1.1 	A bill for an act
1.2 	relating to education; providing for early childhood and family, prekindergarten 
1.3 	through grade 12, and adult education, including general education, education 
1.4 	excellence, special programs, facilities and technology, nutrition and accounting, 
1.5 	libraries, early childhood education, prevention, self-sufficiency and lifelong 
1.6 	learning, state agencies, and PELRA; authorizing rulemaking; appropriating 
1.7 	money;amending Minnesota Statutes 2008, sections 120A.41; 120B.023, 
1.8 	subdivision 2; 120B.024; 120B.30, subdivisions 1, 1a, 2; 120B.362; 122A.09, 
1.9 	subdivision 4; 122A.18, subdivision 2; 122A.40, subdivision 8; 122A.413, 
1.10 	subdivisions 1, 2; 122A.414, subdivisions 1a, 2, 2b, 3, by adding a subdivision; 
1.11 	122A.415, subdivisions 1, 3; 122A.416; 123B.75, subdivision 5; 124D.10, 
1.12 	subdivision 13; 124D.11, subdivision 1; 124D.86, subdivision 3; 125A.11, 
1.13 	subdivision 1; 125A.76, subdivision 2; 125A.79, subdivisions 1, 8; 125B.26; 
1.14 	126C.10, subdivisions 1, 2a, 34, by adding a subdivision; 127A.441; 127A.45, 
1.15 	subdivisions 2, 3, 13, by adding a subdivision; 179A.18, subdivision 2; proposing 
1.16 	coding for new law in Minnesota Statutes, chapters 120B; 122A; 124D; 127A; 
1.17 	179A; repealing Minnesota Statutes 2008, sections 122A.24; 122A.414, 
1.18 	subdivisions 1a, 4; 122A.72, subdivisions 3, 4; 123B.05; 124D.091, subdivision 
1.19 	3; 129C.10, subdivisions 1, 2, 3, 3a, 4, 6, 7, 8; 129C.105; 129C.15; 129C.20; 
1.20 	129C.25; 129C.26; 179A.17, subdivision 1.
1.21 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.22 	ARTICLE 1
1.23 	GENERAL EDUCATION

1.24 	Section 1. Minnesota Statutes 2008, section 120A.41, is amended to read:
1.25 	120A.41 LENGTH OF SCHOOL YEAR; DAYS HOURS OF INSTRUCTION.
1.26 	A school board's annual school calendar must include at least the number of days of 
1.27 	student instruction the board formally adopted as its school calendar at the beginning of 
1.28 	the 1996-1997 school year 425 hours of instruction for a kindergarten student without a 
1.29 	disability, 935 hours of instruction for a student in grades 1 though 6, and 1,020 hours of 
1.30 	instruction for a student in grades 7 though 12, not including summer school.

2.1 	Sec. 2. Minnesota Statutes 2008, section 122A.413, subdivision 1, is amended to read:
2.2 		Subdivision 1.Qualifying plan. A district or intermediate school district may must
2.3 	develop an educational improvement plan for the purpose of qualifying for the alternative 
2.4 	teacher professional pay system under section 122A.414. The plan must include measures 
2.5 	for improving school district, or intermediate school district, school site, teacher, and 
2.6 	individual student performance.

2.7 	Sec. 3. Minnesota Statutes 2008, section 122A.413, subdivision 2, is amended to read:
2.8 		Subd. 2.Plan components. The educational improvement plan must be approved 
2.9 	by the school board and have at least these elements:
2.10 	(1) assessment and evaluation tools to measure student performance and progress;
2.11 	(2) performance goals and benchmarks for improvement;
2.12 	(3) measures of student attendance and completion rates;
2.13 	(4) a rigorous professional development system, consistent with section 122A.60, 
2.14 	that is aligned with educational improvement, designed to achieve teaching quality 
2.15 	improvement, instructional leadership, and consistent with clearly defined research-based 
2.16 	standards;
2.17 	(5) measures of student, family, and community involvement and satisfaction;
2.18 	(6) a data system about students and their academic progress that provides parents 
2.19 	and the public with understandable information;
2.20 	(7) a teacher induction and mentoring program for probationary teachers that 
2.21 	provides continuous learning and sustained teacher support; and
2.22 	(8) substantial participation by the exclusive representative of the teachers in 
2.23 	developing the plan.

2.24 	Sec. 4. Minnesota Statutes 2008, section 122A.414, subdivision 1a, is amended to read:
2.25 		Subd. 1a.Transitional planning year. (a) To be eligible to participate in an 
2.26 	alternative teacher professional pay system, a school district, or intermediate school 
2.27 	district, or site, at least one school year before it expects to fully implement an alternative 
2.28 	pay system, must:
2.29 	(1) submit to the department a letter of intent executed by the school district or 
2.30 	intermediate school district and the exclusive representative of the teachers to complete a 
2.31 	plan preparing for full implementation, consistent with subdivision 2, that may include, 
2.32 	among other activities, training to evaluate teacher performance, a restructured school 
2.33 	day to develop integrated ongoing site-based professional development activities, teacher 
3.1 	release time to develop an alternative pay system agreement, and teacher and staff training 
3.2 	on using multiple data sources; and
3.3 	(2) agree to use up to two percent of basic revenue for staff development purposes, 
3.4 	consistent with sections 122A.60 and 122A.61, to develop the alternative teacher 
3.5 	professional pay system agreement under this section.
3.6 	(b) To be eligible to participate in an alternative teacher professional pay system, a 
3.7 	charter school, at least one school year before it expects to fully implement an alternative 
3.8 	pay system, must:
3.9 	(1) submit to the department a letter of intent executed by the charter school and the 
3.10 	charter school board of directors;
3.11 	(2) submit the record of a formal vote by the teachers employed at the charter 
3.12 	school indicating at least 70 percent of all teachers agree to implement the alternative 
3.13 	pay system; and
3.14 	(3) agree to use up to two percent of basic revenue for staff development purposes, 
3.15 	consistent with sections 122A.60 and 122A.61, to develop the alternative teacher 
3.16 	professional pay system.
3.17 	(c) The commissioner may waive the planning year if the commissioner determines, 
3.18 	based on the criteria under subdivision 2, that the school district, intermediate school 
3.19 	district, site or charter school is ready to fully implement an alternative pay system.

3.20 	Sec. 5. Minnesota Statutes 2008, section 122A.414, subdivision 2, is amended to read:
3.21 		Subd. 2.Alternative teacher professional pay system. (a) To participate in this 
3.22 	program, aAll school district districts, intermediate school district districts, school site, 
3.23 	or and charter school schools must have an educational improvement plan under section 
3.24 	122A.413 and an alternative teacher professional pay system agreement under paragraph 
3.25 	(b) by the start of the 2010-2011 school year. A charter school participant also must 
3.26 	comply with subdivision 2a.
3.27 	(b) The alternative teacher professional pay system agreement must:
3.28 	(1) describe how teachers can achieve career advancement and additional 
3.29 	compensation;
3.30 	(2) describe how the school district, intermediate school district, school site, or 
3.31 	charter school will provide teachers with career advancement options or ladders that 
3.32 	allow teachers to retain primary roles in student instruction and facilitate site-focused 
3.33 	professional development that helps other teachers improve their skills;
3.34 	(3) reform the "steps and lanes" salary schedule by establishing an alternative 
3.35 	salary schedule that utilizes methods other than seniority and fully or partially embeds 
4.1 	performance pay outlined in items (i) through (iii), prevent any teacher's compensation 
4.2 	paid before implementing the pay system from being reduced as a result of participating 
4.3 	in this system, improve beginning teacher salaries, and base at least 60 percent of any 
4.4 	compensation increase on teacher performance using:
4.5 	(i) schoolwide student achievement gains under section 120B.35 or locally selected 
4.6 	standardized assessment outcomes, or both;
4.7 	(ii) measures of student achievement; and
4.8 	(iii) an objective teacher evaluation program that includes:
4.9 	(A) individual teacher evaluations aligned with the educational improvement plan 
4.10 	under section 122A.413 and the staff development plan under section 122A.60; and
4.11 	(B) objective teacher evaluations using multiple criteria conducted by a locally 
4.12 	selected and periodically trained evaluation team that understands teaching and learning;
4.13 	(4) provide integrated ongoing site-based job-embedded professional development 
4.14 	activities to improve instructional skills and learning that are aligned with student needs 
4.15 	under section 122A.413, consistent with the staff development plan under section 122A.60
4.16 	and led during the school day by trained teacher leaders such as master or mentor teachers;
4.17 	(5) allow any teacher in a participating school district, intermediate school district, 
4.18 	school site, or charter school that implements an alternative pay system to participate in 
4.19 	that system without any quota or other limit; and
4.20 	(6) encourage collaboration rather than competition among teachers.

4.21 	Sec. 6. Minnesota Statutes 2008, section 122A.414, subdivision 2b, is amended to read:
4.22 		Subd. 2b.Approval process. (a) Consistent with the requirements of this section 
4.23 	and sections 122A.413 and 122A.415, the department must prepare and transmit to 
4.24 	interested all school districts, intermediate school districts, school sites, and charter 
4.25 	schools a standard form for applying to participate in the alternative teacher professional 
4.26 	pay system. An interestedAll school district districts, intermediate school district
4.27 	districts, school site, or and charter school schools must submit to the commissioner a 
4.28 	completed application executed by the district superintendent and the exclusive bargaining 
4.29 	representative of the teachers if the applicant is a school district, or intermediate school 
4.30 	district, or school site, or executed by the charter school board of directors if the applicant 
4.31 	is a charter school. The application must include the proposed alternative teacher 
4.32 	professional pay system agreement under subdivision 2. The department must convene 
4.33 	a review committee that at least includes teachers and administrators within 30 days 
4.34 	of receiving a completed application to recommend to the commissioner whether to 
4.35 	approve or disapprove the application. The commissioner must approve applications on a 
5.1 	first-come, first-served basis. The commissioner may establish submission deadlines for 
5.2 	school districts and charter schools submitting applications to the department under this 
5.3 	section. The applicant's alternative teacher professional pay system agreement must be 
5.4 	legally binding on the applicant and the collective bargaining representative before the 
5.5 	applicant receives alternative compensation revenue. The commissioner must approve or 
5.6 	disapprove an application based on the requirements under subdivisions 2 and 2a.
5.7 	(b) If the commissioner disapproves an application, the commissioner must give the 
5.8 	applicant timely notice of the specific reasons in detail for disapproving the application. 
5.9 	The applicant may revise and resubmit its application and related documents to the 
5.10 	commissioner within 30 days of receiving notice of the commissioner's disapproval and 
5.11 	the commissioner must approve or disapprove the revised application, consistent with this 
5.12 	subdivision. Applications that are revised and then approved are considered submitted on 
5.13 	the date the applicant initially submitted the application.

5.14 	Sec. 7. Minnesota Statutes 2008, section 122A.414, subdivision 3, is amended to read:
5.15 		Subd. 3.Report; continued funding. (a) Participating districts, intermediate 
5.16 	school districts, school sites, and charter schools must report on the implementation and 
5.17 	effectiveness of the alternative teacher professional pay system, particularly addressing 
5.18 	each requirement under subdivision 2 and make annual recommendations by June 15 to 
5.19 	their school boards. The school board or board of directors shall transmit a copy of the 
5.20 	report with a summary of the findings and recommendations of the district, intermediate 
5.21 	school district, school site, or charter school to the commissioner.
5.22 	(b) If the commissioner determines that a school district, intermediate school district, 
5.23 	school site, or charter school that receives alternative teacher compensation revenue is not 
5.24 	complying with the requirements of this section, the commissioner may withhold funding 
5.25 	from that participant. Before making the determination, the commissioner must notify the 
5.26 	participant of any deficiencies and provide the participant an opportunity to comply.

5.27 	Sec. 8. Minnesota Statutes 2008, section 122A.414, is amended by adding a 
5.28 	subdivision to read:
5.29 		Subd. 5.Quality Compensation Advisory Council. (a) A Quality Compensation 
5.30 	Advisory Council is established. The term for each council member shall be three years. 
5.31 	The advisory council must include at least 12 members. The members must include 
5.32 	representatives from the Department of Education, Education Minnesota, the Minnesota 
5.33 	Association of Metropolitan School Districts, the Minnesota Association of School 
5.34 	Administrators, the Minnesota Rural Education Association, the Minnesota School 
6.1 	Boards Association, the Minnesota Business Partnership, and the Minnesota Chamber 
6.2 	of Commerce. The commissioner shall appoint additional members to the council. The 
6.3 	advisory council must:
6.4 	(1) meet at least quarterly to review and monitor implementation of this section;
6.5 	(2) monitor and evaluate the results and effectiveness of the program; and
6.6 	(3) report annually by February 1 to the commissioner and the education policy and 
6.7 	finance committees of the legislature on the administration, processes, implementation, 
6.8 	and effectiveness of this section.

6.9 	Sec. 9. Minnesota Statutes 2008, section 122A.415, subdivision 1, is amended to read:
6.10 		Subdivision 1.Revenue amount. (a) A school district, intermediate school district, 
6.11 	school site, or charter school that meets the conditions of section 122A.414 and submits an 
6.12 	application approved by the commissioner is eligible for alternative teacher compensation 
6.13 	revenue.
6.14 	(b) For school district and intermediate school district applications, the commissioner 
6.15 	must consider only those applications to participate that are submitted jointly by a 
6.16 	district and the exclusive representative of the teachers. The application must contain an 
6.17 	alternative teacher professional pay system agreement that:
6.18 	(1) implements an alternative teacher professional pay system consistent with 
6.19 	section 122A.414; and
6.20 	(2) is negotiated and adopted according to the Public Employment Labor Relations 
6.21 	Act under chapter 179A, except that notwithstanding section 179A.20, subdivision 3, a 
6.22 	district may enter into a contract for a term of two or four years.
6.23 	Alternative teacher compensation revenue for a qualifying school district or site in 
6.24 	which the school board and the exclusive representative of the teachers agree to place 
6.25 	teachers in the district or at the site on the alternative teacher professional pay system 
6.26 	equals $260 $300 times the number of pupils enrolled at the district or site on October 
6.27 	1 of the previous fiscal year. Alternative teacher compensation revenue for a qualifying 
6.28 	intermediate school district must be calculated under section 126C.10, subdivision 34, 
6.29 	paragraphs (a) and (b).
6.30 	(c) For a newly combined or consolidated district, the revenue shall be computed 
6.31 	using the sum of pupils enrolled on October 1 of the previous year in the districts entering 
6.32 	into the combination or consolidation. The commissioner may adjust the revenue 
6.33 	computed for a site using prior year data to reflect changes attributable to school closings, 
6.34 	school openings, or grade level reconfigurations between the prior year and the current 
6.35 	year.
7.1 	(d) The revenue is available only to school districts, intermediate school districts, 
7.2 	school sites, and charter schools that fully implement an alternative teacher professional 
7.3 	pay system by October 1 of the current school year.

7.4 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2011 
7.5 	and later.

7.6 	Sec. 10. Minnesota Statutes 2008, section 122A.415, subdivision 3, is amended to read:
7.7 		Subd. 3.Revenue timing. (a) Districts, intermediate school districts, school sites,
7.8 	or charter schools with approved applications must receive alternative compensation 
7.9 	revenue for each school year that the district, intermediate school district, school site,
7.10 	or charter school implements an alternative teacher professional pay system under this 
7.11 	subdivision and section 122A.414. For fiscal year 2007 and later, a qualifying district, 
7.12 	intermediate school district, school site, or charter school that received alternative teacher 
7.13 	compensation aid for the previous fiscal year must receive at least an amount of alternative 
7.14 	teacher compensation revenue equal to the lesser of the amount it received for the previous 
7.15 	fiscal year or the amount it qualifies for under subdivision 1 for the current fiscal year if 
7.16 	the district, intermediate school district, school site, or charter school submits a timely 
7.17 	application and the commissioner determines that the district, intermediate school district, 
7.18 	school site, or charter school continues to implement an alternative teacher professional 
7.19 	pay system, consistent with its application under this section.
7.20 	(b) The commissioner shall approve applications that comply with subdivision 1, 
7.21 	and section 122A.414, subdivisions 2, paragraph (b), and 2a, if the applicant is a charter 
7.22 	school, in the order in which they are received, select applicants that qualify for this 
7.23 	program, notify school districts, intermediate school districts, school sites, and charter 
7.24 	schools about the program, develop and disseminate application materials, and carry out 
7.25 	other activities needed to implement this section.
7.26 	(c) For applications approved under this section before August 1 of the fiscal year for 
7.27 	which the aid is paid, the portion of the state total basic alternative teacher compensation 
7.28 	aid entitlement allocated to charter schools must not exceed $522,000 for fiscal year 
7.29 	2006 and $3,374,000 for fiscal year 2007. For fiscal year 2008 and later, the portion of 
7.30 	the state total basic alternative teacher compensation aid entitlement allocated to charter 
7.31 	schools must not exceed the product of $3,374,000 times the ratio of the state total charter 
7.32 	school enrollment for the previous fiscal year to the state total charter school enrollment 
7.33 	for the second previous year. Additional basic alternative teacher compensation aid may 
7.34 	be approved for charter schools after August 1, not to exceed the charter school limit for 
7.35 	the following fiscal year, if the basic alternative teacher compensation aid entitlement 
8.1 	for school districts based on applications approved by August 1 does not expend the 
8.2 	remaining amount under the limit.

8.3 	EFFECTIVE DATE. This section is effective for fiscal year 2011 and later.

8.4 	Sec. 11. Minnesota Statutes 2008, section 123B.75, subdivision 5, is amended to read:
8.5 		Subd. 5.Levy recognition. (a) "School district tax settlement revenue" means the 
8.6 	current, delinquent, and manufactured home property tax receipts collected by the county 
8.7 	and distributed to the school district.
8.8 	(b) For fiscal year 2004 and later years, in June of each year In June of 2009, the 
8.9 	school district must recognize as revenue, in the fund for which the levy was made, the 
8.10 	lesser of:
8.11 	(1) the sum of May, June, and July school district tax settlement revenue received in 
8.12 	that calendar year, plus general education aid according to section 126C.13, subdivision 
8.13 	4, received in July and August of that calendar year; or
8.14 	(2) the sum of:
8.15 	(i) 31 percent of the referendum levy certified according to section 126C.17, in 
8.16 	calendar year 2000; and
8.17 	(ii) the entire amount of the levy certified in the prior calendar year according to 
8.18 	section 124D.86, subdivision 4, for school districts receiving revenue under sections 
8.19 	124D.86, subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, and 3, 
8.20 	paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48, subdivision 
8.21 	6.
8.22 	(c) For fiscal year 2010 and later years, in June of each year, the school district must 
8.23 	recognize as revenue, in the fund for which the levy was made, the lesser of:
8.24 	(1) the sum of May, June, and July school district tax settlement revenue received in 
8.25 	that calendar year, plus general education aid according to section 126C.13, subdivision 
8.26 	4, received in July and August of that calendar year; or
8.27 	(2) the sum of:
8.28 	(i) the greater of 48.6 percent of the referendum levy certified according to section 
8.29 	126C.17, in the prior calendar year or 31 percent of the referendum levy certified 
8.30 	according to section 126C.17, in calendar year 2000; plus
8.31 	(ii) the entire amount of the levy certified in the prior calendar year according to 
8.32 	section 124D.86, subdivision 4, for school districts receiving revenue under sections 
8.33 	124D.86, subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, and 3, 
8.34 	paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48, subdivision 
8.35 	6; plus
9.1 	(iii) 48.6 percent of the amount of the levy certified in the prior calendar year for the 
9.2 	school district's general and community service funds, plus or minus auditor's adjustments, 
9.3 	not including the levy portions that are assumed by the state, that remains after subtracting 
9.4 	the referendum levy certified according to section 126C.17 and the amount recognized 
9.5 	according to clause (ii).

9.6 	Sec. 12. Minnesota Statutes 2008, section 124D.10, subdivision 13, is amended to read:
9.7 		Subd. 13.Length of school year. A charter school must provide instruction each 
9.8 	year for at least the number of days hours required by section 120A.41. It may provide 
9.9 	instruction throughout the year according to sections 124D.12 to 124D.127 or 124D.128. 

9.10 	Sec. 13. Minnesota Statutes 2008, section 124D.11, subdivision 1, is amended to read:
9.11 		Subdivision 1.General education revenue. (a) General education revenue must 
9.12 	be paid to a charter school as though it were a district. The general education revenue 
9.13 	for each adjusted marginal cost pupil unit is the state average general education revenue 
9.14 	per pupil unit, plus the referendum equalization aid allowance in the pupil's district of 
9.15 	residence, minus an amount equal to the product of the formula allowance according to 
9.16 	section 126C.10, subdivision 2, times .0485, calculated without basic skills revenue, 
9.17 	extended time revenue, alternative teacher compensation revenue, transition revenue, 
9.18 	pay for progress revenue, and transportation sparsity revenue, plus basic skills revenue, 
9.19 	extended time revenue, basic alternative teacher compensation aid according to section 
9.20 	126C.10, subdivision 34, pay for progress revenue, and transition revenue as though the 
9.21 	school were a school district. The general education revenue for each extended time 
9.22 	marginal cost pupil unit equals $4,378.
9.23 	(b) Notwithstanding paragraph (a), for charter schools in the first year of operation, 
9.24 	general education revenue shall be computed using the number of adjusted pupil units 
9.25 	in the current fiscal year.

9.26 	Sec. 14. Minnesota Statutes 2008, section 125A.11, subdivision 1, is amended to read:
9.27 		Subdivision 1.Nonresident tuition rate; other costs. (a) For fiscal year 2006, 
9.28 	when a school district provides instruction and services outside the district of residence, 
9.29 	board and lodging, and any tuition to be paid, shall be paid by the district of residence. 
9.30 	The tuition rate to be charged for any child with a disability, excluding a pupil for whom 
9.31 	tuition is calculated according to section 127A.47, subdivision 7, paragraph (d), must be 
9.32 	the sum of (1) the actual cost of providing special instruction and services to the child 
9.33 	including a proportionate amount for special transportation and unreimbursed building 
10.1 	lease and debt service costs for facilities used primarily for special education, plus (2) 
10.2 	the amount of general education revenue and referendum aid attributable to the pupil, 
10.3 	minus (3) the amount of special education aid for children with a disability received 
10.4 	on behalf of that child, minus (4) if the pupil receives special instruction and services 
10.5 	outside the regular classroom for more than 60 percent of the school day, the amount of 
10.6 	general education revenue and referendum aid, excluding portions attributable to district 
10.7 	and school administration, district support services, operations and maintenance, capital 
10.8 	expenditures, and pupil transportation, attributable to that pupil for the portion of time 
10.9 	the pupil receives special instruction and services outside of the regular classroom. If 
10.10 	the boards involved do not agree upon the tuition rate, either board may apply to the 
10.11 	commissioner to fix the rate. Notwithstanding chapter 14, the commissioner must then set 
10.12 	a date for a hearing or request a written statement from each board, giving each board 
10.13 	at least ten days' notice, and after the hearing or review of the written statements the 
10.14 	commissioner must make an order fixing the tuition rate, which is binding on both school 
10.15 	districts. General education revenue and referendum equalization aid attributable to a 
10.16 	pupil must be calculated using the resident district's average general education revenue 
10.17 	and referendum equalization aid per adjusted pupil unit.
10.18 	(b) For fiscal year 2007 and later, when a school district provides special instruction 
10.19 	and services for a pupil with a disability as defined in section 125A.02 outside the district 
10.20 	of residence, excluding a pupil for whom an adjustment to special education aid is 
10.21 	calculated according to section 127A.47, subdivision 7, paragraph (e), special education 
10.22 	aid paid to the resident district must be reduced by an amount equal to (1) the actual 
10.23 	cost of providing special instruction and services to the pupil, including a proportionate 
10.24 	amount for special transportation and unreimbursed building lease and debt service costs 
10.25 	for facilities used primarily for special education, plus (2) the amount of general education 
10.26 	revenue and referendum equalization aid attributable to that pupil, calculated using the 
10.27 	resident district's average general education revenue and referendum equalization aid 
10.28 	per adjusted pupil unit excluding basic skills revenue, elementary sparsity revenue and 
10.29 	secondary sparsity revenue, minus (3) the amount of special education aid for children 
10.30 	with a disability received on behalf of that child, minus (4) if the pupil receives special 
10.31 	instruction and services outside the regular classroom for more than 60 percent of the 
10.32 	school day, the amount of general education revenue and referendum equalization aid, 
10.33 	excluding portions attributable to district and school administration, district support 
10.34 	services, operations and maintenance, capital expenditures, and pupil transportation, 
10.35 	attributable to that pupil for the portion of time the pupil receives special instruction 
10.36 	and services outside of the regular classroom, calculated using the resident district's 
11.1 	average general education revenue and referendum equalization aid per adjusted pupil 
11.2 	unit excluding basic skills revenue, elementary sparsity revenue and secondary sparsity 
11.3 	revenue and the serving district's basic skills revenue, elementary sparsity revenue and 
11.4 	secondary sparsity revenue per adjusted pupil unit. Notwithstanding clauses (1) and 
11.5 	(4), for pupils served by a cooperative unit without a fiscal agent school district, the 
11.6 	general education revenue and referendum equalization aid attributable to a pupil must be 
11.7 	calculated using the resident district's average general education revenue and referendum 
11.8 	equalization aid excluding elementary sparsity revenue and secondary sparsity revenue. 
11.9 	Special education aid paid to the district or cooperative providing special instruction and 
11.10 	services for the pupil must be increased by the amount of the reduction in the aid paid 
11.11 	to the resident district. Amounts paid to cooperatives under this subdivision and section 
11.12 	127A.47, subdivision 7, shall be recognized and reported as revenues and expenditures on 
11.13 	the resident school district's books of account under sections 123B.75 and 123B.76. If 
11.14 	the resident district's special education aid is insufficient to make the full adjustment, the 
11.15 	remaining adjustment shall be made to other state aid due to the district.
11.16 	(c) Notwithstanding paragraphs (a) and (b) and section 127A.47, subdivision 7, 
11.17 	paragraphs (d) and (e), a charter school where more than 30 percent of enrolled students 
11.18 	receive special education and related services, a  site approved under section 125A.515, 
11.19 	an intermediate district, a special education cooperative, or a school district that served 
11.20 	as the applicant agency for a group of school districts for federal special education aids 
11.21 	for fiscal year 2006 may apply to the commissioner for authority to charge the resident 
11.22 	district an additional amount to recover any remaining unreimbursed costs of serving 
11.23 	pupils with a disability. The application must include a description of the costs and the 
11.24 	calculations used to determine the unreimbursed portion to be charged to the resident 
11.25 	district. Amounts approved by the commissioner under this paragraph must be included 
11.26 	in the tuition billings or aid adjustments under paragraph (a) or (b), or section 127A.47, 
11.27 	subdivision 7, paragraph (d) or (e), as applicable.
11.28 	(d) For purposes of this subdivision and section 127A.47, subdivision 7, paragraphs 
11.29 	(d) and (e), "general education revenue and referendum equalization aid" means the 
11.30 	sum of the general education revenue according to section 126C.10, subdivision 1, 
11.31 	excluding alternative teacher compensation revenue and pay for progress revenue, plus 
11.32 	the referendum equalization aid according to section 126C.17, subdivision 7, as adjusted 
11.33 	according to section 127A.47, subdivision 7, paragraphs (a) to (c).

11.34 	Sec. 15. Minnesota Statutes 2008, section 125A.76, subdivision 2, is amended to read:
12.1 		Subd. 2.Special education initial aid. The special education initial aid equals the 
12.2 	sum of the following amounts computed using current year data:
12.3 	(1) 68 percent of the salary of each essential person employed in the district's 
12.4 	program for children with a disability during the fiscal year, whether the person is 
12.5 	employed by one or more districts or a Minnesota correctional facility operating on a 
12.6 	fee-for-service basis;
12.7 	(2) for the Minnesota State Academy for the Deaf or the Minnesota State Academy 
12.8 	for the Blind, 68 percent of the salary of each one to one instructional and behavior 
12.9 	management aide assigned to a child attending the academy, if the aides are required 
12.10 	by the child's individual education plan;
12.11 	(3) for special instruction and services provided to any pupil by contracting with 
12.12 	public, private, or voluntary agencies other than school districts, in place of special 
12.13 	instruction and services provided by the district, 52 percent of the difference between 
12.14 	the amount of the contract and the general education revenue, excluding basic skills 
12.15 	revenue, pay for progress revenue and alternative teacher compensation revenue, and 
12.16 	referendum equalization aid attributable to a pupil, calculated using the resident district's 
12.17 	average general education revenue and referendum equalization aid per adjusted pupil 
12.18 	unit for the fraction of the school day the pupil receives services under the contract. This 
12.19 	includes children who are residents of the state, receive services under this subdivision 
12.20 	and subdivision 1, and are placed in a care and treatment facility by court action in a state 
12.21 	that does not have a reciprocity agreement with the commissioner under section 125A.155
12.22 	as provided for in section 125A.79, subdivision 8;
12.23 	(4) for special instruction and services provided to any pupil by contracting for 
12.24 	services with public, private, or voluntary agencies other than school districts, that are 
12.25 	supplementary to a full educational program provided by the school district, 52 percent of 
12.26 	the amount of the contract for that pupil;
12.27 	(5) for supplies and equipment purchased or rented for use in the instruction of 
12.28 	children with a disability, an amount equal to 47 percent of the sum actually expended by 
12.29 	the district, or a Minnesota correctional facility operating on a fee-for-service basis, but 
12.30 	not to exceed an average of $47 in any one school year for each child with a disability 
12.31 	receiving instruction;
12.32 	(6) for fiscal years 1997 and later, special education base revenue shall include 
12.33 	amounts under clauses (1) to (5) for special education summer programs provided during 
12.34 	the base year for that fiscal year;
12.35 	(7) the cost of providing transportation services for children with disabilities under 
12.36 	section 123B.92, subdivision 1, paragraph (b), clause (4); and
13.1 	(8) the district's transition-disabled program initial aid according to section 
13.2 	124D.454, subdivision 3.
13.3 	The department shall establish procedures through the uniform financial accounting 
13.4 	and reporting system to identify and track all revenues generated from third-party billings 
13.5 	as special education revenue at the school district level; include revenue generated from 
13.6 	third-party billings as special education revenue in the annual cross-subsidy report; and 
13.7 	exclude third-party revenue from calculation of excess cost aid to the districts.

13.8 	Sec. 16. Minnesota Statutes 2008, section 125A.79, subdivision 1, is amended to read:
13.9 		Subdivision 1.Definitions. For the purposes of this section, the definitions in this 
13.10 	subdivision apply.
13.11 	(a) "Unreimbursed special education cost" means the sum of the following:
13.12 	(1) expenditures for teachers' salaries, contracted services, supplies, equipment, and 
13.13 	transportation services eligible for revenue under section 125A.76; plus
13.14 	(2) expenditures for tuition bills received under sections 125A.03 to 125A.24 and 
13.15 	125A.65 for services eligible for revenue under section 125A.76, subdivision 2; minus
13.16 	(3) revenue for teachers' salaries, contracted services, supplies, equipment, and 
13.17 	transportation services under section 125A.76; minus
13.18 	(4) tuition receipts under sections 125A.03 to 125A.24 and 125A.65 for services 
13.19 	eligible for revenue under section 125A.76, subdivision 2.
13.20 	(b) "General revenue" means the sum of the general education revenue according 
13.21 	to section 126C.10, subdivision 1, excluding alternative teacher compensation revenue
13.22 	and pay for progress revenue, plus the total qualifying referendum revenue specified in 
13.23 	paragraph (e) minus transportation sparsity revenue minus total operating capital revenue.
13.24 	(c) "Average daily membership" has the meaning given it in section 126C.05.
13.25 	(d) "Program growth factor" means 1.02 for fiscal year 2012 and later.
13.26 	(e) "Total qualifying referendum revenue" means two-thirds of the district's total 
13.27 	referendum revenue as adjusted according to section 127A.47, subdivision 7, paragraphs 
13.28 	(a) to (c), for fiscal year 2006, one-third of the district's total referendum revenue for fiscal 
13.29 	year 2007, and none of the district's total referendum revenue for fiscal year 2008 and later.

13.30 	Sec. 17. Minnesota Statutes 2008, section 125A.79, subdivision 8, is amended to read:
13.31 		Subd. 8.Out-of-state tuition. For children who are residents of the state, receive 
13.32 	services under section 125A.76, subdivisions 1 and 2, and are placed in a care and 
13.33 	treatment facility by court action in a state that does not have a reciprocity agreement with 
13.34 	the commissioner under section 125A.155, the resident school district shall submit the 
14.1 	balance of the tuition bills, minus the general education revenue, excluding basic skills 
14.2 	revenue and, alternative teacher compensation revenue and pay for progress revenue, and 
14.3 	referendum equalization aid attributable to the pupil, calculated using the resident district's 
14.4 	average general education revenue and referendum equalization aid per adjusted pupil unit 
14.5 	minus the special education contracted services initial revenue attributable to the pupil. 

14.6 	Sec. 18. Minnesota Statutes 2008, section 126C.10, subdivision 1, is amended to read:
14.7 		Subdivision 1.General education revenue. For fiscal year 2006 and later,
14.8 	The general education revenue for each district equals the sum of the district's basic 
14.9 	revenue, extended time revenue, gifted and talented revenue, basic skills revenue, training 
14.10 	and experience revenue, secondary sparsity revenue, elementary sparsity revenue, 
14.11 	transportation sparsity revenue, total operating capital revenue, equity revenue, alternative 
14.12 	teacher compensation revenue, pay for progress revenue, and transition revenue.

14.13 	Sec. 19. Minnesota Statutes 2008, section 126C.10, subdivision 2a, is amended to read:
14.14 		Subd. 2a.Extended time revenue. (a) A school district's The extended time 
14.15 	revenue is equal to for a school district with extended time average daily membership in 
14.16 	the current fiscal year equals the product of $4,601 and the sum of the adjusted marginal 
14.17 	cost pupil units of the district for each pupil in average daily membership in excess of 1.0 
14.18 	and less than 1.2 according to section 126C.05, subdivision 8. 
14.19 	(b) A school district's extended time revenue may be used for extended day 
14.20 	programs, extended week programs, summer school, and other programming authorized 
14.21 	under the learning year program.

14.22 	Sec. 20. Minnesota Statutes 2008, section 126C.10, subdivision 34, is amended to read:
14.23 		Subd. 34.Basic alternative teacher compensation aid. (a) For fiscal years 2007 
14.24 	and later, the basic alternative teacher compensation aid for a school district with a plan 
14.25 	approved under section 122A.414, subdivision 2b, equals 65 percent of the alternative 
14.26 	teacher compensation revenue under section 122A.415, subdivision 1. The basic 
14.27 	alternative teacher compensation aid for an intermediate school district or charter school 
14.28 	with a plan approved under section 122A.414, subdivisions 2a and 2b, if the recipient is a 
14.29 	charter school, equals $260 $300 times the number of pupils enrolled in the school on 
14.30 	October 1 of the previous fiscal year, or on October 1 of the current fiscal year for a charter 
14.31 	school in the first year of operation, times the ratio of the sum of the alternative teacher 
14.32 	compensation aid and alternative teacher compensation levy for all participating school 
15.1 	districts to the maximum alternative teacher compensation revenue for those districts 
15.2 	under section 122A.415, subdivision 1.
15.3 	(b) Notwithstanding paragraphs (a) and (b) and section 122A.415, subdivision 1, 
15.4 	the state total basic alternative teacher compensation aid entitlement must not exceed 
15.5 	$75,636,000 for fiscal year 2007 and later. The commissioner must limit the amount 
15.6 	of alternative teacher compensation aid approved under section 122A.415 so as not to 
15.7 	exceed these limits.

15.8 	EFFECTIVE DATE. This section is effective for fiscal year 2011 and later.

15.9 	Sec. 21. Minnesota Statutes 2008, section 126C.10, is amended by adding a 
15.10 	subdivision to read:
15.11 		Subd. 37.Pay for progress revenue. For fiscal year 2010 and later, school 
15.12 	districts and charter schools participating in the student growth model established by the 
15.13 	commissioner of education are eligible to receive additional general education revenue 
15.14 	equal to the sum of one percent of the formula allowance times the percent of students 
15.15 	with growth measurement scores who achieved medium growth plus two percent of 
15.16 	the formula allowance times the percent of students with growth measurement scores 
15.17 	who achieved high growth. Growth measurement scores are calculated based on the 
15.18 	assessments defined in section 120B.362.

15.19 	Sec. 22. [127A.431] REDUCTION OF AID FOR NOT PROVIDING REQUIRED 
15.20 	HOURS OF INSTRUCTION.
15.21 	The commissioner shall reduce the state aid paid to a school district or charter 
15.22 	school that does not provide instruction for at least the number of hours required under 
15.23 	section 120A.41. If instruction is not provided for the required number of hours, state aid 
15.24 	shall be reduced by the ratio that the difference between the required number of hours 
15.25 	and the number of hours instruction is provided bears to the required number of hours, 
15.26 	multiplied by 60 percent of the basic revenue, as defined in section 126C.10, subdivision 
15.27 	2, of the district or charter school for that year. However, a district or charter school not 
15.28 	providing the required number of hours may appeal to the commissioner for a waiver of 
15.29 	the state aid reduction if (1) the circumstances causing loss of instructional time below the 
15.30 	required minimum number of hours are beyond the control of the board, and (2) a good 
15.31 	faith attempt is made to make up time lost due to these circumstances.

16.1 	Sec. 23. Minnesota Statutes 2008, section 127A.441, is amended to read:
16.2 	127A.441 AID REDUCTION; LEVY REVENUE RECOGNITION CHANGE.
16.3 	Each year, the state aids payable to any school district for that fiscal year that are 
16.4 	recognized as revenue in the school district's general and community service funds shall 
16.5 	be adjusted by an amount equal to (1) the amount the district recognized as revenue for the 
16.6 	prior fiscal year pursuant to section 123B.75, subdivision 5, paragraph (b) or (c), minus (2) 
16.7 	the amount the district recognized as revenue for the current fiscal year pursuant to section 
16.8 	123B.75, subdivision 5, paragraph (b) or (c). For purposes of making the aid adjustments 
16.9 	under this section, the amount the district recognizes as revenue for either the prior fiscal 
16.10 	year or the current fiscal year pursuant to section 123B.75, subdivision 5, paragraph (b), 
16.11 	shall not include any amount levied pursuant to section 124D.86, subdivision 4, for school 
16.12 	districts receiving revenue under sections 124D.86, subdivision 3, clauses (1), (2), and (3); 
16.13 	126C.41, subdivisions 1, 2, and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; 
16.14 	126C.457; and 126C.48, subdivision 6. Payment from the permanent school fund shall not 
16.15 	be adjusted pursuant to this section. The school district shall be notified of the amount of 
16.16 	the adjustment made to each payment pursuant to this section. 

16.17 	Sec. 24. Minnesota Statutes 2008, section 127A.45, subdivision 2, is amended to read:
16.18 		Subd. 2.Definitions. (a) The term "Other district receipts" means payments by 
16.19 	county treasurers pursuant to section 276.10, apportionments from the school endowment 
16.20 	fund pursuant to section 127A.33, apportionments by the county auditor pursuant to 
16.21 	section 127A.34, subdivision 2, and payments to school districts by the commissioner of 
16.22 	revenue pursuant to chapter 298.
16.23 	(b) The term "Cumulative amount guaranteed" means the product of
16.24 	(1) the cumulative disbursement percentage shown in subdivision 3; times
16.25 	(2) the sum of
16.26 	(i) the current year aid payment percentage of the estimated aid and credit 
16.27 	entitlements paid according to subdivision 13; plus
16.28 	(ii) 100 percent of the entitlements paid according to subdivisions 11 and 12; plus
16.29 	(iii) the other district receipts.
16.30 	(c) The term "Payment date" means the date on which state payments to districts 
16.31 	are made by the electronic funds transfer method. If a payment date falls on a Saturday, 
16.32 	a Sunday, or a weekday which is a legal holiday, the payment shall be made on the 
16.33 	immediately preceding business day. The commissioner may make payments on dates 
16.34 	other than those listed in subdivision 3, but only for portions of payments from any 
17.1 	preceding payment dates which could not be processed by the electronic funds transfer 
17.2 	method due to documented extenuating circumstances.
17.3 	(d) The current year aid payment percentage equals 90 80.

17.4 	Sec. 25. Minnesota Statutes 2008, section 127A.45, subdivision 3, is amended to read:
17.5 		Subd. 3.Payment dates and percentages. (a) For fiscal year 2004 and later, 
17.6 	the commissioner shall pay to a district on the dates indicated an amount computed as 
17.7 	follows: the cumulative amount guaranteed minus the sum of (a) the district's other district 
17.8 	receipts through the current payment, and (b) the aid and credit payments through the 
17.9 	immediately preceding payment. For purposes of this computation, the payment dates and 
17.10 	the cumulative disbursement percentages are as follows:

17.11		Payment date
	Percentage
	
17.12	Payment 1
	July 15:
	5.5
	
17.13	Payment 2
	July 30:
	8.0
	
17.14	Payment 3
	August 15:
	17.5
	
17.15	Payment 4
	August 30:
	20.0
	
17.16	Payment 5
	September 15:
	22.5
	
17.17	Payment 6
	September 30:
	25.0
	
17.18	Payment 7
	October 15:
	27.0
	
17.19	Payment 8
	October 30:
	30.0
	
17.20	Payment 9
	November 15:
	32.5
	
17.21	Payment 10
	November 30:
	36.5
	
17.22	Payment 11
	December 15:
	42.0
	
17.23	Payment 12
	December 30:
	45.0
	
17.24	Payment 13
	January 15:
	50.0
	
17.25	Payment 14
	January 30:
	54.0
	
17.26	Payment 15
	February 15:
	58.0
	
17.27	Payment 16
	February 28:
	63.0
	
17.28	Payment 17
	March 15:
	68.0
	
17.29	Payment 18
	March 30:
	74.0
	
17.30	Payment 19
	April 15:
	78.0
	
17.31	Payment 20
	April 30:
	85.0
	
17.32	Payment 21
	May 15:
	90.0
	
17.33	Payment 22
	May 30:
	95.0
	
17.34	Payment 23
	June 20:
	100.0
	
17.35 	(b) In addition to the amounts paid under paragraph (a), for fiscal year 2004, the 
17.36 	commissioner shall pay to a district on the dates indicated an amount computed as follows:

17.37
17.38	Payment 3
	August 15: the final adjustment for the prior fiscal year for the state paid 
property tax credits established in section 273.1392
	
17.39
17.40	Payment 4
	August 30: one-third of the final adjustment for the prior fiscal year for 
all aid entitlements except state paid property tax credits
	
18.1
18.2	Payment 6
	September 30: one-third of the final adjustment for the prior fiscal year 
for all aid entitlements except state paid property tax credits
	
18.3
18.4	Payment 8
	October 30: one-third of the final adjustment for the prior fiscal year for 
all aid entitlements except state paid property tax credits
	
18.5 	(c) In addition to the amounts paid under paragraph (a), for fiscal year 2005 and 
18.6 	later, the commissioner shall pay to a district on the dates indicated an amount computed 
18.7 	as follows:

18.8
18.9	Payment 3
	August 15: the final adjustment for the prior fiscal year for the state paid 
property tax credits established in section 273.1392
	
18.10
18.11	Payment 4
	August 30: 30 percent of the final adjustment for the prior fiscal year for 
all aid entitlements except state paid property tax credits
	
18.12
18.13	Payment 6
	September 30: 40 percent of the final adjustment for the prior fiscal year 
for all aid entitlements except state paid property tax credits
	
18.14
18.15	Payment 8
	October 30: 30 percent of the final adjustment for the prior fiscal year 
for all aid entitlements except state paid property tax credits

18.16 	Sec. 26. Minnesota Statutes 2008, section 127A.45, is amended by adding a 
18.17 	subdivision to read:
18.18 		Subd. 7b.Advance final payment. (a) Notwithstanding subdivisions 3 and 7, 
18.19 	a school district or charter school exceeding its expenditure limitations under section 
18.20 	123B.83 as of June 30 of the prior fiscal year may receive a portion of its final payment 
18.21 	for the current fiscal year on June 20, if requested by the district or charter school. The 
18.22 	amount paid under this subdivision must not exceed the lesser of:
18.23 	(1) the difference between 90 percent and the current year payment percentage in 
18.24 	subdivision 2, paragraph (d), in the current fiscal year times the sum of the district or 
18.25 	charter school's general education aid plus the aid adjustment in section 127A.50 for 
18.26 	the current fiscal year; or
18.27 	(2) the amount by which the district's or charter school's net negative unreserved 
18.28 	general fund balance as of June 30 of the prior fiscal year exceeds 2.5 percent of the 
18.29 	district or charter school's expenditures for that fiscal year.
18.30 	(b) The state total advance final payment under this subdivision for any year must 
18.31 	not exceed $7,500,000. If the amount request exceeds $7,500,000, the advance final 
18.32 	payment for each eligible district must be reduced proportionately.

18.33 	Sec. 27. Minnesota Statutes 2008, section 127A.45, subdivision 13, is amended to read:
18.34 		Subd. 13.Aid payment percentage. Except as provided in subdivisions 11, 12, 12a, 
18.35 	and 14, each fiscal year, all education aids and credits in this chapter and chapters 120A, 
18.36 	120B, 121A, 122A, 123A, 123B, 124D, 125A, 125B, 126C, 134, and section 273.1392, 
19.1 	shall be paid at the current year aid payment percentage of the estimated entitlement during 
19.2 	the fiscal year of the entitlement. For the purposes of this subdivision, a district's estimated 
19.3 	entitlement for special education excess cost aid under section 125A.79 for fiscal year 
19.4 	2005 equals 70 percent of the district's entitlement for the second prior fiscal year. For the 
19.5 	purposes of this subdivision, a district's estimated entitlement for special education excess 
19.6 	cost aid under section 125A.79 for fiscal year 2006 and later equals 74.0 percent of the 
19.7 	district's entitlement for the current fiscal year. The final adjustment payment, according 
19.8 	to subdivision 9, must be the amount of the actual entitlement, after adjustment for actual 
19.9 	data, minus the payments made during the fiscal year of the entitlement.

19.10 	Sec. 28. APPROPRIATIONS.
 19.11 		Subdivision 1.Department of Education. The sums indicated in this section are 
19.12 	appropriated from the general fund to the Department of Education for the fiscal years 
19.13 	designated.
19.14 		Subd. 2.General education aid. For general education aid under Minnesota 
19.15 	Statutes, section 126C.13, subdivision 4:

19.16		$
	4,560,949,000
	.....
	2010
	
19.17		$
	5,735,602,000
	.....
	2011
	
19.18 	The 2010 appropriation includes $556,059,000 for 2009 and $4,004,890,000 for 
19.19 	2010.
19.20 	The 2011 appropriation includes $1,121,845,000 for 2010 and $4,613,757,000 
19.21 	for 2011.
19.22 		Subd. 3.Enrollment options transportation. For transportation of pupils attending 
19.23 	postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation 
19.24 	of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

19.25		$
	48,000
	.....
	2010
	
19.26		$
	52,000
	.....
	2011
	
19.27 		Subd. 4.Abatement revenue. For abatement aid under Minnesota Statutes, section 
19.28 	127A.49:

19.29		$
	1,052,000
	.....
	2010
	
19.30		$
	1,039,000
	.....
	2011
	
19.31 	The 2010 appropriation includes $140,000 for 2009 and $912,000 for 2010.
19.32 	The 2011 appropriation includes $228,000 for 2010 and $811,000 for 2011.
20.1 		Subd. 5.Consolidation transition. For districts consolidating under Minnesota 
20.2 	Statutes, section 123A.485:

20.3		$
	270,000
	.....
	2010
	
20.4		$
	677,000
	.....
	2011
	
20.5 	The 2010 appropriation includes $0 for 2009 and $270,000 for 2010.
20.6 	The 2011 appropriation includes $67,000 for 2010 and $610,000 for 2011.
20.7 		Subd. 6.Nonpublic pupil education aid. For nonpublic pupil education aid under 
20.8 	Minnesota Statutes, sections 123B.87 and 123B.40 to 123B.43:

20.9		$
	15,390,000
	.....
	2010
	
20.10		$
	17,575,000
	.....
	2011
	
20.11 	The 2010 appropriation includes $1,667,000 for 2009 and $13,723,000 for 2010.
20.12 	The 2011 appropriation includes $3,430,000 for 2010 and $14,145,000 for 2011.
20.13 		Subd. 7.Nonpublic pupil transportation. For nonpublic pupil transportation aid 
20.14 	under Minnesota Statutes, section 123B.92, subdivision 9:

20.15		$
	19,109,000
	.....
	2010
	
20.16		$
	21,424,000
	.....
	2011
	
20.17 	The 2010 appropriation includes $2,117,000 for 2009 and $16,992,000 for 2010.
20.18 	The 2011 appropriation includes $4,248,000 for 2010 and $17,176,000 for 2011.
20.19 		Subd. 8.One-room schoolhouse. For a grant to Independent School District No. 
20.20 	690, Warroad, to operate the Angle Inlet School:

20.21		$
	65,000
	.....
	2010
	
20.22		$
	65,000
	.....
	2011
	
20.23 		Subd. 9.Independent School District No. 239, Rushford-Peterson. For school 
20.24 	district flood enrollment impact aid as a result of the floods of August 2007:

20.25		$
	158,000
	.....
	2010
	
20.26 	The base appropriation for later fiscal years is zero.
20.27 	The district must provide to the commissioner of education documentation of 
20.28 	the additional pupil transportation costs and the number of pupils in average daily 
20.29 	membership lost as a result of the flood.
20.30 		Subd. 10.Lancaster. For a grant to Independent School District No. 356, Lancaster, 
20.31 	to replace the loss of sparsity revenue:

20.32		$
	100,000
	.....
	2010
	
20.33		$
	100,000
	.....
	2011
	
21.1 	The base appropriation for later fiscal years is zero.
21.2 		Subd. 11.Compensatory revenue pilot project. For grants for participation in the 
21.3 	compensatory revenue pilot program under Laws 2005, First Special Session chapter 5, 
21.4 	article 1, section 50:

21.5		$
	2,175,000
	.....
	2010
	
21.6		$
	2,175,000
	.....
	2011
	
21.7 	Of this amount, $1,500,000 in each year is for a grant to Independent School District 
21.8 	No. 11, Anoka-Hennepin; $210,000 in each year is for a grant to Independent School 
21.9 	District No. 279, Osseo; $160,000 in each year is for a grant to Independent School 
21.10 	District No. 281, Robbinsdale; $75,000 in each year is for a grant to Independent School 
21.11 	District No. 286, Brooklyn Center; $165,000 in each year is for a grant to Independent 
21.12 	School District No. 535, Rochester; and $65,000 in each year is for a grant to Independent 
21.13 	School District No. 833, South Washington.
21.14 	If a grant to a specific school district is not awarded, the commissioner may increase 
21.15 	the aid amounts to any of the remaining participating school districts.
21.16 	This appropriation is part of the base budget for subsequent fiscal years.

21.17 	Sec. 29.  REPEALER.
 21.18 	Minnesota Statutes 2008, sections 122A.414, subdivisions 1a and 4; and 123B.05,
21.19 	are repealed.

21.20 	ARTICLE 2
21.21 	EDUCATION EXCELLENCE

21.22 	Section 1. Minnesota Statutes 2008, section 120B.023, subdivision 2, is amended to 
21.23 	read:
21.24 		Subd. 2.Revisions and reviews required. (a) The commissioner of education must 
21.25 	revise and appropriately embed technology and information literacy standards consistent 
21.26 	with recommendations from school media specialists into the state's academic standards 
21.27 	and graduation requirements and implement a review cycle for state academic standards 
21.28 	and related benchmarks, consistent with this subdivision. During each review cycle, the 
21.29 	commissioner also must examine the alignment of each required academic standard and 
21.30 	related benchmark with the knowledge and skills students need for college readiness and 
21.31 	advanced work in the particular subject area.
21.32 	(b) The commissioner in the 2006-2007 school year must revise and align the state's 
21.33 	academic standards and high school graduation requirements in mathematics to require 
22.1 	that students satisfactorily complete the revised mathematics standards, beginning in the 
22.2 	2010-2011 school year. Under the revised standards:
22.3 	(1) students must satisfactorily complete an algebra I credit by the end of eighth 
22.4 	grade; and
22.5 	(2) students scheduled to graduate in the 2014-2015 school year or later must 
22.6 	satisfactorily complete an algebra II credit or its equivalent.
22.7 	The commissioner also must ensure that the statewide mathematics assessments 
22.8 	administered to students in grades 3 through 8 and 11 beginning in the 2010-2011 school 
22.9 	year are aligned with the 2007 state academic standards in mathematics. The statewide 
22.10 	high school mathematics test shall remain aligned to 2003 state academic standards in 
22.11 	mathematics through the 2012-2013 school year. Any statewide 11th grade high school
22.12 	mathematics test administered to students under clause (2) beginning in the 2013-2014 
22.13 	school year must include algebra II test items that are used for state-level student, school, 
22.14 	or district accountability must be aligned with corresponding 2007 state academic 
22.15 	standards in mathematics beginning in the 2013-2014 school year. The commissioner must 
22.16 	implement a review of the academic standards and related benchmarks in mathematics 
22.17 	beginning in the 2015-2016 school year.
22.18 	(c) The commissioner in the 2007-2008 school year must revise and align the state's 
22.19 	academic standards and high school graduation requirements in the arts to require that 
22.20 	students satisfactorily complete the revised arts standards beginning in the 2010-2011 
22.21 	school year. The commissioner must implement a review of the academic standards and 
22.22 	related benchmarks in arts beginning in the 2016-2017 school year.
22.23 	(d) The commissioner in the 2008-2009 school year must revise and align the state's 
22.24 	academic standards and high school graduation requirements in science to require that 
22.25 	students satisfactorily complete the revised science standards, beginning in the 2011-2012 
22.26 	school year. Under the revised standards, students scheduled to graduate in the 2014-2015 
22.27 	school year or later must satisfactorily complete a chemistry or physics credit. The 
22.28 	commissioner must implement a review of the academic standards and related benchmarks 
22.29 	in science beginning in the 2017-2018 school year.
22.30 	(e) The commissioner in the 2009-2010 school year must revise and align the state's 
22.31 	academic standards and high school graduation requirements in language arts to require 
22.32 	that students satisfactorily complete the revised language arts standards beginning in the 
22.33 	2012-2013 school year. The commissioner must implement a review of the academic 
22.34 	standards and related benchmarks in language arts beginning in the 2018-2019 school year.
22.35 	(f) The commissioner in the 2010-2011 school year must revise and align the state's 
22.36 	academic standards and high school graduation requirements in social studies to require 
23.1 	that students satisfactorily complete the revised social studies standards beginning in the 
23.2 	2013-2014 school year. The commissioner must implement a review of the academic 
23.3 	standards and related benchmarks in social studies beginning in the 2019-2020 school year.
23.4 	(g) School districts and charter schools must revise and align local academic 
23.5 	standards and high school graduation requirements in health, physical education, world 
23.6 	languages, and career and technical education to require students to complete the revised 
23.7 	standards beginning in a school year determined by the school district or charter school. 
23.8 	School districts and charter schools must formally establish a periodic review cycle for 
23.9 	the academic standards and related benchmarks in health, physical education, world 
23.10 	languages, and career and technical education.

23.11 	Sec. 2. Minnesota Statutes 2008, section 120B.024, is amended to read:
23.12 	120B.024 GRADUATION REQUIREMENTS; COURSE CREDITS.
23.13 	(a) Students beginning 9th grade in the 2004-2005 school year and later must 
23.14 	successfully complete the following high school level course credits for graduation:
23.15 	(1) four credits of language arts;
23.16 	(2) three credits of mathematics, encompassing at least algebra, geometry, statistics, 
23.17 	and probability sufficient to satisfy the academic standard;
23.18 	(3) three credits of science, including at least one credit in biology;
23.19 	(4) three and one-half credits of social studies, encompassing at least United 
23.20 	States history, geography, government and citizenship, world history, and economics or 
23.21 	three credits of social studies encompassing at least United States history, geography, 
23.22 	government and citizenship, and world history, and one-half credit of economics taught in 
23.23 	a school's social studies, agriculture education, or business department;
23.24 	(5) one credit in the arts; and
23.25 	(6) a minimum of seven elective course credits; and
23.26 	(7) a minimum of one online course or online learning experience as defined by the 
23.27 	commissioner of education that meets college and career-ready standards.
23.28 	A course credit is equivalent to a student successfully completing an academic 
23.29 	year of study or a student mastering the applicable subject matter, as determined by the 
23.30 	local school district.
23.31 	(b) An agriculture science course may fulfill a science credit requirement in addition 
23.32 	to the specified science credits in biology and chemistry or physics under paragraph (a), 
23.33 	clause (3).
24.1 	(c) A career and technical education course may fulfill a science, mathematics, or 
24.2 	arts credit requirement in addition to the specified science, mathematics, or arts credits 
24.3 	under paragraph (a), clause (2), (3), or (5).

24.4 	EFFECTIVE DATE. This section is effective for students entering ninth grade in 
24.5 	the 2009-2010 school year and later.

24.6 	Sec. 3. [120B.17] MINNESOTA VIRTUAL EDUCATION PROGRAM.
24.7 		Subdivision 1.Program. A state of Minnesota virtual education program is 
24.8 	established for teachers and students to improve and enhance teacher instruction and 
24.9 	student learning through integration of technology and online learning. The commissioner 
24.10 	of education shall establish the program and develop a selection of online courses for 
24.11 	students. The online student courses shall be established for grades 6 through 12.
24.12 		Subd. 2.Scope and requirements. (a) The student courses shall be developed by 
24.13 	department staff, content experts, licensed Minnesota teachers, licensed administrators, 
24.14 	and business representatives. The courses must be aligned to the Minnesota academic 
24.15 	standards established in Minnesota Rules, chapter 3501. The commissioner of education, 
24.16 	in working with qualified individuals, must establish at least ten student courses that 
24.17 	will be available to students and teachers no later than the 2010-2011 school year. The 
24.18 	commissioner must give priority in the development of courses to science, technology, 
24.19 	engineering, mathematics, and advanced courses. The courses available to students must 
24.20 	be monitored and delivered by licensed Minnesota teachers under section 122A.16.
24.21 	(b) School districts and charter schools participating in the program must:
24.22 	(1) submit a letter of intent to the commissioner of education;
24.23 	(2) allow students to participate in the program;
24.24 	(3) train teachers to monitor and deliver courses;
24.25 	(4) allow students to receive graduation credit, if appropriate, for successful 
24.26 	completion of the courses;
24.27 	(5) issue grades to students enrolled in the online courses; and
24.28 	(6) report progress to the department on student participation and completion rates.
24.29 		Subd. 3.Report. The commissioner of education must submit a report to the chairs 
24.30 	of the house of representatives and senate education committees by October 1, 2011, 
24.31 	assessing the progress and development of the program.

24.32 	Sec. 4. Minnesota Statutes 2008, section 120B.30, subdivision 1, is amended to read:
24.33 		Subdivision 1.Statewide testing. (a) The commissioner, with advice from experts 
24.34 	with appropriate technical qualifications and experience and stakeholders, consistent with 
25.1 	subdivision 1a, shall include in the comprehensive assessment system, for each grade 
25.2 	level to be tested, state-constructed tests developed from and aligned with the state's 
25.3 	required academic standards under section 120B.021 and administered annually to all 
25.4 	students in grades 3 through 8 and at the high school level in mathematics and reading. A 
25.5 	state-developed test in a subject other than writing, developed after the 2002-2003 school 
25.6 	year, must include both machine-scoreable multiple-choice and constructed response 
25.7 	questions. The commissioner shall establish one or more months during which schools 
25.8 	shall administer the tests to students each school year. 
25.9 	(b) The state assessment system must be aligned to the most recent revision of 
25.10 	academic standards as described in section 120B.023 in the following manner:
25.11 	(1) mathematics;
25.12 	(i) grades 3 through 8 beginning in the 2010-2011 school year; and
25.13 	(ii) high school level beginning in the 2013-2014 school year;
25.14 	(2) science; grades 5 and 8 and at the high school level beginning in the 2011-2012 
25.15 	school year; and
25.16 	(3) language arts and reading; grades 3 through 8 and high school level beginning in 
25.17 	the 2012-2013 school year.
25.18 	(c) For students enrolled in grade 8 before the 2005-2006 school year, only 
25.19 	Minnesota basic skills tests in reading, mathematics, and writing shall fulfill students' 
25.20 	basic skills testing requirements for a passing state notation. The passing scores of basic 
25.21 	skills tests in reading and mathematics are the equivalent of 75 percent correct for students 
25.22 	entering grade 9 in 1997 and thereafter, as based on the first uniform test administration 
25.23 	of February 1998.
25.24 	(b) (d) For students enrolled in grade 8 in the 2005-2006 school year and later, only 
25.25 	the following options shall fulfill students' state graduation test requirements:
25.26 	(1) for reading and mathematics:
25.27 	(i) obtaining an achievement level equivalent to or greater than proficient as 
25.28 	determined through a standard setting process on the Minnesota comprehensive 
25.29 	assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing 
25.30 	score as determined through a standard setting process on the graduation-required 
25.31 	assessment for diploma in grade 10 for reading and grade 11 for mathematics or 
25.32 	subsequent retests;
25.33 	(ii) achieving a passing score as determined through a standard setting process on the 
25.34 	state-identified language proficiency test in reading and the mathematics test for English 
25.35 	language learners or the graduation-required assessment for diploma equivalent of those 
25.36 	assessments for students designated as English language learners;
26.1 	(iii) achieving an individual passing score on the graduation-required assessment 
26.2 	for diploma as determined by appropriate state guidelines for students with an individual 
26.3 	education plan or 504 plan;
26.4 	(iv) obtaining achievement level equivalent to or greater than proficient as 
26.5 	determined through a standard setting process on the state-identified alternate assessment 
26.6 	or assessments in grade 10 for reading and grade 11 for mathematics for students with 
26.7 	an individual education plan; or
26.8 	(v) achieving an individual passing score on the state-identified alternate assessment 
26.9 	or assessments as determined by appropriate state guidelines for students with an 
26.10 	individual education plan; and
26.11 	(2) for writing:
26.12 	(i) achieving a passing score on the graduation-required assessment for diploma;
26.13 	(ii) achieving a passing score as determined through a standard setting process on 
26.14 	the state-identified language proficiency test in writing for students designated as English 
26.15 	language learners;
26.16 	(iii) achieving an individual passing score on the graduation-required assessment 
26.17 	for diploma as determined by appropriate state guidelines for students with an individual 
26.18 	education plan or 504 plan; or
26.19 	(iv) achieving an individual passing score on the state-identified alternate assessment 
26.20 	or assessments as determined by appropriate state guidelines for students with an 
26.21 	individual education plan.
26.22 	(c) (e) The 3rd through 8th grade and high school level test results shall be available 
26.23 	to districts for diagnostic purposes affecting student learning and district instruction and 
26.24 	curriculum, and for establishing educational accountability. The commissioner must 
26.25 	disseminate to the public the test results upon receiving those results.
26.26 	(d) (f) State tests must be constructed and aligned with state academic standards. The 
26.27 	testing process and the order of administration shall be determined by the commissioner. 
26.28 	The statewide results shall be aggregated at the site and district level, consistent with 
26.29 	subdivision 1a.
26.30 	(e) (g) In addition to the testing and reporting requirements under this section, the 
26.31 	commissioner shall include the following components in the statewide public reporting 
26.32 	system:
26.33 	(1) uniform statewide testing of all students in grades 3 through 8 and at the high 
26.34 	school level that provides appropriate, technically sound accommodations, or alternate 
26.35 	assessments, or exemptions consistent with applicable federal law, only with parent or 
26.36 	guardian approval, for those very few students for whom the student's individual education 
27.1 	plan team under sections 125A.05 and 125A.06 determines that the general statewide test 
27.2 	is inappropriate for a student, or for a limited English proficiency student under section 
27.3 	124D.59, subdivision 2;
27.4 	(2) educational indicators that can be aggregated and compared across school 
27.5 	districts and across time on a statewide basis, including average daily attendance, high 
27.6 	school graduation rates, and high school drop-out rates by age and grade level;
27.7 	(3) state results on the American College Test; and
27.8 	(4) state results from participation in the National Assessment of Educational 
27.9 	Progress so that the state can benchmark its performance against the nation and other 
27.10 	states, and, where possible, against other countries, and contribute to the national effort 
27.11 	to monitor achievement.

27.12 	Sec. 5. Minnesota Statutes 2008, section 120B.30, subdivision 1a, is amended to read:
27.13 		Subd. 1a.Statewide and local assessments; results. (a) The commissioner must 
27.14 	develop reading, mathematics, and science assessments aligned with state academic 
27.15 	standards that districts and sites must use to monitor student growth toward achieving 
27.16 	those standards. The commissioner must not develop statewide assessments for academic 
27.17 	standards in social studies, health and physical education, and the arts. The commissioner 
27.18 	must require:
27.19 	(1) annual reading and mathematics assessments in grades 3 through 8 and at the 
27.20 	high school level for the 2005-2006 school year and later; and
27.21 	(2) annual science assessments in one grade in the grades 3 through 5 span, the 
27.22 	grades 6 through 9 8 span, and a life sciences assessment in the grades 10 through 12 span
27.23 	any assessments at the high school level that must include a physical science, life science 
27.24 	and chemistry, or physics assessment for the 2007-2008 school year and later.
27.25 	(b) The commissioner must ensure that all statewide tests administered to elementary 
27.26 	and secondary students measure students' academic knowledge and skills and not students' 
27.27 	values, attitudes, and beliefs.
27.28 	(c) Reporting of assessment results must:
27.29 	(1) provide timely, useful, and understandable information on the performance of 
27.30 	individual students, schools, school districts, and the state;
27.31 	(2) include, by no later than the 2008-2009 school year, a value-added component 
27.32 	that is in addition to a measure for student achievement growth over time; and
27.33 	(3)(i) for students enrolled in grade 8 before the 2005-2006 school year, determine 
27.34 	whether students have met the state's basic skills requirements; and
28.1 	(ii) for students enrolled in grade 8 in the 2005-2006 school year and later, determine 
28.2 	whether students have met the state's academic standards.
28.3 	(d) Consistent with applicable federal law and subdivision 1, paragraph (d), clause 
28.4 	(1), the commissioner must include appropriate, technically sound accommodations or 
28.5 	alternative assessments for the very few students with disabilities for whom statewide 
28.6 	assessments are inappropriate and for students with limited English proficiency.
28.7 	(e) A school, school district, and charter school must administer statewide 
28.8 	assessments under this section, as the assessments become available, to evaluate student 
28.9 	progress in achieving the academic standards. If a state assessment is not available, a 
28.10 	school, school district, and charter school must determine locally if a student has met 
28.11 	the required academic standards. A school, school district, or charter school may use a 
28.12 	student's performance on a statewide assessment as one of multiple criteria to determine 
28.13 	grade promotion or retention. A school, school district, or charter school may use a high 
28.14 	school student's performance on a statewide assessment as a percentage of the student's 
28.15 	final grade in a course, or place a student's assessment score on the student's transcript
28.16 	except as required in paragraph (f).
28.17 	(f) A school, district, or charter school must place a student's assessment score for 
28.18 	the final high school census administration of the mathematics and reading Minnesota 
28.19 	Comprehensive Assessments and the writing Graduation-Required Assessment for 
28.20 	Diploma on the student's high school transcript.
28.21 	(g) Schools selected for stand-alone state field testing or other state or national 
28.22 	sampling by the department must participate as requested. Superintendents or charter 
28.23 	school directors may appeal in writing to the commissioner of education or the 
28.24 	commissioner's designee for exemption from a selected field test or national sampling if 
28.25 	undue hardship is demonstrated. The commissioner's decision regarding the appeal is final. 

28.26 	Sec. 6. Minnesota Statutes 2008, section 120B.30, subdivision 2, is amended to read:
28.27 		Subd. 2.Department of Education assistance. The Department of Education 
28.28 	shall contract for professional and technical services according to competitive bidding
28.29 	solicitation procedures under chapter 16C for purposes of this section.

28.30 	Sec. 7. Minnesota Statutes 2008, section 120B.362, is amended to read:
28.31 	120B.362 VALUE-ADDED ASSESSMENT PROGRAM.
28.32 	(a) The commissioner of education must implement a value-added assessment 
28.33 	program to assist school districts, public schools, and charter schools in assessing and 
29.1 	reporting individual students' growth in academic achievement under section 120B.30, 
29.2 	subdivision 1a. 
29.3 	(b) For the purposes of this section, "value-added" means a model that requires 
29.4 	longitudinal, student-level data and vertically scaled assessments to determine what 
29.5 	portion of a student's growth can be explained by inputs related to the education 
29.6 	environment, school, teacher, and student, among other inputs.
29.7 	(c) The program must use assessments of individual students' academic achievement 
29.8 	to make longitudinal comparisons of each student's academic growth over time. School 
29.9 	districts, public schools, and charter schools may apply to the commissioner to participate 
29.10 	in the initial trial program using a form and in the manner the commissioner prescribes. 
29.11 	The commissioner must select program participants from urban, suburban, and rural 
29.12 	areas throughout the state.
29.13 	(b) (d) The commissioner may issue a request for proposals to contract with an 
29.14 	organization that provides enhances a value-added assessment model that reliably 
29.15 	estimates school and school district effects on students' academic achievement over time. 
29.16 	The model the commissioner selects must accommodate diverse data and must use each 
29.17 	student's test data across grades. Data on individual teachers generated under the model 
29.18 	are personnel data under section 13.43.
29.19 	(c) (e) The contract under paragraph (b) (d) must be consistent with the definition of 
29.20 	"best value" under section 16C.02, subdivision 4.

29.21 	Sec. 8. Minnesota Statutes 2008, section 122A.40, subdivision 8, is amended to read:
29.22 		Subd. 8.Peer Review for continuing contract teachers. (a) A school board and 
29.23 	an exclusive representative of the teachers in the district shall develop an annual review 
29.24 	process and evaluation for all continuing contract teachers through joint agreement. The 
29.25 	annual review process and evaluation must be aligned to best instructional practices in 
29.26 	teaching and learning. A school board and exclusive representatives of the teachers must 
29.27 	use section 122A.413, subdivision 2, as the review for continuing contract teachers if the 
29.28 	plan has been approved by the commissioner of education.
29.29 	(b) A school board and an exclusive representative of the teachers in the district shall 
29.30 	develop a peer review process for continuing contract teachers through joint agreement.
29.31 	Peer review for continuing contract teachers may be used to meet the requirement of 
29.32 	paragraph (a).

29.33 	Sec. 9. [122A.426] STATE OF MINNESOTA MIDCAREER ALTERNATIVE 
29.34 	ROUTE TO TEACHING (SMART PROGRAM).
30.1 		Subdivision 1.Scope and requirements. (a) As an alternative to postsecondary 
30.2 	teacher preparation programs, a teacher training program is established for qualified 
30.3 	professionals to acquire entrance licenses. Program providers, approved by the Board of 
30.4 	Teaching under subdivision 3, may offer the program in the instructional fields of science, 
30.5 	mathematics, world languages, English as a second language, and special education.
30.6 	(b) To participate in the teacher training program, the teacher applicant must:
30.7 	(1) have, at a minimum, a bachelor's degree from an accredited four-year 
30.8 	postsecondary institution;
30.9 	(2) have an undergraduate major or postbaccalaureate degree in the subject to be 
30.10 	taught or in an equivalent or related subject area in which the applicant is seeking licensure;
30.11 	(3) pass a skills examination in reading, writing, and mathematics required under 
30.12 	section 122A.18;
30.13 	(4) pass a content knowledge assessment for each subject area to be taught;
30.14 	(5) have a cumulative grade point average of 2.75 or higher on a 4.0 scale for a 
30.15 	bachelor's degree;
30.16 	(6) show employment related to the subject to be taught; and
30.17 	(7) show a district offer for employment as a teacher contingent on participating in 
30.18 	an approved program described in subdivision 2.
30.19 		Subd. 2.Program. A teacher training program under this section is one year in 
30.20 	duration and must include:
30.21 	(1) a nine-credit summer or preinduction preparation program that includes 
30.22 	classroom management techniques and on-site classroom observation that are completed 
30.23 	before the candidate is employed in the classroom;
30.24 	(2) 200 clock hours of instruction in standards of effective practice and essential 
30.25 	skills that include curriculum, instructional strategies, and classroom management 
30.26 	presented after school or on Saturdays throughout the year leading to a teaching license 
30.27 	and up to 15 credits toward a master's degree in education;
30.28 	(3) on-the-job mentoring, supervision, and evaluation arranged by the employing 
30.29 	district that includes mentoring provided by both an experienced teacher licensed in 
30.30 	the subject taught by the applicant and a supervisor affiliated with the postsecondary 
30.31 	institution that provides training to the teacher applicant, and evaluations by an evaluation 
30.32 	team composed of the mentor, the supervisor, the principal, and a training program 
30.33 	member that include at least three classroom observations where the third evaluation 
30.34 	contains the team's recommendation for licensure and where a written report of each 
30.35 	evaluation is prepared; and
31.1 	(4) a one-week intensive workshop that includes analysis and reflection of the first 
31.2 	year of teaching after completing the school year, which may be counted as part of the 200 
31.3 	clock hours required in clause (2).
31.4 		Subd. 3.Program approval. An interested Minnesota public or private 
31.5 	postsecondary institution must submit program proposals to the Board of Teaching for 
31.6 	approval.
31.7 	Notwithstanding any law to the contrary, the Board of Teaching must develop 
31.8 	criteria for approving teacher training programs under this section after considering the 
31.9 	recommendations of an advisory group appointed by the Board of Teaching composed of, 
31.10 	at a minimum, the commissioner of education or designee, and representatives of school 
31.11 	superintendents, principals, teachers, and postsecondary institutions, including those 
31.12 	offering degrees in teaching preparation.
31.13 		Subd. 4.Eligibility license. Notwithstanding any law to the contrary, the Board of 
31.14 	Teaching must issue to an applicant who successfully meets the criteria under subdivision 
31.15 	1, paragraph (b), a one-year eligibility license to teach at the employing district under 
31.16 	subdivision 1, paragraph (b), clause (7). During the one-year eligibility period, the 
31.17 	employing district must assign a mentor under subdivision 2, clause (3). The applicant 
31.18 	teacher and teacher mentor must meet at least weekly throughout the school year on 
31.19 	classroom and instructional issues.
31.20 	The hiring district may deduct from the participant's salary the cost of providing the 
31.21 	mentor for the participant during the training year.
31.22 		Subd. 5.Standard entrance license. Notwithstanding any law to the contrary, the 
31.23 	Board of Teaching must issue a standard entrance license to a training program licensee 
31.24 	who successfully completes the program under subdivision 2, successfully teaches in a 
31.25 	classroom for one complete school year, successfully passes an assessment of general 
31.26 	pedagogical knowledge, and receives a positive recommendation from the applicant's 
31.27 	evaluation team.
31.28 		Subd. 6.Qualified teacher. A person with a valid eligibility license under 
31.29 	subdivision 5 is a qualified teacher under section 122A.16.

31.30 	Sec. 10. Minnesota Statutes 2008, section 124D.86, subdivision 3, is amended to read:
31.31 		Subd. 3.Integration revenue. (a) Integration revenue for a school district equals 
31.32 	the lesser of: the district's integration revenue per pupil unit for fiscal year 2009 times the 
31.33 	adjusted pupil units for the school year or the following amounts:
31.34 	(1) for Independent School District No. 709, Duluth, $206 times the adjusted pupil 
31.35 	units for the school year;
32.1 	(2) for Independent School District No. 625, St. Paul, $445 times the adjusted 
32.2 	pupil units for the school year;
32.3 	(3) for Special School District No. 1, Minneapolis, the sum of $445 times the 
32.4 	adjusted pupil units for the school year and an additional $35 times the adjusted pupil units 
32.5 	for the school year that is provided entirely through a local levy;
32.6 	(4) for a district not listed in clause (1), (2), or (3), that must implement a plan 
32.7 	under Minnesota Rules, parts 3535.0100 to 3535.0180, where the district's enrollment of 
32.8 	protected students, as defined under Minnesota Rules, part 3535.0110, exceeds 15 percent, 
32.9 	the lesser of (i) the actual cost of implementing the plan during the fiscal year minus the aid 
32.10 	received under subdivision 6, or (ii) $129 times the adjusted pupil units for the school year;
32.11 	(5) for a district not listed in clause (1), (2), (3), or (4), that is required to implement 
32.12 	a plan according to the requirements of Minnesota Rules, parts 3535.0100 to 3535.0180, 
32.13 	the lesser of
32.14 	(i) the actual cost of implementing the plan during the fiscal year minus the aid 
32.15 	received under subdivision 6, or
32.16 	(ii) $92 times the adjusted pupil units for the school year.
32.17 	Any money received by districts in clauses (1) to (3) which exceeds the amount 
32.18 	received in fiscal year 2000 shall be subject to the budget requirements in subdivision 
32.19 	1a; and
32.20 	(6) for a member district of a multidistrict integration collaborative that files a plan 
32.21 	with the commissioner, but is not contiguous to a racially isolated district, integration 
32.22 	revenue equals the amount defined in clause (5).
32.23 	(b) A district that did not receive integration revenue under this subdivision for fiscal 
32.24 	year 2009 is not eligible for integration revenue for fiscal year 2010 or later.

32.25 	EFFECTIVE DATE. This section is effective July 1, 2009.

32.26 	Sec. 11. [124D.98] SUMMER OF SUCCESS.
32.27 		Subdivision 1.Establishment. The summer of success program is established to 
32.28 	provide intensive intervention to students not yet proficient on the 8th grade standardized 
32.29 	assessments in mathematics or reading. Intervention aiming to accelerate students to 
32.30 	grade level shall be delivered to students the summer between 8th and 9th grade or in 
32.31 	an extended day format during 9th grade.
32.32 		Subd. 2.Program administration. Mathematics and reading instruction shall be 
32.33 	delivered in a manner to support student success. Program components shall include, but 
32.34 	are not limited to:
33.1 	(1) duration of sufficient length and intensity, individualized based on data, to 
33.2 	support student mastery of content that brings them to grade level and prepares them for 
33.3 	9th grade material;
33.4 	(2) curriculum aligned to Minnesota kindergarten through grade 12 academic 
33.5 	standards and delivered by highly qualified instructors in the content area in which 
33.6 	instruction will be provided;
33.7 	(3) connections to other support programs and opportunities offered during the 
33.8 	traditional school year;
33.9 	(4) creation of a high school transition plan, including courses supporting college 
33.10 	and career readiness; and
33.11 	(5) participation in an external program evaluation.
33.12 		Subd. 3.Program administration. The commissioner shall administer the program 
33.13 	through a competitive process. Applicants shall apply in the form and manner prescribed 
33.14 	by the commissioner. The commissioner shall, to the extent possible, select sites in St. 
33.15 	Paul, Minneapolis, the suburban metropolitan area, and greater Minnesota.

33.16 	Sec. 12. U TEACH.
 33.17 	The Minnesota Department of Education shall establish a competitive grant process 
33.18 	open to the University of Minnesota, Minnesota State Colleges and University institutions, 
33.19 	and Minnesota private colleges to establish U TEACH programs.  The programs must be 
33.20 	designed to encourage the recruitment of current students enrolled in math and science 
33.21 	departments into teacher preparation programs.  The funds awarded must be used to defray 
33.22 	the tuition of up to six teacher education courses per student.

33.23 	Sec. 13. APPROPRIATIONS.
 33.24 		Subdivision 1.Department of Education. The sums indicated in this section are 
33.25 	appropriated from the general fund to the Department of Education for the fiscal years 
33.26 	designated.
33.27 		Subd. 2.Charter school building lease aid. For building lease aid under Minnesota 
33.28 	Statutes, section 124D.11, subdivision 4: 

33.29		$
	36,575,000
	.....
	2010
	
33.30		$
	44,905,000
	.....
	2011
	
33.31 	The 2010 appropriation includes $3,719,000 for 2009 and $32,856,000 for 2010.
33.32 	The 2011 appropriation includes $8,213,000 for 2010 and $36,692,000 for 2011.
34.1 		Subd. 3.Charter school startup aid. For charter school startup cost aid under 
34.2 	Minnesota Statutes, section 124D.11:

34.3		$
	1,389,000
	.....
	2010
	
34.4		$
	1,237,000
	.....
	2011
	
34.5 	The 2010 appropriation includes $207,000 for 2009 and $1,182,000 for 2010.
34.6 	The 2011 appropriation includes $295,000 for 2010 and $942,000 for 2011.
34.7 		Subd. 4.Integration aid. For integration aid under Minnesota Statutes, section 
34.8 	124D.86, subdivision 5:

34.9		$
	55,345,000
	.....
	2010
	
34.10		$
	61,289,000
	.....
	2011
	
34.11 	The 2010 appropriation includes $6,110,000 for 2009 and $49,235,000 for 2010.
34.12 	The 2011 appropriation includes $12,309,000 for 2010 and $48,980,000 for 2011.
34.13 		Subd. 5.Magnet school grants. For magnet school and program grants under 
34.14 	Minnesota Statutes section 124D.88:

34.15		$
	750,000
	.....
	2010
	
34.16		$
	750,000
	.....
	2011
	
34.17 		Subd. 6.Interdistrict desegregation or integration transportation grants. For 
34.18 	interdistrict desegregation or integration transportation grants under Minnesota Statutes, 
34.19 	section 124D.87:

34.20		$
	15,693,000
	.....
	2010
	
34.21		$
	18,831,000
	.....
	2011
	
34.22 		Subd. 7.Success for the future. For American Indian success for the future grants 
34.23 	under Minnesota Statutes, section 124D.81:

34.24		$
	1,923,000
	.....
	2010
	
34.25		$
	2,137,000
	.....
	2011
	
34.26 	The 2010 appropriation includes $213,000 for 2009 and $1,710,000 for 2010.
34.27 	The 2011 appropriation includes $427,000 for 2010 and $1,710,000 for 2011.
34.28 		Subd. 8.American Indian teacher preparation grants. For joint grants to assist 
34.29 	American Indian people to become teachers under Minnesota Statutes, section 122A.63:

34.30		$
	190,000
	.....
	2010
	
34.31		$
	190,000
	.....
	2011
	
35.1 		Subd. 9.Tribal contract schools. For tribal contract school aid under Minnesota 
35.2 	Statutes, section 124D.83:

35.3		$
	1,764,000
	.....
	2010
	
35.4		$
	2,127,000
	.....
	2011
	
35.5 	The 2010 appropriation includes $184,000 for 2009 and $1,580,000 for 2010.
35.6 	The 2011 appropriation includes $395,000 for 2010 and $1,732,000 for 2011.
35.7 		Subd. 10.Early childhood programs at tribal schools. For early childhood 
35.8 	family education programs at tribal contract schools under Minnesota Statutes, section 
35.9 	124D.83, subdivision 4:

35.10		$
	68,000
	.....
	2010
	
35.11		$
	68,000
	.....
	2011
	
35.12 		Subd. 11.Statewide testing and reporting system. For the statewide testing and 
35.13 	reporting system under Minnesota Statutes, section 120B.30:

35.14		$
	18,468,000
	.....
	2010
	
35.15		$
	19,368,000
	.....
	2011
	
35.16 	$1,150,000 each year is for the value-added index assessment model.
35.17 	Any balance in the first year does not cancel but is available in the second year.
35.18 	The base for this program in fiscal year 2012 and later is $19,232,000.
35.19 		Subd. 12.Summer of success. For summer of success under Minnesota Statutes, 
35.20 	section 124D.98:

35.21		$
	3,204,000
	.....
	2010
	
35.22		$
	6,258,000
	.....
	2011
	
35.23 	Of this amount, $200,000 in fiscal year 2010 and $250,000 in fiscal year 2011 is 
35.24 	for evaluation, development, and administration of the program. Any balance available 
35.25 	from the first year does not cancel but is available in the second year. This is a onetime 
35.26 	appropriation.
35.27 		Subd. 13.Examination fees; teacher training and support programs. (a) For 
35.28 	students' advanced placement and international baccalaureate examination fees under 
35.29 	Minnesota Statutes, section 120B.13, subdivision 3, and the training and related costs 
35.30 	for teachers and other interested educators under Minnesota Statutes, section 120B.13, 
35.31 	subdivision 1:

35.32		$
	4,500,000
	.....
	2010
	
35.33		$
	4,500,000
	.....
	2011
	
36.1 	(b) The advanced placement program shall receive 75 percent of the appropriation 
36.2 	each year and the international baccalaureate program shall receive 25 percent of the 
36.3 	appropriation each year. The department, in consultation with representatives of the 
36.4 	advanced placement and international baccalaureate programs selected by the Advanced 
36.5 	Placement Advisory Council and IBMN, respectively, shall determine the amounts of 
36.6 	the expenditures each year for examination fees and training and support programs for 
36.7 	each program.
36.8 	(c) Notwithstanding Minnesota Statutes, section 120B.13, subdivision 1, at least 
36.9 	$500,000 each year is for teachers to attend subject matter summer training programs 
36.10 	and follow-up support workshops approved by the advanced placement or international 
36.11 	baccalaureate programs. The commissioner shall determine the payment process and 
36.12 	the amount of the subsidy.
36.13 	(d) The commissioner shall pay all examination fees for all students of low-income 
36.14 	families under Minnesota Statutes, section 120B.13, subdivision 3, and to the extent 
36.15 	of available appropriations shall also pay examination fees for students sitting for an 
36.16 	advanced placement examination, international baccalaureate examination, or both.
36.17 	Any balance in the first year does not cancel but is available in the second year.
36.18 		Subd. 14.Advanced placement, preadvanced placement, and international 
36.19 	baccalaureate programs. For advanced placement, preadvanced placement, and 
36.20 	international baccalaureate programs under Minnesota Statutes, section 120B.132:

36.21		$
	2,000,000
	.....
	2010
	
36.22		$
	2,000,000
	.....
	2011
	
36.23 	Any balance in the first year does not cancel but is available in the second year.
36.24 		Subd. 15.Collaborative urban educator. For the collaborative urban educator 
36.25 	grant program:

36.26		$
	528,000
	.....
	2010
	
36.27		$
	528,000
	.....
	2011
	
36.28 	Any balance in the first year does not cancel but is available in the second year.
36.29 		Subd. 16.Youth works program. For funding youth works programs under 
36.30 	Minnesota Statutes, sections 124D.37 to 124D.45:

36.31		$
	900,000
	.....
	2010
	
36.32		$
	900,000
	.....
	2011
	
37.1 	A grantee organization may provide health and child care coverage to the dependents 
37.2 	of each participant enrolled in a full-time youth works program to the extent such coverage 
37.3 	is not otherwise available.
37.4 		Subd. 17.Student organizations. For student organizations:

37.5		$
	725,000
	.....
	2010
	
37.6		$
	725,000
	.....
	2011
	
37.7 	$40,000 each year is for student organizations serving health occupations.
37.8 	$38,000 each year is for student organizations serving service occupations.
37.9 	$88,000 each year is for student organizations serving trade and industry occupations.
37.10 	$84,000 each year is for student organizations serving business occupations.
37.11 	$131,000 each year is for student organizations serving agriculture occupations.
37.12 	$125,000 each year is for student organizations serving family and consumer science 
37.13 	occupations.
37.14 	$95,000 each year is for student organizations serving marketing occupations.
37.15 	Any balance in the first year does not cancel but is available in the second year.
37.16 		Subd. 18.Education Planning and Assessment System (EPAS) program. For 
37.17 	the Educational Planning and Assessment System (EPAS) program under Minnesota 
37.18 	Statutes, section 120B.128:

37.19		$
	829,000
	.....
	2010
	
37.20		$
	829,000
	.....
	2011
	
37.21 	Any balance in the first year does not cancel but is available in the second year.
37.22 		Subd. 19.Early childhood literacy programs. For early childhood literacy 
37.23 	programs under Minnesota Statutes, section 119A.50, subdivision 3:

37.24		$
	1,000,000
	.....
	2010
	
37.25		$
	1,000,000
	.....
	2011
	
37.26 	$1,000,000 each year is for leveraging federal and private funding to support 
37.27 	AmeriCorps members serving in the Minnesota Reading Corps program established by 
37.28 	Serve Minnesota, including costs associated with the training and teaching of early literacy 
37.29 	skills to children age three to grade 3 and the evaluation of the impact of the program 
37.30 	under Minnesota Statutes, sections 124D.38, subdivision 2, and 124D.42, subdivision 6.
37.31 	Any balance in the first year does not cancel but is available in the second year.
37.32 		Subd. 20.Teacher centers. For teacher centers under Minnesota Statutes, section 
37.33 	122A.72:

38.1		$
	1,500,000
	.....
	2010
	
38.2		$
	1,500,000
	.....
	2011
	
38.3 	Of this amount, $200,000 in fiscal year 2010 and $200,000 in fiscal year 2011 is 
38.4 	for administration and evaluation of the program. Any balance in the first year does not 
38.5 	cancel but is available in the second year. This is a onetime appropriation.
38.6 		Subd. 21.U TEACH. For the U TEACH program under section 12:

38.7		$
	500,000
	.....
	2010
	
38.8		$
	500,000
	.....
	2011
	
38.9 	Any balance in the first year does not cancel but is available in the second year. 
38.10 	This is a onetime appropriation.
38.11 		Subd. 22.Teacher training programs. For the SMART teacher training program 
38.12 	for professionals under Minnesota Statutes, section 122A.246:

38.13		$
	500,000
	.....
	2010
	
38.14		$
	500,000
	.....
	2011
	
38.15 	Any balance in the first year does not cancel but is available in the second year.
38.16 		Subd. 23.Principals' Leadership Institute. For the Principals' Leadership Institute 
38.17 	under Minnesota Statutes, section 122A.75:

38.18		$
	400,000
	.....
	2010
	
38.19		$
	400,000
	.....
	2011
	
38.20 	Any balance in the first year does not cancel but is available in the second year.
38.21 		Subd. 24.Minnesota virtual education. For the Minnesota Virtual Education 
38.22 	program under Minnesota Statutes, section 120B.17:

38.23		$
	1,000,000
	.....
	2010
	
38.24		$
	1,000,000
	.....
	2011
	
38.25 	Any balance from the first year does not cancel but is available in the second year.

38.26 	Sec. 14.  REPEALER.
 38.27 	Minnesota Statutes 2008, sections 122A.24; 122A.72, subdivisions 3 and 4; and 
38.28 	124D.091, subdivision 3, are repealed.

38.29 	ARTICLE 3
38.30 	SPECIAL PROGRAMS

38.31 	Section 1. APPROPRIATIONS.
 39.1 		Subdivision 1.Department of Education. The sums indicated in this section are 
39.2 	appropriated from the general fund to the Department of Education for the fiscal years 
39.3 	designated.
39.4 		Subd. 2.Special education; regular. For special education aid under Minnesota 
39.5 	Statutes, section 125A.75:

39.6		$
	660,502,000
	.....
	2010
	
39.7		$
	776,407,000
	.....
	2011
	
39.8 	The 2010 appropriation includes $71,947,000 for 2009 and $588,555,000 for 2010.
39.9 	The 2011 appropriation includes $147,138,000 for 2010 and $629,269,000 for 2011.
39.10 		Subd. 3.Aid for children with disabilities. For aid under Minnesota Statutes, 
39.11 	section 125A.75, subdivision 3, for children with disabilities placed in residential facilities 
39.12 	within the district boundaries for whom no district of residence can be determined:

39.13		$
	2,519,000
	.....
	2010
	
39.14		$
	2,779,000
	.....
	2011
	
39.15 	If the appropriation for either year is insufficient, the appropriation for the other 
39.16 	year is available.
39.17 		Subd. 4.Travel for home-based services. For aid for teacher travel for home-based 
39.18 	services under Minnesota Statutes, section 125A.75, subdivision 1:

39.19		$
	224,000
	.....
	2010
	
39.20		$
	270,000
	.....
	2011
	
39.21 	The 2010 appropriation includes $23,000 for 2009 and $201,000 for 2010.
39.22 	The 2011 appropriation includes $50,000 for 2010 and $220,000 for 2011.
39.23 		Subd. 5.Special education; excess costs. For excess cost aid under Minnesota 
39.24 	Statutes, section 125A.79, subdivision 7:

39.25		$
	102,668,000
	.....
	2010
	
39.26		$
	110,874,000
	.....
	2011
	
39.27 	The 2010 appropriation includes $37,046,000 for 2009 and $65,622,000 for 2010.
39.28 	The 2011 appropriation includes $45,225,000 for 2010 and $65,649,000 for 2011.
39.29 		Subd. 6.Court-placed special education revenue. For reimbursing serving 
39.30 	school districts for unreimbursed eligible expenditures attributable to children placed in 
39.31 	the serving school district by court action under Minnesota Statutes, section 125A.79, 
39.32 	subdivision 4:

40.1		$
	76,000
	.....
	2010
	
40.2		$
	78,000
	.....
	2011
	
40.3 		Subd. 7.Special education out-of-state tuition. For special education out-of-state 
40.4 	tuition according to Minnesota Statutes, section 125A.79, subdivision 8:

40.5		$
	250,000
	.....
	2010
	
40.6		$
	250,000
	.....
	2011

40.7 	ARTICLE 4
40.8 	FACILITIES AND TECHNOLOGY

40.9 	Section 1. Minnesota Statutes 2008, section 125B.26, is amended to read:
40.10 	125B.26 TELECOMMUNICATIONS/INTERNET ACCESS EQUITY AID.
40.11 		Subdivision 1.Costs to be submitted. (a) A district or, charter school, or 
40.12 	intermediate school district shall submit its actual telecommunications/Internet access 
40.13 	costs for the previous fiscal year, adjusted for any e-rate revenue received, to the 
40.14 	department by August 15 of each year as prescribed by the commissioner. Costs eligible 
40.15 	for reimbursement under this program are limited to the following:
40.16 	(1) ongoing or recurring telecommunications/Internet access costs associated with 
40.17 	Internet access, data lines, and video links providing:
40.18 	(i) the equivalent of one data line, video link, or integrated data/video link that relies 
40.19 	on a transport medium that operates at a minimum speed of 1.544 megabytes per second 
40.20 	(T1) for each elementary school, middle school, or high school under section 120A.05, 
40.21 	subdivisions 9, 11, and 13, including the recurring telecommunications line lease costs 
40.22 	and ongoing Internet access service fees; or
40.23 	(ii) the equivalent of one data line or video circuit, or integrated data/video link that 
40.24 	relies on a transport medium that operates at a minimum speed of 1.544 megabytes per 
40.25 	second (T1) for each district, including recurring telecommunications line lease costs 
40.26 	and ongoing Internet access service fees;
40.27 	(2) recurring costs of contractual or vendor-provided maintenance on the school 
40.28 	district's wide area network to the point of presence at the school building up to the router, 
40.29 	codec, or other service delivery equipment located at the point of presence termination 
40.30 	at the school or school district;
40.31 	(3) recurring costs of cooperative, shared arrangements for regional delivery of 
40.32 	telecommunications/Internet access between school districts, postsecondary institutions, 
40.33 	and public libraries including network gateways, peering points, regional network 
40.34 	infrastructure, Internet2 access, and network support, maintenance, and coordination; and
41.1 	(4) service provider installation fees for installation of new telecommunications lines 
41.2 	or increased bandwidth.
41.3 	(b) Costs not eligible for reimbursement under this program include:
41.4 	(1) recurring costs of school district staff providing network infrastructure support;
41.5 	(2) recurring costs associated with voice and standard telephone service;
41.6 	(3) costs associated with purchase of network hardware, telephones, computers, or 
41.7 	other peripheral equipment needed to deliver telecommunications access to the school or 
41.8 	school district;
41.9 	(4) costs associated with laying fiber for telecommunications access;
41.10 	(5) costs associated with wiring school or school district buildings;
41.11 	(6) costs associated with purchase, installation, or purchase and installation of 
41.12 	Internet filtering; and
41.13 	(7) costs associated with digital content, including online learning or distance 
41.14 	learning programming, and information databases.
41.15 		Subd. 2.E-rates. To be eligible for aid under this section, a district or, charter 
41.16 	school, or intermediate school district is required to file an e-rate application either 
41.17 	separately or through its telecommunications access cluster and have a current technology 
41.18 	plan on file with the department. Discounts received on telecommunications expenditures 
41.19 	shall be reflected in the costs submitted to the department for aid under this section.
41.20 		Subd. 3.Reimbursement criteria. The commissioner shall develop criteria 
41.21 	for approving costs submitted by organized school districts and, charter schools, and 
41.22 	intermediate school districts under subdivision 1.
41.23 		Subd. 4.District aid. For fiscal year 2006 and later, a district or, charter school's
41.24 	school, or intermediate school district's Internet access equity aid equals the district or,
41.25 	charter school's school, or intermediate school district's approved cost for the previous 
41.26 	fiscal year according to subdivision 1 exceeding $15 times the district's adjusted marginal 
41.27 	cost pupil units for the previous fiscal year or no reduction if the district is part of an 
41.28 	organized telecommunications access cluster. Equity aid must be distributed to the 
41.29 	telecommunications access cluster for districts, charter schools, or intermediate school 
41.30 	districts that are members of the cluster or to individual districts and, charter schools, or 
41.31 	intermediate school districts not part of a telecommunications access cluster.
41.32 		Subd. 5.Telecommunications/Internet access services for nonpublic schools.
 41.33 	(a) Districts shall provide each year upon formal request by or on behalf of a nonpublic 
41.34 	school, not including home schools, located in that district or area, ongoing or recurring 
41.35 	telecommunications access services to the nonpublic school either through existing district 
41.36 	providers or through separate providers.
42.1 	(b) The amount of district aid for telecommunications access services for each 
42.2 	nonpublic school under this subdivision equals the lesser of:
42.3 	(1) 90 percent of the nonpublic school's approved cost for the previous fiscal year 
42.4 	according to subdivision 1 exceeding $10 for fiscal year 2006 and later times the number 
42.5 	of weighted pupils enrolled at the nonpublic school as of October 1 of the previous 
42.6 	school year; or
42.7 	(2) the product of the district's aid per pupil unit according to subdivision 4 times 
42.8 	the number of weighted pupils enrolled at the nonpublic school as of October 1 of the 
42.9 	previous school year.
42.10 	(c) For purposes of this subdivision, nonpublic school pupils shall be weighted by 
42.11 	grade level using the weighting factors defined in section 126C.05, subdivision 1.
42.12 	(d) Each year, a district providing services under paragraph (a) may claim up to five 
42.13 	percent of the aid determined in paragraph (b) for costs of administering this subdivision. 
42.14 	No district may expend an amount for these telecommunications access services which 
42.15 	exceeds the amount allocated under this subdivision. The nonpublic school is responsible 
42.16 	for the Internet access costs not covered by this section.
42.17 	(e) At the request of a nonpublic school, districts may allocate the amount 
42.18 	determined in paragraph (b) directly to the nonpublic school to pay for or offset the 
42.19 	nonpublic school's costs for telecommunications access services; however, the amount 
42.20 	allocated directly to the nonpublic school may not exceed the actual amount of the school's 
42.21 	ongoing or recurring telecommunications access costs.
42.22 		Subd. 6.Severability. If any portion of this section is found by a court to be 
42.23 	unconstitutional, the remaining portions of the section shall remain in effect.

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

42.25 	Sec. 2. APPROPRIATIONS.
 42.26 		Subdivision 1.Department of Education. The sums indicated in this section are 
42.27 	appropriated from the general fund to the Department of Education for the fiscal years 
42.28 	designated.
42.29 		Subd. 2.Health and safety revenue. For health and safety aid according to 
42.30 	Minnesota Statutes, section 123B.57, subdivision 5:

42.31		$
	144,000
	.....
	2010
	
42.32		$
	161,000
	.....
	2011
	
42.33 	The 2010 appropriation includes $10,000 for 2009 and $134,000 for 2010.
42.34 	The 2011 appropriation includes $33,000 for 2010 and $128,000 for 2011.
43.1 		Subd. 3.Debt service equalization. For debt service aid according to Minnesota 
43.2 	Statutes, section 123B.53, subdivision 6:

43.3		$
	7,260,000
	.....
	2010
	
43.4		$
	7,815,000
	.....
	2011
	
43.5 	The 2010 appropriation includes $851,000 for 2009 and $6,409,000 for 2010.
43.6 	The 2011 appropriation includes $1,602,000 for 2010 and $6,213,000 for 2011.
43.7 		Subd. 4.Alternative facilities bonding aid. For alternative facilities bonding aid, 
43.8 	according to Minnesota Statutes, section 123B.59, subdivision 1:

43.9		$
	17,358,000
	.....
	2010
	
43.10		$
	19,287,000
	.....
	2011
	
43.11 	The 2010 appropriation includes $1,928,000 for 2009 and $15,430,000 for 2010.
43.12 	The 2011 appropriation includes $3,857,000 for 2010 and $15,430,000 for 2011.
43.13 		Subd. 5.Equity in telecommunications access. For equity in telecommunications 
43.14 	access:

43.15		$
	3,750,000
	.....
	2010
	
43.16		$
	3,750,000
	.....
	2011
	
43.17 	If the appropriation amount is insufficient, the commissioner shall reduce the 
43.18 	reimbursement rate in Minnesota Statutes, section 125B.26, subdivisions 4 and 5, and the 
43.19 	revenue for fiscal years 2010 and 2011 shall be prorated.
43.20 	Any balance in the first year does not cancel but is available in the second year.
43.21 		Subd. 6.Deferred maintenance aid. For deferred maintenance aid, according to 
43.22 	Minnesota Statutes, section 123B.591, subdivision 4:

43.23		$
	2,046,000
	.....
	2010
	
43.24		$
	1,870,000
	.....
	2011
	
43.25 	The 2010 appropriation includes $258,000 for 2009 and $1,788,000 for 2010.
43.26 	The 2011 appropriation includes $447,000 for 2010 and $1,423,000 for 2011.

43.27 	ARTICLE 5
43.28 	NUTRITION AND ACCOUNTING

43.29 	Section 1. APPROPRIATIONS.
 43.30 		Subdivision 1.Department of Education. The sums indicated in this section are 
43.31 	appropriated from the general fund to the Department of Education for the fiscal years 
43.32 	designated.
44.1 		Subd. 2.School lunch. For school lunch aid according to Minnesota Statutes, 
44.2 	section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

44.3		$
	12,689,000
	.....
	2010
	
44.4		$
	13,070,000
	.....
	2011
	
44.5 		Subd. 3.School breakfast. For traditional school breakfast aid under Minnesota 
44.6 	Statutes, section 124D.1158:

44.7		$
	4,978,000
	.....
	2010
	
44.8		$
	5,146,000
	.....
	2011
	
44.9 		Subd. 4.Kindergarten milk. For kindergarten milk aid under Minnesota Statutes, 
44.10 	section 124D.118:

44.11		$
	1,098,000
	.....
	2010
	
44.12		$
	1,120,000
	.....
	2011
	
44.13 		Subd. 5.Summer school service replacement aid. For summer food service 
44.14 	replacement aid under Minnesota Statutes, section 124D.119:

44.15		$
	150,000
	.....
	2010
	
44.16		$
	150,000
	.....
	2011

44.17 	ARTICLE 6
44.18 	LIBRARIES

44.19 	Section 1. DEPARTMENT OF EDUCATION; LIBRARY APPROPRIATIONS.
 44.20 		Subdivision 1.Department of Education. The sums indicated in this section are 
44.21 	appropriated from the general fund to the Department of Education for the fiscal years 
44.22 	designated.
44.23 		Subd. 2.Basic system support. For basic system support grants under Minnesota 
44.24 	Statutes, section 134.355:

44.25		$
	12,213,000
	.....
	2010
	
44.26		$
	13,570,000
	.....
	2011
	
44.27 	The 2010 appropriation includes $1,357,000 for 2009 and $10,856,000 for 2010.
44.28 	The 2011 appropriation includes $2,714,000 for 2010 and $10,856,000 for 2011.
44.29 		Subd. 3.Multicounty, multitype library systems. For grants under Minnesota 
44.30 	Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:

45.1		$
	1,170,000
	.....
	2010
	
45.2		$
	1,300,000
	.....
	2011
	
45.3 	The 2010 appropriation includes $130,000 for 2009 and $1,040,000 for 2010.
45.4 	The 2011 appropriation includes $260,000 for 2010 and $1,040,000 for 2011.
45.5 		Subd. 4.Electronic library for Minnesota. For statewide licenses to online 
45.6 	databases selected in cooperation with the Minnesota Office of Higher Education for 
45.7 	school media centers, public libraries, state government agency libraries, and public 
45.8 	or private college or university libraries:

45.9		$
	900,000
	.....
	2010
	
45.10		$
	900,000
	.....
	2011
	
45.11 	Any balance in the first year does not cancel but is available in the second year.
45.12 		Subd. 5.Regional library telecommunications aid. For regional library 
45.13 	telecommunications aid under Minnesota Statutes, section 134.355:

45.14		$
	2,070,000
	.....
	2010
	
45.15		$
	2,300,000
	.....
	2011
	
45.16 	The 2010 appropriation includes $230,000 for 2009 and $1,840,000 for 2010.
45.17 	The 2011 appropriation includes $460,000 for 2010 and $1,840,000 for 2011.

45.18 	ARTICLE 7
45.19 	EARLY CHILDHOOD EDUCATION

45.20 	Section 1. APPROPRIATIONS.
 45.21 		Subdivision 1.Department of Education. The sums indicated in this section are 
45.22 	appropriated from the general fund to the Department of Education for the fiscal years 
45.23 	designated.
45.24 		Subd. 2.School readiness. For revenue for school readiness programs under 
45.25 	Minnesota Statutes, sections 124D.15 and 124D.16:

45.26		$
	9,085,000
	.....
	2010
	
45.27		$
	10,095,000
	.....
	2011
	
45.28 	The 2010 appropriation includes $1,009,000 for 2009 and $8,076,000 for 2010.
45.29 	The 2011 appropriation includes $2,019,000 for 2010 and $8,076,000 for 2011.
45.30 		Subd. 3.Early childhood family education aid. For early childhood family 
45.31 	education aid under Minnesota Statutes, section 124D.135:

46.1		$
	20,818,000
	.....
	2010
	
46.2		$
	22,617,000
	.....
	2011
	
46.3 	The 2010 appropriation includes $3,033,000 for 2009 and $17,785,000 for 2010.
46.4 	The 2011 appropriation includes $4,446,000 for 2010 and $18,171,000 for 2011.
46.5 		Subd. 4.Health and developmental screening aid. For health and developmental 
46.6 	screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

46.7		$
	3,466,000
	.....
	2010
	
46.8		$
	3,961,000
	.....
	2011
	
46.9 	The 2010 appropriation includes $370,000 for 2009 and $3,096,000 for 2010.
46.10 	The 2011 appropriation includes $773,000 for 2010 and $3,188,000 for 2011.
46.11 		Subd. 5.Head Start program. For Head Start programs under Minnesota Statutes, 
46.12 	section 119A.52:

46.13		$
	20,100,000
	.....
	2010
	
46.14		$
	20,100,000
	.....
	2011
	
46.15 	Any balance in the first year does not cancel but is available in the second year.
46.16 		Subd. 6.Educate parents partnership. For the educate parents partnership under 
46.17 	Minnesota Statutes, section 124D.129:

46.18		$
	50,000
	.....
	2010
	
46.19		$
	50,000
	.....
	2011
	
46.20 	Any balance in the first year does not cancel but is available in the second year.
46.21 		Subd. 7.Kindergarten entrance assessment initiative and intervention 
46.22 	program. For the kindergarten entrance assessment initiative and intervention program 
46.23 	under Minnesota Statutes, section 124D.162:

46.24		$
	287,000
	.....
	2010
	
46.25		$
	287,000
	.....
	2011
	
46.26 	Any balance in the first year does not cancel but is available in the second year.

46.27 	ARTICLE 8
46.28 	PREVENTION

46.29 	Section 1. APPROPRIATIONS.
 46.30 		Subdivision 1.Department of Education. The sums indicated in this section are 
46.31 	appropriated from the general fund to the Department of Education for the fiscal years 
46.32 	designated.
47.1 		Subd. 2.Community education aid. For community education aid under 
47.2 	Minnesota Statutes, section 124D.20:

47.3		$
	528,000
	.....
	2010
	
47.4		$
	456,000
	.....
	2011
	
47.5 	The 2010 appropriation includes $74,000 for 2009 and $454,000 for 2010.
47.6 	The 2011 appropriation included $113,000 for 2010 and $343,000 for 2011.
47.7 		Subd. 3.Adults with disabilities program aid. For adults with disabilities 
47.8 	programs under Minnesota Statutes, section 124D.56:

47.9		$
	639,000
	.....
	2010
	
47.10		$
	710,000
	.....
	2011
	
47.11 	The 2010 appropriation includes $71,000 for 2009 and $568,000 for 2010.
47.12 	The 2011 appropriation includes $142,000 for 2010 and $568,000 for 2011.
47.13 		Subd. 4.Hearing-impaired adults. For programs for hearing-impaired adults 
47.14 	under Minnesota Statutes, section 124D.57:

47.15		$
	70,000
	.....
	2010
	
47.16		$
	70,000
	.....
	2011
	
47.17 		Subd. 5.School-age care revenue. For extended day aid under Minnesota Statutes, 
47.18 	section 124D.22:

47.19		$
	1,000
	.....
	2010
	
47.20		$
	1,000
	.....
	2011
	
47.21 	The 2010 appropriation includes $0 for 2009 and $1,000 for 2010.
47.22 	The 2011 appropriation includes $0 for 2010 and $1,000 for 2011.

47.23 	ARTICLE 9
47.24 	SELF-SUFFICIENCY AND LIFELONG LEARNING

47.25 	Section 1. APPROPRIATIONS.
 47.26 		Subdivision 1.Department of Education. The sums indicated in this section are 
47.27 	appropriated from the general fund to the Department of Education for the fiscal years 
47.28 	designated.
47.29 		Subd. 2.Adult basic education aid. For adult basic education aid under Minnesota 
47.30 	Statutes:

47.31		$
	38,622,000
	.....
	2010
	
47.32		$
	44,079,000
	.....
	2011
	
48.1 	The 2010 appropriation includes $4,182,000 for 2009 and $34,440,000 for 2010.
48.2 	The 2011 appropriation includes $8,610,000 for 2010 and $35,469,000 for 2011.
48.3 		Subd. 3.GED tests. For payment of 60 percent of the costs of GED tests under 
48.4 	Minnesota Statutes, section 124D.55:

48.5		$
	125,000
	.....
	2010
	
48.6		$
	125,000
	.....
	2011
	
48.7 	Any balance in the first year does not cancel but is available in the second year.

48.8 	ARTICLE 10
48.9 	STATE AGENCIES

48.10 	Section 1. Minnesota Statutes 2008, section 122A.09, subdivision 4, is amended to 
48.11 	read:
48.12 		Subd. 4.License and rules. (a) The board must adopt rules to license public school 
48.13 	teachers and interns subject to chapter 14.
48.14 	(b) The board must adopt rules requiring a person to successfully complete a skills 
48.15 	examination in reading, writing, and mathematics as a requirement for initial teacher 
48.16 	licensure entrance into a board-approved teacher preparation program. Such rules must 
48.17 	require college and universities offering a board-approved teacher preparation program to 
48.18 	provide remedial assistance to persons who did not achieve a qualifying score on the skills 
48.19 	examination, including those for whom English is a second language.
48.20 	(c) The board must adopt rules to approve teacher preparation programs. The board, 
48.21 	upon the request of a postsecondary student preparing for teacher licensure or a licensed 
48.22 	graduate of a teacher preparation program, shall assist in resolving a dispute between the 
48.23 	person and a postsecondary institution providing a teacher preparation program when the 
48.24 	dispute involves an institution's recommendation for licensure affecting the person or the 
48.25 	person's credentials. At the board's discretion, assistance may include the application 
48.26 	of chapter 14.
48.27 	(d) The board must provide the leadership and shall adopt rules for the redesign of 
48.28 	teacher education programs to implement a research based, results-oriented curriculum 
48.29 	that focuses on the skills teachers need in order to be effective. The board shall implement 
48.30 	new systems of teacher preparation program evaluation to assure program effectiveness 
48.31 	based on proficiency of graduates in demonstrating attainment of program outcomes.
48.32 	(e) The board must adopt rules requiring successful completion of an examination 
48.33 	of general pedagogical knowledge and examinations of licensure-specific teaching 
49.1 	skills. The rules shall be effective on the dates determined by the board but not later 
49.2 	than September 1, 2001.
49.3 	(f) The board must adopt rules requiring teacher educators to work directly with 
49.4 	elementary or secondary school teachers in elementary or secondary schools to obtain 
49.5 	periodic exposure to the elementary or secondary teaching environment.
49.6 	(g) The board must grant licenses to interns and to candidates for initial licenses.
49.7 	(h) The board must design and implement an assessment system which requires a 
49.8 	candidate for an initial license and first continuing license to demonstrate the abilities 
49.9 	necessary to perform selected, representative teaching tasks at appropriate levels.
49.10 	(i) The board must receive recommendations from local committees as established 
49.11 	by the board for the renewal of teaching licenses.
49.12 	(j) The board must grant life licenses to those who qualify according to requirements 
49.13 	established by the board, and suspend or revoke licenses pursuant to sections 122A.20 and 
49.14 	214.10. The board must not establish any expiration date for application for life licenses.  
49.15 	(k) The board must adopt rules that require all licensed teachers who are renewing 
49.16 	their continuing license to include in their renewal requirements further preparation in 
49.17 	the areas of using positive behavior interventions and in accommodating, modifying, and 
49.18 	adapting curricula, materials, and strategies to appropriately meet the needs of individual 
49.19 	students and ensure adequate progress toward the state's graduation rule.
49.20 	(l) In adopting rules to license public school teachers who provide health-related 
49.21 	services for disabled children, the board shall adopt rules consistent with license or 
49.22 	registration requirements of the commissioner of health and the health-related boards who 
49.23 	license personnel who perform similar services outside of the school.
49.24 	(m) The board must adopt rules that require all licensed teachers who are renewing 
49.25 	their continuing license to include in their renewal requirements further reading 
49.26 	preparation, consistent with section 122A.06, subdivision 4. The rules do not take effect 
49.27 	until they are approved by law. Teachers who do not provide direct instruction including, at 
49.28 	least, counselors, school psychologists, school nurses, school social workers, audiovisual 
49.29 	directors and coordinators, and recreation personnel are exempt from this section.  
49.30 	(n) The board must adopt rules that require all licensed teachers who are renewing 
49.31 	their continuing license to include in their renewal requirements further preparation 
49.32 	in understanding the key warning signs of early-onset mental illness in children and 
49.33 	adolescents.

49.34 	Sec. 2. Minnesota Statutes 2008, section 122A.18, subdivision 2, is amended to read:
50.1 		Subd. 2.Teacher and support personnel qualifications. (a) The Board of 
50.2 	Teaching must issue licenses under its jurisdiction to persons the board finds to be 
50.3 	qualified and competent for their respective positions.
50.4 	(b) The board must require a person to successfully complete an examination of 
50.5 	skills in reading, writing, and mathematics before being granted an initial teaching license 
50.6 	to provide direct instruction to pupils in prekindergarten, elementary, secondary, or special 
50.7 	education programs. The board must require colleges and universities offering a board 
50.8 	approved teacher preparation program to provide remedial assistance that includes a 
50.9 	formal diagnostic component to persons enrolled in their institution who did not achieve a 
50.10 	qualifying score on the skills examination, including those for whom English is a second 
50.11 	language. The colleges and universities must provide assistance in the specific academic 
50.12 	areas of deficiency in which the person did not achieve a qualifying score. School 
50.13 	districts must provide similar, appropriate, and timely remedial assistance that includes a 
50.14 	formal diagnostic component and mentoring to those persons employed by the district 
50.15 	who completed their teacher education program outside the state of Minnesota, received 
50.16 	a one-year license to teach in Minnesota and did not achieve a qualifying score on the 
50.17 	skills examination, including those persons for whom English is a second language. The 
50.18 	Board of Teaching shall report annually to the education committees of the legislature 
50.19 	on the total number of teacher candidates during the most recent school year taking the 
50.20 	skills examination, the number who achieve a qualifying score on the examination, the 
50.21 	number who do not achieve a qualifying score on the examination, the distribution of all 
50.22 	candidates' scores, the number of candidates who have taken the examination at least once 
50.23 	before, and the number of candidates who have taken the examination at least once before 
50.24 	and achieve a qualifying score.
50.25 	(c) A person who has completed an approved teacher preparation program and 
50.26 	obtained a one-year license to teach, but has not successfully completed the skills 
50.27 	examination, may renew the one-year license for two additional one-year periods. Each 
50.28 	renewal of the one-year license is contingent upon the licensee:
50.29 	(1) providing evidence of participating in an approved remedial assistance program 
50.30 	provided by a school district or postsecondary institution that includes a formal diagnostic 
50.31 	component in the specific areas in which the licensee did not obtain qualifying scores; and
50.32 	(2) attempting to successfully complete the skills examination during the period 
50.33 	of each one-year license.
50.34 	(d) The Board of Teaching must grant continuing licenses only to those persons who 
50.35 	have met board criteria for granting a continuing license, which includes successfully 
50.36 	completing the skills examination in reading, writing, and mathematics.
51.1 	(e) (d) All colleges and universities approved by the board of teaching to prepare 
51.2 	persons for teacher licensure must include in their teacher preparation programs a common 
51.3 	core of teaching knowledge and skills to be acquired by all persons recommended 
51.4 	for teacher licensure. This common core shall meet the standards developed by the 
51.5 	interstate new teacher assessment and support consortium in its 1992 "model standards for 
51.6 	beginning teacher licensing and development." Amendments to standards adopted under 
51.7 	this paragraph are covered by chapter 14. The board of teaching shall report annually to 
51.8 	the education committees of the legislature on the performance of teacher candidates 
51.9 	on common core assessments of knowledge and skills under this paragraph during the 
51.10 	most recent school year.

51.11 	Sec. 3. Minnesota Statutes 2008, section 122A.416, is amended to read:
51.12 	122A.416 ALTERNATIVE TEACHER COMPENSATION REVENUE 
51.13 	FOR PERPICH CENTER FOR ARTS EDUCATION AND MULTIDISTRICT 
51.14 	INTEGRATION COLLABORATIVES.
51.15 	Notwithstanding sections 122A.413, 122A.414, 122A.415, and 126C.10, 
51.16 	multidistrict integration collaboratives and the Perpich Center for Arts Education are 
51.17 	eligible to receive alternative teacher compensation revenue as if they were intermediate 
51.18 	school districts. To qualify for alternative teacher compensation revenue, a multidistrict 
51.19 	integration collaborative or the Perpich Center for Arts Education must meet all of the 
51.20 	requirements of sections 122A.413, 122A.414, and 122A.415 that apply to intermediate 
51.21 	school districts, must report its enrollment as of October 1 of each year to the department, 
51.22 	and must annually report its expenditures for the alternative teacher professional pay 
51.23 	system consistent with the uniform financial accounting and reporting standards to the 
51.24 	department by November 30 of each year.

51.25 	EFFECTIVE DATE. This section is effective July 1, 2010.

51.26 	Sec. 4. [124D.101] PERPICH CENTER FOR ARTS EDUCATION.
51.27 		Subdivision 1.Charter school established. The Perpich Center for Arts Education 
51.28 	may organize as a charter school consistent with section 124D.10.
51.29 		Subd. 2.Sponsor. (a) Consistent with section 124D.10, subdivision 3, in order 
51.30 	to organize as a charter school, the Perpich Center for Arts Education must attempt to 
51.31 	find at least one qualified charter school sponsor that will apply to the commissioner to 
51.32 	authorize and serve as a charter school sponsor for the Perpich Center for Arts Education 
51.33 	charter school.
52.1 	(b) If a qualified sponsor cannot be found or is not approved, the Department 
52.2 	of Education shall sponsor the Perpich Center for Arts Education charter school. If a 
52.3 	qualified sponsor is later found and approved, the Department of Education may transfer 
52.4 	sponsorship to the qualified sponsor under section 124D.10.
52.5 		Subd. 3.State aid. The Perpich Center for Arts Education charter school is eligible 
52.6 	for state charter school aid, including aid for start-up and operating costs, as provided 
52.7 	in section 124D.11.

52.8 	EFFECTIVE DATE. This section is effective July 1, 2010.

52.9 	Sec. 5. DISSOLUTION OF PERPICH CENTER FOR ARTS EDUCATION.
 52.10 	(a) The Perpich Center for Arts Education is dissolved as a state agency.
52.11 	(b) Official state records held at the Perpich Center for Arts Education shall be 
52.12 	transferred to the Department of Education.
52.13 	(c) Oversight of the facility occupied by the Perpich Center for Arts Education 
52.14 	shall be transferred to the Department of Administration. If the Perpich Center for Arts 
52.15 	Education organizes as a charter school under Minnesota Statutes, section 124D.10, the 
52.16 	charter school shall have the right of first refusal to lease the building from the state.

52.17 	EFFECTIVE DATE. This section is effective July 1, 2010.

52.18 	Sec. 6. RULEMAKING.
 52.19 		Subdivision 1.Requiring college major in core content area. The Board of 
52.20 	Teaching must adopt rules requiring candidates for licensure in the core content areas 
52.21 	to evidence the equivalence of an academic major in the core content area for which 
52.22 	they are applying for licensure. This requirement must become effective for graduates 
52.23 	enrolling in a Minnesota teacher preparation program after July 1, 2014. Teacher licensure 
52.24 	examinations must be evaluated and new cut scores adopted by the Board of Teaching 
52.25 	prior to January 1, 2016.
52.26 		Subd. 2.Standards of effective practice for beginning teachers. The Board 
52.27 	of Teaching must revise the Standards of Effective Practice for Beginning Teachers, 
52.28 	Minnesota Rules, part 8710.2000, to include broader preparation in technology, core 
52.29 	content areas, and research-based pedagogical best practices. The updated standards 
52.30 	must be adopted prior to July 1, 2011, and demonstrated by candidates for licensure 
52.31 	beginning January 1, 2015. Teacher licensure pedagogy examinations must be revised and 
52.32 	implemented by January 1, 2015.
53.1 		Subd. 3.Principal licensure. The Minnesota Board of School Administrators, 
53.2 	after consultation with interested parties, shall amend rules governing the licensure of 
53.3 	principals to include more rigorous standards for principals to be instructional leaders 
53.4 	in the principals' schools.

53.5 	Sec. 7. APPROPRIATIONS; DEPARTMENT OF EDUCATION.
 53.6 		Subdivision 1.Department of Education. Unless otherwise indicated, the sums 
53.7 	indicated in this section are appropriated from the general fund to the Department of 
53.8 	Education for the fiscal years designated.
53.9 		Subd. 2.Department. (a) For the Department of Education:

53.10		$
	21,448,000
	.....
	2010
	
53.11		$
	21,328,000
	.....
	2011
	
53.12 	Any balance in the first year does not cancel but is available in the second year.
53.13 	(b) $260,000 each year is for the Minnesota Children's Museum.
53.14 	(c) $41,000 each year is for the Minnesota Academy of Science.
53.15 	(d) $672,000 in fiscal year 2010 and $677,000 in fiscal year 2011 are for the Board 
53.16 	of Teaching; of this amount $40,000 in fiscal year 2010 and $45,000 in fiscal year 2011 are 
53.17 	for the implementation of licensing reforms under Minnesota Statutes, section 122A.09. 
53.18 	Any balance in the first year does not cancel but is available in the second year. The base 
53.19 	in fiscal year 2012 and later is $632,000.
53.20 	(e) $296,000 in fiscal year 2010 and $171,000 in fiscal year 2011 are for the Board 
53.21 	of School Administrators; of the fiscal year 2010 amount, $125,000 is for the purposes of 
53.22 	amending rules governing the licensure of principals. Any balance in the first year does 
53.23 	not cancel but is available in the second year.
53.24 	(f) The expenditures of federal grants and aids as shown in the biennial budget 
53.25 	document and its supplements are approved and appropriated and shall be spent as 
53.26 	indicated.
53.27 	(g) $40,000 each year is for an early hearing loss intervention coordinator under 
53.28 	Minnesota Statutes, section 125A.63, subdivision 5. If the department expends federal 
53.29 	funds to employ a hearing loss coordinator under Minnesota Statutes, section 125.63, 
53.30 	subdivision 5, then the appropriation under this paragraph is reallocated for purposes of 
53.31 	employing a world languages coordinator.
53.32 	(h) $50,000 each year is for the Duluth Children's Museum.
53.33 		Subd. 3.Board of Teaching; licensure by portfolio. For the Board of Teaching 
53.34 	for licensure by portfolio:

54.1		$
	17,000
	.....
	2010
	
54.2		$
	17,000
	.....
	2011
	
54.3 	This appropriation is from the educator licensure portfolio account of the special 
54.4 	revenue fund.

54.5 	Sec. 8. APPROPRIATIONS; MINNESOTA STATE ACADEMIES.
 54.6 	The sums indicated in this section are appropriated from the general fund to the 
54.7 	Minnesota State Academies for the Deaf and the Blind for the fiscal years designated:

54.8		$
	11,674,000
	.....
	2010
	
54.9		$
	11,674,000
	.....
	2011
	
54.10 	Any balance in the first year does not cancel but is available in the second year.

54.11 	Sec. 9. APPROPRIATIONS; PERPICH CENTER FOR ARTS EDUCATION.
 54.12 	The sums in this section are appropriated from the general fund to the Perpich 
54.13 	Center for Arts Education for the fiscal years designated:

54.14		$
	7,087,000
	.....
	2010
	
54.15		$
	2,825,000
	.....
	2011
	
54.16 	After the conclusion of the 2009-2010 school year, the fiscal year 2011 appropriation 
54.17 	is available for immediate transfer to the Department of Administration or Minnesota 
54.18 	Management and Budget in order to administer severance payments and oversee the 
54.19 	closing of the Perpich Center for Arts Education as a state agency.

54.20 	Sec. 10.  REPEALER.
 54.21 	Minnesota Statutes 2008, sections 129C.10, subdivisions 1, 2, 3, 3a, 4, 6, 7, and 8; 
54.22 	129C.105; 129C.15; 129C.20; 129C.25; and 129C.26, are repealed.

54.23 	ARTICLE 11
54.24 	PELRA

54.25 	Section 1. Minnesota Statutes 2008, section 179A.18, subdivision 2, is amended to 
54.26 	read:
54.27 		Subd. 2.School district requirements. Except as otherwise provided by section 
54.28 	179A.17, subdivision 1, Teachers employed by a local school district, other than principals 
54.29 	and assistant principals, may strike only under the following circumstances: if the 
54.30 	employer violates section 179A.13, subdivision 2, clause (9).
55.1 	(1)(i) the collective bargaining agreement between their exclusive representative and 
55.2 	their employer has expired or, if there is no agreement, impasse under section 179A.17, 
55.3 	subdivision 1, has occurred; and 
55.4 	(ii) the exclusive representative and the employer have participated in mediation 
55.5 	over a period of at least 30 days. For the purposes of this subclause the mediation period 
55.6 	commences on the day that a mediator designated by the commissioner first attends a 
55.7 	conference with the parties to negotiate the issues not agreed upon; and
55.8 	(iii) neither party has requested interest arbitration or a request for binding interest 
55.9 	arbitration has been rejected; or
55.10 	(2) the employer violates section 179A.13, subdivision 2, clause (9). 

55.11 	Sec. 2. [179A.50] TEACHER AND SCHOOL BOARD NEGOTIATIONS.
55.12 		Subdivision 1.Application. This section applies to negotiations between a local 
55.13 	school board and the exclusive representative of teachers and is effective for all collective 
55.14 	bargaining contracts effective on or after July 1, 2009.
55.15 		Subd. 2.Mediation. If, on July 1 of an odd-numbered year, the local school board 
55.16 	and exclusive representative of teachers have not agreed to the terms for a new contract, the 
55.17 	parties must enter mediation through the Bureau of Mediation Services. The commissioner 
55.18 	of the Bureau of Mediation Services shall assign a mediator. The parties must engage in 
55.19 	mediation for at least 45 days or until an agrement as to the terms for a new contract are 
55.20 	reached. Mediation must end on or before September 1 of the odd-numbered year.
55.21 		Subd. 3.Binding arbitration. If the school board and exclusive representative of 
55.22 	teachers have not executed a new contract by October 1 of the odd-numbered year, the 
55.23 	parties must certify the items in dispute to the commissioner of mediation services. If the 
55.24 	parties disagree on the items subject to arbitration, the commissioner must determine the 
55.25 	items to be decided. Arbitration is governed by section 179A.16, except that:
55.26 	(1) the arbitration shall be final-offer, total-package, interest-binding arbitration;
55.27 	(2) participation is mandatory;
55.28 	(3) the results are binding on both parties; 
55.29 	(4) the arbitrator shall consider, in addition to any other relevant factors, the 
55.30 	following factors:
55.31 	(i) past collective bargaining contracts between the parties including the bargaining 
55.32 	that led up to such contracts;
55.33 	(ii) comparison of wages, hours, and conditions of employment of comparable 
55.34 	public employees doing comparable work;
55.35 	(iii) the interests and welfare of the public; and
56.1 	(iv) the ability or inability of the board to finance the arbitration award; and
56.2 	(5) the arbitrator must issue a final decision no later than December 1 of the 
56.3 	odd-numbered year.

56.4 	Sec. 3.  REPEALER.
 56.5 	Minnesota Statutes 2008, section 179A.17, subdivision 1, is repealed.