1.1    .................... moves to amend H. F. No. 3316 as follows:
1.2Delete everything after the enacting clause and insert:


1.5    Section 1. Minnesota Statutes 2006, section 123B.14, subdivision 7, is amended to read:
1.6    Subd. 7. Clerk records. The clerk shall keep a record of all meetings of the
1.7district and the board in books provided by the district for that purpose. The clerk shall,
1.8within three days after an election, notify all persons elected of their election. By August
1.9September 15 of each year the clerk shall file with the board a report of the revenues,
1.10expenditures and balances in each fund for the preceding fiscal year. The report together
1.11with vouchers and supporting documents shall subsequently be examined by a public
1.12accountant or the state auditor, either of whom shall be paid by the district, as provided
1.13in section 123B.77, subdivision 3. The board shall by resolution approve the report or
1.14require a further or amended report. By August September 15 of each year, the clerk shall
1.15make and transmit to the commissioner certified reports, showing:
1.16    (1) The condition and value of school property;
1.17    (2) (1) The revenues and expenditures in detail, and such other financial information
1.18required by law, rule, or as may be called for by the commissioner;
1.19    (3) (2) The length of school term and the enrollment and attendance by grades; and
1.20    (4) (3) Such other items of information as may be called for by the commissioner.
1.21    The clerk shall enter in the clerk's record book copies of all reports and of the
1.22teachers' term reports, as they appear in the registers, and of the proceedings of any
1.23meeting as furnished by the clerk pro tem, and keep an itemized account of all the
1.24expenses of the district. The clerk shall furnish to the auditor of the proper county, by
1.25October 10 September 30 of each year, an attested copy of the clerk's record, showing the
1.26amount of money proposed property taxes voted by the district or the board for school
2.1purposes; draw and sign all orders upon the treasurer for the payment of money for bills
2.2allowed by the board for salaries of officers and for teachers' wages and all claims, to be
2.3countersigned by the chair. Such orders must state the consideration, payee, and the
2.4fund and the clerk shall take a receipt therefor. Teachers' wages shall have preference in
2.5the order in which they become due, and no money applicable for teachers' wages shall
2.6be used for any other purpose, nor shall teachers' wages be paid from any fund except
2.7that raised or apportioned for that purpose.

2.8    Sec. 2. Minnesota Statutes 2006, section 123B.77, subdivision 3, is amended to read:
2.9    Subd. 3. Statement for comparison and correction. (a) By November 30 of the
2.10calendar year of the submission of the unaudited financial data, the district must provide to
2.11the commissioner audited financial data for the preceding fiscal year. The audit must be
2.12conducted in compliance with generally accepted governmental auditing standards, the
2.13federal Single Audit Act, and the Minnesota legal compliance guide issued by the Office
2.14of the State Auditor. An audited financial statement prepared in a form which will allow
2.15comparison with and correction of material differences in the unaudited financial data
2.16shall be submitted to the commissioner and the state auditor by December 31. The audited
2.17financial statement must also provide a statement of assurance pertaining to uniform
2.18financial accounting and reporting standards compliance and a copy of the management
2.19letter submitted to the district by the school district's auditor.
2.20    (b) By January February 15 of the calendar year following the submission of the
2.21unaudited financial data, the commissioner shall convert the audited financial data
2.22required by this subdivision into the consolidated financial statement format required
2.23under subdivision 1a and publish the information on the department's Web site.

2.24    Sec. 3. Minnesota Statutes 2006, section 123B.81, subdivision 3, is amended to read:
2.25    Subd. 3. Debt verification. The commissioner shall establish a uniform auditing or
2.26other verification procedure for districts to determine whether a statutory operating debt
2.27exists in any Minnesota school district as of June 30, 1977. This procedure must identify
2.28all interfund transfers made during fiscal year 1977 from a fund included in computing
2.29statutory operating debt to a fund not included in computing statutory operating debt.
2.30The standards for this uniform auditing or verification procedure must be promulgated
2.31by the state board pursuant to chapter 14. If a district applies to the commissioner for
2.32a statutory operating debt verification or if the unaudited financial statement for the
2.33school year ending June 30, 1977 reveals that a statutory operating debt might exist, the
2.34commissioner shall require a verification of the amount of the statutory operating debt
2.35which actually does exist.

3.1    Sec. 4. Minnesota Statutes 2007 Supplement, section 123B.81, subdivision 4, is
3.2amended to read:
3.3    Subd. 4. Debt elimination. If an audit or other verification procedure conducted
3.4pursuant to subdivision 3 determines that a statutory operating debt exists, a district
3.5must follow the procedures set forth in this section 123B.83 to eliminate this statutory
3.6operating debt.

3.7    Sec. 5. Minnesota Statutes 2006, section 123B.81, subdivision 5, is amended to read:
3.8    Subd. 5. Certification of debt. The commissioner shall certify the amount of
3.9statutory operating debt for each district. Prior to June 30, 1979, the commissioner may,
3.10on the basis of corrected figures, adjust the total amount of statutory operating debt
3.11certified for any district.

3.12    Sec. 6. Minnesota Statutes 2006, section 123B.83, subdivision 3, is amended to read:
3.13    Subd. 3. Failure to limit expenditures. If a district does not limit its expenditures in
3.14accordance with this section, the commissioner may so notify the appropriate committees
3.15of the legislature by no later than January 1 February 15 of the year following the end
3.16of that fiscal year.

3.17    Sec. 7. Minnesota Statutes 2007 Supplement, section 126C.10, subdivision 34, is
3.18amended to read:
3.19    Subd. 34. Basic alternative teacher compensation aid. (a) For fiscal years
3.202007 and later, 2008, and 2009, the basic alternative teacher compensation aid for a
3.21school district with a plan approved under section 122A.414, subdivision 2b, equals 65
3.2273.1 percent of the alternative teacher compensation revenue under section 122A.415,
3.23subdivision 1 . The basic alternative teacher compensation aid for an intermediate school
3.24district or charter school with a plan approved under section 122A.414, subdivisions 2a
3.25and 2b , if the recipient is a charter school, equals $260 times the number of pupils enrolled
3.26in the school on October 1 of the previous fiscal year, or on October 1 of the current fiscal
3.27year for a charter school in the first year of operation, times the ratio of the sum of the
3.28alternative teacher compensation aid and alternative teacher compensation levy for all
3.29participating school districts to the maximum alternative teacher compensation revenue
3.30for those districts under section 122A.415, subdivision 1.
3.31    (b) For fiscal years 2010 and later, the basic alternative teacher compensation aid
3.32for a school district with a plan approved under section 122A.414, subdivision 2b, equals
3.3365 percent of the alternative teacher compensation revenue under section 122A.415,
3.34subdivision 1. The basic alternative teacher compensation aid for an intermediate school
4.1district or charter school with a plan approved under section 122A.414, subdivisions 2a
4.2and 2b, if the recipient is a charter school, equals $260 times the number of pupils enrolled
4.3in the school on October 1 of the previous fiscal year, or on October 1 of the current fiscal
4.4year for a charter school in the first year of operation, times the ratio of the sum of the
4.5alternative teacher compensation aid and alternative teacher compensation levy for all
4.6participating school districts to the maximum alternative teacher compensation revenue
4.7for those districts under section 122A.415, subdivision 1.
4.8    (b) (c) Notwithstanding paragraphs (a) and (b) and section 122A.415, subdivision
4.91 , the state total basic alternative teacher compensation aid entitlement must not exceed
4.10$75,636,000 for fiscal year 2007 and later. The commissioner must limit the amount
4.11of alternative teacher compensation aid approved under section 122A.415 so as not to
4.12exceed these limits.
4.13EFFECTIVE DATE.This section is effective the day following final enactment.

4.14    Sec. 8. Minnesota Statutes 2006, section 126C.40, subdivision 6, is amended to read:
4.15    Subd. 6. Lease purchase; installment buys. (a) Upon application to, and approval
4.16by, the commissioner in accordance with the procedures and limits in subdivision 1,
4.17paragraphs (a) and (b), a district, as defined in this subdivision, may:
4.18    (1) purchase real or personal property under an installment contract or may lease
4.19real or personal property with an option to purchase under a lease purchase agreement, by
4.20which installment contract or lease purchase agreement title is kept by the seller or vendor
4.21or assigned to a third party as security for the purchase price, including interest, if any; and
4.22    (2) annually levy the amounts necessary to pay the district's obligations under the
4.23installment contract or lease purchase agreement.
4.24    (b) The obligation created by the installment contract or the lease purchase
4.25agreement must not be included in the calculation of net debt for purposes of section
4.26475.53 , and does not constitute debt under other law. An election is not required in
4.27connection with the execution of the installment contract or the lease purchase agreement.
4.28    (c) The proceeds of the levy authorized by this subdivision must not be used to
4.29acquire a facility to be primarily used for athletic or school administration purposes.
4.30    (d) For the purposes of this subdivision, "district" means:
4.31    (1) a racially isolated school district or a school district with a racially identifiable
4.32school required to have a comprehensive desegregation or integration plan for the
4.33elimination of segregation under Minnesota Rules, parts 3535.0100 to 3535.0180, which
4.34is eligible for revenue under section 124D.86, subdivision 3, clause (1), (2), or (3),
4.35and whose plan has been determined by the commissioner to be in compliance with
5.1Department of Education rules relating to equality of educational opportunity and school
5.2desegregation and, for a district eligible for revenue under section 124D.86, subdivision 3,
5.3clause (4) or (5), where the acquisition of property under this subdivision is determined by
5.4the commissioner to contribute to the implementation of the desegregation plan; or
5.5    (2) a school district that participates in a joint program for interdistrict desegregation
5.6with a district defined in clause (1) if the facility acquired under this subdivision is to
5.7be primarily used for the joint program and the commissioner determines that the joint
5.8programs are being undertaken to implement the districts' desegregation plan.
5.9    (e) Notwithstanding subdivision 1, the prohibition against a levy by a district to lease
5.10or rent a district-owned building to itself does not apply to levies otherwise authorized
5.11by this subdivision.
5.12    (f) For the purposes of this subdivision, any references in subdivision 1 to building
5.13or land shall include personal property.

5.14    Sec. 9. Minnesota Statutes 2007 Supplement, section 127A.49, subdivision 2, is
5.15amended to read:
5.16    Subd. 2. Abatements. Whenever by virtue of chapter 278, sections 270C.86,
5.17375.192 , or otherwise, the net tax capacity or referendum market value of any district for
5.18any taxable year is changed after the taxes for that year have been spread by the county
5.19auditor and the local tax rate as determined by the county auditor based upon the original
5.20net tax capacity is applied upon the changed net tax capacities, the county auditor shall,
5.21prior to February 1 of each year, certify to the commissioner of education the amount of
5.22any resulting net revenue loss that accrued to the district during the preceding year. Each
5.23year, the commissioner shall pay an abatement adjustment to the district in an amount
5.24calculated according to the provisions of this subdivision. This amount shall be deducted
5.25from the amount of the levy authorized by section 126C.46. The amount of the abatement
5.26adjustment must be the product of:
5.27    (1) the net revenue loss as certified by the county auditor, times
5.28    (2) the ratio of:
5.29    (i) the sum of the amounts of the district's certified levy in the third preceding year
5.30according to the following:
5.31    (A) section 123B.57, if the district received health and safety aid according to that
5.32section for the second preceding year;
5.33    (B) section 124D.20, if the district received aid for community education programs
5.34according to that section for the second preceding year;
6.1    (C) section 124D.135, subdivision 3, if the district received early childhood family
6.2education aid according to section 124D.135 for the second preceding year;
6.3    (D) section 126C.17, subdivision 6, if the district received referendum equalization
6.4aid according to that section for the second preceding year;
6.5    (E) section 126C.13, if the district received general education aid according to
6.6section 126C.13, subdivision 4, paragraph (b), clause (1), of that section in the second
6.7preceding year;
6.8    (F) (E) section 126C.10, subdivision 13a, if the district received operating capital aid
6.9according to section 126C.10, subdivision 13b, in the second preceding year;
6.10    (G) (F) section 126C.10, subdivision 29, if the district received equity aid according
6.11to section 126C.10, subdivision 30, in the second preceding year;
6.12    (H) (G) section 126C.10, subdivision 32, if the district received transition aid
6.13according to section 126C.10, subdivision 33, in the second preceding year;
6.14    (I) (H) section 123B.53, subdivision 5, if the district received debt service
6.15equalization aid according to section 123B.53, subdivision 6, in the second preceding year;
6.16    (J) (I) section 124D.22, subdivision 3, if the district received school-age care aid
6.17according to section 124D.22, subdivision 4, in the second preceding year;
6.18    (K) (J) section 123B.591, subdivision 3, if the district received deferred maintenance
6.19aid according to section 123B.591, subdivision 4, in the second preceding year; and
6.20    (L) (K) section 126C.10, subdivision 35, if the district received alternative teacher
6.21compensation equalization aid according to section 126C.10, subdivision 36, paragraph
6.22(a), in the second preceding year; to
6.23    (ii) the total amount of the district's certified levy in the third preceding December,
6.24plus or minus auditor's adjustments.

6.25    Sec. 10. Minnesota Statutes 2007 Supplement, section 127A.49, subdivision 3, is
6.26amended to read:
6.27    Subd. 3. Excess tax increment. (a) If a return of excess tax increment is made to a
6.28district pursuant to sections 469.176, subdivision 2, and 469.177, subdivision 9, or upon
6.29decertification of a tax increment district, the school district's aid and levy limitations
6.30must be adjusted for the fiscal year in which the excess tax increment is paid under the
6.31provisions of this subdivision.
6.32    (b) An amount must be subtracted from the district's aid for the current fiscal year
6.33equal to the product of:
6.34    (1) the amount of the payment of excess tax increment to the district, times
6.35    (2) the ratio of:
7.1    (i) the sum of the amounts of the district's certified levy for the fiscal year in which
7.2the excess tax increment is paid according to the following:
7.3    (A) section 123B.57, if the district received health and safety aid according to that
7.4section for the second preceding year;
7.5    (B) section 124D.20, if the district received aid for community education programs
7.6according to that section for the second preceding year;
7.7    (C) section 124D.135, subdivision 3, if the district received early childhood family
7.8education aid according to section 124D.135 for the second preceding year;
7.9    (D) section 126C.17, subdivision 6, if the district received referendum equalization
7.10aid according to that section for the second preceding year;
7.11    (E) section 126C.13, if the district received general education aid according to
7.12section 126C.13, subdivision 4, paragraph (b), clause (1), of that section in the second
7.13preceding year;
7.14    (F) (E) section 126C.10, subdivision 13a, if the district received operating capital aid
7.15according to section 126C.10, subdivision 13b, in the second preceding year;
7.16    (G) (F) section 126C.10, subdivision 29, if the district received equity aid according
7.17to section 126C.10, subdivision 30, in the second preceding year;
7.18    (H) (G) section 126C.10, subdivision 32, if the district received transition aid
7.19according to section 126C.10, subdivision 33, in the second preceding year;
7.20    (I) (H) section 123B.53, subdivision 5, if the district received debt service
7.21equalization aid according to section 123B.53, subdivision 6, in the second preceding year;
7.22    (J) (I) section 124D.22, subdivision 3, if the district received school-age care aid
7.23according to section 124D.22, subdivision 4, in the second preceding year;
7.24    (K) (J) section 123B.591, subdivision 3, if the district received deferred maintenance
7.25aid according to section 123B.591, subdivision 4, in the second preceding year; and
7.26    (L) (K) section 126C.10, subdivision 35, if the district received alternative teacher
7.27compensation equalization aid according to section 126C.10, subdivision 36, paragraph
7.28(a), in the second preceding year; to
7.29    (ii) the total amount of the district's certified levy for the fiscal year, plus or minus
7.30auditor's adjustments.
7.31    (c) An amount must be subtracted from the school district's levy limitation for the
7.32next levy certified equal to the difference between:
7.33    (1) the amount of the distribution of excess increment; and
7.34    (2) the amount subtracted from aid pursuant to clause (a).
7.35    If the aid and levy reductions required by this subdivision cannot be made to the aid
7.36for the fiscal year specified or to the levy specified, the reductions must be made from
8.1aid for subsequent fiscal years, and from subsequent levies. The school district must use
8.2the payment of excess tax increment to replace the aid and levy revenue reduced under
8.3this subdivision.
8.4    (d) This subdivision applies only to the total amount of excess increments received
8.5by a district for a calendar year that exceeds $25,000.


8.8    Section 1. Minnesota Statutes 2006, section 120B.02, is amended to read:
8.9120B.02 EDUCATIONAL EXPECTATIONS FOR MINNESOTA'S
8.10STUDENTS.
8.11    (a) The legislature is committed to establishing rigorous academic standards for
8.12Minnesota's public school students. To that end, the commissioner shall adopt in rule
8.13statewide academic standards. The commissioner shall not prescribe in rule or otherwise
8.14the delivery system, classroom assessments, or form of instruction that school sites must
8.15use. For purposes of this chapter, a school site is a separate facility, or a separate program
8.16within a facility that a local school board recognizes as a school site for funding purposes.
8.17    (b) All commissioner actions regarding the rule must be premised on the following:
8.18    (1) the rule is intended to raise academic expectations for students, teachers, and
8.19schools;
8.20    (2) any state action regarding the rule must evidence consideration of school district
8.21autonomy; and
8.22    (3) the Department of Education, with the assistance of school districts, must make
8.23available information about all state initiatives related to the rule to students and parents,
8.24teachers, and the general public in a timely format that is appropriate, comprehensive, and
8.25readily understandable.
8.26    (c) When fully implemented, the requirements for high school graduation in
8.27Minnesota must require students to satisfactorily complete, as determined by the school
8.28district, the course credit requirements under section 120B.024 and: successfully pass
8.29graduation examinations required under section 120B.30.
8.30    (1) for students enrolled in grade 8 before the 2005-2006 school year, to pass the
8.31basic skills test requirements; and
8.32    (2) for students enrolled in grade 8 in the 2005-2006 school year and later, to pass
8.33the Minnesota Comprehensive Assessments Second Edition (MCA-IIs).
8.34    (d) The commissioner shall periodically review and report on the state's assessment
8.35process.
9.1    (e) School districts are not required to adopt specific provisions of the federal
9.2School-to-Work programs.

9.3    Sec. 2. Minnesota Statutes 2007 Supplement, section 120B.021, subdivision 1, is
9.4amended to read:
9.5    Subdivision 1. Required academic standards. The following subject areas are
9.6required for statewide accountability:
9.7    (1) language arts;
9.8    (2) mathematics;
9.9    (3) science;
9.10    (4) social studies, including history, geography, economics, and government and
9.11citizenship;
9.12    (5) health and physical education, for which locally developed academic standards
9.13apply; and
9.14    (6) the arts, for which statewide or locally developed academic standards apply, as
9.15determined by the school district. Public elementary and middle schools must offer at least
9.16three and require at least two of the following four arts areas: dance; music; theater; and
9.17visual arts. Public high schools must offer at least three and require at least one of the
9.18following five arts areas: media arts; dance; music; theater; and visual arts.
9.19    The commissioner must submit proposed standards in science and social studies to
9.20the legislature by February 1, 2004.
9.21For purposes of applicable federal law, the academic standards for language arts,
9.22mathematics, and science apply to all public school students, except the very few students
9.23with extreme cognitive or physical impairments for whom an individualized education
9.24plan team has determined that the required academic standards are inappropriate.
9.25An individualized education plan team that makes this determination must establish
9.26alternative standards with appropriate alternate achievement standards based on these
9.27academic standards for students with individualized education plans.
9.28    A school district, no later than the 2007-2008 school year, must adopt graduation
9.29requirements that meet or exceed state graduation requirements established in law or
9.30rule. A school district that incorporates these state graduation requirements before the
9.312007-2008 school year must provide students who enter the 9th grade in or before
9.32the 2003-2004 school year the opportunity to earn a diploma based on existing locally
9.33established graduation requirements in effect when the students entered the 9th grade.
9.34District efforts to develop, implement, or improve instruction or curriculum as a result
10.1of the provisions of this section must be consistent with sections 120B.10, 120B.11,
10.2and 120B.20.
10.3    The commissioner must include the contributions of Minnesota American Indian
10.4tribes and communities as they relate to the academic standards during the review and
10.5revision of the required academic standards.

10.6    Sec. 3. Minnesota Statutes 2006, section 120B.023, subdivision 2, is amended to read:
10.7    Subd. 2. Revisions and reviews required. (a) The commissioner of education must
10.8revise and appropriately embed technology and information literacy standards consistent
10.9with recommendations from school media specialists into the state's academic standards
10.10and graduation requirements and implement a review cycle for state academic standards
10.11and related benchmarks, consistent with this subdivision. During each review cycle, the
10.12commissioner also must examine the alignment of each required academic standard and
10.13related benchmark with the knowledge and skills students need for college readiness and
10.14advanced work in the particular subject area.
10.15    (b) The commissioner in the 2006-2007 school year must revise and align the state's
10.16academic standards and high school graduation requirements in mathematics to require
10.17that students satisfactorily complete the revised mathematics standards, beginning in the
10.182010-2011 school year. Under the revised standards:
10.19    (1) students must satisfactorily complete an algebra I credit by the end of eighth
10.20grade; and
10.21    (2) students scheduled to graduate in the 2014-2015 school year or later must
10.22satisfactorily complete an algebra II credit or its equivalent.
10.23The commissioner also must ensure that the statewide mathematics assessments
10.24administered to students in grades 3 through 8 and 11 beginning in the 2010-2011 school
10.25year are aligned with the state academic standards in mathematics. The commissioner
10.26must ensure that the statewide 11th grade mathematics test assessment administered to
10.27students under clause (2) in grade 11 beginning in the 2013-2014 school year must
10.28include is aligned with state academic standards in mathematics, including algebra II test
10.29items that are aligned with corresponding state academic standards in mathematics. The
10.30commissioner must implement a review of the academic standards and related benchmarks
10.31in mathematics beginning in the 2015-2016 school year.
10.32    (c) The commissioner in the 2007-2008 school year must revise and align the state's
10.33academic standards and high school graduation requirements in the arts to require that
10.34students satisfactorily complete the revised arts standards beginning in the 2010-2011
11.1school year. The commissioner must implement a review of the academic standards and
11.2related benchmarks in arts beginning in the 2016-2017 school year.
11.3    (d) The commissioner in the 2008-2009 school year must revise and align the
11.4state's academic standards and high school graduation requirements in science to require
11.5that students satisfactorily complete the revised science standards, beginning in the
11.62011-2012 school year. The commissioner also must ensure that the statewide science
11.7assessments administered to students under section 120B.30, subdivision 1a, beginning
11.8in the 2011-2012 school year, are aligned with the state academic standards in science.
11.9Under the revised standards, students scheduled to graduate in the 2014-2015 school year
11.10or later must satisfactorily complete a chemistry or physics credit. The commissioner
11.11must implement a review of the academic standards and related benchmarks in science
11.12beginning in the 2017-2018 school year.
11.13    (e) The commissioner in the 2009-2010 school year must revise and align the state's
11.14academic standards and high school graduation requirements in language arts to require
11.15that students satisfactorily complete the revised language arts standards beginning in the
11.162012-2013 school year. The commissioner also must ensure that the statewide language
11.17arts assessments administered to students in grades 3 through 8 and grade 10 beginning
11.18in the 2012-2013 school year are aligned with the state academic standards in language
11.19arts. The commissioner must implement a review of the academic standards and related
11.20benchmarks in language arts beginning in the 2018-2019 school year.
11.21    (f) The commissioner in the 2010-2011 school year must revise and align the state's
11.22academic standards and high school graduation requirements in social studies to require
11.23that students satisfactorily complete the revised social studies standards beginning in the
11.242013-2014 school year. The commissioner must implement a review of the academic
11.25standards and related benchmarks in social studies beginning in the 2019-2020 school year.
11.26    (g) School districts and charter schools must revise and align local academic
11.27standards and high school graduation requirements in health, physical education, world
11.28languages, and career and technical education to require students to complete the revised
11.29standards beginning in a school year determined by the school district or charter school.
11.30School districts and charter schools must formally establish a periodic review cycle for
11.31the academic standards and related benchmarks in health, physical education, world
11.32languages, and career and technical education.

11.33    Sec. 4. Minnesota Statutes 2006, section 120B.131, subdivision 2, is amended to read:
11.34    Subd. 2. Reimbursement for examination fees. The state may reimburse
11.35college-level examination program (CLEP) fees for a Minnesota public or nonpublic high
12.1school student who has successfully completed one or more college-level courses in high
12.2school in the subject matter of each examination in the following subjects: composition
12.3and literature, mathematics and science, social sciences and history, foreign languages, and
12.4business and humanities. The state may reimburse each student for up to six examination
12.5fees. The commissioner shall establish application procedures and a process and schedule
12.6for fee reimbursements. The commissioner must give priority to reimburse the CLEP
12.7examination fees of students of low-income families.

12.8    Sec. 5. Minnesota Statutes 2007 Supplement, section 120B.15, is amended to read:
12.9120B.15 GIFTED AND TALENTED STUDENTS PROGRAMS.
12.10    (a) School districts may identify students, locally develop programs, provide
12.11staff development, and evaluate programs to provide gifted and talented students with
12.12challenging educational programs.
12.13    (b) School districts may adopt guidelines for assessing and identifying students for
12.14participation in gifted and talented programs. The guidelines should include the use of:
12.15    (1) multiple and objective criteria; and
12.16    (2) assessments and procedures that are valid and reliable, fair, and based on current
12.17theory and research.; and
12.18    (3) an identification appeals process.
12.19    (c) School districts must adopt procedures for the academic acceleration of gifted
12.20and talented students. These procedures must include how the district will:
12.21    (1) assess a student's readiness and motivation for acceleration; and
12.22    (2) match the level, complexity, and pace of the curriculum to a student to achieve
12.23the best type of academic acceleration for that student.

12.24    Sec. 6. [120B.299] DEFINITIONS.
12.25    Subdivision 1. Definitions. The definitions in this section apply to this chapter.
12.26    Subd. 2. Growth. "Growth" compares the difference between a student's
12.27achievement score at two distinct points in time.
12.28    Subd. 3. Value-added. "Value-added" is the amount of achievement a student
12.29demonstrates above an established baseline.
12.30    Subd. 4. Growth-based value-added. "Growth-based value-added" is a
12.31value-added system of assessments that measures the difference between an established
12.32baseline of growth and a student's growth over time.
12.33    Subd. 5. Adequate yearly progress. Adequate yearly progress compares the
12.34average achievement of two different groups of students at two different points in time.
13.1    Subd. 6. State growth norm. "State growth norm" is an established statewide
13.2percentile or standard applicable to all students in a particular grade benchmarked to an
13.3established school year. Beginning in the 2008-2009 school year, the state growth norm
13.4is benchmarked to 2006-2007 school year data until the commissioner next changes the
13.5vertically linked scale score. Each time the commissioner changes the vertically linked
13.6scale score, a recognized Minnesota assessment group composed of assessment and
13.7evaluation directors and staff and researchers, in collaboration with the Independent Office
13.8of Educational Accountability under section 120B.31, subdivision 3, must recommend a
13.9new state growth norm that the commissioner shall consider with the revised standards.
13.10For each newly established state growth norm, the commissioner also must establish
13.11criteria for identifying schools and school districts that demonstrate accelerated growth
13.12in order to advance educators' professional development and to replicate programs that
13.13succeed in meeting students' diverse learning needs.
13.14EFFECTIVE DATE.This section is effective the day following final enactment.

13.15    Sec. 7. Minnesota Statutes 2007 Supplement, section 120B.30, is amended to read:
13.16120B.30 STATEWIDE TESTING AND REPORTING SYSTEM.
13.17    Subdivision 1. Statewide testing. (a) The commissioner, with advice from experts
13.18with appropriate technical qualifications and experience and stakeholders, consistent with
13.19subdivision 1a, shall include in the comprehensive assessment system, for each grade
13.20level to be tested, state-constructed tests developed from and aligned with the state's
13.21required academic standards under section 120B.021 and administered annually to all
13.22students in grades 3 through 8 and at the high school level. A state-developed test in a
13.23subject other than writing, developed after the 2002-2003 school year, must include both
13.24machine-scoreable and constructed response questions. The commissioner shall establish
13.25one or more months during which schools shall administer the tests to students each
13.26school year. Schools that the commissioner identifies for stand-alone field testing or other
13.27national sampling must participate as directed. Superintendents or charter school directors
13.28may appeal in writing to the commissioner for an exemption from a field test based on
13.29undue hardship. The commissioner's decision regarding the appeal is final. For students
13.30enrolled in grade 8 before the 2005-2006 school year, only Minnesota basic skills tests in
13.31reading, mathematics, and writing shall fulfill students' basic skills testing requirements for
13.32a passing state notation. The passing scores of basic skills tests in reading and mathematics
13.33are the equivalent of 75 percent correct for students entering grade 9 in 1997 and thereafter,
13.34as based on the first uniform test administration of administered in February 1998.
14.1    (b) For students enrolled in grade 8 in the 2005-2006 school year and later, only the
14.2following options shall fulfill students' state graduation test requirements:
14.3    (1) for reading and mathematics:
14.4    (i) obtaining an achievement level equivalent to or greater than proficient as
14.5determined through a standard setting process on the Minnesota comprehensive
14.6assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing
14.7score as determined through a standard setting process on the graduation-required
14.8assessment for diploma in grade 10 for reading and grade 11 for mathematics or
14.9subsequent retests;
14.10    (ii) achieving a passing score as determined through a standard setting process on the
14.11state-identified language proficiency test in reading and the mathematics test for English
14.12language learners or the graduation-required assessment for diploma equivalent of those
14.13assessments for students designated as English language learners;
14.14    (iii) achieving an individual passing score on the graduation-required assessment
14.15for diploma as determined by appropriate state guidelines for students with an individual
14.16education plan or 504 plan;
14.17    (iv) obtaining achievement level equivalent to or greater than proficient as
14.18determined through a standard setting process on the state-identified alternate assessment
14.19or assessments in grade 10 for reading and grade 11 for mathematics for students with
14.20an individual education plan; or
14.21    (v) achieving an individual passing score on the state-identified alternate assessment
14.22or assessments as determined by appropriate state guidelines for students with an
14.23individual education plan; and
14.24    (2) for writing:
14.25    (i) achieving a passing score on the graduation-required assessment for diploma;
14.26    (ii) achieving a passing score as determined through a standard setting process on
14.27the state-identified language proficiency test in writing for students designated as English
14.28language learners;
14.29    (iii) achieving an individual passing score on the graduation-required assessment
14.30for diploma as determined by appropriate state guidelines for students with an individual
14.31education plan or 504 plan; or
14.32    (iv) achieving an individual passing score on the state-identified alternate assessment
14.33or assessments as determined by appropriate state guidelines for students with an
14.34individual education plan.
14.35     (c) The 3rd through 8th grade and high school level test results shall be available
14.36to districts for diagnostic purposes affecting student learning and district instruction and
15.1curriculum, and for establishing educational accountability. The commissioner must
15.2disseminate to the public the test results upon receiving those results.
15.3     (d) State tests must be constructed and aligned with state academic standards. The
15.4commissioner shall determine the testing process and the order of administration shall be
15.5determined by the commissioner. The statewide results shall be aggregated at the site and
15.6district level, consistent with subdivision 1a.
15.7     (e) In addition to the testing and reporting requirements under this section, the
15.8commissioner shall include the following components in the statewide public reporting
15.9system:
15.10    (1) uniform statewide testing of all students in grades 3 through 8 and at the high
15.11school level that provides appropriate, technically sound accommodations, alternate
15.12assessments, or exemptions consistent with applicable federal law, only with parent or
15.13guardian approval, for those very few students for whom the student's individual education
15.14plan team under sections 125A.05 and 125A.06 determines that the general statewide test
15.15is inappropriate for a student, or for a limited English proficiency student under section
15.16124D.59, subdivision 2 ;
15.17    (2) educational indicators that can be aggregated and compared across school
15.18districts and across time on a statewide basis, including average daily attendance, high
15.19school graduation rates, and high school drop-out rates by age and grade level;
15.20    (3) state results on the American College Test; and
15.21    (4) state results from participation in the National Assessment of Educational
15.22Progress so that the state can benchmark its performance against the nation and other
15.23states, and, where possible, against other countries, and contribute to the national effort
15.24to monitor achievement.
15.25    Subd. 1a. Statewide and local assessments; results. (a) The commissioner must
15.26develop reading, mathematics, and science assessments aligned with state academic
15.27standards that districts and sites must use to monitor student growth toward achieving
15.28those standards. The commissioner must not develop statewide assessments for academic
15.29standards in social studies, health and physical education, and the arts. The commissioner
15.30must require:
15.31    (1) annual reading and mathematics assessments in grades 3 through 8 and at the
15.32high school level for the 2005-2006 school year and later; and
15.33    (2) annual science assessments in one grade in the grades 3 through 5 span, the
15.34grades 6 through 9 8 span, and a life sciences assessment in the grades 10 9 through 12
15.35span for the 2007-2008 school year and later.
16.1    (b) The commissioner must ensure that all statewide tests administered to elementary
16.2and secondary students measure students' academic knowledge and skills and not students'
16.3values, attitudes, and beliefs.
16.4    (c) Reporting of assessment results must:
16.5    (1) provide timely, useful, and understandable information on the performance of
16.6individual students, schools, school districts, and the state;
16.7    (2) include, by no later than the 2008-2009 school year, a growth-based value-added
16.8component that is in addition to a measure for student achievement growth over time
16.9indicator of student achievement under section 120B.35, subdivision 3, paragraph (b); and
16.10    (3)(i) for students enrolled in grade 8 before the 2005-2006 school year, determine
16.11whether students have met the state's basic skills requirements; and
16.12    (ii) for students enrolled in grade 8 in the 2005-2006 school year and later, determine
16.13whether students have met the state's academic standards.
16.14    (d) Consistent with applicable federal law and subdivision 1, paragraph (d), clause
16.15(1), the commissioner must include appropriate, technically sound accommodations or
16.16alternative assessments for the very few students with disabilities for whom statewide
16.17assessments are inappropriate and for students with limited English proficiency.
16.18    (e) A school, school district, and charter school must administer statewide
16.19assessments under this section, as the assessments become available, to evaluate student
16.20progress in achieving the proficiency in the context of the state's grade level academic
16.21standards. If a state assessment is not available, a school, school district, and charter
16.22school must determine locally if a student has met the required academic standards. A
16.23school, school district, or charter school may use a student's performance on a statewide
16.24assessment as one of multiple criteria to determine grade promotion or retention. A
16.25school, school district, or charter school may use a high school student's performance on a
16.26statewide assessment as a percentage of the student's final grade in a course, or place a
16.27student's assessment score on the student's transcript.
16.28    Subd. 2. Department of Education assistance. The Department of Education
16.29shall contract for professional and technical services according to competitive bidding
16.30procedures under chapter 16C for purposes of this section.
16.31    Subd. 3. Reporting. The commissioner shall report test data publicly and to
16.32stakeholders, including the performance achievement levels developed from students'
16.33unweighted test scores in each tested subject and a listing of demographic factors that
16.34strongly correlate with student performance. The commissioner shall also report data that
16.35compares performance results among school sites, school districts, Minnesota and other
16.36states, and Minnesota and other nations. The commissioner shall disseminate to schools
17.1and school districts a more comprehensive report containing testing information that
17.2meets local needs for evaluating instruction and curriculum.
17.3    Subd. 4. Access to tests. The commissioner must adopt and publish a policy
17.4to provide public and parental access for review of basic skills tests, Minnesota
17.5Comprehensive Assessments, or any other such statewide test and assessment. Upon
17.6receiving a written request, the commissioner must make available to parents or guardians
17.7a copy of their student's actual responses to the test questions to be reviewed by the
17.8parent for their review.
17.9EFFECTIVE DATE.This section is effective the day following final enactment.

17.10    Sec. 8. Minnesota Statutes 2006, section 120B.31, as amended by Laws 2007, chapter
17.11146, article 2, section 10, is amended to read:
17.12120B.31 SYSTEM ACCOUNTABILITY AND STATISTICAL
17.13ADJUSTMENTS.
17.14    Subdivision 1. Educational accountability and public reporting. Consistent
17.15with the process direction to adopt a results-oriented graduation rule statewide academic
17.16standards under section 120B.02, the department, in consultation with education and other
17.17system stakeholders, must establish maintain a coordinated and comprehensive system of
17.18educational accountability and public reporting that promotes higher greater academic
17.19achievement, preparation for higher academic education, preparation for the world of
17.20work, citizenship as outlined under sections 120B.021, subdivision 1, clause (4), and
17.21120B.024, paragraph (a), clause (4), and the arts.
17.22    Subd. 2. Statewide testing. Each school year, all school districts shall give a
17.23uniform statewide test to students at specified grades to provide information on the status,
17.24needs and performance of Minnesota students.
17.25    Subd. 3. Educational accountability. (a) The Independent Office of Educational
17.26Accountability, as authorized by Laws 1997, First Special Session chapter 4, article 5,
17.27section 28, subdivision 2, is established, and shall be funded through the Board of Regents
17.28of the University of Minnesota. The office shall advise the education committees of
17.29the legislature and the commissioner of education, at least on a biennial basis, on the
17.30degree to which the statewide educational accountability and reporting system includes a
17.31comprehensive assessment framework that measures school accountability for students
17.32achieving the goals described in the state's results-oriented high school graduation
17.33rule. The office shall determine and annually report to the legislature whether and how
17.34effectively:
18.1    (1) the statewide system of educational accountability utilizes uses multiple
18.2indicators to provide valid and reliable comparative and contextual data on students,
18.3schools, districts, and the state, and if not, recommend ways to improve the accountability
18.4reporting system;
18.5    (2) the commissioner makes statistical adjustments when reporting student data over
18.6time, consistent with clause (4);
18.7    (3) the commissioner uses indicators of student achievement growth a growth-based
18.8value-added indicator of student achievement over time and a value-added assessment
18.9model that estimates the effects of the school and school district on student achievement to
18.10measure school performance, consistent with section 120B.36, subdivision 1 120B.35,
18.11subdivision 3, paragraph (b);
18.12    (4) the commissioner makes data available on students who do not pass one or more
18.13of the state's required GRAD tests and do not receive a diploma as a consequence, and
18.14categorizes these data according to gender, race, eligibility for free or reduced lunch, and
18.15English language proficiency; and
18.16    (5) the commissioner fulfills the requirements under section 127A.095, subdivision 2.
18.17    (b) When the office reviews the statewide educational accountability and reporting
18.18system, it shall also consider:
18.19    (1) the objectivity and neutrality of the state's educational accountability system; and
18.20    (2) the impact of a testing program on school curriculum and student learning.
18.21    Subd. 4. Statistical adjustments; student performance data. In developing
18.22managing policies and assessment processes to hold schools and districts accountable
18.23for high levels of academic standards under section 120B.021, the commissioner shall
18.24aggregate student data over time to report student performance and growth levels
18.25measured at the school, school district, regional, or and statewide level. When collecting
18.26and reporting the performance data, the commissioner shall: (1) acknowledge the impact
18.27of significant demographic factors such as residential instability, the number of single
18.28parent families, parents' level of education, and parents' income level on school outcomes;
18.29and (2) organize and report the data so that state and local policy makers can understand
18.30the educational implications of changes in districts' demographic profiles over time. Any
18.31report the commissioner disseminates containing summary data on student performance
18.32must integrate student performance and the demographic factors that strongly correlate
18.33with that performance.
18.34EFFECTIVE DATE.This section is effective the day following final enactment.

19.1    Sec. 9. Minnesota Statutes 2006, section 120B.35, as amended by Laws 2007, chapter
19.2147, article 8, section 38, is amended to read:
19.3120B.35 STUDENT ACADEMIC ACHIEVEMENT AND PROGRESS
19.4GROWTH.
19.5    Subdivision 1. Adequate yearly progress of schools and students School and
19.6student indicators of growth and achievement. The commissioner must develop
19.7and implement maintain a system for measuring and reporting academic achievement
19.8and individual student progress growth, consistent with the statewide educational
19.9accountability and reporting system. The system components of the system must measure
19.10the adequate yearly progress of schools and the growth of individual students: students'
19.11current achievement in schools under subdivision 2; and individual students' educational
19.12progress growth over time under subdivision 3. The system also must include statewide
19.13measures of student academic achievement growth that identify schools with high levels
19.14of achievement growth, and also schools with low levels of achievement growth that need
19.15improvement. When determining a school's effect, the data must include both statewide
19.16measures of student achievement and, to the extent annual tests are administered,
19.17indicators of achievement growth that take into account a student's prior achievement.
19.18Indicators of achievement and prior achievement must be based on highly reliable
19.19statewide or districtwide assessments. Indicators that take into account a student's prior
19.20achievement must not be used to disregard a school's low achievement or to exclude
19.21a school from a program to improve low achievement levels. The commissioner by
19.22January 15, 2002, must submit a plan for integrating these components to the chairs of
19.23the legislative committees having policy and budgetary responsibilities for elementary
19.24and secondary education.
19.25    Subd. 2. Expectations for federally mandated student academic achievement.
19.26    (a) Each school year, a school district must determine if the student achievement levels
19.27at each school site meet state and local federally mandated expectations. If student
19.28achievement levels at a school site do not meet state and local federally mandated
19.29expectations and the site has not made adequate yearly progress for two consecutive
19.30school years, beginning with the 2001-2002 school year, the district must work with the
19.31school site to adopt a plan to raise student achievement levels to meet state and local
19.32federally mandated expectations. The commissioner of education shall establish student
19.33academic achievement levels to comply with this paragraph.
19.34    (b) School sites identified as not meeting federally mandated expectations must
19.35develop continuous improvement plans in order to meet state and local federally mandated
19.36expectations for student academic achievement. The department, at a district's request,
20.1must assist the district and the school site in developing a plan to improve student
20.2achievement. The plan must include parental involvement components.
20.3    (c) The commissioner must:
20.4    (1) provide assistance to assist school sites and districts identified as not meeting
20.5federally mandated expectations; and
20.6    (2) provide technical assistance to schools that integrate student progress measures
20.7under subdivision 3 in the school continuous improvement plan.
20.8    (d) The commissioner shall establish and maintain a continuous improvement Web
20.9site designed to make data on every school and district available to parents, teachers,
20.10administrators, community members, and the general public.
20.11    Subd. 3. Student progress assessment growth; other state measures. (a)
20.12The state's educational assessment system component measuring individual students'
20.13educational progress must be growth is based, to the extent annual tests are administered,
20.14on indicators of achievement growth that show an individual student's prior achievement.
20.15Indicators of achievement and prior achievement must be are based on highly reliable
20.16statewide or districtwide assessments.
20.17    (b) The commissioner must identify effective models for measuring individual
20.18student progress that enable a school district or school site to perform gains-based
20.19analysis, including evaluating the effects of the teacher, school, and school district on
20.20student achievement over time. At least one model must be a "value-added" assessment
20.21model that reliably estimates those effects for classroom settings where a single teacher
20.22teaches multiple subjects to the same group of students, for team teaching arrangements,
20.23and for other teaching circumstances. use a growth-based value-added system. The
20.24commissioner must apply the state growth norm to students in grades 4 through 8
20.25beginning in the 2008-2009 school year, consistent with section 120B.299, subdivision
20.266, initially benchmarking the state growth norm to 2006-2007 school year data. The
20.27model must allow the user to:
20.28    (1) report student growth at and above the state norm; and
20.29    (2) for all student categories with a cell size of at least 20, report and compare
20.30aggregated and disaggregated state growth data using the nine student categories identified
20.31under the federal 2001 No Child Left Behind Act and two student gender categories of
20.32male and female, respectively. The model must measure the effects on student growth at
20.33the teacher team level, grade teacher teams level, school level, and school district level.
20.34    (c) If a district has an accountability plan that includes gains-based analysis or
20.35"value-added" assessment, the commissioner shall, to the extent practicable, incorporate
20.36those measures in determining whether the district or school site meets expectations. The
21.1department must coordinate with the district in evaluating school sites and continuous
21.2improvement plans, consistent with best practices If a district has an accountability
21.3plan that includes other growth-based value-added analysis, the commissioner may, to
21.4the extent practicable and consistent with this section, incorporate those measures in
21.5determining whether the district or school site shows growth.
21.6    (d) When reporting student performance under section 120B.36, subdivision 1, the
21.7commissioner annually, beginning July 1, 2011, must report two core measures indicating
21.8the extent to which current high school graduates are being prepared for postsecondary
21.9academic and career opportunities:
21.10    (1) a preparation measure indicating the number and percentage of high school
21.11graduates in the most recent school year who completed course work important to
21.12preparing them for postsecondary academic and career opportunities, consistent with the
21.13core academic subjects required for admission to Minnesota's public four-year colleges
21.14and universities as determined by the Minnesota Office of Higher Education under chapter
21.15136A; and
21.16    (2) a rigorous coursework measure indicating the number and percentage of high
21.17school graduates in the most recent school year who successfully completed one or more
21.18college-level advanced placement, international baccalaureate, postsecondary enrollment
21.19options including concurrent enrollment, other rigorous courses of study under section
21.20120B.021, subdivision 1a, or industry certification courses or programs.
21.21When reporting the core measures under clauses (1) and (2), the commissioner must also
21.22analyze and report separate categories of information using the nine student categories
21.23identified under the federal 2001 No Child Left Behind Act and two student gender
21.24categories of male and female, respectively.
21.25    (d) When reporting student performance under section 120B.36, subdivision 1, the
21.26commissioner annually, beginning July 1, 2011, must include summary data showing
21.27student's average self-reported sense of school safety, engagement in school, and the
21.28quality of students' relationship with teachers, administrators, and other students. The
21.29commissioner must gather these data consistently from students in grade 4 or 5, in one
21.30grade level in grades 6 through 8, and in one grade level in high school, as determined by
21.31the commissioner in consultation with recognized and qualified experts.
21.32    Subd. 4. Improving schools. Consistent with the requirements of this section, the
21.33commissioner of education must establish a second achievement benchmark to identify
21.34improving schools. The commissioner must recommend to annually report to the public
21.35and the legislature by February 15, 2002, indicators in addition to the achievement
21.36benchmark for identifying improving schools, including an indicator requiring a school to
22.1demonstrate ongoing successful use of best teaching practices best practices learned from
22.2those schools that demonstrate accelerated growth compared to the state growth norm.
22.3    The commissioner also must use those learned best practices to provide additional
22.4assistance and intervention support to a district or school site that does not meet either
22.5federally mandated expectations or the state growth norm.
22.6    Subd. 5. Improving graduation rates for students with emotional or behavioral
22.7disorders. (a) A district must develop strategies in conjunction with parents of students
22.8with emotional or behavioral disorders and the county board responsible for implementing
22.9sections 245.487 to 245.4889 to keep students with emotional or behavioral disorders in
22.10school, when the district has a drop-out rate for students with an emotional or behavioral
22.11disorder in grades 9 through 12 exceeding 25 percent.
22.12    (b) A district must develop a plan in conjunction with parents of students with
22.13emotional or behavioral disorders and the local mental health authority to increase the
22.14graduation rates of students with emotional or behavioral disorders. A district with a
22.15drop-out rate for children with an emotional or behavioral disturbance in grades 9 through
22.1612 that is in the top 25 percent of all districts shall submit a plan for review and oversight
22.17to the commissioner.
22.18EFFECTIVE DATE.Subdivision 3, paragraph (b), applies to students in the
22.192009-2010 school year and later. Subdivision 3, paragraph (c), applies to students in the
22.202010-2011 school year and later. Subdivision 3, paragraph (d), applies to high school
22.21students in the 2009-2010 school year and later, and to students in any grades 4 through 8
22.22in the 2010-2011 school year and later, consistent with the commissioner's grade level
22.23determinations. Subdivision 4 applies in the 2011-2012 school year and later.

22.24    Sec. 10. Minnesota Statutes 2006, section 120B.36, as amended by Laws 2007, chapter
22.25146, article 2, section 11, is amended to read:
22.26120B.36 SCHOOL ACCOUNTABILITY; APPEALS PROCESS.
22.27    Subdivision 1. School performance report cards. (a) The commissioner shall
22.28use objective criteria based on levels of student performance to report at least student
22.29academic performance under section 120B.35, subdivision 2, the percentages of students
22.30at and above the state growth norm under section 120B.35, subdivision 3, paragraph (b),
22.31school safety and student engagement under section 120B.35, subdivision 3, paragraph
22.32(d), rigorous coursework under section 120B.35, subdivision 3, paragraph (c), two
22.33separate student-to-teacher ratios that clearly indicate the definition of teacher consistent
22.34with sections 122A.06 and 122A.15 for purposes of determining these ratios, and staff
22.35characteristics excluding salaries, with a value-added component added no later than
23.1the 2008-2009 school year student enrollment demographics, district mobility, and
23.2extracurricular activities. The report must indicate a school's adequate yearly progress
23.3status, and must not set any designations applicable to high- and low-performing schools
23.4due solely to adequate yearly progress status.
23.5    (b) The commissioner shall develop, annually update, and post on the department
23.6Web site school performance report cards.
23.7    (c) The commissioner must make available the first performance report cards by
23.8November 2003, and during the beginning of each school year thereafter.
23.9    (d) A school or district may appeal its adequate yearly progress or other status
23.10determination in writing to the commissioner within 30 days of receiving the notice of its
23.11status. determination. The commissioner must give the affected school or school district
23.12notice and the opportunity for a hearing before an appeals advisory committee within 30
23.13days after the commissioner receives the written appeal. The commissioner must notify
23.14the school or district of the date, time, and place of the hearing at least 21 days before
23.15the hearing date. Within 30 days after the hearing, the appeals advisory committee must
23.16submit a written recommendation to the commissioner regarding whether to grant or
23.17deny the appeal and include the reasons for its recommendation. The commissioner must
23.18finally decide an appeal based on an objective evaluation and must make and transmit to
23.19the school or district the commissioner's evaluation and final decision within 15 days of
23.20receiving the advisory committee recommendation. The commissioner, after consulting
23.21with the appeals advisory committee, may postpone the hearing date under special
23.22circumstances. The appeals advisory committee is composed of five members:
23.23    (1) a representative of a statewide professional teachers' organization selected by the
23.24organization;
23.25    (2) a representative of a statewide organization of school administrators selected
23.26by the organization;
23.27    (3) a representative of a statewide parent and teachers organization selected by the
23.28organization;
23.29    (4) a representative of a statewide commerce organization having a significant
23.30interest in K-12 education selected by the organization; and
23.31    (5) a representative of a statewide school boards association selected by the
23.32organization.
23.33    Three members of the appeals advisory committee shall serve two-year terms and
23.34two members of the appeals advisory committee shall serve three-year terms beginning
23.35July 1, 2008. Appeals advisory committee members' terms and other matters are subject to
23.36section 15.059. The commissioner must reimburse appeals advisory committee members
24.1from federal revenue the department receives under the No Child Left Behind Act. The
24.2appeals advisory committee does not expire.
24.3    The commissioner must seek the advice of the appeals advisory committee before
24.4deciding an appeal. The commissioner's decision to uphold or deny an appeal is final.
24.5    (e) School performance report cards card data are nonpublic data under section
24.613.02, subdivision 9 , until not later than ten days after the appeal procedure described in
24.7paragraph (d) concludes. The department shall annually post school performance report
24.8cards to its public Web site no later than September 1.
24.9    Subd. 1a. GRAD test appeals. (a) Consistent with this subdivision, the
24.10commissioner must collaborate with high school teachers, high school administrators,
24.11parents of high school students, school district assessment directors, higher education
24.12faculty with expertise in kindergarten through grade 12 education and assessment, and
24.13other interested experts and stakeholders to establish a timely, transparent, and data-based
24.14appeals process that allows school districts, at their discretion, to grant a diploma to high
24.15school seniors in the 2008-2009, 2009-2010, and 2010-2011 school years who do not
24.16receive a passing score on the state reading or math GRAD test.
24.17    (b) A high school student in the 2008-2009, 2009-2010, or 2010-2011 school year
24.18who does not receive a passing score on the state reading or math GRAD test by April of
24.19the student's senior year may appeal to the chief administrator of the high school where
24.20the student is enrolled, in the form and manner the commissioner determines, requesting
24.21that the school district grant the student a high school diploma without passing the reading
24.22or math GRAD test. The high school administrator, in collaboration with teachers and
24.23other school staff selected by the administrator, must formally decide whether or not to
24.24grant the student a high school diploma based on multiple, well-understood measures of
24.25student learning that measurement experts have determined to be valid and reliable and
24.26that are available to the educators deciding whether or not to grant the student's request.
24.27School district officials must use the data that form the bases of the student appeals under
24.28this subdivision, where appropriate, to revise district curriculum to ensure that all students
24.29have an equal opportunity to learn and provide appropriate academic intervention and
24.30remediation to students who fail to pass the state's reading or math GRAD test.
24.31    (c) The commissioner must evaluate the effectiveness and impact of the appeals
24.32process and recommend to the legislature by February 1, 2011, whether or not to continue
24.33the appeals process under this subdivision. If the commissioner recommends continuing
24.34this process, the commissioner also must recommend student performance levels for the
24.35state reading and math GRAD tests and the appropriate indicators for school districts to
25.1consider in deciding whether or not to grant a diploma to high school seniors who do not
25.2receive a passing score on the state reading or math GRAD test.
25.3    Subd. 2. Adequate yearly progress data. All data the department receives,
25.4collects, or creates for purposes of determining to determine adequate yearly progress
25.5designations status under Public Law 107-110, section 1116, set state growth norms, and
25.6determine student growth are nonpublic data under section 13.02, subdivision 9, until not
25.7later than ten days after the appeal procedure described in subdivision 1, paragraph (d),
25.8concludes. Districts must provide parents sufficiently detailed summary data to permit
25.9parents to appeal under Public Law 107-110, section 1116(b)(2). The department shall
25.10annually post federally mandated adequate yearly progress data and state student growth
25.11data to its public Web site no later than September 1.
25.12EFFECTIVE DATE.This section is effective the day following final enactment.

25.13    Sec. 11. Minnesota Statutes 2006, section 120B.362, is amended to read:
25.14120B.362 GROWTH-BASED VALUE-ADDED ASSESSMENT PROGRAM.
25.15    (a) The commissioner of education must implement a growth-based value-added
25.16assessment program to assist school districts, public schools, and charter schools in
25.17assessing and reporting individual students' growth in academic achievement under section
25.18120B.30, subdivision 1a . The program must use assessments of individual students'
25.19academic achievement to make longitudinal comparisons of each student's academic
25.20growth over time. School districts, public schools, and charter schools may apply to the
25.21commissioner to participate in the initial trial program using a form and in the manner the
25.22commissioner prescribes. The commissioner must select program participants from urban,
25.23suburban, and rural areas throughout the state.
25.24    (b) The commissioner may issue a request for proposals to contract with an
25.25organization that provides a value-added assessment model that reliably estimates school
25.26and school district effects on students' academic achievement over time. The model the
25.27commissioner selects must accommodate diverse data and must use each student's test
25.28data across grades. Data on individual teachers generated under the model are personnel
25.29data under section 13.43.
25.30    (c) The contract under paragraph (b) must be consistent with the definition of "best
25.31value" under section 16C.02, subdivision 4.
25.32EFFECTIVE DATE.This section is effective the day following final enactment.

25.33    Sec. 12. Minnesota Statutes 2006, section 121A.55, is amended to read:
25.34121A.55 POLICIES TO BE ESTABLISHED.
26.1    (a) The commissioner of education shall promulgate guidelines to assist each
26.2school board. Each school board shall establish uniform criteria for dismissal and adopt
26.3written policies and rules to effectuate the purposes of sections 121A.40 to 121A.56.
26.4The policies shall emphasize preventing dismissals through early detection of problems
26.5and shall be designed to address students' inappropriate behavior from recurring. The
26.6policies shall recognize the continuing responsibility of the school for the education of
26.7the pupil during the dismissal period. The alternative educational services, if the pupil
26.8wishes to take advantage of them, must be adequate to allow the pupil to make progress
26.9towards meeting the graduation standards adopted under section 120B.02 and help prepare
26.10the pupil for readmission.
26.11    (b) An area learning center under section 123A.05 may not prohibit an expelled or
26.12excluded pupil from enrolling solely because a district expelled or excluded the pupil. The
26.13board of the area learning center may use the provisions of the Pupil Fair Dismissal Act to
26.14exclude a pupil or to require an admission plan.
26.15    (c) Each school district shall develop a policy and report it to the commissioner on
26.16the appropriate use of peace officers and crisis teams to remove students who have an
26.17individualized education plan from school grounds.
26.18    (d) Each school district must include in the student policies it annually disseminates
26.19to students and their parents an expectation that students cooperate with educators and,
26.20as educators and circumstances direct, provide information to educators on school
26.21disciplinary, classroom, and other education and school matters. For purposes of this
26.22paragraph, the requirements of section 13.04 apply only when a school administrator
26.23asks a student to provide information to the school administrator that may lead to the
26.24student's expulsion.
26.25EFFECTIVE DATE.This section is effective the day following final enactment.

26.26    Sec. 13. Minnesota Statutes 2006, section 122A.07, subdivision 2, is amended to read:
26.27    Subd. 2. Eligibility; board composition. Except for the representatives of higher
26.28education and the public, to be eligible for appointment to the Board of Teaching a person
26.29must be a teacher currently teaching in a Minnesota school and fully licensed for the
26.30position held and have at least five years teaching experience in Minnesota, including the
26.31two years immediately preceding nomination and appointment. Each nominee, other than
26.32a public nominee, must be selected on the basis of professional experience and knowledge
26.33of teacher education, accreditation, and licensure. The board must be composed of:
27.1    (1) six teachers who are currently teaching in a Minnesota school or who were
27.2teaching at the time of the appointment, at least four of whom must be teaching in a
27.3public school;
27.4    (2) one higher education representative, who must be a faculty member preparing
27.5teachers;
27.6    (3) one school administrator; and
27.7    (4) three members of the public, two of whom must be present or former members
27.8of school boards.

27.9    Sec. 14. Minnesota Statutes 2006, section 122A.07, subdivision 3, is amended to read:
27.10    Subd. 3. Vacant position. With the exception of a teacher who retires from teaching
27.11during the course of completing a board term, the position of a member who leaves
27.12Minnesota or whose employment status changes to a category different from that from
27.13which appointed is deemed vacant.

27.14    Sec. 15. Minnesota Statutes 2006, section 122A.09, subdivision 4, is amended to read:
27.15    Subd. 4. License and rules. (a) The board must adopt rules to license public school
27.16teachers and interns subject to chapter 14.
27.17    (b) The board must adopt rules requiring a person to successfully complete a skills
27.18examination in reading, writing, and mathematics as a requirement for initial teacher
27.19licensure. Such rules must require college and universities offering a board-approved
27.20teacher preparation program to provide remedial assistance to persons who did not
27.21achieve a qualifying score on the skills examination, including those for whom English is
27.22a second language.
27.23    (c) The board must adopt rules to approve teacher preparation programs. The board,
27.24upon the request of a postsecondary student preparing for teacher licensure or a licensed
27.25graduate of a teacher preparation program, shall assist in resolving a dispute between the
27.26person and a postsecondary institution providing a teacher preparation program when the
27.27dispute involves an institution's recommendation for licensure affecting the person or the
27.28person's credentials. At the board's discretion, assistance may include the application
27.29of chapter 14.
27.30    (d) The board must provide the leadership and shall adopt rules for the redesign of
27.31teacher education programs to implement a research based, results-oriented curriculum
27.32that focuses on the skills teachers need in order to be effective. The board shall implement
27.33new systems of teacher preparation program evaluation to assure program effectiveness
27.34based on proficiency of graduates in demonstrating attainment of program outcomes.
27.35The board must require that persons enrolled in a teacher preparation program receive
28.1instruction in historical and cultural competencies related to Minnesota American
28.2Indian tribes and communities and their contributions to Minnesota, consistent with
28.3sections 120B.021, subdivision 1, and 124D.71 to 124D.82. The competencies related
28.4to Minnesota American Indian tribes and communities must include, among other
28.5components, standards for instructional practices most effective for successfully teaching
28.6elementary and secondary American Indian students.
28.7    (e) The board must adopt rules requiring successful completion of an examination
28.8of general pedagogical knowledge and examinations of licensure-specific teaching
28.9skills. The rules shall be effective on the dates determined by the board but not later
28.10than September 1, 2001.
28.11    (f) The board must adopt rules requiring teacher educators to work directly with
28.12elementary or secondary school teachers in elementary or secondary schools to obtain
28.13periodic exposure to the elementary or secondary teaching environment.
28.14    (g) The board must grant licenses to interns and to candidates for initial licenses.
28.15    (h) The board must design and implement an assessment system which requires a
28.16candidate for an initial license and first continuing license to demonstrate the abilities
28.17necessary to perform selected, representative teaching tasks at appropriate levels.
28.18    (i) The board must receive recommendations from local committees as established
28.19by the board for the renewal of teaching licenses.
28.20    (j) The board must grant life licenses to those who qualify according to requirements
28.21established by the board, and suspend or revoke licenses pursuant to sections 122A.20 and
28.22214.10 . The board must not establish any expiration date for application for life licenses.
28.23    (k) The board must adopt rules that require all licensed teachers who are renewing
28.24their continuing license to include in their renewal requirements further preparation in
28.25the areas of using positive behavior interventions and in accommodating, modifying, and
28.26adapting curricula, materials, and strategies to appropriately meet the needs of individual
28.27students and ensure adequate progress toward the state's graduation rule.
28.28    (l) In adopting rules to license public school teachers who provide health-related
28.29services for disabled children, the board shall adopt rules consistent with license or
28.30registration requirements of the commissioner of health and the health-related boards who
28.31license personnel who perform similar services outside of the school.
28.32    (m) The board must adopt rules that require all licensed teachers who are renewing
28.33their continuing license to include in their renewal requirements further reading
28.34preparation, consistent with section 122A.06, subdivision 4. The rules do not take effect
28.35until they are approved by law. Teachers who do not provide direct instruction including, at
29.1least, counselors, school psychologists, school nurses, school social workers, audiovisual
29.2directors and coordinators, and recreation personnel are exempt from this section.
29.3    (n) The board must adopt rules that require all licensed teachers who are renewing
29.4their continuing license to include in their renewal requirements further preparation
29.5in understanding the key warning signs of early-onset mental illness in children and
29.6adolescents.
29.7EFFECTIVE DATE.This section is effective for the 2008-2009 school year and
29.8later.

29.9    Sec. 16. Minnesota Statutes 2006, section 122A.14, is amended by adding a
29.10subdivision to read:
29.11    Subd. 2a. Gifted and talented preparation. A university approved by the board to
29.12prepare candidates for administrative licensure must provide candidates, as part of the
29.13traditional and alternative preparation programs, the opportunity to acquire competency in
29.14administering gifted and talented services.
29.15EFFECTIVE DATE.This section is effective the day following final enactment
29.16and applies to candidates who enroll in either a traditional or an alternative preparation
29.17administrator licensure program after August 15, 2009.

29.18    Sec. 17. Minnesota Statutes 2006, section 122A.14, is amended by adding a
29.19subdivision to read:
29.20    Subd. 2c. Gifted and talented preparation; board review. (a) The board must
29.21periodically review and approve traditional and alternative preparation sequences for
29.22school administrators and the sequence of competencies in administering gifted and
29.23talented student programs and services.
29.24    (b) The board also may advise a university on developing and implementing
29.25continuing education programs focused on building competencies for administering gifted
29.26and talented programs and other gifted services.
29.27EFFECTIVE DATE.This section is effective the day following final enactment.

29.28    Sec. 18. Minnesota Statutes 2006, section 122A.18, is amended by adding a
29.29subdivision to read:
29.30    Subd. 10. Gifted and talented preparation; board review. (a) A college or
29.31university with a teacher preparation program approved by the board must provide teacher
29.32candidates with the opportunity to acquire competency in recognizing gifted students and
29.33in providing classroom instruction to gifted and talented students.
30.1    (b) The board must periodically review and approve traditional and alternative
30.2sequences for teacher candidates in recognizing gifted students and in providing classroom
30.3instruction to gifted and talented students.
30.4EFFECTIVE DATE.This section is effective the day following final enactment
30.5and applies to teacher candidates who enroll in either a traditional or an alternative
30.6preparation teacher licensure program after September 1, 2009.

30.7    Sec. 19. Minnesota Statutes 2006, section 122A.60, is amended to read:
30.8122A.60 STAFF DEVELOPMENT PROGRAM.
30.9    Subdivision 1. Staff development committee. A school board must use the revenue
30.10authorized in section 122A.61 for in-service education for programs under section
30.11120B.22, subdivision 2 , or for staff development plans under this section. The board
30.12must establish an advisory staff development committee to develop the plan, assist site
30.13professional development teams in developing a site plan consistent with the goals of the
30.14plan, and evaluate staff development efforts at the site level. A majority of the advisory
30.15committee and the site professional development team must be teachers representing
30.16various grade levels, subject areas, and special education. The advisory committee must
30.17also include nonteaching staff, parents, and administrators.
30.18    Subd. 1a. Effective staff development activities. (a) Staff development activities
30.19must be aligned with the district and school site staff development plans, based on student
30.20achievement data, focused on student learning goals and used in the classroom setting.
30.21Activities must:
30.22    (1) focus on the school classroom and research-based strategies that improve student
30.23learning;
30.24    (2) provide opportunities for teachers to practice and improve their instructional
30.25skills over time;
30.26    (3) provide regular opportunities for teachers to use student data as part of their
30.27daily work to increase student achievement;
30.28    (4) enhance teacher content knowledge and instructional skills;
30.29    (5) align with state and local academic standards;
30.30    (6) provide job embedded or integrated professional development opportunities
30.31during teacher contract day to build professional relationships, foster collaboration among
30.32principals and staff who provide instruction to identify instructional strategies to meet
30.33student learning goals, plan for instruction, practice new teaching strategies, review
30.34the results of implementing strategies, and provide opportunities for teacher-to-teacher
30.35coaching and mentoring; and
31.1    (7) align with the plan of the district or site for an alternative teacher professional
31.2pay system.
31.3Staff development activities may also include curriculum development and curriculum
31.4training programs, and activities that provide teachers and other members of site-based
31.5teams training to enhance team performance. The school district also may implement other
31.6staff development activities required by law and activities associated with professional
31.7teacher compensation models.
31.8    (b) Release time provided for teachers to supervise students on field trips and school
31.9activities, or independent tasks not associated with enhancing the teacher's knowledge
31.10and instructional skills, such as preparing report cards, calculating grades, or organizing
31.11classroom materials, may not be counted as staff development time that is financed with
31.12staff development reserved revenue under section 122A.61.
31.13    Subd. 2. Contents of the plan. The plan must be based on student achievement and
31.14include student learning goals, the staff development outcomes under subdivision 3, the
31.15means to achieve the outcomes, and procedures for evaluating progress at each school
31.16site toward meeting education outcomes.
31.17    Subd. 3. Staff development outcomes. The advisory staff development committee
31.18must adopt a staff development plan for increasing teacher effectiveness and improving
31.19student achievement. The plan must be consistent with education outcomes that the
31.20school board determines. The plan must include ongoing staff development activities that
31.21contribute toward continuous improvement in achievement of the following goals:
31.22    (1) improve student achievement of state and local education standards in all areas
31.23of the curriculum by using research-based best practices methods;
31.24    (2) effectively meet the needs of a diverse student population, including at-risk
31.25children, English language learners, children with disabilities, and gifted children, within
31.26the regular classroom and other settings;
31.27    (3) provide an inclusive curriculum for a racially, ethnically, and culturally diverse
31.28student population that is consistent with the state education diversity rule and the district's
31.29education diversity plan;
31.30    (4) improve staff collaboration and develop mentoring and peer coaching programs
31.31for teachers new to the school or district or in their first five years of teaching;
31.32    (5) effectively teach and model violence prevention policy and curriculum that
31.33address early intervention alternatives, issues of harassment, and teach nonviolent
31.34alternatives for conflict resolution; and
31.35    (6) provide teachers and other members of site-based management teams with
31.36appropriate management and financial management skills.
32.1    Subd. 4. Staff development report. (a) By October 15 1 of each year, the district
32.2and site staff development committees shall write and submit a report of staff development
32.3activities and expenditures for the previous year, in the form and manner determined by
32.4the commissioner. The report, signed by the district superintendent and staff development
32.5chair, must include assessment and evaluation data indicating progress toward district and
32.6site staff development goals based on teaching and learning outcomes, including the
32.7percentage of teachers and other staff involved in instruction who participate in effective
32.8staff development activities under subdivision 3.
32.9    (b) The report must break down expenditures for:
32.10    (1) curriculum development and curriculum training programs; and
32.11    (2) staff development training models, workshops, and conferences, and the cost of
32.12releasing teachers or providing substitute teachers for staff development purposes.
32.13    The report also must indicate whether the expenditures were incurred at the district
32.14level or the school site level, and whether the school site expenditures were made possible
32.15by grants to school sites that demonstrate exemplary use of allocated staff development
32.16revenue. These expenditures must be reported using the uniform financial and accounting
32.17and reporting standards.
32.18    (c) The commissioner shall report the staff development progress and expenditure
32.19data to the house of representatives and senate committees having jurisdiction over
32.20education by February 15 each year.

32.21    Sec. 20. Minnesota Statutes 2006, section 122A.61, subdivision 1, is amended to read:
32.22    Subdivision 1. Staff development revenue. A district is required to reserve
32.23an amount equal to at least two percent of the basic revenue under section 126C.10,
32.24subdivision 2 , for in-service education for programs under section 120B.22, subdivision 2,
32.25for with the primary purpose of creating and implementing district and school site staff
32.26development plans, including. Funds may also be used to support plans for challenging
32.27instructional activities and experiences under section 122A.60, and for curriculum
32.28development and programs, other in-service education, teachers' workshops, teacher
32.29conferences, the cost of substitute teachers staff development purposes, preservice and
32.30in-service education for special education professionals and paraprofessionals, and other
32.31related costs for staff development efforts. A district may annually waive the requirement
32.32to reserve their basic revenue under this section if a majority vote of the licensed teachers
32.33in the district and a majority vote of the school board agree to a resolution to waive the
32.34requirement. A district in statutory operating debt is exempt from reserving basic revenue
32.35according to this section. Districts may expend an additional amount of unreserved
33.1revenue for staff development based on their needs. With the exception of amounts
33.2reserved for staff development from revenues allocated directly to school sites, the board
33.3must initially allocate 50 percent of the reserved revenue to each school site in the district
33.4on a per teacher basis, which must be retained by the school site until used. The board may
33.5retain 25 percent to be used for district wide staff development efforts. The remaining
33.625 percent of the revenue must be used to make grants to school sites for best practices
33.7methods. A grant may be used for any purpose authorized under section 120B.22,
33.8subdivision 2 , 122A.60, or for the costs of curriculum development and programs, other
33.9in-service education, teachers' workshops, teacher conferences, substitute teachers for
33.10staff development purposes, and other staff development efforts, and determined by
33.11the site professional development team. The site professional development team must
33.12demonstrate to the school board the extent to which staff at the site have met the outcomes
33.13of the program. The board may withhold a portion of initial allocation of revenue if the
33.14staff development outcomes are not being met.

33.15    Sec. 21. Minnesota Statutes 2006, section 122A.75, subdivision 1, is amended to read:
33.16    Subdivision 1. Services. An Administrators Academy is established. The academy
33.17shall provide at least the following services:
33.18    (1) an administrator assessment that results in an individual professional
33.19development plan;
33.20    (2) research and development assistance that provides current research and data
33.21of interest to administrators; and
33.22    (3) brokerage assistance to provide services and resources to help administrators
33.23with needs identified in their individual professional development plan; and
33.24    (4) the opportunity for administrators to acquire competency in administering gifted
33.25and talented services, consistent with section 122A.14, subdivision 2c.
33.26EFFECTIVE DATE.This section is effective the day following final enactment
33.27and applies to administrators participating in an administrators academy program after
33.28August 1, 2009.

33.29    Sec. 22. Minnesota Statutes 2006, section 123B.03, subdivision 1, is amended to read:
33.30    Subdivision 1. Background check required. (a) A school hiring authority, as
33.31defined in subdivision 3, shall request a criminal history background check from the
33.32superintendent of the Bureau of Criminal Apprehension on all individuals who are
33.33offered employment in the school, as defined in subdivision 3. In order to be eligible for
33.34employment, an individual who is offered employment must provide an executed criminal
34.1history consent form and a money order or check payable to either the Bureau of Criminal
34.2Apprehension or the school hiring authority, at the election of the school hiring authority,
34.3in an amount equal to the actual cost to the Bureau of Criminal Apprehension and the
34.4school district of conducting the criminal history background check. A school hiring
34.5authority electing to receive payment may, at its discretion, accept payment in the form of
34.6a negotiable instrument other than a money order or check and shall pay the superintendent
34.7of the Bureau of Criminal Apprehension directly to conduct the background check. The
34.8superintendent of the Bureau of Criminal Apprehension shall conduct the background
34.9check by retrieving criminal history data maintained in the criminal justice information
34.10system computers. A school hiring authority, at its discretion, may elect not to request a
34.11criminal history background check on an individual who holds an initial entrance license
34.12issued by the State Board of Teaching or the commissioner of education within the 12
34.13months preceding an offer of employment.
34.14    (b) A school hiring authority may use the results of a criminal background check
34.15conducted at the request of another school hiring authority if:
34.16    (1) the results of the criminal background check are on file with the other school
34.17hiring authority or otherwise accessible;
34.18    (2) the other school hiring authority conducted a criminal background check within
34.19the previous 12 months;
34.20    (3) the individual who is the subject of the criminal background check executes a
34.21written consent form giving a school hiring authority access to the results of the check; and
34.22    (4) there is no reason to believe that the individual has committed an act subsequent
34.23to the check that would disqualify the individual for employment.
34.24    (c) A school hiring authority may, at its discretion, request a criminal history
34.25background check from the superintendent of the Bureau of Criminal Apprehension on
34.26any individual who seeks to enter a school or its grounds for the purpose of serving as a
34.27school volunteer or working as an independent contractor or student employee. In order
34.28for an individual to enter a school or its grounds under this paragraph when the school
34.29hiring authority elects to request a criminal history background check on the individual,
34.30the individual first must provide an executed criminal history consent form and a money
34.31order, check, or other negotiable instrument payable to the school district in an amount
34.32equal to the actual cost to the Bureau of Criminal Apprehension and the school district
34.33of conducting the criminal history background check. Notwithstanding section 299C.62,
34.34subdivision 1 , the cost of the criminal history background check under this paragraph is
34.35the responsibility of the individual.
35.1    (d) For all nonstate residents who are offered employment in a school, a school
35.2hiring authority shall request a criminal history background check on such individuals
35.3from the superintendent of the Bureau of Criminal Apprehension and from the government
35.4agency performing the same function in the resident state or, if no government entity
35.5performs the same function in the resident state, from the Federal Bureau of Investigation.
35.6Such individuals must provide an executed criminal history consent form and a money
35.7order, check, or other negotiable instrument payable to the school hiring authority in an
35.8amount equal to the actual cost to the government agencies and the school district of
35.9conducting the criminal history background check. Notwithstanding section 299C.62,
35.10subdivision 1 , the cost of the criminal history background check under this paragraph is
35.11the responsibility of the individual.
35.12    (e) Consistent with the terms in paragraph (a), a school hiring authority, as defined in
35.13subdivision 3, shall request a criminal history background check from the superintendent
35.14of the Bureau of Criminal Apprehension on an individual who elects to provide athletic
35.15coaching services or other extracurricular or cocurricular services to a district, regardless
35.16of the terms of the service.
35.17EFFECTIVE DATE.This section is effective the day following final enactment.

35.18    Sec. 23. Minnesota Statutes 2006, section 123B.03, is amended by adding a
35.19subdivision to read:
35.20    Subd. 1a. Investigation of disciplinary actions taken against prospective
35.21teachers. At the time a school hiring authority conducts the criminal history background
35.22check required under subdivision 1 on an individual offered employment as a teacher, the
35.23school hiring authority must contact the Board of Teaching to determine whether the
35.24board has taken disciplinary action against the teacher based on a board determination
35.25that inappropriate sexual conduct or attempted inappropriate sexual conduct occurred
35.26between the teacher and a student. If disciplinary action has been taken based on this type
35.27of conduct, the school hiring authority must obtain access to data that are public under
35.28sections 13.41, subdivision 5, and 13.43, subdivision 2, that relate to the substance of the
35.29disciplinary action. In addition, the school hiring authority must require the individual
35.30to provide information in the employment application regarding all current and previous
35.31disciplinary actions in Minnesota and other states taken against the individual's teaching
35.32license as a result of inappropriate sexual conduct or attempted inappropriate sexual
35.33conduct with a student and indicate to the applicant that intentionally submitting false or
35.34incomplete information is a ground for dismissal.
35.35EFFECTIVE DATE.This section is effective July 1, 2008.

36.1    Sec. 24. Minnesota Statutes 2006, section 123B.03, subdivision 2, is amended to read:
36.2    Subd. 2. Conditional hiring; discharge. A school hiring authority may hire
36.3an individual pending completion of a background check under subdivision 1 or an
36.4investigation of disciplinary actions under subdivision 1a but shall notify the individual
36.5that the individual's employment may be terminated based on the result of the background
36.6check or investigation. A school hiring authority is not liable for failing to hire or for
36.7terminating an individual's employment based on the result of a background check or
36.8investigation under this section.
36.9EFFECTIVE DATE.This section is effective July 1, 2008.

36.10    Sec. 25. Minnesota Statutes 2007 Supplement, section 123B.143, subdivision 1,
36.11is amended to read:
36.12    Subdivision 1. Contract; duties. All districts maintaining a classified secondary
36.13school must employ a superintendent who shall be an ex officio nonvoting member of the
36.14school board. The authority for selection and employment of a superintendent must be
36.15vested in the board in all cases. An individual employed by a board as a superintendent
36.16shall have an initial employment contract for a period of time no longer than three years
36.17from the date of employment. Any subsequent employment contract must not exceed a
36.18period of three years. A board, at its discretion, may or may not renew an employment
36.19contract. A board must not, by action or inaction, extend the duration of an existing
36.20employment contract. Beginning 365 days prior to the expiration date of an existing
36.21employment contract, a board may negotiate and enter into a subsequent employment
36.22contract to take effect upon the expiration of the existing contract. A subsequent contract
36.23must be contingent upon the employee completing the terms of an existing contract. If a
36.24contract between a board and a superintendent is terminated prior to the date specified in
36.25the contract, the board may not enter into another superintendent contract with that same
36.26individual that has a term that extends beyond the date specified in the terminated contract.
36.27A board may terminate a superintendent during the term of an employment contract for any
36.28of the grounds specified in section 122A.40, subdivision 9 or 13. A superintendent shall
36.29not rely upon an employment contract with a board to assert any other continuing contract
36.30rights in the position of superintendent under section 122A.40. Notwithstanding the
36.31provisions of sections 122A.40, subdivision 10 or 11, 123A.32, 123A.75, or any other law
36.32to the contrary, no individual shall have a right to employment as a superintendent based
36.33on order of employment in any district. If two or more districts enter into an agreement for
36.34the purchase or sharing of the services of a superintendent, the contracting districts have
36.35the absolute right to select one of the individuals employed to serve as superintendent
37.1in one of the contracting districts and no individual has a right to employment as the
37.2superintendent to provide all or part of the services based on order of employment in a
37.3contracting district. The superintendent of a district shall perform the following:
37.4    (1) visit and supervise the schools in the district, report and make recommendations
37.5about their condition when advisable or on request by the board;
37.6    (2) recommend to the board employment and dismissal of teachers;
37.7    (3) superintend school grading practices and examinations for promotions;
37.8    (4) make reports required by the commissioner; and
37.9    (5) by January 10, submit an annual report to the commissioner in a manner
37.10prescribed by the commissioner, in consultation with school districts, identifying the
37.11expenditures that the district requires to ensure an 80 percent student passage rate on
37.12the MCA-IIs taken in the eighth grade, identifying the highest student passage rate the
37.13district expects it will be able to attain on the MCA-IIs by grade 12, and the amount of
37.14expenditures that the district requires to attain the targeted student passage rate; and
37.15    (6) perform other duties prescribed by the board.
37.16EFFECTIVE DATE.This section is effective the day following final enactment.

37.17    Sec. 26. Minnesota Statutes 2007 Supplement, section 124D.095, subdivision 4,
37.18is amended to read:
37.19    Subd. 4. Online learning parameters. (a) An online learning student must receive
37.20academic credit for completing the requirements of an online learning course or program.
37.21Secondary credits granted to an online learning student must be counted toward the
37.22graduation and credit requirements of the enrolling district. An online learning provider
37.23must make available to the enrolling district the course syllabus, standard alignment,
37.24content outline, assessment requirements, and contact information for supplemental online
37.25courses taken by students in the enrolling district. The enrolling district must apply the
37.26same graduation requirements to all students, including online learning students, and
37.27must continue to provide nonacademic services to online learning students. If a student
37.28completes an online learning course or program that meets or exceeds a graduation
37.29standard or grade progression requirement at the enrolling district, that standard or
37.30requirement is met. The enrolling district must use the same criteria for accepting online
37.31learning credits or courses as it does for accepting credits or courses for transfer students
37.32under section 124D.03, subdivision 9. The enrolling district may reduce the course
37.33schedule of an online learning student in proportion to the number of online learning
37.34courses the student takes from an online learning provider that is not the enrolling district.
37.35    (b) An online learning student may:
38.1    (1) enroll in supplemental online learning courses during a single school year to a
38.2maximum of 50 percent of the student's full schedule of courses per term. A student may
38.3exceed the supplemental online learning registration limit if the enrolling district grants
38.4permission for supplemental online learning enrollment above the limit, or if an agreement
38.5is made between the enrolling district and the online learning provider for instructional
38.6services;
38.7    (2) complete course work at a grade level that is different from the student's current
38.8grade level; and
38.9    (3) enroll in additional courses with the online learning provider under a separate
38.10agreement that includes terms for payment of any tuition or course fees.
38.11    (c) An online learning student has the same access to the computer hardware and
38.12education software available in a school as all other students in the enrolling district. An
38.13online learning provider must assist an online learning student whose family qualifies
38.14for the education tax credit under section 290.0674 to acquire computer hardware and
38.15educational software for online learning purposes.
38.16    (d) An enrolling district or charter school may offer online learning to its enrolled
38.17students. Such online learning does not generate online learning funds under this section.
38.18An enrolling district or charter school that offers online learning only to its enrolled
38.19students is not subject to the reporting requirements or review criteria under subdivision 7,
38.20unless the enrolling district or charter school is a full-time online provider. A teacher with
38.21a Minnesota license must assemble and deliver instruction to enrolled students receiving
38.22online learning from an enrolling district or charter school. The delivery of instruction
38.23occurs when the student interacts with the computer or the teacher and receives ongoing
38.24assistance and assessment of learning. The instruction may include curriculum developed
38.25by persons other than a teacher with a Minnesota license.
38.26    (e) An A full-time online learning provider that is not the enrolling district is subject
38.27to the reporting requirements and review criteria under subdivision 7. A teacher with a
38.28Minnesota license must assemble and deliver instruction to online learning students. The
38.29delivery of instruction occurs when the student interacts with the computer or the teacher
38.30and receives ongoing assistance and assessment of learning. The instruction may include
38.31curriculum developed by persons other than a teacher with a Minnesota license. Unless
38.32the commissioner grants a waiver, a teacher providing online learning instruction must not
38.33instruct more than 40 students in any one online learning course or program.
38.34    (f) To enroll in more than 50 percent of the student's full schedule of courses per term
38.35in online learning, the student must qualify to exceed the supplemental online learning
38.36registration limit under paragraph (b) or apply for enrollment to an approved full-time
39.1online learning program following appropriate procedures in subdivision 3, paragraph (a).
39.2Full-time online learning students may enroll in classes at a local school per contract for
39.3instructional services between the online learning provider and the school district.

39.4    Sec. 27. Minnesota Statutes 2006, section 124D.10, subdivision 2a, is amended to read:
39.5    Subd. 2a. Charter School Advisory Council. (a) A Charter School Advisory
39.6Council is established under section 15.059 except that the term for each council member
39.7shall be three years. The advisory council is composed of seven members from throughout
39.8the state who have demonstrated experience with or interest in charter schools. The
39.9members of the council shall be appointed by the commissioner. The advisory council
39.10shall bring to the attention of the commissioner any matters related to charter schools
39.11that the council deems necessary and shall:
39.12    (1) encourage school boards to make full use of charter school opportunities;
39.13    (2) encourage the creation of innovative schools;
39.14    (3) provide leadership and support for charter school sponsors to increase the
39.15innovation in and the effectiveness, accountability, and fiscal soundness of charter schools;
39.16    (4) serve an ombudsman function in facilitating the operations of new and existing
39.17charter schools;
39.18    (5) promote timely financial management training for newly elected members of
39.19a charter school board of directors and ongoing training for other members of a charter
39.20school board of directors; and
39.21    (6) facilitate compliance with auditing and other reporting requirements. The
39.22advisory council shall refer all its proposals to the commissioner who shall provide time
39.23for reports from the council.
39.24    (b) The Charter School Advisory Council under this subdivision expires June 30,
39.252007 does not expire and the expiration date provided in section 15.059, subdivision
39.265, does not apply to this section.
39.27EFFECTIVE DATE.This section is effective retroactively from June 30, 2007.

39.28    Sec. 28. Minnesota Statutes 2007 Supplement, section 124D.10, subdivision 4, is
39.29amended to read:
39.30    Subd. 4. Formation of school. (a) A sponsor may authorize one or more licensed
39.31teachers under section 122A.18, subdivision 1, to operate a charter school subject to
39.32approval by the commissioner. A board must vote on charter school application for
39.33sponsorship no later than 90 days after receiving the application. The school must be
39.34organized and operated as a cooperative under chapter 308A or nonprofit corporation
40.1under chapter 317A and the provisions under the applicable chapter shall apply to the
40.2school except as provided in this section. Notwithstanding sections 465.717 and 465.719,
40.3a school district may create a corporation for the purpose of creating a charter school.
40.4    (b) Before the operators may form and operate a school, the sponsor must file an
40.5affidavit with the commissioner stating its intent to authorize a charter school. The
40.6affidavit must demonstrate the sponsor's abilities, capacities, and expertise in fulfilling the
40.7responsibilities of a sponsor and state the terms and conditions under which the sponsor
40.8would authorize a charter school and how the sponsor intends to oversee the fiscal and
40.9student performance of the charter school and to comply with the terms of the written
40.10contract between the sponsor and the charter school board of directors under subdivision
40.116 in the form and manner prescribed by the commissioner. The sponsor must submit
40.12an affidavit to the commissioner for each charter school it proposes to authorize. The
40.13commissioner must approve or disapprove the sponsor's proposed authorization within
40.1490 days of receipt of the affidavit. Failure to obtain commissioner approval precludes a
40.15sponsor from authorizing the charter school that was the subject of the affidavit.
40.16    (c) The operators authorized to organize and operate a school, before entering into a
40.17contract or other agreement for professional or other services, goods, or facilities, must
40.18incorporate as a cooperative under chapter 308A or as a nonprofit corporation under
40.19chapter 317A and must establish a board of directors composed of at least five nonrelated
40.20members until a timely election for members of the charter school board of directors is
40.21held according to the school's articles and bylaws. A charter school board of directors
40.22must be composed of at least five members. Any staff members who are employed at the
40.23school, including teachers providing instruction under a contract with a cooperative, and
40.24all parents of children enrolled in the school may are eligible to participate in the election
40.25for members of the school's board of directors. Licensed teachers employed at the school,
40.26including teachers providing instruction under a contract with a cooperative, must be a
40.27majority of the members of the board of directors before the school completes its third
40.28year of operation, unless the commissioner waives the requirement for a majority of
40.29licensed teachers on the board. Board of director meetings must comply with chapter 13D.
40.30    (d) The granting or renewal of a charter by a sponsoring entity must not be
40.31conditioned upon the bargaining unit status of the employees of the school.
40.32    (e) The granting or renewal of a charter school by a sponsor must not be contingent
40.33on the charter school being required to contract, lease, or purchase services from the
40.34sponsor. A sponsor is prohibited from entering into a contract to provide management and
40.35financial services for a school that it is authorized to sponsor.
41.1    (e) (f) A sponsor may authorize the operators of a charter school to expand the
41.2operation of the charter school to additional sites or to add additional grades at the school
41.3beyond those described in the sponsor's application as approved by the commissioner only
41.4after submitting a supplemental application to the commissioner in a form and manner
41.5prescribed by the commissioner. The supplemental application must provide evidence that:
41.6    (1) the expansion of the charter school is supported by need and projected enrollment;
41.7    (2) the charter school is fiscally sound;
41.8    (3) the sponsor supports the expansion; and
41.9    (4) the building of the additional site meets all health and safety requirements to
41.10be eligible for lease aid.
41.11    (f) (g) The commissioner annually must provide timely financial management
41.12training to newly elected members of a charter school board of directors and ongoing
41.13training to other members of a charter school board of directors. Training must address
41.14ways to:
41.15    (1) proactively assess opportunities for a charter school to maximize all available
41.16revenue sources;
41.17    (2) establish and maintain complete, auditable records for the charter school;
41.18    (3) establish proper filing techniques;
41.19    (4) document formal actions of the charter school, including meetings of the charter
41.20school board of directors;
41.21    (5) properly manage and retain charter school and student records;
41.22    (6) comply with state and federal payroll record-keeping requirements; and
41.23    (7) address other similar factors that facilitate establishing and maintaining complete
41.24records on the charter school's operations.

41.25    Sec. 29. Minnesota Statutes 2006, section 124D.10, subdivision 4a, is amended to read:
41.26    Subd. 4a. Conflict of interest. (a) A member of a charter school board of directors
41.27is prohibited from serving as a member of the board of directors or as an employee or agent
41.28of or a contractor with a for-profit entity with whom the charter school contracts, directly
41.29or indirectly, for professional services, goods, or facilities. A violation of this prohibition
41.30renders a contract voidable at the option of the commissioner. The commissioner may
41.31reduce a charter school's state aid under section 127A.42 if the charter school board fails
41.32to correct violations under this subdivision in a timely manner. A member of a charter
41.33school board of directors who violates this prohibition shall be individually liable to the
41.34charter school for any damage caused by the violation.
42.1    (b) An individual may serve as a member of the board of directors if no conflict of
42.2interest under paragraph (a) exists.
42.3    (c) A member of a charter school board of directors that serves as a member of the
42.4board of directors or as an employee or agent of or a contractor with a nonprofit entity
42.5with whom the charter school contracts, directly or indirectly, for professional services,
42.6goods, or facilities, must disclose all potential conflicts to the commissioner. A violation
42.7of this requirement makes a contract voidable at the option of the commissioner. The
42.8commissioner may reduce a charter school's aid under section 127A.42 if the charter
42.9school fails to correct violations under this subdivision in a timely manner.
42.10    (d) The conflict of interest provisions under this subdivision do not apply to
42.11compensation paid to a teacher employed by the charter school who also serves as a
42.12member of the board of directors.
42.13    (e) The conflict of interest provisions under this subdivision do not apply to a teacher
42.14who provides services to a charter school through a cooperative formed under chapter
42.15308A when the teacher also serves on the charter school board of directors.

42.16    Sec. 30. Minnesota Statutes 2006, section 124D.10, subdivision 6, is amended to read:
42.17    Subd. 6. Contract. The sponsor's authorization for a charter school must be in the
42.18form of a written contract signed by the sponsor and the board of directors of the charter
42.19school. The contract must be completed within 90 days of the commissioner's approval
42.20of the sponsor's proposed authorization. The contract for a charter school must be in
42.21writing and contain at least the following:
42.22    (1) a description of a program that carries out one or more of the purposes in
42.23subdivision 1;
42.24    (2) specific outcomes pupils are to achieve under subdivision 10;
42.25    (3) admission policies and procedures;
42.26    (4) management and administration of the school;
42.27    (5) requirements and procedures for program and financial audits;
42.28    (6) how the school will comply with subdivisions 8, 13, 16, and 23;
42.29    (7) assumption of liability by the charter school;
42.30    (8) types and amounts of insurance coverage to be obtained by the charter school;
42.31    (9) the term of the contract, which may be up to three years;
42.32    (10) if how the board of directors or the operators of the charter school will provide
42.33special instruction and services for children with a disability under sections 125A.03
42.34to 125A.24, and 125A.65, a description of the financial parameters within which the
43.1charter school will operate to provide the special instruction and services to children
43.2with a disability; and
43.3    (11) the process and criteria the sponsor intends to use to monitor and evaluate the
43.4fiscal and student performance of the charter school, consistent with subdivision 15.

43.5    Sec. 31. Minnesota Statutes 2006, section 124D.10, subdivision 6a, is amended to read:
43.6    Subd. 6a. Audit report. (a) The charter school must submit an audit report to the
43.7commissioner by December 31 each year.
43.8    (b) The charter school, with the assistance of the auditor conducting the audit, must
43.9include with the report a copy of all charter school agreements for corporate management
43.10services. If the entity that provides the professional services to the charter school is
43.11exempt from taxation under section 501 of the Internal Revenue Code of 1986, that entity
43.12must file with the commissioner by February 15 a copy of the annual return required under
43.13section 6033 of the Internal Revenue Code of 1986.
43.14    (c) If the commissioner receives as part of the an audit report a management letter
43.15indicating that a material weakness exists in the financial reporting systems of a charter
43.16school, the charter school must submit a written report to the commissioner explaining
43.17how the material weakness will be resolved.
43.18    (d) Upon the request of an individual, the charter school must make available in a
43.19timely fashion the minutes of meetings of members, the board of directors, and committees
43.20having any of the authority of the board of directors, and statements showing the financial
43.21result of all operations and transactions affecting income and surplus during the school's
43.22last annual accounting period and a balance sheet containing a summary of its assets and
43.23liabilities as of the closing date of the accounting period.

43.24    Sec. 32. Minnesota Statutes 2006, section 124D.10, subdivision 7, is amended to read:
43.25    Subd. 7. Public status; exemption from statutes and rules. A charter school is a
43.26public school and is part of the state's system of public education. Except as provided in
43.27this section, a charter school is exempt from all statutes and rules applicable to a school, a
43.28board, or a district, although it may elect to comply with one or more provisions of statutes
43.29or rules. A charter school is exempt from all statutes and rules applicable to a school,
43.30board, or district unless a statute or rule is made specifically applicable to a charter school.

43.31    Sec. 33. Minnesota Statutes 2006, section 124D.10, subdivision 8, is amended to read:
43.32    Subd. 8. State and local requirements. (a) A charter school shall meet all
43.33applicable federal, state, and local health and safety requirements applicable to school
43.34districts.
44.1    (b) A school sponsored by a school board may be located in any district, unless the
44.2school board of the district of the proposed location disapproves by written resolution.
44.3    (c) A charter school must be nonsectarian in its programs, admission policies,
44.4employment practices, and all other operations. A sponsor may not authorize a charter
44.5school or program that is affiliated with a nonpublic sectarian school or a religious
44.6institution.
44.7    (d) Charter schools must not be used as a method of providing education or
44.8generating revenue for students who are being home-schooled.
44.9    (e) The primary focus of a charter school must be to provide a comprehensive
44.10program of instruction for at least one grade or age group from five through 18 years
44.11of age. Instruction may be provided to people younger than five years and older than
44.1218 years of age.
44.13    (f) A charter school may not charge tuition.
44.14    (g) A charter school is subject to and must comply with chapter 363A and section
44.15121A.04 .
44.16    (h) A charter school is subject to and must comply with the Pupil Fair Dismissal
44.17Act, sections 121A.40 to 121A.56, and the Minnesota Public School Fee Law, sections
44.18123B.34 to 123B.39.
44.19    (i) A charter school is subject to the same financial audits, audit procedures, and
44.20audit requirements as a district. Audits must be conducted in compliance with generally
44.21accepted governmental auditing standards, the Federal Single Audit Act, if applicable,
44.22and section 6.65. A charter school is subject to and must comply with sections 15.054;
44.23118A.01 ; 118A.02; 118A.03; 118A.04; 118A.05; 118A.06; 123B.52, subdivision 5;
44.24471.38 ; 471.391; 471.392; 471.425; 471.87; 471.88, subdivisions 1, 2, 3, 4, 5, 6, 12, 13,
44.25and 15 ; 471.881; and 471.89. The audit must comply with the requirements of sections
44.26123B.75 to 123B.83, except to the extent deviations are necessary because of the program
44.27at the school. Deviations must be approved by the commissioner. The Department
44.28of Education, state auditor, or legislative auditor may conduct financial, program, or
44.29compliance audits. A charter school determined to be in statutory operating debt under
44.30sections 123B.81 to 123B.83 must submit a plan under section 123B.81, subdivision 4.
44.31    (j) A charter school is a district for the purposes of tort liability under chapter 466.
44.32    (k) A charter school must comply with sections 13.32; 120A.22, subdivision 7;
44.33121A.75 ; and 260B.171, subdivisions 3 and 5.
44.34    (l) A charter school is subject to the Pledge of Allegiance requirement under section
44.35121A.11, subdivision 3 .

44.36    Sec. 34. Minnesota Statutes 2006, section 124D.10, subdivision 23, is amended to read:
45.1    Subd. 23. Causes for nonrenewal or termination of charter school contract. (a)
45.2The duration of the contract with a sponsor must be for the term contained in the contract
45.3according to subdivision 6. The sponsor may or may not renew a contract at the end of
45.4the term for any ground listed in paragraph (b). A sponsor may unilaterally terminate a
45.5contract during the term of the contract for any ground listed in paragraph (b). At least 60
45.6days before not renewing or terminating a contract, the sponsor shall notify the board of
45.7directors of the charter school of the proposed action in writing by registered mail. The
45.8notice shall state the grounds for the proposed action in reasonable detail and that the
45.9charter school's board of directors may request in writing an informal hearing before the
45.10sponsor within 14 days of receiving notice of nonrenewal or termination of the contract.
45.11Failure by the board of directors to make a written request for a hearing within the 14-day
45.12period shall be treated as acquiescence to the proposed action. Upon receiving a timely
45.13written request for a hearing, the sponsor shall give reasonable notice to the charter
45.14school's board of directors of the hearing date. The sponsor shall conduct an informal
45.15hearing before taking final action. The sponsor shall take final action to renew or not
45.16renew a contract by the last day of classes in the school year no later than 15 days before
45.17the termination date or the end of the contract. If the sponsor is a local board, the school's
45.18board of directors may appeal the sponsor's decision to the commissioner.
45.19    (b) A contract may be terminated or not renewed upon any of the following grounds:
45.20    (1) failure to meet the requirements for pupil performance contained in the contract;
45.21    (2) failure to meet generally accepted standards of fiscal management;
45.22    (3) violations of law; or
45.23    (4) other good cause shown.
45.24    If a contract is terminated or not renewed under this paragraph, the school must be
45.25dissolved according to the applicable provisions of chapter 308A or 317A, except when
45.26the commissioner approves the decision of a different eligible sponsor to authorize the
45.27charter school.
45.28    (c) If at the end of a contract term, either the sponsor or and the charter school
45.29board of directors wants mutually agree to voluntarily terminate the contract, a change
45.30in sponsors is allowed if the commissioner approves the decision of a different eligible
45.31sponsor to authorize the charter school. The party intending to terminate the contract
45.32must notify the other party and the commissioner of its intent at least 90 days before
45.33the date on which the contract ends. The commissioner must determine whether the
45.34charter school and the prospective new sponsor can clearly identify and effectively resolve
45.35those circumstances causing the previous sponsor and the charter school to terminate the
45.36contract before the commissioner determines whether to grant the change of sponsor. Both
46.1parties must jointly submit in writing to the commissioner their intent to terminate the
46.2contract. The sponsor that is a party to the existing contract at least must inform the
46.3approved different eligible sponsor about the fiscal and student performance of the school.
46.4If no different eligible sponsor is approved, the school must be dissolved according to
46.5applicable law and the terms of the contract.
46.6    (d) The commissioner, after providing reasonable notice to the board of directors
46.7of a charter school and the existing sponsor, and after providing an opportunity for a
46.8public hearing, may terminate the existing sponsorial relationship if the charter school
46.9has a history of:
46.10    (1) sustained failure to meet the requirements for pupil performance contained
46.11in the contract;
46.12    (1) (2) financial mismanagement; or
46.13    (2) (3) repeated violations of the law; or
46.14    (4) other good cause shown.

46.15    Sec. 35. Minnesota Statutes 2007 Supplement, section 124D.10, subdivision 23a,
46.16is amended to read:
46.17    Subd. 23a. Related party lease costs. (a) A charter school is prohibited from
46.18entering a lease of real property with a related party as defined in subdivision 26
46.19this subdivision, unless the lessor is a nonprofit corporation under chapter 317A or a
46.20cooperative under chapter 308A, and the lease cost is reasonable under section 124D.11,
46.21subdivision 4 , clause (1).
46.22    (b) For purposes of this subdivision:
46.23    (1) "related party" means an affiliate or close relative of the other party in question,
46.24an affiliate of a close relative, or a close relative of an affiliate;
46.25    (2) "affiliate" means a person that directly or indirectly, through one or more
46.26intermediaries, controls, is controlled by, or is under common control with another person;
46.27    (3) "close relative" means an individual whose relationship by blood, marriage, or
46.28adoption to another individual is no more remote than first cousin;
46.29    (4) "person" means an individual or entity of any kind; and
46.30    (5) "control" means the ability to affect the management, operations, or policies of a
46.31person, whether through ownership of voting securities, by contract, or otherwise.
46.32    (b) (c) A lease of real property to be used for a charter school, not excluded in
46.33paragraph (a), must contain the following statement: "This lease is subject to Minnesota
46.34Statutes, section 124D.10, subdivision 23a."
47.1    (c) (d) If a charter school enters into as lessee a lease with a related party and the
47.2charter school subsequently closes, the commissioner has the right to recover from the
47.3lessor any lease payments in excess of those that are reasonable under section 124D.11,
47.4subdivision 4 , clause (1).

47.5    Sec. 36. [125B.015] STATE AND SCHOOL DISTRICT TECHNOLOGY
47.6STANDARDS.
47.7    Subdivision 1. State technology standards; standard setting. (a) Notwithstanding
47.8other law to the contrary, the commissioner, the Minnesota Education Technology Task
47.9Force, and representatives of school districts must enter into a technology partnership to
47.10identify for school districts the robust technology tools and systems that improve the
47.11educational achievement of all Minnesota students. The partnership must establish a
47.12foundation of flexible shared services that supports state development and implementation
47.13of new and more efficient educational business practices, including the use of modern
47.14analytical tools that help schools and school districts make data-driven decisions
47.15and increase instructional time. The partnership also must anticipate the needs of
47.16school districts for effectively using emerging technologies to make the best and most
47.17cost-effective use of finite educational resources.
47.18    (b) The commissioner, in collaboration with the other members of the technology
47.19partnership and other interested and affected stakeholders, must establish and then
47.20maintain, revise, and publish every four years beginning June 1, 2012, state and district
47.21technology standards and accompanying guidelines consistent with the requirements of
47.22this section. The state and school districts must use the technology standards to participate
47.23in a uniform data collection system premised on:
47.24    (1) common data definitions for all required data elements;
47.25    (2) a common course catalogue;
47.26    (3) common transcript definitions; and
47.27    (4) school district infrastructure technology standards.
47.28    (c) School districts, consistent with this section and other applicable law, may use
47.29financial resources in addition to state funding to provide students with the technology
47.30tools they need to succeed in an increasingly complex and information-rich environment.
47.31    Subd. 2. District technology standards. (a) The commissioner, in collaboration
47.32with the Minnesota Education Technology Task Force, must establish and then maintain,
47.33revise, and publish six categories of district technology standards consistent with this
47.34section. The district technology standards must encompass:
48.1    (1) instructional technology that include best practices in 21st century classroom
48.2instruction and student learning;
48.3    (2) technological tools that support formative and summative online assessments,
48.4equipment, and software;
48.5    (3) shared services that facilitate network and data systems administration;
48.6    (4) data practices that include technical security, Internet safety, and data privacy;
48.7    (5) data management that facilitates efficient data transfers involving school districts
48.8and the department; and
48.9    (6) facilities infrastructure that supports multipurpose technology facilities for
48.10instruction and assessment.
48.11    (b) School districts must align district technology expenditures with state and district
48.12technology standards established under this section.
48.13    (c) Beginning December 1, 2010, and each two-year period thereafter, school
48.14districts must use the district technology standards in this section to complete a review of
48.15the district technology environment that:
48.16    (1) examines the alignment of district technology expenditures to the technology
48.17standards under this section;
48.18    (2) identifies service gaps in the district technology plan; and
48.19    (3) estimates the funding needed to fill service gaps.
48.20    (d) School districts must transmit the substance of the review to the commissioner in
48.21the form and manner the commissioner determines in collaboration with the Minnesota
48.22Education Technology Task Force. The commissioner must evaluate and report the
48.23substance of the reviews to the legislature by February 15, 2011, and each two-year period
48.24thereafter.
48.25    Subd. 3. Nonapplicability. Consistent with section 14.03, subdivision 3, paragraph
48.26(b), clause (4), and notwithstanding other law to the contrary, the state and district
48.27technology standards established, maintained, revised, and published under this section
48.28are not subject to chapter 14.
48.29EFFECTIVE DATE.This section is effective the day following final enactment
48.30and applies to the 2008-2009 school year and later.

48.31    Sec. 37. Minnesota Statutes 2006, section 471.88, is amended by adding a subdivision
48.32to read:
48.33    Subd. 21. Contract with no bids required. Notwithstanding subdivision 1, a local
48.34school board may contract with a class of school district employees such as teachers
48.35or custodians where the spouse of a school board member is a member of the class
49.1of employees contracting with the school board and the employee spouse receives no
49.2special monetary or other benefit that is substantially different from the benefits that
49.3other members of the class receive under the employment contract. A school board
49.4invoking this exception must have a majority of disinterested school board members vote
49.5to approve the contract, direct the school board member spouse to abstain from voting to
49.6approve the contract, and publicly set out the essential facts of the contract at the meeting
49.7where the contract is approved.
49.8EFFECTIVE DATE.This section is effective the day following final enactment.

49.9    Sec. 38. Laws 2007, chapter 146, article 2, section 46, subdivision 13, is amended to
49.10read:
49.11    Subd. 13. Preadvanced placement, advanced placement, international
49.12baccalaureate, and concurrent enrollment programs. For preadvanced placement,
49.13advanced placement, international baccalaureate, and concurrent enrollment programs
49.14under Minnesota Statutes, sections 120B.132 and 124D.091:

49.15		$	6,500,000	.....	2008
49.16		$	6,500,000	.....	2009

49.17    Of this amount, $2,500,000 each year is for concurrent enrollment program aid
49.18under Minnesota Statutes, section 124D.091. If the appropriation is insufficient, the
49.19commissioner must proportionately reduce the aid payment to each district. Any balance
49.20in the first year does not cancel but is available in the second year.
49.21    The base appropriation for fiscal year 2010 and later is $2,000,000.

49.22    Sec. 39. IMPLEMENTING A STUDENT GROWTH-BASED VALUE-ADDED
49.23SYSTEM.
49.24    (a) To implement the requirements of Minnesota Statutes, section 120B.35,
49.25subdivision 3, paragraph (b), and to help parents and members of the public compare the
49.26reported data, the commissioner must convene a group of expert school district assessment
49.27and evaluation staff, including a recognized Minnesota assessment group composed
49.28of assessment and evaluation directors and staff and researchers under Minnesota
49.29Statutes, section 120B.299, subdivision 6, and interested stakeholders, including school
49.30superintendents, school principals, and school teachers to examine the actual statewide
49.31performance of students using Minnesota's growth-based value-added system and
49.32establish criteria for identifying schools and school districts that demonstrate accelerated
49.33growth in order to advance educators' professional development and replicate programs
49.34that succeed in meeting students' diverse learning needs.
50.1    (b) The commissioner must submit a written report to the education committees of
50.2the house of representatives and senate by February 15, 2009, describing the criteria for
50.3identifying schools and school districts that demonstrate accelerated growth.
50.4EFFECTIVE DATE.This section is effective the day following final enactment
50.5and applies to school report cards in the 2008-2009 school year and later.

50.6    Sec. 40. IMPLEMENTING RIGOROUS COURSEWORK MEASURES
50.7RELATED TO STUDENT PERFORMANCE.
50.8    To implement the requirements of Minnesota Statutes, section 120B.35, subdivision
50.93, paragraph (c), clauses (1) and (2), and to help parents and members of the public
50.10compare the reported data, the commissioner of education must convene a group of
50.11recognized and qualified experts and interested stakeholders to develop a model projecting
50.12anticipated performance of each high school on preparation and rigorous coursework
50.13measures that compares the school with similar schools. The model must use information
50.14about entering high school students based on particular background characteristics that
50.15are predictive of differing rates of college readiness. The characteristics include grade 8
50.16achievement levels, high school student mobility, high school student attendance, the nine
50.17student categories identified under the federal 2001 No Child Left Behind Act, and two
50.18student gender categories of male and female, respectively, to predict student performance
50.19on these two core measures. The commissioner must use the anticipated level of entering
50.20students' performance to provide a context for interpreting graduating students' actual
50.21performance.
50.22EFFECTIVE DATE.This section is effective the day following final enactment
50.23and applies to school report cards beginning July 1, 2011.

50.24    Sec. 41. IMPLEMENTING MEASURES FOR ASSESSING STUDENTS'
50.25SELF-REPORTED SENSE OF SCHOOL SAFETY, ENGAGEMENT IN
50.26SCHOOL, AND THE QUALITY OF RELATIONSHIPS WITH TEACHERS,
50.27ADMINISTRATORS, AND OTHER STUDENTS.
50.28    (a) To implement the requirements of Minnesota Statutes, section 120B.35,
50.29subdivision 3, paragraph (d), and to help parents and members of the public compare the
50.30reported data, the commissioner of education, in consultation with interested stakeholders,
50.31must convene a group of recognized and qualified experts to:
50.32    (1) analyze the University of Minnesota student safety and engagement survey
50.33instrument and other commonly recognized survey instruments to select or devise the
50.34survey instrument that best meets state accountability requirements;
51.1    (2) ensure that the identified survey instrument has sound psychometric properties
51.2and is useful for intervention planning;
51.3    (3) determine at what grade levels to administer the survey instrument and ensure
51.4that the survey instrument can be used at those grade levels; and
51.5    (4) determine through disaggregated use of survey indicators or other means how to
51.6report "safety" in order to comply with federal law.
51.7    (b) The commissioner must submit a written report to the education committees of
51.8the house of representatives and senate by February 15, 2009, presenting the experts'
51.9responses to paragraph (a), clauses (1) to (4).
51.10EFFECTIVE DATE.This section is effective the day following final enactment
51.11and applies to school report cards beginning July 1, 2011.

51.12    Sec. 42. GROWTH-BASED VALUE-ADDED SYSTEM.
51.13    The growth-based value-added system used by the commissioner of education to
51.14comply with Minnesota Statutes, section 120B.35, subdivision 3, paragraph (b), must be
51.15consistent with the growth-based value-added model contained in the document labeled
51.16"Educational Report Card Growth Model." The document must be deposited with the
51.17Minnesota Office of the Revisor of Statutes, the Minnesota Legislative Reference Library,
51.18and the Minnesota State Law Library, where the document shall be maintained until
51.19the commissioner implements the growth-based value-added system under Minnesota
51.20Statutes, section 120B.35, subdivision 3, paragraph (b). The recognized Minnesota
51.21assessment group composed of assessment and evaluation directors and staff and
51.22researchers under Minnesota Statutes, section 120B.299, subdivision 6, must determine
51.23whether the growth-based value-added model the commissioner uses to comply with
51.24Minnesota Statutes, section 120B.35, subdivision 3, paragraph (b), is consistent with the
51.25deposited document and report its determination to the education committees of the house
51.26of representatives and senate by February 15, 2009.
51.27EFFECTIVE DATE.This section is effective the day following final enactment.

51.28    Sec. 43. SCHOOL DISTRICT PLANS TO IMPROVE STUDENTS' ACADEMIC
51.29ACHIEVEMENT.
51.30    Subdivision 1. District academic achievement plan; priorities. (a) A school
51.31district experiencing disparities in academic achievement is encouraged to develop a
51.32short and long-term plan encompassing one through four years to significantly improve
51.33students' academic achievement that uses concrete measures to eliminate differences in
52.1academic performance among groups of students defined by race, ethnicity and income.
52.2The plan must:
52.3    (1) reflect a research-based understanding of high-performing educational systems
52.4and best educational practices;
52.5    (2) include innovative and practical strategies and programs, whether existing or
52.6new, that supplement district initiatives to increase students' academic achievement under
52.7state and federal educational accountability requirements; and
52.8    (3) contain valid and reliable measures of student achievement that the district uses
52.9to demonstrate the efficacy of the district plan to the education commissioner.
52.10    (b) A district must address the elements under section 2, paragraph (a), to the extent
52.11those elements are implicated in the district's plan.
52.12    (c) A district must identify in its plan the strategies and programs the district has
52.13implemented and found effective in improving students' academic achievement.
52.14    (d) The district must include with the plan the amount of expenditures necessary
52.15to implement the plan. The district must indicate how current resources are used to
52.16implement the plan, including, but not limited to, state-limited English proficiency aid
52.17under Minnesota Statutes, section 124D.65; integration revenue under Minnesota Statutes,
52.18section 124D.86; early childhood family education revenue under Minnesota Statutes,
52.19section 124D.135; school readiness aid under Minnesota Statutes, section 124D.16; basic
52.20skills revenue under Minnesota Statutes, section 126C.10, subdivision 4; extended time
52.21revenue under Minnesota Statutes, section 126C.10, subdivision 2a; and alternative
52.22compensation revenue under Minnesota Statutes, section 122A.415.
52.23    Subd. 2. Plan. (a) A school district by October 1, 2008, must submit its plan in
52.24electronic format to the commissioner, consistent with subdivision 1.
52.25    (b) The commissioner must analyze the commonalities and differences of the district
52.26plans and the effective strategies and programs districts have implemented to improve
52.27students' academic achievement, and submit the analysis and underlying data to the
52.28advisory task force on improving students' academic achievement under section 2 by
52.29November 1, 2008, and also report the substance of the analyses to the education policy
52.30and finance committees of the legislature by January 1, 2009.
52.31EFFECTIVE DATE.This section is effective the day following final enactment.

52.32    Sec. 44. ADVISORY TASK FORCE ON IMPROVING STUDENTS'
52.33ACADEMIC ACHIEVEMENT.
52.34    (a) An advisory task force on improving students' academic achievement is
52.35established to review the plans submitted to the education commissioner under section 1
53.1and recommend to the education committees of the legislature a proposal for improving
53.2students' academic achievement and eliminating differences in academic performance
53.3among groups of students defined by race, ethnicity, and income. The task force members
53.4must at least consider how the following education-related issues impact the educational
53.5achievement of low-income students and students of color:
53.6    (1) rigorous preparation and coursework and how to (i) effectively invest in early
53.7childhood and parent education, (ii) increase academic rigor and high expectations on
53.8elementary and secondary students in schools serving a majority of low-income students
53.9and students of color, and (iii) provide parents, educators, and community members with
53.10meaningful opportunities to collaborate in educating students in schools serving a majority
53.11of low-income students and students of color;
53.12    (2) professional development for educators and how to (i) provide stronger financial
53.13and professional incentives to attract and retain experienced, bilingual, and culturally
53.14competent teachers and administrators in schools serving a majority of low-income
53.15students and students of color, (ii) recruit and retain teachers of color, and (iii) develop and
53.16include cultural sensitivity and interpersonal and pedagogical skills training that teachers
53.17need for effective intercultural teaching;
53.18    (3) English language learners and how to (i) use well designed tests, curricula,
53.19and English as a second language programs and services as diagnostic tools to develop
53.20effective student interventions, (ii) monitor students' language capabilities, (iii) provide
53.21academic instruction in English that supports students' learning and is appropriate
53.22for students' level of language proficiency, and (iv) incorporate the perspectives and
53.23contributions of ethnic and racial groups, consistent with Minnesota Statutes, section
53.24120B.022, subdivision 1, paragraph (b);
53.25    (4) special education and how to (i) incorporate linguistic and cultural sensitivity
53.26into special education diagnosis and referral, (ii) increase the frequency and quality of
53.27prereferral interventions, and (iii) decrease the number of minority and nonnative English
53.28speaking students inappropriately placed in special education;
53.29    (5) GRAD tests and how to (i) incorporate linguistic and cultural sensitivity into the
53.30reading and math GRAD tests, and (ii) develop interventions to meet students' learning
53.31needs; and
53.32    (6) valid and reliable data and how to use data on student on-time graduation rates,
53.33student dropout rates, documented disciplinary actions, and completed and rigorous course
53.34work indicators to determine how well-prepared low-income students and students of
53.35color are for postsecondary academic and career opportunities.
54.1    The task force also must examine the findings of a 2008 report by Minnesota
54.2superintendents on strategies for creating a world-class educational system to establish
54.3priorities for improving students' academic achievement. The task force may consider
54.4other related matters at its discretion.
54.5    (b) The commissioner of education must convene the first meeting of the advisory
54.6task force on improving students' academic achievement by July 1, 2008. The task force
54.7members must adopt internal procedures and standards for subsequent meetings. The task
54.8force is composed of the following members:
54.9    (1) a representative from a Twin Cities metropolitan area school district, a suburban
54.10school district, a school district located in a regional center, and a rural school district, all
54.11four representatives appointed by the state demographer based on identified concentrations
54.12of low performing low-income students and students of color;
54.13    (2) a faculty member of a teacher preparation program at the University of
54.14Minnesota's college of education and human development, appointed by the college dean
54.15or the dean's designee;
54.16    (3) a faculty member from the urban teachers program at Metropolitan State
54.17University appointed by the chancellor or the chancellor's designee;
54.18    (4) a faculty member from a MnSCU teacher preparation program located outside
54.19the Twin Cities metropolitan area, appointed by the university president or the president's
54.20designee;
54.21    (5) a classroom teacher appointed by Education Minnesota;
54.22    (6) an expert in early childhood care and education appointed by a state early
54.23childhood organization;
54.24    (7) a member from each state council representing a community of color, appointed
54.25by the respective council;
54.26    (8) a curriculum specialist with expertise in providing language instruction for
54.27nonnative English speakers, appointed by a state curriculum organization;
54.28    (9) a special education teacher, appointed by a state organization of special education
54.29educators;
54.30    (10) a parent of color, appointed by a state parent-teacher organization;
54.31    (11) a district testing director appointed by a recognized Minnesota assessment
54.32group composed of assessment and evaluation directors and staff and researchers; and
54.33    (12) a Minnesota Department of Education staff person with expertise in school
54.34desegregation matters appointed by the education commissioner or the commissioner's
54.35designee.
55.1    A majority of task force members, at their discretion, may invite other representatives
55.2of interested public or nonpublic organizations, Minnesota's communities of color, and
55.3stakeholders in local and state educational equity to become task force members. A
55.4majority of task force members must be persons of color.
55.5    (c) Task force members' terms and other task force matters are subject to Minnesota
55.6Statutes, section 15.059. The commissioner may reimburse task force members from
55.7the education department's current operating budget but may not compensate task force
55.8members for task force activities. By February 15, 2009, the task force must submit
55.9written proposal to the education policy and finance committees of the legislature on how
55.10to significantly improve students' academic achievement.
55.11    (d) The advisory task force expires on February 16, 2009.
55.12EFFECTIVE DATE.This section is effective the day following final enactment.

55.13    Sec. 45. ADVISORY TASK FORCE; INTEGRATING SECONDARY AND
55.14POSTSECONDARY ACADEMIC AND CAREER EDUCATION.
55.15    (a) An advisory task force on improving teacher quality and identifying institutional
55.16structures and strategies for effectively integrating secondary and postsecondary academic
55.17and career education is established to consider and recommend to the education policy and
55.18finance committees of the legislature proposals on how to:
55.19    (1) foster classroom teachers' interest and ability to acquire a master's degree in the
55.20teachers' substantive fields of licensure; and
55.21    (2) meet all elementary and secondary students' needs for adequate education
55.22planning and preparation and improve all students' ability to acquire the knowledge and
55.23skills needed for postsecondary academic and career education.
55.24    (b) The commissioner of education, or the commissioner's designee, shall appoint
55.25an advisory task force that is composed of a representative from each of the following
55.26entities: Education Minnesota, the University of Minnesota, the Minnesota Department
55.27of Education, the Minnesota Board of Teaching, the Minnesota Private College Council,
55.28the Minnesota Office of Higher Education, the Minnesota Career College Association,
55.29the Minnesota PTA, the Minnesota Chamber of Commerce, the Minnesota Business
55.30Partnership, the Minnesota Department of Employment and Economic Development, the
55.31Minnesota Association of Career and Technical Administrators, the Minnesota Association
55.32of Career and Technical Educators, the Minnesota State Colleges and Universities, and
55.33other representatives of other entities recommended by task force members. Task force
55.34members' terms and other task force matters are subject to Minnesota Statutes, section
55.3515.059. The commissioner of education may reimburse task force members from the
56.1education department's current operating budget but may not compensate task force
56.2members for task force activities. By February 15, 2009, the task force must submit
56.3written recommendations to the education policy and finance committees of the legislature
56.4on improving teacher quality and identifying the institutional structures and strategies
56.5for effectively integrating secondary and postsecondary academic and career education,
56.6consistent with this section.
56.7    (c) Upon request, the commissioner of education must provide the task force with
56.8technical, fiscal, and other support services.
56.9    (d) The advisory task force expires February 16, 2009.
56.10EFFECTIVE DATE.This section is effective the day following final enactment.

56.11    Sec. 46. COMPUTER ADAPTIVE ASSESSMENTS.
56.12    The Department of Education, by December 1, 2008, must report to the education
56.13committees of the legislature on its efforts to add a computer adaptive assessment that
56.14includes formative analytics to the Minnesota's comprehensive assessment administered
56.15under Minnesota Statutes, section 120B.30.
56.16EFFECTIVE DATE.This section is effective the day following final enactment.

56.17    Sec. 47. DEPARTMENT OF EDUCATION REPORT.
56.18    The Department of Education must submit a report to the education committees
56.19of the legislature by January 15, 2009, analyzing existing stand-alone school district
56.20reporting requirements and recommend the elimination of any district reports that are
56.21duplicative of other data already collected by the department.

56.22    Sec. 48. REVIVAL AND REENACTMENT.
56.23    Minnesota Statutes, section 124D.10, subdivision 2a, is revived and reenacted
56.24effective retroactively and without interruption from June 30, 2007.

56.25    Sec. 49. REVISOR'S INSTRUCTION.
56.26    In Minnesota Statutes, the revisor of statutes shall renumber section 122A.60,
56.27subdivision 1a, as section 122A.60, subdivision 3a, and make necessary cross-reference
56.28changes consistent with the renumbering.


56.31    Section 1. Minnesota Statutes 2006, section 124D.60, subdivision 1, is amended to
56.32read:
57.1    Subdivision 1. Notice. Within ten 30 days after the enrollment of any pupil in an
57.2instructional program for limited English proficient students, the district in which the pupil
57.3resides must notify the parent by mail. This notice must:
57.4    (1) be in writing in English and in the primary language of the pupil's parents;
57.5    (2) inform the parents that their child has been enrolled in an instructional program
57.6for limited English proficient students;
57.7    (3) contain a simple, nontechnical description of the purposes, method and content
57.8of the program;
57.9    (4) inform the parents that they have the right to visit the educational program for
57.10limited English proficient students in which their child is enrolled;
57.11    (5) inform the parents of the time and manner in which to request and receive a
57.12conference for the purpose of explaining the nature and purpose of the program; and
57.13    (6) inform the parents of their rights to withdraw their child from an educational
57.14program for limited English proficient students and the time and manner in which to do so.
57.15    The department shall, at the request of the district, prepare the notice in the primary
57.16language of the parent.

57.17    Sec. 2. Minnesota Statutes 2007 Supplement, section 125A.14, is amended to read:
57.18125A.14 EXTENDED SCHOOL YEAR.
57.19    A district may provide extended school year services for children with a disability
57.20living within the district and nonresident children temporarily placed in the district
57.21pursuant to section 125A.15 or 125A.16. Prior to March 31 or 30 days after the child with
57.22a disability is placed in the district, whichever is later, the providing district shall give
57.23notice to the district of residence of any nonresident children temporarily placed in the
57.24district pursuant to section 125A.15 or 125A.16, of its intention to provide these programs.
57.25Notwithstanding any contrary provisions in sections 125A.15 and 125A.16, the district
57.26providing the special instruction and services must apply for special education aid for the
57.27extended school year services. The unreimbursed actual cost of providing the program
57.28for nonresident children with a disability, including the cost of board and lodging, may
57.29be billed to the district of the child's residence and must be paid by the resident district.
57.30Transportation costs must be paid by the district responsible for providing transportation
57.31pursuant to section 125A.15 or 125A.16 and transportation aid must be paid to that district.

57.32    Sec. 3. Minnesota Statutes 2006, section 125A.744, subdivision 3, is amended to read:
57.33    Subd. 3. Implementation. Consistent with section 256B.0625, subdivision 26,
57.34school districts may enroll as medical assistance providers or subcontractors and bill
57.35the Department of Human Services under the medical assistance fee for service claims
58.1processing system for special education services which are covered services under chapter
58.2256B, which are provided in the school setting for a medical assistance recipient, and for
58.3whom the district has secured informed consent consistent with section 13.05, subdivision
58.44 , paragraph (d), and section 256B.77, subdivision 2, paragraph (p), to bill for each type
58.5of covered service. School districts shall be reimbursed by the commissioner of human
58.6services for the federal share of individual education plan health-related services that
58.7qualify for reimbursement by medical assistance, minus up to five percent retained by the
58.8commissioner of human services for administrative costs, not to exceed $350,000 per
58.9fiscal year. The commissioner may withhold up to five percent of each payment to a
58.10school district. Following the end of each fiscal year, the commissioner shall settle up with
58.11each school district in order to ensure that collections from each district for departmental
58.12administrative costs are made on a pro rata basis according to federal earnings for these
58.13services in each district. A school district is not eligible to enroll as a home care provider
58.14or a personal care provider organization for purposes of billing home care services under
58.15sections 256B.0651 and 256B.0653 to 256B.0656 until the commissioner of human
58.16services issues a bulletin instructing county public health nurses on how to assess for the
58.17needs of eligible recipients during school hours. To use private duty nursing services or
58.18personal care services at school, the recipient or responsible party must provide written
58.19authorization in the care plan identifying the chosen provider and the daily amount
58.20of services to be used at school.

58.21    Sec. 4. Laws 2007, chapter 146, article 3, section 23, subdivision 2, is amended to read:
58.22    Subd. 2. Report. (a) The task force must submit to the education policy and finance
58.23committees of the legislature by February 15, 2008 2009, a report that identifies and
58.24clearly and concisely explains each provision in state law or rule that exceeds or expands
58.25upon a minimum federal requirement contained in law or regulation for providing special
58.26education programs and services to eligible students. The report also must recommend
58.27which state provisions statutes and rules that exceed or expand upon a minimum federal
58.28requirement may be amended to conform with minimum federal requirements or made
58.29more effective as determined by a majority of the task force members. The task force
58.30expires when it submits its report to the legislature.
58.31    (b) Consistent with subdivision 1, the Department of Education member of the
58.32task force representing regulators shall be replaced with a parent advocate selected by a
58.33statewide organization that advocates on behalf of families with children with disabilities.
58.34    (c) The Department of Education must provide technical assistance at the request of
58.35the task force.
59.1EFFECTIVE DATE.This section is effective the day following final enactment.

59.2    Sec. 5. REPEALER.
59.3Minnesota Statutes 2006, sections 125A.16; 125A.19; 125A.20; and 125A.57, are
59.4repealed.
59.5EFFECTIVE DATE.This section is effective the day following final enactment.


59.8    Section 1. Minnesota Statutes 2007 Supplement, section 134.31, subdivision 4a,
59.9is amended to read:
59.10    Subd. 4a. Services to the blind and physically handicapped. The Minnesota
59.11Department of Education shall provide specialized services to the blind and physically
59.12handicapped through the Minnesota Braille and Talking Book Library for the Blind and
59.13Physically Handicapped under a cooperative plan with the National Library Services for
59.14the Blind and Physically Handicapped of the Library of Congress.

59.15    Sec. 2. Minnesota Statutes 2006, section 134.31, subdivision 6, is amended to read:
59.16    Subd. 6. Advisory committee. The commissioner shall appoint an advisory
59.17committee of five members to advise the staff of the Minnesota Braille and Talking
59.18Book Library for the Blind and Physically Handicapped on long-range plans and library
59.19services. Members shall be people who use the library. Section 15.059 governs this
59.20committee except that the committee shall not expire.

59.21    Sec. 3. Minnesota Statutes 2006, section 134.31, is amended by adding a subdivision
59.22to read:
59.23    Subd. 7. Telephone or electronic meetings. (a) Notwithstanding section 13D.01,
59.24the Advisory Committee for the Minnesota Braille and Talking Book Library may conduct
59.25a meeting of its members by telephone or other electronic means so long as the following
59.26conditions are met:
59.27    (1) all members of the committee participating in the meeting, wherever their
59.28physical locations, can hear one another and can hear all discussion and testimony;
59.29    (2) members of the public present at the regular meeting location of the committee
59.30can hear all discussion, testimony, and votes of the members of the committee;
59.31    (3) at least one member of the committee is physically present at the regular meeting
59.32location; and
60.1    (4) all votes are conducted by roll call, so each member's votes on each issue can be
60.2identified and recorded.
60.3    (b) Each member of the committee participating in a meeting by telephone or other
60.4electronic means is considered present at the meeting for purposes of determining quorum
60.5and participating in all proceedings.
60.6    (c) If telephone or other electronic means is used to conduct a meeting, to the extent
60.7practical, the committee shall allow a person to monitor the meeting electronically from a
60.8remote location. The committee may require the person making the connection to pay
60.9for the documented marginal costs that the committee incurs as a result of the additional
60.10connection.
60.11    (d) If telephone or other electronic means is used to conduct a regular, special, or
60.12emergency meeting, the committee shall provide notice of the regular meeting location,
60.13the fact that some members may participate by telephone or other electronic means, and
60.14the provisions of paragraph (c). The timing and method of providing notice is governed
60.15by section 13D.04.


60.18    Section 1. Minnesota Statutes 2006, section 125A.65, subdivision 4, is amended to
60.19read:
60.20    Subd. 4. Unreimbursed costs. (a) For fiscal year 2006, in addition to the tuition
60.21charge allowed in subdivision 3, the academies may charge the child's district of residence
60.22for the academy's unreimbursed cost of providing an instructional aide assigned to that
60.23child, after deducting the special education aid under section 125A.76, attributable to the
60.24child, if that aide is required by the child's individual education plan. Tuition received
60.25under this paragraph must be used by the academies to provide the required service.
60.26    (b) For fiscal year 2007 2008 and later, the special education aid paid to the
60.27academies shall be increased by the academy's unreimbursed cost of providing an one
60.28to one instructional aide and behavioral management aides assigned to a child, after
60.29deducting the special education aid under section 125A.76 attributable to the child, if that
60.30aide is the aides are required by the child's individual education plan. Aid received under
60.31this paragraph must be used by the academies to provide the required service.
60.32    (c) For fiscal year 2007 2008 and later, the special education aid paid to the district
60.33of the child's residence shall be reduced by the amount paid to the academies for district
60.34residents under paragraph (b).
61.1    (d) Notwithstanding section 127A.45, subdivision 3, beginning in fiscal year 2008,
61.2the commissioner shall make an estimated final adjustment payment to the Minnesota
61.3State Academies for general education aid and special education aid for the prior fiscal
61.4year by August 15.
61.5    (e) For fiscal year 2007, the academies may retain receipts received through mutual
61.6agreements with school districts for one to one behavior management aides.
61.7EFFECTIVE DATE.This section is effective the day following final enactment
61.8for revenue in fiscal year 2008.

61.9    Sec. 2. Minnesota Statutes 2006, section 125A.65, is amended by adding a subdivision
61.10to read:
61.11    Subd. 11. Third party reimbursement. The Minnesota State Academies must seek
61.12reimbursement under section 125A.21 from third parties for the cost of services provided
61.13by the Minnesota State Academies whenever the services provided are otherwise covered
61.14by a child's public or private health plan.
61.15EFFECTIVE DATE.This section is effective the day following final enactment
61.16for revenue in fiscal year 2008.


61.19    Section 1. Minnesota Statutes 2007 Supplement, section 124D.13, subdivision 11,
61.20is amended to read:
61.21    Subd. 11. Teachers. A school board must employ necessary qualified teachers
61.22individuals licensed in early childhood or parent education or teaching under a permission
61.23authorized by the Board of Teaching for its early childhood family education programs.

61.24    Sec. 2. Minnesota Statutes 2006, section 124D.522, is amended to read:
61.25124D.522 ADULT BASIC EDUCATION SUPPLEMENTAL SERVICE
61.26GRANTS.
61.27    (a) The commissioner, in consultation with the policy review task force under
61.28section 124D.521, may make grants to nonprofit organizations to provide services that
61.29are not offered by a district adult basic education program or that are supplemental to
61.30either the statewide adult basic education program, or a district's adult basic education
61.31program. The commissioner may make grants for: staff development for adult basic
61.32education teachers and administrators; training for volunteer tutors; training, services, and
61.33materials for serving disabled students through adult basic education programs; statewide
62.1promotion of adult basic education services and programs; development and dissemination
62.2of instructional and administrative technology for adult basic education programs;
62.3programs which primarily serve communities of color; adult basic education distance
62.4learning projects, including television instruction programs; and other supplemental
62.5services to support the mission of adult basic education and innovative delivery of adult
62.6basic education services.
62.7    (b) The commissioner must establish eligibility criteria and grant application
62.8procedures. Grants under this section must support services throughout the state, focus on
62.9educational results for adult learners, and promote outcome-based achievement through
62.10adult basic education programs. Beginning in fiscal year 2002, the commissioner may
62.11make grants under this section from the state total adult basic education aid set aside for
62.12supplemental service grants under section 124D.531. Up to one-fourth of the appropriation
62.13for supplemental service grants must be used for grants for adult basic education programs
62.14to encourage and support innovations in adult basic education instruction and service
62.15delivery. A grant to a single organization cannot exceed $100,000 25 percent of the total
62.16supplemental services aid. Nothing in this section prevents an approved adult basic
62.17education program from using state or federal aid to purchase supplemental services.

62.18    Sec. 3. Minnesota Statutes 2006, section 124D.55, is amended to read:
62.19124D.55 GENERAL EDUCATION DEVELOPMENT (GED) TEST FEES.
62.20    The commissioner shall pay 60 percent of the fee that is charged to an eligible
62.21individual for the full battery of a general education development (GED) test, but not more
62.22than $20 $40 for an eligible individual."
62.23Amend the title accordingly