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HF 2727

1st Engrossment - 87th Legislature (2011 - 2012) Posted on 03/20/2012 05:31pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 03/07/2012
1st Engrossment Posted on 03/20/2012

Current Version - 1st Engrossment

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A bill for an act
relating to education; providing for policy for prekindergarten through grade
12 education, including general education, education excellence, and special
programs; amending Minnesota Statutes 2010, sections 120A.20, subdivision
2; 120A.22, subdivision 11; 122A.415, subdivision 3, by adding subdivisions;
122A.416; 123B.92, subdivision 3; 124D.08, by adding a subdivision; 124D.09,
subdivision 22; 125A.14; 125A.19; 125A.515, subdivision 1; 126C.13,
subdivision 4; 127A.47, subdivision 1; Minnesota Statutes 2011 Supplement,
sections 120A.24, subdivisions 1, 2; 120B.30, subdivision 1; 121A.15,
subdivisions 8, 9; 124D.10, subdivisions 1, 4, 6, 13, 14, 17a, 25; 126C.10,
subdivision 1; Laws 2011, First Special Session chapter 11, article 2, section 50,
subdivision 16; repealing Minnesota Statutes 2010, sections 125A.16; 125A.80;
126C.10, subdivisions 34, 35, 36; 127A.47, subdivision 2.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

GENERAL EDUCATION

Section 1.

Minnesota Statutes 2010, section 120A.20, subdivision 2, is amended to
read:


Subd. 2.

Education deleted text begin anddeleted text end new text begin ,new text end residencenew text begin , and transportationnew text end of homeless.

(a)
Notwithstanding subdivision 1, a district must not deny free admission to a homeless
deleted text begin person of school agedeleted text end new text begin pupilnew text end solely because the district cannot determine that the deleted text begin persondeleted text end new text begin
pupil
new text end is a resident of the district.

(b) The school district of residence for a homeless deleted text begin person of school agedeleted text end new text begin pupilnew text end
shall be the school district in which the deleted text begin homeless shelter or other program, center, or
facility assisting the homeless person is located. The educational services a school
district provides to a homeless person must allow the person to work toward meeting the
graduation standards under section 120B.02.
deleted text end new text begin parent or legal guardian resides, unless: (1)
parental rights have been terminated by court order; (2) the parent or guardian is not
living within the state; or (3) the parent or guardian having legal custody of the child is
an inmate of a Minnesota correctional facility or is a resident of a halfway house under
the supervision of the commissioner of corrections. If any of clauses (1) to (3) apply, the
school district of residence shall be the school district in which the pupil resided when the
qualifying event occurred. If no other district of residence can be established, the school
district of residence shall be the school district in which the pupil currently resides. If
there is a dispute between school districts regarding residency, the district of residence is
the district designated by the commissioner of education.
new text end

new text begin (c) The serving district is responsible for transporting a homeless pupil to and from
the pupil's district of residence. The district may transport from a permanent home in
another district but only through the end of the academic school year. When a pupil is
enrolled in a charter school, the district or school that provides transportation for other
pupils enrolled in the charter school is responsible for providing transportation. When a
homeless student with or without an individualized education program attends a public
school other than an independent or special school district or charter school, the district of
residence is responsible for transportation.
new text end

Sec. 2.

Minnesota Statutes 2010, section 120A.22, subdivision 11, is amended to read:


Subd. 11.

Assessment of performance.

(a) Each year the performance of every
child new text begin ages seven through 16 new text end who is not enrolled in a public school must be assessed using
a nationally norm-referenced standardized achievement examination. The superintendent
of the district in which the child receives instruction and the person in charge of the child's
instruction must agree about the specific examination to be used and the administration
and location of the examination.

(b) To the extent the examination in paragraph (a) does not provide assessment in
all of the subject areas in subdivision 9, the parent must assess the child's performance
in the applicable subject area. This requirement applies only to a parent who provides
instruction and does not meet the requirements of subdivision 10, clause (1), (2), or (3).

(c) If the results of the assessments in paragraphs (a) and (b) indicate that the
child's performance on the total battery score is at or below the 30th percentile or one
grade level below the performance level for children of the same age, the parent must
obtain additional evaluation of the child's abilities and performance for the purpose of
determining whether the child has learning problems.

(d) A child receiving instruction from a nonpublic school, person, or institution that
is accredited by an accrediting agency, recognized according to section 123B.445, or
recognized by the commissioner, is exempt from the requirements of this subdivision.

Sec. 3.

Minnesota Statutes 2011 Supplement, section 120A.24, subdivision 1, is
amended to read:


Subdivision 1.

Reports to superintendent.

(a) The person new text begin or nonpublic school new text end in
charge of providing instruction to a child must submit to the superintendent of the district
in which the child resides the name, birth date, and address of the child; the annual tests
intended to be used under section 120A.22, subdivision 11, if required; the name of each
instructor; and evidence of compliance with one of the requirements specified in section
120A.22, subdivision 10:

(1) by October 1 of the first school year the child receives instruction after reaching
the age of seven;

(2) within 15 days of when a parent withdraws a child from public school after age
seven to deleted text begin homeschooldeleted text end new text begin provide instruction in a nonpublic school that is not accredited
by a state-recognized accrediting agency
new text end ;

(3) within 15 days of moving out of a district; and

(4) by October 1 after a new resident district is established.

(b) The person new text begin or nonpublic school new text end in charge of providing instruction to a child
between the ages of seven and 16 must submit, by October 1 of each school year, a letter
of intent to continue to provide instruction under this section for all students under the
person's new text begin or school's new text end supervision and any changes to the information required in paragraph
(a) for each student.

(c) The superintendent may collect the required information under this section
through an electronic or Web-based format, but must not require electronic submission
of information under this section from the person in charge of reporting under this
subdivision.

Sec. 4.

Minnesota Statutes 2011 Supplement, section 120A.24, subdivision 2, is
amended to read:


Subd. 2.

Availability of documentation.

(a) The person new text begin or nonpublic school new text end in
charge of providing instruction to a child must maintain documentation indicating that the
subjects required in section 120A.22, subdivision 9, are being taught and proof that the
tests under section 120A.22, subdivision 11, have been administered. This documentation
must include class schedules, copies of materials used for instruction, and descriptions of
methods used to assess student achievement.

(b) The parent of a child who enrolls full time in public school after having been
enrolled in a deleted text begin home school under section deleted text begin 120A.22, subdivision 6deleted text end deleted text end new text begin nonpublic school that
is not accredited by a state-recognized accrediting agency
new text end , must provide the enrolling
public school or school district with the child's scores on any tests administered to the
child under section 120A.22, subdivision 11, and other education-related documents the
enrolling school or district requires to determine where the child is placed in school and
what course requirements apply. This paragraph does not apply to a shared time student
who does not seek a public school diploma.

(c) The person new text begin or nonpublic school new text end in charge of providing instruction to a child must
make the documentation in this subdivision available to the county attorney when a case
is commenced under section 120A.26, subdivision 5; chapter 260C; or when diverted
under chapter 260A.

Sec. 5.

Minnesota Statutes 2011 Supplement, section 121A.15, subdivision 8, is
amended to read:


Subd. 8.

Report.

The administrator or other person having general control and
supervision of the elementary or secondary school shall file a report with the commissioner
on all persons enrolled in the school. The superintendent of each district shall file a
report with the commissioner for all persons within the district receiving instruction in a
deleted text begin homedeleted text end new text begin nonpublicnew text end schoolnew text begin that is not accredited by a state-recognized accrediting agencynew text end
in compliance with sections 120A.22 and 120A.24. The parent of persons receiving
instruction in a deleted text begin homedeleted text end new text begin nonpublicnew text end school shall submit the statements as required by
subdivisions 1, 2, 3, 4, and 12 to the superintendent of the district in which the person
resides by October 1 of the first year of their deleted text begin homeschoolingdeleted text end new text begin attending a nonpublic
school that is not accredited by a state-recognized accrediting agency
new text end in Minnesota and
the grade 7 year. The school report must be prepared on forms developed jointly by the
commissioner of health and the commissioner of education and be distributed to the local
districts by the commissioner of health. The school report must state the number of persons
attending the school, the number of persons who have not been immunized according
to subdivision 1 or 2, and the number of persons who received an exemption under
subdivision 3, clause (c) or (d). The school report must be filed with the commissioner of
education within 60 days of the commencement of each new school term. Upon request, a
district must be given a 60-day extension for filing the school report. The commissioner
of education shall forward the report, or a copy thereof, to the commissioner of health
who shall provide summary reports to boards of health as defined in section 145A.02,
subdivision 2
. The administrator or other person having general control and supervision of
the child care facility shall file a report with the commissioner of human services on all
persons enrolled in the child care facility. The child care facility report must be prepared
on forms developed jointly by the commissioner of health and the commissioner of human
services and be distributed to child care facilities by the commissioner of health. The child
care facility report must state the number of persons enrolled in the facility, the number
of persons with no immunizations, the number of persons who received an exemption
under subdivision 3, clause (c) or (d), and the number of persons with partial or full
immunization histories. The child care facility report must be filed with the commissioner
of human services by November 1 of each year. The commissioner of human services
shall forward the report, or a copy thereof, to the commissioner of health who shall
provide summary reports to boards of health as defined in section 145A.02, subdivision
2
. The report required by this subdivision is not required of a family child care or group
family child care facility, for prekindergarten children enrolled in any elementary or
secondary school provided services according to sections 125A.03 and 125A.06, nor for
child care facilities in which at least 75 percent of children in the facility participate on a
onetime only or occasional basis to a maximum of 45 hours per child, per month.

Sec. 6.

Minnesota Statutes 2011 Supplement, section 121A.15, subdivision 9, is
amended to read:


Subd. 9.

Definitions.

As used in this section the following terms have the meanings
given them.

(a) "Elementary or secondary school" includes any public school as defined in
section 120A.05, subdivisions 9, 11, 13, and 17, or nonpublic school, church, or religious
organization, or deleted text begin homedeleted text end new text begin nonpublicnew text end school new text begin that is not accredited by a state-recognized
accrediting agency
new text end in which a child is provided instruction in compliance with sections
120A.22 and 120A.24.

(b) "Person enrolled in any elementary or secondary school" means a person born
after 1956 and enrolled in grades kindergarten through 12, and a child with a disability
receiving special instruction and services as required in sections 125A.03 to 125A.24 and
125A.65, excluding a child being provided services at the home or bedside of the child or
in other states.

(c) "Child care facility" includes those child care programs subject to licensure under
chapter 245A, and Minnesota Rules, chapters 9502 and 9503.

(d) "Family child care" means child care for no more than ten children at one time
of which no more than six are under school age. The licensed capacity must include all
children of any caregiver when the children are present in the residence.

(e) "Group family child care" means child care for no more than 14 children at
any one time. The total number of children includes all children of any caregiver when
the children are present in the residence.

Sec. 7.

Minnesota Statutes 2010, section 122A.415, subdivision 3, is amended to read:


Subd. 3.

Revenue timing.

(a) Districts, intermediate school districts, school sites,
or charter schools with approved applications must receive alternative compensation
revenue for each school year that the district, intermediate school district, school site,
or charter school implements an alternative teacher professional pay system under this
subdivision and section 122A.414. For fiscal year 2007 and later, a qualifying district,
intermediate school district, school site, or charter school that received alternative teacher
compensation aid for the previous fiscal year must receive at least an amount of alternative
teacher compensation revenue equal to the lesser of the amount it received for the previous
fiscal year or the amount it qualifies for under subdivision 1 for the current fiscal year if
the district, intermediate school district, school site, or charter school submits a timely
application and the commissioner determines that the district, intermediate school district,
school site, or charter school continues to implement an alternative teacher professional
pay system, consistent with its application under this section.

(b) The commissioner shall approve applications that comply with subdivision 1,
and section 122A.414, subdivisions 2, paragraph (b), and 2a, if the applicant is a charter
school, in the order in which they are received, select applicants that qualify for this
program, notify school districts, intermediate school districts, school sites, and charter
schools about the program, develop and disseminate application materials, and carry out
other activities needed to implement this section.

(c) deleted text begin For applications approved under this section before August 1 of the fiscal year for
which the aid is paid, the portion of the state total basic alternative teacher compensation
aid entitlement allocated to charter schools must not exceed $522,000 for fiscal year 2006
and $3,374,000 for fiscal year 2007.
deleted text end For fiscal year 2008 and later, the portion of the state
total basic alternative teacher compensation aid entitlement allocated to charter schools
must not exceed the product of $3,374,000 times the ratio of the state total charter school
enrollment for the previous fiscal year to the state total charter school enrollment for deleted text begin the
second previous
deleted text end new text begin fiscalnew text end yearnew text begin 2007new text end . Additional basic alternative teacher compensation aid
may be approved for charter schools after August 1, not to exceed the charter school limit
for the following fiscal year, if the basic alternative teacher compensation aid entitlement
for school districts based on applications approved by August 1 does not expend the
remaining amount under the limit.

Sec. 8.

Minnesota Statutes 2010, section 122A.415, is amended by adding a
subdivision to read:


new text begin Subd. 4. new text end

new text begin Basic alternative teacher compensation aid. new text end

new text begin (a) The basic alternative
teacher compensation aid for a school district with a plan approved under section
122A.414, subdivision 2b, equals 65 percent of the alternative teacher compensation
revenue under subdivision 1. The basic alternative teacher compensation aid for an
intermediate school district or charter school with a plan approved under section
122A.414, subdivisions 2a and 2b, if the recipient is a charter school, equals $260 times
the number of pupils enrolled in the school on October 1 of the previous fiscal year, or on
October 1 of the current fiscal year for a charter school in the first year of operation, times
the ratio of the sum of the alternative teacher compensation aid and alternative teacher
compensation levy for all participating school districts to the maximum alternative teacher
compensation revenue for those districts under subdivision 1.
new text end

new text begin (b) Notwithstanding paragraph (a) and subdivision 1, the state total basic alternative
teacher compensation aid entitlement must not exceed $75,636,000 for fiscal year 2014
and later. The commissioner must limit the amount of alternative teacher compensation
aid approved so as not to exceed these limits.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal year 2014 and later.
new text end

Sec. 9.

Minnesota Statutes 2010, section 122A.415, is amended by adding a
subdivision to read:


new text begin Subd. 5. new text end

new text begin Alternative teacher compensation levy. new text end

new text begin For fiscal year 2014 and later,
the alternative teacher compensation levy for a district receiving basic alternative teacher
compensation aid equals the product of (1) the difference between the district's alternative
teacher compensation revenue and the district's basic alternative teacher compensation
aid times (2) the lesser of one or the ratio of the district's adjusted net tax capacity per
adjusted pupil unit to $5,913.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
new text end

Sec. 10.

Minnesota Statutes 2010, section 122A.415, is amended by adding a
subdivision to read:


new text begin Subd. 6. new text end

new text begin Alternative teacher compensation aid. new text end

new text begin (a) For fiscal year 2014 and later,
a district's alternative teacher compensation equalization aid equals the district's alternative
teacher compensation revenue minus the district's basic alternative teacher compensation
aid minus the district's alternative teacher compensation levy. If a district does not levy
the entire amount permitted, the alternative teacher compensation equalization aid must be
reduced in proportion to the actual amount levied.
new text end

new text begin (b) A district's alternative teacher compensation aid equals the sum of the
district's basic alternative teacher compensation aid and the district's alternative teacher
compensation equalization aid.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
new text end

Sec. 11.

Minnesota Statutes 2010, section 122A.416, is amended to read:


122A.416 ALTERNATIVE TEACHER COMPENSATION REVENUE
FOR PERPICH CENTER FOR ARTS EDUCATION AND MULTIDISTRICT
INTEGRATION COLLABORATIVES.

Notwithstanding sections 122A.413, 122A.414, new text begin and new text end 122A.415, deleted text begin and 126C.10,deleted text end
multidistrict integration collaboratives and the Perpich Center for Arts Education are
eligible to receive alternative teacher compensation revenue as if they were intermediate
school districts. To qualify for alternative teacher compensation revenue, a multidistrict
integration collaborative or the Perpich Center for Arts Education must meet all of the
requirements of sections 122A.413, 122A.414, and 122A.415 that apply to intermediate
school districts, must report its enrollment as of October 1 of each year to the department,
and must annually report its expenditures for the alternative teacher professional pay
system consistent with the uniform financial accounting and reporting standards to the
department by November 30 of each year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
new text end

Sec. 12.

Minnesota Statutes 2010, section 123B.92, subdivision 3, is amended to read:


Subd. 3.

Alternative attendance programs.

(a) A district that enrolls nonresident
pupils in programs under sections 123A.05 to 123A.08, 124D.03, 124D.08, and 124D.68,
must provide authorized transportation to the pupil within the attendance area for the
school that the pupil attends at the same level of service that is provided to resident pupils
within the attendance area. The resident district need not provide or pay for transportation
between the pupil's residence and the district's border.

(b) A district may provide transportation to allow a student who attends a high-need
English language learner program and who resides within the transportation attendance
area of the program to continue in the program until the student completes the highest
grade level offered by the program.

new text begin (c) A homeless nonresident pupil enrolled under section 124D.08, subdivision 2a,
must be provided transportation from the pupil's district of residence to and from the
school of enrollment.
new text end

Sec. 13.

Minnesota Statutes 2010, section 124D.08, is amended by adding a
subdivision to read:


new text begin Subd. 2a. new text end

new text begin Continued enrollment for homeless students. new text end

new text begin Notwithstanding
subdivision 2, a pupil who has been enrolled in a district, who is identified as homeless,
and whose parent or legal guardian moves to another district, may continue to enroll in
the nonresident district without the approval of the board of the nonresident district. The
approval of the board of the pupil's resident district is not required.
new text end

Sec. 14.

Minnesota Statutes 2011 Supplement, section 126C.10, subdivision 1, is
amended to read:


Subdivision 1.

General education revenue.

The general education revenue for
each district equals the sum of the district's basic revenue, extended time revenue, gifted
and talented revenue, small schools revenue, basic skills revenue, training and experience
revenue, secondary sparsity revenue, elementary sparsity revenue, transportation sparsity
revenue, total operating capital revenue, equity revenue, deleted text begin alternative teacher compensation
revenue,
deleted text end and transition revenue.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
new text end

Sec. 15.

Minnesota Statutes 2010, section 126C.13, subdivision 4, is amended to read:


Subd. 4.

General education aid.

For fiscal years deleted text begin 2007deleted text end new text begin 2014new text end and later, a district's
general education aid is the sum of the following amounts:

(1) general education revenue, excluding equity revenue, total operating capital
revenue, deleted text begin alternative teacher compensation revenue,deleted text end and transition revenue;

(2) operating capital aid under section 126C.10, subdivision 13b;

(3) equity aid under section 126C.10, subdivision 30;

(4) deleted text begin alternative teacher compensation aid under section 126C.10, subdivision 36;
deleted text end

deleted text begin (5)deleted text end transition aid under section 126C.10, subdivision 33;

deleted text begin (6)deleted text end new text begin (5)new text end shared time aid under section 126C.01, subdivision 7;

deleted text begin (7)deleted text end new text begin (6)new text end referendum aid under section 126C.17, subdivisions 7 and 7a; and

deleted text begin (8)deleted text end new text begin (7)new text end online learning aid according to section 124D.096.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
new text end

Sec. 16.

Minnesota Statutes 2010, section 127A.47, subdivision 1, is amended to read:


Subdivision 1.

Aid to serving district.

(a) Unless otherwise specifically provided
by law, general education aid must be paid according to this subdivision.

(b) Except as provided in paragraph (c), general education aid must be paid to the
serving district.

(c) If the resident district pays tuition for a pupil under section 123A.18, 123A.22,
123A.30, 123A.32, 123A.44, 123A.488, 123B.88, subdivision 4, 124D.04, 124D.05,
125A.03 to 125A.24, 125A.51, or 125A.65, general education aid, excluding basic skills
revenue under section 126C.10, subdivision 4, must be paid to the resident district.new text begin For
a student enrolled under section 124D.08, subdivision 2a, that is enrolled in other than
an independent or special school district or charter school, the general education revenue
shall be paid to the resident district.
new text end

Sec. 17. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin In Minnesota Statutes and Rules, the revisor of statutes shall substitute the terms
"English learner," "EL," or similar term for "limited English proficient," "English language
learner," "LEP," "ELL," or similar term when referring to early childhood through grade 12
education. The revisor shall also make grammatical changes related to the changes in term.
new text end

Sec. 18. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2010, section 127A.47, subdivision 2, new text end new text begin is repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2010, section 126C.10, subdivisions 34, 35, and 36, new text end new text begin are
repealed effective for fiscal year 2014 and later.
new text end

ARTICLE 2

EDUCATION EXCELLENCE

Section 1.

Minnesota Statutes 2011 Supplement, section 120B.30, subdivision 1, is
amended to read:


Subdivision 1.

Statewide testing.

(a) The commissioner, with advice from experts
with appropriate technical qualifications and experience and stakeholders, consistent with
subdivision 1a, shall include in the comprehensive assessment system, for each grade
level to be tested, state-constructed tests developed from and aligned with the state's
required academic standards under section 120B.021, include multiple choice questions,
and be administered annually to all students in grades 3 through 8. State-developed
high school tests aligned with the state's required academic standards under section
120B.021 and administered to all high school students in a subject other than writing
must include multiple choice questions. The commissioner shall establish one or more
months during which schools shall administer the tests to students each school year.
new text begin Schools that the commissioner identifies for stand-alone field testing or other national
sampling must participate as directed. Superintendents or charter school directors may
appeal in writing to the commissioner for an exemption from a field test based on undue
hardship. The commissioner's decision regarding the appeal is final.
new text end For students enrolled
in grade 8 before the 2005-2006 school year, Minnesota basic skills tests in reading,
mathematics, and writing shall fulfill students' basic skills testing requirements for a
passing state notation. The passing scores of basic skills tests in reading and mathematics
are the equivalent of 75 percent correct for students entering grade 9 based on the
first uniform test administered in February 1998. Students who have not successfully
passed a Minnesota basic skills test by the end of the 2011-2012 school year must pass
the graduation-required assessments for diploma under paragraph (c)new text begin , except that for
the 2012-2013 and 2013-2014 school years only, these students may satisfy the state's
graduation test requirement for math by complying with paragraph (d), clauses (1) and (3)
new text end .

(b) The state assessment system must be aligned to the most recent revision of
academic standards as described in section 120B.023 in the following manner:

(1) mathematics;

(i) grades 3 through 8 beginning in the 2010-2011 school year; and

(ii) high school level beginning in the 2013-2014 school year;

(2) science; grades 5 and 8 and at the high school level beginning in the 2011-2012
school year; and

(3) language arts and reading; grades 3 through 8 and high school level beginning in
the 2012-2013 school year.

(c) For students enrolled in grade 8 in the 2005-2006 school year and later, only the
following options shall fulfill students' state graduation test requirements:

(1) for reading and mathematics:

(i) obtaining an achievement level equivalent to or greater than proficient as
determined through a standard setting process on the Minnesota comprehensive
assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing
score as determined through a standard setting process on the graduation-required
assessment for diploma in grade 10 for reading and grade 11 for mathematics or
subsequent retests;

(ii) achieving a passing score as determined through a standard setting process on the
state-identified language proficiency test in reading and the mathematics test for English
language learners or the graduation-required assessment for diploma equivalent of those
assessments for students designated as English language learners;

(iii) achieving an individual passing score on the graduation-required assessment for
diploma as determined by appropriate state guidelines for students with an individualized
education program or 504 plan;

(iv) obtaining achievement level equivalent to or greater than proficient as
determined through a standard setting process on the state-identified alternate assessment
or assessments in grade 10 for reading and grade 11 for mathematics for students with
an individualized education program; or

(v) achieving an individual passing score on the state-identified alternate assessment
or assessments as determined by appropriate state guidelines for students with an
individualized education program; and

(2) for writing:

(i) achieving a passing score on the graduation-required assessment for diploma;

(ii) achieving a passing score as determined through a standard setting process on
the state-identified language proficiency test in writing for students designated as English
language learners;

(iii) achieving an individual passing score on the graduation-required assessment for
diploma as determined by appropriate state guidelines for students with an individualized
education program or 504 plan; or

(iv) achieving an individual passing score on the state-identified alternate assessment
or assessments as determined by appropriate state guidelines for students with an
individualized education program.

(d) Students enrolled in grade 8 in any school year from the 2005-2006 school
year to the 2009-2010 school year who do not pass the mathematics graduation-required
assessment for diploma under paragraph (c) are eligible to receive a high school diploma
if they:

(1) complete with a passing score or grade all state and local coursework and credits
required for graduation by the school board granting the students their diploma;

(2) participate in district-prescribed academic remediation in mathematics; and

(3) fully participate in at least two retests of the mathematics GRAD test or until
they pass the mathematics GRAD test, whichever comes first. A school, district, or charter
school must place on the high school transcript a student's current pass status for each
subject that has a required graduation assessment.

In addition, the school board granting the students their diplomas may formally
decide to include a notation of high achievement on the high school diplomas of those
graduating seniors who, according to established school board criteria, demonstrate
exemplary academic achievement during high school.

(e) The 3rd through 8th grade and high school test results shall be available to
districts for diagnostic purposes affecting student learning and district instruction and
curriculum, and for establishing educational accountability. The commissioner must
disseminate to the public the high school test results upon receiving those results.

(f) The 3rd through 8th grade and high school tests must be aligned with state
academic standards. The commissioner shall determine the testing process and the order
of administration. The statewide results shall be aggregated at the site and district level,
consistent with subdivision 1a.

(g) In addition to the testing and reporting requirements under this section, the
commissioner shall include the following components in the statewide public reporting
system:

(1) uniform statewide testing of all students in grades 3 through 8 and at the high
school level that provides appropriate, technically sound accommodations or alternate
assessments;

(2) educational indicators that can be aggregated and compared across school
districts and across time on a statewide basis, including average daily attendance, high
school graduation rates, and high school drop-out rates by age and grade level;

(3) state results on the American College Test; and

(4) state results from participation in the National Assessment of Educational
Progress so that the state can benchmark its performance against the nation and other
states, and, where possible, against other countries, and contribute to the national effort
to monitor achievement.

Sec. 2.

Minnesota Statutes 2010, section 124D.09, subdivision 22, is amended to read:


Subd. 22.

Transportation.

new text begin (a) new text end A parent or guardian of a pupil enrolled in a course
for secondary credit may apply to the pupil's district of residence for reimbursement for
transporting the pupil between the secondary school in which the pupil is enrolled or the
pupil's home and the postsecondary institution that the pupil attends. The state shall
provide state aid to a district in an amount sufficient to reimburse the parent or guardian
for the necessary transportation costs when the family's or guardian's income is at or
below the poverty level, as determined by the federal government. The reimbursement
shall be the pupil's actual cost of transportation or 15 cents per mile traveled, whichever
is less. Reimbursement may not be paid for more than 250 miles per week. However,
if the nearest postsecondary institution is more than 25 miles from the pupil's resident
secondary school, the weekly reimbursement may not exceed the reimbursement rate per
mile times the actual distance between the secondary school or the pupil's home and the
nearest postsecondary institution times ten. The state must pay aid to the district according
to this subdivision.

new text begin (b) A parent or guardian of an alternative pupil enrolled in a course for secondary
credit may apply to the pupil's postsecondary institution for reimbursement for
transporting the pupil between the secondary school in which the pupil is enrolled or the
pupil's home and the postsecondary institution in an amount sufficient to reimburse the
parent or guardian for the necessary transportation costs when the family's or guardian's
income is at or below the poverty level, as determined by the federal government. The
amount of the reimbursement shall be determined as in paragraph (a). The state must pay
aid to the postsecondary institution according to this subdivision.
new text end

Sec. 3.

Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 1, is
amended to read:


Subdivision 1.

Purposes.

(a) The new text begin primary new text end purpose of this section is todeleted text begin :
deleted text end

deleted text begin (1)deleted text end improve pupil learning and student achievementdeleted text begin ;deleted text end new text begin . Additional purposes are to:
new text end

deleted text begin (2)deleted text end new text begin (1)new text end increase learning opportunities for pupils;

deleted text begin (3)deleted text end new text begin (2)new text end encourage the use of different and innovative teaching methods;

deleted text begin (4)deleted text end new text begin (3)new text end measure learning outcomes and create different and innovative forms of
measuring outcomes;

deleted text begin (5)deleted text end new text begin (4)new text end establish new forms of accountability for schools; and

deleted text begin (6)deleted text end new text begin (5)new text end create new professional opportunities for teachers, including the opportunity
to be responsible for the learning program at the school site.

(b) This section does not provide a means to keep open a school that a school board
decides to close. However, a school board may endorse or authorize the establishing of
a charter school to replace the school the board decided to close. Applicants seeking a
charter under this circumstance must demonstrate to the authorizer that the charter sought
is substantially different in purpose and program from the school the board closed and
that the proposed charter satisfies the requirements of this subdivision. If the school
board that closed the school authorizes the charter, it must document in its affidavit to the
commissioner that the charter is substantially different in program and purpose from
the school it closed.

An authorizer shall not approve an application submitted by a charter school
developer under subdivision 4, paragraph (a), if the application does not comply with this
subdivision. The commissioner shall not approve an affidavit submitted by an authorizer
under subdivision 4, paragraph (b), if the affidavit does not comply with this subdivision.

Sec. 4.

Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 4, is
amended to read:


Subd. 4.

Formation of school.

(a) An authorizer, after receiving an application from
a school developer, may charter a licensed teacher under section 122A.18, subdivision
1
, or a group of individuals that includes one or more licensed teachers under section
122A.18, subdivision 1, to operate a school subject to the commissioner's approval of the
authorizer's affidavit under paragraph (b). The school must be organized and operated as a
nonprofit corporation under chapter 317A and the provisions under the applicable chapter
shall apply to the school except as provided in this section.

Notwithstanding sections 465.717 and 465.719, a school district, subject to this
section and section 124D.11, may create a corporation for the purpose of establishing a
charter school.

(b) Before the operators may establish and operate a school, the authorizer must file
an affidavit with the commissioner stating its intent to charter a school. An authorizer
must file a separate affidavit for each school it intends to charter. The affidavit must
state the terms and conditions under which the authorizer would charter a school and
how the authorizer intends to oversee the fiscal and student performance of the charter
school and to comply with the terms of the written contract between the authorizer
and the charter school board of directors under subdivision 6. The commissioner must
approve or disapprove the authorizer's affidavit within 60 business days of receipt of the
affidavit. If the commissioner disapproves the affidavit, the commissioner shall notify
the authorizer of the deficiencies in the affidavit and the authorizer then has 20 business
days to address the deficiencies. If the authorizer does not address deficiencies to the
commissioner's satisfaction, the commissioner's disapproval is final. Failure to obtain
commissioner approval precludes an authorizer from chartering the school that is the
subject of this affidavit.

(c) The authorizer may prevent an approved charter school from opening for
operation if, among other grounds, the charter school violates this section or does not meet
the ready-to-open standards that are part of the authorizer's oversight and evaluation
process or are stipulated in the charter school contract.

(d) The operators authorized to organize and operate a school, before entering into a
contract or other agreement for professional or other services, goods, or facilities, must
incorporate as a nonprofit corporation under chapter 317A and must establish a board of
directors composed of at least five members who are not related parties until a timely
election for members of the ongoing charter school board of directors is held according to
the school's articles and bylaws under paragraph (f). A charter school board of directors
must be composed of at least five members who are not related parties. Staff members
employed at the school, including teachers providing instruction under a contract with a
cooperative, and all parents or legal guardians of children enrolled in the school are the
voters eligible to elect the members of the school's board of directors. A charter school
must notify eligible voters of the school board election dates at least 30 days before the
election. Board of director meetings must comply with chapter 13D.

(e) deleted text begin Upon the request of an individual, the charter school must make available
in a timely fashion
deleted text end new text begin A charter school shall publish and maintain on the school's official
Web site: (1)
new text end the minutes of meetings of the board of directors, and of members and
committees having any board-delegated authoritydeleted text begin ;deleted text end new text begin , for at least one calendar year from the
date of publication; (2) directory information for members of the board of directors and
committees having board-delegated authority; and (3) identifying and contact information
for the school's authorizer. Identifying and contact information for the school's authorizer
must be included in other school materials made available to the public. Upon request of
an individual, the charter school must also make available in a timely fashion
new text end financial
statements showing all operations and transactions affecting income, surplus, and deficit
during the school's last annual accounting period; and a balance sheet summarizing assets
and liabilities on the closing date of the accounting period. A charter school also must post
on its official Web site information identifying its authorizer and indicate how to contact
that authorizer and include that same information about its authorizer in other school
materials that it makes available to the public.

(f) Every charter school board member shall attend department-approved ongoing
training throughout the member's term on board governance, including training on
the board's role and responsibilities, employment policies and practices, and financial
management. A board member who does not begin the required initial training within six
months after being seated and complete that training within 12 months of being seated on
the board is ineligible to continue to serve as a board member.

(g) The ongoing board must be elected before the school completes its third year of
operation. Board elections must be held during the school year but may not be conducted
on days when the school is closed for holidays or vacations. The charter school board of
directors shall be composed of at least five nonrelated members and include: (i) at least one
licensed teacher employed at the school or a licensed teacher providing instruction under
contract between the charter school and a cooperative; (ii) the parent or legal guardian
of a student enrolled in the charter school who is not an employee of the charter school;
and (iii) an interested community member who is not employed by the charter school and
does not have a child enrolled in the school. The board may be a teacher majority board
composed of teachers described in this paragraph. The chief financial officer and the chief
administrator may only serve as ex-officio nonvoting board members and may not serve
as a voting member of the board. Charter school employees shall not serve on the board
unless item (i) applies. Contractors providing facilities, goods, or services to a charter
school shall not serve on the board of directors of the charter school. Board bylaws shall
outline the process and procedures for changing the board's governance model, consistent
with chapter 317A. A board may change its governance model only:

(1) by a majority vote of the board of directors and the licensed teachers employed
by the school, including licensed teachers providing instruction under a contract between
the school and a cooperative; and

(2) with the authorizer's approval.

Any change in board governance must conform with the board structure established
under this paragraph.

(h) The granting or renewal of a charter by an authorizer must not be conditioned
upon the bargaining unit status of the employees of the school.

(i) The granting or renewal of a charter school by an authorizer must not be
contingent on the charter school being required to contract, lease, or purchase services
from the authorizer. Any potential contract, lease, or purchase of service from an
authorizer must be disclosed to the commissioner, accepted through an open bidding
process, and be a separate contract from the charter contract. The school must document
the open bidding process. An authorizer must not enter into a contract to provide
management and financial services for a school that it authorizes, unless the school
documents that it received at least two competitive bids.

(j) An authorizer may permit the board of directors of a charter school to expand
the operation of the charter school to additional sites or to add additional grades at the
school beyond those described in the authorizer's original affidavit as approved by
the commissioner only after submitting a supplemental affidavit for approval to the
commissioner in a form and manner prescribed by the commissioner. The supplemental
affidavit must document that:

(1) the proposed expansion plan demonstrates need and projected enrollment;

(2) the expansion is warranted, at a minimum, by longitudinal data demonstrating
students' improved academic performance and growth on statewide assessments under
chapter 120B;

(3) the charter school is financially sound and the financing it needs to implement
the proposed expansion exists; and

(4) the charter school has the governance structure and management capacity to
carry out its expansion.

(k) The commissioner shall have 30 business days to review and comment on the
supplemental affidavit. The commissioner shall notify the authorizer of any deficiencies in
the supplemental affidavit and the authorizer then has 20 business days to address, to the
commissioner's satisfaction, any deficiencies in the supplemental affidavit. The school
may not expand grades or add sites until the commissioner has approved the supplemental
affidavit. The commissioner's approval or disapproval of a supplemental affidavit is final.

Sec. 5.

Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 6, is
amended to read:


Subd. 6.

Charter contract.

The authorization for a charter school must be in the
form of a written contract signed by the authorizer and the board of directors of the charter
school. The contract must be completed within 45 business days of the commissioner's
approval of the authorizer's affidavit. The authorizer shall submit to the commissioner a
copy of the signed charter contract within ten business days of its execution. The contract
for a charter school must be in writing and contain at least the following:

(1) a declaration of the new text begin additional new text end purposes in subdivision 1 that the school intends
to carry out and how the school will report its implementation of new text begin the primary purpose and
new text end those new text begin additional new text end purposes;

(2) a description of the school program and the specific academic and nonacademic
outcomes that pupils must achieve;

(3) a statement of admission policies and procedures;

(4) a governance, management, and administration plan for the school;

(5) signed agreements from charter school board members to comply with all
federal and state laws governing organizational, programmatic, and financial requirements
applicable to charter schools;

(6) the criteria, processes, and procedures that the authorizer will use for ongoing
oversight of operational, financial, and academic performance;

(7) the performance evaluation that is a prerequisite for reviewing a charter contract
under subdivision 15;

(8) types and amounts of insurance liability coverage to be obtained by the charter
school;

(9) consistent with subdivision 25, paragraph (d), a provision to indemnify and hold
harmless the authorizer and its officers, agents, and employees from any suit, claim,
or liability arising from any operation of the charter school, and the commissioner and
department officers, agents, and employees notwithstanding section 3.736;

(10) the term of the initial contract, which may be up to three years plus an additional
preoperational planning year, and up to five years for a renewed contract or a contract with
a new authorizer after a transfer of authorizers, if warranted by the school's academic,
financial, and operational performance;

(11) how the board of directors or the operators of the charter school will provide
special instruction and services for children with a disability under sections 125A.03
to 125A.24, and 125A.65, a description of the financial parameters within which the
charter school will operate to provide the special instruction and services to children
with a disability;

(12) the process and criteria the authorizer intends to use to monitor and evaluate the
fiscal and student performance of the charter school, consistent with subdivision 15;

new text begin (13) the specific conditions for contract renewal which identifies performance
under the primary purpose of subdivision 1 as the most important factor in determining
contract renewal;
new text end and

deleted text begin (13)deleted text end new text begin (14)new text end the plan for an orderly closing of the school under chapter 317A, if the
closure is a termination for cause, a voluntary termination, or a nonrenewal of the contract,
and that includes establishing the responsibilities of the school board of directors and the
authorizer and notifying the commissioner, authorizer, school district in which the charter
school is located, and parents of enrolled students about the closure, the transfer of student
records to students' resident districts, and procedures for closing financial operations.

Sec. 6.

Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 13, is
amended to read:


Subd. 13.

Length of school year.

A charter school must provide instruction each
year for at least the number of deleted text begin daysdeleted text end new text begin hoursnew text end required by section 120A.41. It may provide
instruction throughout the year according to sections 124D.12 to 124D.127 or 124D.128.

Sec. 7.

Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 14, is
amended to read:


Subd. 14.

Annual public reports.

A charter school must publish an annual report
approved by the board of directors. The annual report must at least include information
on school enrollment, student attrition, governance and management, staffing, finances,
academic performance, operational performance, innovative practices and implementation,
and future plans. A charter school must distribute the annual report by publication, mail,
or electronic means to the deleted text begin commissioner,deleted text end authorizer, school employees, and parents and
legal guardians of students enrolled in the charter school and must also post the report on
the charter school's official Web site. The reports are public data under chapter 13.

Sec. 8.

Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 17a,
is amended to read:


Subd. 17a.

Affiliated nonprofit building corporation.

(a) Before a charter school
may organize an affiliated nonprofit building corporation (i) to renovate or purchase an
existing facility to serve as a school or (ii) to construct a new school facility, an authorizer
must submit an affidavit to the commissioner for approval in the form and manner the
commissioner prescribes, and consistent with paragraphs (b) and (c) or (d).

(b) An affiliated nonprofit building corporation under this subdivision must:

(1) be incorporated under section 317A and comply with applicable Internal
Revenue Service regulations;

(2) submit to the commissioner each fiscal year a list of current board members
and a copy of its annual audit; and

(3) comply with government data practices law under chapter 13.

An affiliated nonprofit building corporation must not serve as the leasing agent for
property or facilities it does not own. A charter school that leases a facility from an
affiliated nonprofit building corporation that does not own the leased facility is ineligible
to receive charter school lease aid. The state is immune from liability resulting from a
contract between a charter school and an affiliated nonprofit building corporation.

(c) A charter school may organize an affiliated nonprofit building corporation to
renovate or purchase an existing facility to serve as a school if the charter school:

(1) has been operating for at least five consecutive school years;

(2) has had a net positive unreserved general fund balance as of June 30 in the
preceding five fiscal years;

(3) has a long-range strategic and financial plan;

(4) completes a feasibility study of available buildings; deleted text begin and
deleted text end

(5) documents enrollment projections and the need to use an affiliated building
corporation to renovate or purchase an existing facility to serve as a schoolnew text begin ; and
new text end

new text begin (6) has a plan for the renovation or purchase, which describes the parameters and
budget for the project
new text end .

(d) A charter school may organize an affiliated nonprofit building corporation tonew text begin
expand an existing school facility or
new text end construct a new school facility if the charter school:

(1) demonstrates the lack of facilities available to serve as a school;

(2) has been operating for at least eight consecutive school years;

(3) has had a net positive unreserved general fund balance as of June 30 in the
preceding eight fiscal years;

(4) completes a feasibility study of facility options;

(5) has a long-range strategic and financial plan that includes enrollment projections
and demonstrates the need for constructing a new school facility; and

(6) has a new text begin plan for the expansion or new school facility, which describes the
parameters and budget for the project.
new text end

new text begin (e) A charter school or an affiliated nonprofit building corporation organized by a
charter school must not initiate an installment contract for purchase, or a lease agreement,
or solicit bids for new construction, expansion, or remodeling of an educational facility
that requires an expenditure in excess of $1,400,000, unless it meets the criteria in
paragraph (b) and paragraph (c) or (d), as applicable, and receives a
new text end positive review and
comment from the commissioner under section 123B.71.

Sec. 9.

Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 25, is
amended to read:


Subd. 25.

Extent of specific legal authority.

(a) The board of directors of a charter
school may sue and be sued.

(b) The board may not levy taxes or issue bonds.

(c) The commissioner, an authorizer, members of the board of an authorizer in
their official capacity, and employees of an authorizer are immune from civil or criminal
liability with respect to all activities related to a charter school they approve or authorize.
The board of directors shall obtain at least the amount of and types of insurance up to the
applicable tort liability limits under chapter 466. The charter school board must submit
a copy of the insurance policy to its authorizer deleted text begin and the commissionerdeleted text end before starting
operations. The charter school board must submit changes in its insurance carrier or policy
to its authorizer and the commissioner within 20 business days of the change.

(d) Notwithstanding section 3.736, the charter school shall assume full liability for
its activities and indemnify and hold harmless the authorizer and its officers, agents, and
employees from any suit, claim, or liability arising from any operation of the charter school
and the commissioner and department officers, agents, and employees. A charter school
is not required to indemnify or hold harmless a state employee if the state would not be
required to indemnify and hold the employee harmless under section 3.736, subdivision 9.

Sec. 10.

Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision
16, is amended to read:


Subd. 16.

Student organizations.

For student organizations:

$
725,000
.....
2012
$
725,000
.....
2013

$49,000 each year is for student organizations serving health occupations deleted text begin (HUSA)deleted text end new text begin
(HOSA)
new text end .

$46,000 each year is for student organizations serving service occupations (HERO).

$106,000 each year is for student organizations serving trade and industry
occupations (SkillsUSA, secondary and postsecondary).

$101,000 each year is for student organizations serving business occupations
(deleted text begin DECA,deleted text end BPA, secondary and postsecondary).

$158,000 each year is for student organizations serving agriculture occupations
(FFA, PAS).

$150,000 each year is for student organizations serving family and consumer science
occupations (FCCLA).

$115,000 each year is for student organizations serving marketing occupations
deleted text begin (DEX)deleted text end new text begin (DECA, DECA Collegiate)new text end .

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

ARTICLE 3

SPECIAL PROGRAMS

Section 1.

Minnesota Statutes 2010, section 125A.14, is amended to read:


125A.14 EXTENDED SCHOOL YEAR.

A district may provide extended school year services for children with a disability
living within the district and nonresident children temporarily placed in the district
pursuant to section 125A.15 deleted text begin or 125A.16deleted text end . Prior to March 31 or 30 days after the child
with a disability is placed in the district, whichever is later, the providing district shall
give notice to the district of residence of any nonresident children temporarily placed in
the district pursuant to section 125A.15 deleted text begin or 125A.16deleted text end , of its intention to provide these
programs. Notwithstanding any contrary provisions in deleted text begin sectionsdeleted text end new text begin sectionnew text end 125A.15 deleted text begin and
125A.16
deleted text end , the district providing the special instruction and services must apply for special
education aid for the extended school year services. The unreimbursed actual cost of
providing the program for nonresident children with a disability, including the cost of
board and lodging, may be billed to the district of the child's residence and must be paid
by the resident district. Transportation costs must be paid by the district responsible
for providing transportation pursuant to section 125A.15 deleted text begin or 125A.16deleted text end and transportation
aid must be paid to that district.

Sec. 2.

Minnesota Statutes 2010, section 125A.19, is amended to read:


125A.19 NONRESIDENT EDUCATION; BILLING.

All tuition billing for the education of nonresident children pursuant to sections
125A.03 to 125A.24new text begin , 125A.51, 125A.515,new text end and 125A.65 must be done on uniform forms
prescribed by the commissioner. The billing shall contain an itemized statement of costs
that are being charged to the district of residence. deleted text begin One copy of each billing must be filed
with the commissioner.
deleted text end

Sec. 3.

Minnesota Statutes 2010, section 125A.515, subdivision 1, is amended to read:


Subdivision 1.

Approval of education programs.

The commissioner shall approve
new text begin on-site new text end education programs for placement of children and youth in residential facilities
including detention centers, before being licensed by the Department of Human Services
or the Department of Corrections. Education programs in these facilities shall conform to
state and federal education laws including the Individuals with Disabilities Education Act
(IDEA). This section applies only to placements in facilities licensed by the Department of
Human Services or the Department of Corrections.new text begin For purposes of this section, "on-site
education program" means the educational services provided directly on the grounds of
the care and treatment facility to children and youth placed for care and treatment.
new text end

Sec. 4. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2010, sections 125A.16; and 125A.80, new text end new text begin are repealed.
new text end