HF 2949

Conference Committee Report - 87th Legislature (2011 - 2012) Posted on 04/20/2012 04:40pm

1.1CONFERENCE COMMITTEE REPORT ON H. F. No. 2949

1.2A bill for an act

1.3relating to education; modifying certain early childhood and kindergarten through
1.4grade 12 policy and finance provisions; requiring reports; appropriating money;
1.5amending Minnesota Statutes 2010, sections 120B.13, subdivision 4; 124D.09,
1.6subdivisions 9, 10, 12, 24; 135A.101, subdivision 1; 471.975; Minnesota Statutes
1.72011 Supplement, sections 120B.07; 120B.08; 120B.09; 120B.36, subdivision 1;
1.8124D.09, subdivision 5; 126C.126; 126C.40, subdivision 1; Laws 2011, First
1.9Special Session chapter 11, article 5, section 11; article 7, section 2, subdivision
1.108; repealing Minnesota Statutes 2010, section 124D.09, subdivision 23.
1.11April 20, 2012
1.12The Honorable Kurt Zellers
1.13Speaker of the House of Representatives
1.14The Honorable Michelle L. Fischbach
1.15President of the Senate
1.16We, the undersigned conferees for H. F. No. 2949 report that we have agreed upon
1.17the items in dispute and recommend as follows:
1.18That the Senate recede from its amendments and that H. F. No. 2949 be further
1.19amended as follows:
1.20Delete everything after the enacting clause and insert:

1.21"ARTICLE 1

1.22GENERAL EDUCATION

1.23    Section 1. Minnesota Statutes 2010, section 120A.20, subdivision 2, is amended to
1.24read:
1.25    Subd. 2. Education and, residence, and transportation of homeless. (a)
1.26Notwithstanding subdivision 1, a district must not deny free admission to a homeless
1.27person of school age pupil solely because the district cannot determine that the person
1.28pupil is a resident of the district.
1.29(b) The school district of residence for a homeless person of school age pupil
1.30shall be the school district in which the homeless shelter or other program, center, or
2.1facility assisting the homeless person is located. The educational services a school
2.2district provides to a homeless person must allow the person to work toward meeting the
2.3graduation standards under section 120B.02. parent or legal guardian resides, unless: (1)
2.4parental rights have been terminated by court order; (2) the parent or guardian is not
2.5living within the state; or (3) the parent or guardian having legal custody of the child is
2.6an inmate of a Minnesota correctional facility or is a resident of a halfway house under
2.7the supervision of the commissioner of corrections. If any of clauses (1) to (3) apply, the
2.8school district of residence shall be the school district in which the pupil resided when the
2.9qualifying event occurred. If no other district of residence can be established, the school
2.10district of residence shall be the school district in which the pupil currently resides. If
2.11there is a dispute between school districts regarding residency, the district of residence is
2.12the district designated by the commissioner of education.
2.13(c) The serving district is responsible for transporting a homeless pupil to and from
2.14the pupil's district of residence. The district may transport from a permanent home in
2.15another district but only through the end of the academic school year. When a pupil is
2.16enrolled in a charter school, the district or school that provides transportation for other
2.17pupils enrolled in the charter school is responsible for providing transportation. When a
2.18homeless student with or without an individualized education program attends a public
2.19school other than an independent or special school district or charter school, the district of
2.20residence is responsible for transportation.

2.21    Sec. 2. Minnesota Statutes 2010, section 120A.22, subdivision 11, is amended to read:
2.22    Subd. 11. Assessment of performance. (a) Each year the performance of every
2.23child ages seven through 16 who is not enrolled in a public school must be assessed using
2.24a nationally norm-referenced standardized achievement examination. The superintendent
2.25of the district in which the child receives instruction and the person in charge of the child's
2.26instruction must agree about the specific examination to be used and the administration
2.27and location of the examination.
2.28(b) To the extent the examination in paragraph (a) does not provide assessment in
2.29all of the subject areas in subdivision 9, the parent must assess the child's performance
2.30in the applicable subject area. This requirement applies only to a parent who provides
2.31instruction and does not meet the requirements of subdivision 10, clause (1), (2), or (3).
2.32(c) If the results of the assessments in paragraphs (a) and (b) indicate that the
2.33child's performance on the total battery score is at or below the 30th percentile or one
2.34grade level below the performance level for children of the same age, the parent must
3.1obtain additional evaluation of the child's abilities and performance for the purpose of
3.2determining whether the child has learning problems.
3.3(d) A child receiving instruction from a nonpublic school, person, or institution that
3.4is accredited by an accrediting agency, recognized according to section 123B.445, or
3.5recognized by the commissioner, is exempt from the requirements of this subdivision.

3.6    Sec. 3. Minnesota Statutes 2011 Supplement, section 120A.24, subdivision 1, is
3.7amended to read:
3.8    Subdivision 1. Reports to superintendent. (a) The person or nonpublic school in
3.9charge of providing instruction to a child must submit to the superintendent of the district
3.10in which the child resides the name, birth date, and address of the child; the annual tests
3.11intended to be used under section 120A.22, subdivision 11, if required; the name of each
3.12instructor; and evidence of compliance with one of the requirements specified in section
3.13120A.22, subdivision 10 :
3.14(1) by October 1 of the first school year the child receives instruction after reaching
3.15the age of seven;
3.16(2) within 15 days of when a parent withdraws a child from public school after age
3.17seven to homeschool provide instruction in a nonpublic school that is not accredited
3.18by a state-recognized accredited agency;
3.19(3) within 15 days of moving out of a district; and
3.20(4) by October 1 after a new resident district is established.
3.21(b) The person or nonpublic school in charge of providing instruction to a child
3.22between the ages of seven and 16 must submit, by October 1 of each school year, a letter
3.23of intent to continue to provide instruction under this section for all students under the
3.24person's or school's supervision and any changes to the information required in paragraph
3.25(a) for each student.
3.26(c) The superintendent may collect the required information under this section
3.27through an electronic or Web-based format, but must not require electronic submission
3.28of information under this section from the person in charge of reporting under this
3.29subdivision.

3.30    Sec. 4. Minnesota Statutes 2011 Supplement, section 120A.24, subdivision 2, is
3.31amended to read:
3.32    Subd. 2. Availability of documentation. (a) The person or nonpublic school in
3.33charge of providing instruction to a child must maintain documentation indicating that the
3.34subjects required in section 120A.22, subdivision 9, are being taught and proof that the
4.1tests under section 120A.22, subdivision 11, have been administered. This documentation
4.2must include class schedules, copies of materials used for instruction, and descriptions of
4.3methods used to assess student achievement.
4.4(b) The parent of a child who enrolls full time in public school after having been
4.5enrolled in a home school under section 120A.22, subdivision 6 nonpublic school that
4.6is not accredited by a state-recognized accrediting agency, must provide the enrolling
4.7public school or school district with the child's scores on any tests administered to the
4.8child under section 120A.22, subdivision 11, and other education-related documents the
4.9enrolling school or district requires to determine where the child is placed in school and
4.10what course requirements apply. This paragraph does not apply to a shared time student
4.11who does not seek a public school diploma.
4.12(c) The person or nonpublic school in charge of providing instruction to a child must
4.13make the documentation in this subdivision available to the county attorney when a case
4.14is commenced under section 120A.26, subdivision 5; chapter 260C; or when diverted
4.15under chapter 260A.

4.16    Sec. 5. Minnesota Statutes 2011 Supplement, section 120B.023, subdivision 2, is
4.17amended to read:
4.18    Subd. 2. Revisions and reviews required. (a) The commissioner of education must
4.19revise and appropriately embed technology and information literacy standards consistent
4.20with recommendations from school media specialists into the state's academic standards
4.21and graduation requirements and implement a review cycle for state academic standards
4.22and related benchmarks, consistent with this subdivision. During each review cycle, the
4.23commissioner also must examine the alignment of each required academic standard and
4.24related benchmark with the knowledge and skills students need for college readiness and
4.25advanced work in the particular subject area.
4.26(b) The commissioner in the 2006-2007 school year must revise and align the state's
4.27academic standards and high school graduation requirements in mathematics to require
4.28that students satisfactorily complete the revised mathematics standards, beginning in the
4.292010-2011 school year. Under the revised standards:
4.30(1) students must satisfactorily complete an algebra I credit by the end of eighth
4.31grade; and
4.32(2) students scheduled to graduate in the 2014-2015 school year or later must
4.33satisfactorily complete an algebra II credit or its equivalent.
4.34The commissioner also must ensure that the statewide mathematics assessments
4.35administered to students in grades 3 through 8 and 11 are aligned with the state academic
5.1standards in mathematics, consistent with section 120B.30, subdivision 1, paragraph
5.2(b). The commissioner must implement a review of the academic standards and related
5.3benchmarks in mathematics beginning in the 2015-2016 school year.
5.4(c) The commissioner in the 2007-2008 school year must revise and align the state's
5.5academic standards and high school graduation requirements in the arts to require that
5.6students satisfactorily complete the revised arts standards beginning in the 2010-2011
5.7school year. The commissioner must implement a review of the academic standards and
5.8related benchmarks in arts beginning in the 2016-2017 school year.
5.9(d) The commissioner in the 2008-2009 school year must revise and align the state's
5.10academic standards and high school graduation requirements in science to require that
5.11students satisfactorily complete the revised science standards, beginning in the 2011-2012
5.12school year. Under the revised standards, students scheduled to graduate in the 2014-2015
5.13school year or later must satisfactorily complete a chemistry, or physics, credit or a career
5.14and technical education credit that meets the standards underlying either the chemistry or,
5.15physics, or biology credit or a combination of those standards approved by the district.
5.16The commissioner must implement a review of the academic standards and related
5.17benchmarks in science beginning in the 2017-2018 school year.
5.18(e) The commissioner in the 2009-2010 school year must revise and align the state's
5.19academic standards and high school graduation requirements in language arts to require
5.20that students satisfactorily complete the revised language arts standards beginning in the
5.212012-2013 school year. The commissioner must implement a review of the academic
5.22standards and related benchmarks in language arts beginning in the 2018-2019 school year.
5.23(f) The commissioner in the 2010-2011 school year must revise and align the state's
5.24academic standards and high school graduation requirements in social studies to require
5.25that students satisfactorily complete the revised social studies standards beginning in the
5.262013-2014 school year. The commissioner must implement a review of the academic
5.27standards and related benchmarks in social studies beginning in the 2019-2020 school year.
5.28(g) School districts and charter schools must revise and align local academic
5.29standards and high school graduation requirements in health, world languages, and career
5.30and technical education to require students to complete the revised standards beginning
5.31in a school year determined by the school district or charter school. School districts and
5.32charter schools must formally establish a periodic review cycle for the academic standards
5.33and related benchmarks in health, world languages, and career and technical education.

5.34    Sec. 6. Minnesota Statutes 2010, section 120B.024, is amended to read:
5.35120B.024 GRADUATION REQUIREMENTS; COURSE CREDITS.
6.1    (a) Students beginning 9th grade in the 2004-2005 2011-2012 school year and later
6.2must successfully complete the following high school level course credits for graduation:
6.3    (1) four credits of language arts;
6.4    (2) three credits of mathematics, encompassing at least algebra, geometry, statistics,
6.5and probability sufficient to satisfy the academic standard;
6.6    (3) three credits of science, including at least: (i) one credit in biology; and (ii) one
6.7chemistry or physics credit or a career and technical education credit that meets standards
6.8underlying the chemistry, physics, or biology credit or a combination of those standards
6.9approved by the district, but meeting biology standards under this item does not meet the
6.10biology requirement under item (i);
6.11    (4) three and one-half credits of social studies, encompassing at least United
6.12States history, geography, government and citizenship, world history, and economics or
6.13three credits of social studies encompassing at least United States history, geography,
6.14government and citizenship, and world history, and one-half credit of economics taught in
6.15a school's social studies, agriculture education, or business department;
6.16    (5) one credit in the arts; and
6.17    (6) a minimum of seven elective course credits.
6.18    A course credit is equivalent to a student successfully completing an academic
6.19year of study or a student mastering the applicable subject matter, as determined by the
6.20local school district.
6.21    (b) An agriculture science course may fulfill a science credit requirement in addition
6.22to other than the specified science credits credit in biology and chemistry or physics
6.23under paragraph (a), clause (3).
6.24    (c) A career and technical education course may fulfill a science, mathematics, or
6.25arts credit requirement in addition to the specified science, mathematics, or arts credits
6.26or a science credit requirement other than the specified science credit in biology under
6.27paragraph (a), clause (2), (3), or (5).

6.28    Sec. 7. Minnesota Statutes 2011 Supplement, section 120B.07, is amended to read:
6.29120B.07 EARLY GRADUATION.
6.30(a) Notwithstanding any law to the contrary, any secondary school student who has
6.31completed all required courses or standards may, with the approval of the student, the
6.32student's parent or guardian, and local school officials, graduate before the completion
6.33of the school year.
6.34(b) General education revenue attributable to the student must be paid as though
6.35the student was in attendance for the entire year unless the student participates in the
7.1early graduation achievement scholarship program under section 120B.08 or the early
7.2graduation military service award program under section 120B.09.
7.3EFFECTIVE DATE.This section is effective for fiscal year 2012 and later.

7.4    Sec. 8. Minnesota Statutes 2011 Supplement, section 120B.08, is amended to read:
7.5120B.08 EARLY GRADUATION ACHIEVEMENT SCHOLARSHIP
7.6PROGRAM.
7.7    Subdivision 1. Participation. A student who qualifies for early graduation under
7.8section 120B.07, who meets the criteria in subdivision 1a and who has not participated in
7.9the early graduation military service award program under section 120B.09, is eligible to
7.10participate in the early graduation achievement scholarship program.
7.11    Subd. 1a. Eligible student. For purposes of this section, an eligible student is a
7.12secondary student enrolled in a Minnesota public school who, at the time of graduation,
7.13generated Minnesota general education revenue and who graduates prior to the end of the
7.14fourth school year after first enrolling in ninth grade.
7.15    Subd. 2. Scholarship amounts. A student who participates in the early graduation
7.16achievement scholarship program is eligible for a scholarship of $2,500 if the student
7.17qualifies for graduation graduates one semester or two trimesters early, $5,000 if the
7.18student qualifies for graduation graduates two semesters or three or four trimesters early,
7.19or $7,500 if the student qualifies for graduation graduates three or more semesters or five
7.20or more trimesters early. Participation in the optional summer term, extended day sessions,
7.21and intersessions of a state-approved learning year program under section 124D.128 are
7.22considered a quarter for purposes of computing scholarship amounts.
7.23    Subd. 3. Scholarship uses. An early graduation achievement scholarship may be
7.24used at any accredited institution of higher education accredited by an accrediting agency
7.25recognized by the United States Department of Education.
7.26    Subd. 4. Application. A qualifying student may apply to the commissioner of
7.27education for an early graduation achievement scholarship. The application must be in the
7.28form and manner specified by the commissioner and must be received at the department
7.29within two calendar years of the date of graduation. Upon verification of the qualifying
7.30student's course completion necessary for graduation, the department must issue the
7.31student a certificate showing the student's scholarship amount.
7.32    Subd. 5. Enrollment verification. A student who qualifies under this section
7.33and enrolls in an accredited higher education institution must submit a form to the
7.34commissioner verifying the student's enrollment in the higher education institution and the
8.1tuition charges for that semester. Within 15 45 days of receipt of a student's enrollment
8.2and tuition verification form, the commissioner must issue a scholarship check to the
8.3student higher education institution in the lesser of the tuition amount for that semester
8.4or the maximum amount of the student's early graduation achievement scholarship. A
8.5student may continue to submit enrollment verification forms to the commissioner until
8.6the student has used the full amount of the student's graduation achievement scholarship or
8.7six years from the date of the student's graduation, whichever occurs first. The scholarship
8.8cannot be renewed.
8.9    Subd. 6. General education money transferred. The commissioner must transfer
8.10the amounts necessary to fund the early graduation achievement scholarships from the
8.11general education aid appropriation for that year.
8.12EFFECTIVE DATE.This section is effective for fiscal year 2012 and later.

8.13    Sec. 9. Minnesota Statutes 2011 Supplement, section 120B.09, is amended to read:
8.14120B.09 EARLY GRADUATION MILITARY SERVICE AWARD PROGRAM.
8.15    Subdivision 1. Eligibility. For purposes of this section, "eligible person" means a
8.16secondary student enrolled in any Minnesota public school who, at the time of graduation,
8.17generated Minnesota general education revenue, who qualifies for early graduation under
8.18section 120B.07, who graduated prior to the end of the fourth school year after first
8.19enrolling in ninth grade, who has not participated in the early graduation achievement
8.20scholarship program under section 120B.08, and who, before the end of the calendar
8.21year of the student's graduation, enters into active service in either the active or reserve
8.22component of the United States armed forces and deploys for 60 days or longer to a
8.23military base or installation outside Minnesota for the purpose of attending basic military
8.24training or military school and, if required by the military, performing other military duty.
8.25The active service may be in accordance with United States Code, title 10 or title 32.
8.26    Subd. 2. Application. An eligible person may apply to the commissioner of
8.27education for an early graduation military service bonus. The application must be in the
8.28form and manner specified by the commissioner and must be received at the department
8.29within two calendar years of the date of graduation.
8.30    Subd. 3. Verification and award. The request for payment must be received at
8.31the department by the end of the second fiscal year following the fiscal year in which
8.32the student graduated. Upon verification of the qualifying student's course completion
8.33necessary for graduation and eligibility for the military service bonus, the commissioner
8.34must issue payment to that person. Payment amounts must be determined according to
9.1section 120B.08, subdivision 2. Once the original amount of the award has been paid, it
9.2cannot be renewed.
9.3EFFECTIVE DATE.This section is effective for fiscal year 2012 and later.

9.4    Sec. 10. Minnesota Statutes 2010, section 120B.13, subdivision 4, is amended to read:
9.5    Subd. 4. Rigorous course taking information; AP, IB, and PSEO. The
9.6commissioner shall submit the following information on rigorous course taking to the
9.7education committees of the legislature each year by February 1:
9.8(1) the number of pupils enrolled in postsecondary enrollment options under
9.9section 124D.09, including concurrent enrollment, advanced placement, and international
9.10baccalaureate courses in each school district;
9.11(2) the number of teachers in each district attending training programs offered by
9.12the college board or, International Baccalaureate North America, Inc., or Minnesota
9.13concurrent enrollment programs;
9.14(3) the number of teachers in each district participating in support programs;
9.15(4) recent trends in the field of postsecondary enrollment options under section
9.16124D.09, including concurrent enrollment, advanced placement, and international
9.17baccalaureate programs;
9.18(5) expenditures for each category in this section and under sections 124D.09 and
9.19124D.091; and
9.20(6) other recommendations for the state program or the postsecondary enrollment
9.21options under section 124D.09, including concurrent enrollment.
9.22EFFECTIVE DATE.This section is effective for the 2012-2013 school year and
9.23later.

9.24    Sec. 11. Minnesota Statutes 2010, section 122A.415, subdivision 3, is amended to read:
9.25    Subd. 3. Revenue timing. (a) Districts, intermediate school districts, school sites,
9.26or charter schools with approved applications must receive alternative compensation
9.27revenue for each school year that the district, intermediate school district, school site,
9.28or charter school implements an alternative teacher professional pay system under this
9.29subdivision and section 122A.414. For fiscal year 2007 and later, a qualifying district,
9.30intermediate school district, school site, or charter school that received alternative teacher
9.31compensation aid for the previous fiscal year must receive at least an amount of alternative
9.32teacher compensation revenue equal to the lesser of the amount it received for the previous
9.33fiscal year or the amount it qualifies for under subdivision 1 for the current fiscal year if
10.1the district, intermediate school district, school site, or charter school submits a timely
10.2application and the commissioner determines that the district, intermediate school district,
10.3school site, or charter school continues to implement an alternative teacher professional
10.4pay system, consistent with its application under this section.
10.5(b) The commissioner shall approve applications that comply with subdivision 1,
10.6and section 122A.414, subdivisions 2, paragraph (b), and 2a, if the applicant is a charter
10.7school, in the order in which they are received, select applicants that qualify for this
10.8program, notify school districts, intermediate school districts, school sites, and charter
10.9schools about the program, develop and disseminate application materials, and carry out
10.10other activities needed to implement this section.
10.11(c) For applications approved under this section before August 1 of the fiscal year for
10.12which the aid is paid, the portion of the state total basic alternative teacher compensation
10.13aid entitlement allocated to charter schools must not exceed $522,000 for fiscal year 2006
10.14and $3,374,000 for fiscal year 2007. For fiscal year 2008 and later, the portion of the state
10.15total basic alternative teacher compensation aid entitlement allocated to charter schools
10.16must not exceed the product of $3,374,000 times the ratio of the state total charter school
10.17enrollment for the previous fiscal year to the state total charter school enrollment for the
10.18second previous fiscal year 2007. Additional basic alternative teacher compensation aid
10.19may be approved for charter schools after August 1, not to exceed the charter school limit
10.20for the following fiscal year, if the basic alternative teacher compensation aid entitlement
10.21for school districts based on applications approved by August 1 does not expend the
10.22remaining amount under the limit.

10.23    Sec. 12. Minnesota Statutes 2010, section 123B.92, subdivision 3, is amended to read:
10.24    Subd. 3. Alternative attendance programs. (a) A district that enrolls nonresident
10.25pupils in programs under sections 123A.05 to 123A.08, 124D.03, 124D.08, and 124D.68,
10.26must provide authorized transportation to the pupil within the attendance area for the
10.27school that the pupil attends at the same level of service that is provided to resident pupils
10.28within the attendance area. The resident district need not provide or pay for transportation
10.29between the pupil's residence and the district's border.
10.30    (b) A district may provide transportation to allow a student who attends a high-need
10.31English language learner program and who resides within the transportation attendance
10.32area of the program to continue in the program until the student completes the highest
10.33grade level offered by the program.
11.1(c) A homeless nonresident pupil enrolled under section 124D.08, subdivision 2a,
11.2must be provided transportation from the pupil's district of residence to and from the
11.3school of enrollment.

11.4    Sec. 13. Minnesota Statutes 2010, section 124D.08, is amended by adding a
11.5subdivision to read:
11.6    Subd. 2a. Continued enrollment for homeless students. Notwithstanding
11.7subdivision 2, a pupil who has been enrolled in a district, who is identified as homeless,
11.8and whose parent or legal guardian moves to another district, may continue to enroll in
11.9the nonresident district without the approval of the board of the nonresident district. The
11.10approval of the board of the pupil's resident district is not required.

11.11    Sec. 14. Minnesota Statutes 2010, section 124D.09, is amended by adding a
11.12subdivision to read:
11.13    Subd. 5a. Authorization; career or technical education. A 10th, 11th, or 12th
11.14grade pupil enrolled in a district or an American Indian-controlled tribal contract or grant
11.15school eligible for aid under section 124D.83, except a foreign exchange pupil enrolled in
11.16a district under a cultural exchange program, may enroll in a career or technical education
11.17course offered by a Minnesota state college or university. A 10th grade pupil applying
11.18for enrollment in a career or technical education course under this subdivision must
11.19have received a passing score on the 8th grade Minnesota Comprehensive Assessment
11.20in reading as a condition of enrollment. A secondary pupil may enroll in their first
11.21postsecondary options enrollment course under this subdivision. A student who is refused
11.22enrollment by a Minnesota state college or university under this subdivision, may apply to
11.23an eligible institution offering a career or technical education course. The postsecondary
11.24institution must give priority to its students according to subdivision 9. If a secondary
11.25student receives a grade of "C" or better in the career or technical education course
11.26taken under this subdivision, the postsecondary institution must allow the student to take
11.27additional postsecondary courses for secondary credit at that institution, not to exceed the
11.28limits in subdivision 8. A "career or technical course" is a course that is part of a career
11.29and technical education program that provides individuals with coherent, rigorous content
11.30aligned with academic standards and relevant technical knowledge and skills needed
11.31to prepare for further education and careers in current and emerging professions and
11.32provide technical skill proficiency, an industry recognized credential, and a certificate,
11.33diploma, or an associate degree.

12.1    Sec. 15. Minnesota Statutes 2011 Supplement, section 124D.09, subdivision 7, is
12.2amended to read:
12.3    Subd. 7. Dissemination of information; notification of intent to enroll. By March
12.41 of each year, a district must provide general information about the program to all pupils
12.5in grades 8, 9, 10, and 11. To assist the district in planning, a pupil shall inform the district
12.6by March May 30 of each year of the pupil's intent to enroll in postsecondary courses
12.7during the following school year. A pupil is not bound by notifying or not notifying the
12.8district by March May 30.

12.9    Sec. 16. Minnesota Statutes 2010, section 124D.09, subdivision 9, is amended to read:
12.10    Subd. 9. Enrollment priority. A postsecondary institution shall give priority to its
12.11postsecondary students when enrolling 10th, 11th, and 12th grade pupils in its courses.
12.12A postsecondary institution may provide information about its programs to a secondary
12.13school or to a pupil or parent, but it may not advertise or otherwise recruit or solicit the
12.14participation of secondary pupils to enroll in its programs on financial grounds and it may
12.15advertise or otherwise recruit or solicit a secondary pupil to enroll in its programs on
12.16educational and programmatic grounds only. An institution must not enroll secondary
12.17pupils, for postsecondary enrollment options purposes, in remedial, developmental, or
12.18other courses that are not college level. Once a pupil has been enrolled in a postsecondary
12.19course under this section, the pupil shall not be displaced by another student.

12.20    Sec. 17. Minnesota Statutes 2010, section 124D.09, subdivision 12, is amended to read:
12.21    Subd. 12. Credits. A pupil may enroll in a course under this section for either
12.22secondary credit or postsecondary credit. At the time a pupil enrolls in a course, the pupil
12.23shall designate whether the course is for secondary or postsecondary credit. A pupil taking
12.24several courses may designate some for secondary credit and some for postsecondary
12.25credit. A pupil must not audit a course under this section.
12.26A district shall grant academic credit to a pupil enrolled in a course for secondary
12.27credit if the pupil successfully completes the course. Seven quarter or four semester
12.28college credits equal at least one full year of high school credit. Fewer college credits may
12.29be prorated. A district must also grant academic credit to a pupil enrolled in a course for
12.30postsecondary credit if secondary credit is requested by a pupil. If no comparable course is
12.31offered by the district, the district must, as soon as possible, notify the commissioner, who
12.32shall determine the number of credits that shall be granted to a pupil who successfully
12.33completes a course. If a comparable course is offered by the district, the school board
12.34shall grant a comparable number of credits to the pupil. If there is a dispute between the
13.1district and the pupil regarding the number of credits granted for a particular course, the
13.2pupil may appeal the board's decision to the commissioner. The commissioner's decision
13.3regarding the number of credits shall be final.
13.4The secondary credits granted to a pupil must be counted toward the graduation
13.5requirements and subject area requirements of the district. Evidence of successful
13.6completion of each course and secondary credits granted must be included in the pupil's
13.7secondary school record. A pupil shall provide the school with a copy of the pupil's grade
13.8in each course taken for secondary credit under this section. Upon the request of a pupil,
13.9the pupil's secondary school record must also include evidence of successful completion
13.10and credits granted for a course taken for postsecondary credit. In either case, the record
13.11must indicate that the credits were earned at a postsecondary institution.
13.12If a pupil enrolls in a postsecondary institution after leaving secondary school, the
13.13postsecondary institution must award postsecondary credit for any course successfully
13.14completed for secondary credit at that institution. Other postsecondary institutions may
13.15award, after a pupil leaves secondary school, postsecondary credit for any courses
13.16successfully completed under this section. An institution may not charge a pupil for
13.17the award of credit.
13.18The Board of Trustees of the Minnesota State Colleges and Universities and
13.19the Board of Regents of the University of Minnesota must, and private nonprofit and
13.20proprietary postsecondary institutions should, award postsecondary credit for any
13.21successfully completed courses in a program certified by the National Alliance of
13.22Concurrent Enrollment Partnerships offered according to an agreement under subdivision
13.2310.

13.24    Sec. 18. Minnesota Statutes 2010, section 124D.09, subdivision 22, is amended to read:
13.25    Subd. 22. Transportation. (a) A parent or guardian of a pupil enrolled in a course
13.26for secondary credit may apply to the pupil's district of residence for reimbursement for
13.27transporting the pupil between the secondary school in which the pupil is enrolled or the
13.28pupil's home and the postsecondary institution that the pupil attends. The state shall
13.29provide state aid to a district in an amount sufficient to reimburse the parent or guardian
13.30for the necessary transportation costs when the family's or guardian's income is at or
13.31below the poverty level, as determined by the federal government. The reimbursement
13.32shall be the pupil's actual cost of transportation or 15 cents per mile traveled, whichever
13.33is less. Reimbursement may not be paid for more than 250 miles per week. However,
13.34if the nearest postsecondary institution is more than 25 miles from the pupil's resident
13.35secondary school, the weekly reimbursement may not exceed the reimbursement rate per
14.1mile times the actual distance between the secondary school or the pupil's home and the
14.2nearest postsecondary institution times ten. The state must pay aid to the district according
14.3to this subdivision.
14.4(b) A parent or guardian of an alternative pupil enrolled in a course for secondary
14.5credit may apply to the pupil's postsecondary institution for reimbursement for
14.6transporting the pupil between the secondary school in which the pupil is enrolled or the
14.7pupil's home and the postsecondary institution in an amount sufficient to reimburse the
14.8parent or guardian for the necessary transportation costs when the family's or guardian's
14.9income is at or below the poverty level, as determined by the federal government. The
14.10amount of the reimbursement shall be determined as in paragraph (a). The state must pay
14.11aid to the postsecondary institution according to this subdivision.

14.12    Sec. 19. Minnesota Statutes 2010, section 124D.09, subdivision 24, is amended to read:
14.13    Subd. 24. Limit; state obligation. The provisions of subdivisions 13, 19, and
14.1422, and 23 shall not apply for any postsecondary courses in which a pupil is enrolled in
14.15addition to being enrolled full time in that pupil's district or for any postsecondary course
14.16in which a pupil is enrolled for postsecondary credit. The pupil is enrolled full time if
14.17the pupil attends credit-bearing classes in the high school or high school program for
14.18all of the available hours of instruction.
14.19EFFECTIVE DATE.This section is effective for the 2012-2013 school year and
14.20later.

14.21    Sec. 20. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 8, is
14.22amended to read:
14.23    Subd. 8. Federal, state, and local requirements. (a) A charter school shall meet all
14.24federal, state, and local health and safety requirements applicable to school districts.
14.25    (b) A school must comply with statewide accountability requirements governing
14.26standards and assessments in chapter 120B.
14.27    (c) A school authorized by a school board may be located in any district, unless the
14.28school board of the district of the proposed location disapproves by written resolution.
14.29    (d) A charter school must be nonsectarian in its programs, admission policies,
14.30employment practices, and all other operations. An authorizer may not authorize a charter
14.31school or program that is affiliated with a nonpublic sectarian school or a religious
14.32institution. A charter school student must be released for religious instruction, consistent
14.33with section 120A.22, subdivision 12, clause (3).
15.1    (e) Charter schools must not be used as a method of providing education or
15.2generating revenue for students who are being home-schooled. This paragraph does not
15.3apply to shared time aid, under section 126C.19.
15.4    (f) The primary focus of a charter school must be to provide a comprehensive
15.5program of instruction for at least one grade or age group from five through 18 years
15.6of age. Instruction may be provided to people younger than five years and older than
15.718 years of age.
15.8    (g) A charter school may not charge tuition.
15.9    (h) A charter school is subject to and must comply with chapter 363A and section
15.10121A.04 .
15.11    (i) A charter school is subject to and must comply with the Pupil Fair Dismissal
15.12Act, sections 121A.40 to 121A.56, and the Minnesota Public School Fee Law, sections
15.13123B.34 to 123B.39.
15.14    (j) A charter school is subject to the same financial audits, audit procedures, and
15.15audit requirements as a district. Audits must be conducted in compliance with generally
15.16accepted governmental auditing standards, the federal Single Audit Act, if applicable,
15.17and section 6.65. A charter school is subject to and must comply with sections 15.054;
15.18118A.01 ; 118A.02; 118A.03; 118A.04; 118A.05; 118A.06; 471.38; 471.391; 471.392; and
15.19471.425 . The audit must comply with the requirements of sections 123B.75 to 123B.83,
15.20except to the extent deviations are necessary because of the program at the school.
15.21Deviations must be approved by the commissioner and authorizer. The Department of
15.22Education, state auditor, legislative auditor, or authorizer may conduct financial, program,
15.23or compliance audits. A charter school determined to be in statutory operating debt under
15.24sections 123B.81 to 123B.83 must submit a plan under section 123B.81, subdivision 4.
15.25    (k) A charter school is a district for the purposes of tort liability under chapter 466.
15.26    (l) A charter school must comply with chapters 13 and 13D; and sections 120A.22,
15.27subdivision 7 ; 121A.75; and 260B.171, subdivisions 3 and 5.
15.28    (m) A charter school is subject to the Pledge of Allegiance requirement under
15.29section 121A.11, subdivision 3.
15.30    (n) A charter school offering online courses or programs must comply with section
15.31124D.095 .
15.32    (o) A charter school and charter school board of directors are subject to chapter 181.
15.33    (p) A charter school must comply with section 120A.22, subdivision 7, governing
15.34the transfer of students' educational records and sections 138.163 and 138.17 governing
15.35the management of local records.
16.1    (q) A charter school that provides early childhood health and developmental
16.2screening must comply with sections 121A.16 to 121A.19.
16.3(r) A charter school that provides school-sponsored youth athletic activities must
16.4comply with section 121A.38.

16.5    Sec. 21. Minnesota Statutes 2011 Supplement, section 124D.4531, subdivision 1,
16.6is amended to read:
16.7    Subdivision 1. Career and technical levy. (a) A district with a career and technical
16.8program approved under this section for the fiscal year in which the levy is certified
16.9may levy an amount equal to the greater of:
16.10(1) $80 times the district's average daily membership in grades 9 through 12 for the
16.11fiscal year in which the levy is certified; or
16.12(2) 35 percent of approved expenditures in the fiscal year in which the levy is
16.13certified for the following:
16.14(i) (1) salaries paid to essential, licensed personnel providing direct instructional
16.15services to students in that fiscal year, including extended contracts, for services rendered
16.16in the district's approved career and technical education programs;
16.17(ii) (2) contracted services provided by a public or private agency other than a
16.18Minnesota school district or cooperative center under subdivision 7;
16.19(iii) (3) necessary travel between instructional sites by licensed career and technical
16.20education personnel;
16.21(iv) (4) necessary travel by licensed career and technical education personnel for
16.22vocational student organization activities held within the state for instructional purposes;
16.23(v) (5) curriculum development activities that are part of a five-year plan for
16.24improvement based on program assessment;
16.25(vi) (6) necessary travel by licensed career and technical education personnel for
16.26noncollegiate credit-bearing professional development; and
16.27(vii) (7) specialized vocational instructional supplies.
16.28(b) Up to ten percent of a district's career and technical levy may be spent on
16.29equipment purchases. Districts using the career and technical levy for equipment
16.30purchases must report to the department on the improved learning opportunities for
16.31students that result from the investment in equipment.
16.32(c) The district must recognize the full amount of this levy as revenue for the fiscal
16.33year in which it is certified.
17.1(d) The amount of the levy certified under this subdivision may not exceed
17.2$17,850,000 for taxes payable in 2012, $15,520,000 for taxes payable in 2013, and
17.3$15,545,000 $15,393,000 for taxes payable in 2014.
17.4(e) If the estimated levy exceeds the amount in paragraph (d), the commissioner
17.5must reduce the percentage in paragraph (a), clause (2), until the estimated levy no longer
17.6exceeds the limit in paragraph (d).
17.7EFFECTIVE DATE.This section is effective the day following final enactment.

17.8    Sec. 22. Minnesota Statutes 2010, section 124D.4531, subdivision 3, is amended to
17.9read:
17.10    Subd. 3. Levy guarantee. Notwithstanding subdivision 1, paragraph (a), the career
17.11and technical education levy for a district is not less than the lesser of:
17.12(1) the district's career and technical education levy authority for the previous
17.13fiscal year; or
17.14(2) 100 percent of the approved expenditures for career and technical programs
17.15included in subdivision 1, paragraph (b), for the fiscal year in which the levy is certified.
17.16EFFECTIVE DATE.This section is effective the day following final enactment.

17.17    Sec. 23. Minnesota Statutes 2010, section 124D.4531, is amended by adding a
17.18subdivision to read:
17.19    Subd. 3a. Levy, pay 2012-2014. Notwithstanding subdivisions 1 and 3, for taxes
17.20payable in 2012 to 2014 only, the department must calculate the career and technical levy
17.21authority for each district according to Minnesota Statutes 2010, section 124D.4531, and
17.22adjust the levy authority for each district proportionately to meet the statewide levy target
17.23under subdivision 1, paragraph (d). For purposes of calculating the levy guarantee under
17.24subdivision 3, the career and technical education levy authority for the previous fiscal year
17.25is the levy authority according to Minnesota Statutes 2010, section 124D.4531, before
17.26adjustments to meet the statewide levy target.
17.27EFFECTIVE DATE.This section is effective the day following final enactment.

17.28    Sec. 24. Minnesota Statutes 2010, section 126C.10, subdivision 28, is amended to read:
17.29    Subd. 28. Equity region. For the purposes of computing equity revenue under
17.30subdivision 24, a district whose with its administrative offices on July 1, 1999, is office
17.31located in Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington County on
17.32January 1, 2012, is part of the metro equity region. Districts whose administrative offices
18.1on July 1, 1999, are not located in Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or
18.2Washington County All other districts are part of the rural equity region.
18.3EFFECTIVE DATE.This section is effective for revenue for fiscal years 2013
18.4and later.

18.5    Sec. 25. Minnesota Statutes 2011 Supplement, section 126C.126, is amended to read:
18.6126C.126 REALLOCATING GENERAL EDUCATION REVENUE FOR
18.7ALL-DAY KINDERGARTEN AND PREKINDERGARTEN.
18.8    (a) In order to provide additional revenue for an optional all-day kindergarten
18.9program, a district may reallocate general education revenue attributable to 12th grade
18.10students who have graduated early under section 120B.07 and who do not participate in
18.11the early graduation achievement scholarship program under section 120B.08 or the early
18.12graduation military service award program under section 120B.09.
18.13    (b) A school district may spend general education revenue on extended time
18.14kindergarten and prekindergarten programs.

18.15    Sec. 26. Minnesota Statutes 2010, section 126C.19, subdivision 2, is amended to read:
18.16    Subd. 2. Exception. Notwithstanding subdivision 1, the resident district of a shared
18.17time pupil attending shared time classes in another district may or a charter school must
18.18 grant the district or charter school of attendance, upon its request, permission to claim
18.19the pupil as a resident for state aid purposes. In this case, state aid must be paid to the
18.20district or charter school of attendance and, upon agreement. If the resident district agrees,
18.21the district of attendance may bill the resident district for any unreimbursed education
18.22costs, but not for unreimbursed transportation costs. The agreement may, however,
18.23provide resident district and the district or charter school of attendance may negotiate an
18.24agreement for the resident district to pay the cost of any of the particular transportation
18.25categories specified in section 123B.92, subdivision 1, and in this case, aid for those
18.26categories must be paid to the district of residence rather than to the district of attendance.
18.27EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014
18.28and later.

18.29    Sec. 27. Minnesota Statutes 2011 Supplement, section 127A.45, subdivision 6a,
18.30is amended to read:
18.31    Subd. 6a. Cash flow adjustment. The board of directors of any charter school
18.32serving fewer than 150 200 students where the percent of students eligible for special
19.1education services equals at least 90 percent of the charter school's total enrollment may
19.2request that the commissioner of education accelerate the school's cash flow under this
19.3section. The commissioner must approve a properly submitted request within 30 days of
19.4its receipt. The commissioner must accelerate the school's regular special education aid
19.5payments according to the schedule in the school's request and modify the payments to the
19.6school under subdivision 3 accordingly. A school must not receive current payments of
19.7regular special education aid exceeding 90 percent of its estimated aid entitlement for the
19.8fiscal year. The commissioner must delay the special education aid payments to all other
19.9school districts and charter schools in proportion to each district or charter school's total
19.10share of regular special education aid such that the overall aid payment savings from the
19.11aid payment shift remains unchanged for any fiscal year.

19.12    Sec. 28. Minnesota Statutes 2010, section 127A.47, subdivision 1, is amended to read:
19.13    Subdivision 1. Aid to serving district. (a) Unless otherwise specifically provided
19.14by law, general education aid must be paid according to this subdivision.
19.15(b) Except as provided in paragraph (c), general education aid must be paid to the
19.16serving district.
19.17(c) If the resident district pays tuition for a pupil under section 123A.18, 123A.22,
19.18123A.30 , 123A.32, 123A.44, 123A.488, 123B.88, subdivision 4, 124D.04, 124D.05,
19.19125A.03 to 125A.24, 125A.51, or 125A.65, general education aid, excluding basic skills
19.20revenue under section 126C.10, subdivision 4, must be paid to the resident district. For
19.21a student enrolled under section 124D.08, subdivision 2a, that is enrolled in other than
19.22an independent or special school district or charter school, the general education revenue
19.23shall be paid to the resident district.

19.24    Sec. 29. Minnesota Statutes 2010, section 135A.101, subdivision 1, is amended to read:
19.25    Subdivision 1. Requirements for participation. To participate in the postsecondary
19.26enrollment options program, a college or university must abide by the provisions in this
19.27section. The institution may provide information about its programs to a secondary school
19.28or to a pupil or parent, but may not recruit or solicit participation on financial grounds and
19.29may recruit or solicit participation on educational and programmatic grounds.

19.30    Sec. 30. Minnesota Statutes 2010, section 471.975, is amended to read:
19.31471.975 MAY PAY DIFFERENTIAL OF RESERVE ON ACTIVE DUTY.
19.32(a) Except as provided in paragraph (b), a statutory or home rule charter city, county,
19.33town, or other political subdivision may pay to each eligible member of the National
20.1Guard or other reserve component of the armed forces of the United States an amount
20.2equal to the difference between the member's base active duty military salary and the
20.3salary the member would be paid as an active political subdivision employee, including
20.4any adjustments the member would have received if not on leave of absence. This
20.5payment may be made only to a person whose base active duty military salary is less than
20.6the salary the person would be paid as an active political subdivision employee. Back pay
20.7authorized by this section may be paid in a lump sum. Payment under this section must
20.8not extend beyond four years from the date the employee reported for active service, plus
20.9any additional time the employee may be legally required to serve.
20.10(b) Subject to the limits under paragraph (g), Each school district shall pay to each
20.11eligible member of the National Guard or other reserve component of the armed forces
20.12of the United States an amount equal to the difference between the member's base active
20.13duty military salary and the salary the member would be paid as an active school district
20.14employee, including any adjustments the member would have received if not on leave
20.15of absence. The pay differential must be based on a comparison between the member's
20.16daily base rate of active duty pay, calculated by dividing the member's base military
20.17monthly salary by the number of paid days in the month, and the member's daily rate of
20.18pay for the member's school district salary, calculated by dividing the member's total
20.19school district salary by the number of contract days. The member's salary as a school
20.20district employee must include the member's basic salary and any additional salary the
20.21member earns from the school district for cocurricular and extracurricular activities. The
20.22differential payment under this paragraph must be the difference between the daily base
20.23rates of military pay times the number of school district contract days the member misses
20.24because of military active duty. This payment may be made only to a person whose daily
20.25base rate of active duty pay is less than the person's daily rate of pay as an active school
20.26district employee. Payments may be made at the intervals at which the member received
20.27pay as a school district employee. Payment under this section must not extend beyond
20.28four years from the date the employee reported for active service, plus any additional time
20.29the employee may be legally required to serve.
20.30(c) An eligible member of the reserve components of the armed forces of the United
20.31States is a reservist or National Guard member who was an employee of a political
20.32subdivision at the time the member reported for active service on or after May 29, 2003,
20.33or who is on active service on May 29, 2003.
20.34(d) Except as provided in paragraph (e) and elsewhere in Minnesota Statutes, a
20.35statutory or home rule charter city, county, town, or other political subdivision has total
21.1discretion regarding employee benefit continuation for a member who reports for active
21.2service and the terms and conditions of any benefit.
21.3(e) A school district must continue the employee's enrollment in health and dental
21.4coverage, and the employer contribution toward that coverage, until the employee is
21.5covered by health and dental coverage provided by the armed forces. If the employee had
21.6elected dependent coverage for health or dental coverage as of the time that the employee
21.7reported for active service, a school district must offer the employee the option to continue
21.8the dependent coverage at the employee's own expense. A school district must permit
21.9the employee to continue participating in any pretax account in which the employee
21.10participated when the employee reported for active service, to the extent of employee pay
21.11available for that purpose.
21.12(f) For purposes of this section, "active service" has the meaning given in section
21.13190.05, subdivision 5 , but excludes service performed exclusively for purposes of:
21.14(1) basic combat training, advanced individual training, annual training, and periodic
21.15inactive duty training;
21.16(2) special training periodically made available to reserve members; and
21.17(3) service performed in accordance with section 190.08, subdivision 3.
21.18(g) A school district making payments under paragraph (b) shall place a sum equal
21.19to any difference between the amount of salary that would have been paid to the employee
21.20who is receiving the payments and the amount of salary being paid to substitutes for
21.21that employee into a special fund that must be used to pay or partially pay the deployed
21.22employee's payments under paragraph (b). A school district is required to pay only this
21.23amount to the deployed school district employee. When an employee of a school district
21.24who as a member of the National Guard or any other reserve unit of the United States
21.25armed forces, reports for active service as defined in section 190.05, subdivision 5, the
21.26district must place into a special service members' aggregate salary savings account the
21.27amount of salary the district would have paid to the employee during the employee's leave
21.28for military service. The district must use the combined proceeds in the account only to
21.29fully pay the salary differentials of all eligible deployed employees in the district, as
21.30determined under paragraph (b). Funds remaining in the account at the end of the fiscal
21.31year after all obligations to employees under this statute have been satisfied may be used
21.32to pay for substitutes for the deployed employees, and then for any other purpose.
21.33EFFECTIVE DATE.This section is effective July 1, 2012, for school district
21.34employees serving in active military duty on or after that date.

22.1    Sec. 31. Laws 2011, First Special Session chapter 11, article 5, section 11, is amended
22.2to read:
22.3    Sec. 11. FUND TRANSFER; FISCAL YEARS 2012 AND 2013 THROUGH
22.42015 ONLY.
22.5(a) Notwithstanding Minnesota Statutes, section 123B.80, subdivision 3, for fiscal
22.6years 2012 and 2013 through 2015 only, the commissioner must approve a request for a
22.7fund transfer if the transfer does not increase state aid obligations to the district or result in
22.8additional property tax authority for the district. This section does not permit transfers
22.9from the community service fund or the food service fund.
22.10(b) A school board may approve a fund transfer under paragraph (a) only after
22.11adopting a resolution stating the fund transfer will not diminish instructional opportunities
22.12for students.
22.13EFFECTIVE DATE.This section is effective the day following final enactment.

22.14    Sec. 32. APPROPRIATION.
22.15    Subdivision 1. Department of Education. The sums shown are added to or, if
22.16shown in parentheses, subtracted from, the appropriations in Laws 2011, First Special
22.17Session chapter 11, or any appropriation that replaces those appropriations, to the
22.18Department of Education for the purposes specified. The appropriations are from the
22.19general fund, or another named fund, and are available for the fiscal years indicated for
22.20each purpose.
22.21    Subd. 2. General education aid. For general education aid under Minnesota
22.22Statutes, section 126C.13, subdivision 4:

22.23		$	(311,000)	.....	2012
22.24		$	(678,000)	.....	2013

22.25EFFECTIVE DATE.This section is effective the day following final enactment.

22.26    Sec. 33. REVISOR'S INSTRUCTION.
22.27In Minnesota Statutes and Rules, the revisor of statutes shall substitute the terms
22.28"English learner," "EL," or similar term for "limited English proficient," "English language
22.29learner," "LEP," "ELL," or similar term when referring to early childhood through grade 12
22.30education. The revisor shall also make grammatical changes related to the changes in term.

22.31    Sec. 34. REPEALER.
23.1(a) Minnesota Statutes 2010, section 124D.09, subdivision 23, is repealed effective
23.2for the 2012-2013 school year and later.
23.3(b) Minnesota Statutes 2010, section 127A.47, subdivision 2, is repealed.

23.4ARTICLE 2

23.5EDUCATION EXCELLENCE

23.6    Section 1. Minnesota Statutes 2010, section 120A.22, subdivision 2, is amended to
23.7read:
23.8    Subd. 2. Applicability. This section and sections 120A.24; 120A.26; 120A.28;
23.9120A.30 ; 120A.32; and 120A.34 apply only to a child required to receive instruction
23.10according to subdivision 5 and to instruction that is intended to fulfill that requirement.

23.11    Sec. 2. Minnesota Statutes 2011 Supplement, section 120B.12, subdivision 2, is
23.12amended to read:
23.13    Subd. 2. Identification; report. For the 2011-2012 school year and later, each
23.14school district shall identify before the end of kindergarten, grade 1, and grade 2 students
23.15who are not reading at grade level before the end of the current school year. Reading
23.16assessments must identify and evaluate students' areas of academic need related to
23.17literacy. The district must use a locally adopted assessment and annually report summary
23.18assessment results to the commissioner by June July 1.

23.19    Sec. 3. Minnesota Statutes 2010, section 120B.13, subdivision 1, is amended to read:
23.20    Subdivision 1. Program structure; training programs for teachers. (a) The
23.21advanced placement and international baccalaureate programs are well-established
23.22academic programs for mature, academically directed high school students. These
23.23programs, in addition to providing academic rigor, offer sound curricular design,
23.24accountability, comprehensive external assessment, feedback to students and teachers,
23.25and the opportunity for high school students to compete academically on a global level.
23.26Advanced placement and international baccalaureate programs allow students to leave
23.27high school with the academic skills and self-confidence to succeed in college and
23.28beyond. The advanced placement and international baccalaureate programs help provide
23.29Minnesota students with world-class educational opportunity.
23.30(b) Critical to schools' educational success is ongoing advanced
23.31placement/international baccalaureate-approved teacher training. A secondary teacher
23.32assigned by a district to teach an advanced placement or international baccalaureate course
23.33or other interested educator may participate in a training program offered by The College
24.1Board or International Baccalaureate North America, Inc. The state may pay a portion
24.2of the tuition, room, board, and out-of-state travel costs a teacher or other interested
24.3educator incurs in participating in a training program. The commissioner shall determine
24.4application procedures and deadlines, select teachers and other interested educators to
24.5participate in the training program, and determine the payment process and amount of the
24.6subsidy. The procedures determined by the commissioner shall, to the extent possible,
24.7ensure that advanced placement and international baccalaureate courses become available
24.8in all parts of the state and that a variety of course offerings are available in school districts.
24.9This subdivision does not prevent teacher or other interested educator participation in
24.10training programs offered by The College Board or International Baccalaureate North
24.11America, Inc., when tuition is paid by a source other than the state.

24.12    Sec. 4. Minnesota Statutes 2011 Supplement, section 120B.30, subdivision 1, is
24.13amended to read:
24.14    Subdivision 1. Statewide testing. (a) The commissioner, with advice from experts
24.15with appropriate technical qualifications and experience and stakeholders, consistent with
24.16subdivision 1a, shall include in the comprehensive assessment system, for each grade
24.17level to be tested, state-constructed tests developed from and aligned with the state's
24.18required academic standards under section 120B.021, include multiple choice questions,
24.19and be administered annually to all students in grades 3 through 8. State-developed high
24.20school tests aligned with the state's required academic standards under section 120B.021
24.21and administered to all high school students in a subject other than writing must include
24.22multiple choice questions. The commissioner shall establish one or more months during
24.23which schools shall administer the tests to students each school year. For students enrolled
24.24in grade 8 before the 2005-2006 school year, Minnesota basic skills tests in reading,
24.25mathematics, and writing shall fulfill students' basic skills testing requirements for a
24.26passing state notation. The passing scores of basic skills tests in reading and mathematics
24.27are the equivalent of 75 percent correct for students entering grade 9 based on the
24.28first uniform test administered in February 1998. Students who have not successfully
24.29passed a Minnesota basic skills test by the end of the 2011-2012 school year must pass
24.30the graduation-required assessments for diploma under paragraph (c), except that for
24.31the 2012-2013 and 2013-2014 school years only, these students may satisfy the state's
24.32graduation test requirement for math by complying with paragraph (d), clauses (1) and (3).
24.33(b) The state assessment system must be aligned to the most recent revision of
24.34academic standards as described in section 120B.023 in the following manner:
24.35(1) mathematics;
25.1(i) grades 3 through 8 beginning in the 2010-2011 school year; and
25.2(ii) high school level beginning in the 2013-2014 school year;
25.3(2) science; grades 5 and 8 and at the high school level beginning in the 2011-2012
25.4school year; and
25.5(3) language arts and reading; grades 3 through 8 and high school level beginning in
25.6the 2012-2013 school year.
25.7    (c) For students enrolled in grade 8 in the 2005-2006 school year and later, only the
25.8following options shall fulfill students' state graduation test requirements:
25.9    (1) for reading and mathematics:
25.10    (i) obtaining an achievement level equivalent to or greater than proficient as
25.11determined through a standard setting process on the Minnesota comprehensive
25.12assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing
25.13score as determined through a standard setting process on the graduation-required
25.14assessment for diploma in grade 10 for reading and grade 11 for mathematics or
25.15subsequent retests;
25.16    (ii) achieving a passing score as determined through a standard setting process on the
25.17state-identified language proficiency test in reading and the mathematics test for English
25.18language learners or the graduation-required assessment for diploma equivalent of those
25.19assessments for students designated as English language learners;
25.20    (iii) achieving an individual passing score on the graduation-required assessment for
25.21diploma as determined by appropriate state guidelines for students with an individualized
25.22education program or 504 plan;
25.23    (iv) obtaining achievement level equivalent to or greater than proficient as
25.24determined through a standard setting process on the state-identified alternate assessment
25.25or assessments in grade 10 for reading and grade 11 for mathematics for students with
25.26an individualized education program; or
25.27    (v) achieving an individual passing score on the state-identified alternate assessment
25.28or assessments as determined by appropriate state guidelines for students with an
25.29individualized education program; and
25.30    (2) for writing:
25.31    (i) achieving a passing score on the graduation-required assessment for diploma;
25.32    (ii) achieving a passing score as determined through a standard setting process on
25.33the state-identified language proficiency test in writing for students designated as English
25.34language learners;
26.1    (iii) achieving an individual passing score on the graduation-required assessment for
26.2diploma as determined by appropriate state guidelines for students with an individualized
26.3education program or 504 plan; or
26.4    (iv) achieving an individual passing score on the state-identified alternate assessment
26.5or assessments as determined by appropriate state guidelines for students with an
26.6individualized education program.
26.7    (d) Students enrolled in grade 8 in any school year from the 2005-2006 school
26.8year to the 2009-2010 school year who do not pass the mathematics graduation-required
26.9assessment for diploma under paragraph (c) are eligible to receive a high school diploma
26.10if they:
26.11(1) complete with a passing score or grade all state and local coursework and credits
26.12required for graduation by the school board granting the students their diploma;
26.13(2) participate in district-prescribed academic remediation in mathematics; and
26.14    (3) fully participate in at least two retests of the mathematics GRAD test or until
26.15they pass the mathematics GRAD test, whichever comes first. A school, district, or charter
26.16school must place on the high school transcript a student's current pass status for each
26.17subject that has a required graduation assessment.
26.18In addition, the school board granting the students their diplomas may formally
26.19decide to include a notation of high achievement on the high school diplomas of those
26.20graduating seniors who, according to established school board criteria, demonstrate
26.21exemplary academic achievement during high school.
26.22(e) The 3rd through 8th grade and high school test results shall be available to
26.23districts for diagnostic purposes affecting student learning and district instruction and
26.24curriculum, and for establishing educational accountability. The commissioner must
26.25disseminate to the public the high school test results upon receiving those results.
26.26    (f) The 3rd through 8th grade and high school tests must be aligned with state
26.27academic standards. The commissioner shall determine the testing process and the order
26.28of administration. The statewide results shall be aggregated at the site and district level,
26.29consistent with subdivision 1a.
26.30    (g) In addition to the testing and reporting requirements under this section, the
26.31commissioner shall include the following components in the statewide public reporting
26.32system:
26.33    (1) uniform statewide testing of all students in grades 3 through 8 and at the high
26.34school level that provides appropriate, technically sound accommodations or alternate
26.35assessments;
27.1    (2) educational indicators that can be aggregated and compared across school
27.2districts and across time on a statewide basis, including average daily attendance, high
27.3school graduation rates, and high school drop-out rates by age and grade level;
27.4    (3) state results on the American College Test; and
27.5    (4) state results from participation in the National Assessment of Educational
27.6Progress so that the state can benchmark its performance against the nation and other
27.7states, and, where possible, against other countries, and contribute to the national effort
27.8to monitor achievement.

27.9    Sec. 5. Minnesota Statutes 2011 Supplement, section 122A.40, subdivision 5, is
27.10amended to read:
27.11    Subd. 5. Probationary period. (a) The first three consecutive years of a teacher's
27.12first teaching experience in Minnesota in a single district is deemed to be a probationary
27.13period of employment, and, the probationary period in each district in which the teacher is
27.14thereafter employed shall be one year. The school board must adopt a plan for written
27.15evaluation of teachers during the probationary period that is consistent with subdivision
27.168. Evaluation must occur at least three times periodically throughout each school year
27.17for a teacher performing services during that school year; the first evaluation must occur
27.18within the first 90 days of teaching service. Days devoted to parent-teacher conferences,
27.19teachers' workshops, and other staff development opportunities and days on which a
27.20teacher is absent from school must not be included in determining the number of school
27.21days on which a teacher performs services. Except as otherwise provided in paragraph (b),
27.22during the probationary period any annual contract with any teacher may or may not be
27.23renewed as the school board shall see fit. However, the board must give any such teacher
27.24whose contract it declines to renew for the following school year written notice to that
27.25effect before June July 1. If the teacher requests reasons for any nonrenewal of a teaching
27.26contract, the board must give the teacher its reason in writing, including a statement
27.27that appropriate supervision was furnished describing the nature and the extent of such
27.28supervision furnished the teacher during the employment by the board, within ten days
27.29after receiving such request. The school board may, after a hearing held upon due notice,
27.30discharge a teacher during the probationary period for cause, effective immediately,
27.31under section 122A.44.
27.32(b) A board must discharge a probationary teacher, effective immediately, upon
27.33receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the teacher's
27.34license has been revoked due to a conviction for child abuse or sexual abuse.
28.1(c) A probationary teacher whose first three years of consecutive employment are
28.2interrupted for active military service and who promptly resumes teaching consistent with
28.3federal reemployment timelines for uniformed service personnel under United States
28.4Code, title 38, section 4312(e), is considered to have a consecutive teaching experience
28.5for purposes of paragraph (a).
28.6(d) A probationary teacher must complete at least 120 days of teaching service each
28.7year during the probationary period. Days devoted to parent-teacher conferences, teachers'
28.8workshops, and other staff development opportunities and days on which a teacher is
28.9absent from school do not count as days of teaching service under this paragraph.
28.10EFFECTIVE DATE.This section is effective for the 2012-2013 school year and
28.11later.

28.12    Sec. 6. Minnesota Statutes 2010, section 122A.40, subdivision 13, is amended to read:
28.13    Subd. 13. Immediate discharge. (a) Except as otherwise provided in paragraph
28.14(b), a board may discharge a continuing-contract teacher, effective immediately, upon any
28.15of the following grounds:
28.16(1) immoral conduct, insubordination, or conviction of a felony;
28.17(2) conduct unbecoming a teacher which requires the immediate removal of the
28.18teacher from classroom or other duties;
28.19(3) failure without justifiable cause to teach without first securing the written release
28.20of the school board;
28.21(4) gross inefficiency which the teacher has failed to correct after reasonable written
28.22notice;
28.23(5) willful neglect of duty; or
28.24(6) continuing physical or mental disability subsequent to a 12 months leave of
28.25absence and inability to qualify for reinstatement in accordance with subdivision 12.
28.26For purposes of this paragraph, conduct unbecoming a teacher includes an unfair
28.27discriminatory practice described in section 363A.13.
28.28Prior to discharging a teacher under this paragraph, the board must notify the
28.29teacher in writing and state its ground for the proposed discharge in reasonable detail.
28.30Within ten days after receipt of this notification the teacher may make a written request
28.31for a hearing before the board and it shall be granted before final action is taken. The
28.32board may, however, suspend a teacher with pay pending the conclusion of such the
28.33hearing and determination of the issues raised in the hearing after charges have been
28.34filed which constitute ground for discharge. If a teacher has been charged with a felony
28.35and the underlying conduct that is the subject of the felony charge is a ground for a
29.1proposed immediate discharge, the suspension pending the conclusion of the hearing and
29.2determination of the issues may be without pay. If a hearing under this paragraph is held,
29.3the board must reimburse the teacher for any salary or compensation withheld if the
29.4final decision of the board or the arbitrator does not result in a penalty to or suspension,
29.5termination, or discharge of the teacher.
29.6(b) A board must discharge a continuing-contract teacher, effective immediately,
29.7upon receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the
29.8teacher's license has been revoked due to a conviction for child abuse or sexual abuse.
29.9EFFECTIVE DATE.This section is effective the day following final enactment.

29.10    Sec. 7. Minnesota Statutes 2010, section 123B.04, is amended to read:
29.11123B.04 SITE DECISION-MAKING; INDIVIDUALIZED LEARNING
29.12AGREEMENT; OTHER AGREEMENTS.
29.13    Subdivision 1. Definition. "Education site" means a separate facility. A program
29.14within a facility or within a district is an education site if the school board recognizes it
29.15as a site.
29.16    Subd. 1a. Individualized learning and instruction; improved student
29.17achievement. To promote individualized learning and instruction and improve student
29.18achievement under subdivisions 4 and 4a, a participating school board under this section
29.19may consider how to:
29.20(1) assist a school site to adapt instruction to the needs and aptitudes of individual
29.21students, and establish goals and standards for individual students in addition to the state
29.22academic standards applicable to all students;
29.23(2) coordinate the pace of instruction and learning with the needs and aptitudes of
29.24individual students at a school site;
29.25(3) provide useful data and assist with research in developing and improving
29.26innovative, cost-effective, research-based individualized learning, instruction, and
29.27assessment under this section and section 124D.10;
29.28(4) demonstrate and help evaluate instructional alternatives to age-based grade
29.29progression;
29.30(5) more effectively motivate students and teachers; and
29.31(6) expand use of learning technology to support individualized learning, instruction,
29.32assessment, and achievement.
30.1    Subd. 2. Agreement. (a) The school board and a school site may enter into an
30.2agreement under this section solely to develop and implement an individualized learning
30.3and achievement contract under subdivision 4.
30.4(a) (b) Upon the request of 60 percent of the licensed employees of a site or a school
30.5site decision-making team, the school board shall enter into discussions to reach an
30.6agreement concerning the governance, management, or control of the school. A school
30.7site decision-making team may include the school principal, teachers in the school or
30.8their designee, other employees in the school, representatives of pupils in the school, or
30.9other members in the community. A school site decision-making team must include at
30.10least one parent of a pupil in the school. For purposes of formation of a new site, a school
30.11site decision-making team may be a team of teachers that is recognized by the board as
30.12a site. The school site decision-making team shall include the school principal or other
30.13person having general control and supervision of the school. The site decision-making
30.14team must reflect the diversity of the education site. At least one-half of the members
30.15shall be employees of the district, unless an employee is the parent of a student enrolled
30.16in the school site, in which case the employee may elect to serve as a parent member of
30.17the site team.
30.18(b) (c) School site decision-making agreements must delegate powers, duties, and
30.19broad management responsibilities to site teams and involve staff members, students as
30.20appropriate, and parents in decision making.
30.21(c) (d) An agreement shall include a statement of powers, duties, responsibilities,
30.22and authority to be delegated to and within the site.
30.23(d) (e) An agreement may include:
30.24(1) an achievement contract according to subdivision 4;
30.25(2) a mechanism to allow principals, a site leadership team, or other persons having
30.26general control and supervision of the school, to make decisions regarding how financial
30.27and personnel resources are best allocated at the site and from whom goods or services
30.28are purchased;
30.29(3) a mechanism to implement parental involvement programs under section
30.30124D.895 and to provide for effective parental communication and feedback on this
30.31involvement at the site level;
30.32(4) a provision that would allow the team to determine who is hired into licensed
30.33and nonlicensed positions;
30.34(5) a provision that would allow teachers to choose the principal or other person
30.35having general control;
30.36(6) an amount of revenue allocated to the site under subdivision 3; and
31.1(7) any other powers and duties determined appropriate by the board.
31.2The school board of the district remains the legal employer under clauses (4) and (5).
31.3(e) (f) Any powers or duties not delegated to the school site management team in the
31.4school site management agreement shall remain with the school board.
31.5(f) (g) Approved agreements shall be filed with the commissioner. If a school board
31.6denies a request or the school site and school board fail to reach an agreement to enter
31.7into a school site management agreement, the school board shall provide a copy of the
31.8request and the reasons for its denial to the commissioner.
31.9(g) (h) A site decision-making grant program is established, consistent with this
31.10subdivision, to allow sites to implement an agreement that at least:
31.11(1) notwithstanding subdivision 3, allocates to the site all revenue that is attributable
31.12to the students at that site;
31.13(2) includes a provision, consistent with current law and the collective bargaining
31.14agreement in effect, that allows the site team to decide who is selected from within the
31.15district for licensed and nonlicensed positions at the site and to make staff assignments
31.16in the site; and
31.17(3) includes a completed performance agreement under subdivision 4.
31.18The commissioner shall establish the form and manner of the application for a grant
31.19and annually, at the end of each fiscal year, report to the house of representatives and
31.20senate committees having jurisdiction over education on the progress of the program.
31.21    Subd. 3. Revenue and cost allocation. Revenue for a fiscal year received or
31.22receivable by the district shall be allocated to education sites based on the agreement
31.23between the school board and the site decision-making team. Revenue shall remain
31.24allocated to each site until used by the site. The site teams and the board may enter an
31.25agreement that permits the district to provide services and retain the revenue required to
31.26pay for the services provided. The district remains responsible for legally entering into
31.27contracts and expending funds. For the purposes of this subdivision, "allocation" means
31.28that the determination of the use of the revenue shall be under the control of the site. The
31.29district may charge the accounts of each site the actual costs of goods and services from
31.30the general or capital funds attributable to the site.
31.31    Subd. 4. Achievement contract. A school board may enter a written education
31.32site achievement contract with each site decision-making team for the purpose of: (1)
31.33setting individualized learning performance expectations and achievement measures and
31.34short- and long-term educational goals for each student at that site, including the goals
31.35for improvement in each area of; (2) recognizing each student's educational needs and
31.36aptitudes and levels of academic attainment, whether on grade level or above or below
32.1grade level, so as to improve student performance through such means as a cost-effective,
32.2research-based formative assessment system designed to promote individualized learning
32.3and assessment; (3) using student performance data to diagnose a student's academic
32.4strengths and weaknesses and indicate to the student's teachers the specific skills and
32.5concepts that need to be introduced to the student and developed through academic
32.6instruction or applied learning, organized by strands within subject areas and linked to
32.7state and local academic standards during the next year, a plan to assist consistent with
32.8the student's short- and long-term educational goals; and (4) assisting the education site
32.9if their progress in achieving student or contract goals are not achieved, and or other
32.10performance expectations and or measures determined agreed to by the board and the site
32.11decision-making team are not realized or implemented.
32.12    Subd. 4a. Additional site agreements premised on successful achievement
32.13contracts. A school board that enters into a written education achievement contract with a
32.14school site under subdivision 4 where the student performance data at the site demonstrate
32.15at least three consecutive school years of improved student achievement consistent with
32.16the terms of the achievement contract may seek to establish a similar achievement contract
32.17with other school sites in the district.
32.18    Subd. 5. Commissioner's role. The commissioner of education, in consultation
32.19with appropriate educational organizations, shall:
32.20(1) upon request, provide technical support for districts and sites with agreements
32.21under this section;
32.22(2) conduct and compile research on the effectiveness of site decision making; and
32.23(3) periodically report on and evaluate the effectiveness of site management
32.24agreements on a statewide basis.
32.25EFFECTIVE DATE.This section is effective the day following final enactment.

32.26    Sec. 8. Minnesota Statutes 2011 Supplement, section 123B.147, subdivision 3, is
32.27amended to read:
32.28    Subd. 3. Duties; evaluation. (a) The principal shall provide administrative,
32.29supervisory, and instructional leadership services, under the supervision of the
32.30superintendent of schools of the district and according to the policies, rules, and
32.31regulations of the school board, for the planning, management, operation, and evaluation
32.32of the education program of the building or buildings to which the principal is assigned.
32.33(b) To enhance a principal's leadership skills and support and improve teaching
32.34practices, school performance, and student achievement, a district must develop and
32.35implement a performance-based system for annually evaluating school principals assigned
33.1to supervise a school building within the district. The evaluation must be designed
33.2to improve teaching and learning by supporting the principal in shaping the school's
33.3professional environment and developing teacher quality, performance, and effectiveness.
33.4The annual evaluation must:
33.5(1) support and improve a principal's instructional leadership, organizational
33.6management, and professional development, and strengthen the principal's capacity in the
33.7areas of instruction, supervision, evaluation, and teacher development;
33.8(2) include formative and summative evaluations;
33.9(3) be consistent with a principal's job description, a district's long-term plans and
33.10goals, and the principal's own professional multiyear growth plans and goals, all of which
33.11must support the principal's leadership behaviors and practices, rigorous curriculum,
33.12school performance, and high-quality instruction;
33.13(4) include on-the-job observations and previous evaluations;
33.14(5) allow surveys to help identify a principal's effectiveness, leadership skills and
33.15processes, and strengths and weaknesses in exercising leadership in pursuit of school
33.16success;
33.17(6) use longitudinal data on student academic growth as an 35 percent of the
33.18evaluation component and incorporate district achievement goals and targets;
33.19(7) be linked to professional development that emphasizes improved teaching and
33.20learning, curriculum and instruction, student learning, and a collaborative professional
33.21culture; and
33.22(8) for principals not meeting standards of professional practice or other criteria
33.23under this subdivision, implement a plan to improve the principal's performance and
33.24specify the procedure and consequence if the principal's performance is not improved.
33.25The provisions of this paragraph are intended to provide districts with sufficient
33.26flexibility to accommodate district needs and goals related to developing, supporting,
33.27and evaluating principals.
33.28EFFECTIVE DATE.This section is effective for the 2013-2014 school year and
33.29later.

33.30    Sec. 9. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 3, is
33.31amended to read:
33.32    Subd. 3. Authorizer. (a) For purposes of this section, the terms defined in this
33.33subdivision have the meanings given them.
34.1    "Application" to receive approval as an authorizer means the proposal an eligible
34.2authorizer submits to the commissioner under paragraph (c) before that authorizer is able
34.3to submit any affidavit to charter to a school.
34.4    "Application" under subdivision 4 means the charter school business plan a
34.5school developer submits to an authorizer for approval to establish a charter school that
34.6documents the school developer's mission statement, school purposes, program design,
34.7financial plan, governance and management structure, and background and experience,
34.8plus any other information the authorizer requests. The application also shall include a
34.9"statement of assurances" of legal compliance prescribed by the commissioner.
34.10    "Affidavit" means a written statement the authorizer submits to the commissioner
34.11for approval to establish a charter school under subdivision 4 attesting to its review and
34.12approval process before chartering a school.
34.13    (b) The following organizations may authorize one or more charter schools:
34.14    (1) a school board; intermediate school district school board; education district
34.15organized under sections 123A.15 to 123A.19;
34.16    (2) a charitable organization under section 501(c)(3) of the Internal Revenue Code
34.17of 1986, excluding a nonpublic sectarian or religious institution, any person other than a
34.18natural person that directly or indirectly, through one or more intermediaries, controls,
34.19is controlled by, or is under common control with the nonpublic sectarian or religious
34.20institution, and any other charitable organization under this clause that in the federal IRS
34.21Form 1023, Part IV, describes activities indicating a religious purpose, that:
34.22    (i) is a member of the Minnesota Council of Nonprofits or the Minnesota Council on
34.23Foundations;
34.24    (ii) is registered with the attorney general's office; and
34.25    (iii) is incorporated in the state of Minnesota and has been operating continuously
34.26for at least five years but does not operate a charter school;
34.27    (3) a Minnesota private college, notwithstanding clause (2), that grants two- or
34.28four-year degrees and is registered with the Minnesota Office of Higher Education under
34.29chapter 136A; community college, state university, or technical college governed by the
34.30Board of Trustees of the Minnesota State Colleges and Universities; or the University
34.31of Minnesota;
34.32    (4) a nonprofit corporation subject to chapter 317A, described in section 317A.905,
34.33and exempt from federal income tax under section 501(c)(6) of the Internal Revenue Code
34.34of 1986, may authorize one or more charter schools if the charter school has operated
34.35for at least three years under a different authorizer and if the nonprofit corporation has
34.36existed for at least 25 years; or
35.1    (5) single-purpose authorizers that are charitable, nonsectarian organizations formed
35.2under section 501(c)(3) of the Internal Revenue Code of 1986 and incorporated in the state
35.3of Minnesota whose sole purpose is to charter schools. Eligible organizations interested
35.4in being approved as an authorizer under this paragraph must submit a proposal to the
35.5commissioner that includes the provisions of paragraph (c) and a five-year financial plan.
35.6Such authorizers shall consider and approve applications using the criteria provided in
35.7subdivision 4 and shall not limit the applications it solicits, considers, or approves to any
35.8single curriculum, learning program, or method.
35.9    (c) An eligible authorizer under this subdivision must apply to the commissioner for
35.10approval as an authorizer before submitting any affidavit to the commissioner to charter
35.11a school. The application for approval as a charter school authorizer must demonstrate
35.12the applicant's ability to implement the procedures and satisfy the criteria for chartering a
35.13school under this section. The commissioner must approve or disapprove an application
35.14within 45 business days of the application deadline. If the commissioner disapproves
35.15the application, the commissioner must notify the applicant of the specific deficiencies
35.16in writing and the applicant then has 20 business days to address the deficiencies to the
35.17commissioner's satisfaction. After the 20 business days expire, the commissioner has 15
35.18business days to make a final decision to approve or disapprove the application. Failing to
35.19address the deficiencies to the commissioner's satisfaction makes an applicant ineligible to
35.20be an authorizer. The commissioner, in establishing criteria for approval, must consider
35.21the applicant's:
35.22    (1) capacity and infrastructure;
35.23    (2) application criteria and process;
35.24    (3) contracting process;
35.25    (4) ongoing oversight and evaluation processes; and
35.26    (5) renewal criteria and processes.
35.27    (d) An applicant must include in its application to the commissioner to be an
35.28approved authorizer at least the following:
35.29    (1) how chartering schools is a way for the organization to carry out its mission;
35.30    (2) a description of the capacity of the organization to serve as an authorizer,
35.31including the personnel who will perform the authorizing duties, their qualifications, the
35.32amount of time they will be assigned to this responsibility, and the financial resources
35.33allocated by the organization to this responsibility;
35.34    (3) a description of the application and review process the authorizer will use to
35.35make decisions regarding the granting of charters;
36.1    (4) a description of the type of contract it will arrange with the schools it charters
36.2that meets the provisions of subdivision 6;
36.3    (5) the process to be used for providing ongoing oversight of the school consistent
36.4with the contract expectations specified in clause (4) that assures that the schools chartered
36.5are complying with both the provisions of applicable law and rules, and with the contract;
36.6    (6) a description of the criteria and process the authorizer will use to grant expanded
36.7applications under subdivision 4, paragraph (j);
36.8    (7) the process for making decisions regarding the renewal or termination of
36.9the school's charter based on evidence that demonstrates the academic, organizational,
36.10and financial competency of the school, including its success in increasing student
36.11achievement and meeting the goals of the charter school agreement; and
36.12    (8) an assurance specifying that the organization is committed to serving as an
36.13authorizer for the full five-year term.
36.14    (e) A disapproved applicant under this section may resubmit an application during a
36.15future application period.
36.16    (f) If the governing board of an approved authorizer that has chartered multiple
36.17schools votes to withdraw as an approved authorizer for a reason unrelated to any
36.18cause under subdivision 23, the authorizer must notify all its chartered schools and the
36.19commissioner in writing by July 15 of its intent to withdraw as an authorizer on June 30 in
36.20the next calendar year. The commissioner may approve the transfer of a charter school
36.21to a new authorizer under this paragraph after the new authorizer submits an affidavit to
36.22the commissioner.
36.23    (g) The authorizer must participate in department-approved training.
36.24    (h) An authorizer that chartered a school before August 1, 2009, must apply by
36.25June 30, 2012, to the commissioner for approval, under paragraph (c), to continue as an
36.26authorizer under this section. For purposes of this paragraph, an authorizer that fails to
36.27submit a timely application is ineligible to charter a school.
36.28    (i) The commissioner shall review an authorizer's performance every five years in
36.29a manner and form determined by the commissioner and may review an authorizer's
36.30performance more frequently at the commissioner's own initiative or at the request of a
36.31charter school operator, charter school board member, or other interested party. The
36.32commissioner, after completing the review, shall transmit a report with findings to the
36.33authorizer. If, consistent with this section, the commissioner finds that an authorizer has
36.34not fulfilled the requirements of this section, the commissioner may subject the authorizer
36.35to corrective action, which may include terminating the contract with the charter school
36.36board of directors of a school it chartered. The commissioner must notify the authorizer
37.1in writing of any findings that may subject the authorizer to corrective action and
37.2the authorizer then has 15 business days to request an informal hearing before the
37.3commissioner takes corrective action. If the commissioner terminates a contract between
37.4an authorizer and a charter school under this paragraph, the commissioner may assist the
37.5charter school in acquiring a new authorizer.
37.6    (j) The commissioner may at any time take corrective action against an authorizer,
37.7including terminating an authorizer's ability to charter a school for:
37.8    (1) failing to demonstrate the criteria under paragraph (c) under which the
37.9commissioner approved the authorizer;
37.10    (2) violating a term of the chartering contract between the authorizer and the charter
37.11school board of directors;
37.12    (3) unsatisfactory performance as an approved authorizer; or
37.13    (4) any good cause shown that provides the commissioner a legally sufficient reason
37.14to take corrective action against an authorizer.

37.15    Sec. 10. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 4, is
37.16amended to read:
37.17    Subd. 4. Formation of school. (a) An authorizer, after receiving an application from
37.18a school developer, may charter a licensed teacher under section 122A.18, subdivision
37.191 , or a group of individuals that includes one or more licensed teachers under section
37.20122A.18, subdivision 1 , to operate a school subject to the commissioner's approval of the
37.21authorizer's affidavit under paragraph (b). The school must be organized and operated as a
37.22nonprofit corporation under chapter 317A and the provisions under the applicable chapter
37.23shall apply to the school except as provided in this section.
37.24    Notwithstanding sections 465.717 and 465.719, a school district, subject to this
37.25section and section 124D.11, may create a corporation for the purpose of establishing a
37.26charter school.
37.27    (b) Before the operators may establish and operate a school, the authorizer must file
37.28an affidavit with the commissioner stating its intent to charter a school. An authorizer
37.29must file a separate affidavit for each school it intends to charter. The affidavit must
37.30state the terms and conditions under which the authorizer would charter a school and
37.31how the authorizer intends to oversee the fiscal and student performance of the charter
37.32school and to comply with the terms of the written contract between the authorizer
37.33and the charter school board of directors under subdivision 6. The commissioner must
37.34approve or disapprove the authorizer's affidavit within 60 business days of receipt of the
37.35affidavit. If the commissioner disapproves the affidavit, the commissioner shall notify
38.1the authorizer of the deficiencies in the affidavit and the authorizer then has 20 business
38.2days to address the deficiencies. If the authorizer does not address deficiencies to the
38.3commissioner's satisfaction, the commissioner's disapproval is final. Failure to obtain
38.4commissioner approval precludes an authorizer from chartering the school that is the
38.5subject of this affidavit.
38.6    (c) The authorizer may prevent an approved charter school from opening for
38.7operation if, among other grounds, the charter school violates this section or does not meet
38.8the ready-to-open standards that are part of the authorizer's oversight and evaluation
38.9process or are stipulated in the charter school contract.
38.10    (d) The operators authorized to organize and operate a school, before entering into a
38.11contract or other agreement for professional or other services, goods, or facilities, must
38.12incorporate as a nonprofit corporation under chapter 317A and must establish a board of
38.13directors composed of at least five members who are not related parties until a timely
38.14election for members of the ongoing charter school board of directors is held according to
38.15the school's articles and bylaws under paragraph (f). A charter school board of directors
38.16must be composed of at least five members who are not related parties. Staff members
38.17employed at the school, including teachers providing instruction under a contract with a
38.18cooperative, and all parents or legal guardians of children enrolled in the school are the
38.19voters eligible to elect the members of the school's board of directors. A charter school
38.20must notify eligible voters of the school board election dates at least 30 days before the
38.21election. Board of director meetings must comply with chapter 13D.
38.22    (e) Upon the request of an individual, the charter school must make available
38.23in a timely fashion A charter school shall publish and maintain on the school's official
38.24Web site: (1) the minutes of meetings of the board of directors, and of members and
38.25committees having any board-delegated authority;, for at least one calendar year from the
38.26date of publication; (2) directory information for members of the board of directors and
38.27committees having board-delegated authority; and (3) identifying and contact information
38.28for the school's authorizer. Identifying and contact information for the school's authorizer
38.29must be included in other school materials made available to the public. Upon request of
38.30an individual, the charter school must also make available in a timely fashion financial
38.31statements showing all operations and transactions affecting income, surplus, and deficit
38.32during the school's last annual accounting period; and a balance sheet summarizing assets
38.33and liabilities on the closing date of the accounting period. A charter school also must post
38.34on its official Web site information identifying its authorizer and indicate how to contact
38.35that authorizer and include that same information about its authorizer in other school
38.36materials that it makes available to the public.
39.1    (f) Every charter school board member shall attend department-approved ongoing
39.2training throughout the member's term on board governance, including training on
39.3the board's role and responsibilities, employment policies and practices, and financial
39.4management. A board member who does not begin the required initial training within six
39.5months after being seated and complete that training within 12 months of being seated on
39.6the board is ineligible to continue to serve as a board member. The school shall include in
39.7its annual report the training attended by each board member during the previous year.
39.8    (g) The ongoing board must be elected before the school completes its third year of
39.9operation. Board elections must be held during the school year but may not be conducted
39.10on days when the school is closed for holidays or vacations. The charter school board of
39.11directors shall be composed of at least five nonrelated members and include: (i) at least one
39.12licensed teacher employed at the school or a licensed teacher providing instruction under
39.13contract between the charter school and a cooperative; (ii) the parent or legal guardian
39.14of a student enrolled in the charter school who is not an employee of the charter school;
39.15and (iii) an interested community member who is not employed by the charter school and
39.16does not have a child enrolled in the school. The board may be a teacher majority board
39.17composed of teachers described in this paragraph. The chief financial officer and the chief
39.18administrator may only serve as ex-officio nonvoting board members and may not serve
39.19as a voting member of the board. Charter school employees shall not serve on the board
39.20unless item (i) applies. Contractors providing facilities, goods, or services to a charter
39.21school shall not serve on the board of directors of the charter school. Board bylaws shall
39.22outline the process and procedures for changing the board's governance model, consistent
39.23with chapter 317A. A board may change its governance model only:
39.24    (1) by a majority vote of the board of directors and the licensed teachers employed
39.25by the school, including licensed teachers providing instruction under a contract between
39.26the school and a cooperative; and
39.27    (2) with the authorizer's approval.
39.28    Any change in board governance must conform with the board structure established
39.29under this paragraph.
39.30    (h) The granting or renewal of a charter by an authorizer must not be conditioned
39.31upon the bargaining unit status of the employees of the school.
39.32    (i) The granting or renewal of a charter school by an authorizer must not be
39.33contingent on the charter school being required to contract, lease, or purchase services
39.34from the authorizer. Any potential contract, lease, or purchase of service from an
39.35authorizer must be disclosed to the commissioner, accepted through an open bidding
39.36process, and be a separate contract from the charter contract. The school must document
40.1the open bidding process. An authorizer must not enter into a contract to provide
40.2management and financial services for a school that it authorizes, unless the school
40.3documents that it received at least two competitive bids.
40.4    (j) An authorizer may permit the board of directors of a charter school to expand
40.5the operation of the charter school to additional sites or to add additional grades at the
40.6school beyond those described in the authorizer's original affidavit as approved by
40.7the commissioner only after submitting a supplemental affidavit for approval to the
40.8commissioner in a form and manner prescribed by the commissioner. The supplemental
40.9affidavit must document that:
40.10    (1) the proposed expansion plan demonstrates need and projected enrollment;
40.11    (2) the expansion is warranted, at a minimum, by longitudinal data demonstrating
40.12students' improved academic performance and growth on statewide assessments under
40.13chapter 120B;
40.14    (3) the charter school is financially sound and the financing it needs to implement
40.15the proposed expansion exists; and
40.16    (4) the charter school has the governance structure and management capacity to
40.17carry out its expansion.
40.18    (k) The commissioner shall have 30 business days to review and comment on the
40.19supplemental affidavit. The commissioner shall notify the authorizer of any deficiencies in
40.20the supplemental affidavit and the authorizer then has 20 business days to address, to the
40.21commissioner's satisfaction, any deficiencies in the supplemental affidavit. The school
40.22may not expand grades or add sites until the commissioner has approved the supplemental
40.23affidavit. The commissioner's approval or disapproval of a supplemental affidavit is final.

40.24    Sec. 11. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 6, is
40.25amended to read:
40.26    Subd. 6. Charter contract. The authorization for a charter school must be in the
40.27form of a written contract signed by the authorizer and the board of directors of the charter
40.28school. The contract must be completed within 45 business days of the commissioner's
40.29approval of the authorizer's affidavit. The authorizer shall submit to the commissioner a
40.30copy of the signed charter contract within ten business days of its execution. The contract
40.31for a charter school must be in writing and contain at least the following:
40.32    (1) a declaration of the purposes in subdivision 1 that the school intends to carry out
40.33and how the school will report its implementation of those purposes;
40.34    (2) a description of the school program and the specific academic and nonacademic
40.35outcomes that pupils must achieve;
41.1    (3) a statement of admission policies and procedures;
41.2    (4) a governance, management, and administration plan for the school;
41.3    (5) signed agreements from charter school board members to comply with all
41.4federal and state laws governing organizational, programmatic, and financial requirements
41.5applicable to charter schools;
41.6    (6) the criteria, processes, and procedures that the authorizer will use for ongoing
41.7oversight of operational, financial, and academic performance;
41.8    (7) the performance evaluation that is a prerequisite for reviewing a charter contract
41.9under subdivision 15;
41.10    (8) types and amounts of insurance liability coverage to be obtained by the charter
41.11school;
41.12    (9) consistent with subdivision 25, paragraph (d), a provision to indemnify and hold
41.13harmless the authorizer and its officers, agents, and employees from any suit, claim,
41.14or liability arising from any operation of the charter school, and the commissioner and
41.15department officers, agents, and employees notwithstanding section 3.736;
41.16    (10) the term of the initial contract, which may be up to three five years plus an
41.17additional preoperational planning year, and up to five years for a renewed contract or a
41.18contract with a new authorizer after a transfer of authorizers, if warranted by the school's
41.19academic, financial, and operational performance;
41.20    (11) how the board of directors or the operators of the charter school will provide
41.21special instruction and services for children with a disability under sections 125A.03
41.22to 125A.24, and 125A.65, a description of the financial parameters within which the
41.23charter school will operate to provide the special instruction and services to children
41.24with a disability;
41.25    (12) the process and criteria the authorizer intends to use to monitor and evaluate the
41.26fiscal and student performance of the charter school, consistent with subdivision 15; and
41.27    (13) the plan for an orderly closing of the school under chapter 317A, if the closure
41.28is a termination for cause, a voluntary termination, or a nonrenewal of the contract, and
41.29that includes establishing the responsibilities of the school board of directors and the
41.30authorizer and notifying the commissioner, authorizer, school district in which the charter
41.31school is located, and parents of enrolled students about the closure, the transfer of student
41.32records to students' resident districts, and procedures for closing financial operations.

41.33    Sec. 12. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 13,
41.34is amended to read:
42.1    Subd. 13. Length of school year. A charter school must provide instruction each
42.2year for at least the number of days hours required by section 120A.41. It may provide
42.3instruction throughout the year according to sections 124D.12 to 124D.127 or 124D.128.

42.4    Sec. 13. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 15,
42.5is amended to read:
42.6    Subd. 15. Review and comment. (a) The authorizer shall provide a formal written
42.7evaluation of the school's performance before the authorizer renews the charter contract.
42.8The department must review and comment on the authorizer's evaluation process at the
42.9time the authorizer submits its application for approval and each time the authorizer
42.10undergoes its five-year review under subdivision 3, paragraph (e).
42.11    (b) An authorizer shall monitor and evaluate the fiscal, operational, and student
42.12performance of the school, and may for this purpose annually assess a charter school
42.13a fee according to paragraph (c). The agreed-upon fee structure must be stated in the
42.14charter school contract.
42.15    (c) The fee that each charter school pays to an authorizer each year is the greater of:
42.16    (1) the basic formula allowance for that year; or
42.17    (2) the lesser of:
42.18    (i) the maximum fee factor times the basic formula allowance for that year; or
42.19    (ii) the fee factor times the basic formula allowance for that year times the charter
42.20school's adjusted marginal cost pupil units for that year. The fee factor equals .005 in fiscal
42.21year 2010, .01 in fiscal year 2011, .013 in fiscal year 2012, and .015 in fiscal years 2013
42.22and later. The maximum fee factor equals 1.5 in fiscal year 2010, 2.0 in fiscal year 2011,
42.233.0 in fiscal year 2012, and 4.0 in fiscal years 2013 and later.
42.24    (d) The department and any charter school it charters must not assess or pay a fee
42.25under paragraphs (b) and (c) An authorizer may not assess a fee for any required services
42.26other than as provided in this subdivision.
42.27    (e) For the preoperational planning period, the authorizer may assess a charter school
42.28a fee equal to the basic formula allowance.
42.29    (f) By September 30 of each year, an authorizer shall submit to the commissioner
42.30a statement of expenditures related to chartering activities during the previous school
42.31year ending June 30. A copy of the statement shall be given to all schools chartered by
42.32the authorizer.

42.33    Sec. 14. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 17a,
42.34is amended to read:
43.1    Subd. 17a. Affiliated nonprofit building corporation. (a) Before a charter school
43.2may organize an affiliated nonprofit building corporation (i) to renovate or purchase an
43.3existing facility to serve as a school or (ii) to construct a new school facility, an authorizer
43.4must submit an affidavit to the commissioner for approval in the form and manner the
43.5commissioner prescribes, and consistent with paragraphs (b) and (c) or (d).
43.6    (b) An affiliated nonprofit building corporation under this subdivision must:
43.7    (1) be incorporated under section 317A and comply with applicable Internal
43.8Revenue Service regulations;
43.9(2) comply with applicable Internal Revenue Service regulations, including
43.10regulations for "supporting organizations" as defined by the Internal Revenue Service;
43.11    (2) (3) submit to the commissioner each fiscal year a list of current board members
43.12and a copy of its annual audit; and
43.13    (3) (4) comply with government data practices law under chapter 13.
43.14An affiliated nonprofit building corporation must not serve as the leasing agent for
43.15property or facilities it does not own. A charter school that leases a facility from an
43.16affiliated nonprofit building corporation that does not own the leased facility is ineligible
43.17to receive charter school lease aid. The state is immune from liability resulting from a
43.18contract between a charter school and an affiliated nonprofit building corporation.
43.19    (c) A charter school may organize an affiliated nonprofit building corporation to
43.20renovate or purchase an existing facility to serve as a school if the charter school:
43.21    (1) has been operating for at least five consecutive school years;
43.22    (2) has had a net positive unreserved general fund balance as of June 30 in the
43.23preceding five fiscal years;
43.24    (3) has a long-range strategic and financial plan;
43.25    (4) completes a feasibility study of available buildings; and
43.26    (5) documents enrollment projections and the need to use an affiliated building
43.27corporation to renovate or purchase an existing facility to serve as a school; and
43.28(6) has a plan for the renovation or purchase, which describes the parameters and
43.29budget for the project.
43.30    (d) A charter school may organize an affiliated nonprofit building corporation to
43.31expand an existing school facility or construct a new school facility if the charter school:
43.32    (1) demonstrates the lack of facilities available to serve as a school;
43.33    (2) has been operating for at least eight consecutive school years;
43.34    (3) has had a net positive unreserved general fund balance as of June 30 in the
43.35preceding eight five fiscal years;
43.36    (4) completes a feasibility study of facility options;
44.1    (5) has a long-range strategic and financial plan that includes enrollment projections
44.2and demonstrates the need for constructing a new school facility; and
44.3    (6) has a plan for the expansion or new school facility, which describes the
44.4parameters and budget for the project.
44.5(e) A charter school or an affiliated nonprofit building corporation organized by a
44.6charter school must not initiate an installment contract for purchase, or a lease agreement,
44.7or solicit bids for new construction, expansion, or remodeling of an educational facility
44.8that requires an expenditure in excess of $1,400,000, unless it meets the criteria in
44.9paragraph (b) and paragraph (c) or (d), as applicable, and receives a positive review and
44.10comment from the commissioner under section 123B.71.

44.11    Sec. 15. Minnesota Statutes 2011 Supplement, section 124D.10, is amended by adding
44.12a subdivision to read:
44.13    Subd. 27. Collaboration between charter school and school district. (a) A charter
44.14school board may voluntarily enter into a two-year, renewable agreement for collaboration
44.15to enhance student achievement with a school district within whose geographic boundary
44.16it operates.
44.17(b) A school district need not be an approved authorizer to enter into a collaboration
44.18agreement with a charter school. A charter school need not be authorized by the school
44.19district with which it seeks to collaborate.
44.20(c) A charter school authorizer is prohibited from requiring a collaboration agreement
44.21as a condition of entering into or renewing a charter contract as defined in subdivision 6.
44.22(d) Nothing in this subdivision or in the collaboration agreement may impact in any
44.23way, the authority or autonomy of the charter school.
44.24(e) Nothing in this subdivision or in the collaboration agreement shall cause the state
44.25to pay twice for the same student, service or facility or otherwise impact state funding, or
44.26the flow thereof, to the school district or the charter school.
44.27(f) The collaboration agreement may include, but need not be limited to,
44.28collaboration regarding facilities, transportation, training, student achievement,
44.29assessments, mutual performance standards and other areas of mutual agreement.
44.30(g) The school district may include the academic performance of the students of a
44.31collaborative charter school site operating within the geographic boundaries of the school
44.32district, for purposes of student assessment and reporting to the state.
44.33(h) Districts, authorizers, or charter schools entering into a collaborative agreement
44.34are equally and collectively subject to the same state and federal accountability measures
44.35for student achievement, school performance outcomes, and school improvement
45.1strategies. The collaborative agreement and all accountability measures must be posted on
45.2the district, charter school, and authorizer Web site.

45.3    Sec. 16. Minnesota Statutes 2011 Supplement, section 124D.98, subdivision 2, is
45.4amended to read:
45.5    Subd. 2. Proficiency aid. In fiscal year 2013 and later, the proficiency aid for each
45.6school is equal to the product of the school's proficiency allowance times the number
45.7of third grade pupils at the school on October 1 of the previous fiscal year. A school's
45.8proficiency allowance is equal to the percentage of students in each building that meet
45.9or exceed proficiency on the third grade reading Minnesota Comprehensive Assessment,
45.10averaged across the previous three test administrations, times $85 $530.

45.11    Sec. 17. Minnesota Statutes 2011 Supplement, section 124D.98, subdivision 3, is
45.12amended to read:
45.13    Subd. 3. Growth aid. In fiscal year 2013 and later, the growth aid for each school is
45.14equal to the product of the school's growth allowance times the number of fourth grade
45.15pupils enrolled at the school on October 1 of the previous fiscal year. A school's growth
45.16allowance is equal to the percentage of students at that school making medium or high
45.17growth, under section 120B.299, on the fourth grade reading Minnesota Comprehensive
45.18Assessment, averaged across the previous three test administrations, times $85 $530.

45.19    Sec. 18. Minnesota Statutes 2011 Supplement, section 126C.40, subdivision 1, is
45.20amended to read:
45.21    Subdivision 1. To lease building or land. (a) When an independent or a special
45.22school district or a group of independent or special school districts finds it economically
45.23advantageous to rent or lease a building or land for any instructional purposes or for
45.24school storage or furniture repair, and it determines that the operating capital revenue
45.25authorized under section 126C.10, subdivision 13, is insufficient for this purpose, it may
45.26apply to the commissioner for permission to make an additional capital expenditure levy
45.27for this purpose. An application for permission to levy under this subdivision must contain
45.28financial justification for the proposed levy, the terms and conditions of the proposed
45.29lease, and a description of the space to be leased and its proposed use.
45.30    (b) The criteria for approval of applications to levy under this subdivision must
45.31include: the reasonableness of the price, the appropriateness of the space to the proposed
45.32activity, the feasibility of transporting pupils to the leased building or land, conformity
45.33of the lease to the laws and rules of the state of Minnesota, and the appropriateness of
46.1the proposed lease to the space needs and the financial condition of the district. The
46.2commissioner must not authorize a levy under this subdivision in an amount greater than
46.3the cost to the district of renting or leasing a building or land for approved purposes.
46.4The proceeds of this levy must not be used for custodial or other maintenance services.
46.5A district may not levy under this subdivision for the purpose of leasing or renting a
46.6district-owned building or site to itself.
46.7    (c) For agreements finalized after July 1, 1997, a district may not levy under this
46.8subdivision for the purpose of leasing: (1) a newly constructed building used primarily
46.9for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed
46.10building addition or additions used primarily for regular kindergarten, elementary, or
46.11secondary instruction that contains more than 20 percent of the square footage of the
46.12previously existing building.
46.13    (d) Notwithstanding paragraph (b), a district may levy under this subdivision for the
46.14purpose of leasing or renting a district-owned building or site to itself only if the amount
46.15is needed by the district to make payments required by a lease purchase agreement,
46.16installment purchase agreement, or other deferred payments agreement authorized by law,
46.17and the levy meets the requirements of paragraph (c). A levy authorized for a district by
46.18the commissioner under this paragraph may be in the amount needed by the district to
46.19make payments required by a lease purchase agreement, installment purchase agreement,
46.20or other deferred payments agreement authorized by law, provided that any agreement
46.21include a provision giving the school districts the right to terminate the agreement
46.22annually without penalty.
46.23    (e) The total levy under this subdivision for a district for any year must not exceed
46.24$150 times the resident pupil units for the fiscal year to which the levy is attributable.
46.25    (f) For agreements for which a review and comment have been submitted to the
46.26Department of Education after April 1, 1998, the term "instructional purpose" as used in
46.27this subdivision excludes expenditures on stadiums.
46.28    (g) The commissioner of education may authorize a school district to exceed the
46.29limit in paragraph (e) if the school district petitions the commissioner for approval. The
46.30commissioner shall grant approval to a school district to exceed the limit in paragraph (e)
46.31for not more than five years if the district meets the following criteria:
46.32    (1) the school district has been experiencing pupil enrollment growth in the
46.33preceding five years;
46.34    (2) the purpose of the increased levy is in the long-term public interest;
46.35    (3) the purpose of the increased levy promotes colocation of government services;
46.36and
47.1    (4) the purpose of the increased levy is in the long-term interest of the district by
47.2avoiding over construction of school facilities.
47.3    (h) A school district that is a member of an intermediate school district may include
47.4in its authority under this section the costs associated with leases of administrative and
47.5classroom space for intermediate school district programs. This authority must not exceed
47.6$43 times the adjusted marginal cost pupil units of the member districts. This authority is
47.7in addition to any other authority authorized under this section.
47.8    (i) In addition to the allowable capital levies in paragraph (a), for taxes payable in
47.92012 to 2023, a district that is a member of the "Technology and Information Education
47.10Systems" data processing joint board, that finds it economically advantageous to enter into
47.11a lease agreement to finance improvements to a building and land for a group of school
47.12districts or special school districts for staff development purposes, may levy for its portion
47.13of lease costs attributed to the district within the total levy limit in paragraph (e). The total
47.14levy authority under this paragraph shall not exceed $632,000.
47.15(j) Notwithstanding paragraph (a), a district may levy under this subdivision for the
47.16purpose of leasing administrative space if the district can demonstrate to the satisfaction of
47.17the commissioner that the lease cost for the administrative space is no greater than the
47.18lease cost for instructional space that the district would otherwise lease. The commissioner
47.19must deny this levy authority unless the district passes a resolution stating its intent to
47.20lease instructional space under this section if the commissioner does not grant authority
47.21under this paragraph. The resolution must also certify that the lease cost for administrative
47.22space under this paragraph is no greater than the lease cost for the district's proposed
47.23instructional lease.
47.24EFFECTIVE DATE.This section is effective for taxes payable in 2013 and later.

47.25    Sec. 19. Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision
47.2616, is amended to read:
47.27    Subd. 16. Student organizations. For student organizations:

47.28		$	725,000	.....	2012
47.29		$	725,000	.....	2013

47.30$49,000 each year is for student organizations serving health occupations (HUSA)
47.31(HOSA).
47.32$46,000 each year is for student organizations serving service occupations (HERO).
47.33$106,000 each year is for student organizations serving trade and industry
47.34occupations (SkillsUSA, secondary and postsecondary).
48.1$101,000 each year is for student organizations serving business occupations
48.2(DECA, BPA, secondary and postsecondary).
48.3$158,000 each year is for student organizations serving agriculture occupations
48.4(FFA, PAS).
48.5$150,000 each year is for student organizations serving family and consumer science
48.6occupations (FCCLA).
48.7$115,000 each year is for student organizations serving marketing occupations
48.8(DEX) (DECA, DECA Collegiate).
48.9Any balance in the first year does not cancel but is available in the second year.

48.10    Sec. 20. ONE-YEAR LICENSES.
48.11Notwithstanding Minnesota Statutes 2010, section 122A.18, subdivision 2, as
48.12amended by Laws 2012, chapter 122, section 2, a person who has:
48.13(1) obtained a one-year license to teach; and
48.14(2) taught during the 2011-2012 school year;
48.15may be approved by the Board of Teaching to continue to teach through the end of the
48.162012-2013 school year.
48.17EFFECTIVE DATE.This section is effective retroactively from February 22, 2012.

48.18    Sec. 21. REPEALER.
48.19Minnesota Statutes 2010, sections 120A.28; 120B.019; 120B.31, subdivision 3;
48.20121A.60, subdivisions 3 and 4; 121A.62; 121A.63; and 122A.18, subdivision 9, are
48.21repealed.

48.22ARTICLE 3

48.23SPECIAL EDUCATION AND OTHER PROGRAMS

48.24    Section 1. Minnesota Statutes 2010, section 125A.14, is amended to read:
48.25125A.14 EXTENDED SCHOOL YEAR.
48.26    A district may provide extended school year services for children with a disability
48.27living within the district and nonresident children temporarily placed in the district
48.28pursuant to section 125A.15 or 125A.16. Prior to March 31 or 30 days after the child
48.29with a disability is placed in the district, whichever is later, the providing district shall
48.30give notice to the district of residence of any nonresident children temporarily placed in
48.31the district pursuant to section 125A.15 or 125A.16, of its intention to provide these
48.32programs. Notwithstanding any contrary provisions in sections section 125A.15 and
48.33125A.16, the district providing the special instruction and services must apply for special
49.1education aid for the extended school year services. The unreimbursed actual cost of
49.2providing the program for nonresident children with a disability, including the cost of
49.3board and lodging, may be billed to the district of the child's residence and must be paid
49.4by the resident district. Transportation costs must be paid by the district responsible
49.5for providing transportation pursuant to section 125A.15 or 125A.16 and transportation
49.6aid must be paid to that district.

49.7    Sec. 2. Minnesota Statutes 2010, section 125A.19, is amended to read:
49.8125A.19 NONRESIDENT EDUCATION; BILLING.
49.9All tuition billing for the education of nonresident children pursuant to sections
49.10125A.03 to 125A.24, 125A.51, 125A.515, and 125A.65 must be done on uniform forms
49.11prescribed by the commissioner. The billing shall contain an itemized statement of costs
49.12that are being charged to the district of residence. One copy of each billing must be filed
49.13with the commissioner.

49.14    Sec. 3. Minnesota Statutes 2010, section 125A.515, subdivision 1, is amended to read:
49.15    Subdivision 1. Approval of education programs. The commissioner shall approve
49.16on-site education programs for placement of children and youth in residential facilities
49.17including detention centers, before being licensed by the Department of Human Services
49.18or the Department of Corrections. Education programs in these facilities shall conform to
49.19state and federal education laws including the Individuals with Disabilities Education Act
49.20(IDEA). This section applies only to placements in facilities licensed by the Department of
49.21Human Services or the Department of Corrections. For purposes of this section, "on-site
49.22education program" means the educational services provided directly on the grounds of
49.23the care and treatment facility to children and youth placed for care and treatment.

49.24    Sec. 4. Laws 2011, First Special Session chapter 11, article 7, section 2, subdivision 8,
49.25is amended to read:
49.26    Subd. 8. Early childhood education scholarships. For grants to early childhood
49.27education scholarships for public or private early childhood preschool programs for
49.28children ages 3 to 5:

49.29

$

4,000,0002,000,000

.....

2013

49.30(a) All children whose parents or legal guardians meet the eligibility requirements
49.31of paragraph (b) established by the commissioner are eligible to receive early childhood
49.32education scholarships under this section.
50.1(b) A parent or legal guardian is eligible for an early childhood education scholarship
50.2if the parent or legal guardian:
50.3(1) has a child three or four years of age on September 1, beginning in calendar
50.4year 2012; and
50.5(2)(i) has income equal to or less than 47 percent of the state median income in the
50.6current calendar year; or
50.7(ii) can document their child's identification through another public funding
50.8eligibility process, including the Free and Reduced Price Lunch Program, National School
50.9Lunch Act, United States Code, title 42, section 1751, part 210; Head Start under federal
50.10Improving Head Start for School Readiness Act of 2007; Minnesota family investment
50.11program under chapter 256J; and child care assistance programs under chapter 119B.
50.12Each year, if this appropriation is insufficient to provide early childhood education
50.13scholarships to all eligible children, the Department of Education shall make scholarships
50.14available on a first-come, first-served basis.
50.15The commissioner of education shall submit a written report to the education
50.16committees of the legislature by January 15, 2012, describing its plan for implementation
50.17of scholarships under this subdivision for the 2012-2013 school year.
50.18Any balance in the first year does not cancel but is available in the second year.
50.19The base for this program is $2,000,000 $3,000,000 each year.

50.20    Sec. 5. APPROPRIATIONS.
50.21    Subdivision 1. Department of Education. The sums indicated in this section are
50.22appropriated from the general fund to the Department of Education for the fiscal years
50.23designated.
50.24    Subd. 2. Parent-child home program. For a grant to the evidence-based early
50.25literacy parent-child home program:

50.26

$

250,000

.....

2013

50.27This is a onetime appropriation.

50.28    Sec. 6. REPEALER.
50.29(a) Minnesota Statutes 2010, sections 125A.16; 125A.80; and 475.53, subdivision
50.305, are repealed.
50.31(b) Minnesota Statutes 2010, sections 124D.135, subdivisions 8 and 9; 124D.16,
50.32subdivisions 6 and 7; and 124D.20, subdivisions 11 and 12, are repealed for revenue for
50.33fiscal year 2014 and later."
51.1Delete the title and insert:

51.2"A bill for an act

51.3relating to education; providing for general education, education excellence,
51.4special education, and other programs; appropriating money;amending
51.5Minnesota Statutes 2010, sections 120A.20, subdivision 2; 120A.22, subdivisions
51.62, 11; 120B.024; 120B.13, subdivisions 1, 4; 122A.40, subdivision 13;
51.7122A.415, subdivision 3; 123B.04; 123B.92, subdivision 3; 124D.08, by adding
51.8a subdivision; 124D.09, subdivisions 9, 12, 22, 24, by adding a subdivision;
51.9124D.4531, subdivision 3, by adding a subdivision; 125A.14; 125A.19;
51.10125A.515, subdivision 1; 126C.10, subdivision 28; 126C.19, subdivision 2;
51.11127A.47, subdivision 1; 135A.101, subdivision 1; 471.975; Minnesota Statutes
51.122011 Supplement, sections 120A.24, subdivisions 1, 2; 120B.023, subdivision
51.132; 120B.07; 120B.08; 120B.09; 120B.12, subdivision 2; 120B.30, subdivision
51.141; 122A.40, subdivision 5; 123B.147, subdivision 3; 124D.09, subdivision
51.157; 124D.10, subdivisions 3, 4, 6, 8, 13, 15, 17a, by adding a subdivision;
51.16124D.4531, subdivision 1; 124D.98, subdivisions 2, 3; 126C.126; 126C.40,
51.17subdivision 1; 127A.45, subdivision 6a; Laws 2011, First Special Session chapter
51.1811, article 2, section 50, subdivision 16; article 5, section 11; article 7, section 2,
51.19subdivision 8; repealing Minnesota Statutes 2010, sections 120A.28; 120B.019;
51.20120B.31, subdivision 3; 121A.60, subdivisions 3, 4; 121A.62; 121A.63;
51.21122A.18, subdivision 9; 124D.09, subdivision 23; 124D.135, subdivisions 8, 9;
51.22124D.16, subdivisions 6, 7; 124D.20, subdivisions 11, 12; 125A.16; 125A.80;
51.23127A.47, subdivision 2; 475.53, subdivision 5."

52.1	We request the adoption of this report and repassage of the bill.
52.2	House Conferees:
52.3	.....		.....
52.4	Pat Garofalo		Paul Anderson
52.5	.....		.....
52.6	Sondra Erickson		Jenifer Loon
52.7	.....
52.8	Denise Dittrich
52.9	Senate Conferees:
52.10	.....		.....
52.11	Gen Olson		David W. Hann
52.12	.....		.....
52.13	Roger C. Chamberlain		LeRoy A. Stumpf
52.14	.....
52.15	Terri E. Bonoff