1.1    .................... moves to amend H. F. No. 2475 as follows:
1.2Delete everything after the enacting clause and insert:


1.5    Section 1. [120B.17] MINNESOTA VIRTUAL EDUCATION PROGRAM.
1.6    Subdivision 1. Program. A state of Minnesota virtual education program is
1.7established for teachers and students to improve and enhance teacher instruction and
1.8student learning through integration of technology and online learning. The commissioner
1.9of education shall establish the program and develop a selection of online courses for
1.10students and lesson plans for teachers. The online student courses shall be established
1.11for grades 6 through 12.
1.12    Subd. 2. Scope and requirements. (a) The student courses and teacher lesson plans
1.13shall be developed by department staff, content experts, licensed Minnesota teachers,
1.14licensed administrators, and business representatives. The courses must be aligned to
1.15the Minnesota academic standards established in Minnesota Rules, chapter 3501. The
1.16commissioner of education, in working with qualified individuals, must establish at
1.17least ten student courses and teacher lesson plans that will be available to students and
1.18teachers no later than the 2009-2010 school year. The commissioner must give priority
1.19in the development of courses and lesson plans to science, technology, engineering,
1.20mathematics, and advanced courses. The courses available to students must be monitored
1.21and delivered by licensed Minnesota teachers under section 122A.16
1.22    (b) School districts and charter schools participating in the program must:
1.23    (1) submit a letter of intent to the commissioner of education;
1.24    (2) allow students to participate in the program;
1.25    (3) train teachers to monitor and deliver courses;
2.1    (4) allow students to receive graduation credit, if appropriate, for successful
2.2completion of the courses;
2.3    (5) issue grades to students enrolled in the online courses; and
2.4    (6) report progress to the department on student participation and completion rates.
2.5    Subd. 3. Report. The commissioner of education must submit a report to the chairs
2.6of the house of representatives and senate education committees by October 1, 2010,
2.7assessing the progress and development of the program.

2.8    Sec. 2. [122A.245] MINNESOTA TEACH PROGRAM.
2.9    Subdivision 1. Scope and requirements. (a) As an alternative to postsecondary
2.10teacher preparation programs, a teacher training program is established for qualified
2.11professionals to acquire an entrance license. Program providers, approved by the Board
2.12of Teaching under subdivision 3, may offer the program in the instructional fields of
2.13science, mathematics, world languages, English as a second language, special education,
2.14and other teacher shortage areas.
2.15    (b) To participate in the teacher training program, the teacher applicant must:
2.16    (1) have, at a minimum, a bachelor's degree from an accredited four-year
2.17postsecondary institution;
2.18    (2) have an undergraduate major or postbaccalaureate degree in the subject to be
2.19taught or in an equivalent or related subject area in which the applicant is seeking licensure;
2.20    (3) pass a skills examination in reading, writing, and mathematics required under
2.21section 122A.18;
2.22    (4) pass the Praxis II subject assessment for each subject area to be taught;
2.23    (5) have a cumulative grade point average of 3.0 or higher on a 4.0 scale for a
2.24bachelor's degree;
2.25    (6) show experience related to the subject to be taught; and
2.26    (7) show a district offer for employment as a teacher contingent on participating in
2.27an approved program described in subdivision 2.
2.28    Subd. 2. Program. A teacher training program under this section is one year in
2.29duration and must include:
2.30    (1) a preinduction preparation program that includes classroom management
2.31techniques and on-site classroom observation that is completed before the candidate is
2.32employed in the classroom;
2.33    (2) rigorous training that includes instruction in standards of effective practice
2.34and essential skills that include curriculum, instructional strategies, and classroom
3.1management presented after school or on Saturdays throughout the year leading to a
3.2teaching license and up to 15 graduate credits toward a master's degree in education;
3.3    (3) on-the-job mentoring, supervision, and evaluation arranged by the employing
3.4district that includes mentoring or a teacher induction program provided by both an
3.5experienced teacher licensed in the subject to be taught by the applicant and a supervisor
3.6affiliated with the postsecondary institution that provides training to the teacher applicant;
3.7    (4) three evaluations by an evaluation team composed of the mentor, the supervisor,
3.8the principal, and a training program member that include at least three classroom
3.9observations where the third evaluation contains the team's recommendation for licensure
3.10and where a written report of each evaluation is prepared; and
3.11    (5) a one-week intensive workshop that includes analysis and reflection of the first
3.12year of teaching after completing the school year.
3.13    Subd. 3. Program approval. An interested Minnesota public or private
3.14postsecondary institution must submit program proposals to the Board of Teaching for
3.15approval. Notwithstanding any law to the contrary, the Board of Teaching must develop
3.16criteria for approving teacher training programs under this section after considering the
3.17recommendations of an advisory group appointed by the Board of Teaching composed of,
3.18at a minimum, the commissioner of education or designee and representatives of school
3.19superintendents, principals, teachers, and postsecondary institutions, including those
3.20offering degrees in teaching preparation. School districts are eligible to hire professionals
3.21under this training program if they participate in the teacher selection process for entrance
3.22into the program. Applicants must directly apply to the approved program. The Minnesota
3.23Department of Education is responsible for implementing the program with approved
3.24program providers after approval from the Board of Teaching is granted.
3.25    Subd. 4. Eligibility license. Notwithstanding any law to the contrary, the Board of
3.26Teaching must issue to an applicant who successfully meets the criteria under subdivision
3.271, paragraph (b), a one-year eligibility license to teach at the employing district under
3.28subdivision 1, paragraph (b), clause (7). During the one-year eligibility period, the
3.29employing district must assign a mentor under subdivision 2, clause (3). The applicant
3.30teacher and teacher mentor must meet at least weekly throughout the school year on
3.31classroom and instructional issues.
3.32    Subd. 5. Standard entrance license. Notwithstanding any law to the contrary, the
3.33Board of Teaching must issue a standard entrance license to a training program licensee
3.34who successfully completes the program under subdivision 2, successfully teaches in a
3.35classroom for one complete school year, successfully passes the Praxis II principles of
4.1learning and teaching, receives a positive recommendation from the applicant's evaluation
4.2team, and who applies to the Board of Teaching for such license.
4.3    Subd. 6. Qualified teacher. A person with a valid eligibility license under
4.4subdivision 5 is a qualified teacher under section 122A.16.

4.5    Sec. 3. [122A.635] U TEACH PROGRAM.
4.6    Subdivision 1. Scope and requirements. A grant program is established to
4.7recruit, encourage, and provide courses for highly qualified undergraduate students
4.8enrolled in mathematics or science departments that have an interest in entering the
4.9teaching profession. Participating postsecondary institutions must use grant funds to
4.10recruit students enrolled in mathematics or science departments and offer these students
4.11courses in the college of education program. Postsecondary institutions may offer up to
4.12six courses tuition-free to participating students.
4.13    Subd. 2. Program approval. An interested Minnesota public or private
4.14postsecondary institution must submit a proposal in the form and manner prescribed by
4.15the commissioner to the Department of Education for approval. Applications must be
4.16approved no later than October 1, 2008.

4.17    Sec. 4. Minnesota Statutes 2006, section 122A.72, is amended by adding a subdivision
4.18to read:
4.19    Subd. 6. Teacher institute functions. A teacher institute shall perform functions
4.20according to this subdivision. The teacher institute shall assist teachers in providing
4.21advanced training during the summer months to licensed mathematics and science
4.22teachers in the areas of content knowledge and effective instruction practices. The teacher
4.23may be eligible for graduate-level credits upon successful completion of the institute. The
4.24application process and criteria for admission to the teacher institute shall be established
4.25by the commissioner of education.
4.26EFFECTIVE DATE.This section is effective for the 2008-2009 school year and
4.27later.

4.28    Sec. 5. [120B.299] DEFINITIONS.
4.29    Subdivision 1. Definitions. The definitions in this section apply to this chapter.
4.30    Subd. 2. Growth. "Growth" compares the difference between a student's
4.31achievement score at two distinct points in time.
4.32    Subd. 3. Value-added. "Value-added" are models that require longitudinal,
4.33student-level data and vertically scaled assessments to determine what portion of a
5.1student's growth can be explained by inputs related to the environment, school, teacher,
5.2and student, among other inputs.
5.3    Subd. 4. Improvement. "Improvement" compares the average achievement of two
5.4different groups of students at two different points in time. Growth, unlike improvement,
5.5allows educators to compare one student's achievement over time.
5.6    Subd. 5. State growth expectations. "State growth expectations" are an
5.7established statewide growth percentile or standard applicable to all students in a
5.8particular grade benchmarked to an established school year. Beginning in the 2008-2009
5.9school year, state growth expectations are benchmarked to 2007-2008 school year
5.10data until the commissioner next changes the vertically linked scale score. Each time
5.11the commissioner changes the vertically linked scale score, a recognized Minnesota
5.12assessment group composed of assessment and evaluation directors and staff and
5.13researchers, in collaboration with the Independent Office of Educational Accountability
5.14under section 120B.31, subdivision 3, must recommend new state growth expectations
5.15that the commissioner shall consider with the revised standards. For all newly established
5.16state growth expectations, the commissioner also must establish criteria for identifying
5.17schools and school districts that demonstrate exceptional growth in order to advance
5.18educators' professional development and to replicate programs that succeed in meeting
5.19students' diverse learning needs.
5.20EFFECTIVE DATE.This section is effective the day following final enactment.

5.21    Sec. 6. Minnesota Statutes 2007 Supplement, section 120B.30, is amended to read:
5.22120B.30 STATEWIDE TESTING AND REPORTING SYSTEM.
5.23    Subdivision 1. Statewide testing. (a) The commissioner, with advice from experts
5.24with appropriate technical qualifications and experience and stakeholders, consistent with
5.25subdivision 1a, shall include in the comprehensive assessment system, for each grade
5.26level to be tested, state-constructed tests developed from and aligned with the state's
5.27required academic standards under section 120B.021 and administered annually to all
5.28students in grades 3 through 8 and at the high school level. A state-developed test in a
5.29subject other than writing, developed after the 2002-2003 school year, must include both
5.30machine-scoreable and constructed response questions. The commissioner shall establish
5.31one or more months during which schools shall administer the tests to students each
5.32school year. For students enrolled in grade 8 before the 2005-2006 school year, only
5.33Minnesota basic skills tests in reading, mathematics, and writing shall fulfill students'
5.34basic skills testing requirements for a passing state notation. The passing scores of basic
5.35skills tests in reading and mathematics are the equivalent of 75 percent correct for students
6.1entering grade 9 in 1997 and thereafter, as based on the first uniform test administration of
6.2administered in February 1998.
6.3    (b) For students enrolled in grade 8 in the 2005-2006 school year and later, only the
6.4following options shall fulfill students' state graduation test requirements:
6.5    (1) for reading and mathematics:
6.6    (i) obtaining an achievement level equivalent to or greater than proficient as
6.7determined through a standard setting process on the Minnesota comprehensive
6.8assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing
6.9score as determined through a standard setting process on the graduation-required
6.10assessment for diploma in grade 10 for reading and grade 11 for mathematics or
6.11subsequent retests;
6.12    (ii) achieving a passing score as determined through a standard setting process on the
6.13state-identified language proficiency test in reading and the mathematics test for English
6.14language learners or the graduation-required assessment for diploma equivalent of those
6.15assessments for students designated as English language learners;
6.16    (iii) achieving an individual passing score on the graduation-required assessment
6.17for diploma as determined by appropriate state guidelines for students with an individual
6.18education plan or 504 plan;
6.19    (iv) obtaining achievement level equivalent to or greater than proficient as
6.20determined through a standard setting process on the state-identified alternate assessment
6.21or assessments in grade 10 for reading and grade 11 for mathematics for students with
6.22an individual education plan; or
6.23    (v) achieving an individual passing score on the state-identified alternate assessment
6.24or assessments as determined by appropriate state guidelines for students with an
6.25individual education plan; and
6.26    (2) for writing:
6.27    (i) achieving a passing score on the graduation-required assessment for diploma;
6.28    (ii) achieving a passing score as determined through a standard setting process on
6.29the state-identified language proficiency test in writing for students designated as English
6.30language learners;
6.31    (iii) achieving an individual passing score on the graduation-required assessment
6.32for diploma as determined by appropriate state guidelines for students with an individual
6.33education plan or 504 plan; or
6.34    (iv) achieving an individual passing score on the state-identified alternate assessment
6.35or assessments as determined by appropriate state guidelines for students with an
6.36individual education plan.
7.1     (c) The 3rd through 8th grade and high school level test results shall be available
7.2to districts for diagnostic purposes affecting student learning and district instruction and
7.3curriculum, and for establishing educational accountability. The commissioner must
7.4disseminate to the public the test results upon receiving those results.
7.5     (d) State tests must be constructed and aligned with state academic standards. The
7.6commissioner shall determine the testing process and the order of administration shall be
7.7determined by the commissioner. The statewide results shall be aggregated at the site and
7.8district level, consistent with subdivision 1a.
7.9     (e) In addition to the testing and reporting requirements under this section, the
7.10commissioner shall include the following components in the statewide public reporting
7.11system:
7.12    (1) uniform statewide testing of all students in grades 3 through 8 and at the high
7.13school level that provides appropriate, technically sound accommodations, alternate
7.14assessments, or exemptions consistent with applicable federal law, only with parent or
7.15guardian approval, for those very few students for whom the student's individual education
7.16plan team under sections 125A.05 and 125A.06 determines that the general statewide test
7.17is inappropriate for a student, or for a limited English proficiency student under section
7.18124D.59, subdivision 2 ;
7.19    (2) educational indicators that can be aggregated and compared across school
7.20districts and across time on a statewide basis, including average daily attendance, high
7.21school graduation rates, and high school drop-out rates by age and grade level;
7.22    (3) state results on the American College Test; and
7.23    (4) state results from participation in the National Assessment of Educational
7.24Progress so that the state can benchmark its performance against the nation and other
7.25states, and, where possible, against other countries, and contribute to the national effort
7.26to monitor achievement.
7.27    Subd. 1a. Statewide and local assessments; results. (a) The commissioner must
7.28develop reading, mathematics, and science assessments aligned with state academic
7.29standards that districts and sites must use to monitor student growth toward achieving
7.30those standards. The commissioner must not develop statewide assessments for academic
7.31standards in social studies, health and physical education, and the arts. The commissioner
7.32must require:
7.33    (1) annual reading and mathematics assessments in grades 3 through 8 and at the
7.34high school level for the 2005-2006 school year and later; and
8.1    (2) annual science assessments in one grade in the grades 3 through 5 span, the
8.2grades 6 through 9 span, and a life sciences assessment in the grades 10 through 12 span
8.3for the 2007-2008 school year and later.
8.4    (b) The commissioner must ensure that all statewide tests administered to elementary
8.5and secondary students measure students' academic knowledge and skills and not students'
8.6values, attitudes, and beliefs.
8.7    (c) Reporting of assessment results must:
8.8    (1) provide timely, useful, and understandable information on the performance of
8.9individual students, schools, school districts, and the state;
8.10    (2) include, by no later than the 2008-2009 school year, a value-added component
8.11that is in addition to a measure for student achievement growth over time growth indicator
8.12of student achievement under section 120B.35, subdivision 3, paragraph (b); and
8.13    (3)(i) for students enrolled in grade 8 before the 2005-2006 school year, determine
8.14whether students have met the state's basic skills requirements; and
8.15    (ii) for students enrolled in grade 8 in the 2005-2006 school year and later, determine
8.16whether students have met the state's academic standards.
8.17    (d) Consistent with applicable federal law and subdivision 1, paragraph (d), clause
8.18(1), the commissioner must include appropriate, technically sound accommodations or
8.19alternative assessments for the very few students with disabilities for whom statewide
8.20assessments are inappropriate and for students with limited English proficiency.
8.21    (e) A school, school district, and charter school must administer statewide
8.22assessments under this section, as the assessments become available, to evaluate student
8.23progress in achieving the proficiency in the context of the state's grade level academic
8.24standards. If a state assessment is not available, a school, school district, and charter
8.25school must determine locally if a student has met the required academic standards. A
8.26school, school district, or charter school may use a student's performance on a statewide
8.27assessment as one of multiple criteria to determine grade promotion or retention. A
8.28school, school district, or charter school may use a high school student's performance on a
8.29statewide assessment as a percentage of the student's final grade in a course, or place a
8.30student's assessment score on the student's transcript.
8.31    Subd. 2. Department of Education assistance. The Department of Education
8.32shall contract for professional and technical services according to competitive bidding
8.33procedures under chapter 16C for purposes of this section.
8.34    Subd. 3. Reporting. The commissioner shall report test data publicly and to
8.35stakeholders, including the performance achievement levels developed from students'
8.36unweighted test scores in each tested subject and a listing of demographic factors that
9.1strongly correlate with student performance. The commissioner shall also report data that
9.2compares performance results among school sites, school districts, Minnesota and other
9.3states, and Minnesota and other nations. The commissioner shall disseminate to schools
9.4and school districts a more comprehensive report containing testing information that
9.5meets local needs for evaluating instruction and curriculum.
9.6    Subd. 4. Access to tests. The commissioner must adopt and publish a policy
9.7to provide public and parental access for review of basic skills tests, Minnesota
9.8Comprehensive Assessments, or any other such statewide test and assessment. Upon
9.9receiving a written request, the commissioner must make available to parents or guardians
9.10a copy of their student's actual responses to the test questions to be reviewed by the
9.11parent for their review.
9.12EFFECTIVE DATE.This section is effective the day following final enactment.

9.13    Sec. 7. Minnesota Statutes 2006, section 120B.31, as amended by Laws 2007, chapter
9.14146, article 2, section 10, is amended to read:
9.15120B.31 SYSTEM ACCOUNTABILITY AND STATISTICAL
9.16ADJUSTMENTS.
9.17    Subdivision 1. Educational accountability and public reporting. Consistent
9.18with the process direction to adopt a results-oriented graduation rule statewide academic
9.19standards under section 120B.02, the department, in consultation with education and
9.20other system stakeholders, must establish and maintain a coordinated and comprehensive
9.21system of educational accountability and public reporting that promotes higher academic
9.22achievement, preparation for higher academic education, preparation for the world of
9.23work, citizenship consistent with the requirements under sections 120B.021, subdivision
9.241, clause (4), and 120B.024, paragraph (a), clause (4), and the arts.
9.25    Subd. 2. Statewide testing. Each school year, all school districts shall give a
9.26uniform statewide test to students at specified grades to provide information on the status,
9.27needs and performance of Minnesota students.
9.28    Subd. 3. Educational accountability. (a) The Independent Office of Educational
9.29Accountability, as authorized by Laws 1997, First Special Session chapter 4, article 5,
9.30section 28, subdivision 2, is established, and shall be funded through the Board of Regents
9.31of the University of Minnesota. The office shall advise the education committees of
9.32the legislature and the commissioner of education, at least on a biennial basis, on the
9.33degree to which the statewide educational accountability and reporting system includes a
9.34comprehensive assessment framework that measures school accountability for students
10.1achieving the goals described in the state's results-oriented high school graduation
10.2rule. The office shall determine and annually report to the legislature whether and how
10.3effectively:
10.4    (1) the statewide system of educational accountability utilizes uses multiple
10.5indicators to provide valid and reliable comparative and contextual data on students,
10.6schools, districts, and the state, and if not, recommend ways to improve the accountability
10.7reporting system;
10.8    (2) the commissioner makes statistical adjustments when reporting student data over
10.9time, consistent with clause (4);
10.10    (3) the commissioner uses indicators of student achievement growth over time
10.11and a value-added assessment model that estimates the effects of the school and school
10.12district on student achievement to measure school performance, consistent with section
10.13120B.36, subdivision 1 ;
10.14    (4) (3) the commissioner makes data available on students who do not pass one or
10.15more of the state's required GRAD tests and do not receive a diploma as a consequence,
10.16and categorizes these data according to gender, race, eligibility for free or reduced lunch,
10.17and English language proficiency; and
10.18    (5) (4) the commissioner fulfills the requirements under section 127A.095,
10.19subdivision 2 .
10.20    (b) When the office reviews the statewide educational accountability and reporting
10.21system, it shall also consider:
10.22    (1) the objectivity and neutrality of the state's educational accountability system; and
10.23    (2) the impact of a testing program on school curriculum and student learning.
10.24    Subd. 4. Statistical adjustments; student performance data. In developing
10.25policies and assessment processes to hold schools and districts accountable for high
10.26levels of academic standards under section 120B.021, the commissioner shall aggregate
10.27student data over time to report student performance and growth levels measured at the
10.28school, school district, regional, or and statewide level. When collecting and reporting
10.29the performance data, the commissioner shall: (1) acknowledge the impact of significant
10.30demographic factors such as residential instability, the number of single parent families,
10.31parents' level of education, and parents' income level on school outcomes; and (2)
10.32organize and report the data so that state and local policy makers can understand the
10.33educational implications of changes in districts' demographic profiles over time. Any
10.34report the commissioner disseminates containing summary data on student performance
10.35must integrate student performance and the demographic factors that strongly correlate
10.36with that performance.
11.1EFFECTIVE DATE.This section is effective the day following final enactment.

11.2    Sec. 8. Minnesota Statutes 2006, section 120B.35, as amended by Laws 2007, chapter
11.3147, article 8, section 38, is amended to read:
11.4120B.35 STUDENT ACADEMIC ACHIEVEMENT AND PROGRESS
11.5GROWTH.
11.6    Subdivision 1. Adequate yearly progress of schools and students School and
11.7student indicators of growth and achievement. The commissioner must develop and
11.8implement a system for measuring and reporting academic achievement and individual
11.9student progress growth, consistent with the statewide educational accountability and
11.10reporting system. The system components of the system must measure the adequate
11.11yearly progress of schools and the growth of individual students: students' current
11.12achievement in schools under subdivision 2; and individual students' educational
11.13progress growth over time under subdivision 3. The system also must include statewide
11.14measures of student academic achievement and growth that identify schools with high
11.15levels of achievement and growth, and also schools with low levels of achievement
11.16and growth that need improvement. When determining a school's effect, the data must
11.17include both statewide measures of student achievement and, to the extent annual tests
11.18are administered, indicators of achievement growth that take into account a student's
11.19prior achievement. Indicators of achievement and prior achievement must be based on
11.20highly reliable statewide or districtwide assessments. Indicators that take into account a
11.21student's prior achievement must not be used to disregard a school's low achievement or to
11.22exclude a school from a program to improve low achievement levels. The commissioner
11.23by January 15, 2002, must submit a plan for integrating these components to the chairs of
11.24the legislative committees having policy and budgetary responsibilities for elementary
11.25and secondary education.
11.26    Subd. 2. Student academic achievement. (a) Each school year, a school district
11.27must determine if the student achievement levels at each school site meet state and local
11.28expectations. If student achievement levels at a school site do not meet state and local
11.29expectations and the site has not made adequate yearly progress for two consecutive
11.30school years, beginning with the 2001-2002 school year, the district must work with
11.31the school site to adopt a plan to raise student achievement levels to meet state and
11.32local expectations. The commissioner of education shall establish student academic
11.33achievement levels to comply with this paragraph.
11.34    (b) School sites identified as not meeting expectations must develop continuous
11.35improvement plans under section 122A.413 in order to meet state and local expectations
12.1for student academic achievement. The department, at a district's request, must assist the
12.2district and the school site in developing a plan to improve student achievement. The plan
12.3must include parental involvement components.
12.4    (c) The commissioner must:
12.5    (1) provide assistance to assist school sites and districts identified as not meeting
12.6expectations; and
12.7    (2) provide technical assistance to schools that integrate student progress measures
12.8under subdivision 3 in the school continuous improvement plan.
12.9    (d) The commissioner shall establish and maintain a continuous improvement Web
12.10site designed to make data on every school and district available to parents, teachers,
12.11administrators, community members, and the general public.
12.12    Subd. 3. Student progress assessment growth; other state measures. (a)
12.13The state's educational assessment system component measuring individual students'
12.14educational progress must be growth is based, to the extent annual tests are administered,
12.15on indicators of achievement growth that show an individual student's prior achievement.
12.16Indicators of achievement and prior achievement must be based on highly reliable
12.17statewide or districtwide assessments.
12.18    (b) The commissioner must identify effective models for measuring individual
12.19student progress that enable a school district or school site to perform gains-based
12.20growth-based analysis, including evaluating the effects of the teacher, school, and school
12.21district on student achievement over time. At least one model must be A "value-added"
12.22assessment model that must reliably estimates estimate those effects for classroom settings
12.23where a single teacher teaches multiple subjects to the same group of students, for team
12.24teaching arrangements, and for other teaching circumstances.
12.25    (c) If a district has an accountability plan that includes gains-based growth-based
12.26analysis or "value-added" assessment, the commissioner shall, to the extent practicable,
12.27incorporate those measures in determining whether the district or school site meets
12.28expectations. The department must coordinate with the district in evaluating school sites
12.29and continuous improvement plans, consistent with best practices.
12.30    (d) When reporting student performance under section 120B.36, subdivision 1, the
12.31commissioner annually, beginning July 1, 2011, if funding permits, must report two core
12.32measures indicating the extent to which current high school graduates are being prepared
12.33for postsecondary academic and career opportunities:
12.34    (1) a preparation measure indicating the number and percentage of high school
12.35graduates in the most recent school year who completed course work important to
12.36preparing them for postsecondary academic and career opportunities, consistent with the
13.1core academic subjects required for admission to Minnesota's public four-year colleges
13.2and universities as determined by the Minnesota Office of Higher Education under chapter
13.3136A; and
13.4    (2) a rigorous coursework measure indicating the number and percentage of high
13.5school graduates in the most recent school year who successfully completed one or more
13.6college-level advanced placement, international baccalaureate, postsecondary enrollment
13.7options, other rigorous courses of study under section 120B.021, subdivision 1a, or
13.8industry certification courses.
13.9When reporting the core measures under clauses (1) and (2), the commissioner must also
13.10analyze and report separate categories of information using the nine student categories
13.11identified under the federal 2001 No Child Left Behind Act and two student gender
13.12categories of male and female, respectively.
13.13    Subd. 4. Improving schools. Consistent with the requirements of this section, the
13.14commissioner of education must establish a second achievement benchmark to identify
13.15improving schools. The commissioner must recommend to annually report to the public
13.16and the legislature by February 15, 2002, indicators in addition to the achievement
13.17benchmark for identifying improving schools, including an indicator requiring a school to
13.18demonstrate ongoing successful use of best teaching practices best practices learned from
13.19those schools that demonstrate exceptional growth compared to state growth expectations.
13.20    Subd. 5. Improving graduation rates for students with emotional or behavioral
13.21disorders. (a) A district must develop strategies in conjunction with parents of students
13.22with emotional or behavioral disorders and the county board responsible for implementing
13.23sections 245.487 to 245.4889 to keep students with emotional or behavioral disorders in
13.24school, when the district has a drop-out rate for students with an emotional or behavioral
13.25disorder in grades 9 through 12 exceeding 25 percent.
13.26    (b) A district must develop a plan in conjunction with parents of students with
13.27emotional or behavioral disorders and the local mental health authority to increase the
13.28graduation rates of students with emotional or behavioral disorders. A district with a
13.29drop-out rate for children with an emotional or behavioral disturbance in grades 9 through
13.3012 that is in the top 25 percent of all districts shall submit a plan for review and oversight
13.31to the commissioner.
13.32EFFECTIVE DATE.Subdivision 3, paragraph (d), and subdivision 4 are effective
13.33the day following final enactment and must be implemented by the 2010-2011 school year.

13.34    Sec. 9. Minnesota Statutes 2006, section 120B.36, as amended by Laws 2007, chapter
13.35146, article 2, section 11, is amended to read:
14.1120B.36 SCHOOL ACCOUNTABILITY; APPEALS PROCESS.
14.2    Subdivision 1. School performance report cards. (a) The commissioner shall use
14.3objective criteria based on levels of student performance to report at least student academic
14.4performance under section 120B.35, subdivision 2, a table showing the percentages of
14.5students at and above state growth expectations under section 120B.35, subdivision 3,
14.6paragraph (b), school safety, rigorous coursework under section 120B.35, subdivision 3,
14.7paragraph (c), two separate student-to-teacher ratios that clearly indicate the definition of
14.8teacher consistent with sections 122A.06 and 122A.15 for purposes of determining these
14.9ratios, and staff characteristics excluding salaries, with a value-added component added no
14.10later than the 2008-2009 school year, student enrollment demographics, district mobility,
14.11and extracurricular activities. The report must indicate a school's adequate yearly progress
14.12status, and must not set any designations applicable to high- and low-performing schools
14.13due solely to adequate yearly progress status.
14.14    (b) The commissioner shall develop, annually update, and post on the department
14.15Web site school performance report cards.
14.16    (c) The commissioner must make available the first performance report cards by
14.17November 2003, and during the beginning of each school year thereafter.
14.18    (d) A school or district may appeal its adequate yearly progress status in writing to
14.19the commissioner within 30 days of receiving the notice of its status. The commissioner's
14.20decision to uphold or deny an appeal is final.
14.21    (e) School performance report cards card data are nonpublic data under section
14.2213.02, subdivision 9 , until not later than ten days after the appeal procedure described in
14.23paragraph (d) concludes. The department shall annually post school performance report
14.24cards to its public Web site no later than September 1.
14.25    Subd. 2. Adequate yearly progress data. All data the department receives,
14.26collects, or creates for purposes of determining to determine adequate yearly progress
14.27designations status under Public Law 107-110, section 1116, set state growth expectations,
14.28and determine student growth are nonpublic data under section 13.02, subdivision 9, until
14.29not later than ten days after the appeal procedure described in subdivision 1, paragraph
14.30(d), concludes. Districts must provide parents sufficiently detailed summary data to permit
14.31parents to appeal under Public Law 107-110, section 1116(b)(2). The department shall
14.32annually post adequate yearly progress data and state student growth data to its public
14.33Web site no later than September 1.
14.34EFFECTIVE DATE.This section is effective the day following final enactment
14.35and subdivision 1 must be implemented by the 2010-2011 school year.

15.1    Sec. 10. Minnesota Statutes 2006, section 120B.362, is amended to read:
15.2120B.362 VALUE-ADDED ASSESSMENT PROGRAM.
15.3    (a) The commissioner of education must implement a value-added assessment
15.4program to assist school districts, public schools, and charter schools in assessing and
15.5reporting individual students' growth in academic achievement under section 120B.30,
15.6subdivision 1a . The program must use assessments of individual students' academic
15.7achievement to make longitudinal comparisons of each student's academic growth over
15.8time. School districts, public schools, and charter schools may apply to the commissioner
15.9to participate in the initial trial program using a form and in the manner the commissioner
15.10prescribes. The commissioner must select program participants from urban, suburban, and
15.11rural areas throughout the state.
15.12    (b) The commissioner may issue a request for proposals to contract with an
15.13organization that provides a value-added assessment model that reliably estimates school
15.14and school district effects on students' academic achievement over time. The model the
15.15commissioner selects must accommodate diverse data and must use each student's test
15.16data across grades. Data on individual teachers generated under the model are personnel
15.17data under section 13.43.
15.18    (c) The contract under paragraph (b) must be consistent with the definition of "best
15.19value" under section 16C.02, subdivision 4.
15.20EFFECTIVE DATE.This section is effective the day following final enactment.

15.21    Sec. 11. Minnesota Statutes 2006, section 122A.21, is amended to read:
15.22122A.21 TEACHERS' AND ADMINISTRATORS' LICENSES; FEES.
15.23    Subdivision 1. Licensure applications. Each application for the issuance, renewal,
15.24or extension of a license to teach, including applications for licensure via portfolio under
15.25subdivision 2, must be accompanied by a processing fee of $57. Each application for
15.26issuing, renewing, or extending the license of a school administrator or supervisor must
15.27be accompanied by a processing fee in the amount set by the Board of Teaching. The
15.28processing fee for a teacher's license and for the licenses of supervisory personnel must
15.29be paid to the executive secretary of the appropriate board. The executive secretary of
15.30the board shall deposit the fees with the commissioner of finance. The fees as set by the
15.31board are nonrefundable for applicants not qualifying for a license. However, a fee must
15.32be refunded by the commissioner of finance in any case in which the applicant already
15.33holds a valid unexpired license. The board may waive or reduce fees for applicants who
15.34apply at the same time for more than one license.
16.1    Subd. 2. Licensure via portfolio. (a) A candidate seeking licensure via portfolio
16.2must submit a $75 fee to the Educator Licensing Division at the department to determine
16.3the candidate's eligibility for licensure via portfolio. An eligible candidate may use
16.4licensure via portfolio to obtain an initial licensure or to add a licensure field, consistent
16.5with the applicable Board of Teaching licensure rules.
16.6    (b) A candidate for initial licensure must submit to the Educator Licensing Division
16.7at the department one portfolio demonstrating pedagogical competence and one portfolio
16.8demonstrating content competence.
16.9    (c) A candidate seeking to add a licensure field must submit to the Educator
16.10Licensing Division at the department one portfolio demonstrating content competence.
16.11    (d) A candidate must pay to the executive secretary of the Board of Teaching a
16.12$300 fee for the first portfolio submitted for review and a $200 fee for any portfolio
16.13submitted subsequently. The fees must be paid to the executive secretary of the Board of
16.14Teaching. The revenue generated from the fee must be deposited in an education licensure
16.15portfolio account in the special revenue fund. The fees set by the Board of Teaching are
16.16nonrefundable for applicants not qualifying for a license. The Board of Teaching may
16.17waive or reduce fees for candidates based on financial need.

16.18    Sec. 12. Minnesota Statutes 2006, section 122A.40, subdivision 8, is amended to read:
16.19    Subd. 8. Peer Review for continuing contract teachers. (a) A school board and
16.20an exclusive representative of the teachers in the district shall develop an annual review
16.21process and evaluation for all continuing contract teachers through joint agreement. The
16.22annual review process and evaluation must be aligned to best instructional practices in
16.23teaching and learning. A school board and exclusive representatives of the teachers must
16.24use section 122A.413, subdivision 2, as the review for continuing contract teachers if the
16.25plan has been approved by the commissioner of education.
16.26    (b) A school board and an exclusive representative of the teachers in the district shall
16.27develop a peer review process for continuing contract teachers through joint agreement.
16.28Peer review for continuing contract teachers may be used to meet the requirements in
16.29paragraph (a).

16.30    Sec. 13. Minnesota Statutes 2006, section 123B.02, subdivision 21, is amended to read:
16.31    Subd. 21. Wind energy conversion system. The board, or more than one board
16.32acting jointly under the authority granted by section 471.59, may construct, acquire, own
16.33in whole or in part, operate, and sell and retain and spend the payment received from
16.34selling energy from a wind energy conversion system, as defined in section 216C.06,
16.35subdivision 19 . The board's share of the installed capacity of the wind energy conversion
17.1systems authorized by this subdivision must not exceed 3.3 megawatts of nameplate
17.2capacity. A board owning, operating, or selling energy from a wind energy conversion
17.3system must integrate information about wind energy conversion systems in its educational
17.4programming. The board, or more than one board acting jointly under the authority
17.5granted by section 471.59, may be a limited partner in a partnership, a member of a limited
17.6liability company, or a shareholder in a corporation, established for the sole purpose of
17.7constructing, acquiring, owning in whole or in part, financing, or operating a wind energy
17.8conversion system for the benefit of the district or districts in accordance with this section.
17.9EFFECTIVE DATE.This section is effective the day following final enactment.

17.10    Sec. 14. Minnesota Statutes 2007 Supplement, section 123B.143, subdivision 1,
17.11is amended to read:
17.12    Subdivision 1. Contract; duties. All districts maintaining a classified secondary
17.13school must employ a superintendent who shall be an ex officio nonvoting member of the
17.14school board. The authority for selection and employment of a superintendent must be
17.15vested in the board in all cases. An individual employed by a board as a superintendent
17.16shall have an initial employment contract for a period of time no longer than three years
17.17from the date of employment. Any subsequent employment contract must not exceed a
17.18period of three years. A board, at its discretion, may or may not renew an employment
17.19contract. A board must not, by action or inaction, extend the duration of an existing
17.20employment contract. Beginning 365 days prior to the expiration date of an existing
17.21employment contract, a board may negotiate and enter into a subsequent employment
17.22contract to take effect upon the expiration of the existing contract. A subsequent contract
17.23must be contingent upon the employee completing the terms of an existing contract. If a
17.24contract between a board and a superintendent is terminated prior to the date specified in
17.25the contract, the board may not enter into another superintendent contract with that same
17.26individual that has a term that extends beyond the date specified in the terminated contract.
17.27A board may terminate a superintendent during the term of an employment contract for any
17.28of the grounds specified in section 122A.40, subdivision 9 or 13. A superintendent shall
17.29not rely upon an employment contract with a board to assert any other continuing contract
17.30rights in the position of superintendent under section 122A.40. Notwithstanding the
17.31provisions of sections 122A.40, subdivision 10 or 11, 123A.32, 123A.75, or any other law
17.32to the contrary, no individual shall have a right to employment as a superintendent based
17.33on order of employment in any district. If two or more districts enter into an agreement for
17.34the purchase or sharing of the services of a superintendent, the contracting districts have
17.35the absolute right to select one of the individuals employed to serve as superintendent
18.1in one of the contracting districts and no individual has a right to employment as the
18.2superintendent to provide all or part of the services based on order of employment in a
18.3contracting district. The superintendent of a district shall perform the following:
18.4    (1) visit and supervise the schools in the district, report and make recommendations
18.5about their condition when advisable or on request by the board;
18.6    (2) recommend to the board employment and dismissal of teachers;
18.7    (3) superintend school grading practices and examinations for promotions;
18.8    (4) make reports required by the commissioner; and
18.9    (5) by January 10, submit an annual report to the commissioner in a manner
18.10prescribed by the commissioner, in consultation with school districts, identifying the
18.11expenditures that the district requires to ensure an 80 percent student passage rate on
18.12the MCA-IIs taken in the eighth grade, identifying the highest student passage rate the
18.13district expects it will be able to attain on the MCA-IIs by grade 12, and the amount of
18.14expenditures that the district requires to attain the targeted student passage rate; and
18.15    (6) perform other duties prescribed by the board.
18.16EFFECTIVE DATE.This section is effective the day following final enactment.

18.17    Sec. 15. Minnesota Statutes 2006, section 123B.59, subdivision 1, is amended to read:
18.18    Subdivision 1. To qualify. (a) An independent or special school district qualifies to
18.19participate in the alternative facilities bonding and levy program if the district has:
18.20    (1) more than 66 students per grade;
18.21    (2) over 1,850,000 square feet of space and the average age of building space is 15
18.22years or older or over 1,500,000 square feet and the average age of building space is
18.2335 years or older;
18.24    (3) insufficient funds from projected health and safety revenue and capital facilities
18.25revenue to meet the requirements for deferred maintenance, to make accessibility
18.26improvements, or to make fire, safety, or health repairs; and
18.27    (4) a ten-year facility plan approved by the commissioner according to subdivision 2.
18.28    (b) An independent or special school district not eligible to participate in the
18.29alternative facilities bonding and levy program under paragraph (a) qualifies for limited
18.30participation in the program if the district has:
18.31    (1) one or more health and safety projects with an estimated cost of $500,000 or
18.32more per site that would qualify for health and safety revenue except for the project size
18.33limitation in section 123B.57, subdivision 1, paragraph (b); and
18.34    (2) insufficient funds from capital facilities revenue to fund those projects.
19.1    (c) Notwithstanding the square footage limitation in paragraph (a), clause (2),
19.2a school district that qualified for eligibility under paragraph (a) as of July 1, 2007,
19.3remains eligible for funding under this section as long as the district continues to meet
19.4the requirements of paragraph (a), clauses (1), (3), and (4).
19.5EFFECTIVE DATE.This section is effective the day following final enactment.

19.6    Sec. 16. Minnesota Statutes 2006, section 123B.62, is amended to read:
19.7123B.62 BONDS FOR CERTAIN CAPITAL FACILITIES.
19.8    (a) In addition to other bonding authority, with approval of the commissioner, a
19.9district may issue general obligation bonds for certain capital projects under this section.
19.10The bonds must be used only to make capital improvements including:
19.11    (1) under section 126C.10, subdivision 14, total operating capital revenue uses
19.12specified in clauses (4), (6), (7), (8), (9), and (10);
19.13    (2) the cost of energy modifications;
19.14    (3) improving disability accessibility to school buildings; and
19.15    (4) bringing school buildings into compliance with life and safety codes and fire
19.16codes.
19.17    (b) Before a district issues bonds under this subdivision, it must publish notice
19.18of the intended projects, the amount of the bond issue, and the total amount of district
19.19indebtedness.
19.20    (c) A bond issue tentatively authorized by the board under this subdivision becomes
19.21finally authorized unless a petition signed by more than 15 percent of the registered voters
19.22of the district is filed with the school board within 30 days of the board's adoption of a
19.23resolution stating the board's intention to issue bonds. The percentage is to be determined
19.24with reference to the number of registered voters in the district on the last day before the
19.25petition is filed with the board. The petition must call for a referendum on the question of
19.26whether to issue the bonds for the projects under this section. The approval of 50 percent
19.27plus one of those voting on the question is required to pass a referendum authorized
19.28by this section.
19.29    (d) The bonds must be paid off within ten 15 years of issuance. The bonds must be
19.30issued in compliance with chapter 475, except as otherwise provided in this section. A tax
19.31levy must be made for the payment of principal and interest on the bonds in accordance
19.32with section 475.61. The sum of the tax levies under this section and section 123B.61 for
19.33each year must not exceed the limit specified in section 123B.61. The levy for each year
19.34must be reduced as provided in section 123B.61. A district using an excess amount in the
19.35debt redemption fund to retire the bonds shall report the amount used for this purpose to
20.1the commissioner by July 15 of the following fiscal year. A district having an outstanding
20.2capital loan under section 126C.69 or an outstanding debt service loan under section
20.3126C.68 must not use an excess amount in the debt redemption fund to retire the bonds.
20.4    (e) Notwithstanding paragraph (d), bonds issued by a district within the first
20.5five years following voter approval of a combination according to section 123A.37,
20.6subdivision 2 , must be paid off within 20 years of issuance. All the other provisions and
20.7limitation of paragraph (d) apply.
20.8EFFECTIVE DATE.This section is effective the day following final enactment.

20.9    Sec. 17. [123B.7495] STRUCTURALLY BALANCED SCHOOL DISTRICT
20.10BUDGETS.
20.11    Subdivision 1. Board resolution. (a) Before approving a collective bargaining
20.12agreement that does not result from an interest arbitration decision, a school board must
20.13determine by board resolution that the proposed agreement will not cause structural
20.14imbalance in the district's budget during the agreement period .
20.15    (b) A school board may determine that an agreement will not cause structural
20.16imbalance only if expenditures will not exceed available funds, taking into account:
20.17    (1) current state aid formulas; and
20.18    (2) reasonable and comprehensive projections of ongoing revenues and expenditures
20.19for the period of the agreement. The board must not use onetime revenue for ongoing
20.20expenditures. Any amount in excess of the board's resolution for the district's general
20.21fund balance is not onetime revenue under this section. The school board must make
20.22available with the resolution a summary of the projections and calculations supporting
20.23the determination. The projections and calculations must include state aid formulas,
20.24pupil units, and employee costs that reflect the terms of all applicable labor agreements,
20.25including the agreement under consideration, its fringe benefits, severance pay, and staff
20.26changes.
20.27    (c) In addition to the determination under paragraph (a), the school board must
20.28project revenues, expenditures, and fund balances for two years following the period of
20.29the agreement. The projections must include the information categories under paragraph
20.30(b), be reasonable and comprehensive, and reference current state aid formulas.
20.31    (d) The board must make available all projections and calculations required by this
20.32section and estimated district employee terminations to the public before, at, and after
20.33the meeting where the board adopts the resolution , consistent with state law on public
20.34notice and access to public data.
21.1    (e) In an interest arbitration, the district must submit, and the exclusive bargaining
21.2representative may submit, proposed determinations with supporting projections and
21.3calculations consistent with paragraph (b) of the effect of the potential decision on the
21.4structural balance of the district's budget. The arbitrator must consider the potential effect
21.5of a decision on the structural balance of the district's budget for the term of the agreement.
21.6The arbitrator's decision must describe the effect of the decision on the structural balance
21.7of the district's budget in a manner consistent with paragraph (b). The arbitrator's decision
21.8also must show the effect of the decision on the school budget for one year following the
21.9term of the contract at issue. Within 30 days of when the board receives or acts on the
21.10decision, whichever is earlier, the board must by resolution determine the effect of the
21.11decision on the structural balance of its budget for the term of the agreement consistent
21.12with paragraph (b).
21.13    (f) The board must submit a copy of the resolution with the supporting projections
21.14and calculations to the commissioner with the uniform collective bargaining agreement
21.15settlement document within 30 days of adopting the resolution. The commissioner must
21.16develop a model form for districts to use in reporting projections and calculations. The
21.17commissioner must not accept any reports that do not comply with this section. The
21.18commissioner must make all resolutions, projections, and calculations available to the
21.19public.
21.20    (g) Compliance with this section by itself is not an unfair labor practice under
21.21section 179A.13, subdivision 2.
21.22    Subd. 2. State aid penalty. (a) If a board does not submit a report to the
21.23commissioner under subdivision 1, paragraph (f), the department must reduce the state aid
21.24paid to the public employer for that fiscal year.
21.25    (b) The aid reduction must equal $25 times the number of adjusted pupil units for
21.26the district during that fiscal year.
21.27    (c) The department must reduce general education aid; if general education aid is
21.28insufficient or not paid, the department must reduce other state aids.
21.29EFFECTIVE DATE.This section is effective for the 2008-2009 school year and
21.30later.

21.31    Sec. 18. [123B.795] USE OF ONETIME FUNDS.
21.32    A school district that has received state aid specifically designated as a "onetime"
21.33appropriation or otherwise identified as an appropriation that is not intended to continue in
21.34a following fiscal year must use that money for a onetime purpose and must not use that
21.35money for ongoing operations of the district.
22.1EFFECTIVE DATE.This section is effective for aids received on or after July
22.21, 2008.

22.3    Sec. 19. Minnesota Statutes 2006, section 124D.04, subdivision 3, is amended to read:
22.4    Subd. 3. Pupils in adjoining states. Except as provided under an agreement with
22.5an adjoining state under section 124D.041, a non-Minnesota pupil who resides in an
22.6adjoining state in a district that borders Minnesota may enroll in a Minnesota district if
22.7either the board of the district in which the pupil resides or state in which the pupil resides
22.8pays tuition to the district in which the pupil is enrolled.

22.9    Sec. 20. Minnesota Statutes 2006, section 124D.04, subdivision 6, is amended to read:
22.10    Subd. 6. Tuition payments. (a) In each odd-numbered year, before March 1, the
22.11commissioner must agree to rates of tuition for Minnesota elementary and secondary
22.12pupils attending in other states for the next two fiscal years when the other state agrees to
22.13negotiate tuition rates. The commissioner must negotiate equal, reciprocal rates with the
22.14designated authority in each state for pupils who reside in an adjoining state and enroll in
22.15a Minnesota district. The rates must be at least equal to the tuition specified in section
22.16124D.05, subdivision 1 . If the other state does not agree to negotiate a general tuition rate,
22.17a Minnesota school district may negotiate a tuition rate with the school district in the other
22.18state that sends a pupil to or receives a pupil from the Minnesota school district. The
22.19tuition rate for a pupil with a disability must be equal to the actual cost of instruction and
22.20services provided. The resident district of a Minnesota pupil attending in another state
22.21under this section must pay the amount of tuition agreed upon in this section to the district
22.22of attendance, prorated on the basis of the proportion of the school year attended.
22.23    (b) Notwithstanding paragraph (a) and subdivision 9, if an agreement is reached
22.24between the state of Minnesota and an adjoining state pursuant to section 124D.041,
22.25the provisions of section 124D.041 and the agreement shall apply to all enrollment
22.26transfers between Minnesota and the adjoining state, and provisions of paragraph (a)
22.27and subdivision 9 shall not apply.

22.28    Sec. 21. Minnesota Statutes 2006, section 124D.04, subdivision 8, is amended to read:
22.29    Subd. 8. Effective if reciprocal. This section is effective with respect to South
22.30Dakota upon enactment of provisions by South Dakota that the commissioner determines
22.31are essentially similar to the provisions for Minnesota pupils in this section. This section
22.32is effective with respect to any other bordering state upon enactment of provisions by the
22.33bordering state that the commissioner determines are essentially similar to the provisions
22.34for Minnesota pupils in this section.

23.1    Sec. 22. Minnesota Statutes 2006, section 124D.04, subdivision 9, is amended to read:
23.2    Subd. 9. Appeal to the commissioner. If a Minnesota school district cannot agree
23.3with an adjoining state on a tuition rate for a Minnesota student attending school in that
23.4state and that state has met the requirements in subdivision 8, then the student's parent or
23.5guardian may request that the commissioner agree on set a tuition rate for the student. The
23.6Minnesota district must pay the amount of tuition the commissioner agrees upon sets.

23.7    Sec. 23. [124D.041] RECIPROCITY WITH ADJOINING STATES.
23.8    Subdivision 1. Agreements. (a) The commissioner may enter into an agreement
23.9with the designated authority from an adjoining state to establish an enrollment options
23.10program between Minnesota and the adjoining state. Any agreement entered into pursuant
23.11to this section must specify the following:
23.12    (1) for students who are not residents of Minnesota, the enrollment options program
23.13applies only to a student whose resident school district borders Minnesota;
23.14    (2) the commissioner must negotiate equal, reciprocal rates with the designated
23.15authority from the adjoining state;
23.16    (3) if the adjoining state sends more students to Minnesota than Minnesota sends to
23.17the adjoining state, the adjoining state must pay the state of Minnesota the rate agreed
23.18upon under clause (2) for the excess number of students sent to Minnesota;
23.19    (4) if Minnesota sends more students to the adjoining state than the adjoining state
23.20sends to Minnesota, the state of Minnesota will pay the adjoining state the rate agreed
23.21upon under clause (2) for the excess number of students sent to the adjoining state;
23.22    (5) the application procedures for the enrollment options program between
23.23Minnesota and the adjoining state;
23.24    (6) the reasons for which an application for the enrollment options program between
23.25Minnesota and the adjoining may be denied; and
23.26    (7) that a Minnesota school district is not responsible for transportation for any
23.27resident student attending school in an adjoining state under the provisions of this section.
23.28A Minnesota school district may, at its discretion, provide transportation services for
23.29such a student.
23.30    (b) Any agreement entered into pursuant to this section may specify additional terms
23.31relating to any student in need of special education and related services pursuant to chapter
23.32125A. Any additional terms must apply equally to both states.
23.33    Subd. 2. Pupil accounting. (a) Any student from an adjoining state enrolled in
23.34Minnesota pursuant to this section is included in the receiving school district's average
23.35daily membership and pupil units according to section 126C.05 as if the student were
24.1a resident of another Minnesota school district attending the receiving school district
24.2under section 124D.03.
24.3    (b) Any Minnesota resident student enrolled in an adjoining state pursuant to this
24.4section is included in the resident school district's average daily membership and pupil
24.5units according to section 126C.05 as if the student were a resident of the district attending
24.6another Minnesota school district under section 124D.03.
24.7    Subd. 3. Procedures. (a) The Department of Education must establish procedures
24.8relating to the application process, the collection or payment of funds under the provisions
24.9of any agreement established pursuant to this section, and the collection of data necessary
24.10to implement any agreement established pursuant to this section.
24.11    (b) Notwithstanding sections 124D.04 and 124D.05, if an agreement is established
24.12between Minnesota and an adjoining state pursuant to this section, the provisions of this
24.13section and the agreement shall apply to all enrollment transfers between Minnesota and
24.14the adjoining state, and provisions of sections 124D.04 and 124D.05 to the contrary,
24.15including provisions relating to tuition payments, shall not apply.
24.16    (c) Notwithstanding paragraph (a), any payments to adjoining states under this
24.17section shall be made according to section 127A.45, subdivision 16.
24.18    (d) Notwithstanding paragraph (b), sections 124D.04, subdivision 6, paragraph (b),
24.19and 124D.05, subdivision 2a, the provisions of this section and the agreement shall not
24.20apply to enrollment transfers between Minnesota and a school district in an adjoining state
24.21enrolling fewer than 150 pupils that is exempted from participation in the program under
24.22the laws of the adjoining state.

24.23    Sec. 24. Minnesota Statutes 2006, section 124D.05, is amended by adding a
24.24subdivision to read:
24.25    Subd. 2a. Exception. Notwithstanding subdivisions 1 and 2, if an agreement
24.26is reached between the state of Minnesota and an adjoining state pursuant to section
24.27124D.041, the provisions of section 124D.041 and the agreement shall apply to all
24.28enrollment transfers between Minnesota and the adjoining state, and provisions of
24.29subdivisions 1 and 2 to the contrary, including provisions relating to tuition payments,
24.30shall not apply.

24.31    Sec. 25. Minnesota Statutes 2006, section 125A.65, is amended by adding a
24.32subdivision to read:
24.33    Subd. 11. Third-party reimbursement. The Minnesota State Academies must seek
24.34reimbursement under section 125A.21 from third parties for the cost of services provided
25.1by the Minnesota State Academies whenever the services provided are otherwise covered
25.2by a child's public or private health plan.
25.3EFFECTIVE DATE.This section is effective the day following final enactment
25.4for revenue in fiscal years 2008 and later.

25.5    Sec. 26. Minnesota Statutes 2006, section 125A.76, is amended by adding a
25.6subdivision to read:
25.7    Subd. 4a. Adjustments for tuition reciprocity with adjoining states. (a) If an
25.8agreement is reached between the state of Minnesota and an adjoining state pursuant to
25.9section 124D.041 that requires a special education tuition payment from the state of
25.10Minnesota to the adjoining state, the tuition payment shall be made from the special
25.11education aid appropriation for that year, and the state total special education aid under
25.12subdivision 4 shall be reduced by the amount of the payment.
25.13    (b) If an agreement is reached between the state of Minnesota and an adjoining state
25.14pursuant to section 124D.041 that requires a special education tuition payment from
25.15an adjoining state to the state of Minnesota, the special education aid appropriation for
25.16that year and the state total special education aid under subdivision 4 shall be increased
25.17by the amount of the payment.
25.18    (c) If an agreement is reached between the state of Minnesota and an adjoining state
25.19pursuant to section 124D.041 that requires special education tuition payments to be made
25.20between the two states and not between districts in the two states, the special education aid
25.21for a Minnesota school district serving a student with a disability from the adjoining state
25.22shall be calculated according to section 127A.47, subdivision 7, except that no reduction
25.23shall be made in the special education aid paid to the resident district.

25.24    Sec. 27. Minnesota Statutes 2006, section 126C.05, subdivision 3, is amended to read:
25.25    Subd. 3. Compensation revenue pupil units. Compensation revenue pupil units
25.26for fiscal year 1998 and thereafter must be computed according to this subdivision.
25.27    (a) The compensation revenue concentration percentage for each building in a
25.28district equals the product of 100 times the ratio of:
25.29    (1) the sum of the number of pupils enrolled in the building eligible to receive free
25.30lunch plus one-half of the pupils eligible to receive reduced priced lunch on October
25.311 of the previous fiscal year; to
25.32    (2) the number of pupils enrolled in the building on October 1 of the previous fiscal
25.33year.
26.1    (b) The compensation revenue pupil weighting factor for a building equals the
26.2lesser of one or the quotient obtained by dividing the building's compensation revenue
26.3concentration percentage by 80.0 100.0.
26.4    (c) The compensation revenue pupil units for a building equals the product of:
26.5    (1) the sum of the number of pupils enrolled in the building eligible to receive free
26.6lunch and one-half of the pupils eligible to receive reduced priced lunch on October 1
26.7of the previous fiscal year; times
26.8    (2) the compensation revenue pupil weighting factor for the building; times
26.9    (3) .60 .68.
26.10    (d) Notwithstanding paragraphs (a) to (c), for charter schools and contracted
26.11alternative programs in the first year of operation, compensation revenue pupil units shall
26.12be computed using data for the current fiscal year. If the charter school or contracted
26.13alternative program begins operation after October 1, compensatory revenue pupil units
26.14shall be computed based on pupils enrolled on an alternate date determined by the
26.15commissioner, and the compensation revenue pupil units shall be prorated based on the
26.16ratio of the number of days of student instruction to 170 days.
26.17    (e) The percentages in this subdivision must be based on the count of individual
26.18pupils and not on a building average or minimum.
26.19EFFECTIVE DATE.This section is effective for revenue for fiscal year 2009.

26.20    Sec. 28. Minnesota Statutes 2006, section 126C.10, subdivision 31, is amended to read:
26.21    Subd. 31. Transition revenue. (a) A district's transition allowance equals the
26.22greater of zero or the product of the ratio of the number of adjusted marginal cost pupil
26.23units the district would have counted for fiscal year 2004 under Minnesota Statutes 2002
26.24to the district's adjusted marginal cost pupil units for fiscal year 2004, times the difference
26.25between: (1) the lesser of the district's general education revenue per adjusted marginal
26.26cost pupil unit for fiscal year 2003 or the amount of general education revenue the district
26.27would have received per adjusted marginal cost pupil unit for fiscal year 2004 according
26.28to Minnesota Statutes 2002, and (2) the district's general education revenue for fiscal year
26.292004 excluding transition revenue divided by the number of adjusted marginal cost pupil
26.30units the district would have counted for fiscal year 2004 under Minnesota Statutes 2002.
26.31    (b) A district's transition revenue for fiscal year years 2006 and later through 2009
26.32equals the sum of the product of the district's transition allowance times the district's
26.33adjusted marginal cost pupil units plus the district's transition for prekindergarten revenue
26.34under subdivision 31a.
27.1    (c) A district's transition revenue for fiscal year 2010 and later equals the sum of
27.2the product of the district's transition allowance times the district's adjusted marginal cost
27.3pupil units plus the district's transition for prekindergarten revenue under subdivision 31a
27.4plus the district's transition for tuition reciprocity revenue under subdivision 31c.

27.5    Sec. 29. Minnesota Statutes 2006, section 126C.10, is amended by adding a
27.6subdivision to read:
27.7    Subd. 31c. Transition for tuition reciprocity revenue. For the first year that a
27.8tuition reciprocity agreement with an adjoining state is in effect under section 124D.041
27.9and later, a school district's transition for tuition reciprocity revenue equals the greater of
27.10zero or the difference between the sum of the general education revenue and net tuition
27.11revenue the district would have received for pupils enrolled under section 124D.041 for
27.12the first year the agreement is in effect if the agreement had not been in effect, and the
27.13sum of the district's general education revenue and net tuition revenue for the first year
27.14the agreement is in effect.

27.15    Sec. 30. Minnesota Statutes 2006, section 126C.17, subdivision 9, is amended to read:
27.16    Subd. 9. Referendum revenue. (a) The revenue authorized by section 126C.10,
27.17subdivision 1 , may be increased in the amount approved by the voters of the district at a
27.18referendum called for the purpose. The referendum may be called by the board or shall be
27.19called by the board upon written petition of qualified voters of the district. The referendum
27.20must be conducted one or two calendar years before the increased levy authority, if
27.21approved, first becomes payable. Only one election to approve an increase may be held
27.22in a calendar year. Unless the referendum is conducted by mail under paragraph (g), the
27.23referendum must be held on the first Tuesday after the first Monday in November. The
27.24ballot must state the maximum amount of the increased revenue per resident marginal cost
27.25pupil unit. The ballot may state a schedule, determined by the board, of increased revenue
27.26per resident marginal cost pupil unit that differs from year to year over the number of
27.27years for which the increased revenue is authorized or may state that the amount shall
27.28increase annually by the rate of inflation. For this purpose, the rate of inflation shall be
27.29the annual inflationary increase calculated under subdivision 2, paragraph (b). The ballot
27.30may state that existing referendum levy authority is expiring. In this case, the ballot may
27.31also compare the proposed levy authority to the existing expiring levy authority, and
27.32express the proposed increase as the amount, if any, over the expiring referendum levy
27.33authority. The ballot must designate the specific number of years, not to exceed ten, for
27.34which the referendum authorization applies. The ballot, including a ballot on the question
27.35to revoke or reduce the increased revenue amount under paragraph (c), must abbreviate
28.1the term "per resident marginal cost pupil unit" as "per pupil." The notice required under
28.2section 275.60 may be modified to read, in cases of renewing existing levies at the same
28.3amount per pupil as in the previous year:
28.4"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING
28.5FOR A PROPERTY TAX INCREASE ARE RENEWING AN EXISTING
28.6PROPERTY TAX REFERENDUM AMOUNT PER PUPIL. YOU ARE NOT
28.7CHANGING YOUR OPERATING REFERENDUM FROM ITS LEVEL IN THE
28.8PREVIOUS YEAR."
28.9    The ballot may contain a textual portion with the information required in this
28.10subdivision and a question stating substantially the following:
28.11    "Shall the increase in the revenue proposed by (petition to) the board of .........,
28.12School District No. .., be approved?"
28.13    If approved, an amount equal to the approved revenue per resident marginal cost
28.14pupil unit times the resident marginal cost pupil units for the school year beginning in
28.15the year after the levy is certified shall be authorized for certification for the number of
28.16years approved, if applicable, or until revoked or reduced by the voters of the district at a
28.17subsequent referendum.
28.18    (b) The board must prepare and deliver by first class mail at least 15 days but no more
28.19than 30 days before the day of the referendum to each taxpayer a notice of the referendum
28.20and the proposed revenue increase. The board need not mail more than one notice to any
28.21taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be
28.22those shown to be owners on the records of the county auditor or, in any county where
28.23tax statements are mailed by the county treasurer, on the records of the county treasurer.
28.24Every property owner whose name does not appear on the records of the county auditor
28.25or the county treasurer is deemed to have waived this mailed notice unless the owner
28.26has requested in writing that the county auditor or county treasurer, as the case may be,
28.27include the name on the records for this purpose. The notice must project the anticipated
28.28amount of tax increase in annual dollars for typical residential homesteads, agricultural
28.29homesteads, apartments, and commercial-industrial property within the school district.
28.30    The notice for a referendum may state that an existing referendum levy is expiring
28.31and project the anticipated amount of increase over the existing referendum levy in
28.32the first year, if any, in annual dollars for typical residential homesteads, agricultural
28.33homesteads, apartments, and commercial-industrial property within the district.
28.34    The notice must include the following statement: "Passage of this referendum will
28.35result in an increase in your property taxes." However, in cases of renewing existing
28.36levies, the notice may include the following statement: "Passage of this referendum may
29.1result in an increase in your property taxes renews an existing operating referendum at the
29.2same amount per pupil as in the previous year."
29.3    (c) A referendum on the question of revoking or reducing the increased revenue
29.4amount authorized pursuant to paragraph (a) may be called by the board and shall be called
29.5by the board upon the written petition of qualified voters of the district. A referendum to
29.6revoke or reduce the revenue amount must state the amount per resident marginal cost
29.7pupil unit by which the authority is to be reduced. Revenue authority approved by the
29.8voters of the district pursuant to paragraph (a) must be available to the school district at
29.9least once before it is subject to a referendum on its revocation or reduction for subsequent
29.10years. Only one revocation or reduction referendum may be held to revoke or reduce
29.11referendum revenue for any specific year and for years thereafter.
29.12    (d) A petition authorized by paragraph (a) or (c) is effective if signed by a number of
29.13qualified voters in excess of 15 percent of the registered voters of the district on the day
29.14the petition is filed with the board. A referendum invoked by petition must be held on the
29.15date specified in paragraph (a).
29.16    (e) The approval of 50 percent plus one of those voting on the question is required to
29.17pass a referendum authorized by this subdivision.
29.18    (f) At least 15 days before the day of the referendum, the district must submit a
29.19copy of the notice required under paragraph (b) to the commissioner and to the county
29.20auditor of each county in which the district is located. Within 15 days after the results
29.21of the referendum have been certified by the board, or in the case of a recount, the
29.22certification of the results of the recount by the canvassing board, the district must notify
29.23the commissioner of the results of the referendum.
29.24EFFECTIVE DATE.This section is effective for elections conducted on or after
29.25July 1, 2008.

29.26    Sec. 31. Minnesota Statutes 2006, section 126C.21, subdivision 1, is amended to read:
29.27    Subdivision 1. Permanent school fund. The An amount of money equal to $36
29.28times the district's pupils in average daily membership received by a district as income
29.29from the permanent school fund for any year must be deducted from the general education
29.30aid earned by the district for the same year or from aid earned from other state sources.
29.31EFFECTIVE DATE.This section is effective for revenue for fiscal year 2010.

29.32    Sec. 32. Minnesota Statutes 2007 Supplement, section 126C.21, subdivision 3, is
29.33amended to read:
30.1    Subd. 3. County apportionment deduction. Each year the amount of money
30.2apportioned to a district for that year pursuant to sections section 127A.34, subdivision 2,
30.3and 272.029, subdivision 6, must be deducted from the general education aid earned by
30.4that district for the same year or from aid earned from other state sources.
30.5EFFECTIVE DATE.This section is effective for revenue for fiscal year 2009.

30.6    Sec. 33. Minnesota Statutes 2007 Supplement, section 126C.44, is amended to read:
30.7126C.44 SAFE SCHOOLS LEVY.
30.8    (a) Each district may make a levy on all taxable property located within the district
30.9for the purposes specified in this section. The maximum amount which may be levied
30.10for all costs under this section shall be equal to $30 multiplied by the district's adjusted
30.11marginal cost pupil units for the school year. The proceeds of the levy must be reserved and
30.12used for directly funding the following purposes or for reimbursing the cities and counties
30.13who contract with the district for the following purposes: (1) to pay the costs incurred for
30.14the salaries, benefits, and transportation costs of peace officers and sheriffs for liaison in
30.15services in the district's schools; (2) to pay the costs for a drug abuse prevention program
30.16as defined in section 609.101, subdivision 3, paragraph (e), in the elementary schools;
30.17(3) to pay the costs for a gang resistance education training curriculum in the district's
30.18schools; (4) to pay the costs for security in the district's schools and on school property; (5)
30.19to pay the costs for other crime prevention, drug abuse, student and staff safety, voluntary
30.20opt-in suicide prevention tools, and violence prevention measures taken by the school
30.21district; or (6) to pay costs for licensed school counselors, licensed school nurses, licensed
30.22school social workers, licensed school psychologists, and licensed alcohol and chemical
30.23dependency counselors to help provide early responses to problems. For expenditures
30.24under clause (1), the district must initially attempt to contract for services to be provided
30.25by peace officers or sheriffs with the police department of each city or the sheriff's
30.26department of the county within the district containing the school receiving the services. If
30.27a local police department or a county sheriff's department does not wish to provide the
30.28necessary services, the district may contract for these services with any other police or
30.29sheriff's department located entirely or partially within the school district's boundaries.
30.30    (b) A school district that is a member of an intermediate school district may
30.31include in its authority under this section the costs associated with safe schools activities
30.32authorized under paragraph (a) for intermediate school district programs. This authority
30.33must not exceed $10 times the adjusted marginal cost pupil units of the member districts.
30.34This authority is in addition to any other authority authorized under this section. Revenue
30.35raised under this paragraph must be transferred to the intermediate school district.
31.1    (c) If A school district spends must set aside at least $3 per adjusted marginal cost
31.2pupil unit of the safe schools levy proceeds for the purposes authorized under paragraph
31.3(a), clause (6),. The district must annually certify that its total spending on services
31.4provided by the employees listed in paragraph (a), clause (6), is not less than the sum of
31.5its expenditures for these purposes, excluding amounts spent under this section, in the
31.6previous year plus the amount spent under this section.
31.7EFFECTIVE DATE.This section is effective for revenue for fiscal year 2010.

31.8    Sec. 34. Minnesota Statutes 2006, section 126C.51, is amended to read:
31.9126C.51 APPLICATION OF LIMITING TAX LEGISLATION.
31.10    Notwithstanding the provisions of section 471.69 or 471.75, or of any other
31.11provision of law which by per capita limitation, local tax rate limitation, or otherwise,
31.12limits the power of a district to incur any debt or to issue any warrant or order, a school
31.13district or intermediate school district has the powers in sections 126C.50 to 126C.56
31.14specifically conferred upon it and all powers incident and necessary to carrying out the
31.15purposes of sections 126C.50 to 126C.56.
31.16EFFECTIVE DATE.This section is effective the day following final enactment.

31.17    Sec. 35. Minnesota Statutes 2006, section 126C.52, subdivision 2, is amended to read:
31.18    Subd. 2. Limitations. The board of any school district may also borrow money
31.19in the manner and subject to the limitations set forth in sections 126C.50 to 126C.56 in
31.20anticipation of receipt of state aids for schools as defined in Minnesota Statutes and of
31.21federal school aids to be distributed by or through the department. The aggregate of such
31.22borrowings under this subdivision shall never exceed 75 percent of such aids which are
31.23receivable by said school district in the school fiscal year (from July 1 to June 30) in which
31.24the money is borrowed, as estimated and certified by the commissioner.
31.25EFFECTIVE DATE.This section is effective the day following final enactment.

31.26    Sec. 36. Minnesota Statutes 2006, section 126C.52, is amended by adding a
31.27subdivision to read:
31.28    Subd. 3. Intermediate school districts. (a) The board of an intermediate school
31.29district may borrow money in the manner and subject to the limitations set forth in
31.30sections 126C.50 to 126C.56 in anticipation of the receipt of:
31.31    (1) state aids for schools as defined in Minnesota Statutes;
31.32    (2) federal school aids to be distributed by or through the department; and
31.33    (3) membership fees and tuition payments from its member school districts.
32.1    The aggregate of such borrowings under this subdivision shall never exceed 75
32.2percent of such aids, fees, and tuition payments which are receivable by the intermediate
32.3school district in the fiscal year in which the money is borrowed, as estimated and certified
32.4by the commissioner.
32.5    (b) The board of an intermediate school district may, upon receipt of a written
32.6resolution by each of its member school districts, pledge the member district's full faith
32.7and credit and unlimited taxing powers to repay its pro rata share of any certificates issued
32.8or the amount paid by the state under section 126C.55, subdivision 2, plus interest, if the
32.9revenues specified in paragraph (a) and any other revenues of the intermediate school
32.10district are insufficient to do so.
32.11EFFECTIVE DATE.This section is effective the day following final enactment.

32.12    Sec. 37. Minnesota Statutes 2006, section 126C.53, is amended to read:
32.13126C.53 ENABLING RESOLUTION; FORM OF CERTIFICATES OF
32.14INDEBTEDNESS.
32.15    The board of a school district or intermediate school district may authorize and
32.16effect such borrowing, and may issue such certificates of indebtedness upon passage of
32.17a resolution specifying the amount and purposes for which it deems such borrowing is
32.18necessary. The resolution must be adopted by a vote of at least two-thirds of its members.
32.19The board must fix the amount, date, maturity, form, denomination, and other details of
32.20the certificates of indebtedness, not inconsistent with this chapter. The board must fix the
32.21date and place for receipt of bids for the purchase of the certificates when bids are required
32.22and direct the clerk to give notice of the date and place for bidding.
32.23EFFECTIVE DATE.This section is effective the day following final enactment.

32.24    Sec. 38. Minnesota Statutes 2006, section 126C.55, is amended to read:
32.25126C.55 STATE PAYMENT OF DEBT OBLIGATION UPON POTENTIAL
32.26DEFAULT; REPAYMENT; STATE OBLIGATION NOT DEBT.
32.27    Subdivision 1. Definitions. For the purposes of this section, the term "debt
32.28obligation" means:
32.29    (1) a tax or aid anticipation certificate of indebtedness issued under section 126C.52;
32.30    (2) a certificate of participation issued under section 126C.40, subdivision 6; or
32.31    (3) a general obligation bond.
32.32    Subd. 2. Notifications; payment; appropriation. (a) If a school district or
32.33intermediate school district believes that it may be unable to make a principal or interest
32.34payment on any outstanding debt obligation on the date that payment is due, it must
33.1notify the commissioner as soon as possible, but not less than 15 working days before the
33.2date that principal or interest payment is due. The notice must include the name of the
33.3school district or intermediate school district, an identification of the debt obligation issue
33.4in question, the date the payment is due, the amount of principal and interest due on the
33.5payment date, the amount of principal or interest that the school district or intermediate
33.6school district will be unable to repay on that date, the paying agent for the debt obligation,
33.7the wire transfer instructions to transfer funds to that paying agent, and an indication as to
33.8whether a payment is being requested by the school district or intermediate school district
33.9under this section. If a paying agent becomes aware of a potential default, it shall inform
33.10the commissioner of that fact. After receipt of a notice which requests a payment under
33.11this section, after consultation with the school district or intermediate school district and
33.12the paying agent, and after verification of the accuracy of the information provided, the
33.13commissioner shall notify the commissioner of finance of the potential default. The notice
33.14must include a final figure as to the amount due that the school district or intermediate
33.15school district will be unable to repay on the date due.
33.16    (b) Except as provided in subdivision 9, upon receipt of this notice from the
33.17commissioner, the commissioner of finance shall issue a warrant and authorize the
33.18commissioner of education to pay to the paying agent for the debt obligation the specified
33.19amount on or before the date due. The amounts needed for the purposes of this subdivision
33.20are annually appropriated to the department from the state general fund.
33.21    (c) The Departments of Education and Finance must jointly develop detailed
33.22procedures for school districts and intermediate school districts to notify the state that
33.23they have obligated themselves to be bound by the provisions of this section, procedures
33.24for school districts or intermediate school districts and paying agents to notify the state
33.25of potential defaults and to request state payment under this section, and procedures
33.26for the state to expedite payments to prevent defaults. The procedures are not subject
33.27to chapter 14.
33.28    Subd. 3. School district bound; interest rate on state paid amount. If, at the
33.29request of a school district or intermediate school district, the state has paid part or all of
33.30the principal or interest due on a district's debt obligation on a specific date, the school
33.31district or the intermediate school district is bound by all provisions of this section and the
33.32amount paid shall bear taxable interest from the date paid until the date of repayment at
33.33the invested cash rate as it is certified by the commissioner of finance. Interest shall only
33.34accrue on the amounts paid and outstanding less the reduction in aid under subdivision 4
33.35and other payments received from the school district or intermediate school district.
34.1    Subd. 4. Pledge of district's full faith and credit. If, at the request of a school
34.2district or intermediate school district, the state has paid part or all of the principal or
34.3interest due on a district's debt obligation on a specific date, the pledge of the full faith
34.4and credit and unlimited taxing powers of the school district or the intermediate school
34.5district to repay the principal and interest due on those debt obligations shall also, without
34.6an election or the requirement of a further authorization, become a pledge of the full faith
34.7and credit and unlimited taxing powers of the school district or the intermediate school
34.8district to repay to the state the amount paid, with interest. Amounts paid by the state must
34.9be repaid in the order in which the state payments were made.
34.10    Subd. 4a. Aid reduction for repayment. (a) Except as provided in this subdivision,
34.11the state must reduce the state aid payable to the school district or intermediate school
34.12district under this chapter and chapters 122A, 123A, 123B, 124D, 125A, 126C, and 273
34.13by the amount paid by the state under this section on behalf of the district, plus the interest
34.14due on it, and the amount reduced must revert from the appropriate account to the state
34.15general fund. Payments from the school district endowment fund or any federal aid
34.16payments shall not be reduced.
34.17    (b) For an intermediate school district, the state aid payable to the intermediate
34.18school district must first be reduced, before any reduction is made to the state aids payable
34.19to the member districts. If the state aid payable to the intermediate school district is
34.20not sufficient to repay the state, state aid payable to member districts may be reduced
34.21proportionately based on the ratio of each member district's adjusted net tax capacity to
34.22the total adjusted net tax capacity of all member districts.
34.23    (c) If, after review of the financial situation of the school district or intermediate
34.24school district, the commissioner advises the commissioner of finance that a total reduction
34.25of aids would cause an undue hardship on or an undue disruption of the educational
34.26program of the district, the commissioner, with the approval of the commissioner of
34.27finance, may establish a different schedule for reduction of aids to repay the state. The
34.28amount of aids to be reduced is decreased by any amounts repaid to the state by the district
34.29from other revenue sources.
34.30    Subd. 6. Tax levy for repayment. (a) With the approval of the commissioner, a
34.31district may levy in the year the state makes a payment under this section an amount up to
34.32the amount necessary to provide funds for the repayment of the amount paid by the state
34.33plus interest through the date of estimated repayment by the district. The proceeds of this
34.34levy may be used only for this purpose unless they are in excess of the amount actually
34.35due, in which case the excess shall be used to repay other state payments made under this
34.36section or shall be deposited in the debt redemption fund of the school district. This levy
35.1shall be an increase in the levy limits of the district for purposes of section 275.065,
35.2subdivision 6 . The amount of aids to be reduced to repay the state shall be decreased by
35.3the amount levied. This levy by the district is not eligible for debt service equalization
35.4under section 123B.53.
35.5    (b) If the state is not repaid in full for a payment made under this section by
35.6November 30 of the calendar year following the year in which the state makes the
35.7payment, the commissioner shall require the district to certify a property tax levy in an
35.8amount up to the amount necessary to provide funds for repayment of the amount paid by
35.9the state plus interest through the date of estimated repayment by the school district. To
35.10prevent undue hardship, the commissioner may allow the district to certify the levy over a
35.11five-year period. The proceeds of the levy may be used only for this purpose unless they
35.12are in excess of the amount actually due, in which case the excess shall be used to repay
35.13other state payments made under this section or shall be deposited in the debt redemption
35.14fund of the district. This levy shall be an increase in the levy limits of the school district
35.15for purposes of section 275.065, subdivision 6. If the commissioner orders the district
35.16to levy, the amount of aids reduced to repay the state shall be decreased by the amount
35.17levied. This levy by the district is not eligible for debt service equalization under section
35.18123B.53 or any successor provision. A levy under this subdivision must be explained as a
35.19specific increase at the meeting required under section 275.065, subdivision 6.
35.20    (c) For an intermediate school district, a levy made by a member school district
35.21under paragraph (a) or (b) to repay its pro rata share must be spread by the commissioner
35.22as a tax rate based on the total adjusted net tax capacity of the member school districts. The
35.23proceeds of the levy must be remitted by the member school district to the intermediate
35.24school district and must be used by the intermediate school district only to repay the state
35.25amounts owed. Any amount in excess of the amount owed to the state must be repaid
35.26to the member school districts and the commissioner shall adjust each member school
35.27district's property tax levy in the next year.
35.28    Subd. 7. Election as to mandatory application. A school district or intermediate
35.29school district may covenant and obligate itself, prior to the issuance of an issue of debt
35.30obligations, to notify the commissioner of a potential default and to use the provisions of
35.31this section to guarantee payment of the principal and interest on those debt obligations
35.32when due. If the school district or intermediate school district obligates itself to be bound
35.33by this section, it must covenant in the resolution that authorizes the issuance of the debt
35.34obligations to deposit with the paying agent three business days prior to the date on which
35.35a payment is due an amount sufficient to make that payment or to notify the commissioner
35.36under subdivision 1 that it will be unable to make all or a portion of that payment. A school
36.1district or intermediate school district that has obligated itself must include a provision in
36.2its agreement with the paying agent for that issue that requires the paying agent to inform
36.3the commissioner if it becomes aware of a potential default in the payment of principal or
36.4interest on that issue or if, on the day two business days prior to the date a payment is due
36.5on that issue, there are insufficient funds to make the payment on deposit with the paying
36.6agent. Funds invested in a refunding escrow account established under section 475.67 that
36.7are to become available to the paying agent on a principal or interest payment date are
36.8deemed to be on deposit with the paying agent three business days before the payment
36.9date. If a school district or intermediate school district either covenants to be bound by
36.10this section or accepts state payments under this section to prevent a default of a particular
36.11issue of debt obligations, the provisions of this section shall be binding as to that issue
36.12as long as any debt obligation of that issue remain outstanding. If the provisions of this
36.13section are or become binding for more than one issue of debt obligations and a school
36.14district or intermediate school district is unable to make payments on one or more of those
36.15issues, the district must continue to make payments on the remaining issues.
36.16    Subd. 8. Mandatory plan; technical assistance. If the state makes payments
36.17on behalf of a school district or intermediate school district under this section or the
36.18district defaults in the payment of principal or interest on an outstanding debt obligation, it
36.19must submit a plan to the commissioner for approval specifying the measures it intends
36.20to implement to resolve the issues which led to its inability to make the payment and
36.21to prevent further defaults. The department must provide technical assistance to the
36.22school district or intermediate school district in preparing its plan. If the commissioner
36.23determines that a district's plan is not adequate, the commissioner shall notify the school
36.24district or intermediate school district that the plan has been disapproved, the reasons for
36.25the disapproval, and that the state shall not make future payments under this section for
36.26debt obligations issued after the date specified in that notice until its plan is approved.
36.27The commissioner may also notify the school district or intermediate school district that
36.28until its plan is approved, other aids due the district will be withheld after a date specified
36.29in the notice.
36.30    Subd. 9. State bond rating. If the commissioner of finance determines that the
36.31credit rating of the state would be adversely affected thereby, the commissioner of finance
36.32shall not issue warrants under subdivision 2 for the payment of principal or interest on any
36.33debt obligations for which a district did not, prior to their issuance, obligate itself to be
36.34bound by the provisions of this section.
36.35    Subd. 10. Continuing disclosure agreements. The commissioner of finance
36.36may enter into written agreements or contracts relating to the continuing disclosure of
37.1information needed to facilitate the ability of school districts or intermediate school
37.2districts to issue debt obligations according to federal securities laws, rules, and
37.3regulations, including securities and exchange commission rules and regulations, section
37.4240.15c2-12. Such agreements or contracts may be in any form the commissioner of
37.5finance deems reasonable and in the state's best interests.
37.6EFFECTIVE DATE.This section is effective the day following final enactment.

37.7    Sec. 39. [127A.331] SCHOOL ENDOWMENT FUND; USE OF REVENUE.
37.8    A school that receives school endowment fund revenue under section 127A.33
37.9in excess of $36 per pupil in average daily membership may use that revenue only for
37.10the following purposes:
37.11    (1) to purchase or lease computers and related materials, copying machines,
37.12telecommunications equipment, and other noninstructional equipment;
37.13    (2) to purchase or lease assistive technology or equipment for instructional programs;
37.14    (3) to purchase new and replacement library media resources or technology;
37.15    (4) to pay for ongoing or recurring telecommunications/Internet access costs
37.16associated with Internet access, data lines, and video links; and
37.17    (5) to pay for service provider installation fees for installation of new
37.18telecommunications lines or increased bandwidth.
37.19EFFECTIVE DATE.This section is effective for revenue for fiscal year 2010.

37.20    Sec. 40. Minnesota Statutes 2006, section 127A.45, subdivision 16, is amended to read:
37.21    Subd. 16. Payments to third parties. Notwithstanding subdivision 3, the current
37.22year aid payment percentage of the amounts under section 123A.26, subdivision 3 and
37.23section 124D.041, shall be paid in equal installments on August 30, December 30, and
37.24March 30, with a final adjustment payment on October 30 of the next fiscal year of the
37.25remaining amount.

37.26    Sec. 41. Laws 2007, chapter 146, article 2, section 46, subdivision 13, is amended to
37.27read:
37.28    Subd. 13. Preadvanced placement, advanced placement, international
37.29baccalaureate, and concurrent enrollment programs. For preadvanced placement,
37.30advanced placement, international baccalaureate, and concurrent enrollment programs
37.31under Minnesota Statutes, sections 120B.132 and 124D.091:

37.32		$	6,500,000	.....	2008
37.33		$	6,500,000	.....	2009

38.1    Of this amount, $2,500,000 each year is for concurrent enrollment program aid
38.2under Minnesota Statutes, section 124D.091. If the appropriation is insufficient, the
38.3commissioner must proportionately reduce the aid payment to each district. Any balance
38.4in the first year does not cancel but is available in the second year.
38.5    The base appropriation for fiscal year 2010 and later is $2,000,000.
38.6EFFECTIVE DATE.This section is effective the day following final enactment.

38.7    Sec. 42. Laws 2007, chapter 146, article 3, section 23, subdivision 2, is amended to
38.8read:
38.9    Subd. 2. Report. (a) The task force must submit to the education policy and finance
38.10committees of the legislature by February 15, 2008 2009, a report that identifies and
38.11clearly and concisely explains each provision in state law or rule that exceeds or expands
38.12upon a minimum federal requirement contained in law or regulation for providing special
38.13education programs and services to eligible students. The report also must recommend
38.14which state provisions statutes and rules that exceed or expand upon a minimum federal
38.15requirement may be amended to conform with minimum federal requirements or made
38.16more effective as determined by a majority of the task force members. The task force must
38.17recommend rules governing the use of aversive and deprivation procedures by school
38.18district employees or persons under contract with a school district. The task force expires
38.19when it submits its report to the legislature.
38.20    (b) Consistent with subdivision 1, the Department of Education member of the
38.21task force representing regulators shall be replaced with a parent advocate selected by a
38.22statewide organization that advocates on behalf of families with children with disabilities.
38.23    (c) The Department of Education must provide technical assistance at the request of
38.24the task force.
38.25EFFECTIVE DATE.This section is effective the day following final enactment.

38.26    Sec. 43. Laws 2007, chapter 146, article 3, section 24, subdivision 9, is amended to
38.27read:
38.28    Subd. 9. Special Education Task Force. For the task force to compare federal
38.29and state special education requirements:

38.30

$

20,000 40,000

.....

2008

38.31    Any balance in the first year does not cancel but is available in the second year.
38.32    This is a onetime appropriation.
38.33EFFECTIVE DATE.This section is effective the day following final enactment.

39.1    Sec. 44. Laws 2007, chapter 146, article 5, section 13, subdivision 5, is amended to
39.2read:
39.3    Subd. 5. Plainview-Elgin-Millville fund balance replacement aid.
39.4    For fund balance replacement aid for Independent School District No. 2899,
39.5Plainview-Elgin-Millville:

39.6

$

17,000 24,000

.....

2008

39.7    This is a onetime appropriation.
39.8EFFECTIVE DATE.This section is effective the day following final enactment.

39.9    Sec. 45. Laws 2007, chapter 146, article 7, section 4, is amended to read:
39.10    Sec. 4. APPROPRIATIONS; DEPARTMENT OF EDUCATION.
39.11    Subdivision 1. Department of Education. Unless otherwise indicated, the sums
39.12indicated in this section are appropriated from the general fund to the Department of
39.13Education for the fiscal years designated.
39.14    Subd. 2. Department. (a) For the Department of Education:

39.15		$	22,169,000	.....	2008
39.16 39.17		$	22,653,000 21,761,000	.....	2009

39.18    Any balance in the first year does not cancel but is available in the second year.
39.19    (b) $7,000 in fiscal year 2008 is for GRAD test rulemaking.
39.20    (c) $7,000 in fiscal year 2008 is for rulemaking under section 3.
39.21    (d) $40,000 each year is for an early hearing loss intervention coordinator under
39.22Minnesota Statutes, section 125A.63, subdivision 5. If the department expends federal
39.23funds to employ a hearing loss coordinator under Minnesota Statutes, section 125.63,
39.24subdivision 5 , then the appropriation under this paragraph is reallocated for purposes of
39.25employing a world languages coordinator.
39.26    (e) $260,000 each year is for the Minnesota Children's Museum.
39.27    (f) $41,000 each year is for the Minnesota Academy of Science.
39.28    (g) $619,000 in fiscal year 2008 and $632,000 in fiscal year 2009 are for the Board
39.29of Teaching.
39.30    (h) $163,000 in fiscal year 2008 and $171,000 in fiscal year 2009 are for the Board
39.31of School Administrators.
39.32    (i) $50,000 each year is for the Duluth Children's Museum.
39.33    (j) The expenditures of federal grants and aids as shown in the biennial budget
39.34document and its supplements are approved and appropriated and shall be spent as
39.35indicated.
40.1    (k) None of the amounts appropriated under this subdivision may be used for
40.2Minnesota's Washington, D.C., office.

40.3    Sec. 46. Laws 2007, First Special Session chapter 2, article 1, section 11, subdivision
40.41, is amended to read:

40.5

Subdivision 1. Total Appropriation

$

584,000 298,000

40.6The appropriations in this section are from
40.7the general fund. The amounts that may be
40.8spent for each purpose are specified in the
40.9following subdivisions.
40.10EFFECTIVE DATE.This section is effective the day following final enactment.

40.11    Sec. 47. Laws 2007, First Special Session chapter 2, article 1, section 11, subdivision
40.122, is amended to read:

40.13 40.14

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

40.15

(a) Flood Enrollment Impact Aid

89,000

40.16The commissioner of education shall pay to
40.17the school district flood enrollment impact
40.18aid equal to $5,394 times the number of
40.19pupils lost as a result of the floods of August
40.202007. The district must provide to the
40.21commissioner of education documentation
40.22of the number of pupils in average daily
40.23membership lost as a result of the flood.

40.24

(b) Disaster Relief Facilities Grant

250,000 150,000

40.25For facilities cleanup, repair, and replacement
40.26costs related to the floods of August 2007 not
40.27covered by the district's insurance settlement
40.28or through Federal Emergency Management
40.29Agency payments. The commissioner of
40.30education may request the school district
40.31to provide necessary information before
40.32awarding a grant.

40.33

(c) Pupil Transportation Aid

40,000

41.1For increased costs associated with
41.2transporting students as a result of the floods
41.3of August 2007.
41.4EFFECTIVE DATE.This section is effective the day following final enactment.

41.5    Sec. 48. Laws 2007, First Special Session chapter 2, article 1, section 11, subdivision
41.66, is amended to read:

41.7 41.8

Subd. 6. Disaster Relief Facilities Grants to Other Districts

90,00014,000

41.9For facilities cleanup, repair, and replacement
41.10costs related to the floods of August 2007 not
41.11covered by the district's insurance settlement
41.12or through Federal Emergency Management
41.13Agency payments. The commissioner of
41.14education may request the school district
41.15to provide necessary information before
41.16awarding a grant. School districts not
41.17included in subdivisions 2 to 5 must be given
41.18priority in the allocation of this appropriation.
41.19EFFECTIVE DATE.This section is effective the day following final enactment.

41.20    Sec. 49. FUND TRANSFERS.
41.21    Subdivision 1. Capital account transfers. Notwithstanding any law to the contrary,
41.22on June 30, 2008, a school district may transfer money from its reserved for operating
41.23capital account to its undesignated balance in the general fund. The amount transferred
41.24by any school district must not exceed $51 times the district's adjusted marginal cost
41.25pupil units for fiscal year 2007. This transfer may occur only after the school board has
41.26adopted a written resolution stating the amount of the transfer and declaring that the
41.27school district's operating capital needs are being met.
41.28    Subd. 2. Reserved for operating capital account transfer; Balaton school
41.29district. Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, or subdivision
41.301, on June 30, 2008, Independent School District No. 411, Balaton, may transfer up to
41.31$70,000 from its reserved for operating capital account to its undesignated general fund
41.32balance.
41.33    Subd. 3. Reserved for operating capital account transfer; East Central school
41.34district. Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, or subdivision
42.11, on June 30, 2008, Independent School District No. 2580, East Central, may transfer up
42.2to $300,000 from its reserved for operating capital account to its undesignated general
42.3fund balance.
42.4EFFECTIVE DATE.This section is effective the day following final enactment.

42.5    Sec. 50. ONETIME GENERAL EDUCATION REVENUE INCREASE; FISCAL
42.6YEAR 2009 ONLY.
42.7    A school district's general education revenue under Minnesota Statutes, section
42.8126C.10, is increased for fiscal year 2009 only by an amount equal to $51 times the
42.9district's adjusted marginal cost pupil units for that year.

42.10    Sec. 51. IMPLEMENTING A STUDENT GROWTH SYSTEM.
42.11    (a) To implement the requirements of Minnesota Statutes, section 120B.35,
42.12subdivision 3, paragraph (b), and to help parents and members of the public compare
42.13the reported data, the commissioner must convene a group of expert school district
42.14assessment and evaluation staff, including a recognized Minnesota assessment group
42.15composed of assessment and evaluation directors and staff and researchers, and interested
42.16stakeholders, including school superintendents, school principals, school teachers, and
42.17parents to examine the actual statewide performance of students using Minnesota's growth
42.18system and establish criteria for identifying schools and school districts that demonstrate
42.19exceptional growth in order to advance educators' professional development and replicate
42.20programs that succeed in meeting students' diverse learning needs.
42.21    (b) The commissioner must submit a written report to the education committees of
42.22the house of representatives and senate by February 15, 2009, describing the criteria for
42.23identifying schools and school districts that demonstrate exceptional growth.
42.24EFFECTIVE DATE.This section is effective the day following final enactment
42.25and applies to school report cards in the 2008-2009 school year and later.

42.26    Sec. 52. GROWTH SYSTEM.
42.27    The growth system used by the commissioner of education to comply with
42.28Minnesota Statutes, section 120B.35, subdivision 3, paragraph (b), must be consistent with
42.29the growth model contained in the document labeled "Educational Report Card Growth
42.30Model 2008" and developed in partnership with the Minnesota Department of Education.
42.31The document must be deposited with the Minnesota Office of the Revisor of Statutes, the
42.32Minnesota Legislative Reference Library, and the Minnesota State Law Library, where
42.33the document shall be maintained until the commissioner implements the growth system
42.34under Minnesota Statutes, section 120B.35, subdivision 3, paragraph (b). The recognized
43.1Minnesota assessment group composed of assessment and evaluation directors and staff
43.2and researchers under Minnesota Statutes, section 120B.299, subdivision 6, must review
43.3whether the growth model the commissioner uses to comply with Minnesota Statutes,
43.4section 120B.35, subdivision 3, paragraph (b), is consistent with the deposited document
43.5and report its determination to the education committees of the house of representatives
43.6and senate by February 15, 2009.
43.7EFFECTIVE DATE.This section is effective the day following final enactment.

43.8    Sec. 53. APPROPRIATIONS.
43.9    Subdivision 1. Department of Education. The sums indicated in this section are
43.10appropriated from the general fund, unless otherwise indicated, to the Department of
43.11Education for the fiscal years designated.
43.12    Subd. 2. Additional general education revenue. For additional general education
43.13aid according to section 43:

43.14

$

18,926,000

.....

2009

43.15    This appropriation is in addition to any other appropriation for this purpose.
43.16    This 2009 appropriation includes $0 for 2008 and $18,926,000 for 2009.
43.17    Subd. 3. Rushford-Peterson. For a grant to Independent School District No.
43.18239, Rushford-Peterson, for school district flood enrollment impact aid and aid for the
43.19increased costs of transporting students as a result of the floods of August 2007.

43.20

$

158,000

.....

2009

43.21    The base appropriation for fiscal year 2010 is $158,000. The base appropriation for
43.22later years is zero.
43.23    Subd. 4. Virginia. For a grant to Independent School District No. 701, Virginia, for
43.24emergency school facility repairs:

43.25

$

100,000

.....

2009

43.26    This is a onetime appropriation.
43.27    Subd. 5. Lancaster. For a grant to Independent School District No. 356, Lancaster,
43.28to replace the loss of sparsity revenue:

43.29

$

100,000

.....

2009

43.30    The base appropriation for fiscal years 2010 and 2011 is $100,000 per year. The
43.31base appropriation for later fiscal years is zero.
43.32    Subd. 6. Principal's Leadership Institute. For a grant to the Principal's Leadership
43.33Institute under Minnesota Statutes, section 122A.74:

44.1

$

400,000

.....

2009

44.2    The base appropriation for this program for fiscal year 2010 and later is $400,000.
44.3    Subd. 7. Board of Teaching; licensure by portfolio. For the Board of Teaching
44.4for licensure by portfolio:

44.5

$

17,000

.....

2009

44.6    This appropriation is from the educator licensure portfolio account of the special
44.7revenue fund.
44.8    Subd. 8. Report card. For the commissioner of education to fully implement the
44.9state school report card:

44.10

$

.......

.....

2009

44.11    Subd. 9. Minnesota virtual education program. To develop and administer the
44.12Minnesota virtual education program under Minnesota Statutes, section 120B.17:

44.13

$

1,000,000

.....

2009

44.14    The base appropriation for 2010 and later is $1,000,000.
44.15    Subd. 10. Minnesota Teach. To develop and administer the Minnesota Teach
44.16program under Minnesota Statutes, section 122A.245:

44.17

$

250,000

.....

2009

44.18    The fiscal year 2009 amount is for the department to develop the program.
44.19    The base appropriation for fiscal year 2010 and later is $1,750,000. Of this amount,
44.20$250,000 is to administer the program.
44.21    Subd. 11. U Teach program. To provide grant funds for the U Teach program
44.22under Minnesota Statutes, section 122A.635:

44.23

$

250,000

.....

2009

44.24    The base appropriation for fiscal year 2010 and later is $250,000.
44.25    Subd. 12. Mathematics and science teacher centers and institutes. For
44.26mathematics and science teacher centers and institutes:

44.27

$

2,700,000

.....

2009

44.28    $250,000 is for the Department of Education to administer the program.
44.29    The base appropriation for fiscal year 2010 and later is $2,700,000. Of this amount
44.30$250,000 is for the Department of Education to administer the program.

44.31    Sec. 54. REPEALER.
44.32Minnesota Statutes 2006, section 123B.05, and Laws 2007, First Special Session
44.33chapter 2, article 1, section 11, subdivisions 3, and 4, are repealed.
45.1EFFECTIVE DATE.This section is effective the day following final enactment.


45.4    Section 1. Laws 2007, chapter 146, article 1, section 24, subdivision 2, is amended to
45.5read:
45.6    Subd. 2. General education aid. For general education aid under Minnesota
45.7Statutes, section 126C.13, subdivision 4:

45.8 45.9		$	5,618,342,000 5,600,647,000	.....	2008
45.10 45.11		$	5,618,342,000 5,649,098,000	.....	2009

45.12    The 2008 appropriation includes $531,733,000 $536,251,000 for 2007 and
45.13$5,073,250,000 $5,064,396,000 for 2008.
45.14    The 2009 appropriation includes $546,314,000 $543,752,000 for 2008 and
45.15$5,072,028,000 $5,105,346,000 for 2009.

45.16    Sec. 2. Laws 2007, chapter 146, article 1, section 24, subdivision 3, is amended to read:
45.17    Subd. 3. Referendum tax base replacement aid. For referendum tax base
45.18replacement aid under Minnesota Statutes, section 126C.17, subdivision 7a:

45.19

$

870,000861,000

.....

2008

45.20    The 2008 appropriation includes $870,000 $861,000 for 2007 and $0 for 2008.

45.21    Sec. 3. Laws 2007, chapter 146, article 1, section 24, subdivision 4, is amended to read:
45.22    Subd. 4. Enrollment options transportation. For transportation of pupils attending
45.23postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation
45.24of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

45.25		$	95,00048,000	.....	2008
45.26		$	97,00050,000	.....	2009

45.27    Sec. 4. Laws 2007, chapter 146, article 1, section 24, subdivision 5, is amended to read:
45.28    Subd. 5. Abatement revenue. For abatement aid under Minnesota Statutes, section
45.29127A.49 :

45.30 45.31		$	1,343,000 1,333,000	.....	2008
45.32 45.33		$	1,347,000 1,629,000	.....	2009

46.1    The 2008 appropriation includes $76,000 for 2007 and $1,267,000 $1,257,000
46.2for 2008.
46.3    The 2009 appropriation includes $140,000 $139,000 for 2008 and $1,207,000
46.4$1,490,000 for 2009.

46.5    Sec. 5. Laws 2007, chapter 146, article 1, section 24, subdivision 6, is amended to read:
46.6    Subd. 6. Consolidation transition. For districts consolidating under Minnesota
46.7Statutes, section 123A.485:

46.8		$	565,000240,000	.....	2008
46.9		$	212,000339,000	.....	2009

46.10    The 2008 appropriation includes $43,000 for 2007 and $522,000 $197,000 for 2008.
46.11    The 2009 appropriation includes $57,000 $21,000 for 2008 and $155,000 $318,000
46.12for 2009.

46.13    Sec. 6. Laws 2007, chapter 146, article 1, section 24, subdivision 7, is amended to read:
46.14    Subd. 7. Nonpublic pupil education aid. For nonpublic pupil education aid under
46.15Minnesota Statutes, sections 123B.40 to 123B.43, and 123B.87:

46.16 46.17		$	16,290,000 15,601,000	.....	2008
46.18 46.19		$	16,620,000 16,608,000	.....	2009

46.20    The 2008 appropriation includes $1,606,000 $1,214,000 for 2007 and $14,684,000
46.21$14,387,000 for 2008.
46.22    The 2009 appropriation includes $1,631,000 $1,598,000 for 2008 and $14,989,000
46.23$15,010,000 for 2009.

46.24    Sec. 7. Laws 2007, chapter 146, article 1, section 24, subdivision 8, is amended to read:
46.25    Subd. 8. Nonpublic pupil transportation. For nonpublic pupil transportation aid
46.26under Minnesota Statutes, section 123B.92, subdivision 9:

46.27 46.28		$	21,551,000 20,755,000	.....	2008
46.29 46.30		$	21,392,000 21,007,000	.....	2009

46.31    The 2008 appropriation includes $2,124,000 for 2007 and $19,427,000 $18,631,000
46.32for 2008.
46.33    The 2009 appropriation includes $2,158,000 $2,070,000 for 2008 and $19,234,000
46.34$18,937,000 for 2009.

47.1    Sec. 8. Laws 2007, chapter 146, article 2, section 46, subdivision 2, is amended to read:
47.2    Subd. 2. Charter school building lease aid. For building lease aid under Minnesota
47.3Statutes, section 124D.11, subdivision 4:

47.4 47.5		$	31,875,000 32,817,000	.....	2008
47.6 47.7		$	36,193,000 37,527,000	.....	2009

47.8    The 2008 appropriation includes $2,814,000 for 2007 and $29,061,000 $30,003,000
47.9for 2008.
47.10    The 2009 appropriation includes $3,229,000 $3,333,000 for 2008 and $32,964,000
47.11$34,194,000 for 2009.

47.12    Sec. 9. Laws 2007, chapter 146, article 2, section 46, subdivision 3, is amended to read:
47.13    Subd. 3. Charter school startup cost aid. For charter school startup cost aid
47.14under Minnesota Statutes, section 124D.11:

47.15 47.16		$	1,896,000 1,801,000	.....	2008
47.17 47.18		$	2,161,000 1,987,000	.....	2009

47.19    The 2008 appropriation includes $241,000 $239,000 for 2007 and $1,655,000
47.20$1,562,000 for 2008.
47.21    The 2009 appropriation includes $183,000 $173,000 for 2008 and $1,978,000
47.22$1,814,000 for 2009.

47.23    Sec. 10. Laws 2007, chapter 146, article 2, section 46, subdivision 4, is amended to
47.24read:
47.25    Subd. 4. Integration aid. For integration aid under Minnesota Statutes, section
47.26124D.86, subdivision 5 :

47.27 47.28		$	61,769,000 59,036,000	.....	2008
47.29 47.30		$	61,000,000 62,448,000	.....	2009

47.31    The 2008 appropriation includes $5,824,000 for 2007 and $55,945,000 $53,212,000
47.32for 2008.
47.33    The 2009 appropriation includes $6,216,000 $5,912,000 for 2008 and $54,784,000
47.34$56,536,000 for 2009.

47.35    Sec. 11. Laws 2007, chapter 146, article 2, section 46, subdivision 6, is amended to
47.36read:
48.1    Subd. 6. Interdistrict desegregation or integration transportation grants. For
48.2interdistrict desegregation or integration transportation grants under Minnesota Statutes,
48.3section 124D.87:

48.4 48.5		$	9,639,000 9,901,000	.....	2008
48.6 48.7		$	11,567,000 11,881,000	.....	2009

48.8    Sec. 12. Laws 2007, chapter 146, article 2, section 46, subdivision 9, is amended to
48.9read:
48.10    Subd. 9. Tribal contract schools. For tribal contract school aid under Minnesota
48.11Statutes, section 124D.83:

48.12 48.13		$	2,238,000 2,207,000	.....	2008
48.14 48.15		$	2,422,000 2,392,000	.....	2009

48.16    The 2008 appropriation includes $204,000 for 2007 and $2,034,000 $2,003,000
48.17for 2008.
48.18    The 2009 appropriation includes $226,000 $222,000 for 2008 and $2,196,000
48.19$2,170,000 for 2009.

48.21    Sec. 13. Laws 2007, chapter 146, article 3, section 24, subdivision 3, is amended to
48.22read:
48.23    Subd. 3. Aid for children with disabilities. For aid under Minnesota Statutes,
48.24section 125A.75, subdivision 3, for children with disabilities placed in residential facilities
48.25within the district boundaries for whom no district of residence can be determined:

48.26 48.27		$	1,538,000 2,086,000	.....	2008
48.28 48.29		$	1,729,000 2,282,000	.....	2009

48.30    If the appropriation for either year is insufficient, the appropriation for the other
48.31year is available.

48.32    Sec. 14. Laws 2007, chapter 146, article 3, section 24, subdivision 4, is amended to
48.33read:
48.34    Subd. 4. Travel for home-based services. For aid for teacher travel for home-based
48.35services under Minnesota Statutes, section 125A.75, subdivision 1:

49.1		$	254,000207,000	.....	2008
49.2		$	284,000227,000	.....	2009

49.3    The 2008 appropriation includes $22,000 for 2007 and $232,000 $185,000 for 2008.
49.4    The 2009 appropriation includes $25,000 $20,000 for 2008 and $259,000 $207,000
49.5for 2009.

49.7    Sec. 15. Laws 2007, chapter 146, article 4, section 16, subdivision 2, is amended to
49.8read:
49.9    Subd. 2. Health and safety revenue. For health and safety aid according to
49.10Minnesota Statutes, section 123B.57, subdivision 5:

49.11		$	190,000254,000	.....	2008
49.12		$	179,000103,000	.....	2009

49.13    The 2008 appropriation includes $20,000 for 2007 and $170,000 $234,000 for 2008.
49.14    The 2009 appropriation includes $18,000 $26,000 for 2008 and $161,000 $77,000
49.15for 2009.

49.16    Sec. 16. Laws 2007, chapter 146, article 4, section 16, subdivision 3, is amended to
49.17read:
49.18    Subd. 3. Debt service equalization. For debt service aid according to Minnesota
49.19Statutes, section 123B.53, subdivision 6:

49.20 49.21		$	14,813,000 14,814,000	.....	2008
49.22 49.23		$	11,124,000 9,109,000	.....	2009

49.24    The 2008 appropriation includes $1,767,000 $1,766,000 for 2007 and $13,046,000
49.25$13,048,000 for 2008.
49.26    The 2009 appropriation includes $1,450,000 $1,449,000 for 2008 and $9,674,000
49.27$7,660,000 for 2009.

49.28    Sec. 17. Laws 2007, chapter 146, article 4, section 16, subdivision 6, is amended to
49.29read:
49.30    Subd. 6. Deferred maintenance aid. For deferred maintenance aid, according to
49.31Minnesota Statutes, section 123B.591, subdivision 4:

49.32 49.33		$	3,290,000 3,232,000	.....	2008
49.34 49.35		$	2,667,000 2,627,000	.....	2009

50.1    The 2008 appropriation includes $0 for 2007 and $3,290,000 $3,232,000 for 2008.
50.2    The 2009 appropriation includes $365,000 $359,000 for 2008 and $2,302,000
50.3$2,268,000 for 2009.

50.4    Sec. 18. Laws 2007, chapter 146, article 4, section 16, subdivision 8, is amended to
50.5read:
50.6    Subd. 8. School technology and operating capital aid grants. For school
50.7technology and operating capital grants under section 11:

50.8 50.9		$	38,145,000 38,236,000	.....	2008
50.10 50.11		$	52,676,000 52,454,000	.....	2009

50.12    This is a onetime appropriation.

50.14    Sec. 19. Laws 2007, chapter 146, article 5, section 13, subdivision 2, is amended to
50.15read:
50.16    Subd. 2. School lunch. For school lunch aid according to Minnesota Statutes,
50.17section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

50.18 50.19		$	12,022,000 12,094,000	.....	2008
50.20 50.21		$	12,166,000 12,394,000	.....	2009

50.22    Sec. 20. Laws 2007, chapter 146, article 5, section 13, subdivision 3, is amended to
50.23read:
50.24    Subd. 3. Traditional school breakfast; kindergarten milk. For traditional school
50.25breakfast aid and kindergarten milk under Minnesota Statutes, sections 124D.1158 and
50.26124D.118 :

50.27 50.28		$	5,460,000 5,583,000	.....	2008
50.29 50.30		$	5,695,000 5,994,000	.....	2009

50.31    Sec. 21. Laws 2007, chapter 146, article 5, section 13, subdivision 4, is amended to
50.32read:
50.33    Subd. 4. Summer food service replacement aid. For summer food service
50.34replacement aid under Minnesota Statutes, section 124D.119:

51.1		$	150,000127,000	.....	2008
51.2		$	150,000	.....	2009

51.4    Sec. 22. Laws 2007, chapter 146, article 9, section 17, subdivision 2, is amended to
51.5read:
51.6    Subd. 2. Early childhood family education aid. For early childhood family
51.7education aid under Minnesota Statutes, section 124D.135:

51.8 51.9		$	21,106,000 21,092,000	.....	2008
51.10 51.11		$	29,601,000 29,324,000	.....	2009

51.12    The 2008 appropriation includes $1,796,000 for 2007 and $19,310,000 $19,296,000
51.13for 2008.
51.14    The 2009 appropriation includes $2,145,000 $2,144,000 for 2008 and $27,456,000
51.15$27,180,000 for 2009.

51.16    Sec. 23. Laws 2007, chapter 146, article 9, section 17, subdivision 3, is amended to
51.17read:
51.18    Subd. 3. School readiness. For revenue for school readiness programs under
51.19Minnesota Statutes, sections 124D.15 and 124D.16:

51.20 51.21		$	9,995,000 9,987,000	.....	2008
51.22		$	10,095,000	.....	2009

51.23    The 2008 appropriation includes $909,000 $901,000 for 2007 and $9,086,000 for
51.242008.
51.25    The 2009 appropriation includes $1,009,000 for 2008 and $9,086,000 for 2009.

51.26    Sec. 24. Laws 2007, chapter 146, article 9, section 17, subdivision 4, is amended to
51.27read:
51.28    Subd. 4. Health and developmental screening aid. For health and developmental
51.29screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

51.30 51.31		$	3,159,000 2,624,000	.....	2008
51.32 51.33		$	3,330,000 2,656,000	.....	2009

51.34    The 2008 appropriation includes $288,000 for 2007 and $2,871,000 $2,336,000
51.35for 2008.
52.1    The 2009 appropriation includes $319,000 $259,000 for 2008 and $3,011,000
52.2$2,397,000 for 2009.

52.3    Sec. 25. Laws 2007, chapter 146, article 9, section 17, subdivision 8, is amended to
52.4read:
52.5    Subd. 8. Community education aid. For community education aid under
52.6Minnesota Statutes, section 124D.20:

52.7 52.8		$	1,307,000 1,299,000	.....	2008
52.9		$	816,000796,000	.....	2009

52.10    The 2008 appropriation includes $195,000 for 2007 and $1,112,000 $1,104,000
52.11for 2008.
52.12    The 2009 appropriation includes $123,000 $122,000 for 2008 and $693,000
52.13$674,000 for 2009.

52.14    Sec. 26. Laws 2007, chapter 146, article 9, section 17, subdivision 9, is amended to
52.15read:
52.16    Subd. 9. Adults with disabilities program aid. For adults with disabilities
52.17programs under Minnesota Statutes, section 124D.56:

52.18		$	710,000709,000	.....	2008
52.19		$	710,000	.....	2009

52.20    The 2008 appropriation includes $71,000 $70,000 for 2007 and $639,000 for 2008.
52.21    The 2009 appropriation includes $71,000 for 2008 and $639,000 for 2009.
52.22    School districts operating existing adults with disabilities programs that are not fully
52.23funded shall receive full funding for the program beginning in fiscal year 2008 before the
52.24commissioner awards grants to other districts.

52.25    Sec. 27. Laws 2007, chapter 146, article 9, section 17, subdivision 13, is amended to
52.26read:
52.27    Subd. 13. Adult basic education aid. For adult basic education aid under
52.28Minnesota Statutes, section 124D.531:

52.29 52.30		$	40,347,000 40,344,000	.....	2008
52.31 52.32		$	41,745,000 41,712,000	.....	2009

52.33    The 2008 appropriation includes $3,759,000 for 2007 and $36,588,000 $36,585,000
52.34for 2008.
53.1    The 2009 appropriation includes $4,065,000 for 2008 and $37,680,000 $37,647,000
53.2for 2009."
53.3Amend the title accordingly