HF 2431

1st Committee Engrossment - 86th Legislature (2009 - 2010)

Posted on 03/19/2013 07:29 p.m.

1.1A bill for an act 1.2relating to education; providing for policy and funding for kindergarten 1.3through grade 12 education including general education, education excellence, 1.4special programs, facilities and technology, accounting, state agencies, pupil 1.5transportation, education finance reform and forecast adjustments; authorizing 1.6rulemaking; requiring reports; appropriating money;amending Minnesota 1.7Statutes 2008, sections 3.303, by adding a subdivision; 11A.16, subdivision 5; 1.816A.125, subdivision 5; 120A.41; 120B.021, subdivision 1; 120B.07; 120B.15; 1.9122A.16; 122A.18, subdivisions 1, 2; 122A.23, subdivision 2; 123B.12; 1.10123B.147, subdivision 3; 123B.53, subdivision 5; 123B.57, as amended; 1.11123B.63, subdivision 3; 123B.75, subdivision 5, by adding a subdivision; 1.12123B.88, subdivision 13; 123B.90, subdivision 3; 123B.92, subdivision 5; 1.13124D.09, subdivision 20; 124D.4531, as amended; 124D.59, subdivision 2; 1.14124D.65, subdivision 5; 125A.03; 125A.21, subdivisions 2, 3, 5, 7; 125A.515, by 1.15adding a subdivision; 125A.69, subdivision 1; 125A.76, subdivision 5; 125A.79, 1.16subdivisions 1, 7; 126C.01, by adding subdivisions; 126C.05, subdivisions 1, 3, 1.175, 6, 8, 16, 17; 126C.10, subdivisions 1, 2, 2a, 3, 4, 6, 13, 13a, 14, 18, by adding 1.18subdivisions; 126C.126; 126C.13, subdivisions 4, 5; 126C.17, subdivisions 1.191, 5, 6, by adding a subdivision; 126C.20; 126C.40, subdivision 1; 126C.54; 1.20127A.30, subdivision 2; 127A.42, subdivision 2; 127A.43; 127A.441; 127A.45, 1.21subdivisions 2, 3, 13, by adding subdivisions; 127A.51; 157.15, by adding a 1.22subdivision; 169.447, subdivision 2a; 171.321, subdivision 2; Minnesota Statutes 1.232009 Supplement, sections 16A.152, subdivision 2, as amended; 120B.023, 1.24subdivision 2; 120B.30, subdivisions 1, 1a, 3, 4, by adding a subdivision; 1.25120B.35, subdivision 3; 120B.36, subdivision 1; 122A.09, subdivision 4; 1.26122A.40, subdivision 8; 122A.41, subdivision 5; 123B.143, subdivision 1; 1.27123B.54; 123B.92, subdivision 1; 124D.10, subdivisions 3, 4, 4a, 6a, 11, 23; 1.28125A.02, subdivision 1; 125A.091, subdivision 7; 125A.63, subdivisions 2, 4, 5; 1.29126C.41, subdivision 2; 126C.44; 157.16, subdivision 3; 171.02, subdivision 2b; 1.30256B.0625, subdivision 26; Laws 2009, chapter 79, article 5, section 60; Laws 1.312009, chapter 96, article 2, sections 64; 67, subdivisions 14, 17; article 4, section 1.3212, subdivision 3; article 5, section 13, subdivision 4; proposing coding for new 1.33law in Minnesota Statutes, chapters 120B; 121A; 122A; 123A; 123B; 124D; 1.34125A; 126C; repealing Minnesota Statutes 2008, sections 122A.24; 123B.54; 1.35123B.57, subdivisions 3, 4, 5; 123B.591; 125A.54; 125A.76, subdivision 4; 1.36125A.79, subdivision 6; 126C.10, subdivisions 2b, 13a, 13b, 24, 25, 26, 27, 28, 1.3729, 30, 31, 31a, 31b, 32, 33, 34, 35, 36; 126C.12; 126C.126; 127A.46; 127A.50. 1.38BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.1ARTICLE 1 2.2GENERAL EDUCATION 2.3    Section 1. Minnesota Statutes 2008, section 11A.16, subdivision 5, is amended to read: 2.4    Subd. 5. Calculation of income. As of the end of each fiscal year, the state 2.5board shall calculate the investment income earned by the permanent school fund. The 2.6investment income earned by the fund shall equal the amount of interest on debt securities 2.7and new text begin , new text end dividends on equity securities new text begin , and interest earned on certified monthly earnings prior new text end 2.8 new text begin to the transfer to the Department of Education new text end . Gains and losses arising from the sale of 2.9securities shall be apportioned as follows: 2.10(a) If the sale of securities results in a net gain during a fiscal year, the gain shall 2.11be apportioned in equal installments over the next ten fiscal years to offset net losses in 2.12those years. If any portion of an installment is not needed to recover subsequent losses 2.13identified in paragraph (b) it shall be added to the principal of the fund. 2.14(b) If the sale of securities results in a net loss during a fiscal year, the net loss shall 2.15be recovered first from the gains in paragraph (a) apportioned to that fiscal year. If these 2.16gains are insufficient, any remaining net loss shall be recovered from interest and dividend 2.17income in equal installments over the following ten fiscal years. 2.18    Sec. 2. Minnesota Statutes 2008, section 120B.07, is amended to read: 2.19120B.07 EARLY GRADUATION. 2.20 new text begin (a) new text end Notwithstanding any law to the contrary, any secondary school student who has 2.21completed all required courses or standards may, with the approval of the student, the 2.22student's parent or guardian, and local school officials, graduate before the completion 2.23of the school year. 2.24 new text begin (b) new text end General education revenue attributable to the student must be paid as though the 2.25student was in attendance for the entire year new text begin unless the student participates in the early new text end 2.26 new text begin graduation achievement scholarship program under section 120B.08 new text end . 2.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2010. new text end 2.28    Sec. 3. new text begin [120B.08] EARLY GRADUATION ACHIEVEMENT SCHOLARSHIP new text end 2.29 new text begin PROGRAM. new text end 2.30     new text begin Subdivision 1. new text end new text begin Participation. new text end new text begin A student who qualifies for early graduation under new text end 2.31 new text begin section 120B.07 is eligible to participate in the early graduation achievement scholarship new text end 2.32 new text begin program. new text end 3.1     new text begin Subd. 2. new text end new text begin Scholarship amounts. new text end new text begin A student who participates in the early graduation new text end 3.2 new text begin achievement scholarship program is eligible for a scholarship of $2,500 if the student new text end 3.3 new text begin qualifies for graduation one semester early, $5,000 if the student qualifies for graduation new text end 3.4 new text begin two semesters early, or $7,500 if the student qualifies for graduation three or more new text end 3.5 new text begin semesters early. new text end 3.6     new text begin Subd. 3. new text end new text begin Scholarship uses. new text end new text begin An early graduation achievement scholarship may be new text end 3.7 new text begin used at any accredited institution of higher education. new text end 3.8     new text begin Subd. 4. new text end new text begin Application. new text end new text begin A qualifying student may apply to the commissioner of new text end 3.9 new text begin education for an early graduation achievement scholarship. The application must be in new text end 3.10 new text begin the form and manner specified by the commissioner. Upon verification of the qualifying new text end 3.11 new text begin student's course completion necessary for graduation, the department must issue the new text end 3.12 new text begin student a certificate showing the student's scholarship amount. new text end 3.13     new text begin Subd. 5. new text end new text begin Enrollment verification. new text end new text begin A student who qualifies under this section new text end 3.14 new text begin and enrolls in an accredited higher education institution must submit a form to the new text end 3.15 new text begin commissioner verifying the student's enrollment in the higher education institution and the new text end 3.16 new text begin tuition charges for that semester. Within 15 days of receipt of a student's enrollment and new text end 3.17 new text begin tuition verification form, the commissioner must issue a scholarship check to the student in new text end 3.18 new text begin the lesser of the tuition amount for that semester or the maximum amount of the student's new text end 3.19 new text begin early graduation achievement scholarship. A student may continue to submit enrollment new text end 3.20 new text begin verification forms to the commissioner until the student has used the full amount of the new text end 3.21 new text begin student's graduation achievement scholarship. new text end 3.22     new text begin Subd. 6. new text end new text begin General education money transferred. new text end new text begin The commissioner must transfer new text end 3.23 new text begin the amounts necessary to fund the early graduation achievement scholarships from the new text end 3.24 new text begin general education aid appropriation for that year. new text end 3.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for fiscal years 2011 and later. new text end 3.26    Sec. 4. Minnesota Statutes 2008, section 123B.63, subdivision 3, is amended to read: 3.27    Subd. 3. Capital project levy referendum. new text begin (a) new text end A district may levy the local tax 3.28rate approved by a majority of the electors voting on the question to provide funds for 3.29an approved project. The election must take place no more than five years before the 3.30estimated date of commencement of the project. The referendum must be held on a date 3.31set by the board. A referendum for a project not receiving a positive review and comment 3.32by the commissioner under section 123B.71 must be approved by at least 60 percent of 3.33the voters at the election. 3.34 new text begin (b) new text end The referendum may be called by the school board and may be held: 4.1    (1) separately, before an election for the issuance of obligations for the project 4.2under chapter 475; or 4.3    (2) in conjunction with an election for the issuance of obligations for the project 4.4under chapter 475; or 4.5    (3) notwithstanding section 475.59, as a conjunctive question authorizing both the 4.6capital project levy and the issuance of obligations for the project under chapter 475. Any 4.7obligations authorized for a project may be issued within five years of the date of the 4.8election. 4.9     new text begin (c) new text end The ballot must provide a general description of the proposed project, state the 4.10estimated total cost of the project, state whether the project has received a positive or 4.11negative review and comment from the commissioner, state the maximum amount of the 4.12capital project levy as a percentage of net tax capacity, state the amount that will be raised 4.13by that local tax rate in the first year it is to be levied, and state the maximum number of 4.14years that the levy authorization will apply. 4.15    The ballot must contain a textual portion with the information required in this 4.16section and a question stating substantially the following: 4.17    "Shall the capital project levy proposed by the board of .......... School District 4.18No. .......... be approved?" 4.19    If approved, the amount provided by the approved local tax rate applied to the net 4.20tax capacity for the year preceding the year the levy is certified may be certified for the 4.21number of years, not to exceed ten, approved. 4.22 new text begin (d) If the authority for an existing project is expiring and the district is proposing new text end 4.23 new text begin a new project at the same maximum tax rate, the general description on the ballot may new text end 4.24 new text begin state that the capital project levy is being renewed and that the tax rate is not being new text end 4.25 new text begin increased from the previous year's rate and the notice required under section 276.60, may new text end 4.26 new text begin be modified to read: "BY VOTING YES ON THIS BALLOT QUESTION, YOU ARE new text end 4.27 new text begin VOTING TO EXTEND THE AUTHORITY FOR AN EXPIRING CAPITAL PROJECT new text end 4.28 new text begin AT THE SAME TAX RATE." new text end 4.29     new text begin (e) new text end In the event a conjunctive question proposes to authorize both the capital project 4.30levy and the issuance of obligations for the project, appropriate language authorizing the 4.31issuance of obligations must also be included in the question. 4.32     new text begin (f) new text end The district must notify the commissioner of the results of the referendum. 4.33 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for referenda conducted on or after new text end 4.34 new text begin July 1, 2010. new text end 4.35    Sec. 5. Minnesota Statutes 2008, section 124D.09, subdivision 20, is amended to read: 5.1    Subd. 20. Textbooks; materials. All textbooks and equipment provided to a pupil, 5.2and paid for under subdivision 13, are the property of the pupil's postsecondary institution. 5.3Each pupil is required to return all textbooks and equipment to the postsecondary 5.4institution after the course has ended. new text begin The postsecondary institution may bill the pupil for new text end 5.5 new text begin any textbooks and equipment that are not promptly returned by the student. new text end 5.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2010. new text end 5.7    Sec. 6. Minnesota Statutes 2008, section 125A.79, subdivision 1, is amended to read: 5.8    Subdivision 1. Definitions. For the purposes of this section, the definitions in this 5.9subdivision apply. 5.10    (a) "Unreimbursed special education cost" means the sum of the following: 5.11    (1) expenditures for teachers' salaries, contracted services, supplies, equipment, and 5.12transportation services eligible for revenue under section 125A.76; plus 5.13    (2) expenditures for tuition bills received under sections 125A.03 to 125A.24 and 5.14125A.65 for services eligible for revenue under section 125A.76, subdivision 2; minus 5.15    (3) revenue for teachers' salaries, contracted services, supplies, equipment, and 5.16transportation services under section 125A.76; minus 5.17    (4) tuition receipts under sections 125A.03 to 125A.24 and 125A.65 for services 5.18eligible for revenue under section 125A.76, subdivision 2. 5.19    (b) "General revenue" new text begin for a school district new text end means the sum of the general education 5.20revenue according to section 126C.10, subdivision 1, excluding alternative teacher 5.21compensation revenue, plus the total qualifying referendum revenue specified in paragraph 5.22(e) minus transportation sparsity revenue minus total operating capital revenue. new text begin "General new text end 5.23 new text begin revenue" for a charter school means the sum of the general education revenue according to new text end 5.24 new text begin section 124D.11, subdivision 1, and transportation revenue according to section 124D.11, new text end 5.25 new text begin subdivision 2, excluding alternative teacher compensation revenue, minus referendum new text end 5.26 new text begin equalization aid minus transportation sparsity revenue minus operating capital revenue. new text end 5.27    (c) "Average daily membership" has the meaning given it in section 126C.05. 5.28    (d) "Program growth factor" means 1.02 for fiscal year 2012 and later. 5.29    (e) "Total qualifying referendum revenue" means two-thirds of the district's total 5.30referendum revenue as adjusted according to section , subdivision 7, paragraphs 5.31(a) to (c), for fiscal year 2006, one-third of the district's total referendum revenue for fiscal 5.32year 2007, and none of the district's total referendum revenue for fiscal year 2008 and later. 5.33 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 6.1    Sec. 7. Minnesota Statutes 2008, section 126C.10, subdivision 2a, is amended to read: 6.2    Subd. 2a. Extended time revenue. (a) A school district's extended time revenue 6.3is equal to the product of $4,601 new text begin (1) the formula allowance for that year minus $523, new text end 6.4and new text begin (2) new text end the sum of the adjusted marginal cost pupil units of the district for each pupil in 6.5average daily membership in excess of 1.0 and less than 1.2 according to section 126C.05, 6.6subdivision 8 new text begin , if the district has extended time average daily membership in the current new text end 6.7 new text begin year new text end . 6.8(b) A school district's extended time revenue may be used for extended day 6.9programs, extended week programs, summer school, and other programming authorized 6.10under the learning year program. 6.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for revenue for fiscal years 2011 new text end 6.12 new text begin and later. new text end 6.13    Sec. 8. Minnesota Statutes 2008, section 126C.10, subdivision 13a, is amended to read: 6.14    Subd. 13a. Operating capital levy. To obtain operating capital revenue for fiscal 6.15year 2007 and later, a district may levy an amount not more than the product of its 6.16operating capital revenue for the fiscal year times the lesser of one or the ratio of its 6.17adjusted net tax capacity per adjusted marginal cost pupil unit to the operating capital 6.18equalizing factor. The operating capital equalizing factor equals $22,222 for fiscal year 6.192006, and $10,700 for fiscal year new text begin years new text end 2007 new text begin through 2011, $10,915 for fiscal year 2012, new text end 6.20 new text begin and $11,029 for fiscal years 2013 new text end and later. 6.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for fiscal years 2012 and later. new text end 6.22    Sec. 9. Minnesota Statutes 2008, section 126C.10, subdivision 14, is amended to read: 6.23    Subd. 14. Uses of total operating capital revenue. Total operating capital revenue 6.24may be used only for the following purposes: 6.25(1) to acquire land for school purposes; 6.26(2) to acquire or construct buildings for school purposes; 6.27(3) to rent or lease buildings, including the costs of building repair or improvement 6.28that are part of a lease agreement; 6.29(4) to improve and repair school sites and buildings, and equip or reequip school 6.30buildings with permanent attached fixtures, including library media centers; 6.31(5) for a surplus school building that is used substantially for a public nonschool 6.32purpose; 7.1(6) to eliminate barriers or increase access to school buildings by individuals with a 7.2disability; 7.3(7) to bring school buildings into compliance with the State Fire Code adopted 7.4according to chapter 299F; 7.5(8) to remove asbestos from school buildings, encapsulate asbestos, or make 7.6asbestos-related repairs; 7.7(9) to clean up and dispose of polychlorinated biphenyls found in school buildings; 7.8(10) to clean up, remove, dispose of, and make repairs related to storing heating fuel 7.9or transportation fuels such as alcohol, gasoline, fuel oil, and special fuel, as defined 7.10in section 296A.01; 7.11(11) for energy audits for school buildings and to modify buildings if the audit 7.12indicates the cost of the modification can be recovered within ten years; 7.13(12) to improve buildings that are leased according to section 123B.51, subdivision 4; 7.14(13) to pay special assessments levied against school property but not to pay 7.15assessments for service charges; 7.16(14) to pay principal and interest on state loans for energy conservation according to 7.17section 216C.37 or loans made under the Douglas J. Johnson Economic Protection Trust 7.18Fund Act according to sections 298.292 to 298.298; 7.19(15) to purchase or lease interactive telecommunications equipment; 7.20(16) by board resolution, to transfer money into the debt redemption fund to: (i) 7.21pay the amounts needed to meet, when due, principal and interest payments on certain 7.22obligations issued according to chapter 475; or (ii) pay principal and interest on debt 7.23service loans or capital loans according to section 126C.70; 7.24(17) to pay operating capital-related assessments of any entity formed under a 7.25cooperative agreement between two or more districts; 7.26(18) to purchase or lease computers and related materials, copying machines, 7.27telecommunications equipment, and other noninstructional equipment; 7.28(19) to purchase or lease assistive technology or equipment for instructional 7.29programs; 7.30(20) to purchase textbooks; 7.31(21) to purchase new and replacement library media resources or technology; 7.32(22) to purchase vehicles; 7.33(23) to purchase or lease telecommunications equipment, computers, and related 7.34equipment for integrated information management systems for: 7.35(i) managing and reporting learner outcome information for all students under a 7.36results-oriented graduation rule; 8.1(ii) managing student assessment, services, and achievement information required 8.2for students with individual education plans; and 8.3(iii) other classroom information management needs; and 8.4(24) to pay personnel costs directly related to the acquisition, operation, and 8.5maintenance of telecommunications systems, computers, related equipment, and network 8.6and applications software new text begin ; and new text end 8.7 new text begin (25) to pay the costs directly associated with closing a school facility, including new text end 8.8 new text begin moving and storage costs new text end . 8.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 8.10    Sec. 10. Minnesota Statutes 2008, section 126C.126, is amended to read: 8.11126C.126 REALLOCATING GENERAL EDUCATION REVENUE FOR 8.12ALL-DAY KINDERGARTEN AND PREKINDERGARTEN. 8.13    (a) In order to provide additional revenue for an optional all-day kindergarten 8.14program, a district may reallocate general education revenue attributable to 12th grade 8.15students who have graduated early under section 120B.07 new text begin and who do not participate in new text end 8.16 new text begin the early graduation achievement scholarship program under section 120B.08 new text end . 8.17    (b) A school district may spend general education revenue on extended time 8.18kindergarten and prekindergarten programs. 8.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for fiscal years 2011 and later. new text end 8.20    Sec. 11. Minnesota Statutes 2008, section 126C.17, is amended by adding a subdivision 8.21to read: 8.22     new text begin Subd. 9a. new text end new text begin Renewal by school board. new text end new text begin Notwithstanding the election requirements of new text end 8.23 new text begin subdivision 9, a school board may renew an expiring referendum by board action if: new text end 8.24 new text begin (1) the per pupil amount of the referendum is the same as the amount expiring; new text end 8.25 new text begin (2) the term of the renewed referendum is no longer than the initial term approved new text end 8.26 new text begin by the voters; and new text end 8.27 new text begin (3) the school board has adopted a written resolution authorizing the renewal after new text end 8.28 new text begin holding a meeting and allowing public testimony on the proposed renewal. new text end 8.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2010. new text end 8.30    Sec. 12. Minnesota Statutes 2008, section 126C.20, is amended to read: 8.31126C.20 ANNUAL GENERAL EDUCATION AID APPROPRIATION. 9.1There is annually appropriated from the general fund to the department the amount 9.2necessary for general education aid new text begin under section 126C.13 new text end new text begin and the early graduation new text end 9.3 new text begin achievement scholarship program under section 120B.08 new text end . This amount must be reduced 9.4by the amount of any money specifically appropriated for the same purpose in any year 9.5from any state fund. 9.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for fiscal years 2011 and later. new text end 9.7    Sec. 13. Minnesota Statutes 2009 Supplement, section 126C.41, subdivision 2, is 9.8amended to read: 9.9    Subd. 2. Retired employee health benefits. (a) A district may levy an amount up 9.10to the amount the district is required by the collective bargaining agreement in effect 9.11on March 30, 1992, to pay for health insurance or unreimbursed medical expenses for 9.12licensed and nonlicensed employees who have terminated services in the employing 9.13district and withdrawn from active teaching service or other active service, as applicable, 9.14before July 1, 1992, and to pay for health insurance or unreimbursed medical expenses 9.15for licensed and nonlicensed employees who have terminated services in the employing 9.16district and withdrawn from active teaching service or other active service, as applicable 9.17before July 1, 1998, only if a sunset clause is in effect for the current collective bargaining 9.18agreement. The total amount of the levy each year may not exceed $600,000. 9.19(b) In addition to the levy authority granted under paragraph (a), a school district 9.20may levy for other postemployment benefits expenses new text begin actually paid during the previous new text end 9.21 new text begin fiscal year new text end . For purposes of this subdivision, "postemployment benefits" means benefits 9.22giving rise to a liability under Statement No. 45 of the Government Accounting Standards 9.23Board. A district seeking levy authority under this subdivision must: 9.24(1) create or have created an actuarial liability to pay postemployment benefits to 9.25employees or officers after their termination of service; 9.26(2) have a sunset clause in effect for the current collective bargaining agreement as 9.27required by paragraph (a); and 9.28(3) apply for the authority in the form and manner required by the commissioner 9.29of education. 9.30If the total levy authority requested under this paragraph exceeds the amount established 9.31in paragraph (c), the commissioner must proportionately reduce each district's maximum 9.32levy authority under this subdivision. new text begin The commissioner may subsequently adjust each new text end 9.33 new text begin district's levy authority under this subdivision so long as the total levy authority does not new text end 9.34 new text begin exceed the maximum levy authority for that year. new text end 10.1(c) The maximum levy authority under paragraph (b) must not exceed the following 10.2amounts: 10.3(1) $9,242,000 for taxes payable in 2010; 10.4(2) $29,863,000 for taxes payable in 2011; and 10.5(3) for taxes payable in 2012 and later, the maximum levy authority must not exceed 10.6the sum of the previous year's authority and $14,000,000. 10.7    Sec. 14. Minnesota Statutes 2009 Supplement, section 126C.44, is amended to read: 10.8126C.44 SAFE SCHOOLS LEVY. 10.9    (a) Each district may make a levy on all taxable property located within the district 10.10for the purposes specified in this section. The maximum amount which may be levied 10.11for all costs under this section shall be equal to $30 multiplied by the district's adjusted 10.12marginal cost pupil units for the school year. The proceeds of the levy must be reserved and 10.13used for directly funding the following purposes or for reimbursing the cities and counties 10.14who contract with the district for the following purposes: (1) to pay the costs incurred for 10.15the salaries, benefits, and transportation costs of peace officers and sheriffs for liaison in 10.16services in the district's schools; (2) to pay the costs for a drug abuse prevention program 10.17as defined in section 609.101, subdivision 3, paragraph (e), in the elementary schools; 10.18(3) to pay the costs for a gang resistance education training curriculum in the district's 10.19schools; (4) to pay the costs for security in the district's schools and on school property; (5) 10.20to pay the costs for other crime prevention, drug abuse, student and staff safety, voluntary 10.21opt-in suicide prevention tools, and violence prevention measures taken by the school 10.22district; or (6) to pay costs for licensed school counselors, licensed school nurses, licensed 10.23school social workers, licensed school psychologists, and licensed alcohol and chemical 10.24dependency counselors to help provide early responses to problems. For expenditures 10.25under clause (1), the district must initially attempt to contract for services to be provided 10.26by peace officers or sheriffs with the police department of each city or the sheriff's 10.27department of the county within the district containing the school receiving the services. If 10.28a local police department or a county sheriff's department does not wish to provide the 10.29necessary services, the district may contract for these services with any other police or 10.30sheriff's department located entirely or partially within the school district's boundaries. 10.31    (b) A school district that is a member of an intermediate school district may 10.32include in its authority under this section the costs associated with safe schools activities 10.33authorized under paragraph (a) for intermediate school district programs. This authority 10.34must not exceed $10 times the adjusted marginal cost pupil units of the member districts. 11.1This authority is in addition to any other authority authorized under this section. Revenue 11.2raised under this paragraph must be transferred to the intermediate school district. 11.3    (c) A school district must set aside at least $3 per adjusted marginal cost pupil 11.4unit of the safe schools levy proceeds for the purposes authorized under paragraph (a), 11.5clause (6). The district must annually certify either that: (1) its total spending on services 11.6provided by the employees listed in paragraph (a), clause (6), is not less than the sum of 11.7its expenditures for these purposes, excluding amounts spent under this section, in the 11.8previous year plus the amount spent under this section; or (2) that the district's full-time 11.9equivalent number of employees listed in paragraph (a), clause (6), is not less than the 11.10number for the previous year new text begin ; or (3) that the district's full-time equivalent number of new text end 11.11 new text begin employees listed in paragraph (a), clause (6), including those provided through a special new text end 11.12 new text begin education cooperative, intermediate school district, or education district, is not less than new text end 11.13 new text begin the number for the previous year new text end . 11.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 11.15ARTICLE 2 11.16EDUCATION EXCELLENCE 11.17    Section 1. Minnesota Statutes 2008, section 120A.41, is amended to read: 11.18120A.41 LENGTH OF SCHOOL YEAR; DAYS OF INSTRUCTION. 11.19A school board's annual school calendar must include at least the number of days 11.20of student instruction the board formally adopted as its school calendar at the beginning of 11.21the 1996-1997 school year new text begin 425 hours of instruction for a kindergarten student without a new text end 11.22 new text begin disability, 935 hours of instruction for a student in grades 1 through 6, and 1,020 hours of new text end 11.23 new text begin instruction for a student in grades 7 through 12, not including summer school new text end . 11.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for the 2010-2011 school year and new text end 11.25 new text begin later. new text end 11.26    Sec. 2. Minnesota Statutes 2008, section 120B.021, subdivision 1, is amended to read: 11.27    Subdivision 1. Required academic standards. The following subject areas are 11.28required for statewide accountability: 11.29    (1) language arts; 11.30    (2) mathematics; 11.31    (3) science; 12.1    (4) social studies, including history, geography, economics, and government and 12.2citizenship; 12.3(5) new text begin physical education; new text end 12.4     new text begin (6) new text end health and physical education, for which locally developed academic standards 12.5apply; and 12.6    (6) new text begin (7) new text end the arts, for which statewide or locally developed academic standards apply, 12.7as determined by the school district. Public elementary and middle schools must offer at 12.8least three and require at least two of the following four arts areas: dance; music; theater; 12.9and visual arts. Public high schools must offer at least three and require at least one of the 12.10following five arts areas: media arts; dance; music; theater; and visual arts. 12.11    The commissioner must submit proposed standards in science and social studies to 12.12the legislature by February 1, 2004. 12.13For purposes of applicable federal law, the academic standards for language arts, 12.14mathematics, and science apply to all public school students, except the very few students 12.15with extreme cognitive or physical impairments for whom an individualized education 12.16plan team has determined that the required academic standards are inappropriate. 12.17An individualized education plan team that makes this determination must establish 12.18alternative standards. 12.19    A school district, no later than the 2007-2008 school year, must adopt graduation 12.20requirements that meet or exceed state graduation requirements established in law or 12.21rule. A school district that incorporates these state graduation requirements before the 12.222007-2008 school year must provide students who enter the 9th grade in or before 12.23the 2003-2004 school year the opportunity to earn a diploma based on existing locally 12.24established graduation requirements in effect when the students entered the 9th grade. 12.25District efforts to develop, implement, or improve instruction or curriculum as a result 12.26of the provisions of this section must be consistent with sections 120B.10, 120B.11, 12.27and 120B.20. 12.28    The commissioner must include the contributions of Minnesota American Indian 12.29tribes and communities as they relate to the academic standards during the review and 12.30revision of the required academic standards. 12.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 12.32 new text begin and applies to all school districts and charter schools beginning in the 2012-2013 school new text end 12.33 new text begin year and later. A school district or charter school is strongly encouraged to implement new text end 12.34 new text begin state physical education standards in an earlier school year than the 2012-2013 school new text end 12.35 new text begin year if it has adopted physical education standards equivalent to the standards developed new text end 13.1 new text begin by the National Association for Sport and Physical Education under section 39 on the new text end 13.2 new text begin effective date of this act, or if it is scheduled to undertake the periodic review of its local new text end 13.3 new text begin physical education standards under Minnesota Statutes, section 120B.023, subdivision 2, new text end 13.4 new text begin paragraph (g), in a school year before the 2012-2013 school year, it is strongly encouraged new text end 13.5 new text begin to implement state physical education standards consistent with section 39 in an earlier new text end 13.6 new text begin school year. new text end 13.7    Sec. 3. Minnesota Statutes 2009 Supplement, section 120B.023, subdivision 2, is 13.8amended to read: 13.9    Subd. 2. Revisions and reviews required. (a) The commissioner of education must 13.10revise and appropriately embed technology and information literacy standards consistent 13.11with recommendations from school media specialists into the state's academic standards 13.12and graduation requirements and implement a review cycle for state academic standards 13.13and related benchmarks, consistent with this subdivision. During each review cycle, the 13.14commissioner also must examine the alignment of each required academic standard and 13.15related benchmark with the knowledge and skills students need for college readiness and 13.16advanced work in the particular subject area. 13.17(b) The commissioner in the 2006-2007 school year must revise and align the state's 13.18academic standards and high school graduation requirements in mathematics to require 13.19that students satisfactorily complete the revised mathematics standards, beginning in the 13.202010-2011 school year. Under the revised standards: 13.21(1) students must satisfactorily complete an algebra I credit by the end of eighth 13.22grade; and 13.23(2) students scheduled to graduate in the 2014-2015 school year or later must 13.24satisfactorily complete an algebra II credit or its equivalent. 13.25The commissioner also must ensure that the statewide mathematics assessments 13.26administered to students in grades 3 through 8 and 11 are aligned with the state academic 13.27standards in mathematics, consistent with section 120B.30, subdivision 1, paragraph 13.28(b). The commissioner must implement a review of the academic standards and related 13.29benchmarks in mathematics beginning in the 2015-2016 school year. 13.30(c) The commissioner in the 2007-2008 school year must revise and align the state's 13.31academic standards and high school graduation requirements in the arts to require that 13.32students satisfactorily complete the revised arts standards beginning in the 2010-2011 13.33school year. The commissioner must implement a review of the academic standards and 13.34related benchmarks in arts beginning in the 2016-2017 school year. 14.1(d) The commissioner in the 2008-2009 school year must revise and align the state's 14.2academic standards and high school graduation requirements in science to require that 14.3students satisfactorily complete the revised science standards, beginning in the 2011-2012 14.4school year. Under the revised standards, students scheduled to graduate in the 2014-2015 14.5school year or later must satisfactorily complete a chemistry or physics credit. The 14.6commissioner must implement a review of the academic standards and related benchmarks 14.7in science beginning in the 2017-2018 school year. 14.8(e) The commissioner in the 2009-2010 school year must revise and align the state's 14.9academic standards and high school graduation requirements in language arts to require 14.10that students satisfactorily complete the revised language arts standards beginning in the 14.112012-2013 school year. The commissioner must implement a review of the academic 14.12standards and related benchmarks in language arts beginning in the 2018-2019 school year. 14.13(f) The commissioner in the 2010-2011 school year must revise and align the state's 14.14academic standards and high school graduation requirements in social studies to require 14.15that students satisfactorily complete the revised social studies standards beginning in the 14.162013-2014 school year. The commissioner must implement a review of the academic 14.17standards and related benchmarks in social studies beginning in the 2019-2020 school year. 14.18(g) School districts and charter schools must revise and align local academic 14.19standards and high school graduation requirements in health, physical education, world 14.20languages, and career and technical education to require students to complete the revised 14.21standards beginning in a school year determined by the school district or charter school. 14.22School districts and charter schools must formally establish a periodic review cycle for 14.23the academic standards and related benchmarks in health, physical education, world 14.24languages, and career and technical education. 14.25 new text begin (h) The commissioner in the 2013-2014 school year and later must use the good new text end 14.26 new text begin cause exemption under section 14.388, subdivision 1, clause (3), to amend the rules new text end 14.27 new text begin governing state physical education standards to conform the state standards to changes in new text end 14.28 new text begin the standards developed by the National Association for Sport and Physical Education. new text end 14.29 new text begin Directions to the commissioner to embed technology and information literacy standards new text end 14.30 new text begin under paragraph (a) and other requirements related to state academic standards under new text end 14.31 new text begin this chapter do not apply. new text end 14.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 14.33 new text begin and applies to all school districts and charter schools beginning in the 2012-2013 school new text end 14.34 new text begin year and later, except that paragraph (h) applies beginning in the 2013-2014 school year new text end 14.35 new text begin and later. A school district or charter school is strongly encouraged to implement state new text end 14.36 new text begin physical education standards in an earlier school year than the 2012-2013 school year if it new text end 15.1 new text begin has adopted physical education standards equivalent to the standards developed by the new text end 15.2 new text begin National Association for Sport and Physical Education under section 39 on the effective new text end 15.3 new text begin date of this act, or if it is scheduled to undertake the periodic review of its local physical new text end 15.4 new text begin education standards under paragraph (g) in a school year before the 2012-2013 school new text end 15.5 new text begin year, it is strongly encouraged to implement state physical education standards consistent new text end 15.6 new text begin with section 39 in an earlier school year. new text end 15.7    Sec. 4. Minnesota Statutes 2008, section 120B.15, is amended to read: 15.8120B.15 GIFTED AND TALENTED STUDENTS PROGRAMS. 15.9    (a) School districts new text begin and charter schools new text end may identify students, locally develop 15.10programs new text begin addressing instructional and affective needs new text end , provide staff development, and 15.11evaluate programs to provide gifted and talented students with challenging new text begin and appropriate new text end 15.12educational programs. 15.13    (b) School districts new text begin and charter schools new text end may adopt guidelines for assessing and 15.14identifying students for participation in gifted and talented programs. The guidelines 15.15should include the use of: 15.16    (1) multiple and objective criteria; and 15.17    (2) assessments and procedures that are valid and reliable, fair, and based on 15.18current theory and research new text begin addressing the use of tools and methods that are sensitive to new text end 15.19 new text begin underrepresented groups, including, but not limited to, students who are low income, new text end 15.20 new text begin minority, gifted and learning disabled, and English language learners new text end . 15.21    (c) School districts new text begin and charter schools new text end must adopt procedures for the academic 15.22acceleration of gifted and talented students. These procedures must include how the 15.23district will: 15.24    (1) assess a student's readiness and motivation for acceleration; and 15.25    (2) match the level, complexity, and pace of the curriculum to a student to achieve 15.26the best type of academic acceleration for that student. 15.27    Sec. 5. new text begin [120B.21] MENTAL HEALTH EDUCATION. new text end 15.28 new text begin The legislature encourages districts to provide instruction in mental health for new text end 15.29 new text begin students in grades 7 through 12. Instruction must be aligned with local health standards new text end 15.30 new text begin and integrated into a district's existing programs, curriculum, or the general school new text end 15.31 new text begin environment. The commissioner of education, in consultation with mental health new text end 15.32 new text begin organizations, shall provide assistance to districts including: new text end 15.33 new text begin (1) age-appropriate model learning activities for grades 7 through 12 that address new text end 15.34 new text begin mental health components of the National Health Education Standards and the benchmarks new text end 16.1 new text begin developed by the department's quality teaching network in health and best practices in new text end 16.2 new text begin mental health education; and new text end 16.3 new text begin (2) a directory of resources for planning and implementing age-appropriate mental new text end 16.4 new text begin health curriculum and instruction in grades 7 through 12. new text end 16.5    Sec. 6. Minnesota Statutes 2009 Supplement, section 120B.30, subdivision 1, is 16.6amended to read: 16.7    Subdivision 1. Statewide testing. (a) The commissioner, with advice from experts 16.8with appropriate technical qualifications and experience and stakeholders, consistent with 16.9subdivision 1a, shall include in the comprehensive assessment system, for each grade 16.10level to be tested, state-constructed tests developed from and new text begin to be computer-adaptive new text end 16.11 new text begin reading and mathematics assessments for general education students that are new text end aligned 16.12with the state's required academic standards under section 120B.021, include multiple 16.13choice questions, and be administered annually to all students in grades 3 through 8. 16.14State-developed high school tests aligned with the state's required academic standards 16.15under section 120B.021 and administered to all high school students in a subject other 16.16than writing must include multiple choice questions. The commissioner shall establish 16.17one or more months during which schools shall administer the tests to students each 16.18school year. For students enrolled in grade 8 before the 2005-2006 school year, Minnesota 16.19basic skills tests in reading, mathematics, and writing shall fulfill students' basic skills 16.20testing requirements for a passing state notation. The passing scores of basic skills tests in 16.21reading and mathematics are the equivalent of 75 percent correct for students entering 16.22grade 9 based on the first uniform test administered in February 1998. Students who have 16.23not successfully passed a Minnesota basic skills test by the end of the 2011-2012 school 16.24year must pass the graduation-required assessments for diploma under paragraph (b). 16.25(b) The state assessment system must be aligned to the most recent revision of 16.26academic standards as described in section 120B.023 in the following manner: 16.27(1) mathematics; 16.28(i) grades 3 through 8 beginning in the 2010-2011 school year; and 16.29(ii) high school level beginning in the 2013-2014 new text begin 2014-2015 new text end school year; 16.30(2) science; grades 5 and 8 and at the high school level beginning in the 2011-2012 16.31school year; and 16.32(3) language arts and reading; grades 3 through 8 and high school level beginning in 16.33the 2012-2013 school year. 16.34    (c) For students enrolled in grade 8 in the 2005-2006 school year and later, only the 16.35following options shall fulfill students' state graduation test requirements: 17.1    (1) for reading and mathematics: 17.2    (i) obtaining an achievement level equivalent to or greater than proficient as 17.3determined through a standard setting process on the Minnesota comprehensive 17.4assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing 17.5score as determined through a standard setting process on the graduation-required 17.6assessment for diploma in grade 10 for reading and grade 11 for mathematics or 17.7subsequent retests; 17.8    (ii) achieving a passing score as determined through a standard setting process on the 17.9state-identified language proficiency test in reading and the mathematics test for English 17.10language learners or the graduation-required assessment for diploma equivalent of those 17.11assessments for students designated as English language learners; 17.12    (iii) achieving an individual passing score on the graduation-required assessment 17.13for diploma as determined by appropriate state guidelines for students with an individual 17.14education plan or 504 plan; 17.15    (iv) obtaining achievement level equivalent to or greater than proficient as 17.16determined through a standard setting process on the state-identified alternate assessment 17.17or assessments in grade 10 for reading and grade 11 for mathematics for students with 17.18an individual education plan; or 17.19    (v) achieving an individual passing score on the state-identified alternate assessment 17.20or assessments as determined by appropriate state guidelines for students with an 17.21individual education plan; and 17.22    (2) for writing: 17.23    (i) achieving a passing score on the graduation-required assessment for diploma; 17.24    (ii) achieving a passing score as determined through a standard setting process on 17.25the state-identified language proficiency test in writing for students designated as English 17.26language learners; 17.27    (iii) achieving an individual passing score on the graduation-required assessment 17.28for diploma as determined by appropriate state guidelines for students with an individual 17.29education plan or 504 plan; or 17.30    (iv) achieving an individual passing score on the state-identified alternate assessment 17.31or assessments as determined by appropriate state guidelines for students with an 17.32individual education plan. 17.33    (d) Students enrolled in grade 8 in any school year from the 2005-2006 school 17.34year to the 2009-2010 school year who do not pass the mathematics graduation-required 17.35assessment for diploma under paragraph (b) are eligible to receive a high school diploma 17.36with a passing state notation if they: 18.1(1) complete with a passing score or grade all state and local coursework and credits 18.2required for graduation by the school board granting the students their diploma; 18.3(2) participate in district-prescribed academic remediation in mathematics; and 18.4    (3) fully participate in at least two retests of the mathematics GRAD test or until 18.5they pass the mathematics GRAD test, whichever comes first. A school, district, or 18.6charter school must place new text begin on the high school transcript new text end a student's highest new text begin current pass new text end 18.7 new text begin status for each subject that has a required graduation new text end assessment score for each of the 18.8following assessments on the student's high school transcript: the mathematics Minnesota 18.9Comprehensive Assessment, reading Minnesota Comprehensive Assessment, and writing 18.10Graduation-Required Assessment for Diploma, and when applicable, the mathematics 18.11Graduation-Required Assessment for Diploma and reading Graduation-Required 18.12Assessment for Diploma. 18.13In addition, the school board granting the students their diplomas may formally 18.14decide to include a notation of high achievement on the high school diplomas of those 18.15graduating seniors who, according to established school board criteria, demonstrate 18.16exemplary academic achievement during high school. 18.17(e) The 3rd through 8th grade new text begin computer-adaptive assessments new text end and high school test 18.18results shall be available to districts for diagnostic purposes affecting student learning and 18.19district instruction and curriculum, and for establishing educational accountability. The 18.20commissioner must disseminate to the public the new text begin computer-adaptive assessments and new text end high 18.21school test results upon receiving those results. 18.22    (f) The 3rd through 8th grade new text begin computer-adaptive assessments new text end and high school tests 18.23must be aligned with state academic standards. The commissioner shall determine the 18.24testing process and the order of administration. The statewide results shall be aggregated 18.25at the site and district level, consistent with subdivision 1a. 18.26    (g) In addition to the testing and reporting requirements under this section, the 18.27commissioner shall include the following components in the statewide public reporting 18.28system: 18.29    (1) uniform statewide testing of all students in grades 3 through 8 and at the high 18.30school level that provides appropriate, technically sound accommodations or alternate 18.31assessments; 18.32    (2) educational indicators that can be aggregated and compared across school 18.33districts and across time on a statewide basis, including average daily attendance, high 18.34school graduation rates, and high school drop-out rates by age and grade level; 18.35    (3) state results on the American College Test; and 19.1    (4) state results from participation in the National Assessment of Educational 19.2Progress so that the state can benchmark its performance against the nation and other 19.3states, and, where possible, against other countries, and contribute to the national effort 19.4to monitor achievement. 19.5 new text begin (h) Notwithstanding other law to the contrary, the commissioner must not sign a new text end 19.6 new text begin memorandum of understanding, agree to participate in a consortium or partnership, or new text end 19.7 new text begin enter into any other agreement with any other state to develop shared common assessments new text end 19.8 new text begin of K-12 academic standards without first receiving specific legislative authorization. new text end 19.9 new text begin EFFECTIVE DATE. new text end new text begin Paragraph (h) is effective the day following final enactment, new text end 19.10 new text begin and applies to agreements entered into after the effective date of this act. Requirements for new text end 19.11 new text begin using computer-adaptive mathematics assessments for grades 3 through 8 apply in the new text end 19.12 new text begin 2011-2012 school year and later and requirements for using computer-adaptive reading new text end 19.13 new text begin assessments for grades 3 through 8 apply in the 2013-2014 school year and later. new text end 19.14    Sec. 7. Minnesota Statutes 2009 Supplement, section 120B.30, subdivision 1a, is 19.15amended to read: 19.16    Subd. 1a. Statewide and local assessments; results. (a) new text begin For purposes of this new text end 19.17 new text begin section, the following definitions have the meanings given them. new text end 19.18 new text begin (1) "Computer-adaptive assessments" means fully adaptive assessments or partially new text end 19.19 new text begin adaptive assessments. new text end 19.20 new text begin (2) "Fully adaptive assessments" include test items that are on-grade level and items new text end 19.21 new text begin that may be above or below a student's grade level. new text end 19.22 new text begin (3) "Partially adaptive assessments" include two portions of test items, where one new text end 19.23 new text begin portion is limited to on-grade level test items and a second portion includes test items that new text end 19.24 new text begin are on-grade level or above or below a student's grade level. new text end 19.25 new text begin (4) "On-grade level" test items contain subject area content that is aligned to state new text end 19.26 new text begin academic standards for the grade level of the student taking the assessment. new text end 19.27 new text begin (5) "Above-grade level" test items contain subject area content that is above the grade new text end 19.28 new text begin level of the student taking the assessment and are considered aligned with state academic new text end 19.29 new text begin standards to the extent they are aligned with content represented in state academic new text end 19.30 new text begin standards above the grade level of the student taking the assessment. Notwithstanding new text end 19.31 new text begin the student's grade level, administering above-grade level test items to a student does not new text end 19.32 new text begin violate the requirement that state assessments must be aligned with state standards. new text end 19.33 new text begin (6) "Below-grade level" test items contain subject area content that is below new text end 19.34 new text begin the grade level of the student taking the test and are considered aligned with state new text end 19.35 new text begin academic standards to the extent they are aligned with content represented in state new text end 20.1 new text begin academic standards below the student's current grade level. Notwithstanding the student's new text end 20.2 new text begin grade level, administering below-grade level test items to a student does not violate the new text end 20.3 new text begin requirement that state assessments must be aligned with state standards. new text end 20.4 new text begin (b) The commissioner must use fully adaptive assessments to the extent no net loss new text end 20.5 new text begin of federal and state funds occurs as a result of using these assessments. If a net loss of new text end 20.6 new text begin federal and state funds were to occur under this subdivision, then the commissioner must new text end 20.7 new text begin use partially adaptive assessments to meet existing federal educational accountability new text end 20.8 new text begin requirements. new text end 20.9 new text begin (c) new text end For purposes of conforming with existing federal educational accountability 20.10requirements, the commissioner must develop new text begin and implement computer-adaptive new text end reading 20.11and mathematics assessments for grades 3 through 8, state-developed high school 20.12reading and mathematics tests aligned with state academic standards, and science 20.13assessments under clause (2) that districts and sites must use to monitor student growth 20.14toward achieving those standards. new text begin In developing and implementing computer-adaptive new text end 20.15 new text begin assessments, the commissioner must allow for paper-and-pencil tests that are the new text end 20.16 new text begin equivalent of computer-adaptive assessments under this section to the extent these tests new text end 20.17 new text begin are needed to accommodate the technology capacity of individual school districts. new text end The 20.18commissioner must not develop statewide assessments for academic standards in social 20.19studies, health and physical education, and the arts. The commissioner must require: 20.20    (1) annual new text begin computer-adaptive new text end reading and mathematics assessments in grades 3 20.21through 8, and high school reading and mathematics tests; and 20.22    (2) annual science assessments in one grade in the grades 3 through 5 span, the 20.23grades 6 through 8 span, and a life sciences assessment in the grades 9 through 12 span, 20.24and the commissioner must not require students to achieve a passing score on high school 20.25science assessments as a condition of receiving a high school diploma. 20.26 new text begin (d) The commissioner must ensure that for annual computer-adaptive assessments: new text end 20.27 new text begin (1) individual student performance data and achievement and summary reports are new text end 20.28 new text begin available to all schools within three school days of when students take an assessment; new text end 20.29 new text begin (2) growth information is available for each student from the student's first new text end 20.30 new text begin assessment to each proximate assessment using a constant measurement scale; new text end 20.31 new text begin (3) parents, teachers, and school administrators are able to use elementary and new text end 20.32 new text begin middle school student performance data to project student achievement in high school; new text end 20.33 new text begin (4) teachers and school administrators are able to use formative information about new text end 20.34 new text begin students' academic strengths and weaknesses, to the extent it is available, to improve new text end 20.35 new text begin student instruction and indicate specific skills and knowledge that should be introduced new text end 21.1 new text begin and developed for students at given score levels, organized by strands within subject areas, new text end 21.2 new text begin and aligned to state academic standards; and new text end 21.3 new text begin (5) the maximum number of school districts have the opportunity to replace new text end 21.4 new text begin district-purchased computer-adaptive assessments with state-developed and state-funded new text end 21.5 new text begin computer-adaptive assessments. new text end 21.6    (b) new text begin (e) new text end The commissioner must ensure that all statewide tests administered to 21.7elementary and secondary students measure students' academic knowledge and skills and 21.8not students' values, attitudes, and beliefs. 21.9    (c) new text begin (f) new text end Reporting of assessment results must: 21.10    (1) provide timely, useful, and understandable information on the performance of 21.11individual students, schools, school districts, and the state; 21.12    (2) include a value-added growth indicator of student achievement under section 21.13120B.35, subdivision 3 , paragraph (b); and 21.14    (3)(i) for students enrolled in grade 8 before the 2005-2006 school year, determine 21.15whether students have met the state's basic skills requirements; and 21.16    (ii) for students enrolled in grade 8 in the 2005-2006 school year and later, determine 21.17whether students have met the state's academic standards. 21.18    (d) new text begin (g) new text end Consistent with applicable federal law and subdivision 1, paragraph (d), 21.19clause (1), the commissioner must include appropriate, technically sound accommodations 21.20or alternative assessments for the very few students with disabilities for whom statewide 21.21assessments are inappropriate and for students with limited English proficiency. 21.22    (e) new text begin (h) new text end A school, school district, and charter school must administer statewide 21.23assessments under this section, as the assessments become available, to evaluate student 21.24proficiency in the context of the state's grade level academic standards. If a state 21.25assessment is not available, a school, school district, and charter school must determine 21.26locally if a student has met the required academic standards. A school, school district, 21.27or charter school may use a student's performance on a statewide assessment as one of 21.28multiple criteria to determine grade promotion or retention. A school, school district, or 21.29charter school may use a high school student's performance on a statewide assessment 21.30as a percentage of the student's final grade in a course, or place a student's assessment 21.31score on the student's transcript. 21.32 new text begin EFFECTIVE DATE. new text end new text begin Requirements for using computer-adaptive mathematics new text end 21.33 new text begin assessments for grades 3 through 8 apply in the 2011-2012 school year and later and new text end 21.34 new text begin requirements for using computer-adaptive reading assessments for grades 3 through 8 new text end 21.35 new text begin apply in the 2013-2014 school year and later. new text end 22.1    Sec. 8. Minnesota Statutes 2009 Supplement, section 120B.30, is amended by adding a 22.2subdivision to read: 22.3     new text begin Subd. 1b. new text end new text begin High school algebra end-of-course assessment. new text end new text begin (a) Notwithstanding new text end 22.4 new text begin subdivision 1, the commissioner shall establish a statewide high school algebra new text end 22.5 new text begin end-of-course assessment for students entering grade 8 in the 2010-2011 school year new text end 22.6 new text begin and later that provides information on the college and career readiness of Minnesota new text end 22.7 new text begin students and fulfills federal accountability requirements, consistent with this subdivision new text end 22.8 new text begin and related rules. For purposes of this subdivision, "college and career readiness" means new text end 22.9 new text begin the knowledge and skills that a high school graduate needs to do either credit-bearing new text end 22.10 new text begin coursework at a two-year or four-year college or university or career-track employment new text end 22.11 new text begin that pays a living wage, provides employment benefits, and offers clear pathways for new text end 22.12 new text begin advancement through further education and training. new text end 22.13 new text begin (b) This statewide high school algebra end-of-course assessment must conform new text end 22.14 new text begin with the following: new text end 22.15 new text begin (1) align with the most recently revised academic content standards under section new text end 22.16 new text begin 120B.023, subdivision 2; new text end 22.17 new text begin (2) include both multiple-choice and open-ended items that assess the appropriate new text end 22.18 new text begin algebra knowledge and skills contained in the state's academic content standards; new text end 22.19 new text begin (3) be designed for computer administration and scoring so that, beginning the new text end 22.20 new text begin second year a computerized test is administered and as soon as practicable during the new text end 22.21 new text begin first year a computerized test is administered, the exam results of students who take new text end 22.22 new text begin computerized tests are available to the school or district within three full school days after new text end 22.23 new text begin the exam is administered, among other design characteristics; new text end 22.24 new text begin (4) be administered at regular intervals that align with the most common high school new text end 22.25 new text begin schedules in Minnesota; new text end 22.26 new text begin (5) generate achievement levels established through a professionally recognized new text end 22.27 new text begin methodology; new text end 22.28 new text begin (6) use achievement level descriptors that define a student's college and career new text end 22.29 new text begin readiness; new text end 22.30 new text begin (7) comprise 20 percent of the student's overall course grade in the corresponding new text end 22.31 new text begin course; new text end 22.32 new text begin (8) require a student who does not pass a high school algebra course to (i) new text end 22.33 new text begin retake the course or complete a district-authorized credit recovery class, (ii) opt, at the new text end 22.34 new text begin student's election, to retake the end-of-course assessment within a regularly scheduled new text end 22.35 new text begin administration window, and (iii) have the student select the exam score on the initial test new text end 22.36 new text begin or the retest to count as the equivalent of 20 percent of the student's overall course grade; new text end 23.1 new text begin (9) allow an eligible student to meet this requirement through an alternative method new text end 23.2 new text begin that demonstrates the student's college and career readiness: new text end 23.3 new text begin (i) for high school students who transfer into Minnesota from another state where new text end 23.4 new text begin the algebra course content, as applicable, is of equal or greater rigor, pass that state's high new text end 23.5 new text begin school course and graduation requirements in algebra, as applicable; new text end 23.6 new text begin (ii) allow a student who has an active individualized education program to achieve a new text end 23.7 new text begin passing status at an individual level as prescribed by the commissioner; new text end 23.8 new text begin (iii) waive the required exam for a high school student who is an English language new text end 23.9 new text begin learner under section 124D.59 and who has been enrolled for four or fewer years in a new text end 23.10 new text begin school in which English is the primary language of instruction; or new text end 23.11 new text begin (iv) other alternative methods recommended by the Assessment Advisory new text end 23.12 new text begin Committee, if subsequently specifically authorized by law to allow other alternative new text end 23.13 new text begin methods; new text end 23.14 new text begin (10) use three consecutive school years of research and analysis through the new text end 23.15 new text begin 2014-2015 school year, as prescribed by the commissioner, to calculate and report an new text end 23.16 new text begin alignment index that compares students' final grades in this course with their end-of-course new text end 23.17 new text begin assessment scores; new text end 23.18 new text begin (11) subsequent to calculating and reporting the alignment index under clause (10), new text end 23.19 new text begin require schools that are highly misaligned for two or more consecutive school years to new text end 23.20 new text begin transmit written notice of the misalignment to all parents of students enrolled in the school, new text end 23.21 new text begin as prescribed by the commissioner; and new text end 23.22 new text begin (12) when schools are highly misaligned for two or more consecutive years under new text end 23.23 new text begin clause (11), use school district funds under section 122A.60, subdivision 1a, paragraph new text end 23.24 new text begin (a), to correct the misalignment. new text end 23.25 new text begin (c) The requirements of this subdivision apply to students in public schools, new text end 23.26 new text begin including charter schools, who enter grade 8 in the 2010-2011 school year or later. The new text end 23.27 new text begin commissioner may establish a transition period where students who enter grade 8 in the new text end 23.28 new text begin 2010-2011 or 2011-2012 school year graduate either under the Graduation-Required new text end 23.29 new text begin Assessment for Diploma requirements under section 120B.30, subdivision 1, or this new text end 23.30 new text begin subdivision. The commissioner may seek authority from the legislature to adjust the new text end 23.31 new text begin time line under this paragraph if circumstances such as changes in federal law governing new text end 23.32 new text begin educational accountability and assessment warrant such an adjustment. new text end 23.33 new text begin (d) To fully implement this subdivision and enable school districts to provide new text end 23.34 new text begin intervention and support to struggling students and improve instruction for all students, new text end 23.35 new text begin the commissioner must provide districts with (1) a benchmark assessment aligned with new text end 23.36 new text begin the high school algebra end-of-course assessment, and as funding allows, may provide new text end 24.1 new text begin districts with (2) an item bank available to teachers for creating formative assessments to new text end 24.2 new text begin help students prepare for the high school algebra end-of-course assessment. new text end 24.3 new text begin (e) The commissioner shall expand the membership and purpose of the Assessment new text end 24.4 new text begin Advisory Committee established under section 120B.365 to include assessment experts new text end 24.5 new text begin and practitioners from both secondary and postsecondary education systems and other new text end 24.6 new text begin appropriate stakeholders to monitor the implementation of and student outcomes based new text end 24.7 new text begin on the algebra end-of-course assessment and policies and the state support available new text end 24.8 new text begin to districts, including small or rural districts, under this subdivision. This committee new text end 24.9 new text begin shall report annually by February 15 to the commissioner and the legislature on the new text end 24.10 new text begin implementation of and student outcomes based on the assessment and policies under this new text end 24.11 new text begin subdivision. Notwithstanding section 15.059, subdivision 3, committee members shall not new text end 24.12 new text begin receive compensation, per diem payments, or reimbursement for expenses. new text end 24.13 new text begin (f) Using a solicitation process that includes a "request for proposal" process and new text end 24.14 new text begin multiple responses, the commissioner shall contract for at least two independent studies new text end 24.15 new text begin at two-year intervals to evaluate (1) the implementation of the requirements and (2) the new text end 24.16 new text begin availability and efficacy of resources to support and improve student outcomes based on new text end 24.17 new text begin student achievement data under this subdivision. The commissioner must submit the new text end 24.18 new text begin results of the first study to the education policy and finance committees of the legislature new text end 24.19 new text begin by February 15, 2015. The commissioner must submit the results of the second study new text end 24.20 new text begin to the legislature by February 15, 2017. new text end 24.21 new text begin (g) The commissioner must not begin to develop additional statewide end-of-course new text end 24.22 new text begin exams in geometry, chemistry, or physics until specifically authorized in law to do so. new text end 24.23 new text begin (h) A district or charter school must indicate on a student's transcript the student's new text end 24.24 new text begin level of college and career readiness in algebra under this subdivision after the levels have new text end 24.25 new text begin been established through a professionally recognized methodology. new text end 24.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 24.27    Sec. 9. Minnesota Statutes 2009 Supplement, section 120B.30, subdivision 3, is 24.28amended to read: 24.29    Subd. 3. Reporting. The commissioner shall report test data new text begin results new text end publicly and 24.30to stakeholders, including the performance achievement levels developed from students' 24.31unweighted test scores in each tested subject and a listing of demographic factors that 24.32strongly correlate with student performance. new text begin The test results must not include personally new text end 24.33 new text begin identifiable information as defined in Code of Federal Regulations, title 34, section 99.3. new text end 24.34The commissioner shall also report data that compares performance results among school 24.35sites, school districts, Minnesota and other states, and Minnesota and other nations. The 25.1commissioner shall disseminate to schools and school districts a more comprehensive 25.2report containing testing information that meets local needs for evaluating instruction 25.3and curriculum. 25.4    Sec. 10. Minnesota Statutes 2009 Supplement, section 120B.30, subdivision 4, is 25.5amended to read: 25.6    Subd. 4. Access to tests. new text begin Consistent with section 13.34, new text end the commissioner must 25.7adopt and publish a policy to provide public and parental access for review of basic skills 25.8tests, Minnesota Comprehensive Assessments, or any other such statewide test and 25.9assessment new text begin which would not compromise the objectivity or fairness of the testing or new text end 25.10 new text begin examination process new text end . Upon receiving a written request, the commissioner must make 25.11available to parents or guardians a copy of their student's actual responses to the test 25.12questions for their review. 25.13    Sec. 11. Minnesota Statutes 2009 Supplement, section 120B.35, subdivision 3, is 25.14amended to read: 25.15    Subd. 3. State growth target; other state measures. (a) The state's educational 25.16assessment system measuring individual students' educational growth is based on 25.17indicators of achievement growth that show an individual student's prior achievement. 25.18Indicators of achievement and prior achievement must be based on highly reliable 25.19statewide or districtwide assessments. 25.20(b) The commissioner, in consultation with a stakeholder group that includes 25.21assessment and evaluation directors and staff and researchers must implement a model 25.22that uses a value-added growth indicator and includes criteria for identifying schools 25.23and school districts that demonstrate medium and high growth under section 120B.299, 25.24subdivisions 8 and 9, and may recommend other value-added measures under section 25.25120B.299, subdivision 3 . The model may be used to advance educators' professional 25.26development and replicate programs that succeed in meeting students' diverse learning 25.27needs. Data on individual teachers generated under the model are personnel data under 25.28section 13.43. The model must allow users to: 25.29(1) report student growth consistent with this paragraph; and 25.30(2) for all student categories, report and compare aggregated and disaggregated state 25.31growth data using the nine student categories identified under the federal 2001 No Child 25.32Left Behind Act and two student gender categories of male and female, respectively, 25.33following appropriate reporting practices to protect nonpublic student data. 26.1The commissioner must report separate measures of student growth and proficiency, 26.2consistent with this paragraph. 26.3(c) When reporting student performance under section 120B.36, subdivision 1, the 26.4commissioner annually, beginning July 1, 2011, must report two core measures indicating 26.5the extent to which current high school graduates are being prepared for postsecondary 26.6academic and career opportunities: 26.7(1) a preparation measure indicating the number and percentage of high school 26.8graduates in the most recent school year who completed course work important to 26.9preparing them for postsecondary academic and career opportunities, consistent with 26.10the core academic subjects required for admission to Minnesota's public colleges and 26.11universities as determined by the Office of Higher Education under chapter 136A; and 26.12(2) a rigorous coursework measure indicating the number and percentage of high 26.13school graduates in the most recent school year who successfully completed one or more 26.14college-level advanced placement, international baccalaureate, postsecondary enrollment 26.15options including concurrent enrollment, other rigorous courses of study under section 26.16120B.021, subdivision 1a , or industry certification courses or programs. 26.17When reporting the core measures under clauses (1) and (2), the commissioner must also 26.18analyze and report separate categories of information using the nine student categories 26.19identified under the federal 2001 No Child Left Behind Act and two student gender 26.20categories of male and female, respectively, following appropriate reporting practices to 26.21protect nonpublic student data. 26.22(d) When reporting student performance under section 120B.36, subdivision 1, the 26.23commissioner annually, beginning July 1, 2014, must report summary data on school 26.24safety and students' engagement and connection at school. The summary data under this 26.25paragraph are separate from and must not be used for any purpose related to measuring 26.26or evaluating the performance of classroom teachers. The commissioner, in consultation 26.27with qualified experts on student engagement and connection and classroom teachers, 26.28must identify highly reliable variables that generate summary data under this paragraph. 26.29The summary data may be used at school, district, and state levels only. Any data on 26.30individuals received, collected, or created that are used to generate the summary data 26.31under this paragraph are nonpublic data under section 13.02, subdivision 9. 26.32 new text begin (e) For purposes of statewide educational accountability, the commissioner must new text end 26.33 new text begin identify and report measures that demonstrate the success of school districts, school sites, new text end 26.34 new text begin charter schools, and alternative program providers in improving the graduation outcomes new text end 26.35 new text begin of students under this paragraph. When reporting student performance under section new text end 26.36 new text begin 120B.36, subdivision 1, the commissioner, beginning July 1, 2013, must annually report new text end 27.1 new text begin summary data on (i) the four- and six-year graduation rates of students throughout the state new text end 27.2 new text begin who are identified as at risk of not graduating or off track to graduate, including students new text end 27.3 new text begin who are eligible to participate in a program under section 123A.05 or 124D.68, among new text end 27.4 new text begin other students, and (ii) the success that school districts, school sites, charter schools, and new text end 27.5 new text begin alternative program providers experience in: new text end 27.6 new text begin (1) identifying at-risk and off-track student populations by grade; new text end 27.7 new text begin (2) providing successful prevention and intervention strategies for at-risk students; new text end 27.8 new text begin (3) providing successful recuperative and recovery or reenrollment strategies for new text end 27.9 new text begin off-track students; and new text end 27.10 new text begin (4) improving the graduation outcomes of at-risk and off-track students. new text end 27.11     new text begin For purposes of this paragraph, a student who is at risk of not graduating is a student new text end 27.12 new text begin in eighth or ninth grade who meets one or more of the following criteria: first enrolled new text end 27.13 new text begin in an English language learners program in eighth or ninth grade and may be older than new text end 27.14 new text begin other students enrolled in the same grade; as an eighth grader, is absent from school for at new text end 27.15 new text begin least 20 percent of the days of instruction during the school year, is two or more years new text end 27.16 new text begin older than other students enrolled in the same grade, or fails multiple core academic new text end 27.17 new text begin courses; or as a ninth grader, fails multiple ninth grade core academic courses in English new text end 27.18 new text begin language arts, math, science, or social studies. new text end 27.19     new text begin For purposes of this paragraph, a student who is off track to graduate is a student new text end 27.20 new text begin who meets one or more of the following criteria: first enrolled in an English language new text end 27.21 new text begin learners program in high school and is older than other students enrolled in the same grade; new text end 27.22 new text begin is a returning dropout; is 16 or 17 years old and two or more academic years off track to new text end 27.23 new text begin graduate; is 18 years or older and two or more academic years off track to graduate; or is new text end 27.24 new text begin 18 years or older and may graduate within one school year. new text end 27.25 new text begin EFFECTIVE DATE. new text end new text begin Paragraph (e) applies to data that are collected in the new text end 27.26 new text begin 2012-2013 school year and later and reported annually beginning July 1, 2013, consistent new text end 27.27 new text begin with the recommendations the commissioner receives from recognized and qualified new text end 27.28 new text begin experts on improving differentiated graduation rates, and establishing alternative routes to new text end 27.29 new text begin a standard high school diploma for at-risk and off-track students. new text end 27.30    Sec. 12. Minnesota Statutes 2009 Supplement, section 120B.36, subdivision 1, is 27.31amended to read: 27.32    Subdivision 1. School performance report cards. (a) The commissioner 27.33shall report student academic performance under section 120B.35, subdivision 2; the 27.34percentages of students showing low, medium, and high growth under section 120B.35, 27.35subdivision 3 , paragraph (b); school safety and student engagement and connection 28.1under section 120B.35, subdivision 3, paragraph (d); rigorous coursework under section 28.2120B.35, subdivision 3 , paragraph (c); new text begin the four- and six-year graduation rates of at-risk and new text end 28.3 new text begin off-track students throughout the state under section 120B.35, subdivision 3, paragraph new text end 28.4 new text begin (e), and the success that school districts, school sites, charter schools, and alternative new text end 28.5 new text begin program providers experience in their efforts to improve the graduation outcomes of new text end 28.6 new text begin those students; new text end two separate student-to-teacher ratios that clearly indicate the definition 28.7of teacher consistent with sections 122A.06 and 122A.15 for purposes of determining 28.8these ratios; staff characteristics excluding salaries; student enrollment demographics; 28.9district mobility; and extracurricular activities. The report also must indicate a school's 28.10adequate yearly progress status, and must not set any designations applicable to high- and 28.11low-performing schools due solely to adequate yearly progress status. 28.12    (b) The commissioner shall develop, annually update, and post on the department 28.13Web site school performance report cards. 28.14    (c) The commissioner must make available performance report cards by the 28.15beginning of each school year. 28.16    (d) A school or district may appeal its adequate yearly progress status in writing to 28.17the commissioner within 30 days of receiving the notice of its status. The commissioner's 28.18decision to uphold or deny an appeal is final. 28.19    (e) School performance report card data are nonpublic data under section 13.02, 28.20subdivision 9 , until not later than ten days after the appeal procedure described in 28.21paragraph (d) concludes. The department shall annually post school performance report 28.22cards to its public Web site no later than September 1. 28.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 28.24 new text begin and applies to annual reports beginning July 1, 2013. new text end 28.25    Sec. 13. new text begin [121A.215] LOCAL SCHOOL DISTRICT WELLNESS POLICIES; new text end 28.26 new text begin WEB SITE. new text end 28.27 new text begin Where available, a school district must post its current local school wellness policy new text end 28.28 new text begin on its Web site. new text end 28.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective August 1, 2010. new text end 28.30    Sec. 14. Minnesota Statutes 2009 Supplement, section 122A.09, subdivision 4, is 28.31amended to read: 28.32    Subd. 4. License and rules. (a) The board must new text begin may new text end adopt new text begin new rules and amend new text end 28.33 new text begin any existing new text end rules to license public school teachers and interns subject to new text begin only under new text end 29.1 new text begin specific legislative authority and consistent with the requirements of new text end chapter 14. new text begin This new text end 29.2 new text begin paragraph does not prohibit the board from making technical changes or corrections to new text end 29.3 new text begin rules or repealing rules adopted by the board. new text end 29.4(b) The board must adopt rules requiring a person to successfully complete a skills 29.5examination in reading, writing, and mathematics as a requirement for initial teacher 29.6licensure. Such rules must require college and universities offering a board-approved 29.7teacher preparation program to provide remedial assistance to persons who did not 29.8achieve a qualifying score on the skills examination, including those for whom English is 29.9a second language. 29.10(c) The board must adopt rules to approve teacher preparation programs. The board, 29.11upon the request of a postsecondary student preparing for teacher licensure or a licensed 29.12graduate of a teacher preparation program, shall assist in resolving a dispute between the 29.13person and a postsecondary institution providing a teacher preparation program when the 29.14dispute involves an institution's recommendation for licensure affecting the person or the 29.15person's credentials. At the board's discretion, assistance may include the application 29.16of chapter 14. 29.17(d) The board must provide the leadership and shall adopt rules for the redesign of 29.18teacher education programs to implement a research based, results-oriented curriculum 29.19that focuses on the skills teachers need in order to be effective. The board shall implement 29.20new systems of teacher preparation program evaluation to assure program effectiveness 29.21based on proficiency of graduates in demonstrating attainment of program outcomes. 29.22(e) The board must adopt rules requiring candidates for initial licenses to 29.23successfully complete new text begin pass new text end an examination of general pedagogical knowledge and 29.24examinations of licensure-specific teaching skills. The rules shall be effective by 29.25September 1, 2001. The rules under this paragraph also must require candidates for 29.26initial licenses to teach prekindergarten or elementary students to successfully complete, 29.27as part of the examination of licensure-specific teaching skills, test items assessing the 29.28candidates' knowledge, skill, and ability in comprehensive, scientifically based reading 29.29instruction under section 122A.06, subdivision 4, and their knowledge and understanding 29.30of the foundations of reading development, the development of reading comprehension, 29.31and reading assessment and instruction, and their ability to integrate that knowledge 29.32and understanding. new text begin The rules under this paragraph also must require general education new text end 29.33 new text begin candidates for initial licenses to teach prekindergarten or elementary students to pass, new text end 29.34 new text begin as part of the examination of licensure-specific teaching skills, test items assessing the new text end 29.35 new text begin candidates' knowledge, skill, and ability in mathematics. new text end 30.1(f) The board must adopt rules requiring teacher educators to work directly with 30.2elementary or secondary school teachers in elementary or secondary schools to obtain 30.3periodic exposure to the elementary or secondary teaching environment. 30.4(g) The board must grant licenses to interns and to candidates for initial licenses. 30.5(h) The board must design and implement an assessment system which requires a 30.6candidate for an initial license and first continuing license to demonstrate the abilities 30.7necessary to perform selected, representative teaching tasks at appropriate levels. 30.8(i) The board must receive recommendations from local committees as established 30.9by the board for the renewal of teaching licenses. new text begin Committee recommendations must be new text end 30.10 new text begin consistent with section 122A.18, subdivision 4, paragraph (b). new text end 30.11(j) The board must grant life licenses to those who qualify according to requirements 30.12established by the board, and suspend or revoke licenses pursuant to sections 122A.20 and 30.13214.10 . The board must not establish any expiration date for application for life licenses. 30.14(k) The board must adopt rules that require all licensed teachers who are renewing 30.15their continuing license to include in their renewal requirements further preparation in 30.16the areas of using positive behavior interventions and in accommodating, modifying, and 30.17adapting curricula, materials, and strategies to appropriately meet the needs of individual 30.18students and ensure adequate progress toward the state's graduation rule. 30.19(l) In adopting rules to license public school teachers who provide health-related 30.20services for disabled children, the board shall adopt rules consistent with license or 30.21registration requirements of the commissioner of health and the health-related boards who 30.22license personnel who perform similar services outside of the school. 30.23(m) The board must adopt rules that require all licensed teachers who are renewing 30.24their continuing license to include in their renewal requirements further reading 30.25preparation, consistent with section 122A.06, subdivision 4. The rules do not take effect 30.26until they are approved by law. Teachers who do not provide direct instruction including, at 30.27least, counselors, school psychologists, school nurses, school social workers, audiovisual 30.28directors and coordinators, and recreation personnel are exempt from this section. 30.29(n) The board must adopt rules that require all licensed teachers who are renewing 30.30their continuing license to include in their renewal requirements further preparation 30.31in understanding the key warning signs of early-onset mental illness in children and 30.32adolescents. 30.33 new text begin (o) The board, consistent with section 122A.18, subdivision 4, paragraph (b), must new text end 30.34 new text begin amend its licensure renewal rules to include professional reflection and growth in best new text end 30.35 new text begin teaching practices in the preparation requirements for relicensure under this paragraph new text end 31.1 new text begin and paragraphs (i), (k), (m), and (n), and any other preparation requirements applicable to new text end 31.2 new text begin teachers seeking to renew their continuing license from the board. new text end 31.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 31.4 new text begin and applies to all new and amended rules proposed by the Board of Teaching, including all new text end 31.5 new text begin new and amended rules that are not yet formally adopted, except that the amendments new text end 31.6 new text begin to paragraphs (i) and (o) apply to licensees seeking relicensure beginning June 30, 2012. new text end 31.7 new text begin This section does not affect the requirement that the Board of Teaching continue to finally new text end 31.8 new text begin adopt rules initially proposed before the effective date of this section, to implement the new text end 31.9 new text begin requirement of Laws 2003, chapter 129, article 1, section 10, and Laws 2007, chapter new text end 31.10 new text begin 146, article 2, section 34, that the board adopt rules relating to credentials for education new text end 31.11 new text begin paraprofessionals. new text end 31.12    Sec. 15. new text begin [122A.091] BOARD OF TEACHING; TEACHER PERFORMANCE new text end 31.13 new text begin ASSESSMENTS. new text end 31.14 new text begin (a) Consistent with section 122A.09, subdivision 4, the Board of Teaching must new text end 31.15 new text begin adopt rules to establish a statewide teacher performance assessment system that is aligned new text end 31.16 new text begin with Minnesota's required K-12 academic standards and accommodates locally adopted new text end 31.17 new text begin alternative assessment measures including teacher portfolios. Teacher performance new text end 31.18 new text begin assessments must: new text end 31.19 new text begin (1) include training and a reliability review for educators who evaluate teachers' new text end 31.20 new text begin performance; new text end 31.21 new text begin (2) be integrated with board-approved teacher preparation requirements; and new text end 31.22 new text begin (3) correspond to the state and local resources allocated for this purpose. new text end 31.23 new text begin (b) To the extent resources are available, the Board of Teaching must: new text end 31.24 new text begin (1) convene a group of experts, where at least one-third of group members new text end 31.25 new text begin are classroom teachers, to advise the board about teacher performance standards, new text end 31.26 new text begin developmental scales for teacher candidates, and the design, content, administration, and new text end 31.27 new text begin scoring of teacher performance assessments; new text end 31.28 new text begin (2) design, develop, and implement assessment standards and a statewide training new text end 31.29 new text begin program for educators to evaluate teachers' performance; new text end 31.30 new text begin (3) establish a review panel to examine districts' use of teacher performance new text end 31.31 new text begin assessments; new text end 31.32 new text begin (4) periodically analyze the validity of assessment content and the reliability of new text end 31.33 new text begin assessment scores under this section; new text end 31.34 new text begin (5) establish and implement appropriate standards applicable to teacher candidates new text end 31.35 new text begin for demonstrating satisfactory performance; new text end 32.1 new text begin (6) analyze and eliminate bias in the performance assessments; new text end 32.2 new text begin (7) collect and analyze background information from teacher candidates who new text end 32.3 new text begin participate in a performance assessment, interpret and report the results, and use new text end 32.4 new text begin the information and results to analyze the quality and effectiveness of performance new text end 32.5 new text begin assessments; and new text end 32.6 new text begin (8) examine and revise board approval of teacher preparation programs and new text end 32.7 new text begin institutions to assure teacher candidates of opportunities to acquire the knowledge, skills, new text end 32.8 new text begin and abilities measured by the assessment system. new text end 32.9 new text begin (c) The board must ensure that performance assessments are ongoing, well-integrated new text end 32.10 new text begin into teacher preparation programs, aligned with state standards of effective teaching new text end 32.11 new text begin practices, and consistently applied to teacher candidates enrolled in board-approved new text end 32.12 new text begin teacher preparation programs. Performance assessments must meet the needs of teacher new text end 32.13 new text begin candidates, teacher preparation program providers, and school districts that employ newly new text end 32.14 new text begin licensed teachers by: new text end 32.15 new text begin (1) designing performance assessments that accommodate formative assessment new text end 32.16 new text begin information for teacher candidates, postsecondary faculty, and educators who evaluate new text end 32.17 new text begin teachers' performance to use to help teachers and teacher candidates improve their new text end 32.18 new text begin teaching knowledge, skills, and abilities; new text end 32.19 new text begin (2) developing a teacher performance reporting system that a teacher preparation new text end 32.20 new text begin program provider can use to recommend a successful teacher candidate for licensure; and new text end 32.21 new text begin (3) using reports of formative assessment information and performance assessment new text end 32.22 new text begin results for developing new teacher induction plans. new text end 32.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 32.24    Sec. 16. Minnesota Statutes 2008, section 122A.16, is amended to read: 32.25122A.16 HIGHLY QUALIFIED TEACHER DEFINED. 32.26(a) A qualified teacher is one holding a valid license, under this chapter, to perform 32.27the particular service for which the teacher is employed in a public school. 32.28(b) For the purposes of the federal No Child Left Behind Act, a highly qualified 32.29teacher is one who holds a valid license under this chapter to perform the particular service 32.30for which the teacher is employed in a public school or who meets the requirements of a 32.31highly objective uniform state standard of evaluation (HOUSSE). 32.32All Minnesota teachers teaching in a core academic subject area, as defined by the 32.33federal No Child Left Behind Act, in which they are not fully licensed may complete the 32.34following HOUSSE process in the core subject area for which the teacher is requesting 33.1highly qualified status by completing an application, in the form and manner described by 33.2the commissioner, that includes: 33.3(1) documentation of student achievement as evidenced by norm-referenced test 33.4results that are objective and psychometrically valid and reliable; 33.5(2) evidence of local, state, or national activities, recognition, or awards for 33.6professional contribution to achievement; 33.7(3) description of teaching experience in the teachers' core subject area in a public 33.8school under a waiver, variance, limited license or other exception; nonpublic school; and 33.9postsecondary institution; 33.10(4) test results from the Praxis II new text begin subject area new text end content test; 33.11(5) evidence of advanced certification from the National Board for Professional 33.12Teaching Standards; 33.13(6) evidence of the successful completion of course work or pedagogy courses; and 33.14(7) evidence of the successful completion of high quality professional development 33.15activities. 33.16Districts must assign a school administrator to serve as a HOUSSE reviewer to 33.17meet with teachers under this paragraph and, where appropriate, certify the teachers' 33.18applications. Teachers satisfy the definition of highly qualified when the teachers receive 33.19at least 100 of the total number of points used to measure the teachers' content expertise 33.20under clauses (1) to (7). Teachers may acquire up to 50 points only in any one clause (1) 33.21to (7). Teachers may use the HOUSSE process to satisfy the definition of highly qualified 33.22for more than one subject area. 33.23(c) Achievement of the HOUSSE criteria is not equivalent to a license. A teacher 33.24must obtain permission from the Board of Teaching in order to teach in a public school. 33.25    Sec. 17. Minnesota Statutes 2008, section 122A.18, subdivision 1, is amended to read: 33.26    Subdivision 1. Authority to license. (a) The Board of Teaching must license 33.27teachers, as defined in section 122A.15, subdivision 1, except for supervisory personnel, 33.28as defined in section 122A.15, subdivision 2. 33.29(b) The Board of School Administrators must license supervisory personnel as 33.30defined in section 122A.15, subdivision 2, except for athletic coaches. 33.31(c) Licenses under the jurisdiction of the Board of Teaching, the Board of School 33.32Administrators, and the commissioner of education must be issued through the licensing 33.33section of the department. 33.34 new text begin (d) The Board of Teaching may approve only those teacher preparation programs that new text end 33.35 new text begin target and address identified concerns affecting students in kindergarten through grade 12. new text end 34.1 new text begin The Board of Teaching and the Department of Education, consistent with the requirements new text end 34.2 new text begin of chapter 13, must enter into an agreement to share kindergarten through grade 12 new text end 34.3 new text begin educational data solely for approving and improving teacher education programs. The new text end 34.4 new text begin Board of Teaching must ensure that this information remains confidential and is used only new text end 34.5 new text begin for this purpose. Any unauthorized disclosure is subject to a penalty under section 13.09. new text end 34.6 new text begin (e) The Board of School Administrators may approve only those administrator new text end 34.7 new text begin preparation programs that target and address identified concerns affecting students in new text end 34.8 new text begin kindergarten through grade 12. The Board of School Administrators and the Department new text end 34.9 new text begin of Education, consistent with the requirements of chapter 13, must enter into an agreement new text end 34.10 new text begin to share kindergarten through grade 12 educational data solely for approving and new text end 34.11 new text begin improving education administration programs. The Board of School Administrators must new text end 34.12 new text begin ensure that this information remains confidential and is used only for this purpose. Any new text end 34.13 new text begin unauthorized disclosure is subject to a penalty under section 13.09. new text end 34.14    Sec. 18. Minnesota Statutes 2008, section 122A.18, subdivision 2, is amended to read: 34.15    Subd. 2. Teacher and support personnel qualifications. (a) The Board of 34.16Teaching must issue licenses under its jurisdiction to persons the board finds to be 34.17qualified and competent for their respective positions. 34.18(b) The board must require a person to successfully complete new text begin pass new text end an examination of 34.19skills in reading, writing, and mathematics before being granted an initial teaching license 34.20to provide direct instruction to pupils in prekindergarten, elementary, secondary, or special 34.21education programs. The board must require colleges and universities offering a board 34.22approved teacher preparation program to provide remedial assistance that includes a 34.23formal diagnostic component to persons enrolled in their institution who did not achieve a 34.24qualifying score on the skills examination, including those for whom English is a second 34.25language. The colleges and universities must provide assistance in the specific academic 34.26areas of deficiency in which the person did not achieve a qualifying score. School 34.27districts must provide similar, appropriate, and timely remedial assistance that includes a 34.28formal diagnostic component and mentoring to those persons employed by the district 34.29who completed their teacher education program outside the state of Minnesota, received 34.30a one-year license to teach in Minnesota and did not achieve a qualifying score on the 34.31skills examination, including those persons for whom English is a second language. The 34.32Board of Teaching shall report annually to the education committees of the legislature 34.33on the total number of teacher candidates during the most recent school year taking the 34.34skills examination, the number who achieve a qualifying score on the examination, the 34.35number who do not achieve a qualifying score on the examination, the distribution of all 35.1candidates' scores, the number of candidates who have taken the examination at least once 35.2before, and the number of candidates who have taken the examination at least once before 35.3and achieve a qualifying score. 35.4(c) A person who has completed an approved teacher preparation program and 35.5obtained a one-year license to teach, but has not successfully completed the skills 35.6examination, may renew the one-year license for two additional one-year periods. Each 35.7renewal of the one-year license is contingent upon the licensee: 35.8(1) providing evidence of participating in an approved remedial assistance program 35.9provided by a school district or postsecondary institution that includes a formal diagnostic 35.10component in the specific areas in which the licensee did not obtain qualifying scores; and 35.11(2) attempting to successfully complete the skills examination during the period 35.12of each one-year license. 35.13(d) new text begin (c) new text end The Board of Teaching must grant continuing licenses only to those persons 35.14who have met board criteria for granting a continuing license, which includes successfully 35.15completing new text begin passing new text end the skills examination in reading, writing, and mathematics. 35.16(e) new text begin (d) new text end All colleges and universities approved by the board of teaching to prepare 35.17persons for teacher licensure must include in their teacher preparation programs a common 35.18core of teaching knowledge and skills to be acquired by all persons recommended 35.19for teacher licensure. This common core shall meet the standards developed by the 35.20interstate new teacher assessment and support consortium in its 1992 "model standards for 35.21beginning teacher licensing and development." Amendments to standards adopted under 35.22this paragraph are covered by chapter 14. The board of teaching shall report annually to 35.23the education committees of the legislature on the performance of teacher candidates 35.24on common core assessments of knowledge and skills under this paragraph during the 35.25most recent school year. 35.26 new text begin (e) The Board of Teaching must: new text end 35.27 new text begin (1) ensure that kindergarten through grade 12 teacher licensing standards are highly new text end 35.28 new text begin aligned with the state's kindergarten through grade 12 academic standards; new text end 35.29 new text begin (2) adopt a review cycle that is consistent with the kindergarten through grade 12 new text end 35.30 new text begin academic standards review cycle under section 120B.023, subdivision 2; and new text end 35.31 new text begin (3) review and align the teacher licensure standards with the kindergarten through new text end 35.32 new text begin grade 12 academic standards within one school year after the commissioner reviews and new text end 35.33 new text begin adopts revised kindergarten through grade 12 academic standards in a particular subject new text end 35.34 new text begin area. new text end 35.35 new text begin (f) All teacher preparation programs approved by the Board of Teaching must new text end 35.36 new text begin require teacher candidates to complete at least one online course. new text end 36.1    Sec. 19. Minnesota Statutes 2008, section 122A.23, subdivision 2, is amended to read: 36.2    Subd. 2. Applicants licensed in other states. (a) Subject to the requirements 36.3of sections 122A.18, subdivision 8, and 123B.03, the Board of Teaching must issue 36.4a teaching license or a temporary teaching license under paragraphs (b) to (e) to an 36.5applicant who holds at least a baccalaureate degree from a regionally accredited college 36.6or university and holds or held a similar out-of-state teaching license that requires the 36.7applicant to successfully complete a teacher preparation program approved by the issuing 36.8state, which includes field-specific teaching methods and student teaching or essentially 36.9equivalent experience. 36.10(b) The Board of Teaching must issue a teaching license to an applicant who: 36.11(1) successfully completed new text begin passed new text end all exams and new text begin successfully completed new text end human 36.12relations preparation components required by the Board of Teaching; and 36.13(2) holds or held an out-of-state teaching license to teach the same content field and 36.14grade levels if the scope of the out-of-state license is no more than one grade level less 36.15than a similar Minnesota license. 36.16(c) The Board of Teaching, consistent with board rules, must issue up to three 36.17one-year temporary teaching licenses to an applicant who holds or held an out-of-state 36.18teaching license to teach the same content field and grade levels, where the scope of the 36.19out-of-state license is no more than one grade level less than a similar Minnesota license, 36.20but has not successfully completed new text begin passed new text end all exams and new text begin successfully completed new text end human 36.21relations preparation components required by the Board of Teaching. 36.22(d) The Board of Teaching, consistent with board rules, must issue up to three 36.23one-year temporary teaching licenses to an applicant who: 36.24(1) successfully completed new text begin passed new text end all exams and new text begin successfully completed new text end human 36.25relations preparation components required by the Board of Teaching; and 36.26(2) holds or held an out-of-state teaching license to teach the same content field 36.27and grade levels, where the scope of the out-of-state license is no more than one grade 36.28level less than a similar Minnesota license, but has not completed field-specific teaching 36.29methods or student teaching or equivalent experience. 36.30The applicant may complete field-specific teaching methods and student teaching 36.31or equivalent experience by successfully participating in a one-year school district 36.32mentorship program consistent with board-adopted standards of effective practice and 36.33Minnesota graduation requirements. 36.34(e) The Board of Teaching must issue a temporary teaching license for a term of 36.35up to three years only in the content field or grade levels specified in the out-of-state 36.36license to an applicant who: 37.1(1) successfully completed new text begin passed new text end all exams and new text begin successfully completed new text end human 37.2relations preparation components required by the Board of Teaching; and 37.3(2) holds or held an out-of-state teaching license where the out-of-state license is 37.4more limited in the content field or grade levels than a similar Minnesota license. 37.5(f) The Board of Teaching must not issue to an applicant more than three one-year 37.6temporary teaching licenses under this subdivision. 37.7(g) The Board of Teaching must not issue a license under this subdivision if the 37.8applicant has not attained the additional degrees, credentials, or licenses required in a 37.9particular licensure field. 37.10    Sec. 20. new text begin [122A.245] ALTERNATIVE TEACHER PREPARATION PROGRAM new text end 37.11 new text begin AND LIMITED-TERM TEACHER LICENSE. new text end 37.12     new text begin Subdivision 1. new text end new text begin Requirements. new text end new text begin (a) The Board of Teaching must approve qualified new text end 37.13 new text begin teacher preparation programs under this section that are a means to acquire a two-year new text end 37.14 new text begin limited-term license and to prepare for acquiring a standard entrance license. Partnerships new text end 37.15 new text begin composed of school districts or charter schools and either: new text end 37.16 new text begin (1) a college or university with a board-approved alternative teacher preparation new text end 37.17 new text begin program; or new text end 37.18 new text begin (2) a nonprofit corporation formed for an education-related purpose and subject new text end 37.19 new text begin to chapter 317A and a college or university with a board-approved alternative teacher new text end 37.20 new text begin preparation program may offer this program if: new text end 37.21 new text begin (i) a need for teachers exists based on the determination by a participating school new text end 37.22 new text begin district or charter school that in the previous school year too few qualified candidates new text end 37.23 new text begin applied for its posted, available teaching positions; new text end 37.24 new text begin (ii) the teaching staff does not reflect the racial and cultural diversity of the student new text end 37.25 new text begin population of the district or charter school; or new text end 37.26 new text begin (iii) the school district or charter school identifies a need to reduce or eliminate a new text end 37.27 new text begin student achievement gap based on school performance report card data under section new text end 37.28 new text begin 120B.36. new text end 37.29 new text begin (b) To participate in this program, a candidate must: new text end 37.30 new text begin (1) have a bachelor's degree with a minimum 3.0 grade point average, or have a new text end 37.31 new text begin bachelor's degree and meet other board-adopted criteria; new text end 37.32 new text begin (2) pass the reading, writing, and mathematics skills examination under section new text end 37.33 new text begin 122A.18; and new text end 37.34 new text begin (3) pass the board-approved content area and pedagogy tests. new text end 38.1     new text begin Subd. 2. new text end new text begin Characteristics. new text end new text begin An alternative teacher preparation program under this new text end 38.2 new text begin section must include: new text end 38.3 new text begin (1) a minimum 200-hour instructional phase that provides intensive preparation new text end 38.4 new text begin before that person assumes classroom responsibilities; new text end 38.5 new text begin (2) a research-based and results-oriented approach focused on best teaching practices new text end 38.6 new text begin to increase student proficiency and growth measured against state academic standards; new text end 38.7 new text begin (3) strategies to combine pedagogy and best teaching practices to better inform new text end 38.8 new text begin teachers' classroom instruction; new text end 38.9 new text begin (4) assessment, supervision, and evaluation of the program participant to determine new text end 38.10 new text begin the participant's specific needs throughout the program and to support the participant new text end 38.11 new text begin in successfully completing the program; new text end 38.12 new text begin (5) formal instruction and intensive peer coaching throughout the school year that new text end 38.13 new text begin provide structured guidance and regular ongoing support; new text end 38.14 new text begin (6) high quality, sustained, intensive, and classroom-embedded staff development new text end 38.15 new text begin opportunities conducted by a mentor or by a mentorship team that may include school new text end 38.16 new text begin administrators, teachers, and postsecondary faculty members and are directed at improving new text end 38.17 new text begin student learning and achievement; and new text end 38.18 new text begin (7) a requirement that program participants demonstrate to the local site team under new text end 38.19 new text begin subdivision 5 that they are making satisfactory progress toward acquiring a standard new text end 38.20 new text begin entrance license from the Board of Teaching. new text end 38.21     new text begin Subd. 3. new text end new text begin Program approval. new text end new text begin The Board of Teaching must approve alternative new text end 38.22 new text begin teacher preparation programs under this section based on board-adopted criteria that reflect new text end 38.23 new text begin best practices for alternative teacher preparation programs consistent with this section. new text end 38.24 new text begin The board must permit licensure candidates to demonstrate licensure competencies in new text end 38.25 new text begin school-based settings and through other nontraditional means. new text end 38.26     new text begin Subd. 4. new text end new text begin Employment conditions. new text end new text begin Where applicable, teachers with a limited-term new text end 38.27 new text begin license under this section are subject to the terms of the local collective bargaining new text end 38.28 new text begin agreement between the local representative of the teachers and the school board. new text end 38.29     new text begin Subd. 5. new text end new text begin Approval for standard entrance license. new text end new text begin A local site team that may new text end 38.30 new text begin include teachers, school administrators, postsecondary faculty, and nonprofit staff must new text end 38.31 new text begin evaluate the performance of the teacher candidate using the Minnesota State Standards of new text end 38.32 new text begin Effective Practice for Teachers established in rule and submit to the board an evaluation new text end 38.33 new text begin report recommending whether or not to issue the teacher candidate a standard entrance new text end 38.34 new text begin license. new text end 39.1     new text begin Subd. 6. new text end new text begin Standard entrance license. new text end new text begin The Board of Teaching must issue a standard new text end 39.2 new text begin entrance license to a teacher candidate under this section who successfully performs new text end 39.3 new text begin throughout the program and is recommended for licensure under subdivision 5. new text end 39.4     new text begin Subd. 7. new text end new text begin Qualified teacher. new text end new text begin A person with a valid limited-term license under this new text end 39.5 new text begin section is the teacher of record and a qualified teacher within the meaning of section new text end 39.6 new text begin 122A.16. new text end 39.7     new text begin Subd. 8. new text end new text begin Reports. new text end new text begin The Board of Teaching must submit an interim report on the new text end 39.8 new text begin efficacy of this program to the K-12 Education Policy and Finance committees of the new text end 39.9 new text begin legislature by February 15, 2012, and a final report by February 15, 2014. new text end 39.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for the 2010-2011 school year and new text end 39.11 new text begin later. new text end 39.12    Sec. 21. new text begin [122A.246] ALTERNATIVE TEACHER PREPARATION new text end 39.13 new text begin PROGRAM AND LIMITED-TERM TEACHER LICENSE FOR MID-CAREER new text end 39.14 new text begin PROFESSIONALS. new text end 39.15     new text begin Subdivision 1. new text end new text begin Requirements. new text end new text begin (a) The Board of Teaching annually must approve new text end 39.16 new text begin qualified teacher preparation programs under this section that are a means for mid-career new text end 39.17 new text begin professionals to acquire a two-year limited-term license and to prepare for acquiring a new text end 39.18 new text begin standard entrance license. Partnerships composed of school districts or charter schools new text end 39.19 new text begin and either: new text end 39.20 new text begin (1) a college or university with a board-approved alternative teacher preparation new text end 39.21 new text begin program; or new text end 39.22 new text begin (2) a nonprofit corporation formed for an education-related purpose and subject new text end 39.23 new text begin to chapter 317A and a college or university with a board-approved alternative teacher new text end 39.24 new text begin preparation program may offer this program if: new text end 39.25 new text begin (i) a need for teachers exists in a subject area identified by the department as a new text end 39.26 new text begin shortage area; new text end 39.27 new text begin (ii) the teaching staff does not reflect the racial and cultural diversity of the student new text end 39.28 new text begin population of the district or charter school; and new text end 39.29 new text begin (iii) the district or charter school identifies a need to reduce or eliminate a student new text end 39.30 new text begin achievement gap based on school performance report card data under section 120B.36. new text end 39.31 new text begin (b) To participate in this program, a candidate must: new text end 39.32 new text begin (1) have a bachelor's degree and at least ten years of professional experience in a new text end 39.33 new text begin field related to the license being sought; or new text end 39.34 new text begin (2) hold a valid teaching license and have at least five years of classroom teaching new text end 39.35 new text begin experience. new text end 40.1 new text begin (c) A candidate under paragraph (b), clause (1), must: new text end 40.2 new text begin (1) pass the reading, writing, and mathematics skills examination under section new text end 40.3 new text begin 122A.18; new text end 40.4 new text begin (2) obtain qualifying scores on board-approved content area and pedagogy tests; and new text end 40.5 new text begin (3) before receiving a limited term license under this section, complete a minimum new text end 40.6 new text begin 200-hour instructional phase that provides intensive preparation and a full-time student new text end 40.7 new text begin teaching experience that places the candidate in the classroom under the direct supervision new text end 40.8 new text begin of a fully licensed classroom teacher for at least 12 weeks. A candidate under paragraph new text end 40.9 new text begin (b), clause (1), is declared to have met the requirements of this paragraph through the new text end 40.10 new text begin licensing process and previous classroom experience. new text end 40.11     new text begin Subd. 2. new text end new text begin Characteristics. new text end new text begin An alternative teacher preparation program under this new text end 40.12 new text begin section must include: new text end 40.13 new text begin (1) a research-based and results-oriented approach focused on best teaching practices new text end 40.14 new text begin to increase student proficiency and growth measured against state academic standards; new text end 40.15 new text begin (2) strategies to combine pedagogy and best teaching practices to better inform new text end 40.16 new text begin teachers' classroom instruction; new text end 40.17 new text begin (3) assessment, supervision, and evaluation of the program participant to determine new text end 40.18 new text begin the participant's specific needs throughout the program and to support the participant new text end 40.19 new text begin in successfully completing the program; new text end 40.20 new text begin (4) formal instruction and intensive peer coaching throughout the school year that new text end 40.21 new text begin provide structured guidance and regular ongoing support; new text end 40.22 new text begin (5) high quality, sustained, intensive, and classroom-embedded staff development new text end 40.23 new text begin opportunities conducted by a mentor or by a mentorship team that may include school new text end 40.24 new text begin administrators, teachers, and postsecondary faculty members and are directed at improving new text end 40.25 new text begin student learning and achievement; and new text end 40.26 new text begin (6) a requirement that program participants demonstrate to the local site team under new text end 40.27 new text begin subdivision 5 that they are making satisfactory progress toward acquiring a standard new text end 40.28 new text begin entrance license from the Board of Teaching. new text end 40.29     new text begin Subd. 3. new text end new text begin Program approval. new text end new text begin The Board of Teaching must approve alternative new text end 40.30 new text begin teacher preparation programs under this section based on board-adopted criteria that reflect new text end 40.31 new text begin best practices for alternative teacher preparation programs consistent with this section. new text end 40.32 new text begin The board must permit licensure candidates to demonstrate licensure competencies in new text end 40.33 new text begin school-based settings and through other nontraditional means. new text end 40.34     new text begin Subd. 4. new text end new text begin Employment conditions. new text end new text begin (a) Each full school year that a teacher with new text end 40.35 new text begin a limited-term license teaches in a Minnesota school is one year of the teacher's first new text end 40.36 new text begin probationary employment period. new text end 41.1 new text begin (b) Where applicable, teachers with a limited-term license under this section new text end 41.2 new text begin are subject to the terms of the local collective bargaining agreement between the local new text end 41.3 new text begin representative of the teachers and the school board. new text end 41.4 new text begin (c) A school district or charter school must not prospectively promise to employ a new text end 41.5 new text begin teacher candidate who receives a standard entrance license under this section. new text end 41.6     new text begin Subd. 5. new text end new text begin Approval for standard entrance license. new text end new text begin Postsecondary faculty, the new text end 41.7 new text begin supervising teacher, and other qualified staff must evaluate the performance of the teacher new text end 41.8 new text begin candidate using the Minnesota state standards of effective practice for teachers and content new text end 41.9 new text begin standards by licensure area established in rule and submit to the board an evaluation report new text end 41.10 new text begin recommending whether or not to issue the teacher candidate a standard entrance license. new text end 41.11     new text begin Subd. 6. new text end new text begin Standard entrance license. new text end new text begin The Board of Teaching may issue a standard new text end 41.12 new text begin entrance license to a teacher candidate under this section who successfully performs under new text end 41.13 new text begin the two-year limited license and is recommended for licensure under subdivision 5. new text end 41.14     new text begin Subd. 7. new text end new text begin Qualified teacher. new text end new text begin A person with a valid limited-term license under this new text end 41.15 new text begin section is the teacher of record and a qualified teacher within the meaning of section new text end 41.16 new text begin 122A.16. new text end 41.17     new text begin Subd. 8. new text end new text begin Reports. new text end new text begin (a) The Board of Teaching annually must collect and report to new text end 41.18 new text begin the K-12 Education Policy and Finance Committees of the legislature alternative teacher new text end 41.19 new text begin preparation program provider data on cumulative teacher retention rates, number of new text end 41.20 new text begin licenses issued by licensure area, the locations where teachers are placed, the number of new text end 41.21 new text begin programs approved, and the demographic characteristics of the teacher candidates, among new text end 41.22 new text begin other data. The board may use these data to approve program providers under this section. new text end 41.23 new text begin (b) The Board of Teaching must submit a report on the efficacy of this program to the new text end 41.24 new text begin K-12 Education Policy and Finance committees of the legislature by February 15, 2014. new text end 41.25    Sec. 22. Minnesota Statutes 2009 Supplement, section 122A.40, subdivision 8, is 41.26amended to read: 41.27    Subd. 8. new text begin Annual evaluations and new text end peer coaching for continuing contract 41.28teachers. new text begin (a) To improve student learning and success, new text end a school board and an exclusive 41.29representative of the teachers in the district new text begin , consistent with paragraph (b), new text end shall develop 41.30a new text begin an annual teacher evaluation and new text end peer review process for continuing contract teachers 41.31through joint agreement. The new text begin peer review new text end process may new text begin must new text end include having trained 41.32observers serve as peer coaches or having teachers participate in professional learning 41.33communities. 42.1 new text begin (b) To develop, improve, and support qualified teachers and effective teaching new text end 42.2 new text begin practices and improve student learning and success, the annual evaluation process for new text end 42.3 new text begin continuing contract teachers must: new text end 42.4 new text begin (1) be a collaborative effort between teachers and school administrators to develop new text end 42.5 new text begin and implement a teacher evaluation process that is based on professional teaching new text end 42.6 new text begin standards and includes both formative assessments to improve instruction through new text end 42.7 new text begin identifying teachers' strengths and weaknesses and summative assessments conducted at new text end 42.8 new text begin least once every three school years and used to make personnel decisions, consistent new text end 42.9 new text begin with clause (2); new text end 42.10 new text begin (2) coordinate staff development activities under section 122A.60 with this new text end 42.11 new text begin evaluation process and teachers' evaluation outcomes and give teachers not meeting new text end 42.12 new text begin standards of effective practice sufficient support to improve; new text end 42.13 new text begin (3) include in-class observations by both licensed mentor teachers and school new text end 42.14 new text begin administrators who are trained evaluators, use a valid observation framework or protocol, new text end 42.15 new text begin and periodically undergo a reliability review; new text end 42.16 new text begin (4) provide peer coaching or have teachers participate in professional learning new text end 42.17 new text begin communities, consistent with paragraph (a); new text end 42.18 new text begin (5) require teachers to develop and present a portfolio demonstrating evidence new text end 42.19 new text begin of reflection and professional growth, consistent with section 122A.18, subdivision new text end 42.20 new text begin 4, paragraph (b), using criteria developed by the Board of Teaching to reliably assess new text end 42.21 new text begin portfolio content, and include teachers' own performance assessment based on student new text end 42.22 new text begin work samples, student and family surveys, and videotapes of teachers' work, among new text end 42.23 new text begin other activities; new text end 42.24 new text begin (6) demonstrate teachers' content knowledge and teaching skills; and new text end 42.25 new text begin (7) use longitudinal data on student academic growth, student attendance, student new text end 42.26 new text begin engagement and connection, and other outcome measures as evaluation components. new text end 42.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 42.28 new text begin and applies beginning when a district next enters into or modifies a collective bargaining new text end 42.29 new text begin agreement or by the 2011-2012 school year, whichever comes first. new text end 42.30    Sec. 23. Minnesota Statutes 2009 Supplement, section 122A.41, subdivision 5, is 42.31amended to read: 42.32    Subd. 5. new text begin Annual evaluations and new text end peer coaching for continuing contract 42.33teachers. new text begin (a) To improve student learning and success, new text end a school board and an exclusive 42.34representative of the teachers in the district new text begin , consistent with paragraph (b), new text end must develop a new text begin new text end 42.35 new text begin an annual teacher evaluation and new text end peer review process for nonprobationary teachers through 43.1joint agreement. The new text begin peer review new text end process may new text begin must new text end include having trained observers 43.2serve as peer coaches or having teachers participate in professional learning communities. 43.3 new text begin (b) To develop, improve, and support qualified teachers and effective teaching new text end 43.4 new text begin practices and improve student learning and success, the annual evaluation process for new text end 43.5 new text begin continuing contract teachers must: new text end 43.6 new text begin (1) be a collaborative effort between teachers and school administrators to develop new text end 43.7 new text begin and implement a teacher evaluation process that is based on professional teaching new text end 43.8 new text begin standards and includes both formative assessments to improve instruction through new text end 43.9 new text begin identifying teachers' strengths and weaknesses and summative assessments conducted at new text end 43.10 new text begin least once every three school years and used to make personnel decisions, consistent new text end 43.11 new text begin with clause (2); new text end 43.12 new text begin (2) coordinate staff development activities under section 122A.60 with this new text end 43.13 new text begin evaluation process and teachers' evaluation outcomes and give teachers not meeting new text end 43.14 new text begin standards of effective practice sufficient support to improve; new text end 43.15 new text begin (3) include in-class observations by both licensed mentor teachers and school new text end 43.16 new text begin administrators who are trained evaluators, use a valid observation framework or protocol, new text end 43.17 new text begin and periodically undergo a reliability review; new text end 43.18 new text begin (4) provide peer coaching or have teachers participate in professional learning new text end 43.19 new text begin communities, consistent with paragraph (a); new text end 43.20 new text begin (5) require teachers to develop and present a portfolio demonstrating evidence new text end 43.21 new text begin of reflection and professional growth, consistent with section 122A.18, subdivision new text end 43.22 new text begin 4, paragraph (b), using criteria developed by the Board of Teaching to reliably assess new text end 43.23 new text begin portfolio content, and include teachers' own performance assessment based on student new text end 43.24 new text begin work samples, student and family surveys, and videotapes of teachers' work, among new text end 43.25 new text begin other activities; new text end 43.26 new text begin (6) demonstrate teachers' content knowledge and teaching skills; and new text end 43.27 new text begin (7) use longitudinal data on student academic growth, student attendance, student new text end 43.28 new text begin engagement and connection, and other outcome measures as evaluation components. new text end 43.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 43.30 new text begin and applies beginning when a district next enters into or modifies a collective bargaining new text end 43.31 new text begin agreement or by the 2011-2012 school year, whichever comes first. new text end 43.32    Sec. 24. new text begin [123A.29] EFFICIENCY PLUS ACCESS TASK FORCES. new text end 43.33     new text begin Subdivision 1. new text end new text begin Purpose. new text end new text begin The purpose of the efficiency plus access task forces new text end 43.34 new text begin is to facilitate greater efficiency and reduce education costs through collaboration and new text end 43.35 new text begin cooperation across school districts and other governmental agencies while maintaining new text end 44.1 new text begin or improving the learning results for students. The legislative intent is to reduce the new text end 44.2 new text begin administrative costs of education without resorting to a policy of required consolidation new text end 44.3 new text begin that reduces the number of districts or school boards and without creating fewer larger new text end 44.4 new text begin schools that require longer bus rides for students. new text end 44.5     new text begin Subd. 2. new text end new text begin Required district participation. new text end new text begin Each district with an enrollment of new text end 44.6 new text begin fewer than 5,000 pupils in K-12 for fiscal year 2010 shall participate in an efficiency new text end 44.7 new text begin plus access task force. new text end 44.8     new text begin Subd. 3. new text end new text begin Optional district and other public entity participation. new text end new text begin School districts new text end 44.9 new text begin with more than 5,000 pupils, charter schools, cities, townships, counties, public higher new text end 44.10 new text begin education institutions, Head Start agencies, public libraries, and other public entities are new text end 44.11 new text begin encouraged to participate in the efficiency plus access task forces. new text end 44.12     new text begin Subd. 4. new text end new text begin Task force membership. new text end new text begin (a) Participating districts may organize the task new text end 44.13 new text begin forces using an existing education district, intermediate district, or other cooperative new text end 44.14 new text begin model. Districts may request that a service cooperative assist in establishing task forces new text end 44.15 new text begin for their service area. Districts do not need to be contiguous to form an efficiency plus new text end 44.16 new text begin access task force. Each task force shall consist of one member appointed by each district new text end 44.17 new text begin board included in the task force and one member from each entity defined in subdivision new text end 44.18 new text begin 3 that choose to participate. Districts and other public entities may decide to become new text end 44.19 new text begin members of more than one efficiency plus access task force. These appointments shall be new text end 44.20 new text begin made by August 15, 2010. new text end 44.21 new text begin (b) Each school board shall develop a process within the district allowing teachers, new text end 44.22 new text begin students, parents, and the community to have access and opportunities to review and make new text end 44.23 new text begin recommendations to be brought forward to the efficiency plus access task force. new text end 44.24 new text begin (c) The initial meeting of each task force shall not be later than September 30, 2010. new text end 44.25 new text begin At the initial meeting, each task force shall elect a chair and other officers it considers new text end 44.26 new text begin necessary to coordinate the work of the task force. new text end 44.27     new text begin Subd. 5. new text end new text begin Task force; powers. new text end new text begin (a) Each task force shall review and make new text end 44.28 new text begin recommendations to the boards of the participating districts and public entities regarding new text end 44.29 new text begin how the purpose of this section can be met in the following areas: new text end 44.30 new text begin (1) administrative services including but not limited to superintendent services, new text end 44.31 new text begin principal services, financial management, human services, facilities and grounds new text end 44.32 new text begin maintenance, food and nutrition services, research and evaluation services, transportation new text end 44.33 new text begin services, health services, information technology services, and other administrative new text end 44.34 new text begin services. Cooperation with other public agencies for the provision of administrative new text end 44.35 new text begin services should be considered; new text end 45.1 new text begin (2) instructional and learning services including but not limited to creating a new text end 45.2 new text begin common calendar; low-attendance elective secondary courses; use of technology to new text end 45.3 new text begin replace or supplement courses currently being provided; use of technology to provide new text end 45.4 new text begin new learning opportunities through technology with an emphasis on using low-cost or new text end 45.5 new text begin no-cost learning opportunities available online; coordination with higher education so new text end 45.6 new text begin that advanced courses are provided college credit to avoid duplication between high new text end 45.7 new text begin school and postsecondary; determine how certain students can complete select high school new text end 45.8 new text begin credit requirements while in middle school; and exploring ways to utilize the learning new text end 45.9 new text begin opportunities in the community through programs such as parks and recreation, arts, new text end 45.10 new text begin libraries, and other community providers; and new text end 45.11 new text begin (3) cooperative arrangements for shared extracurricular activities, including having new text end 45.12 new text begin the activities become the responsibility of the community recreational program. new text end 45.13 new text begin (b) The task force shall consider creating new models of schools including new text end 45.14 new text begin project-based learning schools, online learning schools in cooperation with other education new text end 45.15 new text begin districts, service cooperatives or chartered schools, new grade 11 postsecondary models new text end 45.16 new text begin in partnership with colleges and universities, prekindergarten through primary grades in new text end 45.17 new text begin partnership with early childhood providers, and other models of schooling. new text end 45.18     new text begin Subd. 6. new text end new text begin Reporting. new text end new text begin Each efficiency plus access task force shall file its initial new text end 45.19 new text begin planning report with the commissioner no later than October 15, 2010. The report shall new text end 45.20 new text begin include the basic information about the composition of the task force, including how input new text end 45.21 new text begin to the task force will be obtained consistent with subdivision 4, paragraph (b). Each task new text end 45.22 new text begin force shall complete its recommendations and file its report with the member school new text end 45.23 new text begin boards and commissioner no later than December 1, 2011. The report shall include new text end 45.24 new text begin recommendations pursuant to subdivision 5 and identify the financial impact of those new text end 45.25 new text begin recommendations for at least fiscal years 2013 and 2014. Each school board shall file a new text end 45.26 new text begin report with the commissioner regarding the actions it will take in response to the report new text end 45.27 new text begin no later than March 15, 2012. The report shall also include the impact on other agencies new text end 45.28 new text begin included in the task force planning. new text end 45.29    Sec. 25. Minnesota Statutes 2009 Supplement, section 123B.143, subdivision 1, 45.30is amended to read: 45.31    Subdivision 1. Contract; duties. All districts maintaining a classified secondary 45.32school must employ a superintendent who shall be an ex officio nonvoting member of the 45.33school board. The authority for selection and employment of a superintendent must be 45.34vested in the board in all cases. An individual employed by a board as a superintendent 45.35shall have an initial employment contract for a period of time no longer than three years 46.1from the date of employment. Any subsequent employment contract must not exceed a 46.2period of three years. A board, at its discretion, may or may not renew an employment 46.3contract. A board must not, by action or inaction, extend the duration of an existing 46.4employment contract. Beginning 365 days prior to the expiration date of an existing 46.5employment contract, a board may negotiate and enter into a subsequent employment 46.6contract to take effect upon the expiration of the existing contract. A subsequent contract 46.7must be contingent upon the employee completing the terms of an existing contract. If a 46.8contract between a board and a superintendent is terminated prior to the date specified in 46.9the contract, the board may not enter into another superintendent contract with that same 46.10individual that has a term that extends beyond the date specified in the terminated contract. 46.11A board may terminate a superintendent during the term of an employment contract for any 46.12of the grounds specified in section 122A.40, subdivision 9 or 13. A superintendent shall 46.13not rely upon an employment contract with a board to assert any other continuing contract 46.14rights in the position of superintendent under section 122A.40. Notwithstanding the 46.15provisions of sections 122A.40, subdivision 10 or 11, 123A.32, 123A.75, or any other law 46.16to the contrary, no individual shall have a right to employment as a superintendent based 46.17on order of employment in any district. If two or more districts enter into an agreement for 46.18the purchase or sharing of the services of a superintendent, the contracting districts have 46.19the absolute right to select one of the individuals employed to serve as superintendent 46.20in one of the contracting districts and no individual has a right to employment as the 46.21superintendent to provide all or part of the services based on order of employment in a 46.22contracting district. The superintendent of a district shall perform the following: 46.23    (1) visit and supervise the schools in the district, report and make recommendations 46.24about their condition when advisable or on request by the board; 46.25    (2) recommend to the board employment and dismissal of teachers; 46.26    (3) new text begin annually evaluate each school principal and assistant principal assigned new text end 46.27 new text begin responsibility for supervising a school building within the district, consistent with section new text end 46.28 new text begin 123B.147, subdivision 3, paragraph (b); new text end 46.29 new text begin (4) new text end superintend school grading practices and examinations for promotions; 46.30    (4) new text begin (5) new text end make reports required by the commissioner; and 46.31    (5) new text begin (6) new text end perform other duties prescribed by the board. 46.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 46.33 new text begin and applies beginning when a district next enters into or modifies a collective bargaining new text end 46.34 new text begin agreement or by the 2011-2012 school year, whichever comes first. new text end 46.35    Sec. 26. Minnesota Statutes 2008, section 123B.147, subdivision 3, is amended to read: 47.1    Subd. 3. Duties new text begin ; evaluation new text end . new text begin (a) new text end The principal shall provide administrative, 47.2supervisory, and instructional leadership services, under the supervision of the 47.3superintendent of schools of the district and in accordance with new text begin according to new text end the policies, 47.4rules, and regulations of the new text begin school new text end board of education, for the planning, management, 47.5operation, and evaluation of the education program of the building or buildings to which 47.6the principal is assigned. 47.7 new text begin (b) To enhance principals' leadership skills and support and improve teachers' new text end 47.8 new text begin teaching practices, the school board and the exclusive representative of the school new text end 47.9 new text begin principals of the district must negotiate a plan for an annual evaluation of the school new text end 47.10 new text begin principals and assistant principals assigned responsibility for supervising a school building new text end 47.11 new text begin within the district. The annual evaluation process must: new text end 47.12 new text begin (1) be designed to support and improve principals' instructional leadership new text end 47.13 new text begin defined in the plan, organizational management, and professional development, and new text end 47.14 new text begin strengthen principals' capacity in the areas of instruction, supervision, evaluation, and the new text end 47.15 new text begin development of teachers and highly effective school organizations; new text end 47.16 new text begin (2) include formative and summative evaluations; new text end 47.17 new text begin (3) be consistent with the principals' job description, district long-term plans and new text end 47.18 new text begin goals, and principals' own professional multiyear growth plans and goals; new text end 47.19 new text begin (4) include on-the-job observations, team assessments and evaluations, and verbal new text end 47.20 new text begin and written feedback on performance; new text end 47.21 new text begin (5) require feedback from teachers, support staff, students, and parents; new text end 47.22 new text begin (6) use longitudinal data on student academic growth as an evaluation component; new text end 47.23 new text begin and new text end 47.24 new text begin (7) be linked to professional development. new text end 47.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 47.26 new text begin and applies beginning when a district next enters into or modifies a collective bargaining new text end 47.27 new text begin agreement or by the 2011-2012 school year, whichever comes first. new text end 47.28    Sec. 27. Minnesota Statutes 2009 Supplement, section 124D.10, subdivision 3, is 47.29amended to read: 47.30    Subd. 3. Authorizer. (a) For purposes of this section, the terms defined in this 47.31subdivision have the meanings given them. 47.32"Application" to receive approval as an authorizer means the proposal an eligible 47.33authorizer submits to the commissioner under paragraph (c) before that authorizer is able 47.34to submit any affidavit to charter to a school. 48.1"Application" under subdivision 4 means the charter school business plan a 48.2school developer submits to an authorizer for approval to establish a charter school that 48.3documents the school developer's mission statement, school purposes, program design, 48.4financial plan, governance and management structure, and background and experience, 48.5plus any other information the authorizer requests. The application also shall include a 48.6"statement of assurances" of legal compliance prescribed by the commissioner. 48.7"Affidavit" means a written statement the authorizer submits to the commissioner 48.8for approval to establish a charter school under subdivision 4 attesting to its review and 48.9approval process before chartering a school. 48.10"Affidavit" means the form an authorizer submits to the commissioner that is a 48.11precondition to a charter school organizing an affiliated nonprofit building corporation 48.12under subdivision 17a. 48.13(b) The following organizations may authorize one or more charter schools: 48.14(1) a school board; intermediate school district school board; education district 48.15organized under sections 123A.15 to 123A.19; 48.16(2) a charitable organization under section 501(c)(3) of the Internal Revenue 48.17Code of 1986, excluding a nonpublic sectarian or religious institution, new text begin without an new text end 48.18 new text begin approved affidavit by the commissioner prior to July 1, 2009, and new text end any person other than a 48.19natural person that directly or indirectly, through one or more intermediaries, controls, 48.20is controlled by, or is under common control with the nonpublic sectarian or religious 48.21institution, and any other charitable organization under this clause that in the federal IRS 48.22Form 1023, Part IV, describes activities indicating a religious purpose, that: 48.23(i) is a member of the Minnesota Council of Nonprofits or the Minnesota Council on 48.24Foundations; 48.25(ii) is registered with the attorney general's office; 48.26(iii) reports an end-of-year fund balance of at least $2,000,000; and 48.27(iv) is incorporated in the state of Minnesota; 48.28(3) a Minnesota private college, notwithstanding clause (2), that grants two- or 48.29four-year degrees and is registered with the Minnesota Office of Higher Education under 48.30chapter 136A; community college, state university, or technical college governed by the 48.31Board of Trustees of the Minnesota State Colleges and Universities; or the University of 48.32Minnesota; or 48.33(4) a nonprofit corporation subject to chapter 317A, described in section 317A.905, 48.34and exempt from federal income tax under section 501(c)(6) of the Internal Revenue Code 48.35of 1986, may authorize one or more charter schools if the charter school has operated 49.1for at least three years under a different authorizer and if the nonprofit corporation has 49.2existed for at least 25 years. 49.3(5) no more than three single-purpose sponsors that are charitable, nonsectarian 49.4organizations formed under section 501(c)(3) of the Internal Revenue Code of 1986 and 49.5incorporated in the state of Minnesota whose sole purpose is to charter schools. Eligible 49.6organizations interested in being approved as a sponsor under this paragraph must submit a 49.7proposal to the commissioner that includes the provisions of paragraph (c) and a five-year 49.8financial plan. Such authorizers shall consider and approve applications using the criteria 49.9provided in subdivision 4 and shall not limit the applications it solicits, considers, or 49.10approves to any single curriculum, learning program, or method. 49.11(c) An eligible authorizer under this subdivision must apply to the commissioner for 49.12approval as an authorizer before submitting any affidavit to the commissioner to charter 49.13a school. The application for approval as a charter school authorizer must demonstrate 49.14the applicant's ability to implement the procedures and satisfy the criteria for chartering a 49.15school under this section. The commissioner must approve or disapprove an application 49.16within 60 business days of the application deadline. If the commissioner disapproves 49.17the application, the commissioner must notify the applicant of the deficiencies and the 49.18applicant then has 20 business days to address the deficiencies to the commissioner's 49.19satisfaction. Failing to address the deficiencies to the commissioner's satisfaction makes 49.20an applicant ineligible to be an authorizer. The commissioner, in establishing criteria for 49.21approval, must consider the applicant's: 49.22(1) capacity and infrastructure; 49.23(2) application criteria and process; 49.24(3) contracting process; 49.25(4) ongoing oversight and evaluation processes; and 49.26(5) renewal criteria and processes. 49.27(d) The affidavit new text begin application for approval new text end to be submitted to and evaluated by the 49.28commissioner must include at least the following: 49.29(1) how chartering schools is a way for the organization to carry out its mission; 49.30(2) a description of the capacity of the organization to serve as a sponsor, including 49.31the personnel who will perform the sponsoring duties, their qualifications, the amount of 49.32time they will be assigned to this responsibility, and the financial resources allocated 49.33by the organization to this responsibility; 49.34(3) a description of the application and review process the authorizer will use to make 49.35decisions regarding the granting of charters, which will include at least the following: 49.36(i) how the statutory purposes defined in subdivision 1 are addressed; 50.1(ii) the mission, goals, program model, and student performance expectations; 50.2(iii) an evaluation plan for the school that includes criteria for evaluating educational, 50.3organizational, and fiscal plans; 50.4(iv) the school's governance plan; 50.5(v) the financial management plan; and 50.6(vi) the administration and operations plan; 50.7(4) a description of the type of contract it will arrange with the schools it charters 50.8that meets the provisions of subdivision 6 and defines the rights and responsibilities of the 50.9charter school for governing its educational program, controlling its funds, and making 50.10school management decisions; 50.11(5) the process to be used for providing ongoing oversight of the school consistent 50.12with the contract expectations specified in clause (4) that assures that the schools chartered 50.13are complying with both the provisions of applicable law and rules, and with the contract; 50.14(6) the process for making decisions regarding the renewal or termination of 50.15the school's charter based on evidence that demonstrates the academic, organizational, 50.16and financial competency of the school, including its success in increasing student 50.17achievement and meeting the goals of the charter school agreement; and 50.18(7) an assurance specifying that the organization is committed to serving as a 50.19sponsor for the full five-year term. 50.20A disapproved applicant under this paragraph may resubmit an application during a 50.21future application period. 50.22(e) The authorizer must participate in department-approved training. 50.23(f) An authorizer that chartered a school before August 1, 2009, must apply by 50.24June 30, 2011, to the commissioner for approval, under paragraph (c), to continue as an 50.25authorizer under this section. For purposes of this paragraph, an authorizer that fails to 50.26submit a timely application is ineligible to charter a school. 50.27(g) The commissioner shall review an authorizer's performance every five years in 50.28a manner and form determined by the commissioner and may review an authorizer's 50.29performance more frequently at the commissioner's own initiative or at the request of a 50.30charter school operator, charter school board member, or other interested party. The 50.31commissioner, after completing the review, shall transmit a report with findings to the 50.32authorizer. If, consistent with this section, the commissioner finds that an authorizer 50.33has not fulfilled the requirements of this section, the commissioner may subject the 50.34authorizer to corrective action, which may include terminating the contract with the 50.35charter school board of directors of a school it chartered. The commissioner must notify 50.36the authorizer in writing of any findings that may subject the authorizer to corrective 51.1action and the authorizer then has 15 business days to request an informal hearing before 51.2the commissioner takes corrective action. 51.3(h) The commissioner may at any time take corrective action against an authorizer, 51.4including terminating an authorizer's ability to charter a school for: 51.5(1) failing to demonstrate the criteria under paragraph (c) under which the 51.6commissioner approved the authorizer; 51.7(2) violating a term of the chartering contract between the authorizer and the charter 51.8school board of directors; or 51.9(3) unsatisfactory performance as an approved authorizer. 51.10    Sec. 28. Minnesota Statutes 2009 Supplement, section 124D.10, subdivision 4, is 51.11amended to read: 51.12    Subd. 4. Formation of school. (a) An authorizer, after receiving an application from 51.13a school developer, may charter a licensed teacher under section 122A.18, subdivision 51.141 , or a group of individuals that includes one or more licensed teachers under section 51.15122A.18, subdivision 1 , to operate a school subject to the commissioner's approval of the 51.16authorizer's affidavit under paragraph (b). The school must be organized and operated 51.17as a cooperative under chapter 308A or nonprofit corporation under chapter 317A and 51.18the provisions under the applicable chapter shall apply to the school except as provided 51.19in this section. 51.20Notwithstanding sections 465.717 and 465.719, a school district, subject to this 51.21section and section 124D.11, may create a corporation for the purpose of establishing a 51.22charter school. 51.23    (b) Before the operators may establish and operate a school, the authorizer must file 51.24an affidavit with the commissioner stating its intent to charter a school. An authorizer 51.25must file a separate affidavit for each school it intends to charter. The affidavit must 51.26state the terms and conditions under which the authorizer would charter a school and 51.27how the authorizer intends to oversee the fiscal and student performance of the charter 51.28school and to comply with the terms of the written contract between the authorizer 51.29and the charter school board of directors under subdivision 6. The commissioner must 51.30approve or disapprove the authorizer's affidavit within 60 business days of receipt of the 51.31affidavit. If the commissioner disapproves the affidavit, the commissioner shall notify 51.32the authorizer of the deficiencies in the affidavit and the authorizer then has 20 business 51.33days to address the deficiencies. If the authorizer does not address deficiencies to the 51.34commissioner's satisfaction, the commissioner's disapproval is final. Failure to obtain 52.1commissioner approval precludes an authorizer from chartering the school that is the 52.2subject of this affidavit. 52.3    (c) The authorizer may prevent an approved charter school from opening for 52.4operation if, among other grounds, the charter school violates this section or does not meet 52.5the ready-to-open standards that are part of the authorizer's oversight and evaluation 52.6process or are stipulated in the charter school contract. 52.7(d) The operators authorized to organize and operate a school, before entering into a 52.8contract or other agreement for professional or other services, goods, or facilities, must 52.9incorporate as a cooperative under chapter 308A or as a nonprofit corporation under 52.10chapter 317A and must establish a board of directors composed of at least five members 52.11who are not related parties until a timely election for members of the ongoing charter 52.12school board of directors is held according to the school's articles and bylaws under 52.13paragraph (f). A charter school board of directors must be composed of at least five 52.14members who are not related parties. Staff members employed at the school, including 52.15teachers providing instruction under a contract with a cooperative, and all parents or legal 52.16guardians of children enrolled in the school are the voters eligible to elect the members 52.17of the school's board of directors. A charter school must notify eligible voters of the 52.18school board election dates at least 30 days before the election. Board of director meetings 52.19must comply with chapter 13D. 52.20    (e) Upon the request of an individual, the charter school must make available in 52.21a timely fashion the minutes of meetings of the board of directors, and of members 52.22and committees having any board-delegated authority; financial statements showing all 52.23operations and transactions affecting income, surplus, and deficit during the school's last 52.24annual accounting period; and a balance sheet summarizing assets and liabilities on the 52.25closing date of the accounting period. A charter school also must post on its official Web 52.26site information identifying its authorizer and indicate how to contact that authorizer and 52.27include that same information about its authorizer in other school materials that it makes 52.28available to the public. 52.29(f) Every charter school board member shall attend department-approved training 52.30on board governance, the board's role and responsibilities, employment policies and 52.31practices, and financial management. A board member who does not begin the required 52.32training within six months of being seated and complete the required training within 12 52.33months of being seated on the board is ineligible to continue to serve as a board member. 52.34(g) The ongoing board must be elected before the school completes its third year 52.35of operation. Board elections must be held during a time when school is in session. The 52.36charter school board of directors shall be composed of at least five nonrelated members 53.1and include: (i) at least one licensed teacher employed new text begin and serving as a teacher new text end at the 53.2school or a licensed teacher providing instruction under a contact new text begin contract new text end between the 53.3charter school and a cooperative; (ii) the parent or legal guardian of a student enrolled 53.4in the charter school new text begin who is not employed by the charter school new text end ; and (iii) an interested 53.5community member who is not employed by the charter school and does not have a child 53.6enrolled in the school. The board may be a teacher majority board composed of teachers 53.7described in this paragraph. The chief financial officer and the chief administrator are new text begin may new text end 53.8 new text begin only serve as new text end ex-officio nonvoting board members new text begin and shall not serve as a voting member new text end 53.9 new text begin of the board. Charter school employees shall not serve on the board unless item (i) applies. new text end 53.10 new text begin Contractors providing facilities, goods, or services to a charter school shall not serve on new text end 53.11 new text begin the board of directors of the charter school new text end . Board bylaws shall outline the process and 53.12procedures for changing the board's governance model, consistent with chapter 317A. A 53.13board may change its governance model only: 53.14(1) by a majority vote of the board of directors and the licensed teachers employed 53.15by the school, including licensed teachers providing instruction under a contract between 53.16the school and a cooperative; and 53.17(2) with the authorizer's approval. 53.18Any change in board governance must conform with the board structure established 53.19under this paragraph. 53.20(h) The granting or renewal of a charter by an authorizer must not be conditioned 53.21upon the bargaining unit status of the employees of the school. 53.22(i) The granting or renewal of a charter school by an authorizer must not be 53.23contingent on the charter school being required to contract, lease, or purchase services 53.24from the authorizer. Any potential contract, lease, or purchase of service from an 53.25authorizer must be disclosed to the commissioner, accepted through an open bidding 53.26process, and be a separate contract from the charter contract. The school must document 53.27the open bidding process. An authorizer must not enter into a contract to provide 53.28management and financial services for a school that it authorizes, unless the school 53.29documents that it received at least two competitive bids. 53.30    (j) An authorizer may permit the board of directors of a charter school to expand 53.31the operation of the charter school to additional sites or to add additional grades at the 53.32school beyond those described in the authorizer's original affidavit as approved by 53.33the commissioner only after submitting a supplemental affidavit for approval to the 53.34commissioner in a form and manner prescribed by the commissioner. The supplemental 53.35affidavit must show that: 54.1    (1) the expansion proposed by the charter school is supported by need and projected 54.2enrollment; 54.3(2) the charter school expansion is warranted, at a minimum, by longitudinal data 54.4demonstrating students' improved academic performance and growth on statewide 54.5assessments under chapter 120B; 54.6    (3) the charter school is fiscally sound and has the financial capacity to implement 54.7the proposed expansion; and 54.8    (4) the authorizer finds that the charter school has the management capacity to 54.9carry out its expansion. 54.10    (k) The commissioner shall have 30 business days to review and comment on the 54.11supplemental affidavit. The commissioner shall notify the authorizer of any deficiencies in 54.12the supplemental affidavit and the authorizer then has 30 business days to address, to the 54.13commissioner's satisfaction, any deficiencies in the supplemental affidavit. The school 54.14may not expand grades or add sites until the commissioner has approved the supplemental 54.15affidavit. The commissioner's approval or disapproval of a supplemental affidavit is final. 54.16    Sec. 29. Minnesota Statutes 2009 Supplement, section 124D.10, subdivision 4a, 54.17is amended to read: 54.18    Subd. 4a. Conflict of interest. (a) An individual is prohibited from serving new text begin must new text end 54.19 new text begin not serve new text end as a member of the charter school board of directors if the new text begin that new text end individual, an 54.20immediate family member, or the individual's partner is an owner, new text begin an new text end employee or agent 54.21of, or a contractor new text begin who contracts new text end with a for-profit or nonprofit entity new text begin , or an individual, and new text end 54.22with whom the charter school contracts, directly or indirectly, for professional services, 54.23goods, or facilities. A violation of this prohibition renders a contract voidable at the option 54.24of the commissioner or the charter school board of directors. A member of a charter 54.25school board of directors who violates this prohibition is individually liable to the charter 54.26school for any damage caused by the violation. 54.27(b) No member of the board of directors, employee, officer, or agent of a charter 54.28school shall participate in selecting, awarding, or administering a contract if a conflict 54.29of interest exists. A conflict exists when: 54.30(1) the board member, employee, officer, or agent; 54.31(2) the immediate family of the board member, employee, officer, or agent; 54.32(3) the partner of the board member, employee, officer, or agent; or 54.33(4) an organization that employs, or is about to employ any individual in clauses 54.34(1) to (3), 55.1has a financial or other interest in the entity with which the charter school is contracting. 55.2A violation of this prohibition renders the contract void. 55.3(c) Any employee, agent, or board member of the authorizer who participates 55.4in the initial review, approval, ongoing oversight, evaluation, or the charter renewal or 55.5nonrenewal process or decision is ineligible to serve on the board of directors of a school 55.6chartered by that authorizer. 55.7(d) An individual may serve as a member of the board of directors if no conflict of 55.8interest under paragraph (a) exists. 55.9(e) new text begin A charter school board member or employee may receive remuneration such as new text end 55.10 new text begin a fee-for-service as part of a financial transaction involving a charter school only if the new text end 55.11 new text begin remuneration is payment for services rendered that are in addition to the services the board new text end 55.12 new text begin member or employee already agreed to provide to the charter school and the board of new text end 55.13 new text begin directors formally approves the remuneration. new text end 55.14 new text begin (f) new text end The conflict of interest provisions under this subdivision do not apply to 55.15compensation paid to a teacher employed by the charter school who also serves as a 55.16member of the board of directors. 55.17(f) new text begin (g) new text end The conflict of interest provisions under this subdivision do not apply to a 55.18teacher who provides services to a charter school through a cooperative formed under 55.19chapter 308A when the teacher also serves on the charter school board of directors. 55.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 55.21    Sec. 30. Minnesota Statutes 2009 Supplement, section 124D.10, subdivision 6a, 55.22is amended to read: 55.23    Subd. 6a. Audit report. (a) The charter school must submit an audit report to the 55.24commissioner and its authorizer by December 31 each year. 55.25(b) The charter school, with the assistance of the auditor conducting the audit, must 55.26include with the report a copy of all charter school agreements for corporate management 55.27services. If the entity that provides the professional services to the charter school is 55.28exempt from taxation under section 501 of the Internal Revenue Code of 1986, that entity 55.29must file with the commissioner by February 15 a copy of the annual return required under 55.30section 6033 of the Internal Revenue Code of 1986. 55.31(c) If the commissioner receives an audit report indicating that a material weakness 55.32exists in the financial reporting systems of a charter school, the charter school must 55.33submit a written report to the commissioner explaining how the material weakness will 55.34be resolved. new text begin An entity, as a condition of providing financial services to a charter school, new text end 56.1 new text begin must agree to make available information about a charter school's financial audit to the new text end 56.2 new text begin commissioner upon request. new text end 56.3    Sec. 31. Minnesota Statutes 2009 Supplement, section 124D.10, subdivision 11, 56.4is amended to read: 56.5    Subd. 11. Employment and other operating matters. (a) A charter school must 56.6employ or contract with necessary teachers, as defined by section 122A.15, subdivision 56.71 , who hold valid licenses to perform the particular service for which they are employed 56.8in the school. The charter school's state aid may be reduced under section 127A.43 56.9if the school employs a teacher who is not appropriately licensed or approved by the 56.10board of teaching. The school may employ necessary employees who are not required to 56.11hold teaching licenses to perform duties other than teaching and may contract for other 56.12services. The school may discharge teachers and nonlicensed employees. The charter 56.13school board is subject to section 181.932. When offering employment to a prospective 56.14employee, a charter school must give that employee a written description of the terms and 56.15conditions of employment and the school's personnel policies. new text begin The terms and conditions new text end 56.16 new text begin of employment must include an annual teacher evaluation that is substantively consistent new text end 56.17 new text begin with section 122A.40, subdivision 8, paragraph (b). Teacher evaluations do not create new text end 56.18 new text begin an expectation of continuing employment. new text end 56.19(b) A person, without holding a valid administrator's license, may perform 56.20administrative, supervisory, or instructional leadership duties. The board of directors shall 56.21establish qualifications for persons that hold administrative, supervisory, or instructional 56.22leadership roles. The qualifications shall include at least the following areas: instruction 56.23and assessment; human resource and personnel management; financial management; 56.24legal and compliance management; effective communication; and board, authorizer, and 56.25community relationships. The board of directors shall use those qualifications as the 56.26basis for job descriptions, hiring, and performance evaluations new text begin , substantively consistent new text end 56.27 new text begin with section 123B.147, subdivision 3, paragraph (b), new text end of those who hold administrative, 56.28supervisory, or instructional leadership roles. new text begin Performance evaluations do not create new text end 56.29 new text begin an expectation of continuing employment. new text end The board of directors and an individual 56.30who does not hold a valid administrative license and who serves in an administrative, 56.31supervisory, or instructional leadership position shall develop a professional development 56.32plan. Documentation of the implementation of the professional development plan of these 56.33persons shall be included in the school's annual report. 56.34(c) The board of directors also shall decide matters related to the operation of the 56.35school, including budgeting, curriculum and operating procedures. 57.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for the 2011-2012 school year and new text end 57.2 new text begin later. new text end 57.3    Sec. 32. Minnesota Statutes 2009 Supplement, section 124D.10, subdivision 23, 57.4is amended to read: 57.5    Subd. 23. Causes for nonrenewal or termination of charter school contract. (a) 57.6The duration of the contract with an authorizer must be for the term contained in the 57.7contract according to subdivision 6. The authorizer may or may not renew a contract at 57.8the end of the term for any ground listed in paragraph (b). An authorizer may unilaterally 57.9terminate a contract during the term of the contract for any ground listed in paragraph 57.10(b). At least 60 days before not renewing or terminating a contract, the authorizer shall 57.11notify the board of directors of the charter school of the proposed action in writing. The 57.12notice shall state the grounds for the proposed action in reasonable detail and that the 57.13charter school's board of directors may request in writing an informal hearing before the 57.14authorizer within 15 business days of receiving notice of nonrenewal or termination of the 57.15contract. Failure by the board of directors to make a written request for a hearing within 57.16the 15-business-day period shall be treated as acquiescence to the proposed action. Upon 57.17receiving a timely written request for a hearing, the authorizer shall give ten business days' 57.18notice to the charter school's board of directors of the hearing date. The authorizer shall 57.19conduct an informal hearing before taking final action. The authorizer shall take final 57.20action to renew or not renew a contract no later than 20 business days before the proposed 57.21date for terminating the contract or the end date of the contract. 57.22(b) A contract may be terminated or not renewed upon any of the following grounds: 57.23(1) failure to meet the requirements for pupil performance contained in the contract; 57.24(2) failure to meet generally accepted standards of fiscal management; 57.25(3) violations of law; or 57.26(4) other good cause shown. 57.27If a contract is terminated or not renewed under this paragraph, the school must be 57.28dissolved according to the applicable provisions of chapter 308A or 317A. 57.29(c) If the sponsor and the charter school board of directors mutually agree to 57.30terminate or not renew the contract, a change in sponsors is allowed if the commissioner 57.31approves the transfer to a different eligible authorizer to authorize the charter school. 57.32Both parties must jointly submit their intent in writing to the commissioner to mutually 57.33terminate the contract. The sponsor that is a party to the existing contract at least must 57.34inform the approved different eligible sponsor about the fiscal and operational status 57.35and student performance of the school. Before the commissioner determines whether 58.1to approve a transfer of authorizer, the commissioner first must determine whether the 58.2charter school and prospective new authorizer can identify and effectively resolve those 58.3circumstances causing the previous authorizer and the charter school to mutually agree to 58.4terminate the contract. If no transfer of sponsor is approved, the school must be dissolved 58.5according to applicable law and the terms of the contract. 58.6(d) The commissioner, after providing reasonable notice to the board of directors of 58.7a charter school and the existing authorizer, and after providing an opportunity for a public 58.8hearing new text begin under chapter 14 new text end , may terminate the existing contract between the authorizer and 58.9the charter school board if the charter school has a history of: 58.10(1) failure to meet pupil performance requirements contained in the contract new text begin new text end 58.11 new text begin consistent with state law new text end ; 58.12(2) financial mismanagement or failure to meet generally accepted standards of 58.13fiscal management; or 58.14(3) repeated or major violations of the law. 58.15    (e) If the commissioner terminates a charter school contract under subdivision 3, 58.16paragraph (g), the commissioner shall provide the charter school with information about 58.17other eligible authorizers. 58.18    Sec. 33. new text begin [124D.101] VACANT BUILDING INVENTORY. new text end 58.19 new text begin The Department of Administration and the Department of Education annually shall new text end 58.20 new text begin publish a list of state and district-owned buildings and parts of buildings that are vacant new text end 58.21 new text begin and unused and that may be suitable for operating a charter school. The Department of new text end 58.22 new text begin Education shall make the list available to charter school applicants and operators. The new text end 58.23 new text begin list shall include the building address, a brief building description, and building name. new text end 58.24 new text begin Nothing in this section requires a building owner to sell or lease a listed building or a part new text end 58.25 new text begin of a building to a charter school, any other school, or any other prospective buyer or new text end 58.26 new text begin tenant. School districts, upon request, must provide the Department of Education with the new text end 58.27 new text begin information it needs to compile the vacant building list under this section. new text end 58.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 58.29    Sec. 34. Laws 2009, chapter 96, article 2, section 64, is amended to read: 58.30    Sec. 64. RESERVED REVENUE FOR STAFF DEVELOPMENT; 58.31TEMPORARY SUSPENSION. 58.32 new text begin (a) new text end Notwithstanding Minnesota Statutes, section 122A.61, subdivision 1, for fiscal 58.33years 2010 and 2011 only, a school district or charter school may use revenue reserved for 58.34staff development under Minnesota Statutes, section 122A.61, subdivision 1, according 59.1to the requirements of general education revenue under Minnesota Statutes, section 59.2126C.13, subdivision 5 . 59.3 new text begin (b) On June 30, 2010, a school district may permanently transfer any balance from new text end 59.4 new text begin the reserved account for staff development to the undesignated general fund balance. new text end 59.5    Sec. 35. Laws 2009, chapter 96, article 2, section 67, subdivision 14, is amended to 59.6read: 59.7    Subd. 14. Collaborative urban educator. For the collaborative urban educator 59.8grant program: 59.9 $ 528,000 ..... 2010 59.10 $ 528,000 ..... 2011 59.11 new text begin $210,000 each year is for the Southeast Asian teacher program at Concordia new text end 59.12 new text begin University, St. Paul; $159,000 each year is for the collaborative urban educator program at new text end 59.13 new text begin the University of St. Thomas; and $159,000 each year is for the Center for Excellence in new text end 59.14 new text begin Urban Teaching at Hamline University. Grant recipients must collaborate with urban and new text end 59.15 new text begin nonurban school districts. new text end Any balance in the first year does not cancel but is available 59.16in the second year. 59.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 59.18    Sec. 36. Laws 2009, chapter 96, article 2, section 67, subdivision 17, is amended to 59.19read: 59.20    Subd. 17. Education Planning and Assessment System (EPAS) program. For 59.21the Educational Planning and Assessment System (EPAS) program under Minnesota 59.22Statutes, section 120B.128: 59.23 $ 829,000 ..... 2010 59.24 $ 829,000 new text begin 638,000 new text end ..... 2011 59.25Any balance in the first year does not cancel but is available in the second year. 59.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2010. new text end 59.27    Sec. 37. new text begin IMPLEMENTING DIFFERENTIATED GRADUATION RATE new text end 59.28 new text begin MEASURES AND EXPLORING ALTERNATIVE ROUTES TO A STANDARD new text end 59.29 new text begin DIPLOMA FOR AT-RISK AND OFF-TRACK STUDENTS. new text end 59.30 new text begin (a) To implement the requirements of Minnesota Statutes, section 120B.35, new text end 59.31 new text begin subdivision 3, paragraph (e), the commissioner of education must convene a group new text end 59.32 new text begin of recognized and qualified experts on improving differentiated graduation rates and new text end 60.1 new text begin establishing alternative routes to a standard high school diploma for at-risk and off-track new text end 60.2 new text begin students throughout the state. The commissioner must assist the group, as requested, new text end 60.3 new text begin to explore and recommend to the commissioner and the legislature (i) research-based new text end 60.4 new text begin measures that demonstrate the relative success of school districts, school sites, charter new text end 60.5 new text begin schools, and alternative program providers in improving the graduation outcomes of new text end 60.6 new text begin at-risk and off-track students, and (ii) state options for establishing alternative routes to a new text end 60.7 new text begin standard diploma consistent with the educational accountability system under Minnesota new text end 60.8 new text begin Statutes, chapter 120B. When proposing alternative routes to a standard diploma, the new text end 60.9 new text begin group also must identify highly reliable variables that generate summary data to comply new text end 60.10 new text begin with Minnesota Statutes, section 120B.35, subdivision 3, paragraph (e), including: who new text end 60.11 new text begin initiates the request for an alternative route; who approves the request for an alternative new text end 60.12 new text begin route; the parameters of the alternative route process, including whether a student first new text end 60.13 new text begin must fail a regular, state-mandated exam; and the comparability of the academic and new text end 60.14 new text begin achievement criteria reflected in the alternative route and the standard route for a standard new text end 60.15 new text begin diploma. The group is also encouraged to identify the data, time lines, and methods new text end 60.16 new text begin needed to evaluate and report on the alternative routes to a standard diploma once they are new text end 60.17 new text begin implemented and the student outcomes that result from those routes. new text end 60.18 new text begin (b) The commissioner must convene the first meeting of this group by September new text end 60.19 new text begin 15, 2010. Group members must include: one administrator of, one teacher from, and new text end 60.20 new text begin one parent of a student currently enrolled in a state-approved alternative program new text end 60.21 new text begin selected by the Minnesota Association of Alternative Programs; one representative new text end 60.22 new text begin selected by the Minnesota Online Learning Alliance; one representative selected by new text end 60.23 new text begin the Metropolitan Federation of Alternative Schools; one representative selected by the new text end 60.24 new text begin Minnesota Association of Charter Schools; one representative selected by the Minnesota new text end 60.25 new text begin School Board Association; one representative selected by Education Minnesota; one new text end 60.26 new text begin representative selected by the Association of Metropolitan School Districts; one new text end 60.27 new text begin representative selected by the Minnesota Rural Education Association; two faculty new text end 60.28 new text begin members selected by the dean of the college of education at the University of Minnesota new text end 60.29 new text begin with expertise in serving and assessing at-risk and off-track students; two Minnesota State new text end 60.30 new text begin Colleges and Universities faculty members selected by the Minnesota State Colleges new text end 60.31 new text begin and Universities chancellor with expertise in serving and assessing at-risk and off-track new text end 60.32 new text begin students; one currently serving superintendent from a school district selected by the new text end 60.33 new text begin Minnesota Association of School Administrators; one currently serving high school new text end 60.34 new text begin principal selected by the Minnesota Association of Secondary School Principals; and new text end 60.35 new text begin two public members selected by the commissioner. The group may seek input from new text end 60.36 new text begin representatives of other interested stakeholders and organizations with expertise to help new text end 61.1 new text begin inform the group's work. The group must meet at least quarterly. Group members do not new text end 61.2 new text begin receive compensation or reimbursement of expenses for participating in this group. The new text end 61.3 new text begin group expires February 16, 2012. new text end 61.4 new text begin (c) The group, by February 15, 2012, must develop and submit to the commissioner new text end 61.5 new text begin and the education policy and finance committees of the legislature recommendations new text end 61.6 new text begin and legislation, consistent with this section and Minnesota Statutes, section 120B.35, new text end 61.7 new text begin subdivision 3, paragraph (e), for: new text end 61.8 new text begin (1) measuring and reporting differentiated graduation rates for at-risk and off-track new text end 61.9 new text begin students throughout the state and the success and costs that school districts, school sites, new text end 61.10 new text begin charter schools, and alternative program providers experience in identifying and serving new text end 61.11 new text begin at-risk or off-track student populations; and new text end 61.12 new text begin (2) establishing alternative routes to a standard diploma. new text end 61.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 61.14 new text begin and applies to school report cards beginning July 1, 2013. new text end 61.15    Sec. 38. new text begin RULEMAKING AUTHORITY. new text end 61.16 new text begin The commissioner of education shall adopt rules consistent with chapter 14 that new text end 61.17 new text begin provide English language proficiency standards for instruction of students identified new text end 61.18 new text begin as limited English proficient under Minnesota Statutes, sections 124D.58 to 124D.64. new text end 61.19 new text begin The English language proficiency standards must encompass the language domains of new text end 61.20 new text begin listening, speaking, reading, and writing. The English language proficiency standards must new text end 61.21 new text begin reflect social and academic dimensions of acquiring a second language that are accepted new text end 61.22 new text begin of English language learners in prekindergarten through grade 12. The English language new text end 61.23 new text begin proficiency standards must address the specific contexts for language acquisition in the new text end 61.24 new text begin areas of social and instructional settings as well as academic language encountered in new text end 61.25 new text begin language arts, mathematics, science, and social studies. The English language proficiency new text end 61.26 new text begin standards must express the progression of language development through language new text end 61.27 new text begin proficiency levels. The English language proficiency standards must be implemented new text end 61.28 new text begin for all limited English proficient students beginning in the 2011-2012 school year and new text end 61.29 new text begin assessed beginning in the 2012-2013 school year. new text end 61.30    Sec. 39. new text begin DEPARTMENT OF EDUCATION. new text end 61.31     new text begin Subdivision 1. new text end new text begin Recess guidelines. new text end new text begin The department is encouraged to develop new text end 61.32 new text begin voluntary school district guidelines that promote high quality recess practices and foster new text end 61.33 new text begin student behaviors that lead students to increase their activity levels, improve their social new text end 61.34 new text begin skills, and misbehave less. new text end 62.1     new text begin Subd. 2. new text end new text begin Common course catalogue. new text end new text begin The department is encouraged to include new text end 62.2 new text begin in the Minnesota common course catalogue all district physical education classes and new text end 62.3 new text begin physical education graduation requirements. new text end 62.4     new text begin Subd. 3. new text end new text begin Standards adoption. new text end new text begin Notwithstanding Minnesota Statutes, sections new text end 62.5 new text begin 120B.021, subdivision 2, and 120B.023, any statutory criteria required when reviewing or new text end 62.6 new text begin revising standards and benchmarks, any requirements governing the content of statewide new text end 62.7 new text begin standards, and any other law to the contrary, the commissioner of education shall initially new text end 62.8 new text begin adopt the most recent standards developed by the National Association for Sport and new text end 62.9 new text begin Physical Education for physical education in kindergarten through grade 12. new text end 62.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 62.11    Sec. 40. new text begin HEALTHY KIDS AWARDS PROGRAM. new text end 62.12     new text begin Subdivision 1. new text end new text begin Recognition. new text end new text begin The healthy kids awards program rewards kindergarten new text end 62.13 new text begin through grade 12 students for their nutritional well-being and physical activity. In addition new text end 62.14 new text begin to the physical and nutritional education students receive in physical education classes, new text end 62.15 new text begin the program is intended to integrate physical activity and nutritional education into new text end 62.16 new text begin nonphysical education classes, recess, and extracurricular activities throughout the day. new text end 62.17 new text begin Interested schools must agree to participate from October through May of each school year. new text end 62.18     new text begin Subd. 2. new text end new text begin School district participation. new text end new text begin School districts annually by September new text end 62.19 new text begin 15 may submit to the commissioner of education a letter of intent to participate in a new text end 62.20 new text begin healthy kids awards program from October to May during the current school year. The new text end 62.21 new text begin commissioner must recognize on the school performance report card under Minnesota new text end 62.22 new text begin Statutes, section 120B.36, those schools and districts that affirm to the commissioner, as new text end 62.23 new text begin prescribed by the commissioner, that at least 75 percent of students in the school or district new text end 62.24 new text begin are physically active for at least 60 minutes each school day. The time students spend new text end 62.25 new text begin participating in a physical education class counts toward the daily 60-minute requirement. new text end 62.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 62.27 new text begin and applies beginning in the 2010-2011 school year and later. new text end 62.28    Sec. 41. new text begin ADVISORY TASK FORCE ON SCHOOL DESEGREGATION AND new text end 62.29 new text begin INTEGRATION. new text end 62.30     new text begin Subdivision 1. new text end new text begin Establishment; purpose; membership. new text end new text begin (a) An advisory task force new text end 62.31 new text begin on school desegregation and integration is established to develop recommendations and new text end 62.32 new text begin legislation for the legislature on: (i) addressing the findings and recommendations in the new text end 62.33 new text begin 2005 Minnesota legislative auditor's report on school district integration revenue, (ii) new text end 63.1 new text begin amending Minnesota's school desegregation rule, and (iii) specifying the purpose, use, and new text end 63.2 new text begin allocation of integration revenue under Minnesota Statutes, section 124D.86. The task new text end 63.3 new text begin force shall consist of education stakeholders interested in addressing school desegregation new text end 63.4 new text begin and integration policies, integration revenue uses, and the academic achievement gap new text end 63.5 new text begin among groups of students. The 17-member task force consists of the commissioner of new text end 63.6 new text begin education or the commissioner's designee and the following: new text end 63.7 new text begin (1) one member appointed by and serving at the pleasure of the Minnesota Indian new text end 63.8 new text begin Affairs Council; new text end 63.9 new text begin (2) one member appointed by and serving at the pleasure of the Council on new text end 63.10 new text begin Asian-Pacific Minnesotans; new text end 63.11 new text begin (3) one member appointed by and serving at the pleasure of the Council on Black new text end 63.12 new text begin Minnesotans; new text end 63.13 new text begin (4) one member appointed by and serving at the pleasure of the Chicano Latino new text end 63.14 new text begin Affairs Council; new text end 63.15 new text begin (5) three public members appointed by the speaker of the house who are currently new text end 63.16 new text begin serving as school district superintendents, collaborative coordinators, or school board new text end 63.17 new text begin members, with one public member from each of the following: an urban school district, a new text end 63.18 new text begin suburban school district, and a rural school district, and where at least one of the three new text end 63.19 new text begin public members is also from a metropolitan integration district; new text end 63.20 new text begin (6) four current members of the house of representatives appointed by the speaker new text end 63.21 new text begin of the house, with two from each political party, and where two members are from the new text end 63.22 new text begin seven-county metropolitan area and two members are from rural Minnesota; new text end 63.23 new text begin (7) three public members appointed by the senate Subcommittee on Committees of new text end 63.24 new text begin the Committee on Rules and Administration who are currently serving as school district new text end 63.25 new text begin superintendents, collaborative coordinators, or school board members, with one public new text end 63.26 new text begin member from each of the following: an urban school district, a suburban school district, new text end 63.27 new text begin and a rural school district, and where at least one of the three public members is also from new text end 63.28 new text begin a rural integration collaborative district; and new text end 63.29 new text begin (8) two current members of the senate appointed by the senate Subcommittee on new text end 63.30 new text begin Committees of the Committee on Rules and Administration, with one from each political new text end 63.31 new text begin party, and where one member is from the seven-county metropolitan area and the second new text end 63.32 new text begin member is from rural Minnesota. new text end 63.33 new text begin (b) Task force members shall be appointed by July 1, 2010. Task force members new text end 63.34 new text begin shall be represented by the designated appointee of each named organization. The task new text end 63.35 new text begin force shall seek input from nonmember organizations such as the Institute on Race and new text end 63.36 new text begin Poverty, the Minneapolis Urban League, the Minnesota Minority Education Partnership, new text end 64.1 new text begin the National Association for the Advancement of Colored People, and the Office of the new text end 64.2 new text begin State Demographer, among other organizations whose expertise can help inform the new text end 64.3 new text begin work of the task force. new text end 64.4 new text begin (c) The commissioner of education shall convene the first meeting of the task force new text end 64.5 new text begin by September 15, 2010. Task force members shall elect one member to serve as the new text end 64.6 new text begin task force chair. The task force may invite representatives of other interested education new text end 64.7 new text begin stakeholders and organizations to participate in task force meetings. The task force must new text end 64.8 new text begin meet at least monthly. new text end 64.9 new text begin (d) Upon request, the commissioner of education shall provide assistance to the new text end 64.10 new text begin task force. new text end 64.11 new text begin (e) Task force members do not receive compensation or reimbursement of expenses new text end 64.12 new text begin from the task force for service on the task force. new text end 64.13     new text begin Subd. 2. new text end new text begin Duties; report. new text end new text begin (a) The task force shall develop recommendations and new text end 64.14 new text begin legislation for addressing the findings and recommendations in the 2005 Minnesota new text end 64.15 new text begin legislative auditor's report on school district integration revenue, amending Minnesota's new text end 64.16 new text begin school desegregation rule, and Minnesota Statutes, section 124D.86, governing the use new text end 64.17 new text begin and allocation of integration revenue. These recommendations and legislation may new text end 64.18 new text begin address but are not limited to: new text end 64.19 new text begin (1) access to integrated and equitable learning environments that enhance new text end 64.20 new text begin achievement and opportunities for all students; new text end 64.21 new text begin (2) changing demographics among Minnesota students reflected in the increasing new text end 64.22 new text begin numbers of students of color, new immigrants, and English language learners; new text end 64.23 new text begin (3) cultural proficiency training for teachers; new text end 64.24 new text begin (4) the impact of school choice laws on state and local school desegregation and new text end 64.25 new text begin integration efforts; and new text end 64.26 new text begin (5) financial and other resources that enable schools and school districts to provide new text end 64.27 new text begin staff development training, magnet schools, and other interdistrict collaborative initiatives new text end 64.28 new text begin that enhance student achievement. new text end 64.29 new text begin (b) By January 15, 2011, the task force shall submit to the legislative committees new text end 64.30 new text begin and divisions with jurisdiction over early childhood through grade 12 education policy new text end 64.31 new text begin and finance a report and accompanying legislation that reflect the substance of the new text end 64.32 new text begin recommendation of the task force. new text end 64.33     new text begin Subd. 3. new text end new text begin Expiration. new text end new text begin The task force expires on January 16, 2011. new text end 64.34 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 64.35    Sec. 42. new text begin ASSESSMENT ADVISORY COMMITTEE; RECOMMENDATIONS. new text end 65.1 new text begin (a) The Assessment Advisory Committee must develop recommendations for new text end 65.2 new text begin alternative methods by which students satisfy the high school algebra end-of-course new text end 65.3 new text begin requirements under Minnesota Statutes, section 120B.30, subdivision 1b, paragraph (b), new text end 65.4 new text begin clause (9), and demonstrate their college and career readiness. The Assessment Advisory new text end 65.5 new text begin Committee, among other alternative methods and if consistent with federal educational new text end 65.6 new text begin accountability law, must consider allowing students to: new text end 65.7 new text begin (1) achieve the mathematics college readiness score on the American College Test new text end 65.8 new text begin (ACT) or Scholastic Aptitude Test (SAT) exam; new text end 65.9 new text begin (2) achieve a college-credit score on a College-Level Examination Program (CLEP) new text end 65.10 new text begin for algebra; new text end 65.11 new text begin (3) achieve a score on an equivalent Advanced Placement or International new text end 65.12 new text begin Baccalaureate exam that would earn credit at a four-year college or university; or new text end 65.13 new text begin (4) pass a credit-bearing course in college algebra or a more advanced course in that new text end 65.14 new text begin subject with a grade of C or better under Minnesota Statutes, section 124D.09, including new text end 65.15 new text begin Minnesota Statutes, section 124D.09, subdivision 10. new text end 65.16 new text begin (b) The Assessment Advisory Committee, in the context of the high school algebra new text end 65.17 new text begin end-of-course assessment under Minnesota Statutes, section 120B.30, subdivision 1b, may new text end 65.18 new text begin develop recommendations on integrating universal design principles to improve access new text end 65.19 new text begin to learning and assessments for all students, more accurately understand what students new text end 65.20 new text begin know and can do, provide Minnesota with more cost-effective assessments, and provide new text end 65.21 new text begin educators with more valid inferences about students' achievement levels. new text end 65.22 new text begin (c) The Assessment Advisory Committee, for purposes of fully implementing the new text end 65.23 new text begin high school algebra end-of-course assessment under Minnesota Statutes, section 120B.30, new text end 65.24 new text begin subdivision 1b, also must develop recommendations for: new text end 65.25 new text begin (1) calculating the alignment index, including how questions about validity and new text end 65.26 new text begin reliability are resolved; and new text end 65.27 new text begin (2) defining "misaligned" and "highly misaligned" and when and under what specific new text end 65.28 new text begin circumstances misalignments occur. new text end 65.29 new text begin (d) By February 15, 2011, the Assessment Advisory Committee must submit its new text end 65.30 new text begin recommendations under this section to the education commissioner and the education new text end 65.31 new text begin policy and finance committees of the legislature. new text end 65.32 new text begin (e) The commissioner must not implement any element of any recommendation new text end 65.33 new text begin under paragraphs (a) to (d) related to the high school algebra end-of-course assessment new text end 65.34 new text begin under Minnesota Statutes, section 120B.30, subdivision 1b, without first receiving specific new text end 65.35 new text begin legislative authority to do so. new text end 65.36 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 66.1    Sec. 43. new text begin REPEALER. new text end 66.2 new text begin Minnesota Statutes 2008, section 122A.24, new text end new text begin is repealed. new text end 66.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective August 1, 2010. new text end 66.4ARTICLE 3 66.5SPECIAL PROGRAMS 66.6    Section 1. Minnesota Statutes 2009 Supplement, section 125A.02, subdivision 1, 66.7is amended to read: 66.8    Subdivision 1. Child with a disability. "Child with a disability" means a child 66.9identified under federal and state special education law as having a hearing impairment, 66.10blindness, visual disability, new text begin deaf or hard-of-hearing, blind or visually impaired, deafblind, new text end 66.11 new text begin or having a new text end speech or language impairment, new text begin a new text end physical disability new text begin impairment new text end , other health 66.12impairment new text begin disability new text end , mental new text begin developmental cognitive new text end disability, emotional/behavioral new text begin an new text end 66.13 new text begin emotional or behavioral new text end disorder, specific learning disability, autism new text begin spectrum disorder new text end , 66.14traumatic brain injury, new text begin or severe new text end multiple disabilities new text begin impairments new text end , or deafblind disability new text begin new text end 66.15 new text begin and new text end who needs special education and related services, as determined by the rules of the 66.16commissioner, is a child with a disability. A licensed physician, an advanced practice 66.17nurse, or a licensed psychologist is qualified to make a diagnosis and determination 66.18of attention deficit disorder or attention deficit hyperactivity disorder for purposes of 66.19identifying a child with a disability. 66.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2010. new text end 66.21    Sec. 2. Minnesota Statutes 2008, section 125A.03, is amended to read: 66.22125A.03 SPECIAL INSTRUCTION FOR CHILDREN WITH A DISABILITY. 66.23(a) As defined new text begin Except as provided new text end in paragraph (b), every district must provide new text begin or new text end 66.24 new text begin make available new text end special instruction new text begin education new text end and new text begin related new text end services, either within the district 66.25or in another district, for all children new text begin every child new text end with a disability, including providing 66.26required services under Code of Federal Regulations, title 34, section 300.121, paragraph 66.27(d) , to those children suspended or expelled from school for more than ten school days 66.28in that school year, who are residents new text begin is a resident new text end of the district and who are disabled as 66.29set forth in section new text begin from birth until that child becomes 21 years old or receives new text end 66.30 new text begin a regular high school diploma, whichever comes first new text end . For purposes of state and federal 66.31special education laws, The phrase "special instruction new text begin education new text end and new text begin related new text end services" 66.32in the state Education Code means a free and appropriate public education provided to an 67.1eligible child with disabilities and includes special education and related services defined 67.2in the Individuals with Disabilities Education Act, subpart A, section new text begin a disability new text end . 67.3(b) Notwithstanding any age limits in laws to the contrary, special instruction and 67.4services must be provided from birth until July 1 after the child with a disability becomes 67.521 years old but shall not extend beyond secondary school or its equivalent, except as 67.6provided in section 124D.68, subdivision 2. new text begin If a child with a disability becomes 21 years new text end 67.7 new text begin old during the school year, the district shall continue to make available special education new text end 67.8 new text begin and related services until the last day of the school year, or until the day the child receives new text end 67.9 new text begin a regular high school diploma, whichever comes first. new text end 67.10 new text begin (c) For purposes of this section and section 121A.41, subdivision 7, paragraph (a), new text end 67.11 new text begin clause (2), "school year" means the days of student instruction designated by the school new text end 67.12 new text begin board as the regular school year in the annual calendar adopted under section 120A.41. new text end 67.13 new text begin (d) A district shall identify, locate, and evaluate children with a disability in the new text end 67.14 new text begin district who are in need of special education and related services. new text end Local health, education, 67.15and social service agencies must refer children under age five who are known to need or 67.16suspected of needing special instruction new text begin education new text end and new text begin related new text end services to the school 67.17district. Districts with less than the minimum number of eligible children with a disability 67.18as determined by the commissioner must cooperate with other districts to maintain a full 67.19range of programs for education and services for children with a disability. This section 67.20does not alter the compulsory attendance requirements of section . 67.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2010. new text end 67.22    Sec. 3. new text begin [125A.031] RESOLVING DISPUTES AMONG DISTRICTS. new text end 67.23 new text begin If districts dispute which district is responsible for providing or making available new text end 67.24 new text begin special education and related services to a child with a disability who is not currently new text end 67.25 new text begin enrolled in a district because the child's district of residence is disputed, the district in new text end 67.26 new text begin which that child first tries to enroll shall provide or make available special education new text end 67.27 new text begin and related services to the child until the commissioner is notified and expeditiously new text end 67.28 new text begin resolves the dispute. For purposes of this section, "district" means a school district or a new text end 67.29 new text begin charter school. new text end 67.30    Sec. 4. Minnesota Statutes 2009 Supplement, section 125A.091, subdivision 7, is 67.31amended to read: 67.32    Subd. 7. Conciliation conference. A parent must have an opportunity to meet with 67.33appropriate district staff in at least one conciliation conference if the parent objects to 67.34any proposal of which the parent receives notice under subdivision 3a. A district must 68.1 new text begin offer to new text end hold a conciliation conference within new text begin two business days after receiving a parent's new text end 68.2 new text begin objection to a proposal or refusal in the prior written notice. The district must hold the new text end 68.3 new text begin conciliation conference within new text end ten calendar days from the date the district receives a new text begin the new text end 68.4parent's objection to a proposal or refusal in the prior written notice. Except as provided 68.5in this section, all discussions held during a conciliation conference are confidential 68.6and are not admissible in a due process hearing. Within five school days after the final 68.7conciliation conference, the district must prepare and provide to the parent a conciliation 68.8conference memorandum that describes the district's final proposed offer of service. This 68.9memorandum is admissible in evidence in any subsequent proceeding. 68.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 68.11 new text begin and applies to all conciliation conferences required after that date. new text end 68.12    Sec. 5. Minnesota Statutes 2008, section 125A.21, subdivision 2, is amended to read: 68.13    Subd. 2. Third party reimbursement. (a) Beginning July 1, 2000, districts shall 68.14seek reimbursement from insurers and similar third parties for the cost of services 68.15provided by the district whenever the services provided by the district are otherwise 68.16covered by the child's health coverage. Districts shall request, but may not require, the 68.17child's family to provide information about the child's health coverage when a child with a 68.18disability begins to receive services from the district of a type that may be reimbursable, 68.19and shall request, but may not require, updated information after that as needed. 68.20(b) For children enrolled in medical assistance under chapter 256B or MinnesotaCare 68.21under chapter 256L who have no other health coverage, a district shall provide an initial 68.22written notice to the enrolled child's parent or legal representative of its intent to seek 68.23reimbursement from medical assistance or MinnesotaCare for the individual education 68.24plan health-related services provided by the district. new text begin The notice shall include: new text end 68.25 new text begin (1) the right of the parent or legal representative to request a copy of all records new text end 68.26 new text begin concerning individualized education program health-related services disclosed by the new text end 68.27 new text begin district to any third party; new text end 68.28 new text begin (2) the right of the parent or legal representative to withdraw consent for disclosing a new text end 68.29 new text begin child's records at any time without consequence, including consent that was initially new text end 68.30 new text begin given as part of the application process for MinnesotaCare or medical assistance under new text end 68.31 new text begin section 256B.08, subdivision 1; and new text end 68.32 new text begin (3) a decision to revoke consent for schools to share information from education new text end 68.33 new text begin records does not impact a parent's eligibility for MinnesotaCare or medical assistance. new text end 68.34(c) The district shall give the parent or legal representative annual written notice of: 69.1(1) the district's intent to seek reimbursement from medical assistance or 69.2MinnesotaCare for individual education plan health-related services provided by the 69.3district; 69.4(2) the right of the parent or legal representative to request a copy of all records 69.5concerning individual education plan health-related services disclosed by the district to 69.6any third party; and 69.7(3) the right of the parent or legal representative to withdraw consent for disclosure 69.8of a child's records at any time without consequence new text begin , including consent that was initially new text end 69.9 new text begin given as part of the application process for MinnesotaCare or medical assistance under new text end 69.10 new text begin section 256B.08, subdivision 1 new text end . 69.11The written notice shall be provided as part of the written notice required by Code of 69.12Federal Regulations, title 34, section 300.504. 69.13(d) In order to access the private health care coverage of a child who is covered by 69.14private health care coverage in whole or in part, a district must: 69.15(1) obtain annual written informed consent from the parent or legal representative, in 69.16compliance with subdivision 5; and 69.17(2) inform the parent or legal representative that a refusal to permit the district 69.18or state Medicaid agency to access their private health care coverage does not relieve 69.19the district of its responsibility to provide all services necessary to provide free and 69.20appropriate public education at no cost to the parent or legal representative. 69.21(e) If the commissioner of human services obtains federal approval to exempt 69.22covered individual education plan health-related services from the requirement that private 69.23health care coverage refuse payment before medical assistance may be billed, paragraphs 69.24(b), (c), and (d) shall also apply to students with a combination of private health care 69.25coverage and health care coverage through medical assistance or MinnesotaCare. 69.26(f) In the event that Congress or any federal agency or the Minnesota legislature 69.27or any state agency establishes lifetime limits, limits for any health care services, 69.28cost-sharing provisions, or otherwise provides that individual education plan health-related 69.29services impact benefits for persons enrolled in medical assistance or MinnesotaCare, the 69.30amendments to this subdivision adopted in 2002 are repealed on the effective date of any 69.31federal or state law or regulation that imposes the limits. In that event, districts must 69.32obtain informed consent consistent with this subdivision as it existed prior to the 2002 69.33amendments and subdivision 5, before seeking reimbursement for children enrolled in 69.34medical assistance under chapter 256B or MinnesotaCare under chapter 256L who have 69.35no other health care coverage. 70.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 70.2    Sec. 6. Minnesota Statutes 2008, section 125A.21, subdivision 3, is amended to read: 70.3    Subd. 3. Use of reimbursements. Of the reimbursements received, districts may: 70.4(1) retain an amount sufficient to compensate the district for its administrative costs 70.5of obtaining reimbursements; 70.6(2) regularly obtain from education- and health-related entities training and other 70.7appropriate technical assistance designed to improve the district's ability to determine 70.8which services are reimbursable and to seek timely reimbursement in a cost-effective 70.9manner new text begin access third-party payments for individualized education program health-related new text end 70.10 new text begin services new text end ; or 70.11(3) reallocate reimbursements for the benefit of students with special needs new text begin new text end 70.12 new text begin individualized education programs or individual family service plans new text end in the district. 70.13    Sec. 7. Minnesota Statutes 2008, section 125A.21, subdivision 5, is amended to read: 70.14    Subd. 5. Informed consent. When obtaining informed consent, consistent with 70.15sections 13.05, subdivision 4, paragraph (d); and new text begin , new text end 256B.77, subdivision 2, paragraph 70.16(p) new text begin , and Code of Federal Regulations, title 34, parts 99 and 300 new text end , to bill health plans for 70.17covered services, the school district must notify the legal representative (1) that the cost of 70.18the person's private health insurance premium may increase due to providing the covered 70.19service in the school setting, (2) that the school district may pay certain enrollee health 70.20plan costs, including but not limited to, co-payments, coinsurance, deductibles, premium 70.21increases or other enrollee cost-sharing amounts for health and related services required 70.22by an individual service plan, or individual family service plan, and (3) that the school's 70.23billing for each type of covered service may affect service limits and prior authorization 70.24thresholds. The informed consent may be revoked in writing at any time by the person 70.25authorizing the billing of the health plan. 70.26    Sec. 8. Minnesota Statutes 2008, section 125A.21, subdivision 7, is amended to read: 70.27    Subd. 7. District disclosure of information. A school district may disclose 70.28information contained in a student's individual education plan, consistent with section 70.2913.32, subdivision 3 , paragraph (a), new text begin and Code of Federal Regulations, title 34, part 99; new text end 70.30including records of the student's diagnosis and treatment, to a health plan company only 70.31with the signed and dated consent of the student's parent, or other legally authorized 70.32individual. The school district shall disclose only that information necessary for the health 70.33plan company to decide matters of coverage and payment. A health plan company may 71.1use the information only for making decisions regarding coverage and payment, and for 71.2any other use permitted by law. 71.3    Sec. 9. Minnesota Statutes 2008, section 125A.515, is amended by adding a 71.4subdivision to read: 71.5     new text begin Subd. 3a. new text end new text begin Students without a disability from other states. new text end new text begin A school district need new text end 71.6 new text begin not provide education services under this section to an out-of-state student without an new text end 71.7 new text begin individualized education program who lacks a tuition agreement or other agreement by the new text end 71.8 new text begin placing authority to pay for the services. new text end 71.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2010, for fiscal years 2011 new text end 71.10 new text begin and later. new text end 71.11    Sec. 10. Minnesota Statutes 2009 Supplement, section 125A.63, subdivision 2, is 71.12amended to read: 71.13    Subd. 2. Programs. new text begin The Department of Education, through new text end the resource centers 71.14must offer summer institutes or other training programs new text begin and other educational strategies new text end 71.15throughout the state for deaf or hard-of-hearing, blind or visually impaired, and multiply 71.16disabled pupils. The resource centers must also offer workshops for teachers, and 71.17leadership development for teachers. 71.18A program offered through the resource centers must promote and develop education 71.19programs offered by school districts or other organizations. The program must assist 71.20school districts or other organizations to develop innovative programs. 71.21    Sec. 11. Minnesota Statutes 2009 Supplement, section 125A.63, subdivision 4, is 71.22amended to read: 71.23    Subd. 4. Advisory committees. (a) The commissioner shall establish an 71.24advisory committee for each resource center. The advisory committees shall develop 71.25recommendations regarding the resource centers and submit an annual report to the 71.26commissioner on the form and in the manner prescribed by the commissioner. 71.27(b) The advisory committee for the Resource Center for the Deaf and Hard of 71.28Hearing shall meet periodically at least four times per year and submit an annual report 71.29to the commissioner, the education policy and finance committees of the legislature, 71.30and the Commission of Deaf, DeafBlind, and Hard of Hearing Minnesotans. The report 71.31must, at least: 71.32(1) identify and report the aggregate, data-based education outcomes for children 71.33with the primary disability classification of deaf and hard of hearing, consistent with 72.1the commissioner's child count reporting practices, the commissioner's state and local 72.2outcome data reporting system by district and region, and the school performance report 72.3cards under section 120B.36, subdivision 1 new text begin , and relevant IDEA Parts B and C mandated new text end 72.4 new text begin reporting data new text end ; and 72.5(2) describe the implementation of a data-based plan for improving the education 72.6outcomes of deaf and hard of hearing children that is premised on evidence-based best 72.7practices, and provide a cost estimate for ongoing implementation of the plan. new text begin ; and new text end 72.8 new text begin (3) include the recommendations for improving the developmental outcomes of new text end 72.9 new text begin children birth to age 3 and the data underlying those recommendations that the coordinator new text end 72.10 new text begin identifies under subdivision 5. new text end 72.11    Sec. 12. Minnesota Statutes 2009 Supplement, section 125A.63, subdivision 5, is 72.12amended to read: 72.13    Subd. 5. Statewide hearing loss early education intervention coordinator. (a) 72.14The coordinator shall: 72.15    (1) collaborate with the early hearing detection and intervention coordinator for the 72.16Department of Health, the director of the Department of Education Resource Center for 72.17Deaf and Hard-of-Hearing, and the Department of Health Early Hearing Detection and 72.18Intervention Advisory Council; 72.19    (2) coordinate and support Department of Education early hearing detection and 72.20intervention teams; 72.21    (3) leverage resources by serving as a liaison between interagency early intervention 72.22committees; part C coordinators from the Departments of Education, Health, and 72.23Human Services; Department of Education regional low-incidence facilitators; service 72.24coordinators from school districts; Minnesota children with special health needs in the 72.25Department of Health; public health nurses; child find; Department of Human Services 72.26Deaf and Hard-of-Hearing Services Division; and others as appropriate; 72.27    (4) identify, support, and promote culturally appropriate and evidence-based early 72.28intervention practices for infants with hearing loss, and provide training, outreach, and use 72.29of technology to increase consistency in statewide service provision; 72.30    (5) identify culturally appropriate specialized reliable and valid instruments to assess 72.31and track the progress of children with hearing loss and promote their use; 72.32    (6) ensure that early childhood providers, parents, and members of the individual 72.33family service and intervention plan are provided with child progress data resulting from 72.34specialized assessments; 73.1    (7) educate early childhood providers and teachers of the deaf and hard-of-hearing 73.2to use developmental data from specialized assessments to plan and adjust individual 73.3family service plans; and 73.4    (8) make recommendations that would improve educational outcomes to the early 73.5hearing detection and intervention committee, the commissioners of education and health, 73.6the Commission of Deaf, DeafBlind and Hard-of-Hearing Minnesotans, and the advisory 73.7council of the Minnesota Department of Education Resource Center for the Deaf and 73.8Hard-of-Hearing. 73.9    (b) The Department of Education must provide aggregate data regarding outcomes 73.10of deaf and hard-of-hearing children new text begin with hearing loss new text end who receive early intervention 73.11services within the state in accordance with the state performance plan. 73.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 73.13    Sec. 13. Minnesota Statutes 2008, section 125A.69, subdivision 1, is amended to read: 73.14    Subdivision 1. Two kinds new text begin Admissions new text end . There are two kinds of Admission to the 73.15Minnesota State Academies new text begin is described in this section new text end . 73.16(a) A pupil who is deaf, hard of hearing, or blind-deaf, may be admitted to the 73.17Academy for the Deaf. A pupil who is blind or visually impaired, blind-deaf, or multiply 73.18disabled may be admitted to the Academy for the Blind. For a pupil to be admitted, two 73.19decisions must be made under sections 125A.03 to 125A.24 and 125A.65. 73.20(1) It must be decided by the individual education planning team that education in 73.21regular or special education classes in the pupil's district of residence cannot be achieved 73.22satisfactorily because of the nature and severity of the deafness or blindness or visual 73.23impairment respectively. 73.24(2) It must be decided by the individual education planning team that the academy 73.25provides the most appropriate placement within the least restrictive alternative for the 73.26pupil. 73.27(b) A deaf or hard of hearing child or a visually impaired pupil may be admitted to 73.28get socialization skills or on a short-term basis for skills development. 73.29 new text begin (c) A parent of a child who resides in Minnesota and who meets the disability criteria new text end 73.30 new text begin for being deaf or hard-of-hearing, blind or visually impaired, or multiply disabled may new text end 73.31 new text begin apply to place the child in the Minnesota State Academies. Academy staff must review new text end 73.32 new text begin the application to determine whether the Minnesota State Academies is an appropriate new text end 73.33 new text begin placement for the child. If academy staff determine that the Minnesota State Academies new text end 73.34 new text begin is an appropriate placement, the staff must invite the individualized education program new text end 73.35 new text begin team at the child's resident school district to participate in a meeting to arrange a trial new text end 74.1 new text begin placement of between 60 and 90 calendar days at the Minnesota State Academies. If new text end 74.2 new text begin the child's parent consents to the trial placement, the Minnesota State Academies is the new text end 74.3 new text begin responsible serving school district and incur all due process obligations under law and the new text end 74.4 new text begin child's resident school district is responsible for any transportation included in the child's new text end 74.5 new text begin individualized education program during the trial placement. Before the trial placement new text end 74.6 new text begin ends, academy staff must convene an individualized education program team meeting to new text end 74.7 new text begin determine whether to continue the child's placement at the Minnesota State Academies or new text end 74.8 new text begin that another placement is appropriate. If the individualized education program team and new text end 74.9 new text begin the parent are unable to agree on the child's placement, the child's placement reverts to the new text end 74.10 new text begin placement in the child's individualized education program that immediately preceded the new text end 74.11 new text begin trial placement. If the parent and individualized education program team agree to continue new text end 74.12 new text begin the placement beyond the trial period, the transportation and due process responsibilities new text end 74.13 new text begin are the same as those described for the trial placement under this paragraph. new text end 74.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for the 2010-2011 school year and new text end 74.15 new text begin later. new text end 74.16    Sec. 14. Minnesota Statutes 2009 Supplement, section 256B.0625, subdivision 26, 74.17is amended to read: 74.18    Subd. 26. Special education services. (a) Medical assistance covers medical 74.19services identified in a recipient's individualized education plan and covered under the 74.20medical assistance state plan. Covered services include occupational therapy, physical 74.21therapy, speech-language therapy, clinical psychological services, nursing services, 74.22school psychological services, school social work services, personal care assistants 74.23serving as management aides, assistive technology devices, transportation services, 74.24health assessments, and other services covered under the medical assistance state plan. 74.25Mental health services eligible for medical assistance reimbursement must be provided or 74.26coordinated through a children's mental health collaborative where a collaborative exists if 74.27the child is included in the collaborative operational target population. The provision or 74.28coordination of services does not require that the individual education plan be developed 74.29by the collaborative. 74.30The services may be provided by a Minnesota school district that is enrolled as a 74.31medical assistance provider or its subcontractor, and only if the services meet all the 74.32requirements otherwise applicable if the service had been provided by a provider other 74.33than a school district, in the following areas: medical necessity, physician's orders, 74.34documentation, personnel qualifications, and prior authorization requirements. The 74.35nonfederal share of costs for services provided under this subdivision is the responsibility 75.1of the local school district as provided in section 125A.74. Services listed in a child's 75.2individual education plan are eligible for medical assistance reimbursement only if those 75.3services meet criteria for federal financial participation under the Medicaid program. 75.4(b) Approval of health-related services for inclusion in the individual education plan 75.5does not require prior authorization for purposes of reimbursement under this chapter. 75.6The commissioner may require physician review and approval of the plan not more than 75.7once annually or upon any modification of the individual education plan that reflects a 75.8change in health-related services. 75.9(c) Services of a speech-language pathologist provided under this section are covered 75.10notwithstanding Minnesota Rules, part 9505.0390, subpart 1, item L, if the person: 75.11(1) holds a masters degree in speech-language pathology; 75.12(2) is licensed by the Minnesota Board of Teaching as an educational 75.13speech-language pathologist; and 75.14(3) either has a certificate of clinical competence from the American Speech and 75.15Hearing Association, has completed the equivalent educational requirements and work 75.16experience necessary for the certificate or has completed the academic program and is 75.17acquiring supervised work experience to qualify for the certificate. 75.18(d) Medical assistance coverage for medically necessary services provided under 75.19other subdivisions in this section may not be denied solely on the basis that the same or 75.20similar services are covered under this subdivision. 75.21(e) The commissioner shall develop and implement package rates, bundled rates, or 75.22per diem rates for special education services under which separately covered services are 75.23grouped together and billed as a unit in order to reduce administrative complexity. 75.24(f) The commissioner shall develop a cost-based payment structure for payment of 75.25these services. new text begin Only costs reported through designated Department of Education data new text end 75.26 new text begin systems in distinct service categories may be included in the cost-based payment structure. new text end 75.27The commissioner shall reimburse claims submitted based on an interim rate, and shall 75.28settle at a final rate once the department has determined it. The commissioner shall 75.29notify the school district of the final rate. The school district has 60 days to appeal the 75.30final rate. To appeal the final rate, the school district shall file a written appeal request 75.31to the commissioner within 60 days of the date the final rate determination was mailed. 75.32The appeal request shall specify (1) the disputed items and (2) the name and address of 75.33the person to contact regarding the appeal. 75.34(g) Effective July 1, 2000, medical assistance services provided under an individual 75.35education plan or an individual family service plan by local school districts shall not count 75.36against medical assistance authorization thresholds for that child. 76.1(h) Nursing services as defined in section 148.171, subdivision 15, and provided 76.2as an individual education plan health-related service, are eligible for medical assistance 76.3payment if they are otherwise a covered service under the medical assistance program. 76.4Medical assistance covers the administration of prescription medications by a licensed 76.5nurse who is employed by or under contract with a school district when the administration 76.6of medications is identified in the child's individualized education plan. The simple 76.7administration of medications alone is not covered under medical assistance when 76.8administered by a provider other than a school district or when it is not identified in the 76.9child's individualized education plan. 76.10    Sec. 15. Laws 2009, chapter 79, article 5, section 60, is amended to read: 76.11    Sec. 60. Minnesota Statutes 2008, section 256L.05, is amended by adding a 76.12subdivision to read: 76.13    Subd. 1c. Open enrollment and streamlined application and enrollment 76.14process. (a) The commissioner and local agencies working in partnership must develop a 76.15streamlined and efficient application and enrollment process for medical assistance and 76.16MinnesotaCare enrollees that meets the criteria specified in this subdivision. 76.17(b) The commissioners of human services and education shall provide 76.18recommendations to the legislature by January 15, 2010, on the creation of an open 76.19enrollment process for medical assistance and MinnesotaCare that is coordinated with 76.20the public education system. The recommendations must: 76.21(1) be developed in consultation with medical assistance and MinnesotaCare 76.22enrollees and representatives from organizations that advocate on behalf of children and 76.23families, low-income persons and minority populations, counties, school administrators 76.24and nurses, health plans, and health care providers; 76.25(2) be based on enrollment and renewal procedures best practices, including express 76.26lane eligibility as required under subdivision 1d; 76.27(3) simplify the enrollment and renewal processes wherever possible; and 76.28(4) establish a process: 76.29(i) to disseminate information on medical assistance and MinnesotaCare to all 76.30children in the public education system, including prekindergarten programs; and 76.31(ii) for the commissioner of human services to enroll children and other household 76.32members who are eligible. 76.33The commissioner of human services in coordination with the commissioner of 76.34education shall implement an open enrollment process by August 1, 2010, to be effective 76.35beginning with the 2010-2011 school year. 77.1(c) The commissioner and local agencies shall develop an online application process 77.2for medical assistance and MinnesotaCare. 77.3(d) The commissioner shall develop an application that is easily understandable 77.4and does not exceed four pages in length. 77.5(e) The commissioner of human services shall present to the legislature, by January 77.615, 2010, an implementation plan for the open enrollment period and online application 77.7process. 77.8 new text begin (f) To ensure parity between all providers of medical services in the ability to seek new text end 77.9 new text begin reimbursement from MinnesotaCare or medical assistance, the commissioner of human new text end 77.10 new text begin services, in consultation with the commissioner of education, shall include on new or new text end 77.11 new text begin revised enrollment forms consent authorization language for all providers of medical new text end 77.12 new text begin services to the parent's child or children, including schools, by incorporating language on new text end 77.13 new text begin the enrollment form that is consistent with federal data practices laws requiring consent new text end 77.14 new text begin before a school may release information from individual educational records. The consent new text end 77.15 new text begin language shall include a statement that the medical services providers may share with the new text end 77.16 new text begin commissioner of human services medical or other information in the possession of the new text end 77.17 new text begin provider that is necessary for the provider to be reimbursed by MinnesotaCare or medical new text end 77.18 new text begin assistance. The consent language also shall state that information may be shared from new text end 77.19 new text begin a child's individual educational records and that the parent may revoke the consent for new text end 77.20 new text begin schools to share information from educational records at any time. The commissioner new text end 77.21 new text begin shall include substantially similar consent authorization language on each of its other new text end 77.22 new text begin enrollment forms as they are scheduled for review, revision, or replacement. new text end 77.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2010, or upon federal new text end 77.24 new text begin approval, which must be requested by the commissioner, whichever is later. new text end 77.25    Sec. 16. new text begin SPECIAL EDUCATION REPORT. new text end 77.26 new text begin As the agency charged with administering and enforcing federal and state special new text end 77.27 new text begin education laws and making special education aid payments, the Department of Education new text end 77.28 new text begin must identify and report by February 15, 2011, to the committees of the house of new text end 77.29 new text begin representatives and senate with primary jurisdiction over kindergarten through grade new text end 77.30 new text begin 12 education the specific circumstances under which a school district or other entity, new text end 77.31 new text begin consistent with federal and state law, must provide special education and related services new text end 77.32 new text begin to a child with a disability and thereby receives payment for providing the special new text end 77.33 new text begin education and related services. new text end 77.34 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 78.1    Sec. 17. new text begin THIRD-PARTY BILLING. new text end 78.2 new text begin To allow the cost effective billing of medical assistance for covered services that new text end 78.3 new text begin are not reimbursed by other legally liable third parties, the commissioner of human new text end 78.4 new text begin services must: new text end 78.5 new text begin (1) summarize and document school district efforts to secure reimbursement from new text end 78.6 new text begin legally liable third parties; and new text end 78.7 new text begin (2) request permission from the Centers for Medicare and Medicaid Services to new text end 78.8 new text begin allow school districts to bill Medicaid alone, without first billing private payers, when: new text end 78.9 new text begin (i) a child has both public and private coverage; and new text end 78.10 new text begin (ii) documentation demonstrates that the private payer involved does not reimburse new text end 78.11 new text begin for individualized education program health-related services. new text end 78.12    Sec. 18. new text begin REVISOR'S INSTRUCTION. new text end 78.13 new text begin The revisor of statutes shall substitute the term "individualized education program" new text end 78.14 new text begin or similar terms for "individual education plan" or similar terms wherever they appear new text end 78.15 new text begin in Minnesota Statutes and Minnesota Rules referring to the requirements relating to new text end 78.16 new text begin the federal Individuals with Disabilities Education Act. The revisor shall also make new text end 78.17 new text begin grammatical changes related to the changes in terms. new text end 78.18    Sec. 19. new text begin REPEALER. new text end 78.19 new text begin Minnesota Statutes 2008, section 125A.54, new text end new text begin is repealed. new text end 78.20ARTICLE 4 78.21FACILITIES AND TECHNOLOGY 78.22    Section 1. Minnesota Statutes 2008, section 123B.57, as amended by Laws 2009 78.23chapter 96, article 4, section 2, is amended to read: 78.24123B.57 CAPITAL EXPENDITURE; HEALTH AND SAFETY. 78.25    Subdivision 1. Health and safety program new text begin revenue application new text end . (a) To receive 78.26health and safety revenue for any fiscal year a district must submit to the commissioner 78.27an new text begin a capital expenditure health and safety revenue new text end application for aid and levy by the 78.28date determined by the commissioner. The application may be for hazardous substance 78.29removal, fire and life safety code repairs, labor and industry regulated facility and 78.30equipment violations, and health, safety, and environmental management, including 78.31indoor air quality management. The application must include a health and safety program new text begin new text end 78.32 new text begin budget new text end adopted new text begin and confirmed new text end by the school district board new text begin as being consistent with the new text end 79.1 new text begin district's health and safety policy under subdivision 2 new text end . The program new text begin budget new text end must include 79.2the estimated cost, per building, of the program new text begin per Uniform Financial Accounting and new text end 79.3 new text begin Reporting Standards (UFARS) finance code, new text end by fiscal year. Upon approval through the 79.4adoption of a resolution by each of an intermediate district's member school district 79.5boards and the approval of the Department of Education, a school district may include 79.6its proportionate share of the costs of health and safety projects for an intermediate 79.7district in its application. 79.8(b) Health and safety projects with an estimated cost of $500,000 or more per 79.9site are not eligible for health and safety revenue. Health and safety projects with an 79.10estimated cost of $500,000 or more per site that meet all other requirements for health and 79.11safety funding, are eligible for alternative facilities bonding and levy revenue according 79.12to section 123B.59. A school board shall not separate portions of a single project into 79.13components to qualify for health and safety revenue, and shall not combine unrelated 79.14projects into a single project to qualify for alternative facilities bonding and levy revenue. 79.15 new text begin (c) The commissioner of education shall not make eligibility for health and safety new text end 79.16 new text begin revenue contingent on a district's compliance status, level of program development, or new text end 79.17 new text begin training. The commissioner shall not mandate additional performance criteria such as new text end 79.18 new text begin training, certifications, or compliance evaluations as a prerequisite for levy approval. new text end 79.19    Subd. 2. Contents of program new text begin Health and safety policy new text end . new text begin To qualify for health new text end 79.20 new text begin and safety revenue, new text end a district new text begin school board new text end must adopt a health and safety program new text begin policy new text end . 79.21The program new text begin policy new text end must include plans, where applicable, for hazardous substance 79.22removal, fire and life safety code repairs, regulated facility and equipment violations, 79.23and new text begin provisions for implementing a health and safety program that complies with new text end health, 79.24safety, and environmental management, new text begin regulations and best practices new text end including indoor 79.25air quality management. 79.26(a) A hazardous substance plan must contain provisions for the removal or 79.27encapsulation of asbestos from school buildings or property, asbestos-related repairs, 79.28cleanup and disposal of polychlorinated biphenyls found in school buildings or property, 79.29and cleanup, removal, disposal, and repairs related to storing heating fuel or transportation 79.30fuels such as alcohol, gasoline, fuel, oil, and special fuel, as defined in section . 79.31If a district has already developed a plan for the removal or encapsulation of asbestos as 79.32required by the federal Asbestos Hazard Emergency Response Act of 1986, the district 79.33may use a summary of that plan, which includes a description and schedule of response 79.34actions, for purposes of this section. The plan must also contain provisions to make 79.35modifications to existing facilities and equipment necessary to limit personal exposure 79.36to hazardous substances, as regulated by the federal Occupational Safety and Health 80.1Administration under Code of Federal Regulations, title 29, part 1910, subpart Z; or is 80.2determined by the commissioner to present a significant risk to district staff or student 80.3health and safety as a result of foreseeable use, handling, accidental spill, exposure, or 80.4contamination. 80.5(b) A fire and life safety plan must contain a description of the current fire and life 80.6safety code violations, a plan for the removal or repair of the fire and life safety hazard, 80.7and a description of safety preparation and awareness procedures to be followed until the 80.8hazard is fully corrected. 80.9(c) A facilities and equipment violation plan must contain provisions to correct 80.10health and safety hazards as provided in Department of Labor and Industry standards 80.11pursuant to section . 80.12(d) A health, safety, and environmental management plan must contain a description 80.13of training, record keeping, hazard assessment, and program management as defined 80.14in section . 80.15(e) A plan to test for and mitigate radon produced hazards. 80.16(f) A plan to monitor and improve indoor air quality. 80.17    Subd. 3. Health and safety revenue. A district's health and safety revenue 80.18for a fiscal year equals the district's alternative facilities levy under section 123B.59, 80.19subdivision 5, paragraph (b), plus the greater of zero or: 80.20    (1) the sum of (a) the total approved cost of the district's hazardous substance 80.21plan for fiscal years 1985 through 1989, plus (b) the total approved cost of the district's 80.22health and safety program for fiscal year 1990 through the fiscal year to which the levy 80.23is attributable, excluding expenditures funded with bonds issued under section 123B.59 80.24or 123B.62, or chapter 475; certificates of indebtedness or capital notes under section 80.25123B.61 ; levies under section 123B.58, 123B.59, 123B.63, or 126C.40, subdivision 1 or 80.266; and other federal, state, or local revenues, minus 80.27    (2) the sum of (a) the district's total hazardous substance aid and levy for fiscal years 80.281985 through 1989 under sections 124.245 and 275.125, subdivision 11c, plus (b) the 80.29district's health and safety revenue under this subdivision, for years before the fiscal year 80.30to which the levy is attributable. 80.31    Subd. 4. Health and safety levy. To receive health and safety revenue, a district 80.32may levy an amount equal to the district's health and safety revenue as defined in 80.33subdivision 3 multiplied by the lesser of one, or the ratio of the quotient derived by 80.34dividing the adjusted net tax capacity of the district for the year preceding the year the 80.35levy is certified by the adjusted marginal cost pupil units in the district for the school year 80.36to which the levy is attributable, to $2,935. 81.1    Subd. 5. Health and safety aid. A district's health and safety aid is the difference 81.2between its health and safety revenue and its health and safety levy. If a district does not 81.3levy the entire amount permitted, health and safety aid must be reduced in proportion to 81.4the actual amount levied. Health and safety aid may not be reduced as a result of reducing 81.5a district's health and safety levy according to section 123B.79. 81.6    Subd. 6. Uses of health and safety revenue. (a) Health and safety revenue may 81.7be used only for approved expenditures necessary to correct fire and life safety hazards, 81.8or for the new text begin ; design, purchase, installation, maintenance, and inspection of fire protection new text end 81.9 new text begin and alarm equipment; purchase or construction of appropriate facilities for the storage of new text end 81.10 new text begin combustible and flammable materials; inventories and facility modifications not related new text end 81.11 new text begin to a remodeling project to comply with lab safety requirements under section 121A.31; new text end 81.12 new text begin inspection, testing, repair, new text end removal or encapsulation new text begin , and disposal new text end of asbestos from school 81.13buildings or property owned or being acquired by the district, asbestos-related repairs, new text begin new text end 81.14 new text begin asbestos-containing building materials; new text end cleanup and disposal of polychlorinated biphenyls 81.15found in school buildings or property owned or being acquired by the district, or the new text begin ; new text end 81.16 new text begin cleanup and disposal of hazardous and infectious wastes; new text end cleanup, removal, disposal, and 81.17repairs related to storing heating fuel or transportation fuels such as alcohol, gasoline, fuel 81.18oil, and special fuel, as defined in section 296A.01, Minnesota new text begin ; correction of new text end occupational 81.19safety and health administration regulated facility and equipment hazards, new text begin ; new text end indoor air 81.20quality new text begin inspections, investigations, and testing; new text end mold abatement, new text begin ; new text end upgrades or replacement 81.21of mechanical ventilation systems to meet American Society of Heating, Refrigerating 81.22and Air Conditioning Engineers standards and State Mechanical Code, new text begin ; design, materials, new text end 81.23 new text begin and installation of local exhaust ventilation systems, including required make up air for new text end 81.24 new text begin controlling regulated hazardous substances; correction of new text end Department of Health Food 81.25Code and new text begin violations; correction of new text end swimming pool hazards excluding depth correction, new text begin ; new text end 81.26 new text begin playground safety inspections and the installation of impact surfacing materials; bleacher new text end 81.27 new text begin repair or rebuilding to comply with the order of a building code inspector under section new text end 81.28 new text begin 326B.112; testing and mitigation of elevated radon hazards; lead in water, paint, soil, new text end 81.29 new text begin and toys testing; copper in water testing; cleanup after major weather-related disasters new text end 81.30 new text begin or flooding; reduction of excessive organic and inorganic levels in wells and well new text end 81.31 new text begin capping of abandoned wells; installation and testing of boiler backflow valves to prevent new text end 81.32 new text begin contamination of potable water; vaccinations, titers, and preventative supplies for new text end 81.33 new text begin bloodborne pathogen compliance; costs to comply with the Janet B. Johnson Parents' new text end 81.34 new text begin Right To Know Act; new text end and health, safety, and environmental management new text begin costs associated new text end 81.35 new text begin with implementing the district's health and safety program including costs to establish new text end 81.36 new text begin and operate safety committees, in school buildings or property owned or being acquired new text end 82.1 new text begin by the district new text end . Testing and calibration activities are permitted for existing mechanical 82.2ventilation systems at intervals no less than every five years. Health and safety revenue 82.3must not be used to finance a lease purchase agreement, installment purchase agreement, 82.4or other deferred payments agreement. Health and safety revenue must not be used for 82.5the construction of new facilities or the purchase of portable classrooms, for interest or 82.6other financing expenses, or for energy efficiency projects under section . The 82.7revenue may not be used for a building or property or part of a building or property used 82.8for postsecondary instruction or administration or for a purpose unrelated to elementary 82.9and secondary education. 82.10     new text begin Subd. 6a. new text end new text begin Restrictions on health and safety revenue. new text end (b) Notwithstanding 82.11paragraph (a) new text begin subdivision 6 new text end , health and safety revenue must not be used new text begin to finance a new text end 82.12 new text begin lease purchase agreement, installment purchase agreement, or other deferred payments new text end 82.13 new text begin agreement, for the construction of new facilities, remodeling of existing facilities, or new text end 82.14 new text begin the purchase of portable classrooms, for interest or other financing expenses, or for new text end 82.15 new text begin energy efficiency projects under section 123B.65, for a building or property or part of a new text end 82.16 new text begin building or property used for postsecondary instruction or administration or for a purpose new text end 82.17 new text begin unrelated to elementary and secondary education, new text end for replacement of building materials 82.18or facilities including roof, walls, windows, internal fixtures and flooring, nonhealth and 82.19safety costs associated with demolition of facilities, structural repair or replacement of 82.20facilities due to unsafe conditions, violence prevention and facility security, ergonomics, 82.21 new text begin or for new text end building and heating, ventilating and air conditioning supplies, maintenance, and 82.22cleaning activities. All assessments, investigations, inventories, and support equipment 82.23not leading to the engineering or construction of a project shall be included in the health, 82.24safety, and environmental management costs in subdivision 8, paragraph (a). 82.25     new text begin Subd. 6b. new text end new text begin Health and safety projects. new text end new text begin (a) Health and safety revenue applications new text end 82.26 new text begin defined in subdivision 1 must be accompanied by a description of each project for which new text end 82.27 new text begin funding is being requested. Project descriptions must provide enough detail for an auditor new text end 82.28 new text begin to determine if the work qualifies for revenue. For projects other than fire and life new text end 82.29 new text begin safety projects, playground projects, and health, safety, and environmental management new text end 82.30 new text begin activities, a project description does not need to include itemized details such as material new text end 82.31 new text begin types, room locations, square feet, names, or license numbers. The commissioner shall new text end 82.32 new text begin approve only projects that comply with subdivisions 6 and 8, as defined by the Department new text end 82.33 new text begin of Education. new text end 82.34 new text begin (b) Districts may request funding for allowable projects based on self-assessments, new text end 82.35 new text begin safety committee recommendations, insurance inspections, management assistance new text end 82.36 new text begin reports, fire marshal orders, or other mandates. Notwithstanding subdivision 1, paragraph new text end 83.1 new text begin (b), and subdivision 8, paragraph (b), for projects under $500,000, individual project new text end 83.2 new text begin size for projects authorized by this subdivision is not limited and may include related new text end 83.3 new text begin work in multiple facilities. Health and safety management costs from subdivision 8 may new text end 83.4 new text begin be reported as a single project. new text end 83.5 new text begin (c) All costs directly related to a project shall be reported in the appropriate Uniform new text end 83.6 new text begin Financial Accounting and Reporting Standards (UFARS) finance code. new text end 83.7 new text begin (d) For fire and life safety egress and all other projects exceeding $20,000, cited new text end 83.8 new text begin under Minnesota Fire Code, a fire marshal plan review is required. new text end 83.9 new text begin (e) Districts shall update project estimates with actual expenditures for each new text end 83.10 new text begin fiscal year. If a project's final cost is significantly higher than originally approved, the new text end 83.11 new text begin commissioner may request additional supporting information. new text end 83.12     new text begin Subd. 6c. new text end new text begin Appeals process. new text end new text begin In the event a district is denied funding approval for new text end 83.13 new text begin a project the district believes complies with subdivisions 6 and 8, and is not otherwise new text end 83.14 new text begin excluded, a district may appeal the decision. All such requests must be in writing. The new text end 83.15 new text begin commissioner shall respond in writing. A written request must contain the following: new text end 83.16 new text begin project number; description and amount; reason for denial; unresolved questions for new text end 83.17 new text begin consideration; reasons for reconsideration; and a specific statement of what action the new text end 83.18 new text begin district is requesting. new text end 83.19    Subd. 7. Proration. In the event that the health and safety aid available for any year 83.20is prorated, a district having its aid prorated may levy an additional amount equal to the 83.21amount not paid by the state due to proration. 83.22    Subd. 8. Health, safety, and environmental management cost. (a) new text begin "Health, safety, new text end 83.23 new text begin and environmental management" is defined in section 123B.56. new text end 83.24 new text begin (b) new text end A district's cost for health, safety, and environmental management is limited to 83.25the lesser of: 83.26(1) actual cost to implement their plan; or 83.27(2) an amount determined by the commissioner, based on enrollment, building 83.28age, and size. 83.29(b) new text begin (c) new text end The department may contract with regional service organizations, private 83.30contractors, Minnesota Safety Council, or state agencies to provide management 83.31assistance to school districts for health and safety capital projects. Management assistance 83.32is the development of written programs for the identification, recognition and control of 83.33hazards, and prioritization and scheduling of district health and safety capital projects. 83.34The department new text begin commissioner new text end shall not new text begin mandate management assistance or new text end exclude 83.35private contractors from the opportunity to provide any health and safety services to 83.36school districts. 84.1(c) Notwithstanding paragraph (b), the department may approve revenue, up to 84.2the limit defined in paragraph (a) for districts having an approved health, safety, and 84.3environmental management plan that uses district staff to accomplish coordination and 84.4provided services. 84.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2010. new text end 84.6    Sec. 2. new text begin [126C.75] FIBER OPTIC INFRASTRUCTURE GRANT PROGRAM. new text end 84.7     new text begin Subdivision 1. new text end new text begin Creation of accounts. new text end new text begin Two public school fiber optic infrastructure new text end 84.8 new text begin accounts are created, one in the general fund and one in the bond proceeds fund. Money new text end 84.9 new text begin in these accounts may only be used for capital costs of fiber optic infrastructure for new text end 84.10 new text begin eligible public school projects. new text end 84.11     new text begin Subd. 2. new text end new text begin Program purpose. new text end new text begin The fiber optic infrastructure grant program is new text end 84.12 new text begin established to provide the capital investment needed to bridge the gap between the federal new text end 84.13 new text begin Schools and Libraries Program of the Universal Service Fund, commonly known as new text end 84.14 new text begin "E-Rate," and the total cost of fiber optic infrastructure that will better public school new text end 84.15 new text begin buildings to support 21st century learning capacity at each district school. new text end 84.16     new text begin Subd. 3. new text end new text begin General eligibility; state general obligation bond funds. new text end new text begin Article XI, new text end 84.17 new text begin section 5, clause (a), of the Minnesota Constitution requires that state general obligation new text end 84.18 new text begin bonds be issued to finance only the acquisition or betterment of public land, buildings, and new text end 84.19 new text begin other public improvements of a capital nature. The legislature has determined that many new text end 84.20 new text begin fiber optic infrastructure projects will constitute betterments and capital improvements new text end 84.21 new text begin within the meaning of the Minnesota Constitution and capital expenditures under generally new text end 84.22 new text begin accepted accounting principles, and will be financed more efficiently and economically new text end 84.23 new text begin under this section than by direct appropriations for specific projects. new text end 84.24     new text begin Subd. 4. new text end new text begin Definitions. new text end new text begin For purposes of this section: new text end 84.25 new text begin (1) "school district" means an independent, common, special, or intermediate school new text end 84.26 new text begin district or a charter school. new text end 84.27 new text begin (2) "fiber optic infrastructure" means the land, buildings, fiber optic connection new text end 84.28 new text begin cable, and end point hardware, including routers and switches. It does not include new text end 84.29 new text begin computers, telephones, or cameras. new text end 84.30     new text begin Subd. 5. new text end new text begin Grant program established. new text end new text begin The commissioner shall make grants to new text end 84.31 new text begin school districts for fiber optic infrastructure projects. new text end 84.32     new text begin Subd. 6. new text end new text begin Eligible costs for grants. new text end new text begin (a) "Eligible cost" for use of state general new text end 84.33 new text begin obligation bond fund money means the acquisition of land or permanent easements; new text end 84.34 new text begin preparation of land on which the fiber optic infrastructure will be located, including new text end 84.35 new text begin demolition of structures and remediation of any hazardous conditions on the land; and new text end 85.1 new text begin predesign, design, acquisition, and installation of publicly owned fiber optic infrastructure new text end 85.2 new text begin in this state with a useful life of at least ten years that supports public school district new text end 85.3 new text begin facility operation, administration, and instruction; the unpaid principal on debt issued by new text end 85.4 new text begin the school district for a fiber optic infrastructure project, or the amount necessary to pay in new text end 85.5 new text begin a lump sum all lease payments due if payment results in the school district owning the fiber new text end 85.6 new text begin optic infrastructure. All uses under this paragraph must be for publicly owned property. new text end 85.7 new text begin (b) "Eligible cost" for use of any other source of money will be determined by new text end 85.8 new text begin limitations imposed on that source, but may include the costs of leases and reimbursement new text end 85.9 new text begin of the costs of purchase and installation of fiber optic infrastructure. new text end 85.10     new text begin Subd. 7. new text end new text begin Application. new text end new text begin The commissioner must develop forms and procedures for new text end 85.11 new text begin soliciting and reviewing applications for grants under this section. At a minimum, a school new text end 85.12 new text begin district must include the following information in its application: new text end 85.13 new text begin (1) a resolution adopted by its school board certifying that the money required to be new text end 85.14 new text begin supplied by the school district to complete the project is available and committed; new text end 85.15 new text begin (2) a detailed and specific description of the project and an estimate, along with new text end 85.16 new text begin necessary supporting evidence, of the total costs for the project; new text end 85.17 new text begin (3) an assessment of the need for and benefits of the project; new text end 85.18 new text begin (4) a timeline indicating the major milestones of the project and their anticipated new text end 85.19 new text begin completion dates; and new text end 85.20 new text begin (5) any additional information or material the commissioner prescribes. new text end 85.21     new text begin Subd. 8. new text end new text begin Criteria for grants. new text end new text begin The commissioner must develop the criteria that will new text end 85.22 new text begin be used to award grants if grant applications exceed available resources. new text end 85.23     new text begin Subd. 9. new text end new text begin Cancellation of grant. new text end new text begin If, five years after execution of a grant agreement, new text end 85.24 new text begin the commissioner determines that the grantee has not proceeded in a timely manner with new text end 85.25 new text begin implementation of the project funded, the commissioner must cancel the grant and the new text end 85.26 new text begin grantee must repay to the commissioner all grant money paid to the grantee. Section new text end 85.27 new text begin 16A.642 applies to any appropriations made to the commissioner under this section that new text end 85.28 new text begin have not been awarded to grantees. new text end 85.29     new text begin Subd. 10. new text end new text begin Report. new text end new text begin By January 15 of each year, the commissioner must submit to new text end 85.30 new text begin the commissioner of management and budget and the chairs of the legislative committees new text end 85.31 new text begin or divisions with jurisdiction over education policy, education finance, and capital new text end 85.32 new text begin investment, a list of the projects that have been funded with money under this program new text end 85.33 new text begin during the preceding calendar year, as well as a list of those priority projects for which state new text end 85.34 new text begin bond proceeds fund appropriations will be sought during that year's legislative session. new text end 85.35 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 86.1    Sec. 3. new text begin HEALTH AND SAFETY POLICY. new text end 86.2 new text begin Notwithstanding Minnesota Statutes, section 123B.57, subdivision 2, a school board new text end 86.3 new text begin that has not yet adopted a health and safety policy by September 30, 2010, may submit an new text end 86.4 new text begin application for health and safety revenue for taxes payable in 2011 in the form and manner new text end 86.5 new text begin specified by the commissioner of education. new text end 86.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 86.7ARTICLE 5 86.8ACCOUNTING 86.9    Section 1. Minnesota Statutes 2009 Supplement, section 16A.152, subdivision 2, as 86.10amended by Laws 2010, chapter 215, article 11, section 15, is amended to read: 86.11    Subd. 2. Additional revenues; priority. (a) If on the basis of a forecast of general 86.12fund revenues and expenditures, the commissioner of management and budget determines 86.13that there will be a positive unrestricted budgetary general fund balance at the close of 86.14the biennium, the commissioner of management and budget must allocate money to the 86.15following accounts and purposes in priority order: 86.16    (1) the cash flow account established in subdivision 1 until that account reaches 86.17$350,000,000; 86.18    (2) the budget reserve account established in subdivision 1a until that account 86.19reaches $653,000,000; 86.20    (3) the amount necessary to increase the aid payment schedule for school district 86.21aids and credits payments in section 127A.45 to not more than 90 percent rounded to the 86.22nearest tenth of a percent without exceeding the amount available and with any remaining 86.23funds deposited in the budget reserve; 86.24    (4) the amount necessary to restore all or a portion of the net aid reductions under 86.25section 127A.441 and to reduce the property tax revenue recognition shift under section 86.26123B.75, subdivision 5 , paragraph (b), and Laws 2003, First Special Session chapter 9, 86.27article 5, section 34, as amended by Laws 2003, First Special Session chapter 23, section 86.2820, by the same amount; 86.29(5) to the state airports fund, the amount necessary to restore the amount transferred 86.30from the state airports fund under Laws 2008, chapter 363, article 11, section 3, 86.31subdivision 5; and 86.32(6) to the fire safety account in the special revenue fund, the amount necessary to 86.33restore transfers from the account to the general fund made in Laws 2010. 87.1    (b) The amounts necessary to meet the requirements of this section are appropriated 87.2from the general fund within two weeks after the forecast is released or, in the case of 87.3transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations 87.4schedules otherwise established in statute. 87.5    (c) The commissioner of management and budget shall certify the total dollar 87.6amount of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of 87.7education. The commissioner of education shall increase the aid payment percentage and 87.8reduce the property tax shift percentage by these amounts and apply those reductions to 87.9the current fiscal year and thereafter. 87.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 87.11    Sec. 2. Minnesota Statutes 2008, section 123B.12, is amended to read: 87.12123B.12 INSUFFICIENT FUNDS TO PAY ORDERS. 87.13(a) In the event that a district or a cooperative unit defined in section 123A.24, 87.14subdivision 2 , has insufficient funds to pay its usual lawful current obligations, subject to 87.15section 471.69, the board may enter into agreements with banks or any person to take its 87.16orders. Any order drawn, after having been presented to the treasurer for payment and not 87.17paid for want of funds shall be endorsed by the treasurer by putting on the back thereof 87.18the words "not paid for want of funds," giving the date of endorsement and signed by the 87.19treasurer. A record of such presentment, nonpayment and endorsement shall be made by 87.20the treasurer. The treasurer shall serve a written notice upon the payee or the payee's 87.21assignee, personally, or by mail, when the treasurer is prepared to pay such orders. The 87.22notice may be directed to the payee or the payee's assignee at the address given in writing 87.23by such payee or assignee to such treasurer, at any time prior to the service of such notice. 87.24No order shall draw any interest if such address is not given when the same is unknown to 87.25the treasurer, and no order shall draw any interest after the service of such notice. 87.26(b) A district may enter, subject to section 471.69, into a new text begin an unsecured new text end line of credit 87.27agreement with a financial institution. The amount of credit available must not exceed 95 new text begin new text end 87.28 new text begin 380 new text end percent of average expenditure per month of operating expenditures in the previous 87.29fiscal year. Any amount advanced must be repaid no later than 45 new text begin 120 new text end days after the 87.30day of advancement. 87.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 87.32    Sec. 3. Minnesota Statutes 2008, section 123B.75, is amended by adding a subdivision 87.33to read: 88.1     new text begin Subd. 1a. new text end new text begin Definition. new text end new text begin For the purpose of this section, "school district tax settlement new text end 88.2 new text begin revenue" means the current, delinquent, and manufactured home property tax receipts new text end 88.3 new text begin collected by the county and distributed to the school district. new text end 88.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 88.5 new text begin and applies to fiscal years 2010 and later. new text end 88.6    Sec. 4. Minnesota Statutes 2008, section 123B.75, subdivision 5, is amended to read: 88.7    Subd. 5. Levy recognition. (a) "School district tax settlement revenue" means the 88.8current, delinquent, and manufactured home property tax receipts collected by the county 88.9and distributed to the school district. 88.10(b) For fiscal year 2004 and later years new text begin 2009 and 2010 new text end , in June of each year, the 88.11school district must recognize as revenue, in the fund for which the levy was made, the 88.12lesser of: 88.13(1) the sum of May, June, and July school district tax settlement revenue received in 88.14that calendar year, plus general education aid according to section 126C.13, subdivision 88.154 , received in July and August of that calendar year; or 88.16(2) the sum of: 88.17(i) 31 percent of the referendum levy certified according to section 126C.17, in 88.18calendar year 2000; and 88.19(ii) the entire amount of the levy certified in the prior calendar year according to 88.20section 124D.86, subdivision 4, for school districts receiving revenue under sections 88.21124D.86, subdivision 3 , clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, new text begin paragraph new text end 88.22 new text begin (a), new text end and 3 , paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48, 88.23subdivision 6 new text begin ; plus new text end 88.24 new text begin (iii) zero percent of the amount of the levy certified in the prior calendar year for the new text end 88.25 new text begin school district's general and community service funds, plus or minus auditor's adjustments, new text end 88.26 new text begin not including the levy portions that are assumed by the state, that remains after subtracting new text end 88.27 new text begin the referendum levy certified according to section 126C.17 and the amount recognized new text end 88.28 new text begin according to item (ii). new text end 88.29 new text begin (b) For fiscal year 2011 and later years, in June of each year, the school district must new text end 88.30 new text begin recognize as revenue, in the fund for which the levy was made, the lesser of: new text end 88.31 new text begin (1) the sum of May, June, and July school district tax settlement revenue received in new text end 88.32 new text begin that calendar year, plus general education aid according to section 126C.13, subdivision new text end 88.33 new text begin 4, received in July and August of that calendar year; or new text end 88.34 new text begin (2) the sum of: new text end 89.1 new text begin (i) the greater of 47.8 percent of the referendum levy certified according to section new text end 89.2 new text begin 126C.17, in the prior calendar year or 31 percent of the referendum levy certified new text end 89.3 new text begin according to section 126C.17, in calendar year 2000; plus new text end 89.4 new text begin (ii) the entire amount of the levy certified in the prior calendar year according to new text end 89.5 new text begin section 124D.86, subdivision 4, for school districts receiving revenue under sections new text end 89.6 new text begin 124D.86, subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, and 3, new text end 89.7 new text begin paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48, subdivision new text end 89.8 new text begin 6; plus new text end 89.9 new text begin (iii) 47.8 percent of the amount of the levy certified in the prior calendar year for the new text end 89.10 new text begin school district's general and community service funds, plus or minus auditor's adjustments, new text end 89.11 new text begin not including the levy portions that are assumed by the state, that remains after subtracting new text end 89.12 new text begin the referendum levy certified according to section 126C.17 and the amount recognized new text end 89.13 new text begin according to clause (ii) new text end . 89.14    Sec. 5. Minnesota Statutes 2008, section 126C.54, is amended to read: 89.15126C.54 REPAYMENT; MATURITY DATE OF CERTIFICATES; INTEREST. 89.16 new text begin (a) new text end The proceeds of the current tax levies and future state aid receipts or other school 89.17funds which may become available must be applied to the extent necessary to repay 89.18such certificates and the full faith and credit of the district shall be pledged to payment 89.19of the certificates. Certificates issued in anticipation of receipt of aids shall mature not 89.20later than the anticipated date of receipt of the aids as estimated by the commissioner, but 89.21in no event later than three months after the close of the school year in which issued. 89.22Certificates issued in anticipation of receipt of taxes shall mature not later than the 89.23anticipated date of receipt in full of the taxes, but in no event later than three months after 89.24the close of the calendar year in which issued. The certificates must be sold at not less 89.25than par. The certificates must bear interest after maturity until paid at the rate they bore 89.26before maturity and any interest accruing before or after maturity must be paid from 89.27any available school funds. 89.28 new text begin (b) Notwithstanding any contrary provision in paragraph (a), if the certificates are new text end 89.29 new text begin issued as taxable obligations on which the interest is includable in gross income for federal new text end 89.30 new text begin income tax purposes, certificates issued in anticipation of receipt of aids shall mature not new text end 89.31 new text begin later than 12 months after the close of the school year in which issued and certificates new text end 89.32 new text begin issued in anticipation of receipt of taxes shall mature not later than 12 months after the new text end 89.33 new text begin close of the calendar year in which issued. Any certificate issued under this section with a new text end 89.34 new text begin maturity in excess of 12 months must be repaid with money from the general fund. new text end 90.1    Sec. 6. Minnesota Statutes 2008, section 127A.42, subdivision 2, is amended to read: 90.2    Subd. 2. Violations of law. The commissioner may reduce or withhold the district's 90.3state aid for any school year whenever the board of the district authorizes or permits 90.4violations of law within the district by: 90.5(1) employing a teacher who does not hold a valid teaching license or permit in a 90.6public school; 90.7(2) noncompliance with a mandatory rule of general application promulgated by the 90.8commissioner in accordance with statute, unless special circumstances make enforcement 90.9inequitable, impose an extraordinary hardship on the district, or the rule is contrary to 90.10the district's best interests; 90.11(3) the district's continued performance of a contract made for the rental of rooms 90.12or buildings for school purposes or for the rental of any facility owned or operated by or 90.13under the direction of any private organization, if the contract has been disapproved, the 90.14time for review of the determination of disapproval has expired, and no proceeding for 90.15review is pending; 90.16(4) any practice which is a violation of sections 1 and 2 of article 13 of the 90.17Constitution of the state of Minnesota; 90.18(5) failure to reasonably provide for a resident pupil's school attendance under 90.19Minnesota Statutes; 90.20(6) noncompliance with state laws prohibiting discrimination because of race, 90.21color, creed, religion, national origin, sex, age, marital status, status with regard to 90.22public assistance or disability, as defined in sections 363A.08 to 363A.19 and 363A.28, 90.23subdivision 10 ; or 90.24(7) using funds contrary to the statutory purpose of the funds. 90.25The reduction or withholding must be made in the amount and upon the procedure 90.26provided in this section new text begin , or, in the case of the violation stated in clause (1), upon the new text end 90.27 new text begin procedure provided in section 127A.43 new text end . 90.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2010. new text end 90.29    Sec. 7. Minnesota Statutes 2008, section 127A.43, is amended to read: 90.30127A.43 DISTRICT EMPLOYMENT OF UNLICENSED TEACHERS; AID 90.31REDUCTION. 90.32When a district employs one or more teachers who do not hold a valid teaching 90.33license, state aid shall be withheld new text begin reduced new text end in the proportion that the number of such 90.34teachers is to the total number of teachers employed by the district, multiplied by 60 91.1percent of the basic revenue, as defined in section 126C.10, subdivision 2, of the district 91.2for the year in which the employment occurred. 91.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2010. new text end 91.4    Sec. 8. Minnesota Statutes 2008, section 127A.441, is amended to read: 91.5127A.441 AID REDUCTION; LEVY REVENUE RECOGNITION CHANGE. 91.6    Each year, the state aids payable to any school district for that fiscal year that are 91.7recognized as revenue in the school district's general and community service funds shall 91.8be adjusted by an amount equal to (1) the amount the district recognized as revenue for the 91.9prior fiscal year pursuant to section 123B.75, subdivision 5, paragraph new text begin (a) or new text end (b), minus (2) 91.10the amount the district recognized as revenue for the current fiscal year pursuant to section 91.11123B.75, subdivision 5 , paragraph new text begin (a) or new text end (b). For purposes of making the aid adjustments 91.12under this section, the amount the district recognizes as revenue for either the prior fiscal 91.13year or the current fiscal year pursuant to section 123B.75, subdivision 5, paragraph (b), 91.14shall not include any amount levied pursuant to section 124D.86, subdivision 4, for school 91.15districts receiving revenue under sections 124D.86, subdivision 3, clauses (1), (2), and (3); 91.16126C.41, subdivisions 1, 2, and 3 , paragraphs (b), (c), and (d); 126C.43, subdivision 2; 91.17126C.457 ; and 126C.48, subdivision 6. Payment from the permanent school fund shall not 91.18be adjusted pursuant to this section. The school district shall be notified of the amount of 91.19the adjustment made to each payment pursuant to this section. 91.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 91.21 new text begin and applies to fiscal years 2010 and later. new text end 91.22    Sec. 9. Minnesota Statutes 2008, section 127A.45, subdivision 2, is amended to read: 91.23    Subd. 2. Definitions. (a) The term "Other district receipts" means payments by 91.24county treasurers pursuant to section 276.10, apportionments from the school endowment 91.25fund pursuant to section 127A.33, apportionments by the county auditor pursuant to 91.26section 127A.34, subdivision 2, and payments to school districts by the commissioner of 91.27revenue pursuant to chapter 298. 91.28(b) The term "Cumulative amount guaranteed" means the product of 91.29(1) the cumulative disbursement percentage shown in subdivision 3; times 91.30(2) the sum of 91.31(i) the current year aid payment percentage of the estimated aid and credit 91.32entitlements paid according to subdivision 13; plus 91.33(ii) 100 percent of the entitlements paid according to subdivisions 11 and 12; plus 92.1(iii) the other district receipts. 92.2(c) The term "Payment date" means the date on which state payments to districts 92.3are made by the electronic funds transfer method. If a payment date falls on a Saturday, 92.4a Sunday, or a weekday which is a legal holiday, the payment shall be made on the 92.5immediately preceding business day. The commissioner may make payments on dates 92.6other than those listed in subdivision 3, but only for portions of payments from any 92.7preceding payment dates which could not be processed by the electronic funds transfer 92.8method due to documented extenuating circumstances. 92.9(d) The current year aid payment percentage equals 90 new text begin 73 new text end . 92.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 92.11 new text begin and applies to fiscal years 2010 and later. new text end 92.12    Sec. 10. Minnesota Statutes 2008, section 127A.45, subdivision 3, is amended to read: 92.13    Subd. 3. Payment dates and percentages. (a) For fiscal year 2004 and later, The 92.14commissioner shall pay to a district on the dates indicated an amount computed as follows: 92.15the cumulative amount guaranteed minus the sum of (a) new text begin (1) new text end the district's other district 92.16receipts through the current payment, and (b) new text begin (2) new text end the aid and credit payments through the 92.17immediately preceding payment. For purposes of this computation, the payment dates and 92.18the cumulative disbursement percentages are as follows: 92.19 Payment date Percentage 92.20 Payment 1 July 15: 5.5 92.21 Payment 2 July 30: 8.0 92.22 Payment 3 August 15: 17.5 92.23 Payment 4 August 30: 20.0 92.24 Payment 5 September 15: 22.5 92.25 Payment 6 September 30: 25.0 92.26 Payment 7 October 15: 27.0 92.27 Payment 8 October 30: 30.0 92.28 Payment 9 November 15: 32.5 92.29 Payment 10 November 30: 36.5 92.30 Payment 11 December 15: 42.0 92.31 Payment 12 December 30: 45.0 92.32 Payment 13 January 15: 50.0 92.33 Payment 14 January 30: 54.0 92.34 Payment 15 February 15: 58.0 92.35 Payment 16 February 28: 63.0 92.36 Payment 17 March 15: 68.0 92.37 Payment 18 March 30: 74.0 92.38 Payment 19 April 15: 78.0 93.1 Payment 20 April 30: 85.0 93.2 Payment 21 May 15: 90.0 93.3 Payment 22 May 30: 95.0 93.4 Payment 23 June 20: 100.0 93.5(b) In addition to the amounts paid under paragraph (a), for fiscal year 2004, the 93.6commissioner shall pay to a district on the dates indicated an amount computed as follows: 93.7 93.8 Payment 3 August 15: the final adjustment for the prior fiscal year for the state paid property tax credits established in section 273.1392 93.9 93.10 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 93.11 93.12 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 93.13 93.14 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 93.15(c) new text begin (b) new text end In addition to the amounts paid under paragraph (a), for fiscal year 2005 and 93.16later, the commissioner shall pay to a district on the dates indicated an amount computed 93.17as follows: 93.18 93.19 Payment 3 August 15: the final adjustment for the prior fiscal year for the state paid property tax credits established in section 273.1392 93.20 93.21 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 93.22 93.23 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 93.24 93.25 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 93.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 93.27 new text begin and applies to fiscal years 2010 and later. new text end 93.28    Sec. 11. Minnesota Statutes 2008, section 127A.45, is amended by adding a 93.29subdivision to read: 93.30     new text begin Subd. 6a. new text end new text begin Cash flow adjustment. new text end new text begin The board of directors of any charter school new text end 93.31 new text begin serving fewer than 150 students where the percentage of students eligible for special new text end 93.32 new text begin education services equals 100 percent of the charter school's total enrollment may request new text end 93.33 new text begin that the commissioner of education accelerate the school's cash flow under this section. new text end 93.34 new text begin The commissioner must approve a properly submitted request within 30 days of its receipt. new text end 93.35 new text begin The commissioner must accelerate the school's regular special education aid payments new text end 93.36 new text begin according to the schedule in the school's request and modify the payments to the school new text end 93.37 new text begin under subdivision 3 accordingly. A school must not receive current payments of regular new text end 93.38 new text begin special education aid exceeding 90 percent of its estimated aid entitlement for the fiscal new text end 94.1 new text begin year. The commissioner must delay the special education aid payments to all other school new text end 94.2 new text begin districts and charter schools in proportion to each district or charter school's total share new text end 94.3 new text begin of regular special education aid such that the overall aid payment savings from the aid new text end 94.4 new text begin payment shift remains unchanged for any fiscal year. new text end 94.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 94.6 new text begin and applies to school district or charter school payments made on or after that date. new text end 94.7    Sec. 12. Minnesota Statutes 2008, section 127A.45, is amended by adding a 94.8subdivision to read: 94.9     new text begin Subd. 7b. new text end new text begin Advance final payment. new text end new text begin (a) Notwithstanding subdivisions 3 and 7, new text end 94.10 new text begin a school district or charter school exceeding its expenditure limitations under section new text end 94.11 new text begin 123B.83 as of June 30 of the prior fiscal year may receive a portion of its final payment new text end 94.12 new text begin for the current fiscal year on June 20, if requested by the district or charter school. The new text end 94.13 new text begin amount paid under this subdivision must not exceed the lesser of: new text end 94.14 new text begin (1) the difference between 90 percent and the current year payment percentage in new text end 94.15 new text begin subdivision 2, paragraph (d), in the current fiscal year times the sum of the district or new text end 94.16 new text begin charter school's general education aid plus the aid adjustment in section 127A.50 for new text end 94.17 new text begin the current fiscal year; or new text end 94.18 new text begin (2) the amount by which the district's or charter school's net negative unreserved new text end 94.19 new text begin general fund balance as of June 30 of the prior fiscal year exceeds 2.5 percent of the new text end 94.20 new text begin district or charter school's expenditures for that fiscal year. new text end 94.21 new text begin (b) The state total advance final payment under this subdivision for any year must new text end 94.22 new text begin not exceed $7,500,000. If the amount request exceeds $7,500,000, the advance final new text end 94.23 new text begin payment for each eligible district must be reduced proportionately. new text end 94.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 94.25 new text begin and applies to fiscal years 2010 and later. new text end 94.26    Sec. 13. Minnesota Statutes 2008, section 127A.45, subdivision 13, is amended to read: 94.27    Subd. 13. Aid payment percentage. Except as provided in subdivisions 11, 12, 12a, 94.28and 14, each fiscal year, all education aids and credits in this chapter and chapters 120A, 94.29120B, 121A, 122A, 123A, 123B, 124D, 125A, 125B, 126C, 134, and section 273.1392, 94.30shall be paid at the current year aid payment percentage of the estimated entitlement during 94.31the fiscal year of the entitlement. For the purposes of this subdivision, a district's estimated 94.32entitlement for special education excess cost aid under section for fiscal year 94.332005 equals 70 percent of the district's entitlement for the second prior fiscal year. For the 95.1purposes of this subdivision, a district's estimated entitlement for special education excess 95.2cost aid under section 125A.79 for fiscal year 2006 and later equals 74.0 percent of the 95.3district's entitlement for the current fiscal year. The final adjustment payment, according 95.4to subdivision 9, must be the amount of the actual entitlement, after adjustment for actual 95.5data, minus the payments made during the fiscal year of the entitlement. 95.6    Sec. 14. Minnesota Statutes 2008, section 127A.45, is amended by adding a 95.7subdivision to read: 95.8     new text begin Subd. 17. new text end new text begin Payment to creditors. new text end new text begin Except where otherwise specifically authorized, new text end 95.9 new text begin state education aid payments shall be made only to the school district, charter school, or new text end 95.10 new text begin other education organization earning state aid revenues as a result of providing education new text end 95.11 new text begin services. new text end 95.12    Sec. 15. new text begin FUND TRANSFERS. new text end 95.13     new text begin Subdivision 1. new text end new text begin Fiscal years 2010 and 2011 only. new text end new text begin (a) Notwithstanding Minnesota new text end 95.14 new text begin Statutes, section 123B.80, subdivision 3, for fiscal years 2010 and 2011 only, the new text end 95.15 new text begin commissioner must approve a request for a fund transfer if the transfer does not increase new text end 95.16 new text begin state aid obligations to the district or result in additional property tax authority for the new text end 95.17 new text begin district. This section does not permit transfers from the community service fund. new text end 95.18 new text begin (b) A school board may approve a fund transfer under paragraph (a) only after new text end 95.19 new text begin adopting a resolution stating the fund transfer will not diminish instructional opportunities new text end 95.20 new text begin for students. new text end 95.21     new text begin Subd. 2. new text end new text begin Hayfield. new text end new text begin Notwithstanding Minnesota Statutes, section 123B.79 or new text end 95.22 new text begin 123B.80, on June 30, 2010, Independent School District No. 203, Hayfield, may new text end 95.23 new text begin permanently transfer up to $75,000 from its reserved for operating capital account to its new text end 95.24 new text begin undesignated general fund balance. new text end 95.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 95.26    Sec. 16. new text begin REPEALER. new text end 95.27 new text begin Minnesota Statutes 2008, section 127A.46, new text end new text begin is repealed. new text end 95.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2010. new text end 96.1ARTICLE 6 96.2STATE AGENCIES 96.3    Section 1. Minnesota Statutes 2008, section 3.303, is amended by adding a subdivision 96.4to read: 96.5     new text begin Subd. 11. new text end new text begin Permanent school fund land management analyst. new text end new text begin The commission new text end 96.6 new text begin shall undertake activities that are necessary to advise the legislature and to monitor the new text end 96.7 new text begin executive branch on issues related to the management of permanent school fund lands. new text end 96.8 new text begin The commission may hire a lead analyst and other staff as necessary for this purpose. The new text end 96.9 new text begin commission shall: new text end 96.10 new text begin (1) monitor management of permanent school fund lands; new text end 96.11 new text begin (2) analyze the benefits derived from the fund; new text end 96.12 new text begin (3) actively participate in the work of the permanent school fund advisory committee new text end 96.13 new text begin under section 127A.30; new text end 96.14 new text begin (4) provide oversight to ensure that the state fulfills its fiduciary responsibilities to new text end 96.15 new text begin the permanent school fund as specified by the Minnesota Constitution and Minnesota new text end 96.16 new text begin Statutes; and new text end 96.17 new text begin (5) make effective recommendations to the permanent school fund advisory new text end 96.18 new text begin committee and the finance divisions and committees of the house of representatives and new text end 96.19 new text begin the senate. new text end 96.20 new text begin The purpose of this function is to maximize the long-term economic returns to the new text end 96.21 new text begin school trust lands consistent with the goals of section 127A.31. new text end 96.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2011. new text end 96.23    Sec. 2. Minnesota Statutes 2008, section 16A.125, subdivision 5, is amended to read: 96.24    Subd. 5. Forest trust lands. (a) The term "state forest trust fund lands" as used 96.25in this subdivision, means public land in trust under the Constitution set apart as "forest 96.26lands under the authority of the commissioner" of natural resources as defined by section 96.2789.001, subdivision 13 . 96.28(b) The commissioner of management and budget shall credit the revenue from the 96.29forest trust fund lands to the forest suspense account. The account must specify the trust 96.30funds interested in the lands and the respective receipts of the lands. 96.31(c) After a fiscal year, the commissioner of management and budget shall certify the 96.32total costs incurred for forestry during that year under appropriations for the protection, 96.33improvement, administration, and management of state forest trust fund lands and 96.34construction and improvement of forest roads to enhance the forest value of the lands. 97.1The certificate must specify the trust funds interested in the lands. The commissioner of 97.2natural resources shall supply the commissioner of management and budget with the 97.3information needed for the certificate. 97.4(d) After a fiscal year, the commissioner shall distribute the receipts credited to the 97.5suspense account during that fiscal year as follows: 97.6(1) the amount of the certified costs incurred by the state for forest management, 97.7forest improvement, and road improvement during the fiscal year shall be transferred to 97.8the forest management investment account established under section 89.039 new text begin , including new text end 97.9 new text begin the costs associated with the Legislative Coordinating Commission's permanent school new text end 97.10 new text begin fund land management activities new text end ; 97.11(2) the balance of the certified costs incurred by the state during the fiscal year 97.12shall be transferred to the general fund; and 97.13(3) the balance of the receipts shall then be returned prorated to the trust funds in 97.14proportion to their respective interests in the lands which produced the receipts. 97.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2011. new text end 97.16    Sec. 3. Minnesota Statutes 2008, section 127A.30, subdivision 2, is amended to read: 97.17    Subd. 2. Duties. The advisory committee new text begin , in conjunction with the Legislative new text end 97.18 new text begin Coordinating Commission, new text end shall review the policies of the Department of Natural 97.19Resources and current statutes on management of school trust fund lands at least annually 97.20and shall recommend necessary changes in statutes, policy, and implementation in order to 97.21ensure provident utilization of the permanent school fund lands. By January 15 of each 97.22year, the advisory committee shall submit a report to the legislature with recommendations 97.23for the new text begin oversight and new text end management of school trust lands to secure long-term economic 97.24return for the permanent school fund, consistent with sections 92.121 and 127A.31. The 97.25committee's annual report may include recommendations to: 97.26    (1) manage the school trust lands efficiently; 97.27    (2) reduce the management expenditures of school trust lands and maximize the 97.28revenues deposited in the permanent school trust fund; 97.29    (3) manage the sale, exchange, and commercial leasing of school trust lands to 97.30maximize the revenues deposited in the permanent school trust fund and retain the value 97.31from the long-term appreciation of the school trust lands; and 97.32    (4) manage the school trust lands to maximize the long-term economic return for the 97.33permanent school trust fund while maintaining sound natural resource conservation and 97.34management principles. 98.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2011. new text end 98.2    Sec. 4. Minnesota Statutes 2008, section 157.15, is amended by adding a subdivision 98.3to read: 98.4     new text begin Subd. 14a. new text end new text begin School concession stand. new text end new text begin "School concession stand" means a food new text end 98.5 new text begin and beverage service establishment located in a school, on school grounds, or within a new text end 98.6 new text begin school-owned athletic complex, that is operated in conjunction with school-sponsored new text end 98.7 new text begin events. new text end 98.8    Sec. 5. Minnesota Statutes 2009 Supplement, section 157.16, subdivision 3, is 98.9amended to read: 98.10    Subd. 3. Establishment fees; definitions. (a) The following fees are required 98.11for food and beverage service establishments, youth camps, hotels, motels, lodging 98.12establishments, public pools, and resorts licensed under this chapter. Food and beverage 98.13service establishments must pay the highest applicable fee under paragraph (d), clause 98.14(1), (2), (3), or (4), and establishments serving alcohol must pay the highest applicable 98.15fee under paragraph (d), clause (6) or (7). The license fee for new operators previously 98.16licensed under this chapter for the same calendar year is one-half of the appropriate annual 98.17license fee, plus any penalty that may be required. The license fee for operators opening 98.18on or after October 1 is one-half of the appropriate annual license fee, plus any penalty 98.19that may be required. 98.20    (b) All food and beverage service establishments, except special event food stands, 98.21and all hotels, motels, lodging establishments, public pools, and resorts shall pay an 98.22annual base fee of $150. 98.23    (c) A special event food stand shall pay a flat fee of $50 annually. "Special event 98.24food stand" means a fee category where food is prepared or served in conjunction with 98.25celebrations, county fairs, or special events from a special event food stand as defined 98.26in section 157.15. 98.27    (d) In addition to the base fee in paragraph (b), each food and beverage service 98.28establishment, other than a special event food stand new text begin and a school concession stand new text end , and 98.29each hotel, motel, lodging establishment, public pool, and resort shall pay an additional 98.30annual fee for each fee category, additional food service, or required additional inspection 98.31specified in this paragraph: 98.32    (1) Limited food menu selection, $60. "Limited food menu selection" means a fee 98.33category that provides one or more of the following: 98.34    (i) prepackaged food that receives heat treatment and is served in the package; 99.1    (ii) frozen pizza that is heated and served; 99.2    (iii) a continental breakfast such as rolls, coffee, juice, milk, and cold cereal; 99.3    (iv) soft drinks, coffee, or nonalcoholic beverages; or 99.4    (v) cleaning for eating, drinking, or cooking utensils, when the only food served 99.5is prepared off site. 99.6    (2) Small establishment, including boarding establishments, $120. "Small 99.7establishment" means a fee category that has no salad bar and meets one or more of 99.8the following: 99.9    (i) possesses food service equipment that consists of no more than a deep fat fryer, a 99.10grill, two hot holding containers, and one or more microwave ovens; 99.11    (ii) serves dipped ice cream or soft serve frozen desserts; 99.12    (iii) serves breakfast in an owner-occupied bed and breakfast establishment; 99.13    (iv) is a boarding establishment; or 99.14    (v) meets the equipment criteria in clause (3), item (i) or (ii), and has a maximum 99.15patron seating capacity of not more than 50. 99.16    (3) Medium establishment, $310. "Medium establishment" means a fee category 99.17that meets one or more of the following: 99.18    (i) possesses food service equipment that includes a range, oven, steam table, salad 99.19bar, or salad preparation area; 99.20    (ii) possesses food service equipment that includes more than one deep fat fryer, 99.21one grill, or two hot holding containers; or 99.22    (iii) is an establishment where food is prepared at one location and served at one or 99.23more separate locations. 99.24    Establishments meeting criteria in clause (2), item (v), are not included in this fee 99.25category. 99.26    (4) Large establishment, $540. "Large establishment" means either: 99.27    (i) a fee category that (A) meets the criteria in clause (3), items (i) or (ii), for a 99.28medium establishment, (B) seats more than 175 people, and (C) offers the full menu 99.29selection an average of five or more days a week during the weeks of operation; or 99.30    (ii) a fee category that (A) meets the criteria in clause (3), item (iii), for a medium 99.31establishment, and (B) prepares and serves 500 or more meals per day. 99.32    (5) Other food and beverage service, including food carts, mobile food units, 99.33seasonal temporary food stands, and seasonal permanent food stands, $60. 99.34    (6) Beer or wine table service, $60. "Beer or wine table service" means a fee 99.35category where the only alcoholic beverage service is beer or wine, served to customers 99.36seated at tables. 100.1    (7) Alcoholic beverage service, other than beer or wine table service, $165. 100.2    "Alcohol beverage service, other than beer or wine table service" means a fee 100.3category where alcoholic mixed drinks are served or where beer or wine are served from 100.4a bar. 100.5    (8) Lodging per sleeping accommodation unit, $10, including hotels, motels, 100.6lodging establishments, and resorts, up to a maximum of $1,000. "Lodging per sleeping 100.7accommodation unit" means a fee category including the number of guest rooms, cottages, 100.8or other rental units of a hotel, motel, lodging establishment, or resort; or the number of 100.9beds in a dormitory. 100.10    (9) First public pool, $325; each additional public pool, $175. "Public pool" means a 100.11fee category that has the meaning given in section 144.1222, subdivision 4. 100.12    (10) First spa, $175; each additional spa, $100. "Spa pool" means a fee category that 100.13has the meaning given in Minnesota Rules, part 4717.0250, subpart 9. 100.14    (11) Private sewer or water, $60. "Individual private water" means a fee category 100.15with a water supply other than a community public water supply as defined in Minnesota 100.16Rules, chapter 4720. "Individual private sewer" means a fee category with an individual 100.17sewage treatment system which uses subsurface treatment and disposal. 100.18    (12) Additional food service, $150. "Additional food service" means a location at 100.19a food service establishment, other than the primary food preparation and service area, 100.20used to prepare or serve food to the public. new text begin "Additional food service" does not apply to new text end 100.21 new text begin school concession stands. new text end 100.22    (13) Additional inspection fee, $360. "Additional inspection fee" means a fee to 100.23conduct the second inspection each year for elementary and secondary education facility 100.24school lunch programs when required by the Richard B. Russell National School Lunch 100.25Act. 100.26    (e) A fee for review of construction plans must accompany the initial license 100.27application for restaurants, hotels, motels, lodging establishments, resorts, seasonal food 100.28stands, and mobile food units. The fee for this construction plan review is as follows: 100.29 Service AreaTypeFee 100.30 Food limited food menu $275 100.31 small establishment $400 100.32 medium establishment $450 100.33 large food establishment $500 100.34 additional food service $150 100.35 Transient food service food cart $250 100.36 seasonal permanent food stand $250 100.37 seasonal temporary food stand $250 101.1 mobile food unit $350 101.2 Alcohol beer or wine table service $150 101.3 alcohol service from bar $250 101.4 Lodging less than 25 rooms $375 101.5 25 to less than 100 rooms $400 101.6 100 rooms or more $500 101.7 less than five cabins $350 101.8 five to less than ten cabins $400 101.9 ten cabins or more $450 101.10    (f) When existing food and beverage service establishments, hotels, motels, lodging 101.11establishments, resorts, seasonal food stands, and mobile food units are extensively 101.12remodeled, a fee must be submitted with the remodeling plans. The fee for this 101.13construction plan review is as follows: 101.14 Service AreaTypeFee 101.15 Food limited food menu $250 101.16 small establishment $300 101.17 medium establishment $350 101.18 large food establishment $400 101.19 additional food service $150 101.20 Transient food service food cart $250 101.21 seasonal permanent food stand $250 101.22 seasonal temporary food stand $250 101.23 mobile food unit $250 101.24 Alcohol beer or wine table service $150 101.25 alcohol service from bar $250 101.26 Lodging less than 25 rooms $250 101.27 25 to less than 100 rooms $300 101.28 100 rooms or more $450 101.29 less than five cabins $250 101.30 five to less than ten cabins $350 101.31 ten cabins or more $400 101.32    (g) Special event food stands are not required to submit construction or remodeling 101.33plans for review. 101.34(h) Youth camps shall pay an annual single fee for food and lodging as follows: 101.35(1) camps with up to 99 campers, $325; 101.36(2) camps with 100 to 199 campers, $550; and 101.37(3) camps with 200 or more campers, $750. 101.38    Sec. 6. new text begin DEPARTMENT OF EDUCATION; APPROPRIATIONS. new text end 102.1 new text begin (a) The appropriation to the Department of Education under Laws 2009, chapter new text end 102.2 new text begin 96, article 7, section 3, subdivision 2, is reduced by $250,000 in fiscal year 2010 and new text end 102.3 new text begin by $482,000 in fiscal year 2011. new text end 102.4 new text begin (b) $24,000 in fiscal year 2010 and $23,000 in fiscal year 2011 are transferred from new text end 102.5 new text begin the department's special revenue fund to the general fund. new text end 102.6 new text begin (c) The base appropriation for the Department of Education for fiscal year 2012 new text end 102.7 new text begin and later is $18,678,000. new text end 102.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 102.9    Sec. 7. new text begin PERPICH CENTER FOR ARTS EDUCATION; APPROPRIATION. new text end 102.10 new text begin $19,000 in fiscal year 2010 and $11,000 in fiscal year 2011 are transferred from the new text end 102.11 new text begin Perpich Center's special revenue fund to the general fund. new text end 102.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 102.13ARTICLE 7 102.14PUPIL TRANSPORTATION 102.15    Section 1. Minnesota Statutes 2008, section 123B.88, subdivision 13, is amended to 102.16read: 102.17    Subd. 13. Area learning center pupils new text begin ; transport between buildings new text end . Districts 102.18may provide bus transportation new text begin between buildings new text end along school bus routes when space is 102.19available, for pupils attending programs at an area learning center. The transportation is 102.20only permitted between schools and if it does not increase the district's expenditures for 102.21transportation. The cost of these services shall be considered part of the authorized cost 102.22for nonregular transportation for the purpose of section 123B.92. 102.23    Sec. 2. Minnesota Statutes 2008, section 123B.90, subdivision 3, is amended to read: 102.24    Subd. 3. Model training program. The commissioner shall develop new text begin and maintain new text end a 102.25comprehensive model new text begin list of new text end school bus safety training program new text begin instructional materials new text end 102.26for pupils who ride the bus that includes bus safety curriculum for both classroom and 102.27practical instruction and age-appropriate instructional materials. 102.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2010. new text end 102.29    Sec. 3. Minnesota Statutes 2009 Supplement, section 123B.92, subdivision 1, is 102.30amended to read: 103.1    Subdivision 1. Definitions. For purposes of this section and section 125A.76, the 103.2terms defined in this subdivision have the meanings given to them. 103.3    (a) "Actual expenditure per pupil transported in the regular and excess transportation 103.4categories" means the quotient obtained by dividing: 103.5    (1) the sum of: 103.6    (i) all expenditures for transportation in the regular category, as defined in paragraph 103.7(b), clause (1), and the excess category, as defined in paragraph (b), clause (2), plus 103.8    (ii) an amount equal to one year's depreciation on the district's school bus fleet 103.9and mobile units computed on a straight line basis at the rate of 15 percent per year for 103.10districts operating a program under section 124D.128 for grades 1 to 12 for all students in 103.11the district and 12-1/2 percent per year for other districts of the cost of the fleet, plus 103.12    (iii) an amount equal to one year's depreciation on the district's type III vehicles, as 103.13defined in section 169.011, subdivision 71, which must be used a majority of the time for 103.14pupil transportation purposes, computed on a straight line basis at the rate of 20 percent 103.15per year of the cost of the type three school buses by: 103.16    (2) the number of pupils eligible for transportation in the regular category, as defined 103.17in paragraph (b), clause (1), and the excess category, as defined in paragraph (b), clause (2). 103.18    (b) "Transportation category" means a category of transportation service provided to 103.19pupils as follows: 103.20    (1) Regular transportation is: 103.21    (i) transportation to and from school during the regular school year for resident 103.22elementary pupils residing one mile or more from the public or nonpublic school they 103.23attend, and resident secondary pupils residing two miles or more from the public 103.24or nonpublic school they attend, excluding desegregation transportation and noon 103.25kindergarten transportation; but with respect to transportation of pupils to and from 103.26nonpublic schools, only to the extent permitted by sections 123B.84 to 123B.87; 103.27    (ii) transportation of resident pupils to and from language immersion programs; 103.28    (iii) transportation of a pupil who is a custodial parent and that pupil's child between 103.29the pupil's home and the child care provider and between the provider and the school, if 103.30the home and provider are within the attendance area of the school; 103.31    (iv) transportation to and from or board and lodging in another district, of resident 103.32pupils of a district without a secondary school; and 103.33    (v) transportation to and from school during the regular school year required under 103.34subdivision 3 for nonresident elementary pupils when the distance from the attendance 103.35area border to the public school is one mile or more, and for nonresident secondary pupils 104.1when the distance from the attendance area border to the public school is two miles or 104.2more, excluding desegregation transportation and noon kindergarten transportation. 104.3    For the purposes of this paragraph, a district may designate a licensed day care 104.4facility, school day care facility, respite care facility, the residence of a relative, or the 104.5residence of a person chosen by the pupil's parent or guardian new text begin , or an after-school program new text end 104.6 new text begin for children operated by a political subdivision of the state, new text end as the home of a pupil for part 104.7or all of the day, if requested by the pupil's parent or guardian, and if that facility or new text begin , new text end 104.8residence new text begin , or program new text end is within the attendance area of the school the pupil attends. 104.9    (2) Excess transportation is: 104.10    (i) transportation to and from school during the regular school year for resident 104.11secondary pupils residing at least one mile but less than two miles from the public or 104.12nonpublic school they attend, and transportation to and from school for resident pupils 104.13residing less than one mile from school who are transported because of extraordinary 104.14traffic, drug, or crime hazards; and 104.15    (ii) transportation to and from school during the regular school year required under 104.16subdivision 3 for nonresident secondary pupils when the distance from the attendance area 104.17border to the school is at least one mile but less than two miles from the public school 104.18they attend, and for nonresident pupils when the distance from the attendance area border 104.19to the school is less than one mile from the school and who are transported because of 104.20extraordinary traffic, drug, or crime hazards. 104.21    (3) Desegregation transportation is transportation within and outside of the district 104.22during the regular school year of pupils to and from schools located outside their normal 104.23attendance areas under a plan for desegregation mandated by the commissioner or under 104.24court order. 104.25    (4) "Transportation services for pupils with disabilities" is: 104.26    (i) transportation of pupils with disabilities who cannot be transported on a regular 104.27school bus between home or a respite care facility and school; 104.28    (ii) necessary transportation of pupils with disabilities from home or from school to 104.29other buildings, including centers such as developmental achievement centers, hospitals, 104.30and treatment centers where special instruction or services required by sections 125A.03 104.31to 125A.24, 125A.26 to 125A.48, and 125A.65 are provided, within or outside the district 104.32where services are provided; 104.33    (iii) necessary transportation for resident pupils with disabilities required by sections 104.34125A.12 , and 125A.26 to 125A.48; 104.35    (iv) board and lodging for pupils with disabilities in a district maintaining special 104.36classes; 105.1    (v) transportation from one educational facility to another within the district for 105.2resident pupils enrolled on a shared-time basis in educational programs, and necessary 105.3transportation required by sections 125A.18, and 125A.26 to 125A.48, for resident pupils 105.4with disabilities who are provided special instruction and services on a shared-time basis 105.5or if resident pupils are not transported, the costs of necessary travel between public 105.6and private schools or neutral instructional sites by essential personnel employed by the 105.7district's program for children with a disability; 105.8    (vi) transportation for resident pupils with disabilities to and from board and lodging 105.9facilities when the pupil is boarded and lodged for educational purposes; and 105.10(vii) new text begin transportation of pupils for a curricular field trip activity on a school bus new text end 105.11 new text begin equipped with a power lift when the power lift is required by a student's disability or new text end 105.12 new text begin section 504 plan; and new text end 105.13 new text begin (viii) new text end services described in clauses (i) to (vi) new text begin (vii) new text end , when provided for pupils with 105.14disabilities in conjunction with a summer instructional program that relates to the pupil's 105.15individual education plan or in conjunction with a learning year program established 105.16under section 124D.128. 105.17    For purposes of computing special education initial aid under section 125A.76, 105.18subdivision 2 , the cost of providing transportation for children with disabilities includes 105.19(A) the additional cost of transporting a homeless student from a temporary nonshelter 105.20home in another district to the school of origin, or a formerly homeless student from a 105.21permanent home in another district to the school of origin but only through the end of the 105.22academic year; and (B) depreciation on district-owned school buses purchased after July 1, 105.232005, and used primarily for transportation of pupils with disabilities, calculated according 105.24to paragraph (a), clauses (ii) and (iii). Depreciation costs included in the disabled 105.25transportation category must be excluded in calculating the actual expenditure per pupil 105.26transported in the regular and excess transportation categories according to paragraph (a). 105.27    (5) "Nonpublic nonregular transportation" is: 105.28    (i) transportation from one educational facility to another within the district for 105.29resident pupils enrolled on a shared-time basis in educational programs, excluding 105.30transportation for nonpublic pupils with disabilities under clause (4); 105.31    (ii) transportation within district boundaries between a nonpublic school and a 105.32public school or a neutral site for nonpublic school pupils who are provided pupil support 105.33services pursuant to section 123B.44; and 105.34    (iii) late transportation home from school or between schools within a district for 105.35nonpublic school pupils involved in after-school activities. 106.1    (c) "Mobile unit" means a vehicle or trailer designed to provide facilities for 106.2educational programs and services, including diagnostic testing, guidance and counseling 106.3services, and health services. A mobile unit located off nonpublic school premises is a 106.4neutral site as defined in section 123B.41, subdivision 13. 106.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for revenue for fiscal years 2011 new text end 106.6 new text begin and later. new text end 106.7    Sec. 4. Minnesota Statutes 2008, section 123B.92, subdivision 5, is amended to read: 106.8    Subd. 5. District reports. (a) Each district must report data to the department as 106.9required by the department to account for transportation expenditures. 106.10(b) Salaries and fringe benefits of district employees whose primary duties are 106.11other than transportation, including central office administrators and staff, building 106.12administrators and staff, teachers, social workers, school nurses, and instructional aides, 106.13must not be included in a district's transportation expenditures, except that a district may 106.14include salaries and benefits according to paragraph (c) for (1) an employee designated 106.15as the district transportation director, (2) an employee providing direct support to the 106.16transportation director, or (3) an employee providing direct transportation services such as 106.17a bus driver or bus aide. 106.18(c) Salaries and fringe benefits of the district employees listed in paragraph (b), 106.19clauses (1), (2), and (3), who work part time in transportation and part time in other areas 106.20must not be included in a district's transportation expenditures unless the district maintains 106.21documentation of the employee's time spent on pupil transportation matters in the form 106.22and manner prescribed by the department. 106.23(d) Pupil transportation expenditures, excluding expenditures for capital outlay, 106.24leased buses, student board and lodging, crossing guards, and aides on buses, must 106.25be allocated among transportation categories based on cost-per-mile, cost-per-student, 106.26cost-per-hour, or cost-per-route, regardless of whether the transportation services are 106.27provided on district-owned or contractor-owned school buses. Expenditures for school 106.28bus driver salaries and fringe benefits may either be directly charged to the appropriate 106.29transportation category or may be allocated among transportation categories based 106.30on cost-per-mile, cost-per-student, cost-per-hour, or cost-per-route. Expenditures 106.31by private contractors or individuals who provide transportation exclusively in one 106.32transportation category must be charged directly to the appropriate transportation category. 106.33Transportation services provided by contractor-owned school bus companies incorporated 106.34under different names but owned by the same individual or group of individuals must be 106.35treated as the same company for cost allocation purposes. 107.1 new text begin (e) Notwithstanding paragraph (d), districts contracting for transportation services new text end 107.2 new text begin are exempt from the standard cost allocation method for authorized and nonauthorized new text end 107.3 new text begin transportation categories if: (1) the district bids its contracts separately for authorized new text end 107.4 new text begin and nonauthorized transportation categories and for special transportation separate from new text end 107.5 new text begin regular and excess transportation; (2) the district receives bids or quotes from more new text end 107.6 new text begin than one vendor for these transportation categories; and (3) the district's cost-per-mile, new text end 107.7 new text begin cost-per-hour, or cost-per-route does not vary more than ten percent among categories, new text end 107.8 new text begin excluding salaries and fringe benefits of bus aides. If the costs reported by the district new text end 107.9 new text begin for contractor-owned operations vary by more than ten percent among categories, the new text end 107.10 new text begin department shall require the district to reallocate its transportation costs, excluding salaries new text end 107.11 new text begin and fringe benefits of bus aides, among all categories. new text end 107.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for revenue for fiscal years 2011 new text end 107.13 new text begin and later. new text end 107.14    Sec. 5. Minnesota Statutes 2008, section 169.447, subdivision 2a, is amended to read: 107.15    Subd. 2a. Passenger lap and shoulder belts. (a) In addition to the requirements in 107.16section 169.4501, subdivision 1, new text begin : new text end 107.17 new text begin (1) new text end a school bus may be equipped with an approved lap belt or an approved lap and 107.18shoulder belt installed for each passenger-seating position on the bus new text begin ; and new text end 107.19 new text begin (2) a school motor coach manufactured after July 1, 2012, must be equipped with an new text end 107.20 new text begin approved lap belt or an approved lap and shoulder belt installed for each passenger-seating new text end 107.21 new text begin position new text end . 107.22 new text begin (b) new text end The design and installation of lap belts and lap and shoulder belts required 107.23under this paragraph new text begin (a) new text end must meet the standards of the commissioner established under new text begin new text end 107.24 new text begin this new text end paragraph (b). 107.25(b) The commissioner shall consider all concerns necessary to properly integrate 107.26lap belts or lap and shoulder belts into the current compartmentalization safety system 107.27and prescribe standards for the design and installation of lap and shoulder belts required 107.28under paragraph (a). The standards are not subject to chapter 14 and are specifically not 107.29subject to section 14.386. 107.30(c) This subdivision does not apply to specially equipped school buses under section 107.31169.4504 . 107.32(d) A passenger on a school bus new text begin or school motor coach new text end equipped with lap belts 107.33or lap and shoulder belts must use these lap belts or lap and shoulder belts unless the 107.34passenger, or if the passenger is a minor, the passenger's parent or guardian, has notified 108.1the school district in writing that the passenger does not intend to wear the lap belt or lap 108.2and shoulder belt. 108.3(e) In an action for personal injury or wrongful death against a school district, a 108.4school bus new text begin or school motor coach new text end operator under contract with a school district, or any 108.5agent or employee of a school district or operator, or against a volunteer, no such person or 108.6entity shall be held liable solely because the injured party was not wearing a safety belt; 108.7provided, however, that nothing contained herein shall be construed to grant immunity 108.8from liability for failure to: 108.9(1) maintain in operating order any equipment required by statute, rule, or school 108.10district policy; or 108.11(2) comply with an applicable statute, rule, or school district policy. 108.12(f) In an action for personal injury or wrongful death, a school district, a school 108.13bus new text begin or school motor coach new text end contract operator, any agent or employee of a school district or 108.14operator, or a volunteer is not liable for failing to assist any child with the adjustment, 108.15fastening, unfastening, or other use of the lap belt or lap and shoulder belt. 108.16 new text begin (g) For purposes of this subdivision, "school motor coach" means a bus that has an new text end 108.17 new text begin elevated passenger deck located over a baggage compartment, when the vehicle is used new text end 108.18 new text begin to transport pupils to or from school-related activities, by (1) the school or (2) someone new text end 108.19 new text begin under an agreement with the school or a school district, including operation under charter new text end 108.20 new text begin carrier authority. new text end 108.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2012. new text end 108.22    Sec. 6. Minnesota Statutes 2009 Supplement, section 171.02, subdivision 2b, is 108.23amended to read: 108.24    Subd. 2b. Exception for type III vehicle drivers. (a) Notwithstanding subdivision 108.252, the holder of a class A, B, C, or D driver's license, without a school bus endorsement, 108.26may operate a type III vehicle described in section 169.011, subdivision 71, paragraph (h), 108.27under the conditions in paragraphs (b) through (o). 108.28    (b) The operator is an employee of the entity that owns, leases, or contracts for 108.29the school bus. 108.30    (c) The operator's employer has adopted and implemented a policy that provides for 108.31annual training and certification of the operator in: 108.32    (1) safe operation of a type III vehicle; 108.33    (2) understanding student behavior, including issues relating to students with 108.34disabilities; 109.1    (3) encouraging orderly conduct of students on the bus and handling incidents of 109.2misconduct appropriately; 109.3    (4) knowing and understanding relevant laws, rules of the road, and local school 109.4bus safety policies; 109.5    (5) handling emergency situations; 109.6    (6) proper use of seat belts and child safety restraints; 109.7    (7) performance of pretrip vehicle inspections; 109.8    (8) safe loading and unloading of students, including, but not limited to: 109.9    (i) utilizing a safe location for loading and unloading students at the curb, on the 109.10nontraffic side of the roadway, or at off-street loading areas, driveways, yards, and other 109.11areas to enable the student to avoid hazardous conditions; 109.12    (ii) refraining from loading and unloading students in a vehicular traffic lane, on the 109.13shoulder, in a designated turn lane, or a lane adjacent to a designated turn lane; 109.14    (iii) avoiding a loading or unloading location that would require a pupil to cross a 109.15road, or ensuring that the driver or an aide personally escort the pupil across the road if 109.16it is not reasonably feasible to avoid such a location; and 109.17    (iv) placing the type III vehicle in "park" during loading and unloading; and 109.18 new text begin (v) escorting a pupil across the road under clause (iii) only after the motor is new text end 109.19 new text begin stopped, the ignition key is removed, the brakes are set, and the vehicle is otherwise new text end 109.20 new text begin rendered immobile; and new text end 109.21(9) compliance with paragraph (k), concerning reporting certain convictions to the 109.22employer within ten days of the date of conviction. 109.23    (d) A background check or background investigation of the operator has been 109.24conducted that meets the requirements under section 122A.18, subdivision 8, or 123B.03 109.25for school district employees; section 144.057 or chapter 245C for day care employees; 109.26or section 171.321, subdivision 3, for all other persons operating a type A or type III 109.27vehicle under this subdivision. 109.28    (e) Operators shall submit to a physical examination as required by section 171.321, 109.29subdivision 2 . 109.30    (f) The operator's employer requires preemployment drug and alcohol testing of 109.31applicants for operator positions. Current operators must comply with the employer's 109.32policy under section 181.951, subdivisions 2, 4, and 5. new text begin Notwithstanding any law to the new text end 109.33 new text begin contrary, the operator's employer may use a Breathalyzer or similar device to fulfill new text end 109.34 new text begin random or reasonable suspicion alcohol testing requirements. new text end 110.1    (g) The operator's driver's license is verified annually by the entity that owns, 110.2leases, or contracts for the school bus new text begin type III vehicle as required under section 171.321, new text end 110.3 new text begin subdivision 5 new text end . 110.4    (h) A person who sustains a conviction, as defined under section 609.02, of violating 110.5section 169A.25, 169A.26, 169A.27, or 169A.31, or whose driver's license is revoked 110.6under sections 169A.50 to 169A.53 of the implied consent law, or who is convicted of 110.7violating or whose driver's license is revoked under a similar statute or ordinance of 110.8another state, is precluded from operating a type III vehicle for five years from the date 110.9of conviction. 110.10    (i) A person who has ever been convicted of a disqualifying offense as defined in 110.11section 171.3215, subdivision 1, paragraph (c), may not operate a type III vehicle under 110.12this subdivision. 110.13    (j) A person who sustains a conviction, as defined under section 609.02, of a moving 110.14offense in violation of chapter 169 within three years of the first of three other moving 110.15offenses is precluded from operating a type III vehicle for one year from the date of 110.16the last conviction. 110.17    (k) An operator who sustains a conviction as described in paragraph (h), (i), or (j) 110.18while employed by the entity that owns, leases, or contracts for the school bus, shall report 110.19the conviction to the employer within ten days of the date of the conviction. 110.20    (l) Students riding the type III vehicle must have training required under section 110.21123B.90, subdivision 2 . 110.22    (m) Documentation of meeting the requirements listed in this subdivision must be 110.23maintained under separate file at the business location for each type III vehicle operator. 110.24The business manager, school board, governing body of a nonpublic school, or any 110.25other entity that owns, leases, or contracts for the type III vehicle operating under this 110.26subdivision is responsible for maintaining these files for inspection. 110.27    (n) The type III vehicle must bear a current certificate of inspection issued under 110.28section 169.451. 110.29    (o) An employee of a school or of a school district, who is not employed for the sole 110.30purpose of operating a type III vehicle, is exempt from paragraphs (e) and (f). 110.31 new text begin (p) Notwithstanding any law to the contrary, any person who conducts testing under new text end 110.32 new text begin paragraph (f) is exempt from section 181.953, subdivisions 9 and 10, paragraph (b). new text end 110.33 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2010. new text end 110.34    Sec. 7. Minnesota Statutes 2008, section 171.321, subdivision 2, is amended to read: 111.1    Subd. 2. Rules. (a) The commissioner of public safety shall prescribe rules 111.2governing new text begin (1) new text end the physical qualifications of school bus drivers and tests required to obtain 111.3a school bus endorsement new text begin and (2) the physical qualifications of type III vehicle drivers new text end . 111.4 new text begin The rules for physical qualifications of type III vehicle drivers are not subject to chapter new text end 111.5 new text begin 14 and section 14.386 does not apply. new text end 111.6 new text begin (b) new text end The rules new text begin under paragraph (a) new text end must provide that an applicant for a school 111.7bus endorsement or renewal is exempt from the physical qualifications and medical 111.8examination required to operate a school bus upon providing evidence of being medically 111.9examined and certified within the preceding 24 months as physically qualified to operate a 111.10commercial motor vehicle, pursuant to Code of Federal Regulations, title 49, part 391, 111.11subpart E, or rules of the commissioner of transportation incorporating those federal 111.12regulations. The commissioner shall accept physical examinations for school bus drivers 111.13conducted by medical examiners authorized as provided by Code of Federal Regulations, 111.14title 49, chapter 3, part 391, subpart E. 111.15(b) new text begin (c) new text end The commissioner of public safety, in conjunction with the commissioner 111.16of education, shall adopt rules prescribing a training program for Head Start bus drivers. 111.17The program must provide for initial classroom and behind-the-wheel training, and annual 111.18in-service training. The program must provide training in defensive driving, human 111.19relations, emergency and accident procedures, vehicle maintenance, traffic laws, and use 111.20of safety equipment. The program must provide that the training will be conducted by the 111.21contract operator for a Head Start agency, the Head Start grantee, a licensed driver training 111.22school, or by another person or entity approved by both commissioners. 111.23 new text begin (d) The commissioner may exempt a type III vehicle driver from the physical new text end 111.24 new text begin qualifications required to operate a type III vehicle upon receiving evidence of the new text end 111.25 new text begin driver having been medically examined and certified within the preceding 24 months as new text end 111.26 new text begin physically qualified to operate a commercial motor vehicle as provided for applicants for a new text end 111.27 new text begin school bus endorsement under paragraph (b). new text end 111.28ARTICLE 8 111.29EDUCATION FINANCE REFORM 111.30    Section 1. Minnesota Statutes 2008, section 123B.53, subdivision 5, is amended to read: 111.31    Subd. 5. Equalized debt service levy. (a) The equalized debt service levy of a 111.32district equals the sum of the first tier equalized debt service levy and the second tier 111.33equalized debt service levy. 111.34(b) A district's first tier equalized debt service levy equals the district's first tier debt 111.35service equalization revenue times the lesser of one or the ratio of: 112.1(1) the quotient derived by dividing the adjusted net tax capacity of the district for 112.2the year before the year the levy is certified by the adjusted pupil units in the district for 112.3the school year ending in the year prior to the year the levy is certified; to 112.4(2) $3,200 new text begin 100 percent of the statewide adjusted net tax capacity equalizing factor new text end . 112.5(c) A district's second tier equalized debt service levy equals the district's second tier 112.6debt service equalization revenue times the lesser of one or the ratio of: 112.7(1) the quotient derived by dividing the adjusted net tax capacity of the district for 112.8the year before the year the levy is certified by the adjusted pupil units in the district for 112.9the school year ending in the year prior to the year the levy is certified; to 112.10(2) $8,000 new text begin 200 percent of the statewide adjusted net tax capacity equalizing factor new text end . 112.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2013 and later. new text end 112.12    Sec. 2. new text begin [123B.555] SCHOOL BOND AGRICULTURAL CREDIT. new text end 112.13     new text begin Subdivision 1. new text end new text begin Eligibility. new text end new text begin All class 2a, 2b, and 2c property under section 273.13, new text end 112.14 new text begin subdivision 23, except for property consisting of the house, garage, and immediately new text end 112.15 new text begin surrounding one acre of land of an agricultural homestead, is eligible to receive the credit new text end 112.16 new text begin under this section. new text end 112.17     new text begin Subd. 2. new text end new text begin Credit amount. new text end new text begin For each qualifying property, the school bond agricultural new text end 112.18 new text begin credit is equal to 66 percent of the property's eligible net tax capacity multiplied by the new text end 112.19 new text begin school debt tax rate determined under section 275.08, subdivision 1b. new text end 112.20     new text begin Subd. 3. new text end new text begin Credit reimbursements. new text end new text begin The county auditor shall determine the tax new text end 112.21 new text begin reductions allowed under this section within the county for each taxes payable year and new text end 112.22 new text begin shall certify that amount to the commissioner of revenue as a part of the abstracts of tax new text end 112.23 new text begin lists submitted under section 275.29. Any prior year adjustments shall also be certified on new text end 112.24 new text begin the abstracts of tax lists. The commissioner shall review the certifications for accuracy, new text end 112.25 new text begin and may make such changes as are deemed necessary, or return the certification to the new text end 112.26 new text begin county auditor for correction. The credit under this section must be used to reduce the new text end 112.27 new text begin school district net tax capacity-based property tax as provided in section 273.1393. new text end 112.28     new text begin Subd. 4. new text end new text begin Payment. new text end new text begin The commissioner of revenue shall certify the total of the tax new text end 112.29 new text begin reductions granted under this section for each taxes payable year within each school new text end 112.30 new text begin district to the commissioner of education, who shall pay the reimbursement amounts to new text end 112.31 new text begin each school district as provided in section 273.1392. new text end 112.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2013 and later. new text end 113.1    Sec. 3. Minnesota Statutes 2008, section 124D.4531, as amended by Laws 2009, 113.2chapter 88, article 2, section 1, is amended to read: 113.3124D.4531 CAREER AND TECHNICAL LEVY new text begin AID new text end . 113.4    Subdivision 1. Career and technical levy new text begin aid new text end . (a) A district with a career and 113.5technical program approved under this section for the fiscal year in which the levy is 113.6certified may levy an amount new text begin is eligible for aid new text end equal to the lesser of: 113.7(1) $80 new text begin $240 new text end times the district's average daily membership in grades 10 through 12 113.8for the new text begin current new text end fiscal year in which the levy is certified; or 113.9(2) 25 percent of approved expenditures in the new text begin previous new text end fiscal year in which the 113.10levy is certified for the following: 113.11(i) salaries paid to essential, licensed personnel providing direct instructional 113.12services to students in that fiscal year for services rendered in the district's approved 113.13career and technical education programs; 113.14(ii) contracted services provided by a public or private agency other than a Minnesota 113.15school district or cooperative center under subdivision 7; 113.16(iii) necessary travel between instructional sites by licensed career and technical 113.17education personnel; 113.18(iv) necessary travel by licensed career and technical education personnel for 113.19vocational student organization activities held within the state for instructional purposes; 113.20(v) curriculum development activities that are part of a five-year plan for 113.21improvement based on program assessment; 113.22(vi) necessary travel by licensed career and technical education personnel for 113.23noncollegiate credit-bearing professional development; and 113.24(vii) specialized vocational instructional supplies. 113.25(b) Up to ten percent of a district's career and technical levy new text begin aid new text end may be spent on 113.26equipment purchases. Districts using the career and technical levy new text begin aid new text end for equipment 113.27purchases must report to the department on the improved learning opportunities for 113.28students that result from the investment in equipment. 113.29(c) The district must recognize the full amount of this levy as revenue for the fiscal 113.30year in which it is certified. 113.31    Subd. 2. Allocation from cooperative centers and intermediate districts. For 113.32purposes of this section, a cooperative center or an intermediate district must allocate its 113.33approved expenditures for career and technical education programs among participating 113.34districts. 113.35    Subd. 3. Levy new text begin Aid new text end guarantee. Notwithstanding subdivision 1, the career and 113.36technical education levy new text begin aid new text end for a district is not less than the lesser of: 114.1(1) the district's career and technical education levy authority new text begin revenue new text end for the 114.2previous fiscal year; or 114.3(2) 100 percent of the approved expenditures for career and technical programs 114.4included in subdivision 1, paragraph (b), for the new text begin prior new text end fiscal year in which the levy is 114.5certified. 114.6    Subd. 4. District reports. Each district or cooperative center must report data to the 114.7department for all career and technical education programs as required by the department 114.8to implement the career and technical levy formula. 114.9    Subd. 5. Allocation from districts participating in agreements for secondary 114.10education or interdistrict cooperation. For purposes of this section, a district with a 114.11career and technical program approved under this section that participates in an agreement 114.12under section 123A.30 or 123A.32 must allocate its levy authority under this section 114.13among participating districts. 114.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aid payments for fiscal year new text end 114.15 new text begin 2014 and thereafter. new text end 114.16    Sec. 4. Minnesota Statutes 2008, section 124D.59, subdivision 2, is amended to read: 114.17    Subd. 2. Pupil of limited English proficiency. (a) "Pupil of limited English 114.18proficiency" means a pupil in kindergarten through grade 12 who meets the following 114.19requirements: 114.20(1) the pupil, as declared by a parent or guardian first learned a language other than 114.21English, comes from a home where the language usually spoken is other than English, or 114.22usually speaks a language other than English; and 114.23(2) the pupil is determined by developmentally appropriate measures, which might 114.24include observations, teacher judgment, parent recommendations, or developmentally 114.25appropriate assessment instruments, to lack the necessary English skills to participate 114.26fully in classes taught in English. 114.27(b) Notwithstanding paragraph (a), a pupil in grades 4 through 12 who was enrolled 114.28in a Minnesota public school on the dates during the previous school year when a 114.29commissioner provided assessment that measures the pupil's emerging academic English 114.30was administered, shall not be counted as a pupil of limited English proficiency in 114.31calculating limited English proficiency pupil units under section 126C.05, subdivision 114.3217 , and shall not generate state limited English proficiency aid under section 124D.65, 114.33subdivision 5 , unless the pupil scored below the state cutoff score on an assessment 114.34measuring emerging academic English provided by the commissioner during the previous 114.35school year. 115.1(c) Notwithstanding paragraphs (a) and (b), a pupil in kindergarten through grade 12 115.2shall not be counted as a pupil of limited English proficiency in calculating limited English 115.3proficiency pupil units under section 126C.05, subdivision 17, and shall not generate state 115.4limited English proficiency aid under section 124D.65, subdivision 5, if: 115.5(1) the pupil is not enrolled during the current fiscal year in an educational program 115.6for pupils of limited English proficiency in accordance with sections 124D.58 to 124D.64; 115.7or new text begin . new text end 115.8(2) the pupil has generated five or more years of average daily membership in 115.9Minnesota public schools since July 1, 1996. 115.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for revenue for fiscal year 2014 new text end 115.11 new text begin and later. new text end 115.12    Sec. 5. Minnesota Statutes 2008, section 124D.65, subdivision 5, is amended to read: 115.13    Subd. 5. School district LEP revenue. (a) A district's limited English proficiency 115.14programs revenue equals the product of new text begin : new text end (1) $700 in fiscal year 2004 and later times new text begin .2; new text end 115.15(2) new text begin the basic formula allowance for that year; and (3) new text end the greater of 20 or the adjusted 115.16marginal cost average daily membership of eligible pupils of limited English proficiency 115.17enrolled in the district during the current fiscal year. 115.18(b) A pupil ceases to generate state limited English proficiency aid in the school 115.19year following the school year in which the pupil attains the state cutoff score on a 115.20commissioner-provided assessment that measures the pupil's emerging academic English. 115.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for revenue for fiscal year 2014 new text end 115.22 new text begin and later. new text end 115.23    Sec. 6. Minnesota Statutes 2008, section 125A.76, subdivision 5, is amended to read: 115.24    Subd. 5. School district special education aid. A school district's special education 115.25aid for fiscal year 2008 and later equals the state total special education aid times the ratio 115.26of the district's new text begin its new text end initial special education aid to the state total initial special education aid. 115.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for revenue for fiscal year 2014 new text end 115.28 new text begin and later. new text end 115.29    Sec. 7. Minnesota Statutes 2008, section 125A.79, subdivision 7, is amended to read: 115.30    Subd. 7. District special education excess cost aid. A district's special education 115.31excess cost aid for fiscal year 2002 and later equals the state total special education excess 116.1cost aid times the ratio of the district's new text begin its new text end initial excess cost aid to the state total initial 116.2excess cost aid. 116.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for revenue for fiscal year 2014 new text end 116.4 new text begin and later. new text end 116.5    Sec. 8. Minnesota Statutes 2008, section 126C.01, is amended by adding a subdivision 116.6to read: 116.7     new text begin Subd. 2a. new text end new text begin Adjusted net tax capacity equalizing factor. new text end new text begin The adjusted net tax new text end 116.8 new text begin capacity equalizing factor equals the quotient derived by dividing the total adjusted net tax new text end 116.9 new text begin capacity of all school districts in the state for the year before the year the levy is certified new text end 116.10 new text begin by the total number of adjusted pupil units in the state for the current school year. new text end 116.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2013 and later. new text end 116.12    Sec. 9. Minnesota Statutes 2008, section 126C.01, is amended by adding a subdivision 116.13to read: 116.14     new text begin Subd. 3a. new text end new text begin Referendum market value equalizing factor. new text end new text begin The referendum market new text end 116.15 new text begin value equalizing factor equals the quotient derived by dividing the total referendum new text end 116.16 new text begin market value of all school districts in the state for the year before the year the levy is new text end 116.17 new text begin certified by the total number of resident pupil units in the state for the current school year. new text end 116.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2013. new text end 116.19    Sec. 10. Minnesota Statutes 2008, section 126C.01, is amended by adding a 116.20subdivision to read: 116.21     new text begin Subd. 5a. new text end new text begin Location equity index. new text end new text begin (a) A school district's location equity index new text end 116.22 new text begin equals each district's composite wage level divided by the statewide average wage for the new text end 116.23 new text begin same period. The composite wage level for a school district equals the sum of 50 percent new text end 116.24 new text begin of the district's county wage level and 50 percent of the district's economic development new text end 116.25 new text begin region composite wage level. The composite wage level is computed by using the most new text end 116.26 new text begin recent three-year weighted wage data. new text end 116.27 new text begin (b) A school district's location equity index must not be less than .9 or greater than new text end 116.28 new text begin 1.05. new text end 116.29 new text begin (c) The commissioner of education annually must recalculate the indexes in this new text end 116.30 new text begin section. For purposes of this subdivision, the commissioner must locate a school district new text end 116.31 new text begin with boundaries that cross county borders in the county that generates the highest location new text end 116.32 new text begin equity index for that district. new text end 117.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for revenue for fiscal year 2014 new text end 117.2 new text begin and later. new text end 117.3    Sec. 11. Minnesota Statutes 2008, section 126C.05, subdivision 1, is amended to read: 117.4    Subdivision 1. Pupil unit. Pupil units for each Minnesota resident pupil under the 117.5age of 21 or who meets the requirements of section 120A.20, subdivision 1, paragraph (c), 117.6in average daily membership enrolled in the district of residence, in another district under 117.7sections 123A.05 to 123A.08, 124D.03, 124D.08, or 124D.68; in a charter school under 117.8section 124D.10; or for whom the resident district pays tuition under section 123A.18, 117.9123A.22 , 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, subdivision 4, 124D.04, 117.10124D.05 , 125A.03 to 125A.24, 125A.51, or 125A.65, shall be counted according to this 117.11subdivision. 117.12    (a) A prekindergarten pupil with a disability who is enrolled in a program approved 117.13by the commissioner and has an individual education plan is counted as the ratio of the 117.14number of hours of assessment and education service to 825 times 1.25 with a minimum 117.15average daily membership of 0.28, but not more than 1.25 pupil units. 117.16    (b) A prekindergarten pupil who is assessed but determined not to be disabled is 117.17counted as the ratio of the number of hours of assessment service to 825 times 1.25. 117.18    (c) A kindergarten pupil with a disability who is enrolled in a program approved 117.19by the commissioner is counted as the ratio of the number of hours of assessment and 117.20education services required in the fiscal year by the pupil's individual education program 117.21plan to 875, but not more than one. 117.22    (d) A kindergarten pupil who is not included in paragraph (c) is counted as .612 new text begin 1.0 new text end 117.23pupil units. 117.24    (e) A pupil who is in any of grades 1 to 3 is counted as new text begin 1.0 new text end pupil units for 117.25fiscal year 2000 and thereafter. 117.26    (f) A pupil who is any of grades 4 to 6 is counted as new text begin 1.0 new text end pupil units for fiscal 117.27year 1995 and thereafter. 117.28    (g) A pupil who is in any of grades 7 to 12 is counted as new text begin 1.0 new text end pupil units. 117.29    (h) A pupil who is in the postsecondary enrollment options program is counted as 117.301.3 new text begin 1.0 new text end pupil units. 117.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for revenue for fiscal year 2014 new text end 117.32 new text begin and later. new text end 117.33    Sec. 12. Minnesota Statutes 2008, section 126C.05, subdivision 3, is amended to read: 118.1    Subd. 3. Compensation revenue pupil units. Compensation revenue pupil units 118.2for fiscal year 1998 and thereafter must be computed according to this subdivision. 118.3(a) The compensation revenue concentration percentage for each building in a 118.4district equals the product of 100 times the ratio of: 118.5(1) the sum of the number of pupils enrolled in the building new text begin district new text end eligible to receive 118.6free lunch plus one-half of the pupils eligible to receive reduced priced new text begin or reduced-price new text end 118.7lunch on October 1 of the previous fiscal year; to 118.8(2) the number of pupils enrolled in the building new text begin district new text end on October 1 of the 118.9previous fiscal year. 118.10(b) The compensation revenue pupil weighting factor for a building equals the 118.11lesser of one or the quotient obtained by dividing the building's compensation revenue 118.12concentration percentage by 80.0. 118.13(c) The compensation revenue pupil units for a building new text begin district new text end equals the product of: 118.14(1) the sum of the number of pupils enrolled in the building new text begin district new text end eligible to receive 118.15free lunch and one-half of the pupils eligible to receive reduced priced new text begin or reduced-price new text end 118.16lunch on October 1 of the previous fiscal year; times 118.17(2) the compensation revenue pupil weighting factor for the building; times 118.18(3) .60 new text begin district new text end . 118.19(d) Notwithstanding paragraphs (a) to (c), for charter schools and contracted 118.20alternative programs in the first year of operation, compensation revenue pupil units shall 118.21be computed using data for the current fiscal year. If the charter school or contracted 118.22alternative program begins operation after October 1, compensatory revenue pupil units 118.23shall be computed based on pupils enrolled on an alternate date determined by the 118.24commissioner, and the compensation revenue pupil units shall be prorated based on the 118.25ratio of the number of days of student instruction to 170 days. 118.26(e) The percentages in this subdivision must be based on the count of individual 118.27pupils and not on a building average or minimum. 118.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for revenue for fiscal year 2014 new text end 118.29 new text begin and later. new text end 118.30    Sec. 13. Minnesota Statutes 2008, section 126C.05, subdivision 5, is amended to read: 118.31    Subd. 5. Adjusted pupil units. (a) Adjusted pupil units for a district or charter 118.32school means the sum of: 118.33(1) the number of pupil units served, according to subdivision 7, plus 118.34(2) pupil units according to subdivision 1 for whom the district or charter school 118.35pays tuition under section 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 119.1123B.88, subdivision 4 , 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65, 119.2minus 119.3(3) pupil units according to subdivision 1 for whom the district or charter school 119.4receives tuition under section 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 119.5123B.88, subdivision 4 , 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65. 119.6(b) Adjusted marginal cost pupil units means the greater of: 119.7(1) the sum of .77 times the pupil units defined in paragraph (a) for the current school 119.8year and .23 times the pupil units defined in paragraph (a) for the previous school year; or 119.9(2) the number of adjusted pupil units defined in paragraph (a) for the current school 119.10year. 119.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for revenue for fiscal year 2014 new text end 119.12 new text begin and later. new text end 119.13    Sec. 14. Minnesota Statutes 2008, section 126C.05, subdivision 6, is amended to read: 119.14    Subd. 6. Resident pupil units. (a) Resident pupil units for a district means the 119.15number of pupil units according to subdivision 1 residing in the district. 119.16(b) Resident marginal cost pupil units means the greater of: 119.17(1) the sum of .77 times the pupil units defined in paragraph (a) for the current year 119.18and .23 times the pupil units defined in paragraph (a) for the previous school year; or 119.19(2) the number of resident pupil units defined in paragraph (a) for the current school 119.20year. 119.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for revenue for fiscal year 2014 new text end 119.22 new text begin and later. new text end 119.23    Sec. 15. Minnesota Statutes 2008, section 126C.05, subdivision 8, is amended to read: 119.24    Subd. 8. Average daily membership. (a) Membership for pupils in grades 119.25kindergarten through 12 and for prekindergarten pupils with disabilities shall mean the 119.26number of pupils on the current roll of the school, counted from the date of entry until 119.27withdrawal. The date of withdrawal shall mean the day the pupil permanently leaves 119.28the school or the date it is officially known that the pupil has left or has been legally 119.29excused. However, a pupil, regardless of age, who has been absent from school for 15 119.30consecutive school days during the regular school year or for five consecutive school days 119.31during summer school or intersession classes of flexible school year programs without 119.32receiving instruction in the home or hospital shall be dropped from the roll and classified 119.33as withdrawn. Nothing in this section shall be construed as waiving the compulsory 120.1attendance provisions cited in section 120A.22. Average daily membership equals the 120.2sum for all pupils of the number of days of the school year each pupil is enrolled in the 120.3district's schools divided by the number of days the schools are in session. Days of 120.4summer school or intersession classes of flexible school year programs are only included 120.5in the computation of membership for pupils with a disability not appropriately served 120.6primarily in the regular classroom. A student must not be counted as more than 1.2 pupils 120.7in average daily membership under this section. When the initial total average daily 120.8membership exceeds 1.2 for a pupil enrolled in more than one school district during the 120.9fiscal year, each district's average daily membership must be reduced proportionately. 120.10(b) A student must not be counted as more than one pupil in average daily 120.11membership except for purposes of section 126C.10, subdivision 2a. 120.12 new text begin (c) For purposes of section 126C.10, subdivision 2a, only, a pupil's average daily new text end 120.13 new text begin membership is counted as 1.0 once a kindergarten or elementary pupil has received 960 new text end 120.14 new text begin hours of instruction during the school year and as 1.0 once a secondary student has new text end 120.15 new text begin received 1,050 hours of instruction during the school year. new text end 120.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for revenue for fiscal year 2014 new text end 120.17 new text begin and later. new text end 120.18    Sec. 16. Minnesota Statutes 2008, section 126C.05, subdivision 16, is amended to read: 120.19    Subd. 16. Free and reduced-price lunches. The commissioner shall determine the 120.20number of children eligible to receive either a free or reduced-price lunch on October 1 120.21each year. Children enrolled in a building on October 1 and determined to be eligible to 120.22receive free or reduced-price lunch by December 15 of that school year shall be counted 120.23as eligible on October 1 for purposes of subdivision 3. The commissioner may use 120.24federal definitions for these purposes and may adjust these definitions as appropriate. 120.25The commissioner may adopt reporting guidelines to assure accuracy of data counts and 120.26eligibility. Districts shall use any guidelines adopted by the commissioner. 120.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for revenue for fiscal year 2014 new text end 120.28 new text begin and later. new text end 120.29    Sec. 17. Minnesota Statutes 2008, section 126C.05, subdivision 17, is amended to read: 120.30    Subd. 17. LEP pupil units. (a) Limited English proficiency pupil units for fiscal 120.31year 2004 and thereafter shall be determined according to this subdivision. 120.32(b) The limited English proficiency concentration percentage for a district equals the 120.33product of 100 times the ratio of: 121.1(1) new text begin means new text end the number of eligible pupils of limited English proficiency in average 121.2daily membership enrolled in the district during the current fiscal year; to new text begin . new text end 121.3(2) the number of pupils in average daily membership enrolled in the district. 121.4(c) The limited English proficiency pupil units for each eligible pupil of limited 121.5English proficiency in average daily membership equals the lesser of one or the quotient 121.6obtained by dividing the limited English proficiency concentration percentage for the 121.7pupil's district of enrollment by 11.5. 121.8(d) new text begin (b) new text end Limited English proficiency pupil units shall be counted by the district of 121.9enrollment. 121.10(e) new text begin (c) new text end Notwithstanding paragraph (d) new text begin (b) new text end , for the purposes of this subdivision, 121.11pupils enrolled in a cooperative or intermediate school district shall be counted by the 121.12district of residence. 121.13(f) new text begin (d) new text end For the purposes of this subdivision, the terms defined in section 124D.59 121.14have the same meaning. 121.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for revenue for fiscal year 2014 new text end 121.16 new text begin and later. new text end 121.17    Sec. 18. new text begin [126C.09] EDUCATION FUNDING FRAMEWORK. new text end 121.18     new text begin Subdivision 1. new text end new text begin Basic formula framework; general classroom funding. new text end new text begin The new text end 121.19 new text begin general classroom funding for each school district equals the sum of the district's general new text end 121.20 new text begin education basic revenue, extended time revenue, compensatory revenue, LEP revenue, new text end 121.21 new text begin referendum replacement revenue, and special education revenue. new text end 121.22     new text begin Subd. 2. new text end new text begin District instructional services. new text end new text begin A school district's instructional services new text end 121.23 new text begin revenue equals the sum of its operating sparsity revenue, location equity revenue, and new text end 121.24 new text begin declining enrollment revenue. new text end 121.25     new text begin Subd. 3. new text end new text begin District support services. new text end new text begin A school district's support services revenue new text end 121.26 new text begin equals the sum of its operating capital revenue, alternative facilities revenue, integration new text end 121.27 new text begin revenue, and transportation revenue. new text end 121.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for revenue for fiscal year 2014 new text end 121.29 new text begin and later. new text end 121.30    Sec. 19. Minnesota Statutes 2008, section 126C.10, subdivision 1, is amended to read: 121.31    Subdivision 1. General education revenue. new text begin (a) new text end For fiscal year 2006 and later new text begin new text end 121.32 new text begin through 2013 new text end , the general education revenue for each district equals the sum of the 121.33district's basic revenue, extended time revenue, gifted and talented revenue, basic skills 122.1revenue, training and experience revenue, secondary sparsity revenue, elementary sparsity 122.2revenue, transportation sparsity revenue, total operating capital revenue, equity revenue, 122.3alternative teacher compensation revenue, and transition revenue. 122.4 new text begin (b) For fiscal years 2014 and later, a school district's general education revenue new text end 122.5 new text begin equals the sum of its basic revenue, extended time revenue, declining enrollment revenue, new text end 122.6 new text begin basic skills revenue, location equity revenue, referendum replacement revenue, secondary new text end 122.7 new text begin sparsity revenue, elementary sparsity revenue, transportation revenue, and total operating new text end 122.8 new text begin capital revenue. new text end 122.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for revenue for fiscal year 2014 new text end 122.10 new text begin and later. new text end 122.11    Sec. 20. Minnesota Statutes 2008, section 126C.10, subdivision 2, is amended to read: 122.12    Subd. 2. Basic revenue. new text begin (a) new text end The basic revenue for each district equals the formula 122.13allowance times the adjusted marginal cost pupil units for the school year. 122.14 new text begin (b) new text end The formula allowance for fiscal year 2007 is $4,974. The formula allowance for 122.15fiscal year 2008 is $5,074 and the formula allowance for fiscal year 2009 and subsequent 122.16years is $5,124. 122.17 new text begin (c) The formula allowance for fiscal year 2014 is $7,500. The formula allowance new text end 122.18 new text begin for fiscal year 2015 and later equals the formula allowance for the previous year times new text end 122.19 new text begin the sum of 1.0 and the greater of zero or the ratio of implicit price deflator, as defined in new text end 122.20 new text begin section 275.70, subdivision 2, for the most recent year to the implicit price deflator for new text end 122.21 new text begin the previous year. new text end 122.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for revenue for fiscal year 2014 new text end 122.23 new text begin and later. new text end 122.24    Sec. 21. Minnesota Statutes 2008, section 126C.10, subdivision 2a, is amended to read: 122.25    Subd. 2a. Extended time revenue. (a) A school district's extended time revenue 122.26is equal to the product of $4,601 new text begin the formula allowance for that year new text end and the sum of 122.27the adjusted marginal cost pupil units of the district for each pupil in average daily 122.28membership in excess of 1.0 and less than 1.2 according to section 126C.05, subdivision 8. 122.29(b) A school district's extended time revenue may be used for extended day 122.30programs, extended week programs, summer school, and other programming authorized 122.31under the learning year program. 122.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for revenue for fiscal year 2014 new text end 122.33 new text begin and later. new text end 123.1    Sec. 22. Minnesota Statutes 2008, section 126C.10, is amended by adding a 123.2subdivision to read: 123.3     new text begin Subd. 2c. new text end new text begin Declining enrollment revenue. new text end new text begin A school district's declining enrollment new text end 123.4 new text begin revenue equals the greater of zero or the product of: (1) the basic formula allowance for new text end 123.5 new text begin that year; and (2) the difference between the mean average adjusted pupil units for the new text end 123.6 new text begin three preceding years and the adjusted pupil units for the current year. new text end 123.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for revenue for fiscal year 2014 new text end 123.8 new text begin and later. new text end 123.9    Sec. 23. Minnesota Statutes 2008, section 126C.10, is amended by adding a 123.10subdivision to read: 123.11     new text begin Subd. 2d. new text end new text begin Location equity revenue. new text end new text begin A school district's location equity revenue new text end 123.12 new text begin equals the product of: new text end 123.13 new text begin (1) .50; new text end 123.14 new text begin (2) the basic formula allowance for that year; new text end 123.15 new text begin (3) the district's adjusted pupil units for that year; and new text end 123.16 new text begin (4) the district's location equity index minus .9. new text end 123.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for revenue for fiscal year 2014 new text end 123.18 new text begin and later. new text end 123.19    Sec. 24. Minnesota Statutes 2008, section 126C.10, is amended by adding a 123.20subdivision to read: 123.21     new text begin Subd. 2e. new text end new text begin Referendum replacement revenue. new text end new text begin A school district's referendum new text end 123.22 new text begin replacement revenue equals $500 times the district's adjusted pupil units for that year. new text end 123.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for revenue for fiscal year 2014 new text end 123.24 new text begin and later. new text end 123.25    Sec. 25. Minnesota Statutes 2008, section 126C.10, subdivision 3, is amended to read: 123.26    Subd. 3. Compensatory education revenue. (a) The compensatory education 123.27revenue for each building in the district equals new text begin the greater of: (1) $2,500 times the district's new text end 123.28 new text begin enrollment of students eligible for free or reduced-price meals under section 126C.05, new text end 123.29 new text begin subdivision 3, paragraph (a), clause (1); or (2) 40 percent of new text end the formula allowance minus 123.30$415 times the compensation revenue pupil units computed according to section 126C.05, 123.31subdivision 3 . Revenue shall be paid to the district and must be allocated according to 123.32section 126C.15, subdivision 2. 124.1(b) When the district contracting with an alternative program under section 124D.69 124.2changes prior to the start of a school year, the compensatory revenue generated by pupils 124.3attending the program shall be paid to the district contracting with the alternative program 124.4for the current school year, and shall not be paid to the district contracting with the 124.5alternative program for the prior school year. 124.6(c) When the fiscal agent district for an area learning center changes prior to the start 124.7of a school year, the compensatory revenue shall be paid to the fiscal agent district for the 124.8current school year, and shall not be paid to the fiscal agent district for the prior school year. 124.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for revenue for fiscal year 2014 new text end 124.10 new text begin and later. new text end 124.11    Sec. 26. Minnesota Statutes 2008, section 126C.10, subdivision 4, is amended to read: 124.12    Subd. 4. Basic skills revenue. A school district's basic skills revenue equals the 124.13sum of: 124.14(1) compensatory revenue under subdivision 3; plus 124.15(2) limited English proficiency revenue under section 124D.65, subdivision 5; plus new text begin . new text end 124.16(3) $250 times the limited English proficiency pupil units under section 126C.05, 124.17subdivision 17 . 124.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for revenue for fiscal year 2014 new text end 124.19 new text begin and later. new text end 124.20    Sec. 27. Minnesota Statutes 2008, section 126C.10, subdivision 6, is amended to read: 124.21    Subd. 6. Definitions. The definitions in this subdivision apply only to subdivisions 124.227 and 8. 124.23(a) "High school" means a public secondary school, except a charter school under 124.24section 124D.10, that has pupils enrolled in at least the 10th, 11th, and 12th grades. If 124.25there is no high school in the district and the school is at least 19 new text begin 15 new text end miles from the next 124.26nearest school, the commissioner must designate one school in the district as a high school 124.27for the purposes of this section. 124.28(b) "Secondary average daily membership" means, for a district that has only one 124.29high school, the average daily membership of pupils served in grades 7 through 12. For a 124.30district that has more than one high school, "secondary average daily membership" for 124.31each high school means the product of the average daily membership of pupils served in 124.32grades 7 through 12 in the high school, times the ratio of six to the number of grades 124.33in the high school. 125.1(c) "Attendance area" means the total surface area of the district, in square miles, 125.2divided by the number of high schools in the district. For a district that does not operate 125.3a high school and is less than 19 new text begin 15 new text end miles from the nearest operating high school, the 125.4attendance area equals zero. 125.5(d) "Isolation index" for a high school means the square root of 55 percent of the 125.6attendance area plus the distance in miles, according to the usually traveled routes, 125.7between the high school and the nearest high school. For a district in which there is located 125.8land defined in section 84A.01, 84A.20, or 84A.31, the distance in miles is the sum of: 125.9(1) the square root of one-half of the attendance area; and 125.10(2) the distance from the border of the district to the nearest high school. 125.11(e) "Qualifying high school" means a high school that has an isolation index greater 125.12than 23 and that has secondary average daily membership of less than 400. 125.13(f) "Qualifying elementary school" means a public elementary school, except a 125.14charter school under section 124D.10, that is located 19 new text begin 15 new text end miles or more from the nearest 125.15elementary school or from the nearest elementary school within the district and, in either 125.16case, has an elementary average daily membership of an average of 20 or fewer per grade. 125.17(g) "Elementary average daily membership" means, for a district that has only 125.18one elementary school, the average daily membership of pupils served in kindergarten 125.19through grade 6. For a district that has more than one elementary school, "average daily 125.20membership" for each school means the average daily membership of pupils served in 125.21kindergarten through grade 6 multiplied by the ratio of seven to the number of grades 125.22in the elementary school. 125.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for revenue for fiscal year 2014 new text end 125.24 new text begin and later. new text end 125.25    Sec. 28. Minnesota Statutes 2008, section 126C.10, subdivision 13, is amended to read: 125.26    Subd. 13. Total operating capital new text begin and technology new text end revenue. (a) Total operating 125.27capital revenue for a district equals new text begin : (1) $50 times the adjusted pupil units for the school new text end 125.28 new text begin year for technology purposes; (2) for any district not participating in the alternative new text end 125.29 new text begin facilities program under section 123B.59, $600 times the adjusted pupil units for deferred new text end 125.30 new text begin maintenance and health and safety purposes under sections 123B.57 and 123B.59; (3) new text end the 125.31amount determined under paragraph (b) or (c), plus $73 new text begin ; and (4) $100 new text end times the adjusted 125.32marginal cost pupil units for the school year. The revenue must be placed in a reserved 125.33account in the general fund and may only be used according to subdivision 14. 125.34(b) Capital revenue for a district equals $100 times the district's maintenance cost 125.35index times its adjusted marginal cost pupil units for the school year. 126.1(c) The revenue for a district that operates a program under section 124D.128, is 126.2increased by an amount equal to $30 times the number of marginal cost new text begin adjusted new text end pupil 126.3units served at the site where the program is implemented. 126.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for revenue for fiscal year 2014 new text end 126.5 new text begin and later. new text end 126.6    Sec. 29. Minnesota Statutes 2008, section 126C.10, subdivision 14, is amended to read: 126.7    Subd. 14. Uses of total operating capital revenue. new text begin Technology revenue may only new text end 126.8 new text begin be used for purposes in clauses (18), (19), (21), (23), and (24). new text end Total operating capital 126.9revenue may be used only for the following purposes: 126.10(1) to acquire land for school purposes; 126.11(2) to acquire or construct buildings for school purposes; 126.12(3) to rent or lease buildings, including the costs of building repair or improvement 126.13that are part of a lease agreement; 126.14(4) to improve and repair school sites and buildings, and equip or reequip school 126.15buildings with permanent attached fixtures, including library media centers; 126.16(5) for a surplus school building that is used substantially for a public nonschool 126.17purpose; 126.18(6) to eliminate barriers or increase access to school buildings by individuals with a 126.19disability; 126.20(7) to bring school buildings into compliance with the State Fire Code adopted 126.21according to chapter 299F; 126.22(8) to remove asbestos from school buildings, encapsulate asbestos, or make 126.23asbestos-related repairs; 126.24(9) to clean up and dispose of polychlorinated biphenyls found in school buildings; 126.25(10) to clean up, remove, dispose of, and make repairs related to storing heating fuel 126.26or transportation fuels such as alcohol, gasoline, fuel oil, and special fuel, as defined 126.27in section 296A.01; 126.28(11) for energy audits for school buildings and to modify buildings if the audit 126.29indicates the cost of the modification can be recovered within ten years; 126.30(12) to improve buildings that are leased according to section 123B.51, subdivision 4; 126.31(13) to pay special assessments levied against school property but not to pay 126.32assessments for service charges; 126.33(14) to pay principal and interest on state loans for energy conservation according to 126.34section 216C.37 or loans made under the Douglas J. Johnson Economic Protection Trust 126.35Fund Act according to sections 298.292 to 298.298; 127.1(15) to purchase or lease interactive telecommunications equipment; 127.2(16) by board resolution, to transfer money into the debt redemption fund to: (i) 127.3pay the amounts needed to meet, when due, principal and interest payments on certain 127.4obligations issued according to chapter 475; or (ii) pay principal and interest on debt 127.5service loans or capital loans according to section 126C.70; 127.6(17) to pay operating capital-related assessments of any entity formed under a 127.7cooperative agreement between two or more districts; 127.8(18) to purchase or lease computers and related materials, copying machines, 127.9telecommunications equipment, and other noninstructional equipment; 127.10(19) to purchase or lease assistive technology or equipment for instructional 127.11programs; 127.12(20) to purchase textbooks; 127.13(21) to purchase new and replacement library media resources or technology; 127.14(22) to purchase vehicles; 127.15(23) to purchase or lease telecommunications equipment, computers, and related 127.16equipment for integrated information management systems for: 127.17(i) managing and reporting learner outcome information for all students under a 127.18results-oriented graduation rule; 127.19(ii) managing student assessment, services, and achievement information required 127.20for students with individual education plans; and 127.21(iii) other classroom information management needs; and 127.22(24) to pay personnel costs directly related to the acquisition, operation, and 127.23maintenance of telecommunications systems, computers, related equipment, and network 127.24and applications software. 127.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for revenue for fiscal year 2014. new text end 127.26    Sec. 30. Minnesota Statutes 2008, section 126C.10, subdivision 18, is amended to read: 127.27    Subd. 18. Transportation sparsity revenue allowance. (a) A district's 127.28transportation sparsity allowance equals the greater of zero or the result of the following 127.29computation: 127.30(i) Multiply the formula allowance according to subdivision 2, by .1469. 127.31(ii) Multiply the result in clause (i) by the district's sparsity index raised to the 127.3226/100 power. 127.33(iii) Multiply the result in clause (ii) by the district's density index raised to the 127.3413/100 power. 127.35(iv) Multiply the formula allowance according to subdivision 2, by .0485. 128.1(v) Subtract the result in clause (iv) from the result in clause (iii). 128.2(b) Transportation sparsity revenue is equal to the transportation sparsity allowance 128.3times the adjusted marginal cost pupil units. 128.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for fiscal year 2014 and later. new text end 128.5    Sec. 31. Minnesota Statutes 2008, section 126C.10, is amended by adding a 128.6subdivision to read: 128.7     new text begin Subd. 18a. new text end new text begin Transportation revenue. new text end new text begin (a) A school district's transportation revenue new text end 128.8 new text begin equals the sum of its transportation sparsity revenue, hazardous transportation revenue, new text end 128.9 new text begin and bus purchase revenue. new text end 128.10 new text begin (b) A school district's transportation sparsity revenue equals its transportation new text end 128.11 new text begin sparsity allowance times its adjusted pupil units for that year. new text end 128.12 new text begin (c) A school district's hazardous transportation aid equals the amount necessary to new text end 128.13 new text begin provide transportation services to students facing hazardous transportation conditions. A new text end 128.14 new text begin district's hazardous transportation aid must not exceed 20 percent of the district's total new text end 128.15 new text begin regular to and from school transportation costs for that year. For any year, a school new text end 128.16 new text begin district may receive aid under this paragraph only after the school board has considered new text end 128.17 new text begin the comprehensive plan for hazardous transportation submitted by the district's pupil new text end 128.18 new text begin transportation safety committee at a regularly scheduled meeting of the school board. The new text end 128.19 new text begin comprehensive plan may not be adopted until after the board has allowed the public new text end 128.20 new text begin reasonable time to testify on the plan. new text end 128.21 new text begin (d) A school district's bus purchase revenue equals five percent of the district's new text end 128.22 new text begin spending on transportation services for the previous fiscal year. new text end 128.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for revenue for fiscal year 2014 new text end 128.24 new text begin and later. new text end 128.25    Sec. 32. new text begin [126C.115] INNOVATION REVENUE. new text end 128.26     new text begin (a) A school district must use its innovation revenue to implement evidence-based new text end 128.27 new text begin innovation premised on research-based curriculum and instruction and other education new text end 128.28 new text begin programs and practices, including best teaching practices, that are known to improve new text end 128.29 new text begin academic performance for diverse groups of students. If a school district demonstrates new text end 128.30 new text begin low growth and needs to improve students' current achievement and educational growth, new text end 128.31 new text begin as measured by a growth-based value-added system under section 120B.35, the school new text end 128.32 new text begin district must submit a plan to the commissioner, developed in consultation with interested new text end 128.33 new text begin parents, that describes how the district proposes to use its innovation revenue to new text end 129.1 new text begin supplement state reading requirements under section 120B.12, subdivision 1, and state new text end 129.2 new text begin math and science requirements under section 120B.023, subdivision 2, paragraphs (b) and new text end 129.3 new text begin (d), and improve student outcomes. The plan must: new text end 129.4     new text begin (1) identify specific education goals, consistent with this section, and the indicators new text end 129.5 new text begin to demonstrate progress toward achieving those goals, which may include a value-added new text end 129.6 new text begin assessment model under sections 120B.35 and 120B.362; new text end 129.7     new text begin (2) supplement current district initiatives that may transform district programs, new text end 129.8 new text begin practices, and processes sufficient to significantly improve student outcomes, which new text end 129.9 new text begin may include, among other initiatives, an organizational assessment and performance new text end 129.10 new text begin improvement process under section 120B.3625; and new text end 129.11     new text begin (3) demonstrate how innovation revenue helps narrow and eliminate differences in new text end 129.12 new text begin student academic achievement in reading, math, and science based on student measures of new text end 129.13 new text begin mobility, attendance, race and ethnicity, gender, English language learner status, eligibility new text end 129.14 new text begin for free or reduced price lunch, and special education, among other outcomes. new text end 129.15     new text begin (b) After transmitting its plan to the commissioner, a district must spend its new text end 129.16 new text begin innovation revenue effectively and efficiently, consistent with its plan. A school district new text end 129.17 new text begin that submits an innovation revenue plan under paragraph (a) must report annually by June new text end 129.18 new text begin 30 to the commissioner and post on the district's official Web site reliable and accessible new text end 129.19 new text begin information and supporting longitudinal data showing the amount of progress the district new text end 129.20 new text begin made in the immediately preceding school year and previous school years in realizing its new text end 129.21 new text begin innovation revenue goals. The commissioner must analyze the data from the annual new text end 129.22 new text begin district reports and post the analysis on the department's official Web site. new text end 129.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for revenue for fiscal year 2014 new text end 129.24 new text begin and later. new text end 129.25    Sec. 33. Minnesota Statutes 2008, section 126C.13, subdivision 4, is amended to read: 129.26    Subd. 4. General education aid. For fiscal years 2007 and later, A district's general 129.27education aid is the sum of the following amounts new text begin equals its new text end : 129.28    (1) general education revenue, excluding equity revenue, total operating capital 129.29revenue, alternative teacher compensation revenue, and transition revenue; 129.30    (2) operating capital aid under section 126C.10, subdivision 13b; 129.31    (3) equity aid under section 126C.10, subdivision 30; 129.32    (4) alternative teacher compensation aid under section 126C.10, subdivision 36; 129.33    (5) transition aid under section 126C.10, subdivision 33 new text begin for that year new text end ; 129.34    (6) new text begin (2) new text end shared time aid under section 126C.01, subdivision 7; 129.35    (7) new text begin (3) new text end referendum aid under section 126C.17, subdivisions 7 and 7a; and 130.1    (8) new text begin (4) new text end online learning aid according to section 124D.096. 130.2 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for revenue for fiscal year 2014 new text end 130.3 new text begin and later. new text end 130.4    Sec. 34. Minnesota Statutes 2008, section 126C.13, subdivision 5, is amended to read: 130.5    Subd. 5. Uses of revenue. Except as provided in sections 126C.10, subdivision 130.614 ; ; and , new text begin (a) new text end General education revenue may be used during the 130.7regular school year and the summer for general and special school purposes new text begin and for new text end 130.8 new text begin prekindergarten programs except as limited by paragraph (b) new text end . 130.9 new text begin (b) General education revenue set-asides include: new text end 130.10 new text begin (1) 1.0 percent of basic revenue must be used only for gifted and talented activities new text end 130.11 new text begin consistent with section 120B.15; new text end 130.12 new text begin (2) 5.0 percent of basic revenue must be used only to implement a district's new text end 130.13 new text begin innovative revenue program activities under section 126C.115; new text end 130.14 new text begin (3) basic skills revenue must be used according to section 126C.15; and new text end 130.15 new text begin (4) operating capital revenue must be spent according to section 126C.10, new text end 130.16 new text begin subdivision 14. new text end 130.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for revenue for fiscal year 2014 new text end 130.18 new text begin and later. new text end 130.19    Sec. 35. Minnesota Statutes 2008, section 126C.17, subdivision 1, is amended to read: 130.20    Subdivision 1. Referendum allowance. (a) For fiscal year 2003 and later, a district's 130.21initial referendum revenue allowance equals the sum of the allowance under section 130.22126C.16, subdivision 2, plus any additional allowance per resident marginal cost pupil 130.23unit authorized under subdivision 9 before May 1, 2001, for fiscal year 2002 and later, 130.24plus the referendum conversion allowance approved under subdivision 13, minus $415. 130.25For districts with more than one referendum authority, the reduction must be computed 130.26separately for each authority. The reduction must be applied first to the referendum 130.27conversion allowance and next to the authority with the earliest expiration date. A 130.28district's initial referendum revenue allowance may not be less than zero. 130.29(b) For fiscal year 2003, a district's referendum revenue allowance equals the initial 130.30referendum allowance plus any additional allowance per resident marginal cost pupil unit 130.31authorized under subdivision 9 between April 30, 2001, and December 30, 2001, for 130.32fiscal year 2003 and later. 131.1(c) For fiscal year 2004 and later, A district's referendum revenue allowance equals 131.2the sum of: 131.3(1) the product of (i) the ratio of the resident marginal cost pupil units the district 131.4would have counted for fiscal year 2004 under Minnesota Statutes 2002, section , 131.5to the district's resident marginal cost pupil units for fiscal year 2004, times (ii) the new text begin greater new text end 131.6 new text begin of zero or the district's new text end initial referendum allowance plus any additional allowance per 131.7resident marginal cost pupil unit authorized under subdivision 9 between April 30, 2001, 131.8and May 30, 2003, for fiscal year 2003 and later new text begin 2014 less $500 new text end , plus 131.9(2) any additional allowance per resident marginal cost pupil unit authorized under 131.10subdivision 9 after May 30, 2003 new text begin 2012 new text end , for fiscal year 2005 new text begin 2014 new text end and later. 131.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for revenue for fiscal year 2014 new text end 131.12 new text begin and later. new text end 131.13    Sec. 36. Minnesota Statutes 2008, section 126C.17, subdivision 5, is amended to read: 131.14    Subd. 5. Referendum equalization revenue. (a) For fiscal year 2003 and later, 131.15A district's referendum equalization revenue equals the sum of the first tier referendum 131.16equalization revenue and the second tier referendum equalization revenue. 131.17(b) A district's first tier referendum equalization revenue equals the district's first 131.18tier referendum equalization allowance times the district's resident marginal cost pupil 131.19units for that year. 131.20(c) For fiscal year 2006, a district's first tier referendum equalization allowance 131.21equals the lesser of the district's referendum allowance under subdivision 1 or $500. For 131.22fiscal year 2007, a district's first tier referendum equalization allowance equals the lesser 131.23of the district's referendum allowance under subdivision 1 or $600. 131.24For fiscal year 2008 and later, new text begin (b) new text end A district's first tier referendum equalization 131.25allowance equals the lesser of the district's referendum allowance under subdivision 1 131.26or $700. 131.27(d) new text begin (c) new text end A district's second tier referendum equalization revenue equals the district's 131.28second tier referendum equalization allowance times the district's resident marginal cost 131.29pupil units for that year. 131.30(e) For fiscal year 2006, a district's second tier referendum equalization allowance 131.31equals the lesser of the district's referendum allowance under subdivision 1 or 18.6 percent 131.32of the formula allowance, minus the district's first tier referendum equalization allowance. 131.33For fiscal year 2007 and later, new text begin (d) new text end A district's second tier referendum equalization 131.34allowance equals the lesser of the district's referendum allowance under subdivision 1 or 132.126 percent of the formula allowance, minus the district's first tier referendum equalization 132.2allowance. 132.3(f) new text begin (e) new text end Notwithstanding paragraph (e) new text begin (d) new text end , the second tier referendum allowance for a 132.4district qualifying for secondary sparsity revenue under section 126C.10, subdivision 7, or 132.5elementary sparsity revenue under section 126C.10, subdivision 8, equals the district's 132.6referendum allowance under subdivision 1 minus the district's first tier referendum 132.7equalization allowance. 132.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for revenue for fiscal year 2014. new text end 132.9    Sec. 37. Minnesota Statutes 2008, section 126C.17, subdivision 6, is amended to read: 132.10    Subd. 6. Referendum equalization levy. (a) For fiscal year 2003 and later, 132.11A district's referendum equalization levy equals the sum of the first tier referendum 132.12equalization levy and the second tier referendum equalization levy. 132.13(b) A district's first tier referendum equalization levy equals the district's first tier 132.14referendum equalization revenue times the lesser of one or the ratio of the district's 132.15referendum market value per resident marginal cost pupil unit to $476,000 new text begin 100 percent of new text end 132.16 new text begin the statewide referendum market value equalizing factor new text end . 132.17(c) A district's second tier referendum equalization levy equals the district's second 132.18tier referendum equalization revenue times the lesser of one or the ratio of the district's 132.19referendum market value per resident marginal cost pupil unit to $270,000 new text begin 60 percent of new text end 132.20 new text begin the statewide referendum market value equalizing factor new text end . 132.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for revenue for fiscal year 2014. new text end 132.22    Sec. 38. Minnesota Statutes 2008, section 126C.20, is amended to read: 132.23126C.20 ANNUAL GENERAL EDUCATION AID APPROPRIATION. 132.24There is annually appropriated from the general fund to the department the amount new text begin new text end 132.25 new text begin amounts new text end necessary for new text begin : (1) new text end general education aid new text begin ; (2) special education aid; (3) debt new text end 132.26 new text begin service aid; and (4) the school bond agricultural credit new text end . This amount new text begin These amounts new text end must 132.27be reduced by the amount of any money specifically appropriated for the same purpose 132.28in any year from any state fund. 132.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for revenue for fiscal year 2014 new text end 132.30 new text begin and later. new text end 132.31    Sec. 39. Minnesota Statutes 2008, section 126C.40, subdivision 1, is amended to read: 133.1    Subdivision 1. To lease building or land. (a) When an independent or a special 133.2school district or a group of independent or special school districts finds it economically 133.3advantageous to rent or lease a building or land for any instructional purposes new text begin or new text end 133.4 new text begin administrative purpose, new text end or for school storage or furniture repair, and it determines that 133.5the operating capital revenue authorized under section 126C.10, subdivision 13, is 133.6insufficient for this purpose, it may apply to the commissioner for permission to make 133.7an additional capital expenditure levy for this purpose. An application for permission to 133.8levy under this subdivision must contain financial justification for the proposed levy, the 133.9terms and conditions of the proposed lease, and a description of the space to be leased 133.10and its proposed use. 133.11    (b) The criteria for approval of applications to levy under this subdivision must 133.12include: the reasonableness of the price, the appropriateness of the space to the proposed 133.13activity, the feasibility of transporting pupils to the leased building or land, conformity 133.14of the lease to the laws and rules of the state of Minnesota, and the appropriateness of 133.15the proposed lease to the space needs and the financial condition of the district. The 133.16commissioner must not authorize a levy under this subdivision in an amount greater than 133.17the cost to the district of renting or leasing a building or land for approved purposes. 133.18The proceeds of this levy must not be used for custodial or other maintenance services. 133.19A district may not levy under this subdivision for the purpose of leasing or renting a 133.20district-owned building or site to itself. 133.21    (c) For agreements finalized after July 1, 1997, a district may not levy under this 133.22subdivision for the purpose of leasing: (1) a newly constructed building used primarily 133.23for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed 133.24building addition or additions used primarily for regular kindergarten, elementary, or 133.25secondary instruction that contains more than 20 percent of the square footage of the 133.26previously existing building. 133.27    (d) Notwithstanding paragraph (b), a district may levy under this subdivision for the 133.28purpose of leasing or renting a district-owned building or site to itself only if the amount 133.29is needed by the district to make payments required by a lease purchase agreement, 133.30installment purchase agreement, or other deferred payments agreement authorized by law, 133.31and the levy meets the requirements of paragraph (c). A levy authorized for a district by 133.32the commissioner under this paragraph may be in the amount needed by the district to 133.33make payments required by a lease purchase agreement, installment purchase agreement, 133.34or other deferred payments agreement authorized by law, provided that any agreement 133.35include a provision giving the school districts the right to terminate the agreement 133.36annually without penalty. 134.1    (e) The total levy under this subdivision for a district for any year must not exceed 134.2$150 times the resident pupil units for the fiscal year to which the levy is attributable. 134.3    (f) For agreements for which a review and comment have been submitted to the 134.4Department of Education after April 1, 1998, the term "instructional purpose" as used in 134.5this subdivision excludes expenditures on stadiums. 134.6    (g) The commissioner of education may authorize a school district to exceed the 134.7limit in paragraph (e) if the school district petitions the commissioner for approval. The 134.8commissioner shall grant approval to a school district to exceed the limit in paragraph (e) 134.9for not more than five years if the district meets the following criteria: 134.10    (1) the school district has been experiencing pupil enrollment growth in the 134.11preceding five years; 134.12    (2) the purpose of the increased levy is in the long-term public interest; 134.13    (3) the purpose of the increased levy promotes colocation of government services; 134.14and 134.15    (4) the purpose of the increased levy is in the long-term interest of the district by 134.16avoiding over construction of school facilities. 134.17    (h) A school district that is a member of an intermediate school district may include 134.18in its authority under this section the costs associated with leases of administrative and 134.19classroom space for intermediate school district programs. This authority must not 134.20exceed $43 new text begin $50 new text end times the adjusted marginal cost pupil units of the member districts. This 134.21authority is in addition to any other authority authorized under this section. 134.22    (i) In addition to the allowable capital levies in paragraph (a), a district that is a 134.23member of the "Technology and Information Education Systems" data processing joint 134.24board, that finds it economically advantageous to enter into a lease purchase agreement for 134.25a building for a group of school districts or special school districts for staff development 134.26purposes, may levy for its portion of lease costs attributed to the district within the total 134.27levy limit in paragraph (e). 134.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for revenue for fiscal year 2014 new text end 134.29 new text begin and later. new text end 134.30    Sec. 40. Minnesota Statutes 2008, section 127A.51, is amended to read: 134.31127A.51 STATEWIDE AVERAGE REVENUE. 134.32By October 1 of each year the commissioner must estimate the statewide average 134.33adjusted general revenue per adjusted marginal cost pupil unit and the disparity in adjusted 134.34general revenue among pupils and districts by computing the ratio of the 95th percentile 135.1to the fifth percentile of adjusted general revenue. The commissioner must provide that 135.2information to all districts. 135.3If the disparity in adjusted general revenue as measured by the ratio of the 95th 135.4percentile to the fifth percentile increases in any year, the commissioner shall recommend 135.5to the legislature options for change in the general education formula that will limit the 135.6disparity in adjusted general revenue to no more than the disparity for the previous 135.7school year. The commissioner must submit the recommended options to the education 135.8committees of the legislature by January 15. 135.9For purposes of this section and section 126C.10, adjusted general revenue means: 135.10(1) for fiscal year 2002, the sum of basic revenue under section 126C.10, subdivision 135.112 ; supplemental revenue under section 126C.10, subdivisions 9 and 12; transition revenue 135.12under section 126C.10, subdivision 20; referendum revenue under section 126C.17; and 135.13equity revenue under section 126C.10, subdivisions 24a and 24b; and 135.14(2) for fiscal year 2003 and later new text begin through 2013 new text end , the sum of basic revenue under 135.15section 126C.10, subdivision 2; referendum revenue under section 126C.17; and equity 135.16revenue under section 126C.10, subdivisions 24a and 24b. new text begin ; and new text end 135.17 new text begin (3) for fiscal year 2014 and later, the sum of basic revenue under section 126C.10, new text end 135.18 new text begin subdivision 2, and referendum revenue under section 126C.17. new text end 135.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for fiscal year 2014 and later. new text end 135.20    Sec. 41. new text begin PHASE-IN. new text end 135.21     new text begin Subdivision 1. new text end new text begin Baseline revenue. new text end new text begin A school district's baseline revenue equals the new text end 135.22 new text begin revenue amounts for the aid appropriations calculated under Minnesota Statutes, section new text end 135.23 new text begin 126C.20, calculated using the current year's data and the revenue formulas in place in new text end 135.24 new text begin Minnesota Statutes 2008. new text end 135.25     new text begin Subd. 2. new text end new text begin New revenue. new text end new text begin A school district's new revenue equals the revenue amounts new text end 135.26 new text begin for the aid appropriations calculated under Minnesota Statutes, section 126C.20, calculated new text end 135.27 new text begin using the current year's data and the revenue formulas in place under this act. new text end 135.28     new text begin Subd. 3. new text end new text begin Phase-in schedule. new text end new text begin A school district's revenue amounts for the revenue new text end 135.29 new text begin formulas listed in subdivisions 1 and 2 equals the district's baseline revenue plus the new text end 135.30 new text begin percent of the difference specified in subdivision 6 multiplied by the number of years new text end 135.31 new text begin of the phase in specified in subdivision 7. new text end 135.32     new text begin Subd. 4. new text end new text begin Aid. new text end new text begin A school district's aid entitlement for the formulas listed under new text end 135.33 new text begin this act equals the district's baseline aid plus the phase-in percentage times the new aid new text end 135.34 new text begin amounts calculated under this act. new text end 136.1     new text begin Subd. 5. new text end new text begin Levy. new text end new text begin A school district levy for the formulas listed in this act equals the new text end 136.2 new text begin levy for the same formulas calculated under Minnesota Statutes 2008, and the phase-in new text end 136.3 new text begin percentage times the new revenue amounts for the levy calculated under this act. new text end 136.4     new text begin Subd. 6. new text end new text begin Percentage. new text end new text begin The phase-in percentage equals 25 percent. new text end 136.5     new text begin Subd. 7. new text end new text begin Years of phase-in. new text end new text begin The new revenue under this section is phased in over new text end 136.6 new text begin four years. new text end 136.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2013. new text end 136.8    Sec. 42. new text begin REVISOR'S INSTRUCTION. new text end 136.9 new text begin In the year 2014 and subsequent editions of Minnesota Statutes, the revisor of statutes new text end 136.10 new text begin shall change all references to "adjusted marginal cost pupil units" to "adjusted pupil units" new text end 136.11 new text begin and all references to "resident marginal cost pupil units" to "resident pupil units." new text end 136.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2013. new text end 136.13    Sec. 43. new text begin REPEALER. new text end 136.14 new text begin Minnesota Statutes 2008, sections 123B.54; 123B.57, subdivisions 3, 4, and 5; new text end 136.15 new text begin 123B.591; 125A.76, subdivision 4; 125A.79, subdivision 6; 126C.10, subdivisions 2b, new text end 136.16 new text begin 13a, 13b, 24, 25, 26, 27, 28, 29, 30, 31, 31a, 31b, 32, 33, 34, 35, and 36; 126C.12; new text end 136.17 new text begin 126C.126; and 127A.50, new text end new text begin are repealed. new text end 136.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for revenue for fiscal year 2014. new text end 136.19ARTICLE 9 136.20FORECAST ADJUSTMENTS 136.21    Section 1. Minnesota Statutes 2009 Supplement, section 123B.54, is amended to read: 136.22123B.54 DEBT SERVICE APPROPRIATION. 136.23    (a) $9,109,000 in fiscal year 2009, $7,948,000 new text begin $6,608,000 new text end in fiscal year 2010, 136.24$9,275,000 new text begin $8,465,000 new text end in fiscal year 2011, $9,574,000 new text begin $16,900,000 new text end in fiscal year 2012, 136.25and $8,904,000 new text begin $19,175,000 new text end in fiscal year 2013 and later are appropriated from the 136.26general fund to the commissioner of education for payment of debt service equalization 136.27aid under section 123B.53. 136.28    (b) The appropriations in paragraph (a) must be reduced by the amount of any 136.29money specifically appropriated for the same purpose in any year from any state fund. 136.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 137.1    Sec. 2. Laws 2009, chapter 96, article 4, section 12, subdivision 3, is amended to read: 137.2    Subd. 3. Debt service equalization. For debt service aid according to Minnesota 137.3Statutes, section 123B.53, subdivision 6: 137.4 137.5 $ 7,948,000 new text begin 6,608,000 new text end ..... 2010 137.6 137.7 $ 9,275,000 new text begin 8,465,000 new text end ..... 2011 137.8The 2010 appropriation includes $851,000 for 2009 and $7,097,000 new text begin $5,757,000 new text end 137.9for 2010. 137.10The 2011 appropriation includes $788,000 new text begin $2,128,000 new text end for 2010 and $8,487,000 new text begin new text end 137.11 new text begin $6,337,000 new text end for 2011. 137.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 137.13    Sec. 3. Laws 2009, chapter 96, article 5, section 13, subdivision 4, is amended to read: 137.14    Subd. 4. Kindergarten milk. For kindergarten milk aid under Minnesota Statutes, 137.15section 124D.118: 137.16 137.17 $ 1,098,000 new text begin 1,104,000 new text end ..... 2010 137.18 137.19 $ 1,120,000 new text begin 1,126,000 new text end ..... 2011