1.2relating to education; providing for policy and funding for family, adult, and
1.3prekindergarten through grade 12 education, including general education,
1.4academic excellence, special programs, facilities and technology, accounting
1.5and nutrition, libraries, early childhood education, prevention, self-sufficiency
1.6and lifelong learning, student transportation, state agencies, and forecast
1.7adjustments; requiring reports; appropriating money;amending Minnesota
1.8Statutes 2010, sections 11A.16, subdivision 5; 13D.02, by adding a subdivision;
1.916A.152, subdivision 2; 119A.50, subdivision 3; 120A.24; 120A.41; 120B.023,
1.10subdivision 2; 120B.07; 120B.12; 120B.30, subdivisions 1, 3, 4; 120B.31,
1.11subdivision 4; 120B.36, subdivisions 1, 2; 121A.15, subdivision 8, as amended;
1.12122A.09, subdivision 4, as amended; 122A.16, as amended; 122A.40,
1.13subdivisions 5, 6, 8, 9; 122A.41, subdivisions 1, 2, 3, 5, 6; 123A.55; 123B.143,
1.14subdivision 1; 123B.147, subdivision 3; 123B.41, subdivisions 2, 5; 123B.54;
1.15123B.57; 123B.63, subdivision 3; 123B.71, subdivision 5; 123B.72, subdivision
1.163; 123B.75, subdivision 5; 123B.88, subdivision 13, by adding a subdivision;
1.17123B.92, subdivisions 1, as amended, 5; 124D.09, subdivisions 5, 7, 8;
1.18124D.091, subdivision 2; 124D.10, as amended; 124D.11, subdivisions 4, 9;
1.19124D.19, subdivision 3; 124D.36; 124D.37; 124D.38, subdivision 3; 124D.385,
1.20subdivision 3; 124D.39; 124D.40; 124D.42; 124D.44; 124D.45, subdivision 2;
1.21124D.4531, subdivision 1; 124D.531, subdivisions 1, 4; 124D.59, subdivision
1.222; 125A.02, subdivision 1; 125A.0942, subdivision 3; 125A.15; 125A.21,
1.23subdivisions 2, 3, 5, 7; 125A.51; 125A.515, by adding a subdivision; 125A.69,
1.24subdivision 1; 125A.79, subdivision 1; 126C.10, subdivisions 1, 2, 8a, 14, by
1.25adding a subdivision; 126C.126; 126C.15, subdivision 2; 126C.20; 126C.40,
1.26subdivision 1; 126C.41, subdivision 2; 126C.44; 126C.50; 127A.33; 127A.42,
1.27subdivision 2; 127A.43; 127A.441; 127A.45, subdivisions 2, 3, 6a, by adding a
1.28subdivision; 134.195, subdivision 8; 171.05, subdivision 2; 171.17, subdivision
1.291; 171.22, subdivision 1; Laws 1999, chapter 241, article 4, section 25, by adding
1.30a subdivision; Laws 2009, chapter 96, article 1, section 24, subdivisions 2, as
1.31amended, 3, 4, as amended, 5, as amended, 6, as amended, 7, as amended; article
1.322, section 67, subdivisions 2, as amended, 3, as amended, 4, as amended, 6, 9, as
1.33amended; article 3, section 21, subdivisions 3, 4, as amended; article 4, section
1.3412, subdivision 6, as amended; article 5, section 13, subdivisions 2, 3, 4, as
1.35amended; article 6, section 11, subdivisions 3, as amended, 4, as amended, 8, as
1.36amended, 12, as amended; proposing coding for new law in Minnesota Statutes,
1.37chapters 120B; 124D; repealing Minnesota Statutes 2010, sections 120A.26,
1.38subdivisions 1, 2; 123B.05; 124D.11, subdivision 8; 124D.38, subdivisions 4, 5,
2.16; 124D.86; 124D.871; 124D.88; 125A.54; 126C.10, subdivision 5; 126C.457;
2.2127A.46.
2.3BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:


2.6    Section 1. Minnesota Statutes 2010, section 11A.16, subdivision 5, is amended to read:
2.7    Subd. 5. Calculation of income. As of the end of each fiscal year, the state
2.8board shall calculate the investment income earned by the permanent school fund. The
2.9investment income earned by the fund shall equal the amount of interest on debt securities
2.10and, dividends on equity securities, and interest earned on certified monthly earnings prior
2.11to the transfer to the Department of Education. Gains and losses arising from the sale of
2.12securities shall be apportioned as follows:
2.13(a) If the sale of securities results in a net gain during a fiscal year, the gain shall
2.14be apportioned in equal installments over the next ten fiscal years to offset net losses in
2.15those years. If any portion of an installment is not needed to recover subsequent losses
2.16identified in paragraph (b) it shall be added to the principal of the fund.
2.17(b) If the sale of securities results in a net loss during a fiscal year, the net loss shall
2.18be recovered first from the gains in paragraph (a) apportioned to that fiscal year. If these
2.19gains are insufficient, any remaining net loss shall be recovered from interest and dividend
2.20income in equal installments over the following ten fiscal years.

2.21    Sec. 2. Minnesota Statutes 2010, section 120A.24, is amended to read:
2.22120A.24 REPORTING.
2.23    Subdivision 1. Reports to superintendent. (a) The person in charge of providing
2.24instruction to a child must submit the following information to the superintendent of the
2.25district in which the child resides the name, birth date, and address of the child; the annual
2.26tests intended to be used under section 120A.22, subdivision 11, if required; the name of
2.27each instructor; and evidence of compliance with one of the requirements specified in
2.28section 120A.22, subdivision 10:
2.29(1) by October 1 of each the first school year, the name, birth date, and address
2.30of each child receiving instruction the child receives instruction after reaching the age
2.31of seven;
2.32(2) the name of each instructor and evidence of compliance with one of the
2.33requirements specified in section 120A.22, subdivision 10;
2.34(3) an annual instructional calendar; and
3.1(4) for each child instructed by a parent who meets only the requirement of section
3.2120A.22, subdivision 10, clause (6), a quarterly report card on the achievement of the
3.3child in each subject area required in section 120A.22, subdivision 9.
3.4(2) within 15 days of when a parent withdraws a child from public school after
3.5age seven to homeschool;
3.6(3) within 15 days of moving out of a district; and
3.7(4) by October 1 after a new resident district is established.
3.8(b) The person in charge of providing instruction to a child between the ages of
3.9seven and 16 must submit, by October 1 of each school year, a letter of intent to continue
3.10to provide instruction under this section for all students under the person's supervision and
3.11any changes to the information required in paragraph (a) for each student.
3.12(c) The superintendent may collect the required information under this section
3.13through an electronic or Web-based format, but must not require electronic submission
3.14of information under this section from the person in charge of reporting under this
3.15subdivision.
3.16    Subd. 2. Availability of documentation. (a) The person in charge of providing
3.17instruction to a child must make available maintain documentation indicating that the
3.18subjects required in section 120A.22, subdivision 9, are being taught and proof that the
3.19tests under section 120A.22, subdivision 11, have been administered. This documentation
3.20must include class schedules, copies of materials used for instruction, and descriptions of
3.21methods used to assess student achievement.
3.22(b) The parent of a child who enrolls full time in public school after having been
3.23enrolled in a home school under section 120A.22, subdivision 6, must provide the
3.24enrolling public school or school district with the child's scores on any tests administered
3.25to the child under section 120A.22, subdivision 11, and other education-related documents
3.26the enrolling school or district requires to determine where the child is placed in school
3.27and what course requirements apply. This paragraph does not apply to a shared time
3.28student who does not seek a public school diploma.
3.29(c) The person in charge of providing instruction to a child must make the
3.30documentation in this subdivision available to the county attorney when a case is
3.31commenced under section 120A.26, subdivision 5; chapter 260C; or when diverted under
3.32chapter 260A.
3.33    Subd. 3. Exemptions. A nonpublic school, person, or other institution that is
3.34accredited by an accrediting agency, recognized according to section 123B.445, or
3.35recognized by the commissioner, is exempt from the requirements in subdivisions 1 and
3.36subdivision 2, except for the requirement in subdivision 1, clause (1).
4.1    Subd. 4. Reports to the state. A superintendent must make an annual report to the
4.2commissioner of education by December 1 of the total number of nonpublic children
4.3reported as residing in the district. The report must include the following information:
4.4(1) the number of children residing in the district attending nonpublic schools or
4.5receiving instruction from persons or institutions other than a public school;
4.6(2) the number of children in clause (1) who are in compliance with section 120A.22
4.7and this section; and
4.8(3) the number of children in clause (1) who the superintendent has determined are
4.9not in compliance with section 120A.22 and this section.
4.10    Subd. 5. Obligations. Nothing in this section alleviates the obligations under
4.11section 120A.22.

4.12    Sec. 3. Minnesota Statutes 2010, section 120A.41, is amended to read:
4.13120A.41 LENGTH OF SCHOOL YEAR; DAYS HOURS OF INSTRUCTION.
4.14A school board's annual school calendar must include at least the number of days of
4.15student instruction the board formally adopted as its school calendar at the beginning of
4.16the 1996-1997 school year 425 hours of instruction for a kindergarten student without a
4.17disability, 935 hours of instruction for a student in grades 1 though 6, and 1,020 hours of
4.18instruction for a student in grades 7 though 12, not including summer school. Nothing in
4.19this section permits a school district to adopt a four-day week schedule unless approved by
4.20the commissioner under section 124D.126.
4.21EFFECTIVE DATE.This section is effective July 1, 2012.

4.22    Sec. 4. Minnesota Statutes 2010, section 120B.07, is amended to read:
4.23120B.07 EARLY GRADUATION.
4.24(a) Notwithstanding any law to the contrary, any secondary school student who has
4.25completed all required courses or standards may, with the approval of the student, the
4.26student's parent or guardian, and local school officials, graduate before the completion
4.27of the school year.
4.28(b) General education revenue attributable to the student must be paid as though
4.29the student was in attendance for the entire year unless the student participates in the
4.30early graduation achievement scholarship program under section 120B.08 or the early
4.31graduation military service award program under section 120B.081.

5.1    Sec. 5. [120B.08] EARLY GRADUATION ACHIEVEMENT SCHOLARSHIP
5.2PROGRAM.
5.3    Subdivision 1. Participation. A student who qualifies for early graduation under
5.4section 120B.07 is eligible to participate in the early graduation achievement scholarship
5.5program.
5.6    Subd. 2. Scholarship amounts. A student who participates in the early graduation
5.7achievement scholarship program is eligible for a scholarship of $2,500 if the student
5.8qualifies for graduation one semester or two trimesters early, $5,000 if the student qualifies
5.9for graduation two semesters or three or four trimesters early, or $7,500 if the student
5.10qualifies for graduation three or more semesters or five or more trimesters early.
5.11    Subd. 3. Scholarship uses. An early graduation achievement scholarship may be
5.12used at any accredited institution of higher education.
5.13    Subd. 4. Application. A qualifying student may apply to the commissioner of
5.14education for an early graduation achievement scholarship. The application must be in
5.15the form and manner specified by the commissioner. Upon verification of the qualifying
5.16student's course completion necessary for graduation, the department must issue the
5.17student a certificate showing the student's scholarship amount.
5.18    Subd. 5. Enrollment verification. A student who qualifies under this section
5.19and enrolls in an accredited higher education institution must submit a form to the
5.20commissioner verifying the student's enrollment in the higher education institution and the
5.21tuition charges for that semester. Within 15 days of receipt of a student's enrollment and
5.22tuition verification form, the commissioner must issue a scholarship check to the student in
5.23the lesser of the tuition amount for that semester or the maximum amount of the student's
5.24early graduation achievement scholarship. A student may continue to submit enrollment
5.25verification forms to the commissioner until the student has used the full amount of the
5.26student's graduation achievement scholarship.
5.27    Subd. 6. General education money transferred. The commissioner must transfer
5.28the amounts necessary to fund the early graduation achievement scholarships from the
5.29general education aid appropriation for that year.
5.30EFFECTIVE DATE.This section is effective for fiscal year 2012 and later.

5.31    Sec. 6. [120B.081] EARLY GRADUATION MILITARY SERVICE AWARD
5.32PROGRAM.
5.33    Subdivision 1. Eligibility. For purposes of this section, "eligible person" means
5.34a secondary student enrolled in any Minnesota public school who qualifies for early
5.35graduation under section 120B.07 and who, before the end of the calendar year of the
6.1student's graduation, enters into active service in either the active or reserve component
6.2of the United States armed forces and deploys for 60 days or longer to a military base or
6.3installation outside Minnesota for the purpose of attending basic military training or
6.4military school and, if required by the military, performing other military duty. The active
6.5service may be in accordance with United States Code, title 10 or title 32.
6.6    Subd. 2. Application. An eligible person may apply to the commissioner of
6.7education for an early graduation military service bonus. The application must be in the
6.8form and manner specified by the commissioner.
6.9    Subd. 3. Verification and award. Upon verification of the qualifying student's
6.10course completion necessary for graduation and eligibility for the military service
6.11bonus, the commissioner must issue payment to that person. Payment amounts must be
6.12determined according to section 120B.08, subdivision 2.
6.13EFFECTIVE DATE.This section is effective for fiscal year 2012 and later.

6.14    Sec. 7. Minnesota Statutes 2010, section 121A.15, subdivision 8, as amended by Laws
6.152011, chapter 76, article 1, section 12, is amended to read:
6.16    Subd. 8. Report. The administrator or other person having general control and
6.17supervision of the elementary or secondary school shall file a report with the commissioner
6.18on all persons enrolled in the school. The superintendent of each district shall file a report
6.19with the commissioner for all persons within the district receiving instruction in a home
6.20school in compliance with sections 120A.22 and 120A.24. The parent of persons receiving
6.21instruction in a home school shall submit the statements as required by subdivisions 1, 2,
6.223, and 4, and 12 to the superintendent of the district in which the person resides by October
6.231 of each school year the first year of their homeschooling in Minnesota and the grade 7
6.24year. The school report must be prepared on forms developed jointly by the commissioner
6.25of health and the commissioner of education and be distributed to the local districts by the
6.26commissioner of health. The school report must state the number of persons attending the
6.27school, the number of persons who have not been immunized according to subdivision 1 or
6.282, and the number of persons who received an exemption under subdivision 3, clause (c)
6.29or (d). The school report must be filed with the commissioner of education within 60 days
6.30of the commencement of each new school term. Upon request, a district must be given a
6.3160-day extension for filing the school report. The commissioner of education shall forward
6.32the report, or a copy thereof, to the commissioner of health who shall provide summary
6.33reports to boards of health as defined in section 145A.02, subdivision 2. The administrator
6.34or other person having general control and supervision of the child care facility shall file a
6.35report with the commissioner of human services on all persons enrolled in the child care
7.1facility. The child care facility report must be prepared on forms developed jointly by
7.2the commissioner of health and the commissioner of human services and be distributed
7.3to child care facilities by the commissioner of health. The child care facility report
7.4must state the number of persons enrolled in the facility, the number of persons with no
7.5immunizations, the number of persons who received an exemption under subdivision 3,
7.6clause (c) or (d), and the number of persons with partial or full immunization histories.
7.7The child care facility report must be filed with the commissioner of human services by
7.8November 1 of each year. The commissioner of human services shall forward the report,
7.9or a copy thereof, to the commissioner of health who shall provide summary reports to
7.10boards of health as defined in section 145A.02, subdivision 2. The report required by this
7.11subdivision is not required of a family child care or group family child care facility, for
7.12prekindergarten children enrolled in any elementary or secondary school provided services
7.13according to sections 125A.03 and 125A.06, nor for child care facilities in which at least
7.1475 percent of children in the facility participate on a onetime only or occasional basis to a
7.15maximum of 45 hours per child, per month.

7.16    Sec. 8. Minnesota Statutes 2010, section 123A.55, is amended to read:
7.17123A.55 CLASSES, NUMBER.
7.18Districts shall be classified as common, independent, or special, or charter districts,.
7.19Each of which common, independent, and special district is a public corporation. Each
7.20district shall be known by its classification and assigned a number by the commissioner so
7.21that its title will be .......... School District No. ......
7.22EFFECTIVE DATE.This section is effective March 1, 2012, and later.

7.23    Sec. 9. Minnesota Statutes 2010, section 123B.41, subdivision 2, is amended to read:
7.24    Subd. 2. Textbook. "Textbook" means any book or book substitute, including
7.25electronic books as well as other printed materials delivered electronically, which a
7.26pupil uses as a text or text substitute in a particular class or program in the school
7.27regularly attended and a copy of which is expected to be available for the individual use
7.28of each pupil in this class or program. The term shall be limited to books, workbooks,
7.29or manuals, whether bound or in loose-leaf form, as well as electronic books and other
7.30printed materials delivered electronically, intended for use as a principal source of study
7.31material for a given class or a group of students. The term includes only such secular,
7.32neutral and nonideological textbooks as are available, used by, or of benefit to Minnesota
7.33public school pupils.

8.1    Sec. 10. Minnesota Statutes 2010, section 123B.41, subdivision 5, is amended to read:
8.2    Subd. 5. Individualized instructional or cooperative learning materials.
8.3"Individualized instructional or cooperative learning materials" means educational
8.4materials which:
8.5(a) are designed primarily for individual pupil use or use by pupils in a cooperative
8.6learning group in a particular class or program in the school the pupil regularly attends;
8.7(b) are secular, neutral, nonideological and not capable of diversion for religious
8.8use; and
8.9(c) are available, used by, or of benefit to Minnesota public school pupils.
8.10Subject to the requirements in clauses (a), (b), and (c), "individualized instructional
8.11or cooperative learning materials" include, but are not limited to, the following if they
8.12do not fall within the definition of "textbook" in subdivision 2: published materials;
8.13periodicals; documents; pamphlets; photographs; reproductions; pictorial or graphic
8.14works; prerecorded video programs; prerecorded tapes, cassettes and other sound
8.15recordings; manipulative materials; desk charts; games; study prints and pictures; desk
8.16maps; models; learning kits; blocks or cubes; flash cards; individualized multimedia
8.17systems; prepared instructional computer software programs; choral and band sheet music;
8.18electronic books and other printed materials delivered electronically; and CD-Rom.
8.19"Individualized instructional or cooperative learning materials" do not include
8.20instructional equipment, instructional hardware, or ordinary daily consumable classroom
8.21supplies.

8.22    Sec. 11. Minnesota Statutes 2010, section 123B.63, subdivision 3, is amended to read:
8.23    Subd. 3. Capital project levy referendum. A district may levy the local tax
8.24rate approved by a majority of the electors voting on the question to provide funds for
8.25an approved project. The election must take place no more than five years before the
8.26estimated date of commencement of the project. The referendum must be held on a date
8.27set by the board. A district must meet the requirements of section 123B.71 for projects
8.28funded under this section. If a review and comment is required under section 123B.71,
8.29subdivision 8, a referendum for a project not receiving a positive review and comment by
8.30the commissioner under section 123B.71 must be approved by at least 60 percent of the
8.31voters at the election. The referendum may be called by the school board and may be held:
8.32    (1) separately, before an election for the issuance of obligations for the project
8.33under chapter 475; or
8.34    (2) in conjunction with an election for the issuance of obligations for the project
8.35under chapter 475; or
9.1    (3) notwithstanding section 475.59, as a conjunctive question authorizing both the
9.2capital project levy and the issuance of obligations for the project under chapter 475. Any
9.3obligations authorized for a project may be issued within five years of the date of the
9.4election.
9.5    The ballot must provide a general description of the proposed project, state the
9.6estimated total cost of the project, state whether the project has received a positive or
9.7negative review and comment from the commissioner, state the maximum amount of the
9.8capital project levy as a percentage of net tax capacity, state the amount that will be raised
9.9by that local tax rate in the first year it is to be levied, and state the maximum number of
9.10years that the levy authorization will apply.
9.11    The ballot must contain a textual portion with the information required in this
9.12section and a question stating substantially the following:
9.13    "Shall the capital project levy proposed by the board of .......... School District
9.14No. .......... be approved?"
9.15    If approved, the amount provided by the approved local tax rate applied to the net
9.16tax capacity for the year preceding the year the levy is certified may be certified for the
9.17number of years, not to exceed ten, approved.
9.18    In the event a conjunctive question proposes to authorize both the capital project
9.19levy and the issuance of obligations for the project, appropriate language authorizing the
9.20issuance of obligations must also be included in the question.
9.21    The district must notify the commissioner of the results of the referendum.

9.22    Sec. 12. Minnesota Statutes 2010, section 123B.75, subdivision 5, is amended to read:
9.23    Subd. 5. Levy recognition. (a) For fiscal years 2009 and 2010, in June of each
9.24year, the school district must recognize as revenue, in the fund for which the levy was
9.25made, the lesser of:
9.26(1) the sum of May, June, and July school district tax settlement revenue received in
9.27that calendar year, plus general education aid according to section 126C.13, subdivision
9.284 , received in July and August of that calendar year; or
9.29(2) the sum of:
9.30(i) 31 percent of the referendum levy certified according to section 126C.17, in
9.31calendar year 2000; and
9.32(ii) the entire amount of the levy certified in the prior calendar year according to
9.33section 124D.86, subdivision 4, for school districts receiving revenue under sections
9.34124D.86, subdivision 3 , clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, paragraph
10.1(a), and 3 , paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48,
10.2subdivision 6 ; plus
10.3(iii) zero percent of the amount of the levy certified in the prior calendar year for the
10.4school district's general and community service funds, plus or minus auditor's adjustments,
10.5not including the levy portions that are assumed by the state, that remains after subtracting
10.6the referendum levy certified according to section 126C.17 and the amount recognized
10.7according to item (ii).
10.8(b) For fiscal year 2011 and later years, in June of each year, the school district must
10.9recognize as revenue, in the fund for which the levy was made, the lesser of:
10.10(1) the sum of May, June, and July school district tax settlement revenue received in
10.11that calendar year, plus general education aid according to section 126C.13, subdivision
10.124, received in July and August of that calendar year; or
10.13(2) the sum of:
10.14(i) the greater of 48.6 percent of the referendum levy certified according to section
10.15126C.17 in the prior calendar year, or 31 percent of the referendum levy certified
10.16according to section 126C.17 in calendar year 2000; plus
10.17(ii) the entire amount of the levy certified in the prior calendar year according to
10.18section 124D.4531, 124D.86, subdivision 4, for school districts receiving revenue under
10.19sections 124D.86, subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 1, 2,
10.20paragraph (a), and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457;
10.21and 126C.48, subdivision 6; plus
10.22(iii) 48.6 percent of the amount of the levy certified in the prior calendar year for the
10.23school district's general and community service funds, plus or minus auditor's adjustments,
10.24not including the levy portions that are assumed by the state, that remains after subtracting
10.25the referendum levy certified according to section 126C.17 and the amount recognized
10.26according to item (ii).

10.27    Sec. 13. Minnesota Statutes 2010, section 124D.59, subdivision 2, is amended to read:
10.28    Subd. 2. Pupil of limited English proficiency. (a) "Pupil of limited English
10.29proficiency" means a pupil in kindergarten through grade 12 who meets the following
10.30requirements:
10.31(1) the pupil, as declared by a parent or guardian first learned a language other than
10.32English, comes from a home where the language usually spoken is other than English, or
10.33usually speaks a language other than English; and
10.34(2) the pupil is determined by developmentally appropriate measures, which might
10.35include observations, teacher judgment, parent recommendations, or developmentally
11.1appropriate assessment instruments, to lack the necessary English skills to participate
11.2fully in classes taught in English.
11.3(b) Notwithstanding paragraph (a), a pupil in grades 4 through 12 who was enrolled
11.4in a Minnesota public school on the dates during the previous school year when a
11.5commissioner provided assessment that measures the pupil's emerging academic English
11.6was administered, shall not be counted as a pupil of limited English proficiency in
11.7calculating limited English proficiency pupil units under section 126C.05, subdivision
11.817 , and shall not generate state limited English proficiency aid under section 124D.65,
11.9subdivision 5 , unless the pupil scored below the state cutoff score or is otherwise counted
11.10as a nonproficient participant on an assessment measuring emerging academic English
11.11provided by the commissioner during the previous school year.
11.12(c) Notwithstanding paragraphs (a) and (b), a pupil in kindergarten through grade 12
11.13shall not be counted as a pupil of limited English proficiency in calculating limited English
11.14proficiency pupil units under section 126C.05, subdivision 17, and shall not generate state
11.15limited English proficiency aid under section 124D.65, subdivision 5, if:
11.16(1) the pupil is not enrolled during the current fiscal year in an educational program
11.17for pupils of limited English proficiency in accordance with sections 124D.58 to 124D.64;
11.18or
11.19(2) the pupil has generated five or more years of average daily membership in
11.20Minnesota public schools since July 1, 1996.

11.21    Sec. 14. Minnesota Statutes 2010, section 125A.79, subdivision 1, is amended to read:
11.22    Subdivision 1. Definitions. For the purposes of this section, the definitions in this
11.23subdivision apply.
11.24    (a) "Unreimbursed special education cost" means the sum of the following:
11.25    (1) expenditures for teachers' salaries, contracted services, supplies, equipment, and
11.26transportation services eligible for revenue under section 125A.76; plus
11.27    (2) expenditures for tuition bills received under sections 125A.03 to 125A.24 and
11.28125A.65 for services eligible for revenue under section 125A.76, subdivision 2; minus
11.29    (3) revenue for teachers' salaries, contracted services, supplies, equipment, and
11.30transportation services under section 125A.76; minus
11.31    (4) tuition receipts under sections 125A.03 to 125A.24 and 125A.65 for services
11.32eligible for revenue under section 125A.76, subdivision 2.
11.33    (b) "General revenue" for a school district means the sum of the general education
11.34revenue according to section 126C.10, subdivision 1, excluding alternative teacher
11.35compensation revenue, plus the total qualifying referendum revenue specified in paragraph
12.1(e) minus transportation sparsity revenue minus total operating capital revenue. "General
12.2revenue" for a charter school means the sum of the general education revenue according to
12.3section 124D.11, subdivision 1, and transportation revenue according to section 124D.11,
12.4subdivision 2, excluding alternative teacher compensation revenue, minus referendum
12.5equalization aid minus transportation sparsity revenue minus operating capital revenue.
12.6    (c) "Average daily membership" has the meaning given it in section 126C.05.
12.7    (d) "Program growth factor" means 1.02 for fiscal year 2012 and later.
12.8    (e) "Total qualifying referendum revenue" means two-thirds of the district's total
12.9referendum revenue as adjusted according to section 127A.47, subdivision 7, paragraphs
12.10(a) to (c), for fiscal year 2006, one-third of the district's total referendum revenue for fiscal
12.11year 2007, and none of the district's total referendum revenue for fiscal year 2008 and later.

12.12    Sec. 15. Minnesota Statutes 2010, section 126C.10, subdivision 1, is amended to read:
12.13    Subdivision 1. General education revenue. For fiscal year 2006 and later, The
12.14general education revenue for each district equals the sum of the district's basic revenue,
12.15extended time revenue, gifted and talented revenue, small schools revenue, basic skills
12.16revenue, training and experience revenue, secondary sparsity revenue, elementary sparsity
12.17revenue, transportation sparsity revenue, total operating capital revenue, equity revenue,
12.18alternative teacher compensation revenue, and transition revenue.
12.19EFFECTIVE DATE.This section is effective for fiscal year 2013 and later.

12.20    Sec. 16. Minnesota Statutes 2010, section 126C.10, subdivision 2, is amended to read:
12.21    Subd. 2. Basic revenue. The basic revenue for each district equals the formula
12.22allowance times the adjusted marginal cost pupil units for the school year. The formula
12.23allowance for fiscal year 2007 is $4,974 2011 is $5,124. The formula allowance for fiscal
12.24year 2008 is $5,074 and 2012 is $5,174. The formula allowance for fiscal year 2009
12.252013 and subsequent years is $5,124 $5,224.
12.26EFFECTIVE DATE.This section is effective for revenue for fiscal year 2012
12.27and later.

12.28    Sec. 17. Minnesota Statutes 2010, section 126C.10, is amended by adding a
12.29subdivision to read:
12.30    Subd. 2c. Small schools revenue. A school district, not including a charter school,
12.31is eligible for small schools revenue equal to the product of:
12.32(1) $5,224;
13.1(2) the district's adjusted marginal cost pupil units for that year;
13.2(3) the greater of zero or the ratio of (i) 1,000 less the district's adjusted marginal
13.3cost pupil units for that year, to (ii) 1,000; and
13.4(4) 0.10.
13.5EFFECTIVE DATE.This section is effective for revenue for fiscal year 2013
13.6and later.

13.7    Sec. 18. Minnesota Statutes 2010, section 126C.10, subdivision 8a, is amended to read:
13.8    Subd. 8a. Sparsity revenue for school districts that close facilities. A school
13.9district that closes a school facility or whose sparsity revenue is reduced by a school
13.10closure in another district is eligible for elementary and secondary sparsity revenue equal
13.11to the greater of the amounts calculated under subdivisions 6, 7, and 8 or the total amount
13.12of sparsity revenue for the previous fiscal year if the school board of the district has
13.13adopted a written resolution stating that the district intends to close the school facility, but
13.14cannot proceed with the closure without the adjustment to sparsity revenue authorized by
13.15this subdivision. The written resolution must be approved by the board and filed with the
13.16commissioner of education at least 60 days prior to the start of the fiscal year for which
13.17aid under this subdivision is first requested. A school district whose sparsity revenue
13.18is affected by a closure in another district is not required to adopt a written resolution
13.19under this section.
13.20EFFECTIVE DATE.This section is effective for board resolutions approved by
13.21the school board in fiscal year 2011 and later for sparsity revenue calculations in fiscal
13.22year 2012 and later.

13.23    Sec. 19. Minnesota Statutes 2010, section 126C.10, subdivision 14, is amended to read:
13.24    Subd. 14. Uses of total operating capital revenue. Total operating capital revenue
13.25may be used only for the following purposes:
13.26(1) to acquire land for school purposes;
13.27(2) to acquire or construct buildings for school purposes;
13.28(3) to rent or lease buildings, including the costs of building repair or improvement
13.29that are part of a lease agreement;
13.30(4) to improve and repair school sites and buildings, and equip or reequip school
13.31buildings with permanent attached fixtures, including library media centers;
13.32(5) for a surplus school building that is used substantially for a public nonschool
13.33purpose;
14.1(6) to eliminate barriers or increase access to school buildings by individuals with a
14.2disability;
14.3(7) to bring school buildings into compliance with the State Fire Code adopted
14.4according to chapter 299F;
14.5(8) to remove asbestos from school buildings, encapsulate asbestos, or make
14.6asbestos-related repairs;
14.7(9) to clean up and dispose of polychlorinated biphenyls found in school buildings;
14.8(10) to clean up, remove, dispose of, and make repairs related to storing heating fuel
14.9or transportation fuels such as alcohol, gasoline, fuel oil, and special fuel, as defined
14.10in section 296A.01;
14.11(11) for energy audits for school buildings and to modify buildings if the audit
14.12indicates the cost of the modification can be recovered within ten years;
14.13(12) to improve buildings that are leased according to section 123B.51, subdivision 4;
14.14(13) to pay special assessments levied against school property but not to pay
14.15assessments for service charges;
14.16(14) to pay principal and interest on state loans for energy conservation according to
14.17section 216C.37 or loans made under the Douglas J. Johnson Economic Protection Trust
14.18Fund Act according to sections 298.292 to 298.298;
14.19(15) to purchase or lease interactive telecommunications equipment;
14.20(16) by board resolution, to transfer money into the debt redemption fund to: (i)
14.21pay the amounts needed to meet, when due, principal and interest payments on certain
14.22obligations issued according to chapter 475; or (ii) pay principal and interest on debt
14.23service loans or capital loans according to section 126C.70;
14.24(17) to pay operating capital-related assessments of any entity formed under a
14.25cooperative agreement between two or more districts;
14.26(18) to purchase or lease computers and related materials, copying machines,
14.27telecommunications equipment, and other noninstructional equipment;
14.28(19) to purchase or lease assistive technology or equipment for instructional
14.29programs;
14.30(20) to purchase textbooks;
14.31(21) to purchase new and replacement library media resources or technology;
14.32(22) to lease or purchase vehicles;
14.33(23) to purchase or lease telecommunications equipment, computers, and related
14.34equipment for integrated information management systems for:
14.35(i) managing and reporting learner outcome information for all students under a
14.36results-oriented graduation rule;
15.1(ii) managing student assessment, services, and achievement information required
15.2for students with individual education plans; and
15.3(iii) other classroom information management needs; and
15.4(24) to pay personnel costs directly related to the acquisition, operation, and
15.5maintenance of telecommunications systems, computers, related equipment, and network
15.6and applications software; and
15.7(25) to pay the costs directly associated with closing a school facility, including
15.8moving and storage costs.

15.9    Sec. 20. Minnesota Statutes 2010, section 126C.126, is amended to read:
15.10126C.126 REALLOCATING GENERAL EDUCATION REVENUE FOR
15.11ALL-DAY KINDERGARTEN AND PREKINDERGARTEN.
15.12    (a) In order to provide additional revenue for an optional all-day kindergarten
15.13program, a district may reallocate general education revenue attributable to 12th grade
15.14students who have graduated early under section 120B.07 and who do not participate in
15.15the early graduation achievement scholarship program under section 120B.08 or the early
15.16graduation military service award program under section 120B.081.
15.17    (b) A school district may spend general education revenue on extended time
15.18kindergarten and prekindergarten programs.
15.19EFFECTIVE DATE.This section is effective for fiscal year 2012 and later.

15.20    Sec. 21. Minnesota Statutes 2010, section 126C.15, subdivision 2, is amended to read:
15.21    Subd. 2. Building allocation. (a) A district or cooperative must allocate its
15.22compensatory revenue to each school building in the district or cooperative where
15.23the children who have generated the revenue are served unless the school district or
15.24cooperative has received permission under Laws 2005, First Special Session chapter 5,
15.25article 1, section 50, to allocate compensatory revenue according to student performance
15.26measures developed by the school board.
15.27    (b) Notwithstanding paragraph (a), a district or cooperative may allocate up to
15.28five percent of the amount of compensatory revenue that the district receives to school
15.29sites according to a plan adopted by the school board. The money reallocated under
15.30this paragraph must be spent for the purposes listed in subdivision 1, but may be
15.31spent on students in any grade, including students attending school readiness or other
15.32prekindergarten programs.
16.1    (c) For the purposes of this section and section 126C.05, subdivision 3, "building"
16.2means education site as defined in section 123B.04, subdivision 1.
16.3    (d) Notwithstanding section 123A.26, subdivision 1, compensatory revenue
16.4generated by students served at a cooperative unit shall be paid to the cooperative unit.
16.5    (e) A district or cooperative with school building openings, school building
16.6closings, changes in attendance area boundaries, or other changes in programs or student
16.7demographics between the prior year and the current year may reallocate compensatory
16.8revenue among sites to reflect these changes. A district or cooperative must report to the
16.9department any adjustments it makes according to this paragraph and the department must
16.10use the adjusted compensatory revenue allocations in preparing the report required under
16.11section 123B.76, subdivision 3, paragraph (c).

16.12    Sec. 22. Minnesota Statutes 2010, section 126C.20, is amended to read:
16.13126C.20 ANNUAL GENERAL EDUCATION AID APPROPRIATION.
16.14There is annually appropriated from the general fund to the department the
16.15amount necessary for general education aid under section 126C.13, the early graduation
16.16achievement scholarship program under section 120B.08, and the early graduation
16.17military service award program under section 120B.081. This amount must be reduced
16.18by the amount of any money specifically appropriated for the same purpose in any year
16.19from any state fund.
16.20EFFECTIVE DATE.This section is effective for fiscal year 2012 and later.

16.21    Sec. 23. Minnesota Statutes 2010, section 126C.41, subdivision 2, is amended to read:
16.22    Subd. 2. Retired employee health benefits. (a) A district may levy an amount up
16.23to the amount the district is required by the collective bargaining agreement in effect
16.24on March 30, 1992, to pay for health insurance or unreimbursed medical expenses for
16.25licensed and nonlicensed employees who have terminated services in the employing
16.26district and withdrawn from active teaching service or other active service, as applicable,
16.27before July 1, 1992, and to pay for health insurance or unreimbursed medical expenses
16.28for licensed and nonlicensed employees who have terminated services in the employing
16.29district and withdrawn from active teaching service or other active service, as applicable
16.30before July 1, 1998, only if a sunset clause is in effect for the current collective bargaining
16.31agreement. The total amount of the levy each year may not exceed $600,000.
16.32(b) In addition to the levy authority granted under paragraph (a), a school district
16.33may levy for other postemployment benefits expenses actually paid during the previous
17.1fiscal year. For purposes of this subdivision, "postemployment benefits" means benefits
17.2giving rise to a liability under Statement No. 45 of the Government Accounting Standards
17.3Board. A district seeking levy authority under this subdivision must:
17.4(1) create or have created an actuarial liability to pay postemployment benefits to
17.5employees or officers after their termination of service;
17.6(2) have a sunset clause in effect for the current collective bargaining agreement as
17.7required by paragraph (a); and
17.8(3) apply for the authority in the form and manner required by the commissioner
17.9of education.
17.10If the total levy authority requested under this paragraph exceeds the amount established
17.11in paragraph (c), the commissioner must proportionately reduce each district's maximum
17.12levy authority under this subdivision. The commissioner may subsequently adjust each
17.13district's levy authority under this subdivision so long as the total levy authority does not
17.14exceed the maximum levy authority for that year.
17.15(c) The maximum levy authority under paragraph (b) must not exceed the following
17.16amounts:
17.17(1) $9,242,000 for taxes payable in 2010;
17.18(2) $29,863,000 for taxes payable in 2011; and
17.19(3) for taxes payable in 2012 and later, the maximum levy authority must not exceed
17.20the sum of the previous year's authority and $14,000,000.

17.21    Sec. 24. Minnesota Statutes 2010, section 126C.44, is amended to read:
17.22126C.44 SAFE SCHOOLS LEVY.
17.23    (a) Each district may make a levy on all taxable property located within the district
17.24for the purposes specified in this section. The maximum amount which may be levied
17.25for all costs under this section shall be equal to $30 multiplied by the district's adjusted
17.26marginal cost pupil units for the school year. The proceeds of the levy must be reserved and
17.27used for directly funding the following purposes or for reimbursing the cities and counties
17.28who contract with the district for the following purposes: (1) to pay the costs incurred for
17.29the salaries, benefits, and transportation costs of peace officers and sheriffs for liaison in
17.30services in the district's schools; (2) to pay the costs for a drug abuse prevention program
17.31as defined in section 609.101, subdivision 3, paragraph (e), in the elementary schools;
17.32(3) to pay the costs for a gang resistance education training curriculum in the district's
17.33schools; (4) to pay the costs for security in the district's schools and on school property; (5)
17.34to pay the costs for other crime prevention, drug abuse, student and staff safety, voluntary
17.35opt-in suicide prevention tools, and violence prevention measures taken by the school
18.1district; or (6) to pay costs for licensed school counselors, licensed school nurses, licensed
18.2school social workers, licensed school psychologists, and licensed alcohol and chemical
18.3dependency counselors to help provide early responses to problems. For expenditures
18.4under clause (1), the district must initially attempt to contract for services to be provided
18.5by peace officers or sheriffs with the police department of each city or the sheriff's
18.6department of the county within the district containing the school receiving the services. If
18.7a local police department or a county sheriff's department does not wish to provide the
18.8necessary services, the district may contract for these services with any other police or
18.9sheriff's department located entirely or partially within the school district's boundaries.
18.10    (b) A school district that is a member of an intermediate school district may
18.11include in its authority under this section the costs associated with safe schools activities
18.12authorized under paragraph (a) for intermediate school district programs. This authority
18.13must not exceed $10 times the adjusted marginal cost pupil units of the member districts.
18.14This authority is in addition to any other authority authorized under this section. Revenue
18.15raised under this paragraph must be transferred to the intermediate school district.
18.16    (c) A school district must set aside at least $3 per adjusted marginal cost pupil
18.17unit of the safe schools levy proceeds for the purposes authorized under paragraph (a),
18.18clause (6). The district must annually certify either that: (1) its total spending on services
18.19provided by the employees listed in paragraph (a), clause (6), is not less than the sum of
18.20its expenditures for these purposes, excluding amounts spent under this section, in the
18.21previous year plus the amount spent under this section; or (2) that the district's full-time
18.22equivalent number of employees listed in paragraph (a), clause (6), is not less than the
18.23number for the previous year.

18.24    Sec. 25. Minnesota Statutes 2010, section 126C.50, is amended to read:
18.25126C.50 TAX AND AID ANTICIPATION BORROWING; DEFINITIONS.
18.26School district as used in sections 126C.50 to 126C.56 means any common,
18.27independent, and special school district in the state of Minnesota, however organized and
18.28wherever located.

18.29    Sec. 26. Minnesota Statutes 2010, section 127A.33, is amended to read:
18.30127A.33 SCHOOL ENDOWMENT FUND; APPORTIONMENT.
18.31The commissioner shall apportion the school endowment fund semiannually on the
18.32first Monday in March and September in each year, to districts whose schools have been
18.33in session at least nine months. The apportionment shall be in proportion to the number
18.34of pupils in each district's adjusted average daily membership during the preceding year.
19.1The apportionment shall not be paid to a district for pupils for whom tuition is received
19.2by the district.
19.3EFFECTIVE DATE.This section is effective March 1, 2012, and later.

19.4    Sec. 27. Minnesota Statutes 2010, section 127A.45, subdivision 6a, is amended to read:
19.5    Subd. 6a. Cash flow adjustment. The board of directors of any charter school
19.6serving fewer than 150 students where the percent of students eligible for special
19.7education services equals 100 at least 90 percent of the charter school's total enrollment
19.8may request that the commissioner of education accelerate the school's cash flow under
19.9this section. The commissioner must approve a properly submitted request within 30 days
19.10of its receipt. The commissioner must accelerate the school's cash flow aid payments
19.11for all state aid regular special education aid payments according to the schedule in the
19.12school's request and modify the payments to the school under subdivision 3 accordingly.
19.13 A school must not receive current payments of regular special education aid exceeding 90
19.14percent of its estimated aid entitlement for the fiscal year. The commissioner must delay
19.15the special education aid payments to all other school districts and charter schools in
19.16proportion to each district or charter school's total share of regular special education aid
19.17such that the overall aid payment savings from the aid payment shift remains unchanged
19.18for any fiscal year.

19.19    Sec. 28. Minnesota Statutes 2010, section 171.05, subdivision 2, is amended to read:
19.20    Subd. 2. Person less than 18 years of age. (a) Notwithstanding any provision
19.21in subdivision 1 to the contrary, the department may issue an instruction permit to an
19.22applicant who is 15, 16, or 17 years of age and who:
19.23(1) has completed a course of driver education in another state, has a previously
19.24issued valid license from another state, or is enrolled in either:
19.25(i) a public, private, or commercial driver education program that is approved by
19.26the commissioner of public safety and that includes classroom and behind-the-wheel
19.27training; or
19.28(ii) an approved behind-the-wheel driver education program when the student is
19.29receiving full-time instruction in a home school within the meaning of sections 120A.22
19.30and 120A.24, the student is working toward a homeschool diploma, the student's status
19.31as a homeschool student has been certified by the superintendent of the school district in
19.32which the student resides, and the student is taking home-classroom driver training with
19.33classroom materials approved by the commissioner of public safety, and the student's
20.1parent has certified the student's homeschool and home-classroom driver training status on
20.2the form approved by the commissioner;
20.3(2) has completed the classroom phase of instruction in the driver education program;
20.4(3) has passed a test of the applicant's eyesight;
20.5(4) has passed a department-administered test of the applicant's knowledge of traffic
20.6laws;
20.7(5) has completed the required application, which must be approved by (i) either
20.8parent when both reside in the same household as the minor applicant or, if otherwise,
20.9then (ii) the parent or spouse of the parent having custody or, in the event there is no
20.10court order for custody, then (iii) the parent or spouse of the parent with whom the minor
20.11is living or, if items (i) to (iii) do not apply, then (iv) the guardian having custody of the
20.12minor, (v) the foster parent or the director of the transitional living program in which the
20.13child resides or, in the event a person under the age of 18 has no living father, mother,
20.14or guardian, or is married or otherwise legally emancipated, then (vi) the applicant's
20.15adult spouse, adult close family member, or adult employer; provided, that the approval
20.16required by this clause contains a verification of the age of the applicant and the identity of
20.17the parent, guardian, adult spouse, adult close family member, or adult employer; and
20.18(6) has paid the fee required in section 171.06, subdivision 2.
20.19(b) For the purposes of determining compliance with the certification of paragraph
20.20(a), clause (1), item (ii), the commissioner may request verification of a student's
20.21homeschool status from the superintendent of the school district in which the student
20.22resides and the superintendent shall provide that verification.
20.23(c) The instruction permit is valid for two years from the date of application and
20.24may be renewed upon payment of a fee equal to the fee for issuance of an instruction
20.25permit under section 171.06, subdivision 2.

20.26    Sec. 29. Minnesota Statutes 2010, section 171.17, subdivision 1, is amended to read:
20.27    Subdivision 1. Offenses. (a) The department shall immediately revoke the license
20.28of a driver upon receiving a record of the driver's conviction of:
20.29(1) manslaughter resulting from the operation of a motor vehicle or criminal
20.30vehicular homicide or injury under section 609.21;
20.31(2) a violation of section 169A.20 or 609.487;
20.32(3) a felony in the commission of which a motor vehicle was used;
20.33(4) failure to stop and disclose identity and render aid, as required under section
20.34169.09 , in the event of a motor vehicle accident, resulting in the death or personal injury
20.35of another;
21.1(5) perjury or the making of a false affidavit or statement to the department under
21.2any law relating to the application, ownership, or operation of a motor vehicle, including
21.3on the certification required under section 171.05, subdivision 2, paragraph (a), clause (1),
21.4item (ii), to issue an instruction permit to a homeschool student;
21.5(6) except as this section otherwise provides, three charges of violating within a
21.6period of 12 months any of the provisions of chapter 169 or of the rules or municipal
21.7ordinances enacted in conformance with chapter 169, for which the accused may be
21.8punished upon conviction by imprisonment;
21.9(7) two or more violations, within five years, of the misdemeanor offense described
21.10in section 169.444, subdivision 2, paragraph (a);
21.11(8) the gross misdemeanor offense described in section 169.444, subdivision 2,
21.12paragraph (b);
21.13(9) an offense in another state that, if committed in this state, would be grounds for
21.14revoking the driver's license; or
21.15(10) a violation of an applicable speed limit by a person driving in excess of 100
21.16miles per hour. The person's license must be revoked for six months for a violation of
21.17this clause, or for a longer minimum period of time applicable under section 169A.53,
21.18169A.54 , or 171.174.
21.19(b) The department shall immediately revoke the school bus endorsement of a driver
21.20upon receiving a record of the driver's conviction of the misdemeanor offense described in
21.21section 169.443, subdivision 7.

21.22    Sec. 30. Minnesota Statutes 2010, section 171.22, subdivision 1, is amended to read:
21.23    Subdivision 1. Violations. With regard to any driver's license, including a
21.24commercial driver's license, it shall be unlawful for any person:
21.25(1) to display, cause or permit to be displayed, or have in possession, any fictitious
21.26or fraudulently altered driver's license or Minnesota identification card;
21.27(2) to lend the person's driver's license or Minnesota identification card to any other
21.28person or knowingly permit the use thereof by another;
21.29(3) to display or represent as one's own any driver's license or Minnesota
21.30identification card not issued to that person;
21.31(4) to use a fictitious name or date of birth to any police officer or in any application
21.32for a driver's license or Minnesota identification card, or to knowingly make a false
21.33statement, or to knowingly conceal a material fact, or otherwise commit a fraud in any
21.34such application;
21.35(5) to alter any driver's license or Minnesota identification card;
22.1(6) to take any part of the driver's license examination for another or to permit
22.2another to take the examination for that person;
22.3(7) to make a counterfeit driver's license or Minnesota identification card;
22.4(8) to use the name and date of birth of another person to any police officer for the
22.5purpose of falsely identifying oneself to the police officer; or
22.6(9) to display as a valid driver's license any canceled, revoked, or suspended driver's
22.7license. A person whose driving privileges have been withdrawn may display a driver's
22.8license only for identification purposes; or
22.9(10) to submit a false affidavit or statement to the department on the certification
22.10required under section 171.05, subdivision 2, paragraph (a), clause (1), item (ii), to issue
22.11an instruction permit to a homeschool student.

22.12    Sec. 31. ALTERNATIVE COMPENSATION FORECAST REVENUE
22.13RECAPTURE.
22.14Notwithstanding Minnesota Statutes, section 126C.10, subdivision 34, paragraph
22.15(c), for fiscal year 2012 only, the revenue for basic alternative compensation is reduced by
22.16$10,190,000 compared to the February 2011 forecast. Nothing in this section shall limit
22.17the November 2011 forecast of alternative compensation revenue.

22.18    Sec. 32. KITTSON CENTRAL SCHOOL CLOSING.
22.19Independent School District No. 356, Lancaster, is eligible for sparsity revenue
22.20calculated under Minnesota Statutes, section 126C.10, subdivision 8a, for fiscal year 2012
22.21and later, if the board has adopted a written resolution at any time prior to the start of
22.22the 2011-2012 school year to notify the commissioner and request aid under Minnesota
22.23Statutes, section 126C.10, subdivision 8a. For the purposes of this section, the school
22.24district shall be eligible for aid under Minnesota Statutes, section 126C.10, subdivision
22.258a, as a result of the closure of the Kennedy Elementary School in Independent School
22.26District No. 2171, Kittson Central.
22.27EFFECTIVE DATE.This section is effective for revenue for fiscal year 2012
22.28and later.

22.29    Sec. 33. NORTHLAND COMMUNITY SCHOOL CLOSING.
22.30(a) Independent School District No. 118, Northland Community Schools, is eligible
22.31for sparsity revenue calculated under Minnesota Statutes, section 126C.10, subdivision 8a,
22.32for fiscal year 2012 and later, if the board has adopted the required written resolution at
22.33least 60 days prior to the start of fiscal year 2012.
23.1(b) If the school district adopts a written resolution under paragraph (a), in fiscal
23.2year 2012, the commissioner must provide sparsity aid to the district in an amount equal
23.3to the amount that the district would have received under Minnesota Statutes, section
23.4126C.10, subdivision 8a, in fiscal year 2011, if the provisions of paragraph (a) had been in
23.5effect. The school district must recognize the sparsity aid provided under this paragraph as
23.6revenue in fiscal year 2011.
23.7EFFECTIVE DATE.This section is effective for revenue for fiscal year 2011.

23.8    Sec. 34. SCHOOL DISTRICT LEVY ADJUSTMENTS.
23.9    Subdivision 1. Tax rate adjustment. The commissioner of education must adjust
23.10each school district tax rate established under Minnesota Statutes, chapters 120B to 127A,
23.11by multiplying the rate by the ratio of the statewide total tax capacity for assessment
23.12year 2010 as it existed prior to the passage of Regular Session 2011 House File 42, or a
23.13similarly styled bill passed in a special session, to the statewide total tax capacity for
23.14assessment year 2010.
23.15    Subd. 2. Equalizing factors. The commissioner of education must adjust each
23.16school district equalizing factor established under Minnesota Statutes, chapters 120B to
23.17127A, by dividing the equalizing factor by the ratio of the statewide total tax capacity for
23.18assessment year 2010 as it existed prior to the passage of Regular Session 2011 House
23.19File 42, or a similarly styled bill passed in a special session, to the statewide total tax
23.20capacity for assessment year 2010.

23.21    Sec. 35. RESERVED REVENUE FOR STAFF DEVELOPMENT; TEMPORARY
23.22SUSPENSION.
23.23Notwithstanding Minnesota Statutes, section 122A.61, subdivision 1, for fiscal years
23.242012 and 2013 only, a school district or charter school may use revenue reserved for staff
23.25development under Minnesota Statutes, section 122A.61, subdivision 1, according to the
23.26requirements of general education revenue under Minnesota Statutes, section 126C.13,
23.27subdivision 5.

23.28    Sec. 36. APPROPRIATIONS.
23.29    Subdivision 1. Department of Education. The sums indicated in this section are
23.30appropriated from the general fund to the Department of Education for the fiscal years
23.31designated.
24.1    Subd. 2. General education aid. For general education aid under Minnesota
24.2Statutes, section 126C.13, subdivision 4:

24.3		$	5,112,037,000	.....	2012
24.4		$	5,850,065,000	.....	2013

24.5The 2012 appropriation includes $1,678,539,000 for 2011 and $3,433,498,000
24.6for 2012.
24.7The 2013 appropriation includes $2,297,765,000 for 2012 and $3,552,300,000
24.8for 2013.
24.9    Subd. 3. Enrollment options transportation. For transportation of pupils attending
24.10postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation
24.11of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

24.12		$	31,000	.....	2012
24.13		$	32,000	.....	2013

24.14    Subd. 4. Abatement revenue. For abatement aid under Minnesota Statutes, section
24.15127A.49:

24.16		$	1,294,000	.....	2012
24.17		$	1,627,000	.....	2013

24.18The 2012 appropriation includes $346,000 for 2011 and $948,000 for 2012.
24.19The 2013 appropriation includes $631,000 for 2012 and $996,000 for 2013.
24.20    Subd. 5. Consolidation transition. For districts consolidating under Minnesota
24.21Statutes, section 123A.485:

24.22		$	145,000	.....	2012
24.23		$	180,000	.....	2013

24.24The 2012 appropriation includes $145,000 for 2011 and $0 for 2012.
24.25The 2013 appropriation includes $0 for 2012 and $180,000 for 2013.
24.26    Subd. 6. Nonpublic pupil education aid. For nonpublic pupil education aid under
24.27Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:

24.28		$	14,598,000	.....	2012
24.29		$	16,198,000	.....	2013

24.30The 2012 appropriation includes $5,078,000 for 2011 and $9,520,000 for 2012.
24.31The 2013 appropriation includes $6,346,000 for 2012 and $9,852,000 for 2013.
24.32    Subd. 7. Nonpublic pupil transportation. For nonpublic pupil transportation aid
24.33under Minnesota Statutes, section 123B.92, subdivision 9:

25.1		$	17,178,000	.....	2012
25.2		$	19,056,000	.....	2013

25.3The 2012 appropriation includes $5,895,000 for 2011 and $11,283,000 for 2012.
25.4The 2013 appropriation includes $7,521,000 for 2012 and $11,535,000 for 2013.
25.5    Subd. 8. One-room schoolhouse. For a grant to Independent School District No.
25.6690, Warroad, to operate the Angle Inlet School:

25.7		$	65,000	.....	2012
25.8		$	65,000	.....	2013

25.9    Subd. 9. Compensatory revenue pilot project. For grants for participation in the
25.10compensatory revenue pilot program under Laws 2005, First Special Session chapter 5,
25.11article 1, section 50:

25.12		$	2,325,000	.....	2012
25.13		$	2,325,000	.....	2013

25.14Of this amount, $1,500,000 in each year is for a grant to Independent School District
25.15No. 11, Anoka-Hennepin; $75,000 in each year is for a grant to Independent School
25.16District No. 286, Brooklyn Center; $210,000 in each year is for a grant to Independent
25.17School District No. 279, Osseo; $160,000 in each year is for a grant to Independent
25.18School District No. 281, Robbinsdale; $165,000 in each year is for a grant to Independent
25.19School District No. 535, Rochester; and $65,000 in each year is for a grant to Independent
25.20School District No. 833, South Washington; and $150,000 in each year is for a grant to
25.21Independent School District No. 241, Albert Lea.
25.22If a grant to a specific school district is not awarded, the commissioner may increase
25.23the aid amounts to any of the remaining participating school districts.
25.24This appropriation is part of the base budget for subsequent fiscal years.
25.25    Subd. 10. Compensatory pilot project formula aid. For grants for compensatory
25.26pilot project formula aid as calculated under this subdivision:

25.27

$

9,776,000

.....

2013

25.28For fiscal year 2013 only, a district which has a pupil unit count that is in the top 20
25.29largest pupil unit counts is eligible for the greater of zero or $1,400 times the number of
25.30compensatory pupil units, minus the amount of compensatory education revenue received
25.31by the district under Minnesota Statutes, section 126C.10, subdivision 3.
25.32The 2013 appropriation includes $0 for 2012 and $9,776,000 for 2013.
25.33This is a onetime appropriation.

26.1    Sec. 37. REPEALER.
26.2Minnesota Statutes 2010, sections 120A.26, subdivisions 1 and 2; 126C.10,
26.3subdivision 5; and 126C.457, are repealed.


26.6    Section 1. Minnesota Statutes 2010, section 13D.02, is amended by adding a
26.7subdivision to read:
26.8    Subd. 5. School boards; interactive technology with an audio and visual link.
26.9A school board conducting a meeting under this section may use interactive technology
26.10with an audio and visual link to conduct the meeting if the school board complies with
26.11all other requirements under this section.

26.12    Sec. 2. Minnesota Statutes 2010, section 120B.023, subdivision 2, is amended to read:
26.13    Subd. 2. Revisions and reviews required. (a) The commissioner of education must
26.14revise and appropriately embed technology and information literacy standards consistent
26.15with recommendations from school media specialists into the state's academic standards
26.16and graduation requirements and implement a review cycle for state academic standards
26.17and related benchmarks, consistent with this subdivision. During each review cycle, the
26.18commissioner also must examine the alignment of each required academic standard and
26.19related benchmark with the knowledge and skills students need for college readiness and
26.20advanced work in the particular subject area.
26.21(b) The commissioner in the 2006-2007 school year must revise and align the state's
26.22academic standards and high school graduation requirements in mathematics to require
26.23that students satisfactorily complete the revised mathematics standards, beginning in the
26.242010-2011 school year. Under the revised standards:
26.25(1) students must satisfactorily complete an algebra I credit by the end of eighth
26.26grade; and
26.27(2) students scheduled to graduate in the 2014-2015 school year or later must
26.28satisfactorily complete an algebra II credit or its equivalent.
26.29The commissioner also must ensure that the statewide mathematics assessments
26.30administered to students in grades 3 through 8 and 11 are aligned with the state academic
26.31standards in mathematics, consistent with section 120B.30, subdivision 1, paragraph
26.32(b). The commissioner must implement a review of the academic standards and related
26.33benchmarks in mathematics beginning in the 2015-2016 school year.
27.1(c) The commissioner in the 2007-2008 school year must revise and align the state's
27.2academic standards and high school graduation requirements in the arts to require that
27.3students satisfactorily complete the revised arts standards beginning in the 2010-2011
27.4school year. The commissioner must implement a review of the academic standards and
27.5related benchmarks in arts beginning in the 2016-2017 school year.
27.6(d) The commissioner in the 2008-2009 school year must revise and align the state's
27.7academic standards and high school graduation requirements in science to require that
27.8students satisfactorily complete the revised science standards, beginning in the 2011-2012
27.9school year. Under the revised standards, students scheduled to graduate in the 2014-2015
27.10school year or later must satisfactorily complete a chemistry or, physics, or career and
27.11technical education credit that meets the standards underlying either the chemistry or
27.12physics credit. The commissioner must implement a review of the academic standards and
27.13related benchmarks in science beginning in the 2017-2018 school year.
27.14(e) The commissioner in the 2009-2010 school year must revise and align the state's
27.15academic standards and high school graduation requirements in language arts to require
27.16that students satisfactorily complete the revised language arts standards beginning in the
27.172012-2013 school year. The commissioner must implement a review of the academic
27.18standards and related benchmarks in language arts beginning in the 2018-2019 school year.
27.19(f) The commissioner in the 2010-2011 school year must revise and align the state's
27.20academic standards and high school graduation requirements in social studies to require
27.21that students satisfactorily complete the revised social studies standards beginning in the
27.222013-2014 school year. The commissioner must implement a review of the academic
27.23standards and related benchmarks in social studies beginning in the 2019-2020 school year.
27.24(g) School districts and charter schools must revise and align local academic
27.25standards and high school graduation requirements in health, world languages, and career
27.26and technical education to require students to complete the revised standards beginning
27.27in a school year determined by the school district or charter school. School districts and
27.28charter schools must formally establish a periodic review cycle for the academic standards
27.29and related benchmarks in health, world languages, and career and technical education.

27.30    Sec. 3. Minnesota Statutes 2010, section 120B.12, is amended to read:
27.31120B.12 READING INTERVENTION PROFICIENTLY NO LATER THAN
27.32THE END OF GRADE 3.
27.33    Subdivision 1. Literacy goal. The legislature seeks to have Minnesota's children
27.34able to read no later than the end of second grade every child reading at or above
28.1grade level no later than the end of grade 3 and that teachers provide comprehensive,
28.2scientifically based reading instruction consistent with section 122A.06, subdivision 4.
28.3    Subd. 2. Identification; report. For the 2002-2003 2011-2012 school year and
28.4later, each school district shall identify before the end of first kindergarten, grade 1, and
28.5grade 2 students who are at risk of not learning to read not reading at grade level before
28.6the end of second grade the current school year. Reading assessments must identify and
28.7evaluate students' areas of academic need related to literacy. The district must use a
28.8locally adopted assessment method. The district must and annually report the summary
28.9assessment results of the assessment to the commissioner by June 1.
28.10    Subd. 2a. Parent notification and involvement. Schools, at least annually,
28.11must give the parent of each student who is not reading at or above grade level timely
28.12information about:
28.13(1) student's reading proficiency as measured by a locally adopted assessment;
28.14(2) reading-related services currently being provided to the student; and
28.15(3) strategies for parents to use in helping their student succeed in becoming
28.16grade-level proficient in reading.
28.17    Subd. 3. Intervention. For each student identified under subdivision 2, the district
28.18shall provide a reading intervention method or program to assist the student in reaching
28.19reading intervention to accelerate student growth in order to reach the goal of learning to
28.20read no later than reading at or above grade level by the end of second the current grade
28.21and school year. District intervention methods shall encourage parental involvement
28.22and, where possible, collaboration with appropriate school and community programs.
28.23Intervention methods may include, but are not limited to, requiring attendance in summer
28.24school and, intensified reading instruction that may require that the student be removed
28.25from the regular classroom for part of the school day or extended-day programs.
28.26    Subd. 4. Staff development. Each district shall use the data under subdivision 2
28.27to identify the staff development needs to ensure so that:
28.28(1) elementary teachers are able to implement comprehensive, scientifically
28.29based, and balanced reading instruction programs that have resulted in improved
28.30student performance in the five reading areas of phonemic awareness, phonics, fluency,
28.31vocabulary, and comprehension as defined in section 122A.06, subdivision 4, until the
28.32student achieves grade-level reading proficiency;
28.33(2) elementary teachers who are instructing students identified under subdivision
28.342 are prepared to teach have sufficient training to provide comprehensive, scientifically
28.35based reading instruction using the intervention methods or programs selected by the
28.36district for the identified students; and
29.1(3) all licensed teachers employed by the district have regular opportunities to
29.2improve reading instruction; and
29.3(4) licensed teachers recognize students' diverse needs in cross-cultural settings
29.4and are able to serve the oral language and linguistic needs of students who are English
29.5language learners.
29.6    Subd. 4a. Local literacy plan. Consistent with this section, a school district must
29.7adopt a local literacy plan to have every child reading at or above grade level no later than
29.8the end of grade 3. The plan must include a process to assess students' level of reading
29.9proficiency, notify and involve parents, intervene with students who are not reading at
29.10or above grade level, and identify and meet staff development needs. The district must
29.11post its literacy plan on the official school district Web site.
29.12    Subd. 5. Commissioner. The commissioner shall recommend to districts multiple
29.13assessment tools that will to assist districts and teachers with identifying students under
29.14subdivision 2. The commissioner shall also make available to districts examples of
29.15nationally recognized and research-based instructional methods or programs that to
29.16districts may use to provide comprehensive, scientifically based reading instruction and
29.17intervention according to under this section.

29.18    Sec. 4. Minnesota Statutes 2010, section 120B.30, subdivision 1, is amended to read:
29.19    Subdivision 1. Statewide testing. (a) The commissioner, with advice from experts
29.20with appropriate technical qualifications and experience and stakeholders, consistent with
29.21subdivision 1a, shall include in the comprehensive assessment system, for each grade
29.22level to be tested, state-constructed tests developed from and aligned with the state's
29.23required academic standards under section 120B.021, include multiple choice questions,
29.24and be administered annually to all students in grades 3 through 8. State-developed high
29.25school tests aligned with the state's required academic standards under section 120B.021
29.26and administered to all high school students in a subject other than writing must include
29.27multiple choice questions. The commissioner shall establish one or more months during
29.28which schools shall administer the tests to students each school year. For students enrolled
29.29in grade 8 before the 2005-2006 school year, Minnesota basic skills tests in reading,
29.30mathematics, and writing shall fulfill students' basic skills testing requirements for a
29.31passing state notation. The passing scores of basic skills tests in reading and mathematics
29.32are the equivalent of 75 percent correct for students entering grade 9 based on the first
29.33uniform test administered in February 1998. Students who have not successfully passed
29.34a Minnesota basic skills test by the end of the 2011-2012 school year must pass the
29.35graduation-required assessments for diploma under paragraph (c).
30.1(b) The state assessment system must be aligned to the most recent revision of
30.2academic standards as described in section 120B.023 in the following manner:
30.3(1) mathematics;
30.4(i) grades 3 through 8 beginning in the 2010-2011 school year; and
30.5(ii) high school level beginning in the 2013-2014 school year;
30.6(2) science; grades 5 and 8 and at the high school level beginning in the 2011-2012
30.7school year; and
30.8(3) language arts and reading; grades 3 through 8 and high school level beginning in
30.9the 2012-2013 school year.
30.10    (c) For students enrolled in grade 8 in the 2005-2006 school year and later, only the
30.11following options shall fulfill students' state graduation test requirements:
30.12    (1) for reading and mathematics:
30.13    (i) obtaining an achievement level equivalent to or greater than proficient as
30.14determined through a standard setting process on the Minnesota comprehensive
30.15assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing
30.16score as determined through a standard setting process on the graduation-required
30.17assessment for diploma in grade 10 for reading and grade 11 for mathematics or
30.18subsequent retests;
30.19    (ii) achieving a passing score as determined through a standard setting process on the
30.20state-identified language proficiency test in reading and the mathematics test for English
30.21language learners or the graduation-required assessment for diploma equivalent of those
30.22assessments for students designated as English language learners;
30.23    (iii) achieving an individual passing score on the graduation-required assessment
30.24for diploma as determined by appropriate state guidelines for students with an individual
30.25education plan or 504 plan;
30.26    (iv) obtaining achievement level equivalent to or greater than proficient as
30.27determined through a standard setting process on the state-identified alternate assessment
30.28or assessments in grade 10 for reading and grade 11 for mathematics for students with
30.29an individual education plan; or
30.30    (v) achieving an individual passing score on the state-identified alternate assessment
30.31or assessments as determined by appropriate state guidelines for students with an
30.32individual education plan; and
30.33    (2) for writing:
30.34    (i) achieving a passing score on the graduation-required assessment for diploma;
31.1    (ii) achieving a passing score as determined through a standard setting process on
31.2the state-identified language proficiency test in writing for students designated as English
31.3language learners;
31.4    (iii) achieving an individual passing score on the graduation-required assessment
31.5for diploma as determined by appropriate state guidelines for students with an individual
31.6education plan or 504 plan; or
31.7    (iv) achieving an individual passing score on the state-identified alternate assessment
31.8or assessments as determined by appropriate state guidelines for students with an
31.9individual education plan.
31.10    (d) Students enrolled in grade 8 in any school year from the 2005-2006 school
31.11year to the 2009-2010 school year who do not pass the mathematics graduation-required
31.12assessment for diploma under paragraph (c) are eligible to receive a high school diploma
31.13if they:
31.14(1) complete with a passing score or grade all state and local coursework and credits
31.15required for graduation by the school board granting the students their diploma;
31.16(2) participate in district-prescribed academic remediation in mathematics; and
31.17    (3) fully participate in at least two retests of the mathematics GRAD test or until
31.18they pass the mathematics GRAD test, whichever comes first. A school, district, or
31.19charter school must place on the high school transcript a student's highest current pass
31.20status for each subject that has a required graduation assessment score for each of the
31.21following assessments on the student's high school transcript: the mathematics Minnesota
31.22Comprehensive Assessment, reading Minnesota Comprehensive Assessment, and writing
31.23Graduation-Required Assessment for Diploma, and when applicable, the mathematics
31.24Graduation-Required Assessment for Diploma and reading Graduation-Required
31.25Assessment for Diploma.
31.26In addition, the school board granting the students their diplomas may formally
31.27decide to include a notation of high achievement on the high school diplomas of those
31.28graduating seniors who, according to established school board criteria, demonstrate
31.29exemplary academic achievement during high school.
31.30(e) The 3rd through 8th grade and high school test results shall be available to
31.31districts for diagnostic purposes affecting student learning and district instruction and
31.32curriculum, and for establishing educational accountability. The commissioner must
31.33disseminate to the public the high school test results upon receiving those results.
31.34    (f) The 3rd through 8th grade and high school tests must be aligned with state
31.35academic standards. The commissioner shall determine the testing process and the order
32.1of administration. The statewide results shall be aggregated at the site and district level,
32.2consistent with subdivision 1a.
32.3    (g) In addition to the testing and reporting requirements under this section, the
32.4commissioner shall include the following components in the statewide public reporting
32.5system:
32.6    (1) uniform statewide testing of all students in grades 3 through 8 and at the high
32.7school level that provides appropriate, technically sound accommodations or alternate
32.8assessments;
32.9    (2) educational indicators that can be aggregated and compared across school
32.10districts and across time on a statewide basis, including average daily attendance, high
32.11school graduation rates, and high school drop-out rates by age and grade level;
32.12    (3) state results on the American College Test; and
32.13    (4) state results from participation in the National Assessment of Educational
32.14Progress so that the state can benchmark its performance against the nation and other
32.15states, and, where possible, against other countries, and contribute to the national effort
32.16to monitor achievement.

32.17    Sec. 5. Minnesota Statutes 2010, section 120B.30, subdivision 3, is amended to read:
32.18    Subd. 3. Reporting. The commissioner shall report test data results publicly and
32.19to stakeholders, including the performance achievement levels developed from students'
32.20unweighted test scores in each tested subject and a listing of demographic factors that
32.21strongly correlate with student performance. The test results must not include personally
32.22identifiable information as defined in Code of Federal Regulations, title 34, section 99.3.
32.23The commissioner shall also report data that compares performance results among school
32.24sites, school districts, Minnesota and other states, and Minnesota and other nations. The
32.25commissioner shall disseminate to schools and school districts a more comprehensive
32.26report containing testing information that meets local needs for evaluating instruction and
32.27curriculum. The commissioner shall disseminate to charter school authorizers a more
32.28comprehensive report containing testing information that contains anonymized data where
32.29cell count data are sufficient to protect student identity and that meets the authorizer's
32.30needs in fulfilling its obligations under section 124D.10.

32.31    Sec. 6. Minnesota Statutes 2010, section 120B.30, subdivision 4, is amended to read:
32.32    Subd. 4. Access to tests. Consistent with section 13.34, the commissioner must
32.33adopt and publish a policy to provide public and parental access for review of basic skills
32.34tests, Minnesota Comprehensive Assessments, or any other such statewide test and
33.1assessment which would not compromise the objectivity or fairness of the testing or
33.2examination process. Upon receiving a written request, the commissioner must make
33.3available to parents or guardians a copy of their student's actual responses to the test
33.4questions for their review.

33.5    Sec. 7. Minnesota Statutes 2010, section 120B.31, subdivision 4, is amended to read:
33.6    Subd. 4. Statistical adjustments; Student performance data. In developing
33.7policies and assessment processes to hold schools and districts accountable for high levels
33.8of academic standards under section 120B.021, the commissioner shall aggregate student
33.9data over time to report student performance and growth levels measured at the school,
33.10school district, and statewide level. When collecting and reporting the performance data,
33.11the commissioner shall: (1) acknowledge the impact of significant demographic factors
33.12such as residential instability, the number of single parent families, parents' level of
33.13education, and parents' income level on school outcomes; and (2) organize and report the
33.14data so that state and local policy makers can understand the educational implications
33.15of changes in districts' demographic profiles over time. Any report the commissioner
33.16disseminates containing summary data on student performance must integrate student
33.17performance and the demographic factors that strongly correlate with that performance.

33.18    Sec. 8. Minnesota Statutes 2010, section 120B.36, subdivision 1, is amended to read:
33.19    Subdivision 1. School performance report cards. (a) The commissioner
33.20shall report student academic performance under section 120B.35, subdivision 2; the
33.21percentages of students showing low, medium, and high growth under section 120B.35,
33.22subdivision 3 , paragraph (b); school safety and student engagement and connection
33.23under section 120B.35, subdivision 3, paragraph (d); rigorous coursework under section
33.24120B.35, subdivision 3 , paragraph (c); two separate student-to-teacher ratios that clearly
33.25indicate the definition of teacher consistent with sections 122A.06 and 122A.15 for
33.26purposes of determining these ratios; staff characteristics excluding salaries; student
33.27enrollment demographics; district mobility; and extracurricular activities. The report also
33.28must indicate a school's adequate yearly progress status, and must not set any designations
33.29applicable to high- and low-performing schools due solely to adequate yearly progress
33.30status.
33.31    (b) The commissioner shall develop, annually update, and post on the department
33.32Web site school performance report cards.
33.33    (c) The commissioner must make available performance report cards by the
33.34beginning of each school year.
34.1    (d) A school or district may appeal its adequate yearly progress status in writing to
34.2the commissioner within 30 days of receiving the notice of its status. The commissioner's
34.3decision to uphold or deny an appeal is final.
34.4    (e) School performance report card data are nonpublic data under section 13.02,
34.5subdivision 9 , until not later than ten days after the appeal procedure described in
34.6paragraph (d) concludes the commissioner publicly releases the data. The department
34.7commissioner shall annually post school performance report cards to its the department's
34.8public web site no later than September 1, except that in years when the report card
34.9reflects new performance standards, the commissioner shall post the school performance
34.10report cards no later than October 1.

34.11    Sec. 9. Minnesota Statutes 2010, section 120B.36, subdivision 2, is amended to read:
34.12    Subd. 2. Adequate yearly progress and other data. All data the department
34.13receives, collects, or creates to determine adequate yearly progress status under Public
34.14Law 107-110, section 1116, set state growth targets, and determine student growth are
34.15nonpublic data under section 13.02, subdivision 9, until not later than ten days after the
34.16appeal procedure described in subdivision 1, paragraph (d), concludes the commissioner
34.17publicly releases the data. Districts must provide parents sufficiently detailed summary
34.18data to permit parents to appeal under Public Law 107-110, section 1116(b)(2). The
34.19department commissioner shall annually post federal adequate yearly progress data and
34.20state student growth data to its the department's public Web site no later than September
34.211, except that in years when adequate yearly progress reflects new performance standards,
34.22the commissioner shall post federal adequate yearly progress data and state student growth
34.23data no later than October 1.

34.24    Sec. 10. Minnesota Statutes 2010, section 122A.09, subdivision 4, as amended by
34.25Laws 2011, chapter 5, section 1, is amended to read:
34.26    Subd. 4. License and rules. (a) The board must adopt rules to license public school
34.27teachers and interns subject to chapter 14.
34.28(b) The board must adopt rules requiring a person to successfully complete a skills
34.29examination in reading, writing, and mathematics as a requirement for initial teacher
34.30licensure. Such rules must require college and universities offering a board-approved
34.31teacher preparation program to provide remedial assistance to persons who did not
34.32achieve a qualifying score on the skills examination, including those for whom English is
34.33a second language.
35.1(c) The board must adopt rules to approve teacher preparation programs. The board,
35.2upon the request of a postsecondary student preparing for teacher licensure or a licensed
35.3graduate of a teacher preparation program, shall assist in resolving a dispute between the
35.4person and a postsecondary institution providing a teacher preparation program when the
35.5dispute involves an institution's recommendation for licensure affecting the person or the
35.6person's credentials. At the board's discretion, assistance may include the application
35.7of chapter 14.
35.8(d) The board must provide the leadership and adopt rules for the redesign of teacher
35.9education programs to implement a research based, results-oriented curriculum that
35.10focuses on the skills teachers need in order to be effective. The board shall implement new
35.11systems of teacher preparation program evaluation to assure program effectiveness based
35.12on proficiency of graduates in demonstrating attainment of program outcomes. Teacher
35.13preparation programs including alternative teacher preparation programs under section
35.14122A.245 , among other programs, must include a content-specific, board-approved,
35.15performance-based assessment that measures teacher candidates in three areas: planning
35.16for instruction and assessment; engaging students and supporting learning; and assessing
35.17student learning.
35.18(e) The board must adopt rules requiring candidates for initial licenses to successfully
35.19complete an examination of general pedagogical knowledge and examinations of
35.20licensure-specific teaching skills. The rules shall be effective by September 1, 2001.
35.21The rules under this paragraph also must require candidates for initial licenses to teach
35.22prekindergarten or elementary students to successfully complete, as part of the examination
35.23of licensure-specific teaching skills, test items assessing the candidates' knowledge,
35.24skill, and ability in comprehensive, scientifically based reading instruction under section
35.25122A.06 , subdivision 4, and their knowledge and understanding of the foundations of
35.26reading development, the development of reading comprehension, and reading assessment
35.27and instruction, and their ability to integrate that knowledge and understanding.
35.28(f) The board must adopt rules requiring teacher educators to work directly with
35.29elementary or secondary school teachers in elementary or secondary schools to obtain
35.30periodic exposure to the elementary or secondary teaching environment.
35.31(g) The board must grant licenses to interns and to candidates for initial licenses
35.32based on appropriate professional competencies that are aligned with the board's licensing
35.33system and students' diverse learning needs. The board must include these licenses in a
35.34statewide differentiated licensing system that creates new leadership roles for successful
35.35experienced teachers premised on a collaborative professional culture dedicated to meeting
36.1students' diverse learning needs in the 21st century and formalizes mentoring and induction
36.2for newly licensed teachers that is provided through a teacher support framework.
36.3(h) The board must design and implement an assessment system which requires a
36.4candidate for an initial license and first continuing license to demonstrate the abilities
36.5necessary to perform selected, representative teaching tasks at appropriate levels.
36.6(i) The board must receive recommendations from local committees as established
36.7by the board for the renewal of teaching licenses.
36.8(j) The board must grant life licenses to those who qualify according to requirements
36.9established by the board, and suspend or revoke licenses pursuant to sections 122A.20 and
36.10214.10 . The board must not establish any expiration date for application for life licenses.
36.11(k) The board must adopt rules that require all licensed teachers who are renewing
36.12their continuing license to include in their renewal requirements further preparation in
36.13the areas of using positive behavior interventions and in accommodating, modifying, and
36.14adapting curricula, materials, and strategies to appropriately meet the needs of individual
36.15students and ensure adequate progress toward the state's graduation rule.
36.16(l) In adopting rules to license public school teachers who provide health-related
36.17services for disabled children, the board shall adopt rules consistent with license or
36.18registration requirements of the commissioner of health and the health-related boards who
36.19license personnel who perform similar services outside of the school.
36.20(m) The board must adopt rules that require all licensed teachers who are renewing
36.21their continuing license to include in their renewal requirements further reading
36.22preparation, consistent with section 122A.06, subdivision 4. The rules do not take effect
36.23until they are approved by law. Teachers who do not provide direct instruction including, at
36.24least, counselors, school psychologists, school nurses, school social workers, audiovisual
36.25directors and coordinators, and recreation personnel are exempt from this section.
36.26(n) The board must adopt rules that require all licensed teachers who are renewing
36.27their continuing license to include in their renewal requirements further preparation
36.28in understanding the key warning signs of early-onset mental illness in children and
36.29adolescents.
36.30EFFECTIVE DATE.This section is effective June 30, 2014.

36.31    Sec. 11. Minnesota Statutes 2010, section 122A.16, as amended by Laws 2011, chapter
36.325, section 2, is amended to read:
36.33122A.16 HIGHLY QUALIFIED TEACHER DEFINED.
37.1(a) A qualified teacher is one holding a valid license, under this chapter, to perform
37.2the particular service for which the teacher is employed in a public school.
37.3(b) For the purposes of the federal No Child Left Behind Act, a highly qualified
37.4teacher is one who holds a valid license under this chapter, including under section
37.5122A.245 , among other sections, to perform the particular service for which the teacher is
37.6employed in a public school or who meets the requirements of a highly objective uniform
37.7state standard of evaluation (HOUSSE) and is determined by local administrators as
37.8having highly qualified status according to the approved Minnesota highly qualified plan.
37.9Teachers delivering core content instruction must be deemed highly qualified at the local
37.10level and reported to the state via the staff automated reporting system.
37.11All Minnesota teachers teaching in a core academic subject area, as defined by the
37.12federal No Child Left Behind Act, in which they are not fully licensed may complete the
37.13following HOUSSE process in the core subject area for which the teacher is requesting
37.14highly qualified status by completing an application, in the form and manner described by
37.15the commissioner, that includes:
37.16(1) documentation of student achievement as evidenced by norm-referenced test
37.17results that are objective and psychometrically valid and reliable;
37.18(2) evidence of local, state, or national activities, recognition, or awards for
37.19professional contribution to achievement;
37.20(3) description of teaching experience in the teachers' core subject area in a public
37.21school under a waiver, variance, limited license or other exception; nonpublic school; and
37.22postsecondary institution;
37.23(4) test results from the Praxis II content test;
37.24(5) evidence of advanced certification from the National Board for Professional
37.25Teaching Standards;
37.26(6) evidence of the successful completion of course work or pedagogy courses; and
37.27(7) evidence of the successful completion of high quality professional development
37.28activities.
37.29Districts must assign a school administrator to serve as a HOUSSE reviewer to
37.30meet with teachers under this paragraph and, where appropriate, certify the teachers'
37.31applications. Teachers satisfy the definition of highly qualified when the teachers receive
37.32at least 100 of the total number of points used to measure the teachers' content expertise
37.33under clauses (1) to (7). Teachers may acquire up to 50 points only in any one clause (1)
37.34to (7). Teachers may use the HOUSSE process to satisfy the definition of highly qualified
37.35for more than one subject area.
38.1(c) Achievement of the HOUSSE criteria is not equivalent to a license. A teacher
38.2must obtain permission from the Board of Teaching in order to teach in a public school.
38.3EFFECTIVE DATE.This section is effective for the 2011-2012 school year and
38.4later.

38.5    Sec. 12. Minnesota Statutes 2010, section 122A.40, subdivision 5, is amended to read:
38.6    Subd. 5. Probationary period. (a) The first three consecutive years of a teacher's
38.7first teaching experience in Minnesota in a single district is deemed to be a probationary
38.8period of employment, and after completion thereof, the probationary period in each
38.9district in which the teacher is thereafter employed shall be one year. The school board
38.10must adopt a plan for written evaluation of teachers during the probationary period that
38.11is consistent with subdivision 8. Evaluation must occur at least three times periodically
38.12throughout each school year for a teacher performing services on 120 or more school days,
38.13at least two times each year for a teacher performing services on 60 to 119 school days, and
38.14at least one time each year for a teacher performing services on fewer than 60 school days
38.15during that school year; the first evaluation must occur within the first 90 days of teaching
38.16service. Days devoted to parent-teacher conferences, teachers' workshops, and other
38.17staff development opportunities and days on which a teacher is absent from school must
38.18not be included in determining the number of school days on which a teacher performs
38.19services. Except as otherwise provided in paragraph (b), during the probationary period
38.20any annual contract with any teacher may or may not be renewed as the school board shall
38.21see fit. However, the board must give any such teacher whose contract it declines to
38.22renew for the following school year written notice to that effect before July June 1. If the
38.23teacher requests reasons for any nonrenewal of a teaching contract, the board must give
38.24the teacher its reason in writing, including a statement that appropriate supervision was
38.25furnished describing the nature and the extent of such supervision furnished the teacher
38.26during the employment by the board, within ten days after receiving such request. The
38.27school board may, after a hearing held upon due notice, discharge a teacher during the
38.28probationary period for cause, effective immediately, under section 122A.44.
38.29(b) A board must discharge a probationary teacher, effective immediately, upon
38.30receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the teacher's
38.31license has been revoked due to a conviction for child abuse or sexual abuse.
38.32(c) A probationary teacher whose first three years of consecutive employment are
38.33interrupted for active military service and who promptly resumes teaching consistent with
38.34federal reemployment timelines for uniformed service personnel under United States
39.1Code, title 38, section 4312(e), is considered to have a consecutive teaching experience
39.2for purposes of paragraph (a).
39.3(d) A probationary teacher must complete at least 60 120 days of teaching service
39.4each year during the probationary period. Days devoted to parent-teacher conferences,
39.5teachers' workshops, and other staff development opportunities and days on which a
39.6teacher is absent from school do not count as days of teaching service under this paragraph.
39.7EFFECTIVE DATE.This section applies to all collective bargaining agreements
39.8ratified after July 1, 2013.

39.9    Sec. 13. Minnesota Statutes 2010, section 122A.40, subdivision 6, is amended to read:
39.10    Subd. 6. Mentoring for probationary teachers. A school board and an exclusive
39.11representative of the teachers in the district must develop a probationary teacher peer
39.12review process through joint agreement that is consistent with subdivision 8. The process
39.13may include having trained observers serve as mentors or coaches or having teachers
39.14participate in professional learning communities.
39.15EFFECTIVE DATE.This section is effective the day following final enactment
39.16and applies beginning in the 2014-2015 school year and later.

39.17    Sec. 14. Minnesota Statutes 2010, section 122A.40, subdivision 8, is amended to read:
39.18    Subd. 8. Development, evaluation, and peer coaching for continuing contract
39.19teachers. (a) To improve student learning and success, a school board and an exclusive
39.20representative of the teachers in the district shall, consistent with paragraph (b), may
39.21develop a teacher evaluation and peer review process for probationary and continuing
39.22contract teachers through joint agreement. If a school board and the exclusive
39.23representative of the teachers do not agree to an annual teacher evaluation and peer review
39.24process, then the school board and the exclusive representative of the teachers must
39.25implement the plan for evaluation and review under paragraph (c). The process may must
39.26include having trained observers serve as peer coaches or having teachers participate in
39.27professional learning communities, consistent with paragraph (b).
39.28(b) To develop, improve, and support qualified teachers and effective teaching
39.29practices and improve student learning and success, the annual evaluation process for
39.30teachers:
39.31(1) must, for probationary teachers, provide for all evaluations required under
39.32subdivision 5;
40.1(2) must establish a three-year professional review cycle for each teacher that
40.2includes an individual growth and development plan, a peer review process, the
40.3opportunity to participate in a professional learning community under paragraph (a), and
40.4at least one summative evaluation performed by a qualified and trained evaluator such as a
40.5school administrator. For the years when a tenured teacher is not evaluated by a qualified
40.6and trained evaluator, the teacher must be evaluated by a peer review;
40.7(3) must be based on professional teaching standards established in rule;
40.8(4) must coordinate staff development activities under sections 122A.60 and
40.9122A.61 with this evaluation process and teachers' evaluation outcomes;
40.10(5) may provide time during the school day and school year for peer coaching and
40.11teacher collaboration;
40.12(6) may include mentoring and induction programs;
40.13(7) must include an option for teachers to develop and present a portfolio
40.14demonstrating evidence of reflection and professional growth, consistent with section
40.15122A.18, subdivision 4, paragraph (b), and include teachers' own performance assessment
40.16based on student work samples and examples of teachers' work, which may include video
40.17among other activities for the summative evaluation;
40.18(8) must use an agreed upon teacher value-added assessment model for the grade
40.19levels and subject areas for which value-added data are available and establish state
40.20or local measures of student growth for the grade levels and subject areas for which
40.21value-added data are not available as a basis for 35 percent of teacher evaluation results;
40.22(9) must use longitudinal data on student engagement and connection, and other
40.23student outcome measures explicitly aligned with the elements of curriculum for which
40.24teachers are responsible;
40.25(10) must require qualified and trained evaluators such as school administrators to
40.26perform summative evaluations;
40.27(11) must give teachers not meeting professional teaching standards under clauses
40.28(3) through (10) support to improve through a teacher improvement process that includes
40.29established goals and timelines; and
40.30(12) must discipline a teacher for not making adequate progress in the teacher
40.31improvement process under clause (11) that may include a last chance warning,
40.32termination, discharge, nonrenewal, transfer to a different position, a leave of absence, or
40.33other discipline a school administrator determines is appropriate.
40.34Data on individual teachers generated under this subdivision are personnel data
40.35under section 13.43.
41.1(c) The department, in consultation with parents who may represent parent
41.2organizations and teacher and administrator representatives appointed by their respective
41.3organizations, representing the Board of Teaching, the Minnesota Association of School
41.4Administrators, the Minnesota School Boards Association, the Minnesota Elementary
41.5and Secondary Principals Associations, Education Minnesota, and representatives of
41.6the Minnesota Assessment Group, the Minnesota Business Partnership, the Minnesota
41.7Chamber of Commerce, and Minnesota postsecondary institutions with research expertise
41.8in teacher evaluation, must create and publish a teacher evaluation process that complies
41.9with the requirements in paragraph (b) and applies to all teachers under this section
41.10122A.40 and section 122A.41 for whom no agreement exists under paragraph (a) for an
41.11annual teacher evaluation and peer review process. The teacher evaluation process created
41.12under this subdivision does not create additional due process rights for probationary
41.13teachers under subdivision 5.
41.14EFFECTIVE DATE.This section is effective the day following final enactment
41.15and applies beginning in the 2014-2015 school year and later.

41.16    Sec. 15. Minnesota Statutes 2010, section 122A.40, subdivision 9, is amended to read:
41.17    Subd. 9. Grounds for termination. A continuing contract may be terminated,
41.18effective at the close of the school year, upon any of the following grounds:
41.19(a) Inefficiency in teaching or in the management of a school, consistent with
41.20subdivision 8, paragraph (b);
41.21(b) Neglect of duty, or persistent violation of school laws, rules, regulations, or
41.22directives;
41.23(c) Conduct unbecoming a teacher which materially impairs the teacher's educational
41.24effectiveness;
41.25(d) Other good and sufficient grounds rendering the teacher unfit to perform the
41.26teacher's duties.
41.27A contract must not be terminated upon one of the grounds specified in clause (a),
41.28(b), (c), or (d), unless the teacher fails to correct the deficiency after being given written
41.29notice of the specific items of complaint and reasonable time within which to remedy them.
41.30EFFECTIVE DATE.This section applies to all collective bargaining agreements
41.31ratified after July 1, 2014.

41.32    Sec. 16. Minnesota Statutes 2010, section 122A.41, subdivision 1, is amended to read:
42.1    Subdivision 1. Words, terms, and phrases. Unless the language or context clearly
42.2indicates that a different meaning is intended, the following words, terms, and phrases, for
42.3the purposes of the following subdivisions in this section shall be defined as follows:
42.4(a) Teachers. The term "teacher" includes every person regularly employed, as a
42.5principal, or to give instruction in a classroom, or to superintend or supervise classroom
42.6instruction, or as placement teacher and visiting teacher. Persons regularly employed as
42.7counselors and school librarians shall be covered by these sections as teachers if licensed
42.8as teachers or as school librarians.
42.9(b) School board. The term "school board" includes a majority in membership
42.10of any and all boards or official bodies having the care, management, or control over
42.11public schools.
42.12(c) Demote. The word "demote" means to reduce in rank or to transfer to a lower
42.13branch of the service or to a position carrying a lower salary or the compensation a person
42.14actually receives in the new position.
42.15(d) Nonprovisional license. For purposes of this section, "nonprovisional license"
42.16shall mean an entrance, continuing, or life license.
42.17EFFECTIVE DATE.This section is effective the day following final enactment.

42.18    Sec. 17. Minnesota Statutes 2010, section 122A.41, subdivision 2, is amended to read:
42.19    Subd. 2. Probationary period; discharge or demotion. (a) All teachers in
42.20the public schools in cities of the first class during the first three years of consecutive
42.21employment shall be deemed to be in a probationary period of employment during which
42.22period any annual contract with any teacher may, or may not, be renewed as the school
42.23board, after consulting with the peer review committee charged with evaluating the
42.24probationary teachers under subdivision 3, shall see fit. The school site management team
42.25or the school board if there is no school site management team, shall adopt a plan for a
42.26written evaluation of teachers during the probationary period according to subdivision
42.27subdivisions 3 and 5. Evaluation by the peer review committee charged with evaluating
42.28probationary teachers under subdivision 3 shall occur at least three times periodically
42.29throughout each school year for a teacher performing services on 120 or more school
42.30days, at least two times each year for a teacher performing services on 60 to 119 school
42.31days, and at least one time each year for a teacher performing services on fewer than 60
42.32school days during that school year; the first evaluation must occur within the first 90 days
42.33of teaching service. Days devoted to parent-teacher conferences, teachers' workshops,
42.34and other staff development opportunities and days on which a teacher is absent from
42.35school shall not be included in determining the number of school days on which a teacher
43.1performs services. The school board may, during such probationary period, discharge or
43.2demote a teacher for any of the causes as specified in this code. A written statement of the
43.3cause of such discharge or demotion shall be given to the teacher by the school board at
43.4least 30 days before such removal or demotion shall become effective, and the teacher so
43.5notified shall have no right of appeal therefrom.
43.6(b) A probationary teacher whose first three years of consecutive employment are
43.7interrupted for active military service and who promptly resumes teaching consistent with
43.8federal reemployment timelines for uniformed service personnel under United States
43.9Code, title 38, section 4312(e), is considered to have a consecutive teaching experience
43.10for purposes of paragraph (a).
43.11(c) A probationary teacher must complete at least 60 120 days of teaching service
43.12each year during the probationary period. Days devoted to parent-teacher conferences,
43.13teachers' workshops, and other staff development opportunities and days on which a
43.14teacher is absent from school do not count as days of teaching service under this paragraph.
43.15EFFECTIVE DATE.This section applies to all collective bargaining agreements
43.16ratified after July 1, 2013.

43.17    Sec. 18. Minnesota Statutes 2010, section 122A.41, subdivision 3, is amended to read:
43.18    Subd. 3. Mentoring for probationary teachers. A board and an exclusive
43.19representative of the teachers in the district must develop a probationary teacher peer
43.20review process through joint agreement that is consistent with subdivision 5. The process
43.21may include having trained observers serve as mentors or coaches or having teachers
43.22participate in professional learning communities.
43.23EFFECTIVE DATE.This section is effective the day following final enactment
43.24and applies beginning in the 2014-2015 school year and later.

43.25    Sec. 19. Minnesota Statutes 2010, section 122A.41, subdivision 5, is amended to read:
43.26    Subd. 5. Development, evaluation, and peer coaching for continuing contract
43.27teachers. (a) To improve student learning and success, a school board and an exclusive
43.28representative of the teachers in the district must, consistent with paragraph (b), may
43.29develop a an annual teacher evaluation and peer review process for probationary and
43.30nonprobationary teachers through joint agreement. If a school board and the exclusive
43.31representative of the teachers in the district do not agree to an annual teacher evaluation
43.32and peer review process, then the school board and the exclusive representative of the
43.33teachers must implement the plan for evaluation and review developed under paragraph
44.1(c).The process may must include having trained observers serve as peer coaches or having
44.2teachers participate in professional learning communities, consistent with paragraph (b).
44.3(b) To develop, improve, and support qualified teachers and effective teaching
44.4practices and improve student learning and success, the annual evaluation process for
44.5teachers:
44.6(1) must, for probationary teachers, provide for all evaluations required under
44.7subdivision 5;
44.8(2) must establish a three-year professional review cycle for each teacher that
44.9includes an individual growth and development plan, a peer review process, the
44.10opportunity to participate in a professional learning community under paragraph (a), and
44.11at least one summative evaluation performed by a qualified and trained evaluator such
44.12as a school administrator;
44.13(3) must be based on professional teaching standards established in rule;
44.14(4) must coordinate staff development activities under sections 122A.60 and
44.15122A.61 with this evaluation process and teachers' evaluation outcomes;
44.16(5) may provide time during the school day and school year for peer coaching and
44.17teacher collaboration;
44.18(6) may include mentoring and induction programs;
44.19(7) must include an option for teachers to develop and present a portfolio
44.20demonstrating evidence of reflection and professional growth, consistent with section
44.21122A.18, subdivision 4, paragraph (b), and include teachers' own performance assessment
44.22based on student work samples and examples of teachers' work, which may include video
44.23among other activities for the summative evaluation;
44.24(8) must use an agreed upon teacher value-added assessment model for the grade
44.25levels and subject areas for which value-added data are available and establish state
44.26or local measures of student growth for the grade levels and subject areas for which
44.27value-added data are not available as a basis for 35 percent of teacher evaluation results;
44.28(9) must use longitudinal data on student engagement and connection and other
44.29student outcome measures explicitly aligned with the elements of curriculum for which
44.30teachers are responsible;
44.31(10) must require qualified and trained evaluators such as school administrators to
44.32perform summative evaluations;
44.33(11) must give teachers not meeting professional teaching standards under clauses
44.34(3) through (10) support to improve through a teacher improvement process that includes
44.35established goals and timelines; and
45.1(12) must discipline a teacher for not making adequate progress in the teacher
45.2improvement process under clause (11) that may include a last chance warning,
45.3termination, discharge, nonrenewal, transfer to a different position, a leave of absence, or
45.4other discipline a school administrator determines is appropriate.
45.5Data on individual teachers generated under this subdivision are personnel data
45.6under section 13.43.
45.7(c) The department, in consultation with parents who may represent parent
45.8organizations and teacher and administrator representatives appointed by their respective
45.9organizations, representing the Board of Teaching, the Minnesota Association of School
45.10Administrators, the Minnesota School Boards Association, the Minnesota Elementary
45.11and Secondary Principals Associations, Education Minnesota, and representatives of
45.12the Minnesota Assessment Group, the Minnesota Business Partnership, the Minnesota
45.13Chamber of Commerce, and Minnesota postsecondary institutions with research expertise
45.14in teacher evaluation, must create and publish a teacher evaluation process that complies
45.15with the requirements in paragraph (b) and applies to all teachers under this section and
45.16section 122A.41 for whom no agreement exists under paragraph (a) for an annual teacher
45.17evaluation and peer review process. The teacher evaluation process created under this
45.18subdivision does not create additional due process rights for probationary teachers under
45.19subdivision 5.
45.20EFFECTIVE DATE.This section is effective the day following final enactment
45.21and applies beginning in the 2014-2015 school year and later.

45.22    Sec. 20. Minnesota Statutes 2010, section 122A.41, subdivision 6, is amended to read:
45.23    Subd. 6. Grounds for discharge or demotion. (a) Except as otherwise provided
45.24in paragraph (b), causes for the discharge or demotion of a teacher either during or after
45.25the probationary period must be:
45.26(1) immoral character, conduct unbecoming a teacher, or insubordination;
45.27(2) failure without justifiable cause to teach without first securing the written release
45.28of the school board having the care, management, or control of the school in which the
45.29teacher is employed;
45.30(3) inefficiency in teaching or in the management of a school, consistent with
45.31subdivision 5, paragraph (b);
45.32(4) affliction with active tuberculosis or other communicable disease must be
45.33considered as cause for removal or suspension while the teacher is suffering from such
45.34disability; or
45.35(5) discontinuance of position or lack of pupils.
46.1For purposes of this paragraph, conduct unbecoming a teacher includes an unfair
46.2discriminatory practice described in section 363A.13.
46.3(b) A probationary or continuing-contract teacher must be discharged immediately
46.4upon receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the
46.5teacher's license has been revoked due to a conviction for child abuse or sexual abuse.
46.6EFFECTIVE DATE.This section applies to all collective bargaining agreements
46.7ratified after July 1, 2014.

46.8    Sec. 21. Minnesota Statutes 2010, section 123B.143, subdivision 1, is amended to read:
46.9    Subdivision 1. Contract; duties. All districts maintaining a classified secondary
46.10school must employ a superintendent who shall be an ex officio nonvoting member of the
46.11school board. The authority for selection and employment of a superintendent must be
46.12vested in the board in all cases. An individual employed by a board as a superintendent
46.13shall have an initial employment contract for a period of time no longer than three years
46.14from the date of employment. Any subsequent employment contract must not exceed a
46.15period of three years. A board, at its discretion, may or may not renew an employment
46.16contract. A board must not, by action or inaction, extend the duration of an existing
46.17employment contract. Beginning 365 days prior to the expiration date of an existing
46.18employment contract, a board may negotiate and enter into a subsequent employment
46.19contract to take effect upon the expiration of the existing contract. A subsequent contract
46.20must be contingent upon the employee completing the terms of an existing contract. If a
46.21contract between a board and a superintendent is terminated prior to the date specified in
46.22the contract, the board may not enter into another superintendent contract with that same
46.23individual that has a term that extends beyond the date specified in the terminated contract.
46.24A board may terminate a superintendent during the term of an employment contract for any
46.25of the grounds specified in section 122A.40, subdivision 9 or 13. A superintendent shall
46.26not rely upon an employment contract with a board to assert any other continuing contract
46.27rights in the position of superintendent under section 122A.40. Notwithstanding the
46.28provisions of sections 122A.40, subdivision 10 or 11, 123A.32, 123A.75, or any other law
46.29to the contrary, no individual shall have a right to employment as a superintendent based
46.30on order of employment in any district. If two or more districts enter into an agreement for
46.31the purchase or sharing of the services of a superintendent, the contracting districts have
46.32the absolute right to select one of the individuals employed to serve as superintendent
46.33in one of the contracting districts and no individual has a right to employment as the
46.34superintendent to provide all or part of the services based on order of employment in a
46.35contracting district. The superintendent of a district shall perform the following:
47.1    (1) visit and supervise the schools in the district, report and make recommendations
47.2about their condition when advisable or on request by the board;
47.3    (2) recommend to the board employment and dismissal of teachers;
47.4    (3) annually evaluate each school principal assigned responsibility for supervising
47.5a school building within the district, consistent with section 123B.147, subdivision 3,
47.6paragraph (b);
47.7(4) superintend school grading practices and examinations for promotions;
47.8    (4) (5) make reports required by the commissioner; and
47.9    (5) (6) perform other duties prescribed by the board.
47.10EFFECTIVE DATE.This section is effective for the 2013-2014 school year and
47.11later.

47.12    Sec. 22. Minnesota Statutes 2010, section 123B.147, subdivision 3, is amended to read:
47.13    Subd. 3. Duties; evaluation. (a) The principal shall provide administrative,
47.14supervisory, and instructional leadership services, under the supervision of the
47.15superintendent of schools of the district and in accordance with according to the policies,
47.16rules, and regulations of the school board of education, for the planning, management,
47.17operation, and evaluation of the education program of the building or buildings to which
47.18the principal is assigned.
47.19(b) To enhance a principal's leadership skills and support and improve teaching
47.20practices, school performance, and student achievement, a district must develop and
47.21implement a performance-based system for annually evaluating school principals assigned
47.22to supervise a school building within the district. The evaluation must be designed
47.23to improve teaching and learning by supporting the principal in shaping the school's
47.24professional environment and developing teacher quality, performance, and effectiveness.
47.25The annual evaluation must:
47.26(1) support and improve a principal's instructional leadership, organizational
47.27management, and professional development, and strengthen the principal's capacity in the
47.28areas of instruction, supervision, evaluation, and teacher development;
47.29(2) include formative and summative evaluations;
47.30(3) be consistent with a principal's job description, a district's long-term plans and
47.31goals, and the principal's own professional multiyear growth plans and goals, all of which
47.32must support the principal's leadership behaviors and practices, rigorous curriculum,
47.33school performance, and high-quality instruction;
47.34(4) include on-the-job observations and previous evaluations;
48.1(5) allow surveys to help identify a principal's effectiveness, leadership skills and
48.2processes, and strengths and weaknesses in exercising leadership in pursuit of school
48.3success;
48.4(6) use longitudinal data on student academic growth as an evaluation component
48.5and incorporate district achievement goals and targets;
48.6(7) be linked to professional development that emphasizes improved teaching and
48.7learning, curriculum and instruction, student learning, and a collaborative professional
48.8culture; and
48.9(8) for principals not meeting standards of professional practice or other criteria
48.10under this subdivision, implement a plan to improve the principal's performance and
48.11specify the procedure and consequence if the principal's performance is not improved.
48.12The provisions of this paragraph are intended to provide districts with sufficient
48.13flexibility to accommodate district needs and goals related to developing, supporting,
48.14and evaluating principals.
48.15EFFECTIVE DATE.This section is effective for the 2013-2014 school year and
48.16later.

48.17    Sec. 23. Minnesota Statutes 2010, section 123B.88, is amended by adding a
48.18subdivision to read:
48.19    Subd. 1a. Full-service school zones. The board may establish a full-service
48.20school zone by adopting a written resolution and may provide transportation for students
48.21attending a school in that full-service school zone. A full-service school zone may be
48.22established for a school that is located in an area with higher than average crime or other
48.23social and economic challenges and that provides education, health or human services, or
48.24other parental support in collaboration with a city, county, state, or nonprofit agency. The
48.25pupil transportation must be intended to stabilize enrollment and reduce mobility at the
48.26school located in a full-service school zone.

48.27    Sec. 24. Minnesota Statutes 2010, section 123B.92, subdivision 1, as amended by
48.28Laws 2011, chapter 103, section 3, is amended to read:
48.29    Subdivision 1. Definitions. For purposes of this section and section 125A.76, the
48.30terms defined in this subdivision have the meanings given to them.
48.31    (a) "Actual expenditure per pupil transported in the regular and excess transportation
48.32categories" means the quotient obtained by dividing:
48.33    (1) the sum of:
49.1    (i) all expenditures for transportation in the regular category, as defined in paragraph
49.2(b), clause (1), and the excess category, as defined in paragraph (b), clause (2), plus
49.3    (ii) an amount equal to one year's depreciation on the district's school bus fleet
49.4and mobile units computed on a straight line basis at the rate of 15 percent per year for
49.5districts operating a program under section 124D.128 for grades 1 to 12 for all students in
49.6the district and 12-1/2 percent per year for other districts of the cost of the fleet, plus
49.7    (iii) an amount equal to one year's depreciation on the district's type III vehicles, as
49.8defined in section 169.011, subdivision 71, which must be used a majority of the time for
49.9pupil transportation purposes, computed on a straight line basis at the rate of 20 percent
49.10per year of the cost of the type three school buses by:
49.11    (2) the number of pupils eligible for transportation in the regular category, as defined
49.12in paragraph (b), clause (1), and the excess category, as defined in paragraph (b), clause (2).
49.13    (b) "Transportation category" means a category of transportation service provided to
49.14pupils as follows:
49.15    (1) Regular transportation is:
49.16    (i) transportation to and from school during the regular school year for resident
49.17elementary pupils residing one mile or more from the public or nonpublic school they
49.18attend, and resident secondary pupils residing two miles or more from the public
49.19or nonpublic school they attend, excluding desegregation transportation and noon
49.20kindergarten transportation; but with respect to transportation of pupils to and from
49.21nonpublic schools, only to the extent permitted by sections 123B.84 to 123B.87;
49.22    (ii) transportation of resident pupils to and from language immersion programs;
49.23    (iii) transportation of a pupil who is a custodial parent and that pupil's child between
49.24the pupil's home and the child care provider and between the provider and the school, if
49.25the home and provider are within the attendance area of the school;
49.26    (iv) transportation to and from or board and lodging in another district, of resident
49.27pupils of a district without a secondary school; and
49.28    (v) transportation to and from school during the regular school year required under
49.29subdivision 3 for nonresident elementary pupils when the distance from the attendance
49.30area border to the public school is one mile or more, and for nonresident secondary pupils
49.31when the distance from the attendance area border to the public school is two miles or
49.32more, excluding desegregation transportation and noon kindergarten transportation.
49.33    For the purposes of this paragraph, a district may designate a licensed day care
49.34facility, school day care facility, respite care facility, the residence of a relative, or the
49.35residence of a person or other location chosen by the pupil's parent or guardian, or an
49.36after-school program for children operated by a political subdivision of the state, as the
50.1home of a pupil for part or all of the day, if requested by the pupil's parent or guardian,
50.2and if that facility, residence, or program is within the attendance area of the school the
50.3pupil attends.
50.4    (2) Excess transportation is:
50.5    (i) transportation to and from school during the regular school year for resident
50.6secondary pupils residing at least one mile but less than two miles from the public or
50.7nonpublic school they attend, and transportation to and from school for resident pupils
50.8residing less than one mile from school who are transported because of full-service school
50.9zones, extraordinary traffic, drug, or crime hazards; and
50.10    (ii) transportation to and from school during the regular school year required under
50.11subdivision 3 for nonresident secondary pupils when the distance from the attendance area
50.12border to the school is at least one mile but less than two miles from the public school
50.13they attend, and for nonresident pupils when the distance from the attendance area border
50.14to the school is less than one mile from the school and who are transported because of
50.15full-service school zones, extraordinary traffic, drug, or crime hazards.
50.16    (3) Desegregation transportation is transportation within and outside of the district
50.17during the regular school year of pupils to and from schools located outside their normal
50.18attendance areas under a plan for desegregation mandated by the commissioner or under
50.19court order.
50.20    (4) "Transportation services for pupils with disabilities" is:
50.21    (i) transportation of pupils with disabilities who cannot be transported on a regular
50.22school bus between home or a respite care facility and school;
50.23    (ii) necessary transportation of pupils with disabilities from home or from school to
50.24other buildings, including centers such as developmental achievement centers, hospitals,
50.25and treatment centers where special instruction or services required by sections 125A.03
50.26to 125A.24, 125A.26 to 125A.48, and 125A.65 are provided, within or outside the district
50.27where services are provided;
50.28    (iii) necessary transportation for resident pupils with disabilities required by sections
50.29125A.12 , and 125A.26 to 125A.48;
50.30    (iv) board and lodging for pupils with disabilities in a district maintaining special
50.31classes;
50.32    (v) transportation from one educational facility to another within the district for
50.33resident pupils enrolled on a shared-time basis in educational programs, and necessary
50.34transportation required by sections 125A.18, and 125A.26 to 125A.48, for resident pupils
50.35with disabilities who are provided special instruction and services on a shared-time basis
50.36or if resident pupils are not transported, the costs of necessary travel between public
51.1and private schools or neutral instructional sites by essential personnel employed by the
51.2district's program for children with a disability;
51.3    (vi) transportation for resident pupils with disabilities to and from board and lodging
51.4facilities when the pupil is boarded and lodged for educational purposes;
51.5(vii) transportation of pupils for a curricular field trip activity on a school bus
51.6equipped with a power lift when the power lift is required by a student's disability or
51.7section 504 plan; and
51.8(viii) services described in clauses (i) to (vii), when provided for pupils with
51.9disabilities in conjunction with a summer instructional program that relates to the pupil's
51.10individual education plan or in conjunction with a learning year program established
51.11under section 124D.128.
51.12    For purposes of computing special education initial aid under section 125A.76,
51.13subdivision 2 , the cost of providing transportation for children with disabilities includes
51.14(A) the additional cost of transporting a homeless student from a temporary nonshelter
51.15home in another district to the school of origin, or a formerly homeless student from a
51.16permanent home in another district to the school of origin but only through the end of the
51.17academic year; and (B) depreciation on district-owned school buses purchased after July 1,
51.182005, and used primarily for transportation of pupils with disabilities, calculated according
51.19to paragraph (a), clauses (ii) and (iii). Depreciation costs included in the disabled
51.20transportation category must be excluded in calculating the actual expenditure per pupil
51.21transported in the regular and excess transportation categories according to paragraph (a).
51.22    (5) "Nonpublic nonregular transportation" is:
51.23    (i) transportation from one educational facility to another within the district for
51.24resident pupils enrolled on a shared-time basis in educational programs, excluding
51.25transportation for nonpublic pupils with disabilities under clause (4);
51.26    (ii) transportation within district boundaries between a nonpublic school and a
51.27public school or a neutral site for nonpublic school pupils who are provided pupil support
51.28services pursuant to section 123B.44; and
51.29    (iii) late transportation home from school or between schools within a district for
51.30nonpublic school pupils involved in after-school activities.
51.31    (c) "Mobile unit" means a vehicle or trailer designed to provide facilities for
51.32educational programs and services, including diagnostic testing, guidance and counseling
51.33services, and health services. A mobile unit located off nonpublic school premises is a
51.34neutral site as defined in section 123B.41, subdivision 13.

51.35    Sec. 25. Minnesota Statutes 2010, section 124D.09, subdivision 5, is amended to read:
52.1    Subd. 5. Authorization; notification. Notwithstanding any other law to the
52.2contrary, an 11th or 12th grade pupil enrolled in a school or an American Indian-controlled
52.3tribal contract or grant school eligible for aid under section 124D.83, except a foreign
52.4exchange pupil enrolled in a district under a cultural exchange program, may apply to an
52.5eligible institution, as defined in subdivision 3, to enroll in nonsectarian courses offered by
52.6that postsecondary institution. Notwithstanding any other law to the contrary, a 9th or 10th
52.7grade pupil enrolled in a district or an American Indian-controlled tribal contract or grant
52.8school eligible for aid under section 124D.83, except a foreign exchange pupil enrolled in
52.9a district under a cultural exchange program, may apply to enroll in nonsectarian courses
52.10offered under subdivision 10, if after all 11th and 12th grade students have applied for a
52.11course, additional students are necessary to offer the course. If an institution accepts a
52.12secondary pupil for enrollment under this section, the institution shall send written notice
52.13to the pupil, the pupil's school or school district, and the commissioner within ten days of
52.14acceptance. The notice must indicate the course and hours of enrollment of that pupil. If
52.15the pupil enrolls in a course for postsecondary credit, the institution must notify the pupil
52.16about payment in the customary manner used by the institution.

52.17    Sec. 26. Minnesota Statutes 2010, section 124D.09, subdivision 7, is amended to read:
52.18    Subd. 7. Dissemination of information; notification of intent to enroll. By March
52.191 of each year, a district must provide general information about the program to all pupils
52.20in grades 8, 9, 10, and 11. To assist the district in planning, a pupil shall inform the district
52.21by March 30 of each year of the pupil's intent to enroll in postsecondary courses during
52.22the following school year. A pupil is not bound by notifying or not notifying the district
52.23by March 30.

52.24    Sec. 27. Minnesota Statutes 2010, section 124D.09, subdivision 8, is amended to read:
52.25    Subd. 8. Limit on participation. A pupil who first enrolls in grade 9 may not
52.26enroll in postsecondary courses under this section for secondary credit for more than
52.27the equivalent of four academic years. A pupil who first enrolls in grade 10 may not
52.28enroll in postsecondary courses under this section for secondary credit for more than
52.29the equivalent of three academic years. A pupil who first enrolls in grade 11 may not
52.30enroll in postsecondary courses under this section for secondary credit for more than the
52.31equivalent of two academic years. A pupil who first enrolls in grade 12 may not enroll in
52.32postsecondary courses under this section for secondary credit for more than the equivalent
52.33of one academic year. If a pupil in grade 9, 10, 11, or 12 first enrolls in a postsecondary
52.34course for secondary credit during the school year, the time of participation shall be
53.1reduced proportionately. If a pupil is in a learning year or other year-round program and
53.2begins each grade in the summer session, summer sessions shall not be counted against the
53.3time of participation. A pupil who has graduated from high school cannot participate in a
53.4program under this section. A pupil who has completed course requirements for graduation
53.5but who has not received a diploma may participate in the program under this section.

53.6    Sec. 28. Minnesota Statutes 2010, section 124D.091, subdivision 2, is amended to read:
53.7    Subd. 2. Eligibility. A district that offers a concurrent enrollment course according
53.8to an agreement under section 124D.09, subdivision 10, is eligible to receive aid for the
53.9costs of providing postsecondary courses at the high school. Beginning in fiscal year 2011,
53.10districts only are eligible for aid if the college or university concurrent enrollment courses
53.11offered by the district are accredited by the National Alliance of Concurrent Enrollment
53.12Partnership, in the process of being accredited, or are shown by clear evidence to be of
53.13comparable standard to accredited courses, or are technical courses within a recognized
53.14career and technical education program of study approved by the commissioner of
53.15education and the chancellor of the Minnesota State Colleges and Universities.

53.16    Sec. 29. Minnesota Statutes 2010, section 124D.10, as amended by Laws 2011,
53.17chapters 27, section 2, and 90, section 3, is amended to read:
53.18124D.10 CHARTER SCHOOLS.
53.19    Subdivision 1. Purposes. (a) The purpose of this section is to:
53.20    (1) improve pupil learning and student achievement;
53.21    (2) increase learning opportunities for pupils;
53.22    (3) encourage the use of different and innovative teaching methods;
53.23    (4) measure learning outcomes and create different and innovative forms of
53.24measuring outcomes;
53.25    (5) establish new forms of accountability for schools; and
53.26    (6) create new professional opportunities for teachers, including the opportunity to
53.27be responsible for the learning program at the school site.
53.28    (b) This section does not provide a means to keep open a school that otherwise would
53.29be closed or to reestablish a school that has been closed. Applicants in these circumstances
53.30bear the burden of proving that conversion to a charter school or establishment of a new
53.31charter school fulfills the purposes specified in this subdivision, independent of the
53.32school's closing a school board decides to close. However, a school board may endorse
53.33or authorize the establishing of a charter school to replace the school the board decided
53.34to close. Applicants seeking a charter under this circumstance must demonstrate to the
54.1authorizer that the charter sought is substantially different in purpose and program from
54.2the school the board closed and that the proposed charter satisfies the requirements of this
54.3subdivision. If the school board that closed the school authorizes the charter, it must
54.4document in its affidavit to the commissioner that the charter is substantially different in
54.5program and purpose from the school it closed.
54.6    An authorizer shall not approve an application submitted by a charter school
54.7developer under subdivision 4, paragraph (a), if the application does not comply with this
54.8subdivision. The commissioner shall not approve an affidavit submitted by an authorizer
54.9under subdivision 4, paragraph (b), if the affidavit does not comply with this subdivision.
54.10    Subd. 2. Applicability. This section applies only to charter schools formed and
54.11operated under this section.
54.12    Subd. 3. Authorizer. (a) For purposes of this section, the terms defined in this
54.13subdivision have the meanings given them.
54.14    "Application" to receive approval as an authorizer means the proposal an eligible
54.15authorizer submits to the commissioner under paragraph (c) before that authorizer is able
54.16to submit any affidavit to charter to a school.
54.17    "Application" under subdivision 4 means the charter school business plan a
54.18school developer submits to an authorizer for approval to establish a charter school that
54.19documents the school developer's mission statement, school purposes, program design,
54.20financial plan, governance and management structure, and background and experience,
54.21plus any other information the authorizer requests. The application also shall include a
54.22"statement of assurances" of legal compliance prescribed by the commissioner.
54.23    "Affidavit" means a written statement the authorizer submits to the commissioner
54.24for approval to establish a charter school under subdivision 4 attesting to its review and
54.25approval process before chartering a school.
54.26    "Affidavit" means the form an authorizer submits to the commissioner that is a
54.27precondition to a charter school organizing an affiliated nonprofit building corporation
54.28under subdivision 17a.
54.29    (b) The following organizations may authorize one or more charter schools:
54.30    (1) a school board; intermediate school district school board; education district
54.31organized under sections 123A.15 to 123A.19;
54.32    (2) a charitable organization under section 501(c)(3) of the Internal Revenue Code
54.33of 1986, excluding a nonpublic sectarian or religious institution, any person other than a
54.34natural person that directly or indirectly, through one or more intermediaries, controls,
54.35is controlled by, or is under common control with the nonpublic sectarian or religious
55.1institution, and any other charitable organization under this clause that in the federal IRS
55.2Form 1023, Part IV, describes activities indicating a religious purpose, that:
55.3    (i) is a member of the Minnesota Council of Nonprofits or the Minnesota Council on
55.4Foundations;
55.5    (ii) is registered with the attorney general's office; and
55.6    (iii) reports an end-of-year fund balance of at least $2,000,000; and
55.7    (iv) is incorporated in the state of Minnesota and has been operating continuously
55.8for at least five years but does not operate a charter school;
55.9    (3) a Minnesota private college, notwithstanding clause (2), that grants two- or
55.10four-year degrees and is registered with the Minnesota Office of Higher Education under
55.11chapter 136A; community college, state university, or technical college governed by the
55.12Board of Trustees of the Minnesota State Colleges and Universities; or the University of
55.13Minnesota; or
55.14    (4) a nonprofit corporation subject to chapter 317A, described in section 317A.905,
55.15and exempt from federal income tax under section 501(c)(6) of the Internal Revenue Code
55.16of 1986, may authorize one or more charter schools if the charter school has operated
55.17for at least three years under a different authorizer and if the nonprofit corporation has
55.18existed for at least 25 years.
55.19    (5) no more than three single-purpose authorizers that are charitable, nonsectarian
55.20organizations formed under section 501(c)(3) of the Internal Revenue Code of 1986 and
55.21incorporated in the state of Minnesota whose sole purpose is to charter schools. Eligible
55.22organizations interested in being approved as an authorizer under this paragraph must
55.23submit a proposal to the commissioner that includes the provisions of paragraph (c) and
55.24a five-year financial plan. Such authorizers shall consider and approve applications
55.25using the criteria provided in subdivision 4 and shall not limit the applications it solicits,
55.26considers, or approves to any single curriculum, learning program, or method.
55.27    (c) An eligible authorizer under this subdivision must apply to the commissioner for
55.28approval as an authorizer before submitting any affidavit to the commissioner to charter
55.29a school. The application for approval as a charter school authorizer must demonstrate
55.30the applicant's ability to implement the procedures and satisfy the criteria for chartering a
55.31school under this section. The commissioner must approve or disapprove an application
55.32within 60 45 business days of the application deadline. If the commissioner disapproves
55.33the application, the commissioner must notify the applicant of the specific deficiencies
55.34in writing and the applicant then has 20 business days to address the deficiencies to the
55.35commissioner's satisfaction. After the 20 business days expire, the commissioner has 15
55.36business days to make a final decision to approve or disapprove the application. Failing to
56.1address the deficiencies to the commissioner's satisfaction makes an applicant ineligible to
56.2be an authorizer. The commissioner, in establishing criteria for approval, must consider
56.3the applicant's:
56.4    (1) capacity and infrastructure;
56.5    (2) application criteria and process;
56.6    (3) contracting process;
56.7    (4) ongoing oversight and evaluation processes; and
56.8    (5) renewal criteria and processes.
56.9    (d) The affidavit to be submitted to and evaluated by An applicant must include in
56.10its application to the commissioner must include to be an approved authorizer at least
56.11the following:
56.12    (1) how chartering schools is a way for the organization to carry out its mission;
56.13    (2) a description of the capacity of the organization to serve as an authorizer,
56.14including the personnel who will perform the authorizing duties, their qualifications, the
56.15amount of time they will be assigned to this responsibility, and the financial resources
56.16allocated by the organization to this responsibility;
56.17    (3) a description of the application and review process the authorizer will use to make
56.18decisions regarding the granting of charters, which will include at least the following:
56.19    (i) how the statutory purposes defined in subdivision 1 are addressed;
56.20    (ii) the mission, goals, program model, and student performance expectations;
56.21    (iii) an evaluation plan for the school that includes criteria for evaluating educational,
56.22organizational, and fiscal plans;
56.23    (iv) the school's governance plan;
56.24    (v) the financial management plan; and
56.25    (vi) the administration and operations plan;
56.26    (4) a description of the type of contract it will arrange with the schools it charters
56.27that meets the provisions of subdivision 6 and defines the rights and responsibilities of the
56.28charter school for governing its educational program, controlling its funds, and making
56.29school management decisions;
56.30    (5) the process to be used for providing ongoing oversight of the school consistent
56.31with the contract expectations specified in clause (4) that assures that the schools chartered
56.32are complying with both the provisions of applicable law and rules, and with the contract;
56.33    (6) a description of the criteria and process the authorizer will use to grant expanded
56.34applications under subdivision 4, paragraph (j);
56.35    (7) the process for making decisions regarding the renewal or termination of
56.36the school's charter based on evidence that demonstrates the academic, organizational,
57.1and financial competency of the school, including its success in increasing student
57.2achievement and meeting the goals of the charter school agreement; and
57.3    (7) (8) an assurance specifying that the organization is committed to serving as
57.4an authorizer for the full five-year term.
57.5    (e) A disapproved applicant under this paragraph section may resubmit an
57.6application during a future application period.
57.7    (f) If the governing board of an approved authorizer that has chartered multiple
57.8schools votes to withdraw as an approved authorizer for a reason unrelated to any
57.9cause under subdivision 23, the authorizer must notify all its chartered schools and the
57.10commissioner in writing by July 15 of its intent to withdraw as an authorizer on June 30 in
57.11the next calendar year. The commissioner may approve the transfer of a charter school
57.12to a new authorizer under this paragraph after the new authorizer submits an affidavit to
57.13the commissioner.
57.14    (e) (g) The authorizer must participate in department-approved training.
57.15    (f) (h) An authorizer that chartered a school before August 1, 2009, must apply by
57.16June 30, 2012, to the commissioner for approval, under paragraph (c), to continue as an
57.17authorizer under this section. For purposes of this paragraph, an authorizer that fails to
57.18submit a timely application is ineligible to charter a school.
57.19    (g) (i) The commissioner shall review an authorizer's performance every five years
57.20in a manner and form determined by the commissioner and may review an authorizer's
57.21performance more frequently at the commissioner's own initiative or at the request of a
57.22charter school operator, charter school board member, or other interested party. The
57.23commissioner, after completing the review, shall transmit a report with findings to the
57.24authorizer. If, consistent with this section, the commissioner finds that an authorizer has
57.25not fulfilled the requirements of this section, the commissioner may subject the authorizer
57.26to corrective action, which may include terminating the contract with the charter school
57.27board of directors of a school it chartered. The commissioner must notify the authorizer
57.28in writing of any findings that may subject the authorizer to corrective action and
57.29the authorizer then has 15 business days to request an informal hearing before the
57.30commissioner takes corrective action. If the commissioner terminates a contract between
57.31an authorizer and a charter school under this paragraph, the commissioner may assist the
57.32charter school in acquiring a new authorizer.
57.33    (h) (j) The commissioner may at any time take corrective action against an
57.34authorizer, including terminating an authorizer's ability to charter a school for:
57.35    (1) failing to demonstrate the criteria under paragraph (c) under which the
57.36commissioner approved the authorizer;
58.1    (2) violating a term of the chartering contract between the authorizer and the charter
58.2school board of directors; or
58.3    (3) unsatisfactory performance as an approved authorizer; or
58.4    (4) any good cause shown that provides the commissioner a legally sufficient reason
58.5to take corrective action against an authorizer.
58.6    Subd. 4. Formation of school. (a) An authorizer, after receiving an application from
58.7a school developer, may charter a licensed teacher under section 122A.18, subdivision
58.81 , or a group of individuals that includes one or more licensed teachers under section
58.9122A.18, subdivision 1 , to operate a school subject to the commissioner's approval of the
58.10authorizer's affidavit under paragraph (b). The school must be organized and operated
58.11as a cooperative under chapter 308A or nonprofit corporation under chapter 317A and
58.12the provisions under the applicable chapter shall apply to the school except as provided
58.13in this section.
58.14    Notwithstanding sections 465.717 and 465.719, a school district, subject to this
58.15section and section 124D.11, may create a corporation for the purpose of establishing a
58.16charter school.
58.17    (b) Before the operators may establish and operate a school, the authorizer must file
58.18an affidavit with the commissioner stating its intent to charter a school. An authorizer
58.19must file a separate affidavit for each school it intends to charter. The affidavit must
58.20state the terms and conditions under which the authorizer would charter a school and
58.21how the authorizer intends to oversee the fiscal and student performance of the charter
58.22school and to comply with the terms of the written contract between the authorizer
58.23and the charter school board of directors under subdivision 6. The commissioner must
58.24approve or disapprove the authorizer's affidavit within 60 business days of receipt of the
58.25affidavit. If the commissioner disapproves the affidavit, the commissioner shall notify
58.26the authorizer of the deficiencies in the affidavit and the authorizer then has 20 business
58.27days to address the deficiencies. If the authorizer does not address deficiencies to the
58.28commissioner's satisfaction, the commissioner's disapproval is final. Failure to obtain
58.29commissioner approval precludes an authorizer from chartering the school that is the
58.30subject of this affidavit.
58.31    (c) The authorizer may prevent an approved charter school from opening for
58.32operation if, among other grounds, the charter school violates this section or does not meet
58.33the ready-to-open standards that are part of the authorizer's oversight and evaluation
58.34process or are stipulated in the charter school contract.
58.35    (d) The operators authorized to organize and operate a school, before entering into a
58.36contract or other agreement for professional or other services, goods, or facilities, must
59.1incorporate as a cooperative under chapter 308A or as a nonprofit corporation under
59.2chapter 317A and must establish a board of directors composed of at least five members
59.3who are not related parties until a timely election for members of the ongoing charter
59.4school board of directors is held according to the school's articles and bylaws under
59.5paragraph (f). A charter school board of directors must be composed of at least five
59.6members who are not related parties. Staff members employed at the school, including
59.7teachers providing instruction under a contract with a cooperative, and all parents or legal
59.8guardians of children enrolled in the school are the voters eligible to elect the members
59.9of the school's board of directors. A charter school must notify eligible voters of the
59.10school board election dates at least 30 days before the election. Board of director meetings
59.11must comply with chapter 13D.
59.12    (e) Upon the request of an individual, the charter school must make available in
59.13a timely fashion the minutes of meetings of the board of directors, and of members
59.14and committees having any board-delegated authority; financial statements showing all
59.15operations and transactions affecting income, surplus, and deficit during the school's last
59.16annual accounting period; and a balance sheet summarizing assets and liabilities on the
59.17closing date of the accounting period. A charter school also must post on its official Web
59.18site information identifying its authorizer and indicate how to contact that authorizer and
59.19include that same information about its authorizer in other school materials that it makes
59.20available to the public.
59.21    (f) Every charter school board member shall attend department-approved ongoing
59.22training throughout the member's term on board governance, including training on the
59.23board's role and responsibilities, employment policies and practices, and financial
59.24management. A board member who does not begin the required initial training within six
59.25months of after being seated and complete the required that training within 12 months of
59.26being seated on the board is ineligible to continue to serve as a board member.
59.27    (g) The ongoing board must be elected before the school completes its third year of
59.28operation. Board elections must be held during a time when the school is in session year
59.29but may not be conducted on days when the school is closed for holidays or vacations.
59.30The charter school board of directors shall be composed of at least five nonrelated
59.31members and include: (i) at least one licensed teacher employed at the school or a licensed
59.32teacher providing instruction under a contact contract between the charter school and a
59.33cooperative; (ii) the parent or legal guardian of a student enrolled in the charter school
59.34who is not an employee of the charter school; and (iii) an interested community member
59.35who is not employed by the charter school and does not have a child enrolled in the
59.36school. The board may be a teacher majority board composed of teachers described in this
60.1paragraph. The chief financial officer and the chief administrator are may only serve as
60.2ex-officio nonvoting board members and may not serve as a voting member of the board.
60.3Charter school employees shall not serve on the board unless item (i) applies. Contractors
60.4providing facilities, goods, or services to a charter school shall not serve on the board of
60.5directors of the charter school. Board bylaws shall outline the process and procedures for
60.6changing the board's governance model, consistent with chapter 317A. A board may
60.7change its governance model only:
60.8    (1) by a majority vote of the board of directors and the licensed teachers employed
60.9by the school, including licensed teachers providing instruction under a contract between
60.10the school and a cooperative; and
60.11    (2) with the authorizer's approval.
60.12    Any change in board governance must conform with the board structure established
60.13under this paragraph.
60.14    (h) The granting or renewal of a charter by an authorizer must not be conditioned
60.15upon the bargaining unit status of the employees of the school.
60.16    (i) The granting or renewal of a charter school by an authorizer must not be
60.17contingent on the charter school being required to contract, lease, or purchase services
60.18from the authorizer. Any potential contract, lease, or purchase of service from an
60.19authorizer must be disclosed to the commissioner, accepted through an open bidding
60.20process, and be a separate contract from the charter contract. The school must document
60.21the open bidding process. An authorizer must not enter into a contract to provide
60.22management and financial services for a school that it authorizes, unless the school
60.23documents that it received at least two competitive bids.
60.24    (j) An authorizer may permit the board of directors of a charter school to expand
60.25the operation of the charter school to additional sites or to add additional grades at the
60.26school beyond those described in the authorizer's original affidavit as approved by
60.27the commissioner only after submitting a supplemental affidavit for approval to the
60.28commissioner in a form and manner prescribed by the commissioner. The supplemental
60.29affidavit must show document that:
60.30    (1) the expansion proposed by the charter school is supported by expansion plan
60.31demonstrates need and projected enrollment;
60.32    (2) the charter school expansion is warranted, at a minimum, by longitudinal data
60.33demonstrating students' improved academic performance and growth on statewide
60.34assessments under chapter 120B;
60.35    (3) the charter school is fiscally financially sound and has the financial capacity the
60.36financing it needs to implement the proposed expansion exists; and
61.1    (4) the authorizer finds that the charter school has the governance structure and
61.2management capacity to carry out its expansion.
61.3    (k) The commissioner shall have 30 business days to review and comment on the
61.4supplemental affidavit. The commissioner shall notify the authorizer of any deficiencies in
61.5the supplemental affidavit and the authorizer then has 30 20 business days to address, to
61.6the commissioner's satisfaction, any deficiencies in the supplemental affidavit. The school
61.7may not expand grades or add sites until the commissioner has approved the supplemental
61.8affidavit. The commissioner's approval or disapproval of a supplemental affidavit is final.
61.9    Subd. 4a. Conflict of interest. (a) An individual is prohibited from serving as a
61.10member of the charter school board of directors if the individual, an immediate family
61.11member, or the individual's partner is an owner, employee or agent of, or a contractor
61.12with a for-profit or nonprofit entity or individual with whom the charter school contracts,
61.13directly or indirectly, for professional services, goods, or facilities. A violation of this
61.14prohibition renders a contract voidable at the option of the commissioner or the charter
61.15school board of directors. A member of a charter school board of directors who violates
61.16this prohibition is individually liable to the charter school for any damage caused by
61.17the violation.
61.18    (b) No member of the board of directors, employee, officer, or agent of a charter
61.19school shall participate in selecting, awarding, or administering a contract if a conflict
61.20of interest exists. A conflict exists when:
61.21    (1) the board member, employee, officer, or agent;
61.22    (2) the immediate family of the board member, employee, officer, or agent;
61.23    (3) the partner of the board member, employee, officer, or agent; or
61.24    (4) an organization that employs, or is about to employ any individual in clauses
61.25(1) to (3),
61.26has a financial or other interest in the entity with which the charter school is contracting.
61.27A violation of this prohibition renders the contract void.
61.28    (c) Any employee, agent, or board member of the authorizer who participates
61.29in the initial review, approval, ongoing oversight, evaluation, or the charter renewal or
61.30nonrenewal process or decision is ineligible to serve on the board of directors of a school
61.31chartered by that authorizer.
61.32    (d) An individual may serve as a member of the board of directors if no conflict of
61.33interest under paragraph (a) exists.
61.34    (e) The conflict of interest provisions under this subdivision do not apply to
61.35compensation paid to a teacher employed by the charter school who also serves as a
61.36member of the board of directors.
62.1    (f) The conflict of interest provisions under this subdivision do not apply to a teacher
62.2who provides services to a charter school through a cooperative formed under chapter
62.3308A when the teacher also serves on the charter school board of directors.
62.4    Subd. 5. Conversion of existing schools. A board of an independent or special
62.5school district may convert one or more of its existing schools to charter schools under
62.6this section if 60 percent of the full-time teachers at the school sign a petition seeking
62.7conversion. The conversion must occur at the beginning of an academic year.
62.8    Subd. 6. Charter contract. The authorization for a charter school must be in the
62.9form of a written contract signed by the authorizer and the board of directors of the charter
62.10school. The contract must be completed within 45 business days of the commissioner's
62.11approval of the authorizer's affidavit. The authorizer shall submit to the commissioner a
62.12copy of the signed charter contract within ten business days of its execution. The contract
62.13for a charter school must be in writing and contain at least the following:
62.14    (1) a declaration of the purposes in subdivision 1 that the school intends to carry out
62.15and how the school will report its implementation of those purposes;
62.16    (2) a description of the school program and the specific academic and nonacademic
62.17outcomes that pupils must achieve;
62.18    (3) a statement of admission policies and procedures;
62.19    (4) a governance, management, and administration plan for the school;
62.20    (5) signed agreements from charter school board members to comply with all
62.21federal and state laws governing organizational, programmatic, and financial requirements
62.22applicable to charter schools;
62.23    (6) the criteria, processes, and procedures that the authorizer will use for ongoing
62.24oversight of operational, financial, and academic performance;
62.25    (7) the performance evaluation that is a prerequisite for reviewing a charter contract
62.26under subdivision 15;
62.27    (8) types and amounts of insurance liability coverage to be obtained by the charter
62.28school;
62.29    (9) consistent with subdivision 25, paragraph (d), a provision to indemnify and hold
62.30harmless the authorizer and its officers, agents, and employees from any suit, claim,
62.31or liability arising from any operation of the charter school, and the commissioner and
62.32department officers, agents, and employees notwithstanding section 3.736;
62.33    (10) the term of the initial contract, which may be up to three years for an initial
62.34contract plus an additional preoperational planning year, and up to five years for a renewed
62.35contract or a contract with a new authorizer after a transfer of authorizers, if warranted by
62.36the school's academic, financial, and operational performance;
63.1    (10) (11) how the board of directors or the operators of the charter school will
63.2provide special instruction and services for children with a disability under sections
63.3125A.03 to 125A.24, and 125A.65, a description of the financial parameters within
63.4which the charter school will operate to provide the special instruction and services to
63.5children with a disability;
63.6    (11) (12) the process and criteria the authorizer intends to use to monitor and
63.7evaluate the fiscal and student performance of the charter school, consistent with
63.8subdivision 15; and
63.9    (12) (13) the plan for an orderly closing of the school under chapter 308A or 317A,
63.10if the closure is a termination for cause, a voluntary termination, or a nonrenewal of
63.11the contract, and that includes establishing the responsibilities of the school board of
63.12directors and the authorizer and notifying the commissioner, authorizer, school district in
63.13which the charter school is located, and parents of enrolled students about the closure,
63.14the transfer of student records to students' resident districts, and procedures for closing
63.15financial operations.
63.16    Subd. 6a. Audit report. (a) The charter school must submit an audit report to the
63.17commissioner and its authorizer by December 31 each year.
63.18    (b) The charter school, with the assistance of the auditor conducting the audit, must
63.19include with the report a copy of all charter school agreements for corporate management
63.20services. If the entity that provides the professional services to the charter school is
63.21exempt from taxation under section 501 of the Internal Revenue Code of 1986, that entity
63.22must file with the commissioner by February 15 a copy of the annual return required under
63.23section 6033 of the Internal Revenue Code of 1986.
63.24    (c) If the commissioner receives an audit report indicating finds that a material
63.25weakness exists in the financial reporting systems of a charter school, the charter school
63.26must submit a written report to the commissioner explaining how the material weakness
63.27will be resolved. An auditor, as a condition of providing financial services to a charter
63.28school, must agree to make available information about a charter school's financial audit
63.29to the commissioner and authorizer upon request.
63.30    Subd. 7. Public status; exemption from statutes and rules. A charter school is
63.31a public school and is part of the state's system of public education. A charter school is
63.32exempt from all statutes and rules applicable to a school, school board, or school district
63.33unless a statute or rule is made specifically applicable to a charter school or is included
63.34in this section.
63.35    Subd. 8. Federal, state, and local requirements. (a) A charter school shall meet all
63.36federal, state, and local health and safety requirements applicable to school districts.
64.1    (b) A school must comply with statewide accountability requirements governing
64.2standards and assessments in chapter 120B.
64.3    (c) A school authorized by a school board may be located in any district, unless the
64.4school board of the district of the proposed location disapproves by written resolution.
64.5    (d) A charter school must be nonsectarian in its programs, admission policies,
64.6employment practices, and all other operations. An authorizer may not authorize a charter
64.7school or program that is affiliated with a nonpublic sectarian school or a religious
64.8institution. A charter school student must be released for religious instruction, consistent
64.9with section 120A.22, subdivision 12, clause (3).
64.10    (e) Charter schools must not be used as a method of providing education or
64.11generating revenue for students who are being home-schooled.
64.12    (f) The primary focus of a charter school must be to provide a comprehensive
64.13program of instruction for at least one grade or age group from five through 18 years
64.14of age. Instruction may be provided to people younger than five years and older than
64.1518 years of age.
64.16    (g) A charter school may not charge tuition.
64.17    (h) A charter school is subject to and must comply with chapter 363A and section
64.18121A.04 .
64.19    (i) A charter school is subject to and must comply with the Pupil Fair Dismissal
64.20Act, sections 121A.40 to 121A.56, and the Minnesota Public School Fee Law, sections
64.21123B.34 to 123B.39.
64.22    (j) A charter school is subject to the same financial audits, audit procedures, and
64.23audit requirements as a district. Audits must be conducted in compliance with generally
64.24accepted governmental auditing standards, the federal Single Audit Act, if applicable,
64.25and section 6.65. A charter school is subject to and must comply with sections 15.054;
64.26118A.01 ; 118A.02; 118A.03; 118A.04; 118A.05; 118A.06; 471.38; 471.391; 471.392; and
64.27471.425 . The audit must comply with the requirements of sections 123B.75 to 123B.83,
64.28except to the extent deviations are necessary because of the program at the school.
64.29Deviations must be approved by the commissioner and authorizer. The Department of
64.30Education, state auditor, legislative auditor, or authorizer may conduct financial, program,
64.31or compliance audits. A charter school determined to be in statutory operating debt under
64.32sections 123B.81 to 123B.83 must submit a plan under section 123B.81, subdivision 4.
64.33    (k) A charter school is a district for the purposes of tort liability under chapter 466.
64.34    (l) A charter school must comply with chapters 13 and 13D; and sections 120A.22,
64.35subdivision 7 ; 121A.75; and 260B.171, subdivisions 3 and 5.
65.1    (m) A charter school is subject to the Pledge of Allegiance requirement under
65.2section 121A.11, subdivision 3.
65.3    (n) A charter school offering online courses or programs must comply with section
65.4124D.095 .
65.5    (o) A charter school and charter school board of directors are subject to chapter 181.
65.6    (p) A charter school must comply with section 120A.22, subdivision 7, governing
65.7the transfer of students' educational records and sections 138.163 and 138.17 governing
65.8the management of local records.
65.9    (q) A charter school that provides early childhood health and developmental
65.10screening must comply with sections 121A.16 to 121A.19.
65.11(r) A charter school that provides school-sponsored youth athletic activities must
65.12comply with section 121A.38.
65.13    Subd. 8a. Aid reduction. The commissioner may reduce a charter school's state aid
65.14under section 127A.42 or 127A.43 if the charter school board fails to correct a violation
65.15under this section.
65.16    Subd. 8b. Aid reduction for violations. The commissioner may reduce a charter
65.17school's state aid by an amount not to exceed 60 percent of the charter school's basic
65.18revenue for the period of time that a violation of law occurs.
65.19    Subd. 9. Admission requirements. A charter school may limit admission to:
65.20    (1) pupils within an age group or grade level;
65.21    (2) pupils who are eligible to participate in the graduation incentives program under
65.22section 124D.68; or
65.23    (3) residents of a specific geographic area in which the school is located when the
65.24majority of students served by the school are members of underserved populations.
65.25    A charter school shall enroll an eligible pupil who submits a timely application,
65.26unless the number of applications exceeds the capacity of a program, class, grade level, or
65.27building. In this case, pupils must be accepted by lot. The charter school must develop
65.28and publish a lottery policy and process that it must use when accepting pupils by lot.
65.29    A charter school shall give enrollment preference for enrollment to a sibling of an
65.30enrolled pupil and to a foster child of that pupil's parents and may give preference for
65.31enrolling children of the school's teachers staff before accepting other pupils by lot.
65.32    A charter school may not limit admission to pupils on the basis of intellectual ability,
65.33measures of achievement or aptitude, or athletic ability and may not establish any criteria
65.34or requirements for admission that are inconsistent with this subdivision.
66.1    The charter school shall not distribute any services or goods of value to students,
66.2parents, or guardians as an inducement, term, or condition of enrolling a student in a
66.3charter school.
66.4    Subd. 10. Pupil performance. A charter school must design its programs to at
66.5least meet the outcomes adopted by the commissioner for public school students. In
66.6the absence of the commissioner's requirements, the school must meet the outcomes
66.7contained in the contract with the authorizer. The achievement levels of the outcomes
66.8contained in the contract may exceed the achievement levels of any outcomes adopted by
66.9the commissioner for public school students.
66.10    Subd. 11. Employment and other operating matters. (a) A charter school must
66.11employ or contract with necessary teachers, as defined by section 122A.15, subdivision 1,
66.12who hold valid licenses to perform the particular service for which they are employed in
66.13the school. The charter school's state aid may be reduced under section 127A.43 if the
66.14school employs a teacher who is not appropriately licensed or approved by the board of
66.15teaching. The school may employ necessary employees who are not required to hold
66.16teaching licenses to perform duties other than teaching and may contract for other services.
66.17The school may discharge teachers and nonlicensed employees. The charter school board
66.18is subject to section 181.932. When offering employment to a prospective employee, a
66.19charter school must give that employee a written description of the terms and conditions
66.20of employment and the school's personnel policies.
66.21    (b) A person, without holding a valid administrator's license, may perform
66.22administrative, supervisory, or instructional leadership duties. The board of directors shall
66.23establish qualifications for persons that hold administrative, supervisory, or instructional
66.24leadership roles. The qualifications shall include at least the following areas: instruction
66.25and assessment; human resource and personnel management; financial management;
66.26legal and compliance management; effective communication; and board, authorizer, and
66.27community relationships. The board of directors shall use those qualifications as the basis
66.28for job descriptions, hiring, and performance evaluations of those who hold administrative,
66.29supervisory, or instructional leadership roles. The board of directors and an individual
66.30who does not hold a valid administrative license and who serves in an administrative,
66.31supervisory, or instructional leadership position shall develop a professional development
66.32plan. Documentation of the implementation of the professional development plan of these
66.33persons shall be included in the school's annual report.
66.34    (c) The board of directors also shall decide matters related to the operation of the
66.35school, including budgeting, curriculum and operating procedures.
67.1    Subd. 12. Pupils with a disability. A charter school must comply with sections
67.2125A.02 , 125A.03 to 125A.24, and 125A.65 and rules relating to the education of pupils
67.3with a disability as though it were a district.
67.4    Subd. 13. Length of school year. A charter school must provide instruction
67.5each year for at least the number of days required by section 120A.41. It may provide
67.6instruction throughout the year according to sections 124D.12 to 124D.127 or 124D.128.
67.7    Subd. 14. Annual public reports. A charter school must publish an annual report
67.8approved by the board of directors. The annual report must at least include information
67.9on school enrollment, student attrition, governance and management, staffing, finances,
67.10academic performance, operational performance, innovative practices and implementation,
67.11and future plans. A charter school must distribute the annual report by publication, mail,
67.12or electronic means to the commissioner, authorizer, school employees, and parents and
67.13legal guardians of students enrolled in the charter school and must also post the report on
67.14the charter school's official Web site. The reports are public data under chapter 13.
67.15    Subd. 15. Review and comment. (a) The authorizer shall provide a formal written
67.16evaluation of the school's performance before the authorizer renews the charter contract.
67.17The department must review and comment on the authorizer's evaluation process at the
67.18time the authorizer submits its application for approval and each time the authorizer
67.19undergoes its five-year review under subdivision 3, paragraph (e).
67.20    (b) An authorizer shall monitor and evaluate the fiscal, operational, and student
67.21performance of the school, and may for this purpose annually assess a charter school
67.22a fee according to paragraph (c). The agreed-upon fee structure must be stated in the
67.23charter school contract.
67.24    (c) The fee that each charter school pays to an authorizer each year is the greater of:
67.25    (1) the basic formula allowance for that year; or
67.26    (2) the lesser of:
67.27    (i) the maximum fee factor times the basic formula allowance for that year; or
67.28    (ii) the fee factor times the basic formula allowance for that year times the charter
67.29school's adjusted marginal cost pupil units for that year. The fee factor equals .005 in fiscal
67.30year 2010, .01 in fiscal year 2011, .013 in fiscal year 2012, and .015 in fiscal years 2013
67.31and later. The maximum fee factor equals 1.5 in fiscal year 2010, 2.0 in fiscal year 2011,
67.323.0 in fiscal year 2012, and 4.0 in fiscal years 2013 and later.
67.33    (d) The department and any charter school it charters must not assess or pay a fee
67.34under paragraphs (b) and (c).
67.35    (e) For the preoperational planning period, the authorizer may assess a charter school
67.36a fee equal to the basic formula allowance.
68.1    (f) By September 30 of each year, an authorizer shall submit to the commissioner
68.2a statement of expenditures related to chartering activities during the previous school
68.3year ending June 30. A copy of the statement shall be given to all schools chartered by
68.4the authorizer.
68.5    Subd. 16. Transportation. (a) A charter school after its first fiscal year of operation
68.6by March 1 of each fiscal year and a charter school by July 1 of its first fiscal year of
68.7operation must notify the district in which the school is located and the Department of
68.8Education if it will provide its own transportation or use the transportation services of the
68.9district in which it is located for the fiscal year.
68.10    (b) If a charter school elects to provide transportation for pupils, the transportation
68.11must be provided by the charter school within the district in which the charter school is
68.12located. The state must pay transportation aid to the charter school according to section
68.13124D.11, subdivision 2 .
68.14    For pupils who reside outside the district in which the charter school is located, the
68.15charter school is not required to provide or pay for transportation between the pupil's
68.16residence and the border of the district in which the charter school is located. A parent
68.17may be reimbursed by the charter school for costs of transportation from the pupil's
68.18residence to the border of the district in which the charter school is located if the pupil is
68.19from a family whose income is at or below the poverty level, as determined by the federal
68.20government. The reimbursement may not exceed the pupil's actual cost of transportation
68.21or 15 cents per mile traveled, whichever is less. Reimbursement may not be paid for
68.22more than 250 miles per week.
68.23    At the time a pupil enrolls in a charter school, the charter school must provide the
68.24parent or guardian with information regarding the transportation.
68.25    (c) If a charter school does not elect to provide transportation, transportation for
68.26pupils enrolled at the school must be provided by the district in which the school is
68.27located, according to sections 123B.88, subdivision 6, and 124D.03, subdivision 8, for a
68.28pupil residing in the same district in which the charter school is located. Transportation
68.29may be provided by the district in which the school is located, according to sections
68.30123B.88, subdivision 6 , and 124D.03, subdivision 8, for a pupil residing in a different
68.31district. If the district provides the transportation, the scheduling of routes, manner and
68.32method of transportation, control and discipline of the pupils, and any other matter relating
68.33to the transportation of pupils under this paragraph shall be within the sole discretion,
68.34control, and management of the district.
68.35    Subd. 17. Leased space. A charter school may lease space from an independent
68.36or special school board eligible to be an authorizer, other public organization, private,
69.1nonprofit nonsectarian organization, private property owner, or a sectarian organization
69.2if the leased space is constructed as a school facility. The department must review and
69.3approve or disapprove leases in a timely manner.
69.4    Subd. 17a. Affiliated nonprofit building corporation. (a) Before a charter school
69.5may organize an affiliated nonprofit building corporation (i) to renovate or purchase an
69.6existing facility to serve as a school or (ii) to construct a new school facility, an authorizer
69.7must submit an affidavit to the commissioner for approval in the form and manner the
69.8commissioner prescribes, and consistent with paragraphs (b) and (c) or (d).
69.9    (b) An affiliated nonprofit building corporation under this subdivision must:
69.10    (1) be incorporated under section 317A and comply with applicable Internal
69.11Revenue Service regulations;
69.12    (2) submit to the commissioner each fiscal year a list of current board members
69.13and a copy of its annual audit; and
69.14    (3) comply with government data practices law under chapter 13.
69.15An affiliated nonprofit building corporation must not serve as the leasing agent for
69.16property or facilities it does not own. A charter school that leases a facility from an
69.17affiliated nonprofit building corporation that does not own the leased facility is ineligible
69.18to receive charter school lease aid. The state is immune from liability resulting from a
69.19contract between a charter school and an affiliated nonprofit building corporation.
69.20    (c) A charter school may organize an affiliated nonprofit building corporation to
69.21renovate or purchase an existing facility to serve as a school if the charter school:
69.22    (1) has been operating for at least five consecutive school years and the school's
69.23charter has been renewed for a five-year term;
69.24    (2) has had a net positive unreserved general fund balance as of June 30 in the
69.25preceding five fiscal years;
69.26    (3) has a long-range strategic and financial plan;
69.27    (4) completes a feasibility study of available buildings; and
69.28    (5) documents sustainable enrollment projections and the need to use an affiliated
69.29building corporation to renovate or purchase an existing facility to serve as a school.
69.30    (d) A charter school may organize an affiliated nonprofit building corporation to
69.31construct a new school facility if the charter school:
69.32    (1) demonstrates the lack of facilities available to serve as a school;
69.33    (2) has been operating for at least eight consecutive school years;
69.34    (3) has had a net positive unreserved general fund balance as of June 30 in the
69.35preceding eight fiscal years;
69.36    (4) completes a feasibility study of facility options;
70.1    (5) has a long-range strategic and financial plan that includes sustainable enrollment
70.2projections and demonstrates the need for constructing a new school facility; and
70.3    (6) has a positive review and comment from the commissioner under section
70.4123B.71 .
70.5    Subd. 19. Disseminate information. (a) The authorizer, the operators, and the
70.6department must disseminate information to the public on how to form and operate
70.7a charter school. Charter schools must disseminate information about how to use
70.8the offerings of a charter school. Targeted groups include low-income families and
70.9communities, students of color, and students who are at risk of academic failure.
70.10    (b) Authorizers, operators, and the department also may disseminate information
70.11about the successful best practices in teaching and learning demonstrated by charter
70.12schools.
70.13    Subd. 20. Leave to teach in a charter school. If a teacher employed by a district
70.14makes a written request for an extended leave of absence to teach at a charter school,
70.15the district must grant the leave. The district must grant a leave not to exceed a total of
70.16five years. Any request to extend the leave shall be granted only at the discretion of the
70.17school board. The district may require that the request for a leave or extension of leave
70.18be made before February 1 in the school year preceding the school year in which the
70.19teacher intends to leave, or February 1 of the calendar year in which the teacher's leave is
70.20scheduled to terminate. Except as otherwise provided in this subdivision and except for
70.21section 122A.46, subdivision 7, the leave is governed by section 122A.46, including, but
70.22not limited to, reinstatement, notice of intention to return, seniority, salary, and insurance.
70.23    During a leave, the teacher may continue to aggregate benefits and credits in the
70.24Teachers' Retirement Association account under chapters 354 and 354A, consistent with
70.25subdivision 22.
70.26    Subd. 21. Collective bargaining. Employees of the board of directors of a charter
70.27school may, if otherwise eligible, organize under chapter 179A and comply with its
70.28provisions. The board of directors of a charter school is a public employer, for the
70.29purposes of chapter 179A, upon formation of one or more bargaining units at the school.
70.30Bargaining units at the school must be separate from any other units within an authorizing
70.31district, except that bargaining units may remain part of the appropriate unit within an
70.32authorizing district, if the employees of the school, the board of directors of the school,
70.33the exclusive representative of the appropriate unit in the authorizing district, and the
70.34board of the authorizing district agree to include the employees in the appropriate unit of
70.35the authorizing district.
71.1    Subd. 22. Teacher and other employee retirement. (a) Teachers in a charter
71.2school must be public school teachers for the purposes of chapters 354 and 354a.
71.3    (b) Except for teachers under paragraph (a), employees in a charter school must be
71.4public employees for the purposes of chapter 353.
71.5    Subd. 23. Causes for nonrenewal or termination of charter school contract. (a)
71.6The duration of the contract with an authorizer must be for the term contained in the
71.7contract according to subdivision 6. The authorizer may or may not renew a contract at
71.8the end of the term for any ground listed in paragraph (b). An authorizer may unilaterally
71.9terminate a contract during the term of the contract for any ground listed in paragraph (b).
71.10At least 60 business days before not renewing or terminating a contract, the authorizer
71.11shall notify the board of directors of the charter school of the proposed action in writing.
71.12The notice shall state the grounds for the proposed action in reasonable detail and that the
71.13charter school's board of directors may request in writing an informal hearing before the
71.14authorizer within 15 business days of receiving notice of nonrenewal or termination of
71.15the contract. Failure by the board of directors to make a written request for a an informal
71.16hearing within the 15-business-day period shall be treated as acquiescence to the proposed
71.17action. Upon receiving a timely written request for a hearing, the authorizer shall give ten
71.18business days' notice to the charter school's board of directors of the hearing date. The
71.19authorizer shall conduct an informal hearing before taking final action. The authorizer
71.20shall take final action to renew or not renew a contract no later than 20 business days
71.21before the proposed date for terminating the contract or the end date of the contract.
71.22    (b) A contract may be terminated or not renewed upon any of the following grounds:
71.23    (1) failure to meet the requirements for pupil performance contained in the contract;
71.24    (2) failure to meet generally accepted standards of fiscal management;
71.25    (3) violations of law; or
71.26    (4) other good cause shown.
71.27    If a contract is terminated or not renewed under this paragraph, the school must be
71.28dissolved according to the applicable provisions of chapter 308A or 317A.
71.29    (c) If the authorizer and the charter school board of directors mutually agree to
71.30terminate or not renew the contract, a change in authorizers is allowed if the commissioner
71.31approves the transfer change to a different eligible authorizer to authorize the charter
71.32school. Both parties must jointly submit their intent in writing to the commissioner to
71.33mutually terminate the contract. The authorizer that is a party to the existing contract
71.34at least must inform the approved different eligible proposed authorizer about the fiscal
71.35and operational status and student performance of the school. Before the commissioner
71.36determines whether to approve a transfer of change in authorizer, the commissioner first
72.1proposed authorizer must determine whether the charter school and prospective new
72.2authorizer can identify and effectively resolve those circumstances causing the previous
72.3authorizer and the charter school to mutually agree to terminate the contract identify any
72.4outstanding issues in the proposed charter contract that were unresolved in the previous
72.5charter contract and have the charter school agree to resolve those issues. If no transfer of
72.6change in authorizer is approved, the school must be dissolved according to applicable
72.7law and the terms of the contract.
72.8    (d) The commissioner, after providing reasonable notice to the board of directors of
72.9a charter school and the existing authorizer, and after providing an opportunity for a public
72.10hearing, may terminate the existing contract between the authorizer and the charter school
72.11board if the charter school has a history of:
72.12    (1) failure to meet pupil performance requirements contained in the contract
72.13consistent with state law;
72.14    (2) financial mismanagement or failure to meet generally accepted standards of
72.15fiscal management; or
72.16    (3) repeated or major violations of the law.
72.17    (e) If the commissioner terminates a charter school contract under subdivision 3,
72.18paragraph (g), the commissioner shall provide the charter school with information about
72.19other eligible authorizers.
72.20    Subd. 23a. Related party lease costs. (a) A charter school is prohibited from
72.21entering a lease of real property with a related party unless the lessor is a nonprofit
72.22corporation under chapter 317A or a cooperative under chapter 308A, and the lease cost is
72.23reasonable under section 124D.11, subdivision 4, clause (1).
72.24    (b) For purposes of this section and section 124D.11:
72.25    (1) "related party" means an affiliate or immediate relative of the other party in
72.26question, an affiliate of an immediate relative, or an immediate relative of an affiliate;
72.27    (2) "affiliate" means a person that directly or indirectly, through one or more
72.28intermediaries, controls, is controlled by, or is under common control with another person;
72.29    (3) "immediate family" means an individual whose relationship by blood, marriage,
72.30adoption, or partnering is no more remote than first cousin;
72.31    (4) "person" means an individual or entity of any kind; and
72.32    (5) "control" means the ability to affect the management, operations, or policy
72.33actions or decisions of a person, whether through ownership of voting securities, by
72.34contract, or otherwise.
73.1    (c) A lease of real property to be used for a charter school, not excluded in paragraph
73.2(a), must contain the following statement: "This lease is subject to Minnesota Statutes,
73.3section 124D.10, subdivision 23a."
73.4    (d) If a charter school enters into as lessee a lease with a related party and the
73.5charter school subsequently closes, the commissioner has the right to recover from the
73.6lessor any lease payments in excess of those that are reasonable under section 124D.11,
73.7subdivision 4 , clause (1).
73.8    Subd. 24. Pupil enrollment upon nonrenewal or termination of charter school
73.9contract. If a contract is not renewed or is terminated according to subdivision 23, a
73.10pupil who attended the school, siblings of the pupil, or another pupil who resides in the
73.11same place as the pupil may enroll in the resident district or may submit an application
73.12to a nonresident district according to section 124D.03 at any time. Applications and
73.13notices required by section 124D.03 must be processed and provided in a prompt manner.
73.14The application and notice deadlines in section 124D.03 do not apply under these
73.15circumstances. The closed charter school must transfer the student's educational records
73.16within ten business days of closure to the student's school district of residence where the
73.17records must be retained or transferred under section 120A.22, subdivision 7.
73.18    Subd. 25. Extent of specific legal authority. (a) The board of directors of a charter
73.19school may sue and be sued.
73.20    (b) The board may not levy taxes or issue bonds.
73.21    (c) The commissioner, an authorizer, members of the board of an authorizer in
73.22their official capacity, and employees of an authorizer are immune from civil or criminal
73.23liability with respect to all activities related to a charter school they approve or authorize.
73.24The board of directors shall obtain at least the amount of and types of insurance up to the
73.25applicable tort liability limits under chapter 466. The charter school board must submit
73.26a copy of the insurance policy to its authorizer and the commissioner before starting
73.27operations. The charter school board must submit changes in its insurance carrier or policy
73.28to its authorizer and the commissioner within 20 business days of the change.
73.29(d) Notwithstanding section 3.736, the charter school shall assume full liability for
73.30its activities and indemnify and hold harmless the authorizer and its officers, agents, and
73.31employees from any suit, claim, or liability arising from any operation of the charter school
73.32and the commissioner and department officers, agents, and employees. A charter school
73.33is not required to indemnify or hold harmless a state employee if the state would not be
73.34required to indemnify and hold the employee harmless under section 3.736, subdivision 9.

73.35    Sec. 30. Minnesota Statutes 2010, section 124D.11, subdivision 4, is amended to read:
74.1    Subd. 4. Building lease aid. When a charter school finds it economically
74.2advantageous to rent or lease a building or land for any instructional purposes and it
74.3determines that the total operating capital revenue under section 126C.10, subdivision 13,
74.4is insufficient for this purpose, it may apply to the commissioner for building lease aid
74.5for this purpose. The commissioner must review and either approve or deny a lease aid
74.6application using the following criteria:
74.7(1) the reasonableness of the price based on current market values;
74.8(2) the extent to which the lease conforms to applicable state laws and rules; and
74.9(3) the appropriateness of the proposed lease in the context of the space needs and
74.10financial circumstances of the charter school.
74.11A charter school must not use the building lease aid it receives for custodial, maintenance
74.12service, utility, or other operating costs. The amount of building lease aid per pupil unit
74.13served for a charter school for any year shall not exceed the lesser of (a) 90 percent of
74.14the approved cost or (b) the product of the pupil units served for the current school year
74.15times the greater of the charter school's building lease aid per pupil unit served for fiscal
74.16year 2003, excluding the adjustment under Laws 2002, chapter 392, article 6, section 4,
74.17or $1,200.
74.18EFFECTIVE DATE.This section is effective for revenue for fiscal year 2013
74.19and later.

74.20    Sec. 31. Minnesota Statutes 2010, section 124D.11, subdivision 9, is amended to read:
74.21    Subd. 9. Payment of aids to charter schools. (a) Notwithstanding section 127A.45,
74.22subdivision 3 , aid payments for the current fiscal year to a charter school shall be of an
74.23equal amount on each of the 24 payment dates.
74.24(b) Notwithstanding paragraph (a) and section 127A.45, for a charter school ceasing
74.25operation on or prior to June 30 of a school year, for the payment periods occurring after
74.26the school ceases serving students, the commissioner shall withhold the estimated state aid
74.27owed the school. The charter school board of directors and authorizer must submit to the
74.28commissioner a closure plan under chapter 308A or 317A, and financial information about
74.29the school's liabilities and assets. After receiving the closure plan, financial information,
74.30an audit of pupil counts, documentation of lease expenditures, and monitoring of special
74.31education expenditures, the commissioner may release cash withheld and may continue
74.32regular payments up to the current year payment percentages if further amounts are
74.33owed. If, based on audits and monitoring, the school received state aid in excess of the
74.34amount owed, the commissioner shall retain aid withheld sufficient to eliminate the aid
75.1overpayment. For a charter school ceasing operations prior to, or at the end of, a school
75.2year, notwithstanding section 127A.45, subdivision 3, preliminary final payments may
75.3be made after receiving the closure plan, audit of pupil counts, monitoring of special
75.4education expenditures, documentation of lease expenditures, and school submission of
75.5Uniform Financial Accounting and Reporting Standards (UFARS) financial data for the
75.6final year of operation. Final payment may be made upon receipt of audited financial
75.7statements under section 123B.77, subdivision 3.
75.8(c) If a charter school fails to comply with the commissioner's directive to return,
75.9for cause, federal or state funds administered by the department, the commissioner may
75.10withhold an amount of state aid sufficient to satisfy the directive.
75.11(d) If, within the timeline under section 471.425, a charter school fails to pay the state
75.12of Minnesota, a school district, intermediate school district, or service cooperative after
75.13receiving an undisputed invoice for goods and services, the commissioner may withhold
75.14an amount of state aid sufficient to satisfy the claim and shall distribute the withheld
75.15aid to the interested state agency, school district, intermediate school district, or service
75.16cooperative. An interested state agency, school district, intermediate school district, or
75.17education cooperative shall notify the commissioner when a charter school fails to pay an
75.18undisputed invoice within 75 business days of when it received the original invoice.
75.19(e) Notwithstanding section 127A.45, subdivision 3, and paragraph (a), 80 percent
75.20of the start-up cost aid under subdivision 8 shall be paid within 45 days after the first day
75.21of student attendance for that school year.
75.22(f) In order to receive state aid payments under this subdivision, a charter school in
75.23its first three years of operation must submit a school calendar in the form and manner
75.24requested by the department and a quarterly report to the Department of Education. The
75.25report must list each student by grade, show the student's start and end dates, if any,
75.26with the charter school, and for any student participating in a learning year program,
75.27the report must list the hours and times of learning year activities. The report must be
75.28submitted not more than two weeks after the end of the calendar quarter to the department.
75.29The department must develop a Web-based reporting form for charter schools to use
75.30when submitting enrollment reports. A charter school in its fourth and subsequent year of
75.31operation must submit a school calendar and enrollment information to the department in
75.32the form and manner requested by the department.
75.33(g) Notwithstanding sections 317A.701 to 317A.791, upon closure of a charter
75.34school and satisfaction of creditors, cash and investment balances remaining shall be
75.35returned to the state.
76.1(h) A charter school must have a valid, signed contract under section 124D.10,
76.2subdivision 6, on file at the Department of Education at least 15 days prior to the date of
76.3first payment of state aid for the fiscal year.
76.4(i) State aid entitlements shall be computed for a charter school only for the
76.5portion of a school year for which it has a valid, signed contract under section 124D.10,
76.6subdivision 6.

76.7    Sec. 32. Minnesota Statutes 2010, section 124D.36, is amended to read:
76.8124D.36 CITATION; MINNESOTA YOUTHWORKS SERVEMINNESOTA
76.9INNOVATION ACT.
76.10Sections 124D.37 to 124D.45 shall be cited as the "Minnesota Youthworks
76.11ServeMinnesota Innovation Act."

76.12    Sec. 33. Minnesota Statutes 2010, section 124D.37, is amended to read:
76.13124D.37 PURPOSE OF MINNESOTA YOUTHWORKS SERVEMINNESOTA
76.14INNOVATION ACT.
76.15The purposes of sections 124D.37 to 124D.45 are to:
76.16(1) renew the ethic of civic responsibility in Minnesota;
76.17(2) empower youth to improve their life opportunities through literacy, job
76.18placement, and other essential skills;
76.19(3) empower government to meet its responsibility to prepare young people to be
76.20contributing members of society;
76.21(4) help meet human, educational, environmental, and public safety needs,
76.22particularly those needs relating to poverty;
76.23(5) prepare a citizenry that is academically competent, ready for work, and socially
76.24responsible;
76.25(6) demonstrate the connection between youth and community service, community
76.26service and education, and education and meaningful opportunities in the business
76.27community;
76.28(7) demonstrate the connection between providing opportunities for at-risk youth
76.29and reducing crime rates and the social costs of troubled youth;
76.30(8) create linkages for a comprehensive youth service and learning program in
76.31Minnesota including school age programs, higher education programs, youth work
76.32programs, and service corps programs; and
76.33(9) coordinate federal and state activities that advance the purposes in this section.

77.1    Sec. 34. Minnesota Statutes 2010, section 124D.38, subdivision 3, is amended to read:
77.2    Subd. 3. Federal law. "Federal law" means Public Law 101-610 111-13, as
77.3amended, or any other federal law or program assisting youth community service,
77.4work-based learning, or youth transition from school to work.

77.5    Sec. 35. Minnesota Statutes 2010, section 124D.385, subdivision 3, is amended to read:
77.6    Subd. 3. Duties. (a) The commission shall:
77.7(1) develop, with the assistance of the governor, the commissioner of education, and
77.8affected state agencies, a comprehensive state plan to provide services under sections
77.9124D.37 to 124D.45 and federal law;
77.10(2) actively pursue public and private funding sources for services, including
77.11funding available under federal law;
77.12(3) administer the Youthworks ServeMinnesota grant program under sections
77.13124D.39 to 124D.44, including soliciting and approving grant applications from eligible
77.14organizations, and administering individual postservice benefits;
77.15(4) establish an evaluation plan for programs developed and services provided
77.16under sections 124D.37 to 124D.45;
77.17(5) report to the governor, commissioner of education, and legislature; and
77.18(6) administer the federal AmeriCorps Program.
77.19(b) Nothing in sections 124D.37 to 124D.45 precludes an organization from
77.20independently seeking public or private funding to accomplish purposes similar to those
77.21described in paragraph (a).

77.22    Sec. 36. Minnesota Statutes 2010, section 124D.39, is amended to read:
77.23124D.39 YOUTHWORKS SERVEMINNESOTA INNOVATION PROGRAM.
77.24The Youthworks ServeMinnesota Innovation program is established to provide
77.25funding for the commission to leverage federal and private funding to fulfill the purposes
77.26of section 124D.37. The Youthworks ServeMinnesota Innovation program must
77.27supplement existing programs and services. The program must not displace existing
77.28programs and services, existing funding of programs or services, or existing employment
77.29and employment opportunities. No eligible organization may terminate, layoff, or reduce
77.30the hours of work of an employee to place or hire a program participant. No eligible
77.31organization may place or hire an individual for a project if an employee is on layoff from
77.32the same or a substantially equivalent position.

78.1    Sec. 37. Minnesota Statutes 2010, section 124D.40, is amended to read:
78.2124D.40 YOUTHWORKS SERVEMINNESOTA INNOVATION GRANTS.
78.3    Subdivision 1. Application. An eligible organization interested in receiving a
78.4grant under sections 124D.39 to 124D.44 may prepare and submit an application to the
78.5commission. As part of the grant application process, the commission must establish and
78.6publish grant application guidelines that are consistent with this subdivision, section
78.7124D.37, and Public Law 111-13; include criteria for reviewing an applicant's cost-benefit
78.8analysis; and require grantees to use research-based measures of program outcomes to
78.9generate valid and reliable data that are available to the commission for evaluation and
78.10public reporting purposes.
78.11    Subd. 2. Grant authority. The commission must use any state appropriation and
78.12any available federal funds, including any grant received under federal law, to award
78.13grants to establish programs for Youthworks ServeMinnesota Innovation. At least one
78.14grant each must be available for a metropolitan proposal, a rural proposal, and a statewide
78.15proposal. If a portion of the suburban metropolitan area is not included in the metropolitan
78.16grant proposal, the statewide grant proposal must incorporate at least one suburban
78.17metropolitan area. In awarding grants, the commission may select at least one residential
78.18proposal and one nonresidential proposal.

78.19    Sec. 38. Minnesota Statutes 2010, section 124D.42, is amended to read:
78.20124D.42 YOUTHWORKS PROGRAM TRAINING; READING CORPS.
78.21    Subd. 6. Program training. The commission must, within available resources:
78.22(1) orient each grantee organization in the nature, philosophy, and purpose of the
78.23program; and
78.24(2) build an ethic of community service through general community service training;
78.25and
78.26(3) provide guidance on integrating programmatic-based measurement into program
78.27models.
78.28    Subd. 8. Minnesota reading corps program. (a) A Minnesota reading corps
78.29program is established to provide Americorps ServeMinnesota Innovation members with a
78.30data-based problem-solving model of literacy instruction to use in helping to train local
78.31Head Start program providers, other prekindergarten program providers, and staff in
78.32schools with students in kindergarten through grade 3 to evaluate and teach early literacy
78.33skills, including comprehensive, scientifically based reading instruction under section
78.34122A.06, subdivision 4, to children age 3 to grade 3.
79.1(b) Literacy programs under this subdivision must comply with the provisions
79.2governing literacy program goals and data use under section 119A.50, subdivision 3,
79.3paragraph (b).
79.4(c) The commission must submit a biennial report to the committees of the
79.5legislature with jurisdiction over kindergarten through grade 12 education that records and
79.6evaluates program data to determine the efficacy of the programs under this subdivision.

79.7    Sec. 39. Minnesota Statutes 2010, section 124D.44, is amended to read:
79.8124D.44 MATCH REQUIREMENTS.
79.9Youthworks ServeMinnesota Innovation grant funds must be used for the living
79.10allowance, cost of employer taxes under sections 3111 and 3301 of the Internal Revenue
79.11Code of 1986, workers' compensation coverage, health benefits, training and evaluation
79.12for each program participant, and administrative expenses, which must not exceed
79.13five seven percent of total program costs. Youthworks grant funds may also be used to
79.14supplement applicant resources to fund postservice benefits for program participants.
79.15Applicant resources, from sources and in a form determined by the commission, must
79.16be used to provide for all other program costs, including the portion of the applicant's
79.17obligation for postservice benefits that is not covered by state or federal grant funds and
79.18such costs as supplies, materials, transportation, and salaries and benefits of those staff
79.19directly involved in the operation, internal monitoring, and evaluation of the program.

79.20    Sec. 40. Minnesota Statutes 2010, section 124D.45, subdivision 2, is amended to read:
79.21    Subd. 2. Interim report. The commission must report semiannually annually to the
79.22legislature with interim recommendations to change the program.

79.23    Sec. 41. Minnesota Statutes 2010, section 124D.4531, subdivision 1, is amended to
79.24read:
79.25    Subdivision 1. Career and technical levy. (a) A district with a career and technical
79.26program approved under this section for the fiscal year in which the levy is certified may
79.27levy an amount equal to the lesser greater of:
79.28(1) $80 times the district's average daily membership in grades 10 9 through 12 for
79.29the fiscal year in which the levy is certified; or
79.30(2) 25 35 percent of approved expenditures in the fiscal year in which the levy is
79.31certified for the following:
80.1(i) salaries paid to essential, licensed personnel providing direct instructional
80.2services to students in that fiscal year, including extended contracts, for services rendered
80.3in the district's approved career and technical education programs;
80.4(ii) contracted services provided by a public or private agency other than a Minnesota
80.5school district or cooperative center under subdivision 7;
80.6(iii) necessary travel between instructional sites by licensed career and technical
80.7education personnel;
80.8(iv) necessary travel by licensed career and technical education personnel for
80.9vocational student organization activities held within the state for instructional purposes;
80.10(v) curriculum development activities that are part of a five-year plan for
80.11improvement based on program assessment;
80.12(vi) necessary travel by licensed career and technical education personnel for
80.13noncollegiate credit-bearing professional development; and
80.14(vii) specialized vocational instructional supplies.
80.15(b) Up to ten percent of a district's career and technical levy may be spent on
80.16equipment purchases. Districts using the career and technical levy for equipment
80.17purchases must report to the department on the improved learning opportunities for
80.18students that result from the investment in equipment.
80.19(c) The district must recognize the full amount of this levy as revenue for the fiscal
80.20year in which it is certified.
80.21(d) The amount of the levy certified under this subdivision may not exceed
80.22$17,850,000 for taxes payable in 2012, $15,520,000 for taxes payable in 2013, and
80.23$15,545,000 for taxes payable in 2014.
80.24(e) If the estimated levy exceeds the amount in paragraph (d), the commissioner
80.25must reduce the percentage in paragraph (a), clause (2), until the estimated levy no longer
80.26exceeds the limit in paragraph (d).
80.27EFFECTIVE DATE.This section is effective for taxes payable in 2012 and later.

80.28    Sec. 42. [124D.855] SCHOOL SEGREGATION PROHIBITED.
80.29The state, consistent with section 123B.30 and chapter 363A, does not condone
80.30separating school children of different socioeconomic, demographic, ethnic, or racial
80.31backgrounds into distinct public schools. Instead, the state's interest lies in offering
80.32children a diverse and nondiscriminatory educational experience.

80.33    Sec. 43. [124D.98] LITERACY INCENTIVE AID.
81.1    Subdivision 1. Literacy incentive aid. In fiscal year 2013 and later, a district's
81.2literacy incentive aid equals the sum of the proficiency aid under subdivision 2, and the
81.3growth aid under subdivision 3.
81.4    Subd. 2. Proficiency aid. In fiscal year 2013 and later, the proficiency aid for each
81.5school is equal to the product of the school's proficiency allowance times the number
81.6of pupils at the school on October 1 of the previous fiscal year. A school's proficiency
81.7allowance is equal to the percentage of students in each building that meet or exceed
81.8proficiency on the third grade reading Minnesota Comprehensive Assessment, averaged
81.9across the previous three test administrations, times $85.
81.10    Subd. 3. Growth aid. In fiscal year 2013 and later, the growth aid for each school is
81.11equal to the product of the school's growth allowance times the number of pupils enrolled
81.12at the school on October 1 of the previous fiscal year. A school's growth allowance is
81.13equal to the percentage of students at that school making medium or high growth, under
81.14section 120B.299, on the fourth grade reading Minnesota Comprehensive Assessment,
81.15averaged across the previous three test administrations, times $85.

81.16    Sec. 44. CHARTER SCHOOL START-UP AID.
81.17Notwithstanding any law to the contrary, a charter school in its first year of operation
81.18during fiscal year 2012 is not eligible for charter school start-up aid under Minnesota
81.19Statutes, section 124D.11, subdivision 8.

81.20    Sec. 45. LITERACY INCENTIVE AID LIMIT.
81.21Notwithstanding Minnesota Statutes, section 124D.98, subdivision 1, for fiscal year
81.222013 only, the commissioner must adjust the entitlement for literacy incentive aid under
81.23Minnesota Statutes, section 124D.98, subdivision 1, to ensure that the total entitlement
81.24does not exceed $48,585,000. If the literacy incentive aid exceeds the limit established in
81.25this section, the aid must be reduced proportionately to match the limit.

81.26    Sec. 46. ENGLISH LANGUAGE PROFICIENCY STANDARDS.
81.27    Subdivision 1. Standards. The Department of Education shall adopt, as statewide
81.28standards, English language proficiency standards for instruction of students identified as
81.29limited English proficient under Minnesota Statutes, sections 124D.58 to 124D.64.
81.30    Subd. 2. Adoption. Notwithstanding Minnesota Statutes, chapter 14, and sections
81.3114.386, 120B.02, 120B.021, and 120B.023, the commissioner of education shall adopt
81.32the most recent English language proficiency standards for English learners developed
82.1by World-Class Instructional Design and Assessment in kindergarten through grade 12.
82.2These standards shall be adopted as permanent rules when:
82.3(1) the revisor of statutes approves the form of the rule by certificate;
82.4(2) the commissioner signs an order adopting the rule; and
82.5(3) a copy of the rule is published by the department in the State Register.

82.6    Sec. 47. IMPLEMENTING A PERFORMANCE-BASED EVALUATION
82.7SYSTEM FOR PRINCIPALS.
82.8(a) To implement the requirements of Minnesota Statutes, sections 123B.143,
82.9subdivision 1, clause (3), and 123B.147, subdivision 3, paragraph (b), the commissioner of
82.10education, the Minnesota Association of Secondary School Principals, and the Minnesota
82.11Association of Elementary School Principals must convene a group of recognized and
82.12qualified experts and interested stakeholders, including principals, superintendents,
82.13teachers, school board members, and parents, among other stakeholders, to develop a
82.14performance-based system model for annually evaluating school principals. In developing
82.15the system model, the group must at least consider how principals develop and maintain:
82.16(1) high standards for student performance;
82.17(2) rigorous curriculum;
82.18(3) quality instruction;
82.19(4) a culture of learning and professional behavior;
82.20(5) connections to external communities;
82.21(6) systemic performance accountability; and
82.22(7) leadership behaviors that create effective schools and improve school
82.23performance, including how to plan for, implement, support, advocate for, communicate
82.24about, and monitor continuous and improved learning.
82.25The group also may consider whether to establish a multitiered evaluation system
82.26that supports newly licensed principals in becoming highly skilled school leaders and
82.27provides opportunities for advanced learning for more experienced school leaders.
82.28(b) The commissioner, the Minnesota Association of Secondary School Principals,
82.29and the Minnesota Association of Elementary School Principals must submit a
82.30written report and all the group's working papers to the education committees of the
82.31legislature by February 1, 2012, discussing the group's responses to paragraph (a) and its
82.32recommendations for a performance-based system model for annually evaluating school
82.33principals. The group convened under this section expires June 1, 2012.
82.34EFFECTIVE DATE.This section is effective the day following final enactment
82.35and applies to principal evaluations beginning in the 2013-2014 school year and later.

83.1    Sec. 48. TIERED LICENSURE ADVISORY TASK FORCE.
83.2(a) The Board of Teaching and the commissioner of education must jointly convene
83.3and facilitate an advisory task force to develop recommendations for a statewide tiered
83.4teacher licensure system, consistent with Minnesota Statutes, section 122A.09, subdivision
83.54, paragraph (g), that is premised on:
83.6(1) appropriate research-based professional competencies that include content skills,
83.7adaptive expertise, college-readiness preparation, multicultural skills, use of student
83.8performance data, and skills for fostering citizenship, among other competencies that
83.9improve all students' learning outcomes;
83.10(2) ongoing teacher professional growth to enable teachers to develop multiple
83.11professional competencies;
83.12(3) an assessment system for evaluating teachers' performance that is aligned with
83.13student expectations and value-added measures of student outcomes and includes an
83.14emphasis on developing students' reading and literacy skills, among other measures and
83.15outcomes, and recognizes and rewards successful teachers;
83.16(4) an expectation that teachers progress through various stages of teaching
83.17practice throughout their teaching careers and receive opportunities for leadership roles
83.18commensurate with their practice and competency; and
83.19(5) a periodic evaluation of the licensing structure to determine its effectiveness in
83.20meeting students' learning needs.
83.21When developing its recommendations, the task force is encouraged to consider, among
83.22other resources, the draft "Model Core Teaching Standards" developed by the Interstate
83.23Teacher Assessment and Support Consortium.
83.24(b) Each of the following entities shall appoint a member to the advisory task force:
83.25Education Minnesota, the Minnesota Association of School Administrators, the Minnesota
83.26Association for Colleges of Teacher Education, the Minnesota Association of School
83.27Personnel Administrators, the Minnesota Elementary School Principals Association, the
83.28Minnesota Secondary School Principals Association, the Parents United Network, the
83.29Minnesota Business Partnership, the Minnesota Chamber of Commerce, the Minnesota
83.30School Boards Association, and the Minnesota Association of Career and Technical
83.31Educators. The executive director of the Board of Teaching or the commissioner may
83.32appoint additional advisory task force members. Task force members may seek advice
83.33from the Educator Development and Resource Center at the University of Minnesota on
83.34developing a research-based framework for a differentiated licensure system in Minnesota.
83.35(c) Upon request, the commissioner must provide the task force with technical,
83.36fiscal, and other support services.
84.1(d) Task force members' terms and other task force matters are subject to Minnesota
84.2Statutes, section 15.059. The commissioner may reimburse task force members from the
84.3Department of Education's current operating budget but may not compensate task force
84.4members for task force activities.
84.5(e) The executive director of the Board of Teaching and the commissioner must
84.6submit by February 15, 2012, a joint report to the education policy and finance committees
84.7of the legislature recommending a differentiated statewide teacher licensing structure.
84.8(f) The advisory task force expires on February 16, 2012.
84.9EFFECTIVE DATE.This section is effective the day following final enactment.

84.10    Sec. 49. INTEGRATION REVENUE REPLACEMENT ADVISORY TASK
84.11FORCE.
84.12(a) The commissioner of education must convene a 12-member advisory task force to
84.13develop recommendations for repurposing integration revenue funds to create and sustain
84.14opportunities for students to achieve improved educational outcomes. The advisory task
84.15force, among other things, must consider how districts may effectively narrow and close
84.16the academic achievement gap and foster academic success for students by:
84.17(1) pursuing specific academic achievement goals premised on continuous adapting
84.18of best teaching practices and efficient use of resources; and
84.19(2) identifying variables to show annual progress toward achieving student, school,
84.20and district goals for student's academic success.
84.21(b) The funding allocation for the new program should ensure funding stability for
84.22districts between the current integration program and the new program. The money shall
84.23be used for the purposes recommended and forwarded by the task force and approved and
84.24appropriated by the legislature.
84.25(c) The advisory task force is composed of: six members appointed by the
84.26commissioner of education, three members appointed by the speaker of the house, and
84.27three members appointed by the Subcommittee on Committees of the Committee on Rules
84.28and Administration. The commissioner must convene the first meeting of the task force
84.29and offer assistance to the task force upon request. Task force members must seek input
84.30from organizations and individuals whose expertise can help inform the work of the
84.31task force and must develop recommendations to improve the academic achievement of
84.32students.
84.33(d) The commissioner, on behalf of the task force, must submit a report to the
84.34legislature by February 15, 2012, recommending how best to allocate funds previously
85.1allocated under Minnesota Statutes, section 124D.86, to achieve improved educational
85.2outcomes for students.
85.3(e) The base appropriation for the new program in this section is $40,911,000 for
85.42014 and $68,488,000 for 2015.
85.5(f) For taxes payable in 2013, districts may certify a levy in an amount equal to
85.6the district's certified levy for taxes payable in 2012, under Minnesota Statutes, section
85.7124D.86.
85.8EFFECTIVE DATE.This section is effective the day following final enactment.

85.9    Sec. 50. APPROPRIATIONS.
85.10    Subdivision 1. Department of Education. The sums indicated in this section are
85.11appropriated from the general fund to the Department of Education for the fiscal years
85.12designated.
85.13    Subd. 2. Charter school building lease aid. For building lease aid under Minnesota
85.14Statutes, section 124D.11, subdivision 4:

85.15		$	43,203,000	.....	2012
85.16		$	52,359,000	.....	2013

85.17The 2012 appropriation includes $13,336,000 for 2011 and $29,867,000 for 2012.
85.18The 2013 appropriation includes $19,910,000 for 2012 and $32,449,000 for 2013.
85.19    Subd. 3. Charter school start-up aid. For charter school start-up cost aid under
85.20Minnesota Statutes, section 124D.11, subdivision 8:

85.21		$	171,000	.....	2012
85.22		$	34,000	.....	2013

85.23The 2012 appropriation includes $119,000 for 2011 and $52,000 for 2012.
85.24The 2013 appropriation includes $34,000 for 2012 and $0 for 2013.
85.25    Subd. 4. Integration aid. For integration aid under Minnesota Statutes, section
85.26124D.86:

85.27		$	59,599,000	.....	2012
85.28		$	67,432,000	.....	2013

85.29The 2012 appropriation includes $19,272,000 for 2011 and $40,327,000 for 2012.
85.30The 2013 appropriation includes $26,884,000 for 2012 and $40,548,000 for 2013.
85.31The base for the final payment in fiscal year 2014 for fiscal year 2013 is $34,828,000.
86.1    Subd. 5. Literacy incentive aid. For literacy incentive aid under Minnesota
86.2Statutes, section 124D.98:

86.3

$

29,151,000

.....

2013

86.4The 2013 appropriation includes $0 for 2012 and $29,151,000 for 2013.
86.5    Subd. 6. Interdistrict desegregation or integration transportation grants. For
86.6interdistrict desegregation or integration transportation grants under Minnesota Statutes,
86.7section 124D.87:

86.8		$	14,917,000	.....	2012
86.9		$	16,612,000	.....	2013

86.10    Subd. 7. Success for the future. For American Indian success for the future grants
86.11under Minnesota Statutes, section 124D.81:

86.12		$	1,924,000	.....	2012
86.13		$	2,137,000	.....	2013

86.14The 2012 appropriation includes $641,000 for 2011 and $1,283,000 for 2012.
86.15The 2013 appropriation includes $854,000 for 2012 and $1,283,000 for 2013.
86.16    Subd. 8. American Indian teacher preparation grants. For joint grants to assist
86.17American Indian people to become teachers under Minnesota Statutes, section 122A.63:

86.18		$	190,000	.....	2012
86.19		$	190,000	.....	2013

86.20    Subd. 9. Tribal contract schools. For tribal contract school aid under Minnesota
86.21Statutes, section 124D.83:

86.22		$	1,883,000	.....	2012
86.23		$	2,206,000	.....	2013

86.24The 2012 appropriation includes $600,000 for 2011 and $1,283,000 for 2012.
86.25The 2013 appropriation includes $855,000 for 2012 and $1,351,000 for 2013.
86.26    Subd. 10. Early childhood programs at tribal schools. For early childhood
86.27family education programs at tribal contract schools under Minnesota Statutes, section
86.28124D.83, subdivision 4:

86.29		$	68,000	.....	2012
86.30		$	68,000	.....	2013

86.31    Subd. 11. Statewide testing and reporting system. For the statewide testing and
86.32reporting system under Minnesota Statutes, section 120B.30:

87.1		$	15,150,000	.....	2012
87.2		$	15,150,000	.....	2013

87.3Any balance in the first year does not cancel but is available in the second year.
87.4    Subd. 12. Examination fees; teacher training and support programs. (a) For
87.5students' advanced placement and international baccalaureate examination fees under
87.6Minnesota Statutes, section 120B.13, subdivision 3, and the training and related costs
87.7for teachers and other interested educators under Minnesota Statutes, section 120B.13,
87.8subdivision 1:

87.9		$	4,500,000	.....	2012
87.10		$	4,500,000	.....	2013

87.11(b) The advanced placement program shall receive 75 percent of the appropriation
87.12each year and the international baccalaureate program shall receive 25 percent of the
87.13appropriation each year. The department, in consultation with representatives of the
87.14advanced placement and international baccalaureate programs selected by the Advanced
87.15Placement Advisory Council and IBMN, respectively, shall determine the amounts of
87.16the expenditures each year for examination fees and training and support programs for
87.17each program.
87.18(c) Notwithstanding Minnesota Statutes, section 120B.13, subdivision 1, at least
87.19$500,000 each year is for teachers to attend subject matter summer training programs
87.20and follow-up support workshops approved by the advanced placement or international
87.21baccalaureate programs. The amount of the subsidy for each teacher attending an
87.22advanced placement or international baccalaureate summer training program or workshop
87.23shall be the same. The commissioner shall determine the payment process and the amount
87.24of the subsidy.
87.25(d) The commissioner shall pay all examination fees for all students of low-income
87.26families under Minnesota Statutes, section 120B.13, subdivision 3, and to the extent
87.27of available appropriations shall also pay examination fees for students sitting for an
87.28advanced placement examination, international baccalaureate examination, or both.
87.29Any balance in the first year does not cancel but is available in the second year.
87.30    Subd. 13. Concurrent enrollment programs. For concurrent enrollment programs
87.31under Minnesota Statutes, section 124D.091:

87.32		$	2,000,000	.....	2012
87.33		$	2,000,000	.....	2013

87.34If the appropriation is insufficient, the commissioner must proportionately reduce
87.35the aid payment to each district.
88.1Any balance in the first year does not cancel but is available in the second year.
88.2    Subd. 14. Collaborative urban educator. For the collaborative urban educator
88.3program:

88.4		$	528,000	.....	2012
88.5		$	528,000	.....	2013

88.6$200,000 each year is for the Southeast Asian teacher program at Concordia
88.7University, St. Paul; $164,000 each year is for the collaborative educator program at
88.8the University of St. Thomas; and $164,000 each year is for the Center for Excellence
88.9in Urban Teaching at Hamline University.
88.10Any balance in the first year does not cancel but is available in the second year.
88.11Each institution shall prepare for the legislature, by January 15 of each year, a
88.12detailed report regarding the funds used. The report must include the number of teachers
88.13prepared as well as the diversity of each cohort of teachers produced.
88.14    Subd. 15. ServeMinnesota program. For funding ServeMinnesota programs under
88.15Minnesota Statutes, sections 124D.37 to 124D.45:

88.16		$	900,000	.....	2012
88.17		$	900,000	.....	2013

88.18A grantee organization may provide health and child care coverage to the dependents
88.19of each participant enrolled in a full-time ServeMinnesota program to the extent such
88.20coverage is not otherwise available.
88.21    Subd. 16. Student organizations. For student organizations:

88.22		$	725,000	.....	2012
88.23		$	725,000	.....	2013

88.24$49,000 each year is for student organizations serving health occupations (HUSA).
88.25$46,000 each year is for student organizations serving service occupations (HERO).
88.26$106,000 each year is for student organizations serving trade and industry
88.27occupations (SkillsUSA, secondary and postsecondary).
88.28$101,000 each year is for student organizations serving business occupations
88.29(DECA, BPA, secondary and postsecondary).
88.30$158,000 each year is for student organizations serving agriculture occupations
88.31(FFA, PAS).
88.32$150,000 each year is for student organizations serving family and consumer science
88.33occupations (FCCLA).
89.1$115,000 each year is for student organizations serving marketing occupations
89.2(DEX).
89.3Any balance in the first year does not cancel but is available in the second year.
89.4    Subd. 17. Early childhood literacy programs. For early childhood literacy
89.5programs under Minnesota Statutes, section 119A.50, subdivision 3:

89.6		$	4,125,000	.....	2012
89.7		$	4,125,000	.....	2013

89.8$4,125,000 each year is for leveraging federal and private funding to support
89.9AmeriCorps members serving in the Minnesota Reading Corps program established by
89.10ServeMinnesota, including costs associated with the training and teaching of early literacy
89.11skills to children age three to grade 3 and the evaluation of the impact of the program
89.12under Minnesota Statutes, sections 124D.38, subdivision 2, and 124D.42, subdivision 6.
89.13Any balance in the first year does not cancel, but is available in the second year.
89.14    Subd. 18. Educational planning and assessment system (EPAS) program.
89.15For the educational planning and assessment system program under Minnesota Statutes,
89.16section 120B.128:

89.17		$	829,000	.....	2012
89.18		$	829,000	.....	2013

89.19Any balance in the first year does not cancel but is available in the second year.

89.20    Sec. 51. REPEALER.
89.21(a) Minnesota Statutes 2010, sections 124D.871; and 124D.88, are repealed effective
89.22for fiscal year 2012 and later.
89.23(b) Minnesota Statutes 2010, sections 123B.05; and 124D.38, subdivisions 4, 5,
89.24and 6, are repealed.
89.25(c) Minnesota Statutes 2010, section 124D.11, subdivision 8, is repealed effective
89.26for fiscal year 2013 and later.
89.27(d) Minnesota Statutes 2010, section 124D.86, is repealed effective for revenue
89.28for fiscal year 2014.


89.31    Section 1. Minnesota Statutes 2010, section 125A.02, subdivision 1, is amended to
89.32read:
90.1    Subdivision 1. Child with a disability. "Child with a disability" means a child
90.2identified under federal and state special education law as having a hearing impairment,
90.3blindness, visual disability, deaf or hard-of-hearing, blind or visually impaired, deafblind,
90.4or having a speech or language impairment, a physical disability impairment, other health
90.5impairment disability, mental developmental cognitive disability, emotional/behavioral an
90.6emotional or behavioral disorder, specific learning disability, autism spectrum disorder,
90.7traumatic brain injury, or severe multiple disabilities impairments, or deafblind disability
90.8and who needs special education and related services, as determined by the rules of the
90.9commissioner, is a child with a disability. A licensed physician, an advanced practice
90.10nurse, or a licensed psychologist is qualified to make a diagnosis and determination
90.11of attention deficit disorder or attention deficit hyperactivity disorder for purposes of
90.12identifying a child with a disability.

90.13    Sec. 2. Minnesota Statutes 2010, section 125A.0942, subdivision 3, is amended to read:
90.14    Subd. 3. Physical holding or seclusion. Physical holding or seclusion may be used
90.15only in an emergency. A school that uses physical holding or seclusion shall meet the
90.16following requirements:
90.17(1) the physical holding or seclusion must be the least intrusive intervention that
90.18effectively responds to the emergency;
90.19(2) physical holding or seclusion must end when the threat of harm ends and the
90.20staff determines that the child can safely return to the classroom or activity;
90.21(3) staff must directly observe the child while physical holding or seclusion is being
90.22used;
90.23(4) each time physical holding or seclusion is used, the staff person who implements
90.24or oversees the physical holding or seclusion shall document, as soon as possible after the
90.25incident concludes, the following information:
90.26(i) a description of the incident that led to the physical holding or seclusion;
90.27(ii) why a less restrictive measure failed or was determined by staff to be
90.28inappropriate or impractical;
90.29(iii) the time the physical holding or seclusion began and the time the child was
90.30released; and
90.31(iv) a brief record of the child's behavioral and physical status;
90.32(5) the room used for seclusion must:
90.33(i) be at least six feet by five feet;
90.34(ii) be well lit, well ventilated, adequately heated, and clean;
90.35(iii) have a window that allows staff to directly observe a child in seclusion;
91.1(iv) have tamperproof fixtures, electrical switches located immediately outside the
91.2door, and secure ceilings;
91.3(v) have doors that open out and are unlocked, locked with keyless locks that
91.4have immediate release mechanisms, or locked with locks that have immediate release
91.5mechanisms connected with a fire and emergency system; and
91.6(vi) not contain objects that a child may use to injure the child or others; and
91.7(6) before using a room for seclusion, a school must:
91.8(i) receive written notice from local authorities that the room and the locking
91.9mechanisms comply with applicable building, fire, and safety codes; and
91.10(ii) register the room with the commissioner, who may view that room; and
91.11(7) until August 1, 2012, a school district may use prone restraints under the
91.12following conditions:
91.13(i) a district has provided to the department a list of staff who have had specific
91.14training on the use of prone restraints;
91.15(ii) a district provides information on the type of training that was provided and
91.16by whom;
91.17(iii) prone restraints may only be used by staff who have received specific training;
91.18(iv) each incident of the use of prone restraints is reported to the department within
91.19five working days on a form provided by the department or on a district's restrictive
91.20procedure documentation form; and
91.21(v) a district, prior to using prone restraints, must review any known medical or
91.22psychological limitations that contraindicate the use of prone restraints.
91.23The department will report back to the chairs and ranking minority members of the
91.24legislative committees with primary jurisdiction over education policy by February 1,
91.252012, on the use of prone restraints in the schools.

91.26    Sec. 3. Minnesota Statutes 2010, section 125A.15, is amended to read:
91.27125A.15 PLACEMENT IN ANOTHER DISTRICT; RESPONSIBILITY.
91.28The responsibility for special instruction and services for a child with a disability
91.29temporarily placed in another district for care and treatment shall be determined in the
91.30following manner:
91.31(a) The district of residence of a child shall be the district in which the child's parent
91.32resides, if living, or the child's guardian, or the district designated by the commissioner
91.33if neither parent nor guardian is living within the state. If there is a dispute between
91.34school districts regarding residency, the district of residence is the district designated by
91.35the commissioner.
92.1(b) If a district other than the resident district places a pupil for care and treatment,
92.2the district placing the pupil must notify and give the resident district an opportunity to
92.3participate in the placement decision. When an immediate emergency placement of a
92.4pupil is necessary and time constraints foreclose a resident district from participating in
92.5the emergency placement decision, the district in which the pupil is temporarily placed
92.6must notify the resident district of the emergency placement within 15 days. The resident
92.7district has up to five business days after receiving notice of the emergency placement
92.8to request an opportunity to participate in the placement decision, which the placing
92.9district must then provide.
92.10(c) When a child is temporarily placed for care and treatment in a day program
92.11located in another district and the child continues to live within the district of residence
92.12during the care and treatment, the district of residence is responsible for providing
92.13transportation to and from the care and treatment program and an appropriate educational
92.14program for the child. The resident district may establish reasonable restrictions on
92.15transportation, except if a Minnesota court or agency orders the child placed at a day care
92.16and treatment program and the resident district receives a copy of the order, then the
92.17resident district must provide transportation to and from the program unless the court or
92.18agency orders otherwise. Transportation shall only be provided by the resident district
92.19during regular operating hours of the resident district. The resident district may provide the
92.20educational program at a school within the district of residence, at the child's residence, or
92.21in the district in which the day treatment center is located by paying tuition to that district.
92.22(d) When a child is temporarily placed in a residential program for care and
92.23treatment, the nonresident district in which the child is placed is responsible for providing
92.24an appropriate educational program for the child and necessary transportation while the
92.25child is attending the educational program; and must bill the district of the child's residence
92.26for the actual cost of providing the program, as outlined in section 125A.11, except as
92.27provided in paragraph (e). However, the board, lodging, and treatment costs incurred in
92.28behalf of a child with a disability placed outside of the school district of residence by the
92.29commissioner of human services or the commissioner of corrections or their agents, for
92.30reasons other than providing for the child's special educational needs must not become the
92.31responsibility of either the district providing the instruction or the district of the child's
92.32residence. For the purposes of this section, the state correctional facilities operated on a
92.33fee-for-service basis are considered to be residential programs for care and treatment.
92.34(e) A privately owned and operated residential facility may enter into a contract
92.35to obtain appropriate educational programs for special education children and services
92.36with a joint powers entity. The entity with which the private facility contracts for special
93.1education services shall be the district responsible for providing students placed in that
93.2facility an appropriate educational program in place of the district in which the facility is
93.3located. If a privately owned and operated residential facility does not enter into a contract
93.4under this paragraph, then paragraph (d) applies.
93.5(f) The district of residence shall pay tuition and other program costs, not including
93.6transportation costs, to the district providing the instruction and services. The district of
93.7residence may claim general education aid for the child as provided by law. Transportation
93.8costs must be paid by the district responsible for providing the transportation and the state
93.9must pay transportation aid to that district.

93.10    Sec. 4. Minnesota Statutes 2010, section 125A.21, subdivision 2, is amended to read:
93.11    Subd. 2. Third-party reimbursement. (a) Beginning July 1, 2000, districts
93.12shall seek reimbursement from insurers and similar third parties for the cost of services
93.13provided by the district whenever the services provided by the district are otherwise
93.14covered by the child's health coverage. Districts shall request, but may not require, the
93.15child's family to provide information about the child's health coverage when a child with a
93.16disability begins to receive services from the district of a type that may be reimbursable,
93.17and shall request, but may not require, updated information after that as needed.
93.18(b) For children enrolled in medical assistance under chapter 256B or MinnesotaCare
93.19under chapter 256L who have no other health coverage, a district shall provide an initial
93.20and annual written notice to the enrolled child's parent or legal representative of its intent
93.21to seek reimbursement from medical assistance or MinnesotaCare for the individual
93.22individualized education plan program health-related services provided by the district.
93.23The initial notice must give the child's parent or legal representative the right to request
93.24a copy of the child's education records on the health-related services that the district
93.25provided to the child and disclosed to a third-party payer.
93.26(c) The district shall give the parent or legal representative annual written notice of:
93.27(1) the district's intent to seek reimbursement from medical assistance or
93.28MinnesotaCare for individual education plan health-related services provided by the
93.29district;
93.30(2) the right of the parent or legal representative to request a copy of all records
93.31concerning individual education plan health-related services disclosed by the district to
93.32any third party; and
93.33(3) the right of the parent or legal representative to withdraw consent for disclosure
93.34of a child's records at any time without consequence.
94.1The written notice shall be provided as part of the written notice required by Code of
94.2Federal Regulations, title 34, section 300.504. The district must ensure that the parent of a
94.3child with a disability is given notice, in understandable language, of federal and state
94.4procedural safeguards available to the parent under this paragraph and paragraph (b).
94.5(d) In order to access the private health care coverage of a child who is covered by
94.6private health care coverage in whole or in part, a district must:
94.7(1) obtain annual written informed consent from the parent or legal representative, in
94.8compliance with subdivision 5; and
94.9(2) inform the parent or legal representative that a refusal to permit the district
94.10or state Medicaid agency to access their private health care coverage does not relieve
94.11the district of its responsibility to provide all services necessary to provide free and
94.12appropriate public education at no cost to the parent or legal representative.
94.13(e) If the commissioner of human services obtains federal approval to exempt
94.14covered individual education plan health-related services from the requirement that private
94.15health care coverage refuse payment before medical assistance may be billed, paragraphs
94.16(b), (c), and (d) shall also apply to students with a combination of private health care
94.17coverage and health care coverage through medical assistance or MinnesotaCare.
94.18(f) In the event that Congress or any federal agency or the Minnesota legislature
94.19or any state agency establishes lifetime limits, limits for any health care services,
94.20cost-sharing provisions, or otherwise provides that individual education plan health-related
94.21services impact benefits for persons enrolled in medical assistance or MinnesotaCare, the
94.22amendments to this subdivision adopted in 2002 are repealed on the effective date of any
94.23federal or state law or regulation that imposes the limits. In that event, districts must
94.24obtain informed consent consistent with this subdivision as it existed prior to the 2002
94.25amendments and subdivision 5, before seeking reimbursement for children enrolled in
94.26medical assistance under chapter 256B or MinnesotaCare under chapter 256L who have
94.27no other health care coverage.

94.28    Sec. 5. Minnesota Statutes 2010, section 125A.21, subdivision 3, is amended to read:
94.29    Subd. 3. Use of reimbursements. Of the reimbursements received, districts may:
94.30(1) retain an amount sufficient to compensate the district for its administrative costs
94.31of obtaining reimbursements;
94.32(2) regularly obtain from education- and health-related entities training and other
94.33appropriate technical assistance designed to improve the district's ability to determine
94.34which services are reimbursable and to seek timely reimbursement in a cost-effective
95.1manner access third-party payments for individualized education program health-related
95.2services; or
95.3(3) reallocate reimbursements for the benefit of students with special needs
95.4individualized education programs or individual family service plans in the district.

95.5    Sec. 6. Minnesota Statutes 2010, section 125A.21, subdivision 5, is amended to read:
95.6    Subd. 5. Informed consent. When obtaining informed consent, consistent with
95.7sections 13.05, subdivision 4a; and, 256B.77, subdivision 2, paragraph (p), and Code of
95.8Federal Regulations, title 34, parts 99 and 300, to bill health plans for covered services, the
95.9school district must notify the legal representative (1) that the cost of the person's private
95.10health insurance premium may increase due to providing the covered service in the school
95.11setting, (2) that the school district may pay certain enrollee health plan costs, including
95.12but not limited to, co-payments, coinsurance, deductibles, premium increases or other
95.13enrollee cost-sharing amounts for health and related services required by an individual
95.14service plan, or individual family service plan, and (3) that the school's billing for each
95.15type of covered service may affect service limits and prior authorization thresholds. The
95.16informed consent may be revoked in writing at any time by the person authorizing the
95.17billing of the health plan.

95.18    Sec. 7. Minnesota Statutes 2010, section 125A.21, subdivision 7, is amended to read:
95.19    Subd. 7. District disclosure of information. A school district may disclose
95.20information contained in a student's individual individualized education plan program,
95.21consistent with section 13.32, subdivision 3, paragraph (a), and Code of Federal
95.22Regulations, title 34, parts 99 and 300; including records of the student's diagnosis and
95.23treatment, to a health plan company only with the signed and dated consent of the student's
95.24parent, or other legally authorized individual, including consent that the parent or legal
95.25representative gave as part of the application process for MinnesotaCare or medical
95.26assistance under section 256B.08, subdivision 1. The school district shall disclose only
95.27that information necessary for the health plan company to decide matters of coverage and
95.28payment. A health plan company may use the information only for making decisions
95.29regarding coverage and payment, and for any other use permitted by law.

95.30    Sec. 8. Minnesota Statutes 2010, section 125A.51, is amended to read:
95.31125A.51 PLACEMENT OF CHILDREN WITHOUT DISABILITIES;
95.32EDUCATION AND TRANSPORTATION.
96.1The responsibility for providing instruction and transportation for a pupil without a
96.2disability who has a short-term or temporary physical or emotional illness or disability, as
96.3determined by the standards of the commissioner, and who is temporarily placed for care
96.4and treatment for that illness or disability, must be determined as provided in this section.
96.5(a) The school district of residence of the pupil is the district in which the pupil's
96.6parent or guardian resides. If there is a dispute between school districts regarding
96.7residency, the district of residence is the district designated by the commissioner.
96.8(b) When parental rights have been terminated by court order, the legal residence
96.9of a child placed in a residential or foster facility for care and treatment is the district in
96.10which the child resides.
96.11(c) Before the placement of a pupil for care and treatment, the district of residence
96.12must be notified and provided an opportunity to participate in the placement decision.
96.13When an immediate emergency placement is necessary and time does not permit
96.14resident district participation in the placement decision, the district in which the pupil is
96.15temporarily placed, if different from the district of residence, must notify the district
96.16of residence of the emergency placement within 15 days of the placement. When a
96.17nonresident district makes an emergency placement without first consulting with the
96.18resident district, the resident district has up to five business days after receiving notice
96.19of the emergency placement to request an opportunity to participate in the placement
96.20decision, which the placing district must then provide.
96.21(d) When a pupil without a disability is temporarily placed for care and treatment
96.22in a day program and the pupil continues to live within the district of residence during
96.23the care and treatment, the district of residence must provide instruction and necessary
96.24transportation to and from the care and treatment program for the pupil. The resident
96.25district may establish reasonable restrictions on transportation, except if a Minnesota court
96.26or agency orders the child placed at a day care and treatment program and the resident
96.27district receives a copy of the order, then the resident district must provide transportation
96.28to and from the program unless the court or agency orders otherwise. Transportation shall
96.29only be provided by the resident district during regular operating hours of the resident
96.30district. The resident district may provide the instruction at a school within the district of
96.31residence, at the pupil's residence, or in the case of a placement outside of the resident
96.32district, in the district in which the day treatment program is located by paying tuition to
96.33that district. The district of placement may contract with a facility to provide instruction
96.34by teachers licensed by the state Board of Teaching.
96.35(e) When a pupil without a disability is temporarily placed in a residential program
96.36for care and treatment, the district in which the pupil is placed must provide instruction
97.1for the pupil and necessary transportation while the pupil is receiving instruction, and in
97.2the case of a placement outside of the district of residence, the nonresident district must
97.3bill the district of residence for the actual cost of providing the instruction for the regular
97.4school year and for summer school, excluding transportation costs.
97.5(f) Notwithstanding paragraph (e), if the pupil is homeless and placed in a public or
97.6private homeless shelter, then the district that enrolls the pupil under section 127A.47,
97.7subdivision 2 , shall provide the transportation, unless the district that enrolls the pupil
97.8and the district in which the pupil is temporarily placed agree that the district in which
97.9the pupil is temporarily placed shall provide transportation. When a pupil without a
97.10disability is temporarily placed in a residential program outside the district of residence,
97.11the administrator of the court placing the pupil must send timely written notice of the
97.12placement to the district of residence. The district of placement may contract with a
97.13residential facility to provide instruction by teachers licensed by the state Board of
97.14Teaching. For purposes of this section, the state correctional facilities operated on a
97.15fee-for-service basis are considered to be residential programs for care and treatment.
97.16(g) The district of residence must include the pupil in its residence count of pupil
97.17units and pay tuition as provided in section 123A.488 to the district providing the
97.18instruction. Transportation costs must be paid by the district providing the transportation
97.19and the state must pay transportation aid to that district. For purposes of computing state
97.20transportation aid, pupils governed by this subdivision must be included in the disabled
97.21transportation category if the pupils cannot be transported on a regular school bus route
97.22without special accommodations.

97.23    Sec. 9. Minnesota Statutes 2010, section 125A.515, is amended by adding a
97.24subdivision to read:
97.25    Subd. 3a. Students without a disability from other states. A school district is not
97.26required to provide education services under this section to a student who:
97.27(1) is not a resident of Minnesota;
97.28(2) does not have an individualized education program; and
97.29(3) does not have a tuition arrangement or agreement to pay the cost of education
97.30from the placing authority.
97.31EFFECTIVE DATE.This section is effective July 1, 2011, for fiscal year 2012
97.32and later.

97.33    Sec. 10. Minnesota Statutes 2010, section 125A.69, subdivision 1, is amended to read:
98.1    Subdivision 1. Two kinds Admissions. There are two kinds of Admission to the
98.2Minnesota State Academies is described in this section.
98.3(a) A pupil who is deaf, hard of hearing, or blind-deaf deafblind, may be admitted to
98.4the Academy for the Deaf. A pupil who is blind or visually impaired, blind-deaf deafblind,
98.5or multiply disabled may be admitted to the Academy for the Blind. For a pupil to be
98.6admitted, two decisions must be made under sections 125A.03 to 125A.24 and 125A.65.
98.7(1) It must be decided by the individual education planning team that education in
98.8regular or special education classes in the pupil's district of residence cannot be achieved
98.9satisfactorily because of the nature and severity of the deafness or blindness or visual
98.10impairment respectively.
98.11(2) It must be decided by the individual education planning team that the academy
98.12provides the most appropriate placement within the least restrictive alternative for the
98.13pupil.
98.14(b) A deaf or hard-of-hearing child or a visually impaired pupil may be admitted to
98.15get socialization skills or on a short-term basis for skills development.
98.16(c) A parent of a child who resides in Minnesota and who meets the disability criteria
98.17for being deaf or hard of hearing, blind or visually impaired, or multiply disabled may
98.18apply to place the child in the Minnesota State Academies. Academy staff must review
98.19the application to determine whether the Minnesota State Academies is an appropriate
98.20placement for the child. If academy staff determine that the Minnesota State Academies is
98.21an appropriate placement, the staff must invite the individualized education program team
98.22at the child's resident school district to participate in a meeting to arrange a trial placement
98.23of between 60 and 90 calendar days at the Minnesota State Academies. If the child's
98.24parent consents to the trial placement, the Minnesota State Academies is the responsible
98.25serving school district and incurs all due process obligations under law, and the child's
98.26resident school district is responsible for any transportation included in the child's
98.27individualized education program during the trial placement. Before the trial placement
98.28ends, academy staff must convene an individualized education program team meeting to
98.29determine whether to continue the child's placement at the Minnesota State Academies
98.30or that another placement is appropriate. If the academy members of the individualized
98.31education program team and the parent are unable to agree on the child's placement, the
98.32child's placement reverts to the placement in the child's individualized education program
98.33that immediately preceded the trial placement. If the parent and individualized education
98.34program team agree to continue the placement beyond the trial period, the transportation
98.35and due process responsibilities are the same as those described for the trial placement
98.36under this paragraph.

99.1    Sec. 11. APPROPRIATIONS.
99.2    Subdivision 1. Department of Education. The sums indicated in this section are
99.3appropriated from the general fund to the Department of Education for the fiscal years
99.4designated.
99.5    Subd. 2. Special education; regular. For special education aid under Minnesota
99.6Statutes, section 125A.75:

99.7		$	732,658,000	.....	2012
99.8		$	855,605,000	.....	2013

99.9The 2012 appropriation includes $235,975,000 for 2011 and $496,683,000 for 2012.
99.10The 2013 appropriation includes $331,121,000 for 2012 and $524,484,000 for 2013.
99.11    Subd. 3. Aid for children with disabilities. For aid under Minnesota Statutes,
99.12section 125A.75, subdivision 3, for children with disabilities placed in residential facilities
99.13within the district boundaries for whom no district of residence can be determined:

99.14		$	1,648,000	.....	2012
99.15		$	1,745,000	.....	2013

99.16If the appropriation for either year is insufficient, the appropriation for the other
99.17year is available.
99.18    Subd. 4. Travel for home-based services. For aid for teacher travel for home-based
99.19services under Minnesota Statutes, section 125A.75, subdivision 1:

99.20		$	322,000	.....	2012
99.21		$	358,000	.....	2013

99.22The 2012 appropriation includes $107,000 for 2011 and $215,000 for 2012.
99.23The 2013 appropriation includes $142,000 for 2012 and $216,000 for 2013.
99.24    Subd. 5. Special education; excess costs. For excess cost aid under Minnesota
99.25Statutes, section 125A.79, subdivision 7:

99.26		$	103,978,000	.....	2012
99.27		$	115,304,000	.....	2013

99.28The 2012 appropriation includes $53,449,000 for 2011 and $50,529,000 for 2012.
99.29The 2013 appropriation includes $63,273,000 for 2012 and $52,031,000 for 2013.
99.30    Subd. 6. Court-placed special education revenue. For reimbursing serving
99.31school districts for unreimbursed eligible expenditures attributable to children placed in
99.32the serving school district by court action under Minnesota Statutes, section 125A.79,
99.33subdivision 4:

100.1		$	80,000	.....	2012
100.2		$	82,000	.....	2013

100.3    Subd. 7. Special education out-of-state tuition. For special education out-of-state
100.4tuition according to Minnesota Statutes, section 125A.79, subdivision 8:

100.5		$	250,000	.....	2012
100.6		$	250,000	.....	2013

100.7    Sec. 12. REVISOR'S INSTRUCTION.
100.8The revisor of statutes shall substitute the term "individualized education program"
100.9or similar terms for "individual education plan" or similar terms wherever they appear
100.10in Minnesota Statutes and Minnesota Rules referring to the requirements relating to
100.11the federal Individuals with Disabilities Education Act. The revisor shall also make
100.12grammatical changes related to the changes in terms.

100.13    Sec. 13. REPEALER.
100.14Minnesota Statutes 2010, section 125A.54, is repealed.


100.17    Section 1. Minnesota Statutes 2010, section 123B.54, is amended to read:
100.18123B.54 DEBT SERVICE APPROPRIATION.
100.19    (a) $17,161,000 $11,022,000 in fiscal year 2012 and $19,175,000, $19,484,000 in
100.20fiscal year 2013, $23,588,000 in fiscal year 2014, and $23,967,000 in fiscal year 2015 and
100.21later are appropriated from the general fund to the commissioner of education for payment
100.22of debt service equalization aid under section 123B.53.
100.23    (b) The appropriations in paragraph (a) must be reduced by the amount of any
100.24money specifically appropriated for the same purpose in any year from any state fund.

100.25    Sec. 2. Minnesota Statutes 2010, section 123B.57, is amended to read:
100.26123B.57 CAPITAL EXPENDITURE; HEALTH AND SAFETY.
100.27    Subdivision 1. Health and safety program revenue application. (a) To receive
100.28health and safety revenue for any fiscal year a district must submit to the commissioner
100.29an a capital expenditure health and safety revenue application for aid and levy by the
100.30date determined by the commissioner. The application may be for hazardous substance
101.1removal, fire and life safety code repairs, labor and industry regulated facility and
101.2equipment violations, and health, safety, and environmental management, including
101.3indoor air quality management. The application must include a health and safety program
101.4budget adopted and confirmed by the school district board as being consistent with the
101.5district's health and safety policy under subdivision 2. The program budget must include
101.6the estimated cost, per building, of the program per Uniform Financial Accounting and
101.7Reporting Standards (UFARS) finance code, by fiscal year. Upon approval through the
101.8adoption of a resolution by each of an intermediate district's member school district
101.9boards and the approval of the Department of Education, a school district may include
101.10its proportionate share of the costs of health and safety projects for an intermediate
101.11district in its application.
101.12(b) Health and safety projects with an estimated cost of $500,000 or more per
101.13site are not eligible for health and safety revenue. Health and safety projects with an
101.14estimated cost of $500,000 or more per site that meet all other requirements for health and
101.15safety funding, are eligible for alternative facilities bonding and levy revenue according
101.16to section 123B.59. A school board shall not separate portions of a single project into
101.17components to qualify for health and safety revenue, and shall not combine unrelated
101.18projects into a single project to qualify for alternative facilities bonding and levy revenue.
101.19(c) The commissioner of education shall not make eligibility for health and safety
101.20revenue contingent on a district's compliance status, level of program development, or
101.21training. The commissioner shall not mandate additional performance criteria such as
101.22training, certifications, or compliance evaluations as a prerequisite for levy approval.
101.23    Subd. 2. Contents of program Health and safety policy. To qualify for health
101.24and safety revenue, a district school board must adopt a health and safety program policy.
101.25The program policy must include plans, where applicable, for hazardous substance
101.26removal, fire and life safety code repairs, regulated facility and equipment violations,
101.27and provisions for implementing a health and safety program that complies with health,
101.28safety, and environmental management, regulations and best practices including indoor
101.29air quality management.
101.30(a) A hazardous substance plan must contain provisions for the removal or
101.31encapsulation of asbestos from school buildings or property, asbestos-related repairs,
101.32cleanup and disposal of polychlorinated biphenyls found in school buildings or property,
101.33and cleanup, removal, disposal, and repairs related to storing heating fuel or transportation
101.34fuels such as alcohol, gasoline, fuel, oil, and special fuel, as defined in section 296A.01.
101.35If a district has already developed a plan for the removal or encapsulation of asbestos as
101.36required by the federal Asbestos Hazard Emergency Response Act of 1986, the district
102.1may use a summary of that plan, which includes a description and schedule of response
102.2actions, for purposes of this section. The plan must also contain provisions to make
102.3modifications to existing facilities and equipment necessary to limit personal exposure
102.4to hazardous substances, as regulated by the federal Occupational Safety and Health
102.5Administration under Code of Federal Regulations, title 29, part 1910, subpart Z; or is
102.6determined by the commissioner to present a significant risk to district staff or student
102.7health and safety as a result of foreseeable use, handling, accidental spill, exposure, or
102.8contamination.
102.9(b) A fire and life safety plan must contain a description of the current fire and life
102.10safety code violations, a plan for the removal or repair of the fire and life safety hazard,
102.11and a description of safety preparation and awareness procedures to be followed until the
102.12hazard is fully corrected.
102.13(c) A facilities and equipment violation plan must contain provisions to correct
102.14health and safety hazards as provided in Department of Labor and Industry standards
102.15pursuant to section 182.655.
102.16(d) A health, safety, and environmental management plan must contain a description
102.17of training, record keeping, hazard assessment, and program management as defined
102.18in section 123B.56.
102.19(e) A plan to test for and mitigate radon produced hazards.
102.20(f) A plan to monitor and improve indoor air quality.
102.21    Subd. 3. Health and safety revenue. A district's health and safety revenue
102.22for a fiscal year equals the district's alternative facilities levy under section 123B.59,
102.23subdivision 5, paragraph (b), plus the greater of zero or:
102.24    (1) the sum of (a) the total approved cost of the district's hazardous substance
102.25plan for fiscal years 1985 through 1989, plus (b) the total approved cost of the district's
102.26health and safety program for fiscal year 1990 through the fiscal year to which the levy
102.27is attributable, excluding expenditures funded with bonds issued under section 123B.59
102.28or 123B.62, or chapter 475; certificates of indebtedness or capital notes under section
102.29123B.61 ; levies under section 123B.58, 123B.59, 123B.63, or 126C.40, subdivision 1 or
102.306; and other federal, state, or local revenues, minus
102.31    (2) the sum of (a) the district's total hazardous substance aid and levy for fiscal years
102.321985 through 1989 under sections 124.245 and 275.125, subdivision 11c, plus (b) the
102.33district's health and safety revenue under this subdivision, for years before the fiscal year
102.34to which the levy is attributable.
102.35    Subd. 4. Health and safety levy. To receive health and safety revenue, a district
102.36may levy an amount equal to the district's health and safety revenue as defined in
103.1subdivision 3 multiplied by the lesser of one, or the ratio of the quotient derived by
103.2dividing the adjusted net tax capacity of the district for the year preceding the year the
103.3levy is certified by the adjusted marginal cost pupil units in the district for the school year
103.4to which the levy is attributable, to $2,935.
103.5    Subd. 5. Health and safety aid. A district's health and safety aid is the difference
103.6between its health and safety revenue and its health and safety levy. If a district does not
103.7levy the entire amount permitted, health and safety aid must be reduced in proportion to
103.8the actual amount levied. Health and safety aid may not be reduced as a result of reducing
103.9a district's health and safety levy according to section 123B.79.
103.10    Subd. 6. Uses of health and safety revenue. (a) Health and safety revenue may be
103.11used only for approved expenditures necessary to correct for the correction of fire and life
103.12safety hazards, or for the; design, purchase, installation, maintenance, and inspection of
103.13fire protection and alarm equipment; purchase or construction of appropriate facilities for
103.14the storage of combustible and flammable materials; inventories and facility modifications
103.15not related to a remodeling project to comply with lab safety requirements under section
103.16121A.31; inspection, testing, repair, removal or encapsulation, and disposal of asbestos
103.17from school buildings or property owned or being acquired by the district, asbestos-related
103.18repairs, asbestos-containing building materials; cleanup and disposal of polychlorinated
103.19biphenyls found in school buildings or property owned or being acquired by the district,
103.20or the; cleanup and disposal of hazardous and infectious wastes; cleanup, removal,
103.21disposal, and repairs related to storing heating fuel or transportation fuels such as alcohol,
103.22gasoline, fuel oil, and special fuel, as defined in section 296A.01, Minnesota; correction of
103.23occupational safety and health administration regulated facility and equipment hazards,;
103.24indoor air quality inspections, investigations, and testing; mold abatement,; upgrades or
103.25replacement of mechanical ventilation systems to meet American Society of Heating,
103.26Refrigerating and Air Conditioning Engineers standards and State Mechanical Code,;
103.27design, materials, and installation of local exhaust ventilation systems, including required
103.28make-up air for controlling regulated hazardous substances; correction of Department
103.29of Health Food Code and violations; correction of swimming pool hazards excluding
103.30depth correction,; playground safety inspections, repair of unsafe outdoor playground
103.31equipment, and the installation of impact surfacing materials; bleacher repair or rebuilding
103.32to comply with the order of a building code inspector under section 326B.112; testing and
103.33mitigation of elevated radon hazards; lead testing; copper in water testing; cleanup after
103.34major weather-related disasters or flooding; reduction of excessive organic and inorganic
103.35levels in wells and capping of abandoned wells; installation and testing of boiler backflow
103.36valves to prevent contamination of potable water; vaccinations, titers, and preventative
104.1supplies for bloodborne pathogen compliance; costs to comply with the Janet B. Johnson
104.2Parents' Right to Know Act; automated external defibrillators and other emergency plan
104.3equipment and supplies specific to the district's emergency action plan; and health, safety,
104.4and environmental management costs associated with implementing the district's health
104.5and safety program including costs to establish and operate safety committees, in school
104.6buildings or property owned or being acquired by the district. Testing and calibration
104.7activities are permitted for existing mechanical ventilation systems at intervals no less than
104.8every five years. Health and safety revenue must not be used to finance a lease purchase
104.9agreement, installment purchase agreement, or other deferred payments agreement. Health
104.10and safety revenue must not be used for the construction of new facilities or the purchase
104.11of portable classrooms, for interest or other financing expenses, or for energy efficiency
104.12projects under section 123B.65. The revenue may not be used for a building or property or
104.13part of a building or property used for postsecondary instruction or administration or for a
104.14purpose unrelated to elementary and secondary education.
104.15    Subd. 6a. Restrictions on health and safety revenue. (b) Notwithstanding
104.16paragraph (a) subdivision 6, health and safety revenue must not be used:
104.17(1) to finance a lease purchase agreement, installment purchase agreement, or other
104.18deferred payments agreement;
104.19(2) for the construction of new facilities, remodeling of existing facilities, or the
104.20purchase of portable classrooms;
104.21(3) for interest or other financing expenses;
104.22(4) for energy-efficiency projects under section 123B.65, for a building or property
104.23or part of a building or property used for postsecondary instruction or administration or for
104.24a purpose unrelated to elementary and secondary education;
104.25(5) for replacement of building materials or facilities including roof, walls, windows,
104.26internal fixtures and flooring, nonhealth and safety costs associated with demolition of
104.27facilities, structural repair or replacement of facilities due to unsafe conditions, violence
104.28prevention and facility security, ergonomics, or public announcement systems and
104.29emergency communication devices; or
104.30(6) for building and heating, ventilating and air conditioning supplies, maintenance,
104.31and cleaning activities. All assessments, investigations, inventories, and support
104.32equipment not leading to the engineering or construction of a project shall be included in
104.33the health, safety, and environmental management costs in subdivision 8, paragraph (a).
104.34    Subd. 6b. Health and safety projects. (a) Health and safety revenue applications
104.35defined in subdivision 1 must be accompanied by a description of each project for which
104.36funding is being requested. Project descriptions must provide enough detail for an auditor
105.1to determine if the work qualifies for revenue. For projects other than fire and life
105.2safety projects, playground projects, and health, safety, and environmental management
105.3activities, a project description does not need to include itemized details such as material
105.4types, room locations, square feet, names, or license numbers. The commissioner
105.5may request supporting information and shall approve only projects that comply with
105.6subdivisions 6 and 8, as defined by the Department of Education.
105.7(b) Districts may request funding for allowable projects based on self-assessments,
105.8safety committee recommendations, insurance inspections, management assistance
105.9reports, fire marshal orders, or other mandates. Notwithstanding subdivision 1, paragraph
105.10(b), and subdivision 8, paragraph (b), for projects under $500,000, individual project
105.11size for projects authorized by this subdivision is not limited and may include related
105.12work in multiple facilities. Health and safety management costs from subdivision 8 may
105.13be reported as a single project.
105.14(c) All costs directly related to a project shall be reported in the appropriate Uniform
105.15Financial Accounting and Reporting Standards (UFARS) finance code.
105.16(d) For fire and life safety egress and all other projects exceeding $20,000, cited
105.17under Minnesota Fire Code, a fire marshal plan review is required.
105.18(e) Districts shall update project estimates with actual expenditures for each
105.19fiscal year. If a project's final cost is significantly higher than originally approved, the
105.20commissioner may request additional supporting information.
105.21    Subd. 6c. Appeals process. In the event a district is denied funding approval for
105.22a project the district believes complies with subdivisions 6 and 8, and is not otherwise
105.23excluded, a district may appeal the decision. All such requests must be in writing. The
105.24commissioner shall respond in writing. A written request must contain the following:
105.25project number; description and amount; reason for denial; unresolved questions for
105.26consideration; reasons for reconsideration; and a specific statement of what action the
105.27district is requesting.
105.28    Subd. 7. Proration. In the event that the health and safety aid available for any year
105.29is prorated, a district having its aid prorated may levy an additional amount equal to the
105.30amount not paid by the state due to proration.
105.31    Subd. 8. Health, safety, and environmental management cost. (a) "Health, safety,
105.32and environmental management" is defined in section 123B.56.
105.33(b) A district's cost for health, safety, and environmental management is limited to
105.34the lesser of:
105.35(1) actual cost to implement their plan; or
106.1(2) an amount determined by the commissioner, based on enrollment, building
106.2age, and size.
106.3(b) (c) The department may contract with regional service organizations, private
106.4contractors, Minnesota Safety Council, or state agencies to provide management
106.5assistance to school districts for health and safety capital projects. Management assistance
106.6is the development of written programs for the identification, recognition and control of
106.7hazards, and prioritization and scheduling of district health and safety capital projects.
106.8The department commissioner shall not mandate management assistance or exclude
106.9private contractors from the opportunity to provide any health and safety services to
106.10school districts.
106.11(c) Notwithstanding paragraph (b), the department may approve revenue, up to
106.12the limit defined in paragraph (a) for districts having an approved health, safety, and
106.13environmental management plan that uses district staff to accomplish coordination and
106.14provided services.

106.15    Sec. 3. Minnesota Statutes 2010, section 123B.63, subdivision 3, is amended to read:
106.16    Subd. 3. Capital project levy referendum. (a) A district may levy the local tax
106.17rate approved by a majority of the electors voting on the question to provide funds for
106.18an approved project. The election must take place no more than five years before the
106.19estimated date of commencement of the project. The referendum must be held on a date
106.20set by the board. A referendum for a project not receiving a positive review and comment
106.21by the commissioner under section 123B.71 must be approved by at least 60 percent of
106.22the voters at the election.
106.23(b) The referendum may be called by the school board and may be held:
106.24    (1) separately, before an election for the issuance of obligations for the project
106.25under chapter 475; or
106.26    (2) in conjunction with an election for the issuance of obligations for the project
106.27under chapter 475; or
106.28    (3) notwithstanding section 475.59, as a conjunctive question authorizing both the
106.29capital project levy and the issuance of obligations for the project under chapter 475. Any
106.30obligations authorized for a project may be issued within five years of the date of the
106.31election.
106.32    (c) The ballot must provide a general description of the proposed project, state the
106.33estimated total cost of the project, state whether the project has received a positive or
106.34negative review and comment from the commissioner, state the maximum amount of the
106.35capital project levy as a percentage of net tax capacity, state the amount that will be raised
107.1by that local tax rate in the first year it is to be levied, and state the maximum number of
107.2years that the levy authorization will apply.
107.3    The ballot must contain a textual portion with the information required in this
107.4section and a question stating substantially the following:
107.5    "Shall the capital project levy proposed by the board of .......... School District
107.6No. .......... be approved?"
107.7    If approved, the amount provided by the approved local tax rate applied to the net
107.8tax capacity for the year preceding the year the levy is certified may be certified for the
107.9number of years, not to exceed ten, approved.
107.10(d) If the district proposes a new capital project to begin at the time the existing
107.11capital project expires and at the same maximum tax rate, the general description on the
107.12ballot may state that the capital project levy is being renewed and that the tax rate is not
107.13being increased from the previous year's rate. An election to renew authority under this
107.14paragraph may be called at any time that is otherwise authorized by this subdivision. The
107.15ballot notice required under section 275.60 may be modified to read:
107.16"BY VOTING YES ON THIS BALLOT QUESTION, YOU ARE VOTING
107.17TO RENEW AN EXISTING CAPITAL PROJECTS REFERENDUM THAT IS
107.18SCHEDULED TO EXPIRE."
107.19    (e) In the event a conjunctive question proposes to authorize both the capital project
107.20levy and the issuance of obligations for the project, appropriate language authorizing the
107.21issuance of obligations must also be included in the question.
107.22    (f) The district must notify the commissioner of the results of the referendum.
107.23EFFECTIVE DATE.This section is effective the day following final enactment for
107.24referenda conducted on or after the 53rd day following final enactment.

107.25    Sec. 4. Minnesota Statutes 2010, section 123B.71, subdivision 5, is amended to read:
107.26    Subd. 5. Final plans. If a construction contract has not been awarded within two
107.27years of approval, the approval shall not be valid. After approval, final plans and the
107.28approval shall be filed with made available, if requested, to the commissioner of education.
107.29If substantial changes are made to the initial approved plans, documents reflecting
107.30the changes shall be submitted to the commissioner for approval. Upon completing a
107.31project, the school board shall certify to the commissioner that the project was completed
107.32according to the approved plans.

107.33    Sec. 5. Minnesota Statutes 2010, section 123B.72, subdivision 3, is amended to read:
108.1    Subd. 3. Certification. Prior to occupying or reoccupying a school facility affected
108.2by this section, a school board or its designee shall submit a document prepared by a
108.3system inspector to the building official or to the commissioner, verifying that the facility's
108.4heating, ventilation, and air conditioning system has been installed and operates according
108.5to design specifications and code, according to section 123B.71, subdivision 9, clause
108.6(11) (12). A systems inspector shall also verify that the facility's design will provide
108.7the ability for monitoring of outdoor airflow and total airflow of ventilation systems in
108.8new school facilities and that any heating, ventilation, or air conditioning system that is
108.9installed or modified for a project subject to this section must provide a filtration system
108.10with a current ASHRAE standard.

108.11    Sec. 6. Minnesota Statutes 2010, section 126C.40, subdivision 1, is amended to read:
108.12    Subdivision 1. To lease building or land. (a) When an independent or a special
108.13school district or a group of independent or special school districts finds it economically
108.14advantageous to rent or lease a building or land for any instructional purposes or for
108.15school storage or furniture repair, and it determines that the operating capital revenue
108.16authorized under section 126C.10, subdivision 13, is insufficient for this purpose, it may
108.17apply to the commissioner for permission to make an additional capital expenditure levy
108.18for this purpose. An application for permission to levy under this subdivision must contain
108.19financial justification for the proposed levy, the terms and conditions of the proposed
108.20lease, and a description of the space to be leased and its proposed use.
108.21    (b) The criteria for approval of applications to levy under this subdivision must
108.22include: the reasonableness of the price, the appropriateness of the space to the proposed
108.23activity, the feasibility of transporting pupils to the leased building or land, conformity
108.24of the lease to the laws and rules of the state of Minnesota, and the appropriateness of
108.25the proposed lease to the space needs and the financial condition of the district. The
108.26commissioner must not authorize a levy under this subdivision in an amount greater than
108.27the cost to the district of renting or leasing a building or land for approved purposes.
108.28The proceeds of this levy must not be used for custodial or other maintenance services.
108.29A district may not levy under this subdivision for the purpose of leasing or renting a
108.30district-owned building or site to itself.
108.31    (c) For agreements finalized after July 1, 1997, a district may not levy under this
108.32subdivision for the purpose of leasing: (1) a newly constructed building used primarily
108.33for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed
108.34building addition or additions used primarily for regular kindergarten, elementary, or
109.1secondary instruction that contains more than 20 percent of the square footage of the
109.2previously existing building.
109.3    (d) Notwithstanding paragraph (b), a district may levy under this subdivision for the
109.4purpose of leasing or renting a district-owned building or site to itself only if the amount
109.5is needed by the district to make payments required by a lease purchase agreement,
109.6installment purchase agreement, or other deferred payments agreement authorized by law,
109.7and the levy meets the requirements of paragraph (c). A levy authorized for a district by
109.8the commissioner under this paragraph may be in the amount needed by the district to
109.9make payments required by a lease purchase agreement, installment purchase agreement,
109.10or other deferred payments agreement authorized by law, provided that any agreement
109.11include a provision giving the school districts the right to terminate the agreement
109.12annually without penalty.
109.13    (e) The total levy under this subdivision for a district for any year must not exceed
109.14$150 times the resident pupil units for the fiscal year to which the levy is attributable.
109.15    (f) For agreements for which a review and comment have been submitted to the
109.16Department of Education after April 1, 1998, the term "instructional purpose" as used in
109.17this subdivision excludes expenditures on stadiums.
109.18    (g) The commissioner of education may authorize a school district to exceed the
109.19limit in paragraph (e) if the school district petitions the commissioner for approval. The
109.20commissioner shall grant approval to a school district to exceed the limit in paragraph (e)
109.21for not more than five years if the district meets the following criteria:
109.22    (1) the school district has been experiencing pupil enrollment growth in the
109.23preceding five years;
109.24    (2) the purpose of the increased levy is in the long-term public interest;
109.25    (3) the purpose of the increased levy promotes colocation of government services;
109.26and
109.27    (4) the purpose of the increased levy is in the long-term interest of the district by
109.28avoiding over construction of school facilities.
109.29    (h) A school district that is a member of an intermediate school district may include
109.30in its authority under this section the costs associated with leases of administrative and
109.31classroom space for intermediate school district programs. This authority must not exceed
109.32$43 times the adjusted marginal cost pupil units of the member districts. This authority is
109.33in addition to any other authority authorized under this section.
109.34    (i) In addition to the allowable capital levies in paragraph (a), for taxes payable in
109.352012, a district that is a member of the "Technology and Information Education Systems"
109.36data processing joint board, that finds it economically advantageous to enter into a lease
110.1purchase agreement for to finance improvements to a building for a group of school
110.2districts or special school districts for staff development purposes, may levy for its portion
110.3of lease costs attributed to the district within the total levy limit in paragraph (e). The total
110.4levy authority under this paragraph shall not exceed $632,000.
110.5EFFECTIVE DATE.This section is effective for taxes payable in 2012.

110.6    Sec. 7. Laws 1999, chapter 241, article 4, section 25, is amended by adding a
110.7subdivision to read:
110.8    Subd. 3. Independent School District No. 284, Wayzata. Independent School
110.9District No. 284, Wayzata, is eligible for the alternative facilities revenue program under
110.10Minnesota Statutes, section 123B.59, for the purposes of financing school facilities
110.11in the district.
110.12EFFECTIVE DATE.This section is effective for revenue for fiscal year 2013
110.13and later.

110.14    Sec. 8. EARLY REPAYMENT.
110.15A school district that received a maximum effort capital loan prior to January 1,
110.161997, may repay the full outstanding original principal on its capital loan prior to July 1,
110.172012, and the liability of the district on the loan is satisfied and discharged and interest
110.18on the loan ceases.

110.19    Sec. 9. HEALTH AND SAFETY POLICY.
110.20Notwithstanding Minnesota Statutes, section 123B.57, subdivision 2, a school board
110.21that has not yet adopted a health and safety policy by September 30, 2011, may submit an
110.22application for health and safety revenue for taxes payable in 2012 in the form and manner
110.23specified by the commissioner of education.

110.24    Sec. 10. APPROPRIATIONS.
110.25    Subdivision 1. Department of Education. The sums indicated in this section are
110.26appropriated from the general fund to the Department of Education for the fiscal years
110.27designated.
110.28    Subd. 2. Health and safety revenue. For health and safety aid according to
110.29Minnesota Statutes, section 123B.57, subdivision 5:

111.1		$	111,000	.....	2012
111.2		$	114,000	.....	2013

111.3The 2012 appropriation includes $39,000 for 2011 and $72,000 for 2012.
111.4The 2013 appropriation includes $48,000 for 2012 and $66,000 for 2013.
111.5    Subd. 3. Debt service equalization. For debt service aid according to Minnesota
111.6Statutes, section 123B.53, subdivision 6:

111.7		$	11,022,000	.....	2012
111.8		$	19,484,000	.....	2013

111.9The 2012 appropriation includes $2,604,000 for 2011 and $8,418,000 for 2012.
111.10The 2013 appropriation includes $5,611,000 for 2012 and $13,873,000 for 2013.
111.11    Subd. 4. Alternative facilities bonding aid. For alternative facilities bonding aid,
111.12according to Minnesota Statutes, section 123B.59, subdivision 1:

111.13		$	17,359,000	.....	2012
111.14		$	19,287,000	.....	2013

111.15The 2012 appropriation includes $5,786,000 for 2011 and $11,573,000 for 2012.
111.16The 2013 appropriation includes $7,714,000 for 2012 and $11,573,000 for 2013.
111.17    Subd. 5. Equity in telecommunications access. For equity in telecommunications
111.18access:

111.19		$	3,750,000	.....	2012
111.20		$	3,750,000	.....	2013

111.21If the appropriation amount is insufficient, the commissioner shall reduce the
111.22reimbursement rate in Minnesota Statutes, section 125B.26, subdivisions 4 and 5, and the
111.23revenue for fiscal years 2012 and 2013 shall be prorated.
111.24Any balance in the first year does not cancel but is available in the second year.
111.25    Subd. 6. Deferred maintenance aid. For deferred maintenance aid, according to
111.26Minnesota Statutes, section 123B.591, subdivision 4:

111.27		$	2,234,000	.....	2012
111.28		$	2,972,000	.....	2013

111.29The 2012 appropriation includes $676,000 for 2011 and $1,558,000 for 2012.
111.30The 2013 appropriation includes $1,038,000 for 2012 and $1,934,000 for 2013.


112.3    Section 1. Minnesota Statutes 2010, section 16A.152, subdivision 2, is amended to
112.4read:
112.5    Subd. 2. Additional revenues; priority. (a) If on the basis of a forecast of general
112.6fund revenues and expenditures, the commissioner of management and budget determines
112.7that there will be a positive unrestricted budgetary general fund balance at the close of
112.8the biennium, the commissioner of management and budget must allocate money to the
112.9following accounts and purposes in priority order:
112.10    (1) the cash flow account established in subdivision 1 until that account reaches
112.11$350,000,000;
112.12    (2) the budget reserve account established in subdivision 1a until that account
112.13reaches $653,000,000;
112.14    (3) the amount necessary to increase the aid payment schedule for school district
112.15aids and credits payments in section 127A.45 to not more than 90 percent rounded to the
112.16nearest tenth of a percent without exceeding the amount available and with any remaining
112.17funds deposited in the budget reserve;
112.18    (4) the amount necessary to restore all or a portion of the net aid reductions under
112.19section 127A.441 and to reduce the property tax revenue recognition shift under section
112.20123B.75, subdivision 5 , paragraph (a), and Laws 2003, First Special Session chapter 9,
112.21article 5, section 34, as amended by Laws 2003, First Special Session chapter 23, section
112.2220, by the same amount;
112.23(5) to the state airports fund, the amount necessary to restore the amount transferred
112.24from the state airports fund under Laws 2008, chapter 363, article 11, section 3,
112.25subdivision 5; and
112.26(6) to the fire safety account in the special revenue fund, the amount necessary to
112.27restore transfers from the account to the general fund made in Laws 2010.
112.28    (b) The amounts necessary to meet the requirements of this section are appropriated
112.29from the general fund within two weeks after the forecast is released or, in the case of
112.30transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations
112.31schedules otherwise established in statute.
112.32    (c) The commissioner of management and budget shall certify the total dollar
112.33amount of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of
112.34education. The commissioner of education shall increase the aid payment percentage and
113.1reduce the property tax shift percentage by these amounts and apply those reductions to
113.2the current fiscal year and thereafter.

113.3    Sec. 2. Minnesota Statutes 2010, section 123B.75, subdivision 5, is amended to read:
113.4    Subd. 5. Levy recognition. (a) For fiscal years 2009 and 2010, in June of each
113.5year, the school district must recognize as revenue, in the fund for which the levy was
113.6made, the lesser of:
113.7(1) the sum of May, June, and July school district tax settlement revenue received in
113.8that calendar year, plus general education aid according to section 126C.13, subdivision
113.94 , received in July and August of that calendar year; or
113.10(2) the sum of:
113.11(i) 31 percent of the referendum levy certified according to section 126C.17, in
113.12calendar year 2000; and
113.13(ii) the entire amount of the levy certified in the prior calendar year according to
113.14section 124D.86, subdivision 4, for school districts receiving revenue under sections
113.15124D.86, subdivision 3 , clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, paragraph
113.16(a), and 3 , paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48,
113.17subdivision 6 ; plus
113.18(iii) zero percent of the amount of the levy certified in the prior calendar year for the
113.19school district's general and community service funds, plus or minus auditor's adjustments,
113.20not including the levy portions that are assumed by the state, that remains after subtracting
113.21the referendum levy certified according to section 126C.17 and the amount recognized
113.22according to item (ii).
113.23(b) For fiscal year 2011 and later years, in June of each year, the school district must
113.24recognize as revenue, in the fund for which the levy was made, the lesser of:
113.25(1) the sum of May, June, and July school district tax settlement revenue received in
113.26that calendar year, plus general education aid according to section 126C.13, subdivision
113.274, received in July and August of that calendar year; or
113.28(2) the sum of:
113.29(i) the greater of 48.6 percent of the referendum levy certified according to section
113.30126C.17 in the prior calendar year, or 31 percent of the referendum levy certified
113.31according to section 126C.17 in calendar year 2000; plus
113.32(ii) the entire amount of the levy certified in the prior calendar year according to
113.33section 124D.86, subdivision 4, for school districts receiving revenue under sections
113.34124D.86, subdivision 3 , clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, paragraph
114.1(a), and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48,
114.2subdivision 6; plus
114.3(iii) 48.6 percent of the amount of the levy certified in the prior calendar year for the
114.4school district's general and community service funds, plus or minus auditor's adjustments,
114.5not including the levy portions that are assumed by the state, that remains after subtracting
114.6the referendum levy certified according to section 126C.17 and the amount recognized
114.7according to item (ii).
114.8EFFECTIVE DATE.This section is effective for fiscal year 2011 and later.

114.9    Sec. 3. Minnesota Statutes 2010, section 124D.11, subdivision 9, is amended to read:
114.10    Subd. 9. Payment of aids to charter schools. (a) Notwithstanding section
114.11127A.45, subdivision 3 , if the current year aid payment percentage under section
114.12127A.45, subdivision 2, paragraph (d), is 90 or greater, aid payments for the current
114.13fiscal year to a charter school shall be of an equal amount on each of the 24 payment
114.14dates. Notwithstanding section 127A.45, subdivision 3, if the current year aid payment
114.15percentage under section 127A.45, subdivision 2, paragraph (d), is less than 90, aid
114.16payments for the current fiscal year to a charter school shall be of an equal amount on
114.17each of the 16 payment dates in July through February.
114.18(b) Notwithstanding paragraph (a) and section 127A.45, for a charter school ceasing
114.19operation on or prior to June 30 of a school year, for the payment periods occurring after
114.20the school ceases serving students, the commissioner shall withhold the estimated state aid
114.21owed the school. The charter school board of directors and authorizer must submit to the
114.22commissioner a closure plan under chapter 308A or 317A, and financial information about
114.23the school's liabilities and assets. After receiving the closure plan, financial information,
114.24an audit of pupil counts, documentation of lease expenditures, and monitoring of special
114.25education expenditures, the commissioner may release cash withheld and may continue
114.26regular payments up to the current year payment percentages if further amounts are
114.27owed. If, based on audits and monitoring, the school received state aid in excess of the
114.28amount owed, the commissioner shall retain aid withheld sufficient to eliminate the aid
114.29overpayment. For a charter school ceasing operations prior to, or at the end of, a school
114.30year, notwithstanding section 127A.45, subdivision 3, preliminary final payments may
114.31be made after receiving the closure plan, audit of pupil counts, monitoring of special
114.32education expenditures, documentation of lease expenditures, and school submission of
114.33Uniform Financial Accounting and Reporting Standards (UFARS) financial data for the
114.34final year of operation. Final payment may be made upon receipt of audited financial
114.35statements under section 123B.77, subdivision 3.
115.1(c) If a charter school fails to comply with the commissioner's directive to return,
115.2for cause, federal or state funds administered by the department, the commissioner may
115.3withhold an amount of state aid sufficient to satisfy the directive.
115.4(d) If, within the timeline under section 471.425, a charter school fails to pay the state
115.5of Minnesota, a school district, intermediate school district, or service cooperative after
115.6receiving an undisputed invoice for goods and services, the commissioner may withhold
115.7an amount of state aid sufficient to satisfy the claim and shall distribute the withheld
115.8aid to the interested state agency, school district, intermediate school district, or service
115.9cooperative. An interested state agency, school district, intermediate school district, or
115.10education cooperative shall notify the commissioner when a charter school fails to pay an
115.11undisputed invoice within 75 business days of when it received the original invoice.
115.12(e) Notwithstanding section 127A.45, subdivision 3, and paragraph (a), 80 percent
115.13of the start-up cost aid under subdivision 8 shall be paid within 45 days after the first day
115.14of student attendance for that school year.
115.15(f) In order to receive state aid payments under this subdivision, a charter school in
115.16its first three years of operation must submit a school calendar in the form and manner
115.17requested by the department and a quarterly report to the Department of Education. The
115.18report must list each student by grade, show the student's start and end dates, if any,
115.19with the charter school, and for any student participating in a learning year program,
115.20the report must list the hours and times of learning year activities. The report must be
115.21submitted not more than two weeks after the end of the calendar quarter to the department.
115.22The department must develop a Web-based reporting form for charter schools to use
115.23when submitting enrollment reports. A charter school in its fourth and subsequent year of
115.24operation must submit a school calendar and enrollment information to the department in
115.25the form and manner requested by the department.
115.26(g) Notwithstanding sections 317A.701 to 317A.791, upon closure of a charter
115.27school and satisfaction of creditors, cash and investment balances remaining shall be
115.28returned to the state.

115.29    Sec. 4. Minnesota Statutes 2010, section 127A.42, subdivision 2, is amended to read:
115.30    Subd. 2. Violations of law. The commissioner may reduce or withhold the district's
115.31state aid for any school year whenever the board of the district authorizes or permits
115.32violations of law within the district by:
115.33(1) employing a teacher who does not hold a valid teaching license or permit in a
115.34public school;
116.1(2) noncompliance with a mandatory rule of general application promulgated by the
116.2commissioner in accordance with statute, unless special circumstances make enforcement
116.3inequitable, impose an extraordinary hardship on the district, or the rule is contrary to
116.4the district's best interests;
116.5(3) the district's continued performance of a contract made for the rental of rooms
116.6or buildings for school purposes or for the rental of any facility owned or operated by or
116.7under the direction of any private organization, if the contract has been disapproved, the
116.8time for review of the determination of disapproval has expired, and no proceeding for
116.9review is pending;
116.10(4) any practice which is a violation of sections 1 and 2 of article 13 of the
116.11Constitution of the state of Minnesota;
116.12(5) failure to reasonably provide for a resident pupil's school attendance under
116.13Minnesota Statutes;
116.14(6) noncompliance with state laws prohibiting discrimination because of race,
116.15color, creed, religion, national origin, sex, age, marital status, status with regard to
116.16public assistance or disability, as defined in sections 363A.08 to 363A.19 and 363A.28,
116.17subdivision 10 ; or
116.18(7) using funds contrary to the statutory purpose of the funds.
116.19The reduction or withholding must be made in the amount and upon the procedure
116.20provided in this section, or, in the case of the violation stated in clause (1), upon the
116.21procedure provided in section 127A.43.

116.22    Sec. 5. Minnesota Statutes 2010, section 127A.43, is amended to read:
116.23127A.43 DISTRICT EMPLOYMENT OF UNLICENSED TEACHERS; AID
116.24REDUCTION.
116.25When a district employs one or more teachers who do not hold a valid teaching
116.26license, state aid shall be withheld reduced in the proportion that the number of such
116.27teachers is to the total number of teachers employed by the district, multiplied by 60
116.28percent of the basic revenue, as defined in section 126C.10, subdivision 2, of the district
116.29for the year in which the employment occurred.

116.30    Sec. 6. Minnesota Statutes 2010, section 127A.441, is amended to read:
116.31127A.441 AID REDUCTION; LEVY REVENUE RECOGNITION CHANGE.
116.32    (a) Each year, the state aids payable to any school district for that fiscal year that are
116.33recognized as revenue in the school district's general and community service funds shall
117.1be adjusted by an amount equal to (1) the amount the district recognized as revenue for the
117.2prior fiscal year pursuant to section 123B.75, subdivision 5, paragraph (a) or (b), minus (2)
117.3the amount the district recognized as revenue for the current fiscal year pursuant to section
117.4123B.75, subdivision 5 , paragraph (a) or (b). For purposes of making the aid adjustments
117.5under this section, the amount the district recognizes as revenue for either the prior fiscal
117.6year or the current fiscal year pursuant to section 123B.75, subdivision 5, paragraph (b),
117.7shall not include any amount levied pursuant to section 124D.86, subdivision 4, for school
117.8districts receiving revenue under sections 124D.86, subdivision 3, clauses (1), (2), and (3);
117.9126C.41, subdivisions 1, 2, and 3 , paragraphs (b), (c), and (d); 126C.43, subdivision 2;
117.10126C.457 ; and 126C.48, subdivision 6. Payment from the permanent school fund shall
117.11not be adjusted pursuant to this section.
117.12(b) The commissioner shall schedule the timing of the adjustments under paragraph
117.13(a) as close to the end of the fiscal year as possible.
117.14The school district shall be notified of the amount of the adjustment made to each
117.15payment pursuant to this section.
117.16EFFECTIVE DATE.This section is effective for fiscal year 2011 and later.

117.17    Sec. 7. Minnesota Statutes 2010, section 127A.45, subdivision 2, is amended to read:
117.18    Subd. 2. Definitions. (a) "Other district receipts" means payments by county
117.19treasurers pursuant to section 276.10, apportionments from the school endowment fund
117.20pursuant to section 127A.33, apportionments by the county auditor pursuant to section
117.21127A.34, subdivision 2 , and payments to school districts by the commissioner of revenue
117.22pursuant to chapter 298.
117.23(b) "Cumulative amount guaranteed" means the product of
117.24(1) the cumulative disbursement percentage shown in subdivision 3; times
117.25(2) the sum of
117.26(i) the current year aid payment percentage of the estimated aid and credit
117.27entitlements paid according to subdivision 13; plus
117.28(ii) 100 percent of the entitlements paid according to subdivisions 11 and 12; plus
117.29(iii) the other district receipts.
117.30(c) "Payment date" means the date on which state payments to districts are made
117.31by the electronic funds transfer method. If a payment date falls on a Saturday, a Sunday,
117.32or a weekday which is a legal holiday, the payment shall be made on the immediately
117.33preceding business day. The commissioner may make payments on dates other than
117.34those listed in subdivision 3, but only for portions of payments from any preceding
118.1payment dates which could not be processed by the electronic funds transfer method due
118.2to documented extenuating circumstances.
118.3(d) The current year aid payment percentage equals 73 in fiscal year 2010, and 70 in
118.4fiscal year 2011, and 90 60 in fiscal years 2012 and later.

118.5    Sec. 8. Minnesota Statutes 2010, section 127A.45, subdivision 3, is amended to read:
118.6    Subd. 3. Payment dates and percentages. (a) The commissioner shall pay to a
118.7district on the dates indicated an amount computed as follows: the cumulative amount
118.8guaranteed minus the sum of (1) the district's other district receipts through the current
118.9payment, and (2) the aid and credit payments through the immediately preceding payment.
118.10For purposes of this computation, the payment dates and the cumulative disbursement
118.11percentages are as follows:

118.12		Payment date	Percentage
118.13	Payment 1	July 15:	5.5
118.14	Payment 2	July 30:	8.0
118.15	Payment 3	August 15:	17.5
118.16	Payment 4	August 30:	20.0
118.17	Payment 5	September 15:	22.5
118.18	Payment 6	September 30:	25.0
118.19	Payment 7	October 15:	27.0
118.20	Payment 8	October 30:	30.0
118.21	Payment 9	November 15:	32.5
118.22	Payment 10	November 30:	36.5
118.23	Payment 11	December 15:	42.0
118.24	Payment 12	December 30:	45.0
118.25	Payment 13	January 15:	50.0
118.26	Payment 14	January 30:	54.0
118.27	Payment 15	February 15:	58.0
118.28	Payment 16	February 28:	63.0
118.29	Payment 17	March 15:	68.0
118.30	Payment 18	March 30:	74.0
118.31	Payment 19	April 15:	78.0
118.32	Payment 20	April 30:	85.0
118.33	Payment 21	May 15:	90.0
118.34	Payment 22	May 30:	95.0
118.35	Payment 23	June 20:	100.0

118.36(b) In addition to the amounts paid under paragraph (a), the commissioner shall pay
118.37to a school district on the dates indicated an amount computed as follows:

119.1 119.2	Payment 3	August 15: the final adjustment for the prior fiscal year for the state paid property tax credits established in section 273.1392
119.3 119.4	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
119.5 119.6	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
119.7 119.8	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

119.9(c) In addition to the amounts paid under paragraph (a), the commissioner shall pay
119.10to a charter school on the dates indicated an amount computed as follows:

119.11 119.12	Payment 1	July 15: 75 percent of the final adjustment for the prior fiscal year for all aid entitlements
119.13 119.14	Payment 8	October 30: 25 percent of the final adjustment for the prior fiscal year for all aid entitlements

119.15    Sec. 9. Minnesota Statutes 2010, section 127A.45, is amended by adding a subdivision
119.16to read:
119.17    Subd. 17. Payment to creditors. Except where otherwise specifically authorized,
119.18state education aid payments shall be made only to the school district, charter school, or
119.19other education organization earning state aid revenues as a result of providing education
119.20services.

119.21    Sec. 10. LEVY AID RECOGNITION TIMING.
119.22Notwithstanding Minnesota Statutes, section 127A.441, paragraph (b), the
119.23commissioner of education shall schedule the portion of the aid adjustment for fiscal year
119.242011 attributable to the exclusion of levy portions assumed by the state from the levy
119.25recognition calculation under Minnesota Statutes, section 123B.75, subdivision 5, to occur
119.26with the final payment for fiscal year 2011 made on October 30, 2011.

119.27    Sec. 11. FUND TRANSFER; FISCAL YEARS 2012 AND 2013 ONLY.
119.28(a) Notwithstanding Minnesota Statutes, section 123B.80, subdivision 3, for fiscal
119.29years 2012 and 2013 only, the commissioner must approve a request for a fund transfer
119.30if the transfer does not increase state aid obligations to the district or result in additional
119.31property tax authority for the district. This section does not permit transfers from the
119.32community service fund or the food service fund.
119.33(b) A school board may approve a fund transfer under paragraph (a) only after
119.34adopting a resolution stating the fund transfer will not diminish instructional opportunities
119.35for students.

120.1    Sec. 12. APPROPRIATIONS.
120.2    Subdivision 1. Department of Education. The sums indicated in this section are
120.3appropriated from the general fund to the Department of Education for the fiscal years
120.4designated.
120.5    Subd. 2. School lunch. For school lunch aid according to Minnesota Statutes,
120.6section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

120.7		$	12,626,000	.....	2012
120.8		$	12,878,000	.....	2013

120.9    Subd. 3. School breakfast. For traditional school breakfast aid under Minnesota
120.10Statutes, section 124D.1158:

120.11		$	4,759,000	.....	2012
120.12		$	4,875,000	.....	2013

120.13    Subd. 4. Kindergarten milk. For kindergarten milk aid under Minnesota Statutes,
120.14section 124D.118:

120.15		$	1,084,000	.....	2012
120.16		$	1,105,000	.....	2013

120.17    Subd. 5. Summer food service replacement aid. For summer food service
120.18replacement aid under Minnesota Statutes, section 124D.119:

120.19		$	150,000	.....	2012
120.20		$	150,000	.....	2013

120.21    Sec. 13. REPEALER.
120.22Minnesota Statutes 2010, section 127A.46, is repealed.


120.25    Section 1. Minnesota Statutes 2010, section 134.195, subdivision 8, is amended to read:
120.26    Subd. 8. Funding. The ordinance or resolution establishing the library shall
120.27provide for joint financing of the library by the school district and the city. The city shall
120.28provide at least the minimum dollar amount established in section 134.34, subdivision
120.291 . The school district shall provide money for staff and materials for the library at least
120.30in proportion to the use related to curriculum, as determined by the circulation statistics
120.31of the library. Neither the city nor the school district shall reduce the financial support
121.1provided for operation of library or media services below the level of support provided in
121.2the preceding year.
121.3EFFECTIVE DATE.This section is effective for revenue retroactive to fiscal
121.4year 2011 and later.

121.5    Sec. 2. APPROPRIATIONS.
121.6    Subdivision 1. Department of Education. The sums indicated in this section are
121.7appropriated from the general fund to the Department of Education for the fiscal years
121.8designated.
121.9    Subd. 2. Basic system support. For basic system support grants under Minnesota
121.10Statutes, section 134.355:

121.11		$	12,213,000	.....	2012
121.12		$	13,570,000	.....	2013

121.13The 2012 appropriation includes $4,071,000 for 2011 and $8,142,000 for 2012.
121.14The 2013 appropriation includes $5,428,000 for 2012 and $8,142,000 for 2013.
121.15    Subd. 3. Multicounty, multitype library systems. For grants under Minnesota
121.16Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:

121.17		$	1,170,000	.....	2012
121.18		$	1,300,000	.....	2013

121.19The 2012 appropriation includes $390,000 for 2011 and $780,000 for 2012.
121.20The 2013 appropriation includes $520,000 for 2012 and $780,000 for 2013.
121.21    Subd. 4. Electronic library for Minnesota. For statewide licenses to online
121.22databases selected in cooperation with the Minnesota Office of Higher Education for
121.23school media centers, public libraries, state government agency libraries, and public
121.24or private college or university libraries:

121.25		$	900,000	.....	2012
121.26		$	900,000	.....	2013

121.27Any balance in the first year does not cancel but is available in the second year.
121.28    Subd. 5. Regional library telecommunications aid. For regional library
121.29telecommunications aid under Minnesota Statutes, section 134.355:

121.30		$	2,070,000	.....	2012
121.31		$	2,300,000	.....	2013

121.32The 2012 appropriation includes $690,000 for 2011 and $1,380,000 for 2012.
122.1The 2013 appropriation includes $920,000 for 2012 and $1,380,000 for 2013.


122.4    Section 1. Minnesota Statutes 2010, section 119A.50, subdivision 3, is amended to read:
122.5    Subd. 3. Early childhood literacy programs. (a) A research-based early childhood
122.6literacy program premised on actively involved parents, ongoing professional staff
122.7development, and high quality early literacy program standards is established to increase
122.8the literacy skills of children participating in Head Start to prepare them to be successful
122.9readers and to increase families' participation in providing early literacy experiences to
122.10their children. Program providers must:
122.11    (1) work to prepare children to be successful learners;
122.12    (2) work to close the achievement gap for at-risk children;
122.13    (3) use an integrated approach to early literacy that daily offers a literacy-rich
122.14classroom learning environment composed of books, writing materials, writing centers,
122.15labels, rhyming, and other related literacy materials and opportunities;
122.16    (4) support children's home language while helping the children master English and
122.17use multiple literacy strategies to provide a cultural bridge between home and school;
122.18    (5) use literacy mentors, ongoing literacy groups, and other teachers and staff to
122.19provide appropriate, extensive professional development opportunities in early literacy
122.20and classroom strategies for preschool teachers and other preschool staff;
122.21    (6) use ongoing data-based assessments that enable preschool teachers to understand,
122.22plan, and implement literacy strategies, activities, and curriculum that meet children's
122.23literacy needs and continuously improve children's literacy; and
122.24    (7) foster participation by parents, community stakeholders, literacy advisors, and
122.25evaluation specialists.
122.26Program providers are encouraged to collaborate with qualified, community-based
122.27early childhood providers in implementing this program and to seek nonstate funds to
122.28supplement the program.
122.29    (b) Program providers under paragraph (a) interested in extending literacy programs
122.30to children in kindergarten through grade 3 may elect to form a partnership with an
122.31eligible organization under section 124D.38, subdivision 2, or 124D.42, subdivision 6,
122.32clause (3), schools enrolling children in kindergarten through grade 3, and other interested
122.33and qualified community-based entities to provide ongoing literacy programs that offer
122.34seamless literacy instruction focused on closing the literacy achievement gap. To close the
123.1literacy achievement gap by the end of third grade, partnership members must agree to use
123.2best efforts and practices and to work collaboratively to implement a seamless literacy
123.3model from age three to grade 3, consistent with paragraph (a). Literacy programs under
123.4this paragraph must collect and use literacy data to:
123.5    (1) evaluate children's literacy skills; and
123.6    (2) formulate specific intervention strategies to provide reading instruction to
123.7children premised on the outcomes of formative and summative assessments and
123.8research-based indicators of literacy development.
123.9    The literacy programs under this paragraph also must train teachers and other
123.10providers working with children to use the assessment outcomes under clause (2) to
123.11develop and use effective, long-term literacy coaching models that are specific to the
123.12program providers.
123.13    (c) The commissioner must collect and evaluate literacy data on children from age
123.14three to grade 3 who participate in literacy programs under this section to determine the
123.15efficacy of early literacy programs on children's success in developing the literacy skills
123.16that they need for long-term academic success and the programs' success in closing the
123.17literacy achievement gap. Annually by February 1, the commissioner must report to
123.18the education policy and finance committees of the legislature on the ongoing impact
123.19of these programs.

123.20    Sec. 2. APPROPRIATIONS.
123.21    Subdivision 1. Department of Education. The sums indicated in this section are
123.22appropriated from the general fund to the Department of Education for the fiscal years
123.23designated.
123.24    Subd. 2. School readiness. For revenue for school readiness programs under
123.25Minnesota Statutes, sections 124D.15 and 124D.16:

123.26		$	9,085,000	.....	2012
123.27		$	10,095,000	.....	2013

123.28The 2012 appropriation includes $3,028,000 for 2011 and $6,057,000 for 2012.
123.29The 2013 appropriation includes $4,038,000 for 2012 and $6,057,000 for 2013.
123.30    Subd. 3. Early childhood family education aid. For early childhood family
123.31education aid under Minnesota Statutes, section 124D.135:

123.32		$	20,191,000	.....	2012
123.33		$	22,977,000	.....	2013

123.34The 2012 appropriation includes $6,542,000 for 2011 and $13,649,000 for 2012.
124.1The 2013 appropriation includes $9,099,000 for 2012 and $13,878,000 for 2013.
124.2    Subd. 4. Health and developmental screening aid. For health and developmental
124.3screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

124.4		$	3,211,000	.....	2012
124.5		$	3,550,000	.....	2013

124.6The 2012 appropriation includes $1,066,000 for 2011 and $2,145,000 for 2012.
124.7The 2013 appropriation includes $1,429,000 for 2012 and $2,121,000 for 2013.
124.8    Subd. 5. Head Start program. For Head Start programs under Minnesota Statutes,
124.9section 119A.52:

124.10		$	20,100,000	.....	2012
124.11		$	20,100,000	.....	2013

124.12    Subd. 6. Educate parents partnership. For the educate parents partnership under
124.13Minnesota Statutes, section 124D.129:

124.14		$	49,000	.....	2012
124.15		$	49,000	.....	2013

124.16    Subd. 7. Kindergarten entrance assessment initiative and intervention
124.17program. For the kindergarten entrance assessment initiative and intervention program
124.18under Minnesota Statutes, section 124D.162:

124.19		$	281,000	.....	2012
124.20		$	281,000	.....	2013

124.21    Subd. 8. Early childhood education scholarships. For grants to early childhood
124.22education scholarships for public or private early childhood preschool programs for
124.23children ages 3 to 5:

124.24

$

4,000,000

.....

2013

124.25(a) All children whose parents or legal guardians meet the eligibility requirements
124.26of paragraph (b) established by the commissioner are eligible to receive early childhood
124.27education scholarships under this section.
124.28(b) A parent or legal guardian is eligible for an early childhood education scholarship
124.29if the parent or legal guardian:
124.30(1) has a child three or four years of age on September 1, beginning in calendar
124.31year 2012; and
124.32(2)(i) has income equal to or less than 47 percent of the state median income in the
124.33current calendar year; or
125.1(ii) can document their child's identification through another public funding
125.2eligibility process, including the Free and Reduced Price Lunch Program, National School
125.3Lunch Act, United States Code, title 42, section 1751, part 210; Head Start under federal
125.4Improving Head Start for School Readiness Act of 2007; Minnesota family investment
125.5program under chapter 256J; and child care assistance programs under chapter 119B.
125.6Each year, if this appropriation is insufficient to provide early childhood education
125.7scholarships to all eligible children, the Department of Education shall make scholarships
125.8available on a first-come, first-served basis.
125.9The commissioner of education shall submit a written report to the education
125.10committees of the legislature by January 15, 2012, describing its plan for implementation
125.11of scholarships under this subdivision for the 2012-2013 school year.
125.12Any balance in the first year does not cancel but is available in the second year.
125.13The base for this program is $2,000,000 each year.


125.16    Section 1. Minnesota Statutes 2010, section 124D.19, subdivision 3, is amended to
125.17read:
125.18    Subd. 3. Community education director. (a) Except as provided under paragraphs
125.19(b) and (c), each board shall employ a licensed community education director. The board
125.20shall submit the name of the person who is serving as director of community education
125.21under this section on the district's annual community education report to the commissioner.
125.22(b) A board may apply to the Minnesota Board of School Administrators under
125.23Minnesota Rules, part 3512.3500, subpart 9, for authority to use an individual who is not
125.24licensed as a community education director.
125.25(c) A board of a district with a total population of 2,000 6,000 or less may identify
125.26an employee who holds a valid Minnesota principal or superintendent license under
125.27Minnesota Rules, chapter 3512, to serve as director of community education. To be
125.28eligible for an exception under this paragraph, the board shall certify in writing to the
125.29commissioner that the district has not placed a licensed director of community education
125.30on unrequested leave. A principal serving as a community education director under this
125.31paragraph on June 1, 2011, may continue to serve in that capacity.

125.32    Sec. 2. APPROPRIATION.
126.1    Subdivision 1. Department of Education. The sums indicated in this section are
126.2appropriated from the general fund to the Department of Education for the fiscal years
126.3designated.
126.4    Subd. 2. Community education aid. For community education aid under
126.5Minnesota Statutes, section 124D.20:

126.6		$	429,000	.....	2012
126.7		$	665,000	.....	2013

126.8The 2012 appropriation includes $134,000 for 2011 and $295,000 for 2012.
126.9The 2013 appropriation includes $196,000 for 2012 and $469,000 for 2013.
126.10    Subd. 3. Adults with disabilities program aid. For adults with disabilities
126.11programs under Minnesota Statutes, section 124D.56:

126.12		$	639,000	.....	2012
126.13		$	710,000	.....	2013

126.14The 2012 appropriation includes $213,000 for 2011 and $426,000 for 2012.
126.15The 2013 appropriation includes $284,000 for 2012 and $426,000 for 2013.
126.16    Subd. 4. Hearing-impaired adults. For programs for hearing-impaired adults
126.17under Minnesota Statutes, section 124D.57:

126.18		$	70,000	.....	2012
126.19		$	70,000	.....	2013

126.20    Subd. 5. School-age care revenue. For extended day aid under Minnesota Statutes,
126.21section 124D.22:

126.22		$	1,000	.....	2012
126.23		$	1,000	.....	2013

126.24The 2012 appropriation includes $0 for 2011 and $1,000 for 2012.
126.25The 2013 appropriation includes $0 for 2012 and $1,000 for 2013.


126.28    Section 1. Minnesota Statutes 2010, section 124D.531, subdivision 1, is amended to
126.29read:
126.30    Subdivision 1. State total adult basic education aid. (a) The state total adult basic
126.31education aid for fiscal year 2005 is $36,509,000. The state total adult basic education
126.32aid for fiscal year 2006 equals $36,587,000 plus any amount that is not paid for during
127.1the previous fiscal year, as a result of adjustments under subdivision 4, paragraph (a), or
127.2section 124D.52, subdivision 3. The state total adult basic education aid for fiscal year
127.32007 equals $37,673,000 plus any amount that is not paid for during the previous fiscal
127.4year, as a result of adjustments under subdivision 4, paragraph (a), or section 124D.52,
127.5subdivision 3 . The state total adult basic education aid for fiscal year 2008 2011 equals
127.6$40,650,000 $44,419,000, plus any amount that is not paid during the previous fiscal
127.7year as a result of adjustments under subdivision 4, paragraph (a), or section 124D.52,
127.8subdivision 3 . The state total adult basic education aid for later fiscal years equals:
127.9    (1) the state total adult basic education aid for the preceding fiscal year plus any
127.10amount that is not paid for during the previous fiscal year, as a result of adjustments under
127.11subdivision 4, paragraph (a), or section 124D.52, subdivision 3; times
127.12    (2) the lesser of:
127.13    (i) 1.03 1.02; or
127.14    (ii) the average growth in state total contact hours over the prior ten program years.
127.15    Beginning in fiscal year 2002, two percent of the state total adult basic education
127.16aid must be set aside for adult basic education supplemental service grants under section
127.17124D.522 .
127.18    (b) The state total adult basic education aid, excluding basic population aid, equals
127.19the difference between the amount computed in paragraph (a), and the state total basic
127.20population aid under subdivision 2.
127.21EFFECTIVE DATE.This section is effective for revenue for fiscal year 2012
127.22and later.

127.23    Sec. 2. Minnesota Statutes 2010, section 124D.531, subdivision 4, is amended to read:
127.24    Subd. 4. Adult basic education program aid limit. (a) Notwithstanding
127.25subdivisions 2 and 3, the total adult basic education aid for a program per prior year
127.26contact hour must not exceed $22 per prior year contact hour computed under subdivision
127.273, clause (2).
127.28    (b) For fiscal year 2006 and fiscal year 2007, the aid for a program under subdivision
127.293, clause (2), adjusted for changes in program membership, must not exceed the aid for
127.30that program under subdivision 3, clause (2), for the first preceding fiscal year by more
127.31than the greater of eight percent or $10,000.
127.32    (c) For fiscal year 2008, the aid for a program under subdivision 3, clause (2),
127.33adjusted for changes in program membership, shall not be limited.
127.34    (d) For fiscal year 2009 and later, The aid for a program under subdivision 3,
127.35clause (2), adjusted for changes in program membership, must not exceed the aid for
128.1that program under subdivision 3, clause (2), for the first preceding fiscal year by more
128.2than the greater of 11 percent or $10,000.
128.3    (e) (c) Adult basic education aid is payable to a program for unreimbursed costs
128.4occurring in the program year as defined in section 124D.52, subdivision 3.
128.5    (f) (d) Any adult basic education aid that is not paid to a program because of the
128.6program aid limitation under paragraph (a) must be added to the state total adult basic
128.7education aid for the next fiscal year under subdivision 1. Any adult basic education aid
128.8that is not paid to a program because of the program aid limitations under paragraph
128.9(b), (c), or (d), must be reallocated among programs by adjusting the rate per contact hour
128.10under subdivision 3, clause (2).

128.11    Sec. 3. APPROPRIATIONS.
128.12    Subdivision 1. Department of Education. The sums indicated in this section are
128.13appropriated from the general fund to the Department of Education for the fiscal years
128.14designated.
128.15    Subd. 2. Adult basic education aid. For adult basic education aid under Minnesota
128.16Statutes, section 124D.531:

128.17		$	40,545,000	.....	2012
128.18		$	45,842,000	.....	2013

128.19The 2012 appropriation includes $13,365,000 for 2011 and $27,180,000 for 2012.
128.20The 2013 appropriation includes $18,119,000 for 2012 and $27,723,000 for 2013.
128.21    Subd. 3. GED tests. For payment of 60 percent of the costs of GED tests under
128.22Minnesota Statutes, section 124D.55:

128.23		$	125,000	.....	2012
128.24		$	125,000	.....	2013

128.27    Section 1. Minnesota Statutes 2010, section 123B.88, subdivision 13, is amended to
128.28read:
128.29    Subd. 13. Area learning center pupils between buildings. Districts may provide
128.30between-building bus transportation along school bus routes when space is available, for
128.31pupils attending programs at an area learning center. The transportation is only permitted
128.32between schools and if it does not increase the district's expenditures for transportation.
129.1The cost of these services shall be considered part of the authorized cost for nonregular
129.2transportation for the purpose of section 123B.92.

129.3    Sec. 2. Minnesota Statutes 2010, section 123B.92, subdivision 1, is amended to read:
129.4    Subdivision 1. Definitions. For purposes of this section and section 125A.76, the
129.5terms defined in this subdivision have the meanings given to them.
129.6    (a) "Actual expenditure per pupil transported in the regular and excess transportation
129.7categories" means the quotient obtained by dividing:
129.8    (1) the sum of:
129.9    (i) all expenditures for transportation in the regular category, as defined in paragraph
129.10(b), clause (1), and the excess category, as defined in paragraph (b), clause (2), plus
129.11    (ii) an amount equal to one year's depreciation on the district's school bus fleet
129.12and mobile units computed on a straight line basis at the rate of 15 percent per year for
129.13districts operating a program under section 124D.128 for grades 1 to 12 for all students in
129.14the district and 12-1/2 percent per year for other districts of the cost of the fleet, plus
129.15    (iii) an amount equal to one year's depreciation on the district's type III vehicles, as
129.16defined in section 169.011, subdivision 71, which must be used a majority of the time for
129.17pupil transportation purposes, computed on a straight line basis at the rate of 20 percent
129.18per year of the cost of the type three school buses by:
129.19    (2) the number of pupils eligible for transportation in the regular category, as defined
129.20in paragraph (b), clause (1), and the excess category, as defined in paragraph (b), clause (2).
129.21    (b) "Transportation category" means a category of transportation service provided to
129.22pupils as follows:
129.23    (1) Regular transportation is:
129.24    (i) transportation to and from school during the regular school year for resident
129.25elementary pupils residing one mile or more from the public or nonpublic school they
129.26attend, and resident secondary pupils residing two miles or more from the public
129.27or nonpublic school they attend, excluding desegregation transportation and noon
129.28kindergarten transportation; but with respect to transportation of pupils to and from
129.29nonpublic schools, only to the extent permitted by sections 123B.84 to 123B.87;
129.30    (ii) transportation of resident pupils to and from language immersion programs;
129.31    (iii) transportation of a pupil who is a custodial parent and that pupil's child between
129.32the pupil's home and the child care provider and between the provider and the school, if
129.33the home and provider are within the attendance area of the school;
129.34    (iv) transportation to and from or board and lodging in another district, of resident
129.35pupils of a district without a secondary school; and
130.1    (v) transportation to and from school during the regular school year required under
130.2subdivision 3 for nonresident elementary pupils when the distance from the attendance
130.3area border to the public school is one mile or more, and for nonresident secondary pupils
130.4when the distance from the attendance area border to the public school is two miles or
130.5more, excluding desegregation transportation and noon kindergarten transportation.
130.6    For the purposes of this paragraph, a district may designate a licensed day care
130.7facility, school day care facility, respite care facility, the residence of a relative, or the
130.8residence of a person chosen by the pupil's parent or guardian, or an after-school program
130.9for children operated by a political subdivision of the state, as the home of a pupil for
130.10part or all of the day, if requested by the pupil's parent or guardian, and if that facility,
130.11residence, or program is within the attendance area of the school the pupil attends.
130.12    (2) Excess transportation is:
130.13    (i) transportation to and from school during the regular school year for resident
130.14secondary pupils residing at least one mile but less than two miles from the public or
130.15nonpublic school they attend, and transportation to and from school for resident pupils
130.16residing less than one mile from school who are transported because of extraordinary
130.17traffic, drug, or crime hazards; and
130.18    (ii) transportation to and from school during the regular school year required under
130.19subdivision 3 for nonresident secondary pupils when the distance from the attendance area
130.20border to the school is at least one mile but less than two miles from the public school
130.21they attend, and for nonresident pupils when the distance from the attendance area border
130.22to the school is less than one mile from the school and who are transported because of
130.23extraordinary traffic, drug, or crime hazards.
130.24    (3) Desegregation transportation is transportation within and outside of the district
130.25during the regular school year of pupils to and from schools located outside their normal
130.26attendance areas under a plan for desegregation mandated by the commissioner or under
130.27court order.
130.28    (4) "Transportation services for pupils with disabilities" is:
130.29    (i) transportation of pupils with disabilities who cannot be transported on a regular
130.30school bus between home or a respite care facility and school;
130.31    (ii) necessary transportation of pupils with disabilities from home or from school to
130.32other buildings, including centers such as developmental achievement centers, hospitals,
130.33and treatment centers where special instruction or services required by sections 125A.03
130.34to 125A.24, 125A.26 to 125A.48, and 125A.65 are provided, within or outside the district
130.35where services are provided;
131.1    (iii) necessary transportation for resident pupils with disabilities required by sections
131.2125A.12 , and 125A.26 to 125A.48;
131.3    (iv) board and lodging for pupils with disabilities in a district maintaining special
131.4classes;
131.5    (v) transportation from one educational facility to another within the district for
131.6resident pupils enrolled on a shared-time basis in educational programs, and necessary
131.7transportation required by sections 125A.18, and 125A.26 to 125A.48, for resident pupils
131.8with disabilities who are provided special instruction and services on a shared-time basis
131.9or if resident pupils are not transported, the costs of necessary travel between public
131.10and private schools or neutral instructional sites by essential personnel employed by the
131.11district's program for children with a disability;
131.12    (vi) transportation for resident pupils with disabilities to and from board and lodging
131.13facilities when the pupil is boarded and lodged for educational purposes; and
131.14(vii) transportation of pupils for a curricular field trip activity on a school bus
131.15equipped with a power lift when the power lift is required by a student's disability or
131.16section 504 plan; and
131.17(viii) services described in clauses (i) to (vi) (vii), when provided for pupils with
131.18disabilities in conjunction with a summer instructional program that relates to the pupil's
131.19individual education plan or in conjunction with a learning year program established
131.20under section 124D.128.
131.21    For purposes of computing special education initial aid under section 125A.76,
131.22subdivision 2 , the cost of providing transportation for children with disabilities includes
131.23(A) the additional cost of transporting a homeless student from a temporary nonshelter
131.24home in another district to the school of origin, or a formerly homeless student from a
131.25permanent home in another district to the school of origin but only through the end of the
131.26academic year; and (B) depreciation on district-owned school buses purchased after July 1,
131.272005, and used primarily for transportation of pupils with disabilities, calculated according
131.28to paragraph (a), clauses (ii) and (iii). Depreciation costs included in the disabled
131.29transportation category must be excluded in calculating the actual expenditure per pupil
131.30transported in the regular and excess transportation categories according to paragraph (a).
131.31    (5) "Nonpublic nonregular transportation" is:
131.32    (i) transportation from one educational facility to another within the district for
131.33resident pupils enrolled on a shared-time basis in educational programs, excluding
131.34transportation for nonpublic pupils with disabilities under clause (4);
132.1    (ii) transportation within district boundaries between a nonpublic school and a
132.2public school or a neutral site for nonpublic school pupils who are provided pupil support
132.3services pursuant to section 123B.44; and
132.4    (iii) late transportation home from school or between schools within a district for
132.5nonpublic school pupils involved in after-school activities.
132.6    (c) "Mobile unit" means a vehicle or trailer designed to provide facilities for
132.7educational programs and services, including diagnostic testing, guidance and counseling
132.8services, and health services. A mobile unit located off nonpublic school premises is a
132.9neutral site as defined in section 123B.41, subdivision 13.
132.10EFFECTIVE DATE.This section is effective for revenue for fiscal year 2012
132.11and later.

132.12    Sec. 3. Minnesota Statutes 2010, section 123B.92, subdivision 5, is amended to read:
132.13    Subd. 5. District reports. (a) Each district must report data to the department as
132.14required by the department to account for transportation expenditures.
132.15(b) Salaries and fringe benefits of district employees whose primary duties are
132.16other than transportation, including central office administrators and staff, building
132.17administrators and staff, teachers, social workers, school nurses, and instructional aides,
132.18must not be included in a district's transportation expenditures, except that a district may
132.19include salaries and benefits according to paragraph (c) for (1) an employee designated
132.20as the district transportation director, (2) an employee providing direct support to the
132.21transportation director, or (3) an employee providing direct transportation services such as
132.22a bus driver or bus aide.
132.23(c) Salaries and fringe benefits of the district employees listed in paragraph (b),
132.24clauses (1), (2), and (3), who work part time in transportation and part time in other areas
132.25must not be included in a district's transportation expenditures unless the district maintains
132.26documentation of the employee's time spent on pupil transportation matters in the form
132.27and manner prescribed by the department.
132.28(d) Pupil transportation expenditures, excluding expenditures for capital outlay,
132.29leased buses, student board and lodging, crossing guards, and aides on buses, must be
132.30allocated among transportation categories based on cost-per-mile, or cost-per-student,
132.31cost-per-hour, or cost-per-route, regardless of whether the transportation services are
132.32provided on district-owned or contractor-owned school buses. Expenditures for school
132.33bus driver salaries and fringe benefits may either be directly charged to the appropriate
132.34transportation category or may be allocated among transportation categories based
132.35on cost-per-mile, or cost-per-student, cost-per-hour, or cost-per-route. Expenditures
133.1by private contractors or individuals who provide transportation exclusively in one
133.2transportation category must be charged directly to the appropriate transportation category.
133.3Transportation services provided by contractor-owned school bus companies incorporated
133.4under different names but owned by the same individual or group of individuals must be
133.5treated as the same company for cost allocation purposes.
133.6(e) Notwithstanding paragraph (d), districts contracting for transportation services
133.7are exempt from the standard cost allocation method for authorized and nonauthorized
133.8transportation categories if the district: (1) bids its contracts separately for authorized
133.9and nonauthorized transportation categories and for special transportation separate from
133.10regular and excess transportation; (2) receives bids or quotes from more than one vendor
133.11for these transportation categories; and (3) the district's cost-per-mile does not vary
133.12more than ten percent among categories, excluding salaries and fringe benefits of bus
133.13aides. If the costs reported by the district for contractor-owned operations vary by more
133.14than ten percent among categories, the department shall require the district to reallocate
133.15its transportation costs, excluding salaries and fringe benefits of bus aides, among all
133.16categories.


133.19    Section 1. APPROPRIATIONS; DEPARTMENT OF EDUCATION.
133.20    Subdivision 1. Department of Education. Unless otherwise indicated, the sums
133.21indicated in this section are appropriated from the general fund to the Department of
133.22Education for the fiscal years designated.
133.23    Subd. 2. Department. (a) For the Department of Education:

133.24		$	18,820,000	.....	2012
133.25		$	18,820,000	.....	2013

133.26Any balance in the first year does not cancel but is available in the second year.
133.27(b) $260,000 each year is for the Minnesota Children's Museum.
133.28(c) $41,000 each year is for the Minnesota Academy of Science.
133.29(d) $50,000 each year is for the Duluth Children's Museum.
133.30(e) $618,000 each year is for the Board of Teaching. Any balance in the first year
133.31does not cancel but is available in the second year.
133.32(f) $167,000 each year is for the Board of School Administrators. Any balance in
133.33the first year does not cancel but is available in the second year.
134.1(g) The expenditures of federal grants and aids as shown in the biennial budget
134.2document and its supplements are approved and appropriated and shall be spent as
134.3indicated.
134.4(h) None of the amounts appropriated under this subdivision may be used for
134.5Minnesota's Washington, D.C. office.
134.6    Subd. 3. Board of Teaching; licensure by portfolio. For the Board of Teaching
134.7for licensure by portfolio:

134.8		$	30,000	.....	2012
134.9		$	30,000	.....	2013

134.10This appropriation is from the educator licensure portfolio account of the special
134.11revenue fund.

134.12    Sec. 2. APPROPRIATIONS; MINNESOTA STATE ACADEMIES.
134.13The sums indicated in this section are appropriated from the general fund to the
134.14Minnesota State Academies for the Deaf and Blind for the fiscal years designated:

134.15		$	11,603,000	.....	2012
134.16		$	11,603,000	.....	2013

134.17Any balance in the first year does not cancel but is available in the second year.

134.18    Sec. 3. APPROPRIATIONS; PERPICH CENTER FOR ARTS EDUCATION.
134.19The sums in this section are appropriated from the general fund to the Perpich
134.20Center for Arts Education for the fiscal years designated:

134.21		$	6,733,000	.....	2012
134.22		$	6,733,000	.....	2013

134.23Any balance in the first year does not cancel, but is available in the second year.


134.27    Section 1. Laws 2009, chapter 96, article 1, section 24, subdivision 2, as amended by
134.28Laws 2010, First Special Session chapter 1, article 3, section 10, is amended to read:
134.29    Subd. 2. General education aid. For general education aid under Minnesota
134.30Statutes, section 126C.13, subdivision 4:

135.1		$	4,291,422,000	.....	2010
135.2 135.3		$	4,776,884,000 4,832,264,000	.....	2011

135.4The 2010 appropriation includes $553,591,000 for 2009 and $3,737,831,000 for
135.52010.
135.6The 2011 appropriation includes $1,363,306,000 for 2010 and $3,413,578,000
135.7$3,468,958,000 for 2011.

135.8    Sec. 2. Laws 2009, chapter 96, article 1, section 24, subdivision 3, is amended to read:
135.9    Subd. 3. Enrollment options transportation. For transportation of pupils attending
135.10postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation
135.11of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

135.12		$	48,000	.....	2010
135.13 135.14		$	52,000 29,000	.....	2011

135.15    Sec. 3. Laws 2009, chapter 96, article 1, section 24, subdivision 4, as amended by
135.16Laws 2010, First Special Session chapter 1, article 4, section 2, is amended to read:
135.17    Subd. 4. Abatement revenue. For abatement aid under Minnesota Statutes, section
135.18127A.49 :

135.19		$	1,000,000	.....	2010
135.20 135.21		$	1,132,000 1,127,000	.....	2011

135.22The 2010 appropriation includes $140,000 for 2009 and $860,000 for 2010.
135.23The 2011 appropriation includes $317,000 for 2010 and $815,000 $810,000 for 2011.

135.24    Sec. 4. Laws 2009, chapter 96, article 1, section 24, subdivision 5, as amended by
135.25Laws 2010, First Special Session chapter 1, article 4, section 3, is amended to read:
135.26    Subd. 5. Consolidation transition. For districts consolidating under Minnesota
135.27Statutes, section 123A.485:

135.28		$	684,000	.....	2010
135.29 135.30		$	576,000 593,000	.....	2011

135.31The 2010 appropriation includes $0 for 2009 and $684,000 for 2010.
135.32The 2011 appropriation includes $252,000 for 2010 and $324,000 $341,000 for 2011.

136.1    Sec. 5. Laws 2009, chapter 96, article 1, section 24, subdivision 6, as amended by
136.2Laws 2010, First Special Session chapter 1, article 4, section 4, is amended to read:
136.3    Subd. 6. Nonpublic pupil education aid. For nonpublic pupil education aid under
136.4Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:

136.5		$	12,861,000	.....	2010
136.6 136.7		$	16,157,000 16,213,000	.....	2011

136.8The 2010 appropriation includes $1,067,000 for 2009 and $11,794,000 for 2010.
136.9The 2011 appropriation includes $4,362,000 for 2010 and $11,795,000 $11,851,000
136.10for 2011.

136.11    Sec. 6. Laws 2009, chapter 96, article 1, section 24, subdivision 7, as amended by
136.12Laws 2010, First Special Session chapter 1, article 4, section 5, is amended to read:
136.13    Subd. 7. Nonpublic pupil transportation. For nonpublic pupil transportation aid
136.14under Minnesota Statutes, section 123B.92, subdivision 9:

136.15		$	17,297,000	.....	2010
136.16 136.17		$	19,729,000 19,387,000	.....	2011

136.18The 2010 appropriation includes $2,077,000 for 2009 and $15,220,000 for 2010.
136.19The 2011 appropriation includes $5,629,000 for 2010 and $14,100,000 $13,758,000
136.20for 2011.

136.22    Sec. 7. Laws 2009, chapter 96, article 2, section 67, subdivision 2, as amended by
136.23Laws 2010, First Special Session chapter 1, article 4, section 6, is amended to read:
136.24    Subd. 2. Charter school building lease aid. For building lease aid under Minnesota
136.25Statutes, section 124D.11, subdivision 4:

136.26		$	34,833,000	.....	2010
136.27 136.28		$	44,938,000 42,633,000	.....	2011

136.29The 2010 appropriation includes $3,704,000 for 2009 and $31,129,000 for 2010.
136.30The 2011 appropriation includes $11,513,000 for 2010 and $33,425,000 $31,120,000
136.31for 2011.

136.32    Sec. 8. Laws 2009, chapter 96, article 2, section 67, subdivision 3, as amended by
136.33Laws 2010, First Special Session chapter 1, article 4, section 7, is amended to read:
137.1    Subd. 3. Charter school startup aid. For charter school startup cost aid under
137.2Minnesota Statutes, section 124D.11:

137.3		$	1,218,000	.....	2010
137.4 137.5		$	743,000 654,000	.....	2011

137.6The 2010 appropriation includes $202,000 for 2009 and $1,016,000 for 2010.
137.7The 2011 appropriation includes $375,000 for 2010 and $368,000 $279,000 for 2011.

137.8    Sec. 9. Laws 2009, chapter 96, article 2, section 67, subdivision 4, as amended by
137.9Laws 2010, First Special Session chapter 1, article 4, section 8, is amended to read:
137.10    Subd. 4. Integration aid. For integration aid under Minnesota Statutes, section
137.11124D.86, subdivision 5 :

137.12		$	50,812,000	.....	2010
137.13 137.14		$	61,782,000 61,604,000	.....	2011

137.15The 2010 appropriation includes $5,832,000 for 2009 and $44,980,000 for 2010.
137.16The 2011 appropriation includes $16,636,000 for 2010 and $45,146,000 $44,968,000
137.17for 2011.

137.18    Sec. 10. Laws 2009, chapter 96, article 2, section 67, subdivision 6, is amended to read:
137.19    Subd. 6. Interdistrict desegregation or integration transportation grants. For
137.20interdistrict desegregation or integration transportation grants under Minnesota Statutes,
137.21section 124D.87:

137.22		$	14,468,000	.....	2010
137.23 137.24		$	17,582,000 13,393,000	.....	2011

137.25    Sec. 11. Laws 2009, chapter 96, article 2, section 67, subdivision 9, as amended by
137.26Laws 2010, First Special Session chapter 1, article 4, section 10, is amended to read:
137.27    Subd. 9. Tribal contract schools. For tribal contract school aid under Minnesota
137.28Statutes, section 124D.83:

137.29		$	1,702,000	.....	2010
137.30 137.31		$	2,119,000 1,958,000	.....	2011

137.32The 2010 appropriation includes $191,000 for 2009 and $1,511,000 for 2010.
137.33The 2011 appropriation includes $558,000 for 2010 and $1,561,000 $1,400,000
137.34for 2011.

138.2    Sec. 12. Laws 2009, chapter 96, article 3, section 21, subdivision 3, is amended to read:
138.3    Subd. 3. Aid for children with disabilities. For aid under Minnesota Statutes,
138.4section 125A.75, subdivision 3, for children with disabilities placed in residential facilities
138.5within the district boundaries for whom no district of residence can be determined:

138.6		$	1,717,000	.....	2010
138.7 138.8		$	1,895,000 1,554,000	.....	2011

138.9If the appropriation for either year is insufficient, the appropriation for the other
138.10year is available.

138.11    Sec. 13. Laws 2009, chapter 96, article 3, section 21, subdivision 4, as amended by
138.12Laws 2010, First Special Session chapter 1, article 4, section 12, is amended to read:
138.13    Subd. 4. Travel for home-based services. For aid for teacher travel for home-based
138.14services under Minnesota Statutes, section 125A.75, subdivision 1:

138.15		$	224,000	.....	2010
138.16 138.17		$	282,000 324,000	.....	2011

138.18The 2010 appropriation includes $24,000 for 2009 and $200,000 for 2010.
138.19The 2011 appropriation includes $73,000 for 2010 and $209,000 $251,000 for 2011.

138.21    Sec. 14. Laws 2009, chapter 96, article 4, section 12, subdivision 6, as amended by
138.22Laws 2010, First Special Session chapter 1, article 4, section 17, is amended to read:
138.23    Subd. 6. Deferred maintenance aid. For deferred maintenance aid, according to
138.24Minnesota Statutes, section 123B.591, subdivision 4:

138.25		$	1,918,000	.....	2010
138.26 138.27		$	2,146,000 2,191,000	.....	2011

138.28The 2010 appropriation includes $260,000 for 2009 and $1,658,000 for 2010.
138.29The 2011 appropriation includes $613,000 for 2010 and $1,533,000 $1,578,000
138.30for 2011.

138.32    Sec. 15. Laws 2009, chapter 96, article 5, section 13, subdivision 2, is amended to read:
139.1    Subd. 2. School lunch. For school lunch aid according to Minnesota Statutes,
139.2section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

139.3		$	12,688,000	.....	2010
139.4 139.5		$	13,069,000 12,378,000	.....	2011

139.6    Sec. 16. Laws 2009, chapter 96, article 5, section 13, subdivision 3, is amended to read:
139.7    Subd. 3. School breakfast. For traditional school breakfast aid under Minnesota
139.8Statutes, section 124D.1158:

139.9		$	4,978,000	.....	2010
139.10 139.11		$	5,147,000 4,646,000	.....	2011

139.12    Sec. 17. Laws 2009, chapter 96, article 5, section 13, subdivision 4, as amended by
139.13Laws 2010, First Special Session chapter 1, article 4, section 18, is amended to read:
139.14    Subd. 4. Kindergarten milk. For kindergarten milk aid under Minnesota Statutes,
139.15section 124D.118:

139.16		$	1,104,000	.....	2010
139.17 139.18		$	1,126,000 1,063,000	.....	2011

139.21    Sec. 18. Laws 2009, chapter 96, article 6, section 11, subdivision 3, as amended by
139.22Laws 2010, First Special Session chapter 1, article 4, section 23, is amended to read:
139.23    Subd. 3. Early childhood family education aid. For early childhood family
139.24education aid under Minnesota Statutes, section 124D.135:

139.25		$	19,005,000	.....	2010
139.26 139.27		$	21,460,000 21,177,000	.....	2011

139.28The 2010 appropriation includes $3,020,000 for 2009 and $15,985,000 for 2010.
139.29The 2011 appropriation includes $5,911,000 for 2010 and $15,549,000 $15,266,000
139.30for 2011.

139.31    Sec. 19. Laws 2009, chapter 96, article 6, section 11, subdivision 4, as amended by
139.32Laws 2010, First Special Session chapter 1, article 4, section 24, is amended to read:
140.1    Subd. 4. Health and developmental screening aid. For health and developmental
140.2screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

140.3		$	2,922,000	.....	2010
140.4 140.5		$	3,425,000 3,434,000	.....	2011

140.6The 2010 appropriation includes $367,000 for 2009 and $2,555,000 for 2010.
140.7The 2011 appropriation includes $945,000 for 2010 and $2,480,000 $2,489,000
140.8for 2011.

140.9    Sec. 20. Laws 2009, chapter 96, article 6, section 11, subdivision 8, as amended by
140.10Laws 2010, First Special Session chapter 1, article 4, section 25, is amended to read:
140.11    Subd. 8. Community education aid. For community education aid under
140.12Minnesota Statutes, section 124D.20:

140.13		$	476,000	.....	2010
140.14 140.15		$	473,000 463,000	.....	2011

140.16The 2010 appropriation includes $73,000 for 2009 and $403,000 for 2010.
140.17The 2011 appropriation included $148,000 for 2010 and $325,000 $315,000 for
140.182011.

140.19    Sec. 21. Laws 2009, chapter 96, article 6, section 11, subdivision 12, as amended by
140.20Laws 2010, First Special Session chapter 1, article 4, section 27, is amended to read:
140.21    Subd. 12. Adult basic education aid. For adult basic education aid under
140.22Minnesota Statutes, section 124D.531:

140.23		$	35,671,000	.....	2010
140.24 140.25		$	42,732,000 42,829,000	.....	2011

140.26The 2010 appropriation includes $4,187,000 for 2009 and $31,484,000 for 2010.
140.27The 2011 appropriation includes $11,644,000 for 2010 and $31,088,000 $31,185,000
140.28for 2011.


140.31    Section 1. EFFECTIVE DATE; RELATIONSHIP TO OTHER
140.32APPROPRIATIONS.
141.1Unless otherwise specified, this act is effective retroactively from July 1, 2011,
141.2and supersedes and replaces funding authorized by order of the Second Judicial District
141.3Court in Case No. 62-CV-11-5203.