1.1    .................... moves to amend H. F. No. 234 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2006, section 123B.10, is amended to read:
1.4123B.10 PUBLICATION OF FINANCIAL INFORMATION.
1.5    Subdivision 1. Form of notification. A school board annually must notify the
1.6public of its revenue, expenditures, fund balances, and other relevant budget information.
1.7The board may include the budget information required by this section in the materials
1.8provided as a part of its truth in taxation hearing, post the materials in a conspicuous place
1.9on the district's official Web site, including a link to the district's school report card on the
1.10Department of Education's Web site, or publish the information in a qualified newspaper
1.11of general circulation in the district.
1.12    Subdivision 11a. Budgets. Every board must publish make available revenue and
1.13expenditure budgets for the current year and the actual revenues, expenditures, fund
1.14balances for the prior year and projected fund balances for the current year in a form
1.15prescribed by the commissioner within one week of the acceptance of the final audit by
1.16the board, or November 30, whichever is earlier. The forms prescribed must be designed
1.17so that year to year comparisons of revenue, expenditures and fund balances can be made.
1.18These budgets, reports of revenue, expenditures and fund balances must be published in
1.19a qualified newspaper of general circulation in the district or on the district's official
1.20Web site. If published on the district's official Web site, the district must also publish an
1.21announcement in a qualified newspaper of general circulation in the district that includes
1.22the Internet address where the information has been posted.
1.23    Subd. 2. Debt summary. The board must also publish make available at the same
1.24time a summary of bonds outstanding, paid, and sold; a summary of orders not paid for
1.25want of funds; certificates of indebtedness for the year ending June 30; the statutory
1.26operating debt of the district as defined and certified pursuant to section 123B.81; and the
2.1balance amount of the reserved fund balance reserve account for purposes of statutory
2.2operating debt reduction established pursuant to sections 126C.40 to 126C.45, 126C.48,
2.3and 124D.22.
2.4    Subd. 3. Budget inspection. A statement must be included in the publication
2.5materials or on the school district's Web site that the complete budget in detail may be
2.6inspected by any resident of the district upon request to the chief school administrator.
2.7    Subd. 4. Cost per pupil. The board must also publish make available at the same
2.8time the average cost per pupil in average daily membership educated in that district in
2.9the preceding year. This computation must be made exclusive of debt service or capital
2.10outlay costs.

2.11    Sec. 2. Minnesota Statutes 2006, section 123B.143, subdivision 1, is amended to read:
2.12    Subdivision 1. Contract; duties. All districts maintaining a classified secondary
2.13school must employ a superintendent who shall be an ex officio nonvoting member of the
2.14school board. The authority for selection and employment of a superintendent must be
2.15vested in the board in all cases. An individual employed by a board as a superintendent
2.16shall have an initial employment contract for a period of time no longer than three years
2.17from the date of employment. Any subsequent employment contract must not exceed a
2.18period of three years. A board, at its discretion, may or may not renew an employment
2.19contract. A board must not, by action or inaction, extend the duration of an existing
2.20employment contract. Beginning 365 days prior to the expiration date of an existing
2.21employment contract, a board may negotiate and enter into a subsequent employment
2.22contract to take effect upon the expiration of the existing contract. A subsequent contract
2.23must be contingent upon the employee completing the terms of an existing contract. If a
2.24contract between a board and a superintendent is terminated prior to the date specified in
2.25the contract, the board may not enter into another superintendent contract with that same
2.26individual that has a term that extends beyond the date specified in the terminated contract.
2.27A board may terminate a superintendent during the term of an employment contract for any
2.28of the grounds specified in section 122A.40, subdivision 9 or 13. A superintendent shall
2.29not rely upon an employment contract with a board to assert any other continuing contract
2.30rights in the position of superintendent under section 122A.40. Notwithstanding the
2.31provisions of sections 122A.40, subdivision 10 or 11, 123A.32, 123A.75, or any other law
2.32to the contrary, no individual shall have a right to employment as a superintendent based
2.33on order of employment in any district. If two or more districts enter into an agreement for
2.34the purchase or sharing of the services of a superintendent, the contracting districts have
2.35the absolute right to select one of the individuals employed to serve as superintendent
3.1in one of the contracting districts and no individual has a right to employment as the
3.2superintendent to provide all or part of the services based on order of employment in a
3.3contracting district. The superintendent of a district shall perform the following:
3.4    (1) visit and supervise the schools in the district, report and make recommendations
3.5about their condition when advisable or on request by the board;
3.6    (2) recommend to the board employment and dismissal of teachers;
3.7    (3) superintend school grading practices and examinations for promotions;
3.8    (4) make reports required by the commissioner; and
3.9    (5) by January 10, submit an annual report to the commissioner in a manner
3.10prescribed by the commissioner, in consultation with school districts, identifying the
3.11expenditures that the district requires to ensure an 80 percent student passage rate on the
3.12basic standards test taken in the eighth grade, identifying the highest student passage
3.13rate the district expects it will be able to attain on the basic standards test by grade 12,
3.14the amount of expenditures that the district requires to attain the targeted student passage
3.15rate, and how much the district is cross-subsidizing programs with special education, basic
3.16skills, and general education revenue; and
3.17    (6) perform other duties prescribed by the board.

3.18    Sec. 3. Minnesota Statutes 2006, section 123B.77, subdivision 4, is amended to read:
3.19    Subd. 4. Budget approval. Prior to July 1 of each year, the board of each district
3.20must approve and adopt its revenue and expenditure budgets for the next school year.
3.21The budget document so adopted must be considered an expenditure-authorizing or
3.22appropriations document. No funds shall be expended by any board or district for any
3.23purpose in any school year prior to the adoption of the budget document which authorizes
3.24that expenditure, or prior to an amendment to the budget document by the board to
3.25authorize the expenditure. Expenditures of funds in violation of this subdivision shall be
3.26considered unlawful expenditures. Prior to the appropriation of revenue for the next
3.27school year in the initial budget, the board shall inform the principal or other responsible
3.28administrative authority of each site of the amount of general education and referendum
3.29revenue that the Department of Education estimates will be generated by the pupils
3.30in attendance at each site. For purposes of this subdivision, a district may adjust the
3.31department's estimates for school building openings, school building closings, changes
3.32in attendance area boundaries, or other changes in programs or student demographics
3.33not reflected in the department's calculations. A district must report to the department
3.34any adjustments it makes according to this subdivision in the department's estimates
3.35of compensatory revenue generated by the pupils in attendance at each site, and the
4.1department must use the adjusted compensatory revenue estimates in preparing the report
4.2required under section 123B.76, subdivision 3, paragraph (c).
4.3EFFECTIVE DATE.This section is effective July 1, 2007.

4.4    Sec. 4. Minnesota Statutes 2006, section 123B.79, is amended by adding a subdivision
4.5to read:
4.6    Subd. 9. Elimination of reserve accounts. A school board shall eliminate all
4.7reserve accounts established in the school district's general fund under Minnesota Statutes
4.8before July 1, 2006, for which no specific authority remains in statute as of June 30,
4.92007. Any balance in the district's reserved for bus purchases account as of June 30,
4.102007, shall be transferred to the reserved account for operating capital in the school
4.11district's general fund. Any balance in other reserved accounts established in the school
4.12district's general fund under Minnesota Statutes before July 1, 2006, for which no specific
4.13authority remains in statute as of June 30, 2007, shall be transferred to the school district's
4.14unreserved general fund balance. A school board may, upon adoption of a resolution by
4.15the school board, establish a designated account for any program for which a reserved
4.16account has been eliminated.
4.17EFFECTIVE DATE.This section is effective June 30, 2007.

4.18    Sec. 5. Minnesota Statutes 2006, section 205A.03, subdivision 1, is amended to read:
4.19    Subdivision 1. Required Resolution requiring primary in certain circumstances.
4.20    In The school board of a school district election, may, by resolution adopted by June 1 of
4.21any year, decide to choose nominees for school board by a primary as provided in this
4.22section. The resolution, when adopted, is effective for all ensuing elections of board
4.23members in that school district until it is revoked. If the board decides to choose nominees
4.24by primary and if there are more than two candidates for a specified school board position
4.25or more than twice as many school board candidates as there are at-large school board
4.26positions available, a the school district must hold a primary.

4.27    Sec. 6. Minnesota Statutes 2006, section 205A.06, subdivision 1a, is amended to read:
4.28    Subd. 1a. Filing period. In school districts that have adopted a resolution to choose
4.29nominees for school board by a primary election, affidavits of candidacy must be filed
4.30with the school district clerk no earlier than the 70th day and no later than the 56th day
4.31before the first Tuesday after the second Monday in September in the year when the
4.32school district general election is held. In all other school districts, affidavits of candidacy
4.33must be filed no earlier than the 70th day and no later than the 56th day before the school
4.34district general election.

5.1    Sec. 7. DEPARTMENT OF EDUCATION REPORT.
5.2    The Department of Education must provide a report to the education committees
5.3of the legislature by January 15, 2008. The report must analyze the department's data
5.4collection procedures under each of the department's major data reporting systems and
5.5recommend a streamlined, Web-based system of reporting school district data. The report
5.6must also analyze any stand-alone school district reporting requirements and recommend
5.7elimination of any district reports that are duplicative of other data already collected
5.8by the department.
5.9EFFECTIVE DATE.This section is effective the day following final enactment.

5.10    Sec. 8. REPEALER.
5.11Minnesota Statutes 2006, sections 123B.749; 124D.081, subdivision 9; and 124D.69,
5.12subdivision 2, are repealed.
5.13EFFECTIVE DATE.This section is effective July 1, 2007."
5.14Amend the title accordingly