
43.23 	with disabilities who are provided special instruction and services on a shared-time basis 
43.24 	or if resident pupils are not transported, the costs of necessary travel between public 
43.25 	and private schools or neutral instructional sites by essential personnel employed by the 
43.26 	district's program for children with a disability;
43.27 	(vi) transportation for resident pupils with disabilities to and from board and lodging 
43.28 	facilities when the pupil is boarded and lodged for educational purposes; and
43.29 	(vii) services described in clauses (i) to (vi), when provided for pupils with 
43.30 	disabilities in conjunction with a summer instructional program that relates to the pupil's 
43.31 	individual education plan or in conjunction with a learning year program established 
43.32 	under section 124D.128.
43.33 	For purposes of computing special education base revenue initial aid under section 
43.34 	125A.76, subdivision 2, the cost of providing transportation for children with disabilities 
43.35 	includes (A) the additional cost of transporting a homeless student from a temporary 
43.36 	nonshelter home in another district to the school of origin, or a formerly homeless student 
44.1 	from a permanent home in another district to the school of origin but only through the end 
44.2 	of the academic year; and (B) depreciation on district-owned school buses purchased after 
44.3 	July 1, 2005, and used primarily for transportation of pupils with disabilities, calculated 
44.4 	according to paragraph (a), clauses (ii) and (iii). Depreciation costs included in the 
44.5 	disabled transportation category must be excluded in calculating the actual expenditure 
44.6 	per pupil transported in the regular and excess transportation categories according to 
44.7 	paragraph (a).
44.8 	(5) "Nonpublic nonregular transportation" is:
44.9 	(i) transportation from one educational facility to another within the district for 
44.10 	resident pupils enrolled on a shared-time basis in educational programs, excluding 
44.11 	transportation for nonpublic pupils with disabilities under clause (4);
44.12 	(ii) transportation within district boundaries between a nonpublic school and a 
44.13 	public school or a neutral site for nonpublic school pupils who are provided pupil support 
44.14 	services pursuant to section 123B.44; and
44.15 	(iii) late transportation home from school or between schools within a district for 
44.16 	nonpublic school pupils involved in after-school activities.
44.17 	(c) "Mobile unit" means a vehicle or trailer designed to provide facilities for 
44.18 	educational programs and services, including diagnostic testing, guidance and counseling 
44.19 	services, and health services. A mobile unit located off nonpublic school premises is a 
44.20 	neutral site as defined in section 123B.41, subdivision 13.

44.21 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

44.22 	Sec. 2. Minnesota Statutes 2006, section 124D.454, subdivision 2, is amended to read:
44.23 		Subd. 2.Definitions. For the purposes of this section, the definitions in this 
44.24 	subdivision apply.
44.25 	(a) "Base year" means the second fiscal year preceding the fiscal year for which 
44.26 	aid will be paid.
44.27 	(b) "Basic revenue" has the meaning given it in section 126C.10, subdivision 2. 
44.28 	For the purposes of computing basic revenue pursuant to this section, each child with a 
44.29 	disability shall be counted as prescribed in section 126C.05, subdivision 1. 
44.30 	(c) "Average daily membership" has the meaning given it in section 126C.05. 
44.31 	(d) "Program growth factor" means 1.00 for fiscal year 1998 and later. 
44.32 	(e) "Aid percentage factor" means 100 percent for fiscal year 2000 and later.
44.33 	(f) (b) "Essential personnel" means a licensed teacher, licensed support services 
44.34 	staff person, paraprofessional providing direct services to students, or licensed personnel 
45.1 	under subdivision 12. This definition is not intended to change or modify the definition of 
45.2 	essential employee in chapter 179A.

45.3 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

45.4 	Sec. 3. Minnesota Statutes 2006, section 124D.454, subdivision 3, is amended to read:
45.5 		Subd. 3.Base revenue Initial aid. (a) The transition-disabled program base revenue
45.6 	initial aid equals the sum of the following amounts computed using base current year data:
45.7 	(1) 68 percent of the salary of each essential licensed person or approved 
45.8 	paraprofessional who provides direct instructional services to students employed during 
45.9 	that fiscal year for services rendered in that district's transition program for children with a 
45.10 	disability;
45.11 	(2) 47 percent of the costs of necessary equipment for transition programs for 
45.12 	children with a disability;
45.13 	(3) 47 percent of the costs of necessary travel between instructional sites by transition 
45.14 	program teachers of children with a disability but not including travel to and from local, 
45.15 	regional, district, state, or national career and technical student organization meetings;
45.16 	(4) 47 percent of the costs of necessary supplies for transition programs for children 
45.17 	with a disability but not to exceed an average of $47 in any one school year for each child 
45.18 	with a disability receiving these services;
45.19 	(5) for transition programs for children with disabilities provided by a contract 
45.20 	approved by the commissioner with public, private, or voluntary agencies other than a 
45.21 	Minnesota school district or cooperative center, in place of programs provided by the 
45.22 	district, 52 percent of the difference between the amount of the contract and the basic 
45.23 	revenue of the district for that pupil for the fraction of the school day the pupil receives 
45.24 	services under the contract;
45.25 	(6) for transition programs for children with disabilities provided by a contract 
45.26 	approved by the commissioner with public, private, or voluntary agencies other than a 
45.27 	Minnesota school district or cooperative center, that are supplementary to a full educational 
45.28 	program provided by the school district, 52 percent of the amount of the contract; and
45.29 	(7) for a contract approved by the commissioner with another Minnesota school 
45.30 	district or cooperative center for vocational evaluation services for children with a 
45.31 	disability for children that are not yet enrolled in grade 12, 52 percent of the amount 
45.32 	of the contract.
45.33 	(b) If requested by a school district for transition programs during the base year for 
45.34 	less than the full school year, the commissioner may adjust the base revenue to reflect 
46.1 	the expenditures that would have occurred during the base year had the program been 
46.2 	operated for the full year.

46.3 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

46.4 	Sec. 4. Minnesota Statutes 2006, section 125A.75, subdivision 4, is amended to read:
46.5 		Subd. 4.Program and aid approval. Before June 1 of each year, each district 
46.6 	providing special instruction and services to children with a disability, including children 
46.7 	eligible for Part C, as defined in sections 125A.02, subdivision 1, and 125A.27, subdivision 
46.8 	8, must submit to the commissioner an application for approval of these programs and their 
46.9 	budgets for the next fiscal year. The application must include an enumeration of the costs 
46.10 	proposed as eligible for state aid pursuant to this section and of the estimated number and 
46.11 	grade level of children with a disability in the district who will receive special instruction 
46.12 	and services during the regular school year and in summer school programs during 
46.13 	the next fiscal year. The application must also include any other information deemed 
46.14 	necessary by the commissioner for the calculation of state aid and for the evaluation of the 
46.15 	necessity of the program, the necessity of the personnel to be employed in the program, 
46.16 	for determining the amount which the program will receive from grants from federal 
46.17 	funds, or special grants from other state sources, and the program's compliance with the 
46.18 	rules and standards of the Department of Education. The commissioner shall review each 
46.19 	application to determine whether the program and the personnel to be employed in the 
46.20 	program are actually necessary and essential to meet the district's obligation to provide 
46.21 	special instruction and services to children with a disability pursuant to sections 125A.03
46.22 	to 125A.24, 125A.259 to 125A.48, and 125A.65. The commissioner shall not approve aid 
46.23 	pursuant to this section for any program or for the salary of any personnel determined to 
46.24 	be unnecessary or unessential on the basis of this review. The commissioner may withhold 
46.25 	all or any portion of the aid for programs which receive grants from federal funds, or 
46.26 	special grants from other state sources. By August 31 the commissioner shall approve, 
46.27 	disapprove, or modify each application, and notify each applying district of the action 
46.28 	and of the estimated amount of aid for the programs. The commissioner shall provide 
46.29 	procedures for districts to submit additional applications for program and budget approval 
46.30 	during the fiscal year, for programs needed to meet any substantial changes in the needs 
46.31 	of children with a disability in the district. Notwithstanding the provisions of section 
46.32 	127A.42, the commissioner may modify or withdraw the program or aid approval and 
46.33 	withhold aid pursuant to this section without proceeding according to section 127A.42
46.34 	at any time the commissioner determines that the program does not comply with rules 
47.1 	of the Department of Education or that any facts concerning the program or its budget 
47.2 	differ from the facts in the district's approved application. 

47.3 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

47.4 	Sec. 5. Minnesota Statutes 2006, section 125A.76, subdivision 1, is amended to read:
47.5 		Subdivision 1.Definitions. For the purposes of this section, the definitions in this 
47.6 	subdivision apply.
47.7 	(a) "Base year" for fiscal year 1998 and later fiscal years means the second fiscal 
47.8 	year preceding the fiscal year for which aid will be paid.
47.9 	(b) "Basic revenue" has the meaning given it in section 126C.10, subdivision 2. 
47.10 	For the purposes of computing basic revenue pursuant to this section, each child with a 
47.11 	disability shall be counted as prescribed in section 126C.05, subdivision 1. 
47.12 	(c) (b) "Essential personnel" means teachers, cultural liaisons, related services, and 
47.13 	support services staff providing direct services to students. Essential personnel may also 
47.14 	include special education paraprofessionals or clericals providing support to teachers and 
47.15 	students by preparing paperwork and making arrangements related to special education 
47.16 	compliance requirements, including parent meetings and individual education plans.
47.17 	(d) (c) "Average daily membership" has the meaning given it in section 126C.05. 
47.18 	(e) (d) "Program growth factor" means 1.046 for fiscal year 2003, and 1.0 for fiscal 
47.19 	year 2004 and later. 

47.20 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

47.21 	Sec. 6. Minnesota Statutes 2006, section 125A.76, subdivision 2, is amended to read:
47.22 		Subd. 2.Special education base revenue initial aid. (a) The special education 
47.23 	base revenue initial aid equals the sum of the following amounts computed using base
47.24 	current year data:
47.25 	(1) 68 percent of the salary of each essential person employed in the district's 
47.26 	program for children with a disability during the fiscal year, whether the person is 
47.27 	employed by one or more districts or a Minnesota correctional facility operating on a 
47.28 	fee-for-service basis;
47.29 	(2) for the Minnesota State Academy for the Deaf or the Minnesota State Academy 
47.30 	for the Blind, 68 percent of the salary of each instructional aide assigned to a child 
47.31 	attending the academy, if that aide is required by the child's individual education plan;
47.32 	(3) for special instruction and services provided to any pupil by contracting with 
47.33 	public, private, or voluntary agencies other than school districts, in place of special 
48.1 	instruction and services provided by the district, 52 percent of the difference between the 
48.2 	amount of the contract and the amount of the basic revenue, as defined in section 126C.10, 
48.3 	subdivision 2, special education aid, and any other aid earned on behalf of the child for the 
48.4 	fraction of the school day the pupil receives services under the contract; 
48.5 	(4) for special instruction and services provided to any pupil by contracting for 
48.6 	services with public, private, or voluntary agencies other than school districts, that are 
48.7 	supplementary to a full educational program provided by the school district, 52 percent of 
48.8 	the amount of the contract for that pupil;
48.9 	(5) for supplies and equipment purchased or rented for use in the instruction of 
48.10 	children with a disability, an amount equal to 47 percent of the sum actually expended by 
48.11 	the district, or a Minnesota correctional facility operating on a fee-for-service basis, but 
48.12 	not to exceed an average of $47 in any one school year for each child with a disability 
48.13 	receiving instruction;
48.14 	(6) for fiscal years 1997 and later, special education base revenue shall include 
48.15 	amounts under clauses (1) to (5) for special education summer programs provided during 
48.16 	the base year for that fiscal year; and
48.17 	(7) for fiscal years 1999 and later, the cost of providing transportation services for 
48.18 	children with disabilities under section 123B.92, subdivision 1, paragraph (b), clause (4). 
48.19 	The department shall establish procedures through the uniform financial accounting 
48.20 	and reporting system to identify and track all revenues generated from third-party billings 
48.21 	as special education revenue at the school district level; include revenue generated from 
48.22 	third-party billings as special education revenue in the annual cross-subsidy report; and 
48.23 	exclude third-party revenue from calculation of excess cost aid to the districts; and
48.24 	(8) the district's transition-disabled program initial aid according to section 
48.25 	124D.454, subdivision 3.
48.26 	(b) If requested by a school district operating a special education program during 
48.27 	the base year for less than the full fiscal year, or a school district in which is located a 
48.28 	Minnesota correctional facility operating on a fee-for-service basis for less than the full 
48.29 	fiscal year, the commissioner may adjust the base revenue to reflect the expenditures 
48.30 	that would have occurred during the base year had the program been operated for the 
48.31 	full fiscal year.
48.32 	(c) Notwithstanding paragraphs (a) and (b), the portion of a school district's base 
48.33 	revenue attributable to a Minnesota correctional facility operating on a fee-for-service 
48.34 	basis during the facility's first year of operating on a fee-for-service basis shall be 
48.35 	computed using current year data.

48.36 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

49.1 	Sec. 7. Minnesota Statutes 2006, section 125A.76, subdivision 4, is amended to read:
49.2 		Subd. 4.State total special education aid. The state total special education aid 
49.3 	for fiscal year 2004 equals $530,642,000. The state total special education aid for fiscal 
49.4 	year 2005 equals $529,164,000 $549,222,000 for fiscal year 2008, $560,523,000 for fiscal 
49.5 	year 2009, $562,092,000 for fiscal year 2010, and $564,001,000 for fiscal year 2011. The 
49.6 	state total special education aid for later fiscal years equals:
49.7 	(1) the state total special education aid for the preceding fiscal year; times
49.8 	(2) the program growth factor; times
49.9 	(3) the greater of one, or the ratio of the state total average daily membership for the 
49.10 	current fiscal year to the state total average daily membership for the preceding fiscal year.

49.11 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

49.12 	Sec. 8. Minnesota Statutes 2006, section 125A.76, subdivision 5, is amended to read:
49.13 		Subd. 5.School district special education aid. (a) A school district's special 
49.14 	education aid for fiscal year 2000 2008 and later equals the state total special education 
49.15 	aid, minus the amount determined under paragraphs (b) and (c), times the ratio of the 
49.16 	district's adjusted initial special education base revenue aid to the state total adjusted
49.17 	initial special education base revenue aid. If the commissioner of education modifies 
49.18 	its rules for special education in a manner that increases a district's special education 
49.19 	obligations or service requirements, the commissioner shall annually increase each 
49.20 	district's special education aid by the amount necessary to compensate for the increased 
49.21 	service requirements. The additional aid equals the cost in the current year attributable to 
49.22 	rule changes not reflected in the computation of special education base revenue, multiplied 
49.23 	by the appropriate percentages from subdivision 2.
49.24 	(b) Notwithstanding paragraph (a), if the special education base revenue for a 
49.25 	district equals zero, the special education aid equals the amount computed according 
49.26 	to subdivision 2 using current year data.
49.27 	(c) Notwithstanding paragraphs (a) and (b), if the special education base revenue for 
49.28 	a district is greater than zero, and the base year amount for the district under subdivision 
49.29 	2, paragraph (a), clause (7), equals zero, the special education aid equals the sum of the 
49.30 	amount computed according to paragraph (a), plus the amount computed according to 
49.31 	subdivision 2, paragraph (a), clause (7), using current year data.
49.32 	(d) A charter school under section 124D.10 shall generate state special education 
49.33 	aid based on current year expenditures for its first four years of operation and only in its 
49.34 	fifth and later years shall paragraphs (a), (b), and (c) apply. 

50.1 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

50.2 	Sec. 9. Minnesota Statutes 2006, section 125A.76, is amended by adding a subdivision 
50.3 	to read:
50.4 		Subd. 8.Special education forecast maintenance of effort. (a) If, on the basis of 
50.5 	a forecast of general fund revenues and expenditures under section 16A.103; the state's 
50.6 	expenditures for special education and related services for children with disabilities 
50.7 	from nonfederal sources for a fiscal year, including special education aid under section 
50.8 	125A.76; special education excess cost aid under section 125A.76, subdivision 7; travel 
50.9 	for home-based services under section 125A.75, subdivision 1; aid for students with 
50.10 	disabilities under section 125A.75, subdivision 3; court-placed special education under 
50.11 	section 125A.79, subdivision 4; out-of-state tuition under section 125A.79, subdivision 8; 
50.12 	and direct expenditures by state agencies, are projected to be less than the amount required 
50.13 	to meet federal special education maintenance of effort, the additional amount required 
50.14 	to meet federal special education maintenance of effort is added to the state total special 
50.15 	education aid in section 125A.76, subdivision 4.
50.16 	(b) If, on the basis of a forecast of general fund revenues and expenditures under 
50.17 	section 16A.103, expenditures in the programs in paragraph (a) are projected to be greater 
50.18 	than previously forecast for an enacted budget, and an addition to state total special 
50.19 	education aid has been made under paragraph (a), the state total special education aid 
50.20 	must be reduced by the lesser of the amount of the expenditure increase or the amount 
50.21 	previously added to state total special education aid in section 125A.76, subdivision 4.
50.22 	(c) For the purpose of this section, "previously forecast for an enacted budget" means 
50.23 	the allocation of funding for these programs in the most recent forecast of general fund 
50.24 	revenues and expenditures or the act appropriating money for these programs, whichever 
50.25 	occurred most recently. It does not include planning estimates for a future biennium.

50.26 	EFFECTIVE DATE. This section is effective for fiscal year 2010.

50.27 	Sec. 10. Minnesota Statutes 2006, section 125A.79, subdivision 5, is amended to read:
50.28 		Subd. 5.Initial excess cost aid. For fiscal years 2002 2008 and later, a district's 
50.29 	initial excess cost aid equals the greatest greater of:
50.30 	(1) 75 percent of the difference between (i) the district's unreimbursed special 
50.31 	education cost for the preceding fiscal year and (ii) 4.36 percent of the district's general 
50.32 	revenue for the preceding fiscal year; or 
51.1 	(2) 70 percent of the difference between (i) the increase in the district's unreimbursed 
51.2 	special education cost between the base year as defined in section 125A.76, subdivision 1, 
51.3 	and the current year and (ii) 1.6 percent of the district's general revenue; or 
51.4 	(3) zero.

51.5 	EFFECTIVE DATE. This section is effective for fiscal year 2008.

51.6 	Sec. 11. Minnesota Statutes 2006, section 125A.79, subdivision 6, is amended to read:
51.7 		Subd. 6.State total special education excess cost aid. The state total special 
51.8 	education excess cost aid for fiscal year 2005 equals $91,811,000 $107,435,000 for fiscal 
51.9 	year 2008, $109,753,000 for fiscal year 2009, $109,996,000 for fiscal year 2010, and 
51.10 	$110,333,000 for fiscal year 2011. The state total special education excess cost aid equals 
51.11 	$103,600,000 for fiscal year 2006 and $104,700,000 for fiscal year 2007. The state total 
51.12 	special education excess cost aid for fiscal year 2008 and later fiscal years equals:
51.13 	(1) the state total special education excess cost aid for the preceding fiscal year; times
51.14 	(2) the program growth factor; times
51.15 	(3) the greater of one, or the ratio of the state total average daily membership for the 
51.16 	current fiscal year to the state total average daily membership for the preceding fiscal year.

51.17 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

51.18 	Sec. 12. Minnesota Statutes 2006, section 125A.79, subdivision 8, is amended to read:
51.19 		Subd. 8.Out-of-state tuition. For children who are residents of the state, receive 
51.20 	services under section 125A.76, subdivisions 1 and 2, and are placed in a care and 
51.21 	treatment facility by court action in a state that does not have a reciprocity agreement 
51.22 	with the commissioner under section 125A.155, the resident school district shall submit 
51.23 	the balance of the tuition bills, minus the amount of the basic revenue, as defined 
51.24 	by section 126C.10, subdivision 2, of the district for the child and general education 
51.25 	revenue, excluding basic skills revenue and alternative teacher compensation revenue, and 
51.26 	referendum equalization aid attributable to the pupil, calculated using the resident district's 
51.27 	average general education revenue and referendum equalization aid per adjusted pupil unit 
51.28 	minus the special education aid, and any other aid earned on behalf of the child contracted 
51.29 	services initial aid attributable to the pupil. 

51.30 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

51.31 	Sec. 13. APPROPRIATIONS.
 52.1 		Subdivision 1.Department of Education. The sums indicated in this section are 
52.2 	appropriated from the general fund to the Department of Education for the fiscal years 
52.3 	designated.
52.4 		Subd. 2.Special education; regular. For special education aid under Minnesota 
52.5 	Statutes, section 125A.75:

52.6		$
	547,266,000
	.....
	2008
	
52.7		$
	559,394,000
	.....
	2009
	
52.8 	The 2008 appropriation includes $52,965,000 for 2007 and $494,301,000 for 2008.
52.9 	The 2009 appropriation includes $54,921,000 for 2008 and $504,473,000 for 2009.
52.10 		Subd. 3.Aid for children with disabilities. For aid under Minnesota Statutes, 
52.11 	section 125A.75, subdivision 3, for children with disabilities placed in residential facilities 
52.12 	within the district boundaries for whom no district of residence can be determined:

52.13		$
	1,536,000
	.....
	2008
	
52.14		$
	1,727,000
	.....
	2009
	
52.15 	If the appropriation for either year is insufficient, the appropriation for the other 
52.16 	year is available.
52.17 		Subd. 4.Travel for home-based services. For aid for teacher travel for home-based 
52.18 	services under Minnesota Statutes, section 125A.75, subdivision 1:

52.19		$
	237,000
	.....
	2008
	
52.20		$
	248,000
	.....
	2009
	
52.21 	The 2008 appropriation includes $22,000 for 2007 and $215,000 for 2008.
52.22 	The 2009 appropriation includes $23,000 for 2008 and $225,000 for 2009.
52.23 		Subd. 5.Special education; excess costs. For excess cost aid under Minnesota 
52.24 	Statutes, section 125A.79, subdivision 7:

52.25		$
	106,521,000
	.....
	2008
	
52.26		$
	108,979,000
	.....
	2009
	
52.27 	The 2008 appropriation includes $34,970,000 for 2007 and $71,551,000 for 2008.
52.28 	The 2009 appropriation includes $35,885,000 for 2008 and $73,094,000 for 2009.
52.29 		Subd. 6.Transition for disabled students. For aid for transition programs for 
52.30 	children with disabilities under Minnesota Statutes, section 124D.454:

52.31		$
	880,000
	.....
	2008
	
52.32 	The 2008 appropriation includes $880,000 for 2007 and $0 for 2008.
53.1 		Subd. 7.Court-placed special education revenue. For reimbursing serving 
53.2 	school districts for unreimbursed eligible expenditures attributable to children placed in 
53.3 	the serving school district by court action under Minnesota Statutes, section 125A.79, 
53.4 	subdivision 4:

53.5		$
	72,000
	.....
	2008
	
53.6		$
	74,000
	.....
	2009
	
53.7 		Subd. 8.Special education out-of-state tuition. For special education out-of-state 
53.8 	tuition according to Minnesota Statutes, section 125A.79, subdivision 8:

53.9		$
	250,000
	.....
	2008
	
53.10		$
	250,000
	.....
	2009

53.11 	Sec. 14.  REPEALER.
 53.12 	Minnesota Statutes 2006, sections 124D.454, subdivisions 4, 5, 6, and 7; and 
53.13 	125A.76, subdivision 3, are repealed effective for revenue for fiscal year 2008.

53.14 	ARTICLE 4
53.15 	FACILITIES AND TECHNOLOGY

53.16 	Section 1. Minnesota Statutes 2006, section 123B.53, subdivision 1, is amended to read:
53.17 		Subdivision 1.Definitions. (a) For purposes of this section, the eligible debt service 
53.18 	revenue of a district is defined as follows:
53.19 	(1) the amount needed to produce between five and six percent in excess of the 
53.20 	amount needed to meet when due the principal and interest payments on the obligations 
53.21 	of the district for eligible projects according to subdivision 2, including the amounts 
53.22 	necessary for repayment of energy loans according to section 216C.37 or sections 298.292
53.23 	to 298.298, debt service loans and capital loans, lease purchase payments under section 
53.24 	126C.40, subdivision 2, alternative facilities levies under section 123B.59, subdivision 
53.25 	5,  paragraph (a), minus
53.26 	(2) the amount of debt service excess levy reduction for that school year calculated 
53.27 	according to the procedure established by the commissioner.
53.28 	(b) The obligations in this paragraph are excluded from eligible debt service revenue:
53.29 	(1) obligations under section 123B.61;
53.30 	(2) the part of debt service principal and interest paid from the taconite environmental 
53.31 	protection fund or Douglas J. Johnson economic protection trust;
53.32 	(3) obligations issued under Laws 1991, chapter 265, article 5, section 18, as 
53.33 	amended by Laws 1992, chapter 499, article 5, section 24; and
54.1 	(4) obligations under section 123B.62.
54.2 	(c) For purposes of this section, if a preexisting school district reorganized under 
54.3 	sections 123A.35 to 123A.43, 123A.46, and 123A.48 is solely responsible for retirement 
54.4 	of the preexisting district's bonded indebtedness, capital loans or debt service loans, debt 
54.5 	service equalization aid must be computed separately for each of the preexisting districts.
54.6 	(d) For purposes of this section, the adjusted net tax capacity determined according 
54.7 	to section 127A.48 shall be adjusted to include a portion of the tax capacity of property 
54.8 	generally exempted from ad valorem taxes under section 272.02, subdivisions subdivision
54.9 	64 and 65, equal to the product of that tax capacity times the ratio of the eligible debt 
54.10 	service revenue attributed to general obligation bonds to the total eligible debt service 
54.11 	revenue of the district.

54.12 	Sec. 2. Minnesota Statutes 2006, section 123B.57, subdivision 3, is amended to read:
54.13 		Subd. 3.Health and safety revenue. A district's health and safety revenue 
54.14 	for a fiscal year equals the district's alternative facilities levy under section 123B.59, 
54.15 	subdivision 5, paragraph (b), plus the greater of zero or:
54.16 	(1) the sum of (a) the total approved cost of the district's hazardous substance 
54.17 	plan for fiscal years 1985 through 1989, plus (b) the total approved cost of the district's 
54.18 	health and safety program for fiscal year 1990 through the fiscal year to which the levy 
54.19 	is attributable, excluding expenditures funded with bonds issued under section 123B.59
54.20 	or 123B.62, or chapter 475; certificates of indebtedness or capital notes under section 
54.21 	123B.61; levies under section 123B.58, 123B.59, 123B.63, or 126C.40, subdivision 1 or 
54.22 	6; and other federal, state, or local revenues, minus 
54.23 	(2) the sum of (a) the district's total hazardous substance aid and levy for fiscal years 
54.24 	1985 through 1989 under sections 124.245 and 275.125, subdivision 11c, plus (b) the 
54.25 	district's health and safety revenue under this subdivision, for years before the fiscal year 
54.26 	to which the levy is attributable. 

54.27 	Sec. 3. Minnesota Statutes 2006, section 272.02, subdivision 64, is amended to read:
54.28 		Subd. 64.Job opportunity building zone property. (a) Improvements to real 
54.29 	property, and personal property, classified under section 273.13, subdivision 24, and 
54.30 	located within a job opportunity building zone, designated under section 469.314, are 
54.31 	exempt from ad valorem taxes levied under chapter 275.
54.32 	(b) Improvements to real property, and tangible personal property, of an agricultural 
54.33 	production facility located within an agricultural processing facility zone, designated 
54.34 	under section 469.314, is exempt from ad valorem taxes levied under chapter 275.
55.1 	(c) For property to qualify for exemption under paragraph (a), the occupant must be 
55.2 	a qualified business, as defined in section 469.310.
55.3 	(d) The exemption applies beginning for the first assessment year after designation 
55.4 	of the job opportunity building zone by the commissioner of employment and economic 
55.5 	development. The exemption applies to each assessment year that begins during the 
55.6 	duration of the job opportunity building zone. To be exempt, the property must be 
55.7 	occupied by July 1 of the assessment year by a qualified business that has signed the 
55.8 	business subsidy agreement and relocation agreement, if required, by July 1 of the 
55.9 	assessment year. This exemption does not apply to:
55.10 	(1) the levy under section 475.61 or similar levy provisions under any other law to 
55.11 	pay general obligation bonds; or
55.12 	(2) other school district levies included in the debt service levy of the district under 
55.13 	section 123B.55; or
55.14 	(3) a levy under section 126C.17, if the levy was approved by the voters before the 
55.15 	designation of the job opportunity building zone.

55.16 	Sec. 4. SCHOOL TECHNOLOGY GRANTS.
 55.17 		Subdivision 1.Program outcomes. The general framework outcomes for 
55.18 	technology use in kindergarten through grade 12 education are:
55.19 	(1) development of policies and procedures that assure instructional resource 
55.20 	availability to help students successfully achieve education excellence and state standards;
55.21 	(2) development of databases that are accessible within each district and on the 
55.22 	Internet; 
55.23 	(3) development of policies, procedures, and systems that stimulate and promote 
55.24 	teacher and student curriculum and learning collaboration; and
55.25 	(4) development of uniform technology standards.
55.26 		Subd. 2.Establishment; eligibility. To promote the outcomes of subdivision 1, a 
55.27 	program is established to support districts and charter schools in reaching these outcomes. 
55.28 	Districts and charter schools eligible to participate under this section must have an 
55.29 	approved district technology plan submitted to the commissioner. The commissioner shall 
55.30 	develop a competitive grant process for the purpose of determining recipients. Districts 
55.31 	and charter schools must propose to use the grant funds that support the outcomes 
55.32 	described in subdivision 1 in a manner that fulfills the following components in rank 
55.33 	order by:
55.34 	(1) obtaining minimum statewide standards of technology infrastructure and 
55.35 	capacity;
56.1 	(2) incorporating student technology content standards within the district curriculum 
56.2 	and the professional development necessary for effective instruction of those standards;
56.3 	(3) developing data-driven decision-making models in the classroom, school, and 
56.4 	district; and
56.5 	(4) developing innovation in student learning and teacher professional development.
56.6 		Subd. 3.Application and review process; funding priority. Districts and charter 
56.7 	schools eligible under subdivision 2 may apply to the commissioner, in the form and 
56.8 	manner the commissioner determines, for competitive funding to achieve the four grant 
56.9 	goals. The application must identify, through a commonly-used technology audit process 
56.10 	that determines the district or charter school's current technology capabilities, the disparity 
56.11 	between the district or charter school's current technology infrastructure and capacity 
56.12 	and the minimum statewide standards that are established by the commissioner. The 
56.13 	application must detail the specific efforts the applicant intends to undertake to achieve 
56.14 	the components, consistent with subdivision 2, and a proposed budget detailing the 
56.15 	district or charter school's current and proposed expenditures. The proposed budget must 
56.16 	demonstrate that the applicant's efforts will support the four components of subdivision 2 
56.17 	in rank order. Expenditures for administration must not exceed five percent of the proposed 
56.18 	budget. The commissioner may require an applicant to provide additional information. 
56.19 	When reviewing applications, the commissioner must determine whether the applicant 
56.20 	satisfied all the requirements in this subdivision and subdivision 2. The commissioner 
56.21 	may give funding priority to an otherwise qualified applicant that demonstrates:
56.22 	(1) previous attempts through district referenda or other funding mechanisms to 
56.23 	increase its technology infrastructure and capacity;
56.24 	(2) previous efforts to participate in online field testing of statewide assessments; or
56.25 	(3) an effective ability to actively involve local business and community 
56.26 	organizations in efforts to stimulate and promote teacher and student curriculum and 
56.27 	learning collaboration.
56.28 		Subd. 4.Application review; grant awards. The commissioner shall award grants 
56.29 	to applicant school districts and charter schools that meet the requirements of subdivisions 
56.30 	1 and 2. The commissioner may award grants as funding allows and, to the extent feasible, 
56.31 	must distribute the grant awards on an equitable geographical basis. The commissioner 
56.32 	must base the amount of the grant award on the number of students in the participating 
56.33 	district or charter school. District expenditures of the grant proceeds must be consistent 
56.34 	with budget information the grantee periodically submits to the commissioner. School 
56.35 	districts and charter schools that submit an application and receive funding under this 
56.36 	section must use the funding, consistent with the components in subdivision 2, as stated 
57.1 	in the application. The commissioner may spend up to one percent of the appropriation 
57.2 	for administering the program.
57.3 		Subd. 5.Annual reports. Each school district and charter school that receives a 
57.4 	grant under this section must demonstrate and measure the extent to which the district or 
57.5 	charter school achieved the outcomes set forth in the grant application and consistent with 
57.6 	subdivision 1. This report is due at the end of the grant period and must be submitted to the 
57.7 	commissioner in the form and manner the commissioner determines. The commissioner 
57.8 	must make summary data about this program available to the education policy and finance 
57.9 	committees of the legislature by February 15, 2010. Each school district and charter 
57.10 	school that receives a grant under this section annually must report to the commissioner, 
57.11 	consistent with the uniform financial accounting and reporting standards, its actual 
57.12 	expenditures for school technology funding. The report must demonstrate that the school 
57.13 	district or charter school has maintained its effort from other sources for technology and 
57.14 	capacity compared with the previous fiscal year, and the district or charter school has 
57.15 	expended all grant funds, consistent with its approved budget.

57.16 	EFFECTIVE DATE. This section is effective for fiscal years 2008 and 2009.

57.17 	Sec. 5. ONLINE LEARNING EXPANSION GRANTS.
 57.18 		Subdivision 1.Outcomes. The general framework outcomes for expanding online 
57.19 	learning in education are:
57.20 	(1) provide grant funding to encourage expansion and access to online learning 
57.21 	courses and opportunities for Minnesota students;
57.22 	(2) expand academic opportunities, increase graduation rates, increase college 
57.23 	eligibility and preparedness, and provide online resources for remediation;
57.24 	(3) increase the number of students successfully completing online courses; and
57.25 	(4) develop innovative online courses or programming.
57.26 		Subd. 2.Establishment; eligibility. To promote the outcomes of subdivision 
57.27 	1, a program is established to expand online learning courses and programs to school 
57.28 	districts, charter schools, consortiums of school districts, intermediate school districts, 
57.29 	service cooperatives, or higher education institutions. The commissioner shall develop 
57.30 	a competitive grant process for the purpose of determining recipients. Districts, charter 
57.31 	schools, consortiums of school districts, intermediate school districts, service cooperatives, 
57.32 	or higher education institutions must propose to use the grant funds that support the 
57.33 	outcomes of subdivision 1 in a manner that develops or expands online courses or 
57.34 	programs in one or more of the following areas:
57.35 	(1) dual high school or postsecondary education credit;
58.1 	(2) science, technology, engineering, and math fields;
58.2 	(3) preadvanced placement, advanced placement, or international baccalaureate; and
58.3 	(4) remediation efforts.
58.4 		Subd. 3.Application and review process; funding priority. Districts, charter 
58.5 	schools, consortiums of school districts, service cooperatives, intermediate school 
58.6 	districts, or higher education institutions that are eligible under subdivision 2 may 
58.7 	apply to the commissioner, in the form and manner the commissioner determines, for 
58.8 	competitive funding to achieve the grant goals. The application must detail the specific 
58.9 	efforts the applicant intends to undertake to achieve the components, consistent with 
58.10 	subdivisions 1 and 2, and propose the budget detailing the district's, charter school's, 
58.11 	consortiums of school districts', intermediate districts', service cooperative's, or higher 
58.12 	education institution's current and proposed expenditures. The proposed budget must 
58.13 	demonstrate that the applicant's efforts will support the components of subdivisions 1 and 
58.14 	2. Expenditures for administration must not exceed five percent of the proposed budget. 
58.15 	The commissioner may require an applicant to provide additional information. When 
58.16 	reviewing applications, the commissioner must determine whether the applicant satisfied 
58.17 	all the requirements in this subdivision and subdivisions 1 and 2.
58.18 		Subd. 4.Application review; grant awards. The commissioner shall award grants 
58.19 	to eligible applicants that meet the requirements of subdivisions 1 and 2.
58.20 	The commissioner shall award grants as funding allows and, to the extent feasible, 
58.21 	must distribute the grant awards on an equitable geographical basis. The commissioner 
58.22 	must base the amount of the grant award on the number of students in the participating 
58.23 	district charter school, consortium of school districts, intermediate school, or higher 
58.24 	education institutions. Expenditures of the grant proceeds must be consistent with budget 
58.25 	information the grantee periodically submits to the commissioner. School districts and 
58.26 	charter schools that submit an application and receive funding under this section must 
58.27 	use the funding, consistent with the components in subdivisions 1 and 2 as stated in the 
58.28 	application. The commissioner may spend up to one percent of the appropriation for 
58.29 	administering the program.
58.30 		Subd. 5.Annual reports. Each applicant that receives a grant under this section 
58.31 	must demonstrate and measure the extent to which the applicant achieved the outcomes set 
58.32 	forth in the grant application and consistent with subdivisions 1 and 2. This report is due 
58.33 	at the end of the grant period and must be submitted to the commissioner in the form and 
58.34 	manner the commissioner determines. The commissioner must make summary data about 
58.35 	this program available to the education policy and finance committees of the legislature by 
58.36 	February 15, 2010. Each applicant that receives a grant under this section must annually 
59.1 	report to the commissioner, consistent with the uniform financial accounting and reporting 
59.2 	standards, its actual expenditures for online learning courses.

59.3 	EFFECTIVE DATE. This section is effective for revenue for fiscal years 2008 
59.4 	and 2009.

59.5 	Sec. 6. APPROPRIATIONS.
 59.6 		Subdivision 1.Department of Education. The sums indicated in this section are 
59.7 	appropriated from the general fund to the Department of Education for the fiscal years 
59.8 	designated.
59.9 		Subd. 2.Health and safety revenue. For health and safety aid according to 
59.10 	Minnesota Statutes, section 123B.57, subdivision 5:

59.11		$
	190,000
	.....
	2008
	
59.12		$
	179,000
	.....
	2009
	
59.13 	The 2008 appropriation includes $20,000 for 2007 and $170,000 for 2008.
59.14 	The 2009 appropriation includes $18,000 for 2008 and $161,000 for 2009.
59.15 		Subd. 3.Debt service equalization. For debt service aid according to Minnesota 
59.16 	Statutes, section 123B.53, subdivision 6:

59.17		$
	14,913,000
	.....
	2008
	
59.18		$
	11,783,000
	.....
	2009
	
59.19 	The 2008 appropriation includes $1,765,000 for 2007 and $13,148,000 for 2008.
59.20 	The 2009 appropriation includes $1,460,000 for 2008 and $10,323,000 for 2009.
59.21 		Subd. 4.Alternative facilities bonding aid. For alternative facilities bonding aid, 
59.22 	according to Minnesota Statutes, section 123B.59, subdivision 1:

59.23		$
	19,287,000
	.....
	2008
	
59.24		$
	19,287,000
	.....
	2009
	
59.25 	The 2008 appropriation includes $1,928,000 for 2007 and $17,359,000 for 2008.
59.26 	The 2009 appropriation includes $1,928,000 for 2008 and $17,359,000 for 2009.
59.27 		Subd. 5.Equity in telecommunications access. For equity in telecommunications 
59.28 	access:

59.29		$
	3,750,000
	.....
	2008
	
59.30		$
	3,750,000
	.....
	2009
	
60.1 	If the appropriation amount is insufficient, the commissioner shall reduce the 
60.2 	reimbursement rate in Minnesota Statutes, section 125B.26, subdivisions 4 and 5, and the 
60.3 	revenue for fiscal years 2008 and 2009 shall be prorated.
60.4 	Any balance in the first year does not cancel but is available in the second year.
60.5 		Subd. 6.School technology grants. For school technology grants under section 4:

60.6		$
	16,500,000
	.....
	2008
	
60.7		$
	16,500,000
	.....
	2009
	
60.8 	This is a onetime appropriation.
60.9 		Subd. 7.Deferred maintenance aid. For deferred maintenance aid, according to 
60.10 	Minnesota Statutes, section 123B.591, subdivision 4:

60.11		$
	3,402,000
	.....
	2008
	
60.12		$
	2,712,000
	.....
	2009
	
60.13 	The 2008 appropriation includes $0 for 2007 and $3,402,000 for 2008.
60.14 	The 2009 appropriation includes $378,000 for 2008 and $2,334,000 for 2009.
60.15 		Subd. 8.Online learning grants. For online learning grants:

60.16		$
	2,500,000
	.....
	2008
	
60.17		$
	2,500,000
	.....
	2009
	
60.18 	This is a onetime appropriation.
60.19 		Subd. 9.Rocori school district. For Rocori school district for Project Serv:

60.20		$
	53,000
	.....
	2008

60.21 	ARTICLE 5
60.22 	NUTRITION AND ACCOUNTING

60.23 	Section 1. Minnesota Statutes 2006, section 123B.10, subdivision 1, is amended to read:
60.24 		Subdivision 1.Budgets. (a) For the purposes of this subdivision:
60.25 	 (1) "direct classroom expenditures" are instructional expenditures under the uniform 
60.26 	financial accounting and reporting standards (UFARS), excluding tuition payments to 
60.27 	other Minnesota school districts, capital expenditures, and expenditures for athletics, other 
60.28 	cocurricular activities, and extracurricular activities; and
60.29 	(2) "total K-12 general operating expenditures" are the total general fund 
60.30 	expenditures for kindergarten through grade 12 under UFARS, excluding tuition payments 
60.31 	to other Minnesota school districts, pupil transportation expenditures, and capital 
60.32 	expenditures.
61.1 	(b) Every board must formally adopt, and may formally revise, a minimum percent 
61.2 	of total K-12 general operating expenditures that the board annually will allocate to direct 
61.3 	classroom expenditures. Every board must evaluate its allocation on an ongoing basis to 
61.4 	determine whether district expenditures are aligned with the district's academic goals.
61.5 	(c) Every board must publish revenue and expenditure budgets for the current year 
61.6 	and the actual revenues, expenditures, fund balances for the prior year and projected fund 
61.7 	balances for the current year in a form prescribed by the commissioner within one week 
61.8 	of the acceptance of the final audit by the board, or November 30, whichever is earlier. 
61.9 	The report must clearly show the percent of a district's total K-12 general operating 
61.10 	expenditures that is allocated to direct classroom expenditures. The forms prescribed must 
61.11 	be designed so that year to year comparisons of revenue, expenditures and fund balances 
61.12 	can be made. These budgets, reports of revenue, expenditures and fund balances must be 
61.13 	published in a qualified newspaper of general circulation in the district or on the district's 
61.14 	official Web site. If published on the district's official Web site, the district must also 
61.15 	publish an announcement in a qualified newspaper of general circulation in the district that 
61.16 	includes the Internet address where the information has been posted.

61.17 	Sec. 2. APPROPRIATIONS.
 61.18 		Subdivision 1.Department of Education. The sums indicated in this section are 
61.19 	appropriated from the general fund to the Department of Education for the fiscal years 
61.20 	designated.
61.21 		Subd. 2.School lunch. For school lunch aid according to Minnesota Statutes, 
61.22 	section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

61.23		$
	10,516,000
	.....
	2008
	
61.24		$
	10,642,000
	.....
	2009
	
61.25 		Subd. 3.Traditional school breakfast; kindergarten milk. For traditional school 
61.26 	breakfast aid and kindergarten milk under Minnesota Statutes, sections 124D.1158 and 
61.27 	124D.118:

61.28		$
	5,400,000
	.....
	2008
	
61.29		$
	5,515,000
	.....
	2009
	
61.30 		Subd. 4.Summer school service replacement aid. For summer food service 
61.31 	replacement aid under Minnesota Statutes, section 124D.119:

61.32		$
	150,000
	.....
	2008
	
61.33		$
	150,000
	.....
	2009

62.1 	ARTICLE 6
62.2 	LIBRARIES

62.3 	Section 1. COMPREHENSIVE LIBRARY STRUCTURE STUDY.
 62.4 	The commissioner of education must contract with an independent consultant that 
62.5 	has extensive experience working with libraries to evaluate the structure of the library 
62.6 	system and services provided by Minnesota libraries that receive public funding. The 
62.7 	study must include all types of libraries in the state such as academic, government, special, 
62.8 	school, and public libraries, including collaborative entities such as MINITEX and state 
62.9 	library services. The consultant must: 
62.10 	(1) conduct an in-depth analysis of the current library system structure and services, 
62.11 	identifying best practices, duplication of services, and opportunities to improve efficiency; 
62.12 	and 
62.13 	(2) prepare a report to be submitted to the Department of Education, documenting 
62.14 	and reporting findings, and recommending, where necessary, changes to increase 
62.15 	efficiency and cooperation in the delivery of service and use of public funds.
62.16 	The commissioner must report the findings of the study to the legislative committees 
62.17 	having jurisdiction over kindergarten through grade 12 finance before January 15, 2009, 
62.18 	and shall recommend any required changes in statute that will result in a more streamlined 
62.19 	and efficient library structure.

62.20 	Sec. 2. DEPARTMENT OF EDUCATION; LIBRARY APPROPRIATIONS.
 62.21 		Subdivision 1.Department of Education. The sums indicated in this section are 
62.22 	appropriated from the general fund to the Department of Education for the fiscal years 
62.23 	designated.
62.24 		Subd. 2.Basic system support. For basic system support grants under Minnesota 
62.25 	Statutes, section 134.355:

62.26		$
	8,725,000
	.....
	2008
	
62.27		$
	8,900,000
	.....
	2009
	
62.28 	The 2008 appropriation includes $857,000 for 2007 and $7,868,000 for 2008.
62.29 	The 2009 appropriation includes $874,000 for 2008 and $8,026,000 for 2009.
62.30 		Subd. 3.Multicounty, multitype library systems. For grants under Minnesota 
62.31 	Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:

63.1		$
	903,000
	.....
	2008
	
63.2		$
	903,000
	.....
	2009
	
63.3 	The 2008 appropriation includes $90,000 for 2007 and $813,000 for 2008.
63.4 	The 2009 appropriation includes $90,000 for 2008 and $813,000 for 2009.
63.5 		Subd. 4.Electronic library for Minnesota. For statewide licenses to online 
63.6 	databases selected in cooperation with the Minnesota Office of Higher Education for 
63.7 	school media centers, public libraries, state government agency libraries, and public 
63.8 	or private college or university libraries:

63.9		$
	900,000
	.....
	2008
	
63.10		$
	900,000
	.....
	2009
	
63.11 	Any balance in the first year does not cancel but is available in the second year.
63.12 		Subd. 5.Regional library telecommunications aid. For regional library 
63.13 	telecommunications aid under Minnesota Statutes, section 134.355:

63.14		$
	1,200,000
	.....
	2008
	
63.15		$
	1,200,000
	.....
	2009
	
63.16 	The 2008 appropriation includes $120,000 for 2007 and $1,080,000 for 2008.
63.17 	The 2009 appropriation includes $120,000 for 2008 and $1,080,000 for 2009.
63.18 		Subd. 6.Comprehensive library study contract. For a contract to examine 
63.19 	Minnesota's library structure under section 1:

63.20		$
	200,000
	.....
	2008
	
63.21 	This appropriation is available through June 30, 2009. This is a onetime 
63.22 	appropriation.

63.23 	ARTICLE 7
63.24 	EARLY CHILDHOOD EDUCATION

63.25 	Section 1. Minnesota Statutes 2006, section 124D.13, subdivision 1, is amended to 
63.26 	read:
63.27 		Subdivision 1.Establishment; purpose. A district that provides a community 
63.28 	education program under sections 124D.18 and 124D.19 may establish an early childhood 
63.29 	family education program. Two or more districts, each of which provides a community 
63.30 	education program, may cooperate to jointly provide an early childhood family education 
63.31 	program. The purpose of the early childhood family education program is to provide 
63.32 	parenting education to support children's learning and development.

64.1 	Sec. 2. Minnesota Statutes 2006, section 124D.13, subdivision 2, is amended to read:
64.2 		Subd. 2.Program characteristics requirements. (a) Early childhood family 
64.3 	education programs are programs for children in the period of life from birth to 
64.4 	kindergarten, for the parents and other relatives of these children, and for expectant 
64.5 	parents. To the extent that funds are insufficient to provide programs for all children, 
64.6 	early childhood family education programs should emphasize programming for a child 
64.7 	from birth to age three and encourage parents and other relatives to involve four- and 
64.8 	five-year-old children in school readiness programs, and other public and nonpublic early 
64.9 	learning programs. A district may not limit participation to school district residents. Early 
64.10 	childhood family education programs may include the following must provide:
64.11 	(1) programs to educate parents and other relatives about the physical, mental, 
64.12 	and emotional development of children;
64.13 	(2) programs to enhance the skills of parents and other relatives in providing for their 
64.14 	children's learning and development structured learning activities requiring interaction 
64.15 	between children and their parents or relatives;
64.16 	(3) structured learning experiences activities for children and parents and other 
64.17 	relatives that promote children's development and positive interaction with peers, which 
64.18 	are held while parents or relatives attend parent education classes;
64.19 	(4) activities designed to detect children's physical, mental, emotional, or behavioral 
64.20 	problems that may cause learning problems;
64.21 	(5) activities and materials designed to encourage self-esteem, skills, and behavior 
64.22 	that prevent sexual and other interpersonal violence;
64.23 	(6) educational materials which may be borrowed for home use;
64.24 	(7) (4) information on related community resources;
64.25 	(8) programs to prevent (5) information, materials, and activities that support the 
64.26 	safety of children, including prevention of child abuse and neglect; and
64.27 	(9) other programs or activities to improve the health, development, and school 
64.28 	readiness of children; or
64.29 	(10) activities designed to maximize development during infancy.
64.30 	(6) a community outreach plan to ensure participation by families who reflect the 
64.31 	racial, cultural, and economic diversity of the school district.
64.32 	The programs must not include activities for children that do not require substantial 
64.33 	involvement of the children's parents or other relatives. The programs program must be 
64.34 	reviewed periodically to assure the instruction and materials are not racially, culturally, or 
64.35 	sexually biased. The programs must encourage parents to be aware of practices that may 
64.36 	affect equitable development of children.
65.1 	(b) For the purposes of this section, "relative" or "relatives" means noncustodial 
65.2 	grandparents or other persons related to a child by blood, marriage, adoption, or foster 
65.3 	placement, excluding parents.

65.4 	Sec. 3. Minnesota Statutes 2006, section 124D.13, is amended by adding a subdivision 
65.5 	to read:
65.6 		Subd. 13.Plan and program data submission requirements. (a) An early 
65.7 	childhood family education program must submit a biennial plan addressing the 
65.8 	requirements of subdivision 3 for approval by the commissioner. The plan must also 
65.9 	describe how the program provides parenting education and ensures participation of 
65.10 	families representative of the school district. A school district must submit the plan for 
65.11 	approval by the commissioner in the form and manner prescribed by the commissioner. 
65.12 	One-half of districts, as determined by the commissioner, must first submit a biennial plan 
65.13 	by April 1, 2009, and the remaining districts must first submit a plan by April 1, 2010.
65.14 	(b) Districts receiving early childhood family education revenue under section 
65.15 	124D.135 must submit annual program data to the department by July 15 in the form and 
65.16 	manner prescribed by the commissioner.
65.17 	(c) Beginning with levies for fiscal year 2011, a school district must submit its annual 
65.18 	program data to the department before it may certify a levy under section 124D.135. 
65.19 	Districts selected by the commissioner to submit a biennial plan by April 1, 2010, must 
65.20 	also have an approved plan on file with the commissioner before certifying a levy under 
65.21 	section 124D.135 for fiscal year 2011. Beginning with levies for fiscal year 2012, all 
65.22 	districts must submit annual program data and have an approved biennial plan on file with 
65.23 	the commissioner before certifying a levy under section 124D.135.

65.24 	Sec. 4. Minnesota Statutes 2006, section 124D.135, subdivision 3, is amended to read:
65.25 		Subd. 3.Early childhood family education levy. For fiscal year 2001 to obtain 
65.26 	early childhood family education revenue, a district may levy an amount equal to the tax 
65.27 	rate of .5282 percent times the adjusted tax capacity of the district for the year preceding 
65.28 	the year the levy is certified. Beginning with levies for fiscal year 2002, By September 
65.29 	30 of each year, the commissioner shall establish a tax rate for early childhood family
65.30 	education revenue that raises $21,027,000 for fiscal year 2002 and $22,135,000 in each
65.31 	fiscal year 2003 and each subsequent year. If the amount of the early childhood family 
65.32 	education levy would exceed the early childhood family education revenue, the early 
65.33 	childhood family education levy must equal the early childhood family education revenue.
65.34 	Beginning with levies for fiscal year 2011, a district may not certify an early childhood 
66.1 	family education levy unless it has met the annual program data reporting and biennial 
66.2 	plan requirements under section 124D.13, subdivision 13.

66.3 	Sec. 5. Minnesota Statutes 2006, section 124D.135, subdivision 5, is amended to read:
66.4 		Subd. 5.Use of revenue restricted. Early childhood family education revenue may 
66.5 	be used only for early childhood family education programs.
66.6 	(a) Not more than five percent of early childhood family education revenue, as 
66.7 	defined in subdivision 7, may be used to administer early childhood family education 
66.8 	programs.
66.9 	(b) An early childhood family education program may use up to ten percent of its 
66.10 	early childhood family education revenue as defined in subdivision 1, including revenue 
66.11 	from participant fees, for equipment that is used in the early childhood family education 
66.12 	program. This revenue may only be used for the following purposes:
66.13 	(1) to purchase or lease computers and related materials; and
66.14 	(2) to purchase or lease equipment for instruction for participating children and 
66.15 	their families.
66.16 	If a district anticipates an unusual circumstance requiring its early childhood family 
66.17 	education program capital expenditures to exceed the ten percent limitation, prior approval 
66.18 	to exceed the limit must be obtained in writing from the commissioner.

66.19 	Sec. 6. Minnesota Statutes 2006, section 124D.135, subdivision 6, is amended to read:
66.20 		Subd. 6.Home visiting levy. A district that is eligible to levy for early childhood 
66.21 	family education under subdivision 3 and that enters into a collaborative agreement to 
66.22 	provide education services and social services to families with young children may levy 
66.23 	an amount equal to $1.60 times the number of people under five years of age residing in 
66.24 	the district on September 1 of the last school year. Levy revenue under this subdivision 
66.25 	must not be included as revenue under subdivision 1. The revenue must be used for home 
66.26 	visiting programs under section 124D.13, subdivision 4. 

66.27 	Sec. 7. [124D.163] TARGETED TRAINING OF EARLY CHILDHOOD 
66.28 	PROFESSIONALS TO IMPROVE SCHOOL READINESS.
66.29 		Subdivision 1.Establishment; purpose. The commissioner of education shall 
66.30 	provide a training program for the purpose of improving the school readiness of 
66.31 	prekindergarten children.
66.32 		Subd. 2.Eligible participants. The training program is available to all staff in 
66.33 	school readiness programs as defined in section 124D.15, Head Start programs as defined 
67.1 	in section 119A.50, and child care centers as defined in chapter 245A. The commissioner 
67.2 	of education shall consult with the commissioner of human services to identify child care 
67.3 	center program participants and implement the training program for child care center 
67.4 	program participants.
67.5 		Subd. 3.Training content. The commissioner shall develop three foundational 
67.6 	and sequential training modules on child observation, child and program assessment, 
67.7 	and curriculum planning.
67.8 		Subd. 4.Availability. To the extent practical, the training will be made available 
67.9 	throughout the state on an ongoing basis. In addition to the geographic availability, the 
67.10 	commissioner must consider the availability of training to meet the needs of diverse 
67.11 	cultural groups. Training materials may be translated and training may be delivered in 
67.12 	other languages as determined by the commissioner. The training may be provided 
67.13 	through a variety of methods that may include on-site and Web-based delivery.

67.14 	Sec. 8. [124D.164] IMPROVE EDUCATIONAL OFFERINGS IN SCHOOL 
67.15 	READINESS, HEAD START, AND CHILD CARE PROGRAMS.
67.16 		Subdivision 1.Establishment; purpose. A program is established to improve the 
67.17 	educational offerings in school readiness, Head Start, and licensed child care programs.
67.18 		Subd. 2.Recipients of services. A recipient of services must be a:
67.19 	(1) licensed child care center as defined in chapter 245A that is eligible to participate 
67.20 	in the federal Child and Adult Care Food Program;
67.21 	(2) federally designated Head Start program as defined in section 119A.50; or
67.22 	(3) a school readiness program as defined in section 124D.15 with at least 25 percent 
67.23 	of the children served in the program qualifying for free and reduced price lunch.
67.24 		Subd. 3.Required program components. A school district receiving funds under 
67.25 	this section must provide the following services to the designated recipients of services 
67.26 	identified in its application:
67.27 	(1) compensatory instruction that accelerates children's literacy and language 
67.28 	development and mathematical thinking; and
67.29 	(2) ongoing assessment of children's progress aligned with early learning guidelines. 
67.30 	The compensatory instruction must be provided by a public school teacher with a valid 
67.31 	early childhood license for at least three hours per day for four days per week for children 
67.32 	in the year prior to kindergarten entrance. Funds cannot be used to supplant existing 
67.33 	school readiness expenditures authorized under section 124D.16.
68.1 		Subd. 4.Application process and requirements. (a) A district must submit an 
68.2 	application to the commissioner of education in the form and manner prescribed by the 
68.3 	commissioner.
68.4 	(b) The application must include a plan that:
68.5 	(1) identifies the program sites where services will be provided;
68.6 	(2) provides for instructional content and activities of sufficient length and intensity 
68.7 	to address learning needs of children most at risk of not being fully prepared for 
68.8 	kindergarten;
68.9 	(3) provides for instruction that accelerates literacy and language development 
68.10 	and mathematical thinking;
68.11 	(4) integrates the language, literacy, and mathematical learning components with 
68.12 	ongoing program curriculum; and
68.13 	(5) incorporates formal and ongoing assessment of children's progress aligned to 
68.14 	early learning guidelines at program entrance and at program exit.
68.15 		Subd. 5.Selection and award. When reviewing an application, the commissioner 
68.16 	of education must determine whether all the requirements of subdivision 4 are met. The 
68.17 	commissioner must consider geographical distribution of funds, as well as a distribution 
68.18 	of funds that reflects the cultural diversity of the service area. The commissioner of 
68.19 	education will consult with the commissioner of human services in the development and 
68.20 	implementation of the application review and award process. Programs receiving awards 
68.21 	under this section are eligible for continued funding if program requirements are met 
68.22 	according to the standards established by the commissioner of education and funds are 
68.23 	appropriated.

68.24 	Sec. 9. [124D.165] EARLY CHILDHOOD SCHOLARSHIPS.
68.25 		Subdivision 1.Purpose. The commissioner must establish an early childhood 
68.26 	scholarship fund to improve the school readiness of prekindergarten children at risk 
68.27 	of being unprepared for kindergarten. Scholarships are available for the purpose of 
68.28 	participating in an approved program as specified in subdivision 4 the year prior to 
68.29 	kindergarten entrance.
68.30 		Subd. 2.Eligibility. A parent or legal guardian of a four-year-old child with a 
68.31 	household income that does not exceed 180 percent of the federal poverty guidelines, 
68.32 	adjusted for family size, is eligible to apply for an annual scholarship of up to $4,000 for 
68.33 	each eligible child.
68.34 		Subd. 3.Scholarship application, award, and process. Parents or guardians 
68.35 	meeting the eligibility requirements defined in subdivision 2 may apply for a scholarship 
69.1 	certificate. Application must be made according to the form and manner prescribed by the 
69.2 	commissioner. The certificates must be redeemable for instruction at an approved early 
69.3 	childhood program, as specified in subdivision 4, for up to one year from the date of 
69.4 	issue or until the child for whom the scholarship is designated enrolls in kindergarten, 
69.5 	whichever occurs first. The commissioner shall annually award scholarship certificates to 
69.6 	eligible applicants in the order applications are received until all funds available for the 
69.7 	year have been obligated. Recipients may not transfer a scholarship certificate to another 
69.8 	person. The parent or guardian may transfer the scholarship certificate to another approved 
69.9 	early childhood program according to requirements established by the commissioner.
69.10 		Subd. 4.Program approval. A program must be approved by the commissioner 
69.11 	to be eligible to receive state early childhood scholarship program funds on behalf of 
69.12 	an enrolled scholarship certificate recipient. Early childhood programs must apply for 
69.13 	approval in the form and manner prescribed by the commissioner and must be:
69.14 	(1) a federally designated Head Start program as defined in section 119A.50;
69.15 	(2) a school readiness program as defined in section 124D.15; or
69.16 	(3) a licensed child care program as defined in chapter 245A.
69.17 	The application must include evidence that the program provides research-based 
69.18 	instruction to support school readiness. Programs must submit any program changes 
69.19 	related to approval as they occur and must reapply for approval every three years.
69.20 		Subd. 5.Payments to approved programs. The commissioner shall issue 
69.21 	payments of scholarship funds on a reimbursement basis to approved programs as defined 
69.22 	in subdivision 4 for services provided that are comparable to service costs for program 
69.23 	participants who do not receive a scholarship. Scholarship funds may not be used for 
69.24 	services that are available at no cost to nonscholarship recipient families. Approved 
69.25 	programs must maintain documentation of services provided and the commissioner shall 
69.26 	verify information submitted by approved programs to ensure appropriate services were 
69.27 	provided to eligible recipients for whom state early childhood scholarship funds are paid. 
69.28 	Scholarship funds awarded to families receiving other forms of assistance, such as child 
69.29 	care assistance, must be used to supplement and may not be used to supplant services 
69.30 	provided through that assistance.
69.31 		Subd. 6.Scholarship not income for purposes of other publicly funded 
69.32 	programs. Notwithstanding any law to the contrary, the receipt of a scholarship does not 
69.33 	count as earned income for the purposes of medical assistance, MinnesotaCare, MFIP, 
69.34 	child care assistance, or Head Start programs.

69.35 	Sec. 10. APPROPRIATIONS.
 70.1 		Subdivision 1.Department of Education. The sums indicated in this section are 
70.2 	appropriated from the general fund to the Department of Education for the fiscal years 
70.3 	designated.
70.4 		Subd. 2.School readiness. For revenue for school readiness programs under 
70.5 	Minnesota Statutes, sections 124D.15 and 124D.16:

70.6		$
	9,095,000
	.....
	2008
	
70.7		$
	9,095,000
	.....
	2009
	
70.8 	The 2008 appropriation includes $909,000 for 2007 and $8,186,000 for 2008.
70.9 	The 2009 appropriation includes $909,000 for 2008 and $8,186,000 for 2009.
70.10 		Subd. 3.Early childhood family education aid. For early childhood family 
70.11 	education aid under Minnesota Statutes, section 124D.135:

70.12		$
	18,442,000
	.....
	2008
	
70.13		$
	18,871,000
	.....
	2009
	
70.14 	The 2008 appropriation includes $1,801,000 for 2007 and $16,641,000 for 2008.
70.15 	The 2009 appropriation includes $1,849,000 for 2008 and $17,022,000 for 2009.
70.16 		Subd. 4.Health and developmental screening aid. For health and developmental 
70.17 	screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

70.18		$
	3,207,000
	.....
	2008
	
70.19		$
	3,371,000
	.....
	2009
	
70.20 	The 2008 appropriation includes $293,000 for 2007 and $2,914,000 for 2008.
70.21 	The 2009 appropriation includes $323,000 for 2008 and $3,048,000 for 2009.
70.22 		Subd. 5.Head Start program. For Head Start programs under Minnesota Statutes, 
70.23 	section 119A.52:

70.24		$
	19,100,000
	.....
	2008
	
70.25		$
	19,100,000
	.....
	2009
	
70.26 		Subd. 6.Educate parents partnership. For the educate parents partnership under 
70.27 	Minnesota Statutes, section 124D.129:

70.28		$
	50,000
	.....
	2008
	
70.29		$
	50,000
	.....
	2009
	
70.30 		Subd. 7.Kindergarten entrance assessment initiative and intervention 
70.31 	program. For the kindergarten entrance assessment initiative and intervention program 
70.32 	under Minnesota Statutes, section 124D.162:

71.1		$
	287,000
	.....
	2008
	
71.2		$
	287,000
	.....
	2009
	
71.3 		Subd. 8.Early childhood Part C. For the expansion of early childhood Part C 
71.4 	services:

71.5		$
	102,000
	.....
	2008
	
71.6 	This appropriation includes $102,000 for 2007 and $0 for 2008.
71.7 		Subd. 9.Early childhood family education program accountability initiative.
 71.8 	For the implementation of the early childhood family education program accountability 
71.9 	initiative under Minnesota Statutes, section 124D.135:

71.10		$
	211,000
	.....
	2008
	
71.11		$
	196,000
	.....
	2009
	
71.12 	Any balance in the first year does not cancel but is available in the second year. The 
71.13 	base for this program in fiscal year 2010 and later is $196,000.
71.14 		Subd. 10.Targeted training of early childhood professionals. For the targeted 
71.15 	training of early childhood professionals under Minnesota Statutes, section 124D.163:

71.16		$
	155,000
	.....
	2008
	
71.17		$
	70,000
	.....
	2009
	
71.18 	Any balance in the first year does not cancel but is available in the second year. The 
71.19 	base for this program in fiscal year 2010 and later is $70,000.
71.20 		Subd. 11.Improve educational components in school readiness, Head Start, 
71.21 	and child care programs. For the educational components program under Minnesota 
71.22 	Statutes, section 124D.164:

71.23		$
	4,183,000
	.....
	2008
	
71.24		$
	4,183,000
	.....
	2009
	
71.25 	Of this amount, $172,500 is to administer the grant program. Any balance in the first 
71.26 	year does not cancel but is available in the second year.
71.27 		Subd. 12.Early childhood scholarship program. For the early childhood 
71.28 	scholarship program under Minnesota Statutes, section 124D.165:

71.29		$
	392,000
	.....
	2008
	
71.30		$
	28,509,000
	.....
	2009
	
71.31 	Of these amounts, $392,000 in fiscal year 2008 and $342,000 in fiscal year 2009 
71.32 	are to administer the scholarship program.
72.1 	Any balance in the first year does not cancel but is available in the second year. 
72.2 	The base for this program in fiscal year 2010 and later is $28,509,000. Of this amount, 
72.3 	$342,000 is to administer the scholarship program.

72.4 	ARTICLE 8
72.5 	PREVENTION

72.6 	Section 1. APPROPRIATION.
 72.7 		Subdivision 1.Department of Education. The sums indicated in this section are 
72.8 	appropriated from the general fund to the Department of Education for the fiscal years 
72.9 	designated.
72.10 		Subd. 2.Community education aid. For community education aid under 
72.11 	Minnesota Statutes, section 124D.20:

72.12		$
	1,299,000
	.....
	2008
	
72.13		$
	797,000
	.....
	2009
	
72.14 	The 2008 appropriation includes $195,000 for 2007 and $1,104,000 for 2008.
72.15 	The 2009 appropriation included $122,000 for 2008 and $675,000 for 2009.
72.16 		Subd. 3.Adults with disabilities program aid. For adults with disabilities 
72.17 	programs under Minnesota Statutes, section 124D.56:

72.18		$
	710,000
	.....
	2008
	
72.19		$
	710,000
	.....
	2009
	
72.20 	The 2008 appropriation includes $71,000 for 2007 and $639,000 for 2008.
72.21 	The 2009 appropriation includes $71,000 for 2008 and $639,000 for 2009.
72.22 		Subd. 4.Hearing-impaired adults. For programs for hearing-impaired adults 
72.23 	under Minnesota Statutes, section 124D.57:

72.24		$
	70,000
	.....
	2008
	
72.25		$
	70,000
	.....
	2009
	
72.26 		Subd. 5.School-age care revenue. For extended day aid under Minnesota Statutes, 
72.27 	section 124D.22:

72.28		$
	1,000
	.....
	2008
	
72.29		$
	1,000
	.....
	2009
	
72.30 	The 2008 appropriation includes $0 for 2007 and $1,000 for 2008.
72.31 	The 2009 appropriation includes $0 for 2008 and $1,000 for 2009.

73.1 	ARTICLE 9
73.2 	SELF-SUFFICIENCY AND LIFELONG LEARNING

73.3 	Section 1. [119A.60] MINNESOTA FATHERHOOD LEADERSHIP INITIATIVE.
73.4 		Subdivision 1.Establishment; purpose. The Minnesota fatherhood leadership 
73.5 	initiative is established to strengthen the relationship of fathers to their children and 
73.6 	enhance responsible parenting across the state by improving and expanding fatherhood 
73.7 	services.
73.8 		Subd. 2.Program components. The commissioner of education shall establish 
73.9 	a program that includes community access grants, a fatherhood leadership certificate 
73.10 	program and technical assistance, training and resources for programs receiving 
73.11 	community access grants, and other programs working in coordination with the Minnesota 
73.12 	Fathers and Families Network.
73.13 	(a) Faith and community organizations may apply in the form and manner prescribed 
73.14 	by the commissioner for innovative community access grants for fatherhood initiatives 
73.15 	that include the following:
73.16 	(1) parenting and coparenting;
73.17 	(2) family law, child access, and parenting time services;
73.18 	(3) multiservice programming to address barriers in employment, education, health, 
73.19 	and mental health; and
73.20 	(4) on-site technical assistance and training.
73.21 	Community access grant recipients must participate in the evaluation described in 
73.22 	subdivision 3 and enroll a minimum of one staff member in the fatherhood leadership 
73.23 	certification program.
73.24 	(b) The commissioner shall fund one program to provide intensive year-long training 
73.25 	through a fatherhood leadership certificate program. The program must include:
73.26 	(1) participant pairing with a professional mentor;
73.27 	(2) graduate credits to participants;
73.28 	(3) curriculum developed by the advisory committee identified in subdivision 4; and
73.29 	(4) a program Web site.
73.30 	(c) The Minnesota Fathers and Families Network shall receive funding to provide 
73.31 	program coordination, recruitment, technical assistance, training, and resource materials 
73.32 	to partner organizations and organizations receiving community access grants.
73.33 		Subd. 3.Evaluation. An evaluation of each of the components of subdivision 2 
73.34 	must be completed by an independent evaluator.
74.1 		Subd. 4.Advisory committee. An advisory committee comprised of representatives 
74.2 	from the department, the Minnesota Fathers and Families Network, the Governor's 
74.3 	Council on Faith and Community Service Initiatives, and other appropriate members must 
74.4 	be established by the commissioner of education for the purpose of:
74.5 	(1) reviewing applications and selecting recipients of community access grants;
74.6 	(2) developing the fatherhood leadership certificate program curriculum; and
74.7 	(3) advising on technical assistance, training, and support.

74.8 	Sec. 2. APPROPRIATIONS.
 74.9 		Subdivision 1.Department of Education. The sums indicated in this section are 
74.10 	appropriated from the general fund to the Department of Education for the fiscal years 
74.11 	designated.
74.12 		Subd. 2.Adult basic education aid. For adult basic education aid under Minnesota 
74.13 	Statutes:

74.14		$
	37,486,000
	.....
	2007
	
74.15		$
	38,646,000
	.....
	2008
	
74.16		$
	39,807,000
	.....
	2009
	
74.17 	The 2007 appropriation includes $3,654,000 for 2006 and $33,832,000 for 2007.
74.18 	The 2008 appropriation includes $3,759,000 for 2007 and $34,887,000 for 2008.
74.19 	The 2009 appropriation includes $3,876,000 for 2008 and $35,931,000 for 2009.
74.20 		Subd. 3.GED tests. For payment of 60 percent of the costs of GED tests under 
74.21 	Laws 1993, chapter 224, article 4, section 44, subdivision 10:

74.22		$
	125,000
	.....
	2008
	
74.23		$
	125,000
	.....
	2009
	
74.24 		Subd. 4.Lead hazard reduction. For lead hazard reduction under Minnesota 
74.25 	Statutes, section 144.9512:

74.26		$
	100,000
	.....
	2008
	
74.27		$
	100,000
	.....
	2009
	
74.28 	The commissioner of education may transfer this appropriation to the commissioner 
74.29 	of health.
74.30 		Subd. 5.Adult literacy grants for recent immigrants. For adult literacy grants for 
74.31 	recent immigrants to Minnesota under Laws 2006, chapter 282, article 2, section 26:

74.32		$
	1,250,000
	.....
	2008

75.1 	EFFECTIVE DATE. Subdivision 2 is effective the day following final enactment.

75.2 	Sec. 3. APPROPRIATIONS; TANF.
 75.3 		Subdivision 1.Department of Education. The sums indicated in this section are 
75.4 	appropriated from the TANF fund to the Department of Education for the fiscal years 
75.5 	designated.
75.6 		Subd. 2.Minnesota fatherhood leadership initiative programs. For the 
75.7 	fatherhood leadership initiative program under Minnesota Statutes, section 124D.235:

75.8		$
	500,000
	.....
	2008
	
75.9		$
	500,000
	.....
	2009
	
75.10 	Of this amount, $50,000 is available each year to conduct the evaluation, coordinate 
75.11 	the program, support the advisory committee, and administer the program.
75.12 	Any balance in the first year does not cancel but is available in the second year.

75.13 	ARTICLE 10
75.14 	STATE AGENCIES

75.15 	Section 1. Minnesota Statutes 2006, section 517.08, subdivision 1c, is amended to read:
75.16 		Subd. 1c.Disposition of license fee. (a) Of the marriage license fee collected 
75.17 	pursuant to subdivision 1b, paragraph (a), $15 must be retained by the county. The local 
75.18 	registrar must pay $85 to the commissioner of finance to be deposited as follows:
75.19 	(1) $50 in the general fund;
75.20 	(2) $3 in the state government special revenue fund to be appropriated to the 
75.21 	commissioner of education public safety for parenting time centers under section 119A.37;
75.22 	(3) $2 in the special revenue fund to be appropriated to the commissioner of health 
75.23 	for developing and implementing the MN ENABL program under section 145.9255;
75.24 	(4) $25 in the special revenue fund is appropriated to the commissioner of 
75.25 	employment and economic development for the displaced homemaker program under 
75.26 	section 116L.96; and
75.27 	(5) $5 in the special revenue fund is appropriated to the commissioner of human 
75.28 	services for the Minnesota Healthy Marriage and Responsible Fatherhood Initiative under 
75.29 	section 256.742.
75.30 	(b) Of the $30 fee under subdivision 1b, paragraph (b), $15 must be retained by the 
75.31 	county. The local registrar must pay $15 to the commissioner of finance to be deposited 
75.32 	as follows:
75.33 	(1) $5 as provided in paragraph (a), clauses (2) and (3); and
76.1 	(2) $10 in the special revenue fund is appropriated to the commissioner of 
76.2 	employment and economic development for the displaced homemaker program under 
76.3 	section 116L.96.
76.4 	(c) The increase in the marriage license fee under paragraph (a) provided for in Laws 
76.5 	2004, chapter 273, and disbursement of the increase in that fee to the special fund for the 
76.6 	Minnesota Healthy Marriage and Responsible Fatherhood Initiative under paragraph (a), 
76.7 	clause (5), is contingent upon the receipt of federal funding under United States Code, title 
76.8 	42, section 1315, for purposes of the initiative.

76.9 	Sec. 2. RULEMAKING AUTHORITY.
 76.10 		Subdivision 1.Career and technical education. The commissioner of education 
76.11 	shall adopt rules under Minnesota Statutes, chapter 14, for the administration of career 
76.12 	and technical education programs for grades 7 through 12 under Minnesota Statutes, 
76.13 	sections 124D.452, 124D.4531, and 124D.454, to ensure that the career and technical levy 
76.14 	and programs can be administered to serve students under the current state and local 
76.15 	organizational structures.
76.16 		Subd. 2.Statewide graduation tests. The commissioner of education shall adopt 
76.17 	rules under Minnesota Statutes, chapter 14, for the administration of statewide graduation 
76.18 	tests.

76.19 	EFFECTIVE DATE. This section is effective the day following final enactment.

76.20 	Sec. 3. APPROPRIATIONS; DEPARTMENT OF EDUCATION.
 76.21 		Subdivision 1.Department of Education. Unless otherwise indicated, the sums 
76.22 	indicated in this section are appropriated from the general fund to the Department of 
76.23 	Education for the fiscal years designated.
76.24 		Subd. 2.Department. (a) For the Department of Education:

76.25		$
	22,425,000
	.....
	2008
	
76.26		$
	22,344,000
	.....
	2009
	
76.27 	Any balance in the first year does not cancel but is available in the second year.
76.28 	(b) $260,000 each year is for the Minnesota Children's Museum.
76.29 	(c) $41,000 each year is for the Minnesota Academy of Science.
76.30 	(d) $614,000 in fiscal year 2008 and $622,000 in fiscal year 2009 are for the Board 
76.31 	of Teaching.
76.32 	(e) $162,000 in fiscal year 2008 and $165,000 in fiscal year 2009 are for the Board 
76.33 	of School Administrators.
77.1 	(f) $204,000 in fiscal year 2008 is for rulemaking under section 1, subdivision 1.
77.2 	(g) $204,000 in fiscal year 2008 is for rulemaking under section 1, subdivision 2.
77.3 	(h) The expenditures of federal grants and aids as shown in the biennial budget 
77.4 	document and its supplements are approved and appropriated and shall be spent as 
77.5 	indicated.

77.6 	Sec. 4. APPROPRIATIONS; DEPARTMENT OF PUBLIC SAFETY.
 77.7 	The sums indicated in this section are appropriated from the state government 
77.8 	special revenue fund to the Department of Public Safety for the fiscal years designated to 
77.9 	fund parenting time centers as described in Minnesota Statutes, section 119A.37:

77.10		$
	192,000
	.....
	2007
	
77.11		$
	96,000
	.....
	2008
	
77.12		$
	96,000
	.....
	2009
	
77.13 	The 2007 appropriation includes $96,000 for 2006, and $96,000 for 2007.

77.14 	EFFECTIVE DATE. This section is effective the day following final enactment.

77.15 	Sec. 5. APPROPRIATIONS; MINNESOTA STATE ACADEMIES.
 77.16 	The sums indicated in this section are appropriated from the general fund to the 
77.17 	Minnesota State Academies for the Deaf and the Blind for the fiscal years designated:

77.18		$
	11,504,000
	.....
	2008
	
77.19		$
	11,527,000
	.....
	2009
	
77.20 	Any balance in the first year does not cancel but is available in the second year.

77.21 	Sec. 6. APPROPRIATIONS; PERPICH CENTER FOR ARTS EDUCATION.
 77.22 	The sums indicated in this section are appropriated from the general fund to the 
77.23 	Perpich Center for Arts Education for the fiscal years designated:

77.24		$
	6,808,000
	.....
	2008
	
77.25		$
	6,955,000
	.....
	2009
	
77.26 	Any balance in the first year does not cancel but is available in the second year.