1.1                          A bill for an act 
  1.2             relating to education; providing for kindergarten 
  1.3             through grade 12 education policy; appropriating 
  1.4             money; amending Minnesota Statutes 2002, sections 
  1.5             120A.05, subdivision 11; 120A.41; 121A.23; 122A.18, 
  1.6             subdivision 7a; 122A.22; 122A.40, subdivision 5; 
  1.7             122A.413; 122A.46, subdivision 9; 123B.14, subdivision 
  1.8             1; 123B.57, subdivision 2; 123B.59, subdivision 2; 
  1.9             123B.62; 123B.71, subdivisions 4, 9; 124D.10, 
  1.10            subdivisions 3, 20; 126C.19, by adding a subdivision; 
  1.11            128C.02, subdivision 1; 354.094, subdivision 1; 
  1.12            proposing coding for new law in Minnesota Statutes, 
  1.13            chapters 122A; 123B; 125B; repealing Minnesota 
  1.14            Statutes 2002, sections 122A.414; 122A.415; 128C.01, 
  1.15            subdivision 5; 128C.02, subdivision 8; 128C.13. 
  1.16  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.17     Section 1.  Minnesota Statutes 2002, section 120A.05, 
  1.18  subdivision 11, is amended to read: 
  1.19     Subd. 11.  [MIDDLE SCHOOL.] "Middle school" means any 
  1.20  school other than a secondary school giving an approved course 
  1.21  of study in a minimum of three two consecutive grades above 4th 
  1.22  but below 10th with building, equipment, courses of study, class 
  1.23  schedules, enrollment, and staff meeting the standards 
  1.24  established by the commissioner of children, families, and 
  1.25  learning. 
  1.26     <b>[EFFECTIVE DATE.]</b> This section is effective for the 
  1.27  2003-2004 school year and later. 
  1.28     Sec. 2.  Minnesota Statutes 2002, section 120A.41, is 
  1.29  amended to read: 
  1.30     120A.41 [LENGTH OF SCHOOL YEAR; DAYS OF INSTRUCTION.] 
  2.1      A school board's annual school calendar must include at 
  2.2   least three additional days of student instruction or staff 
  2.3   development training related to implementing section 120B.031, 
  2.4   subdivision 1, paragraph (f), beyond the number of days of 
  2.5   student instruction the board formally adopted as its school 
  2.6   calendar at the beginning of the 1996-1997 school year. 
  2.7      <b>[EFFECTIVE DATE.]</b> This section is effective for the 
  2.8   2003-2004 school year. 
  2.9      Sec. 3.  Minnesota Statutes 2002, section 121A.23, is 
  2.10  amended to read: 
  2.11     121A.23 [PROGRAMS TO PREVENT AND REDUCE THE RISKS OF 
  2.12  SEXUALLY TRANSMITTED INFECTIONS AND DISEASES.] 
  2.13     Subdivision 1.  [SEXUALLY TRANSMITTED DISEASES INFECTION 
  2.14  PROGRAM.] The commissioner of children, families, and learning, 
  2.15  in consultation with the commissioner of health, shall assist 
  2.16  districts in developing and implementing a program to prevent 
  2.17  and reduce the risk of sexually transmitted infections and 
  2.18  diseases, including, but not exclusive limited to, human 
  2.19  immune deficiency virus and human papilloma virus.  Each 
  2.20  district must have a program that includes at least: 
  2.21     (1) planning materials, guidelines, and other technically 
  2.22  accurate and updated information; 
  2.23     (2) a comprehensive, technically accurate, and updated 
  2.24  curriculum that includes emphasizes, but is not limited to, 
  2.25  helping students to abstain from sexual activity until marriage; 
  2.26     (3) cooperation and coordination among districts and SCs; 
  2.27     (4) a targeting of adolescents, especially those who may be 
  2.28  at high risk of contracting sexually transmitted infections and 
  2.29  diseases, for prevention efforts; 
  2.30     (5) involvement of parents and other community members; 
  2.31     (6) in-service training for appropriate district staff and 
  2.32  school board members; 
  2.33     (7) collaboration with state agencies and organizations 
  2.34  having a sexually transmitted infection and disease prevention 
  2.35  or sexually transmitted infection and disease risk reduction 
  2.36  program; 
  3.1      (8) collaboration with local community health services, 
  3.2   agencies and organizations having a sexually transmitted 
  3.3   infection and disease prevention or sexually transmitted 
  3.4   infection and disease risk reduction program; and 
  3.5      (9) participation by state and local student organizations. 
  3.6      The department may provide assistance at a neutral site to 
  3.7   a nonpublic school participating in a district's program.  
  3.8   District programs must not conflict with the health and wellness 
  3.9   curriculum developed under Laws 1987, chapter 398, article 5, 
  3.10  section 2, subdivision 7. 
  3.11     If a district fails to develop and implement a program to 
  3.12  prevent and reduce the risk of sexually transmitted infection 
  3.13  and disease, the department must assist the service cooperative 
  3.14  in the region serving that district to develop or implement the 
  3.15  program. 
  3.16     Subd. 2.  [FUNDING SOURCES.] Districts may accept funds for 
  3.17  sexually transmitted infection and disease prevention programs 
  3.18  developed and implemented under this section from public and 
  3.19  private sources including public health funds and foundations, 
  3.20  department professional development funds, federal block grants 
  3.21  or other federal or state grants. 
  3.22     Sec. 4.  Minnesota Statutes 2002, section 122A.18, 
  3.23  subdivision 7a, is amended to read: 
  3.24     Subd. 7a.  [PERMISSION TO SUBSTITUTE TEACH.] (a) The board 
  3.25  of teaching may allow a person who is enrolled in and making 
  3.26  satisfactory progress in a board-approved teacher program and 
  3.27  who has successfully completed student teaching to be employed 
  3.28  as a short-call substitute teacher.  
  3.29     (b) The board of teaching may issue a lifetime qualified 
  3.30  short-call substitute teaching license to a person who: 
  3.31     (1) was a qualified teacher under section 122A.16 while 
  3.32  holding a continuing five-year teaching license issued by the 
  3.33  board, and receives a retirement annuity from the teachers 
  3.34  retirement association, the Minneapolis teachers retirement fund 
  3.35  association, the St. Paul teachers retirement fund association, 
  3.36  or the Duluth teachers retirement fund association; 
  4.1      (2) holds an out-of-state teaching license and receives a 
  4.2   retirement annuity as a result of the person's teaching 
  4.3   experience; or 
  4.4      (3) held a continuing five-year license issued by the 
  4.5   board, taught at least three school years in an accredited 
  4.6   nonpublic school in Minnesota, and receives a retirement annuity 
  4.7   as a result of the person's teaching experience. 
  4.8   A person holding a lifetime qualified short-call substitute 
  4.9   teaching license is not required to complete continuing 
  4.10  education clock hours.  A person holding this license may 
  4.11  reapply to the board for a continuing five-year license and must 
  4.12  again complete continuing education clock hours one school year 
  4.13  after receiving the continuing five-year license. 
  4.14     <b>[EFFECTIVE DATE.]</b> This section is effective for the 
  4.15  2003-2004 school year. 
  4.16     Sec. 5.  Minnesota Statutes 2002, section 122A.22, is 
  4.17  amended to read: 
  4.18     122A.22 [DISTRICT RECORDING VERIFICATION OF TEACHER 
  4.19  LICENSES.] 
  4.20     No person shall be accounted a qualified teacher until the 
  4.21  person has filed for record with the district superintendent 
  4.22  where the person intends to teach a license, or certified copy 
  4.23  of a license, authorizing the person to teach school in the 
  4.24  district school system school district or charter school 
  4.25  contracting with the person for teaching services verifies 
  4.26  through the Minnesota education licensing system available on 
  4.27  the department Web site that person is a qualified teacher, 
  4.28  consistent with sections 122A.16 and 122A.44, subdivision 1. 
  4.29     <b>[EFFECTIVE DATE.]</b> This section is effective for the 
  4.30  2003-2004 school year and later. 
  4.31     Sec. 6.  Minnesota Statutes 2002, section 122A.40, 
  4.32  subdivision 5, is amended to read: 
  4.33     Subd. 5.  [PROBATIONARY PERIOD.] (a) The first three 
  4.34  consecutive years of a teacher's first teaching experience in 
  4.35  Minnesota in a single district is deemed to be a probationary 
  4.36  period of employment, and after completion thereof, the 
  5.1   probationary period in each district in which the teacher is 
  5.2   thereafter employed shall be one year.  The school board must 
  5.3   adopt a plan for written evaluation of teachers during the 
  5.4   probationary period.  Evaluation must occur at least three times 
  5.5   each year for a teacher performing services on 120 or more 
  5.6   school days, at least two times each year for a teacher 
  5.7   performing services on 60 to 119 school days, and at least one 
  5.8   time each year for a teacher performing services on fewer than 
  5.9   60 school days.  The evaluation must be conducted during the 
  5.10  school year with at least one evaluation completed by March 1 if 
  5.11  the teacher is performing services in excess of 120 days in that 
  5.12  school year.  Days devoted to parent-teacher conferences, 
  5.13  teachers' workshops, and other staff development opportunities 
  5.14  and days on which a teacher is absent from school must not be 
  5.15  included in determining the number of school days on which a 
  5.16  teacher performs services.  Except as otherwise provided in 
  5.17  paragraph (b), during the probationary period any annual 
  5.18  contract with any teacher may or may not be renewed as the 
  5.19  school board shall see fit.  However, failure to provide the 
  5.20  evaluation required by March 1 under this section will result in 
  5.21  the automatic extension of that teacher's probationary period 
  5.22  for one year, unless the school board decides not to renew the 
  5.23  teacher's contract because of financial limitations of the 
  5.24  district.  An additional failure to provide the March 1 
  5.25  evaluation results in the automatic renewal of that teacher's 
  5.26  contract, unless the school board decides not to renew the 
  5.27  teacher's contract because of financial limitations in the 
  5.28  district.  The board must give any such teacher whose contract 
  5.29  it declines to renew for the following school year written 
  5.30  notice to that effect before July 1.  If the teacher requests 
  5.31  reasons for any nonrenewal of a teaching contract, the board 
  5.32  must give the teacher its reason in writing, including a 
  5.33  statement that appropriate supervision was furnished describing 
  5.34  the nature and the extent of such supervision furnished the 
  5.35  teacher during the employment by the board, within ten days 
  5.36  after receiving such request.  The school board may, after a 
  6.1   hearing held upon due notice, discharge a teacher during the 
  6.2   probationary period for cause, effective immediately, under 
  6.3   section 122A.44.  
  6.4      (b) A board must discharge a probationary teacher, 
  6.5   effective immediately, upon receipt of notice under section 
  6.6   122A.20, subdivision 1, paragraph (b), that the teacher's 
  6.7   license has been revoked due to a conviction for child abuse or 
  6.8   sexual abuse. 
  6.9      Sec. 7.  Minnesota Statutes 2002, section 122A.413, is 
  6.10  amended to read: 
  6.11     122A.413 [EDUCATIONAL IMPROVEMENT PLAN.] 
  6.12     Subdivision 1.  [QUALIFYING PLAN.] A district may develop 
  6.13  an educational improvement plan for the purpose of qualifying 
  6.14  for alternative teacher compensation principled pay practices 
  6.15  aid under sections 122A.414 and 122A.415 section 122A.4142.  The 
  6.16  plan must include measures for improving school district, school 
  6.17  site, teacher, and individual student performance.  
  6.18     Subd. 2.  [PLAN COMPONENTS.] The educational improvement 
  6.19  plan must be approved by the school board and have at least 
  6.20  these elements: 
  6.21     (1) assessment and evaluation tools to measure student 
  6.22  performance and progress; 
  6.23     (2) performance goals and benchmarks for improvement; 
  6.24     (3) measures of student attendance and completion rates; 
  6.25     (4) a rigorous professional development system, consistent 
  6.26  with section 122A.60, that is aligned with educational 
  6.27  improvement, designed to achieve teaching quality improvement, 
  6.28  and consistent with clearly defined research-based standards; 
  6.29     (5) measures of student, family, and community involvement 
  6.30  and satisfaction; 
  6.31     (6) a data system about students and their academic 
  6.32  progress that provides parents and the public with 
  6.33  understandable information; and 
  6.34     (7) a teacher induction and mentoring program for 
  6.35  probationary teachers that provides continuous learning and 
  6.36  sustained teacher support.  The process for developing the plan 
  7.1   must involve district teachers; and 
  7.2      (8) substantial teacher participation in developing the 
  7.3   plan, including teachers selected by the exclusive 
  7.4   representative of the teachers. 
  7.5      Subd. 3.  [SCHOOL SITE ACCOUNTABILITY.] A district that 
  7.6   develops a plan under subdivisions 1 and 2 must ensure that each 
  7.7   school site develops a board-approved educational improvement 
  7.8   plan that is aligned with the district educational improvement 
  7.9   plan under subdivision 2 and developed with teacher 
  7.10  participation consistent with subdivision 2, clause (8).  While 
  7.11  a site plan must be consistent with the district educational 
  7.12  improvement plan, it may establish performance goals and 
  7.13  benchmarks that meet or exceed those of the district.  The 
  7.14  process for developing the plan must involve site teachers.  
  7.15     <b>[EFFECTIVE DATE.]</b> This section is effective for fiscal year 
  7.16  2005 and thereafter. 
  7.17     Sec. 8.  [122A.4142] [PRINCIPLED PAY PRACTICES FOR 
  7.18  TEACHERS.] 
  7.19     Subdivision 1.  [PRINCIPLED PAY PRACTICES SYSTEM.] A school 
  7.20  district and the exclusive representative of the teachers may 
  7.21  adopt, by agreement, principled pay practices under subdivision 
  7.22  2 to provide incentives to attract and retain high-quality 
  7.23  teachers, encourage high-quality teachers to accept difficult 
  7.24  assignments, encourage teachers to improve their knowledge and 
  7.25  skills, and support teachers' roles in improving students' 
  7.26  educational achievement. 
  7.27     Subd. 2.  [ELIGIBILITY FOR PRINCIPLED PAY PRACTICES 
  7.28  AID.] To be eligible for principled pay practices aid, a school 
  7.29  district must submit to the department: 
  7.30     (a) A districtwide or site-based educational improvement 
  7.31  plan as described in section 122A.413. 
  7.32     (b) An executed collective bargaining agreement that 
  7.33  contains at least the following elements: 
  7.34     (1) a description of the conditions or actions necessary 
  7.35  for career advancement and additional compensation; 
  7.36     (2) compensation provisions that base at least 60 percent 
  8.1   of any increase in compensation on performance and not on years 
  8.2   of service or the attainment of additional education or 
  8.3   training; 
  8.4      (3) career advancement options for teachers retaining 
  8.5   primary roles in student instruction and for other members of 
  8.6   the bargaining unit; 
  8.7      (4) incentives for teachers' continuous improvement in 
  8.8   content knowledge, pedagogy, and use of best practices; 
  8.9      (5) an objective evaluation program, including classroom or 
  8.10  performance observation, that is aligned with the district's or 
  8.11  site's educational improvement plan, and is a component of 
  8.12  determining performance; 
  8.13     (6) provisions preventing any teacher's compensation from 
  8.14  being reduced as a result of implementing principled pay 
  8.15  practices; 
  8.16     (7) provisions enabling any teacher in the district if the 
  8.17  principled pay practices are applied districtwide, or at a site, 
  8.18  if the practices apply only to a site, to participate in the 
  8.19  principled pay practices without limitations by quota or other 
  8.20  restrictions; 
  8.21     (8) provisions encouraging collaboration among teachers 
  8.22  rather than competition; and 
  8.23     (9) provisions for participation by all teachers in a 
  8.24  district, all teachers at a site, or at least 25 percent of the 
  8.25  teachers in a district. 
  8.26     (c) An agreement may contain different compensation 
  8.27  provisions for separate classifications of employees. 
  8.28     Subd. 3.  [COMMISSIONER APPROVAL.] (a) Before concluding a 
  8.29  collective bargaining agreement, a district may submit a 
  8.30  proposed agreement and educational improvement plan for review, 
  8.31  comment, and preliminary approval by the commissioner.  If the 
  8.32  plan and agreement are executed in the same form as 
  8.33  preliminarily approved by the commissioner, the plan and 
  8.34  agreement must be approved without further review. 
  8.35     (b) The application to the commissioner must contain a 
  8.36  formally adopted collective bargaining agreement, memorandum of 
  9.1   understanding, or other binding agreement that implements 
  9.2   principled pay practices consistent with this section. 
  9.3      (c) The commissioner's approval must be based on the 
  9.4   requirements established in subdivision 2.  If the commissioner 
  9.5   does not approve an application, the notice to the school 
  9.6   district must provide details regarding the commissioner's 
  9.7   reason for rejecting the application.  
  9.8      (d) A school district that intends to apply for principled 
  9.9   pay practices aid for the first time must notify the 
  9.10  commissioner in writing by November 1 prior to the academic year 
  9.11  for which they intend to seek aid.  The commissioner must 
  9.12  approve initial applications for school districts qualifying 
  9.13  under subdivision 4, paragraph (b), clause (1), by January 15 of 
  9.14  each year. 
  9.15     Subd. 4.  [AID AMOUNT.] (a) A school district that meets 
  9.16  the conditions of this section, as approved by the commissioner, 
  9.17  is eligible for principled pay practices aid.  
  9.18     (b) Principled pay practices aid for a qualifying school 
  9.19  district, site, or portion of a district or school site is as 
  9.20  follows: 
  9.21     (1) for a school district in which the school board and the 
  9.22  exclusive representative of the teachers agree to place all 
  9.23  teachers in the district or at the site in the principled pay 
  9.24  practices system, aid equals $150 times the district's or the 
  9.25  site's number of pupils enrolled on October 1 of the previous 
  9.26  fiscal year; or 
  9.27     (2) for a district in which the school board and the 
  9.28  exclusive representative of the teachers agree that at least 25 
  9.29  percent of the district's licensed teachers will be paid under 
  9.30  the principled pay practices system, aid equals $150 times the 
  9.31  percentage of participating teachers times the district's number 
  9.32  of pupils enrolled as of October 1 of the previous fiscal year.  
  9.33     Subd. 5.  [PERCENTAGE OF TEACHERS.] For purposes of 
  9.34  subdivision 4, the percentage of teachers participating in the 
  9.35  principled pay practices system equals the ratio of the number 
  9.36  of licensed teachers who are working at least 60 percent of a 
 10.1   full-time teacher's hours and agree to participate in the 
 10.2   principled pay practices system to the total number of licensed 
 10.3   teachers who are working at least 60 percent of a full-time 
 10.4   teacher's hours.  
 10.5      Subd. 6.  [AID TIMING.] Districts or sites with approved 
 10.6   applications must receive principled pay practices aid for each 
 10.7   school year that the district or site participates in the 
 10.8   program.  
 10.9      Subd. 7.  [ANNUAL AID APPROPRIATION.] The amount necessary 
 10.10  for this purpose is appropriated annually from the general fund 
 10.11  to the commissioner of children, families, and learning for 
 10.12  principled pay practices aid under this section. 
 10.13     <b>[EFFECTIVE DATE.]</b> This section is effective for fiscal year 
 10.14  2005 and thereafter. 
 10.15     Sec. 9.  [122A.4143] [CLOSED CONTRACT.] 
 10.16     A district and the exclusive representative of the teachers 
 10.17  may agree jointly to reopen a collective bargaining agreement in 
 10.18  order to enter into a principled pay practices system consistent 
 10.19  with section 122A.4142 and an educational improvement plan under 
 10.20  section 122A.413. 
 10.21     Sec. 10.  [122A.4144] [DISTRICTS RECEIVING ALTERNATIVE 
 10.22  TEACHER COMPENSATION AID.] 
 10.23     Districts that qualified for alternative teacher 
 10.24  compensation aid under section 122A.415 shall be eligible for 
 10.25  principled pay practices aid provided that they retain the 
 10.26  system previously approved by the commissioner through June 30, 
 10.27  2005.  In order to receive aid after June 30, 2005, these 
 10.28  districts must submit an application to the commissioner under 
 10.29  section 122A.4142. 
 10.30     <b>[EFFECTIVE DATE.]</b> This section is effective for fiscal year 
 10.31  2005 and thereafter. 
 10.32     Sec. 11.  Minnesota Statutes 2002, section 122A.46, 
 10.33  subdivision 9, is amended to read: 
 10.34     Subd. 9.  [BENEFITS.] A teacher on an extended leave of 
 10.35  absence shall receive all of the health, accident, medical, 
 10.36  surgical and hospitalization insurance or benefits, for both the 
 11.1   teacher and the teacher's dependents, for which the teacher 
 11.2   would otherwise be eligible if not on an extended leave.  A 
 11.3   teacher shall receive the coverage if such coverage is available 
 11.4   from the school district's insurer, if the teacher requests the 
 11.5   coverage, and if the teacher either (a) reimburses the district 
 11.6   for the full amount of the premium necessary to maintain the 
 11.7   coverage within one month following preceding the district's 
 11.8   payment of the premium, or (b) if the district is wholly or 
 11.9   partially self-insured, pays the district, according to a 
 11.10  schedule agreed upon by the teacher and the school board, an 
 11.11  amount determined by the school board to be the amount that 
 11.12  would be charged for the coverage chosen by the teacher if the 
 11.13  school board purchased all health, accident, medical, surgical 
 11.14  and hospitalization coverage for its teachers from an 
 11.15  insurer.  A school district may enter into an agreement with the 
 11.16  exclusive bargaining representative of teachers in the district 
 11.17  where the district agrees to pay all or a portion of the premium 
 11.18  for such coverage.  Any such agreement must include a sunset of 
 11.19  eligibility to qualify for the payment and must not be a 
 11.20  continuing part of the collective bargaining agreement. 
 11.21     Sec. 12.  [123B.061] [IMPROVING STUDENT ACCESS TO SERVICES 
 11.22  SUPPORTING ACADEMIC SUCCESS.] 
 11.23     (a) School districts and the department of children, 
 11.24  families, and learning shall work to improve students' 
 11.25  educational achievement, to provide for student safety, and to 
 11.26  enhance student physical and emotional and social well-being by 
 11.27  providing access to licensed student support services. 
 11.28     (b) Districts and the department shall explore 
 11.29  opportunities for obtaining additional funds to improve 
 11.30  students' access to needed licensed student support services 
 11.31  including, but not limited to, medical assistance 
 11.32  reimbursements, local collaborative time study funds, federal 
 11.33  funds, public health funds, and specifically designated funds. 
 11.34     (c) Districts and the department must consider nationally 
 11.35  recommended licensed staff to student ratios when working to 
 11.36  improve student access to needed student services: 
 12.1      (1) one licensed school nurse to 750 students; 
 12.2      (2) one licensed school social worker to 500 students; 
 12.3      (3) one licensed school psychologist to 1,000 students; 
 12.4      (4) one licensed school counselor to 250 secondary school 
 12.5   students and one licensed school counselor to 400 elementary 
 12.6   school students; and 
 12.7      (5) one or more school chemical health counselors who may 
 12.8   be one of the professionals listed in this paragraph if the 
 12.9   staff to student ratios are adjusted. 
 12.10     School districts shall develop their student services team 
 12.11  according to the school board determined needs of their 
 12.12  respective districts. 
 12.13     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 12.14  following final enactment. 
 12.15     Sec. 13.  Minnesota Statutes 2002, section 123B.14, 
 12.16  subdivision 1, is amended to read: 
 12.17     Subdivision 1.  [OFFICER SELECTION.] Within ten days after 
 12.18  the election of the first board in independent districts and 
 12.19  annually thereafter on July 1, On the first Monday of January of 
 12.20  each year, or as soon thereafter as practicable, the board must 
 12.21  meet and organize by selecting a chair, clerk, and a treasurer, 
 12.22  who shall hold their offices for one year and until their 
 12.23  successors are selected and qualify. The persons who perform the 
 12.24  duties of the clerk and treasurer need not be members of the 
 12.25  board and the board by resolution may combine the duties of the 
 12.26  offices of clerk and treasurer in a single person in the office 
 12.27  of business affairs.  They may appoint a superintendent who 
 12.28  shall be ex officio a member of the board, but not entitled to 
 12.29  vote therein.  In districts in which board members are elected 
 12.30  at the general election in November, the annual meeting of the 
 12.31  board must be held on the first Monday of January or as soon 
 12.32  thereafter as practicable. 
 12.33     Sec. 14.  Minnesota Statutes 2002, section 123B.57, 
 12.34  subdivision 2, is amended to read: 
 12.35     Subd. 2.  [CONTENTS OF PROGRAM.] A district must adopt a 
 12.36  health and safety program.  The program must include plans, 
 13.1   where applicable, for hazardous substance removal, fire and life 
 13.2   safety code repairs, regulated facility and equipment 
 13.3   violations, and health, safety, and environmental management, 
 13.4   including indoor air quality management.  
 13.5      (a) A hazardous substance plan must contain provisions for 
 13.6   the removal or encapsulation of asbestos from school buildings 
 13.7   or property, asbestos-related repairs, cleanup and disposal of 
 13.8   polychlorinated biphenyls found in school buildings or property, 
 13.9   and cleanup, removal, disposal, and repairs related to storing 
 13.10  heating fuel or transportation fuels such as alcohol, gasoline, 
 13.11  fuel, oil, and special fuel, as defined in section 296A.01.  If 
 13.12  a district has already developed a plan for the removal or 
 13.13  encapsulation of asbestos as required by the federal Asbestos 
 13.14  Hazard Emergency Response Act of 1986, the district may use a 
 13.15  summary of that plan, which includes a description and schedule 
 13.16  of response actions, for purposes of this section.  The plan 
 13.17  must also contain provisions to make modifications to existing 
 13.18  facilities and equipment necessary to limit personal exposure to 
 13.19  hazardous substances, as regulated by the federal Occupational 
 13.20  Safety and Health Administration under Code of Federal 
 13.21  Regulations, title 29, part 1910, subpart Z; or is determined by 
 13.22  the commissioner to present a significant risk to district staff 
 13.23  or student health and safety as a result of foreseeable use, 
 13.24  handling, accidental spill, exposure, or contamination. 
 13.25     (b) A fire and life safety plan must contain a description 
 13.26  of the current fire and life safety code violations, a plan for 
 13.27  the removal or repair of the fire and life safety hazard, and a 
 13.28  description of safety preparation and awareness procedures to be 
 13.29  followed until the hazard is fully corrected. 
 13.30     (c) A facilities and equipment violation plan must contain 
 13.31  provisions to correct health and safety hazards as provided in 
 13.32  department of labor and industry standards pursuant to section 
 13.33  182.655.  
 13.34     (d) A health, safety, and environmental management plan 
 13.35  must contain a description of training, record keeping, hazard 
 13.36  assessment, and program management as defined in section 123B.56.
 14.1      (e) A plan to test for and mitigate radon produced hazards. 
 14.2      (f) A plan to monitor and improve indoor air quality. 
 14.3      (g) A plan to review the department of administration's and 
 14.4   the department of commerce's B3 project guidelines established 
 14.5   under Laws 2001, chapter 212, article 1, sections 2 and 3, and, 
 14.6   when cost-effective, include appropriate modifications as part 
 14.7   of the project authorized under this section. 
 14.8      Sec. 15.  Minnesota Statutes 2002, section 123B.59, 
 14.9   subdivision 2, is amended to read: 
 14.10     Subd. 2.  [TEN-YEAR PLAN.] (a) A qualifying district must 
 14.11  have a ten-year facility plan approved by the commissioner that 
 14.12  includes an inventory of projects and costs that would be 
 14.13  eligible for: 
 14.14     (1) health and safety revenue; 
 14.15     (2) disabled access levy; and 
 14.16     (3) deferred capital expenditures and maintenance projects 
 14.17  necessary to prevent further erosion of facilities. 
 14.18     (b) The school district must: 
 14.19     (1) annually update the plan; 
 14.20     (2) biennially submit a facility maintenance plan; and 
 14.21     (3) indicate whether the district will issue bonds to 
 14.22  finance the plan or levy for the costs. 
 14.23     (c) The school district must review the department of 
 14.24  administration's and the department of commerce's B3 project 
 14.25  guidelines established under Laws 2001, chapter 212, article 1, 
 14.26  sections 2 and 3, and, when cost-effective, include appropriate 
 14.27  modifications as part of the project authorized under this 
 14.28  section. 
 14.29     Sec. 16.  Minnesota Statutes 2002, section 123B.62, is 
 14.30  amended to read: 
 14.31     123B.62 [BONDS FOR CERTAIN CAPITAL FACILITIES.] 
 14.32     (a) In addition to other bonding authority, with approval 
 14.33  of the commissioner, a district may issue general obligation 
 14.34  bonds for certain capital projects under this section.  The 
 14.35  bonds must be used only to make capital improvements including: 
 14.36     (1) under section 126C.10, subdivision 14, total operating 
 15.1   capital revenue uses specified in clauses (4), (6), (7), (8), 
 15.2   (9), and (10); 
 15.3      (2) the cost of energy modifications, including, when 
 15.4   cost-effective, compliance with the department of 
 15.5   administration's and the department of commerce's B3 project 
 15.6   guidelines established under Laws 2001, chapter 212, article 1, 
 15.7   sections 2 and 3; 
 15.8      (3) improving handicap accessibility to school buildings; 
 15.9   and 
 15.10     (4) bringing school buildings into compliance with life and 
 15.11  safety codes and fire codes.  
 15.12     (b) Before a district issues bonds under this subdivision, 
 15.13  it must publish notice of the intended projects, the amount of 
 15.14  the bond issue, and the total amount of district indebtedness.  
 15.15     (c) A bond issue tentatively authorized by the board under 
 15.16  this subdivision becomes finally authorized unless a petition 
 15.17  signed by more than 15 percent of the registered voters of the 
 15.18  district is filed with the school board within 30 days of the 
 15.19  board's adoption of a resolution stating the board's intention 
 15.20  to issue bonds.  The percentage is to be determined with 
 15.21  reference to the number of registered voters in the district on 
 15.22  the last day before the petition is filed with the board.  The 
 15.23  petition must call for a referendum on the question of whether 
 15.24  to issue the bonds for the projects under this section.  The 
 15.25  approval of 50 percent plus one of those voting on the question 
 15.26  is required to pass a referendum authorized by this section. 
 15.27     (d) The bonds must be paid off within ten years of 
 15.28  issuance.  The bonds must be issued in compliance with chapter 
 15.29  475, except as otherwise provided in this section.  A tax levy 
 15.30  must be made for the payment of principal and interest on the 
 15.31  bonds in accordance with section 475.61.  The sum of the tax 
 15.32  levies under this section and section 123B.61 for each year must 
 15.33  not exceed the limit specified in section 123B.61.  The levy for 
 15.34  each year must be reduced as provided in section 123B.61.  A 
 15.35  district using an excess amount in the debt redemption fund to 
 15.36  retire the bonds shall report the amount used for this purpose 
 16.1   to the commissioner by July 15 of the following fiscal year.  A 
 16.2   district having an outstanding capital loan under section 
 16.3   126C.69 or an outstanding debt service loan under section 
 16.4   126C.68 must not use an excess amount in the debt redemption 
 16.5   fund to retire the bonds. 
 16.6      (e) Notwithstanding paragraph (d), bonds issued by a 
 16.7   district within the first five years following voter approval of 
 16.8   a combination according to section 123A.37, subdivision 2, must 
 16.9   be paid off within 20 years of issuance.  All the other 
 16.10  provisions and limitation of paragraph (d) apply. 
 16.11     Sec. 17.  Minnesota Statutes 2002, section 123B.71, 
 16.12  subdivision 4, is amended to read: 
 16.13     Subd. 4.  [PLAN SUBMITTAL.] For a project for which 
 16.14  consultation is required under subdivision 1, the commissioner, 
 16.15  after the consultation required in subdivision 1, may require a 
 16.16  school district to submit preliminary and final plans for 
 16.17  approval.  The commissioner shall approve or disapprove the 
 16.18  plans within 90 days after submission. 
 16.19     Final plans shall meet all applicable state laws, rules, 
 16.20  and codes concerning public buildings, including sections 16B.59 
 16.21  to 16B.73, and, when cost-effective, the department of 
 16.22  administration's and the department of commerce's B3 project 
 16.23  guidelines established under Laws 2001, chapter 212, article 1, 
 16.24  sections 2 and 3.  
 16.25     Sec. 18.  Minnesota Statutes 2002, section 123B.71, 
 16.26  subdivision 9, is amended to read: 
 16.27     Subd. 9.  [INFORMATION REQUIRED.] A school board proposing 
 16.28  to construct a facility described in subdivision 8 shall submit 
 16.29  to the commissioner a proposal containing information including 
 16.30  at least the following: 
 16.31     (1) the geographic area and population to be served, 
 16.32  preschool through grade 12 student enrollments for the past five 
 16.33  years, and student enrollment projections for the next five 
 16.34  years; 
 16.35     (2) a list of existing facilities by year constructed, 
 16.36  their uses, and an assessment of the extent to which alternate 
 17.1   facilities are available within the school district boundaries 
 17.2   and in adjacent school districts; 
 17.3      (3) a list of the specific deficiencies of the facility 
 17.4   that demonstrate the need for a new or renovated facility to be 
 17.5   provided, and a list of the specific benefits that the new or 
 17.6   renovated facility will provide to the students, teachers, and 
 17.7   community users served by the facility; 
 17.8      (4) the relationship of the project to any priorities 
 17.9   established by the school district, educational cooperatives 
 17.10  that provide support services, or other public bodies in the 
 17.11  service area; 
 17.12     (5) a specification of how the project will increase 
 17.13  community use of the facility and whether and how the project 
 17.14  will increase collaboration with other governmental or nonprofit 
 17.15  entities; 
 17.16     (6) a description of the project, including the 
 17.17  specification of site and outdoor space acreage and square 
 17.18  footage allocations for classrooms, laboratories, and support 
 17.19  spaces; estimated expenditures for the major portions of the 
 17.20  project; and the dates the project will begin and be completed; 
 17.21     (7) a specification of the source of financing the project; 
 17.22  the scheduled date for a bond issue or school board action; a 
 17.23  schedule of payments, including debt service equalization aid; 
 17.24  and the effect of a bond issue on local property taxes by the 
 17.25  property class and valuation; 
 17.26     (8) an analysis of how the proposed new or remodeled 
 17.27  facility will affect school district operational or 
 17.28  administrative staffing costs, and how the district's operating 
 17.29  budget will cover any increased operational or administrative 
 17.30  staffing costs; 
 17.31     (9) a description of the consultation with local or state 
 17.32  road and transportation officials on school site access and 
 17.33  safety issues, and the ways that the project will address those 
 17.34  issues; 
 17.35     (10) a description of how indoor air quality issues have 
 17.36  been considered and a certification that the architects and 
 18.1   engineers designing the facility will have professional 
 18.2   liability insurance; 
 18.3      (11) as required under section 123B.72, for buildings 
 18.4   coming into service after July 1, 2002, a certification that the 
 18.5   plans and designs for the extensively renovated or new 
 18.6   facility's heating, ventilation, and air conditioning systems 
 18.7   will meet or exceed code standards; will provide for the 
 18.8   monitoring of outdoor airflow and total airflow of ventilation 
 18.9   systems; and will provide an indoor air quality filtration 
 18.10  system that meets ASHRAE standard 52.1; 
 18.11     (12) a specification of any desegregation requirements that 
 18.12  cannot be met by any other reasonable means; and 
 18.13     (13) a specification, if applicable, of how the facility 
 18.14  will utilize environmentally sustainable school facility design 
 18.15  concepts and, when cost-effective, comply with the department of 
 18.16  administration's and the department of commerce's B3 project 
 18.17  guidelines established under Laws 2001, chapter 212, article 1, 
 18.18  sections 2 and 3. 
 18.19     Sec. 19.  Minnesota Statutes 2002, section 124D.10, 
 18.20  subdivision 3, is amended to read: 
 18.21     Subd. 3.  [SPONSOR.] (a) A school board; intermediate 
 18.22  school district school board; education district organized under 
 18.23  sections 123A.15 to 123A.19; charitable organization under 
 18.24  section 501(c)(3) of the Internal Revenue Code of 1986 that is a 
 18.25  member of the Minnesota council of nonprofits or the Minnesota 
 18.26  council on foundations, registered with the attorney general's 
 18.27  office, and reports an end-of-year fund balance of at least 
 18.28  $2,000,000; Minnesota private college that grants two- or 
 18.29  four-year degrees and is registered with the higher education 
 18.30  services office under chapter 136A; community college, state 
 18.31  university, or technical college, governed by the board of 
 18.32  trustees of the Minnesota state colleges and universities; or 
 18.33  the University of Minnesota may sponsor one or more charter 
 18.34  schools.  
 18.35     (b) A nonprofit corporation subject to chapter 317A, 
 18.36  described in section 317A.905, and exempt from federal income 
 19.1   tax under section 501(c)(6) of the Internal Revenue Code of 
 19.2   1986, may sponsor one or more charter schools if the charter 
 19.3   school has operated for at least three years under a different 
 19.4   sponsor and if the nonprofit corporation has existed for at 
 19.5   least 25 years.  
 19.6      <b>[EFFECTIVE DATE.]</b> This section is effective for the 
 19.7   2003-2004 school year and later. 
 19.8      Sec. 20.  Minnesota Statutes 2002, section 124D.10, 
 19.9   subdivision 20, is amended to read: 
 19.10     Subd. 20.  [LEAVE TO TEACH IN A CHARTER SCHOOL.] If a 
 19.11  teacher employed by a district makes a written request for an 
 19.12  extended leave of absence to teach at a charter school, the 
 19.13  district must grant the leave.  The district must grant a leave 
 19.14  for any number of not to exceed five years requested by the 
 19.15  teacher, and must.  Any request to extend the leave at the 
 19.16  teacher's request shall be granted only at the discretion of the 
 19.17  school board.  The district may require that the request for a 
 19.18  leave or extension of leave be made up to 90 days before the 
 19.19  teacher would otherwise have to report for duty.  Except as 
 19.20  otherwise provided in this subdivision and except for section 
 19.21  122A.46, subdivision 7, the leave is governed by section 
 19.22  122A.46, including, but not limited to, reinstatement, notice of 
 19.23  intention to return, seniority, salary, and insurance. 
 19.24     During a leave, the teacher may continue to aggregate 
 19.25  benefits and credits in the teachers' retirement association 
 19.26  account by paying both the employer and employee contributions 
 19.27  based upon the annual salary of the teacher for the last full 
 19.28  pay period before the leave began.  The retirement association 
 19.29  may impose reasonable requirements to efficiently administer 
 19.30  this subdivision.  
 19.31     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 19.32  following final enactment and applies to approvals of leaves or 
 19.33  approvals of extensions of leaves made after that date.  
 19.34  Notwithstanding Minnesota Statutes 2002, section 122A.46, 
 19.35  subdivision 2, a school district, upon request, must grant a 
 19.36  one-year extension for the 2003-2004 school year to a teacher on 
 20.1   a leave of absence to teach at a charter school under this 
 20.2   subdivision who has been on leave for five or more years as of 
 20.3   the 2003-2004 school year.  
 20.4      Sec. 21.  [125B.25] [ON-LINE LEARNING COURSES.] 
 20.5      Subdivision 1.  [DEFINITIONS.] For the purposes of this 
 20.6   section, the terms defined in this subdivision have the meanings 
 20.7   given them. 
 20.8      (a) "Student" means a public school or charter school 
 20.9   student enrolled for one or more courses in any grades 
 20.10  kindergarten through 12, or a student that is enrolled in a 
 20.11  learning year program under section 124D.128 or an area learning 
 20.12  center under sections 123A.05 to 123A.09. 
 20.13     (b) "Enrolled district" means a school district or charter 
 20.14  school in which the student taking the on-line course is 
 20.15  enrolled. 
 20.16     (c) "Serving district" means a school district, a charter 
 20.17  school, or two or more school districts organized under a joint 
 20.18  powers agreement, offering an on-line course that is accessible 
 20.19  by students outside of the regular school day or from a location 
 20.20  other than a public school building. 
 20.21     Subd. 2.  [STUDENT ELIGIBILITY.] (a) Students shall be 
 20.22  enrolled in a Minnesota school.  Private school students in any 
 20.23  grades kindergarten through 12 may enroll in an on-line course 
 20.24  offered at a public school and are eligible for certificates of 
 20.25  authorization under subdivision 7.  
 20.26     (b) Students who are age 17 or younger must have written 
 20.27  permission from a parent or guardian in order to be enrolled in 
 20.28  an on-line course. 
 20.29     (c) Students shall notify their enrolled district at least 
 20.30  30 days prior to taking an on-line course offered by a serving 
 20.31  district. 
 20.32     (d) A student's enrollment in an on-line course in a 
 20.33  serving district shall not affect their ability to participate 
 20.34  in extracurricular activities in their enrolled district. 
 20.35     (e) Homeschooled students may take an on-line course at a 
 20.36  Minnesota school with an agreement between the school and the 
 21.1   parents or guardian of the homeschooled student. 
 21.2      (f) A student with a disability may enroll in an on-line 
 21.3   course if the student's individual education plan determines 
 21.4   that the on-line course is a proper type of instruction for the 
 21.5   student. 
 21.6      Subd. 3.  [ENROLLED DISTRICT RESPONSIBILITY.] (a) An 
 21.7   enrolled school district is not required to provide a student 
 21.8   taking an on-line course in a serving district with access to a 
 21.9   computer or to the Internet.  The enrolled district must provide 
 21.10  equal access to school computer equipment for students taking 
 21.11  on-line courses as it does for other students attending public 
 21.12  schools in the district. 
 21.13     (b) An enrolled school district may not prohibit a student 
 21.14  from taking an on-line course in a serving district. 
 21.15     (c) The enrolled district must determine the graduation 
 21.16  requirements for a student taking an on-line course and must 
 21.17  continue to provide other nonacademic services for the student.  
 21.18  If a student successfully completes an on-line course that meets 
 21.19  or exceeds a graduation standard or grade progression 
 21.20  requirement at the enrolled district, that standard or 
 21.21  requirement shall be considered met.  The enrolled district must 
 21.22  use the same criteria for accepting on-line credits or courses 
 21.23  as it does for accepting credits or courses for transfer 
 21.24  students under section 124D.03, subdivision 9. 
 21.25     (d) The enrolled district may reduce a student's teacher 
 21.26  contact time in proportion to the total amount of revenue paid 
 21.27  to serving districts under subdivision 6 for that student, 
 21.28  divided by the per pupil general education amount for the 
 21.29  district for that year. 
 21.30     (e) The enrolled district may establish a maximum number of 
 21.31  on-line courses that a student may take within one school year.  
 21.32  The maximum number of courses under this paragraph may not be 
 21.33  less than ten courses for a single student within one school 
 21.34  year.  A student may exceed this limit if a student has reached 
 21.35  an agreement with a serving district to pay for the course by 
 21.36  other means. 
 22.1      (f) The enrolled district must not adjust their average 
 22.2   daily membership for students taking on-line courses in other 
 22.3   school districts. 
 22.4      (g) The enrolled district must not count excess contact 
 22.5   time under section 126C.05, subdivision 5, for a student that is 
 22.6   attending a learning year program under section 124D.128 or an 
 22.7   area learning center under sections 123A.05 to 123A.09 and is 
 22.8   taking an on-line course in other school districts. 
 22.9      (h) The enrolled district may offer an on-line course to a 
 22.10  resident homeschooled student who is eligible for shared time 
 22.11  aid under section 126C.19 if an equivalent course is available 
 22.12  at the public school site. 
 22.13     (i) A district or charter school may provide instruction or 
 22.14  courses using on-line or other distance learning methods to 
 22.15  students enrolled in the district or charter school.  Such 
 22.16  instruction or courses offered solely to enrolled students is 
 22.17  not subject to the reporting requirements to the department 
 22.18  under subdivision 4, paragraph (g), and the department review 
 22.19  criteria under subdivision 8.  Instruction and courses offered 
 22.20  to enrolled students under this paragraph must be designed and 
 22.21  delivered by a teacher with a Minnesota license and not by a 
 22.22  parent or other surrogate not so licensed.  The instruction may 
 22.23  include curriculum elements developed by persons other than a 
 22.24  teacher with a Minnesota license. 
 22.25     Subd. 4.  [SERVING DISTRICT RESPONSIBILITY.] (a) The 
 22.26  instruction for on-line courses at a serving district must be 
 22.27  designed and delivered by a teacher with a Minnesota license and 
 22.28  not by a parent or other surrogate not so licensed.  The 
 22.29  instruction may include curriculum elements developed by persons 
 22.30  other than a teacher with a Minnesota license.  Unless a waiver 
 22.31  is granted by the commissioner of children, families, and 
 22.32  learning, the serving district must not exceed a ratio of 40 
 22.33  students for each instructor for each on-line course. 
 22.34     (b) The serving district must offer to students who show an 
 22.35  economic need technical assistance in acquiring computer 
 22.36  equipment and on-line access through the Minnesota education 
 23.1   credit under section 290.0674 so that students may access their 
 23.2   on-line course from home. 
 23.3      (c) The serving district may limit enrollment to their 
 23.4   on-line courses and may set up other prerequisite restrictions. 
 23.5      (d) The serving district may offer other supplemental 
 23.6   on-line courses that are not eligible for reimbursement under 
 23.7   this section. 
 23.8      (e) The serving district must not adjust their average 
 23.9   daily membership for students taking on-line courses at the 
 23.10  district. 
 23.11     (f) The serving district must be approved by the department 
 23.12  under subdivision 8 to offer on-line courses under this section. 
 23.13     (g) The serving district must file a copy of its on-line 
 23.14  coursework with the department. 
 23.15     Subd. 5.  [ON-LINE COURSE REVENUE.] The on-line course 
 23.16  allowance equals the general education formula amount under 
 23.17  section 126C.10, subdivision 2, times .09.  On-line course 
 23.18  revenue for a serving district equals the number of on-line 
 23.19  courses successfully completed by enrolled students, times the 
 23.20  on-line course allowance. 
 23.21     Subd. 6.  [DEPARTMENT PAYMENT PROCESS.] (a) The department 
 23.22  must pay the serving district the amount of on-line course 
 23.23  revenue determined by the successful completion of on-line 
 23.24  courses in subdivision 5 and reduce the enrolled district's 
 23.25  general education aid by the same amount. 
 23.26     (b) The department must pay the serving district within 30 
 23.27  days upon notification from the serving district that the 
 23.28  student has successfully completed a course.  The enrolled 
 23.29  district may challenge the validity of the course to the 
 23.30  department within this 30-day period. 
 23.31     (c) The serving district may bill the enrolled district for 
 23.32  a greater amount than determined in subdivision 5 upon agreement 
 23.33  between the enrolled district and the serving district. 
 23.34     (d) Enrolled and serving districts shall not adjust their 
 23.35  average daily membership for aid paid or received under this 
 23.36  section. 
 24.1      (e) The department must not pay state aid to a serving 
 24.2   district or reduce state aid to an enrolled district if the 
 24.3   student has successfully completed or is currently enrolled in 
 24.4   more than ten courses in a single school year. 
 24.5      Subd. 7.  [ON-LINE COURSE REVENUE FOR DISTRICTS OFFERING 
 24.6   COURSES TO PRIVATE SCHOOL STUDENTS.] (a) In a form and manner 
 24.7   determined by the commissioner, the commissioner may issue 
 24.8   certificates of authorization to students enrolled in a 
 24.9   Minnesota private school in any grades kindergarten through 12 
 24.10  who are applying for an on-line course at a serving school 
 24.11  district.  The certificate authorizes a private school student 
 24.12  to enroll in an on-line course and allows the serving school 
 24.13  district to seek a revenue reimbursement for the course. 
 24.14     (b) Each certificate of authorization is equal to the 
 24.15  on-line formula allowance calculated under subdivision 5.  The 
 24.16  commissioner shall issue no more than 2,400 certificates of 
 24.17  authorization for each school year. 
 24.18     (c) In order to receive revenue under this subdivision, the 
 24.19  serving district must submit to the department for reimbursement 
 24.20  certificates issued under paragraph (a) for each course 
 24.21  successfully completed by a private school student. 
 24.22     (d) Nothing in this subdivision shall interfere with a 
 24.23  private school student's participation in the shared time 
 24.24  program under section 126C.19. 
 24.25     Subd. 8.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 24.26  LEARNING.] (a) The department must establish procedures for 
 24.27  reviewing and certifying serving districts that are offering 
 24.28  on-line courses that are rigorous, aligned with state graduation 
 24.29  standards, and are contributing to grade progression in a single 
 24.30  subject.  The serving districts must demonstrate that on-line 
 24.31  courses have equivalent standards or instruction, curriculum 
 24.32  development, and assessment requirements as other courses 
 24.33  offered at the public school site.  The serving district must 
 24.34  also demonstrate expectations for teacher contact time through 
 24.35  actual contact time or other student-to-teacher communication.  
 24.36  Once the district is approved under this paragraph, all of its 
 25.1   on-line course offerings shall be eligible for payment under 
 25.2   this section unless a course is successfully challenged by an 
 25.3   enrolled district or the department under paragraph (b). 
 25.4      (b) The department must review challenges from an enrolled 
 25.5   district on the validity of a course offered at a serving 
 25.6   district based on the procedures for certifying districts under 
 25.7   paragraph (a).  The department may initiate its own review on 
 25.8   the validity of a course offered at a serving district. 
 25.9      (c) The department may collect a fee not to exceed $250 for 
 25.10  certifying serving districts or $50 per course for reviewing a 
 25.11  challenge from an enrolled district. 
 25.12     (d) The department must develop, publish, and maintain a 
 25.13  list of approved serving districts and on-line courses that have 
 25.14  been reviewed and certified by the department. 
 25.15     Sec. 22.  Minnesota Statutes 2002, section 126C.19, is 
 25.16  amended by adding a subdivision to read: 
 25.17     Subd. 5.  [ON-LINE COURSES.] For the purposes of shared 
 25.18  time average daily membership under section 126C.01, subdivision 
 25.19  6, a school district may consider completed on-line courses by 
 25.20  resident homeschooled students under section 125B.25, 
 25.21  subdivision 3, paragraph (h), as equivalent to taking a course 
 25.22  at a public school site if an equivalent course is available at 
 25.23  the school site. 
 25.24     Sec. 23.  Minnesota Statutes 2002, section 128C.02, 
 25.25  subdivision 1, is amended to read: 
 25.26     Subdivision 1.  [DECISIONS, POLICIES, ADVISORY COMMITTEES.] 
 25.27  The board shall establish and adopt policies, including a policy 
 25.28  on corporate sponsorships and similar agreements, make decisions 
 25.29  on behalf of the league, and establish advisory committees 
 25.30  necessary to carry out board functions. 
 25.31     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 25.32  following final enactment.  
 25.33     Sec. 24.  Minnesota Statutes 2002, section 354.094, 
 25.34  subdivision 1, is amended to read: 
 25.35     Subdivision 1.  [SERVICE CREDIT CONTRIBUTIONS.] Upon 
 25.36  granting any extended leave of absence under section 122A.46 or 
 26.1   136F.43, the employing unit granting the leave must certify the 
 26.2   leave to the association on a form specified by the executive 
 26.3   director.  A member granted an extended leave of absence under 
 26.4   section 122A.46 or 136F.43 may pay employee contributions and 
 26.5   receive allowable service credit toward annuities and other 
 26.6   benefits under this chapter, for each year of the leave, 
 26.7   provided that the member and the employing board make the 
 26.8   required employer contribution in any proportion they may agree 
 26.9   upon, during the period of the leave.  The employer may enter 
 26.10  into an agreement with the exclusive bargaining representative 
 26.11  of the member under which all or a portion of the employee's 
 26.12  contribution is paid by the employer.  Any such agreement must 
 26.13  include a sunset of eligibility to qualify for the payment and 
 26.14  must not be a continuing part of the collective bargaining 
 26.15  agreement.  The leave period must not exceed five years.  A 
 26.16  member may not receive more than five years of allowable service 
 26.17  credit under this section.  The employee and employer 
 26.18  contributions must be based upon the rates of contribution 
 26.19  prescribed by section 354.42 for the salary received during the 
 26.20  year immediately preceding the extended leave.  Payments for the 
 26.21  years for which a member is receiving service credit while on 
 26.22  extended leave must be made on or before the later of June 30 of 
 26.23  each fiscal year for which service credit is received or within 
 26.24  30 days after first notification of the amount due, if requested 
 26.25  by the member, is given by the association.  No payment is 
 26.26  permitted after the following September 30.  Payments received 
 26.27  after June 30 must include interest at an annual rate of 8.5 
 26.28  percent from June 30 through the end of the month in which 
 26.29  payment is received.  Notwithstanding the provisions of any 
 26.30  agreements to the contrary, employee and employer contributions 
 26.31  may not be made to receive allowable service credit if the 
 26.32  member does not have full reinstatement rights as provided in 
 26.33  section 122A.46 or 136F.43, both during and at the end of the 
 26.34  extended leave. 
 26.35     Sec. 25.  [AT-LARGE SCHOOL BOARD MEMBERS; INDEPENDENT 
 26.36  SCHOOL DISTRICT NO. 709, DULUTH.] 
 27.1      (a) Notwithstanding Laws 1969, chapter 698, or other law to 
 27.2   the contrary, the school board for independent school district 
 27.3   No. 709, Duluth, may by resolution reduce from five to three the 
 27.4   number of at-large school board members. 
 27.5      (b) If the school board adopts the resolution under 
 27.6   paragraph (a), for the November 2003 election and each four 
 27.7   years thereafter, the three positions of those members elected 
 27.8   at large whose terms expire on December 31, 2003, shall be 
 27.9   reduced to one member elected at large. 
 27.10     (c) Nothing in this section prevents a member of the school 
 27.11  board on the effective date of this act who is otherwise 
 27.12  qualified from running for reelection upon the expiration of 
 27.13  that member's term. 
 27.14     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 27.15  following final enactment. 
 27.16     Sec. 26.  [IMPACT OF WAIVING SPECIFIC SPECIAL EDUCATION 
 27.17  REQUIREMENTS THAT EXCEED FEDERAL LAW; TWO-YEAR PILOT PROJECT.] 
 27.18     Subdivision 1.  [ESTABLISHMENT; GOAL.] A two-year pilot 
 27.19  project is established to permit independent school district No. 
 27.20  535, Rochester, and up to three other geographically diverse 
 27.21  school districts or cooperative of districts, or both, selected 
 27.22  by the commissioner of children, families, and learning to 
 27.23  determine the impact, if any, of waiving specific special 
 27.24  education requirements listed in subdivision 3 on the quality 
 27.25  and cost effectiveness of the instructional services and 
 27.26  educational outcomes provided to eligible students in the 
 27.27  participating district. 
 27.28     Subd. 2.  [ELIGIBILITY; APPLICATIONS.] The commissioner 
 27.29  must transmit information about the pilot project and make 
 27.30  application forms available to interested school districts. 
 27.31  Applications must be submitted to the commissioner by July 1, 
 27.32  2003.  An applicant must identify the specific special education 
 27.33  requirements listed in subdivision 3 for which the applicant 
 27.34  seeks a waiver and indicate how the applicant proposes to modify 
 27.35  the activities and procedures affected by the waiver.  The 
 27.36  commissioner must approve the applications by August 1, 2003. 
 28.1      Subd. 3.  [WAIVERS.] The following state special education 
 28.2   requirements are waived for the 2003-2004 and 2004-2005 school 
 28.3   years for independent school district No. 535, Rochester, and 
 28.4   the other school districts participating in this pilot project: 
 28.5      (1) Minnesota Statutes, section 125A.56, governing 
 28.6   prereferral interventions; 
 28.7      (2) Minnesota Statutes, section 125A.18, governing special 
 28.8   instruction in nonpublic schools; 
 28.9      (3) Minnesota Statutes, section 125A.08, governing 
 28.10  transitional services; 
 28.11     (4) Minnesota Statutes, section 125A.22, governing 
 28.12  community transition interagency committees; and 
 28.13     (5) Minnesota Statutes, section 125A.023, governing 
 28.14  coordinated interagency services, but only for eligible children 
 28.15  with disabilities age six or older. 
 28.16     Subd. 4.  [STUDENTS' RIGHTS.] Eligible students enrolled in 
 28.17  a district participating in this pilot project remain entitled 
 28.18  to the procedural protections provided under federal law in any 
 28.19  matter that affects the students' identification, evaluation, 
 28.20  and placement or change in placement, or protections provided 
 28.21  under state law in dismissal proceedings that may result in 
 28.22  students' suspension, exclusion, or expulsion.  Participating 
 28.23  school districts must ensure the protections of students' civil 
 28.24  rights, provide equal educational opportunities, and prohibit 
 28.25  discrimination.  Failure to comply with this subdivision will at 
 28.26  least cause a district to become ineligible to participate in 
 28.27  the pilot project. 
 28.28     Subd. 5.  [TECHNICAL ASSISTANCE.] The commissioner must 
 28.29  provide assistance to participating districts, upon request, 
 28.30  including assistance in developing and implementing a valid and 
 28.31  uniform procedure under subdivision 6 to evaluate districts' 
 28.32  experience. 
 28.33     Subd. 6.  [EVALUATION; REPORT.] All participating school 
 28.34  districts must evaluate the impact, if any, of waiving specific 
 28.35  special education requirements listed in subdivision 3 on the 
 28.36  quality and cost effectiveness of the instructional services and 
 29.1   educational outcomes provided to eligible students in the 
 29.2   participating district.  Districts must focus the evaluation on 
 29.3   the overall efficacy of modifying the activities and procedures 
 29.4   affected by the waiver.  The evaluation must include a mechanism 
 29.5   for documenting parents' response to the pilot project.  
 29.6   Participating districts must submit to the commissioner a 
 29.7   progress report by September 1, 2004, and a final report by 
 29.8   November 1, 2005.  The commissioner must compile and present the 
 29.9   results of the reports to the legislature by February 1, 2006, 
 29.10  and recommend appropriate amendments to the statutory 
 29.11  requirement listed in subdivision 3. 
 29.12     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 29.13  following final enactment. 
 29.14     Sec. 27.  [EVALUATION; MINIMUM STUDENT CONTACT TIME FOR 
 29.15  ON-LINE COURSES.] 
 29.16     The office of education accountability at the University of 
 29.17  Minnesota must conduct a study on the amount of in-person 
 29.18  student contact time, if any, that should be considered a 
 29.19  minimum requirement for students taking on-line courses.  The 
 29.20  office of education accountability must report its findings to 
 29.21  the legislature by February 1, 2004. 
 29.22     Sec. 28.  [STATEWIDE ASSESSMENTS; ON-LINE LEARNING.] 
 29.23     The commissioner of children, families, and learning must 
 29.24  establish statewide testing recommendations aligned with state 
 29.25  and federal accountability requirements for students who are 
 29.26  enrolled in on-line courses. 
 29.27     Sec. 29.  [APPROPRIATION.] 
 29.28     (a) The following amounts are appropriated from the general 
 29.29  fund to the department of children, families, and learning for 
 29.30  the fiscal years designated for on-line course revenue for 
 29.31  districts offering courses to private school students under 
 29.32  Minnesota Statutes, section 125B.25, subdivision 7: 
 29.33       $.......     .....     2004
 29.34       $.......     .....     2005
 29.35     (b) $....... is appropriated in fiscal year 2005 from the 
 29.36  general fund to the commissioner of children, families, and 
 30.1   learning for principled pay practices aid. 
 30.2      Sec. 30.  [REPEALER.] 
 30.3      (a) Minnesota Statutes 2002, sections 122A.414 and 
 30.4   122A.415, are repealed. 
 30.5      (b) Minnesota Statutes 2002, sections 128C.01, subdivision 
 30.6   5; 128C.02, subdivision 8; and 128C.13, are repealed. 
 30.7      <b>[EFFECTIVE DATE.]</b> Paragraph (a) is effective for fiscal 
 30.8   year 2005 and thereafter.  Paragraph (b) is effective the day 
 30.9   following final enactment.