1.1 	A bill for an act
1.2 	relating to education; providing for policy and funding for early childhood 
1.3 	through grade 12 education including general education, education excellence, 
1.4 	special programs, facilities and technology, accounting, state agencies, pupil 
1.5 	transportation, education finance reform, forecast adjustments, early childhood 
1.6 	education, prevention, self-sufficiency, and lifelong learning; authorizing 
1.7 	rulemaking; requiring reports; appropriating money;amending Minnesota 
1.8 	Statutes 2008, sections 3.303, by adding a subdivision; 11A.16, subdivision 5; 
1.9 	16A.125, subdivision 5; 120A.41; 120B.021, subdivision 1; 120B.07; 120B.15; 
1.10 	121A.16; 121A.17, subdivision 5; 122A.16; 122A.18, subdivisions 1, 2; 
1.11 	122A.23, subdivision 2; 123B.12; 123B.147, subdivision 3; 123B.53, subdivision 
1.12 	5; 123B.57, as amended; 123B.63, subdivision 3; 123B.75, subdivision 5, 
1.13 	by adding a subdivision; 123B.88, subdivision 13; 123B.90, subdivision 3; 
1.14 	123B.92, subdivision 5; 124D.09, subdivision 20; 124D.141, subdivisions 1, 
1.15 	2; 124D.15, subdivision 12, by adding a subdivision; 124D.20, subdivision 
1.16 	8; 124D.4531, as amended; 124D.59, subdivision 2; 124D.65, subdivision 5; 
1.17 	125A.03; 125A.21, subdivisions 2, 3, 5, 7; 125A.515, by adding a subdivision; 
1.18 	125A.69, subdivision 1; 125A.76, subdivision 5; 125A.79, subdivisions 1, 7; 
1.19 	126C.01, by adding subdivisions; 126C.05, subdivisions 1, 3, 5, 6, 8, 16, 17; 
1.20 	126C.10, subdivisions 1, 2, 2a, 3, 4, 6, 13, 13a, 14, 18, by adding subdivisions; 
1.21 	126C.126; 126C.13, subdivisions 4, 5; 126C.17, subdivisions 1, 5, 6, by adding a 
1.22 	subdivision; 126C.20; 126C.40, subdivision 1; 126C.54; 127A.30, subdivision 2; 
1.23 	127A.42, subdivision 2; 127A.43; 127A.441; 127A.45, subdivisions 2, 3, 13, 
1.24 	by adding subdivisions; 127A.51; 169.447, subdivision 2a; 169.4503, by adding 
1.25 	a subdivision; 171.321, subdivision 2; Minnesota Statutes 2009 Supplement, 
1.26 	sections 16A.152, subdivision 2, as amended; 120B.023, subdivision 2; 120B.30, 
1.27 	subdivisions 1, 1a, 3, 4, by adding a subdivision; 120B.35, subdivision 3; 
1.28 	120B.36, subdivision 1; 122A.09, subdivision 4; 122A.40, subdivision 8; 
1.29 	122A.41, subdivision 5; 123B.143, subdivision 1; 123B.54; 123B.92, subdivision 
1.30 	1; 124D.10, subdivisions 3, 4, 4a, 6a, 8, 11, 23; 124D.15, subdivision 3; 125A.02, 
1.31 	subdivision 1; 125A.091, subdivision 7; 125A.63, subdivisions 2, 4, 5; 126C.41, 
1.32 	subdivision 2; 126C.44; 171.02, subdivision 2b; 256B.0625, subdivision 26; 
1.33 	Laws 2009, chapter 79, article 5, section 60; Laws 2009, chapter 96, article 2, 
1.34 	sections 64; 67, subdivisions 14, 17; article 4, section 12, subdivision 3; article 5, 
1.35 	section 13, subdivision 4; proposing coding for new law in Minnesota Statutes, 
1.36 	chapters 120B; 121A; 122A; 123A; 123B; 124D; 125A; 126C; repealing 
1.37 	Minnesota Statutes 2008, sections 122A.24; 123B.57, subdivisions 3, 4, 5; 
1.38 	123B.591; 125A.54; 125A.76, subdivision 4; 125A.79, subdivision 6; 126C.10, 
1.39 	subdivisions 2b, 13a, 13b, 25, 26, 27, 28, 29, 30, 31, 31a, 31b, 32, 33, 35, 36; 
2.1 	126C.12; 126C.126; 126C.17, subdivision 9a; 127A.46; 127A.50; Minnesota 
2.2 	Statutes 2009 Supplement, sections 123B.54; 126C.10, subdivisions 24, 34.
2.3 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.4 	ARTICLE 1
2.5 	GENERAL EDUCATION

2.6 	Section 1. Minnesota Statutes 2008, section 11A.16, subdivision 5, is amended to read:
2.7 		Subd. 5.Calculation of income. As of the end of each fiscal year, the state 
2.8 	board shall calculate the investment income earned by the permanent school fund. The 
2.9 	investment income earned by the fund shall equal the amount of interest on debt securities 
2.10 	and, dividends on equity securities, and interest earned on certified monthly earnings prior 
2.11 	to the transfer to the Department of Education. Gains and losses arising from the sale of 
2.12 	securities shall be apportioned as follows:
2.13 	(a) If the sale of securities results in a net gain during a fiscal year, the gain shall 
2.14 	be apportioned in equal installments over the next ten fiscal years to offset net losses in 
2.15 	those years. If any portion of an installment is not needed to recover subsequent losses 
2.16 	identified in paragraph (b) it shall be added to the principal of the fund.
2.17 	(b) If the sale of securities results in a net loss during a fiscal year, the net loss shall 
2.18 	be recovered first from the gains in paragraph (a) apportioned to that fiscal year. If these 
2.19 	gains are insufficient, any remaining net loss shall be recovered from interest and dividend 
2.20 	income in equal installments over the following ten fiscal years.

2.21 	Sec. 2. Minnesota Statutes 2008, section 120B.07, is amended to read:
2.22 	120B.07 EARLY GRADUATION.
2.23 	(a) Notwithstanding any law to the contrary, any secondary school student who has 
2.24 	completed all required courses or standards may, with the approval of the student, the 
2.25 	student's parent or guardian, and local school officials, graduate before the completion 
2.26 	of the school year.
2.27 	(b) General education revenue attributable to the student must be paid as though the 
2.28 	student was in attendance for the entire year unless the student participates in the early 
2.29 	graduation achievement scholarship program under section 120B.08.

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

2.31 	Sec. 3. [120B.08] EARLY GRADUATION ACHIEVEMENT SCHOLARSHIP 
2.32 	PROGRAM.
3.1 		Subdivision 1.Participation. A student who qualifies for early graduation under 
3.2 	section 120B.07 is eligible to participate in the early graduation achievement scholarship 
3.3 	program.
3.4 		Subd. 2.Scholarship amounts. A student who participates in the early graduation 
3.5 	achievement scholarship program is eligible for a scholarship of $2,500 if the student 
3.6 	qualifies for graduation one semester early, $5,000 if the student qualifies for graduation 
3.7 	two semesters early, or $7,500 if the student qualifies for graduation three or more 
3.8 	semesters early.
3.9 		Subd. 3.Scholarship uses. An early graduation achievement scholarship may be 
3.10 	used at any accredited institution of higher education.
3.11 		Subd. 4.Application. A qualifying student may apply to the commissioner of 
3.12 	education for an early graduation achievement scholarship. The application must be in 
3.13 	the form and manner specified by the commissioner. Upon verification of the qualifying 
3.14 	student's course completion necessary for graduation, the department must issue the 
3.15 	student a certificate showing the student's scholarship amount.
3.16 		Subd. 5.Enrollment verification. A student who qualifies under this section 
3.17 	and enrolls in an accredited higher education institution must submit a form to the 
3.18 	commissioner verifying the student's enrollment in the higher education institution and the 
3.19 	tuition charges for that semester. Within 15 days of receipt of a student's enrollment and 
3.20 	tuition verification form, the commissioner must issue a scholarship check to the student in 
3.21 	the lesser of the tuition amount for that semester or the maximum amount of the student's 
3.22 	early graduation achievement scholarship. A student may continue to submit enrollment 
3.23 	verification forms to the commissioner until the student has used the full amount of the 
3.24 	student's graduation achievement scholarship.
3.25 		Subd. 6.General education money transferred. The commissioner must transfer 
3.26 	the amounts necessary to fund the early graduation achievement scholarships from the 
3.27 	general education aid appropriation for that year.

3.28 	EFFECTIVE DATE. This section is effective for fiscal years 2011 and later.

3.29 	Sec. 4. Minnesota Statutes 2008, section 123B.63, subdivision 3, is amended to read:
3.30 		Subd. 3.Capital project levy referendum. (a) A district may levy the local tax 
3.31 	rate approved by a majority of the electors voting on the question to provide funds for 
3.32 	an approved project. The election must take place no more than five years before the 
3.33 	estimated date of commencement of the project. The referendum must be held on a date 
3.34 	set by the board. A referendum for a project not receiving a positive review and comment 
4.1 	by the commissioner under section 123B.71 must be approved by at least 60 percent of 
4.2 	the voters at the election. 
4.3 	(b) The referendum may be called by the school board and may be held: 
4.4 	(1) separately, before an election for the issuance of obligations for the project 
4.5 	under chapter 475; or
4.6 	(2) in conjunction with an election for the issuance of obligations for the project 
4.7 	under chapter 475; or
4.8 	(3) notwithstanding section 475.59, as a conjunctive question authorizing both the 
4.9 	capital project levy and the issuance of obligations for the project under chapter 475. Any 
4.10 	obligations authorized for a project may be issued within five years of the date of the 
4.11 	election. 
4.12 	(c) The ballot must provide a general description of the proposed project, state the 
4.13 	estimated total cost of the project, state whether the project has received a positive or 
4.14 	negative review and comment from the commissioner, state the maximum amount of the 
4.15 	capital project levy as a percentage of net tax capacity, state the amount that will be raised 
4.16 	by that local tax rate in the first year it is to be levied, and state the maximum number of 
4.17 	years that the levy authorization will apply.
4.18 	The ballot must contain a textual portion with the information required in this 
4.19 	section and a question stating substantially the following:
4.20 	"Shall the capital project levy proposed by the board of .......... School District 
4.21 	No. .......... be approved?"
4.22 	If approved, the amount provided by the approved local tax rate applied to the net 
4.23 	tax capacity for the year preceding the year the levy is certified may be certified for the 
4.24 	number of years, not to exceed ten, approved.
4.25 	(d) If the authority for an existing project is expiring and the district is proposing 
4.26 	a new project at the same maximum tax rate, the general description on the ballot may 
4.27 	state that the capital project levy is being renewed and that the tax rate is not being 
4.28 	increased from the previous year's rate and the notice required under section 276.60, may 
4.29 	be modified to read: "BY VOTING YES ON THIS BALLOT QUESTION, YOU ARE 
4.30 	VOTING TO EXTEND THE AUTHORITY FOR AN EXPIRING CAPITAL PROJECT 
4.31 	AT THE SAME TAX RATE."
4.32 	(e) In the event a conjunctive question proposes to authorize both the capital project 
4.33 	levy and the issuance of obligations for the project, appropriate language authorizing the 
4.34 	issuance of obligations must also be included in the question.
4.35 	(f) The district must notify the commissioner of the results of the referendum.

5.1 	EFFECTIVE DATE. This section is effective for referenda conducted on or after 
5.2 	July 1, 2010.

5.3 	Sec. 5. Minnesota Statutes 2008, section 124D.09, subdivision 20, is amended to read:
5.4 		Subd. 20.Textbooks; materials. All textbooks and equipment provided to a pupil, 
5.5 	and paid for under subdivision 13, are the property of the pupil's postsecondary institution. 
5.6 	Each pupil is required to return all textbooks and equipment to the postsecondary 
5.7 	institution after the course has ended. The postsecondary institution may bill the pupil for 
5.8 	any textbooks and equipment that are not promptly returned by the student.

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

5.10 	Sec. 6. Minnesota Statutes 2008, section 125A.79, subdivision 1, is amended to read:
5.11 		Subdivision 1.Definitions. For the purposes of this section, the definitions in this 
5.12 	subdivision apply.
5.13 	(a) "Unreimbursed special education cost" means the sum of the following:
5.14 	(1) expenditures for teachers' salaries, contracted services, supplies, equipment, and 
5.15 	transportation services eligible for revenue under section 125A.76; plus
5.16 	(2) expenditures for tuition bills received under sections 125A.03 to 125A.24 and 
5.17 	125A.65 for services eligible for revenue under section 125A.76, subdivision 2; minus
5.18 	(3) revenue for teachers' salaries, contracted services, supplies, equipment, and 
5.19 	transportation services under section 125A.76; minus
5.20 	(4) tuition receipts under sections 125A.03 to 125A.24 and 125A.65 for services 
5.21 	eligible for revenue under section 125A.76, subdivision 2.
5.22 	(b) "General revenue" for a school district means the sum of the general education 
5.23 	revenue according to section 126C.10, subdivision 1, excluding alternative teacher 
5.24 	compensation revenue, plus the total qualifying referendum revenue specified in paragraph 
5.25 	(e) minus transportation sparsity revenue minus total operating capital revenue. "General 
5.26 	revenue" for a charter school means the sum of the general education revenue according to 
5.27 	section 124D.11, subdivision 1, and transportation revenue according to section 124D.11, 
5.28 	subdivision 2, excluding alternative teacher compensation revenue, minus referendum 
5.29 	equalization aid minus transportation sparsity revenue minus operating capital revenue.
5.30 	(c) "Average daily membership" has the meaning given it in section 126C.05.
5.31 	(d) "Program growth factor" means 1.02 for fiscal year 2012 and later.
5.32 	(e) "Total qualifying referendum revenue" means two-thirds of the district's total 
5.33 	referendum revenue as adjusted according to section 127A.47, subdivision 7, paragraphs 
6.1 	(a) to (c), for fiscal year 2006, one-third of the district's total referendum revenue for fiscal 
6.2 	year 2007, and none of the district's total referendum revenue for fiscal year 2008 and later.

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

6.4 	Sec. 7. Minnesota Statutes 2008, section 126C.10, subdivision 2a, is amended to read:
6.5 		Subd. 2a.Extended time revenue. (a) A school district's extended time revenue 
6.6 	is equal to the product of $4,601 (1) the formula allowance for that year minus $523,
6.7 	and (2) the sum of the adjusted marginal cost pupil units of the district for each pupil in 
6.8 	average daily membership in excess of 1.0 and less than 1.2 according to section 126C.05, 
6.9 	subdivision 8, if the district has extended time average daily membership in the current 
6.10 	year. 
6.11 	(b) A school district's extended time revenue may be used for extended day 
6.12 	programs, extended week programs, summer school, and other programming authorized 
6.13 	under the learning year program.

6.14 	EFFECTIVE DATE. This section is effective for revenue for fiscal years 2011 
6.15 	and later.

6.16 	Sec. 8. Minnesota Statutes 2008, section 126C.10, subdivision 13a, is amended to read:
6.17 		Subd. 13a.Operating capital levy. To obtain operating capital revenue for fiscal 
6.18 	year 2007 and later, a district may levy an amount not more than the product of its 
6.19 	operating capital revenue for the fiscal year times the lesser of one or the ratio of its 
6.20 	adjusted net tax capacity per adjusted marginal cost pupil unit to the operating capital 
6.21 	equalizing factor. The operating capital equalizing factor equals $22,222 for fiscal year 
6.22 	2006, and $10,700 for fiscal year years  2007 through 2011, $10,961 for fiscal year 2012, 
6.23 	and $11,075 for fiscal years 2013 and later.

6.24 	EFFECTIVE DATE. This section is effective for fiscal years 2012 and later.

6.25 	Sec. 9. Minnesota Statutes 2008, section 126C.10, subdivision 14, is amended to read:
6.26 		Subd. 14.Uses of total operating capital revenue. Total operating capital revenue 
6.27 	may be used only for the following purposes:
6.28 	(1) to acquire land for school purposes;
6.29 	(2) to acquire or construct buildings for school purposes;
6.30 	(3) to rent or lease buildings, including the costs of building repair or improvement 
6.31 	that are part of a lease agreement;
7.1 	(4) to improve and repair school sites and buildings, and equip or reequip school 
7.2 	buildings with permanent attached fixtures, including library media centers;
7.3 	(5) for a surplus school building that is used substantially for a public nonschool 
7.4 	purpose;
7.5 	(6) to eliminate barriers or increase access to school buildings by individuals with a 
7.6 	disability;
7.7 	(7) to bring school buildings into compliance with the State Fire Code adopted 
7.8 	according to chapter 299F;
7.9 	(8) to remove asbestos from school buildings, encapsulate asbestos, or make 
7.10 	asbestos-related repairs;
7.11 	(9) to clean up and dispose of polychlorinated biphenyls found in school buildings;
7.12 	(10) to clean up, remove, dispose of, and make repairs related to storing heating fuel 
7.13 	or transportation fuels such as alcohol, gasoline, fuel oil, and special fuel, as defined 
7.14 	in section 296A.01; 
7.15 	(11) for energy audits for school buildings and to modify buildings if the audit 
7.16 	indicates the cost of the modification can be recovered within ten years;
7.17 	(12) to improve buildings that are leased according to section 123B.51, subdivision 4; 
7.18 	(13) to pay special assessments levied against school property but not to pay 
7.19 	assessments for service charges;
7.20 	(14) to pay principal and interest on state loans for energy conservation according to 
7.21 	section 216C.37 or loans made under the Douglas J. Johnson Economic Protection Trust 
7.22 	Fund Act according to sections 298.292 to 298.298; 
7.23 	(15) to purchase or lease interactive telecommunications equipment;
7.24 	(16) by board resolution, to transfer money into the debt redemption fund to: (i) 
7.25 	pay the amounts needed to meet, when due, principal and interest payments on certain 
7.26 	obligations issued according to chapter 475; or (ii) pay principal and interest on debt 
7.27 	service loans or capital loans according to section 126C.70; 
7.28 	(17) to pay operating capital-related assessments of any entity formed under a 
7.29 	cooperative agreement between two or more districts;
7.30 	(18) to purchase or lease computers and related materials, copying machines, 
7.31 	telecommunications equipment, and other noninstructional equipment;
7.32 	(19) to purchase or lease assistive technology or equipment for instructional 
7.33 	programs;
7.34 	(20) to purchase textbooks;
7.35 	(21) to purchase new and replacement library media resources or technology;
7.36 	(22) to purchase vehicles;
8.1 	(23) to purchase or lease telecommunications equipment, computers, and related 
8.2 	equipment for integrated information management systems for:
8.3 	(i) managing and reporting learner outcome information for all students under a 
8.4 	results-oriented graduation rule;
8.5 	(ii) managing student assessment, services, and achievement information required 
8.6 	for students with individual education plans; and
8.7 	(iii) other classroom information management needs; and
8.8 	(24) to pay personnel costs directly related to the acquisition, operation, and 
8.9 	maintenance of telecommunications systems, computers, related equipment, and network 
8.10 	and applications software; and
8.11 	(25) to pay the costs directly associated with closing a school facility, including 
8.12 	moving and storage costs.

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

8.14 	Sec. 10. Minnesota Statutes 2008, section 126C.126, is amended to read:
8.15 	126C.126 REALLOCATING GENERAL EDUCATION REVENUE FOR 
8.16 	ALL-DAY KINDERGARTEN AND PREKINDERGARTEN.
8.17 	(a) In order to provide additional revenue for an optional all-day kindergarten 
8.18 	program, a district may reallocate general education revenue attributable to 12th grade 
8.19 	students who have graduated early under section 120B.07 and who do not participate in 
8.20 	the early graduation achievement scholarship program under section 120B.08. 
8.21 	(b) A school district may spend general education revenue on extended time 
8.22 	kindergarten and prekindergarten programs.

8.23 	EFFECTIVE DATE. This section is effective for fiscal years 2011 and later.

8.24 	Sec. 11. Minnesota Statutes 2008, section 126C.17, is amended by adding a subdivision 
8.25 	to read:
8.26 		Subd. 9a.Renewal by school board. (a) Notwithstanding the election requirements 
8.27 	of subdivision 9, a school board may renew an expiring referendum by board action if:
8.28 	(1) the per pupil amount of the referendum is the same as the amount expiring;
8.29 	(2) the term of the renewed referendum is no longer than the initial term approved 
8.30 	by the voters; and
8.31 	(3) the school board has adopted a written resolution authorizing the renewal after 
8.32 	holding a meeting and allowing public testimony on the proposed renewal.
9.1 	(b) The resolution must be adopted by the school board by June 15 of any calendar 
9.2 	year and becomes effective 60 days after its adoption unless a petition to revoke the 
9.3 	referendum authority, signed by a number of qualified voters in excess of 30 percent of 
9.4 	the registered voters of the district on the day of the petition, is filed with the board. A 
9.5 	referendum revocation invoked by petition must be held on the first Tuesday after the first 
9.6 	Monday in November of the calendar year the resolution is adopted.
9.7 	(c) The board of directors of a school district where more than 60 percent of the 
9.8 	district's enrollment is eligible for free or reduced price meals may renew a referendum 
9.9 	that expired between January 1, 2004, and January 1, 2010, if that referendum has not yet 
9.10 	been renewed, according to the provisions of this subdivision.

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

9.12 	Sec. 12. Minnesota Statutes 2008, section 126C.20, is amended to read:
9.13 	126C.20 ANNUAL GENERAL EDUCATION AID APPROPRIATION.
9.14 	There is annually appropriated from the general fund to the department the amount 
9.15 	necessary for general education aid under section 126C.13 and the early graduation 
9.16 	achievement scholarship program under section 120B.08. This amount must be reduced 
9.17 	by the amount of any money specifically appropriated for the same purpose in any year 
9.18 	from any state fund.

9.19 	EFFECTIVE DATE. This section is effective for fiscal years 2011 and later.

9.20 	Sec. 13. Minnesota Statutes 2009 Supplement, section 126C.41, subdivision 2, is 
9.21 	amended to read:
9.22 		Subd. 2.Retired employee health benefits. (a) A district may levy an amount up 
9.23 	to the amount the district is required by the collective bargaining agreement in effect 
9.24 	on March 30, 1992, to pay for health insurance or unreimbursed medical expenses for 
9.25 	licensed and nonlicensed employees who have terminated services in the employing 
9.26 	district and withdrawn from active teaching service or other active service, as applicable, 
9.27 	before July 1, 1992, and to pay for health insurance or unreimbursed medical expenses 
9.28 	for licensed and nonlicensed employees who have terminated services in the employing 
9.29 	district and withdrawn from active teaching service or other active service, as applicable 
9.30 	before July 1, 1998, only if a sunset clause is in effect for the current collective bargaining 
9.31 	agreement. The total amount of the levy each year may not exceed $600,000.
9.32 	(b) In addition to the levy authority granted under paragraph (a), a school district 
9.33 	may levy for other postemployment benefits expenses actually paid during the previous 
10.1 	fiscal year. For purposes of this subdivision, "postemployment benefits" means benefits 
10.2 	giving rise to a liability under Statement No. 45 of the Government Accounting Standards 
10.3 	Board. A district seeking levy authority under this subdivision must:
10.4 	(1) create or have created an actuarial liability to pay postemployment benefits to 
10.5 	employees or officers after their termination of service;
10.6 	(2) have a sunset clause in effect for the current collective bargaining agreement as 
10.7 	required by paragraph (a); and
10.8 	(3) apply for the authority in the form and manner required by the commissioner 
10.9 	of education.
10.10 	If the total levy authority requested under this paragraph exceeds the amount established 
10.11 	in paragraph (c), the commissioner must proportionately reduce each district's maximum 
10.12 	levy authority under this subdivision. The commissioner may subsequently adjust each 
10.13 	district's levy authority under this subdivision so long as the total levy authority does not 
10.14 	exceed the maximum levy authority for that year.
10.15 	(c) The maximum levy authority under paragraph (b) must not exceed the following 
10.16 	amounts:
10.17 	(1) $9,242,000 for taxes payable in 2010;
10.18 	(2) $29,863,000 for taxes payable in 2011; and
10.19 	(3) for taxes payable in 2012 and later, the maximum levy authority must not exceed 
10.20 	the sum of the previous year's authority and $14,000,000.

10.21 	Sec. 14. Minnesota Statutes 2009 Supplement, section 126C.44, is amended to read:
10.22 	126C.44 SAFE SCHOOLS LEVY.
10.23 	(a) Each district may make a levy on all taxable property located within the district 
10.24 	for the purposes specified in this section. The maximum amount which may be levied 
10.25 	for all costs under this section shall be equal to $30 multiplied by the district's adjusted 
10.26 	marginal cost pupil units for the school year. The proceeds of the levy must be reserved and 
10.27 	used for directly funding the following purposes or for reimbursing the cities and counties 
10.28 	who contract with the district for the following purposes: (1) to pay the costs incurred for 
10.29 	the salaries, benefits, and transportation costs of peace officers and sheriffs for liaison in 
10.30 	services in the district's schools; (2) to pay the costs for a drug abuse prevention program 
10.31 	as defined in section 609.101, subdivision 3, paragraph (e), in the elementary schools; 
10.32 	(3) to pay the costs for a gang resistance education training curriculum in the district's 
10.33 	schools; (4) to pay the costs for security in the district's schools and on school property; (5) 
10.34 	to pay the costs for other crime prevention, drug abuse, student and staff safety, voluntary 
10.35 	opt-in suicide prevention tools, and violence prevention measures taken by the school 
11.1 	district; or (6) to pay costs for licensed school counselors, licensed school nurses, licensed 
11.2 	school social workers, licensed school psychologists, and licensed alcohol and chemical 
11.3 	dependency counselors to help provide early responses to problems. For expenditures 
11.4 	under clause (1), the district must initially attempt to contract for services to be provided 
11.5 	by peace officers or sheriffs with the police department of each city or the sheriff's 
11.6 	department of the county within the district containing the school receiving the services. If 
11.7 	a local police department or a county sheriff's department does not wish to provide the 
11.8 	necessary services, the district may contract for these services with any other police or 
11.9 	sheriff's department located entirely or partially within the school district's boundaries.
11.10 	(b) A school district that is a member of an intermediate school district may 
11.11 	include in its authority under this section the costs associated with safe schools activities 
11.12 	authorized under paragraph (a) for intermediate school district programs. This authority 
11.13 	must not exceed $10 times the adjusted marginal cost pupil units of the member districts. 
11.14 	This authority is in addition to any other authority authorized under this section. Revenue 
11.15 	raised under this paragraph must be transferred to the intermediate school district.
11.16 	(c) A school district must set aside at least $3 per adjusted marginal cost pupil 
11.17 	unit of the safe schools levy proceeds for the purposes authorized under paragraph (a), 
11.18 	clause (6). The district must annually certify either that: (1) its total spending on services 
11.19 	provided by the employees listed in paragraph (a), clause (6), is not less than the sum of 
11.20 	its expenditures for these purposes, excluding amounts spent under this section, in the 
11.21 	previous year plus the amount spent under this section; or (2) that the district's full-time 
11.22 	equivalent number of employees listed in paragraph (a), clause (6), is not less than the 
11.23 	number for the previous year; or (3) that the district's full-time equivalent number of 
11.24 	employees listed in paragraph (a), clause (6), including those provided through a special 
11.25 	education cooperative, intermediate school district, or education district, is not less than 
11.26 	the number for the previous year.

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

11.28 	ARTICLE 2
11.29 	EDUCATION EXCELLENCE

11.30 	Section 1. Minnesota Statutes 2008, section 120A.41, is amended to read:
11.31 	120A.41 LENGTH OF SCHOOL YEAR; DAYS OF INSTRUCTION.
11.32 	A school board's annual school calendar must include at least the number of days
11.33 	of student instruction the board formally adopted as its school calendar at the beginning of 
11.34 	the 1996-1997 school year 425 hours of instruction for a kindergarten student without a 
12.1 	disability, 935 hours of instruction for a student in grades 1 through 6, and 1,020 hours of 
12.2 	instruction for a student in grades 7 through 12, not including summer school.

12.3 	EFFECTIVE DATE. This section is effective for the 2010-2011 school year and 
12.4 	later.

12.5 	Sec. 2. Minnesota Statutes 2008, section 120B.021, subdivision 1, is amended to read:
12.6 		Subdivision 1.Required academic standards. The following subject areas are 
12.7 	required for statewide accountability:
12.8 	(1) language arts;
12.9 	(2) mathematics;
12.10 	(3) science;
12.11 	(4) social studies, including history, geography, economics, and government and 
12.12 	citizenship;
12.13 	(5) physical education;
12.14 	(6) health and physical education, for which locally developed academic standards 
12.15 	apply; and
12.16 	(6)(7) the arts, for which statewide or locally developed academic standards apply, 
12.17 	as determined by the school district. Public elementary and middle schools must offer at 
12.18 	least three and require at least two of the following four arts areas: dance; music; theater; 
12.19 	and visual arts. Public high schools must offer at least three and require at least one of the 
12.20 	following five arts areas: media arts; dance; music; theater; and visual arts.
12.21 	The commissioner must submit proposed standards in science and social studies to 
12.22 	the legislature by February 1, 2004.
12.23 	For purposes of applicable federal law, the academic standards for language arts, 
12.24 	mathematics, and science apply to all public school students, except the very few students 
12.25 	with extreme cognitive or physical impairments for whom an individualized education 
12.26 	plan team has determined that the required academic standards are inappropriate. 
12.27 	An individualized education plan team that makes this determination must establish 
12.28 	alternative standards.
12.29 	A school district, no later than the 2007-2008 school year, must adopt graduation 
12.30 	requirements that meet or exceed state graduation requirements established in law or 
12.31 	rule. A school district that incorporates these state graduation requirements before the 
12.32 	2007-2008 school year must provide students who enter the 9th grade in or before 
12.33 	the 2003-2004 school year the opportunity to earn a diploma based on existing locally 
12.34 	established graduation requirements in effect when the students entered the 9th grade. 
13.1 	District efforts to develop, implement, or improve instruction or curriculum as a result 
13.2 	of the provisions of this section must be consistent with sections 120B.10, 120B.11, 
13.3 	and 120B.20. 
13.4 	The commissioner must include the contributions of Minnesota American Indian 
13.5 	tribes and communities as they relate to the academic standards during the review and 
13.6 	revision of the required academic standards.

13.7 	EFFECTIVE DATE. This section is effective the day following final enactment 
13.8 	and applies to all school districts and charter schools beginning in the 2012-2013 school 
13.9 	year and later. A school district or charter school is strongly encouraged to implement 
13.10 	state physical education standards in an earlier school year than the 2012-2013 school 
13.11 	year if it has adopted physical education standards equivalent to the standards developed 
13.12 	by the National Association for Sport and Physical Education under section 38 on the 
13.13 	effective date of this act, or if it is scheduled to undertake the periodic review of its local 
13.14 	physical education standards under Minnesota Statutes, section 120B.023, subdivision 2, 
13.15 	paragraph (g), in a school year before the 2012-2013 school year, it is strongly encouraged 
13.16 	to implement state physical education standards consistent with section 38 in an earlier 
13.17 	school year.

13.18 	Sec. 3. Minnesota Statutes 2009 Supplement, section 120B.023, subdivision 2, is 
13.19 	amended to read:
13.20 		Subd. 2.Revisions and reviews required. (a) The commissioner of education must 
13.21 	revise and appropriately embed technology and information literacy standards consistent 
13.22 	with recommendations from school media specialists into the state's academic standards 
13.23 	and graduation requirements and implement a review cycle for state academic standards 
13.24 	and related benchmarks, consistent with this subdivision. During each review cycle, the 
13.25 	commissioner also must examine the alignment of each required academic standard and 
13.26 	related benchmark with the knowledge and skills students need for college readiness and 
13.27 	advanced work in the particular subject area.
13.28 	(b) The commissioner in the 2006-2007 school year must revise and align the state's 
13.29 	academic standards and high school graduation requirements in mathematics to require 
13.30 	that students satisfactorily complete the revised mathematics standards, beginning in the 
13.31 	2010-2011 school year. Under the revised standards:
13.32 	(1) students must satisfactorily complete an algebra I credit by the end of eighth 
13.33 	grade; and
13.34 	(2) students scheduled to graduate in the 2014-2015 school year or later must 
13.35 	satisfactorily complete an algebra II credit or its equivalent.
14.1 	The commissioner also must ensure that the statewide mathematics assessments 
14.2 	administered to students in grades 3 through 8 and 11 are aligned with the state academic 
14.3 	standards in mathematics, consistent with section 120B.30, subdivision 1, paragraph 
14.4 	(b). The commissioner must implement a review of the academic standards and related 
14.5 	benchmarks in mathematics beginning in the 2015-2016 school year.
14.6 	(c) The commissioner in the 2007-2008 school year must revise and align the state's 
14.7 	academic standards and high school graduation requirements in the arts to require that 
14.8 	students satisfactorily complete the revised arts standards beginning in the 2010-2011 
14.9 	school year. The commissioner must implement a review of the academic standards and 
14.10 	related benchmarks in arts beginning in the 2016-2017 school year.
14.11 	(d) The commissioner in the 2008-2009 school year must revise and align the state's 
14.12 	academic standards and high school graduation requirements in science to require that 
14.13 	students satisfactorily complete the revised science standards, beginning in the 2011-2012 
14.14 	school year. Under the revised standards, students scheduled to graduate in the 2014-2015 
14.15 	school year or later must satisfactorily complete a chemistry or physics credit. The 
14.16 	commissioner must implement a review of the academic standards and related benchmarks 
14.17 	in science beginning in the 2017-2018 school year.
14.18 	(e) The commissioner in the 2009-2010 school year must revise and align the state's 
14.19 	academic standards and high school graduation requirements in language arts to require 
14.20 	that students satisfactorily complete the revised language arts standards beginning in the 
14.21 	2012-2013 school year. The commissioner must implement a review of the academic 
14.22 	standards and related benchmarks in language arts beginning in the 2018-2019 school year.
14.23 	(f) The commissioner in the 2010-2011 school year must revise and align the state's 
14.24 	academic standards and high school graduation requirements in social studies to require 
14.25 	that students satisfactorily complete the revised social studies standards beginning in the 
14.26 	2013-2014 school year. The commissioner must implement a review of the academic 
14.27 	standards and related benchmarks in social studies beginning in the 2019-2020 school year.
14.28 	(g) School districts and charter schools must revise and align local academic 
14.29 	standards and high school graduation requirements in health, physical education, world 
14.30 	languages, and career and technical education to require students to complete the revised 
14.31 	standards beginning in a school year determined by the school district or charter school. 
14.32 	School districts and charter schools must formally establish a periodic review cycle for 
14.33 	the academic standards and related benchmarks in health, physical education, world 
14.34 	languages, and career and technical education.
14.35 	(h) The commissioner in the 2013-2014 school year and later must use the good 
14.36 	cause exemption under section 14.388, subdivision 1, clause (3), to amend the rules 
15.1 	governing state physical education standards to conform the state standards to changes in 
15.2 	the standards developed by the National Association for Sport and Physical Education. 
15.3 	Directions to the commissioner to embed technology and information literacy standards 
15.4 	under paragraph (a) and other requirements related to state academic standards under 
15.5 	this chapter do not apply.

15.6 	EFFECTIVE DATE. This section is effective the day following final enactment 
15.7 	and applies to all school districts and charter schools beginning in the 2012-2013 school 
15.8 	year and later, except that paragraph (h) applies beginning in the 2013-2014 school year 
15.9 	and later. A school district or charter school is strongly encouraged to implement state 
15.10 	physical education standards in an earlier school year than the 2012-2013 school year if it 
15.11 	has adopted physical education standards equivalent to the standards developed by the 
15.12 	National Association for Sport and Physical Education under section 38 on the effective 
15.13 	date of this act, or if it is scheduled to undertake the periodic review of its local physical 
15.14 	education standards under paragraph (g) in a school year before the 2012-2013 school 
15.15 	year, it is strongly encouraged to implement state physical education standards consistent 
15.16 	with section 38 in an earlier school year.

15.17 	Sec. 4. Minnesota Statutes 2008, section 120B.15, is amended to read:
15.18 	120B.15 GIFTED AND TALENTED STUDENTS PROGRAMS.
15.19 	(a) School districts and charter schools may identify students, locally develop 
15.20 	programs addressing instructional and affective needs, provide staff development, and 
15.21 	evaluate programs to provide gifted and talented students with challenging and appropriate 
15.22 	educational programs.
15.23 	(b) School districts and charter schools may adopt guidelines for assessing and 
15.24 	identifying students for participation in gifted and talented programs. The guidelines 
15.25 	should include the use of:
15.26 	(1) multiple and objective criteria; and
15.27 	(2) assessments and procedures that are valid and reliable, fair, and based on 
15.28 	current theory and research addressing the use of tools and methods that are sensitive to 
15.29 	underrepresented groups, including, but not limited to, students who are low income, 
15.30 	minority, gifted and learning disabled, and English language learners.
15.31 	(c) School districts and charter schools must adopt procedures for the academic 
15.32 	acceleration of gifted and talented students. These procedures must include how the 
15.33 	district will:
15.34 	(1) assess a student's readiness and motivation for acceleration; and
16.1 	(2) match the level, complexity, and pace of the curriculum to a student to achieve 
16.2 	the best type of academic acceleration for that student.

16.3 	Sec. 5. [120B.21] MENTAL HEALTH EDUCATION.
16.4 	The legislature encourages districts to provide instruction in mental health for 
16.5 	students in grades 7 through 12. Instruction must be aligned with local health standards 
16.6 	and integrated into a district's existing programs, curriculum, or the general school 
16.7 	environment. The commissioner of education, in consultation with mental health 
16.8 	organizations, shall provide assistance to districts including:
16.9 	(1) age-appropriate model learning activities for grades 7 through 12 that address 
16.10 	mental health components of the National Health Education Standards and the benchmarks 
16.11 	developed by the department's quality teaching network in health and best practices in 
16.12 	mental health education; and
16.13 	(2) a directory of resources for planning and implementing age-appropriate mental 
16.14 	health curriculum and instruction in grades 7 through 12.

16.15 	Sec. 6. Minnesota Statutes 2009 Supplement, section 120B.30, subdivision 1, is 
16.16 	amended to read:
16.17 		Subdivision 1.Statewide testing.  (a) The commissioner, with advice from experts 
16.18 	with appropriate technical qualifications and experience and stakeholders, consistent with 
16.19 	subdivision 1a, shall include in the comprehensive assessment system, for each grade 
16.20 	level to be tested, state-constructed tests developed from and to be computer-adaptive 
16.21 	reading and mathematics assessments for general education students that are aligned 
16.22 	with the state's required academic standards under section 120B.021, include multiple 
16.23 	choice questions, and be administered annually to all students in grades 3 through 8. 
16.24 	State-developed high school tests aligned with the state's required academic standards 
16.25 	under section 120B.021 and administered to all high school students in a subject other 
16.26 	than writing must include multiple choice questions. The commissioner shall establish 
16.27 	one or more months during which schools shall administer the tests to students each 
16.28 	school year. For students enrolled in grade 8 before the 2005-2006 school year, Minnesota 
16.29 	basic skills tests in reading, mathematics, and writing shall fulfill students' basic skills 
16.30 	testing requirements for a passing state notation. The passing scores of basic skills tests in 
16.31 	reading and mathematics are the equivalent of 75 percent correct for students entering 
16.32 	grade 9 based on the first uniform test administered in February 1998. Students who have 
16.33 	not successfully passed a Minnesota basic skills test by the end of the 2011-2012 school 
16.34 	year must pass the graduation-required assessments for diploma under paragraph (b).
17.1 	(b) The state assessment system must be aligned to the most recent revision of 
17.2 	academic standards as described in section 120B.023 in the following manner:
17.3 	(1) mathematics;
17.4 	(i) grades 3 through 8 beginning in the 2010-2011 school year; and
17.5 	(ii) high school level beginning in the 2013-2014 2014-2015 school year;
17.6 	(2) science; grades 5 and 8 and at the high school level beginning in the 2011-2012 
17.7 	school year; and
17.8 	(3) language arts and reading; grades 3 through 8 and high school level beginning in 
17.9 	the 2012-2013 school year.
17.10 	(c) For students enrolled in grade 8 in the 2005-2006 school year and later, only the 
17.11 	following options shall fulfill students' state graduation test requirements:
17.12 	(1) for reading and mathematics:
17.13 	(i) obtaining an achievement level equivalent to or greater than proficient as 
17.14 	determined through a standard setting process on the Minnesota comprehensive 
17.15 	assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing 
17.16 	score as determined through a standard setting process on the graduation-required 
17.17 	assessment for diploma in grade 10 for reading and grade 11 for mathematics or 
17.18 	subsequent retests;
17.19 	(ii) achieving a passing score as determined through a standard setting process on the 
17.20 	state-identified language proficiency test in reading and the mathematics test for English 
17.21 	language learners or the graduation-required assessment for diploma equivalent of those 
17.22 	assessments for students designated as English language learners;
17.23 	(iii) achieving an individual passing score on the graduation-required assessment 
17.24 	for diploma as determined by appropriate state guidelines for students with an individual 
17.25 	education plan or 504 plan;
17.26 	(iv) obtaining achievement level equivalent to or greater than proficient as 
17.27 	determined through a standard setting process on the state-identified alternate assessment 
17.28 	or assessments in grade 10 for reading and grade 11 for mathematics for students with 
17.29 	an individual education plan; or
17.30 	(v) achieving an individual passing score on the state-identified alternate assessment 
17.31 	or assessments as determined by appropriate state guidelines for students with an 
17.32 	individual education plan; and
17.33 	(2) for writing:
17.34 	(i) achieving a passing score on the graduation-required assessment for diploma;
18.1 	(ii) achieving a passing score as determined through a standard setting process on 
18.2 	the state-identified language proficiency test in writing for students designated as English 
18.3 	language learners;
18.4 	(iii) achieving an individual passing score on the graduation-required assessment 
18.5 	for diploma as determined by appropriate state guidelines for students with an individual 
18.6 	education plan or 504 plan; or
18.7 	(iv) achieving an individual passing score on the state-identified alternate assessment 
18.8 	or assessments as determined by appropriate state guidelines for students with an 
18.9 	individual education plan.
18.10 	(d) Students enrolled in grade 8 in any school year from the 2005-2006 school 
18.11 	year to the 2009-2010 school year who do not pass the mathematics graduation-required 
18.12 	assessment for diploma under paragraph (b) are eligible to receive a high school diploma 
18.13 	with a passing state notation if they:
18.14 	(1) complete with a passing score or grade all state and local coursework and credits 
18.15 	required for graduation by the school board granting the students their diploma;
18.16 	(2) participate in district-prescribed academic remediation in mathematics; and
18.17 	(3) fully participate in at least two retests of the mathematics GRAD test or until 
18.18 	they pass the mathematics GRAD test, whichever comes first. A school, district, or 
18.19 	charter school must place on the high school transcript a student's highestcurrent pass 
18.20 	status for each subject that has a required graduation assessment score for each of the 
18.21 	following assessments on the student's high school transcript: the mathematics Minnesota 
18.22 	Comprehensive Assessment, reading Minnesota Comprehensive Assessment, and writing 
18.23 	Graduation-Required Assessment for Diploma, and when applicable, the mathematics 
18.24 	Graduation-Required Assessment for Diploma and reading Graduation-Required 
18.25 	Assessment for Diploma.
18.26 	In addition, the school board granting the students their diplomas may formally 
18.27 	decide to include a notation of high achievement on the high school diplomas of those 
18.28 	graduating seniors who, according to established school board criteria, demonstrate 
18.29 	exemplary academic achievement during high school.
18.30 	(e) The 3rd through 8th grade computer-adaptive assessments and high school test 
18.31 	results shall be available to districts for diagnostic purposes affecting student learning and 
18.32 	district instruction and curriculum, and for establishing educational accountability. The 
18.33 	commissioner must disseminate to the public the computer-adaptive assessments and high 
18.34 	school test results upon receiving those results.
18.35 	(f) The 3rd through 8th grade computer-adaptive assessments and high school tests 
18.36 	must be aligned with state academic standards. The commissioner shall determine the 
19.1 	testing process and the order of administration. The statewide results shall be aggregated 
19.2 	at the site and district level, consistent with subdivision 1a.
19.3 	(g) In addition to the testing and reporting requirements under this section, the 
19.4 	commissioner shall include the following components in the statewide public reporting 
19.5 	system:
19.6 	(1) uniform statewide testing of all students in grades 3 through 8 and at the high 
19.7 	school level that provides appropriate, technically sound accommodations or alternate 
19.8 	assessments;
19.9 	(2) educational indicators that can be aggregated and compared across school 
19.10 	districts and across time on a statewide basis, including average daily attendance, high 
19.11 	school graduation rates, and high school drop-out rates by age and grade level;
19.12 	(3) state results on the American College Test; and
19.13 	(4) state results from participation in the National Assessment of Educational 
19.14 	Progress so that the state can benchmark its performance against the nation and other 
19.15 	states, and, where possible, against other countries, and contribute to the national effort 
19.16 	to monitor achievement.
19.17 	(h) Notwithstanding other law to the contrary, the commissioner must not sign a 
19.18 	memorandum of understanding, agree to participate in a consortium or partnership, or 
19.19 	enter into any other agreement with any other state to develop shared common assessments 
19.20 	of K-12 academic standards without first receiving specific legislative authorization.

19.21 	EFFECTIVE DATE. Paragraph (h) is effective the day following final enactment, 
19.22 	and applies to agreements entered into after the effective date of this act. Requirements for 
19.23 	using computer-adaptive mathematics assessments for grades 3 through 8 apply in the 
19.24 	2011-2012 school year and later and requirements for using computer-adaptive reading 
19.25 	assessments for grades 3 through 8 apply in the 2013-2014 school year and later.

19.26 	Sec. 7. Minnesota Statutes 2009 Supplement, section 120B.30, subdivision 1a, is 
19.27 	amended to read:
19.28 		Subd. 1a.Statewide and local assessments; results. (a) For purposes of this 
19.29 	section, the following definitions have the meanings given them.
19.30 	(1) "Computer-adaptive assessments" means fully adaptive assessments or partially 
19.31 	adaptive assessments.
19.32 	(2) "Fully adaptive assessments" include test items that are on-grade level and items 
19.33 	that may be above or below a student's grade level.
20.1 	(3) "Partially adaptive assessments" include two portions of test items, where one 
20.2 	portion is limited to on-grade level test items and a second portion includes test items that 
20.3 	are on-grade level or above or below a student's grade level.
20.4 	(4) "On-grade level" test items contain subject area content that is aligned to state 
20.5 	academic standards for the grade level of the student taking the assessment.
20.6 	(5) "Above-grade level" test items contain subject area content that is above the grade 
20.7 	level of the student taking the assessment and are considered aligned with state academic 
20.8 	standards to the extent they are aligned with content represented in state academic 
20.9 	standards above the grade level of the student taking the assessment. Notwithstanding 
20.10 	the student's grade level, administering above-grade level test items to a student does not 
20.11 	violate the requirement that state assessments must be aligned with state standards.
20.12 	(6) "Below-grade level" test items contain subject area content that is below 
20.13 	the grade level of the student taking the test and are considered aligned with state 
20.14 	academic standards to the extent they are aligned with content represented in state 
20.15 	academic standards below the student's current grade level. Notwithstanding the student's 
20.16 	grade level, administering below-grade level test items to a student does not violate the 
20.17 	requirement that state assessments must be aligned with state standards.
20.18 	(b) The commissioner must use fully adaptive assessments to the extent no net loss 
20.19 	of federal and state funds occurs as a result of using these assessments. If a net loss of 
20.20 	federal and state funds were to occur under this subdivision, then the commissioner must 
20.21 	use partially adaptive assessments to meet existing federal educational accountability 
20.22 	requirements.
20.23 	(c) For purposes of conforming with existing federal educational accountability 
20.24 	requirements, the commissioner must develop and implement computer-adaptive reading 
20.25 	and mathematics assessments for grades 3 through 8, state-developed high school 
20.26 	reading and mathematics tests aligned with state academic standards, and science 
20.27 	assessments under clause (2) that districts and sites must use to monitor student growth 
20.28 	toward achieving those standards. In developing and implementing computer-adaptive 
20.29 	assessments, the commissioner must allow for paper-and-pencil tests that are the 
20.30 	equivalent of computer-adaptive assessments under this section to the extent these tests 
20.31 	are needed to accommodate the technology capacity of individual school districts. The 
20.32 	commissioner must not develop statewide assessments for academic standards in social 
20.33 	studies, health and physical education, and the arts. The commissioner must require:
20.34 	(1) annual computer-adaptive reading and mathematics assessments in grades 3 
20.35 	through 8, and high school reading and mathematics tests; and
21.1 	(2) annual science assessments in one grade in the grades 3 through 5 span, the 
21.2 	grades 6 through 8 span, and a life sciences assessment in the grades 9 through 12 span, 
21.3 	and the commissioner must not require students to achieve a passing score on high school 
21.4 	science assessments as a condition of receiving a high school diploma.
21.5 	(d) The commissioner must ensure that for annual computer-adaptive assessments:
21.6 	(1) individual student performance data and achievement and summary reports are 
21.7 	available to all schools within three school days of when students take an assessment;
21.8 	(2) growth information is available for each student from the student's first 
21.9 	assessment to each proximate assessment using a constant measurement scale;
21.10 	(3) parents, teachers, and school administrators are able to use elementary and 
21.11 	middle school student performance data to project student achievement in high school;
21.12 	(4) teachers and school administrators are able to use formative information about 
21.13 	students' academic strengths and weaknesses, to the extent it is  available, to improve 
21.14 	student instruction and indicate specific skills and knowledge that should be introduced 
21.15 	and developed for students at given score levels, organized by strands within subject areas, 
21.16 	and aligned to state academic standards; and
21.17 	(5) the maximum number of school districts have the opportunity to replace 
21.18 	district-purchased computer-adaptive assessments with state-developed and state-funded 
21.19 	computer-adaptive assessments.
21.20 	(b) (e) The commissioner must ensure that all statewide tests administered to 
21.21 	elementary and secondary students measure students' academic knowledge and skills and 
21.22 	not students' values, attitudes, and beliefs.
21.23 	(c) (f) Reporting of assessment results must:
21.24 	(1) provide timely, useful, and understandable information on the performance of 
21.25 	individual students, schools, school districts, and the state;
21.26 	(2) include a value-added growth indicator of student achievement under section 
21.27 	120B.35, subdivision 3, paragraph (b); and
21.28 	(3)(i) for students enrolled in grade 8 before the 2005-2006 school year, determine 
21.29 	whether students have met the state's basic skills requirements; and
21.30 	(ii) for students enrolled in grade 8 in the 2005-2006 school year and later, determine 
21.31 	whether students have met the state's academic standards.
21.32 	(d) (g) Consistent with applicable federal law and subdivision 1, paragraph (d), 
21.33 	clause (1), the commissioner must include appropriate, technically sound accommodations 
21.34 	or alternative assessments for the very few students with disabilities for whom statewide 
21.35 	assessments are inappropriate and for students with limited English proficiency.
22.1 	(e) (h) A school, school district, and charter school must administer statewide 
22.2 	assessments under this section, as the assessments become available, to evaluate student 
22.3 	proficiency in the context of the state's grade level academic standards. If a state 
22.4 	assessment is not available, a school, school district, and charter school must determine 
22.5 	locally if a student has met the required academic standards. A school, school district, 
22.6 	or charter school may use a student's performance on a statewide assessment as one of 
22.7 	multiple criteria to determine grade promotion or retention. A school, school district, or 
22.8 	charter school may use a high school student's performance on a statewide assessment 
22.9 	as a percentage of the student's final grade in a course, or place a student's assessment 
22.10 	score on the student's transcript.

22.11 	EFFECTIVE DATE. Requirements for using computer-adaptive mathematics 
22.12 	assessments for grades 3 through 8 apply in the 2011-2012 school year and later and 
22.13 	requirements for using computer-adaptive reading assessments for grades 3 through 8 
22.14 	apply in the 2013-2014 school year and later.

22.15 	Sec. 8. Minnesota Statutes 2009 Supplement, section 120B.30, is amended by adding a 
22.16 	subdivision to read:
22.17 		Subd. 1b.High school algebra end-of-course assessment. (a) Notwithstanding 
22.18 	subdivision 1, the commissioner shall establish a statewide high school algebra 
22.19 	end-of-course assessment for students entering grade 8 in the 2010-2011 school year 
22.20 	and later that provides information on the college and career readiness of Minnesota 
22.21 	students and fulfills federal accountability requirements, consistent with this subdivision 
22.22 	and related rules. For purposes of this subdivision, "college and career readiness" means 
22.23 	the knowledge and skills that a high school graduate needs to do either credit-bearing 
22.24 	coursework at a two-year or four-year college or university or career-track employment 
22.25 	that pays a living wage, provides employment benefits, and offers clear pathways for 
22.26 	advancement through further education and training.
22.27 	(b) This statewide high school algebra end-of-course assessment must conform 
22.28 	with the following:
22.29 	(1) align with the most recently revised academic content standards under section 
22.30 	120B.023, subdivision 2;
22.31 	(2) include both multiple-choice and open-ended items that assess the appropriate 
22.32 	algebra knowledge and skills contained in the state's academic content standards;
22.33 	(3) be designed for computer administration and scoring so that, beginning the 
22.34 	second year a computerized test is administered and as soon as practicable during the 
22.35 	first year a computerized test is administered, the exam results of students who take 
23.1 	computerized tests are available to the school or district within three full school days after 
23.2 	the exam is administered, among other design characteristics;
23.3 	(4) be administered at regular intervals that align with the most common high school 
23.4 	schedules in Minnesota;
23.5 	(5) generate achievement levels established through a professionally recognized 
23.6 	methodology;
23.7 	(6) use achievement level descriptors that define a student's college and career 
23.8 	readiness;
23.9 	(7) comprise 20 percent of the student's overall course grade in the corresponding 
23.10 	course;
23.11 	(8) require a student who does not pass a high school algebra course to (i) 
23.12 	retake the course or complete a district-authorized credit recovery class, (ii) opt, at the 
23.13 	student's election, to retake the end-of-course assessment within a regularly scheduled 
23.14 	administration window, and (iii) have the student select the exam score on the initial test 
23.15 	or the retest to count as the equivalent of 20 percent of the student's overall course grade;
23.16 	(9) allow an eligible student to meet this requirement through an alternative method 
23.17 	that demonstrates the student's college and career readiness:
23.18 	(i) for high school students who transfer into Minnesota from another state where 
23.19 	the algebra course content, as applicable, is of equal or greater rigor, pass that state's high 
23.20 	school course and graduation requirements in algebra, as applicable;
23.21 	(ii) allow a student who has an active individualized education program to achieve a 
23.22 	passing status at an individual level as prescribed by the commissioner;
23.23 	(iii) waive the required exam for a high school student who is an English language 
23.24 	learner under section 124D.59 and who has been enrolled for four or fewer years in a 
23.25 	school in which English is the primary language of instruction; or
23.26 	(iv) other alternative methods recommended by the Assessment Advisory 
23.27 	Committee, if subsequently specifically authorized by law to allow other alternative 
23.28 	methods;
23.29 	(10) use three consecutive school years of research and analysis through the 
23.30 	2014-2015 school year, as prescribed by the commissioner, to calculate and report an 
23.31 	alignment index that compares students' final grades in this course with their end-of-course 
23.32 	assessment scores;
23.33 	(11) subsequent to calculating and reporting the alignment index under clause (10), 
23.34 	require schools that are highly misaligned for two or more consecutive school years to 
23.35 	transmit written notice of the misalignment to all parents of students enrolled in the school, 
23.36 	as prescribed by the commissioner; and
24.1 	(12) when schools are highly misaligned for two or more consecutive years under 
24.2 	clause (11), use school district funds under section 122A.60, subdivision 1a, paragraph 
24.3 	(a), to correct the misalignment.
24.4 	(c) The requirements of this subdivision apply to students in public schools, 
24.5 	including charter schools, who enter grade 8 in the 2010-2011 school year or later. The 
24.6 	commissioner may establish a transition period where students who enter grade 8 in the 
24.7 	2010-2011 or 2011-2012 school year graduate either under the Graduation-Required 
24.8 	Assessment for Diploma requirements under section 120B.30, subdivision 1, or this 
24.9 	subdivision. The commissioner may seek authority from the legislature to adjust the 
24.10 	time line under this paragraph if  circumstances such as changes in federal law governing 
24.11 	educational accountability and assessment warrant such an adjustment.
24.12 	(d) To fully implement this subdivision and enable school districts to provide 
24.13 	intervention and support to struggling students and improve instruction for all students, 
24.14 	the commissioner must provide districts with (1) a benchmark assessment aligned with 
24.15 	the high school algebra end-of-course assessment, and as funding allows, may provide 
24.16 	districts with (2) an item bank available to teachers for creating formative assessments to 
24.17 	help students prepare for the high school algebra end-of-course assessment.
24.18 	(e) The commissioner shall expand the membership and purpose of the Assessment 
24.19 	Advisory Committee established under section 120B.365 to include assessment experts 
24.20 	and practitioners from both secondary and postsecondary education systems and other 
24.21 	appropriate stakeholders to monitor the implementation of and student outcomes based 
24.22 	on the algebra end-of-course assessment and policies and the state support available 
24.23 	to districts, including small or rural districts, under this subdivision. This committee 
24.24 	shall report annually by February 15 to the commissioner and the legislature on the 
24.25 	implementation of and student outcomes based on the assessment and policies under this 
24.26 	subdivision. Notwithstanding section 15.059, subdivision 3, committee members shall not 
24.27 	receive compensation, per diem payments, or reimbursement for expenses.
24.28 	(f) Using a solicitation process that includes a "request for proposal" process and 
24.29 	multiple responses, the commissioner shall contract for at least two  independent studies 
24.30 	at two-year intervals to evaluate (1) the implementation of the requirements and (2) the 
24.31 	availability and efficacy of resources to support and improve student outcomes based on 
24.32 	student achievement data under this subdivision. The commissioner must submit the 
24.33 	results of the first study to the education policy and finance committees of the legislature 
24.34 	by February 15, 2015. The commissioner must submit the results of the second study 
24.35 	to the legislature by February 15, 2017.
25.1 	(g) The commissioner must not begin to develop additional statewide end-of-course 
25.2 	exams in geometry, chemistry, or physics until specifically authorized in law to do so.
25.3 	(h) A district or charter school must indicate on a student's transcript the student's 
25.4 	level of college and career readiness in algebra under this subdivision after the levels have 
25.5 	been established through a professionally recognized methodology.

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

25.7 	Sec. 9. Minnesota Statutes 2009 Supplement, section 120B.30, subdivision 3, is 
25.8 	amended to read:
25.9 		Subd. 3.Reporting. The commissioner shall report test data results publicly and 
25.10 	to stakeholders, including the performance achievement levels developed from students' 
25.11 	unweighted test scores in each tested subject and a listing of demographic factors that 
25.12 	strongly correlate with student performance. The test results must not include personally 
25.13 	identifiable information as defined in Code of Federal Regulations, title 34, section 99.3.
25.14 	The commissioner shall also report data that compares performance results among school 
25.15 	sites, school districts, Minnesota and other states, and Minnesota and other nations. The 
25.16 	commissioner shall disseminate to schools and school districts a more comprehensive 
25.17 	report containing testing information that meets local needs for evaluating instruction 
25.18 	and curriculum.

25.19 	Sec. 10. Minnesota Statutes 2009 Supplement, section 120B.30, subdivision 4, is 
25.20 	amended to read:
25.21 		Subd. 4.Access to tests. Consistent with section 13.34, the commissioner must 
25.22 	adopt and publish a policy to provide public and parental access for review of basic skills 
25.23 	tests, Minnesota Comprehensive Assessments, or any other such statewide test and 
25.24 	assessment which would not compromise the objectivity or fairness of the testing or 
25.25 	examination process. Upon receiving a written request, the commissioner must make 
25.26 	available to parents or guardians a copy of their student's actual responses to the test 
25.27 	questions for their review.

25.28 	Sec. 11. Minnesota Statutes 2009 Supplement, section 120B.35, subdivision 3, is 
25.29 	amended to read:
25.30 		Subd. 3.State growth target; other state measures. (a) The state's educational 
25.31 	assessment system measuring individual students' educational growth is based on 
25.32 	indicators of achievement growth that show an individual student's prior achievement. 
26.1 	Indicators of achievement and prior achievement must be based on highly reliable 
26.2 	statewide or districtwide assessments.
26.3 	(b) The commissioner, in consultation with a stakeholder group that includes 
26.4 	assessment and evaluation directors and staff and researchers must implement a model 
26.5 	that uses a value-added growth indicator and includes criteria for identifying schools 
26.6 	and school districts that demonstrate medium and high growth under section 120B.299, 
26.7 	subdivisions 8 and 9, and may recommend other value-added measures under section 
26.8 	120B.299, subdivision 3. The model may be used to advance educators' professional 
26.9 	development and replicate programs that succeed in meeting students' diverse learning 
26.10 	needs. Data on individual teachers generated under the model are personnel data under 
26.11 	section 13.43. The model must allow users to:
26.12 	(1) report student growth consistent with this paragraph; and
26.13 	(2) for all student categories, report and compare aggregated and disaggregated state 
26.14 	growth data using the nine student categories identified under the federal 2001 No Child 
26.15 	Left Behind Act and two student gender categories of male and female, respectively, 
26.16 	following appropriate reporting practices to protect nonpublic student data.
26.17 	The commissioner must report separate measures of student growth and proficiency, 
26.18 	consistent with this paragraph.
26.19 	(c) When reporting student performance under section 120B.36, subdivision 1, the 
26.20 	commissioner annually, beginning July 1, 2011, must report two core measures indicating 
26.21 	the extent to which current high school graduates are being prepared for postsecondary 
26.22 	academic and career opportunities:
26.23 	(1) a preparation measure indicating the number and percentage of high school 
26.24 	graduates in the most recent school year who completed course work important to 
26.25 	preparing them for postsecondary academic and career opportunities, consistent with 
26.26 	the core academic subjects required for admission to Minnesota's public colleges and 
26.27 	universities as determined by the Office of Higher Education under chapter 136A; and
26.28 	(2) a rigorous coursework measure indicating the number and percentage of high 
26.29 	school graduates in the most recent school year who successfully completed one or more 
26.30 	college-level advanced placement, international baccalaureate, postsecondary enrollment 
26.31 	options including concurrent enrollment, other rigorous courses of study under section 
26.32 	120B.021, subdivision 1a, or industry certification courses or programs.
26.33 	When reporting the core measures under clauses (1) and (2), the commissioner must also 
26.34 	analyze and report separate categories of information using the nine student categories 
26.35 	identified under the federal 2001 No Child Left Behind Act and two student gender 
27.1 	categories of male and female, respectively, following appropriate reporting practices to 
27.2 	protect nonpublic student data.
27.3 	(d) When reporting student performance under section 120B.36, subdivision 1, the 
27.4 	commissioner annually, beginning July 1, 2014, must report summary data on school 
27.5 	safety and students' engagement and connection at school. The summary data under this 
27.6 	paragraph are separate from and must not be used for any purpose related to measuring 
27.7 	or evaluating the performance of classroom teachers. The commissioner, in consultation 
27.8 	with qualified experts on student engagement and connection and classroom teachers, 
27.9 	must identify highly reliable variables that generate summary data under this paragraph. 
27.10 	The summary data may be used at school, district, and state levels only. Any data on 
27.11 	individuals received, collected, or created that are used to generate the summary data 
27.12 	under this paragraph are nonpublic data under section 13.02, subdivision 9.
27.13 	(e) For purposes of statewide educational accountability, the commissioner must 
27.14 	identify and report measures that demonstrate the success of school districts, school sites, 
27.15 	charter schools, and alternative program providers in improving the graduation outcomes 
27.16 	of students under this paragraph. When reporting student performance under section 
27.17 	120B.36, subdivision 1, the commissioner, beginning July 1, 2013, must annually report 
27.18 	summary data on (i) the four- and six-year graduation rates of students throughout the state 
27.19 	who are identified as at risk of not graduating or off track to graduate, including students 
27.20 	who are eligible to participate in a program under section 123A.05 or 124D.68, among 
27.21 	other students, and (ii) the success that school districts, school sites, charter schools, and 
27.22 	alternative program providers experience in:
27.23 	(1) identifying at-risk and off-track student populations by grade;
27.24 	(2) providing successful prevention and intervention strategies for at-risk students;
27.25 	(3) providing successful recuperative and recovery or reenrollment strategies for 
27.26 	off-track students; and
27.27 	(4) improving the graduation outcomes of at-risk and off-track students.
27.28 	For purposes of this paragraph, a student who is at risk of not graduating is a student 
27.29 	in eighth or ninth grade who meets one or more of the following criteria: first enrolled 
27.30 	in an English language learners program in eighth or ninth grade and may be older than 
27.31 	other students enrolled in the same grade; as an eighth grader, is absent from school for at 
27.32 	least 20 percent of the days of instruction during the school year, is two or more years 
27.33 	older than other students enrolled in the same grade, or fails multiple core academic 
27.34 	courses; or as a ninth grader, fails multiple ninth grade core academic courses in English 
27.35 	language arts, math, science, or social studies.
28.1 	For purposes of this paragraph, a student who is off track to graduate is a student 
28.2 	who meets one or more of the following criteria: first enrolled in an English language 
28.3 	learners program in high school and is older than other students enrolled in the same grade; 
28.4 	is a returning dropout; is 16 or 17 years old and two or more academic years off track to 
28.5 	graduate; is 18 years or older and two or more academic years off track to graduate; or is 
28.6 	18 years or older and may graduate within one school year.

28.7 	EFFECTIVE DATE. Paragraph (e) applies to data that are collected in the 
28.8 	2012-2013 school year and later and reported annually beginning July 1, 2013, consistent 
28.9 	with the recommendations the commissioner receives from recognized and qualified 
28.10 	experts on improving differentiated graduation rates, and establishing alternative routes to 
28.11 	a standard high school diploma for at-risk and off-track students.

28.12 	Sec. 12. Minnesota Statutes 2009 Supplement, section 120B.36, subdivision 1, is 
28.13 	amended to read:
28.14 		Subdivision 1.School performance report cards. (a) The commissioner 
28.15 	shall report student academic performance under section 120B.35, subdivision 2; the 
28.16 	percentages of students showing low, medium, and high growth under section 120B.35, 
28.17 	subdivision 3, paragraph (b); school safety and student engagement and connection 
28.18 	under section 120B.35, subdivision 3, paragraph (d); rigorous coursework under section 
28.19 	120B.35, subdivision 3, paragraph (c); the four- and six-year graduation rates of at-risk and 
28.20 	off-track students throughout the state under section 120B.35, subdivision 3, paragraph 
28.21 	(e), and the success that school districts, school sites, charter schools, and alternative 
28.22 	program providers experience in their efforts to improve the graduation outcomes of 
28.23 	those students; two separate student-to-teacher ratios that clearly indicate the definition 
28.24 	of teacher consistent with sections 122A.06 and 122A.15 for purposes of determining 
28.25 	these ratios; staff characteristics excluding salaries; student enrollment demographics; 
28.26 	district mobility; and extracurricular activities. The report also must indicate a school's 
28.27 	adequate yearly progress status, and must not set any designations applicable to high- and 
28.28 	low-performing schools due solely to adequate yearly progress status.
28.29 	(b) The commissioner shall develop, annually update, and post on the department 
28.30 	Web site school performance report cards.
28.31 	(c) The commissioner must make available performance report cards by the 
28.32 	beginning of each school year.
28.33 	(d) A school or district may appeal its adequate yearly progress status in writing to 
28.34 	the commissioner within 30 days of receiving the notice of its status. The commissioner's 
28.35 	decision to uphold or deny an appeal is final.
29.1 	(e) School performance report card data are nonpublic data under section 13.02, 
29.2 	subdivision 9, until not later than ten days after the appeal procedure described in 
29.3 	paragraph (d) concludes. The department shall annually post school performance report 
29.4 	cards to its public Web site no later than September 1.

29.5 	EFFECTIVE DATE. This section is effective the day following final enactment 
29.6 	and applies to annual reports beginning July 1, 2013.

29.7 	Sec. 13. [121A.215] LOCAL SCHOOL DISTRICT WELLNESS POLICIES; 
29.8 	WEB SITE.
29.9 	Where available, a school district must post its current local school wellness policy 
29.10 	on its Web site.

29.11 	EFFECTIVE DATE. This section is effective August 1, 2010.

29.12 	Sec. 14. Minnesota Statutes 2009 Supplement, section 122A.09, subdivision 4, is 
29.13 	amended to read:
29.14 		Subd. 4.License and rules. (a) The board mustmay adopt new rules and amend 
29.15 	any existing rules to license public school teachers and interns subject toonly under 
29.16 	specific legislative authority and consistent with the requirements of chapter 14. This 
29.17 	paragraph does not prohibit the board from making technical changes or corrections to 
29.18 	rules or repealing rules adopted by the board.
29.19 	(b) The board must adopt rules requiring a person to successfully complete a skills 
29.20 	examination in reading, writing, and mathematics as a requirement for initial teacher 
29.21 	licensure. Such rules must require college and universities offering a board-approved 
29.22 	teacher preparation program to provide remedial assistance to persons who did not 
29.23 	achieve a qualifying score on the skills examination, including those for whom English is 
29.24 	a second language.
29.25 	(c) The board must adopt rules to approve teacher preparation programs. The board, 
29.26 	upon the request of a postsecondary student preparing for teacher licensure or a licensed 
29.27 	graduate of a teacher preparation program, shall assist in resolving a dispute between the 
29.28 	person and a postsecondary institution providing a teacher preparation program when the 
29.29 	dispute involves an institution's recommendation for licensure affecting the person or the 
29.30 	person's credentials. At the board's discretion, assistance may include the application 
29.31 	of chapter 14.
29.32 	(d) The board must provide the leadership and shall adopt rules for the redesign of 
29.33 	teacher education programs to implement a research based, results-oriented curriculum 
30.1 	that focuses on the skills teachers need in order to be effective. The board shall implement 
30.2 	new systems of teacher preparation program evaluation to assure program effectiveness 
30.3 	based on proficiency of graduates in demonstrating attainment of program outcomes.
30.4 	(e) The board must adopt rules requiring candidates for initial licenses to 
30.5 	successfully complete pass an examination of general pedagogical knowledge and 
30.6 	examinations of licensure-specific teaching skills. The rules shall be effective by 
30.7 	September 1, 2001. The rules under this paragraph also must require candidates for 
30.8 	initial licenses to teach prekindergarten or elementary students to successfully complete, 
30.9 	as part of the examination of licensure-specific teaching skills, test items assessing the 
30.10 	candidates' knowledge, skill, and ability in comprehensive, scientifically based reading 
30.11 	instruction under section 122A.06, subdivision 4, and their knowledge and understanding 
30.12 	of the foundations of reading development, the development of reading comprehension, 
30.13 	and reading assessment and instruction, and their ability to integrate that knowledge 
30.14 	and understanding. The rules under this paragraph also must require general education 
30.15 	candidates for initial licenses to teach prekindergarten or elementary students to pass, 
30.16 	as part of the examination of licensure-specific teaching skills, test items assessing the 
30.17 	candidates' knowledge, skill, and ability in mathematics.
30.18 	(f) The board must adopt rules requiring teacher educators to work directly with 
30.19 	elementary or secondary school teachers in elementary or secondary schools to obtain 
30.20 	periodic exposure to the elementary or secondary teaching environment.
30.21 	(g) The board must grant licenses to interns and to candidates for initial licenses.
30.22 	(h) The board must design and implement an assessment system which requires a 
30.23 	candidate for an initial license and first continuing license to demonstrate the abilities 
30.24 	necessary to perform selected, representative teaching tasks at appropriate levels.
30.25 	(i) The board must receive recommendations from local committees as established 
30.26 	by the board for the renewal of teaching licenses. Committee recommendations must be 
30.27 	consistent with section 122A.18, subdivision 4, paragraph (b).
30.28 	(j) The board must grant life licenses to those who qualify according to requirements 
30.29 	established by the board, and suspend or revoke licenses pursuant to sections 122A.20 and 
30.30 	214.10. The board must not establish any expiration date for application for life licenses.
30.31 	(k) The board must adopt rules that require all licensed teachers who are renewing 
30.32 	their continuing license to include in their renewal requirements further preparation in 
30.33 	the areas of using positive behavior interventions and in accommodating, modifying, and 
30.34 	adapting curricula, materials, and strategies to appropriately meet the needs of individual 
30.35 	students and ensure adequate progress toward the state's graduation rule.
31.1 	(l) In adopting rules to license public school teachers who provide health-related 
31.2 	services for disabled children, the board shall adopt rules consistent with license or 
31.3 	registration requirements of the commissioner of health and the health-related boards who 
31.4 	license personnel who perform similar services outside of the school.
31.5 	(m) The board must adopt rules that require all licensed teachers who are renewing 
31.6 	their continuing license to include in their renewal requirements further reading 
31.7 	preparation, consistent with section 122A.06, subdivision 4. The rules do not take effect 
31.8 	until they are approved by law. Teachers who do not provide direct instruction including, at 
31.9 	least, counselors, school psychologists, school nurses, school social workers, audiovisual 
31.10 	directors and coordinators, and recreation personnel are exempt from this section.
31.11 	(n) The board must adopt rules that require all licensed teachers who are renewing 
31.12 	their continuing license to include in their renewal requirements further preparation 
31.13 	in understanding the key warning signs of early-onset mental illness in children and 
31.14 	adolescents.
31.15 	(o) The board, consistent with section 122A.18, subdivision 4, paragraph (b), must 
31.16 	amend its licensure renewal rules to include professional reflection and growth in best 
31.17 	teaching practices in the preparation requirements for relicensure under this paragraph 
31.18 	and paragraphs (i), (k), (m), and (n), and any other preparation requirements applicable to 
31.19 	teachers seeking to renew their continuing license from the board.

31.20 	EFFECTIVE DATE. This section is effective the day following final enactment 
31.21 	and applies to all new and amended rules proposed by the Board of Teaching, including all 
31.22 	new and amended rules that are not yet formally adopted, except that the amendments 
31.23 	to paragraphs (i) and (o) apply to licensees seeking relicensure beginning June 30, 2012. 
31.24 	This section does not affect the requirement that the Board of Teaching continue to finally 
31.25 	adopt rules initially proposed before the effective date of this section, to implement the 
31.26 	requirement of Laws 2003, chapter 129, article 1, section 10, and Laws 2007, chapter 
31.27 	146, article 2, section 34, that the board adopt rules relating to credentials for education 
31.28 	paraprofessionals.

31.29 	Sec. 15. Minnesota Statutes 2008, section 122A.16, is amended to read:
31.30 	122A.16 HIGHLY QUALIFIED TEACHER DEFINED.
31.31 	(a) A qualified teacher is one holding a valid license, under this chapter, to perform 
31.32 	the particular service for which the teacher is employed in a public school.
31.33 	(b) For the purposes of the federal No Child Left Behind Act, a highly qualified 
31.34 	teacher is one who holds a valid license under this chapter to perform the particular service 
32.1 	for which the teacher is employed in a public school or who meets the requirements of a 
32.2 	highly objective uniform state standard of evaluation (HOUSSE).
32.3 	All Minnesota teachers teaching in a core academic subject area, as defined by the 
32.4 	federal No Child Left Behind Act, in which they are not fully licensed may complete the 
32.5 	following HOUSSE process in the core subject area for which the teacher is requesting 
32.6 	highly qualified status by completing an application, in the form and manner described by 
32.7 	the commissioner, that includes:
32.8 	(1) documentation of student achievement as evidenced by norm-referenced test 
32.9 	results that are objective and psychometrically valid and reliable;
32.10 	(2) evidence of local, state, or national activities, recognition, or awards for 
32.11 	professional contribution to achievement;
32.12 	(3) description of teaching experience in the teachers' core subject area in a public 
32.13 	school under a waiver, variance, limited license or other exception; nonpublic school; and 
32.14 	postsecondary institution;
32.15 	(4) test results from the Praxis IIsubject area content test;
32.16 	(5) evidence of advanced certification from the National Board for Professional 
32.17 	Teaching Standards;
32.18 	(6) evidence of the successful completion of course work or pedagogy courses; and
32.19 	(7) evidence of the successful completion of high quality professional development 
32.20 	activities.
32.21 	Districts must assign a school administrator to serve as a HOUSSE reviewer to 
32.22 	meet with teachers under this paragraph and, where appropriate, certify the teachers' 
32.23 	applications. Teachers satisfy the definition of highly qualified when the teachers receive 
32.24 	at least 100 of the total number of points used to measure the teachers' content expertise 
32.25 	under clauses (1) to (7). Teachers may acquire up to 50 points only in any one clause (1) 
32.26 	to (7). Teachers may use the HOUSSE process to satisfy the definition of highly qualified 
32.27 	for more than one subject area.
32.28 	(c) Achievement of the HOUSSE criteria is not equivalent to a license. A teacher 
32.29 	must obtain permission from the Board of Teaching in order to teach in a public school.

32.30 	Sec. 16. Minnesota Statutes 2008, section 122A.18, subdivision 1, is amended to read:
32.31 		Subdivision 1.Authority to license. (a) The Board of Teaching must license 
32.32 	teachers, as defined in section 122A.15, subdivision 1, except for supervisory personnel, 
32.33 	as defined in section 122A.15, subdivision 2.  
32.34 	(b) The Board of School Administrators must license supervisory personnel as 
32.35 	defined in section 122A.15, subdivision 2, except for athletic coaches.  
33.1 	(c) Licenses under the jurisdiction of the Board of Teaching, the Board of School 
33.2 	Administrators, and the commissioner of education must be issued through the licensing 
33.3 	section of the department.
33.4 	(d) The Board of Teaching may approve only those teacher preparation programs that 
33.5 	target and address identified concerns affecting students in kindergarten through grade 12. 
33.6 	The Board of Teaching and the Department of Education, consistent with the requirements 
33.7 	of chapter 13, must enter into an agreement to share kindergarten through grade 12 
33.8 	educational data solely for approving and improving teacher education programs. The 
33.9 	Board of Teaching must ensure that this information remains confidential and is used only 
33.10 	for this purpose. Any unauthorized disclosure is subject to a penalty under section 13.09.
33.11 	(e) The Board of School Administrators may approve only those administrator 
33.12 	preparation programs that target and address identified concerns affecting students in 
33.13 	kindergarten through grade 12. The Board of School Administrators and the Department 
33.14 	of Education, consistent with the requirements of chapter 13, must enter into an agreement 
33.15 	to share kindergarten through grade 12 educational data solely for approving and 
33.16 	improving education administration programs. The Board of School Administrators must 
33.17 	ensure that this information remains confidential and is used only for this purpose. Any 
33.18 	unauthorized disclosure is subject to a penalty under section 13.09.

33.19 	Sec. 17. Minnesota Statutes 2008, section 122A.18, subdivision 2, is amended to read:
33.20 		Subd. 2.Teacher and support personnel qualifications. (a) The Board of 
33.21 	Teaching must issue licenses under its jurisdiction to persons the board finds to be 
33.22 	qualified and competent for their respective positions.
33.23 	(b) The board must require a person to successfully complete pass an examination of 
33.24 	skills in reading, writing, and mathematics before being granted an initial teaching license 
33.25 	to provide direct instruction to pupils in prekindergarten, elementary, secondary, or special 
33.26 	education programs. The board must require colleges and universities offering a board 
33.27 	approved teacher preparation program to provide remedial assistance that includes a 
33.28 	formal diagnostic component to persons enrolled in their institution who did not achieve a 
33.29 	qualifying score on the skills examination, including those for whom English is a second 
33.30 	language. The colleges and universities must provide assistance in the specific academic 
33.31 	areas of deficiency in which the person did not achieve a qualifying score. School 
33.32 	districts must provide similar, appropriate, and timely remedial assistance that includes a 
33.33 	formal diagnostic component and mentoring to those persons employed by the district 
33.34 	who completed their teacher education program outside the state of Minnesota, received 
33.35 	a one-year license to teach in Minnesota and did not achieve a qualifying score on the 
34.1 	skills examination, including those persons for whom English is a second language. The 
34.2 	Board of Teaching shall report annually to the education committees of the legislature 
34.3 	on the total number of teacher candidates during the most recent school year taking the 
34.4 	skills examination, the number who achieve a qualifying score on the examination, the 
34.5 	number who do not achieve a qualifying score on the examination, the distribution of all 
34.6 	candidates' scores, the number of candidates who have taken the examination at least once 
34.7 	before, and the number of candidates who have taken the examination at least once before 
34.8 	and achieve a qualifying score.
34.9 	(c) A person who has completed an approved teacher preparation program and 
34.10 	obtained a one-year license to teach, but has not successfully completed the skills 
34.11 	examination, may renew the one-year license for two additional one-year periods. Each 
34.12 	renewal of the one-year license is contingent upon the licensee:
34.13 	(1) providing evidence of participating in an approved remedial assistance program 
34.14 	provided by a school district or postsecondary institution that includes a formal diagnostic 
34.15 	component in the specific areas in which the licensee did not obtain qualifying scores; and
34.16 	(2) attempting to successfully complete the skills examination during the period 
34.17 	of each one-year license.
34.18 	(d)(c) The Board of Teaching must grant continuing licenses only to those persons 
34.19 	who have met board criteria for granting a continuing license, which includes successfully 
34.20 	completing passing the skills examination in reading, writing, and mathematics.
34.21 	(e)(d) All colleges and universities approved by the board of teaching to prepare 
34.22 	persons for teacher licensure must include in their teacher preparation programs a common 
34.23 	core of teaching knowledge and skills to be acquired by all persons recommended 
34.24 	for teacher licensure. This common core shall meet the standards developed by the 
34.25 	interstate new teacher assessment and support consortium in its 1992 "model standards for 
34.26 	beginning teacher licensing and development." Amendments to standards adopted under 
34.27 	this paragraph are covered by chapter 14. The board of teaching shall report annually to 
34.28 	the education committees of the legislature on the performance of teacher candidates 
34.29 	on common core assessments of knowledge and skills under this paragraph during the 
34.30 	most recent school year.
34.31 	(e) The Board of Teaching must: 
34.32 	(1) ensure that kindergarten through grade 12 teacher licensing standards are highly 
34.33 	aligned with the state's kindergarten through grade 12 academic standards;
34.34 	(2) adopt a review cycle that is consistent with the kindergarten through grade 12 
34.35 	academic standards review cycle under section 120B.023, subdivision 2; and 
35.1 	(3) review and align the teacher licensure standards with the kindergarten through 
35.2 	grade 12 academic standards within one school year after the commissioner reviews and 
35.3 	adopts revised kindergarten through grade 12 academic standards in a particular subject 
35.4 	area.
35.5 	(f) All teacher preparation programs approved by the Board of Teaching must 
35.6 	require teacher candidates to complete at least one online course.

35.7 	Sec. 18. Minnesota Statutes 2008, section 122A.23, subdivision 2, is amended to read:
35.8 		Subd. 2.Applicants licensed in other states. (a) Subject to the requirements 
35.9 	of sections 122A.18, subdivision 8, and 123B.03, the Board of Teaching must issue 
35.10 	a teaching license or a temporary teaching license under paragraphs (b) to (e) to an 
35.11 	applicant who holds at least a baccalaureate degree from a regionally accredited college 
35.12 	or university and holds or held a similar out-of-state teaching license that requires the 
35.13 	applicant to successfully complete a teacher preparation program approved by the issuing 
35.14 	state, which includes field-specific teaching methods and student teaching or essentially 
35.15 	equivalent experience.  
35.16 	(b) The Board of Teaching must issue a teaching license to an applicant who:
35.17 	(1) successfully completed passed all exams and successfully completed human 
35.18 	relations preparation components required by the Board of Teaching; and
35.19 	(2) holds or held an out-of-state teaching license to teach the same content field and 
35.20 	grade levels if the scope of the out-of-state license is no more than one grade level less 
35.21 	than a similar Minnesota license.
35.22 	(c) The Board of Teaching, consistent with board rules, must issue up to three 
35.23 	one-year temporary teaching licenses to an applicant who holds or held an out-of-state 
35.24 	teaching license to teach the same content field and grade levels, where the scope of the 
35.25 	out-of-state license is no more than one grade level less than a similar Minnesota license, 
35.26 	but has not successfully completed passed all exams and successfully completed human 
35.27 	relations preparation components required by the Board of Teaching.
35.28 	(d) The Board of Teaching, consistent with board rules, must issue up to three 
35.29 	one-year temporary teaching licenses to an applicant who:
35.30 	(1) successfully completed passed all exams and successfully completed human 
35.31 	relations preparation components required by the Board of Teaching; and
35.32 	(2) holds or held an out-of-state teaching license to teach the same content field 
35.33 	and grade levels, where the scope of the out-of-state license is no more than one grade 
35.34 	level less than a similar Minnesota license, but has not completed field-specific teaching 
35.35 	methods or student teaching or equivalent experience.
36.1 	The applicant may complete field-specific teaching methods and student teaching 
36.2 	or equivalent experience by successfully participating in a one-year school district 
36.3 	mentorship program consistent with board-adopted standards of effective practice and 
36.4 	Minnesota graduation requirements.
36.5 	(e) The Board of Teaching must issue a temporary teaching license for a term of 
36.6 	up to three years only in the content field or grade levels specified in the out-of-state 
36.7 	license to an applicant who:
36.8 	(1) successfully completed passed all exams and successfully completed human 
36.9 	relations preparation components required by the Board of Teaching; and
36.10 	(2) holds or held an out-of-state teaching license where the out-of-state license is 
36.11 	more limited in the content field or grade levels than a similar Minnesota license.
36.12 	(f) The Board of Teaching must not issue to an applicant more than three one-year 
36.13 	temporary teaching licenses under this subdivision.
36.14 	(g) The Board of Teaching must not issue a license under this subdivision if the 
36.15 	applicant has not attained the additional degrees, credentials, or licenses required in a 
36.16 	particular licensure field.

36.17 	Sec. 19. [122A.245] ALTERNATIVE TEACHER PREPARATION PROGRAM 
36.18 	AND LIMITED-TERM TEACHER LICENSE.
36.19 		Subdivision 1.Requirements. (a) The Board of Teaching must approve qualified 
36.20 	teacher preparation programs under this section that are a means to acquire a two-year 
36.21 	limited-term license and to prepare for acquiring a standard entrance license. Partnerships 
36.22 	composed of school districts or charter schools and either:
36.23 	(1) a college or university with a board-approved alternative teacher preparation 
36.24 	program; or
36.25 	(2) a nonprofit corporation formed for an education-related purpose and subject 
36.26 	to chapter 317A and a college or university with a board-approved alternative teacher 
36.27 	preparation program may offer this program if:
36.28 	(i) a need for teachers exists based on the determination by a participating school 
36.29 	district or charter school that in the previous school year too few qualified candidates 
36.30 	applied for its posted, available teaching positions;
36.31 	(ii) the teaching staff does not reflect the racial and cultural diversity of the student 
36.32 	population of the district or charter school; or
36.33 	(iii) the school district or charter school identifies a need to reduce or eliminate a 
36.34 	student achievement gap based on school performance report card data under section 
36.35 	120B.36.
37.1 	(b) To participate in this program, a candidate must:
37.2 	(1) have a bachelor's degree with a minimum 3.0 grade point average, or have a 
37.3 	bachelor's degree and meet other board-adopted criteria;
37.4 	(2) pass the reading, writing, and mathematics skills examination under section 
37.5 	122A.18; and
37.6 	(3) pass the board-approved content area and pedagogy tests.
37.7 		Subd. 2.Characteristics. An alternative teacher preparation program under this 
37.8 	section must include:
37.9 	(1) a minimum 200-hour instructional phase that provides intensive preparation 
37.10 	before that person assumes classroom responsibilities;
37.11 	(2) a research-based and results-oriented approach focused on best teaching practices 
37.12 	to increase student proficiency and growth measured against state academic standards;
37.13 	(3) strategies to combine pedagogy and best teaching practices to better inform 
37.14 	teachers' classroom instruction;
37.15 	(4) assessment, supervision, and evaluation of the program participant to determine 
37.16 	the participant's specific needs throughout the program and to support the participant 
37.17 	in successfully completing the program;
37.18 	(5) formal instruction and intensive peer coaching throughout the school year that 
37.19 	provide structured guidance and regular ongoing support;
37.20 	(6) high quality, sustained, intensive, and classroom-embedded staff development 
37.21 	opportunities conducted by a mentor or by a mentorship team that may include school 
37.22 	administrators, teachers, and postsecondary faculty members and are directed at improving 
37.23 	student learning and achievement; and
37.24 	(7) a requirement that program participants demonstrate to the local site team under 
37.25 	subdivision 5 that they are making satisfactory progress toward acquiring a standard 
37.26 	entrance license from the Board of Teaching.
37.27 		Subd. 3.Program approval. The Board of Teaching must approve alternative 
37.28 	teacher preparation programs under this section based on board-adopted criteria that reflect 
37.29 	best practices for alternative teacher preparation programs consistent with this section. 
37.30 	The board must permit licensure candidates to demonstrate licensure competencies in 
37.31 	school-based settings and through other nontraditional means.
37.32 		Subd. 4.Employment conditions. Where applicable, teachers with a limited-term 
37.33 	license under this section are subject to the terms of the local collective bargaining 
37.34 	agreement between the local representative of the teachers and the school board.
37.35 		Subd. 5.Approval for standard entrance license. A local site team that may 
37.36 	include teachers, school administrators, postsecondary faculty, and nonprofit staff must 
38.1 	evaluate the performance of the teacher candidate using the Minnesota State Standards of 
38.2 	Effective Practice for Teachers established in rule and submit to the board an evaluation 
38.3 	report recommending whether or not to issue the teacher candidate a standard entrance 
38.4 	license.
38.5 		Subd. 6.Standard entrance license. The Board of Teaching must issue a standard 
38.6 	entrance license to a teacher candidate under this section who successfully performs 
38.7 	throughout the program and is recommended for licensure under subdivision 5.
38.8 		Subd. 7.Qualified teacher. A person with a valid limited-term license under this 
38.9 	section is the teacher of record and a qualified teacher within the meaning of section 
38.10 	122A.16.
38.11 		Subd. 8.Reports. The Board of Teaching must submit an interim report on the 
38.12 	efficacy of this program to the K-12 Education Policy and Finance committees of the 
38.13 	legislature by February 15, 2012, and a final report by February 15, 2014.

38.14 	EFFECTIVE DATE. This section is effective for the 2010-2011 school year and 
38.15 	later.

38.16 	Sec. 20. [122A.246] ALTERNATIVE TEACHER PREPARATION 
38.17 	PROGRAM AND LIMITED-TERM TEACHER LICENSE FOR MID-CAREER 
38.18 	PROFESSIONALS.
38.19 		Subdivision 1.Requirements. (a) The Board of Teaching annually must approve 
38.20 	qualified teacher preparation programs under this section that are a means for mid-career 
38.21 	professionals to acquire a two-year limited-term license and to prepare for acquiring a 
38.22 	standard entrance license. Partnerships composed of school districts or charter schools 
38.23 	and either:
38.24 	(1) a college or university with a board-approved alternative teacher preparation 
38.25 	program; or
38.26 	(2) a nonprofit corporation formed for an education-related purpose and subject 
38.27 	to chapter 317A and a college or university with a board-approved alternative teacher 
38.28 	preparation program may offer this program if:
38.29 	(i) a need for teachers exists in a subject area identified by the department as a 
38.30 	shortage area;
38.31 	(ii) the teaching staff does not reflect the racial and cultural diversity of the student 
38.32 	population of the district or charter school; and
38.33 	(iii) the district or charter school identifies a need to reduce or eliminate a student 
38.34 	achievement gap based on school performance report card data under section 120B.36.
38.35 	(b) To participate in this program, a candidate must:
39.1 	(1) have a bachelor's degree and at least ten years of professional experience in a 
39.2 	field related to the license being sought; or 
39.3 	(2) hold a valid teaching license and have at least five years of classroom teaching 
39.4 	experience.
39.5 	(c) A candidate under paragraph (b), clause (1), must:
39.6 	(1) pass the reading, writing, and mathematics skills examination under section 
39.7 	122A.18; 
39.8 	(2) obtain qualifying scores on board-approved content area and pedagogy tests; and
39.9 	(3) before receiving a limited term license under this section, complete a minimum 
39.10 	200-hour instructional phase that provides intensive preparation and a full-time student 
39.11 	teaching experience that places the candidate in the classroom under the direct supervision 
39.12 	of a fully licensed classroom teacher for at least 12 weeks. A candidate under paragraph 
39.13 	(b), clause (1), is declared to have met the requirements of this paragraph through the 
39.14 	licensing process and previous classroom experience.
39.15 		Subd. 2.Characteristics. An alternative teacher preparation program under this 
39.16 	section must include:
39.17 	(1) a research-based and results-oriented approach focused on best teaching practices 
39.18 	to increase student proficiency and growth measured against state academic standards;
39.19 	(2) strategies to combine pedagogy and best teaching practices to better inform 
39.20 	teachers' classroom instruction;
39.21 	(3) assessment, supervision, and evaluation of the program participant to determine 
39.22 	the participant's specific needs throughout the program and to support the participant 
39.23 	in successfully completing the program;
39.24 	(4) formal instruction and intensive peer coaching throughout the school year that 
39.25 	provide structured guidance and regular ongoing support;
39.26 	(5) high quality, sustained, intensive, and classroom-embedded staff development 
39.27 	opportunities conducted by a mentor or by a mentorship team that may include school 
39.28 	administrators, teachers, and postsecondary faculty members and are directed at improving 
39.29 	student learning and achievement; and
39.30 	(6) a requirement that program participants demonstrate to the local site team under 
39.31 	subdivision 5 that they are making satisfactory progress toward acquiring a standard 
39.32 	entrance license from the Board of Teaching.
39.33 		Subd. 3.Program approval. The Board of Teaching must approve alternative 
39.34 	teacher preparation programs under this section based on board-adopted criteria that reflect 
39.35 	best practices for alternative teacher preparation programs consistent with this section. 
40.1 	The board must permit licensure candidates to demonstrate licensure competencies in 
40.2 	school-based settings and through other nontraditional means.
40.3 		Subd. 4.Employment conditions. (a) Each full school year that a teacher with 
40.4 	a limited-term license teaches in a Minnesota school is one year of the teacher's first 
40.5 	probationary employment period.
40.6 	(b) Where applicable, teachers with a limited-term license under this section 
40.7 	are subject to the terms of the local collective bargaining agreement between the local 
40.8 	representative of the teachers and the school board.
40.9 	(c) A school district or charter school must not prospectively promise to employ a 
40.10 	teacher candidate who receives a standard entrance license under this section.
40.11 		Subd. 5.Approval for standard entrance license. Postsecondary faculty, the 
40.12 	supervising teacher, and other qualified staff must evaluate the performance of the teacher 
40.13 	candidate using the Minnesota state standards of effective practice for teachers and content 
40.14 	standards by licensure area established in rule and submit to the board an evaluation report 
40.15 	recommending whether or not to issue the teacher candidate a standard entrance license.
40.16 		Subd. 6.Standard entrance license. The Board of Teaching may issue a standard 
40.17 	entrance license to a teacher candidate under this section who successfully performs under 
40.18 	the two-year limited license and is recommended for licensure under subdivision 5.
40.19 		Subd. 7.Qualified teacher. A person with a valid limited-term license under this 
40.20 	section is the teacher of record and a qualified teacher within the meaning of section 
40.21 	122A.16.
40.22 		Subd. 8.Reports. (a) The Board of Teaching annually must collect and report to 
40.23 	the K-12 Education Policy and Finance Committees of the legislature alternative teacher 
40.24 	preparation program provider data on cumulative teacher retention rates, number of 
40.25 	licenses issued by licensure area, the locations where teachers are placed, the number of 
40.26 	programs approved, and the demographic characteristics of the teacher candidates, among 
40.27 	other data. The board may use these data to approve program providers under this section.
40.28 	(b) The Board of Teaching must submit a report on the efficacy of this program to the 
40.29 	K-12 Education Policy and Finance committees of the legislature by February 15, 2014.

40.30 	Sec. 21. Minnesota Statutes 2009 Supplement, section 122A.40, subdivision 8, is 
40.31 	amended to read:
40.32 		Subd. 8.Annual evaluations and peer coaching for continuing contract 
40.33 	teachers. (a) To improve student learning and success, a school board and an exclusive 
40.34 	representative of the teachers in the district, consistent with paragraph (b), shall develop 
40.35 	a an annual teacher evaluation and peer review process for continuing contract teachers 
41.1 	through joint agreement. The peer review process may must include having trained 
41.2 	observers serve as peer coaches or having teachers participate in professional learning 
41.3 	communities.
41.4 	(b) To develop, improve, and support qualified teachers and effective teaching 
41.5 	practices and improve student learning and success, the annual evaluation process for 
41.6 	continuing contract teachers must:
41.7 	(1) be a collaborative effort between teachers and school administrators to develop 
41.8 	and implement a teacher evaluation process that is based on professional teaching 
41.9 	standards and includes both formative assessments to improve instruction through 
41.10 	identifying teachers' strengths and weaknesses and summative assessments conducted at 
41.11 	least once every three school years and used to make personnel decisions, consistent 
41.12 	with clause (2);
41.13 	(2) coordinate staff development activities under section 122A.60 with this 
41.14 	evaluation process and teachers' evaluation outcomes and give teachers not meeting 
41.15 	standards of effective practice sufficient support to improve;
41.16 	(3) include in-class observations by both licensed mentor teachers and school 
41.17 	administrators who are trained evaluators, use a valid observation framework or protocol, 
41.18 	and periodically undergo a reliability review;
41.19 	(4) provide peer coaching or have teachers participate in professional learning 
41.20 	communities, consistent with paragraph (a);
41.21 	(5) require teachers to develop and present a portfolio demonstrating evidence 
41.22 	of reflection and professional growth, consistent with section 122A.18, subdivision 
41.23 	4, paragraph (b), using criteria developed by the Board of Teaching to reliably assess 
41.24 	portfolio content, and include teachers' own performance assessment based on student 
41.25 	work samples, student and family surveys, and videotapes of teachers' work, among 
41.26 	other activities;
41.27 	(6) demonstrate teachers' content knowledge and teaching skills; and
41.28 	(7) use longitudinal data on student academic growth, student attendance, student 
41.29 	engagement and connection, and other outcome measures as evaluation components.

41.30 	EFFECTIVE DATE. This section is effective the day following final enactment 
41.31 	and applies beginning when a district next enters into or modifies a collective bargaining 
41.32 	agreement or by the 2011-2012 school year, whichever comes first.

41.33 	Sec. 22. Minnesota Statutes 2009 Supplement, section 122A.41, subdivision 5, is 
41.34 	amended to read:
42.1 		Subd. 5.Annual evaluations and peer coaching for continuing contract 
42.2 	teachers. (a) To improve student learning and success, a school board and an exclusive 
42.3 	representative of the teachers in the district, consistent with paragraph (b), must develop a
42.4 	an annual teacher evaluation and peer review process for nonprobationary teachers through 
42.5 	joint agreement. The peer review process may must include having trained observers 
42.6 	serve as peer coaches or having teachers participate in professional learning communities.
42.7 	(b) To develop, improve, and support qualified teachers and effective teaching 
42.8 	practices and improve student learning and success, the annual evaluation process for 
42.9 	continuing contract teachers must:
42.10 	(1) be a collaborative effort between teachers and school administrators to develop 
42.11 	and implement a teacher evaluation process that is based on professional teaching 
42.12 	standards and includes both formative assessments to improve instruction through 
42.13 	identifying teachers' strengths and weaknesses and summative assessments conducted at 
42.14 	least once every three school years and used to make personnel decisions, consistent 
42.15 	with clause (2);
42.16 	(2) coordinate staff development activities under section 122A.60 with this 
42.17 	evaluation process and teachers' evaluation outcomes and give teachers not meeting 
42.18 	standards of effective practice sufficient support to improve;
42.19 	(3) include in-class observations by both licensed mentor teachers and school 
42.20 	administrators who are trained evaluators, use a valid observation framework or protocol, 
42.21 	and periodically undergo a reliability review;
42.22 	(4) provide peer coaching or have teachers participate in professional learning 
42.23 	communities, consistent with paragraph (a);
42.24 	(5) require teachers to develop and present a portfolio demonstrating evidence 
42.25 	of reflection and professional growth, consistent with section 122A.18, subdivision 
42.26 	4, paragraph (b), using criteria developed by the Board of Teaching to reliably assess 
42.27 	portfolio content, and include teachers' own performance assessment based on student 
42.28 	work samples, student and family surveys, and videotapes of teachers' work, among 
42.29 	other activities;
42.30 	(6) demonstrate teachers' content knowledge and teaching skills; and
42.31 	(7) use longitudinal data on student academic growth, student attendance, student 
42.32 	engagement and connection, and other outcome measures as evaluation components.

42.33 	EFFECTIVE DATE. This section is effective the day following final enactment 
42.34 	and applies beginning when a district next enters into or modifies a collective bargaining 
42.35 	agreement or by the 2011-2012 school year, whichever comes first.

43.1 	Sec. 23. [123A.29] EFFICIENCY PLUS ACCESS TASK FORCES.
43.2 		Subdivision 1.Purpose. The purpose of the efficiency plus access task forces 
43.3 	is to facilitate greater efficiency and reduce education costs through collaboration and 
43.4 	cooperation across school districts and other governmental agencies while maintaining 
43.5 	or improving the learning results for students. The legislative intent is to reduce the 
43.6 	administrative costs of education without resorting to a policy of required consolidation 
43.7 	that reduces the number of districts or school boards and without creating fewer larger 
43.8 	schools that require longer bus rides for students.
43.9 		Subd. 2.Required district participation. Each district with an enrollment of 
43.10 	fewer than 5,000 pupils in K-12 for fiscal year 2010 shall participate in an efficiency 
43.11 	plus access task force.
43.12 		Subd. 3.Optional district and other public entity participation. School districts 
43.13 	with more than 5,000 pupils, charter schools, cities, townships, counties, public higher 
43.14 	education institutions, Head Start agencies, public libraries, and other public entities are 
43.15 	encouraged to participate in the efficiency plus access task forces.
43.16 		Subd. 4.Task force membership. (a) Participating districts may organize the task 
43.17 	forces using an existing education district, intermediate district, or other cooperative 
43.18 	model. Districts may request that a service cooperative assist in establishing task forces 
43.19 	for their service area. Districts do not need to be contiguous to form an efficiency plus 
43.20 	access task force. Each task force shall consist of one member appointed by each district 
43.21 	board included in the task force and one member from each entity defined in subdivision 
43.22 	3 that choose to participate. Districts and other public entities may decide to become 
43.23 	members of more than one efficiency plus access task force. These appointments shall be 
43.24 	made by August 15, 2010.
43.25 	(b) Each school board shall develop a process within the district allowing teachers, 
43.26 	students, parents, and the community to have access and opportunities to review and make 
43.27 	recommendations to be brought forward to the efficiency plus access task force.
43.28 	(c) The initial meeting of each task force shall not be later than September 30, 2010. 
43.29 	At the initial meeting, each task force shall elect a chair and other officers it considers 
43.30 	necessary to coordinate the work of the task force.
43.31 		Subd. 5.Task force; powers. (a) Each task force shall review and make 
43.32 	recommendations to the boards of the participating districts and public entities regarding 
43.33 	how the purpose of this section can be met in the following areas:
43.34 	(1) administrative services including but not limited to superintendent services, 
43.35 	principal services, financial management, human services, facilities and grounds 
43.36 	maintenance, food and nutrition services, research and evaluation services, transportation 
44.1 	services, health services, information technology services, and other administrative 
44.2 	services. Cooperation with other public agencies for the provision of administrative 
44.3 	services should be considered;
44.4 	(2) instructional and learning services including but not limited to creating a 
44.5 	common calendar; low-attendance elective secondary courses; use of technology to 
44.6 	replace or supplement courses currently being provided; use of technology to provide 
44.7 	new learning opportunities through technology with an emphasis on using low-cost or 
44.8 	no-cost learning opportunities available online; coordination with higher education so 
44.9 	that advanced courses are provided college credit to avoid duplication between high 
44.10 	school and postsecondary; determine how certain students can complete select high school 
44.11 	credit requirements while in middle school; and exploring ways to utilize the learning 
44.12 	opportunities in the community through programs such as parks and recreation, arts, 
44.13 	libraries, and other community providers; and
44.14 	(3) cooperative arrangements for shared extracurricular activities, including having 
44.15 	the activities become the responsibility of the community recreational program.
44.16 	(b) The task force shall consider creating new models of schools including 
44.17 	project-based learning schools, online learning schools in cooperation with other education 
44.18 	districts, service cooperatives or chartered schools, new grade 11 postsecondary models 
44.19 	in partnership with colleges and universities, prekindergarten through primary grades in 
44.20 	partnership with early childhood providers, and other models of schooling.
44.21 		Subd. 6.Reporting. Each efficiency plus access task force shall file its initial 
44.22 	planning report with the commissioner no later than October 15, 2010. The report shall 
44.23 	include the basic information about the composition of the task force, including how input 
44.24 	to the task force will be obtained consistent with subdivision 4, paragraph (b). Each task 
44.25 	force shall complete its recommendations and file its report with the member school 
44.26 	boards and commissioner no later than December 1, 2011. The report shall include 
44.27 	recommendations pursuant to subdivision 5 and identify the financial impact of those 
44.28 	recommendations for at least fiscal years 2013 and 2014. Each school board shall file a 
44.29 	report with the commissioner regarding the actions it will take in response to the report 
44.30 	no later than March 15, 2012. The report shall also include the impact on other agencies 
44.31 	included in the task force planning.

44.32 	Sec. 24. Minnesota Statutes 2009 Supplement, section 123B.143, subdivision 1, 
44.33 	is amended to read:
44.34 		Subdivision 1.Contract; duties. All districts maintaining a classified secondary 
44.35 	school must employ a superintendent who shall be an ex officio nonvoting member of the 
45.1 	school board. The authority for selection and employment of a superintendent must be 
45.2 	vested in the board in all cases. An individual employed by a board as a superintendent 
45.3 	shall have an initial employment contract for a period of time no longer than three years 
45.4 	from the date of employment. Any subsequent employment contract must not exceed a 
45.5 	period of three years. A board, at its discretion, may or may not renew an employment 
45.6 	contract. A board must not, by action or inaction, extend the duration of an existing 
45.7 	employment contract. Beginning 365 days prior to the expiration date of an existing 
45.8 	employment contract, a board may negotiate and enter into a subsequent employment 
45.9 	contract to take effect upon the expiration of the existing contract. A subsequent contract 
45.10 	must be contingent upon the employee completing the terms of an existing contract. If a 
45.11 	contract between a board and a superintendent is terminated prior to the date specified in 
45.12 	the contract, the board may not enter into another superintendent contract with that same 
45.13 	individual that has a term that extends beyond the date specified in the terminated contract. 
45.14 	A board may terminate a superintendent during the term of an employment contract for any 
45.15 	of the grounds specified in section 122A.40, subdivision 9 or 13. A superintendent shall 
45.16 	not rely upon an employment contract with a board to assert any other continuing contract 
45.17 	rights in the position of superintendent under section 122A.40. Notwithstanding the 
45.18 	provisions of sections 122A.40, subdivision 10 or 11, 123A.32, 123A.75, or any other law 
45.19 	to the contrary, no individual shall have a right to employment as a superintendent based 
45.20 	on order of employment in any district. If two or more districts enter into an agreement for 
45.21 	the purchase or sharing of the services of a superintendent, the contracting districts have 
45.22 	the absolute right to select one of the individuals employed to serve as superintendent 
45.23 	in one of the contracting districts and no individual has a right to employment as the 
45.24 	superintendent to provide all or part of the services based on order of employment in a 
45.25 	contracting district. The superintendent of a district shall perform the following:
45.26 	(1) visit and supervise the schools in the district, report and make recommendations 
45.27 	about their condition when advisable or on request by the board;
45.28 	(2) recommend to the board employment and dismissal of teachers;
45.29 	(3) annually evaluate each school principal and assistant principal assigned 
45.30 	responsibility for supervising a school building within the district, consistent with section 
45.31 	123B.147, subdivision 3, paragraph (b);
45.32 	(4) superintend school grading practices and examinations for promotions;
45.33 	(4) (5) make reports required by the commissioner; and
45.34 	(5) (6) perform other duties prescribed by the board.

46.1 	EFFECTIVE DATE. This section is effective the day following final enactment 
46.2 	and applies beginning when a district next enters into or modifies a collective bargaining 
46.3 	agreement or by the 2011-2012 school year, whichever comes first.

46.4 	Sec. 25. Minnesota Statutes 2008, section 123B.147, subdivision 3, is amended to read:
46.5 		Subd. 3.Duties; evaluation. (a) The principal shall provide administrative, 
46.6 	supervisory, and instructional leadership services, under the supervision of the 
46.7 	superintendent of schools of the district and in accordance with according to the policies, 
46.8 	rules, and regulations of the school board of education, for the planning, management, 
46.9 	operation, and evaluation of the education program of the building or buildings to which 
46.10 	the principal is assigned.
46.11 	(b) To enhance principals' leadership skills and support and improve teachers' 
46.12 	teaching practices, the school board and the exclusive representative of the school 
46.13 	principals of the district must negotiate a plan for an annual evaluation of the school 
46.14 	principals and assistant principals assigned responsibility for supervising a school building 
46.15 	within the district. The annual evaluation process must:
46.16 	(1) be designed to support and improve principals' instructional leadership 
46.17 	defined in the plan, organizational management, and professional development, and 
46.18 	strengthen principals' capacity in the areas of instruction, supervision, evaluation, and the 
46.19 	development of teachers and highly effective school organizations;
46.20 	(2) include formative and summative evaluations;
46.21 	(3) be consistent with the principals' job description, district long-term plans and 
46.22 	goals, and principals' own professional multiyear growth plans and goals;
46.23 	(4) include on-the-job observations, team assessments and evaluations, and verbal 
46.24 	and written feedback on performance;
46.25 	(5) require feedback from teachers, support staff, students, and parents;
46.26 	(6) use longitudinal data on student academic growth as an evaluation component; 
46.27 	and
46.28 	(7) be linked to professional development.

46.29 	EFFECTIVE DATE. This section is effective the day following final enactment 
46.30 	and applies beginning when a district next enters into or modifies a collective bargaining 
46.31 	agreement or by the 2011-2012 school year, whichever comes first.

46.32 	Sec. 26. Minnesota Statutes 2009 Supplement, section 124D.10, subdivision 3, is 
46.33 	amended to read:
47.1 		Subd. 3.Authorizer. (a) For purposes of this section, the terms defined in this 
47.2 	subdivision have the meanings given them.
47.3 	"Application" to receive approval as an authorizer means the proposal an eligible 
47.4 	authorizer submits to the commissioner under paragraph (c) before that authorizer is able 
47.5 	to submit any affidavit to charter to a school.
47.6 	"Application" under subdivision 4 means the charter school business plan a 
47.7 	school developer submits to an authorizer for approval to establish a charter school that 
47.8 	documents the school developer's mission statement, school purposes, program design, 
47.9 	financial plan, governance and management structure, and background and experience, 
47.10 	plus any other information the authorizer requests. The application also shall include a 
47.11 	"statement of assurances" of legal compliance prescribed by the commissioner.
47.12 	"Affidavit" means a written statement the authorizer submits to the commissioner 
47.13 	for approval to establish a charter school under subdivision 4 attesting to its review and 
47.14 	approval process before chartering a school.
47.15 	"Affidavit" means the form an authorizer submits to the commissioner that is a 
47.16 	precondition to a charter school organizing an affiliated nonprofit building corporation 
47.17 	under subdivision 17a.
47.18 	(b) The following organizations may authorize one or more charter schools:
47.19 	(1) a school board; intermediate school district school board; education district 
47.20 	organized under sections 123A.15 to 123A.19;
47.21 	(2) a charitable organization under section 501(c)(3) of the Internal Revenue 
47.22 	Code of 1986, excluding a nonpublic sectarian or religious institution, without an 
47.23 	approved affidavit by the commissioner prior to July 1, 2009, and any person other than a 
47.24 	natural person that directly or indirectly, through one or more intermediaries, controls, 
47.25 	is controlled by, or is under common control with the nonpublic sectarian or religious 
47.26 	institution, and any other charitable organization under this clause that in the federal IRS 
47.27 	Form 1023, Part IV, describes activities indicating a religious purpose, that:
47.28 	(i) is a member of the Minnesota Council of Nonprofits or the Minnesota Council on 
47.29 	Foundations;
47.30 	(ii) is registered with the attorney general's office;
47.31 	(iii) reports an end-of-year fund balance of at least $2,000,000; and
47.32 	(iv) is incorporated in the state of Minnesota;
47.33 	(3) a Minnesota private college, notwithstanding clause (2), that grants two- or 
47.34 	four-year degrees and is registered with the Minnesota Office of Higher Education under 
47.35 	chapter 136A; community college, state university, or technical college governed by the 
48.1 	Board of Trustees of the Minnesota State Colleges and Universities; or the University of 
48.2 	Minnesota; or
48.3 	(4) a nonprofit corporation subject to chapter 317A, described in section 317A.905, 
48.4 	and exempt from federal income tax under section 501(c)(6) of the Internal Revenue Code 
48.5 	of 1986, may authorize one or more charter schools if the charter school has operated 
48.6 	for at least three years under a different authorizer and if the nonprofit corporation has 
48.7 	existed for at least 25 years.
48.8 	(5) no more than three single-purpose sponsors that are charitable, nonsectarian 
48.9 	organizations formed under section 501(c)(3) of the Internal Revenue Code of 1986 and 
48.10 	incorporated in the state of Minnesota whose sole purpose is to charter schools. Eligible 
48.11 	organizations interested in being approved as a sponsor under this paragraph must submit a 
48.12 	proposal to the commissioner that includes the provisions of paragraph (c) and a five-year 
48.13 	financial plan. Such authorizers shall consider and approve applications using the criteria 
48.14 	provided in subdivision 4 and shall not limit the applications it solicits, considers, or 
48.15 	approves to any single curriculum, learning program, or method.
48.16 	(c) An eligible authorizer under this subdivision must apply to the commissioner for 
48.17 	approval as an authorizer before submitting any affidavit to the commissioner to charter 
48.18 	a school. The application for approval as a charter school authorizer must demonstrate 
48.19 	the applicant's ability to implement the procedures and satisfy the criteria for chartering a 
48.20 	school under this section. The commissioner must approve or disapprove an application 
48.21 	within 60 business days of the application deadline. If the commissioner disapproves 
48.22 	the application, the commissioner must notify the applicant of the deficiencies and the 
48.23 	applicant then has 20 business days to address the deficiencies to the commissioner's 
48.24 	satisfaction. Failing to address the deficiencies to the commissioner's satisfaction makes 
48.25 	an applicant ineligible to be an authorizer. The commissioner, in establishing criteria for 
48.26 	approval, must consider the applicant's:
48.27 	(1) capacity and infrastructure;
48.28 	(2) application criteria and process;
48.29 	(3) contracting process;
48.30 	(4) ongoing oversight and evaluation processes; and
48.31 	(5) renewal criteria and processes.
48.32 	(d) The affidavit application for approval to be submitted to and evaluated by the 
48.33 	commissioner must include at least the following:
48.34 	(1) how chartering schools is a way for the organization to carry out its mission;
48.35 	(2) a description of the capacity of the organization to serve as a sponsor, including 
48.36 	the personnel who will perform the sponsoring duties, their qualifications, the amount of 
49.1 	time they will be assigned to this responsibility, and the financial resources allocated 
49.2 	by the organization to this responsibility;
49.3 	(3) a description of the application and review process the authorizer will use to make 
49.4 	decisions regarding the granting of charters, which will include at least the following:
49.5 	(i) how the statutory purposes defined in subdivision 1 are addressed;
49.6 	(ii) the mission, goals, program model, and student performance expectations;
49.7 	(iii) an evaluation plan for the school that includes criteria for evaluating educational, 
49.8 	organizational, and fiscal plans;
49.9 	(iv) the school's governance plan;
49.10 	(v) the financial management plan; and
49.11 	(vi) the administration and operations plan;
49.12 	(4) a description of the type of contract it will arrange with the schools it charters 
49.13 	that meets the provisions of subdivision 6 and defines the rights and responsibilities of the 
49.14 	charter school for governing its educational program, controlling its funds, and making 
49.15 	school management decisions;
49.16 	(5) the process to be used for providing ongoing oversight of the school consistent 
49.17 	with the contract expectations specified in clause (4) that assures that the schools chartered 
49.18 	are complying with both the provisions of applicable law and rules, and with the contract;
49.19 	(6) the process for making decisions regarding the renewal or termination of 
49.20 	the school's charter based on evidence that demonstrates the academic, organizational, 
49.21 	and financial competency of the school, including its success in increasing student 
49.22 	achievement and meeting the goals of the charter school agreement; and
49.23 	(7) an assurance specifying that the organization is committed to serving as a 
49.24 	sponsor for the full five-year term.
49.25 	A disapproved applicant under this paragraph may resubmit an application during a 
49.26 	future application period.
49.27 	(e) The authorizer must participate in department-approved training.
49.28 	(f) An authorizer that chartered a school before August 1, 2009, must apply by 
49.29 	June 30, 2011, to the commissioner for approval, under paragraph (c), to continue as an 
49.30 	authorizer under this section. For purposes of this paragraph, an authorizer that fails to 
49.31 	submit a timely application is ineligible to charter a school.
49.32 	(g) The commissioner shall review an authorizer's performance every five years in 
49.33 	a manner and form determined by the commissioner and may review an authorizer's 
49.34 	performance more frequently at the commissioner's own initiative or at the request of a 
49.35 	charter school operator, charter school board member, or other interested party. The 
49.36 	commissioner, after completing the review, shall transmit a report with findings to the 
50.1 	authorizer. If, consistent with this section, the commissioner finds that an authorizer 
50.2 	has not fulfilled the requirements of this section, the commissioner may subject the 
50.3 	authorizer to corrective action, which may include terminating the contract with the 
50.4 	charter school board of directors of a school it chartered. The commissioner must notify 
50.5 	the authorizer in writing of any findings that may subject the authorizer to corrective 
50.6 	action and the authorizer then has 15 business days to request an informal hearing before 
50.7 	the commissioner takes corrective action.
50.8 	(h) The commissioner may at any time take corrective action against an authorizer, 
50.9 	including terminating an authorizer's ability to charter a school for:
50.10 	(1) failing to demonstrate the criteria under paragraph (c) under which the 
50.11 	commissioner approved the authorizer;
50.12 	(2) violating a term of the chartering contract between the authorizer and the charter 
50.13 	school board of directors; or
50.14 	(3) unsatisfactory performance as an approved authorizer.

50.15 	Sec. 27. Minnesota Statutes 2009 Supplement, section 124D.10, subdivision 4, is 
50.16 	amended to read:
50.17 		Subd. 4.Formation of school. (a) An authorizer, after receiving an application from 
50.18 	a school developer, may charter a licensed teacher under section 122A.18, subdivision 
50.19 	1, or a group of individuals that includes one or more licensed teachers under section 
50.20 	122A.18, subdivision 1, to operate a school subject to the commissioner's approval of the 
50.21 	authorizer's affidavit under paragraph (b). The school must be organized and operated 
50.22 	as a cooperative under chapter 308A or nonprofit corporation under chapter 317A and 
50.23 	the provisions under the applicable chapter shall apply to the school except as provided 
50.24 	in this section.
50.25 	Notwithstanding sections 465.717 and 465.719, a school district, subject to this 
50.26 	section and section 124D.11, may create a corporation for the purpose of establishing a 
50.27 	charter school.
50.28 	(b) Before the operators may establish and operate a school, the authorizer must file 
50.29 	an affidavit with the commissioner stating its intent to charter a school. An authorizer 
50.30 	must file a separate affidavit for each school it intends to charter. The affidavit must 
50.31 	state the terms and conditions under which the authorizer would charter a school and 
50.32 	how the authorizer intends to oversee the fiscal and student performance of the charter 
50.33 	school and to comply with the terms of the written contract between the authorizer 
50.34 	and the charter school board of directors under subdivision 6. The commissioner must 
50.35 	approve or disapprove the authorizer's affidavit within 60 business days of receipt of the 
51.1 	affidavit. If the commissioner disapproves the affidavit, the commissioner shall notify 
51.2 	the authorizer of the deficiencies in the affidavit and the authorizer then has 20 business 
51.3 	days to address the deficiencies. If the authorizer does not address deficiencies to the 
51.4 	commissioner's satisfaction, the commissioner's disapproval is final. Failure to obtain 
51.5 	commissioner approval precludes an authorizer from chartering the school that is the 
51.6 	subject of this affidavit.
51.7 	(c) The authorizer may prevent an approved charter school from opening for 
51.8 	operation if, among other grounds, the charter school violates this section or does not meet 
51.9 	the ready-to-open standards that are part of the authorizer's oversight and evaluation 
51.10 	process or are stipulated in the charter school contract.
51.11 	(d) The operators authorized to organize and operate a school, before entering into a 
51.12 	contract or other agreement for professional or other services, goods, or facilities, must 
51.13 	incorporate as a cooperative under chapter 308A or as a nonprofit corporation under 
51.14 	chapter 317A and must establish a board of directors composed of at least five members 
51.15 	who are not related parties until a timely election for members of the ongoing charter 
51.16 	school board of directors is held according to the school's articles and bylaws under 
51.17 	paragraph (f). A charter school board of directors must be composed of at least five 
51.18 	members who are not related parties. Staff members employed at the school, including 
51.19 	teachers providing instruction under a contract with a cooperative, and all parents or legal 
51.20 	guardians of children enrolled in the school are the voters eligible to elect the members 
51.21 	of the school's board of directors. A charter school must notify eligible voters of the 
51.22 	school board election dates at least 30 days before the election. Board of director meetings 
51.23 	must comply with chapter 13D.
51.24 	(e) Upon the request of an individual, the charter school must make available in 
51.25 	a timely fashion the minutes of meetings of the board of directors, and of members 
51.26 	and committees having any board-delegated authority; financial statements showing all 
51.27 	operations and transactions affecting income, surplus, and deficit during the school's last 
51.28 	annual accounting period; and a balance sheet summarizing assets and liabilities on the 
51.29 	closing date of the accounting period. A charter school also must post on its official Web 
51.30 	site information identifying its authorizer and indicate how to contact that authorizer and 
51.31 	include that same information about its authorizer in other school materials that it makes 
51.32 	available to the public.
51.33 	(f) Every charter school board member shall attend department-approved training 
51.34 	on board governance, the board's role and responsibilities, employment policies and 
51.35 	practices, and financial management. A board member who does not begin the required 
52.1 	training within six months of being seated and complete the required training within 12 
52.2 	months of being seated on the board is ineligible to continue to serve as a board member.
52.3 	(g) The ongoing board must be elected before the school completes its third year 
52.4 	of operation. Board elections must be held during a time when school is in session. The 
52.5 	charter school board of directors shall be composed of at least five nonrelated members 
52.6 	and include: (i) at least one licensed teacher employed and serving as a teacher at the 
52.7 	school or a licensed teacher providing instruction under a contact contract between the 
52.8 	charter school and a cooperative; (ii) the parent or legal guardian of a student enrolled 
52.9 	in the charter school who is not employed by the charter school; and (iii) an interested 
52.10 	community member who is not employed by the charter school and does not have a child 
52.11 	enrolled in the school. The board may be a teacher majority board composed of teachers 
52.12 	described in this paragraph. The chief financial officer and the chief administrator are may 
52.13 	only serve as ex-officio nonvoting board members and shall not serve as a voting member 
52.14 	of the board. Charter school employees shall not serve on the board unless item (i) applies. 
52.15 	Contractors providing facilities, goods, or services to a charter school shall not serve on 
52.16 	the board of directors of the charter school. Board bylaws shall outline the process and 
52.17 	procedures for changing the board's governance model, consistent with chapter 317A. A 
52.18 	board may change its governance model only:
52.19 	(1) by a majority vote of the board of directors and the licensed teachers employed 
52.20 	by the school, including licensed teachers providing instruction under a contract between 
52.21 	the school and a cooperative; and
52.22 	(2) with the authorizer's approval.
52.23 	Any change in board governance must conform with the board structure established 
52.24 	under this paragraph.
52.25 	(h) The granting or renewal of a charter by an authorizer must not be conditioned 
52.26 	upon the bargaining unit status of the employees of the school.
52.27 	(i) The granting or renewal of a charter school by an authorizer must not be 
52.28 	contingent on the charter school being required to contract, lease, or purchase services 
52.29 	from the authorizer. Any potential contract, lease, or purchase of service from an 
52.30 	authorizer must be disclosed to the commissioner, accepted through an open bidding 
52.31 	process, and be a separate contract from the charter contract. The school must document 
52.32 	the open bidding process. An authorizer must not enter into a contract to provide 
52.33 	management and financial services for a school that it authorizes, unless the school 
52.34 	documents that it received at least two competitive bids.
52.35 	(j) An authorizer may permit the board of directors of a charter school to expand 
52.36 	the operation of the charter school to additional sites or to add additional grades at the 
53.1 	school beyond those described in the authorizer's original affidavit as approved by 
53.2 	the commissioner only after submitting a supplemental affidavit for approval to the 
53.3 	commissioner in a form and manner prescribed by the commissioner. The supplemental 
53.4 	affidavit must show that:
53.5 	(1) the expansion proposed by the charter school is supported by need and projected 
53.6 	enrollment;
53.7 	(2) the charter school expansion is warranted, at a minimum, by longitudinal data 
53.8 	demonstrating students' improved academic performance and growth on statewide 
53.9 	assessments under chapter 120B;
53.10 	(3) the charter school is fiscally sound and has the financial capacity to implement 
53.11 	the proposed expansion; and
53.12 	(4) the authorizer finds that the charter school has the management capacity to 
53.13 	carry out its expansion.
53.14 	(k) The commissioner shall have 30 business days to review and comment on the 
53.15 	supplemental affidavit. The commissioner shall notify the authorizer of any deficiencies in 
53.16 	the supplemental affidavit and the authorizer then has 30 business days to address, to the 
53.17 	commissioner's satisfaction, any deficiencies in the supplemental affidavit. The school 
53.18 	may not expand grades or add sites until the commissioner has approved the supplemental 
53.19 	affidavit. The commissioner's approval or disapproval of a supplemental affidavit is final.

53.20 	Sec. 28. Minnesota Statutes 2009 Supplement, section 124D.10, subdivision 4a, 
53.21 	is amended to read:
53.22 		Subd. 4a.Conflict of interest. (a) An individual is prohibited from serving must 
53.23 	not serve as a member of the charter school board of directors if the that individual, an 
53.24 	immediate family member, or the individual's partner is an owner, an employee or agent 
53.25 	of, or a contractor who contracts with a for-profit or nonprofit entity, or an individual, and
53.26 	with whom the charter school contracts, directly or indirectly, for professional services, 
53.27 	goods, or facilities. A violation of this prohibition renders a contract voidable at the option 
53.28 	of the commissioner or the charter school board of directors. A member of a charter 
53.29 	school board of directors who violates this prohibition is individually liable to the charter 
53.30 	school for any damage caused by the violation.
53.31 	(b) No member of the board of directors, employee, officer, or agent of a charter 
53.32 	school shall participate in selecting, awarding, or administering a contract if a conflict 
53.33 	of interest exists. A conflict exists when:
53.34 	(1) the board member, employee, officer, or agent;
53.35 	(2) the immediate family of the board member, employee, officer, or agent;
54.1 	(3) the partner of the board member, employee, officer, or agent; or
54.2 	(4) an organization that employs, or is about to employ any individual in clauses 
54.3 	(1) to (3),
54.4 	has a financial or other interest in the entity with which the charter school is contracting. 
54.5 	A violation of this prohibition renders the contract void.
54.6 	(c) Any employee, agent, or board member of the authorizer who participates 
54.7 	in the initial review, approval, ongoing oversight, evaluation, or the charter renewal or 
54.8 	nonrenewal process or decision is ineligible to serve on the board of directors of a school 
54.9 	chartered by that authorizer.
54.10 	(d) An individual may serve as a member of the board of directors if no conflict of 
54.11 	interest under paragraph (a) exists.
54.12 	(e) A charter school board member or employee may receive remuneration such as 
54.13 	a fee-for-service as part of a financial transaction involving a charter school only if the 
54.14 	remuneration is payment for services rendered that are in addition to the services the board 
54.15 	member or employee already agreed to provide to the charter school and the board of 
54.16 	directors formally approves the remuneration.
54.17 	(f) The conflict of interest provisions under this subdivision do not apply to 
54.18 	compensation paid to a teacher employed by the charter school who also serves as a 
54.19 	member of the board of directors.
54.20 	(f)(g) The conflict of interest provisions under this subdivision do not apply to a 
54.21 	teacher who provides services to a charter school through a cooperative formed under 
54.22 	chapter 308A when the teacher also serves on the charter school board of directors.

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

54.24 	Sec. 29. Minnesota Statutes 2009 Supplement, section 124D.10, subdivision 6a, 
54.25 	is amended to read:
54.26 		Subd. 6a.Audit report. (a) The charter school must submit an audit report to the 
54.27 	commissioner and its authorizer by December 31 each year.
54.28 	(b) The charter school, with the assistance of the auditor conducting the audit, must 
54.29 	include with the report a copy of all charter school agreements for corporate management 
54.30 	services. If the entity that provides the professional services to the charter school is 
54.31 	exempt from taxation under section 501 of the Internal Revenue Code of 1986, that entity 
54.32 	must file with the commissioner by February 15 a copy of the annual return required under 
54.33 	section 6033 of the Internal Revenue Code of 1986.
55.1 	(c) If the commissioner receives an audit report indicating that a material weakness 
55.2 	exists in the financial reporting systems of a charter school, the charter school must 
55.3 	submit a written report to the commissioner explaining how the material weakness will 
55.4 	be resolved. An entity, as a condition of providing financial services to a charter school, 
55.5 	must agree to make available information about a charter school's financial audit to the 
55.6 	commissioner upon request.

55.7 	Sec. 30. Minnesota Statutes 2009 Supplement, section 124D.10, subdivision 11, 
55.8 	is amended to read:
55.9 		Subd. 11.Employment and other operating matters. (a) A charter school must 
55.10 	employ or contract with necessary teachers, as defined by section 122A.15, subdivision 
55.11 	1, who hold valid licenses to perform the particular service for which they are employed 
55.12 	in the school. The charter school's state aid may be reduced under section 127A.43 
55.13 	if the school employs a teacher who is not appropriately licensed or approved by the 
55.14 	board of teaching. The school may employ necessary employees who are not required to 
55.15 	hold teaching licenses to perform duties other than teaching and may contract for other 
55.16 	services. The school may discharge teachers and nonlicensed employees. The charter 
55.17 	school board is subject to section 181.932. When offering employment to a prospective 
55.18 	employee, a charter school must give that employee a written description of the terms and 
55.19 	conditions of employment and the school's personnel policies. The terms and conditions 
55.20 	of employment must include an annual teacher evaluation that is substantively consistent 
55.21 	with section 122A.40, subdivision 8, paragraph (b). Teacher evaluations do not create 
55.22 	an expectation of continuing employment.
55.23 	(b) A person, without holding a valid administrator's license, may perform 
55.24 	administrative, supervisory, or instructional leadership duties. The board of directors shall 
55.25 	establish qualifications for persons that hold administrative, supervisory, or instructional 
55.26 	leadership roles. The qualifications shall include at least the following areas: instruction 
55.27 	and assessment; human resource and personnel management; financial management; 
55.28 	legal and compliance management; effective communication; and board, authorizer, and 
55.29 	community relationships. The board of directors shall use those qualifications as the 
55.30 	basis for job descriptions, hiring, and performance evaluations, substantively consistent 
55.31 	with section 123B.147, subdivision 3, paragraph (b), of those who hold administrative, 
55.32 	supervisory, or instructional leadership roles. Performance evaluations do not create 
55.33 	an expectation of continuing employment. The board of directors and an individual 
55.34 	who does not hold a valid administrative license and who serves in an administrative, 
55.35 	supervisory, or instructional leadership position shall develop a professional development 
56.1 	plan. Documentation of the implementation of the professional development plan of these 
56.2 	persons shall be included in the school's annual report.
56.3 	(c) The board of directors also shall decide matters related to the operation of the 
56.4 	school, including budgeting, curriculum and operating procedures.

56.5 	EFFECTIVE DATE. This section is effective for the 2011-2012 school year and 
56.6 	later.

56.7 	Sec. 31. Minnesota Statutes 2009 Supplement, section 124D.10, subdivision 23, 
56.8 	is amended to read:
56.9 		Subd. 23.Causes for nonrenewal or termination of charter school contract. (a) 
56.10 	The duration of the contract with an authorizer must be for the term contained in the 
56.11 	contract according to subdivision 6. The authorizer may or may not renew a contract at 
56.12 	the end of the term for any ground listed in paragraph (b). An authorizer may unilaterally 
56.13 	terminate a contract during the term of the contract for any ground listed in paragraph 
56.14 	(b). At least 60 days before not renewing or terminating a contract, the authorizer shall 
56.15 	notify the board of directors of the charter school of the proposed action in writing. The 
56.16 	notice shall state the grounds for the proposed action in reasonable detail and that the 
56.17 	charter school's board of directors may request in writing an informal hearing before the 
56.18 	authorizer within 15 business days of receiving notice of nonrenewal or termination of the 
56.19 	contract. Failure by the board of directors to make a written request for a hearing within 
56.20 	the 15-business-day period shall be treated as acquiescence to the proposed action. Upon 
56.21 	receiving a timely written request for a hearing, the authorizer shall give ten business days' 
56.22 	notice to the charter school's board of directors of the hearing date. The authorizer shall 
56.23 	conduct an informal hearing before taking final action. The authorizer shall take final 
56.24 	action to renew or not renew a contract no later than 20 business days before the proposed 
56.25 	date for terminating the contract or the end date of the contract.
56.26 	(b) A contract may be terminated or not renewed upon any of the following grounds:
56.27 	(1) failure to meet the requirements for pupil performance contained in the contract;
56.28 	(2) failure to meet generally accepted standards of fiscal management;
56.29 	(3) violations of law; or
56.30 	(4) other good cause shown.
56.31 	If a contract is terminated or not renewed under this paragraph, the school must be 
56.32 	dissolved according to the applicable provisions of chapter 308A or 317A.
56.33 	(c) If the sponsor and the charter school board of directors mutually agree to 
56.34 	terminate or not renew the contract, a change in sponsors is allowed if the commissioner 
56.35 	approves the transfer to a different eligible authorizer to authorize the charter school. 
57.1 	Both parties must jointly submit their intent in writing to the commissioner to mutually 
57.2 	terminate the contract. The sponsor that is a party to the existing contract at least must 
57.3 	inform the approved different eligible sponsor about the fiscal and operational status 
57.4 	and student performance of the school. Before the commissioner determines whether 
57.5 	to approve a transfer of authorizer, the commissioner first must determine whether the 
57.6 	charter school and prospective new authorizer can identify and effectively resolve those 
57.7 	circumstances causing the previous authorizer and the charter school to mutually agree to 
57.8 	terminate the contract. If no transfer of sponsor is approved, the school must be dissolved 
57.9 	according to applicable law and the terms of the contract.
57.10 	(d) The commissioner, after providing reasonable notice to the board of directors of 
57.11 	a charter school and the existing authorizer, and after providing an opportunity for a public 
57.12 	hearing under chapter 14, may terminate the existing contract between the authorizer and 
57.13 	the charter school board if the charter school has a history of:
57.14 	(1) failure to meet pupil performance requirements contained in the contract
57.15 	consistent with state law;
57.16 	(2) financial mismanagement or failure to meet generally accepted standards of 
57.17 	fiscal management; or
57.18 	(3) repeated or major violations of the law.
57.19 	(e) If the commissioner terminates a charter school contract under subdivision 3, 
57.20 	paragraph (g), the commissioner shall provide the charter school with information about 
57.21 	other eligible authorizers.

57.22 	Sec. 32. [124D.101] VACANT BUILDING INVENTORY.
57.23 	The Department of Administration and the Department of Education annually shall 
57.24 	publish a list of state and district-owned buildings and parts of buildings that are vacant 
57.25 	and unused and that may be suitable for operating a charter school. The Department of 
57.26 	Education shall make the list available to charter school applicants and operators. The 
57.27 	list shall include the building address, a brief building description, and building name. 
57.28 	Nothing in this section requires a building owner to sell or lease a listed building or a part 
57.29 	of a building to a charter school, any other school, or any other prospective buyer or 
57.30 	tenant. School districts, upon request, must provide the Department of Education with the 
57.31 	information it needs to compile the vacant building list under this section.

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

57.33 	Sec. 33. Laws 2009, chapter 96, article 2, section 64, is amended to read:
58.1 	Sec. 64. RESERVED REVENUE FOR STAFF DEVELOPMENT; 
58.2 	TEMPORARY SUSPENSION.
 58.3 	(a) Notwithstanding Minnesota Statutes, section 122A.61, subdivision 1, for fiscal 
58.4 	years 2010 and 2011 only, a school district or charter school may use revenue reserved for 
58.5 	staff development under Minnesota Statutes, section 122A.61, subdivision 1, according 
58.6 	to the requirements of general education revenue under Minnesota Statutes, section 
58.7 	126C.13, subdivision 5.
58.8 	(b) On June 30, 2010, a school district may permanently transfer any balance from 
58.9 	the reserved account for staff development to the undesignated general fund balance.

58.10 	Sec. 34. Laws 2009, chapter 96, article 2, section 67, subdivision 14, is amended to 
58.11 	read:
58.12 		Subd. 14.Collaborative urban educator. For the collaborative urban educator 
58.13 	grant program:

58.14		$
	528,000
	.....
	2010
	
58.15		$
	528,000
	.....
	2011
	
58.16 	$210,000 each year is for the Southeast Asian teacher program at Concordia 
58.17 	University, St. Paul; $159,000 each year is for the collaborative urban educator program at 
58.18 	the University of St. Thomas; and $159,000 each year is for the Center for Excellence in 
58.19 	Urban Teaching at Hamline University. Grant recipients must collaborate with urban and 
58.20 	nonurban school districts. Any balance in the first year does not cancel but is available 
58.21 	in the second year.

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

58.23 	Sec. 35. Laws 2009, chapter 96, article 2, section 67, subdivision 17, is amended to 
58.24 	read:
58.25 		Subd. 17.Education Planning and Assessment System (EPAS) program. For 
58.26 	the Educational Planning and Assessment System (EPAS) program under Minnesota 
58.27 	Statutes, section 120B.128:

58.28		$
	829,000
	.....
	2010
	
58.29		$
	829,000638,000
	.....
	2011
	
58.30 	Any balance in the first year does not cancel but is available in the second year.

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

59.1 	Sec. 36. IMPLEMENTING DIFFERENTIATED GRADUATION RATE 
59.2 	MEASURES AND EXPLORING ALTERNATIVE ROUTES TO A STANDARD 
59.3 	DIPLOMA FOR AT-RISK AND OFF-TRACK STUDENTS.
 59.4 	(a) To implement the requirements of Minnesota Statutes, section 120B.35, 
59.5 	subdivision 3, paragraph (e), the commissioner of education must convene a group 
59.6 	of recognized and qualified experts on improving differentiated graduation rates and 
59.7 	establishing alternative routes to a standard high school diploma for at-risk and off-track 
59.8 	students throughout the state. The commissioner must assist the group, as requested, 
59.9 	to explore and recommend to the commissioner and the legislature (i) research-based 
59.10 	measures that demonstrate the relative success of school districts, school sites, charter 
59.11 	schools, and alternative program providers in improving the graduation outcomes of 
59.12 	at-risk and off-track students, and (ii) state options for establishing alternative routes to a 
59.13 	standard diploma consistent with the educational accountability system under Minnesota 
59.14 	Statutes, chapter 120B. When proposing alternative routes to a standard diploma, the 
59.15 	group also must identify highly reliable variables that generate summary data to comply 
59.16 	with Minnesota Statutes, section 120B.35, subdivision 3, paragraph (e), including: who 
59.17 	initiates the request for an alternative route; who approves the request for an alternative 
59.18 	route; the parameters of the alternative route process, including whether a student first 
59.19 	must fail a regular, state-mandated exam; and the comparability of the academic and 
59.20 	achievement criteria reflected in the alternative route and the standard route for a standard 
59.21 	diploma. The group is also encouraged to identify the data, time lines, and methods 
59.22 	needed to evaluate and report on the alternative routes to a standard diploma once they are 
59.23 	implemented and the student outcomes that result from those routes.
59.24 	(b) The commissioner must convene the first meeting of this group by September 
59.25 	15, 2010. Group members must include: one administrator of, one teacher from, and 
59.26 	one parent of a student currently enrolled in a state-approved alternative program 
59.27 	selected by the Minnesota Association of Alternative Programs; one representative 
59.28 	selected by the Minnesota Online Learning Alliance; one representative selected by 
59.29 	the Metropolitan Federation of Alternative Schools; one representative selected by the 
59.30 	Minnesota Association of Charter Schools; one representative selected by the Minnesota 
59.31 	School Board Association; one representative selected by Education Minnesota; one 
59.32 	representative selected by the Association of Metropolitan School Districts; one 
59.33 	representative selected by the Minnesota Rural Education Association; two faculty 
59.34 	members selected by the dean of the college of education at the University of Minnesota 
59.35 	with expertise in serving and assessing at-risk and off-track students; two Minnesota State 
59.36 	Colleges and Universities faculty members selected by the Minnesota State Colleges 
60.1 	and Universities chancellor with expertise in serving and assessing at-risk and off-track 
60.2 	students; one currently serving superintendent from a school district selected by the 
60.3 	Minnesota Association of School Administrators; one currently serving high school 
60.4 	principal selected by the Minnesota Association of Secondary School Principals; and 
60.5 	two public members selected by the commissioner. The group may seek input from 
60.6 	representatives of other interested stakeholders and organizations with expertise to help 
60.7 	inform the group's work. The group must meet at least quarterly. Group members do not 
60.8 	receive compensation or reimbursement of expenses for participating in this group. The 
60.9 	group expires February 16, 2012.
60.10 	(c) The group, by February 15, 2012, must develop and submit to the commissioner 
60.11 	and the education policy and finance committees of the legislature recommendations 
60.12 	and legislation, consistent with this section and Minnesota Statutes, section 120B.35, 
60.13 	subdivision 3, paragraph (e), for:
60.14 	(1)  measuring and reporting differentiated graduation rates for at-risk and off-track 
60.15 	students throughout the state and the success and costs that school districts, school sites, 
60.16 	charter schools, and alternative program providers experience in identifying and serving 
60.17 	at-risk or off-track student populations; and
60.18 	(2) establishing alternative routes to a standard diploma.

60.19 	EFFECTIVE DATE. This section is effective the day following final enactment 
60.20 	and applies to school report cards beginning July 1, 2013.

60.21 	Sec. 37. RULEMAKING AUTHORITY.
 60.22 	The commissioner of education shall adopt rules consistent with chapter 14 that 
60.23 	provide English language proficiency standards for instruction of students identified 
60.24 	as limited English proficient under Minnesota Statutes, sections 124D.58 to 124D.64. 
60.25 	The English language proficiency standards must encompass the language domains of 
60.26 	listening, speaking, reading, and writing. The English language proficiency standards must 
60.27 	reflect social and academic dimensions of acquiring a second language that are accepted 
60.28 	of English language learners in prekindergarten through grade 12. The English language 
60.29 	proficiency standards must address the specific contexts for language acquisition in the 
60.30 	areas of social and instructional settings as well as academic language encountered in 
60.31 	language arts, mathematics, science, and social studies. The English language proficiency 
60.32 	standards must express the progression of language development through language 
60.33 	proficiency levels. The English language proficiency standards must be implemented 
60.34 	for all limited English proficient students beginning in the 2011-2012 school year and 
60.35 	assessed beginning in the 2012-2013 school year.

61.1 	Sec. 38. DEPARTMENT OF EDUCATION.
 61.2 		Subdivision 1.Recess guidelines. The department is encouraged to develop 
61.3 	voluntary school district guidelines that promote high quality recess practices and foster 
61.4 	student behaviors that lead students to increase their activity levels, improve their social 
61.5 	skills, and misbehave less.
61.6 		Subd. 2.Common course catalogue. The department is encouraged to include 
61.7 	in the Minnesota common course catalogue all district physical education classes and 
61.8 	physical education graduation requirements.
61.9 		Subd. 3.Standards adoption. Notwithstanding Minnesota Statutes, sections 
61.10 	120B.021, subdivision 2, and 120B.023, any statutory criteria required when reviewing or 
61.11 	revising standards and benchmarks, any requirements governing the content of statewide 
61.12 	standards, and any other law to the contrary, the commissioner of education shall initially 
61.13 	adopt the most recent standards developed by the National Association for Sport and 
61.14 	Physical Education for physical education in kindergarten through grade 12.

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

61.16 	Sec. 39. HEALTHY KIDS AWARDS PROGRAM.
 61.17 		Subdivision 1.Recognition. The healthy kids awards program rewards kindergarten 
61.18 	through grade 12 students for their nutritional well-being and physical activity. In addition 
61.19 	to the physical and nutritional education students receive in physical education classes, 
61.20 	the program is intended to integrate physical activity and nutritional education into 
61.21 	nonphysical education classes, recess, and extracurricular activities throughout the day. 
61.22 	Interested schools must agree to participate from October through May of each school year.
61.23 		Subd. 2.School district participation. School districts annually by September 
61.24 	15 may submit to the commissioner of education a letter of intent to participate in a 
61.25 	healthy kids awards program from October to May during the current school year. The 
61.26 	commissioner must recognize on the school performance report card under Minnesota 
61.27 	Statutes, section 120B.36, those schools and districts that affirm to the commissioner, as 
61.28 	prescribed by the commissioner, that at least 75 percent of students in the school or district 
61.29 	are physically active for at least 60 minutes each school day. The time students spend 
61.30 	participating in a physical education class counts toward the daily 60-minute requirement.

61.31 	EFFECTIVE DATE. This section is effective the day following final enactment 
61.32 	and applies beginning in the 2010-2011 school year and later.

62.1 	Sec. 40. ADVISORY TASK FORCE ON SCHOOL DESEGREGATION AND 
62.2 	INTEGRATION.
 62.3 		Subdivision 1.Establishment; purpose; membership. (a) An advisory task force 
62.4 	on school desegregation and integration is established to develop recommendations and 
62.5 	legislation for the legislature on: (i) addressing the findings and recommendations in the 
62.6 	2005 Minnesota legislative auditor's report on school district integration revenue, (ii) 
62.7 	amending Minnesota's school desegregation rule, and (iii) specifying the purpose, use, and 
62.8 	allocation of integration revenue under Minnesota Statutes, section 124D.86. The task 
62.9 	force shall consist of education stakeholders interested in addressing school desegregation 
62.10 	and integration policies, integration revenue uses, and the academic achievement gap 
62.11 	among groups of students. The 17-member task force consists of the commissioner of 
62.12 	education or the commissioner's designee and the following:
62.13 	(1) one member appointed by and serving at the pleasure of the Minnesota Indian 
62.14 	Affairs Council;
62.15 	(2) one member appointed by and serving at the pleasure of the Council on 
62.16 	Asian-Pacific Minnesotans;
62.17 	(3) one member appointed by and serving at the pleasure of the Council on Black 
62.18 	Minnesotans;
62.19 	(4) one member appointed by and serving at the pleasure of the Chicano Latino 
62.20 	Affairs Council;
62.21 	(5) three public members appointed by the speaker of the house who are currently 
62.22 	serving as school district superintendents, collaborative coordinators, or school board 
62.23 	members, with one public member from each of the following: an urban school district, a 
62.24 	suburban school district, and a rural school district, and where at least one of the three 
62.25 	public members is also from a metropolitan integration district;
62.26 	(6) four current members of the house of representatives appointed by the speaker 
62.27 	of the house, with two from each political party, and where two members are from the 
62.28 	seven-county metropolitan area and two members are from rural Minnesota;
62.29 	(7) three public members appointed by the senate Subcommittee on Committees of 
62.30 	the Committee on Rules and Administration who are currently serving as school district 
62.31 	superintendents, collaborative coordinators, or school board members, with one public 
62.32 	member from each of the following: an urban school district, a suburban school district, 
62.33 	and a rural school district, and where at least one of the three public members is also from 
62.34 	a rural integration collaborative district; and
62.35 	(8) two current members of the senate appointed by the senate Subcommittee on 
62.36 	Committees of the Committee on Rules and Administration, with one from each political 
63.1 	party, and where one member is from the seven-county metropolitan area and the second 
63.2 	member is from rural Minnesota.
63.3 	(b) Task force members shall be appointed by July 1, 2010. Task force members 
63.4 	shall be represented by the designated appointee of each named organization. The task 
63.5 	force shall seek input from nonmember organizations such as the Institute on Race and 
63.6 	Poverty, the Minneapolis Urban League, the Minnesota Minority Education Partnership, 
63.7 	the National Association for the Advancement of Colored People, and the Office of the 
63.8 	State Demographer, among other organizations whose expertise can help inform the 
63.9 	work of the task force.
63.10 	(c) The commissioner of education shall convene the first meeting of the task force 
63.11 	by September 15, 2010. Task force members shall elect one member to serve as the 
63.12 	task force chair. The task force may invite representatives of other interested education 
63.13 	stakeholders and organizations to participate in task force meetings. The task force must 
63.14 	meet at least monthly.
63.15 	(d) Upon request, the commissioner of education shall provide assistance to the 
63.16 	task force.
63.17 	(e) Task force members do not receive compensation or reimbursement of expenses 
63.18 	from the task force for service on the task force.
63.19 		Subd. 2.Duties; report. (a) The task force shall develop recommendations and 
63.20 	legislation for addressing the findings and recommendations in the 2005 Minnesota 
63.21 	legislative auditor's report on school district integration revenue, amending Minnesota's 
63.22 	school desegregation rule, and Minnesota Statutes, section 124D.86, governing the use 
63.23 	and allocation of integration revenue. These recommendations and legislation may 
63.24 	address but are not limited to:
63.25 	(1) access to integrated and equitable learning environments that enhance 
63.26 	achievement and opportunities for all students;
63.27 	(2) changing demographics among Minnesota students reflected in the increasing 
63.28 	numbers of students of color, new immigrants, and English language learners;
63.29 	(3) cultural proficiency training for teachers;
63.30 	(4) the impact of school choice laws on state and local school desegregation and 
63.31 	integration efforts; and
63.32 	(5) financial and other resources that enable schools and school districts to provide 
63.33 	staff development training, magnet schools, and other interdistrict collaborative initiatives 
63.34 	that enhance student achievement.
63.35 	(b) By January 15, 2011, the task force shall submit to the legislative committees 
63.36 	and divisions with jurisdiction over early childhood through grade 12 education policy 
64.1 	and finance a report and accompanying legislation that reflect the substance of the 
64.2 	recommendation of the task force.
64.3 		Subd. 3.Expiration. The task force expires on January 16, 2011.

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

64.5 	Sec. 41. ASSESSMENT ADVISORY COMMITTEE; RECOMMENDATIONS.
 64.6 	(a) The Assessment Advisory Committee must develop recommendations for 
64.7 	alternative methods by which students satisfy the high school algebra end-of-course 
64.8 	requirements under Minnesota Statutes, section 120B.30, subdivision 1b, paragraph (b), 
64.9 	clause (9), and demonstrate their college and career readiness. The Assessment Advisory 
64.10 	Committee, among other alternative methods and if consistent with federal educational 
64.11 	accountability law, must consider allowing students to:
64.12 	(1) achieve the mathematics college readiness score on the American College Test 
64.13 	(ACT) or Scholastic Aptitude Test (SAT) exam;
64.14 	(2) achieve a college-credit score on a College-Level Examination Program (CLEP) 
64.15 	for algebra;
64.16 	(3) achieve a score on an equivalent Advanced Placement or International 
64.17 	Baccalaureate exam that would earn credit at a four-year college or university; or
64.18 	(4) pass a credit-bearing course in college algebra or a more advanced course in that 
64.19 	subject with a grade of C or better under Minnesota Statutes, section 124D.09, including 
64.20 	Minnesota Statutes, section 124D.09, subdivision 10.
64.21 	(b) The Assessment Advisory Committee, in the context of the high school algebra 
64.22 	end-of-course assessment under Minnesota Statutes, section 120B.30, subdivision 1b, may 
64.23 	develop recommendations on integrating universal design principles to improve access 
64.24 	to learning and assessments for all students, more accurately understand what students 
64.25 	know and can do, provide Minnesota with more cost-effective assessments, and provide 
64.26 	educators with more valid inferences about students' achievement levels.
64.27 	(c) The Assessment Advisory Committee, for purposes of fully implementing the 
64.28 	high school algebra end-of-course assessment under Minnesota Statutes, section 120B.30, 
64.29 	subdivision 1b, also must develop recommendations for:
64.30 	(1) calculating the alignment index, including how questions about validity and 
64.31 	reliability are resolved; and
64.32 	(2) defining "misaligned" and "highly misaligned" and when and under what specific 
64.33 	circumstances misalignments occur.
65.1 	(d) By February 15, 2011, the Assessment Advisory Committee must submit its 
65.2 	recommendations under this section to the education commissioner and the education 
65.3 	policy and finance committees of the legislature.
65.4 	(e) The commissioner must not implement any element of any recommendation 
65.5 	under paragraphs (a) to (d) related to the high school algebra end-of-course assessment 
65.6 	under Minnesota Statutes, section 120B.30, subdivision 1b, without first receiving specific 
65.7 	legislative authority to do so.

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

65.9 	Sec. 42. PERSISTENTLY LOWEST-ACHIEVING SCHOOL DESIGNATION; 
65.10 	FEDERAL SCHOOL IMPROVEMENT GRANTS.
 65.11 	For purposes of federal school improvement grants under the American Recovery 
65.12 	and Reinvestment Act, and unless the chief administrator of a school voluntarily agrees to 
65.13 	the designation in writing, the department must not use a school's high school graduation 
65.14 	rate as a basis to designate a high school chartered under Minnesota Statutes, section 
65.15 	124D.10, or an alternative learning program established under Minnesota Statutes, section 
65.16 	123A.05, to serve and reengage students who were expelled, dropped out, or are otherwise 
65.17 	not enrolled in school, among other students, as a persistently lowest-achieving school 
65.18 	if on December 15 at least 70 percent of the students who, at the time they enroll in the 
65.19 	school, are two or more years older than the average statewide age of other students 
65.20 	enrolled in the same grade, lack a sufficient number of high school credits to graduate on 
65.21 	time, or are otherwise eligible to participate in the graduation incentives program under 
65.22 	Minnesota Statutes, section 124D.68.

65.23 	EFFECTIVE DATE. This section is effective the day following final enactment 
65.24 	and applies retroactively from January 1, 2010.

65.25 	Sec. 43. REPEALER.
 65.26 	Minnesota Statutes 2008, section 122A.24, is repealed.

65.27 	EFFECTIVE DATE. This section is effective August 1, 2010.

65.28 	ARTICLE 3
65.29 	SPECIAL PROGRAMS

65.30 	Section 1. Minnesota Statutes 2009 Supplement, section 125A.02, subdivision 1, 
65.31 	is amended to read:
66.1 		Subdivision 1.Child with a disability. "Child with a disability" means a child 
66.2 	identified under federal and state special education law as having a hearing impairment, 
66.3 	blindness, visual disability, deaf or hard-of-hearing, blind or visually impaired, deafblind, 
66.4 	or having a speech or language impairment, a physical disability impairment, other health 
66.5 	impairment disability, mental developmental cognitive disability, emotional/behavioral an 
66.6 	emotional or behavioral disorder, specific learning disability, autism spectrum disorder, 
66.7 	traumatic brain injury, or severe multiple disabilities impairments, or deafblind disability
66.8 	and who needs special education and related services, as determined by the rules of the 
66.9 	commissioner, is a child with a disability. A licensed physician, an advanced practice 
66.10 	nurse, or a licensed psychologist is qualified to make a diagnosis and determination 
66.11 	of attention deficit disorder or attention deficit hyperactivity disorder for purposes of 
66.12 	identifying a child with a disability.

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

66.14 	Sec. 2. Minnesota Statutes 2008, section 125A.03, is amended to read:
66.15 	125A.03 SPECIAL INSTRUCTION FOR CHILDREN WITH A DISABILITY.
66.16 	(a) As defined Except as provided in paragraph (b), every district must provide or 
66.17 	make available special instruction education and related services, either within the district 
66.18 	or in another district, for all children every child with a disability, including providing 
66.19 	required services under Code of Federal Regulations, title 34, section 300.121, paragraph 
66.20 	(d), to those children suspended or expelled from school for more than ten school days 
66.21 	in that school year, who are residents is a resident of the district and who are disabled as 
66.22 	set forth in section 125A.02 from birth until that child becomes 21 years old or receives 
66.23 	a regular high school diploma, whichever comes first. For purposes of state and federal 
66.24 	special education laws, The phrase "special instruction education and related services" 
66.25 	in the state Education Code means a free and appropriate public education provided to an 
66.26 	eligible child with disabilities and includes special education and related services defined 
66.27 	in the Individuals with Disabilities Education Act, subpart A, section 300.24 a disability.  
66.28 	(b) Notwithstanding any age limits in laws to the contrary, special instruction and 
66.29 	services must be provided from birth until July 1 after the child with a disability becomes 
66.30 	21 years old but shall not extend beyond secondary school or its equivalent, except as 
66.31 	provided in section 124D.68, subdivision 2. If a child with a disability becomes 21 years 
66.32 	old during the school year, the district shall continue to make available special education 
66.33 	and related services until the last day of the school year, or until the day the child receives 
66.34 	a regular high school diploma, whichever comes first.
67.1 	(c) For purposes of this section and section 121A.41, subdivision 7, paragraph (a), 
67.2 	clause (2), "school year" means the days of student instruction designated by the school 
67.3 	board as the regular school year in the annual calendar adopted under section 120A.41.
67.4 	(d) A district shall identify, locate, and evaluate children with a disability in the 
67.5 	district who are in need of special education and related services. Local health, education, 
67.6 	and social service agencies must refer children under age five who are known to need or 
67.7 	suspected of needing special instruction education and related services to the school 
67.8 	district. Districts with less than the minimum number of eligible children with a disability 
67.9 	as determined by the commissioner must cooperate with other districts to maintain a full 
67.10 	range of programs for education and services for children with a disability. This section 
67.11 	does not alter the compulsory attendance requirements of section 120A.22.

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

67.13 	Sec. 3. [125A.031] RESOLVING DISPUTES AMONG DISTRICTS.
67.14 	If districts dispute which district is responsible for providing or making available 
67.15 	special education and related services to a child with a disability who is not currently 
67.16 	enrolled in a district because the child's district of residence is disputed, the district in 
67.17 	which that child first tries to enroll shall provide or make available special education 
67.18 	and related services to the child until the commissioner is notified and expeditiously 
67.19 	resolves the dispute. For purposes of this section, "district" means a school district or a 
67.20 	charter school.

67.21 	Sec. 4. Minnesota Statutes 2009 Supplement, section 125A.091, subdivision 7, is 
67.22 	amended to read:
67.23 		Subd. 7.Conciliation conference. A parent must have an opportunity to meet with 
67.24 	appropriate district staff in at least one conciliation conference if the parent objects to 
67.25 	any proposal of which the parent receives notice under subdivision 3a. A district must 
67.26 	offer to hold a conciliation conference within two business days after receiving a parent's 
67.27 	objection to a proposal or refusal in the prior written notice. The district must hold the 
67.28 	conciliation conference within ten calendar days from the date the district receives a the
67.29 	parent's objection to a proposal or refusal in the prior written notice. Except as provided 
67.30 	in this section, all discussions held during a conciliation conference are confidential 
67.31 	and are not admissible in a due process hearing. Within five school days after the final 
67.32 	conciliation conference, the district must prepare and provide to the parent a conciliation 
67.33 	conference memorandum that describes the district's final proposed offer of service. This 
67.34 	memorandum is admissible in evidence in any subsequent proceeding.

68.1 	EFFECTIVE DATE. This section is effective the day following final enactment 
68.2 	and applies to all conciliation conferences required after that date.

68.3 	Sec. 5. Minnesota Statutes 2008, section 125A.21, subdivision 2, is amended to read:
68.4 		Subd. 2.Third party reimbursement. (a) Beginning July 1, 2000, districts shall 
68.5 	seek reimbursement from insurers and similar third parties for the cost of services 
68.6 	provided by the district whenever the services provided by the district are otherwise 
68.7 	covered by the child's health coverage. Districts shall request, but may not require, the 
68.8 	child's family to provide information about the child's health coverage when a child with a 
68.9 	disability begins to receive services from the district of a type that may be reimbursable, 
68.10 	and shall request, but may not require, updated information after that as needed.
68.11 	(b) For children enrolled in medical assistance under chapter 256B or MinnesotaCare 
68.12 	under chapter 256L who have no other health coverage, a district shall provide an initial 
68.13 	written notice to the enrolled child's parent or legal representative of its intent to seek 
68.14 	reimbursement from medical assistance or MinnesotaCare for the individual education 
68.15 	plan health-related services provided by the district. The notice shall include:
68.16 	(1) the right of the parent or legal representative to request a copy of all records 
68.17 	concerning individualized education program health-related services disclosed by the 
68.18 	district to any third party; 
68.19 	(2) the right of the parent or legal representative to withdraw consent for disclosing a 
68.20 	child's records at any time without consequence, including consent that was initially 
68.21 	given as part of the application process for MinnesotaCare or medical assistance under 
68.22 	section 256B.08, subdivision 1; and
68.23 	(3) a decision to revoke consent for schools to share information from education 
68.24 	records does not impact a parent's eligibility for MinnesotaCare or medical assistance.
68.25 	(c) The district shall give the parent or legal representative annual written notice of:
68.26 	(1) the district's intent to seek reimbursement from medical assistance or 
68.27 	MinnesotaCare for individual education plan health-related services provided by the 
68.28 	district;
68.29 	(2) the right of the parent or legal representative to request a copy of all records 
68.30 	concerning individual education plan health-related services disclosed by the district to 
68.31 	any third party; and
68.32 	(3) the right of the parent or legal representative to withdraw consent for disclosure 
68.33 	of a child's records at any time without consequence, including consent that was initially 
68.34 	given as part of the application process for MinnesotaCare or medical assistance under 
68.35 	section 256B.08, subdivision 1.
69.1 	The written notice shall be provided as part of the written notice required by Code of 
69.2 	Federal Regulations, title 34, section 300.504.  
69.3 	(d) In order to access the private health care coverage of a child who is covered by 
69.4 	private health care coverage in whole or in part, a district must:
69.5 	(1) obtain annual written informed consent from the parent or legal representative, in 
69.6 	compliance with subdivision 5; and
69.7 	(2) inform the parent or legal representative that a refusal to permit the district 
69.8 	or state Medicaid agency to access their private health care coverage does not relieve 
69.9 	the district of its responsibility to provide all services necessary to provide free and 
69.10 	appropriate public education at no cost to the parent or legal representative.
69.11 	(e) If the commissioner of human services obtains federal approval to exempt 
69.12 	covered individual education plan health-related services from the requirement that private 
69.13 	health care coverage refuse payment before medical assistance may be billed, paragraphs 
69.14 	(b), (c), and (d) shall also apply to students with a combination of private health care 
69.15 	coverage and health care coverage through medical assistance or MinnesotaCare.
69.16 	(f) In the event that Congress or any federal agency or the Minnesota legislature 
69.17 	or any state agency establishes lifetime limits, limits for any health care services, 
69.18 	cost-sharing provisions, or otherwise provides that individual education plan health-related 
69.19 	services impact benefits for persons enrolled in medical assistance or MinnesotaCare, the 
69.20 	amendments to this subdivision adopted in 2002 are repealed on the effective date of any 
69.21 	federal or state law or regulation that imposes the limits. In that event, districts must 
69.22 	obtain informed consent consistent with this subdivision as it existed prior to the 2002 
69.23 	amendments and subdivision 5, before seeking reimbursement for children enrolled in 
69.24 	medical assistance under chapter 256B or MinnesotaCare under chapter 256L who have 
69.25 	no other health care coverage.

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

69.27 	Sec. 6. Minnesota Statutes 2008, section 125A.21, subdivision 3, is amended to read:
69.28 		Subd. 3.Use of reimbursements. Of the reimbursements received, districts may:
69.29 	(1) retain an amount sufficient to compensate the district for its administrative costs 
69.30 	of obtaining reimbursements;
69.31 	(2) regularly obtain from education- and health-related entities training and other 
69.32 	appropriate technical assistance designed to improve the district's ability to determine 
69.33 	which services are reimbursable and to seek timely reimbursement in a cost-effective 
69.34 	manner access third-party payments for individualized education program health-related 
69.35 	services; or
70.1 	(3) reallocate reimbursements for the benefit of students with special needs
70.2 	individualized education programs or individual family service plans in the district.

70.3 	Sec. 7. Minnesota Statutes 2008, section 125A.21, subdivision 5, is amended to read:
70.4 		Subd. 5.Informed consent. When obtaining informed consent, consistent with 
70.5 	sections 13.05, subdivision 4, paragraph (d); and,256B.77, subdivision 2, paragraph 
70.6 	(p), and Code of Federal Regulations, title 34, parts 99 and 300, to bill health plans for 
70.7 	covered services, the school district must notify the legal representative (1) that the cost of 
70.8 	the person's private health insurance premium may increase due to providing the covered 
70.9 	service in the school setting, (2) that the school district may pay certain enrollee health 
70.10 	plan costs, including but not limited to, co-payments, coinsurance, deductibles, premium 
70.11 	increases or other enrollee cost-sharing amounts for health and related services required 
70.12 	by an individual service plan, or individual family service plan, and (3) that the school's 
70.13 	billing for each type of covered service may affect service limits and prior authorization 
70.14 	thresholds. The informed consent may be revoked in writing at any time by the person 
70.15 	authorizing the billing of the health plan.  

70.16 	Sec. 8. Minnesota Statutes 2008, section 125A.21, subdivision 7, is amended to read:
70.17 		Subd. 7.District disclosure of information. A school district may disclose 
70.18 	information contained in a student's individual education plan, consistent with section 
70.19 	13.32, subdivision 3, paragraph (a), and Code of Federal Regulations, title 34, part 99;
70.20 	including records of the student's diagnosis and treatment, to a health plan company only 
70.21 	with the signed and dated consent of the student's parent, or other legally authorized 
70.22 	individual. The school district shall disclose only that information necessary for the health 
70.23 	plan company to decide matters of coverage and payment. A health plan company may 
70.24 	use the information only for making decisions regarding coverage and payment, and for 
70.25 	any other use permitted by law.  

70.26 	Sec. 9. Minnesota Statutes 2008, section 125A.515, is amended by adding a 
70.27 	subdivision to read:
70.28 		Subd. 3a.Students without a disability from other states.  A school district need 
70.29 	not provide education services under this section to an out-of-state student without an 
70.30 	individualized education program who lacks a tuition agreement or other agreement by the 
70.31 	placing authority to pay for the services.

70.32 	EFFECTIVE DATE. This section is effective July 1, 2010, for fiscal years 2011 
70.33 	and later.

71.1 	Sec. 10. Minnesota Statutes 2009 Supplement, section 125A.63, subdivision 2, is 
71.2 	amended to read:
71.3 		Subd. 2.Programs. The Department of Education, through the resource centers 
71.4 	must offer summer institutes or other training programs and other educational strategies
71.5 	throughout the state for deaf or hard-of-hearing, blind or visually impaired, and multiply 
71.6 	disabled pupils. The resource centers must also offer workshops for teachers, and 
71.7 	leadership development for teachers.
71.8 	A program offered through the resource centers must promote and develop education 
71.9 	programs offered by school districts or other organizations. The program must assist 
71.10 	school districts or other organizations to develop innovative programs.

71.11 	Sec. 11. Minnesota Statutes 2009 Supplement, section 125A.63, subdivision 4, is 
71.12 	amended to read:
71.13 		Subd. 4.Advisory committees. (a) The commissioner shall establish an 
71.14 	advisory committee for each resource center. The advisory committees shall develop 
71.15 	recommendations regarding the resource centers and submit an annual report to the 
71.16 	commissioner on the form and in the manner prescribed by the commissioner.
71.17 	(b) The advisory committee for the Resource Center for the Deaf and Hard of 
71.18 	Hearing shall meet periodically at least four times per year and submit an annual report 
71.19 	to the commissioner, the education policy and finance committees of the legislature, 
71.20 	and the Commission of Deaf, DeafBlind, and Hard of Hearing Minnesotans. The report 
71.21 	must, at least:
71.22 	(1) identify and report the aggregate, data-based education outcomes for children 
71.23 	with the primary disability classification of deaf and hard of hearing, consistent with 
71.24 	the commissioner's child count reporting practices, the commissioner's state and local 
71.25 	outcome data reporting system by district and region, and the school performance report 
71.26 	cards under section 120B.36, subdivision 1, and relevant IDEA Parts B and C mandated 
71.27 	reporting data; and
71.28 	(2) describe the implementation of a data-based plan for improving the education 
71.29 	outcomes of deaf and hard of hearing children that is premised on evidence-based best 
71.30 	practices, and provide a cost estimate for ongoing implementation of the plan.; and
71.31 	(3) include the recommendations for improving the developmental outcomes of 
71.32 	children birth to age 3 and the data underlying those recommendations that the coordinator 
71.33 	identifies under subdivision 5.

72.1 	Sec. 12. Minnesota Statutes 2009 Supplement, section 125A.63, subdivision 5, is 
72.2 	amended to read:
72.3 		Subd. 5.Statewide hearing loss early education intervention coordinator. (a) 
72.4 	The coordinator shall:
72.5 	(1) collaborate with the early hearing detection and intervention coordinator for the 
72.6 	Department of Health, the director of the Department of Education Resource Center for 
72.7 	Deaf and Hard-of-Hearing, and the Department of Health Early Hearing Detection and 
72.8 	Intervention Advisory Council;
72.9 	(2) coordinate and support Department of Education early hearing detection and 
72.10 	intervention teams;
72.11 	(3) leverage resources by serving as a liaison between interagency early intervention 
72.12 	committees; part C coordinators from the Departments of Education, Health, and 
72.13 	Human Services; Department of Education regional low-incidence facilitators; service 
72.14 	coordinators from school districts; Minnesota children with special health needs in the 
72.15 	Department of Health; public health nurses; child find; Department of Human Services 
72.16 	Deaf and Hard-of-Hearing Services Division; and others as appropriate;
72.17 	(4) identify, support, and promote culturally appropriate and evidence-based early 
72.18 	intervention practices for infants with hearing loss, and provide training, outreach, and use 
72.19 	of technology to increase consistency in statewide service provision;
72.20 	(5) identify culturally appropriate specialized reliable and valid instruments to assess 
72.21 	and track the progress of children with hearing loss and promote their use;
72.22 	(6) ensure that early childhood providers, parents, and members of the individual 
72.23 	family service and intervention plan are provided with child progress data resulting from 
72.24 	specialized assessments;
72.25 	(7) educate early childhood providers and teachers of the deaf and hard-of-hearing 
72.26 	to use developmental data from specialized assessments to plan and adjust individual 
72.27 	family service plans; and
72.28 	(8) make recommendations that would improve educational outcomes to the early 
72.29 	hearing detection and intervention committee, the commissioners of education and health, 
72.30 	the Commission of Deaf, DeafBlind and Hard-of-Hearing Minnesotans, and the advisory 
72.31 	council of the Minnesota Department of Education Resource Center for the Deaf and 
72.32 	Hard-of-Hearing.
72.33 	(b) The Department of Education must provide aggregate data regarding outcomes 
72.34 	of deaf and hard-of-hearing children with hearing loss who receive early intervention 
72.35 	services within the state in accordance with the state performance plan.

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

73.1 	Sec. 13. Minnesota Statutes 2008, section 125A.69, subdivision 1, is amended to read:
73.2 		Subdivision 1.Two kinds Admissions. There are two kinds of Admission to the 
73.3 	Minnesota State Academies is described in this section.
73.4 	(a) A pupil who is deaf, hard of hearing, or blind-deaf, may be admitted to the 
73.5 	Academy for the Deaf. A pupil who is blind or visually impaired, blind-deaf, or multiply 
73.6 	disabled may be admitted to the Academy for the Blind. For a pupil to be admitted, two 
73.7 	decisions must be made under sections 125A.03 to 125A.24 and 125A.65. 
73.8 	(1) It must be decided by the individual education planning team that education in 
73.9 	regular or special education classes in the pupil's district of residence cannot be achieved 
73.10 	satisfactorily because of the nature and severity of the deafness or blindness or visual 
73.11 	impairment respectively.
73.12 	(2) It must be decided by the individual education planning team that the academy 
73.13 	provides the most appropriate placement within the least restrictive alternative for the 
73.14 	pupil.
73.15 	(b) A deaf or hard of hearing child or a visually impaired pupil may be admitted to 
73.16 	get socialization skills or on a short-term basis for skills development.
73.17 	(c) A parent of a child who resides in Minnesota and who meets the disability criteria 
73.18 	for being deaf or hard-of-hearing, blind or visually impaired, or multiply disabled may 
73.19 	apply to place the child in the Minnesota State Academies. Academy staff must review 
73.20 	the application to determine whether the Minnesota State Academies is an appropriate 
73.21 	placement for the child. If academy staff determine that the Minnesota State Academies 
73.22 	is an appropriate placement, the staff must invite the individualized education program 
73.23 	team at the child's resident school district to participate in a meeting to arrange a trial 
73.24 	placement of between 60 and 90 calendar days at the Minnesota State Academies. If 
73.25 	the child's parent consents to the trial placement, the Minnesota State Academies is the 
73.26 	responsible serving school district and incur all due process obligations under law and the 
73.27 	child's resident school district is responsible for any transportation included in the child's 
73.28 	individualized education program during the trial placement. Before the trial placement 
73.29 	ends, academy staff must convene an individualized education program team meeting to 
73.30 	determine whether to continue the child's placement at the Minnesota State Academies or 
73.31 	that another placement is appropriate. If the individualized education program team and 
73.32 	the parent are unable to agree on the child's placement, the child's placement reverts to the 
73.33 	placement in the child's individualized education program that immediately preceded the 
73.34 	trial placement. If the parent and individualized education program team agree to continue 
73.35 	the placement beyond the trial period, the transportation and due process responsibilities 
73.36 	are the same as those described for the trial placement under this paragraph.

74.1 	EFFECTIVE DATE. This section is effective for the 2010-2011 school year and 
74.2 	later.

74.3 	Sec. 14. Minnesota Statutes 2009 Supplement, section 256B.0625, subdivision 26, 
74.4 	is amended to read:
74.5 		Subd. 26.Special education services. (a) Medical assistance covers medical 
74.6 	services identified in a recipient's individualized education plan and covered under the 
74.7 	medical assistance state plan. Covered services include occupational therapy, physical 
74.8 	therapy, speech-language therapy, clinical psychological services, nursing services, 
74.9 	school psychological services, school social work services, personal care assistants 
74.10 	serving as management aides, assistive technology devices, transportation services, 
74.11 	health assessments, and other services covered under the medical assistance state plan. 
74.12 	Mental health services eligible for medical assistance reimbursement must be provided or 
74.13 	coordinated through a children's mental health collaborative where a collaborative exists if 
74.14 	the child is included in the collaborative operational target population. The provision or 
74.15 	coordination of services does not require that the individual education plan be developed 
74.16 	by the collaborative.
74.17 	The services may be provided by a Minnesota school district that is enrolled as a 
74.18 	medical assistance provider or its subcontractor, and only if the services meet all the 
74.19 	requirements otherwise applicable if the service had been provided by a provider other 
74.20 	than a school district, in the following areas: medical necessity, physician's orders, 
74.21 	documentation, personnel qualifications, and prior authorization requirements. The 
74.22 	nonfederal share of costs for services provided under this subdivision is the responsibility 
74.23 	of the local school district as provided in section 125A.74. Services listed in a child's 
74.24 	individual education plan are eligible for medical assistance reimbursement only if those 
74.25 	services meet criteria for federal financial participation under the Medicaid program.
74.26 	(b) Approval of health-related services for inclusion in the individual education plan 
74.27 	does not require prior authorization for purposes of reimbursement under this chapter. 
74.28 	The commissioner may require physician review and approval of the plan not more than 
74.29 	once annually or upon any modification of the individual education plan that reflects a 
74.30 	change in health-related services.
74.31 	(c) Services of a speech-language pathologist provided under this section are covered 
74.32 	notwithstanding Minnesota Rules, part 9505.0390, subpart 1, item L, if the person:
74.33 	(1) holds a masters degree in speech-language pathology;
74.34 	(2) is licensed by the Minnesota Board of Teaching as an educational 
74.35 	speech-language pathologist; and
75.1 	(3) either has a certificate of clinical competence from the American Speech and 
75.2 	Hearing Association, has completed the equivalent educational requirements and work 
75.3 	experience necessary for the certificate or has completed the academic program and is 
75.4 	acquiring supervised work experience to qualify for the certificate.
75.5 	(d) Medical assistance coverage for medically necessary services provided under 
75.6 	other subdivisions in this section may not be denied solely on the basis that the same or 
75.7 	similar services are covered under this subdivision.
75.8 	(e) The commissioner shall develop and implement package rates, bundled rates, or 
75.9 	per diem rates for special education services under which separately covered services are 
75.10 	grouped together and billed as a unit in order to reduce administrative complexity.
75.11 	(f) The commissioner shall develop a cost-based payment structure for payment of 
75.12 	these services. Only costs reported through designated Department of Education data 
75.13 	systems in distinct service categories may be included in the cost-based payment structure. 
75.14 	The commissioner shall reimburse claims submitted based on an interim rate, and shall 
75.15 	settle at a final rate once the department has determined it. The commissioner shall 
75.16 	notify the school district of the final rate. The school district has 60 days to appeal the 
75.17 	final rate. To appeal the final rate, the school district shall file a written appeal request 
75.18 	to the commissioner within 60 days of the date the final rate determination was mailed. 
75.19 	The appeal request shall specify (1) the disputed items and (2) the name and address of 
75.20 	the person to contact regarding the appeal.
75.21 	(g) Effective July 1, 2000, medical assistance services provided under an individual 
75.22 	education plan or an individual family service plan by local school districts shall not count 
75.23 	against medical assistance authorization thresholds for that child.
75.24 	(h) Nursing services as defined in section 148.171, subdivision 15, and provided 
75.25 	as an individual education plan health-related service, are eligible for medical assistance 
75.26 	payment if they are otherwise a covered service under the medical assistance program. 
75.27 	Medical assistance covers the administration of prescription medications by a licensed 
75.28 	nurse who is employed by or under contract with a school district when the administration 
75.29 	of medications is identified in the child's individualized education plan. The simple 
75.30 	administration of medications alone is not covered under medical assistance when 
75.31 	administered by a provider other than a school district or when it is not identified in the 
75.32 	child's individualized education plan.

75.33 	Sec. 15. Laws 2009, chapter 79, article 5, section 60, is amended to read:
75.34 	Sec. 60. Minnesota Statutes 2008, section 256L.05, is amended by adding a 
75.35 	subdivision to read:
76.1 		Subd. 1c.Open enrollment and streamlined application and enrollment 
76.2 	process. (a) The commissioner and local agencies working in partnership must develop a 
76.3 	streamlined and efficient application and enrollment process for medical assistance and 
76.4 	MinnesotaCare enrollees that meets the criteria specified in this subdivision.
76.5 	(b) The commissioners of human services and education shall provide 
76.6 	recommendations to the legislature by January 15, 2010, on the creation of an open 
76.7 	enrollment process for medical assistance and MinnesotaCare that is coordinated with 
76.8 	the public education system. The recommendations must:
76.9 	(1) be developed in consultation with medical assistance and MinnesotaCare 
76.10 	enrollees and representatives from organizations that advocate on behalf of children and 
76.11 	families, low-income persons and minority populations, counties, school administrators 
76.12 	and nurses, health plans, and health care providers;
76.13 	(2) be based on enrollment and renewal procedures best practices, including express 
76.14 	lane eligibility as required under subdivision 1d;
76.15 	(3) simplify the enrollment and renewal processes wherever possible; and
76.16 	(4) establish a process:
76.17 	(i) to disseminate information on medical assistance and MinnesotaCare to all 
76.18 	children in the public education system, including prekindergarten programs; and
76.19 	(ii) for the commissioner of human services to enroll children and other household 
76.20 	members who are eligible.
76.21 	The commissioner of human services in coordination with the commissioner of 
76.22 	education shall implement an open enrollment process by August 1, 2010, to be effective 
76.23 	beginning with the 2010-2011 school year.
76.24 	(c) The commissioner and local agencies shall develop an online application process 
76.25 	for medical assistance and MinnesotaCare.
76.26 	(d) The commissioner shall develop an application that is easily understandable 
76.27 	and does not exceed four pages in length.
76.28 	(e) The commissioner of human services shall present to the legislature, by January 
76.29 	15, 2010, an implementation plan for the open enrollment period and online application 
76.30 	process.
76.31 	(f) To ensure parity between all providers of medical services in the ability to seek 
76.32 	reimbursement from MinnesotaCare or medical assistance, the commissioner of human 
76.33 	services, in consultation with the commissioner of education, shall include on new or 
76.34 	revised enrollment forms consent authorization language for all providers of medical 
76.35 	services to the parent's child or children, including schools, by incorporating language on 
76.36 	the enrollment form that is consistent with federal data practices laws requiring consent 
77.1 	before a school may release information from individual educational records. The consent 
77.2 	language shall include a statement that the medical services providers may share with the 
77.3 	commissioner of human services medical or other information in the possession of the 
77.4 	provider that is necessary for the provider to be reimbursed by MinnesotaCare or medical 
77.5 	assistance. The consent language also shall state that information may be shared from 
77.6 	a child's individual educational records and that the parent may revoke the consent for 
77.7 	schools to share information from educational records at any time. The commissioner 
77.8 	shall include substantially similar consent authorization language on each of its other 
77.9 	enrollment forms as they are scheduled for review, revision, or replacement.

77.10 	EFFECTIVE DATE. This section is effective July 1, 2010, or upon federal 
77.11 	approval, which must be requested by the commissioner, whichever is later.

77.12 	Sec. 16. SPECIAL EDUCATION REPORT.
 77.13 	As the agency charged with administering and enforcing federal and state special 
77.14 	education laws and making special education aid payments, the Department of Education 
77.15 	must identify and report by February 15, 2011, to the committees of the house of 
77.16 	representatives and senate with primary jurisdiction over kindergarten through grade 
77.17 	12 education the specific circumstances under which a school district or other entity, 
77.18 	consistent with federal and state law, must provide special education and related services 
77.19 	to a child with a disability and thereby receives payment for providing the special 
77.20 	education and related services.

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

77.22 	Sec. 17. THIRD-PARTY BILLING.
 77.23 	To allow the cost effective billing of medical assistance for covered services that 
77.24 	are not reimbursed by other legally liable third parties, the commissioner of human 
77.25 	services must:
77.26 	(1) summarize and document school district efforts to secure reimbursement from 
77.27 	legally liable third parties; and
77.28 	(2) request permission from the Centers for Medicare and Medicaid Services to 
77.29 	allow school districts to bill Medicaid alone, without first billing private payers, when:
77.30 	(i) a child has both public and private coverage; and
77.31 	(ii) documentation demonstrates that the private payer involved does not reimburse 
77.32 	for individualized education program health-related services.

78.1 	Sec. 18. REVISOR'S INSTRUCTION.
 78.2 	The revisor of statutes shall substitute the term "individualized education program" 
78.3 	or similar terms for "individual education plan" or similar terms wherever they appear 
78.4 	in Minnesota Statutes and Minnesota Rules referring to the requirements relating to 
78.5 	the federal Individuals with Disabilities Education Act. The revisor shall also make 
78.6 	grammatical changes related to the changes in terms.

78.7 	Sec. 19.  REPEALER.
 78.8 	Minnesota Statutes 2008, section 125A.54, is repealed.

78.9 	ARTICLE 4
78.10 	FACILITIES AND TECHNOLOGY

78.11 	Section 1. Minnesota Statutes 2008, section 123B.57, as amended by Laws 2009 
78.12 	chapter 96, article 4, section 2, is amended to read:
78.13 	123B.57 CAPITAL EXPENDITURE; HEALTH AND SAFETY.
78.14 		Subdivision 1.Health and safety program revenue application. (a) To receive 
78.15 	health and safety revenue for any fiscal year a district must submit to the commissioner 
78.16 	an a capital expenditure health and safety revenue application for aid and levy by the 
78.17 	date determined by the commissioner. The application may be for hazardous substance 
78.18 	removal, fire and life safety code repairs, labor and industry regulated facility and 
78.19 	equipment violations, and health, safety, and environmental management, including 
78.20 	indoor air quality management. The application must include a health and safety program
78.21 	budget adopted and confirmed by the school district board as being consistent with the 
78.22 	district's health and safety policy under subdivision 2. The program budget must include 
78.23 	the estimated cost, per building, of the program per Uniform Financial Accounting and 
78.24 	Reporting Standards (UFARS) finance code, by fiscal year. Upon approval through the 
78.25 	adoption of a resolution by each of an intermediate district's member school district 
78.26 	boards and the approval of the Department of Education, a school district may include 
78.27 	its proportionate share of the costs of health and safety projects for an intermediate 
78.28 	district in its application.
78.29 	(b) Health and safety projects with an estimated cost of $500,000 or more per 
78.30 	site are not eligible for health and safety revenue. Health and safety projects with an 
78.31 	estimated cost of $500,000 or more per site that meet all other requirements for health and 
78.32 	safety funding, are eligible for alternative facilities bonding and levy revenue according 
78.33 	to section 123B.59. A school board shall not separate portions of a single project into 
79.1 	components to qualify for health and safety revenue, and shall not combine unrelated 
79.2 	projects into a single project to qualify for alternative facilities bonding and levy revenue.
79.3 	(c) The commissioner of education shall not make eligibility for health and safety 
79.4 	revenue contingent on a district's compliance status, level of program development, or 
79.5 	training. The commissioner shall not mandate additional performance criteria such as 
79.6 	training, certifications, or compliance evaluations as a prerequisite for levy approval.
79.7 		Subd. 2.Contents of program Health and safety policy. To qualify for health 
79.8 	and safety revenue, a district school board must adopt a health and safety program policy. 
79.9 	The program policy must include plans, where applicable, for hazardous substance 
79.10 	removal, fire and life safety code repairs, regulated facility and equipment violations, 
79.11 	and provisions for implementing a health and safety program that complies with health, 
79.12 	safety, and environmental management, regulations and best practices including indoor 
79.13 	air quality management.
79.14 	(a) A hazardous substance plan must contain provisions for the removal or 
79.15 	encapsulation of asbestos from school buildings or property, asbestos-related repairs, 
79.16 	cleanup and disposal of polychlorinated biphenyls found in school buildings or property, 
79.17 	and cleanup, removal, disposal, and repairs related to storing heating fuel or transportation 
79.18 	fuels such as alcohol, gasoline, fuel, oil, and special fuel, as defined in section 296A.01. 
79.19 	If a district has already developed a plan for the removal or encapsulation of asbestos as 
79.20 	required by the federal Asbestos Hazard Emergency Response Act of 1986, the district 
79.21 	may use a summary of that plan, which includes a description and schedule of response 
79.22 	actions, for purposes of this section. The plan must also contain provisions to make 
79.23 	modifications to existing facilities and equipment necessary to limit personal exposure 
79.24 	to hazardous substances, as regulated by the federal Occupational Safety and Health 
79.25 	Administration under Code of Federal Regulations, title 29, part 1910, subpart Z; or is 
79.26 	determined by the commissioner to present a significant risk to district staff or student 
79.27 	health and safety as a result of foreseeable use, handling, accidental spill, exposure, or 
79.28 	contamination. 
79.29 	(b) A fire and life safety plan must contain a description of the current fire and life 
79.30 	safety code violations, a plan for the removal or repair of the fire and life safety hazard, 
79.31 	and a description of safety preparation and awareness procedures to be followed until the 
79.32 	hazard is fully corrected.
79.33 	(c) A facilities and equipment violation plan must contain provisions to correct 
79.34 	health and safety hazards as provided in Department of Labor and Industry standards 
79.35 	pursuant to section 182.655. 
80.1 	(d) A health, safety, and environmental management plan must contain a description 
80.2 	of training, record keeping, hazard assessment, and program management as defined 
80.3 	in section 123B.56. 
80.4 	(e) A plan to test for and mitigate radon produced hazards.
80.5 	(f) A plan to monitor and improve indoor air quality.
80.6 		Subd. 3.Health and safety revenue. A district's health and safety revenue 
80.7 	for a fiscal year equals the district's alternative facilities levy under section 123B.59, 
80.8 	subdivision 5, paragraph (b), plus the greater of zero or:
80.9 	(1) the sum of (a) the total approved cost of the district's hazardous substance 
80.10 	plan for fiscal years 1985 through 1989, plus (b) the total approved cost of the district's 
80.11 	health and safety program for fiscal year 1990 through the fiscal year to which the levy 
80.12 	is attributable, excluding expenditures funded with bonds issued under section 123B.59 
80.13 	or 123B.62, or chapter 475; certificates of indebtedness or capital notes under section 
80.14 	123B.61; levies under section 123B.58, 123B.59, 123B.63, or 126C.40, subdivision 1 or 
80.15 	6; and other federal, state, or local revenues, minus 
80.16 	(2) the sum of (a) the district's total hazardous substance aid and levy for fiscal years 
80.17 	1985 through 1989 under sections 124.245 and 275.125, subdivision 11c, plus (b) the 
80.18 	district's health and safety revenue under this subdivision, for years before the fiscal year 
80.19 	to which the levy is attributable. 
80.20 		Subd. 4.Health and safety levy. To receive health and safety revenue, a district 
80.21 	may levy an amount equal to the district's health and safety revenue as defined in 
80.22 	subdivision 3 multiplied by the lesser of one, or the ratio of the quotient derived by 
80.23 	dividing the adjusted net tax capacity of the district for the year preceding the year the 
80.24 	levy is certified by the adjusted marginal cost pupil units in the district for the school year 
80.25 	to which the levy is attributable, to $2,935.
80.26 		Subd. 5.Health and safety aid. A district's health and safety aid is the difference 
80.27 	between its health and safety revenue and its health and safety levy. If a district does not 
80.28 	levy the entire amount permitted, health and safety aid must be reduced in proportion to 
80.29 	the actual amount levied. Health and safety aid may not be reduced as a result of reducing 
80.30 	a district's health and safety levy according to section 123B.79. 
80.31 		Subd. 6.Uses of health and safety revenue. (a) Health and safety revenue may 
80.32 	be used only for approved expenditures necessary to correct fire and life safety hazards, 
80.33 	or for the; design, purchase, installation, maintenance, and inspection of fire protection 
80.34 	and alarm equipment; purchase or construction of appropriate facilities for the storage of 
80.35 	combustible and flammable materials; inventories and facility modifications not related 
80.36 	to a remodeling project to comply with lab safety requirements under section 121A.31; 
81.1 	inspection, testing, repair, removal or encapsulation, and disposal of asbestos from school 
81.2 	buildings or property owned or being acquired by the district, asbestos-related repairs,
81.3 	asbestos-containing building materials; cleanup and disposal of polychlorinated biphenyls 
81.4 	found in school buildings or property owned or being acquired by the district, or the; 
81.5 	cleanup and disposal of hazardous and infectious wastes; cleanup, removal, disposal, and 
81.6 	repairs related to storing heating fuel or transportation fuels such as alcohol, gasoline, fuel 
81.7 	oil, and special fuel, as defined in section 296A.01, Minnesota; correction of occupational 
81.8 	safety and health administration regulated facility and equipment hazards,; indoor air 
81.9 	quality inspections, investigations, and testing; mold abatement,; upgrades or replacement 
81.10 	of mechanical ventilation systems to meet American Society of Heating, Refrigerating 
81.11 	and Air Conditioning Engineers standards and State Mechanical Code,; design, materials, 
81.12 	and installation of local exhaust ventilation systems, including required make up air for 
81.13 	controlling regulated hazardous substances; correction of Department of Health Food 
81.14 	Code and violations; correction of swimming pool hazards excluding depth correction,; 
81.15 	playground safety inspections and the installation of impact surfacing materials; bleacher 
81.16 	repair or rebuilding to comply with the order of a building code inspector under section 
81.17 	326B.112; testing and mitigation of elevated radon hazards; lead in water, paint, soil, 
81.18 	and toys testing; copper in water testing; cleanup after major weather-related disasters 
81.19 	or flooding; reduction of excessive organic and inorganic levels in wells and well 
81.20 	capping of abandoned wells; installation and testing of boiler backflow valves to prevent 
81.21 	contamination of potable water; vaccinations, titers, and preventative supplies for 
81.22 	bloodborne pathogen compliance; costs to comply with the Janet B. Johnson Parents' 
81.23 	Right To Know Act; and health, safety, and environmental management costs associated 
81.24 	with implementing the district's health and safety program including costs to establish 
81.25 	and operate safety committees, in school buildings or property owned or being acquired 
81.26 	by the district. Testing and calibration activities are permitted for existing mechanical 
81.27 	ventilation systems at intervals no less than every five years. Health and safety revenue 
81.28 	must not be used to finance a lease purchase agreement, installment purchase agreement, 
81.29 	or other deferred payments agreement. Health and safety revenue must not be used for 
81.30 	the construction of new facilities or the purchase of portable classrooms, for interest or 
81.31 	other financing expenses, or for energy efficiency projects under section 123B.65. The 
81.32 	revenue may not be used for a building or property or part of a building or property used 
81.33 	for postsecondary instruction or administration or for a purpose unrelated to elementary 
81.34 	and secondary education.
81.35 		Subd. 6a.Restrictions on health and safety revenue. (b) Notwithstanding 
81.36 	paragraph (a) subdivision 6, health and safety revenue must not be used to finance a 
82.1 	lease purchase agreement, installment purchase agreement, or other deferred payments 
82.2 	agreement, for the construction of new facilities, remodeling of existing facilities, or 
82.3 	the purchase of portable classrooms, for interest or other financing expenses, or for 
82.4 	energy efficiency projects under section 123B.65, for a building or property or part of a 
82.5 	building or property used for postsecondary instruction or administration or for a purpose 
82.6 	unrelated to elementary and secondary education, for replacement of building materials 
82.7 	or facilities including roof, walls, windows, internal fixtures and flooring, nonhealth and 
82.8 	safety costs associated with demolition of facilities, structural repair or replacement of 
82.9 	facilities due to unsafe conditions, violence prevention and facility security, ergonomics, 
82.10 	or for building and heating, ventilating and air conditioning supplies, maintenance, and 
82.11 	cleaning activities. All assessments, investigations, inventories, and support equipment 
82.12 	not leading to the engineering or construction of a project shall be included in the health, 
82.13 	safety, and environmental management costs in subdivision 8, paragraph (a).
82.14 		Subd. 6b.Health and safety projects. (a) Health and safety revenue applications 
82.15 	defined in subdivision 1 must be accompanied by a description of each project for which 
82.16 	funding is being requested. Project descriptions must provide enough detail for an auditor 
82.17 	to determine if the work qualifies for revenue. For projects other than fire and life 
82.18 	safety projects, playground projects, and health, safety, and environmental management 
82.19 	activities, a project description does not need to include itemized details such as material 
82.20 	types, room locations, square feet, names, or license numbers. The commissioner shall 
82.21 	approve only projects that comply with subdivisions 6 and 8, as defined by the Department 
82.22 	of Education.
82.23 	(b) Districts may request funding for allowable projects based on self-assessments, 
82.24 	safety committee recommendations, insurance inspections, management assistance 
82.25 	reports, fire marshal orders, or other mandates. Notwithstanding subdivision 1, paragraph 
82.26 	(b), and subdivision 8, paragraph (b), for projects under $500,000, individual project 
82.27 	size for projects authorized by this subdivision is not limited and may include related 
82.28 	work in multiple facilities. Health and safety management costs from subdivision 8 may 
82.29 	be reported as a single project.
82.30 	(c) All costs directly related to a project shall be reported in the appropriate Uniform 
82.31 	Financial Accounting and Reporting Standards (UFARS) finance code.
82.32 	(d) For fire and life safety egress and all other projects exceeding $20,000, cited 
82.33 	under Minnesota Fire Code, a fire marshal plan review is required.
82.34 	(e) Districts shall update project estimates with actual expenditures for each 
82.35 	fiscal year. If a project's final cost is significantly higher than originally approved, the 
82.36 	commissioner may request additional supporting information.
83.1 		Subd. 6c.Appeals process. In the event a district is denied funding approval for 
83.2 	a project the district believes complies with subdivisions 6 and 8, and is not otherwise 
83.3 	excluded, a district may appeal the decision. All such requests must be in writing. The 
83.4 	commissioner shall respond in writing. A written request must contain the following: 
83.5 	project number; description and amount; reason for denial; unresolved questions for 
83.6 	consideration; reasons for reconsideration; and a specific statement of what action the 
83.7 	district is requesting.
83.8 		Subd. 7.Proration. In the event that the health and safety aid available for any year 
83.9 	is prorated, a district having its aid prorated may levy an additional amount equal to the 
83.10 	amount not paid by the state due to proration.
83.11 		Subd. 8.Health, safety, and environmental management cost. (a) "Health, safety, 
83.12 	and environmental management" is defined in section 123B.56.
83.13 	(b) A district's cost for health, safety, and environmental management is limited to 
83.14 	the lesser of:
83.15 	(1) actual cost to implement their plan; or
83.16 	(2) an amount determined by the commissioner, based on enrollment, building 
83.17 	age, and size.
83.18 	(b) (c) The department may contract with regional service organizations, private 
83.19 	contractors, Minnesota Safety Council, or state agencies to provide management 
83.20 	assistance to school districts for health and safety capital projects. Management assistance 
83.21 	is the development of written programs for the identification, recognition and control of 
83.22 	hazards, and prioritization and scheduling of district health and safety capital projects. 
83.23 	The department commissioner shall not mandate management assistance or exclude 
83.24 	private contractors from the opportunity to provide any health and safety services to 
83.25 	school districts.
83.26 	(c) Notwithstanding paragraph (b), the department may approve revenue, up to 
83.27 	the limit defined in paragraph (a) for districts having an approved health, safety, and 
83.28 	environmental management plan that uses district staff to accomplish coordination and 
83.29 	provided services.

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

83.31 	Sec. 2. [126C.75] FIBER OPTIC INFRASTRUCTURE GRANT PROGRAM.
83.32 		Subdivision 1.Creation of accounts. Two public school fiber optic infrastructure 
83.33 	accounts are created, one in the general fund and one in the bond proceeds fund. Money 
83.34 	in these accounts may only be used for capital costs of fiber optic infrastructure for 
83.35 	eligible public school projects.
84.1 		Subd. 2.Program purpose. The fiber optic infrastructure grant program is 
84.2 	established to provide the capital investment needed to bridge the gap between the federal 
84.3 	Schools and Libraries Program of the Universal Service Fund, commonly known as 
84.4 	"E-Rate," and the total cost of fiber optic infrastructure that will better public school 
84.5 	buildings to support 21st century learning capacity at each district school.
84.6 		Subd. 3.General eligibility; state general obligation bond funds. Article XI, 
84.7 	section 5, clause (a), of the Minnesota Constitution requires that state general obligation 
84.8 	bonds be issued to finance only the acquisition or betterment of public land, buildings, and 
84.9 	other public improvements of a capital nature. The legislature has determined that many 
84.10 	fiber optic infrastructure projects will constitute betterments and capital improvements 
84.11 	within the meaning of the Minnesota Constitution and capital expenditures under generally 
84.12 	accepted accounting principles, and will be financed more efficiently and economically 
84.13 	under this section than by direct appropriations for specific projects.
84.14 		Subd. 4.Definitions. For purposes of this section:
84.15 	(1) "school district" means an independent, common, special, or intermediate school 
84.16 	district or a charter school.
84.17 	(2) "fiber optic infrastructure" means the land, buildings, fiber optic connection 
84.18 	cable, and end point hardware, including routers and switches. It does not include 
84.19 	computers, telephones, or cameras.
84.20 		Subd. 5.Grant program established. The commissioner shall make grants to 
84.21 	school districts for fiber optic infrastructure projects.
84.22 		Subd. 6.Eligible costs for grants. (a) "Eligible cost" for use of state general 
84.23 	obligation bond fund money means the acquisition of land or permanent easements; 
84.24 	preparation of land on which the fiber optic infrastructure will be located, including 
84.25 	demolition of structures and remediation of any hazardous conditions on the land; and 
84.26 	predesign, design, acquisition, and installation of publicly owned fiber optic infrastructure 
84.27 	in this state with a useful life of at least ten years that supports public school district 
84.28 	facility operation, administration, and instruction; the unpaid principal on debt issued by 
84.29 	the school district for a fiber optic infrastructure project, or the amount necessary to pay in 
84.30 	a lump sum all lease payments due if payment results in the school district owning the fiber 
84.31 	optic infrastructure. All uses under this paragraph must be for publicly owned property.
84.32 	(b) "Eligible cost" for use of any other source of money will be determined by 
84.33 	limitations imposed on that source, but may include the costs of leases and reimbursement 
84.34 	of the costs of purchase and installation of fiber optic infrastructure.
85.1 		Subd. 7.Application. The commissioner must develop forms and procedures for 
85.2 	soliciting and reviewing applications for grants under this section. At a minimum, a school 
85.3 	district must include the following information in its application:
85.4 	(1) a resolution adopted by its school board certifying that the money required to be 
85.5 	supplied by the school district to complete the project is available and committed;
85.6 	(2) a detailed and specific description of the project and an estimate, along with 
85.7 	necessary supporting evidence, of the total costs for the project;
85.8 	(3) an assessment of the need for and benefits of the project;
85.9 	(4) a timeline indicating the major milestones of the project and their anticipated 
85.10 	completion dates; and
85.11 	(5) any additional information or material the commissioner prescribes.
85.12 		Subd. 8.Criteria for grants. The commissioner must develop the criteria that will 
85.13 	be used to award grants if grant applications exceed available resources.
85.14 		Subd. 9.Cancellation of grant. If, five years after execution of a grant agreement, 
85.15 	the commissioner determines that the grantee has not proceeded in a timely manner with 
85.16 	implementation of the project funded, the commissioner must cancel the grant and the 
85.17 	grantee must repay to the commissioner all grant money paid to the grantee. Section 
85.18 	16A.642 applies to any appropriations made to the commissioner under this section that 
85.19 	have not been awarded to grantees.
85.20 		Subd. 10.Report. By January 15 of each year, the commissioner must submit to 
85.21 	the commissioner of management and budget and the chairs of the legislative committees 
85.22 	or divisions with jurisdiction over education policy, education finance, and capital 
85.23 	investment, a list of the projects that have been funded with money under this program 
85.24 	during the preceding calendar year, as well as a list of those priority projects for which state 
85.25 	bond proceeds fund appropriations will be sought during that year's legislative session.

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

85.27 	Sec. 3. HEALTH AND SAFETY POLICY.
 85.28 	Notwithstanding Minnesota Statutes, section 123B.57, subdivision 2, a school board 
85.29 	that has not yet adopted a health and safety policy by September 30, 2010, may submit an 
85.30 	application for health and safety revenue for taxes payable in 2011 in the form and manner 
85.31 	specified by the commissioner of education.

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

86.1 	ARTICLE 5
86.2 	ACCOUNTING

86.3 	Section 1. Minnesota Statutes 2009 Supplement, section 16A.152, subdivision 2, as 
86.4 	amended by Laws 2010, chapter 215, article 11, section 15, is amended to read:
86.5 		Subd. 2.Additional revenues; priority. (a) If on the basis of a forecast of general 
86.6 	fund revenues and expenditures, the commissioner of management and budget determines 
86.7 	that there will be a positive unrestricted budgetary general fund balance at the close of 
86.8 	the biennium, the commissioner of management and budget must allocate money to the 
86.9 	following accounts and purposes in priority order:
86.10 	(1) the cash flow account established in subdivision 1 until that account reaches 
86.11 	$350,000,000;
86.12 	(2) the budget reserve account established in subdivision 1a until that account 
86.13 	reaches $653,000,000;
86.14 	(3) the amount necessary to increase the aid payment schedule for school district 
86.15 	aids and credits payments in section 127A.45 to not more than 90 percent rounded to the 
86.16 	nearest tenth of a percent without exceeding the amount available and with any remaining 
86.17 	funds deposited in the budget reserve;
86.18 	(4) the amount necessary to restore all or a portion of the net aid reductions under 
86.19 	section 127A.441 and to reduce the property tax revenue recognition shift under section 
86.20 	123B.75, subdivision 5, paragraph (b), and Laws 2003, First Special Session chapter 9, 
86.21 	article 5, section 34, as amended by Laws 2003, First Special Session chapter 23, section 
86.22 	20, by the same amount; 
86.23 	(5) to the state airports fund, the amount necessary to restore the amount transferred 
86.24 	from the state airports fund under Laws 2008, chapter 363, article 11, section 3, 
86.25 	subdivision 5; and
86.26 	(6) to the fire safety account in the special revenue fund, the amount necessary to 
86.27 	restore transfers from the account to the general fund made in Laws 2010.
86.28 	(b) The amounts necessary to meet the requirements of this section are appropriated 
86.29 	from the general fund within two weeks after the forecast is released or, in the case of 
86.30 	transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations 
86.31 	schedules otherwise established in statute.
86.32 	(c) The commissioner of management and budget shall certify the total dollar 
86.33 	amount of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of 
86.34 	education. The commissioner of education shall increase the aid payment percentage and 
87.1 	reduce the property tax shift percentage by these amounts and apply those reductions to 
87.2 	the current fiscal year and thereafter.

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

87.4 	Sec. 2. Minnesota Statutes 2008, section 123B.12, is amended to read:
87.5 	123B.12 INSUFFICIENT FUNDS TO PAY ORDERS.
87.6 	(a) In the event that a district or a cooperative unit defined in section 123A.24, 
87.7 	subdivision 2, has insufficient funds to pay its usual lawful current obligations, subject to 
87.8 	section 471.69, the board may enter into agreements with banks or any person to take its 
87.9 	orders. Any order drawn, after having been presented to the treasurer for payment and not 
87.10 	paid for want of funds shall be endorsed by the treasurer by putting on the back thereof 
87.11 	the words "not paid for want of funds," giving the date of endorsement and signed by the 
87.12 	treasurer. A record of such presentment, nonpayment and endorsement shall be made by 
87.13 	the treasurer. The treasurer shall serve a written notice upon the payee or the payee's 
87.14 	assignee, personally, or by mail, when the treasurer is prepared to pay such orders. The 
87.15 	notice may be directed to the payee or the payee's assignee at the address given in writing 
87.16 	by such payee or assignee to such treasurer, at any time prior to the service of such notice. 
87.17 	No order shall draw any interest if such address is not given when the same is unknown to 
87.18 	the treasurer, and no order shall draw any interest after the service of such notice.  
87.19 	(b) A district may enter, subject to section 471.69, into a an unsecured line of credit 
87.20 	agreement with a financial institution. The amount of credit available must not exceed 95
87.21 	380 percent of average expenditure per month of operating expenditures in the previous 
87.22 	fiscal year. Any amount advanced must be repaid no later than 45 120 days after the 
87.23 	day of advancement.

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

87.25 	Sec. 3. Minnesota Statutes 2008, section 123B.75, is amended by adding a subdivision 
87.26 	to read:
87.27 		Subd. 1a.Definition. For the purpose of this section, "school district tax settlement 
87.28 	revenue" means the current, delinquent, and manufactured home property tax receipts 
87.29 	collected by the county and distributed to the school district.

87.30 	EFFECTIVE DATE. This section is effective the day following final enactment 
87.31 	and applies to fiscal years 2010 and later.

88.1 	Sec. 4. Minnesota Statutes 2008, section 123B.75, subdivision 5, is amended to read:
88.2 		Subd. 5.Levy recognition. (a) "School district tax settlement revenue" means the 
88.3 	current, delinquent, and manufactured home property tax receipts collected by the county 
88.4 	and distributed to the school district.
88.5 	(b) For fiscal year 2004 and later years 2009 and 2010, in June of each year, the 
88.6 	school district must recognize as revenue, in the fund for which the levy was made, the 
88.7 	lesser of:
88.8 	(1) the sum of May, June, and July school district tax settlement revenue received in 
88.9 	that calendar year, plus general education aid according to section 126C.13, subdivision 
88.10 	4, received in July and August of that calendar year; or
88.11 	(2) the sum of:
88.12 	(i) 31 percent of the referendum levy certified according to section 126C.17, in 
88.13 	calendar year 2000; and
88.14 	(ii) the entire amount of the levy certified in the prior calendar year according to 
88.15 	section 124D.86, subdivision 4, for school districts receiving revenue under sections 
88.16 	124D.86, subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, paragraph 
88.17 	(a), and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48, 
88.18 	subdivision 6; plus
88.19 	(iii) zero percent of the amount of the levy certified in the prior calendar year for the 
88.20 	school district's general and community service funds, plus or minus auditor's adjustments, 
88.21 	not including the levy portions that are assumed by the state, that remains after subtracting 
88.22 	the referendum levy certified according to section 126C.17 and the amount recognized 
88.23 	according to item (ii).
88.24 	(b) For fiscal year 2011 and later years, in June of each year, the school district must 
88.25 	recognize as revenue, in the fund for which the levy was made, the lesser of:
88.26 	(1) the sum of May, June, and July school district tax settlement revenue received in 
88.27 	that calendar year, plus general education aid according to section 126C.13, subdivision 
88.28 	4, received in July and August of that calendar year; or
88.29 	(2) the sum of:
88.30 	(i) the greater of 47.8 percent of the referendum levy certified according to section 
88.31 	126C.17, in the prior calendar year or 31 percent of the referendum levy certified 
88.32 	according to section 126C.17, in calendar year 2000; plus
88.33 	(ii) the entire amount of the levy certified in the prior calendar year according to 
88.34 	section 124D.86, subdivision 4, for school districts receiving revenue under sections 
88.35 	124D.86, subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, and 3, 
89.1 	paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48, subdivision 
89.2 	6; plus
89.3 	(iii) 47.8 percent of the amount of the levy certified in the prior calendar year for the 
89.4 	school district's general and community service funds, plus or minus auditor's adjustments, 
89.5 	not including the levy portions that are assumed by the state, that remains after subtracting 
89.6 	the referendum levy certified according to section 126C.17 and the amount recognized 
89.7 	according to clause (ii).

89.8 	Sec. 5. Minnesota Statutes 2008, section 126C.54, is amended to read:
89.9 	126C.54 REPAYMENT; MATURITY DATE OF CERTIFICATES; INTEREST.
89.10 	(a) The proceeds of the current tax levies and future state aid receipts or other school 
89.11 	funds which may become available must be applied to the extent necessary to repay 
89.12 	such certificates and the full faith and credit of the district shall be pledged to payment 
89.13 	of the certificates. Certificates issued in anticipation of receipt of aids shall mature not 
89.14 	later than the anticipated date of receipt of the aids as estimated by the commissioner, but 
89.15 	in no event later than three months after the close of the school year in which issued. 
89.16 	Certificates issued in anticipation of receipt of taxes shall mature not later than the 
89.17 	anticipated date of receipt in full of the taxes, but in no event later than three months after 
89.18 	the close of the calendar year in which issued. The certificates must be sold at not less 
89.19 	than par. The certificates must bear interest after maturity until paid at the rate they bore 
89.20 	before maturity and any interest accruing before or after maturity must be paid from 
89.21 	any available school funds.
89.22 	(b) Notwithstanding any contrary provision in paragraph (a), if the certificates are 
89.23 	issued as taxable obligations on which the interest is includable in gross income for federal 
89.24 	income tax purposes, certificates issued in anticipation of receipt of aids shall mature not 
89.25 	later than 12 months after the close of the school year in which issued and certificates 
89.26 	issued in anticipation of receipt of taxes shall mature not later than 12 months after the 
89.27 	close of the calendar year in which issued. Any certificate issued under this section with a 
89.28 	maturity in excess of 12 months must be repaid with money from the general fund.

89.29 	Sec. 6. Minnesota Statutes 2008, section 127A.42, subdivision 2, is amended to read:
89.30 		Subd. 2.Violations of law. The commissioner may reduce or withhold the district's 
89.31 	state aid for any school year whenever the board of the district authorizes or permits 
89.32 	violations of law within the district by:
89.33 	(1) employing a teacher who does not hold a valid teaching license or permit in a 
89.34 	public school;
90.1 	(2) noncompliance with a mandatory rule of general application promulgated by the 
90.2 	commissioner in accordance with statute, unless special circumstances make enforcement 
90.3 	inequitable, impose an extraordinary hardship on the district, or the rule is contrary to 
90.4 	the district's best interests;
90.5 	(3) the district's continued performance of a contract made for the rental of rooms 
90.6 	or buildings for school purposes or for the rental of any facility owned or operated by or 
90.7 	under the direction of any private organization, if the contract has been disapproved, the 
90.8 	time for review of the determination of disapproval has expired, and no proceeding for 
90.9 	review is pending;
90.10 	(4) any practice which is a violation of sections 1 and 2 of article 13 of the 
90.11 	Constitution of the state of Minnesota;
90.12 	(5) failure to reasonably provide for a resident pupil's school attendance under 
90.13 	Minnesota Statutes;
90.14 	(6) noncompliance with state laws prohibiting discrimination because of race, 
90.15 	color, creed, religion, national origin, sex, age, marital status, status with regard to 
90.16 	public assistance or disability, as defined in sections 363A.08 to 363A.19 and 363A.28, 
90.17 	subdivision 10; or 
90.18 	(7) using funds contrary to the statutory purpose of the funds.
90.19 	The reduction or withholding must be made in the amount and upon the procedure 
90.20 	provided in this section, or, in the case of the violation stated in clause (1), upon the 
90.21 	procedure provided in section 127A.43.

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

90.23 	Sec. 7. Minnesota Statutes 2008, section 127A.43, is amended to read:
90.24 	127A.43 DISTRICT EMPLOYMENT OF UNLICENSED TEACHERS; AID 
90.25 	REDUCTION.
90.26 	When a district employs one or more teachers who do not hold a valid teaching 
90.27 	license, state aid shall be withheld reduced in the proportion that the number of such 
90.28 	teachers is to the total number of teachers employed by the district, multiplied by 60 
90.29 	percent of the basic revenue, as defined in section 126C.10, subdivision 2, of the district 
90.30 	for the year in which the employment occurred.  

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

91.1 	Sec. 8. Minnesota Statutes 2008, section 127A.441, is amended to read:
91.2 	127A.441 AID REDUCTION; LEVY REVENUE RECOGNITION CHANGE.
91.3 	Each year, the state aids payable to any school district for that fiscal year that are 
91.4 	recognized as revenue in the school district's general and community service funds shall 
91.5 	be adjusted by an amount equal to (1) the amount the district recognized as revenue for the 
91.6 	prior fiscal year pursuant to section 123B.75, subdivision 5, paragraph (a) or (b), minus (2) 
91.7 	the amount the district recognized as revenue for the current fiscal year pursuant to section 
91.8 	123B.75, subdivision 5, paragraph (a) or (b). For purposes of making the aid adjustments 
91.9 	under this section, the amount the district recognizes as revenue for either the prior fiscal 
91.10 	year or the current fiscal year pursuant to section 123B.75, subdivision 5, paragraph (b), 
91.11 	shall not include any amount levied pursuant to section 124D.86, subdivision 4, for school 
91.12 	districts receiving revenue under sections 124D.86, subdivision 3, clauses (1), (2), and (3); 
91.13 	126C.41, subdivisions 1, 2, and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; 
91.14 	126C.457; and 126C.48, subdivision 6. Payment from the permanent school fund shall not 
91.15 	be adjusted pursuant to this section. The school district shall be notified of the amount of 
91.16 	the adjustment made to each payment pursuant to this section. 

91.17 	EFFECTIVE DATE. This section is effective the day following final enactment 
91.18 	and applies to fiscal years 2010 and later.

91.19 	Sec. 9. Minnesota Statutes 2008, section 127A.45, subdivision 2, is amended to read:
91.20 		Subd. 2.Definitions. (a) The term "Other district receipts" means payments by 
91.21 	county treasurers pursuant to section 276.10, apportionments from the school endowment 
91.22 	fund pursuant to section 127A.33, apportionments by the county auditor pursuant to 
91.23 	section 127A.34, subdivision 2, and payments to school districts by the commissioner of 
91.24 	revenue pursuant to chapter 298.
91.25 	(b) The term "Cumulative amount guaranteed" means the product of
91.26 	(1) the cumulative disbursement percentage shown in subdivision 3; times
91.27 	(2) the sum of
91.28 	(i) the current year aid payment percentage of the estimated aid and credit 
91.29 	entitlements paid according to subdivision 13; plus
91.30 	(ii) 100 percent of the entitlements paid according to subdivisions 11 and 12; plus
91.31 	(iii) the other district receipts.
91.32 	(c) The term "Payment date" means the date on which state payments to districts 
91.33 	are made by the electronic funds transfer method. If a payment date falls on a Saturday, 
91.34 	a Sunday, or a weekday which is a legal holiday, the payment shall be made on the 
92.1 	immediately preceding business day. The commissioner may make payments on dates 
92.2 	other than those listed in subdivision 3, but only for portions of payments from any 
92.3 	preceding payment dates which could not be processed by the electronic funds transfer 
92.4 	method due to documented extenuating circumstances.
92.5 	(d) The current year aid payment percentage equals 90 73.

92.6 	EFFECTIVE DATE. This section is effective the day following final enactment 
92.7 	and applies to fiscal years 2010 and later.

92.8 	Sec. 10. Minnesota Statutes 2008, section 127A.45, subdivision 3, is amended to read:
92.9 		Subd. 3.Payment dates and percentages. (a) For fiscal year 2004 and later, The 
92.10 	commissioner shall pay to a district on the dates indicated an amount computed as follows: 
92.11 	the cumulative amount guaranteed minus the sum of (a)(1) the district's other district 
92.12 	receipts through the current payment, and (b)(2) the aid and credit payments through the 
92.13 	immediately preceding payment. For purposes of this computation, the payment dates and 
92.14 	the cumulative disbursement percentages are as follows:

92.15		Payment date
	Percentage
	
92.16	Payment 1
	July 15:
	5.5
	
92.17	Payment 2
	July 30:
	8.0
	
92.18	Payment 3
	August 15:
	17.5
	
92.19	Payment 4
	August 30:
	20.0
	
92.20	Payment 5
	September 15:
	22.5
	
92.21	Payment 6
	September 30:
	25.0
	
92.22	Payment 7
	October 15:
	27.0
	
92.23	Payment 8
	October 30:
	30.0
	
92.24	Payment 9
	November 15:
	32.5
	
92.25	Payment 10
	November 30:
	36.5
	
92.26	Payment 11
	December 15:
	42.0
	
92.27	Payment 12
	December 30:
	45.0
	
92.28	Payment 13
	January 15:
	50.0
	
92.29	Payment 14
	January 30:
	54.0
	
92.30	Payment 15
	February 15:
	58.0
	
92.31	Payment 16
	February 28:
	63.0
	
92.32	Payment 17
	March 15:
	68.0
	
92.33	Payment 18
	March 30:
	74.0
	
92.34	Payment 19
	April 15:
	78.0
	
92.35	Payment 20
	April 30:
	85.0
	
92.36	Payment 21
	May 15:
	90.0
	
92.37	Payment 22
	May 30:
	95.0
	
92.38	Payment 23
	June 20:
	100.0
	
93.1 	(b) In addition to the amounts paid under paragraph (a), for fiscal year 2004, the 
93.2 	commissioner shall pay to a district on the dates indicated an amount computed as follows:

93.3
93.4	Payment 3
	August 15: the final adjustment for the prior fiscal year for the state paid 
property tax credits established in section 273.1392
	
93.5
93.6	Payment 4
	August 30: one-third of the final adjustment for the prior fiscal year for 
all aid entitlements except state paid property tax credits
	
93.7
93.8	Payment 6
	September 30: one-third of the final adjustment for the prior fiscal year 
for all aid entitlements except state paid property tax credits
	
93.993.10
	Payment 8
	October 30: one-third of the final adjustment for the prior fiscal year for 
all aid entitlements except state paid property tax credits
	
93.11 	(c) (b) In addition to the amounts paid under paragraph (a), for fiscal year 2005 and 
93.12 	later, the commissioner shall pay to a district on the dates indicated an amount computed 
93.13 	as follows:

93.14
93.15	Payment 3
	August 15: the final adjustment for the prior fiscal year for the state paid 
property tax credits established in section 273.1392
	
93.16
93.17	Payment 4
	August 30: 30 percent of the final adjustment for the prior fiscal year for 
all aid entitlements except state paid property tax credits
	
93.18
93.19	Payment 6
	September 30: 40 percent of the final adjustment for the prior fiscal year 
for all aid entitlements except state paid property tax credits
	
93.20
93.21	Payment 8
	October 30: 30 percent of the final adjustment for the prior fiscal year 
for all aid entitlements except state paid property tax credits

93.22 	EFFECTIVE DATE. This section is effective the day following final enactment 
93.23 	and applies to fiscal years 2010 and later.

93.24 	Sec. 11. Minnesota Statutes 2008, section 127A.45, is amended by adding a 
93.25 	subdivision to read:
93.26 		Subd. 6a.Cash flow adjustment. The board of directors of any charter school 
93.27 	serving fewer than 150 students where the percentage of students eligible for special 
93.28 	education services equals 100 percent of the charter school's total enrollment may request 
93.29 	that the commissioner of education accelerate the school's cash flow under this section. 
93.30 	The commissioner must approve a properly submitted request within 30 days of its receipt. 
93.31 	The commissioner must accelerate the school's regular special education aid payments 
93.32 	according to the schedule in the school's request and modify the payments to the school 
93.33 	under subdivision 3 accordingly. A school must not receive current payments of regular 
93.34 	special education aid exceeding 90 percent of its estimated aid entitlement for the fiscal 
93.35 	year. The commissioner must delay the special education aid payments to all other school 
93.36 	districts and charter schools in proportion to each district or charter school's total share 
93.37 	of regular special education aid such that the overall aid payment savings from the aid 
93.38 	payment shift remains unchanged for any fiscal year. 

94.1 	EFFECTIVE DATE. This section is effective the day following final enactment 
94.2 	and applies to school district or charter school payments made on or after that date.

94.3 	Sec. 12. Minnesota Statutes 2008, section 127A.45, is amended by adding a 
94.4 	subdivision to read:
94.5 		Subd. 7b.Advance final payment. (a) Notwithstanding subdivisions 3 and 7, 
94.6 	a school district or charter school exceeding its expenditure limitations under section 
94.7 	123B.83 as of June 30 of the prior fiscal year may receive a portion of its final payment 
94.8 	for the current fiscal year on June 20, if requested by the district or charter school. The 
94.9 	amount paid under this subdivision must not exceed the lesser of:
94.10 	(1) the difference between 90 percent and the current year payment percentage in 
94.11 	subdivision 2, paragraph (d), in the current fiscal year times the sum of the district or 
94.12 	charter school's general education aid plus the aid adjustment in section 127A.50 for 
94.13 	the current fiscal year; or
94.14 	(2) the amount by which the district's or charter school's net negative unreserved 
94.15 	general fund balance as of June 30 of the prior fiscal year exceeds 2.5 percent of the 
94.16 	district or charter school's expenditures for that fiscal year.
94.17 	(b) The state total advance final payment under this subdivision for any year must 
94.18 	not exceed $7,500,000. If the amount request exceeds $7,500,000, the advance final 
94.19 	payment for each eligible district must be reduced proportionately.

94.20 	EFFECTIVE DATE. This section is effective the day following final enactment 
94.21 	and applies to fiscal years 2010 and later.

94.22 	Sec. 13. Minnesota Statutes 2008, section 127A.45, subdivision 13, is amended to read:
94.23 		Subd. 13.Aid payment percentage. Except as provided in subdivisions 11, 12, 12a, 
94.24 	and 14, each fiscal year, all education aids and credits in this chapter and chapters 120A, 
94.25 	120B, 121A, 122A, 123A, 123B, 124D, 125A, 125B, 126C, 134, and section 273.1392, 
94.26 	shall be paid at the current year aid payment percentage of the estimated entitlement during 
94.27 	the fiscal year of the entitlement. For the purposes of this subdivision, a district's estimated 
94.28 	entitlement for special education excess cost aid under section 125A.79 for fiscal year 
94.29 	2005 equals 70 percent of the district's entitlement for the second prior fiscal year. For the 
94.30 	purposes of this subdivision, a district's estimated entitlement for special education excess 
94.31 	cost aid under section 125A.79 for fiscal year 2006 and later equals 74.0 percent of the 
94.32 	district's entitlement for the current fiscal year. The final adjustment payment, according 
94.33 	to subdivision 9, must be the amount of the actual entitlement, after adjustment for actual 
94.34 	data, minus the payments made during the fiscal year of the entitlement.

95.1 	Sec. 14. Minnesota Statutes 2008, section 127A.45, is amended by adding a 
95.2 	subdivision to read:
95.3 		Subd. 17.Payment to creditors. Except where otherwise specifically authorized, 
95.4 	state education aid payments shall be made only to the school district, charter school, or 
95.5 	other education organization earning state aid revenues as a result of providing education 
95.6 	services.

95.7 	Sec. 15. FUND TRANSFERS.
 95.8 		Subdivision 1.Fiscal years 2010 and 2011 only. (a) Notwithstanding Minnesota 
95.9 	Statutes, section 123B.80, subdivision 3, for fiscal years 2010 and 2011 only, the 
95.10 	commissioner must approve a request for a fund transfer if the transfer does not increase 
95.11 	state aid obligations to the district or result in additional property tax authority for the 
95.12 	district. This section does not permit transfers from the community service fund.
95.13 	(b) A school board may approve a fund transfer under paragraph (a) only after 
95.14 	adopting a resolution stating the fund transfer will not diminish instructional opportunities 
95.15 	for students.
95.16 		Subd. 2.Hayfield. Notwithstanding Minnesota Statutes, section 123B.79 or 
95.17 	123B.80, on June 30, 2010, Independent School District No. 203, Hayfield, may 
95.18 	permanently transfer up to $75,000 from its reserved for operating capital account to its 
95.19 	undesignated general fund balance.

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

95.21 	Sec. 16.  REPEALER.
 95.22 	Minnesota Statutes 2008, section 127A.46, is repealed.

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

95.24 	ARTICLE 6
95.25 	STATE AGENCIES

95.26 	Section 1. Minnesota Statutes 2008, section 3.303, is amended by adding a subdivision 
95.27 	to read:
95.28 		Subd. 11.Permanent school fund land management analyst. The commission 
95.29 	shall undertake activities that are necessary to advise the legislature and to monitor the 
95.30 	executive branch on issues related to the management of permanent school fund lands. 
95.31 	The commission may hire a lead analyst and other staff as necessary for this purpose. The 
95.32 	commission shall:
96.1 	(1) monitor management of permanent school fund lands;
96.2 	(2) analyze the benefits derived from the fund;
96.3 	(3) actively participate in the work of the permanent school fund advisory committee 
96.4 	under section 127A.30;
96.5 	(4) provide oversight to ensure that the state fulfills its fiduciary responsibilities to 
96.6 	the permanent school fund as specified by the Minnesota Constitution and Minnesota 
96.7 	Statutes; and
96.8 	(5) make effective recommendations to the permanent school fund advisory 
96.9 	committee and the finance divisions and committees of the house of representatives and 
96.10 	the senate.
96.11 	The purpose of this function is to maximize the long-term economic returns to the 
96.12 	school trust lands consistent with the goals of section 127A.31.

96.13 	EFFECTIVE DATE. This section is effective July 1, 2011.

96.14 	Sec. 2. Minnesota Statutes 2008, section 16A.125, subdivision 5, is amended to read:
96.15 		Subd. 5.Forest trust lands. (a) The term "state forest trust fund lands" as used 
96.16 	in this subdivision, means public land in trust under the Constitution set apart as "forest 
96.17 	lands under the authority of the commissioner" of natural resources as defined by section 
96.18 	89.001, subdivision 13.
96.19 	(b) The commissioner of management and budget shall credit the revenue from the 
96.20 	forest trust fund lands to the forest suspense account. The account must specify the trust 
96.21 	funds interested in the lands and the respective receipts of the lands.
96.22 	(c) After a fiscal year, the commissioner of management and budget shall certify the 
96.23 	total costs incurred for forestry during that year under appropriations for the protection, 
96.24 	improvement, administration, and management of state forest trust fund lands and 
96.25 	construction and improvement of forest roads to enhance the forest value of the lands. 
96.26 	The certificate must specify the trust funds interested in the lands. The commissioner of 
96.27 	natural resources shall supply the commissioner of management and budget with the 
96.28 	information needed for the certificate.
96.29 	(d) After a fiscal year, the commissioner shall distribute the receipts credited to the 
96.30 	suspense account during that fiscal year as follows:
96.31 	(1) the amount of the certified costs incurred by the state for forest management, 
96.32 	forest improvement, and road improvement during the fiscal year shall be transferred to 
96.33 	the forest management investment account established under section 89.039, including 
96.34 	the costs associated with the Legislative Coordinating Commission's permanent school 
96.35 	fund land management activities;
97.1 	(2) the balance of the certified costs incurred by the state during the fiscal year 
97.2 	shall be transferred to the general fund; and
97.3 	(3) the balance of the receipts shall then be returned prorated to the trust funds in 
97.4 	proportion to their respective interests in the lands which produced the receipts.

97.5 	EFFECTIVE DATE. This section is effective July 1, 2011.

97.6 	Sec. 3. Minnesota Statutes 2008, section 127A.30, subdivision 2, is amended to read:
97.7 		Subd. 2.Duties.  The advisory committee, in conjunction with the Legislative 
97.8 	Coordinating Commission, shall review the policies of the Department of Natural 
97.9 	Resources and current statutes on management of school trust fund lands at least annually 
97.10 	and shall recommend necessary changes in statutes, policy, and implementation in order to 
97.11 	ensure provident utilization of the permanent school fund lands. By January 15 of each 
97.12 	year, the advisory committee shall submit a report to the legislature with recommendations 
97.13 	for the oversight and management of school trust lands to secure long-term economic 
97.14 	return for the permanent school fund, consistent with sections 92.121 and 127A.31. The 
97.15 	committee's annual report may include recommendations to:
97.16 	(1) manage the school trust lands efficiently;
97.17 	(2) reduce the management expenditures of school trust lands and maximize the 
97.18 	revenues deposited in the permanent school trust fund;
97.19 	(3) manage the sale, exchange, and commercial leasing of school trust lands to 
97.20 	maximize the revenues deposited in the permanent school trust fund and retain the value 
97.21 	from the long-term appreciation of the school trust lands; and
97.22 	(4) manage the school trust lands to maximize the long-term economic return for the 
97.23 	permanent school trust fund while maintaining sound natural resource conservation and 
97.24 	management principles.

97.25 	EFFECTIVE DATE. This section is effective July 1, 2011.

97.26 	Sec. 4. DEPARTMENT OF EDUCATION; APPROPRIATIONS.
 97.27 	(a) The appropriation to the Department of Education under Laws 2009, chapter 
97.28 	96, article 7, section 3, subdivision 2, is reduced by $250,000 in fiscal year 2010 and 
97.29 	by $487,000 in fiscal year 2011.
97.30 	(b) $24,000 in fiscal year 2010 and $23,000 in fiscal year 2011 are transferred from 
97.31 	the department's special revenue fund to the general fund.
97.32 	(c) The base appropriation for the Department of Education for fiscal year 2012 
97.33 	and later is $18,583,000.
98.1 	(d) The appropriations for fiscal year 2011 under Laws 2009, chapter 96, article 7, 
98.2 	section 3, subdivision 2, paragraphs (b) and (g), are reduced by $4,000 for the Minnesota 
98.3 	Children's Museum and by $1,000 for the Duluth Children's Museum respectively.

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

98.5 	Sec. 5. PERPICH CENTER FOR ARTS EDUCATION; APPROPRIATION.
 98.6 	$19,000 in fiscal year 2010 and $11,000 in fiscal year 2011 are transferred from the 
98.7 	Perpich Center's special revenue fund to the general fund.

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

98.9 	ARTICLE 7
98.10 	PUPIL TRANSPORTATION

98.11 	Section 1. Minnesota Statutes 2008, section 123B.88, subdivision 13, is amended to 
98.12 	read:
98.13 		Subd. 13.Area learning center pupils; transport between buildings. Districts 
98.14 	may provide bus transportation between buildings along school bus routes when space is 
98.15 	available, for pupils attending programs at an area learning center. The transportation is 
98.16 	only permitted between schools and if it does not increase the district's expenditures for 
98.17 	transportation. The cost of these services shall be considered part of the authorized cost 
98.18 	for nonregular transportation for the purpose of section 123B.92. 

98.19 	Sec. 2. Minnesota Statutes 2008, section 123B.90, subdivision 3, is amended to read:
98.20 		Subd. 3.Model training program. The commissioner shall develop and maintain a 
98.21 	comprehensive model list of school bus safety training programinstructional materials 
98.22 	for pupils who ride the bus that includes bus safety curriculum for both classroom and 
98.23 	practical instruction and age-appropriate instructional materials.

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

98.25 	Sec. 3. Minnesota Statutes 2009 Supplement, section 123B.92, subdivision 1, is 
98.26 	amended to read:
98.27 		Subdivision 1.Definitions. For purposes of this section and section 125A.76, the 
98.28 	terms defined in this subdivision have the meanings given to them.
98.29 	(a) "Actual expenditure per pupil transported in the regular and excess transportation 
98.30 	categories" means the quotient obtained by dividing:
99.1 	(1) the sum of:
99.2 	(i) all expenditures for transportation in the regular category, as defined in paragraph 
99.3 	(b), clause (1), and the excess category, as defined in paragraph (b), clause (2), plus
99.4 	(ii) an amount equal to one year's depreciation on the district's school bus fleet 
99.5 	and mobile units computed on a straight line basis at the rate of 15 percent per year for 
99.6 	districts operating a program under section 124D.128 for grades 1 to 12 for all students in 
99.7 	the district and 12-1/2 percent per year for other districts of the cost of the fleet, plus
99.8 	(iii) an amount equal to one year's depreciation on the district's type III vehicles, as 
99.9 	defined in section 169.011, subdivision 71, which must be used a majority of the time for 
99.10 	pupil transportation purposes, computed on a straight line basis at the rate of 20 percent 
99.11 	per year of the cost of the type three school buses by:
99.12 	(2) the number of pupils eligible for transportation in the regular category, as defined 
99.13 	in paragraph (b), clause (1), and the excess category, as defined in paragraph (b), clause (2).
99.14 	(b) "Transportation category" means a category of transportation service provided to 
99.15 	pupils as follows:
99.16 	(1) Regular transportation is:
99.17 	(i) transportation to and from school during the regular school year for resident 
99.18 	elementary pupils residing one mile or more from the public or nonpublic school they 
99.19 	attend, and resident secondary pupils residing two miles or more from the public 
99.20 	or nonpublic school they attend, excluding desegregation transportation and noon 
99.21 	kindergarten transportation; but with respect to transportation of pupils to and from 
99.22 	nonpublic schools, only to the extent permitted by sections 123B.84 to 123B.87;
99.23 	(ii) transportation of resident pupils to and from language immersion programs;
99.24 	(iii) transportation of a pupil who is a custodial parent and that pupil's child between 
99.25 	the pupil's home and the child care provider and between the provider and the school, if 
99.26 	the home and provider are within the attendance area of the school;
99.27 	(iv) transportation to and from or board and lodging in another district, of resident 
99.28 	pupils of a district without a secondary school; and
99.29 	(v) transportation to and from school during the regular school year required under 
99.30 	subdivision 3 for nonresident elementary pupils when the distance from the attendance 
99.31 	area border to the public school is one mile or more, and for nonresident secondary pupils 
99.32 	when the distance from the attendance area border to the public school is two miles or 
99.33 	more, excluding desegregation transportation and noon kindergarten transportation.
99.34 	For the purposes of this paragraph, a district may designate a licensed day care 
99.35 	facility, school day care facility, respite care facility, the residence of a relative, or the 
99.36 	residence of a person chosen by the pupil's parent or guardian, or an after-school program 
100.1 	for children operated by a political subdivision of the state, as the home of a pupil for part 
100.2 	or all of the day, if requested by the pupil's parent or guardian, and if that facility or,
100.3 	residence, or program is within the attendance area of the school the pupil attends.
100.4 	(2) Excess transportation is:
100.5 	(i) transportation to and from school during the regular school year for resident 
100.6 	secondary pupils residing at least one mile but less than two miles from the public or 
100.7 	nonpublic school they attend, and transportation to and from school for resident pupils 
100.8 	residing less than one mile from school who are transported because of extraordinary 
100.9 	traffic, drug, or crime hazards; and
100.10 	(ii) transportation to and from school during the regular school year required under 
100.11 	subdivision 3 for nonresident secondary pupils when the distance from the attendance area 
100.12 	border to the school is at least one mile but less than two miles from the public school 
100.13 	they attend, and for nonresident pupils when the distance from the attendance area border 
100.14 	to the school is less than one mile from the school and who are transported because of 
100.15 	extraordinary traffic, drug, or crime hazards.
100.16 	(3) Desegregation transportation is transportation within and outside of the district 
100.17 	during the regular school year of pupils to and from schools located outside their normal 
100.18 	attendance areas under a plan for desegregation mandated by the commissioner or under 
100.19 	court order.
100.20 	(4) "Transportation services for pupils with disabilities" is:
100.21 	(i) transportation of pupils with disabilities who cannot be transported on a regular 
100.22 	school bus between home or a respite care facility and school;
100.23 	(ii) necessary transportation of pupils with disabilities from home or from school to 
100.24 	other buildings, including centers such as developmental achievement centers, hospitals, 
100.25 	and treatment centers where special instruction or services required by sections 125A.03 
100.26 	to 125A.24, 125A.26 to 125A.48, and 125A.65 are provided, within or outside the district 
100.27 	where services are provided;
100.28 	(iii) necessary transportation for resident pupils with disabilities required by sections 
100.29 	125A.12, and 125A.26 to 125A.48;
100.30 	(iv) board and lodging for pupils with disabilities in a district maintaining special 
100.31 	classes;
100.32 	(v) transportation from one educational facility to another within the district for 
100.33 	resident pupils enrolled on a shared-time basis in educational programs, and necessary 
100.34 	transportation required by sections 125A.18, and 125A.26 to 125A.48, for resident pupils 
100.35 	with disabilities who are provided special instruction and services on a shared-time basis 
100.36 	or if resident pupils are not transported, the costs of necessary travel between public 
101.1 	and private schools or neutral instructional sites by essential personnel employed by the 
101.2 	district's program for children with a disability;
101.3 	(vi) transportation for resident pupils with disabilities to and from board and lodging 
101.4 	facilities when the pupil is boarded and lodged for educational purposes; and
101.5 	(vii) transportation of pupils for a curricular field trip activity on a school bus 
101.6 	equipped with a power lift when the power lift is required by a student's disability or 
101.7 	section 504 plan; and
101.8 	(viii)  services described in clauses (i) to (vi) (vii), when provided for pupils with 
101.9 	disabilities in conjunction with a summer instructional program that relates to the pupil's 
101.10 	individual education plan or in conjunction with a learning year program established 
101.11 	under section 124D.128.
101.12 	For purposes of computing special education initial aid under section 125A.76, 
101.13 	subdivision 2, the cost of providing transportation for children with disabilities includes 
101.14 	(A) the additional cost of transporting a homeless student from a temporary nonshelter 
101.15 	home in another district to the school of origin, or a formerly homeless student from a 
101.16 	permanent home in another district to the school of origin but only through the end of the 
101.17 	academic year; and (B) depreciation on district-owned school buses purchased after July 1, 
101.18 	2005, and used primarily for transportation of pupils with disabilities, calculated according 
101.19 	to paragraph (a), clauses (ii) and (iii). Depreciation costs included in the disabled 
101.20 	transportation category must be excluded in calculating the actual expenditure per pupil 
101.21 	transported in the regular and excess transportation categories according to paragraph (a).
101.22 	(5) "Nonpublic nonregular transportation" is:
101.23 	(i) transportation from one educational facility to another within the district for 
101.24 	resident pupils enrolled on a shared-time basis in educational programs, excluding 
101.25 	transportation for nonpublic pupils with disabilities under clause (4);
101.26 	(ii) transportation within district boundaries between a nonpublic school and a 
101.27 	public school or a neutral site for nonpublic school pupils who are provided pupil support 
101.28 	services pursuant to section 123B.44; and
101.29 	(iii) late transportation home from school or between schools within a district for 
101.30 	nonpublic school pupils involved in after-school activities.
101.31 	(c) "Mobile unit" means a vehicle or trailer designed to provide facilities for 
101.32 	educational programs and services, including diagnostic testing, guidance and counseling 
101.33 	services, and health services. A mobile unit located off nonpublic school premises is a 
101.34 	neutral site as defined in section 123B.41, subdivision 13.

101.35 	EFFECTIVE DATE. This section is effective for revenue for fiscal years 2011 
101.36 	and later.

102.1 	Sec. 4. Minnesota Statutes 2008, section 123B.92, subdivision 5, is amended to read:
102.2 		Subd. 5.District reports. (a) Each district must report data to the department as 
102.3 	required by the department to account for transportation expenditures.
102.4 	(b) Salaries and fringe benefits of district employees whose primary duties are 
102.5 	other than transportation, including central office administrators and staff, building 
102.6 	administrators and staff, teachers, social workers, school nurses, and instructional aides, 
102.7 	must not be included in a district's transportation expenditures, except that a district may 
102.8 	include salaries and benefits according to paragraph (c) for (1) an employee designated 
102.9 	as the district transportation director, (2) an employee providing direct support to the 
102.10 	transportation director, or (3) an employee providing direct transportation services such as 
102.11 	a bus driver or bus aide.
102.12 	(c) Salaries and fringe benefits of the district employees listed in paragraph (b), 
102.13 	clauses (1), (2), and (3), who work part time in transportation and part time in other areas 
102.14 	must not be included in a district's transportation expenditures unless the district maintains 
102.15 	documentation of the employee's time spent on pupil transportation matters in the form 
102.16 	and manner prescribed by the department.
102.17 	(d) Pupil transportation expenditures, excluding expenditures for capital outlay, 
102.18 	leased buses, student board and lodging, crossing guards, and aides on buses, must 
102.19 	be allocated among transportation categories based on cost-per-mile, cost-per-student, 
102.20 	cost-per-hour, or cost-per-route, regardless of whether the transportation services are 
102.21 	provided on district-owned or contractor-owned school buses. Expenditures for school 
102.22 	bus driver salaries and fringe benefits may either be directly charged to the appropriate 
102.23 	transportation category or may be allocated among transportation categories based 
102.24 	on cost-per-mile, cost-per-student, cost-per-hour, or cost-per-route. Expenditures 
102.25 	by private contractors or individuals who provide transportation exclusively in one 
102.26 	transportation category must be charged directly to the appropriate transportation category. 
102.27 	Transportation services provided by contractor-owned school bus companies incorporated 
102.28 	under different names but owned by the same individual or group of individuals must be 
102.29 	treated as the same company for cost allocation purposes.
102.30 	(e) Notwithstanding paragraph (d), districts contracting for transportation services 
102.31 	are exempt from the standard cost allocation method for authorized and nonauthorized 
102.32 	transportation categories if: (1) the district bids its contracts separately for authorized 
102.33 	and nonauthorized transportation categories and for special transportation separate from 
102.34 	regular and excess transportation; (2) the district receives bids or quotes from more 
102.35 	than one vendor for these transportation categories; and (3) the district's cost-per-mile, 
102.36 	cost-per-hour, or cost-per-route does not vary more than ten percent among categories, 
103.1 	excluding salaries and fringe benefits of bus aides. If the costs reported by the district 
103.2 	for contractor-owned operations vary by more than ten percent among categories, the 
103.3 	department shall require the district to reallocate its transportation costs, excluding salaries 
103.4 	and fringe benefits of bus aides, among all categories.

103.5 	EFFECTIVE DATE. This section is effective for revenue for fiscal years 2011 
103.6 	and later.

103.7 	Sec. 5. Minnesota Statutes 2008, section 169.447, subdivision 2a, is amended to read:
103.8 		Subd. 2a.Passenger lap and shoulder belts. (a) In addition to the requirements in 
103.9 	section 169.4501, subdivision 1,:
103.10 	(1) a school bus may be equipped with an approved lap belt or an approved lap and 
103.11 	shoulder belt installed for each passenger-seating position on the bus; and
103.12 	(2) a school motor coach manufactured after July 1, 2012, must be equipped with an 
103.13 	approved lap belt or an approved lap and shoulder belt installed for each passenger-seating 
103.14 	position.
103.15 	(b) The design and installation of lap belts and lap and shoulder belts required 
103.16 	under this paragraph (a) must meet the standards of the commissioner established under
103.17 	this paragraph (b).
103.18 	(b) The commissioner shall consider all concerns necessary to properly integrate 
103.19 	lap belts or lap and shoulder belts into the current compartmentalization safety system 
103.20 	and prescribe standards for the design and installation of lap and shoulder belts required 
103.21 	under paragraph (a). The standards are not subject to chapter 14 and are specifically not 
103.22 	subject to section 14.386.
103.23 	(c) This subdivision does not apply to specially equipped school buses under section 
103.24 	169.4504.
103.25 	(d) A passenger on a school bus or school motor coach equipped with lap belts 
103.26 	or lap and shoulder belts must use these lap belts or lap and shoulder belts unless the 
103.27 	passenger, or if the passenger is a minor, the passenger's parent or guardian, has notified 
103.28 	the school district in writing that the passenger does not intend to wear the lap belt or lap 
103.29 	and shoulder belt.
103.30 	(e) In an action for personal injury or wrongful death against a school district, a 
103.31 	school bus or school motor coach operator under contract with a school district, or any 
103.32 	agent or employee of a school district or operator, or against a volunteer, no such person or 
103.33 	entity shall be held liable solely because the injured party was not wearing a safety belt; 
103.34 	provided, however, that nothing contained herein shall be construed to grant immunity 
103.35 	from liability for failure to:
104.1 	(1) maintain in operating order any equipment required by statute, rule, or school 
104.2 	district policy; or
104.3 	(2) comply with an applicable statute, rule, or school district policy.
104.4 	(f) In an action for personal injury or wrongful death, a school district, a school 
104.5 	bus or school motor coach contract operator, any agent or employee of a school district or 
104.6 	operator, or a volunteer is not liable for failing to assist any child with the adjustment, 
104.7 	fastening, unfastening, or other use of the lap belt or lap and shoulder belt.
104.8 	(g) For purposes of this subdivision, "school motor coach" means a bus that has an 
104.9 	elevated passenger deck located over a baggage compartment, when the vehicle is used 
104.10 	to transport pupils to or from school-related activities, by (1) the school or (2) someone 
104.11 	under an agreement with the school or a school district, including operation under charter 
104.12 	carrier authority.

104.13 	EFFECTIVE DATE. This section is effective July 1, 2012.

104.14 	Sec. 6. Minnesota Statutes 2008, section 169.4503, is amended by adding a subdivision 
104.15 	to read:
104.16 		Subd. 28.Crossing control arm. All buses manufactured for use in Minnesota after 
104.17 	January 1, 2013, shall be equipped with a crossing control arm mounted at the right front 
104.18 	corner of the bumper. The crossing control arm shall be automatically activated whenever 
104.19 	the bus is stopped with the flashing red signals in use.

104.20 	Sec. 7. Minnesota Statutes 2009 Supplement, section 171.02, subdivision 2b, is 
104.21 	amended to read:
104.22 		Subd. 2b.Exception for type III vehicle drivers. (a) Notwithstanding subdivision 
104.23 	2, the holder of a class A, B, C, or D driver's license, without a school bus endorsement, 
104.24 	may operate a type III vehicle described in section 169.011, subdivision 71, paragraph (h), 
104.25 	under the conditions in paragraphs (b) through (o).
104.26 	(b) The operator is an employee of the entity that owns, leases, or contracts for 
104.27 	the school bus.
104.28 	(c) The operator's employer has adopted and implemented a policy that provides for 
104.29 	annual training and certification of the operator in:
104.30 	(1) safe operation of a type III vehicle;
104.31 	(2) understanding student behavior, including issues relating to students with 
104.32 	disabilities;
104.33 	(3) encouraging orderly conduct of students on the bus and handling incidents of 
104.34 	misconduct appropriately;
105.1 	(4) knowing and understanding relevant laws, rules of the road, and local school 
105.2 	bus safety policies;
105.3 	(5) handling emergency situations;
105.4 	(6) proper use of seat belts and child safety restraints;
105.5 	(7) performance of pretrip vehicle inspections; 
105.6 	(8) safe loading and unloading of students, including, but not limited to:
105.7 	(i) utilizing a safe location for loading and unloading students at the curb, on the 
105.8 	nontraffic side of the roadway, or at off-street loading areas, driveways, yards, and other 
105.9 	areas to enable the student to avoid hazardous conditions;
105.10 	(ii) refraining from loading and unloading students in a vehicular traffic lane, on the 
105.11 	shoulder, in a designated turn lane, or a lane adjacent to a designated turn lane;
105.12 	(iii) avoiding a loading or unloading location that would require a pupil to cross a 
105.13 	road, or ensuring that the driver or an aide personally escort the pupil across the road if 
105.14 	it is not reasonably feasible to avoid such a location; and
105.15 	(iv) placing the type III vehicle in "park" during loading and unloading; and
105.16 	(v) escorting a pupil across the road under clause (iii) only after the motor is 
105.17 	stopped, the ignition key is removed, the brakes are set, and the vehicle is otherwise 
105.18 	rendered immobile; and
105.19 	(9) compliance with paragraph (k), concerning reporting certain convictions to the 
105.20 	employer within ten days of the date of conviction.
105.21 	(d) A background check or background investigation of the operator has been 
105.22 	conducted that meets the requirements under section 122A.18, subdivision 8, or 123B.03 
105.23 	for school district employees; section 144.057 or chapter 245C for day care employees; 
105.24 	or section 171.321, subdivision 3, for all other persons operating a type A or type III 
105.25 	vehicle under this subdivision.
105.26 	(e) Operators shall submit to a physical examination as required by section 171.321, 
105.27 	subdivision 2.
105.28 	(f) The operator's employer requires preemployment drug and alcohol testing of 
105.29 	applicants for operator positions. Current operators must comply with the employer's 
105.30 	policy under section 181.951, subdivisions 2, 4, and 5. Notwithstanding any law to the 
105.31 	contrary, the operator's employer may use a Breathalyzer or similar device to fulfill 
105.32 	random or reasonable suspicion alcohol testing requirements.
105.33 	(g) The operator's driver's license is verified annually by the entity that owns, 
105.34 	leases, or contracts for the school bus type III vehicle as required under section 171.321, 
105.35 	subdivision 5.
106.1 	(h) A person who sustains a conviction, as defined under section 609.02, of violating 
106.2 	section 169A.25, 169A.26, 169A.27, or 169A.31, or whose driver's license is revoked 
106.3 	under sections 169A.50 to 169A.53 of the implied consent law, or who is convicted of 
106.4 	violating or whose driver's license is revoked under a similar statute or ordinance of 
106.5 	another state, is precluded from operating a type III vehicle for five years from the date 
106.6 	of conviction.
106.7 	(i) A person who has ever been convicted of a disqualifying offense as defined in 
106.8 	section 171.3215, subdivision 1, paragraph (c), may not operate a type III vehicle under 
106.9 	this subdivision.
106.10 	(j) A person who sustains a conviction, as defined under section 609.02, of a moving 
106.11 	offense in violation of chapter 169 within three years of the first of three other moving 
106.12 	offenses is precluded from operating a type III vehicle for one year from the date of 
106.13 	the last conviction.
106.14 	(k) An operator who sustains a conviction as described in paragraph (h), (i), or (j) 
106.15 	while employed by the entity that owns, leases, or contracts for the school bus, shall report 
106.16 	the conviction to the employer within ten days of the date of the conviction.
106.17 	(l) Students riding the type III vehicle must have training required under section 
106.18 	123B.90, subdivision 2.
106.19 	(m) Documentation of meeting the requirements listed in this subdivision must be 
106.20 	maintained under separate file at the business location for each type III vehicle operator. 
106.21 	The business manager, school board, governing body of a nonpublic school, or any 
106.22 	other entity that owns, leases, or contracts for the type III vehicle operating under this 
106.23 	subdivision is responsible for maintaining these files for inspection.
106.24 	(n) The type III vehicle must bear a current certificate of inspection issued under 
106.25 	section 169.451.
106.26 	(o) An employee of a school or of a school district, who is not employed for the sole 
106.27 	purpose of operating a type III vehicle, is exempt from paragraphs (e) and (f).
106.28 	(p) Notwithstanding any law to the contrary, any person who conducts testing under 
106.29 	paragraph (f) is exempt from section 181.953, subdivisions 9 and 10, paragraph (b).

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

106.31 	Sec. 8. Minnesota Statutes 2008, section 171.321, subdivision 2, is amended to read:
106.32 		Subd. 2.Rules. (a) The commissioner of public safety shall prescribe rules 
106.33 	governing (1) the physical qualifications of school bus drivers and tests required to obtain 
106.34 	a school bus endorsement and (2) the physical qualifications of type III vehicle drivers. 
107.1 	The rules for physical qualifications of type III vehicle drivers are not subject to chapter 
107.2 	14 and section 14.386 does not apply.
107.3 	(b) The rules under paragraph (a) must provide that an applicant for a school 
107.4 	bus endorsement or renewal is exempt from the physical qualifications and medical 
107.5 	examination required to operate a school bus upon providing evidence of being medically 
107.6 	examined and certified within the preceding 24 months as physically qualified to operate a 
107.7 	commercial motor vehicle, pursuant to Code of Federal Regulations, title 49, part 391, 
107.8 	subpart E, or rules of the commissioner of transportation incorporating those federal 
107.9 	regulations. The commissioner shall accept physical examinations for school bus drivers 
107.10 	conducted by medical examiners authorized as provided by Code of Federal Regulations, 
107.11 	title 49, chapter 3, part 391, subpart E.
107.12 	(b) (c) The commissioner of public safety, in conjunction with the commissioner 
107.13 	of education, shall adopt rules prescribing a training program for Head Start bus drivers. 
107.14 	The program must provide for initial classroom and behind-the-wheel training, and annual 
107.15 	in-service training. The program must provide training in defensive driving, human 
107.16 	relations, emergency and accident procedures, vehicle maintenance, traffic laws, and use 
107.17 	of safety equipment. The program must provide that the training will be conducted by the 
107.18 	contract operator for a Head Start agency, the Head Start grantee, a licensed driver training 
107.19 	school, or by another person or entity approved by both commissioners.
107.20 	(d) The commissioner may exempt a type III vehicle driver from the physical 
107.21 	qualifications required to operate a type III vehicle upon receiving evidence of the 
107.22 	driver having been medically examined and certified within the preceding 24 months as 
107.23 	physically qualified to operate a commercial motor vehicle as provided for applicants for a 
107.24 	school bus endorsement under paragraph (b).

107.25 	ARTICLE 8
107.26 	EDUCATION FINANCE REFORM

107.27 	Section 1. Minnesota Statutes 2008, section 123B.53, subdivision 5, is amended to read:
107.28 		Subd. 5.Equalized debt service levy. (a) The equalized debt service levy of a 
107.29 	district equals the sum of the first tier equalized debt service levy and the second tier 
107.30 	equalized debt service levy.
107.31 	(b) A district's first tier equalized debt service levy equals the district's first tier debt 
107.32 	service equalization revenue times the lesser of one or the ratio of:
107.33 	(1) the quotient derived by dividing the adjusted net tax capacity of the district for 
107.34 	the year before the year the levy is certified by the adjusted pupil units in the district for 
107.35 	the school year ending in the year prior to the year the levy is certified; to
108.1 	(2) $3,200 100 percent of the statewide adjusted net tax capacity equalizing factor.
108.2 	(c) A district's second tier equalized debt service levy equals the district's second tier 
108.3 	debt service equalization revenue times the lesser of one or the ratio of:
108.4 	(1) the quotient derived by dividing the adjusted net tax capacity of the district for 
108.5 	the year before the year the levy is certified by the adjusted pupil units in the district for 
108.6 	the school year ending in the year prior to the year the levy is certified; to
108.7 	(2) $8,000 200 percent of the statewide adjusted net tax capacity equalizing factor.

108.8 	EFFECTIVE DATE. This section is effective for taxes payable in 2013 and later.

108.9 	Sec. 2. [123B.555] SCHOOL BOND AGRICULTURAL CREDIT.
108.10 		Subdivision 1.Eligibility. All class 2a, 2b, and 2c property under section 273.13, 
108.11 	subdivision 23, except for property consisting of the house, garage, and immediately 
108.12 	surrounding one acre of land of an agricultural homestead, is eligible to receive the credit 
108.13 	under this section.
108.14 		Subd. 2.Credit amount. For each qualifying property, the school bond agricultural 
108.15 	credit is equal to 66 percent of the property's eligible net tax capacity multiplied by the 
108.16 	school debt tax rate determined under section 275.08, subdivision 1b.
108.17 		Subd. 3.Credit reimbursements. The county auditor shall determine the tax 
108.18 	reductions allowed under this section within the county for each taxes payable year and 
108.19 	shall certify that amount to the commissioner of revenue as a part of the abstracts of tax 
108.20 	lists submitted under section 275.29. Any prior year adjustments shall also be certified on 
108.21 	the abstracts of tax lists. The commissioner shall review the certifications for accuracy, 
108.22 	and may make such changes as are deemed necessary, or return the certification to the 
108.23 	county auditor for correction. The credit under this section must be used to reduce the 
108.24 	school district net tax capacity-based property tax as provided in section 273.1393.
108.25 		Subd. 4.Payment. The commissioner of revenue shall certify the total of the tax 
108.26 	reductions granted under this section for each taxes payable year within each school 
108.27 	district to the commissioner of education, who shall pay the reimbursement amounts to 
108.28 	each school district as provided in section 273.1392.

108.29 	EFFECTIVE DATE. This section is effective for taxes payable in 2013 and later.

108.30 	Sec. 3. Minnesota Statutes 2008, section 124D.4531, as amended by Laws 2009, 
108.31 	chapter 88, article 2, section 1, is amended to read:
108.32 	124D.4531 CAREER AND TECHNICAL LEVY AID.
109.1 		Subdivision 1.Career and technical levy aid. (a) A district with a career and 
109.2 	technical program approved under this section for the fiscal year in which the levy is 
109.3 	certified may levy an amountis eligible for aid equal to the lesser of:
109.4 	(1) $80$240 times the district's average daily membership in grades 10 through 12 
109.5 	for the current fiscal year in which the levy is certified; or
109.6 	(2) 25 percent of approved expenditures in the previous fiscal year in which the 
109.7 	levy is certified for the following:
109.8 	(i) salaries paid to essential, licensed personnel providing direct instructional 
109.9 	services to students in that fiscal year for services rendered in the district's approved 
109.10 	career and technical education programs;
109.11 	(ii) contracted services provided by a public or private agency other than a Minnesota 
109.12 	school district or cooperative center under subdivision 7;
109.13 	(iii) necessary travel between instructional sites by licensed career and technical 
109.14 	education personnel;
109.15 	(iv) necessary travel by licensed career and technical education personnel for 
109.16 	vocational student organization activities held within the state for instructional purposes;
109.17 	(v) curriculum development activities that are part of a five-year plan for 
109.18 	improvement based on program assessment;
109.19 	(vi) necessary travel by licensed career and technical education personnel for 
109.20 	noncollegiate credit-bearing professional development; and
109.21 	(vii) specialized vocational instructional supplies.
109.22 	(b) Up to ten percent of a district's career and technical levyaid may be spent on 
109.23 	equipment purchases. Districts using the career and technical levyaid for equipment 
109.24 	purchases must report to the department on the improved learning opportunities for 
109.25 	students that result from the investment in equipment.
109.26 	(c) The district must recognize the full amount of this levy as revenue for the fiscal 
109.27 	year in which it is certified.
109.28 		Subd. 2.Allocation from cooperative centers and intermediate districts. For 
109.29 	purposes of this section, a cooperative center or an intermediate district must allocate its 
109.30 	approved expenditures for career and technical education programs among participating 
109.31 	districts.
109.32 		Subd. 3.LevyAid guarantee. Notwithstanding subdivision 1, the career and 
109.33 	technical education levyaid for a district is not less than the lesser of:
109.34 	(1) the district's career and technical education levy authorityrevenue for the 
109.35 	previous fiscal year; or
110.1 	(2) 100 percent of the approved expenditures for career and technical programs 
110.2 	included in subdivision 1, paragraph (b), for the prior fiscal year in which the levy is 
110.3 	certified.
110.4 		Subd. 4.District reports. Each district or cooperative center must report data to the 
110.5 	department for all career and technical education programs as required by the department 
110.6 	to implement the career and technical levy formula.
110.7 		Subd. 5.Allocation from districts participating in agreements for secondary 
110.8 	education or interdistrict cooperation. For purposes of this section, a district with a 
110.9 	career and technical program approved under this section that participates in an agreement 
110.10 	under section 123A.30 or 123A.32 must allocate its levy authority under this section 
110.11 	among participating districts.

110.12 	EFFECTIVE DATE. This section is effective for aid payments for fiscal year 
110.13 	2014 and thereafter.

110.14 	Sec. 4. Minnesota Statutes 2008, section 124D.59, subdivision 2, is amended to read:
110.15 		Subd. 2.Pupil of limited English proficiency. (a) "Pupil of limited English 
110.16 	proficiency" means a pupil in kindergarten through grade 12 who meets the following 
110.17 	requirements:
110.18 	(1) the pupil, as declared by a parent or guardian first learned a language other than 
110.19 	English, comes from a home where the language usually spoken is other than English, or 
110.20 	usually speaks a language other than English; and
110.21 	(2) the pupil is determined by developmentally appropriate measures, which might 
110.22 	include observations, teacher judgment, parent recommendations, or developmentally 
110.23 	appropriate assessment instruments, to lack the necessary English skills to participate 
110.24 	fully in classes taught in English.
110.25 	(b) Notwithstanding paragraph (a), a pupil in grades 4 through 12 who was enrolled 
110.26 	in a Minnesota public school on the dates during the previous school year when a 
110.27 	commissioner provided assessment that measures the pupil's emerging academic English 
110.28 	was administered, shall not be counted as a pupil of limited English proficiency in 
110.29 	calculating limited English proficiency pupil units under section 126C.05, subdivision 
110.30 	17, and shall not generate state limited English proficiency aid under section 124D.65, 
110.31 	subdivision 5, unless the pupil scored below the state cutoff score on an assessment 
110.32 	measuring emerging academic English provided by the commissioner during the previous 
110.33 	school year.  
110.34 	(c) Notwithstanding paragraphs (a) and (b), a pupil in kindergarten through grade 12 
110.35 	shall not be counted as a pupil of limited English proficiency in calculating limited English 
111.1 	proficiency pupil units under section 126C.05, subdivision 17, and shall not generate state 
111.2 	limited English proficiency aid under section 124D.65, subdivision 5, if:
111.3 	(1) the pupil is not enrolled during the current fiscal year in an educational program 
111.4 	for pupils of limited English proficiency in accordance with sections 124D.58 to 124D.64; 
111.5 	or.
111.6 	(2) the pupil has generated five or more years of average daily membership in 
111.7 	Minnesota public schools since July 1, 1996.

111.8 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 
111.9 	and later.

111.10 	Sec. 5. Minnesota Statutes 2008, section 124D.65, subdivision 5, is amended to read:
111.11 		Subd. 5.School district LEP revenue. (a) A district's limited English proficiency 
111.12 	programs revenue equals the product of: (1) $700 in fiscal year 2004 and later times .2;
111.13 	(2)  the basic formula allowance for that year; and (3) the greater of 20 or the adjusted 
111.14 	marginal cost average daily membership of eligible pupils of limited English proficiency 
111.15 	enrolled in the district during the current fiscal year.
111.16 	(b) A pupil ceases to generate state limited English proficiency aid in the school 
111.17 	year following the school year in which the pupil attains the state cutoff score on a 
111.18 	commissioner-provided assessment that measures the pupil's emerging academic English.

111.19 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 
111.20 	and later.

111.21 	Sec. 6. Minnesota Statutes 2008, section 125A.76, subdivision 5, is amended to read:
111.22 		Subd. 5.School district special education aid. A school district's special education 
111.23 	aid for fiscal year 2008 and later equals the state total special education aid times the ratio 
111.24 	of the district'sits initial special education aid to the state total initial special education aid.

111.25 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 
111.26 	and later.

111.27 	Sec. 7. Minnesota Statutes 2008, section 125A.79, subdivision 7, is amended to read:
111.28 		Subd. 7.District special education excess cost aid. A district's special education 
111.29 	excess cost aid for fiscal year 2002 and later equals the state total special education excess 
111.30 	cost aid times the ratio of the district's its initial excess cost aid to the state total initial 
111.31 	excess cost aid.

112.1 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 
112.2 	and later.

112.3 	Sec. 8. Minnesota Statutes 2008, section 126C.01, is amended by adding a subdivision 
112.4 	to read:
112.5 		Subd. 2a.Adjusted net tax capacity equalizing factor. The adjusted net tax 
112.6 	capacity equalizing factor equals the quotient derived by dividing the total adjusted net tax 
112.7 	capacity of all school districts in the state for the year before the year the levy is certified 
112.8 	by the total number of adjusted pupil units in the state for the current school year.

112.9 	EFFECTIVE DATE. This section is effective for taxes payable in 2013 and later.

112.10 	Sec. 9. Minnesota Statutes 2008, section 126C.01, is amended by adding a subdivision 
112.11 	to read:
112.12 		Subd. 3a.Referendum market value equalizing factor. The referendum market 
112.13 	value equalizing factor equals the quotient derived by dividing the total referendum 
112.14 	market value of all school districts in the state for the year before the year the levy is 
112.15 	certified by the total number of resident pupil units in the state for the current school year.

112.16 	EFFECTIVE DATE. This section is effective for taxes payable in 2013.

112.17 	Sec. 10. Minnesota Statutes 2008, section 126C.01, is amended by adding a 
112.18 	subdivision to read:
112.19 		Subd. 5a.Location equity index. (a) A school district's location equity index 
112.20 	equals each district's composite wage level divided by the statewide average wage for the 
112.21 	same period. The composite wage level for a school district equals the sum of 50 percent 
112.22 	of the district's county wage level and 50 percent of the district's economic development 
112.23 	region composite wage level. The composite wage level is computed by using the most 
112.24 	recent three-year weighted wage data.
112.25 	(b) A school district's location equity index must not be less than .9 or greater than 
112.26 	1.05.
112.27 	(c) The commissioner of education annually must recalculate the indexes in this 
112.28 	section. For purposes of this subdivision, the commissioner must locate a school district 
112.29 	with boundaries that cross county borders in the county that generates the highest location 
112.30 	equity index for that district.

112.31 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 
112.32 	and later.

113.1 	Sec. 11. Minnesota Statutes 2008, section 126C.05, subdivision 1, is amended to read:
113.2 		Subdivision 1.Pupil unit. Pupil units for each Minnesota resident pupil under the 
113.3 	age of 21 or who meets the requirements of section 120A.20, subdivision 1, paragraph (c), 
113.4 	in average daily membership enrolled in the district of residence, in another district under 
113.5 	sections 123A.05 to 123A.08, 124D.03, 124D.08, or 124D.68; in a charter school under 
113.6 	section 124D.10; or for whom the resident district pays tuition under section 123A.18, 
113.7 	123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, subdivision 4, 124D.04, 
113.8 	124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65, shall be counted according to this 
113.9 	subdivision. 
113.10 	(a) A prekindergarten pupil with a disability who is enrolled in a program approved 
113.11 	by the commissioner and has an individual education plan is counted as the ratio of the 
113.12 	number of hours of assessment and education service to 825 times 1.25 with a minimum 
113.13 	average daily membership of 0.28, but not more than 1.25 pupil units. 
113.14 	(b) A prekindergarten pupil who is assessed but determined not to be disabled is 
113.15 	counted as the ratio of the number of hours of assessment service to 825 times 1.25. 
113.16 	(c) A kindergarten pupil with a disability who is enrolled in a program approved 
113.17 	by the commissioner is counted as the ratio of the number of hours of assessment and 
113.18 	education services required in the fiscal year by the pupil's individual education program 
113.19 	plan to 875, but not more than one.
113.20 	(d) A kindergarten pupil who is not included in paragraph (c) is counted as .612 1.0
113.21 	pupil units.
113.22 	(e) A pupil who is in any of grades 1 to 3 is counted as 1.115 1.0 pupil units for 
113.23 	fiscal year 2000 and thereafter. 
113.24 	(f) A pupil who is any of grades 4 to 6 is counted as 1.06 1.0 pupil units for fiscal 
113.25 	year 1995 and thereafter. 
113.26 	(g) A pupil who is in any of grades 7 to 12 is counted as 1.3 1.0 pupil units.
113.27 	(h) A pupil who is in the postsecondary enrollment options program is counted as 
113.28 	1.3 1.0 pupil units.

113.29 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 
113.30 	and later.

113.31 	Sec. 12. Minnesota Statutes 2008, section 126C.05, subdivision 3, is amended to read:
113.32 		Subd. 3.Compensation revenue pupil units. Compensation revenue pupil units 
113.33 	for fiscal year 1998 and thereafter must be computed according to this subdivision.
113.34 	(a) The compensation revenue concentration percentage for each building in a
113.35 	district equals the product of 100 times the ratio of:
114.1 	(1) the sum of the number of pupils enrolled in the building district eligible to receive 
114.2 	free lunch plus one-half of the pupils eligible to receive reduced pricedor reduced-price 
114.3 	lunch on October 1 of the previous fiscal year; to
114.4 	(2) the number of pupils enrolled in the building district on October 1 of the 
114.5 	previous fiscal year.
114.6 	(b) The compensation revenue pupil weighting factor for a building equals the 
114.7 	lesser of one or the quotient obtained by dividing the building's compensation revenue 
114.8 	concentration percentage by 80.0.
114.9 	(c) The compensation revenue pupil units for a building district equals the product of:
114.10 	(1) the sum of the number of pupils enrolled in the building district eligible to receive 
114.11 	free lunch and one-half of the pupils eligible to receive reduced pricedor reduced-price 
114.12 	lunch on October 1 of the previous fiscal year; times
114.13 	(2) the compensation revenue pupil weighting factor for the building; times
114.14 	(3) .60 district.
114.15 	(d) Notwithstanding paragraphs (a) to (c), for charter schools and contracted 
114.16 	alternative programs in the first year of operation, compensation revenue pupil units shall 
114.17 	be computed using data for the current fiscal year. If the charter school or contracted 
114.18 	alternative program begins operation after October 1, compensatory revenue pupil units 
114.19 	shall be computed based on pupils enrolled on an alternate date determined by the 
114.20 	commissioner, and the compensation revenue pupil units shall be prorated based on the 
114.21 	ratio of the number of days of student instruction to 170 days.
114.22 	(e) The percentages in this subdivision must be based on the count of individual 
114.23 	pupils and not on a building average or minimum.

114.24 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 
114.25 	and later.

114.26 	Sec. 13. Minnesota Statutes 2008, section 126C.05, subdivision 5, is amended to read:
114.27 		Subd. 5.Adjusted pupil units. (a) Adjusted pupil units for a district or charter 
114.28 	school means the sum of:
114.29 	(1) the number of pupil units served, according to subdivision 7, plus
114.30 	(2) pupil units according to subdivision 1 for whom the district or charter school 
114.31 	pays tuition under section 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 
114.32 	123B.88, subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65, 
114.33 	minus 
115.1 	(3) pupil units according to subdivision 1 for whom the district or charter school 
115.2 	receives tuition under section 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 
115.3 	123B.88, subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65. 
115.4 	(b) Adjusted marginal cost pupil units means the greater of:
115.5 	(1) the sum of .77 times the pupil units defined in paragraph (a) for the current school 
115.6 	year and .23 times the pupil units defined in paragraph (a) for the previous school year; or
115.7 	(2) the number of adjusted pupil units defined in paragraph (a) for the current school 
115.8 	year.

115.9 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 
115.10 	and later.

115.11 	Sec. 14. Minnesota Statutes 2008, section 126C.05, subdivision 6, is amended to read:
115.12 		Subd. 6.Resident pupil units. (a) Resident pupil units for a district means the 
115.13 	number of pupil units according to subdivision 1 residing in the district.
115.14 	(b) Resident marginal cost pupil units means the greater of:
115.15 	(1) the sum of .77 times the pupil units defined in paragraph (a) for the current year 
115.16 	and .23 times the pupil units defined in paragraph (a) for the previous school year; or
115.17 	(2) the number of resident pupil units defined in paragraph (a) for the current school 
115.18 	year.

115.19 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 
115.20 	and later.

115.21 	Sec. 15. Minnesota Statutes 2008, section 126C.05, subdivision 8, is amended to read:
115.22 		Subd. 8.Average daily membership. (a) Membership for pupils in grades 
115.23 	kindergarten through 12 and for prekindergarten pupils with disabilities shall mean the 
115.24 	number of pupils on the current roll of the school, counted from the date of entry until 
115.25 	withdrawal. The date of withdrawal shall mean the day the pupil permanently leaves 
115.26 	the school or the date it is officially known that the pupil has left or has been legally 
115.27 	excused. However, a pupil, regardless of age, who has been absent from school for 15 
115.28 	consecutive school days during the regular school year or for five consecutive school days 
115.29 	during summer school or intersession classes of flexible school year programs without 
115.30 	receiving instruction in the home or hospital shall be dropped from the roll and classified 
115.31 	as withdrawn. Nothing in this section shall be construed as waiving the compulsory 
115.32 	attendance provisions cited in section 120A.22. Average daily membership equals the 
115.33 	sum for all pupils of the number of days of the school year each pupil is enrolled in the 
116.1 	district's schools divided by the number of days the schools are in session. Days of 
116.2 	summer school or intersession classes of flexible school year programs are only included 
116.3 	in the computation of membership for pupils with a disability not appropriately served 
116.4 	primarily in the regular classroom. A student must not be counted as more than 1.2 pupils 
116.5 	in average daily membership under this section. When the initial total average daily 
116.6 	membership exceeds 1.2 for a pupil enrolled in more than one school district during the 
116.7 	fiscal year, each district's average daily membership must be reduced proportionately. 
116.8 	(b) A student must not be counted as more than one pupil in average daily 
116.9 	membership except for purposes of section 126C.10, subdivision 2a. 
116.10 	(c) For purposes of section 126C.10, subdivision 2a, only, a pupil's average daily 
116.11 	membership is counted as 1.0 once a kindergarten or elementary pupil has received 960 
116.12 	hours of instruction during the school year and as 1.0 once a secondary student has 
116.13 	received 1,050 hours of instruction during the school year.

116.14 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 
116.15 	and later.

116.16 	Sec. 16. Minnesota Statutes 2008, section 126C.05, subdivision 16, is amended to read:
116.17 		Subd. 16.Free and reduced-price lunches. The commissioner shall determine the 
116.18 	number of children eligible to receive either a free or reduced-price lunch on October 1 
116.19 	each year. Children enrolled in a building on October 1 and determined to be eligible to 
116.20 	receive free or reduced-price lunch by December 15 of that school year shall be counted 
116.21 	as eligible on October 1 for purposes of subdivision 3. The commissioner may use 
116.22 	federal definitions for these purposes and may adjust these definitions as appropriate. 
116.23 	The commissioner may adopt reporting guidelines to assure accuracy of data counts and 
116.24 	eligibility. Districts shall use any guidelines adopted by the commissioner.

116.25 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 
116.26 	and later.

116.27 	Sec. 17. Minnesota Statutes 2008, section 126C.05, subdivision 17, is amended to read:
116.28 		Subd. 17.LEP pupil units. (a) Limited English proficiency pupil units for fiscal 
116.29 	year 2004 and thereafter shall be determined according to this subdivision.
116.30 	(b) The limited English proficiency concentration percentage for a district equals the 
116.31 	product of 100 times the ratio of:
116.32 	(1) means the number of eligible pupils of limited English proficiency in average 
116.33 	daily membership enrolled in the district during the current fiscal year; to.
117.1 	(2) the number of pupils in average daily membership enrolled in the district.
117.2 	(c) The limited English proficiency pupil units for each eligible pupil of limited 
117.3 	English proficiency in average daily membership equals the lesser of one or the quotient 
117.4 	obtained by dividing the limited English proficiency concentration percentage for the 
117.5 	pupil's district of enrollment by 11.5.
117.6 	(d) (b) Limited English proficiency pupil units shall be counted by the district of 
117.7 	enrollment.
117.8 	(e) (c) Notwithstanding paragraph (d) (b), for the purposes of this subdivision, 
117.9 	pupils enrolled in a cooperative or intermediate school district shall be counted by the 
117.10 	district of residence.
117.11 	(f) (d) For the purposes of this subdivision, the terms defined in section 124D.59
117.12 	have the same meaning. 

117.13 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 
117.14 	and later.

117.15 	Sec. 18. [126C.09] EDUCATION FUNDING FRAMEWORK.
117.16 		Subdivision 1.Basic formula framework; general classroom funding. The 
117.17 	general classroom funding for each school district equals the sum of the district's general 
117.18 	education basic revenue, extended time revenue, compensatory revenue, LEP revenue, 
117.19 	referendum replacement revenue, and special education revenue.
117.20 		Subd. 2.District instructional services. A school district's instructional services 
117.21 	revenue equals the sum of its operating sparsity revenue, location equity revenue, and 
117.22 	declining enrollment revenue.
117.23 		Subd. 3.District support services. A school district's support services revenue 
117.24 	equals the sum of its operating capital revenue, alternative facilities revenue, integration 
117.25 	revenue, and transportation revenue.

117.26 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 
117.27 	and later.

117.28 	Sec. 19. Minnesota Statutes 2008, section 126C.10, subdivision 1, is amended to read:
117.29 		Subdivision 1.General education revenue. (a) For fiscal year 2006 and later
117.30 	through 2013, the general education revenue for each district equals the sum of the 
117.31 	district's basic revenue, extended time revenue, gifted and talented revenue, basic skills 
117.32 	revenue, training and experience revenue, secondary sparsity revenue, elementary sparsity 
118.1 	revenue, transportation sparsity revenue, total operating capital revenue, equity revenue, 
118.2 	alternative teacher compensation revenue, and transition revenue.
118.3 	(b) For fiscal years 2014 and later, a school district's general education revenue 
118.4 	equals the sum of its basic revenue, extended time revenue, declining enrollment revenue, 
118.5 	basic skills revenue, location equity revenue, referendum replacement revenue, secondary 
118.6 	sparsity revenue, elementary sparsity revenue, transportation revenue, and total operating 
118.7 	capital revenue.

118.8 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 
118.9 	and later.

118.10 	Sec. 20. Minnesota Statutes 2008, section 126C.10, subdivision 2, is amended to read:
118.11 		Subd. 2.Basic revenue. (a) The basic revenue for each district equals the formula 
118.12 	allowance times the adjusted marginal cost pupil units for the school year. 
118.13 	(b) The formula allowance for fiscal year 2007 is $4,974. The formula allowance for 
118.14 	fiscal year 2008 is $5,074 and the formula allowance for fiscal year 2009 and subsequent 
118.15 	years is $5,124.
118.16 	(c) The formula allowance for fiscal year 2014 is $7,500. The formula allowance 
118.17 	for fiscal year 2015 and later equals the formula allowance for the previous year times 
118.18 	the sum of 1.0 and the greater of zero or the ratio of implicit price deflator, as defined in 
118.19 	section 275.70, subdivision 2, for the most recent year to the implicit price deflator for 
118.20 	the previous year.

118.21 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 
118.22 	and later.

118.23 	Sec. 21. Minnesota Statutes 2008, section 126C.10, subdivision 2a, is amended to read:
118.24 		Subd. 2a.Extended time revenue. (a) A school district's extended time revenue 
118.25 	is equal to the product of $4,601 the formula allowance for that year and the sum of 
118.26 	the adjusted marginal cost pupil units of the district for each pupil in average daily 
118.27 	membership in excess of 1.0 and less than 1.2 according to section 126C.05, subdivision 8. 
118.28 	(b) A school district's extended time revenue may be used for extended day 
118.29 	programs, extended week programs, summer school, and other programming authorized 
118.30 	under the learning year program.

118.31 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 
118.32 	and later.

119.1 	Sec. 22. Minnesota Statutes 2008, section 126C.10, is amended by adding a 
119.2 	subdivision to read:
119.3 		Subd. 2c.Declining enrollment revenue. A school district's declining enrollment 
119.4 	revenue equals the greater of zero or the product of: (1) the basic formula allowance for 
119.5 	that year; and (2) the difference between the mean average adjusted pupil units for the 
119.6 	three preceding years and the adjusted pupil units for the current year.

119.7 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 
119.8 	and later.

119.9 	Sec. 23. Minnesota Statutes 2008, section 126C.10, is amended by adding a 
119.10 	subdivision to read:
119.11 		Subd. 2d.Location equity revenue. A school district's location equity revenue 
119.12 	equals the product of:
119.13 	(1) .50;
119.14 	(2) the basic formula allowance for that year;
119.15 	(3) the district's adjusted pupil units for that year; and
119.16 	(4) the district's location equity index minus .9.

119.17 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 
119.18 	and later.

119.19 	Sec. 24. Minnesota Statutes 2008, section 126C.10, is amended by adding a 
119.20 	subdivision to read:
119.21 		Subd. 2e.Referendum replacement revenue. A school district's referendum 
119.22 	replacement revenue equals $500 times the district's adjusted pupil units for that year.

119.23 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 
119.24 	and later.

119.25 	Sec. 25. Minnesota Statutes 2008, section 126C.10, subdivision 3, is amended to read:
119.26 		Subd. 3.Compensatory education revenue. (a) The compensatory education 
119.27 	revenue for each building in the district equals  the greater of: (1) $2,500 times the district's 
119.28 	enrollment of students eligible for free or reduced-price meals under section 126C.05, 
119.29 	subdivision 3, paragraph (a), clause (1); or (2) 40 percent of the formula allowance minus 
119.30 	$415 times the compensation revenue pupil units computed according to section 126C.05, 
119.31 	subdivision 3. Revenue shall be paid to the district and must be allocated according to 
119.32 	section 126C.15, subdivision 2. 
120.1 	(b) When the district contracting with an alternative program under section 124D.69
120.2 	changes prior to the start of a school year, the compensatory revenue generated by pupils 
120.3 	attending the program shall be paid to the district contracting with the alternative program 
120.4 	for the current school year, and shall not be paid to the district contracting with the 
120.5 	alternative program for the prior school year. 
120.6 	(c) When the fiscal agent district for an area learning center changes prior to the start 
120.7 	of a school year, the compensatory revenue shall be paid to the fiscal agent district for the 
120.8 	current school year, and shall not be paid to the fiscal agent district for the prior school year.

120.9 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 
120.10 	and later.

120.11 	Sec. 26. Minnesota Statutes 2008, section 126C.10, subdivision 4, is amended to read:
120.12 		Subd. 4.Basic skills revenue. A school district's basic skills revenue equals the 
120.13 	sum of:
120.14 	(1) compensatory revenue under subdivision 3; plus
120.15 	(2) limited English proficiency revenue under section 124D.65, subdivision 5; plus.
120.16 	(3) $250 times the limited English proficiency pupil units under section 126C.05, 
120.17 	subdivision 17.

120.18 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 
120.19 	and later.

120.20 	Sec. 27. Minnesota Statutes 2008, section 126C.10, subdivision 6, is amended to read:
120.21 		Subd. 6.Definitions. The definitions in this subdivision apply only to subdivisions 
120.22 	7 and 8.
120.23 	(a) "High school" means a public secondary school, except a charter school under 
120.24 	section 124D.10, that has pupils enrolled in at least the 10th, 11th, and 12th grades. If 
120.25 	there is no high school in the district and the school is at least 19 15 miles from the next 
120.26 	nearest school, the commissioner must designate one school in the district as a high school 
120.27 	for the purposes of this section.
120.28 	(b) "Secondary average daily membership" means, for a district that has only one 
120.29 	high school, the average daily membership of pupils served in grades 7 through 12. For a 
120.30 	district that has more than one high school, "secondary average daily membership" for 
120.31 	each high school means the product of the average daily membership of pupils served in 
120.32 	grades 7 through 12 in the high school, times the ratio of six to the number of grades 
120.33 	in the high school.
121.1 	(c) "Attendance area" means the total surface area of the district, in square miles, 
121.2 	divided by the number of high schools in the district. For a district that does not operate 
121.3 	a high school and is less than 19 15 miles from the nearest operating high school, the 
121.4 	attendance area equals zero.
121.5 	(d) "Isolation index" for a high school means the square root of 55 percent of the 
121.6 	attendance area plus the distance in miles, according to the usually traveled routes, 
121.7 	between the high school and the nearest high school. For a district in which there is located 
121.8 	land defined in section 84A.01, 84A.20, or 84A.31, the distance in miles is the sum of: 
121.9 	(1) the square root of one-half of the attendance area; and
121.10 	(2) the distance from the border of the district to the nearest high school.
121.11 	(e) "Qualifying high school" means a high school that has an isolation index greater 
121.12 	than 23 and that has secondary average daily membership of less than 400.
121.13 	(f) "Qualifying elementary school" means a public elementary school, except a 
121.14 	charter school under section 124D.10, that is located 19 15 miles or more from the nearest 
121.15 	elementary school or from the nearest elementary school within the district and, in either 
121.16 	case, has an elementary average daily membership of an average of 20 or fewer per grade.
121.17 	(g) "Elementary average daily membership" means, for a district that has only 
121.18 	one elementary school, the average daily membership of pupils served in kindergarten 
121.19 	through grade 6. For a district that has more than one elementary school, "average daily 
121.20 	membership" for each school means the average daily membership of pupils served in 
121.21 	kindergarten through grade 6 multiplied by the ratio of seven to the number of grades 
121.22 	in the elementary school.

121.23 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 
121.24 	and later.

121.25 	Sec. 28. Minnesota Statutes 2008, section 126C.10, subdivision 13, is amended to read:
121.26 		Subd. 13.Total operating capital and technology revenue. (a) Total operating 
121.27 	capital revenue for a district equals: (1) $50 times the adjusted pupil units for the school 
121.28 	year for technology purposes; (2) for any district not participating in the alternative 
121.29 	facilities program under section 123B.59, $600 times the adjusted pupil units for deferred 
121.30 	maintenance and health and safety purposes under sections 123B.57 and 123B.59; (3) the 
121.31 	amount determined under paragraph (b) or (c), plus $73; and (4) $100 times the adjusted 
121.32 	marginal cost pupil units for the school year. The revenue must be placed in a reserved 
121.33 	account in the general fund and may only be used according to subdivision 14.
121.34 	(b) Capital revenue for a district equals $100 times the district's maintenance cost 
121.35 	index times its adjusted marginal cost pupil units for the school year.
122.1 	(c) The revenue for a district that operates a program under section 124D.128, is 
122.2 	increased by an amount equal to $30 times the number of marginal cost adjusted pupil 
122.3 	units served at the site where the program is implemented.

122.4 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 
122.5 	and later.

122.6 	Sec. 29. Minnesota Statutes 2008, section 126C.10, subdivision 14, is amended to read:
122.7 		Subd. 14.Uses of total operating capital revenue. Technology revenue may only 
122.8 	be used for purposes in clauses (18), (19), (21), (23), and (24). Total operating capital 
122.9 	revenue may be used only for the following purposes:
122.10 	(1) to acquire land for school purposes;
122.11 	(2) to acquire or construct buildings for school purposes;
122.12 	(3) to rent or lease buildings, including the costs of building repair or improvement 
122.13 	that are part of a lease agreement;
122.14 	(4) to improve and repair school sites and buildings, and equip or reequip school 
122.15 	buildings with permanent attached fixtures, including library media centers;
122.16 	(5) for a surplus school building that is used substantially for a public nonschool 
122.17 	purpose;
122.18 	(6) to eliminate barriers or increase access to school buildings by individuals with a 
122.19 	disability;
122.20 	(7) to bring school buildings into compliance with the State Fire Code adopted 
122.21 	according to chapter 299F;
122.22 	(8) to remove asbestos from school buildings, encapsulate asbestos, or make 
122.23 	asbestos-related repairs;
122.24 	(9) to clean up and dispose of polychlorinated biphenyls found in school buildings;
122.25 	(10) to clean up, remove, dispose of, and make repairs related to storing heating fuel 
122.26 	or transportation fuels such as alcohol, gasoline, fuel oil, and special fuel, as defined 
122.27 	in section 296A.01; 
122.28 	(11) for energy audits for school buildings and to modify buildings if the audit 
122.29 	indicates the cost of the modification can be recovered within ten years;
122.30 	(12) to improve buildings that are leased according to section 123B.51, subdivision 4; 
122.31 	(13) to pay special assessments levied against school property but not to pay 
122.32 	assessments for service charges;
122.33 	(14) to pay principal and interest on state loans for energy conservation according to 
122.34 	section 216C.37 or loans made under the Douglas J. Johnson Economic Protection Trust 
122.35 	Fund Act according to sections 298.292 to 298.298; 
123.1 	(15) to purchase or lease interactive telecommunications equipment;
123.2 	(16) by board resolution, to transfer money into the debt redemption fund to: (i) 
123.3 	pay the amounts needed to meet, when due, principal and interest payments on certain 
123.4 	obligations issued according to chapter 475; or (ii) pay principal and interest on debt 
123.5 	service loans or capital loans according to section 126C.70; 
123.6 	(17) to pay operating capital-related assessments of any entity formed under a 
123.7 	cooperative agreement between two or more districts;
123.8 	(18) to purchase or lease computers and related materials, copying machines, 
123.9 	telecommunications equipment, and other noninstructional equipment;
123.10 	(19) to purchase or lease assistive technology or equipment for instructional 
123.11 	programs;
123.12 	(20) to purchase textbooks;
123.13 	(21) to purchase new and replacement library media resources or technology;
123.14 	(22) to purchase vehicles;
123.15 	(23) to purchase or lease telecommunications equipment, computers, and related 
123.16 	equipment for integrated information management systems for:
123.17 	(i) managing and reporting learner outcome information for all students under a 
123.18 	results-oriented graduation rule;
123.19 	(ii) managing student assessment, services, and achievement information required 
123.20 	for students with individual education plans; and
123.21 	(iii) other classroom information management needs; and
123.22 	(24) to pay personnel costs directly related to the acquisition, operation, and 
123.23 	maintenance of telecommunications systems, computers, related equipment, and network 
123.24 	and applications software.

123.25 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014.

123.26 	Sec. 30. Minnesota Statutes 2008, section 126C.10, subdivision 18, is amended to read:
123.27 		Subd. 18.Transportation sparsity revenue allowance. (a) A district's 
123.28 	transportation sparsity allowance equals the greater of zero or the result of the following 
123.29 	computation:
123.30 	(i) Multiply the formula allowance according to subdivision 2, by .1469.
123.31 	(ii) Multiply the result in clause (i) by the district's sparsity index raised to the 
123.32 	26/100 power.
123.33 	(iii) Multiply the result in clause (ii) by the district's density index raised to the 
123.34 	13/100 power.
123.35 	(iv) Multiply the formula allowance according to subdivision 2, by .0485.
124.1 	(v) Subtract the result in clause (iv) from the result in clause (iii).
124.2 	(b) Transportation sparsity revenue is equal to the transportation sparsity allowance 
124.3 	times the adjusted marginal cost pupil units.

124.4 	EFFECTIVE DATE. This section is effective for fiscal year 2014 and later.

124.5 	Sec. 31. Minnesota Statutes 2008, section 126C.10, is amended by adding a 
124.6 	subdivision to read:
124.7 		Subd. 18a.Transportation revenue. (a) A school district's transportation revenue 
124.8 	equals the sum of its transportation sparsity revenue, hazardous transportation revenue, 
124.9 	and bus purchase revenue.
124.10 	(b) A school district's transportation sparsity revenue equals its transportation 
124.11 	sparsity allowance times its adjusted pupil units for that year.
124.12 	(c) A school district's hazardous transportation aid equals the amount necessary to 
124.13 	provide transportation services to students facing hazardous transportation conditions. A 
124.14 	district's hazardous transportation aid must not exceed 20 percent of the district's total 
124.15 	regular to and from school transportation costs for that year. For any year, a school 
124.16 	district may receive aid under this paragraph only after the school board has considered 
124.17 	the comprehensive plan for hazardous transportation submitted by the district's pupil 
124.18 	transportation safety committee at a regularly scheduled meeting of the school board.  The 
124.19 	comprehensive plan may not be adopted until after the board has allowed the public 
124.20 	reasonable time to testify on the plan.
124.21 	(d) A school district's bus purchase revenue equals five percent of the district's 
124.22 	spending on transportation services for the previous fiscal year.

124.23 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 
124.24 	and later.

124.25 	Sec. 32. [126C.115] INNOVATION REVENUE.
124.26 	(a) A school district must use its innovation revenue to implement evidence-based 
124.27 	innovation premised on research-based curriculum and instruction and other education 
124.28 	programs and practices, including best teaching practices, that are known to improve 
124.29 	academic performance for diverse groups of students. If a school district demonstrates 
124.30 	low growth and needs to improve students' current achievement and educational growth, 
124.31 	as measured by a growth-based value-added system under section 120B.35, the school 
124.32 	district must submit a plan to the commissioner, developed in consultation with interested 
124.33 	parents, that describes how the district proposes to use its innovation revenue to 
125.1 	supplement state reading requirements under section 120B.12, subdivision 1, and state 
125.2 	math and science requirements under section 120B.023, subdivision 2, paragraphs (b) and 
125.3 	(d), and improve student outcomes. The plan must:
125.4 	(1) identify specific education goals, consistent with this section, and the indicators 
125.5 	to demonstrate progress toward achieving those goals, which may include a value-added 
125.6 	assessment model under sections 120B.35 and 120B.362;
125.7 	(2) supplement current district initiatives that may transform district programs, 
125.8 	practices, and processes sufficient to significantly improve student outcomes, which 
125.9 	may include, among other initiatives, an organizational assessment and performance 
125.10 	improvement process under section 120B.3625; and
125.11 	(3) demonstrate how innovation revenue helps narrow and eliminate differences in 
125.12 	student academic achievement in reading, math, and science based on student measures of 
125.13 	mobility, attendance, race and ethnicity, gender, English language learner status, eligibility 
125.14 	for free or reduced price lunch, and special education, among other outcomes.
125.15 	(b) After transmitting its plan to the commissioner, a district must spend its 
125.16 	innovation revenue effectively and efficiently, consistent with its plan. A school district 
125.17 	that submits an innovation revenue plan under paragraph (a) must report annually by June 
125.18 	30 to the commissioner and post on the district's official Web site reliable and accessible 
125.19 	information and supporting longitudinal data showing the amount of progress the district 
125.20 	made in the immediately preceding school year and previous school years in realizing its 
125.21 	innovation revenue goals. The commissioner must analyze the data from the annual 
125.22 	district reports and post the analysis on the department's official Web site.

125.23 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 
125.24 	and later.

125.25 	Sec. 33. Minnesota Statutes 2008, section 126C.13, subdivision 4, is amended to read:
125.26 		Subd. 4.General education aid. For fiscal years 2007 and later, A district's general 
125.27 	education aid is the sum of the following amounts equals its:
125.28 	(1) general education revenue, excluding equity revenue, total operating capital 
125.29 	revenue, alternative teacher compensation revenue, and transition revenue;
125.30 	(2) operating capital aid under section 126C.10, subdivision 13b;
125.31 	(3) equity aid under section 126C.10, subdivision 30;
125.32 	(4) alternative teacher compensation aid under section 126C.10, subdivision 36;
125.33 	(5) transition aid under section 126C.10, subdivision 33 for that year;
125.34 	(6) (2) shared time aid under section 126C.01, subdivision 7;
125.35 	(7) (3) referendum aid under section 126C.17, subdivisions 7 and 7a; and
126.1 	(8) (4) online learning aid according to section 124D.096.

126.2 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 
126.3 	and later.

126.4 	Sec. 34. Minnesota Statutes 2008, section 126C.13, subdivision 5, is amended to read:
126.5 		Subd. 5.Uses of revenue. Except as provided in sections 126C.10, subdivision 
126.6 	14; 126C.12; and 126C.15, (a) General education revenue may be used during the 
126.7 	regular school year and the summer for general and special school purposes and for 
126.8 	prekindergarten programs except as limited by paragraph (b).  
126.9 	(b) General education revenue set-asides include:
126.10 	(1) 1.0 percent of basic revenue must be used only for gifted and talented activities 
126.11 	consistent with section 120B.15;
126.12 	(2) 5.0 percent of basic revenue must be used only to implement a district's 
126.13 	innovative revenue program activities under section 126C.115;
126.14 	(3) basic skills revenue must be used according to section 126C.15; and
126.15 	(4) operating capital revenue must be spent according to section 126C.10, 
126.16 	subdivision 14.

126.17 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 
126.18 	and later.

126.19 	Sec. 35. Minnesota Statutes 2008, section 126C.17, subdivision 1, is amended to read:
126.20 		Subdivision 1.Referendum allowance. (a) For fiscal year 2003 and later, a district's 
126.21 	initial referendum revenue allowance equals the sum of the allowance under section 
126.22 	126C.16, subdivision 2, plus any additional allowance per resident marginal cost pupil 
126.23 	unit authorized under subdivision 9 before May 1, 2001, for fiscal year 2002 and later, 
126.24 	plus the referendum conversion allowance approved under subdivision 13, minus $415. 
126.25 	For districts with more than one referendum authority, the reduction must be computed 
126.26 	separately for each authority. The reduction must be applied first to the referendum 
126.27 	conversion allowance and next to the authority with the earliest expiration date. A 
126.28 	district's initial referendum revenue allowance may not be less than zero. 
126.29 	(b) For fiscal year 2003, a district's referendum revenue allowance equals the initial 
126.30 	referendum allowance plus any additional allowance per resident marginal cost pupil unit 
126.31 	authorized under subdivision 9 between April 30, 2001, and December 30, 2001, for 
126.32 	fiscal year 2003 and later.
127.1 	(c) For fiscal year 2004 and later, A district's referendum revenue allowance equals 
127.2 	the sum of:
127.3 	(1) the product of (i) the ratio of the resident marginal cost pupil units the district 
127.4 	would have counted for fiscal year 2004 under Minnesota Statutes 2002, section 126C.05, 
127.5 	to the district's resident marginal cost pupil units for fiscal year 2004, times (ii) the greater 
127.6 	of zero or the district's initial referendum allowance plus any additional allowance per 
127.7 	resident marginal cost pupil unit authorized under subdivision 9 between April 30, 2001, 
127.8 	and May 30, 2003, for fiscal year 2003 and later 2014 less $500, plus 
127.9 	(2) any additional allowance per resident marginal cost pupil unit authorized under 
127.10 	subdivision 9 after May 30, 2003 2012, for fiscal year 2005 2014 and later.

127.11 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 
127.12 	and later.

127.13 	Sec. 36. Minnesota Statutes 2008, section 126C.17, subdivision 5, is amended to read:
127.14 		Subd. 5.Referendum equalization revenue. (a) For fiscal year 2003 and later,
127.15 	A district's referendum equalization revenue equals the sum of the first tier referendum 
127.16 	equalization revenue and the second tier referendum equalization revenue.
127.17 	(b) A district's first tier referendum equalization revenue equals the district's first 
127.18 	tier referendum equalization allowance times the district's resident marginal cost pupil 
127.19 	units for that year.
127.20 	(c) For fiscal year 2006, a district's first tier referendum equalization allowance 
127.21 	equals the lesser of the district's referendum allowance under subdivision 1 or $500. For 
127.22 	fiscal year 2007, a district's first tier referendum equalization allowance equals the lesser 
127.23 	of the district's referendum allowance under subdivision 1 or $600.
127.24 	For fiscal year 2008 and later, (b)  A district's first tier referendum equalization 
127.25 	allowance equals the lesser of the district's referendum allowance under subdivision 1 
127.26 	or $700.
127.27 	(d) (c) A district's second tier referendum equalization revenue equals the district's 
127.28 	second tier referendum equalization allowance times the district's resident marginal cost 
127.29 	pupil units for that year.
127.30 	(e) For fiscal year 2006, a district's second tier referendum equalization allowance 
127.31 	equals the lesser of the district's referendum allowance under subdivision 1 or 18.6 percent 
127.32 	of the formula allowance, minus the district's first tier referendum equalization allowance. 
127.33 	For fiscal year 2007 and later, (d) A district's second tier referendum equalization 
127.34 	allowance equals the lesser of the district's referendum allowance under subdivision 1 or 
128.1 	26 percent of the formula allowance, minus the district's first tier referendum equalization 
128.2 	allowance.
128.3 	(f)  (e) Notwithstanding paragraph (e) (d), the second tier referendum allowance for a 
128.4 	district qualifying for secondary sparsity revenue under section 126C.10, subdivision 7, or 
128.5 	elementary sparsity revenue under section 126C.10, subdivision 8, equals the district's 
128.6 	referendum allowance under subdivision 1 minus the district's first tier referendum 
128.7 	equalization allowance.

128.8 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014.

128.9 	Sec. 37. Minnesota Statutes 2008, section 126C.17, subdivision 6, is amended to read:
128.10 		Subd. 6.Referendum equalization levy. (a) For fiscal year 2003 and later,
128.11 	A district's referendum equalization levy equals the sum of the first tier referendum 
128.12 	equalization levy and the second tier referendum equalization levy.
128.13 	(b) A district's first tier referendum equalization levy equals the district's first tier 
128.14 	referendum equalization revenue times the lesser of one or the ratio of the district's 
128.15 	referendum market value per resident marginal cost pupil unit to $476,000 100 percent of 
128.16 	the statewide referendum market value equalizing factor.
128.17 	(c) A district's second tier referendum equalization levy equals the district's second 
128.18 	tier referendum equalization revenue times the lesser of one or the ratio of the district's 
128.19 	referendum market value per resident marginal cost pupil unit to $270,000 60 percent of 
128.20 	the statewide referendum market value equalizing factor.

128.21 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014.

128.22 	Sec. 38. Minnesota Statutes 2008, section 126C.20, is amended to read:
128.23 	126C.20 ANNUAL GENERAL EDUCATION AID APPROPRIATION.
128.24 	There is annually appropriated from the general fund to the department the amount
128.25 	amounts necessary for: (1) general education aid; (2) special education aid; (3) debt 
128.26 	service aid; and (4) the school bond agricultural credit. This amount These amounts must 
128.27 	be reduced by the amount of any money specifically appropriated for the same purpose 
128.28 	in any year from any state fund.

128.29 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 
128.30 	and later.

128.31 	Sec. 39. Minnesota Statutes 2008, section 126C.40, subdivision 1, is amended to read:
129.1 		Subdivision 1.To lease building or land. (a) When an independent or a special 
129.2 	school district or a group of independent or special school districts finds it economically 
129.3 	advantageous to rent or lease a building or land for any instructional purposes or 
129.4 	administrative purpose, or for school storage or furniture repair, and it determines that 
129.5 	the operating capital revenue authorized under section 126C.10, subdivision 13, is 
129.6 	insufficient for this purpose, it may apply to the commissioner for permission to make 
129.7 	an additional capital expenditure levy for this purpose. An application for permission to 
129.8 	levy under this subdivision must contain financial justification for the proposed levy, the 
129.9 	terms and conditions of the proposed lease, and a description of the space to be leased 
129.10 	and its proposed use.
129.11 	(b) The criteria for approval of applications to levy under this subdivision must 
129.12 	include: the reasonableness of the price, the appropriateness of the space to the proposed 
129.13 	activity, the feasibility of transporting pupils to the leased building or land, conformity 
129.14 	of the lease to the laws and rules of the state of Minnesota, and the appropriateness of 
129.15 	the proposed lease to the space needs and the financial condition of the district. The 
129.16 	commissioner must not authorize a levy under this subdivision in an amount greater than 
129.17 	the cost to the district of renting or leasing a building or land for approved purposes. 
129.18 	The proceeds of this levy must not be used for custodial or other maintenance services. 
129.19 	A district may not levy under this subdivision for the purpose of leasing or renting a 
129.20 	district-owned building or site to itself.
129.21 	(c) For agreements finalized after July 1, 1997, a district may not levy under this 
129.22 	subdivision for the purpose of leasing: (1) a newly constructed building used primarily 
129.23 	for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed 
129.24 	building addition or additions used primarily for regular kindergarten, elementary, or 
129.25 	secondary instruction that contains more than 20 percent of the square footage of the 
129.26 	previously existing building.
129.27 	(d) Notwithstanding paragraph (b), a district may levy under this subdivision for the 
129.28 	purpose of leasing or renting a district-owned building or site to itself only if the amount 
129.29 	is needed by the district to make payments required by a lease purchase agreement, 
129.30 	installment purchase agreement, or other deferred payments agreement authorized by law, 
129.31 	and the levy meets the requirements of paragraph (c). A levy authorized for a district by 
129.32 	the commissioner under this paragraph may be in the amount needed by the district to 
129.33 	make payments required by a lease purchase agreement, installment purchase agreement, 
129.34 	or other deferred payments agreement authorized by law, provided that any agreement 
129.35 	include a provision giving the school districts the right to terminate the agreement 
129.36 	annually without penalty.
130.1 	(e) The total levy under this subdivision for a district for any year must not exceed 
130.2 	$150 times the resident pupil units for the fiscal year to which the levy is attributable.
130.3 	(f) For agreements for which a review and comment have been submitted to the 
130.4 	Department of Education after April 1, 1998, the term "instructional purpose" as used in 
130.5 	this subdivision excludes expenditures on stadiums.
130.6 	(g) The commissioner of education may authorize a school district to exceed the 
130.7 	limit in paragraph (e) if the school district petitions the commissioner for approval. The 
130.8 	commissioner shall grant approval to a school district to exceed the limit in paragraph (e) 
130.9 	for not more than five years if the district meets the following criteria:
130.10 	(1) the school district has been experiencing pupil enrollment growth in the 
130.11 	preceding five years;
130.12 	(2) the purpose of the increased levy is in the long-term public interest;
130.13 	(3) the purpose of the increased levy promotes colocation of government services; 
130.14 	and
130.15 	(4) the purpose of the increased levy is in the long-term interest of the district by 
130.16 	avoiding over construction of school facilities.
130.17 	(h) A school district that is a member of an intermediate school district may include 
130.18 	in its authority under this section the costs associated with leases of administrative and 
130.19 	classroom space for intermediate school district programs. This authority must not 
130.20 	exceed $43 $50 times the adjusted marginal cost pupil units of the member districts. This 
130.21 	authority is in addition to any other authority authorized under this section.
130.22 	(i) In addition to the allowable capital levies in paragraph (a), a district that is a 
130.23 	member of the "Technology and Information Education Systems" data processing joint 
130.24 	board, that finds it economically advantageous to enter into a lease purchase agreement for 
130.25 	a building for a group of school districts or special school districts for staff development 
130.26 	purposes, may levy for its portion of lease costs attributed to the district within the total 
130.27 	levy limit in paragraph (e).

130.28 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 
130.29 	and later.

130.30 	Sec. 40. Minnesota Statutes 2008, section 127A.51, is amended to read:
130.31 	127A.51 STATEWIDE AVERAGE REVENUE.
130.32 	By October 1 of each year the commissioner must estimate the statewide average 
130.33 	adjusted general revenue per adjusted marginal cost pupil unit and the disparity in adjusted 
130.34 	general revenue among pupils and districts by computing the ratio of the 95th percentile 
131.1 	to the fifth percentile of adjusted general revenue. The commissioner must provide that 
131.2 	information to all districts.
131.3 	If the disparity in adjusted general revenue as measured by the ratio of the 95th 
131.4 	percentile to the fifth percentile increases in any year, the commissioner shall recommend 
131.5 	to the legislature options for change in the general education formula that will limit the 
131.6 	disparity in adjusted general revenue to no more than the disparity for the previous 
131.7 	school year. The commissioner must submit the recommended options to the education 
131.8 	committees of the legislature by January 15.
131.9 	For purposes of this section and section 126C.10, adjusted general revenue means:  
131.10 	(1) for fiscal year 2002, the sum of basic revenue under section 126C.10, subdivision 
131.11 	2; supplemental revenue under section 126C.10, subdivisions 9 and 12; transition revenue 
131.12 	under section 126C.10, subdivision 20; referendum revenue under section 126C.17; and 
131.13 	equity revenue under section 126C.10, subdivisions 24a and 24b; and
131.14 	(2) for fiscal year 2003 and later through 2013, the sum of basic revenue under 
131.15 	section 126C.10, subdivision 2; referendum revenue under section 126C.17; and equity 
131.16 	revenue under section 126C.10, subdivisions 24a and 24b.; and
131.17 	(3) for fiscal year 2014 and later, the sum of basic revenue under section 126C.10, 
131.18 	subdivision 2, and referendum revenue under section 126C.17.

131.19 	EFFECTIVE DATE. This section is effective for fiscal year 2014 and later.

131.20 	Sec. 41. PHASE-IN.
 131.21 		Subdivision 1.Baseline revenue. A school district's baseline revenue equals the 
131.22 	revenue amounts for the aid appropriations calculated under Minnesota Statutes, section 
131.23 	126C.20, calculated using the current year's data and the revenue formulas in place in 
131.24 	Minnesota Statutes 2008.
131.25 		Subd. 2.New revenue. A school district's new revenue equals the revenue amounts 
131.26 	for the aid appropriations calculated under Minnesota Statutes, section 126C.20, calculated 
131.27 	using the current year's data and the revenue formulas in place under this act.
131.28 		Subd. 3.Phase-in schedule. A school district's revenue amounts for the revenue 
131.29 	formulas listed in subdivisions 1 and 2 equals the district's baseline revenue plus the 
131.30 	percent of the difference specified in subdivision 6 multiplied by the number of years 
131.31 	of the phase in specified in subdivision 7.
131.32 		Subd. 4.Aid. A school district's aid entitlement for the formulas listed under 
131.33 	this act equals the district's baseline aid plus the phase-in percentage times the new aid 
131.34 	amounts calculated under this act.
132.1 		Subd. 5.Levy. A school district levy for the formulas listed in this act equals the 
132.2 	levy for the same formulas calculated under Minnesota Statutes 2008, and the phase-in 
132.3 	percentage times the new revenue amounts for the levy calculated under this act.
132.4 		Subd. 6.Percentage. The phase-in percentage equals 25 percent.
132.5 		Subd. 7.Years of phase-in. The new revenue under this section is phased in over 
132.6 	four years.

132.7 	EFFECTIVE DATE. This section is effective July 1, 2013.

132.8 	Sec. 42. REVISOR'S INSTRUCTION.
 132.9 	In the year 2014 and subsequent editions of Minnesota Statutes, the revisor of statutes 
132.10 	shall change all references to "adjusted marginal cost pupil units" to "adjusted pupil units" 
132.11 	and all references to "resident marginal cost pupil units" to "resident pupil units."

132.12 	EFFECTIVE DATE. This section is effective July 1, 2013.

132.13 	Sec. 43.  REPEALER.
 132.14 	(a) Minnesota Statutes 2008, sections 123B.57, subdivisions 3, 4, and 5; 123B.591; 
132.15 	125A.76, subdivision 4; 125A.79, subdivision 6; 126C.10, subdivisions 2b, 13a, 13b, 
132.16 	25, 26, 27, 28, 29, 30, 31, 31a, 31b, 32, 33, 35, and 36; 126C.12; 126C.126; 126C.17, 
132.17 	subdivision 9a; and 127A.50, are repealed.
132.18 	(b) Minnesota Statutes 2009 Supplement, sections 123B.54; and 126C.10, 
132.19 	subdivisions 24 and 34, are repealed.

132.20 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014.

132.21 	ARTICLE 9
132.22 	FORECAST ADJUSTMENTS

132.23 	Section 1. Minnesota Statutes 2009 Supplement, section 123B.54, is amended to read:
132.24 	123B.54 DEBT SERVICE APPROPRIATION.
132.25 	(a) $9,109,000 in fiscal year 2009, $7,948,000 $6,608,000 in fiscal year 2010, 
132.26 	$9,275,000 $8,465,000 in fiscal year 2011, $9,574,000 $16,900,000 in fiscal year 2012, 
132.27 	and $8,904,000 $19,175,000 in fiscal year 2013 and later are appropriated from the 
132.28 	general fund to the commissioner of education for payment of debt service equalization 
132.29 	aid under section 123B.53.
132.30 	(b) The appropriations in paragraph (a) must be reduced by the amount of any 
132.31 	money specifically appropriated for the same purpose in any year from any state fund.

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

133.2 	Sec. 2. Laws 2009, chapter 96, article 4, section 12, subdivision 3, is amended to read:
133.3 		Subd. 3.Debt service equalization. For debt service aid according to Minnesota 
133.4 	Statutes, section 123B.53, subdivision 6:

133.5
133.6		$
	7,948,000
6,608,000
	.....
	2010
	
133.7
133.8		$
	9,275,000
8,465,000
	.....
	2011
	
133.9 	The 2010 appropriation includes $851,000 for 2009 and $7,097,000 $5,757,000
133.10 	for 2010.
133.11 	The 2011 appropriation includes $788,000 $2,128,000 for 2010 and $8,487,000
133.12 	$6,337,000 for 2011.

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

133.14 	Sec. 3. Laws 2009, chapter 96, article 5, section 13, subdivision 4, is amended to read:
133.15 		Subd. 4.Kindergarten milk. For kindergarten milk aid under Minnesota Statutes, 
133.16 	section 124D.118:

133.17
133.18		$
	1,098,000
1,104,000
	.....
	2010
	
133.19
133.20		$
	1,120,000
1,126,000
	.....
	2011

133.21 	ARTICLE 10
133.22 	EARLY CHILDHOOD EDUCATION, PREVENTION, SELF-SUFFICIENCY, 
133.23 	AND LIFELONG LEARNING

133.24 	Section 1. Minnesota Statutes 2008, section 121A.16, is amended to read:
133.25 	121A.16 EARLY CHILDHOOD HEALTH AND DEVELOPMENT 
133.26 	SCREENING; PURPOSE.
133.27 	The legislature finds that early detection of children's health and developmental 
133.28 	problems can reduce their later need for costly care, minimize their physical and 
133.29 	educational disabilities, and aid in their rehabilitation. The purpose of sections 121A.16
133.30 	to 121A.19 is to assist parents and communities in improving the health of Minnesota 
133.31 	children and in planning educational and health programs. Charter schools that elect to 
133.32 	provide a screening program must comply with the requirements of sections 121A.16 to 
133.33 	121A.19.

134.1 	Sec. 2. Minnesota Statutes 2008, section 121A.17, subdivision 5, is amended to read:
134.2 		Subd. 5.Developmental screening program information. The board must inform 
134.3 	each resident family with a child eligible to participate in the developmental screening 
134.4 	program, and a charter school that provides screening must inform families that apply 
134.5 	for admission to the charter school, about the availability of the program and the state's 
134.6 	requirement that a child receive a developmental screening or provide health records 
134.7 	indicating that the child received a comparable developmental screening from a public 
134.8 	or private health care organization or individual health care provider not later than 30 
134.9 	days after the first day of attending kindergarten in a public school. A school district 
134.10 	must inform all resident families with eligible children under age seven, and a charter 
134.11 	school that provides screening must inform families that apply for admission to the charter 
134.12 	school, that their children may receive a developmental screening conducted either by the 
134.13 	school district or by a public or private health care organization or individual health care 
134.14 	provider and that the screening is not required if a statement signed by the child's parent 
134.15 	or guardian is submitted to the administrator or other person having general control and 
134.16 	supervision of the school that the child has not been screened.

134.17 	Sec. 3. Minnesota Statutes 2009 Supplement, section 124D.10, subdivision 8, is 
134.18 	amended to read:
134.19 		Subd. 8.Federal, state, and local requirements. (a) A charter school shall meet all 
134.20 	federal, state, and local health and safety requirements applicable to school districts.
134.21 	(b) A school must comply with statewide accountability requirements governing 
134.22 	standards and assessments in chapter 120B.
134.23 	(c) A school sponsored by a school board may be located in any district, unless the 
134.24 	school board of the district of the proposed location disapproves by written resolution.
134.25 	(d) A charter school must be nonsectarian in its programs, admission policies, 
134.26 	employment practices, and all other operations. A sponsor may not authorize a charter 
134.27 	school or program that is affiliated with a nonpublic sectarian school or a religious 
134.28 	institution. A charter school student must be released for religious instruction, consistent 
134.29 	with section 120A.22, subdivision 12, clause (3).
134.30 	(e) Charter schools must not be used as a method of providing education or 
134.31 	generating revenue for students who are being home-schooled.
134.32 	(f) The primary focus of a charter school must be to provide a comprehensive 
134.33 	program of instruction for at least one grade or age group from five through 18 years 
134.34 	of age. Instruction may be provided to people younger than five years and older than 
134.35 	18 years of age.
135.1 	(g) A charter school may not charge tuition.
135.2 	(h) A charter school is subject to and must comply with chapter 363A and section 
135.3 	121A.04.
135.4 	(i) A charter school is subject to and must comply with the Pupil Fair Dismissal 
135.5 	Act, sections 121A.40 to 121A.56, and the Minnesota Public School Fee Law, sections 
135.6 	123B.34 to 123B.39.
135.7 	(j) A charter school is subject to the same financial audits, audit procedures, and 
135.8 	audit requirements as a district. Audits must be conducted in compliance with generally 
135.9 	accepted governmental auditing standards, the Federal Single Audit Act, if applicable, 
135.10 	and section 6.65. A charter school is subject to and must comply with sections 15.054; 
135.11 	118A.01; 118A.02; 118A.03; 118A.04; 118A.05; 118A.06; 471.38; 471.391; 471.392; and 
135.12 	471.425. The audit must comply with the requirements of sections 123B.75 to 123B.83, 
135.13 	except to the extent deviations are necessary because of the program at the school. 
135.14 	Deviations must be approved by the commissioner and authorizer. The Department of 
135.15 	Education, state auditor, legislative auditor, or authorizer may conduct financial, program, 
135.16 	or compliance audits. A charter school determined to be in statutory operating debt under 
135.17 	sections 123B.81 to 123B.83 must submit a plan under section 123B.81, subdivision 4.
135.18 	(k) A charter school is a district for the purposes of tort liability under chapter 466.
135.19 	(l) A charter school must comply with chapters 13 and 13D; and sections 120A.22, 
135.20 	subdivision 7; 121A.75; and 260B.171, subdivisions 3 and 5.
135.21 	(m) A charter school is subject to the Pledge of Allegiance requirement under 
135.22 	section 121A.11, subdivision 3.
135.23 	(n) A charter school offering online courses or programs must comply with section 
135.24 	124D.095.
135.25 	(o) A charter school and charter school board of directors are subject to chapter 181.
135.26 	(p) A charter school must comply with section 120A.22, subdivision 7, governing 
135.27 	the transfer of students' educational records and sections 138.163 and 138.17 governing 
135.28 	the management of local records.
135.29 	(q) A charter school that provides early childhood health and developmental 
135.30 	screening must comply with sections 121A.16 to 121A.19.

135.31 	Sec. 4. Minnesota Statutes 2008, section 124D.141, subdivision 1, is amended to read:
135.32 		Subdivision 1.Membership; duties. Two members of the house of representatives, 
135.33 	one appointed by the speaker and one appointed by the minority leader; and two members 
135.34 	of the senate appointed by the Subcommittee on Committees of the Committee on Rules 
135.35 	and Administration, including one member of the minority; the commissioner of health or 
136.1 	the commissioner's designee; and two parents with a child under age six, shall be added 
136.2 	to the membership of the State Advisory Council on Early Education and Care. The 
136.3 	council must fulfill the duties required under the federal Improving Head Start for School 
136.4 	Readiness Act of 2007 as provided in Public Law 110-134.

136.5 	Sec. 5. Minnesota Statutes 2008, section 124D.141, subdivision 2, is amended to read:
136.6 		Subd. 2.Additional duties. The following duties are added to those assigned 
136.7 	to the council under federal law:
136.8 	(1) make recommendations on the most efficient and effective way to leverage state 
136.9 	and federal funding streams for early childhood and child care programs;
136.10 	(2) make recommendations on how to coordinate or colocate early childhood 
136.11 	and child care programs in one state Office of Early Learning;. The council shall 
136.12 	establish a task force to develop these recommendations. The task force shall include 
136.13 	two nonexecutive branch or nonlegislative branch representatives from the council; six 
136.14 	representatives from the early childhood caucus; two representatives each from the 
136.15 	Departments of Education, Human Services, and Health; one representative each from a 
136.16 	local public health agency, a local county human services agency, and a school district; and 
136.17 	two representatives from the private nonprofit organizations that support early childhood 
136.18 	programs in Minnesota. In developing recommendations in coordination with existing 
136.19 	efforts of the council, the task force shall consider how to:
136.20 	(i) consolidate and coordinate resources and public funding streams for early 
136.21 	childhood education and child care, and ensure the accountability and coordinated 
136.22 	development of all early childhood education and child care services to children from birth 
136.23 	to kindergarten entrance; 
136.24 	(ii) create a seamless transition from early childhood programs to kindergarten; 
136.25 	(iii) encourage family choice by ensuring a mixed system of high-quality public and 
136.26 	private programs, with local points of entry, staffed by well-qualified professionals; 
136.27 	(iv) ensure parents a decisive role in the planning, operation, and evaluation of 
136.28 	programs that aid families in the care of children; 
136.29 	(v) provide consumer education and accessibility to early childhood education 
136.30 	and child care resources; 
136.31 	(vi) advance the quality of early childhood education and child care programs in 
136.32 	order to support the healthy development of children and preparation for their success 
136.33 	in school; 
137.1 	(vii) develop a seamless service delivery system with local points of entry for early 
137.2 	childhood education and child care programs administered by local, state, and federal 
137.3 	agencies; 
137.4 	(viii) ensure effective collaboration between state and local child welfare programs 
137.5 	and early childhood mental health programs and the Office of Early Learning;
137.6 	(ix) develop and manage an effective data collection system to support the necessary 
137.7 	functions of a coordinated system of early childhood education and child care in order to 
137.8 	enable accurate evaluation of its impact; 
137.9 	(x) respect and be sensitive to family values and cultural heritage; and 
137.10 	(xi) establish the administrative framework for and promote the development of 
137.11 	early childhood education and child care services in order to provide that these services, 
137.12 	staffed by well-qualified professionals, are available in every community for all families 
137.13 	that express a need for them. 
137.14 	In addition, the task force must consider the following responsibilities for transfer 
137.15 	to the Office of Early Learning: 
137.16 	(A) responsibilities of the commissioner of education for early childhood education 
137.17 	programs and financing under sections 119A.50 to 119A.535, 121A.16 to 121A.19, and 
137.18 	124D.129 to 124D.2211; 
137.19 	(B) responsibilities of the commissioner of human services for child care assistance, 
137.20 	child care development, and early childhood learning and child protection facilities 
137.21 	programs and financing under chapter 119B and section 256E.37; and 
137.22 	(C) responsibilities of the commissioner of health for family home visiting programs 
137.23 	and financing under section 145A.17.
137.24 	Any costs incurred by the council in making these recommendations will be paid 
137.25 	from private funds. If no private funds are received, the council will not proceed in 
137.26 	making these recommendations. The council will report its recommendations to the 
137.27 	governor and the legislature by January 15, 2011;
137.28 	(3) review program evaluations regarding high-quality early childhood programs; 
137.29 	and
137.30 	(4) make recommendations to the governor and legislature, including proposed 
137.31 	legislation on how to most effectively create a high-quality early childhood system in 
137.32 	Minnesota in order to improve the educational outcomes of children so that all children 
137.33 	are school-ready by 2020.;
137.34 	(5) make recommendations to the governor and the legislature by March 1, 2011, on 
137.35 	the creation and implementation of a statewide school readiness report card to monitor 
137.36 	progress toward the goal of having all children ready for kindergarten by the year 2020. 
138.1 	The recommendations shall include what should be measured including both children and 
138.2 	system indicators, what benchmarks should be established to measure state progress 
138.3 	toward the goal, and how frequently the report card should be published. In making their 
138.4 	recommendations, the council shall consider the indicators and strategies for Minnesota's 
138.5 	early childhood system report, the Minnesota school readiness study, developmental 
138.6 	assessment at kindergarten entrance, and the work of the council's accountability 
138.7 	committee. Any costs incurred by the council in making these recommendations will be 
138.8 	paid from private funds. If no private funds are received, the council will not proceed in 
138.9 	making these recommendations; and
138.10 	(6) make recommendations to the governor and the legislature on how to screen 
138.11 	earlier and comprehensively assess children for school readiness in order to provide 
138.12 	increased early interventions and increase the number of children ready for kindergarten. 
138.13 	In formulating their recommendations, the council shall consider:
138.14 	(i) ways to interface with parents of children who are not participating in early 
138.15 	childhood education or care programs;
138.16 	(ii) ways to interface with family child care providers, child care centers, and 
138.17 	school-based early childhood and Head Start programs;
138.18 	(iii) if there are age-appropriate and culturally sensitive screening and assessment 
138.19 	tools for three-, four-, and five-year-olds;
138.20 	(iv) the role of the medical community in screening;
138.21 	(v) incentives for parents to have children screened at an earlier age;
138.22 	(vi) incentives for early education and care providers to comprehensively assess 
138.23 	children in order to improve instructional practice;
138.24 	(vii) how to phase in increases in screening and assessment over time;
138.25 	(viii) how the screening and assessment data will be collected and used and who will 
138.26 	have access to the data;
138.27 	(ix) how to monitor progress toward the goal of having 50 percent of three-year-old 
138.28 	children screened and 50 percent of five-year-old children assessed for school readiness 
138.29 	by 2015 and 100 percent of three-year-old children screened and five-year-old children 
138.30 	assessed for school readiness by 2020; and
138.31 	(x) costs to meet these benchmarks.
138.32 	The council shall consider the screening instruments and comprehensive assessment 
138.33 	tools used in Minnesota early childhood education and care programs and kindergarten. 
138.34 	The council may survey early childhood education and care programs in the state to 
138.35 	determine the screening and assessment tools being used or rely on previously collected 
138.36 	survey data, if available. For purposes of this subdivision, "school readiness" is defined 
139.1 	as the child's skills, knowledge, and behaviors at kindergarten entrance in these areas 
139.2 	of child development: social; self-regulation; cognitive, including language, literacy, 
139.3 	and mathematical thinking; and physical. For purposes of this subdivision, "screening" 
139.4 	is defined as the activities used to identify a child who may need further evaluation 
139.5 	to determine delay in development or disability. For purposes of this subdivision, 
139.6 	"assessment" is defined as the activities used to determine a child's level of performance in 
139.7 	order to promote the child's learning and development. Any costs incurred by the council 
139.8 	in making these recommendations will be paid from private funds. If no private funds are 
139.9 	received, the council will not proceed in making these recommendations. The council 
139.10 	will report its recommendations to the governor and legislature by January 15, 2012, with 
139.11 	an interim report on February 15, 2011.

139.12 	Sec. 6. Minnesota Statutes 2009 Supplement, section 124D.15, subdivision 3, is 
139.13 	amended to read:
139.14 		Subd. 3.Program requirements. A school readiness program provider must:
139.15 	(1) assess each child's cognitive skills with a comprehensive child assessment 
139.16 	instrument when the child enters and again before the child leaves the program to inform 
139.17 	program planning and parents and promote kindergarten readiness;
139.18 	(2) provide comprehensive program content and intentional instructional practice 
139.19 	aligned with the state early childhood learning guidelines and kindergarten standards and 
139.20 	based on early childhood research and professional practice that is focused on children's 
139.21 	cognitive, social, emotional, and physical skills and development and prepares children 
139.22 	for the transition to kindergarten, including early literacy skills;
139.23 	(3) coordinate appropriate kindergarten transition with parents and kindergarten 
139.24 	teachers;
139.25 	(4) arrange for early childhood screening and appropriate referral;
139.26 	(5) (4) involve parents in program planning and decision making;
139.27 	(6) (5) coordinate with relevant community-based services;
139.28 	(7) (6) cooperate with adult basic education programs and other adult literacy 
139.29 	programs;
139.30 	(8) (7) ensure staff-child ratios of one-to-ten and maximum group size of 20 children 
139.31 	with the first staff required to be a teacher; and
139.32 	(9) (8) have teachers knowledgeable in early childhood curriculum content, 
139.33 	assessment, and instruction.

139.34 	Sec. 7. Minnesota Statutes 2008, section 124D.15, subdivision 12, is amended to read:
140.1 		Subd. 12.Program fees. A district must adopt a sliding fee schedule based on a 
140.2 	family's income but must waive a fee for a participant unable to pay. School districts must 
140.3 	use school readiness aid for eligible children. Children who do not meet the eligibility 
140.4 	requirements in subdivision 15 may participate on a fee-for-service basis.

140.5 	Sec. 8. Minnesota Statutes 2008, section 124D.15, is amended by adding a subdivision 
140.6 	to read:
140.7 		Subd. 15.Eligibility.  A child is eligible to participate in a school readiness program 
140.8 	if the child:
140.9 	(1) is at least three years old on September 1;
140.10 	(2) has completed health and developmental screening within 90 days of program 
140.11 	enrollment under sections 121A.16 to 121A.19; and
140.12 	(3) has one or more of the following risk factors:
140.13 	(i) qualifies for free or reduced-price lunch;
140.14 	(ii) is an English language learning child;
140.15 	(iii) is homeless;
140.16 	(iv) has an individualized education program (IEP) or an individual interagency 
140.17 	intervention plan (IIIP);
140.18 	(v) is identified, through health and developmental screenings under sections 
140.19 	121A.16 to 121A.19, with a potential risk factor that may influence learning; or
140.20 	(vi) is defined as at risk by the school district.

140.21 	Sec. 9. Minnesota Statutes 2008, section 124D.20, subdivision 8, is amended to read:
140.22 		Subd. 8.Uses of general revenue. (a) General community education revenue 
140.23 	may be used for:
140.24 	(1) nonvocational, recreational, and leisure time activities and programs;
140.25 	(2) programs for adults with disabilities, if the programs and budgets are approved 
140.26 	by the department;
140.27 	(3) adult basic education programs, according to section 124D.52; 
140.28 	(4) summer programs for elementary and secondary pupils;
140.29 	(5) implementation of a youth development plan;
140.30 	(6) implementation of a youth service program;
140.31 	(7) early childhood family education programs, according to section 124D.13; and
140.32 	(8) school readiness programs, according to section 124D.15; and
140.33 	(9) extended day programs, according to section 124D.19, subdivision 11. 
141.1 	(9)(b) In addition to money from other sources, a district may use up to ten percent 
141.2 	of its community education revenue for equipment that is used exclusively in community 
141.3 	education programs. This revenue may be used only for the following purposes:
141.4 	(i) (1) to purchase or lease computers and related materials;
141.5 	(ii) (2) to purchase or lease equipment for instructional programs; and
141.6 	(iii) (3) to purchase textbooks and library books.
141.7 	(b) (c) General community education revenue must not be used to subsidize the 
141.8 	direct activity costs for adult enrichment programs. Direct activity costs include, but 
141.9 	are not limited to, the cost of the activity leader or instructor, cost of materials, or 
141.10 	transportation costs.