<a id="pl.1.3"></a><var>1.3</var>through grade 12 education including general education, education excellence, <br/>
<a id="pl.1.4"></a><var>1.4</var>special programs, facilities and technology, accounting, state agencies, pupil <br/>
<a id="pl.1.5"></a><var>1.5</var>transportation, education finance reform and forecast adjustments; authorizing <br/>
<a id="pl.1.6"></a><var>1.6</var>rulemaking; requiring reports; appropriating money;amending Minnesota <br/>
<a id="pl.1.7"></a><var>1.7</var>Statutes 2008, sections 3.303, by adding a subdivision; 11A.16, subdivision 5; <br/>
<a id="pl.1.8"></a><var>1.8</var>16A.125, subdivision 5; 120A.41; 120B.021, subdivision 1; 120B.07; 120B.15; <br/>
<a id="pl.1.9"></a><var>1.9</var>122A.16; 122A.18, subdivisions 1, 2; 122A.23, subdivision 2; 123B.12; <br/>
<a id="pl.1.10"></a><var>1.10</var>123B.147, subdivision 3; 123B.53, subdivision 5; 123B.57, as amended; <br/>
<a id="pl.1.11"></a><var>1.11</var>123B.63, subdivision 3; 123B.75, subdivision 5, by adding a subdivision; <br/>
<a id="pl.1.12"></a><var>1.12</var>123B.88, subdivision 13; 123B.90, subdivision 3; 123B.92, subdivision 5; <br/>
<a id="pl.1.13"></a><var>1.13</var>124D.09, subdivision 20; 124D.4531, as amended; 124D.59, subdivision 2; <br/>
<a id="pl.1.14"></a><var>1.14</var>124D.65, subdivision 5; 125A.03; 125A.21, subdivisions 2, 3, 5, 7; 125A.515, by <br/>
<a id="pl.1.15"></a><var>1.15</var>adding a subdivision; 125A.69, subdivision 1; 125A.76, subdivision 5; 125A.79, <br/>
<a id="pl.1.16"></a><var>1.16</var>subdivisions 1, 7; 126C.01, by adding subdivisions; 126C.05, subdivisions 1, 3, <br/>
<a id="pl.1.17"></a><var>1.17</var>5, 6, 8, 16, 17; 126C.10, subdivisions 1, 2, 2a, 3, 4, 6, 13, 13a, 14, 18, by adding <br/>
<a id="pl.1.18"></a><var>1.18</var>subdivisions; 126C.126; 126C.13, subdivisions 4, 5; 126C.17, subdivisions <br/>
<a id="pl.1.19"></a><var>1.19</var>1, 5, 6, by adding a subdivision; 126C.20; 126C.40, subdivision 1; 126C.54; <br/>
<a id="pl.1.20"></a><var>1.20</var>127A.30, subdivision 2; 127A.42, subdivision 2; 127A.43; 127A.441; 127A.45, <br/>
<a id="pl.1.21"></a><var>1.21</var>subdivisions 2, 3, 13, by adding subdivisions; 127A.51; 157.15, by adding a <br/>
<a id="pl.1.22"></a><var>1.22</var>subdivision; 169.447, subdivision 2a; 171.321, subdivision 2; Minnesota Statutes <br/>
<a id="pl.1.23"></a><var>1.23</var>2009 Supplement, sections 16A.152, subdivision 2, as amended; 120B.023, <br/>
<a id="pl.1.24"></a><var>1.24</var>subdivision 2; 120B.30, subdivisions 1, 1a, 3, 4, by adding a subdivision; <br/>
<a id="pl.1.25"></a><var>1.25</var>120B.35, subdivision 3; 120B.36, subdivision 1; 122A.09, subdivision 4; <br/>
<a id="pl.1.26"></a><var>1.26</var>122A.40, subdivision 8; 122A.41, subdivision 5; 123B.143, subdivision 1; <br/>
<a id="pl.1.27"></a><var>1.27</var>123B.54; 123B.92, subdivision 1; 124D.10, subdivisions 3, 4, 4a, 6a, 11, 23; <br/>
<a id="pl.1.28"></a><var>1.28</var>125A.02, subdivision 1; 125A.091, subdivision 7; 125A.63, subdivisions 2, 4, 5; <br/>
<a id="pl.1.29"></a><var>1.29</var>126C.41, subdivision 2; 126C.44; 157.16, subdivision 3; 171.02, subdivision 2b; <br/>
<a id="pl.1.30"></a><var>1.30</var>256B.0625, subdivision 26; Laws 2009, chapter 79, article 5, section 60; Laws <br/>
<a id="pl.1.31"></a><var>1.31</var>2009, chapter 96, article 2, sections 64; 67, subdivisions 14, 17; article 4, section <br/>
<a id="pl.1.32"></a><var>1.32</var>12, subdivision 3; article 5, section 13, subdivision 4; proposing coding for new <br/>
<a id="pl.1.33"></a><var>1.33</var>law in Minnesota Statutes, chapters 120B; 121A; 122A; 123A; 123B; 124D; <br/>
<a id="pl.1.34"></a><var>1.34</var>125A; 126C; repealing Minnesota Statutes 2008, sections 122A.24; 123B.54; <br/>
<a id="pl.1.35"></a><var>1.35</var>123B.57, subdivisions 3, 4, 5; 123B.591; 125A.54; 125A.76, subdivision 4; <br/>
<a id="pl.1.36"></a><var>1.36</var>125A.79, subdivision 6; 126C.10, subdivisions 2b, 13a, 13b, 24, 25, 26, 27, 28, <br/>
<a id="pl.1.37"></a><var>1.37</var>29, 30, 31, 31a, 31b, 32, 33, 34, 35, 36; 126C.12; 126C.126; 127A.46; 127A.50.<br/>
<a id="pl.1.38"></a><var>1.38</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.1.0.0"></a>

<a id="bill.1.1.0"></a><a id="pl.2.3"></a><var>2.3</var>    Section 1. Minnesota Statutes 2008, section 11A.16, subdivision 5, is amended to read:<br/>
<a id="pl.2.4"></a><var>2.4</var>    Subd. 5. <b>Calculation of income.</b> As of the end of each fiscal year, the state <br/>
<a id="pl.2.5"></a><var>2.5</var>board shall calculate the investment income earned by the permanent school fund. The <br/>
<a id="pl.2.6"></a><var>2.6</var>investment income earned by the fund shall equal the amount of interest on debt securities <br/>
<a id="pl.2.7"></a><var>2.7</var>and, dividends on equity securities, and interest earned on certified monthly earnings prior <br/>
<a id="pl.2.8"></a><var>2.8</var>to the transfer to the Department of Education. Gains and losses arising from the sale of <br/>
<a id="pl.2.9"></a><var>2.9</var>securities shall be apportioned as follows:<br/>
<a id="pl.2.10"></a><var>2.10</var>(a) If the sale of securities results in a net gain during a fiscal year, the gain shall <br/>
<a id="pl.2.11"></a><var>2.11</var>be apportioned in equal installments over the next ten fiscal years to offset net losses in <br/>
<a id="pl.2.12"></a><var>2.12</var>those years. If any portion of an installment is not needed to recover subsequent losses <br/>
<a id="pl.2.13"></a><var>2.13</var>identified in paragraph (b) it shall be added to the principal of the fund.<br/>
<a id="pl.2.14"></a><var>2.14</var>(b) If the sale of securities results in a net loss during a fiscal year, the net loss shall <br/>
<a id="pl.2.15"></a><var>2.15</var>be recovered first from the gains in paragraph (a) apportioned to that fiscal year. If these <br/>
<a id="pl.2.16"></a><var>2.16</var>gains are insufficient, any remaining net loss shall be recovered from interest and dividend <br/>
<a id="pl.2.17"></a><var>2.17</var>income in equal installments over the following ten fiscal years.<br/>
<br/>
<a id="bill.1.2.0"></a><a id="pl.2.18"></a><var>2.18</var>    Sec. 2. Minnesota Statutes 2008, section 120B.07, is amended to read:<br/>
<a id="pl.2.19"></a><var>2.19</var><b>120B.07 EARLY GRADUATION.</b><br/>
<a id="pl.2.20"></a><var>2.20</var>(a) Notwithstanding any law to the contrary, any secondary school student who has <br/>
<a id="pl.2.21"></a><var>2.21</var>completed all required courses or standards may, with the approval of the student, the <br/>
<a id="pl.2.22"></a><var>2.22</var>student's parent or guardian, and local school officials, graduate before the completion <br/>
<a id="pl.2.23"></a><var>2.23</var>of the school year.<br/>
<a id="pl.2.24"></a><var>2.24</var>(b) General education revenue attributable to the student must be paid as though the <br/>
<a id="pl.2.25"></a><var>2.25</var>student was in attendance for the entire year unless the student participates in the early <br/>
<a id="pl.2.26"></a><var>2.26</var>graduation achievement scholarship program under section 120B.08.<br/>
<a id="pl.2.27"></a><var>2.27</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.1.3.0"></a><a id="pl.2.28"></a><var>2.28</var>    Sec. 3. <b>[120B.08] EARLY GRADUATION ACHIEVEMENT SCHOLARSHIP </b><br/>
<a id="pl.2.29"></a><var>2.29</var><b>PROGRAM.</b><br/>
<a id="pl.2.30"></a><var>2.30</var>    Subdivision 1. <b>Participation.</b> A student who qualifies for early graduation under <br/>
<a id="pl.2.31"></a><var>2.31</var>section 120B.07 is eligible to participate in the early graduation achievement scholarship <br/>
<a id="pl.2.32"></a><var>2.32</var>program.<br/>
<a id="pl.3.1"></a><var>3.1</var>    Subd. 2. <b>Scholarship amounts.</b> A student who participates in the early graduation <br/>
<a id="pl.3.2"></a><var>3.2</var>achievement scholarship program is eligible for a scholarship of $2,500 if the student <br/>
<a id="pl.3.3"></a><var>3.3</var>qualifies for graduation one semester early, $5,000 if the student qualifies for graduation <br/>
<a id="pl.3.4"></a><var>3.4</var>two semesters early, or $7,500 if the student qualifies for graduation three or more <br/>
<a id="pl.3.5"></a><var>3.5</var>semesters early.<br/>
<a id="pl.3.6"></a><var>3.6</var>    Subd. 3. <b>Scholarship uses.</b> An early graduation achievement scholarship may be <br/>
<a id="pl.3.7"></a><var>3.7</var>used at any accredited institution of higher education.<br/>
<a id="pl.3.8"></a><var>3.8</var>    Subd. 4. <b>Application.</b> A qualifying student may apply to the commissioner of <br/>
<a id="pl.3.9"></a><var>3.9</var>education for an early graduation achievement scholarship. The application must be in <br/>
<a id="pl.3.10"></a><var>3.10</var>the form and manner specified by the commissioner. Upon verification of the qualifying <br/>
<a id="pl.3.11"></a><var>3.11</var>student's course completion necessary for graduation, the department must issue the <br/>
<a id="pl.3.12"></a><var>3.12</var>student a certificate showing the student's scholarship amount.<br/>
<a id="pl.3.13"></a><var>3.13</var>    Subd. 5. <b>Enrollment verification.</b> A student who qualifies under this section <br/>
<a id="pl.3.14"></a><var>3.14</var>and enrolls in an accredited higher education institution must submit a form to the <br/>
<a id="pl.3.15"></a><var>3.15</var>commissioner verifying the student's enrollment in the higher education institution and the <br/>
<a id="pl.3.16"></a><var>3.16</var>tuition charges for that semester. Within 15 days of receipt of a student's enrollment and <br/>
<a id="pl.3.17"></a><var>3.17</var>tuition verification form, the commissioner must issue a scholarship check to the student in <br/>
<a id="pl.3.18"></a><var>3.18</var>the lesser of the tuition amount for that semester or the maximum amount of the student's <br/>
<a id="pl.3.19"></a><var>3.19</var>early graduation achievement scholarship. A student may continue to submit enrollment <br/>
<a id="pl.3.20"></a><var>3.20</var>verification forms to the commissioner until the student has used the full amount of the <br/>
<a id="pl.3.21"></a><var>3.21</var>student's graduation achievement scholarship.<br/>
<a id="pl.3.22"></a><var>3.22</var>    Subd. 6. <b>General education money transferred.</b> The commissioner must transfer <br/>
<a id="pl.3.23"></a><var>3.23</var>the amounts necessary to fund the early graduation achievement scholarships from the <br/>
<a id="pl.3.24"></a><var>3.24</var>general education aid appropriation for that year.<br/>
<a id="pl.3.25"></a><var>3.25</var><b>EFFECTIVE DATE.</b>This section is effective for fiscal years 2011 and later.<br/>
<br/>
<a id="bill.1.4.0"></a><a id="pl.3.26"></a><var>3.26</var>    Sec. 4. Minnesota Statutes 2008, section 123B.63, subdivision 3, is amended to read:<br/>
<a id="pl.3.27"></a><var>3.27</var>    Subd. 3. <b>Capital project levy referendum.</b> (a) A district may levy the local tax <br/>
<a id="pl.3.28"></a><var>3.28</var>rate approved by a majority of the electors voting on the question to provide funds for <br/>
<a id="pl.3.29"></a><var>3.29</var>an approved project. The election must take place no more than five years before the <br/>
<a id="pl.3.30"></a><var>3.30</var>estimated date of commencement of the project. The referendum must be held on a date <br/>
<a id="pl.3.31"></a><var>3.31</var>set by the board. A referendum for a project not receiving a positive review and comment <br/>
<a id="pl.3.32"></a><var>3.32</var>by the commissioner under section 
         <statute_ref>123B.71</statute_ref> must be approved by at least 60 percent of <br/>
<a id="pl.3.33"></a><var>3.33</var>the voters at the election. <br/>
<a id="pl.3.34"></a><var>3.34</var>(b) The referendum may be called by the school board and may be held: <br/>
<a id="pl.4.1"></a><var>4.1</var>    (1) separately, before an election for the issuance of obligations for the project <br/>
<a id="pl.4.2"></a><var>4.2</var>under chapter 475; or<br/>
<a id="pl.4.3"></a><var>4.3</var>    (2) in conjunction with an election for the issuance of obligations for the project <br/>
<a id="pl.4.4"></a><var>4.4</var>under chapter 475; or<br/>
<a id="pl.4.5"></a><var>4.5</var>    (3) notwithstanding section 
         <statute_ref>475.59</statute_ref>, as a conjunctive question authorizing both the <br/>
<a id="pl.4.6"></a><var>4.6</var>capital project levy and the issuance of obligations for the project under chapter 475. Any <br/>
<a id="pl.4.7"></a><var>4.7</var>obligations authorized for a project may be issued within five years of the date of the <br/>
<a id="pl.4.8"></a><var>4.8</var>election. <br/>
<a id="pl.4.9"></a><var>4.9</var>    (c) The ballot must provide a general description of the proposed project, state the <br/>
<a id="pl.4.10"></a><var>4.10</var>estimated total cost of the project, state whether the project has received a positive or <br/>
<a id="pl.4.11"></a><var>4.11</var>negative review and comment from the commissioner, state the maximum amount of the <br/>
<a id="pl.4.12"></a><var>4.12</var>capital project levy as a percentage of net tax capacity, state the amount that will be raised <br/>
<a id="pl.4.13"></a><var>4.13</var>by that local tax rate in the first year it is to be levied, and state the maximum number of <br/>
<a id="pl.4.14"></a><var>4.14</var>years that the levy authorization will apply.<br/>
<a id="pl.4.15"></a><var>4.15</var>    The ballot must contain a textual portion with the information required in this <br/>
<a id="pl.4.16"></a><var>4.16</var>section and a question stating substantially the following:<br/>
<a id="pl.4.17"></a><var>4.17</var>    "Shall the capital project levy proposed by the board of .......... School District <br/>
<a id="pl.4.18"></a><var>4.18</var>No. .......... be approved?"<br/>
<a id="pl.4.19"></a><var>4.19</var>    If approved, the amount provided by the approved local tax rate applied to the net <br/>
<a id="pl.4.20"></a><var>4.20</var>tax capacity for the year preceding the year the levy is certified may be certified for the <br/>
<a id="pl.4.21"></a><var>4.21</var>number of years, not to exceed ten, approved.<br/>
<a id="pl.4.22"></a><var>4.22</var>(d) If the authority for an existing project is expiring and the district is proposing <br/>
<a id="pl.4.23"></a><var>4.23</var>a new project at the same maximum tax rate, the general description on the ballot may <br/>
<a id="pl.4.24"></a><var>4.24</var>state that the capital project levy is being renewed and that the tax rate is not being <br/>
<a id="pl.4.25"></a><var>4.25</var>increased from the previous year's rate and the notice required under section 276.60, may <br/>
<a id="pl.4.26"></a><var>4.26</var>be modified to read: "BY VOTING YES ON THIS BALLOT QUESTION, YOU ARE <br/>
<a id="pl.4.27"></a><var>4.27</var>VOTING TO EXTEND THE AUTHORITY FOR AN EXPIRING CAPITAL PROJECT <br/>
<a id="pl.4.28"></a><var>4.28</var>AT THE SAME TAX RATE."<br/>
<a id="pl.4.29"></a><var>4.29</var>    (e) In the event a conjunctive question proposes to authorize both the capital project <br/>
<a id="pl.4.30"></a><var>4.30</var>levy and the issuance of obligations for the project, appropriate language authorizing the <br/>
<a id="pl.4.31"></a><var>4.31</var>issuance of obligations must also be included in the question.<br/>
<a id="pl.4.32"></a><var>4.32</var>    (f) The district must notify the commissioner of the results of the referendum.<br/>
<a id="pl.4.33"></a><var>4.33</var><b>EFFECTIVE DATE.</b>This section is effective for referenda conducted on or after <br/>
<a id="pl.4.34"></a><var>4.34</var>July 1, 2010.<br/>
<br/>
<a id="bill.1.5.0"></a><a id="pl.4.35"></a><var>4.35</var>    Sec. 5. Minnesota Statutes 2008, section 124D.09, subdivision 20, is amended to read:<br/>
<a id="pl.5.1"></a><var>5.1</var>    Subd. 20. <b>Textbooks; materials.</b> All textbooks and equipment provided to a pupil, <br/>
<a id="pl.5.2"></a><var>5.2</var>and paid for under subdivision 13, are the property of the pupil's postsecondary institution. <br/>
<a id="pl.5.3"></a><var>5.3</var>Each pupil is required to return all textbooks and equipment to the postsecondary <br/>
<a id="pl.5.4"></a><var>5.4</var>institution after the course has ended. The postsecondary institution may bill the pupil for <br/>
<a id="pl.5.5"></a><var>5.5</var>any textbooks and equipment that are not promptly returned by the student.<br/>
<a id="pl.5.6"></a><var>5.6</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.1.6.0"></a><a id="pl.5.7"></a><var>5.7</var>    Sec. 6. Minnesota Statutes 2008, section 125A.79, subdivision 1, is amended to read:<br/>
<a id="pl.5.8"></a><var>5.8</var>    Subdivision 1. <b>Definitions.</b> For the purposes of this section, the definitions in this <br/>
<a id="pl.5.9"></a><var>5.9</var>subdivision apply.<br/>
<a id="pl.5.10"></a><var>5.10</var>    (a) "Unreimbursed special education cost" means the sum of the following:<br/>
<a id="pl.5.11"></a><var>5.11</var>    (1) expenditures for teachers' salaries, contracted services, supplies, equipment, and <br/>
<a id="pl.5.12"></a><var>5.12</var>transportation services eligible for revenue under section 
         <statute_ref>125A.76</statute_ref>; plus<br/>
<a id="pl.5.13"></a><var>5.13</var>    (2) expenditures for tuition bills received under sections 
         <statute_ref>125A.03</statute_ref> to 
         <statute_ref>125A.24</statute_ref> and <br/>
<statute_ref><a id="pl.5.14"></a><var>5.14</var>125A.65
         </statute_ref> for services eligible for revenue under section 
         <statute_ref>125A.76, subdivision 2</statute_ref>; minus<br/>
<a id="pl.5.15"></a><var>5.15</var>    (3) revenue for teachers' salaries, contracted services, supplies, equipment, and <br/>
<a id="pl.5.16"></a><var>5.16</var>transportation services under section 
         <statute_ref>125A.76</statute_ref>; minus<br/>
<a id="pl.5.17"></a><var>5.17</var>    (4) tuition receipts under sections 
         <statute_ref>125A.03</statute_ref> to 
         <statute_ref>125A.24</statute_ref> and 
         <statute_ref>125A.65</statute_ref> for services <br/>
<a id="pl.5.18"></a><var>5.18</var>eligible for revenue under section 
         <statute_ref>125A.76, subdivision 2</statute_ref>.<br/>
<a id="pl.5.19"></a><var>5.19</var>    (b) "General revenue" for a school district means the sum of the general education <br/>
<a id="pl.5.20"></a><var>5.20</var>revenue according to section 
         <statute_ref>126C.10, subdivision 1</statute_ref>, excluding alternative teacher <br/>
<a id="pl.5.21"></a><var>5.21</var>compensation revenue, plus the total qualifying referendum revenue specified in paragraph <br/>
<a id="pl.5.22"></a><var>5.22</var>(e) minus transportation sparsity revenue minus total operating capital revenue. "General <br/>
<a id="pl.5.23"></a><var>5.23</var>revenue" for a charter school means the sum of the general education revenue according to <br/>
<a id="pl.5.24"></a><var>5.24</var>section 124D.11, subdivision 1, and transportation revenue according to section 124D.11, <br/>
<a id="pl.5.25"></a><var>5.25</var>subdivision 2, excluding alternative teacher compensation revenue, minus referendum <br/>
<a id="pl.5.26"></a><var>5.26</var>equalization aid minus transportation sparsity revenue minus operating capital revenue.<br/>
<a id="pl.5.27"></a><var>5.27</var>    (c) "Average daily membership" has the meaning given it in section 
         <statute_ref>126C.05</statute_ref>.<br/>
<a id="pl.5.28"></a><var>5.28</var>    (d) "Program growth factor" means 
         <statute_ref>1.02</statute_ref> for fiscal year 2012 and later.<br/>
<a id="pl.5.29"></a><var>5.29</var>    (e) "Total qualifying referendum revenue" means two-thirds of the district's total <br/>
<a id="pl.5.30"></a><var>5.30</var>referendum revenue as adjusted according to section 
<statute_ref>127A.47</statute_ref>, subdivision 7, paragraphs <br/>
<a id="pl.5.31"></a><var>5.31</var>(a) to (c), for fiscal year 2006, one-third of the district's total referendum revenue for fiscal <br/>
<a id="pl.5.32"></a><var>5.32</var>year 2007, and none of the district's total referendum revenue for fiscal year 2008 and later.<br/>
<a id="pl.5.33"></a><var>5.33</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.7.0"></a><a id="pl.6.1"></a><var>6.1</var>    Sec. 7. Minnesota Statutes 2008, section 126C.10, subdivision 2a, is amended to read:<br/>
<a id="pl.6.2"></a><var>6.2</var>    Subd. 2a. <b>Extended time revenue.</b> (a) A school district's extended time revenue <br/>
<a id="pl.6.3"></a><var>6.3</var>is equal to the product of $4,601 (1) the formula allowance for that year minus $523, <br/>
<a id="pl.6.4"></a><var>6.4</var>and (2) the sum of the adjusted marginal cost pupil units of the district for each pupil in <br/>
<a id="pl.6.5"></a><var>6.5</var>average daily membership in excess of 1.0 and less than 1.2 according to section 
         <statute_ref>126C.05, <br/>
<a id="pl.6.6"></a><var>6.6</var>subdivision 8
         </statute_ref>, if the district has extended time average daily membership in the current <br/>
<a id="pl.6.7"></a><var>6.7</var>year. <br/>
<a id="pl.6.8"></a><var>6.8</var>(b) A school district's extended time revenue may be used for extended day <br/>
<a id="pl.6.9"></a><var>6.9</var>programs, extended week programs, summer school, and other programming authorized <br/>
<a id="pl.6.10"></a><var>6.10</var>under the learning year program.<br/>
<a id="pl.6.11"></a><var>6.11</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal years 2011 <br/>
<a id="pl.6.12"></a><var>6.12</var>and later.<br/>
<br/>
<a id="bill.1.8.0"></a><a id="pl.6.13"></a><var>6.13</var>    Sec. 8. Minnesota Statutes 2008, section 126C.10, subdivision 13a, is amended to read:<br/>
<a id="pl.6.14"></a><var>6.14</var>    Subd. 13a. <b>Operating capital levy.</b> To obtain operating capital revenue for fiscal <br/>
<a id="pl.6.15"></a><var>6.15</var>year 2007 and later, a district may levy an amount not more than the product of its <br/>
<a id="pl.6.16"></a><var>6.16</var>operating capital revenue for the fiscal year times the lesser of one or the ratio of its <br/>
<a id="pl.6.17"></a><var>6.17</var>adjusted net tax capacity per adjusted marginal cost pupil unit to the operating capital <br/>
<a id="pl.6.18"></a><var>6.18</var>equalizing factor. The operating capital equalizing factor equals $22,222 for fiscal year <br/>
<a id="pl.6.19"></a><var>6.19</var>2006, and $10,700 for fiscal year years  2007 through 2011, $10,915 for fiscal year 2012, <br/>
<a id="pl.6.20"></a><var>6.20</var>and $11,029 for fiscal years 2013 and later.<br/>
<a id="pl.6.21"></a><var>6.21</var><b>EFFECTIVE DATE.</b>This section is effective for fiscal years 2012 and later.<br/>
<br/>
<a id="bill.1.9.0"></a><a id="pl.6.22"></a><var>6.22</var>    Sec. 9. Minnesota Statutes 2008, section 126C.10, subdivision 14, is amended to read:<br/>
<a id="pl.6.23"></a><var>6.23</var>    Subd. 14. <b>Uses of total operating capital revenue.</b> Total operating capital revenue <br/>
<a id="pl.6.24"></a><var>6.24</var>may be used only for the following purposes:<br/>
<a id="pl.6.25"></a><var>6.25</var>(1) to acquire land for school purposes;<br/>
<a id="pl.6.26"></a><var>6.26</var>(2) to acquire or construct buildings for school purposes;<br/>
<a id="pl.6.27"></a><var>6.27</var>(3) to rent or lease buildings, including the costs of building repair or improvement <br/>
<a id="pl.6.28"></a><var>6.28</var>that are part of a lease agreement;<br/>
<a id="pl.6.29"></a><var>6.29</var>(4) to improve and repair school sites and buildings, and equip or reequip school <br/>
<a id="pl.6.30"></a><var>6.30</var>buildings with permanent attached fixtures, including library media centers;<br/>
<a id="pl.6.31"></a><var>6.31</var>(5) for a surplus school building that is used substantially for a public nonschool <br/>
<a id="pl.6.32"></a><var>6.32</var>purpose;<br/>
<a id="pl.7.1"></a><var>7.1</var>(6) to eliminate barriers or increase access to school buildings by individuals with a <br/>
<a id="pl.7.2"></a><var>7.2</var>disability;<br/>
<a id="pl.7.3"></a><var>7.3</var>(7) to bring school buildings into compliance with the State Fire Code adopted <br/>
<a id="pl.7.4"></a><var>7.4</var>according to chapter 299F;<br/>
<a id="pl.7.5"></a><var>7.5</var>(8) to remove asbestos from school buildings, encapsulate asbestos, or make <br/>
<a id="pl.7.6"></a><var>7.6</var>asbestos-related repairs;<br/>
<a id="pl.7.7"></a><var>7.7</var>(9) to clean up and dispose of polychlorinated biphenyls found in school buildings;<br/>
<a id="pl.7.8"></a><var>7.8</var>(10) to clean up, remove, dispose of, and make repairs related to storing heating fuel <br/>
<a id="pl.7.9"></a><var>7.9</var>or transportation fuels such as alcohol, gasoline, fuel oil, and special fuel, as defined <br/>
<a id="pl.7.10"></a><var>7.10</var>in section 
         <statute_ref>296A.01</statute_ref>; <br/>
<a id="pl.7.11"></a><var>7.11</var>(11) for energy audits for school buildings and to modify buildings if the audit <br/>
<a id="pl.7.12"></a><var>7.12</var>indicates the cost of the modification can be recovered within ten years;<br/>
<a id="pl.7.13"></a><var>7.13</var>(12) to improve buildings that are leased according to section 
         <statute_ref>123B.51, subdivision 4</statute_ref>; <br/>
<a id="pl.7.14"></a><var>7.14</var>(13) to pay special assessments levied against school property but not to pay <br/>
<a id="pl.7.15"></a><var>7.15</var>assessments for service charges;<br/>
<a id="pl.7.16"></a><var>7.16</var>(14) to pay principal and interest on state loans for energy conservation according to <br/>
<a id="pl.7.17"></a><var>7.17</var>section 
         <statute_ref>216C.37</statute_ref> or loans made under the Douglas J. Johnson Economic Protection Trust <br/>
<a id="pl.7.18"></a><var>7.18</var>Fund Act according to sections 
         <statute_ref>298.292</statute_ref> to 
         <statute_ref>298.298</statute_ref>; <br/>
<a id="pl.7.19"></a><var>7.19</var>(15) to purchase or lease interactive telecommunications equipment;<br/>
<a id="pl.7.20"></a><var>7.20</var>(16) by board resolution, to transfer money into the debt redemption fund to: (i) <br/>
<a id="pl.7.21"></a><var>7.21</var>pay the amounts needed to meet, when due, principal and interest payments on certain <br/>
<a id="pl.7.22"></a><var>7.22</var>obligations issued according to chapter 475; or (ii) pay principal and interest on debt <br/>
<a id="pl.7.23"></a><var>7.23</var>service loans or capital loans according to section 
         <statute_ref>126C.70</statute_ref>; <br/>
<a id="pl.7.24"></a><var>7.24</var>(17) to pay operating capital-related assessments of any entity formed under a <br/>
<a id="pl.7.25"></a><var>7.25</var>cooperative agreement between two or more districts;<br/>
<a id="pl.7.26"></a><var>7.26</var>(18) to purchase or lease computers and related materials, copying machines, <br/>
<a id="pl.7.27"></a><var>7.27</var>telecommunications equipment, and other noninstructional equipment;<br/>
<a id="pl.7.28"></a><var>7.28</var>(19) to purchase or lease assistive technology or equipment for instructional <br/>
<a id="pl.7.29"></a><var>7.29</var>programs;<br/>
<a id="pl.7.30"></a><var>7.30</var>(20) to purchase textbooks;<br/>
<a id="pl.7.31"></a><var>7.31</var>(21) to purchase new and replacement library media resources or technology;<br/>
<a id="pl.7.32"></a><var>7.32</var>(22) to purchase vehicles;<br/>
<a id="pl.7.33"></a><var>7.33</var>(23) to purchase or lease telecommunications equipment, computers, and related <br/>
<a id="pl.7.34"></a><var>7.34</var>equipment for integrated information management systems for:<br/>
<a id="pl.7.35"></a><var>7.35</var>(i) managing and reporting learner outcome information for all students under a <br/>
<a id="pl.7.36"></a><var>7.36</var>results-oriented graduation rule;<br/>
<a id="pl.8.1"></a><var>8.1</var>(ii) managing student assessment, services, and achievement information required <br/>
<a id="pl.8.2"></a><var>8.2</var>for students with individual education plans; and<br/>
<a id="pl.8.3"></a><var>8.3</var>(iii) other classroom information management needs; and<br/>
<a id="pl.8.4"></a><var>8.4</var>(24) to pay personnel costs directly related to the acquisition, operation, and <br/>
<a id="pl.8.5"></a><var>8.5</var>maintenance of telecommunications systems, computers, related equipment, and network <br/>
<a id="pl.8.6"></a><var>8.6</var>and applications software; and<br/>
<a id="pl.8.7"></a><var>8.7</var>(25) to pay the costs directly associated with closing a school facility, including <br/>
<a id="pl.8.8"></a><var>8.8</var>moving and storage costs.<br/>
<a id="pl.8.9"></a><var>8.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.10.0"></a><a id="pl.8.10"></a><var>8.10</var>    Sec. 10. Minnesota Statutes 2008, section 126C.126, is amended to read:<br/>
<a id="pl.8.11"></a><var>8.11</var><b>126C.126 REALLOCATING GENERAL EDUCATION REVENUE FOR </b><br/>
<a id="pl.8.12"></a><var>8.12</var><b>ALL-DAY KINDERGARTEN AND PREKINDERGARTEN.</b><br/>
<a id="pl.8.13"></a><var>8.13</var>    (a) In order to provide additional revenue for an optional all-day kindergarten <br/>
<a id="pl.8.14"></a><var>8.14</var>program, a district may reallocate general education revenue attributable to 12th grade <br/>
<a id="pl.8.15"></a><var>8.15</var>students who have graduated early under section 
         <statute_ref>120B.07</statute_ref> and who do not participate in <br/>
<a id="pl.8.16"></a><var>8.16</var>the early graduation achievement scholarship program under section 120B.08. <br/>
<a id="pl.8.17"></a><var>8.17</var>    (b) A school district may spend general education revenue on extended time <br/>
<a id="pl.8.18"></a><var>8.18</var>kindergarten and prekindergarten programs.<br/>
<a id="pl.8.19"></a><var>8.19</var><b>EFFECTIVE DATE.</b>This section is effective for fiscal years 2011 and later.<br/>
<br/>
<a id="bill.1.11.0"></a><a id="pl.8.20"></a><var>8.20</var>    Sec. 11. Minnesota Statutes 2008, section 126C.17, is amended by adding a subdivision <br/>
<a id="pl.8.21"></a><var>8.21</var>to read:<br/>
<a id="pl.8.22"></a><var>8.22</var>    Subd. 9a. <b>Renewal by school board.</b> Notwithstanding the election requirements of <br/>
<a id="pl.8.23"></a><var>8.23</var>subdivision 9, a school board may renew an expiring referendum by board action if:<br/>
<a id="pl.8.24"></a><var>8.24</var>(1) the per pupil amount of the referendum is the same as the amount expiring;<br/>
<a id="pl.8.25"></a><var>8.25</var>(2) the term of the renewed referendum is no longer than the initial term approved <br/>
<a id="pl.8.26"></a><var>8.26</var>by the voters; and<br/>
<a id="pl.8.27"></a><var>8.27</var>(3) the school board has adopted a written resolution authorizing the renewal after <br/>
<a id="pl.8.28"></a><var>8.28</var>holding a meeting and allowing public testimony on the proposed renewal.<br/>
<a id="pl.8.29"></a><var>8.29</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.1.12.0"></a><a id="pl.8.30"></a><var>8.30</var>    Sec. 12. Minnesota Statutes 2008, section 126C.20, is amended to read:<br/>
<a id="pl.8.31"></a><var>8.31</var><b>126C.20 ANNUAL GENERAL EDUCATION AID APPROPRIATION.</b><br/>
<a id="pl.9.1"></a><var>9.1</var>There is annually appropriated from the general fund to the department the amount <br/>
<a id="pl.9.2"></a><var>9.2</var>necessary for general education aid under section 126C.13 and the early graduation <br/>
<a id="pl.9.3"></a><var>9.3</var>achievement scholarship program under section 120B.08. This amount must be reduced <br/>
<a id="pl.9.4"></a><var>9.4</var>by the amount of any money specifically appropriated for the same purpose in any year <br/>
<a id="pl.9.5"></a><var>9.5</var>from any state fund.<br/>
<a id="pl.9.6"></a><var>9.6</var><b>EFFECTIVE DATE.</b>This section is effective for fiscal years 2011 and later.<br/>
<br/>
<a id="bill.1.13.0"></a><a id="pl.9.7"></a><var>9.7</var>    Sec. 13. Minnesota Statutes 2009 Supplement, section 126C.41, subdivision 2, is <br/>
<a id="pl.9.8"></a><var>9.8</var>amended to read:<br/>
<a id="pl.9.9"></a><var>9.9</var>    Subd. 2. <b>Retired employee health benefits.</b> (a) A district may levy an amount up <br/>
<a id="pl.9.10"></a><var>9.10</var>to the amount the district is required by the collective bargaining agreement in effect <br/>
<a id="pl.9.11"></a><var>9.11</var>on March 30, 1992, to pay for health insurance or unreimbursed medical expenses for <br/>
<a id="pl.9.12"></a><var>9.12</var>licensed and nonlicensed employees who have terminated services in the employing <br/>
<a id="pl.9.13"></a><var>9.13</var>district and withdrawn from active teaching service or other active service, as applicable, <br/>
<a id="pl.9.14"></a><var>9.14</var>before July 1, 1992, and to pay for health insurance or unreimbursed medical expenses <br/>
<a id="pl.9.15"></a><var>9.15</var>for licensed and nonlicensed employees who have terminated services in the employing <br/>
<a id="pl.9.16"></a><var>9.16</var>district and withdrawn from active teaching service or other active service, as applicable <br/>
<a id="pl.9.17"></a><var>9.17</var>before July 1, 1998, only if a sunset clause is in effect for the current collective bargaining <br/>
<a id="pl.9.18"></a><var>9.18</var>agreement. The total amount of the levy each year may not exceed $600,000.<br/>
<a id="pl.9.19"></a><var>9.19</var>(b) In addition to the levy authority granted under paragraph (a), a school district <br/>
<a id="pl.9.20"></a><var>9.20</var>may levy for other postemployment benefits expenses actually paid during the previous <br/>
<a id="pl.9.21"></a><var>9.21</var>fiscal year. For purposes of this subdivision, "postemployment benefits" means benefits <br/>
<a id="pl.9.22"></a><var>9.22</var>giving rise to a liability under Statement No. 45 of the Government Accounting Standards <br/>
<a id="pl.9.23"></a><var>9.23</var>Board. A district seeking levy authority under this subdivision must:<br/>
<a id="pl.9.24"></a><var>9.24</var>(1) create or have created an actuarial liability to pay postemployment benefits to <br/>
<a id="pl.9.25"></a><var>9.25</var>employees or officers after their termination of service;<br/>
<a id="pl.9.26"></a><var>9.26</var>(2) have a sunset clause in effect for the current collective bargaining agreement as <br/>
<a id="pl.9.27"></a><var>9.27</var>required by paragraph (a); and<br/>
<a id="pl.9.28"></a><var>9.28</var>(3) apply for the authority in the form and manner required by the commissioner <br/>
<a id="pl.9.29"></a><var>9.29</var>of education.<br/>
<a id="pl.9.30"></a><var>9.30</var>If the total levy authority requested under this paragraph exceeds the amount established <br/>
<a id="pl.9.31"></a><var>9.31</var>in paragraph (c), the commissioner must proportionately reduce each district's maximum <br/>
<a id="pl.9.32"></a><var>9.32</var>levy authority under this subdivision. The commissioner may subsequently adjust each <br/>
<a id="pl.9.33"></a><var>9.33</var>district's levy authority under this subdivision so long as the total levy authority does not <br/>
<a id="pl.9.34"></a><var>9.34</var>exceed the maximum levy authority for that year.<br/>
<a id="pl.10.1"></a><var>10.1</var>(c) The maximum levy authority under paragraph (b) must not exceed the following <br/>
<a id="pl.10.2"></a><var>10.2</var>amounts:<br/>
<a id="pl.10.3"></a><var>10.3</var>(1) $9,242,000 for taxes payable in 2010;<br/>
<a id="pl.10.4"></a><var>10.4</var>(2) $29,863,000 for taxes payable in 2011; and<br/>
<a id="pl.10.5"></a><var>10.5</var>(3) for taxes payable in 2012 and later, the maximum levy authority must not exceed <br/>
<a id="pl.10.6"></a><var>10.6</var>the sum of the previous year's authority and $14,000,000.<br/>
<br/>
<a id="bill.1.14.0"></a><a id="pl.10.7"></a><var>10.7</var>    Sec. 14. Minnesota Statutes 2009 Supplement, section 126C.44, is amended to read:<br/>
<a id="pl.10.8"></a><var>10.8</var><b>126C.44 SAFE SCHOOLS LEVY.</b><br/>
<a id="pl.10.9"></a><var>10.9</var>    (a) Each district may make a levy on all taxable property located within the district <br/>
<a id="pl.10.10"></a><var>10.10</var>for the purposes specified in this section. The maximum amount which may be levied <br/>
<a id="pl.10.11"></a><var>10.11</var>for all costs under this section shall be equal to $30 multiplied by the district's adjusted <br/>
<a id="pl.10.12"></a><var>10.12</var>marginal cost pupil units for the school year. The proceeds of the levy must be reserved and <br/>
<a id="pl.10.13"></a><var>10.13</var>used for directly funding the following purposes or for reimbursing the cities and counties <br/>
<a id="pl.10.14"></a><var>10.14</var>who contract with the district for the following purposes: (1) to pay the costs incurred for <br/>
<a id="pl.10.15"></a><var>10.15</var>the salaries, benefits, and transportation costs of peace officers and sheriffs for liaison in <br/>
<a id="pl.10.16"></a><var>10.16</var>services in the district's schools; (2) to pay the costs for a drug abuse prevention program <br/>
<a id="pl.10.17"></a><var>10.17</var>as defined in section 
         <statute_ref>609.101, subdivision 3</statute_ref>, paragraph (e), in the elementary schools; <br/>
<a id="pl.10.18"></a><var>10.18</var>(3) to pay the costs for a gang resistance education training curriculum in the district's <br/>
<a id="pl.10.19"></a><var>10.19</var>schools; (4) to pay the costs for security in the district's schools and on school property; (5) <br/>
<a id="pl.10.20"></a><var>10.20</var>to pay the costs for other crime prevention, drug abuse, student and staff safety, voluntary <br/>
<a id="pl.10.21"></a><var>10.21</var>opt-in suicide prevention tools, and violence prevention measures taken by the school <br/>
<a id="pl.10.22"></a><var>10.22</var>district; or (6) to pay costs for licensed school counselors, licensed school nurses, licensed <br/>
<a id="pl.10.23"></a><var>10.23</var>school social workers, licensed school psychologists, and licensed alcohol and chemical <br/>
<a id="pl.10.24"></a><var>10.24</var>dependency counselors to help provide early responses to problems. For expenditures <br/>
<a id="pl.10.25"></a><var>10.25</var>under clause (1), the district must initially attempt to contract for services to be provided <br/>
<a id="pl.10.26"></a><var>10.26</var>by peace officers or sheriffs with the police department of each city or the sheriff's <br/>
<a id="pl.10.27"></a><var>10.27</var>department of the county within the district containing the school receiving the services. If <br/>
<a id="pl.10.28"></a><var>10.28</var>a local police department or a county sheriff's department does not wish to provide the <br/>
<a id="pl.10.29"></a><var>10.29</var>necessary services, the district may contract for these services with any other police or <br/>
<a id="pl.10.30"></a><var>10.30</var>sheriff's department located entirely or partially within the school district's boundaries.<br/>
<a id="pl.10.31"></a><var>10.31</var>    (b) A school district that is a member of an intermediate school district may <br/>
<a id="pl.10.32"></a><var>10.32</var>include in its authority under this section the costs associated with safe schools activities <br/>
<a id="pl.10.33"></a><var>10.33</var>authorized under paragraph (a) for intermediate school district programs. This authority <br/>
<a id="pl.10.34"></a><var>10.34</var>must not exceed $10 times the adjusted marginal cost pupil units of the member districts. <br/>
<a id="pl.11.1"></a><var>11.1</var>This authority is in addition to any other authority authorized under this section. Revenue <br/>
<a id="pl.11.2"></a><var>11.2</var>raised under this paragraph must be transferred to the intermediate school district.<br/>
<a id="pl.11.3"></a><var>11.3</var>    (c) A school district must set aside at least $3 per adjusted marginal cost pupil <br/>
<a id="pl.11.4"></a><var>11.4</var>unit of the safe schools levy proceeds for the purposes authorized under paragraph (a), <br/>
<a id="pl.11.5"></a><var>11.5</var>clause (6). The district must annually certify either that: (1) its total spending on services <br/>
<a id="pl.11.6"></a><var>11.6</var>provided by the employees listed in paragraph (a), clause (6), is not less than the sum of <br/>
<a id="pl.11.7"></a><var>11.7</var>its expenditures for these purposes, excluding amounts spent under this section, in the <br/>
<a id="pl.11.8"></a><var>11.8</var>previous year plus the amount spent under this section; or (2) that the district's full-time <br/>
<a id="pl.11.9"></a><var>11.9</var>equivalent number of employees listed in paragraph (a), clause (6), is not less than the <br/>
<a id="pl.11.10"></a><var>11.10</var>number for the previous year; or (3) that the district's full-time equivalent number of <br/>
<a id="pl.11.11"></a><var>11.11</var>employees listed in paragraph (a), clause (6), including those provided through a special <br/>
<a id="pl.11.12"></a><var>11.12</var>education cooperative, intermediate school district, or education district, is not less than <br/>
<a id="pl.11.13"></a><var>11.13</var>the number for the previous year.<br/>
<a id="pl.11.14"></a><var>11.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.0.0"></a>

<a id="bill.2.1.0"></a><a id="pl.11.17"></a><var>11.17</var>    Section 1. Minnesota Statutes 2008, section 120A.41, is amended to read:<br/>
<a id="pl.11.18"></a><var>11.18</var><b>120A.41 LENGTH OF SCHOOL YEAR; DAYS OF INSTRUCTION.</b><br/>
<a id="pl.11.19"></a><var>11.19</var>A school board's annual school calendar must include at least the number of days <br/>
<a id="pl.11.20"></a><var>11.20</var>of student instruction the board formally adopted as its school calendar at the beginning of <br/>
<a id="pl.11.21"></a><var>11.21</var>the 1996-1997 school year 425 hours of instruction for a kindergarten student without a <br/>
<a id="pl.11.22"></a><var>11.22</var>disability, 935 hours of instruction for a student in grades 1 through 6, and 1,020 hours of <br/>
<a id="pl.11.23"></a><var>11.23</var>instruction for a student in grades 7 through 12, not including summer school.<br/>
<a id="pl.11.24"></a><var>11.24</var><b>EFFECTIVE DATE.</b>This section is effective for the 2010-2011 school year and <br/>
<a id="pl.11.25"></a><var>11.25</var>later.<br/>
<br/>
<a id="bill.2.2.0"></a><a id="pl.11.26"></a><var>11.26</var>    Sec. 2. Minnesota Statutes 2008, section 120B.021, subdivision 1, is amended to read:<br/>
<a id="pl.11.27"></a><var>11.27</var>    Subdivision 1. <b>Required academic standards.</b> The following subject areas are <br/>
<a id="pl.11.28"></a><var>11.28</var>required for statewide accountability:<br/>
<a id="pl.11.29"></a><var>11.29</var>    (1) language arts;<br/>
<a id="pl.11.30"></a><var>11.30</var>    (2) mathematics;<br/>
<a id="pl.11.31"></a><var>11.31</var>    (3) science;<br/>
<a id="pl.12.1"></a><var>12.1</var>    (4) social studies, including history, geography, economics, and government and <br/>
<a id="pl.12.2"></a><var>12.2</var>citizenship;<br/>
<a id="pl.12.3"></a><var>12.3</var>(5) physical education;<br/>
<a id="pl.12.4"></a><var>12.4</var>    (6) health and physical education, for which locally developed academic standards <br/>
<a id="pl.12.5"></a><var>12.5</var>apply; and<br/>
<a id="pl.12.6"></a><var>12.6</var>    (6) (7) the arts, for which statewide or locally developed academic standards apply, <br/>
<a id="pl.12.7"></a><var>12.7</var>as determined by the school district. Public elementary and middle schools must offer at <br/>
<a id="pl.12.8"></a><var>12.8</var>least three and require at least two of the following four arts areas: dance; music; theater; <br/>
<a id="pl.12.9"></a><var>12.9</var>and visual arts. Public high schools must offer at least three and require at least one of the <br/>
<a id="pl.12.10"></a><var>12.10</var>following five arts areas: media arts; dance; music; theater; and visual arts.<br/>
<a id="pl.12.11"></a><var>12.11</var>    The commissioner must submit proposed standards in science and social studies to <br/>
<a id="pl.12.12"></a><var>12.12</var>the legislature by February 1, 2004.<br/>
<a id="pl.12.13"></a><var>12.13</var>For purposes of applicable federal law, the academic standards for language arts, <br/>
<a id="pl.12.14"></a><var>12.14</var>mathematics, and science apply to all public school students, except the very few students <br/>
<a id="pl.12.15"></a><var>12.15</var>with extreme cognitive or physical impairments for whom an individualized education <br/>
<a id="pl.12.16"></a><var>12.16</var>plan team has determined that the required academic standards are inappropriate. <br/>
<a id="pl.12.17"></a><var>12.17</var>An individualized education plan team that makes this determination must establish <br/>
<a id="pl.12.18"></a><var>12.18</var>alternative standards.<br/>
<a id="pl.12.19"></a><var>12.19</var>    A school district, no later than the 2007-2008 school year, must adopt graduation <br/>
<a id="pl.12.20"></a><var>12.20</var>requirements that meet or exceed state graduation requirements established in law or <br/>
<a id="pl.12.21"></a><var>12.21</var>rule. A school district that incorporates these state graduation requirements before the <br/>
<a id="pl.12.22"></a><var>12.22</var>2007-2008 school year must provide students who enter the 9th grade in or before <br/>
<a id="pl.12.23"></a><var>12.23</var>the 2003-2004 school year the opportunity to earn a diploma based on existing locally <br/>
<a id="pl.12.24"></a><var>12.24</var>established graduation requirements in effect when the students entered the 9th grade. <br/>
<a id="pl.12.25"></a><var>12.25</var>District efforts to develop, implement, or improve instruction or curriculum as a result <br/>
<a id="pl.12.26"></a><var>12.26</var>of the provisions of this section must be consistent with sections 
         <statute_ref>120B.10</statute_ref>, 
         <statute_ref>120B.11</statute_ref>, <br/>
<a id="pl.12.27"></a><var>12.27</var>and 
         <statute_ref>120B.20</statute_ref>. <br/>
<a id="pl.12.28"></a><var>12.28</var>    The commissioner must include the contributions of Minnesota American Indian <br/>
<a id="pl.12.29"></a><var>12.29</var>tribes and communities as they relate to the academic standards during the review and <br/>
<a id="pl.12.30"></a><var>12.30</var>revision of the required academic standards.<br/>
<a id="pl.12.31"></a><var>12.31</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.12.32"></a><var>12.32</var>and applies to all school districts and charter schools beginning in the 2012-2013 school <br/>
<a id="pl.12.33"></a><var>12.33</var>year and later. A school district or charter school is strongly encouraged to implement <br/>
<a id="pl.12.34"></a><var>12.34</var>state physical education standards in an earlier school year than the 2012-2013 school <br/>
<a id="pl.12.35"></a><var>12.35</var>year if it has adopted physical education standards equivalent to the standards developed <br/>
<a id="pl.13.1"></a><var>13.1</var>by the National Association for Sport and Physical Education under section 39 on the <br/>
<a id="pl.13.2"></a><var>13.2</var>effective date of this act, or if it is scheduled to undertake the periodic review of its local <br/>
<a id="pl.13.3"></a><var>13.3</var>physical education standards under Minnesota Statutes, section 120B.023, subdivision 2, <br/>
<a id="pl.13.4"></a><var>13.4</var>paragraph (g), in a school year before the 2012-2013 school year, it is strongly encouraged <br/>
<a id="pl.13.5"></a><var>13.5</var>to implement state physical education standards consistent with section 39 in an earlier <br/>
<a id="pl.13.6"></a><var>13.6</var>school year.<br/>
<br/>
<a id="bill.2.3.0"></a><a id="pl.13.7"></a><var>13.7</var>    Sec. 3. Minnesota Statutes 2009 Supplement, section 120B.023, subdivision 2, is <br/>
<a id="pl.13.8"></a><var>13.8</var>amended to read:<br/>
<a id="pl.13.9"></a><var>13.9</var>    Subd. 2. <b>Revisions and reviews required.</b> (a) The commissioner of education must <br/>
<a id="pl.13.10"></a><var>13.10</var>revise and appropriately embed technology and information literacy standards consistent <br/>
<a id="pl.13.11"></a><var>13.11</var>with recommendations from school media specialists into the state's academic standards <br/>
<a id="pl.13.12"></a><var>13.12</var>and graduation requirements and implement a review cycle for state academic standards <br/>
<a id="pl.13.13"></a><var>13.13</var>and related benchmarks, consistent with this subdivision. During each review cycle, the <br/>
<a id="pl.13.14"></a><var>13.14</var>commissioner also must examine the alignment of each required academic standard and <br/>
<a id="pl.13.15"></a><var>13.15</var>related benchmark with the knowledge and skills students need for college readiness and <br/>
<a id="pl.13.16"></a><var>13.16</var>advanced work in the particular subject area.<br/>
<a id="pl.13.17"></a><var>13.17</var>(b) The commissioner in the 2006-2007 school year must revise and align the state's <br/>
<a id="pl.13.18"></a><var>13.18</var>academic standards and high school graduation requirements in mathematics to require <br/>
<a id="pl.13.19"></a><var>13.19</var>that students satisfactorily complete the revised mathematics standards, beginning in the <br/>
<a id="pl.13.20"></a><var>13.20</var>2010-2011 school year. Under the revised standards:<br/>
<a id="pl.13.21"></a><var>13.21</var>(1) students must satisfactorily complete an algebra I credit by the end of eighth <br/>
<a id="pl.13.22"></a><var>13.22</var>grade; and<br/>
<a id="pl.13.23"></a><var>13.23</var>(2) students scheduled to graduate in the 2014-2015 school year or later must <br/>
<a id="pl.13.24"></a><var>13.24</var>satisfactorily complete an algebra II credit or its equivalent.<br/>
<a id="pl.13.25"></a><var>13.25</var>The commissioner also must ensure that the statewide mathematics assessments <br/>
<a id="pl.13.26"></a><var>13.26</var>administered to students in grades 3 through 8 and 11 are aligned with the state academic <br/>
<a id="pl.13.27"></a><var>13.27</var>standards in mathematics, consistent with section 
         <statute_ref>120B.30, subdivision 1</statute_ref>, paragraph <br/>
<a id="pl.13.28"></a><var>13.28</var>(b). The commissioner must implement a review of the academic standards and related <br/>
<a id="pl.13.29"></a><var>13.29</var>benchmarks in mathematics beginning in the 2015-2016 school year.<br/>
<a id="pl.13.30"></a><var>13.30</var>(c) The commissioner in the 2007-2008 school year must revise and align the state's <br/>
<a id="pl.13.31"></a><var>13.31</var>academic standards and high school graduation requirements in the arts to require that <br/>
<a id="pl.13.32"></a><var>13.32</var>students satisfactorily complete the revised arts standards beginning in the 2010-2011 <br/>
<a id="pl.13.33"></a><var>13.33</var>school year. The commissioner must implement a review of the academic standards and <br/>
<a id="pl.13.34"></a><var>13.34</var>related benchmarks in arts beginning in the 2016-2017 school year.<br/>
<a id="pl.14.1"></a><var>14.1</var>(d) The commissioner in the 2008-2009 school year must revise and align the state's <br/>
<a id="pl.14.2"></a><var>14.2</var>academic standards and high school graduation requirements in science to require that <br/>
<a id="pl.14.3"></a><var>14.3</var>students satisfactorily complete the revised science standards, beginning in the 2011-2012 <br/>
<a id="pl.14.4"></a><var>14.4</var>school year. Under the revised standards, students scheduled to graduate in the 2014-2015 <br/>
<a id="pl.14.5"></a><var>14.5</var>school year or later must satisfactorily complete a chemistry or physics credit. The <br/>
<a id="pl.14.6"></a><var>14.6</var>commissioner must implement a review of the academic standards and related benchmarks <br/>
<a id="pl.14.7"></a><var>14.7</var>in science beginning in the 2017-2018 school year.<br/>
<a id="pl.14.8"></a><var>14.8</var>(e) The commissioner in the 2009-2010 school year must revise and align the state's <br/>
<a id="pl.14.9"></a><var>14.9</var>academic standards and high school graduation requirements in language arts to require <br/>
<a id="pl.14.10"></a><var>14.10</var>that students satisfactorily complete the revised language arts standards beginning in the <br/>
<a id="pl.14.11"></a><var>14.11</var>2012-2013 school year. The commissioner must implement a review of the academic <br/>
<a id="pl.14.12"></a><var>14.12</var>standards and related benchmarks in language arts beginning in the 2018-2019 school year.<br/>
<a id="pl.14.13"></a><var>14.13</var>(f) The commissioner in the 2010-2011 school year must revise and align the state's <br/>
<a id="pl.14.14"></a><var>14.14</var>academic standards and high school graduation requirements in social studies to require <br/>
<a id="pl.14.15"></a><var>14.15</var>that students satisfactorily complete the revised social studies standards beginning in the <br/>
<a id="pl.14.16"></a><var>14.16</var>2013-2014 school year. The commissioner must implement a review of the academic <br/>
<a id="pl.14.17"></a><var>14.17</var>standards and related benchmarks in social studies beginning in the 2019-2020 school year.<br/>
<a id="pl.14.18"></a><var>14.18</var>(g) School districts and charter schools must revise and align local academic <br/>
<a id="pl.14.19"></a><var>14.19</var>standards and high school graduation requirements in health, physical education, world <br/>
<a id="pl.14.20"></a><var>14.20</var>languages, and career and technical education to require students to complete the revised <br/>
<a id="pl.14.21"></a><var>14.21</var>standards beginning in a school year determined by the school district or charter school. <br/>
<a id="pl.14.22"></a><var>14.22</var>School districts and charter schools must formally establish a periodic review cycle for <br/>
<a id="pl.14.23"></a><var>14.23</var>the academic standards and related benchmarks in health, physical education, world <br/>
<a id="pl.14.24"></a><var>14.24</var>languages, and career and technical education.<br/>
<a id="pl.14.25"></a><var>14.25</var>(h) The commissioner in the 2013-2014 school year and later must use the good <br/>
<a id="pl.14.26"></a><var>14.26</var>cause exemption under section 14.388, subdivision 1, clause (3), to amend the rules <br/>
<a id="pl.14.27"></a><var>14.27</var>governing state physical education standards to conform the state standards to changes in <br/>
<a id="pl.14.28"></a><var>14.28</var>the standards developed by the National Association for Sport and Physical Education. <br/>
<a id="pl.14.29"></a><var>14.29</var>Directions to the commissioner to embed technology and information literacy standards <br/>
<a id="pl.14.30"></a><var>14.30</var>under paragraph (a) and other requirements related to state academic standards under <br/>
<a id="pl.14.31"></a><var>14.31</var>this chapter do not apply.<br/>
<a id="pl.14.32"></a><var>14.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.14.33"></a><var>14.33</var>and applies to all school districts and charter schools beginning in the 2012-2013 school <br/>
<a id="pl.14.34"></a><var>14.34</var>year and later, except that paragraph (h) applies beginning in the 2013-2014 school year <br/>
<a id="pl.14.35"></a><var>14.35</var>and later. A school district or charter school is strongly encouraged to implement state <br/>
<a id="pl.14.36"></a><var>14.36</var>physical education standards in an earlier school year than the 2012-2013 school year if it <br/>
<a id="pl.15.1"></a><var>15.1</var>has adopted physical education standards equivalent to the standards developed by the <br/>
<a id="pl.15.2"></a><var>15.2</var>National Association for Sport and Physical Education under section 39 on the effective <br/>
<a id="pl.15.3"></a><var>15.3</var>date of this act, or if it is scheduled to undertake the periodic review of its local physical <br/>
<a id="pl.15.4"></a><var>15.4</var>education standards under paragraph (g) in a school year before the 2012-2013 school <br/>
<a id="pl.15.5"></a><var>15.5</var>year, it is strongly encouraged to implement state physical education standards consistent <br/>
<a id="pl.15.6"></a><var>15.6</var>with section 39 in an earlier school year.<br/>
<br/>
<a id="bill.2.4.0"></a><a id="pl.15.7"></a><var>15.7</var>    Sec. 4. Minnesota Statutes 2008, section 120B.15, is amended to read:<br/>
<a id="pl.15.8"></a><var>15.8</var><b>120B.15 GIFTED AND TALENTED STUDENTS PROGRAMS.</b><br/>
<a id="pl.15.9"></a><var>15.9</var>    (a) School districts and charter schools may identify students, locally develop <br/>
<a id="pl.15.10"></a><var>15.10</var>programs addressing instructional and affective needs, provide staff development, and <br/>
<a id="pl.15.11"></a><var>15.11</var>evaluate programs to provide gifted and talented students with challenging and appropriate <br/>
<a id="pl.15.12"></a><var>15.12</var>educational programs.<br/>
<a id="pl.15.13"></a><var>15.13</var>    (b) School districts and charter schools may adopt guidelines for assessing and <br/>
<a id="pl.15.14"></a><var>15.14</var>identifying students for participation in gifted and talented programs. The guidelines <br/>
<a id="pl.15.15"></a><var>15.15</var>should include the use of:<br/>
<a id="pl.15.16"></a><var>15.16</var>    (1) multiple and objective criteria; and<br/>
<a id="pl.15.17"></a><var>15.17</var>    (2) assessments and procedures that are valid and reliable, fair, and based on <br/>
<a id="pl.15.18"></a><var>15.18</var>current theory and research addressing the use of tools and methods that are sensitive to <br/>
<a id="pl.15.19"></a><var>15.19</var>underrepresented groups, including, but not limited to, students who are low income, <br/>
<a id="pl.15.20"></a><var>15.20</var>minority, gifted and learning disabled, and English language learners.<br/>
<a id="pl.15.21"></a><var>15.21</var>    (c) School districts and charter schools must adopt procedures for the academic <br/>
<a id="pl.15.22"></a><var>15.22</var>acceleration of gifted and talented students. These procedures must include how the <br/>
<a id="pl.15.23"></a><var>15.23</var>district will:<br/>
<a id="pl.15.24"></a><var>15.24</var>    (1) assess a student's readiness and motivation for acceleration; and<br/>
<a id="pl.15.25"></a><var>15.25</var>    (2) match the level, complexity, and pace of the curriculum to a student to achieve <br/>
<a id="pl.15.26"></a><var>15.26</var>the best type of academic acceleration for that student.<br/>
<br/>
<a id="bill.2.5.0"></a><a id="pl.15.27"></a><var>15.27</var>    Sec. 5. <b>[120B.21] MENTAL HEALTH EDUCATION.</b><br/>
<a id="pl.15.28"></a><var>15.28</var>The legislature encourages districts to provide instruction in mental health for <br/>
<a id="pl.15.29"></a><var>15.29</var>students in grades 7 through 12. Instruction must be aligned with local health standards <br/>
<a id="pl.15.30"></a><var>15.30</var>and integrated into a district's existing programs, curriculum, or the general school <br/>
<a id="pl.15.31"></a><var>15.31</var>environment. The commissioner of education, in consultation with mental health <br/>
<a id="pl.15.32"></a><var>15.32</var>organizations, shall provide assistance to districts including:<br/>
<a id="pl.15.33"></a><var>15.33</var>(1) age-appropriate model learning activities for grades 7 through 12 that address <br/>
<a id="pl.15.34"></a><var>15.34</var>mental health components of the National Health Education Standards and the benchmarks <br/>
<a id="pl.16.1"></a><var>16.1</var>developed by the department's quality teaching network in health and best practices in <br/>
<a id="pl.16.2"></a><var>16.2</var>mental health education; and<br/>
<a id="pl.16.3"></a><var>16.3</var>(2) a directory of resources for planning and implementing age-appropriate mental <br/>
<a id="pl.16.4"></a><var>16.4</var>health curriculum and instruction in grades 7 through 12.<br/>
<br/>
<a id="bill.2.6.0"></a><a id="pl.16.5"></a><var>16.5</var>    Sec. 6. Minnesota Statutes 2009 Supplement, section 120B.30, subdivision 1, is <br/>
<a id="pl.16.6"></a><var>16.6</var>amended to read:<br/>
<a id="pl.16.7"></a><var>16.7</var>    Subdivision 1. <b>Statewide testing.</b>  (a) The commissioner, with advice from experts <br/>
<a id="pl.16.8"></a><var>16.8</var>with appropriate technical qualifications and experience and stakeholders, consistent with <br/>
<a id="pl.16.9"></a><var>16.9</var>subdivision 1a, shall include in the comprehensive assessment system, for each grade <br/>
<a id="pl.16.10"></a><var>16.10</var>level to be tested, state-constructed tests developed from and to be computer-adaptive <br/>
<a id="pl.16.11"></a><var>16.11</var>reading and mathematics assessments for general education students that are aligned <br/>
<a id="pl.16.12"></a><var>16.12</var>with the state's required academic standards under section 
         <statute_ref>120B.021</statute_ref>, include multiple <br/>
<a id="pl.16.13"></a><var>16.13</var>choice questions, and be administered annually to all students in grades 3 through 8. <br/>
<a id="pl.16.14"></a><var>16.14</var>State-developed high school tests aligned with the state's required academic standards <br/>
<a id="pl.16.15"></a><var>16.15</var>under section 
         <statute_ref>120B.021</statute_ref> and administered to all high school students in a subject other <br/>
<a id="pl.16.16"></a><var>16.16</var>than writing must include multiple choice questions. The commissioner shall establish <br/>
<a id="pl.16.17"></a><var>16.17</var>one or more months during which schools shall administer the tests to students each <br/>
<a id="pl.16.18"></a><var>16.18</var>school year. For students enrolled in grade 8 before the 2005-2006 school year, Minnesota <br/>
<a id="pl.16.19"></a><var>16.19</var>basic skills tests in reading, mathematics, and writing shall fulfill students' basic skills <br/>
<a id="pl.16.20"></a><var>16.20</var>testing requirements for a passing state notation. The passing scores of basic skills tests in <br/>
<a id="pl.16.21"></a><var>16.21</var>reading and mathematics are the equivalent of 75 percent correct for students entering <br/>
<a id="pl.16.22"></a><var>16.22</var>grade 9 based on the first uniform test administered in February 1998. Students who have <br/>
<a id="pl.16.23"></a><var>16.23</var>not successfully passed a Minnesota basic skills test by the end of the 2011-2012 school <br/>
<a id="pl.16.24"></a><var>16.24</var>year must pass the graduation-required assessments for diploma under paragraph (b).<br/>
<a id="pl.16.25"></a><var>16.25</var>(b) The state assessment system must be aligned to the most recent revision of <br/>
<a id="pl.16.26"></a><var>16.26</var>academic standards as described in section 
         <statute_ref>120B.023</statute_ref> in the following manner:<br/>
<a id="pl.16.27"></a><var>16.27</var>(1) mathematics;<br/>
<a id="pl.16.28"></a><var>16.28</var>(i) grades 3 through 8 beginning in the 2010-2011 school year; and<br/>
<a id="pl.16.29"></a><var>16.29</var>(ii) high school level beginning in the 2013-2014 2014-2015 school year;<br/>
<a id="pl.16.30"></a><var>16.30</var>(2) science; grades 5 and 8 and at the high school level beginning in the 2011-2012 <br/>
<a id="pl.16.31"></a><var>16.31</var>school year; and<br/>
<a id="pl.16.32"></a><var>16.32</var>(3) language arts and reading; grades 3 through 8 and high school level beginning in <br/>
<a id="pl.16.33"></a><var>16.33</var>the 2012-2013 school year.<br/>
<a id="pl.16.34"></a><var>16.34</var>    (c) For students enrolled in grade 8 in the 2005-2006 school year and later, only the <br/>
<a id="pl.16.35"></a><var>16.35</var>following options shall fulfill students' state graduation test requirements:<br/>
<a id="pl.17.1"></a><var>17.1</var>    (1) for reading and mathematics:<br/>
<a id="pl.17.2"></a><var>17.2</var>    (i) obtaining an achievement level equivalent to or greater than proficient as <br/>
<a id="pl.17.3"></a><var>17.3</var>determined through a standard setting process on the Minnesota comprehensive <br/>
<a id="pl.17.4"></a><var>17.4</var>assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing <br/>
<a id="pl.17.5"></a><var>17.5</var>score as determined through a standard setting process on the graduation-required <br/>
<a id="pl.17.6"></a><var>17.6</var>assessment for diploma in grade 10 for reading and grade 11 for mathematics or <br/>
<a id="pl.17.7"></a><var>17.7</var>subsequent retests;<br/>
<a id="pl.17.8"></a><var>17.8</var>    (ii) achieving a passing score as determined through a standard setting process on the <br/>
<a id="pl.17.9"></a><var>17.9</var>state-identified language proficiency test in reading and the mathematics test for English <br/>
<a id="pl.17.10"></a><var>17.10</var>language learners or the graduation-required assessment for diploma equivalent of those <br/>
<a id="pl.17.11"></a><var>17.11</var>assessments for students designated as English language learners;<br/>
<a id="pl.17.12"></a><var>17.12</var>    (iii) achieving an individual passing score on the graduation-required assessment <br/>
<a id="pl.17.13"></a><var>17.13</var>for diploma as determined by appropriate state guidelines for students with an individual <br/>
<a id="pl.17.14"></a><var>17.14</var>education plan or 504 plan;<br/>
<a id="pl.17.15"></a><var>17.15</var>    (iv) obtaining achievement level equivalent to or greater than proficient as <br/>
<a id="pl.17.16"></a><var>17.16</var>determined through a standard setting process on the state-identified alternate assessment <br/>
<a id="pl.17.17"></a><var>17.17</var>or assessments in grade 10 for reading and grade 11 for mathematics for students with <br/>
<a id="pl.17.18"></a><var>17.18</var>an individual education plan; or<br/>
<a id="pl.17.19"></a><var>17.19</var>    (v) achieving an individual passing score on the state-identified alternate assessment <br/>
<a id="pl.17.20"></a><var>17.20</var>or assessments as determined by appropriate state guidelines for students with an <br/>
<a id="pl.17.21"></a><var>17.21</var>individual education plan; and<br/>
<a id="pl.17.22"></a><var>17.22</var>    (2) for writing:<br/>
<a id="pl.17.23"></a><var>17.23</var>    (i) achieving a passing score on the graduation-required assessment for diploma;<br/>
<a id="pl.17.24"></a><var>17.24</var>    (ii) achieving a passing score as determined through a standard setting process on <br/>
<a id="pl.17.25"></a><var>17.25</var>the state-identified language proficiency test in writing for students designated as English <br/>
<a id="pl.17.26"></a><var>17.26</var>language learners;<br/>
<a id="pl.17.27"></a><var>17.27</var>    (iii) achieving an individual passing score on the graduation-required assessment <br/>
<a id="pl.17.28"></a><var>17.28</var>for diploma as determined by appropriate state guidelines for students with an individual <br/>
<a id="pl.17.29"></a><var>17.29</var>education plan or 504 plan; or<br/>
<a id="pl.17.30"></a><var>17.30</var>    (iv) achieving an individual passing score on the state-identified alternate assessment <br/>
<a id="pl.17.31"></a><var>17.31</var>or assessments as determined by appropriate state guidelines for students with an <br/>
<a id="pl.17.32"></a><var>17.32</var>individual education plan.<br/>
<a id="pl.17.33"></a><var>17.33</var>    (d) Students enrolled in grade 8 in any school year from the 2005-2006 school <br/>
<a id="pl.17.34"></a><var>17.34</var>year to the 2009-2010 school year who do not pass the mathematics graduation-required <br/>
<a id="pl.17.35"></a><var>17.35</var>assessment for diploma under paragraph (b) are eligible to receive a high school diploma <br/>
<a id="pl.17.36"></a><var>17.36</var>with a passing state notation if they:<br/>
<a id="pl.18.1"></a><var>18.1</var>(1) complete with a passing score or grade all state and local coursework and credits <br/>
<a id="pl.18.2"></a><var>18.2</var>required for graduation by the school board granting the students their diploma;<br/>
<a id="pl.18.3"></a><var>18.3</var>(2) participate in district-prescribed academic remediation in mathematics; and<br/>
<a id="pl.18.4"></a><var>18.4</var>    (3) fully participate in at least two retests of the mathematics GRAD test or until <br/>
<a id="pl.18.5"></a><var>18.5</var>they pass the mathematics GRAD test, whichever comes first. A school, district, or <br/>
<a id="pl.18.6"></a><var>18.6</var>charter school must place on the high school transcript a student's highest current pass <br/>
<a id="pl.18.7"></a><var>18.7</var>status for each subject that has a required graduation assessment score for each of the <br/>
<a id="pl.18.8"></a><var>18.8</var>following assessments on the student's high school transcript: the mathematics Minnesota <br/>
<a id="pl.18.9"></a><var>18.9</var>Comprehensive Assessment, reading Minnesota Comprehensive Assessment, and writing <br/>
<a id="pl.18.10"></a><var>18.10</var>Graduation-Required Assessment for Diploma, and when applicable, the mathematics <br/>
<a id="pl.18.11"></a><var>18.11</var>Graduation-Required Assessment for Diploma and reading Graduation-Required <br/>
<a id="pl.18.12"></a><var>18.12</var>Assessment for Diploma.<br/>
<a id="pl.18.13"></a><var>18.13</var>In addition, the school board granting the students their diplomas may formally <br/>
<a id="pl.18.14"></a><var>18.14</var>decide to include a notation of high achievement on the high school diplomas of those <br/>
<a id="pl.18.15"></a><var>18.15</var>graduating seniors who, according to established school board criteria, demonstrate <br/>
<a id="pl.18.16"></a><var>18.16</var>exemplary academic achievement during high school.<br/>
<a id="pl.18.17"></a><var>18.17</var>(e) The 3rd through 8th grade computer-adaptive assessments and high school test <br/>
<a id="pl.18.18"></a><var>18.18</var>results shall be available to districts for diagnostic purposes affecting student learning and <br/>
<a id="pl.18.19"></a><var>18.19</var>district instruction and curriculum, and for establishing educational accountability. The <br/>
<a id="pl.18.20"></a><var>18.20</var>commissioner must disseminate to the public the computer-adaptive assessments and high <br/>
<a id="pl.18.21"></a><var>18.21</var>school test results upon receiving those results.<br/>
<a id="pl.18.22"></a><var>18.22</var>    (f) The 3rd through 8th grade computer-adaptive assessments and high school tests <br/>
<a id="pl.18.23"></a><var>18.23</var>must be aligned with state academic standards. The commissioner shall determine the <br/>
<a id="pl.18.24"></a><var>18.24</var>testing process and the order of administration. The statewide results shall be aggregated <br/>
<a id="pl.18.25"></a><var>18.25</var>at the site and district level, consistent with subdivision 1a.<br/>
<a id="pl.18.26"></a><var>18.26</var>    (g) In addition to the testing and reporting requirements under this section, the <br/>
<a id="pl.18.27"></a><var>18.27</var>commissioner shall include the following components in the statewide public reporting <br/>
<a id="pl.18.28"></a><var>18.28</var>system:<br/>
<a id="pl.18.29"></a><var>18.29</var>    (1) uniform statewide testing of all students in grades 3 through 8 and at the high <br/>
<a id="pl.18.30"></a><var>18.30</var>school level that provides appropriate, technically sound accommodations or alternate <br/>
<a id="pl.18.31"></a><var>18.31</var>assessments;<br/>
<a id="pl.18.32"></a><var>18.32</var>    (2) educational indicators that can be aggregated and compared across school <br/>
<a id="pl.18.33"></a><var>18.33</var>districts and across time on a statewide basis, including average daily attendance, high <br/>
<a id="pl.18.34"></a><var>18.34</var>school graduation rates, and high school drop-out rates by age and grade level;<br/>
<a id="pl.18.35"></a><var>18.35</var>    (3) state results on the American College Test; and<br/>
<a id="pl.19.1"></a><var>19.1</var>    (4) state results from participation in the National Assessment of Educational <br/>
<a id="pl.19.2"></a><var>19.2</var>Progress so that the state can benchmark its performance against the nation and other <br/>
<a id="pl.19.3"></a><var>19.3</var>states, and, where possible, against other countries, and contribute to the national effort <br/>
<a id="pl.19.4"></a><var>19.4</var>to monitor achievement.<br/>
<a id="pl.19.5"></a><var>19.5</var>(h) Notwithstanding other law to the contrary, the commissioner must not sign a <br/>
<a id="pl.19.6"></a><var>19.6</var>memorandum of understanding, agree to participate in a consortium or partnership, or <br/>
<a id="pl.19.7"></a><var>19.7</var>enter into any other agreement with any other state to develop shared common assessments <br/>
<a id="pl.19.8"></a><var>19.8</var>of K-12 academic standards without first receiving specific legislative authorization.<br/>
<a id="pl.19.9"></a><var>19.9</var><b>EFFECTIVE DATE.</b>Paragraph (h) is effective the day following final enactment, <br/>
<a id="pl.19.10"></a><var>19.10</var>and applies to agreements entered into after the effective date of this act. Requirements for <br/>
<a id="pl.19.11"></a><var>19.11</var>using computer-adaptive mathematics assessments for grades 3 through 8 apply in the <br/>
<a id="pl.19.12"></a><var>19.12</var>2011-2012 school year and later and requirements for using computer-adaptive reading <br/>
<a id="pl.19.13"></a><var>19.13</var>assessments for grades 3 through 8 apply in the 2013-2014 school year and later.<br/>
<br/>
<a id="bill.2.7.0"></a><a id="pl.19.14"></a><var>19.14</var>    Sec. 7. Minnesota Statutes 2009 Supplement, section 120B.30, subdivision 1a, is <br/>
<a id="pl.19.15"></a><var>19.15</var>amended to read:<br/>
<a id="pl.19.16"></a><var>19.16</var>    Subd. 1a. <b>Statewide and local assessments; results.</b> (a) For purposes of this <br/>
<a id="pl.19.17"></a><var>19.17</var>section, the following definitions have the meanings given them.<br/>
<a id="pl.19.18"></a><var>19.18</var>(1) "Computer-adaptive assessments" means fully adaptive assessments or partially <br/>
<a id="pl.19.19"></a><var>19.19</var>adaptive assessments.<br/>
<a id="pl.19.20"></a><var>19.20</var>(2) "Fully adaptive assessments" include test items that are on-grade level and items <br/>
<a id="pl.19.21"></a><var>19.21</var>that may be above or below a student's grade level.<br/>
<a id="pl.19.22"></a><var>19.22</var>(3) "Partially adaptive assessments" include two portions of test items, where one <br/>
<a id="pl.19.23"></a><var>19.23</var>portion is limited to on-grade level test items and a second portion includes test items that <br/>
<a id="pl.19.24"></a><var>19.24</var>are on-grade level or above or below a student's grade level.<br/>
<a id="pl.19.25"></a><var>19.25</var>(4) "On-grade level" test items contain subject area content that is aligned to state <br/>
<a id="pl.19.26"></a><var>19.26</var>academic standards for the grade level of the student taking the assessment.<br/>
<a id="pl.19.27"></a><var>19.27</var>(5) "Above-grade level" test items contain subject area content that is above the grade <br/>
<a id="pl.19.28"></a><var>19.28</var>level of the student taking the assessment and are considered aligned with state academic <br/>
<a id="pl.19.29"></a><var>19.29</var>standards to the extent they are aligned with content represented in state academic <br/>
<a id="pl.19.30"></a><var>19.30</var>standards above the grade level of the student taking the assessment. Notwithstanding <br/>
<a id="pl.19.31"></a><var>19.31</var>the student's grade level, administering above-grade level test items to a student does not <br/>
<a id="pl.19.32"></a><var>19.32</var>violate the requirement that state assessments must be aligned with state standards.<br/>
<a id="pl.19.33"></a><var>19.33</var>(6) "Below-grade level" test items contain subject area content that is below <br/>
<a id="pl.19.34"></a><var>19.34</var>the grade level of the student taking the test and are considered aligned with state <br/>
<a id="pl.19.35"></a><var>19.35</var>academic standards to the extent they are aligned with content represented in state <br/>
<a id="pl.20.1"></a><var>20.1</var>academic standards below the student's current grade level. Notwithstanding the student's <br/>
<a id="pl.20.2"></a><var>20.2</var>grade level, administering below-grade level test items to a student does not violate the <br/>
<a id="pl.20.3"></a><var>20.3</var>requirement that state assessments must be aligned with state standards.<br/>
<a id="pl.20.4"></a><var>20.4</var>(b) The commissioner must use fully adaptive assessments to the extent no net loss <br/>
<a id="pl.20.5"></a><var>20.5</var>of federal and state funds occurs as a result of using these assessments. If a net loss of <br/>
<a id="pl.20.6"></a><var>20.6</var>federal and state funds were to occur under this subdivision, then the commissioner must <br/>
<a id="pl.20.7"></a><var>20.7</var>use partially adaptive assessments to meet existing federal educational accountability <br/>
<a id="pl.20.8"></a><var>20.8</var>requirements.<br/>
<a id="pl.20.9"></a><var>20.9</var>(c) For purposes of conforming with existing federal educational accountability <br/>
<a id="pl.20.10"></a><var>20.10</var>requirements, the commissioner must develop and implement computer-adaptive reading <br/>
<a id="pl.20.11"></a><var>20.11</var>and mathematics assessments for grades 3 through 8, state-developed high school <br/>
<a id="pl.20.12"></a><var>20.12</var>reading and mathematics tests aligned with state academic standards, and science <br/>
<a id="pl.20.13"></a><var>20.13</var>assessments under clause (2) that districts and sites must use to monitor student growth <br/>
<a id="pl.20.14"></a><var>20.14</var>toward achieving those standards. In developing and implementing computer-adaptive <br/>
<a id="pl.20.15"></a><var>20.15</var>assessments, the commissioner must allow for paper-and-pencil tests that are the <br/>
<a id="pl.20.16"></a><var>20.16</var>equivalent of computer-adaptive assessments under this section to the extent these tests <br/>
<a id="pl.20.17"></a><var>20.17</var>are needed to accommodate the technology capacity of individual school districts. The <br/>
<a id="pl.20.18"></a><var>20.18</var>commissioner must not develop statewide assessments for academic standards in social <br/>
<a id="pl.20.19"></a><var>20.19</var>studies, health and physical education, and the arts. The commissioner must require:<br/>
<a id="pl.20.20"></a><var>20.20</var>    (1) annual computer-adaptive reading and mathematics assessments in grades 3 <br/>
<a id="pl.20.21"></a><var>20.21</var>through 8, and high school reading and mathematics tests; and<br/>
<a id="pl.20.22"></a><var>20.22</var>    (2) annual science assessments in one grade in the grades 3 through 5 span, the <br/>
<a id="pl.20.23"></a><var>20.23</var>grades 6 through 8 span, and a life sciences assessment in the grades 9 through 12 span, <br/>
<a id="pl.20.24"></a><var>20.24</var>and the commissioner must not require students to achieve a passing score on high school <br/>
<a id="pl.20.25"></a><var>20.25</var>science assessments as a condition of receiving a high school diploma.<br/>
<a id="pl.20.26"></a><var>20.26</var>(d) The commissioner must ensure that for annual computer-adaptive assessments:<br/>
<a id="pl.20.27"></a><var>20.27</var>(1) individual student performance data and achievement and summary reports are <br/>
<a id="pl.20.28"></a><var>20.28</var>available to all schools within three school days of when students take an assessment;<br/>
<a id="pl.20.29"></a><var>20.29</var>(2) growth information is available for each student from the student's first <br/>
<a id="pl.20.30"></a><var>20.30</var>assessment to each proximate assessment using a constant measurement scale;<br/>
<a id="pl.20.31"></a><var>20.31</var>(3) parents, teachers, and school administrators are able to use elementary and <br/>
<a id="pl.20.32"></a><var>20.32</var>middle school student performance data to project student achievement in high school;<br/>
<a id="pl.20.33"></a><var>20.33</var>(4) teachers and school administrators are able to use formative information about <br/>
<a id="pl.20.34"></a><var>20.34</var>students' academic strengths and weaknesses, to the extent it is  available, to improve <br/>
<a id="pl.20.35"></a><var>20.35</var>student instruction and indicate specific skills and knowledge that should be introduced <br/>
<a id="pl.21.1"></a><var>21.1</var>and developed for students at given score levels, organized by strands within subject areas, <br/>
<a id="pl.21.2"></a><var>21.2</var>and aligned to state academic standards; and<br/>
<a id="pl.21.3"></a><var>21.3</var>(5) the maximum number of school districts have the opportunity to replace <br/>
<a id="pl.21.4"></a><var>21.4</var>district-purchased computer-adaptive assessments with state-developed and state-funded <br/>
<a id="pl.21.5"></a><var>21.5</var>computer-adaptive assessments.<br/>
<a id="pl.21.6"></a><var>21.6</var>    (b) (e) The commissioner must ensure that all statewide tests administered to <br/>
<a id="pl.21.7"></a><var>21.7</var>elementary and secondary students measure students' academic knowledge and skills and <br/>
<a id="pl.21.8"></a><var>21.8</var>not students' values, attitudes, and beliefs.<br/>
<a id="pl.21.9"></a><var>21.9</var>    (c) (f) Reporting of assessment results must:<br/>
<a id="pl.21.10"></a><var>21.10</var>    (1) provide timely, useful, and understandable information on the performance of <br/>
<a id="pl.21.11"></a><var>21.11</var>individual students, schools, school districts, and the state;<br/>
<a id="pl.21.12"></a><var>21.12</var>    (2) include a value-added growth indicator of student achievement under section <br/>
<statute_ref><a id="pl.21.13"></a><var>21.13</var>120B.35, subdivision 3
         </statute_ref>, paragraph (b); and<br/>
<a id="pl.21.14"></a><var>21.14</var>    (3)(i) for students enrolled in grade 8 before the 2005-2006 school year, determine <br/>
<a id="pl.21.15"></a><var>21.15</var>whether students have met the state's basic skills requirements; and<br/>
<a id="pl.21.16"></a><var>21.16</var>    (ii) for students enrolled in grade 8 in the 2005-2006 school year and later, determine <br/>
<a id="pl.21.17"></a><var>21.17</var>whether students have met the state's academic standards.<br/>
<a id="pl.21.18"></a><var>21.18</var>    (d) (g) Consistent with applicable federal law and subdivision 1, paragraph (d), <br/>
<a id="pl.21.19"></a><var>21.19</var>clause (1), the commissioner must include appropriate, technically sound accommodations <br/>
<a id="pl.21.20"></a><var>21.20</var>or alternative assessments for the very few students with disabilities for whom statewide <br/>
<a id="pl.21.21"></a><var>21.21</var>assessments are inappropriate and for students with limited English proficiency.<br/>
<a id="pl.21.22"></a><var>21.22</var>    (e) (h) A school, school district, and charter school must administer statewide <br/>
<a id="pl.21.23"></a><var>21.23</var>assessments under this section, as the assessments become available, to evaluate student <br/>
<a id="pl.21.24"></a><var>21.24</var>proficiency in the context of the state's grade level academic standards. If a state <br/>
<a id="pl.21.25"></a><var>21.25</var>assessment is not available, a school, school district, and charter school must determine <br/>
<a id="pl.21.26"></a><var>21.26</var>locally if a student has met the required academic standards. A school, school district, <br/>
<a id="pl.21.27"></a><var>21.27</var>or charter school may use a student's performance on a statewide assessment as one of <br/>
<a id="pl.21.28"></a><var>21.28</var>multiple criteria to determine grade promotion or retention. A school, school district, or <br/>
<a id="pl.21.29"></a><var>21.29</var>charter school may use a high school student's performance on a statewide assessment <br/>
<a id="pl.21.30"></a><var>21.30</var>as a percentage of the student's final grade in a course, or place a student's assessment <br/>
<a id="pl.21.31"></a><var>21.31</var>score on the student's transcript.<br/>
<a id="pl.21.32"></a><var>21.32</var><b>EFFECTIVE DATE.</b>Requirements for using computer-adaptive mathematics <br/>
<a id="pl.21.33"></a><var>21.33</var>assessments for grades 3 through 8 apply in the 2011-2012 school year and later and <br/>
<a id="pl.21.34"></a><var>21.34</var>requirements for using computer-adaptive reading assessments for grades 3 through 8 <br/>
<a id="pl.21.35"></a><var>21.35</var>apply in the 2013-2014 school year and later.<br/>
<br/>
<a id="bill.2.8.0"></a><a id="pl.22.1"></a><var>22.1</var>    Sec. 8. Minnesota Statutes 2009 Supplement, section 120B.30, is amended by adding a <br/>
<a id="pl.22.2"></a><var>22.2</var>subdivision to read:<br/>
<a id="pl.22.3"></a><var>22.3</var>    Subd. 1b. <b>High school algebra end-of-course assessment.</b> (a) Notwithstanding <br/>
<a id="pl.22.4"></a><var>22.4</var>subdivision 1, the commissioner shall establish a statewide high school algebra <br/>
<a id="pl.22.5"></a><var>22.5</var>end-of-course assessment for students entering grade 8 in the 2010-2011 school year <br/>
<a id="pl.22.6"></a><var>22.6</var>and later that provides information on the college and career readiness of Minnesota <br/>
<a id="pl.22.7"></a><var>22.7</var>students and fulfills federal accountability requirements, consistent with this subdivision <br/>
<a id="pl.22.8"></a><var>22.8</var>and related rules. For purposes of this subdivision, "college and career readiness" means <br/>
<a id="pl.22.9"></a><var>22.9</var>the knowledge and skills that a high school graduate needs to do either credit-bearing <br/>
<a id="pl.22.10"></a><var>22.10</var>coursework at a two-year or four-year college or university or career-track employment <br/>
<a id="pl.22.11"></a><var>22.11</var>that pays a living wage, provides employment benefits, and offers clear pathways for <br/>
<a id="pl.22.12"></a><var>22.12</var>advancement through further education and training.<br/>
<a id="pl.22.13"></a><var>22.13</var>(b) This statewide high school algebra end-of-course assessment must conform <br/>
<a id="pl.22.14"></a><var>22.14</var>with the following:<br/>
<a id="pl.22.15"></a><var>22.15</var>(1) align with the most recently revised academic content standards under section <br/>
<a id="pl.22.16"></a><var>22.16</var>120B.023, subdivision 2;<br/>
<a id="pl.22.17"></a><var>22.17</var>(2) include both multiple-choice and open-ended items that assess the appropriate <br/>
<a id="pl.22.18"></a><var>22.18</var>algebra knowledge and skills contained in the state's academic content standards;<br/>
<a id="pl.22.19"></a><var>22.19</var>(3) be designed for computer administration and scoring so that, beginning the <br/>
<a id="pl.22.20"></a><var>22.20</var>second year a computerized test is administered and as soon as practicable during the <br/>
<a id="pl.22.21"></a><var>22.21</var>first year a computerized test is administered, the exam results of students who take <br/>
<a id="pl.22.22"></a><var>22.22</var>computerized tests are available to the school or district within three full school days after <br/>
<a id="pl.22.23"></a><var>22.23</var>the exam is administered, among other design characteristics;<br/>
<a id="pl.22.24"></a><var>22.24</var>(4) be administered at regular intervals that align with the most common high school <br/>
<a id="pl.22.25"></a><var>22.25</var>schedules in Minnesota;<br/>
<a id="pl.22.26"></a><var>22.26</var>(5) generate achievement levels established through a professionally recognized <br/>
<a id="pl.22.27"></a><var>22.27</var>methodology;<br/>
<a id="pl.22.28"></a><var>22.28</var>(6) use achievement level descriptors that define a student's college and career <br/>
<a id="pl.22.29"></a><var>22.29</var>readiness;<br/>
<a id="pl.22.30"></a><var>22.30</var>(7) comprise 20 percent of the student's overall course grade in the corresponding <br/>
<a id="pl.22.31"></a><var>22.31</var>course;<br/>
<a id="pl.22.32"></a><var>22.32</var>(8) require a student who does not pass a high school algebra course to (i) <br/>
<a id="pl.22.33"></a><var>22.33</var>retake the course or complete a district-authorized credit recovery class, (ii) opt, at the <br/>
<a id="pl.22.34"></a><var>22.34</var>student's election, to retake the end-of-course assessment within a regularly scheduled <br/>
<a id="pl.22.35"></a><var>22.35</var>administration window, and (iii) have the student select the exam score on the initial test <br/>
<a id="pl.22.36"></a><var>22.36</var>or the retest to count as the equivalent of 20 percent of the student's overall course grade;<br/>
<a id="pl.23.1"></a><var>23.1</var>(9) allow an eligible student to meet this requirement through an alternative method <br/>
<a id="pl.23.2"></a><var>23.2</var>that demonstrates the student's college and career readiness:<br/>
<a id="pl.23.3"></a><var>23.3</var>(i) for high school students who transfer into Minnesota from another state where <br/>
<a id="pl.23.4"></a><var>23.4</var>the algebra course content, as applicable, is of equal or greater rigor, pass that state's high <br/>
<a id="pl.23.5"></a><var>23.5</var>school course and graduation requirements in algebra, as applicable;<br/>
<a id="pl.23.6"></a><var>23.6</var>(ii) allow a student who has an active individualized education program to achieve a <br/>
<a id="pl.23.7"></a><var>23.7</var>passing status at an individual level as prescribed by the commissioner;<br/>
<a id="pl.23.8"></a><var>23.8</var>(iii) waive the required exam for a high school student who is an English language <br/>
<a id="pl.23.9"></a><var>23.9</var>learner under section 124D.59 and who has been enrolled for four or fewer years in a <br/>
<a id="pl.23.10"></a><var>23.10</var>school in which English is the primary language of instruction; or<br/>
<a id="pl.23.11"></a><var>23.11</var>(iv) other alternative methods recommended by the Assessment Advisory <br/>
<a id="pl.23.12"></a><var>23.12</var>Committee, if subsequently specifically authorized by law to allow other alternative <br/>
<a id="pl.23.13"></a><var>23.13</var>methods;<br/>
<a id="pl.23.14"></a><var>23.14</var>(10) use three consecutive school years of research and analysis through the <br/>
<a id="pl.23.15"></a><var>23.15</var>2014-2015 school year, as prescribed by the commissioner, to calculate and report an <br/>
<a id="pl.23.16"></a><var>23.16</var>alignment index that compares students' final grades in this course with their end-of-course <br/>
<a id="pl.23.17"></a><var>23.17</var>assessment scores;<br/>
<a id="pl.23.18"></a><var>23.18</var>(11) subsequent to calculating and reporting the alignment index under clause (10), <br/>
<a id="pl.23.19"></a><var>23.19</var>require schools that are highly misaligned for two or more consecutive school years to <br/>
<a id="pl.23.20"></a><var>23.20</var>transmit written notice of the misalignment to all parents of students enrolled in the school, <br/>
<a id="pl.23.21"></a><var>23.21</var>as prescribed by the commissioner; and<br/>
<a id="pl.23.22"></a><var>23.22</var>(12) when schools are highly misaligned for two or more consecutive years under <br/>
<a id="pl.23.23"></a><var>23.23</var>clause (11), use school district funds under section 122A.60, subdivision 1a, paragraph <br/>
<a id="pl.23.24"></a><var>23.24</var>(a), to correct the misalignment.<br/>
<a id="pl.23.25"></a><var>23.25</var>(c) The requirements of this subdivision apply to students in public schools, <br/>
<a id="pl.23.26"></a><var>23.26</var>including charter schools, who enter grade 8 in the 2010-2011 school year or later. The <br/>
<a id="pl.23.27"></a><var>23.27</var>commissioner may establish a transition period where students who enter grade 8 in the <br/>
<a id="pl.23.28"></a><var>23.28</var>2010-2011 or 2011-2012 school year graduate either under the Graduation-Required <br/>
<a id="pl.23.29"></a><var>23.29</var>Assessment for Diploma requirements under section 120B.30, subdivision 1, or this <br/>
<a id="pl.23.30"></a><var>23.30</var>subdivision. The commissioner may seek authority from the legislature to adjust the <br/>
<a id="pl.23.31"></a><var>23.31</var>time line under this paragraph if  circumstances such as changes in federal law governing <br/>
<a id="pl.23.32"></a><var>23.32</var>educational accountability and assessment warrant such an adjustment.<br/>
<a id="pl.23.33"></a><var>23.33</var>(d) To fully implement this subdivision and enable school districts to provide <br/>
<a id="pl.23.34"></a><var>23.34</var>intervention and support to struggling students and improve instruction for all students, <br/>
<a id="pl.23.35"></a><var>23.35</var>the commissioner must provide districts with (1) a benchmark assessment aligned with <br/>
<a id="pl.23.36"></a><var>23.36</var>the high school algebra end-of-course assessment, and as funding allows, may provide <br/>
<a id="pl.24.1"></a><var>24.1</var>districts with (2) an item bank available to teachers for creating formative assessments to <br/>
<a id="pl.24.2"></a><var>24.2</var>help students prepare for the high school algebra end-of-course assessment.<br/>
<a id="pl.24.3"></a><var>24.3</var>(e) The commissioner shall expand the membership and purpose of the Assessment <br/>
<a id="pl.24.4"></a><var>24.4</var>Advisory Committee established under section 120B.365 to include assessment experts <br/>
<a id="pl.24.5"></a><var>24.5</var>and practitioners from both secondary and postsecondary education systems and other <br/>
<a id="pl.24.6"></a><var>24.6</var>appropriate stakeholders to monitor the implementation of and student outcomes based <br/>
<a id="pl.24.7"></a><var>24.7</var>on the algebra end-of-course assessment and policies and the state support available <br/>
<a id="pl.24.8"></a><var>24.8</var>to districts, including small or rural districts, under this subdivision. This committee <br/>
<a id="pl.24.9"></a><var>24.9</var>shall report annually by February 15 to the commissioner and the legislature on the <br/>
<a id="pl.24.10"></a><var>24.10</var>implementation of and student outcomes based on the assessment and policies under this <br/>
<a id="pl.24.11"></a><var>24.11</var>subdivision. Notwithstanding section 15.059, subdivision 3, committee members shall not <br/>
<a id="pl.24.12"></a><var>24.12</var>receive compensation, per diem payments, or reimbursement for expenses.<br/>
<a id="pl.24.13"></a><var>24.13</var>(f) Using a solicitation process that includes a "request for proposal" process and <br/>
<a id="pl.24.14"></a><var>24.14</var>multiple responses, the commissioner shall contract for at least two  independent studies <br/>
<a id="pl.24.15"></a><var>24.15</var>at two-year intervals to evaluate (1) the implementation of the requirements and (2) the <br/>
<a id="pl.24.16"></a><var>24.16</var>availability and efficacy of resources to support and improve student outcomes based on <br/>
<a id="pl.24.17"></a><var>24.17</var>student achievement data under this subdivision. The commissioner must submit the <br/>
<a id="pl.24.18"></a><var>24.18</var>results of the first study to the education policy and finance committees of the legislature <br/>
<a id="pl.24.19"></a><var>24.19</var>by February 15, 2015. The commissioner must submit the results of the second study <br/>
<a id="pl.24.20"></a><var>24.20</var>to the legislature by February 15, 2017.<br/>
<a id="pl.24.21"></a><var>24.21</var>(g) The commissioner must not begin to develop additional statewide end-of-course <br/>
<a id="pl.24.22"></a><var>24.22</var>exams in geometry, chemistry, or physics until specifically authorized in law to do so.<br/>
<a id="pl.24.23"></a><var>24.23</var>(h) A district or charter school must indicate on a student's transcript the student's <br/>
<a id="pl.24.24"></a><var>24.24</var>level of college and career readiness in algebra under this subdivision after the levels have <br/>
<a id="pl.24.25"></a><var>24.25</var>been established through a professionally recognized methodology.<br/>
<a id="pl.24.26"></a><var>24.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.9.0"></a><a id="pl.24.27"></a><var>24.27</var>    Sec. 9. Minnesota Statutes 2009 Supplement, section 120B.30, subdivision 3, is <br/>
<a id="pl.24.28"></a><var>24.28</var>amended to read:<br/>
<a id="pl.24.29"></a><var>24.29</var>    Subd. 3. <b>Reporting.</b> The commissioner shall report test data results publicly and <br/>
<a id="pl.24.30"></a><var>24.30</var>to stakeholders, including the performance achievement levels developed from students' <br/>
<a id="pl.24.31"></a><var>24.31</var>unweighted test scores in each tested subject and a listing of demographic factors that <br/>
<a id="pl.24.32"></a><var>24.32</var>strongly correlate with student performance. The test results must not include personally <br/>
<a id="pl.24.33"></a><var>24.33</var>identifiable information as defined in Code of Federal Regulations, title 34, section 99.3. <br/>
<a id="pl.24.34"></a><var>24.34</var>The commissioner shall also report data that compares performance results among school <br/>
<a id="pl.24.35"></a><var>24.35</var>sites, school districts, Minnesota and other states, and Minnesota and other nations. The <br/>
<a id="pl.25.1"></a><var>25.1</var>commissioner shall disseminate to schools and school districts a more comprehensive <br/>
<a id="pl.25.2"></a><var>25.2</var>report containing testing information that meets local needs for evaluating instruction <br/>
<a id="pl.25.3"></a><var>25.3</var>and curriculum.<br/>
<br/>
<a id="bill.2.10.0"></a><a id="pl.25.4"></a><var>25.4</var>    Sec. 10. Minnesota Statutes 2009 Supplement, section 120B.30, subdivision 4, is <br/>
<a id="pl.25.5"></a><var>25.5</var>amended to read:<br/>
<a id="pl.25.6"></a><var>25.6</var>    Subd. 4. <b>Access to tests.</b> Consistent with section 13.34, the commissioner must <br/>
<a id="pl.25.7"></a><var>25.7</var>adopt and publish a policy to provide public and parental access for review of basic skills <br/>
<a id="pl.25.8"></a><var>25.8</var>tests, Minnesota Comprehensive Assessments, or any other such statewide test and <br/>
<a id="pl.25.9"></a><var>25.9</var>assessment which would not compromise the objectivity or fairness of the testing or <br/>
<a id="pl.25.10"></a><var>25.10</var>examination process. Upon receiving a written request, the commissioner must make <br/>
<a id="pl.25.11"></a><var>25.11</var>available to parents or guardians a copy of their student's actual responses to the test <br/>
<a id="pl.25.12"></a><var>25.12</var>questions for their review.<br/>
<br/>
<a id="bill.2.11.0"></a><a id="pl.25.13"></a><var>25.13</var>    Sec. 11. Minnesota Statutes 2009 Supplement, section 120B.35, subdivision 3, is <br/>
<a id="pl.25.14"></a><var>25.14</var>amended to read:<br/>
<a id="pl.25.15"></a><var>25.15</var>    Subd. 3. <b>State growth target; other state measures.</b> (a) The state's educational <br/>
<a id="pl.25.16"></a><var>25.16</var>assessment system measuring individual students' educational growth is based on <br/>
<a id="pl.25.17"></a><var>25.17</var>indicators of achievement growth that show an individual student's prior achievement. <br/>
<a id="pl.25.18"></a><var>25.18</var>Indicators of achievement and prior achievement must be based on highly reliable <br/>
<a id="pl.25.19"></a><var>25.19</var>statewide or districtwide assessments.<br/>
<a id="pl.25.20"></a><var>25.20</var>(b) The commissioner, in consultation with a stakeholder group that includes <br/>
<a id="pl.25.21"></a><var>25.21</var>assessment and evaluation directors and staff and researchers must implement a model <br/>
<a id="pl.25.22"></a><var>25.22</var>that uses a value-added growth indicator and includes criteria for identifying schools <br/>
<a id="pl.25.23"></a><var>25.23</var>and school districts that demonstrate medium and high growth under section 
         <statute_ref>120B.299</statute_ref>, <br/>
<a id="pl.25.24"></a><var>25.24</var>subdivisions 8 and 9, and may recommend other value-added measures under section <br/>
<statute_ref><a id="pl.25.25"></a><var>25.25</var>120B.299, subdivision 3
         </statute_ref>. The model may be used to advance educators' professional <br/>
<a id="pl.25.26"></a><var>25.26</var>development and replicate programs that succeed in meeting students' diverse learning <br/>
<a id="pl.25.27"></a><var>25.27</var>needs. Data on individual teachers generated under the model are personnel data under <br/>
<a id="pl.25.28"></a><var>25.28</var>section 
         <statute_ref>13.43</statute_ref>. The model must allow users to:<br/>
<a id="pl.25.29"></a><var>25.29</var>(1) report student growth consistent with this paragraph; and<br/>
<a id="pl.25.30"></a><var>25.30</var>(2) for all student categories, report and compare aggregated and disaggregated state <br/>
<a id="pl.25.31"></a><var>25.31</var>growth data using the nine student categories identified under the federal 2001 No Child <br/>
<a id="pl.25.32"></a><var>25.32</var>Left Behind Act and two student gender categories of male and female, respectively, <br/>
<a id="pl.25.33"></a><var>25.33</var>following appropriate reporting practices to protect nonpublic student data.<br/>
<a id="pl.26.1"></a><var>26.1</var>The commissioner must report separate measures of student growth and proficiency, <br/>
<a id="pl.26.2"></a><var>26.2</var>consistent with this paragraph.<br/>
<a id="pl.26.3"></a><var>26.3</var>(c) When reporting student performance under section 
         <statute_ref>120B.36, subdivision 1</statute_ref>, the <br/>
<a id="pl.26.4"></a><var>26.4</var>commissioner annually, beginning July 1, 2011, must report two core measures indicating <br/>
<a id="pl.26.5"></a><var>26.5</var>the extent to which current high school graduates are being prepared for postsecondary <br/>
<a id="pl.26.6"></a><var>26.6</var>academic and career opportunities:<br/>
<a id="pl.26.7"></a><var>26.7</var>(1) a preparation measure indicating the number and percentage of high school <br/>
<a id="pl.26.8"></a><var>26.8</var>graduates in the most recent school year who completed course work important to <br/>
<a id="pl.26.9"></a><var>26.9</var>preparing them for postsecondary academic and career opportunities, consistent with <br/>
<a id="pl.26.10"></a><var>26.10</var>the core academic subjects required for admission to Minnesota's public colleges and <br/>
<a id="pl.26.11"></a><var>26.11</var>universities as determined by the Office of Higher Education under chapter 136A; and<br/>
<a id="pl.26.12"></a><var>26.12</var>(2) a rigorous coursework measure indicating the number and percentage of high <br/>
<a id="pl.26.13"></a><var>26.13</var>school graduates in the most recent school year who successfully completed one or more <br/>
<a id="pl.26.14"></a><var>26.14</var>college-level advanced placement, international baccalaureate, postsecondary enrollment <br/>
<a id="pl.26.15"></a><var>26.15</var>options including concurrent enrollment, other rigorous courses of study under section <br/>
<statute_ref><a id="pl.26.16"></a><var>26.16</var>120B.021, subdivision 1a
         </statute_ref>, or industry certification courses or programs.<br/>
<a id="pl.26.17"></a><var>26.17</var>When reporting the core measures under clauses (1) and (2), the commissioner must also <br/>
<a id="pl.26.18"></a><var>26.18</var>analyze and report separate categories of information using the nine student categories <br/>
<a id="pl.26.19"></a><var>26.19</var>identified under the federal 2001 No Child Left Behind Act and two student gender <br/>
<a id="pl.26.20"></a><var>26.20</var>categories of male and female, respectively, following appropriate reporting practices to <br/>
<a id="pl.26.21"></a><var>26.21</var>protect nonpublic student data.<br/>
<a id="pl.26.22"></a><var>26.22</var>(d) When reporting student performance under section 
         <statute_ref>120B.36, subdivision 1</statute_ref>, the <br/>
<a id="pl.26.23"></a><var>26.23</var>commissioner annually, beginning July 1, 2014, must report summary data on school <br/>
<a id="pl.26.24"></a><var>26.24</var>safety and students' engagement and connection at school. The summary data under this <br/>
<a id="pl.26.25"></a><var>26.25</var>paragraph are separate from and must not be used for any purpose related to measuring <br/>
<a id="pl.26.26"></a><var>26.26</var>or evaluating the performance of classroom teachers. The commissioner, in consultation <br/>
<a id="pl.26.27"></a><var>26.27</var>with qualified experts on student engagement and connection and classroom teachers, <br/>
<a id="pl.26.28"></a><var>26.28</var>must identify highly reliable variables that generate summary data under this paragraph. <br/>
<a id="pl.26.29"></a><var>26.29</var>The summary data may be used at school, district, and state levels only. Any data on <br/>
<a id="pl.26.30"></a><var>26.30</var>individuals received, collected, or created that are used to generate the summary data <br/>
<a id="pl.26.31"></a><var>26.31</var>under this paragraph are nonpublic data under section 
         <statute_ref>13.02, subdivision 9</statute_ref>.<br/>
<a id="pl.26.32"></a><var>26.32</var>(e) For purposes of statewide educational accountability, the commissioner must <br/>
<a id="pl.26.33"></a><var>26.33</var>identify and report measures that demonstrate the success of school districts, school sites, <br/>
<a id="pl.26.34"></a><var>26.34</var>charter schools, and alternative program providers in improving the graduation outcomes <br/>
<a id="pl.26.35"></a><var>26.35</var>of students under this paragraph. When reporting student performance under section <br/>
<a id="pl.26.36"></a><var>26.36</var>120B.36, subdivision 1, the commissioner, beginning July 1, 2013, must annually report <br/>
<a id="pl.27.1"></a><var>27.1</var>summary data on (i) the four- and six-year graduation rates of students throughout the state <br/>
<a id="pl.27.2"></a><var>27.2</var>who are identified as at risk of not graduating or off track to graduate, including students <br/>
<a id="pl.27.3"></a><var>27.3</var>who are eligible to participate in a program under section 123A.05 or 124D.68, among <br/>
<a id="pl.27.4"></a><var>27.4</var>other students, and (ii) the success that school districts, school sites, charter schools, and <br/>
<a id="pl.27.5"></a><var>27.5</var>alternative program providers experience in:<br/>
<a id="pl.27.6"></a><var>27.6</var>(1) identifying at-risk and off-track student populations by grade;<br/>
<a id="pl.27.7"></a><var>27.7</var>(2) providing successful prevention and intervention strategies for at-risk students;<br/>
<a id="pl.27.8"></a><var>27.8</var>(3) providing successful recuperative and recovery or reenrollment strategies for <br/>
<a id="pl.27.9"></a><var>27.9</var>off-track students; and<br/>
<a id="pl.27.10"></a><var>27.10</var>(4) improving the graduation outcomes of at-risk and off-track students.<br/>
<a id="pl.27.11"></a><var>27.11</var>    For purposes of this paragraph, a student who is at risk of not graduating is a student <br/>
<a id="pl.27.12"></a><var>27.12</var>in eighth or ninth grade who meets one or more of the following criteria: first enrolled <br/>
<a id="pl.27.13"></a><var>27.13</var>in an English language learners program in eighth or ninth grade and may be older than <br/>
<a id="pl.27.14"></a><var>27.14</var>other students enrolled in the same grade; as an eighth grader, is absent from school for at <br/>
<a id="pl.27.15"></a><var>27.15</var>least 20 percent of the days of instruction during the school year, is two or more years <br/>
<a id="pl.27.16"></a><var>27.16</var>older than other students enrolled in the same grade, or fails multiple core academic <br/>
<a id="pl.27.17"></a><var>27.17</var>courses; or as a ninth grader, fails multiple ninth grade core academic courses in English <br/>
<a id="pl.27.18"></a><var>27.18</var>language arts, math, science, or social studies.<br/>
<a id="pl.27.19"></a><var>27.19</var>    For purposes of this paragraph, a student who is off track to graduate is a student <br/>
<a id="pl.27.20"></a><var>27.20</var>who meets one or more of the following criteria: first enrolled in an English language <br/>
<a id="pl.27.21"></a><var>27.21</var>learners program in high school and is older than other students enrolled in the same grade; <br/>
<a id="pl.27.22"></a><var>27.22</var>is a returning dropout; is 16 or 17 years old and two or more academic years off track to <br/>
<a id="pl.27.23"></a><var>27.23</var>graduate; is 18 years or older and two or more academic years off track to graduate; or is <br/>
<a id="pl.27.24"></a><var>27.24</var>18 years or older and may graduate within one school year.<br/>
<a id="pl.27.25"></a><var>27.25</var><b>EFFECTIVE DATE.</b>Paragraph (e) applies to data that are collected in the <br/>
<a id="pl.27.26"></a><var>27.26</var>2012-2013 school year and later and reported annually beginning July 1, 2013, consistent <br/>
<a id="pl.27.27"></a><var>27.27</var>with the recommendations the commissioner receives from recognized and qualified <br/>
<a id="pl.27.28"></a><var>27.28</var>experts on improving differentiated graduation rates, and establishing alternative routes to <br/>
<a id="pl.27.29"></a><var>27.29</var>a standard high school diploma for at-risk and off-track students.<br/>
<br/>
<a id="bill.2.12.0"></a><a id="pl.27.30"></a><var>27.30</var>    Sec. 12. Minnesota Statutes 2009 Supplement, section 120B.36, subdivision 1, is <br/>
<a id="pl.27.31"></a><var>27.31</var>amended to read:<br/>
<a id="pl.27.32"></a><var>27.32</var>    Subdivision 1. <b>School performance report cards.</b> (a) The commissioner <br/>
<a id="pl.27.33"></a><var>27.33</var>shall report student academic performance under section 
         <statute_ref>120B.35, subdivision 2</statute_ref>; the <br/>
<a id="pl.27.34"></a><var>27.34</var>percentages of students showing low, medium, and high growth under section 
         <statute_ref>120B.35, <br/>
<a id="pl.27.35"></a><var>27.35</var>subdivision 3
         </statute_ref>, paragraph (b); school safety and student engagement and connection <br/>
<a id="pl.28.1"></a><var>28.1</var>under section 
         <statute_ref>120B.35, subdivision </statute_ref>3, paragraph (d); rigorous coursework under section <br/>
<statute_ref><a id="pl.28.2"></a><var>28.2</var>120B.35, subdivision 3
         </statute_ref>, paragraph (c); the four- and six-year graduation rates of at-risk and <br/>
<a id="pl.28.3"></a><var>28.3</var>off-track students throughout the state under section 120B.35, subdivision 3, paragraph <br/>
<a id="pl.28.4"></a><var>28.4</var>(e), and the success that school districts, school sites, charter schools, and alternative <br/>
<a id="pl.28.5"></a><var>28.5</var>program providers experience in their efforts to improve the graduation outcomes of <br/>
<a id="pl.28.6"></a><var>28.6</var>those students; two separate student-to-teacher ratios that clearly indicate the definition <br/>
<a id="pl.28.7"></a><var>28.7</var>of teacher consistent with sections 
         <statute_ref>122A.06</statute_ref> and 
         <statute_ref>122A.15</statute_ref> for purposes of determining <br/>
<a id="pl.28.8"></a><var>28.8</var>these ratios; staff characteristics excluding salaries; student enrollment demographics; <br/>
<a id="pl.28.9"></a><var>28.9</var>district mobility; and extracurricular activities. The report also must indicate a school's <br/>
<a id="pl.28.10"></a><var>28.10</var>adequate yearly progress status, and must not set any designations applicable to high- and <br/>
<a id="pl.28.11"></a><var>28.11</var>low-performing schools due solely to adequate yearly progress status.<br/>
<a id="pl.28.12"></a><var>28.12</var>    (b) The commissioner shall develop, annually update, and post on the department <br/>
<a id="pl.28.13"></a><var>28.13</var>Web site school performance report cards.<br/>
<a id="pl.28.14"></a><var>28.14</var>    (c) The commissioner must make available performance report cards by the <br/>
<a id="pl.28.15"></a><var>28.15</var>beginning of each school year.<br/>
<a id="pl.28.16"></a><var>28.16</var>    (d) A school or district may appeal its adequate yearly progress status in writing to <br/>
<a id="pl.28.17"></a><var>28.17</var>the commissioner within 30 days of receiving the notice of its status. The commissioner's <br/>
<a id="pl.28.18"></a><var>28.18</var>decision to uphold or deny an appeal is final.<br/>
<a id="pl.28.19"></a><var>28.19</var>    (e) School performance report card data are nonpublic data under section 
         <statute_ref>13.02, <br/>
<a id="pl.28.20"></a><var>28.20</var>subdivision 9
         </statute_ref>, until not later than ten days after the appeal procedure described in <br/>
<a id="pl.28.21"></a><var>28.21</var>paragraph (d) concludes. The department shall annually post school performance report <br/>
<a id="pl.28.22"></a><var>28.22</var>cards to its public Web site no later than September 1.<br/>
<a id="pl.28.23"></a><var>28.23</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.28.24"></a><var>28.24</var>and applies to annual reports beginning July 1, 2013.<br/>
<br/>
<a id="bill.2.13.0"></a><a id="pl.28.25"></a><var>28.25</var>    Sec. 13. <b>[121A.215] LOCAL SCHOOL DISTRICT WELLNESS POLICIES; </b><br/>
<a id="pl.28.26"></a><var>28.26</var><b>WEB SITE.</b><br/>
<a id="pl.28.27"></a><var>28.27</var>Where available, a school district must post its current local school wellness policy <br/>
<a id="pl.28.28"></a><var>28.28</var>on its Web site.<br/>
<a id="pl.28.29"></a><var>28.29</var><b>EFFECTIVE DATE.</b>This section is effective August 1, 2010.<br/>
<br/>
<a id="bill.2.14.0"></a><a id="pl.28.30"></a><var>28.30</var>    Sec. 14. Minnesota Statutes 2009 Supplement, section 122A.09, subdivision 4, is <br/>
<a id="pl.28.31"></a><var>28.31</var>amended to read:<br/>
<a id="pl.28.32"></a><var>28.32</var>    Subd. 4. <b>License and rules.</b> (a) The board must may adopt new rules and amend <br/>
<a id="pl.28.33"></a><var>28.33</var>any existing rules to license public school teachers and interns subject to only under <br/>
<a id="pl.29.1"></a><var>29.1</var>specific legislative authority and consistent with the requirements of chapter 14. This <br/>
<a id="pl.29.2"></a><var>29.2</var>paragraph does not prohibit the board from making technical changes or corrections to <br/>
<a id="pl.29.3"></a><var>29.3</var>rules or repealing rules adopted by the board.<br/>
<a id="pl.29.4"></a><var>29.4</var>(b) The board must adopt rules requiring a person to successfully complete a skills <br/>
<a id="pl.29.5"></a><var>29.5</var>examination in reading, writing, and mathematics as a requirement for initial teacher <br/>
<a id="pl.29.6"></a><var>29.6</var>licensure. Such rules must require college and universities offering a board-approved <br/>
<a id="pl.29.7"></a><var>29.7</var>teacher preparation program to provide remedial assistance to persons who did not <br/>
<a id="pl.29.8"></a><var>29.8</var>achieve a qualifying score on the skills examination, including those for whom English is <br/>
<a id="pl.29.9"></a><var>29.9</var>a second language.<br/>
<a id="pl.29.10"></a><var>29.10</var>(c) The board must adopt rules to approve teacher preparation programs. The board, <br/>
<a id="pl.29.11"></a><var>29.11</var>upon the request of a postsecondary student preparing for teacher licensure or a licensed <br/>
<a id="pl.29.12"></a><var>29.12</var>graduate of a teacher preparation program, shall assist in resolving a dispute between the <br/>
<a id="pl.29.13"></a><var>29.13</var>person and a postsecondary institution providing a teacher preparation program when the <br/>
<a id="pl.29.14"></a><var>29.14</var>dispute involves an institution's recommendation for licensure affecting the person or the <br/>
<a id="pl.29.15"></a><var>29.15</var>person's credentials. At the board's discretion, assistance may include the application <br/>
<a id="pl.29.16"></a><var>29.16</var>of chapter 14.<br/>
<a id="pl.29.17"></a><var>29.17</var>(d) The board must provide the leadership and shall adopt rules for the redesign of <br/>
<a id="pl.29.18"></a><var>29.18</var>teacher education programs to implement a research based, results-oriented curriculum <br/>
<a id="pl.29.19"></a><var>29.19</var>that focuses on the skills teachers need in order to be effective. The board shall implement <br/>
<a id="pl.29.20"></a><var>29.20</var>new systems of teacher preparation program evaluation to assure program effectiveness <br/>
<a id="pl.29.21"></a><var>29.21</var>based on proficiency of graduates in demonstrating attainment of program outcomes.<br/>
<a id="pl.29.22"></a><var>29.22</var>(e) The board must adopt rules requiring candidates for initial licenses to <br/>
<a id="pl.29.23"></a><var>29.23</var>successfully complete pass an examination of general pedagogical knowledge and <br/>
<a id="pl.29.24"></a><var>29.24</var>examinations of licensure-specific teaching skills. The rules shall be effective by <br/>
<a id="pl.29.25"></a><var>29.25</var>September 1, 2001. The rules under this paragraph also must require candidates for <br/>
<a id="pl.29.26"></a><var>29.26</var>initial licenses to teach prekindergarten or elementary students to successfully complete, <br/>
<a id="pl.29.27"></a><var>29.27</var>as part of the examination of licensure-specific teaching skills, test items assessing the <br/>
<a id="pl.29.28"></a><var>29.28</var>candidates' knowledge, skill, and ability in comprehensive, scientifically based reading <br/>
<a id="pl.29.29"></a><var>29.29</var>instruction under section 
         <statute_ref>122A.06</statute_ref>, subdivision 4, and their knowledge and understanding <br/>
<a id="pl.29.30"></a><var>29.30</var>of the foundations of reading development, the development of reading comprehension, <br/>
<a id="pl.29.31"></a><var>29.31</var>and reading assessment and instruction, and their ability to integrate that knowledge <br/>
<a id="pl.29.32"></a><var>29.32</var>and understanding. The rules under this paragraph also must require general education <br/>
<a id="pl.29.33"></a><var>29.33</var>candidates for initial licenses to teach prekindergarten or elementary students to pass, <br/>
<a id="pl.29.34"></a><var>29.34</var>as part of the examination of licensure-specific teaching skills, test items assessing the <br/>
<a id="pl.29.35"></a><var>29.35</var>candidates' knowledge, skill, and ability in mathematics.<br/>
<a id="pl.30.1"></a><var>30.1</var>(f) The board must adopt rules requiring teacher educators to work directly with <br/>
<a id="pl.30.2"></a><var>30.2</var>elementary or secondary school teachers in elementary or secondary schools to obtain <br/>
<a id="pl.30.3"></a><var>30.3</var>periodic exposure to the elementary or secondary teaching environment.<br/>
<a id="pl.30.4"></a><var>30.4</var>(g) The board must grant licenses to interns and to candidates for initial licenses.<br/>
<a id="pl.30.5"></a><var>30.5</var>(h) The board must design and implement an assessment system which requires a <br/>
<a id="pl.30.6"></a><var>30.6</var>candidate for an initial license and first continuing license to demonstrate the abilities <br/>
<a id="pl.30.7"></a><var>30.7</var>necessary to perform selected, representative teaching tasks at appropriate levels.<br/>
<a id="pl.30.8"></a><var>30.8</var>(i) The board must receive recommendations from local committees as established <br/>
<a id="pl.30.9"></a><var>30.9</var>by the board for the renewal of teaching licenses. Committee recommendations must be <br/>
<a id="pl.30.10"></a><var>30.10</var>consistent with section 122A.18, subdivision 4, paragraph (b).<br/>
<a id="pl.30.11"></a><var>30.11</var>(j) The board must grant life licenses to those who qualify according to requirements <br/>
<a id="pl.30.12"></a><var>30.12</var>established by the board, and suspend or revoke licenses pursuant to sections 
         <statute_ref>122A.20</statute_ref> and <br/>
<statute_ref><a id="pl.30.13"></a><var>30.13</var>214.10
         </statute_ref>. The board must not establish any expiration date for application for life licenses.<br/>
<a id="pl.30.14"></a><var>30.14</var>(k) The board must adopt rules that require all licensed teachers who are renewing <br/>
<a id="pl.30.15"></a><var>30.15</var>their continuing license to include in their renewal requirements further preparation in <br/>
<a id="pl.30.16"></a><var>30.16</var>the areas of using positive behavior interventions and in accommodating, modifying, and <br/>
<a id="pl.30.17"></a><var>30.17</var>adapting curricula, materials, and strategies to appropriately meet the needs of individual <br/>
<a id="pl.30.18"></a><var>30.18</var>students and ensure adequate progress toward the state's graduation rule.<br/>
<a id="pl.30.19"></a><var>30.19</var>(l) In adopting rules to license public school teachers who provide health-related <br/>
<a id="pl.30.20"></a><var>30.20</var>services for disabled children, the board shall adopt rules consistent with license or <br/>
<a id="pl.30.21"></a><var>30.21</var>registration requirements of the commissioner of health and the health-related boards who <br/>
<a id="pl.30.22"></a><var>30.22</var>license personnel who perform similar services outside of the school.<br/>
<a id="pl.30.23"></a><var>30.23</var>(m) The board must adopt rules that require all licensed teachers who are renewing <br/>
<a id="pl.30.24"></a><var>30.24</var>their continuing license to include in their renewal requirements further reading <br/>
<a id="pl.30.25"></a><var>30.25</var>preparation, consistent with section 
         <statute_ref>122A.06, subdivision 4</statute_ref>. The rules do not take effect <br/>
<a id="pl.30.26"></a><var>30.26</var>until they are approved by law. Teachers who do not provide direct instruction including, at <br/>
<a id="pl.30.27"></a><var>30.27</var>least, counselors, school psychologists, school nurses, school social workers, audiovisual <br/>
<a id="pl.30.28"></a><var>30.28</var>directors and coordinators, and recreation personnel are exempt from this section.<br/>
<a id="pl.30.29"></a><var>30.29</var>(n) The board must adopt rules that require all licensed teachers who are renewing <br/>
<a id="pl.30.30"></a><var>30.30</var>their continuing license to include in their renewal requirements further preparation <br/>
<a id="pl.30.31"></a><var>30.31</var>in understanding the key warning signs of early-onset mental illness in children and <br/>
<a id="pl.30.32"></a><var>30.32</var>adolescents.<br/>
<a id="pl.30.33"></a><var>30.33</var>(o) The board, consistent with section 122A.18, subdivision 4, paragraph (b), must <br/>
<a id="pl.30.34"></a><var>30.34</var>amend its licensure renewal rules to include professional reflection and growth in best <br/>
<a id="pl.30.35"></a><var>30.35</var>teaching practices in the preparation requirements for relicensure under this paragraph <br/>
<a id="pl.31.1"></a><var>31.1</var>and paragraphs (i), (k), (m), and (n), and any other preparation requirements applicable to <br/>
<a id="pl.31.2"></a><var>31.2</var>teachers seeking to renew their continuing license from the board.<br/>
<a id="pl.31.3"></a><var>31.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.31.4"></a><var>31.4</var>and applies to all new and amended rules proposed by the Board of Teaching, including all <br/>
<a id="pl.31.5"></a><var>31.5</var>new and amended rules that are not yet formally adopted, except that the amendments <br/>
<a id="pl.31.6"></a><var>31.6</var>to paragraphs (i) and (o) apply to licensees seeking relicensure beginning June 30, 2012. <br/>
<a id="pl.31.7"></a><var>31.7</var>This section does not affect the requirement that the Board of Teaching continue to finally <br/>
<a id="pl.31.8"></a><var>31.8</var>adopt rules initially proposed before the effective date of this section, to implement the <br/>
<a id="pl.31.9"></a><var>31.9</var>requirement of Laws 2003, chapter 129, article 1, section 10, and Laws 2007, chapter <br/>
<a id="pl.31.10"></a><var>31.10</var>146, article 2, section 34, that the board adopt rules relating to credentials for education <br/>
<a id="pl.31.11"></a><var>31.11</var>paraprofessionals.<br/>
<br/>
<a id="bill.2.15.0"></a><a id="pl.31.12"></a><var>31.12</var>    Sec. 15. <b>[122A.091] BOARD OF TEACHING; TEACHER PERFORMANCE </b><br/>
<a id="pl.31.13"></a><var>31.13</var><b>ASSESSMENTS.</b><br/>
<a id="pl.31.14"></a><var>31.14</var>(a) Consistent with section 122A.09, subdivision 4, the Board of Teaching must <br/>
<a id="pl.31.15"></a><var>31.15</var>adopt rules to establish a statewide teacher performance assessment system that is aligned <br/>
<a id="pl.31.16"></a><var>31.16</var>with Minnesota's required K-12 academic standards and accommodates locally adopted <br/>
<a id="pl.31.17"></a><var>31.17</var>alternative assessment measures including teacher portfolios. Teacher performance <br/>
<a id="pl.31.18"></a><var>31.18</var>assessments must:<br/>
<a id="pl.31.19"></a><var>31.19</var>(1) include training and a reliability review for educators who evaluate teachers' <br/>
<a id="pl.31.20"></a><var>31.20</var>performance;<br/>
<a id="pl.31.21"></a><var>31.21</var>(2) be integrated with board-approved teacher preparation requirements; and<br/>
<a id="pl.31.22"></a><var>31.22</var>(3) correspond to the state and local resources allocated for this purpose.<br/>
<a id="pl.31.23"></a><var>31.23</var>(b) To the extent resources are available, the Board of Teaching must:<br/>
<a id="pl.31.24"></a><var>31.24</var>(1) convene a group of experts, where at least one-third of group members <br/>
<a id="pl.31.25"></a><var>31.25</var>are classroom teachers, to advise the board about teacher performance standards, <br/>
<a id="pl.31.26"></a><var>31.26</var>developmental scales for teacher candidates, and the design, content, administration, and <br/>
<a id="pl.31.27"></a><var>31.27</var>scoring of teacher performance assessments;<br/>
<a id="pl.31.28"></a><var>31.28</var>(2) design, develop, and implement assessment standards and a statewide training <br/>
<a id="pl.31.29"></a><var>31.29</var>program for educators to evaluate teachers' performance;<br/>
<a id="pl.31.30"></a><var>31.30</var>(3) establish a review panel to examine districts' use of teacher performance <br/>
<a id="pl.31.31"></a><var>31.31</var>assessments;<br/>
<a id="pl.31.32"></a><var>31.32</var>(4) periodically analyze the validity of assessment content and the reliability of <br/>
<a id="pl.31.33"></a><var>31.33</var>assessment scores under this section;<br/>
<a id="pl.31.34"></a><var>31.34</var>(5) establish and implement appropriate standards applicable to teacher candidates <br/>
<a id="pl.31.35"></a><var>31.35</var>for demonstrating satisfactory performance;<br/>
<a id="pl.32.1"></a><var>32.1</var>(6) analyze and eliminate bias in the performance assessments;<br/>
<a id="pl.32.2"></a><var>32.2</var>(7) collect and analyze background information from teacher candidates who <br/>
<a id="pl.32.3"></a><var>32.3</var>participate in a performance assessment, interpret and report the results, and use <br/>
<a id="pl.32.4"></a><var>32.4</var>the information and results to analyze the quality and effectiveness of performance <br/>
<a id="pl.32.5"></a><var>32.5</var>assessments; and<br/>
<a id="pl.32.6"></a><var>32.6</var>(8) examine and revise board approval of teacher preparation programs and <br/>
<a id="pl.32.7"></a><var>32.7</var>institutions to assure teacher candidates of opportunities to acquire the knowledge, skills, <br/>
<a id="pl.32.8"></a><var>32.8</var>and abilities measured by the assessment system.<br/>
<a id="pl.32.9"></a><var>32.9</var>(c) The board must ensure that performance assessments are ongoing, well-integrated <br/>
<a id="pl.32.10"></a><var>32.10</var>into teacher preparation programs, aligned with state standards of effective teaching <br/>
<a id="pl.32.11"></a><var>32.11</var>practices, and consistently applied to teacher candidates enrolled in board-approved <br/>
<a id="pl.32.12"></a><var>32.12</var>teacher preparation programs. Performance assessments must meet the needs of teacher <br/>
<a id="pl.32.13"></a><var>32.13</var>candidates, teacher preparation program providers, and school districts that employ newly <br/>
<a id="pl.32.14"></a><var>32.14</var>licensed teachers by:<br/>
<a id="pl.32.15"></a><var>32.15</var>(1) designing performance assessments that accommodate formative assessment <br/>
<a id="pl.32.16"></a><var>32.16</var>information for teacher candidates, postsecondary faculty, and educators who evaluate <br/>
<a id="pl.32.17"></a><var>32.17</var>teachers' performance to use to help teachers and teacher candidates improve their <br/>
<a id="pl.32.18"></a><var>32.18</var>teaching knowledge, skills, and abilities;<br/>
<a id="pl.32.19"></a><var>32.19</var>(2) developing a teacher performance reporting system that a teacher preparation <br/>
<a id="pl.32.20"></a><var>32.20</var>program provider can use to recommend a successful teacher candidate for licensure; and<br/>
<a id="pl.32.21"></a><var>32.21</var>(3) using reports of formative assessment information and performance assessment <br/>
<a id="pl.32.22"></a><var>32.22</var>results for developing new teacher induction plans.<br/>
<a id="pl.32.23"></a><var>32.23</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.16.0"></a><a id="pl.32.24"></a><var>32.24</var>    Sec. 16. Minnesota Statutes 2008, section 122A.16, is amended to read:<br/>
<a id="pl.32.25"></a><var>32.25</var><b>122A.16 HIGHLY QUALIFIED TEACHER DEFINED.</b><br/>
<a id="pl.32.26"></a><var>32.26</var>(a) A qualified teacher is one holding a valid license, under this chapter, to perform <br/>
<a id="pl.32.27"></a><var>32.27</var>the particular service for which the teacher is employed in a public school.<br/>
<a id="pl.32.28"></a><var>32.28</var>(b) For the purposes of the federal No Child Left Behind Act, a highly qualified <br/>
<a id="pl.32.29"></a><var>32.29</var>teacher is one who holds a valid license under this chapter to perform the particular service <br/>
<a id="pl.32.30"></a><var>32.30</var>for which the teacher is employed in a public school or who meets the requirements of a <br/>
<a id="pl.32.31"></a><var>32.31</var>highly objective uniform state standard of evaluation (HOUSSE).<br/>
<a id="pl.32.32"></a><var>32.32</var>All Minnesota teachers teaching in a core academic subject area, as defined by the <br/>
<a id="pl.32.33"></a><var>32.33</var>federal No Child Left Behind Act, in which they are not fully licensed may complete the <br/>
<a id="pl.32.34"></a><var>32.34</var>following HOUSSE process in the core subject area for which the teacher is requesting <br/>
<a id="pl.33.1"></a><var>33.1</var>highly qualified status by completing an application, in the form and manner described by <br/>
<a id="pl.33.2"></a><var>33.2</var>the commissioner, that includes:<br/>
<a id="pl.33.3"></a><var>33.3</var>(1) documentation of student achievement as evidenced by norm-referenced test <br/>
<a id="pl.33.4"></a><var>33.4</var>results that are objective and psychometrically valid and reliable;<br/>
<a id="pl.33.5"></a><var>33.5</var>(2) evidence of local, state, or national activities, recognition, or awards for <br/>
<a id="pl.33.6"></a><var>33.6</var>professional contribution to achievement;<br/>
<a id="pl.33.7"></a><var>33.7</var>(3) description of teaching experience in the teachers' core subject area in a public <br/>
<a id="pl.33.8"></a><var>33.8</var>school under a waiver, variance, limited license or other exception; nonpublic school; and <br/>
<a id="pl.33.9"></a><var>33.9</var>postsecondary institution;<br/>
<a id="pl.33.10"></a><var>33.10</var>(4) test results from the Praxis II subject area content test;<br/>
<a id="pl.33.11"></a><var>33.11</var>(5) evidence of advanced certification from the National Board for Professional <br/>
<a id="pl.33.12"></a><var>33.12</var>Teaching Standards;<br/>
<a id="pl.33.13"></a><var>33.13</var>(6) evidence of the successful completion of course work or pedagogy courses; and<br/>
<a id="pl.33.14"></a><var>33.14</var>(7) evidence of the successful completion of high quality professional development <br/>
<a id="pl.33.15"></a><var>33.15</var>activities.<br/>
<a id="pl.33.16"></a><var>33.16</var>Districts must assign a school administrator to serve as a HOUSSE reviewer to <br/>
<a id="pl.33.17"></a><var>33.17</var>meet with teachers under this paragraph and, where appropriate, certify the teachers' <br/>
<a id="pl.33.18"></a><var>33.18</var>applications. Teachers satisfy the definition of highly qualified when the teachers receive <br/>
<a id="pl.33.19"></a><var>33.19</var>at least 100 of the total number of points used to measure the teachers' content expertise <br/>
<a id="pl.33.20"></a><var>33.20</var>under clauses (1) to (7). Teachers may acquire up to 50 points only in any one clause (1) <br/>
<a id="pl.33.21"></a><var>33.21</var>to (7). Teachers may use the HOUSSE process to satisfy the definition of highly qualified <br/>
<a id="pl.33.22"></a><var>33.22</var>for more than one subject area.<br/>
<a id="pl.33.23"></a><var>33.23</var>(c) Achievement of the HOUSSE criteria is not equivalent to a license. A teacher <br/>
<a id="pl.33.24"></a><var>33.24</var>must obtain permission from the Board of Teaching in order to teach in a public school.<br/>
<br/>
<a id="bill.2.17.0"></a><a id="pl.33.25"></a><var>33.25</var>    Sec. 17. Minnesota Statutes 2008, section 122A.18, subdivision 1, is amended to read:<br/>
<a id="pl.33.26"></a><var>33.26</var>    Subdivision 1. <b>Authority to license.</b> (a) The Board of Teaching must license <br/>
<a id="pl.33.27"></a><var>33.27</var>teachers, as defined in section 
         <statute_ref>122A.15, subdivision 1</statute_ref>, except for supervisory personnel, <br/>
<a id="pl.33.28"></a><var>33.28</var>as defined in section 
         <statute_ref>122A.15, subdivision 2</statute_ref>.  <br/>
<a id="pl.33.29"></a><var>33.29</var>(b) The Board of School Administrators must license supervisory personnel as <br/>
<a id="pl.33.30"></a><var>33.30</var>defined in section 
         <statute_ref>122A.15, subdivision 2</statute_ref>, except for athletic coaches.  <br/>
<a id="pl.33.31"></a><var>33.31</var>(c) Licenses under the jurisdiction of the Board of Teaching, the Board of School <br/>
<a id="pl.33.32"></a><var>33.32</var>Administrators, and the commissioner of education must be issued through the licensing <br/>
<a id="pl.33.33"></a><var>33.33</var>section of the department.<br/>
<a id="pl.33.34"></a><var>33.34</var>(d) The Board of Teaching may approve only those teacher preparation programs that <br/>
<a id="pl.33.35"></a><var>33.35</var>target and address identified concerns affecting students in kindergarten through grade 12. <br/>
<a id="pl.34.1"></a><var>34.1</var>The Board of Teaching and the Department of Education, consistent with the requirements <br/>
<a id="pl.34.2"></a><var>34.2</var>of chapter 13, must enter into an agreement to share kindergarten through grade 12 <br/>
<a id="pl.34.3"></a><var>34.3</var>educational data solely for approving and improving teacher education programs. The <br/>
<a id="pl.34.4"></a><var>34.4</var>Board of Teaching must ensure that this information remains confidential and is used only <br/>
<a id="pl.34.5"></a><var>34.5</var>for this purpose. Any unauthorized disclosure is subject to a penalty under section 13.09.<br/>
<a id="pl.34.6"></a><var>34.6</var>(e) The Board of School Administrators may approve only those administrator <br/>
<a id="pl.34.7"></a><var>34.7</var>preparation programs that target and address identified concerns affecting students in <br/>
<a id="pl.34.8"></a><var>34.8</var>kindergarten through grade 12. The Board of School Administrators and the Department <br/>
<a id="pl.34.9"></a><var>34.9</var>of Education, consistent with the requirements of chapter 13, must enter into an agreement <br/>
<a id="pl.34.10"></a><var>34.10</var>to share kindergarten through grade 12 educational data solely for approving and <br/>
<a id="pl.34.11"></a><var>34.11</var>improving education administration programs. The Board of School Administrators must <br/>
<a id="pl.34.12"></a><var>34.12</var>ensure that this information remains confidential and is used only for this purpose. Any <br/>
<a id="pl.34.13"></a><var>34.13</var>unauthorized disclosure is subject to a penalty under section 13.09.<br/>
<br/>
<a id="bill.2.18.0"></a><a id="pl.34.14"></a><var>34.14</var>    Sec. 18. Minnesota Statutes 2008, section 122A.18, subdivision 2, is amended to read:<br/>
<a id="pl.34.15"></a><var>34.15</var>    Subd. 2. <b>Teacher and support personnel qualifications.</b> (a) The Board of <br/>
<a id="pl.34.16"></a><var>34.16</var>Teaching must issue licenses under its jurisdiction to persons the board finds to be <br/>
<a id="pl.34.17"></a><var>34.17</var>qualified and competent for their respective positions.<br/>
<a id="pl.34.18"></a><var>34.18</var>(b) The board must require a person to successfully complete pass an examination of <br/>
<a id="pl.34.19"></a><var>34.19</var>skills in reading, writing, and mathematics before being granted an initial teaching license <br/>
<a id="pl.34.20"></a><var>34.20</var>to provide direct instruction to pupils in prekindergarten, elementary, secondary, or special <br/>
<a id="pl.34.21"></a><var>34.21</var>education programs. The board must require colleges and universities offering a board <br/>
<a id="pl.34.22"></a><var>34.22</var>approved teacher preparation program to provide remedial assistance that includes a <br/>
<a id="pl.34.23"></a><var>34.23</var>formal diagnostic component to persons enrolled in their institution who did not achieve a <br/>
<a id="pl.34.24"></a><var>34.24</var>qualifying score on the skills examination, including those for whom English is a second <br/>
<a id="pl.34.25"></a><var>34.25</var>language. The colleges and universities must provide assistance in the specific academic <br/>
<a id="pl.34.26"></a><var>34.26</var>areas of deficiency in which the person did not achieve a qualifying score. School <br/>
<a id="pl.34.27"></a><var>34.27</var>districts must provide similar, appropriate, and timely remedial assistance that includes a <br/>
<a id="pl.34.28"></a><var>34.28</var>formal diagnostic component and mentoring to those persons employed by the district <br/>
<a id="pl.34.29"></a><var>34.29</var>who completed their teacher education program outside the state of Minnesota, received <br/>
<a id="pl.34.30"></a><var>34.30</var>a one-year license to teach in Minnesota and did not achieve a qualifying score on the <br/>
<a id="pl.34.31"></a><var>34.31</var>skills examination, including those persons for whom English is a second language. The <br/>
<a id="pl.34.32"></a><var>34.32</var>Board of Teaching shall report annually to the education committees of the legislature <br/>
<a id="pl.34.33"></a><var>34.33</var>on the total number of teacher candidates during the most recent school year taking the <br/>
<a id="pl.34.34"></a><var>34.34</var>skills examination, the number who achieve a qualifying score on the examination, the <br/>
<a id="pl.34.35"></a><var>34.35</var>number who do not achieve a qualifying score on the examination, the distribution of all <br/>
<a id="pl.35.1"></a><var>35.1</var>candidates' scores, the number of candidates who have taken the examination at least once <br/>
<a id="pl.35.2"></a><var>35.2</var>before, and the number of candidates who have taken the examination at least once before <br/>
<a id="pl.35.3"></a><var>35.3</var>and achieve a qualifying score.<br/>
<a id="pl.35.4"></a><var>35.4</var>(c) A person who has completed an approved teacher preparation program and <br/>
<a id="pl.35.5"></a><var>35.5</var>obtained a one-year license to teach, but has not successfully completed the skills <br/>
<a id="pl.35.6"></a><var>35.6</var>examination, may renew the one-year license for two additional one-year periods. Each <br/>
<a id="pl.35.7"></a><var>35.7</var>renewal of the one-year license is contingent upon the licensee:<br/>
<a id="pl.35.8"></a><var>35.8</var>(1) providing evidence of participating in an approved remedial assistance program <br/>
<a id="pl.35.9"></a><var>35.9</var>provided by a school district or postsecondary institution that includes a formal diagnostic <br/>
<a id="pl.35.10"></a><var>35.10</var>component in the specific areas in which the licensee did not obtain qualifying scores; and<br/>
<a id="pl.35.11"></a><var>35.11</var>(2) attempting to successfully complete the skills examination during the period <br/>
<a id="pl.35.12"></a><var>35.12</var>of each one-year license.<br/>
<a id="pl.35.13"></a><var>35.13</var>(d) (c) The Board of Teaching must grant continuing licenses only to those persons <br/>
<a id="pl.35.14"></a><var>35.14</var>who have met board criteria for granting a continuing license, which includes successfully <br/>
<a id="pl.35.15"></a><var>35.15</var>completing passing the skills examination in reading, writing, and mathematics.<br/>
<a id="pl.35.16"></a><var>35.16</var>(e) (d) All colleges and universities approved by the board of teaching to prepare <br/>
<a id="pl.35.17"></a><var>35.17</var>persons for teacher licensure must include in their teacher preparation programs a common <br/>
<a id="pl.35.18"></a><var>35.18</var>core of teaching knowledge and skills to be acquired by all persons recommended <br/>
<a id="pl.35.19"></a><var>35.19</var>for teacher licensure. This common core shall meet the standards developed by the <br/>
<a id="pl.35.20"></a><var>35.20</var>interstate new teacher assessment and support consortium in its 1992 "model standards for <br/>
<a id="pl.35.21"></a><var>35.21</var>beginning teacher licensing and development." Amendments to standards adopted under <br/>
<a id="pl.35.22"></a><var>35.22</var>this paragraph are covered by chapter 14. The board of teaching shall report annually to <br/>
<a id="pl.35.23"></a><var>35.23</var>the education committees of the legislature on the performance of teacher candidates <br/>
<a id="pl.35.24"></a><var>35.24</var>on common core assessments of knowledge and skills under this paragraph during the <br/>
<a id="pl.35.25"></a><var>35.25</var>most recent school year.<br/>
<a id="pl.35.26"></a><var>35.26</var>(e) The Board of Teaching must: <br/>
<a id="pl.35.27"></a><var>35.27</var>(1) ensure that kindergarten through grade 12 teacher licensing standards are highly <br/>
<a id="pl.35.28"></a><var>35.28</var>aligned with the state's kindergarten through grade 12 academic standards;<br/>
<a id="pl.35.29"></a><var>35.29</var>(2) adopt a review cycle that is consistent with the kindergarten through grade 12 <br/>
<a id="pl.35.30"></a><var>35.30</var>academic standards review cycle under section 120B.023, subdivision 2; and <br/>
<a id="pl.35.31"></a><var>35.31</var>(3) review and align the teacher licensure standards with the kindergarten through <br/>
<a id="pl.35.32"></a><var>35.32</var>grade 12 academic standards within one school year after the commissioner reviews and <br/>
<a id="pl.35.33"></a><var>35.33</var>adopts revised kindergarten through grade 12 academic standards in a particular subject <br/>
<a id="pl.35.34"></a><var>35.34</var>area.<br/>
<a id="pl.35.35"></a><var>35.35</var>(f) All teacher preparation programs approved by the Board of Teaching must <br/>
<a id="pl.35.36"></a><var>35.36</var>require teacher candidates to complete at least one online course.<br/>
<br/>
<a id="bill.2.19.0"></a><a id="pl.36.1"></a><var>36.1</var>    Sec. 19. Minnesota Statutes 2008, section 122A.23, subdivision 2, is amended to read:<br/>
<a id="pl.36.2"></a><var>36.2</var>    Subd. 2. <b>Applicants licensed in other states.</b> (a) Subject to the requirements <br/>
<a id="pl.36.3"></a><var>36.3</var>of sections 
         <statute_ref>122A.18, subdivision 8</statute_ref>, and 
         <statute_ref>123B.03</statute_ref>, the Board of Teaching must issue <br/>
<a id="pl.36.4"></a><var>36.4</var>a teaching license or a temporary teaching license under paragraphs (b) to (e) to an <br/>
<a id="pl.36.5"></a><var>36.5</var>applicant who holds at least a baccalaureate degree from a regionally accredited college <br/>
<a id="pl.36.6"></a><var>36.6</var>or university and holds or held a similar out-of-state teaching license that requires the <br/>
<a id="pl.36.7"></a><var>36.7</var>applicant to successfully complete a teacher preparation program approved by the issuing <br/>
<a id="pl.36.8"></a><var>36.8</var>state, which includes field-specific teaching methods and student teaching or essentially <br/>
<a id="pl.36.9"></a><var>36.9</var>equivalent experience.  <br/>
<a id="pl.36.10"></a><var>36.10</var>(b) The Board of Teaching must issue a teaching license to an applicant who:<br/>
<a id="pl.36.11"></a><var>36.11</var>(1) successfully completed passed all exams and successfully completed human <br/>
<a id="pl.36.12"></a><var>36.12</var>relations preparation components required by the Board of Teaching; and<br/>
<a id="pl.36.13"></a><var>36.13</var>(2) holds or held an out-of-state teaching license to teach the same content field and <br/>
<a id="pl.36.14"></a><var>36.14</var>grade levels if the scope of the out-of-state license is no more than one grade level less <br/>
<a id="pl.36.15"></a><var>36.15</var>than a similar Minnesota license.<br/>
<a id="pl.36.16"></a><var>36.16</var>(c) The Board of Teaching, consistent with board rules, must issue up to three <br/>
<a id="pl.36.17"></a><var>36.17</var>one-year temporary teaching licenses to an applicant who holds or held an out-of-state <br/>
<a id="pl.36.18"></a><var>36.18</var>teaching license to teach the same content field and grade levels, where the scope of the <br/>
<a id="pl.36.19"></a><var>36.19</var>out-of-state license is no more than one grade level less than a similar Minnesota license, <br/>
<a id="pl.36.20"></a><var>36.20</var>but has not successfully completed passed all exams and successfully completed human <br/>
<a id="pl.36.21"></a><var>36.21</var>relations preparation components required by the Board of Teaching.<br/>
<a id="pl.36.22"></a><var>36.22</var>(d) The Board of Teaching, consistent with board rules, must issue up to three <br/>
<a id="pl.36.23"></a><var>36.23</var>one-year temporary teaching licenses to an applicant who:<br/>
<a id="pl.36.24"></a><var>36.24</var>(1) successfully completed passed all exams and successfully completed human <br/>
<a id="pl.36.25"></a><var>36.25</var>relations preparation components required by the Board of Teaching; and<br/>
<a id="pl.36.26"></a><var>36.26</var>(2) holds or held an out-of-state teaching license to teach the same content field <br/>
<a id="pl.36.27"></a><var>36.27</var>and grade levels, where the scope of the out-of-state license is no more than one grade <br/>
<a id="pl.36.28"></a><var>36.28</var>level less than a similar Minnesota license, but has not completed field-specific teaching <br/>
<a id="pl.36.29"></a><var>36.29</var>methods or student teaching or equivalent experience.<br/>
<a id="pl.36.30"></a><var>36.30</var>The applicant may complete field-specific teaching methods and student teaching <br/>
<a id="pl.36.31"></a><var>36.31</var>or equivalent experience by successfully participating in a one-year school district <br/>
<a id="pl.36.32"></a><var>36.32</var>mentorship program consistent with board-adopted standards of effective practice and <br/>
<a id="pl.36.33"></a><var>36.33</var>Minnesota graduation requirements.<br/>
<a id="pl.36.34"></a><var>36.34</var>(e) The Board of Teaching must issue a temporary teaching license for a term of <br/>
<a id="pl.36.35"></a><var>36.35</var>up to three years only in the content field or grade levels specified in the out-of-state <br/>
<a id="pl.36.36"></a><var>36.36</var>license to an applicant who:<br/>
<a id="pl.37.1"></a><var>37.1</var>(1) successfully completed passed all exams and successfully completed human <br/>
<a id="pl.37.2"></a><var>37.2</var>relations preparation components required by the Board of Teaching; and<br/>
<a id="pl.37.3"></a><var>37.3</var>(2) holds or held an out-of-state teaching license where the out-of-state license is <br/>
<a id="pl.37.4"></a><var>37.4</var>more limited in the content field or grade levels than a similar Minnesota license.<br/>
<a id="pl.37.5"></a><var>37.5</var>(f) The Board of Teaching must not issue to an applicant more than three one-year <br/>
<a id="pl.37.6"></a><var>37.6</var>temporary teaching licenses under this subdivision.<br/>
<a id="pl.37.7"></a><var>37.7</var>(g) The Board of Teaching must not issue a license under this subdivision if the <br/>
<a id="pl.37.8"></a><var>37.8</var>applicant has not attained the additional degrees, credentials, or licenses required in a <br/>
<a id="pl.37.9"></a><var>37.9</var>particular licensure field.<br/>
<br/>
<a id="bill.2.20.0"></a><a id="pl.37.10"></a><var>37.10</var>    Sec. 20. <b>[122A.245] ALTERNATIVE TEACHER PREPARATION PROGRAM </b><br/>
<a id="pl.37.11"></a><var>37.11</var><b>AND LIMITED-TERM TEACHER LICENSE.</b><br/>
<a id="pl.37.12"></a><var>37.12</var>    Subdivision 1. <b>Requirements.</b> (a) The Board of Teaching must approve qualified <br/>
<a id="pl.37.13"></a><var>37.13</var>teacher preparation programs under this section that are a means to acquire a two-year <br/>
<a id="pl.37.14"></a><var>37.14</var>limited-term license and to prepare for acquiring a standard entrance license. Partnerships <br/>
<a id="pl.37.15"></a><var>37.15</var>composed of school districts or charter schools and either:<br/>
<a id="pl.37.16"></a><var>37.16</var>(1) a college or university with a board-approved alternative teacher preparation <br/>
<a id="pl.37.17"></a><var>37.17</var>program; or<br/>
<a id="pl.37.18"></a><var>37.18</var>(2) a nonprofit corporation formed for an education-related purpose and subject <br/>
<a id="pl.37.19"></a><var>37.19</var>to chapter 317A and a college or university with a board-approved alternative teacher <br/>
<a id="pl.37.20"></a><var>37.20</var>preparation program may offer this program if:<br/>
<a id="pl.37.21"></a><var>37.21</var>(i) a need for teachers exists based on the determination by a participating school <br/>
<a id="pl.37.22"></a><var>37.22</var>district or charter school that in the previous school year too few qualified candidates <br/>
<a id="pl.37.23"></a><var>37.23</var>applied for its posted, available teaching positions;<br/>
<a id="pl.37.24"></a><var>37.24</var>(ii) the teaching staff does not reflect the racial and cultural diversity of the student <br/>
<a id="pl.37.25"></a><var>37.25</var>population of the district or charter school; or<br/>
<a id="pl.37.26"></a><var>37.26</var>(iii) the school district or charter school identifies a need to reduce or eliminate a <br/>
<a id="pl.37.27"></a><var>37.27</var>student achievement gap based on school performance report card data under section <br/>
<a id="pl.37.28"></a><var>37.28</var>120B.36.<br/>
<a id="pl.37.29"></a><var>37.29</var>(b) To participate in this program, a candidate must:<br/>
<a id="pl.37.30"></a><var>37.30</var>(1) have a bachelor's degree with a minimum 3.0 grade point average, or have a <br/>
<a id="pl.37.31"></a><var>37.31</var>bachelor's degree and meet other board-adopted criteria;<br/>
<a id="pl.37.32"></a><var>37.32</var>(2) pass the reading, writing, and mathematics skills examination under section <br/>
<a id="pl.37.33"></a><var>37.33</var>122A.18; and<br/>
<a id="pl.37.34"></a><var>37.34</var>(3) pass the board-approved content area and pedagogy tests.<br/>
<a id="pl.38.1"></a><var>38.1</var>    Subd. 2. <b>Characteristics.</b> An alternative teacher preparation program under this <br/>
<a id="pl.38.2"></a><var>38.2</var>section must include:<br/>
<a id="pl.38.3"></a><var>38.3</var>(1) a minimum 200-hour instructional phase that provides intensive preparation <br/>
<a id="pl.38.4"></a><var>38.4</var>before that person assumes classroom responsibilities;<br/>
<a id="pl.38.5"></a><var>38.5</var>(2) a research-based and results-oriented approach focused on best teaching practices <br/>
<a id="pl.38.6"></a><var>38.6</var>to increase student proficiency and growth measured against state academic standards;<br/>
<a id="pl.38.7"></a><var>38.7</var>(3) strategies to combine pedagogy and best teaching practices to better inform <br/>
<a id="pl.38.8"></a><var>38.8</var>teachers' classroom instruction;<br/>
<a id="pl.38.9"></a><var>38.9</var>(4) assessment, supervision, and evaluation of the program participant to determine <br/>
<a id="pl.38.10"></a><var>38.10</var>the participant's specific needs throughout the program and to support the participant <br/>
<a id="pl.38.11"></a><var>38.11</var>in successfully completing the program;<br/>
<a id="pl.38.12"></a><var>38.12</var>(5) formal instruction and intensive peer coaching throughout the school year that <br/>
<a id="pl.38.13"></a><var>38.13</var>provide structured guidance and regular ongoing support;<br/>
<a id="pl.38.14"></a><var>38.14</var>(6) high quality, sustained, intensive, and classroom-embedded staff development <br/>
<a id="pl.38.15"></a><var>38.15</var>opportunities conducted by a mentor or by a mentorship team that may include school <br/>
<a id="pl.38.16"></a><var>38.16</var>administrators, teachers, and postsecondary faculty members and are directed at improving <br/>
<a id="pl.38.17"></a><var>38.17</var>student learning and achievement; and<br/>
<a id="pl.38.18"></a><var>38.18</var>(7) a requirement that program participants demonstrate to the local site team under <br/>
<a id="pl.38.19"></a><var>38.19</var>subdivision 5 that they are making satisfactory progress toward acquiring a standard <br/>
<a id="pl.38.20"></a><var>38.20</var>entrance license from the Board of Teaching.<br/>
<a id="pl.38.21"></a><var>38.21</var>    Subd. 3. <b>Program approval.</b> The Board of Teaching must approve alternative <br/>
<a id="pl.38.22"></a><var>38.22</var>teacher preparation programs under this section based on board-adopted criteria that reflect <br/>
<a id="pl.38.23"></a><var>38.23</var>best practices for alternative teacher preparation programs consistent with this section. <br/>
<a id="pl.38.24"></a><var>38.24</var>The board must permit licensure candidates to demonstrate licensure competencies in <br/>
<a id="pl.38.25"></a><var>38.25</var>school-based settings and through other nontraditional means.<br/>
<a id="pl.38.26"></a><var>38.26</var>    Subd. 4. <b>Employment conditions.</b> Where applicable, teachers with a limited-term <br/>
<a id="pl.38.27"></a><var>38.27</var>license under this section are subject to the terms of the local collective bargaining <br/>
<a id="pl.38.28"></a><var>38.28</var>agreement between the local representative of the teachers and the school board.<br/>
<a id="pl.38.29"></a><var>38.29</var>    Subd. 5. <b>Approval for standard entrance license.</b> A local site team that may <br/>
<a id="pl.38.30"></a><var>38.30</var>include teachers, school administrators, postsecondary faculty, and nonprofit staff must <br/>
<a id="pl.38.31"></a><var>38.31</var>evaluate the performance of the teacher candidate using the Minnesota State Standards of <br/>
<a id="pl.38.32"></a><var>38.32</var>Effective Practice for Teachers established in rule and submit to the board an evaluation <br/>
<a id="pl.38.33"></a><var>38.33</var>report recommending whether or not to issue the teacher candidate a standard entrance <br/>
<a id="pl.38.34"></a><var>38.34</var>license.<br/>
<a id="pl.39.1"></a><var>39.1</var>    Subd. 6. <b>Standard entrance license.</b> The Board of Teaching must issue a standard <br/>
<a id="pl.39.2"></a><var>39.2</var>entrance license to a teacher candidate under this section who successfully performs <br/>
<a id="pl.39.3"></a><var>39.3</var>throughout the program and is recommended for licensure under subdivision 5.<br/>
<a id="pl.39.4"></a><var>39.4</var>    Subd. 7. <b>Qualified teacher.</b> A person with a valid limited-term license under this <br/>
<a id="pl.39.5"></a><var>39.5</var>section is the teacher of record and a qualified teacher within the meaning of section <br/>
<a id="pl.39.6"></a><var>39.6</var>122A.16.<br/>
<a id="pl.39.7"></a><var>39.7</var>    Subd. 8. <b>Reports.</b> The Board of Teaching must submit an interim report on the <br/>
<a id="pl.39.8"></a><var>39.8</var>efficacy of this program to the K-12 Education Policy and Finance committees of the <br/>
<a id="pl.39.9"></a><var>39.9</var>legislature by February 15, 2012, and a final report by February 15, 2014.<br/>
<a id="pl.39.10"></a><var>39.10</var><b>EFFECTIVE DATE.</b>This section is effective for the 2010-2011 school year and <br/>
<a id="pl.39.11"></a><var>39.11</var>later.<br/>
<br/>
<a id="bill.2.21.0"></a><a id="pl.39.12"></a><var>39.12</var>    Sec. 21. <b>[122A.246] ALTERNATIVE TEACHER PREPARATION </b><br/>
<a id="pl.39.13"></a><var>39.13</var><b>PROGRAM AND LIMITED-TERM TEACHER LICENSE FOR MID-CAREER </b><br/>
<a id="pl.39.14"></a><var>39.14</var><b>PROFESSIONALS.</b><br/>
<a id="pl.39.15"></a><var>39.15</var>    Subdivision 1. <b>Requirements.</b> (a) The Board of Teaching annually must approve <br/>
<a id="pl.39.16"></a><var>39.16</var>qualified teacher preparation programs under this section that are a means for mid-career <br/>
<a id="pl.39.17"></a><var>39.17</var>professionals to acquire a two-year limited-term license and to prepare for acquiring a <br/>
<a id="pl.39.18"></a><var>39.18</var>standard entrance license. Partnerships composed of school districts or charter schools <br/>
<a id="pl.39.19"></a><var>39.19</var>and either:<br/>
<a id="pl.39.20"></a><var>39.20</var>(1) a college or university with a board-approved alternative teacher preparation <br/>
<a id="pl.39.21"></a><var>39.21</var>program; or<br/>
<a id="pl.39.22"></a><var>39.22</var>(2) a nonprofit corporation formed for an education-related purpose and subject <br/>
<a id="pl.39.23"></a><var>39.23</var>to chapter 317A and a college or university with a board-approved alternative teacher <br/>
<a id="pl.39.24"></a><var>39.24</var>preparation program may offer this program if:<br/>
<a id="pl.39.25"></a><var>39.25</var>(i) a need for teachers exists in a subject area identified by the department as a <br/>
<a id="pl.39.26"></a><var>39.26</var>shortage area;<br/>
<a id="pl.39.27"></a><var>39.27</var>(ii) the teaching staff does not reflect the racial and cultural diversity of the student <br/>
<a id="pl.39.28"></a><var>39.28</var>population of the district or charter school; and<br/>
<a id="pl.39.29"></a><var>39.29</var>(iii) the district or charter school identifies a need to reduce or eliminate a student <br/>
<a id="pl.39.30"></a><var>39.30</var>achievement gap based on school performance report card data under section 120B.36.<br/>
<a id="pl.39.31"></a><var>39.31</var>(b) To participate in this program, a candidate must:<br/>
<a id="pl.39.32"></a><var>39.32</var>(1) have a bachelor's degree and at least ten years of professional experience in a <br/>
<a id="pl.39.33"></a><var>39.33</var>field related to the license being sought; or <br/>
<a id="pl.39.34"></a><var>39.34</var>(2) hold a valid teaching license and have at least five years of classroom teaching <br/>
<a id="pl.39.35"></a><var>39.35</var>experience.<br/>
<a id="pl.40.1"></a><var>40.1</var>(c) A candidate under paragraph (b), clause (1), must:<br/>
<a id="pl.40.2"></a><var>40.2</var>(1) pass the reading, writing, and mathematics skills examination under section <br/>
<a id="pl.40.3"></a><var>40.3</var>122A.18; <br/>
<a id="pl.40.4"></a><var>40.4</var>(2) obtain qualifying scores on board-approved content area and pedagogy tests; and<br/>
<a id="pl.40.5"></a><var>40.5</var>(3) before receiving a limited term license under this section, complete a minimum <br/>
<a id="pl.40.6"></a><var>40.6</var>200-hour instructional phase that provides intensive preparation and a full-time student <br/>
<a id="pl.40.7"></a><var>40.7</var>teaching experience that places the candidate in the classroom under the direct supervision <br/>
<a id="pl.40.8"></a><var>40.8</var>of a fully licensed classroom teacher for at least 12 weeks. A candidate under paragraph <br/>
<a id="pl.40.9"></a><var>40.9</var>(b), clause (1), is declared to have met the requirements of this paragraph through the <br/>
<a id="pl.40.10"></a><var>40.10</var>licensing process and previous classroom experience.<br/>
<a id="pl.40.11"></a><var>40.11</var>    Subd. 2. <b>Characteristics.</b> An alternative teacher preparation program under this <br/>
<a id="pl.40.12"></a><var>40.12</var>section must include:<br/>
<a id="pl.40.13"></a><var>40.13</var>(1) a research-based and results-oriented approach focused on best teaching practices <br/>
<a id="pl.40.14"></a><var>40.14</var>to increase student proficiency and growth measured against state academic standards;<br/>
<a id="pl.40.15"></a><var>40.15</var>(2) strategies to combine pedagogy and best teaching practices to better inform <br/>
<a id="pl.40.16"></a><var>40.16</var>teachers' classroom instruction;<br/>
<a id="pl.40.17"></a><var>40.17</var>(3) assessment, supervision, and evaluation of the program participant to determine <br/>
<a id="pl.40.18"></a><var>40.18</var>the participant's specific needs throughout the program and to support the participant <br/>
<a id="pl.40.19"></a><var>40.19</var>in successfully completing the program;<br/>
<a id="pl.40.20"></a><var>40.20</var>(4) formal instruction and intensive peer coaching throughout the school year that <br/>
<a id="pl.40.21"></a><var>40.21</var>provide structured guidance and regular ongoing support;<br/>
<a id="pl.40.22"></a><var>40.22</var>(5) high quality, sustained, intensive, and classroom-embedded staff development <br/>
<a id="pl.40.23"></a><var>40.23</var>opportunities conducted by a mentor or by a mentorship team that may include school <br/>
<a id="pl.40.24"></a><var>40.24</var>administrators, teachers, and postsecondary faculty members and are directed at improving <br/>
<a id="pl.40.25"></a><var>40.25</var>student learning and achievement; and<br/>
<a id="pl.40.26"></a><var>40.26</var>(6) a requirement that program participants demonstrate to the local site team under <br/>
<a id="pl.40.27"></a><var>40.27</var>subdivision 5 that they are making satisfactory progress toward acquiring a standard <br/>
<a id="pl.40.28"></a><var>40.28</var>entrance license from the Board of Teaching.<br/>
<a id="pl.40.29"></a><var>40.29</var>    Subd. 3. <b>Program approval.</b> The Board of Teaching must approve alternative <br/>
<a id="pl.40.30"></a><var>40.30</var>teacher preparation programs under this section based on board-adopted criteria that reflect <br/>
<a id="pl.40.31"></a><var>40.31</var>best practices for alternative teacher preparation programs consistent with this section. <br/>
<a id="pl.40.32"></a><var>40.32</var>The board must permit licensure candidates to demonstrate licensure competencies in <br/>
<a id="pl.40.33"></a><var>40.33</var>school-based settings and through other nontraditional means.<br/>
<a id="pl.40.34"></a><var>40.34</var>    Subd. 4. <b>Employment conditions.</b> (a) Each full school year that a teacher with <br/>
<a id="pl.40.35"></a><var>40.35</var>a limited-term license teaches in a Minnesota school is one year of the teacher's first <br/>
<a id="pl.40.36"></a><var>40.36</var>probationary employment period.<br/>
<a id="pl.41.1"></a><var>41.1</var>(b) Where applicable, teachers with a limited-term license under this section <br/>
<a id="pl.41.2"></a><var>41.2</var>are subject to the terms of the local collective bargaining agreement between the local <br/>
<a id="pl.41.3"></a><var>41.3</var>representative of the teachers and the school board.<br/>
<a id="pl.41.4"></a><var>41.4</var>(c) A school district or charter school must not prospectively promise to employ a <br/>
<a id="pl.41.5"></a><var>41.5</var>teacher candidate who receives a standard entrance license under this section.<br/>
<a id="pl.41.6"></a><var>41.6</var>    Subd. 5. <b>Approval for standard entrance license.</b> Postsecondary faculty, the <br/>
<a id="pl.41.7"></a><var>41.7</var>supervising teacher, and other qualified staff must evaluate the performance of the teacher <br/>
<a id="pl.41.8"></a><var>41.8</var>candidate using the Minnesota state standards of effective practice for teachers and content <br/>
<a id="pl.41.9"></a><var>41.9</var>standards by licensure area established in rule and submit to the board an evaluation report <br/>
<a id="pl.41.10"></a><var>41.10</var>recommending whether or not to issue the teacher candidate a standard entrance license.<br/>
<a id="pl.41.11"></a><var>41.11</var>    Subd. 6. <b>Standard entrance license.</b> The Board of Teaching may issue a standard <br/>
<a id="pl.41.12"></a><var>41.12</var>entrance license to a teacher candidate under this section who successfully performs under <br/>
<a id="pl.41.13"></a><var>41.13</var>the two-year limited license and is recommended for licensure under subdivision 5.<br/>
<a id="pl.41.14"></a><var>41.14</var>    Subd. 7. <b>Qualified teacher.</b> A person with a valid limited-term license under this <br/>
<a id="pl.41.15"></a><var>41.15</var>section is the teacher of record and a qualified teacher within the meaning of section <br/>
<a id="pl.41.16"></a><var>41.16</var>122A.16.<br/>
<a id="pl.41.17"></a><var>41.17</var>    Subd. 8. <b>Reports.</b> (a) The Board of Teaching annually must collect and report to <br/>
<a id="pl.41.18"></a><var>41.18</var>the K-12 Education Policy and Finance Committees of the legislature alternative teacher <br/>
<a id="pl.41.19"></a><var>41.19</var>preparation program provider data on cumulative teacher retention rates, number of <br/>
<a id="pl.41.20"></a><var>41.20</var>licenses issued by licensure area, the locations where teachers are placed, the number of <br/>
<a id="pl.41.21"></a><var>41.21</var>programs approved, and the demographic characteristics of the teacher candidates, among <br/>
<a id="pl.41.22"></a><var>41.22</var>other data. The board may use these data to approve program providers under this section.<br/>
<a id="pl.41.23"></a><var>41.23</var>(b) The Board of Teaching must submit a report on the efficacy of this program to the <br/>
<a id="pl.41.24"></a><var>41.24</var>K-12 Education Policy and Finance committees of the legislature by February 15, 2014.<br/>
<br/>
<a id="bill.2.22.0"></a><a id="pl.41.25"></a><var>41.25</var>    Sec. 22. Minnesota Statutes 2009 Supplement, section 122A.40, subdivision 8, is <br/>
<a id="pl.41.26"></a><var>41.26</var>amended to read:<br/>
<a id="pl.41.27"></a><var>41.27</var>    Subd. 8. <b>Annual evaluations and </b><b>peer coaching for continuing contract </b><br/>
<a id="pl.41.28"></a><var>41.28</var><b>teachers.</b> (a) To improve student learning and success, a school board and an exclusive <br/>
<a id="pl.41.29"></a><var>41.29</var>representative of the teachers in the district, consistent with paragraph (b), shall develop <br/>
<a id="pl.41.30"></a><var>41.30</var>a an annual teacher evaluation and peer review process for continuing contract teachers <br/>
<a id="pl.41.31"></a><var>41.31</var>through joint agreement. The peer review process may must include having trained <br/>
<a id="pl.41.32"></a><var>41.32</var>observers serve as peer coaches or having teachers participate in professional learning <br/>
<a id="pl.41.33"></a><var>41.33</var>communities.<br/>
<a id="pl.42.1"></a><var>42.1</var>(b) To develop, improve, and support qualified teachers and effective teaching <br/>
<a id="pl.42.2"></a><var>42.2</var>practices and improve student learning and success, the annual evaluation process for <br/>
<a id="pl.42.3"></a><var>42.3</var>continuing contract teachers must:<br/>
<a id="pl.42.4"></a><var>42.4</var>(1) be a collaborative effort between teachers and school administrators to develop <br/>
<a id="pl.42.5"></a><var>42.5</var>and implement a teacher evaluation process that is based on professional teaching <br/>
<a id="pl.42.6"></a><var>42.6</var>standards and includes both formative assessments to improve instruction through <br/>
<a id="pl.42.7"></a><var>42.7</var>identifying teachers' strengths and weaknesses and summative assessments conducted at <br/>
<a id="pl.42.8"></a><var>42.8</var>least once every three school years and used to make personnel decisions, consistent <br/>
<a id="pl.42.9"></a><var>42.9</var>with clause (2);<br/>
<a id="pl.42.10"></a><var>42.10</var>(2) coordinate staff development activities under section 122A.60 with this <br/>
<a id="pl.42.11"></a><var>42.11</var>evaluation process and teachers' evaluation outcomes and give teachers not meeting <br/>
<a id="pl.42.12"></a><var>42.12</var>standards of effective practice sufficient support to improve;<br/>
<a id="pl.42.13"></a><var>42.13</var>(3) include in-class observations by both licensed mentor teachers and school <br/>
<a id="pl.42.14"></a><var>42.14</var>administrators who are trained evaluators, use a valid observation framework or protocol, <br/>
<a id="pl.42.15"></a><var>42.15</var>and periodically undergo a reliability review;<br/>
<a id="pl.42.16"></a><var>42.16</var>(4) provide peer coaching or have teachers participate in professional learning <br/>
<a id="pl.42.17"></a><var>42.17</var>communities, consistent with paragraph (a);<br/>
<a id="pl.42.18"></a><var>42.18</var>(5) require teachers to develop and present a portfolio demonstrating evidence <br/>
<a id="pl.42.19"></a><var>42.19</var>of reflection and professional growth, consistent with section 122A.18, subdivision <br/>
<a id="pl.42.20"></a><var>42.20</var>4, paragraph (b), using criteria developed by the Board of Teaching to reliably assess <br/>
<a id="pl.42.21"></a><var>42.21</var>portfolio content, and include teachers' own performance assessment based on student <br/>
<a id="pl.42.22"></a><var>42.22</var>work samples, student and family surveys, and videotapes of teachers' work, among <br/>
<a id="pl.42.23"></a><var>42.23</var>other activities;<br/>
<a id="pl.42.24"></a><var>42.24</var>(6) demonstrate teachers' content knowledge and teaching skills; and<br/>
<a id="pl.42.25"></a><var>42.25</var>(7) use longitudinal data on student academic growth, student attendance, student <br/>
<a id="pl.42.26"></a><var>42.26</var>engagement and connection, and other outcome measures as evaluation components.<br/>
<a id="pl.42.27"></a><var>42.27</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.42.28"></a><var>42.28</var>and applies beginning when a district next enters into or modifies a collective bargaining <br/>
<a id="pl.42.29"></a><var>42.29</var>agreement or by the 2011-2012 school year, whichever comes first.<br/>
<br/>
<a id="bill.2.23.0"></a><a id="pl.42.30"></a><var>42.30</var>    Sec. 23. Minnesota Statutes 2009 Supplement, section 122A.41, subdivision 5, is <br/>
<a id="pl.42.31"></a><var>42.31</var>amended to read:<br/>
<a id="pl.42.32"></a><var>42.32</var>    Subd. 5. <b>Annual evaluations and </b><b>peer coaching for continuing contract </b><br/>
<a id="pl.42.33"></a><var>42.33</var><b>teachers.</b> (a) To improve student learning and success, a school board and an exclusive <br/>
<a id="pl.42.34"></a><var>42.34</var>representative of the teachers in the district, consistent with paragraph (b), must develop a <br/>
<a id="pl.42.35"></a><var>42.35</var>an annual teacher evaluation and peer review process for nonprobationary teachers through <br/>
<a id="pl.43.1"></a><var>43.1</var>joint agreement. The peer review process may must include having trained observers <br/>
<a id="pl.43.2"></a><var>43.2</var>serve as peer coaches or having teachers participate in professional learning communities.<br/>
<a id="pl.43.3"></a><var>43.3</var>(b) To develop, improve, and support qualified teachers and effective teaching <br/>
<a id="pl.43.4"></a><var>43.4</var>practices and improve student learning and success, the annual evaluation process for <br/>
<a id="pl.43.5"></a><var>43.5</var>continuing contract teachers must:<br/>
<a id="pl.43.6"></a><var>43.6</var>(1) be a collaborative effort between teachers and school administrators to develop <br/>
<a id="pl.43.7"></a><var>43.7</var>and implement a teacher evaluation process that is based on professional teaching <br/>
<a id="pl.43.8"></a><var>43.8</var>standards and includes both formative assessments to improve instruction through <br/>
<a id="pl.43.9"></a><var>43.9</var>identifying teachers' strengths and weaknesses and summative assessments conducted at <br/>
<a id="pl.43.10"></a><var>43.10</var>least once every three school years and used to make personnel decisions, consistent <br/>
<a id="pl.43.11"></a><var>43.11</var>with clause (2);<br/>
<a id="pl.43.12"></a><var>43.12</var>(2) coordinate staff development activities under section 122A.60 with this <br/>
<a id="pl.43.13"></a><var>43.13</var>evaluation process and teachers' evaluation outcomes and give teachers not meeting <br/>
<a id="pl.43.14"></a><var>43.14</var>standards of effective practice sufficient support to improve;<br/>
<a id="pl.43.15"></a><var>43.15</var>(3) include in-class observations by both licensed mentor teachers and school <br/>
<a id="pl.43.16"></a><var>43.16</var>administrators who are trained evaluators, use a valid observation framework or protocol, <br/>
<a id="pl.43.17"></a><var>43.17</var>and periodically undergo a reliability review;<br/>
<a id="pl.43.18"></a><var>43.18</var>(4) provide peer coaching or have teachers participate in professional learning <br/>
<a id="pl.43.19"></a><var>43.19</var>communities, consistent with paragraph (a);<br/>
<a id="pl.43.20"></a><var>43.20</var>(5) require teachers to develop and present a portfolio demonstrating evidence <br/>
<a id="pl.43.21"></a><var>43.21</var>of reflection and professional growth, consistent with section 122A.18, subdivision <br/>
<a id="pl.43.22"></a><var>43.22</var>4, paragraph (b), using criteria developed by the Board of Teaching to reliably assess <br/>
<a id="pl.43.23"></a><var>43.23</var>portfolio content, and include teachers' own performance assessment based on student <br/>
<a id="pl.43.24"></a><var>43.24</var>work samples, student and family surveys, and videotapes of teachers' work, among <br/>
<a id="pl.43.25"></a><var>43.25</var>other activities;<br/>
<a id="pl.43.26"></a><var>43.26</var>(6) demonstrate teachers' content knowledge and teaching skills; and<br/>
<a id="pl.43.27"></a><var>43.27</var>(7) use longitudinal data on student academic growth, student attendance, student <br/>
<a id="pl.43.28"></a><var>43.28</var>engagement and connection, and other outcome measures as evaluation components.<br/>
<a id="pl.43.29"></a><var>43.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.43.30"></a><var>43.30</var>and applies beginning when a district next enters into or modifies a collective bargaining <br/>
<a id="pl.43.31"></a><var>43.31</var>agreement or by the 2011-2012 school year, whichever comes first.<br/>
<br/>
<a id="bill.2.24.0"></a><a id="pl.43.32"></a><var>43.32</var>    Sec. 24. <b>[123A.29] EFFICIENCY PLUS ACCESS TASK FORCES.</b><br/>
<a id="pl.43.33"></a><var>43.33</var>    Subdivision 1. <b>Purpose.</b> The purpose of the efficiency plus access task forces <br/>
<a id="pl.43.34"></a><var>43.34</var>is to facilitate greater efficiency and reduce education costs through collaboration and <br/>
<a id="pl.43.35"></a><var>43.35</var>cooperation across school districts and other governmental agencies while maintaining <br/>
<a id="pl.44.1"></a><var>44.1</var>or improving the learning results for students. The legislative intent is to reduce the <br/>
<a id="pl.44.2"></a><var>44.2</var>administrative costs of education without resorting to a policy of required consolidation <br/>
<a id="pl.44.3"></a><var>44.3</var>that reduces the number of districts or school boards and without creating fewer larger <br/>
<a id="pl.44.4"></a><var>44.4</var>schools that require longer bus rides for students.<br/>
<a id="pl.44.5"></a><var>44.5</var>    Subd. 2. <b>Required district participation.</b> Each district with an enrollment of <br/>
<a id="pl.44.6"></a><var>44.6</var>fewer than 5,000 pupils in K-12 for fiscal year 2010 shall participate in an efficiency <br/>
<a id="pl.44.7"></a><var>44.7</var>plus access task force.<br/>
<a id="pl.44.8"></a><var>44.8</var>    Subd. 3. <b>Optional district and other public entity participation.</b> School districts <br/>
<a id="pl.44.9"></a><var>44.9</var>with more than 5,000 pupils, charter schools, cities, townships, counties, public higher <br/>
<a id="pl.44.10"></a><var>44.10</var>education institutions, Head Start agencies, public libraries, and other public entities are <br/>
<a id="pl.44.11"></a><var>44.11</var>encouraged to participate in the efficiency plus access task forces.<br/>
<a id="pl.44.12"></a><var>44.12</var>    Subd. 4. <b>Task force membership.</b> (a) Participating districts may organize the task <br/>
<a id="pl.44.13"></a><var>44.13</var>forces using an existing education district, intermediate district, or other cooperative <br/>
<a id="pl.44.14"></a><var>44.14</var>model. Districts may request that a service cooperative assist in establishing task forces <br/>
<a id="pl.44.15"></a><var>44.15</var>for their service area. Districts do not need to be contiguous to form an efficiency plus <br/>
<a id="pl.44.16"></a><var>44.16</var>access task force. Each task force shall consist of one member appointed by each district <br/>
<a id="pl.44.17"></a><var>44.17</var>board included in the task force and one member from each entity defined in subdivision <br/>
<a id="pl.44.18"></a><var>44.18</var>3 that choose to participate. Districts and other public entities may decide to become <br/>
<a id="pl.44.19"></a><var>44.19</var>members of more than one efficiency plus access task force. These appointments shall be <br/>
<a id="pl.44.20"></a><var>44.20</var>made by August 15, 2010.<br/>
<a id="pl.44.21"></a><var>44.21</var>(b) Each school board shall develop a process within the district allowing teachers, <br/>
<a id="pl.44.22"></a><var>44.22</var>students, parents, and the community to have access and opportunities to review and make <br/>
<a id="pl.44.23"></a><var>44.23</var>recommendations to be brought forward to the efficiency plus access task force.<br/>
<a id="pl.44.24"></a><var>44.24</var>(c) The initial meeting of each task force shall not be later than September 30, 2010. <br/>
<a id="pl.44.25"></a><var>44.25</var>At the initial meeting, each task force shall elect a chair and other officers it considers <br/>
<a id="pl.44.26"></a><var>44.26</var>necessary to coordinate the work of the task force.<br/>
<a id="pl.44.27"></a><var>44.27</var>    Subd. 5. <b>Task force; powers.</b> (a) Each task force shall review and make <br/>
<a id="pl.44.28"></a><var>44.28</var>recommendations to the boards of the participating districts and public entities regarding <br/>
<a id="pl.44.29"></a><var>44.29</var>how the purpose of this section can be met in the following areas:<br/>
<a id="pl.44.30"></a><var>44.30</var>(1) administrative services including but not limited to superintendent services, <br/>
<a id="pl.44.31"></a><var>44.31</var>principal services, financial management, human services, facilities and grounds <br/>
<a id="pl.44.32"></a><var>44.32</var>maintenance, food and nutrition services, research and evaluation services, transportation <br/>
<a id="pl.44.33"></a><var>44.33</var>services, health services, information technology services, and other administrative <br/>
<a id="pl.44.34"></a><var>44.34</var>services. Cooperation with other public agencies for the provision of administrative <br/>
<a id="pl.44.35"></a><var>44.35</var>services should be considered;<br/>
<a id="pl.45.1"></a><var>45.1</var>(2) instructional and learning services including but not limited to creating a <br/>
<a id="pl.45.2"></a><var>45.2</var>common calendar; low-attendance elective secondary courses; use of technology to <br/>
<a id="pl.45.3"></a><var>45.3</var>replace or supplement courses currently being provided; use of technology to provide <br/>
<a id="pl.45.4"></a><var>45.4</var>new learning opportunities through technology with an emphasis on using low-cost or <br/>
<a id="pl.45.5"></a><var>45.5</var>no-cost learning opportunities available online; coordination with higher education so <br/>
<a id="pl.45.6"></a><var>45.6</var>that advanced courses are provided college credit to avoid duplication between high <br/>
<a id="pl.45.7"></a><var>45.7</var>school and postsecondary; determine how certain students can complete select high school <br/>
<a id="pl.45.8"></a><var>45.8</var>credit requirements while in middle school; and exploring ways to utilize the learning <br/>
<a id="pl.45.9"></a><var>45.9</var>opportunities in the community through programs such as parks and recreation, arts, <br/>
<a id="pl.45.10"></a><var>45.10</var>libraries, and other community providers; and<br/>
<a id="pl.45.11"></a><var>45.11</var>(3) cooperative arrangements for shared extracurricular activities, including having <br/>
<a id="pl.45.12"></a><var>45.12</var>the activities become the responsibility of the community recreational program.<br/>
<a id="pl.45.13"></a><var>45.13</var>(b) The task force shall consider creating new models of schools including <br/>
<a id="pl.45.14"></a><var>45.14</var>project-based learning schools, online learning schools in cooperation with other education <br/>
<a id="pl.45.15"></a><var>45.15</var>districts, service cooperatives or chartered schools, new grade 11 postsecondary models <br/>
<a id="pl.45.16"></a><var>45.16</var>in partnership with colleges and universities, prekindergarten through primary grades in <br/>
<a id="pl.45.17"></a><var>45.17</var>partnership with early childhood providers, and other models of schooling.<br/>
<a id="pl.45.18"></a><var>45.18</var>    Subd. 6. <b>Reporting.</b> Each efficiency plus access task force shall file its initial <br/>
<a id="pl.45.19"></a><var>45.19</var>planning report with the commissioner no later than October 15, 2010. The report shall <br/>
<a id="pl.45.20"></a><var>45.20</var>include the basic information about the composition of the task force, including how input <br/>
<a id="pl.45.21"></a><var>45.21</var>to the task force will be obtained consistent with subdivision 4, paragraph (b). Each task <br/>
<a id="pl.45.22"></a><var>45.22</var>force shall complete its recommendations and file its report with the member school <br/>
<a id="pl.45.23"></a><var>45.23</var>boards and commissioner no later than December 1, 2011. The report shall include <br/>
<a id="pl.45.24"></a><var>45.24</var>recommendations pursuant to subdivision 5 and identify the financial impact of those <br/>
<a id="pl.45.25"></a><var>45.25</var>recommendations for at least fiscal years 2013 and 2014. Each school board shall file a <br/>
<a id="pl.45.26"></a><var>45.26</var>report with the commissioner regarding the actions it will take in response to the report <br/>
<a id="pl.45.27"></a><var>45.27</var>no later than March 15, 2012. The report shall also include the impact on other agencies <br/>
<a id="pl.45.28"></a><var>45.28</var>included in the task force planning.<br/>
<br/>
<a id="bill.2.25.0"></a><a id="pl.45.29"></a><var>45.29</var>    Sec. 25. Minnesota Statutes 2009 Supplement, section 123B.143, subdivision 1, <br/>
<a id="pl.45.30"></a><var>45.30</var>is amended to read:<br/>
<a id="pl.45.31"></a><var>45.31</var>    Subdivision 1. <b>Contract; duties.</b> All districts maintaining a classified secondary <br/>
<a id="pl.45.32"></a><var>45.32</var>school must employ a superintendent who shall be an ex officio nonvoting member of the <br/>
<a id="pl.45.33"></a><var>45.33</var>school board. The authority for selection and employment of a superintendent must be <br/>
<a id="pl.45.34"></a><var>45.34</var>vested in the board in all cases. An individual employed by a board as a superintendent <br/>
<a id="pl.45.35"></a><var>45.35</var>shall have an initial employment contract for a period of time no longer than three years <br/>
<a id="pl.46.1"></a><var>46.1</var>from the date of employment. Any subsequent employment contract must not exceed a <br/>
<a id="pl.46.2"></a><var>46.2</var>period of three years. A board, at its discretion, may or may not renew an employment <br/>
<a id="pl.46.3"></a><var>46.3</var>contract. A board must not, by action or inaction, extend the duration of an existing <br/>
<a id="pl.46.4"></a><var>46.4</var>employment contract. Beginning 365 days prior to the expiration date of an existing <br/>
<a id="pl.46.5"></a><var>46.5</var>employment contract, a board may negotiate and enter into a subsequent employment <br/>
<a id="pl.46.6"></a><var>46.6</var>contract to take effect upon the expiration of the existing contract. A subsequent contract <br/>
<a id="pl.46.7"></a><var>46.7</var>must be contingent upon the employee completing the terms of an existing contract. If a <br/>
<a id="pl.46.8"></a><var>46.8</var>contract between a board and a superintendent is terminated prior to the date specified in <br/>
<a id="pl.46.9"></a><var>46.9</var>the contract, the board may not enter into another superintendent contract with that same <br/>
<a id="pl.46.10"></a><var>46.10</var>individual that has a term that extends beyond the date specified in the terminated contract. <br/>
<a id="pl.46.11"></a><var>46.11</var>A board may terminate a superintendent during the term of an employment contract for any <br/>
<a id="pl.46.12"></a><var>46.12</var>of the grounds specified in section 
         <statute_ref>122A.40, subdivision 9</statute_ref> or 13. A superintendent shall <br/>
<a id="pl.46.13"></a><var>46.13</var>not rely upon an employment contract with a board to assert any other continuing contract <br/>
<a id="pl.46.14"></a><var>46.14</var>rights in the position of superintendent under section 
         <statute_ref>122A.40</statute_ref>. Notwithstanding the <br/>
<a id="pl.46.15"></a><var>46.15</var>provisions of sections 
         <statute_ref>122A.40, subdivision 10</statute_ref> or 11, 
         <statute_ref>123A.32</statute_ref>, 
         <statute_ref>123A.75</statute_ref>, or any other law <br/>
<a id="pl.46.16"></a><var>46.16</var>to the contrary, no individual shall have a right to employment as a superintendent based <br/>
<a id="pl.46.17"></a><var>46.17</var>on order of employment in any district. If two or more districts enter into an agreement for <br/>
<a id="pl.46.18"></a><var>46.18</var>the purchase or sharing of the services of a superintendent, the contracting districts have <br/>
<a id="pl.46.19"></a><var>46.19</var>the absolute right to select one of the individuals employed to serve as superintendent <br/>
<a id="pl.46.20"></a><var>46.20</var>in one of the contracting districts and no individual has a right to employment as the <br/>
<a id="pl.46.21"></a><var>46.21</var>superintendent to provide all or part of the services based on order of employment in a <br/>
<a id="pl.46.22"></a><var>46.22</var>contracting district. The superintendent of a district shall perform the following:<br/>
<a id="pl.46.23"></a><var>46.23</var>    (1) visit and supervise the schools in the district, report and make recommendations <br/>
<a id="pl.46.24"></a><var>46.24</var>about their condition when advisable or on request by the board;<br/>
<a id="pl.46.25"></a><var>46.25</var>    (2) recommend to the board employment and dismissal of teachers;<br/>
<a id="pl.46.26"></a><var>46.26</var>    (3) annually evaluate each school principal and assistant principal assigned <br/>
<a id="pl.46.27"></a><var>46.27</var>responsibility for supervising a school building within the district, consistent with section <br/>
<a id="pl.46.28"></a><var>46.28</var>123B.147, subdivision 3, paragraph (b);<br/>
<a id="pl.46.29"></a><var>46.29</var>(4) superintend school grading practices and examinations for promotions;<br/>
<a id="pl.46.30"></a><var>46.30</var>    (4) (5) make reports required by the commissioner; and<br/>
<a id="pl.46.31"></a><var>46.31</var>    (5) (6) perform other duties prescribed by the board.<br/>
<a id="pl.46.32"></a><var>46.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.46.33"></a><var>46.33</var>and applies beginning when a district next enters into or modifies a collective bargaining <br/>
<a id="pl.46.34"></a><var>46.34</var>agreement or by the 2011-2012 school year, whichever comes first.<br/>
<br/>
<a id="bill.2.26.0"></a><a id="pl.46.35"></a><var>46.35</var>    Sec. 26. Minnesota Statutes 2008, section 123B.147, subdivision 3, is amended to read:<br/>
<a id="pl.47.1"></a><var>47.1</var>    Subd. 3. <b>Duties</b><b>; evaluation</b><b>.</b> (a) The principal shall provide administrative, <br/>
<a id="pl.47.2"></a><var>47.2</var>supervisory, and instructional leadership services, under the supervision of the <br/>
<a id="pl.47.3"></a><var>47.3</var>superintendent of schools of the district and in accordance with according to the policies, <br/>
<a id="pl.47.4"></a><var>47.4</var>rules, and regulations of the school board of education, for the planning, management, <br/>
<a id="pl.47.5"></a><var>47.5</var>operation, and evaluation of the education program of the building or buildings to which <br/>
<a id="pl.47.6"></a><var>47.6</var>the principal is assigned.<br/>
<a id="pl.47.7"></a><var>47.7</var>(b) To enhance principals' leadership skills and support and improve teachers' <br/>
<a id="pl.47.8"></a><var>47.8</var>teaching practices, the school board and the exclusive representative of the school <br/>
<a id="pl.47.9"></a><var>47.9</var>principals of the district must negotiate a plan for an annual evaluation of the school <br/>
<a id="pl.47.10"></a><var>47.10</var>principals and assistant principals assigned responsibility for supervising a school building <br/>
<a id="pl.47.11"></a><var>47.11</var>within the district. The annual evaluation process must:<br/>
<a id="pl.47.12"></a><var>47.12</var>(1) be designed to support and improve principals' instructional leadership <br/>
<a id="pl.47.13"></a><var>47.13</var>defined in the plan, organizational management, and professional development, and <br/>
<a id="pl.47.14"></a><var>47.14</var>strengthen principals' capacity in the areas of instruction, supervision, evaluation, and the <br/>
<a id="pl.47.15"></a><var>47.15</var>development of teachers and highly effective school organizations;<br/>
<a id="pl.47.16"></a><var>47.16</var>(2) include formative and summative evaluations;<br/>
<a id="pl.47.17"></a><var>47.17</var>(3) be consistent with the principals' job description, district long-term plans and <br/>
<a id="pl.47.18"></a><var>47.18</var>goals, and principals' own professional multiyear growth plans and goals;<br/>
<a id="pl.47.19"></a><var>47.19</var>(4) include on-the-job observations, team assessments and evaluations, and verbal <br/>
<a id="pl.47.20"></a><var>47.20</var>and written feedback on performance;<br/>
<a id="pl.47.21"></a><var>47.21</var>(5) require feedback from teachers, support staff, students, and parents;<br/>
<a id="pl.47.22"></a><var>47.22</var>(6) use longitudinal data on student academic growth as an evaluation component; <br/>
<a id="pl.47.23"></a><var>47.23</var>and<br/>
<a id="pl.47.24"></a><var>47.24</var>(7) be linked to professional development.<br/>
<a id="pl.47.25"></a><var>47.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.47.26"></a><var>47.26</var>and applies beginning when a district next enters into or modifies a collective bargaining <br/>
<a id="pl.47.27"></a><var>47.27</var>agreement or by the 2011-2012 school year, whichever comes first.<br/>
<br/>
<a id="bill.2.27.0"></a><a id="pl.47.28"></a><var>47.28</var>    Sec. 27. Minnesota Statutes 2009 Supplement, section 124D.10, subdivision 3, is <br/>
<a id="pl.47.29"></a><var>47.29</var>amended to read:<br/>
<a id="pl.47.30"></a><var>47.30</var>    Subd. 3. <b>Authorizer.</b> (a) For purposes of this section, the terms defined in this <br/>
<a id="pl.47.31"></a><var>47.31</var>subdivision have the meanings given them.<br/>
<a id="pl.47.32"></a><var>47.32</var>"Application" to receive approval as an authorizer means the proposal an eligible <br/>
<a id="pl.47.33"></a><var>47.33</var>authorizer submits to the commissioner under paragraph (c) before that authorizer is able <br/>
<a id="pl.47.34"></a><var>47.34</var>to submit any affidavit to charter to a school.<br/>
<a id="pl.48.1"></a><var>48.1</var>"Application" under subdivision 4 means the charter school business plan a <br/>
<a id="pl.48.2"></a><var>48.2</var>school developer submits to an authorizer for approval to establish a charter school that <br/>
<a id="pl.48.3"></a><var>48.3</var>documents the school developer's mission statement, school purposes, program design, <br/>
<a id="pl.48.4"></a><var>48.4</var>financial plan, governance and management structure, and background and experience, <br/>
<a id="pl.48.5"></a><var>48.5</var>plus any other information the authorizer requests. The application also shall include a <br/>
<a id="pl.48.6"></a><var>48.6</var>"statement of assurances" of legal compliance prescribed by the commissioner.<br/>
<a id="pl.48.7"></a><var>48.7</var>"Affidavit" means a written statement the authorizer submits to the commissioner <br/>
<a id="pl.48.8"></a><var>48.8</var>for approval to establish a charter school under subdivision 4 attesting to its review and <br/>
<a id="pl.48.9"></a><var>48.9</var>approval process before chartering a school.<br/>
<a id="pl.48.10"></a><var>48.10</var>"Affidavit" means the form an authorizer submits to the commissioner that is a <br/>
<a id="pl.48.11"></a><var>48.11</var>precondition to a charter school organizing an affiliated nonprofit building corporation <br/>
<a id="pl.48.12"></a><var>48.12</var>under subdivision 17a.<br/>
<a id="pl.48.13"></a><var>48.13</var>(b) The following organizations may authorize one or more charter schools:<br/>
<a id="pl.48.14"></a><var>48.14</var>(1) a school board; intermediate school district school board; education district <br/>
<a id="pl.48.15"></a><var>48.15</var>organized under sections 
         <statute_ref>123A.15</statute_ref> to 
         <statute_ref>123A.19</statute_ref>;<br/>
<a id="pl.48.16"></a><var>48.16</var>(2) a charitable organization under section 501(c)(3) of the Internal Revenue <br/>
<a id="pl.48.17"></a><var>48.17</var>Code of 1986, excluding a nonpublic sectarian or religious institution, without an <br/>
<a id="pl.48.18"></a><var>48.18</var>approved affidavit by the commissioner prior to July 1, 2009, and any person other than a <br/>
<a id="pl.48.19"></a><var>48.19</var>natural person that directly or indirectly, through one or more intermediaries, controls, <br/>
<a id="pl.48.20"></a><var>48.20</var>is controlled by, or is under common control with the nonpublic sectarian or religious <br/>
<a id="pl.48.21"></a><var>48.21</var>institution, and any other charitable organization under this clause that in the federal IRS <br/>
<a id="pl.48.22"></a><var>48.22</var>Form 1023, Part IV, describes activities indicating a religious purpose, that:<br/>
<a id="pl.48.23"></a><var>48.23</var>(i) is a member of the Minnesota Council of Nonprofits or the Minnesota Council on <br/>
<a id="pl.48.24"></a><var>48.24</var>Foundations;<br/>
<a id="pl.48.25"></a><var>48.25</var>(ii) is registered with the attorney general's office;<br/>
<a id="pl.48.26"></a><var>48.26</var>(iii) reports an end-of-year fund balance of at least $2,000,000; and<br/>
<a id="pl.48.27"></a><var>48.27</var>(iv) is incorporated in the state of Minnesota;<br/>
<a id="pl.48.28"></a><var>48.28</var>(3) a Minnesota private college, notwithstanding clause (2), that grants two- or <br/>
<a id="pl.48.29"></a><var>48.29</var>four-year degrees and is registered with the Minnesota Office of Higher Education under <br/>
<a id="pl.48.30"></a><var>48.30</var>chapter 136A; community college, state university, or technical college governed by the <br/>
<a id="pl.48.31"></a><var>48.31</var>Board of Trustees of the Minnesota State Colleges and Universities; or the University of <br/>
<a id="pl.48.32"></a><var>48.32</var>Minnesota; or<br/>
<a id="pl.48.33"></a><var>48.33</var>(4) a nonprofit corporation subject to chapter 317A, described in section 
         <statute_ref>317A.905</statute_ref>, <br/>
<a id="pl.48.34"></a><var>48.34</var>and exempt from federal income tax under section 501(c)(6) of the Internal Revenue Code <br/>
<a id="pl.48.35"></a><var>48.35</var>of 1986, may authorize one or more charter schools if the charter school has operated <br/>
<a id="pl.49.1"></a><var>49.1</var>for at least three years under a different authorizer and if the nonprofit corporation has <br/>
<a id="pl.49.2"></a><var>49.2</var>existed for at least 25 years.<br/>
<a id="pl.49.3"></a><var>49.3</var>(5) no more than three single-purpose sponsors that are charitable, nonsectarian <br/>
<a id="pl.49.4"></a><var>49.4</var>organizations formed under section 501(c)(3) of the Internal Revenue Code of 1986 and <br/>
<a id="pl.49.5"></a><var>49.5</var>incorporated in the state of Minnesota whose sole purpose is to charter schools. Eligible <br/>
<a id="pl.49.6"></a><var>49.6</var>organizations interested in being approved as a sponsor under this paragraph must submit a <br/>
<a id="pl.49.7"></a><var>49.7</var>proposal to the commissioner that includes the provisions of paragraph (c) and a five-year <br/>
<a id="pl.49.8"></a><var>49.8</var>financial plan. Such authorizers shall consider and approve applications using the criteria <br/>
<a id="pl.49.9"></a><var>49.9</var>provided in subdivision 4 and shall not limit the applications it solicits, considers, or <br/>
<a id="pl.49.10"></a><var>49.10</var>approves to any single curriculum, learning program, or method.<br/>
<a id="pl.49.11"></a><var>49.11</var>(c) An eligible authorizer under this subdivision must apply to the commissioner for <br/>
<a id="pl.49.12"></a><var>49.12</var>approval as an authorizer before submitting any affidavit to the commissioner to charter <br/>
<a id="pl.49.13"></a><var>49.13</var>a school. The application for approval as a charter school authorizer must demonstrate <br/>
<a id="pl.49.14"></a><var>49.14</var>the applicant's ability to implement the procedures and satisfy the criteria for chartering a <br/>
<a id="pl.49.15"></a><var>49.15</var>school under this section. The commissioner must approve or disapprove an application <br/>
<a id="pl.49.16"></a><var>49.16</var>within 60 business days of the application deadline. If the commissioner disapproves <br/>
<a id="pl.49.17"></a><var>49.17</var>the application, the commissioner must notify the applicant of the deficiencies and the <br/>
<a id="pl.49.18"></a><var>49.18</var>applicant then has 20 business days to address the deficiencies to the commissioner's <br/>
<a id="pl.49.19"></a><var>49.19</var>satisfaction. Failing to address the deficiencies to the commissioner's satisfaction makes <br/>
<a id="pl.49.20"></a><var>49.20</var>an applicant ineligible to be an authorizer. The commissioner, in establishing criteria for <br/>
<a id="pl.49.21"></a><var>49.21</var>approval, must consider the applicant's:<br/>
<a id="pl.49.22"></a><var>49.22</var>(1) capacity and infrastructure;<br/>
<a id="pl.49.23"></a><var>49.23</var>(2) application criteria and process;<br/>
<a id="pl.49.24"></a><var>49.24</var>(3) contracting process;<br/>
<a id="pl.49.25"></a><var>49.25</var>(4) ongoing oversight and evaluation processes; and<br/>
<a id="pl.49.26"></a><var>49.26</var>(5) renewal criteria and processes.<br/>
<a id="pl.49.27"></a><var>49.27</var>(d) The affidavit application for approval to be submitted to and evaluated by the <br/>
<a id="pl.49.28"></a><var>49.28</var>commissioner must include at least the following:<br/>
<a id="pl.49.29"></a><var>49.29</var>(1) how chartering schools is a way for the organization to carry out its mission;<br/>
<a id="pl.49.30"></a><var>49.30</var>(2) a description of the capacity of the organization to serve as a sponsor, including <br/>
<a id="pl.49.31"></a><var>49.31</var>the personnel who will perform the sponsoring duties, their qualifications, the amount of <br/>
<a id="pl.49.32"></a><var>49.32</var>time they will be assigned to this responsibility, and the financial resources allocated <br/>
<a id="pl.49.33"></a><var>49.33</var>by the organization to this responsibility;<br/>
<a id="pl.49.34"></a><var>49.34</var>(3) a description of the application and review process the authorizer will use to make <br/>
<a id="pl.49.35"></a><var>49.35</var>decisions regarding the granting of charters, which will include at least the following:<br/>
<a id="pl.49.36"></a><var>49.36</var>(i) how the statutory purposes defined in subdivision 1 are addressed;<br/>
<a id="pl.50.1"></a><var>50.1</var>(ii) the mission, goals, program model, and student performance expectations;<br/>
<a id="pl.50.2"></a><var>50.2</var>(iii) an evaluation plan for the school that includes criteria for evaluating educational, <br/>
<a id="pl.50.3"></a><var>50.3</var>organizational, and fiscal plans;<br/>
<a id="pl.50.4"></a><var>50.4</var>(iv) the school's governance plan;<br/>
<a id="pl.50.5"></a><var>50.5</var>(v) the financial management plan; and<br/>
<a id="pl.50.6"></a><var>50.6</var>(vi) the administration and operations plan;<br/>
<a id="pl.50.7"></a><var>50.7</var>(4) a description of the type of contract it will arrange with the schools it charters <br/>
<a id="pl.50.8"></a><var>50.8</var>that meets the provisions of subdivision 6 and defines the rights and responsibilities of the <br/>
<a id="pl.50.9"></a><var>50.9</var>charter school for governing its educational program, controlling its funds, and making <br/>
<a id="pl.50.10"></a><var>50.10</var>school management decisions;<br/>
<a id="pl.50.11"></a><var>50.11</var>(5) the process to be used for providing ongoing oversight of the school consistent <br/>
<a id="pl.50.12"></a><var>50.12</var>with the contract expectations specified in clause (4) that assures that the schools chartered <br/>
<a id="pl.50.13"></a><var>50.13</var>are complying with both the provisions of applicable law and rules, and with the contract;<br/>
<a id="pl.50.14"></a><var>50.14</var>(6) the process for making decisions regarding the renewal or termination of <br/>
<a id="pl.50.15"></a><var>50.15</var>the school's charter based on evidence that demonstrates the academic, organizational, <br/>
<a id="pl.50.16"></a><var>50.16</var>and financial competency of the school, including its success in increasing student <br/>
<a id="pl.50.17"></a><var>50.17</var>achievement and meeting the goals of the charter school agreement; and<br/>
<a id="pl.50.18"></a><var>50.18</var>(7) an assurance specifying that the organization is committed to serving as a <br/>
<a id="pl.50.19"></a><var>50.19</var>sponsor for the full five-year term.<br/>
<a id="pl.50.20"></a><var>50.20</var>A disapproved applicant under this paragraph may resubmit an application during a <br/>
<a id="pl.50.21"></a><var>50.21</var>future application period.<br/>
<a id="pl.50.22"></a><var>50.22</var>(e) The authorizer must participate in department-approved training.<br/>
<a id="pl.50.23"></a><var>50.23</var>(f) An authorizer that chartered a school before August 1, 2009, must apply by <br/>
<a id="pl.50.24"></a><var>50.24</var>June 30, 2011, to the commissioner for approval, under paragraph (c), to continue as an <br/>
<a id="pl.50.25"></a><var>50.25</var>authorizer under this section. For purposes of this paragraph, an authorizer that fails to <br/>
<a id="pl.50.26"></a><var>50.26</var>submit a timely application is ineligible to charter a school.<br/>
<a id="pl.50.27"></a><var>50.27</var>(g) The commissioner shall review an authorizer's performance every five years in <br/>
<a id="pl.50.28"></a><var>50.28</var>a manner and form determined by the commissioner and may review an authorizer's <br/>
<a id="pl.50.29"></a><var>50.29</var>performance more frequently at the commissioner's own initiative or at the request of a <br/>
<a id="pl.50.30"></a><var>50.30</var>charter school operator, charter school board member, or other interested party. The <br/>
<a id="pl.50.31"></a><var>50.31</var>commissioner, after completing the review, shall transmit a report with findings to the <br/>
<a id="pl.50.32"></a><var>50.32</var>authorizer. If, consistent with this section, the commissioner finds that an authorizer <br/>
<a id="pl.50.33"></a><var>50.33</var>has not fulfilled the requirements of this section, the commissioner may subject the <br/>
<a id="pl.50.34"></a><var>50.34</var>authorizer to corrective action, which may include terminating the contract with the <br/>
<a id="pl.50.35"></a><var>50.35</var>charter school board of directors of a school it chartered. The commissioner must notify <br/>
<a id="pl.50.36"></a><var>50.36</var>the authorizer in writing of any findings that may subject the authorizer to corrective <br/>
<a id="pl.51.1"></a><var>51.1</var>action and the authorizer then has 15 business days to request an informal hearing before <br/>
<a id="pl.51.2"></a><var>51.2</var>the commissioner takes corrective action.<br/>
<a id="pl.51.3"></a><var>51.3</var>(h) The commissioner may at any time take corrective action against an authorizer, <br/>
<a id="pl.51.4"></a><var>51.4</var>including terminating an authorizer's ability to charter a school for:<br/>
<a id="pl.51.5"></a><var>51.5</var>(1) failing to demonstrate the criteria under paragraph (c) under which the <br/>
<a id="pl.51.6"></a><var>51.6</var>commissioner approved the authorizer;<br/>
<a id="pl.51.7"></a><var>51.7</var>(2) violating a term of the chartering contract between the authorizer and the charter <br/>
<a id="pl.51.8"></a><var>51.8</var>school board of directors; or<br/>
<a id="pl.51.9"></a><var>51.9</var>(3) unsatisfactory performance as an approved authorizer.<br/>
<br/>
<a id="bill.2.28.0"></a><a id="pl.51.10"></a><var>51.10</var>    Sec. 28. Minnesota Statutes 2009 Supplement, section 124D.10, subdivision 4, is <br/>
<a id="pl.51.11"></a><var>51.11</var>amended to read:<br/>
<a id="pl.51.12"></a><var>51.12</var>    Subd. 4. <b>Formation of school.</b> (a) An authorizer, after receiving an application from <br/>
<a id="pl.51.13"></a><var>51.13</var>a school developer, may charter a licensed teacher under section 
         <statute_ref>122A.18, subdivision <br/>
<a id="pl.51.14"></a><var>51.14</var>1
         </statute_ref>, or a group of individuals that includes one or more licensed teachers under section <br/>
<statute_ref><a id="pl.51.15"></a><var>51.15</var>122A.18, subdivision 1
         </statute_ref>, to operate a school subject to the commissioner's approval of the <br/>
<a id="pl.51.16"></a><var>51.16</var>authorizer's affidavit under paragraph (b). The school must be organized and operated <br/>
<a id="pl.51.17"></a><var>51.17</var>as a cooperative under chapter 308A or nonprofit corporation under chapter 317A and <br/>
<a id="pl.51.18"></a><var>51.18</var>the provisions under the applicable chapter shall apply to the school except as provided <br/>
<a id="pl.51.19"></a><var>51.19</var>in this section.<br/>
<a id="pl.51.20"></a><var>51.20</var>Notwithstanding sections 
         <statute_ref>465.717</statute_ref> and 
         <statute_ref>465.719</statute_ref>, a school district, subject to this <br/>
<a id="pl.51.21"></a><var>51.21</var>section and section 
         <statute_ref>124D.11</statute_ref>, may create a corporation for the purpose of establishing a <br/>
<a id="pl.51.22"></a><var>51.22</var>charter school.<br/>
<a id="pl.51.23"></a><var>51.23</var>    (b) Before the operators may establish and operate a school, the authorizer must file <br/>
<a id="pl.51.24"></a><var>51.24</var>an affidavit with the commissioner stating its intent to charter a school. An authorizer <br/>
<a id="pl.51.25"></a><var>51.25</var>must file a separate affidavit for each school it intends to charter. The affidavit must <br/>
<a id="pl.51.26"></a><var>51.26</var>state the terms and conditions under which the authorizer would charter a school and <br/>
<a id="pl.51.27"></a><var>51.27</var>how the authorizer intends to oversee the fiscal and student performance of the charter <br/>
<a id="pl.51.28"></a><var>51.28</var>school and to comply with the terms of the written contract between the authorizer <br/>
<a id="pl.51.29"></a><var>51.29</var>and the charter school board of directors under subdivision 6. The commissioner must <br/>
<a id="pl.51.30"></a><var>51.30</var>approve or disapprove the authorizer's affidavit within 60 business days of receipt of the <br/>
<a id="pl.51.31"></a><var>51.31</var>affidavit. If the commissioner disapproves the affidavit, the commissioner shall notify <br/>
<a id="pl.51.32"></a><var>51.32</var>the authorizer of the deficiencies in the affidavit and the authorizer then has 20 business <br/>
<a id="pl.51.33"></a><var>51.33</var>days to address the deficiencies. If the authorizer does not address deficiencies to the <br/>
<a id="pl.51.34"></a><var>51.34</var>commissioner's satisfaction, the commissioner's disapproval is final. Failure to obtain <br/>
<a id="pl.52.1"></a><var>52.1</var>commissioner approval precludes an authorizer from chartering the school that is the <br/>
<a id="pl.52.2"></a><var>52.2</var>subject of this affidavit.<br/>
<a id="pl.52.3"></a><var>52.3</var>    (c) The authorizer may prevent an approved charter school from opening for <br/>
<a id="pl.52.4"></a><var>52.4</var>operation if, among other grounds, the charter school violates this section or does not meet <br/>
<a id="pl.52.5"></a><var>52.5</var>the ready-to-open standards that are part of the authorizer's oversight and evaluation <br/>
<a id="pl.52.6"></a><var>52.6</var>process or are stipulated in the charter school contract.<br/>
<a id="pl.52.7"></a><var>52.7</var>(d) The operators authorized to organize and operate a school, before entering into a <br/>
<a id="pl.52.8"></a><var>52.8</var>contract or other agreement for professional or other services, goods, or facilities, must <br/>
<a id="pl.52.9"></a><var>52.9</var>incorporate as a cooperative under chapter 308A or as a nonprofit corporation under <br/>
<a id="pl.52.10"></a><var>52.10</var>chapter 317A and must establish a board of directors composed of at least five members <br/>
<a id="pl.52.11"></a><var>52.11</var>who are not related parties until a timely election for members of the ongoing charter <br/>
<a id="pl.52.12"></a><var>52.12</var>school board of directors is held according to the school's articles and bylaws under <br/>
<a id="pl.52.13"></a><var>52.13</var>paragraph (f). A charter school board of directors must be composed of at least five <br/>
<a id="pl.52.14"></a><var>52.14</var>members who are not related parties. Staff members employed at the school, including <br/>
<a id="pl.52.15"></a><var>52.15</var>teachers providing instruction under a contract with a cooperative, and all parents or legal <br/>
<a id="pl.52.16"></a><var>52.16</var>guardians of children enrolled in the school are the voters eligible to elect the members <br/>
<a id="pl.52.17"></a><var>52.17</var>of the school's board of directors. A charter school must notify eligible voters of the <br/>
<a id="pl.52.18"></a><var>52.18</var>school board election dates at least 30 days before the election. Board of director meetings <br/>
<a id="pl.52.19"></a><var>52.19</var>must comply with chapter 13D.<br/>
<a id="pl.52.20"></a><var>52.20</var>    (e) Upon the request of an individual, the charter school must make available in <br/>
<a id="pl.52.21"></a><var>52.21</var>a timely fashion the minutes of meetings of the board of directors, and of members <br/>
<a id="pl.52.22"></a><var>52.22</var>and committees having any board-delegated authority; financial statements showing all <br/>
<a id="pl.52.23"></a><var>52.23</var>operations and transactions affecting income, surplus, and deficit during the school's last <br/>
<a id="pl.52.24"></a><var>52.24</var>annual accounting period; and a balance sheet summarizing assets and liabilities on the <br/>
<a id="pl.52.25"></a><var>52.25</var>closing date of the accounting period. A charter school also must post on its official Web <br/>
<a id="pl.52.26"></a><var>52.26</var>site information identifying its authorizer and indicate how to contact that authorizer and <br/>
<a id="pl.52.27"></a><var>52.27</var>include that same information about its authorizer in other school materials that it makes <br/>
<a id="pl.52.28"></a><var>52.28</var>available to the public.<br/>
<a id="pl.52.29"></a><var>52.29</var>(f) Every charter school board member shall attend department-approved training <br/>
<a id="pl.52.30"></a><var>52.30</var>on board governance, the board's role and responsibilities, employment policies and <br/>
<a id="pl.52.31"></a><var>52.31</var>practices, and financial management. A board member who does not begin the required <br/>
<a id="pl.52.32"></a><var>52.32</var>training within six months of being seated and complete the required training within 12 <br/>
<a id="pl.52.33"></a><var>52.33</var>months of being seated on the board is ineligible to continue to serve as a board member.<br/>
<a id="pl.52.34"></a><var>52.34</var>(g) The ongoing board must be elected before the school completes its third year <br/>
<a id="pl.52.35"></a><var>52.35</var>of operation. Board elections must be held during a time when school is in session. The <br/>
<a id="pl.52.36"></a><var>52.36</var>charter school board of directors shall be composed of at least five nonrelated members <br/>
<a id="pl.53.1"></a><var>53.1</var>and include: (i) at least one licensed teacher employed and serving as a teacher at the <br/>
<a id="pl.53.2"></a><var>53.2</var>school or a licensed teacher providing instruction under a contact contract between the <br/>
<a id="pl.53.3"></a><var>53.3</var>charter school and a cooperative; (ii) the parent or legal guardian of a student enrolled <br/>
<a id="pl.53.4"></a><var>53.4</var>in the charter school who is not employed by the charter school; and (iii) an interested <br/>
<a id="pl.53.5"></a><var>53.5</var>community member who is not employed by the charter school and does not have a child <br/>
<a id="pl.53.6"></a><var>53.6</var>enrolled in the school. The board may be a teacher majority board composed of teachers <br/>
<a id="pl.53.7"></a><var>53.7</var>described in this paragraph. The chief financial officer and the chief administrator are may <br/>
<a id="pl.53.8"></a><var>53.8</var>only serve as ex-officio nonvoting board members and shall not serve as a voting member <br/>
<a id="pl.53.9"></a><var>53.9</var>of the board. Charter school employees shall not serve on the board unless item (i) applies. <br/>
<a id="pl.53.10"></a><var>53.10</var>Contractors providing facilities, goods, or services to a charter school shall not serve on <br/>
<a id="pl.53.11"></a><var>53.11</var>the board of directors of the charter school. Board bylaws shall outline the process and <br/>
<a id="pl.53.12"></a><var>53.12</var>procedures for changing the board's governance model, consistent with chapter 317A. A <br/>
<a id="pl.53.13"></a><var>53.13</var>board may change its governance model only:<br/>
<a id="pl.53.14"></a><var>53.14</var>(1) by a majority vote of the board of directors and the licensed teachers employed <br/>
<a id="pl.53.15"></a><var>53.15</var>by the school, including licensed teachers providing instruction under a contract between <br/>
<a id="pl.53.16"></a><var>53.16</var>the school and a cooperative; and<br/>
<a id="pl.53.17"></a><var>53.17</var>(2) with the authorizer's approval.<br/>
<a id="pl.53.18"></a><var>53.18</var>Any change in board governance must conform with the board structure established <br/>
<a id="pl.53.19"></a><var>53.19</var>under this paragraph.<br/>
<a id="pl.53.20"></a><var>53.20</var>(h) The granting or renewal of a charter by an authorizer must not be conditioned <br/>
<a id="pl.53.21"></a><var>53.21</var>upon the bargaining unit status of the employees of the school.<br/>
<a id="pl.53.22"></a><var>53.22</var>(i) The granting or renewal of a charter school by an authorizer must not be <br/>
<a id="pl.53.23"></a><var>53.23</var>contingent on the charter school being required to contract, lease, or purchase services <br/>
<a id="pl.53.24"></a><var>53.24</var>from the authorizer. Any potential contract, lease, or purchase of service from an <br/>
<a id="pl.53.25"></a><var>53.25</var>authorizer must be disclosed to the commissioner, accepted through an open bidding <br/>
<a id="pl.53.26"></a><var>53.26</var>process, and be a separate contract from the charter contract. The school must document <br/>
<a id="pl.53.27"></a><var>53.27</var>the open bidding process. An authorizer must not enter into a contract to provide <br/>
<a id="pl.53.28"></a><var>53.28</var>management and financial services for a school that it authorizes, unless the school <br/>
<a id="pl.53.29"></a><var>53.29</var>documents that it received at least two competitive bids.<br/>
<a id="pl.53.30"></a><var>53.30</var>    (j) An authorizer may permit the board of directors of a charter school to expand <br/>
<a id="pl.53.31"></a><var>53.31</var>the operation of the charter school to additional sites or to add additional grades at the <br/>
<a id="pl.53.32"></a><var>53.32</var>school beyond those described in the authorizer's original affidavit as approved by <br/>
<a id="pl.53.33"></a><var>53.33</var>the commissioner only after submitting a supplemental affidavit for approval to the <br/>
<a id="pl.53.34"></a><var>53.34</var>commissioner in a form and manner prescribed by the commissioner. The supplemental <br/>
<a id="pl.53.35"></a><var>53.35</var>affidavit must show that:<br/>
<a id="pl.54.1"></a><var>54.1</var>    (1) the expansion proposed by the charter school is supported by need and projected <br/>
<a id="pl.54.2"></a><var>54.2</var>enrollment;<br/>
<a id="pl.54.3"></a><var>54.3</var>(2) the charter school expansion is warranted, at a minimum, by longitudinal data <br/>
<a id="pl.54.4"></a><var>54.4</var>demonstrating students' improved academic performance and growth on statewide <br/>
<a id="pl.54.5"></a><var>54.5</var>assessments under chapter 120B;<br/>
<a id="pl.54.6"></a><var>54.6</var>    (3) the charter school is fiscally sound and has the financial capacity to implement <br/>
<a id="pl.54.7"></a><var>54.7</var>the proposed expansion; and<br/>
<a id="pl.54.8"></a><var>54.8</var>    (4) the authorizer finds that the charter school has the management capacity to <br/>
<a id="pl.54.9"></a><var>54.9</var>carry out its expansion.<br/>
<a id="pl.54.10"></a><var>54.10</var>    (k) The commissioner shall have 30 business days to review and comment on the <br/>
<a id="pl.54.11"></a><var>54.11</var>supplemental affidavit. The commissioner shall notify the authorizer of any deficiencies in <br/>
<a id="pl.54.12"></a><var>54.12</var>the supplemental affidavit and the authorizer then has 30 business days to address, to the <br/>
<a id="pl.54.13"></a><var>54.13</var>commissioner's satisfaction, any deficiencies in the supplemental affidavit. The school <br/>
<a id="pl.54.14"></a><var>54.14</var>may not expand grades or add sites until the commissioner has approved the supplemental <br/>
<a id="pl.54.15"></a><var>54.15</var>affidavit. The commissioner's approval or disapproval of a supplemental affidavit is final.<br/>
<br/>
<a id="bill.2.29.0"></a><a id="pl.54.16"></a><var>54.16</var>    Sec. 29. Minnesota Statutes 2009 Supplement, section 124D.10, subdivision 4a, <br/>
<a id="pl.54.17"></a><var>54.17</var>is amended to read:<br/>
<a id="pl.54.18"></a><var>54.18</var>    Subd. 4a. <b>Conflict of interest.</b> (a) An individual is prohibited from serving must <br/>
<a id="pl.54.19"></a><var>54.19</var>not serve as a member of the charter school board of directors if the that individual, an <br/>
<a id="pl.54.20"></a><var>54.20</var>immediate family member, or the individual's partner is an owner, an employee or agent <br/>
<a id="pl.54.21"></a><var>54.21</var>of, or a contractor who contracts with a for-profit or nonprofit entity, or an individual, and <br/>
<a id="pl.54.22"></a><var>54.22</var>with whom the charter school contracts, directly or indirectly, for professional services, <br/>
<a id="pl.54.23"></a><var>54.23</var>goods, or facilities. A violation of this prohibition renders a contract voidable at the option <br/>
<a id="pl.54.24"></a><var>54.24</var>of the commissioner or the charter school board of directors. A member of a charter <br/>
<a id="pl.54.25"></a><var>54.25</var>school board of directors who violates this prohibition is individually liable to the charter <br/>
<a id="pl.54.26"></a><var>54.26</var>school for any damage caused by the violation.<br/>
<a id="pl.54.27"></a><var>54.27</var>(b) No member of the board of directors, employee, officer, or agent of a charter <br/>
<a id="pl.54.28"></a><var>54.28</var>school shall participate in selecting, awarding, or administering a contract if a conflict <br/>
<a id="pl.54.29"></a><var>54.29</var>of interest exists. A conflict exists when:<br/>
<a id="pl.54.30"></a><var>54.30</var>(1) the board member, employee, officer, or agent;<br/>
<a id="pl.54.31"></a><var>54.31</var>(2) the immediate family of the board member, employee, officer, or agent;<br/>
<a id="pl.54.32"></a><var>54.32</var>(3) the partner of the board member, employee, officer, or agent; or<br/>
<a id="pl.54.33"></a><var>54.33</var>(4) an organization that employs, or is about to employ any individual in clauses <br/>
<a id="pl.54.34"></a><var>54.34</var>(1) to (3),<br/>
<a id="pl.55.1"></a><var>55.1</var>has a financial or other interest in the entity with which the charter school is contracting. <br/>
<a id="pl.55.2"></a><var>55.2</var>A violation of this prohibition renders the contract void.<br/>
<a id="pl.55.3"></a><var>55.3</var>(c) Any employee, agent, or board member of the authorizer who participates <br/>
<a id="pl.55.4"></a><var>55.4</var>in the initial review, approval, ongoing oversight, evaluation, or the charter renewal or <br/>
<a id="pl.55.5"></a><var>55.5</var>nonrenewal process or decision is ineligible to serve on the board of directors of a school <br/>
<a id="pl.55.6"></a><var>55.6</var>chartered by that authorizer.<br/>
<a id="pl.55.7"></a><var>55.7</var>(d) An individual may serve as a member of the board of directors if no conflict of <br/>
<a id="pl.55.8"></a><var>55.8</var>interest under paragraph (a) exists.<br/>
<a id="pl.55.9"></a><var>55.9</var>(e) A charter school board member or employee may receive remuneration such as <br/>
<a id="pl.55.10"></a><var>55.10</var>a fee-for-service as part of a financial transaction involving a charter school only if the <br/>
<a id="pl.55.11"></a><var>55.11</var>remuneration is payment for services rendered that are in addition to the services the board <br/>
<a id="pl.55.12"></a><var>55.12</var>member or employee already agreed to provide to the charter school and the board of <br/>
<a id="pl.55.13"></a><var>55.13</var>directors formally approves the remuneration.<br/>
<a id="pl.55.14"></a><var>55.14</var>(f) The conflict of interest provisions under this subdivision do not apply to <br/>
<a id="pl.55.15"></a><var>55.15</var>compensation paid to a teacher employed by the charter school who also serves as a <br/>
<a id="pl.55.16"></a><var>55.16</var>member of the board of directors.<br/>
<a id="pl.55.17"></a><var>55.17</var>(f) (g) The conflict of interest provisions under this subdivision do not apply to a <br/>
<a id="pl.55.18"></a><var>55.18</var>teacher who provides services to a charter school through a cooperative formed under <br/>
<a id="pl.55.19"></a><var>55.19</var>chapter 308A when the teacher also serves on the charter school board of directors.<br/>
<a id="pl.55.20"></a><var>55.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.30.0"></a><a id="pl.55.21"></a><var>55.21</var>    Sec. 30. Minnesota Statutes 2009 Supplement, section 124D.10, subdivision 6a, <br/>
<a id="pl.55.22"></a><var>55.22</var>is amended to read:<br/>
<a id="pl.55.23"></a><var>55.23</var>    Subd. 6a. <b>Audit report.</b> (a) The charter school must submit an audit report to the <br/>
<a id="pl.55.24"></a><var>55.24</var>commissioner and its authorizer by December 31 each year.<br/>
<a id="pl.55.25"></a><var>55.25</var>(b) The charter school, with the assistance of the auditor conducting the audit, must <br/>
<a id="pl.55.26"></a><var>55.26</var>include with the report a copy of all charter school agreements for corporate management <br/>
<a id="pl.55.27"></a><var>55.27</var>services. If the entity that provides the professional services to the charter school is <br/>
<a id="pl.55.28"></a><var>55.28</var>exempt from taxation under section 501 of the Internal Revenue Code of 1986, that entity <br/>
<a id="pl.55.29"></a><var>55.29</var>must file with the commissioner by February 15 a copy of the annual return required under <br/>
<a id="pl.55.30"></a><var>55.30</var>section 6033 of the Internal Revenue Code of 1986.<br/>
<a id="pl.55.31"></a><var>55.31</var>(c) If the commissioner receives an audit report indicating that a material weakness <br/>
<a id="pl.55.32"></a><var>55.32</var>exists in the financial reporting systems of a charter school, the charter school must <br/>
<a id="pl.55.33"></a><var>55.33</var>submit a written report to the commissioner explaining how the material weakness will <br/>
<a id="pl.55.34"></a><var>55.34</var>be resolved. An entity, as a condition of providing financial services to a charter school, <br/>
<a id="pl.56.1"></a><var>56.1</var>must agree to make available information about a charter school's financial audit to the <br/>
<a id="pl.56.2"></a><var>56.2</var>commissioner upon request.<br/>
<br/>
<a id="bill.2.31.0"></a><a id="pl.56.3"></a><var>56.3</var>    Sec. 31. Minnesota Statutes 2009 Supplement, section 124D.10, subdivision 11, <br/>
<a id="pl.56.4"></a><var>56.4</var>is amended to read:<br/>
<a id="pl.56.5"></a><var>56.5</var>    Subd. 11. <b>Employment and other operating matters.</b> (a) A charter school must <br/>
<a id="pl.56.6"></a><var>56.6</var>employ or contract with necessary teachers, as defined by section 
         <statute_ref>122A.15, subdivision <br/>
<a id="pl.56.7"></a><var>56.7</var>1
         </statute_ref>, who hold valid licenses to perform the particular service for which they are employed <br/>
<a id="pl.56.8"></a><var>56.8</var>in the school. The charter school's state aid may be reduced under section 
         <statute_ref>127A.43 <br/>
</statute_ref><a id="pl.56.9"></a><var>56.9</var>if the school employs a teacher who is not appropriately licensed or approved by the <br/>
<a id="pl.56.10"></a><var>56.10</var>board of teaching. The school may employ necessary employees who are not required to <br/>
<a id="pl.56.11"></a><var>56.11</var>hold teaching licenses to perform duties other than teaching and may contract for other <br/>
<a id="pl.56.12"></a><var>56.12</var>services. The school may discharge teachers and nonlicensed employees. The charter <br/>
<a id="pl.56.13"></a><var>56.13</var>school board is subject to section 
         <statute_ref>181.932</statute_ref>. When offering employment to a prospective <br/>
<a id="pl.56.14"></a><var>56.14</var>employee, a charter school must give that employee a written description of the terms and <br/>
<a id="pl.56.15"></a><var>56.15</var>conditions of employment and the school's personnel policies. The terms and conditions <br/>
<a id="pl.56.16"></a><var>56.16</var>of employment must include an annual teacher evaluation that is substantively consistent <br/>
<a id="pl.56.17"></a><var>56.17</var>with section 122A.40, subdivision 8, paragraph (b). Teacher evaluations do not create <br/>
<a id="pl.56.18"></a><var>56.18</var>an expectation of continuing employment.<br/>
<a id="pl.56.19"></a><var>56.19</var>(b) A person, without holding a valid administrator's license, may perform <br/>
<a id="pl.56.20"></a><var>56.20</var>administrative, supervisory, or instructional leadership duties. The board of directors shall <br/>
<a id="pl.56.21"></a><var>56.21</var>establish qualifications for persons that hold administrative, supervisory, or instructional <br/>
<a id="pl.56.22"></a><var>56.22</var>leadership roles. The qualifications shall include at least the following areas: instruction <br/>
<a id="pl.56.23"></a><var>56.23</var>and assessment; human resource and personnel management; financial management; <br/>
<a id="pl.56.24"></a><var>56.24</var>legal and compliance management; effective communication; and board, authorizer, and <br/>
<a id="pl.56.25"></a><var>56.25</var>community relationships. The board of directors shall use those qualifications as the <br/>
<a id="pl.56.26"></a><var>56.26</var>basis for job descriptions, hiring, and performance evaluations, substantively consistent <br/>
<a id="pl.56.27"></a><var>56.27</var>with section 123B.147, subdivision 3, paragraph (b), of those who hold administrative, <br/>
<a id="pl.56.28"></a><var>56.28</var>supervisory, or instructional leadership roles. Performance evaluations do not create <br/>
<a id="pl.56.29"></a><var>56.29</var>an expectation of continuing employment. The board of directors and an individual <br/>
<a id="pl.56.30"></a><var>56.30</var>who does not hold a valid administrative license and who serves in an administrative, <br/>
<a id="pl.56.31"></a><var>56.31</var>supervisory, or instructional leadership position shall develop a professional development <br/>
<a id="pl.56.32"></a><var>56.32</var>plan. Documentation of the implementation of the professional development plan of these <br/>
<a id="pl.56.33"></a><var>56.33</var>persons shall be included in the school's annual report.<br/>
<a id="pl.56.34"></a><var>56.34</var>(c) The board of directors also shall decide matters related to the operation of the <br/>
<a id="pl.56.35"></a><var>56.35</var>school, including budgeting, curriculum and operating procedures.<br/>
<a id="pl.57.1"></a><var>57.1</var><b>EFFECTIVE DATE.</b>This section is effective for the 2011-2012 school year and <br/>
<a id="pl.57.2"></a><var>57.2</var>later.<br/>
<br/>
<a id="bill.2.32.0"></a><a id="pl.57.3"></a><var>57.3</var>    Sec. 32. Minnesota Statutes 2009 Supplement, section 124D.10, subdivision 23, <br/>
<a id="pl.57.4"></a><var>57.4</var>is amended to read:<br/>
<a id="pl.57.5"></a><var>57.5</var>    Subd. 23. <b>Causes for nonrenewal or termination of charter school contract.</b> (a) <br/>
<a id="pl.57.6"></a><var>57.6</var>The duration of the contract with an authorizer must be for the term contained in the <br/>
<a id="pl.57.7"></a><var>57.7</var>contract according to subdivision 6. The authorizer may or may not renew a contract at <br/>
<a id="pl.57.8"></a><var>57.8</var>the end of the term for any ground listed in paragraph (b). An authorizer may unilaterally <br/>
<a id="pl.57.9"></a><var>57.9</var>terminate a contract during the term of the contract for any ground listed in paragraph <br/>
<a id="pl.57.10"></a><var>57.10</var>(b). At least 60 days before not renewing or terminating a contract, the authorizer shall <br/>
<a id="pl.57.11"></a><var>57.11</var>notify the board of directors of the charter school of the proposed action in writing. The <br/>
<a id="pl.57.12"></a><var>57.12</var>notice shall state the grounds for the proposed action in reasonable detail and that the <br/>
<a id="pl.57.13"></a><var>57.13</var>charter school's board of directors may request in writing an informal hearing before the <br/>
<a id="pl.57.14"></a><var>57.14</var>authorizer within 15 business days of receiving notice of nonrenewal or termination of the <br/>
<a id="pl.57.15"></a><var>57.15</var>contract. Failure by the board of directors to make a written request for a hearing within <br/>
<a id="pl.57.16"></a><var>57.16</var>the 15-business-day period shall be treated as acquiescence to the proposed action. Upon <br/>
<a id="pl.57.17"></a><var>57.17</var>receiving a timely written request for a hearing, the authorizer shall give ten business days' <br/>
<a id="pl.57.18"></a><var>57.18</var>notice to the charter school's board of directors of the hearing date. The authorizer shall <br/>
<a id="pl.57.19"></a><var>57.19</var>conduct an informal hearing before taking final action. The authorizer shall take final <br/>
<a id="pl.57.20"></a><var>57.20</var>action to renew or not renew a contract no later than 20 business days before the proposed <br/>
<a id="pl.57.21"></a><var>57.21</var>date for terminating the contract or the end date of the contract.<br/>
<a id="pl.57.22"></a><var>57.22</var>(b) A contract may be terminated or not renewed upon any of the following grounds:<br/>
<a id="pl.57.23"></a><var>57.23</var>(1) failure to meet the requirements for pupil performance contained in the contract;<br/>
<a id="pl.57.24"></a><var>57.24</var>(2) failure to meet generally accepted standards of fiscal management;<br/>
<a id="pl.57.25"></a><var>57.25</var>(3) violations of law; or<br/>
<a id="pl.57.26"></a><var>57.26</var>(4) other good cause shown.<br/>
<a id="pl.57.27"></a><var>57.27</var>If a contract is terminated or not renewed under this paragraph, the school must be <br/>
<a id="pl.57.28"></a><var>57.28</var>dissolved according to the applicable provisions of chapter 308A or 317A.<br/>
<a id="pl.57.29"></a><var>57.29</var>(c) If the sponsor and the charter school board of directors mutually agree to <br/>
<a id="pl.57.30"></a><var>57.30</var>terminate or not renew the contract, a change in sponsors is allowed if the commissioner <br/>
<a id="pl.57.31"></a><var>57.31</var>approves the transfer to a different eligible authorizer to authorize the charter school. <br/>
<a id="pl.57.32"></a><var>57.32</var>Both parties must jointly submit their intent in writing to the commissioner to mutually <br/>
<a id="pl.57.33"></a><var>57.33</var>terminate the contract. The sponsor that is a party to the existing contract at least must <br/>
<a id="pl.57.34"></a><var>57.34</var>inform the approved different eligible sponsor about the fiscal and operational status <br/>
<a id="pl.57.35"></a><var>57.35</var>and student performance of the school. Before the commissioner determines whether <br/>
<a id="pl.58.1"></a><var>58.1</var>to approve a transfer of authorizer, the commissioner first must determine whether the <br/>
<a id="pl.58.2"></a><var>58.2</var>charter school and prospective new authorizer can identify and effectively resolve those <br/>
<a id="pl.58.3"></a><var>58.3</var>circumstances causing the previous authorizer and the charter school to mutually agree to <br/>
<a id="pl.58.4"></a><var>58.4</var>terminate the contract. If no transfer of sponsor is approved, the school must be dissolved <br/>
<a id="pl.58.5"></a><var>58.5</var>according to applicable law and the terms of the contract.<br/>
<a id="pl.58.6"></a><var>58.6</var>(d) The commissioner, after providing reasonable notice to the board of directors of <br/>
<a id="pl.58.7"></a><var>58.7</var>a charter school and the existing authorizer, and after providing an opportunity for a public <br/>
<a id="pl.58.8"></a><var>58.8</var>hearing under chapter 14, may terminate the existing contract between the authorizer and <br/>
<a id="pl.58.9"></a><var>58.9</var>the charter school board if the charter school has a history of:<br/>
<a id="pl.58.10"></a><var>58.10</var>(1) failure to meet pupil performance requirements contained in the contract <br/>
<a id="pl.58.11"></a><var>58.11</var>consistent with state law;<br/>
<a id="pl.58.12"></a><var>58.12</var>(2) financial mismanagement or failure to meet generally accepted standards of <br/>
<a id="pl.58.13"></a><var>58.13</var>fiscal management; or<br/>
<a id="pl.58.14"></a><var>58.14</var>(3) repeated or major violations of the law.<br/>
<a id="pl.58.15"></a><var>58.15</var>    (e) If the commissioner terminates a charter school contract under subdivision 3, <br/>
<a id="pl.58.16"></a><var>58.16</var>paragraph (g), the commissioner shall provide the charter school with information about <br/>
<a id="pl.58.17"></a><var>58.17</var>other eligible authorizers.<br/>
<br/>
<a id="bill.2.33.0"></a><a id="pl.58.18"></a><var>58.18</var>    Sec. 33. <b>[124D.101] VACANT BUILDING INVENTORY.</b><br/>
<a id="pl.58.19"></a><var>58.19</var>The Department of Administration and the Department of Education annually shall <br/>
<a id="pl.58.20"></a><var>58.20</var>publish a list of state and district-owned buildings and parts of buildings that are vacant <br/>
<a id="pl.58.21"></a><var>58.21</var>and unused and that may be suitable for operating a charter school. The Department of <br/>
<a id="pl.58.22"></a><var>58.22</var>Education shall make the list available to charter school applicants and operators. The <br/>
<a id="pl.58.23"></a><var>58.23</var>list shall include the building address, a brief building description, and building name. <br/>
<a id="pl.58.24"></a><var>58.24</var>Nothing in this section requires a building owner to sell or lease a listed building or a part <br/>
<a id="pl.58.25"></a><var>58.25</var>of a building to a charter school, any other school, or any other prospective buyer or <br/>
<a id="pl.58.26"></a><var>58.26</var>tenant. School districts, upon request, must provide the Department of Education with the <br/>
<a id="pl.58.27"></a><var>58.27</var>information it needs to compile the vacant building list under this section.<br/>
<a id="pl.58.28"></a><var>58.28</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.34.0"></a><a id="pl.58.29"></a><var>58.29</var>    Sec. 34. Laws 2009, chapter 96, article 2, section 64, is amended to read:<br/>
<a id="pl.58.30"></a><var>58.30</var>    Sec. 64. <b>RESERVED REVENUE FOR STAFF DEVELOPMENT; </b><br/>
<a id="pl.58.31"></a><var>58.31</var><b>TEMPORARY SUSPENSION.</b><br/>
<a id="pl.58.32"></a><var>58.32</var>(a) Notwithstanding Minnesota Statutes, section 
         <statute_ref>122A.61, subdivision 1</statute_ref>, for fiscal <br/>
<a id="pl.58.33"></a><var>58.33</var>years 2010 and 2011 only, a school district or charter school may use revenue reserved for <br/>
<a id="pl.58.34"></a><var>58.34</var>staff development under Minnesota Statutes, section 
         <statute_ref>122A.61, subdivision 1</statute_ref>, according <br/>
<a id="pl.59.1"></a><var>59.1</var>to the requirements of general education revenue under Minnesota Statutes, section <br/>
<statute_ref><a id="pl.59.2"></a><var>59.2</var>126C.13, subdivision 5
         </statute_ref>.<br/>
<a id="pl.59.3"></a><var>59.3</var>(b) On June 30, 2010, a school district may permanently transfer any balance from <br/>
<a id="pl.59.4"></a><var>59.4</var>the reserved account for staff development to the undesignated general fund balance.<br/>
<br/>
<a id="bill.2.35.0"></a><a id="pl.59.5"></a><var>59.5</var>    Sec. 35. Laws 2009, chapter 96, article 2, section 67, subdivision 14, is amended to <br/>
<a id="pl.59.6"></a><var>59.6</var>read:<br/>
<a id="pl.59.7"></a><var>59.7</var>    Subd. 14. <b>Collaborative urban educator.</b> For the collaborative urban educator <br/>
<a id="pl.59.8"></a><var>59.8</var>grant program:<br/>
<table>
<col width="50px"/>
<col width="29px"/>
<col width="16px"/>
<col width="105px"/>
<col width="42px"/>
<col width="42px"/>
<tr>
<td><a id="pl.59.9"></a><var>59.9</var><br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">528,000<br/>
</td>
<td align="right">.....<br/>
</td>
<td align="right">2010<br/>
</td>
</tr>
<tr>
<td><a id="pl.59.10"></a><var>59.10</var><br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">528,000<br/>
</td>
<td align="right">.....<br/>
</td>
<td align="right">2011<br/>
</td>
</tr>
</table><a id="pl.59.11"></a><var>59.11</var>$210,000 each year is for the Southeast Asian teacher program at Concordia <br/>
<a id="pl.59.12"></a><var>59.12</var>University, St. Paul; $159,000 each year is for the collaborative urban educator program at <br/>
<a id="pl.59.13"></a><var>59.13</var>the University of St. Thomas; and $159,000 each year is for the Center for Excellence in <br/>
<a id="pl.59.14"></a><var>59.14</var>Urban Teaching at Hamline University. Grant recipients must collaborate with urban and <br/>
<a id="pl.59.15"></a><var>59.15</var>nonurban school districts. Any balance in the first year does not cancel but is available <br/>
<a id="pl.59.16"></a><var>59.16</var>in the second year.<br/>
<a id="pl.59.17"></a><var>59.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.36.0"></a><a id="pl.59.18"></a><var>59.18</var>    Sec. 36. Laws 2009, chapter 96, article 2, section 67, subdivision 17, is amended to <br/>
<a id="pl.59.19"></a><var>59.19</var>read:<br/>
<a id="pl.59.20"></a><var>59.20</var>    Subd. 17. <b>Education Planning and Assessment System (EPAS) program.</b> For <br/>
<a id="pl.59.21"></a><var>59.21</var>the Educational Planning and Assessment System (EPAS) program under Minnesota <br/>
<a id="pl.59.22"></a><var>59.22</var>Statutes, section 
         <statute_ref>120B.128</statute_ref>:<br/>
<table>
<col width="50px"/>
<col width="29px"/>
<col width="16px"/>
<col width="105px"/>
<col width="42px"/>
<col width="42px"/>
<tr>
<td><a id="pl.59.23"></a><var>59.23</var><br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">829,000<br/>
</td>
<td align="right">.....<br/>
</td>
<td align="right">2010<br/>
</td>
</tr>
<tr>
<td><a id="pl.59.24"></a><var>59.24</var><br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">829,000638,000<br/>
</td>
<td align="right">.....<br/>
</td>
<td align="right">2011<br/>
</td>
</tr>
</table><a id="pl.59.25"></a><var>59.25</var>Any balance in the first year does not cancel but is available in the second year.<br/>
<a id="pl.59.26"></a><var>59.26</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.2.37.0"></a><a id="pl.59.27"></a><var>59.27</var>    Sec. 37. <b>IMPLEMENTING DIFFERENTIATED GRADUATION RATE </b><br/>
<a id="pl.59.28"></a><var>59.28</var><b>MEASURES AND EXPLORING ALTERNATIVE ROUTES TO A STANDARD </b><br/>
<a id="pl.59.29"></a><var>59.29</var><b>DIPLOMA FOR AT-RISK AND OFF-TRACK STUDENTS.</b><br/>
<a id="pl.59.30"></a><var>59.30</var>(a) To implement the requirements of Minnesota Statutes, section 120B.35, <br/>
<a id="pl.59.31"></a><var>59.31</var>subdivision 3, paragraph (e), the commissioner of education must convene a group <br/>
<a id="pl.59.32"></a><var>59.32</var>of recognized and qualified experts on improving differentiated graduation rates and <br/>
<a id="pl.60.1"></a><var>60.1</var>establishing alternative routes to a standard high school diploma for at-risk and off-track <br/>
<a id="pl.60.2"></a><var>60.2</var>students throughout the state. The commissioner must assist the group, as requested, <br/>
<a id="pl.60.3"></a><var>60.3</var>to explore and recommend to the commissioner and the legislature (i) research-based <br/>
<a id="pl.60.4"></a><var>60.4</var>measures that demonstrate the relative success of school districts, school sites, charter <br/>
<a id="pl.60.5"></a><var>60.5</var>schools, and alternative program providers in improving the graduation outcomes of <br/>
<a id="pl.60.6"></a><var>60.6</var>at-risk and off-track students, and (ii) state options for establishing alternative routes to a <br/>
<a id="pl.60.7"></a><var>60.7</var>standard diploma consistent with the educational accountability system under Minnesota <br/>
<a id="pl.60.8"></a><var>60.8</var>Statutes, chapter 120B. When proposing alternative routes to a standard diploma, the <br/>
<a id="pl.60.9"></a><var>60.9</var>group also must identify highly reliable variables that generate summary data to comply <br/>
<a id="pl.60.10"></a><var>60.10</var>with Minnesota Statutes, section 120B.35, subdivision 3, paragraph (e), including: who <br/>
<a id="pl.60.11"></a><var>60.11</var>initiates the request for an alternative route; who approves the request for an alternative <br/>
<a id="pl.60.12"></a><var>60.12</var>route; the parameters of the alternative route process, including whether a student first <br/>
<a id="pl.60.13"></a><var>60.13</var>must fail a regular, state-mandated exam; and the comparability of the academic and <br/>
<a id="pl.60.14"></a><var>60.14</var>achievement criteria reflected in the alternative route and the standard route for a standard <br/>
<a id="pl.60.15"></a><var>60.15</var>diploma. The group is also encouraged to identify the data, time lines, and methods <br/>
<a id="pl.60.16"></a><var>60.16</var>needed to evaluate and report on the alternative routes to a standard diploma once they are <br/>
<a id="pl.60.17"></a><var>60.17</var>implemented and the student outcomes that result from those routes.<br/>
<a id="pl.60.18"></a><var>60.18</var>(b) The commissioner must convene the first meeting of this group by September <br/>
<a id="pl.60.19"></a><var>60.19</var>15, 2010. Group members must include: one administrator of, one teacher from, and <br/>
<a id="pl.60.20"></a><var>60.20</var>one parent of a student currently enrolled in a state-approved alternative program <br/>
<a id="pl.60.21"></a><var>60.21</var>selected by the Minnesota Association of Alternative Programs; one representative <br/>
<a id="pl.60.22"></a><var>60.22</var>selected by the Minnesota Online Learning Alliance; one representative selected by <br/>
<a id="pl.60.23"></a><var>60.23</var>the Metropolitan Federation of Alternative Schools; one representative selected by the <br/>
<a id="pl.60.24"></a><var>60.24</var>Minnesota Association of Charter Schools; one representative selected by the Minnesota <br/>
<a id="pl.60.25"></a><var>60.25</var>School Board Association; one representative selected by Education Minnesota; one <br/>
<a id="pl.60.26"></a><var>60.26</var>representative selected by the Association of Metropolitan School Districts; one <br/>
<a id="pl.60.27"></a><var>60.27</var>representative selected by the Minnesota Rural Education Association; two faculty <br/>
<a id="pl.60.28"></a><var>60.28</var>members selected by the dean of the college of education at the University of Minnesota <br/>
<a id="pl.60.29"></a><var>60.29</var>with expertise in serving and assessing at-risk and off-track students; two Minnesota State <br/>
<a id="pl.60.30"></a><var>60.30</var>Colleges and Universities faculty members selected by the Minnesota State Colleges <br/>
<a id="pl.60.31"></a><var>60.31</var>and Universities chancellor with expertise in serving and assessing at-risk and off-track <br/>
<a id="pl.60.32"></a><var>60.32</var>students; one currently serving superintendent from a school district selected by the <br/>
<a id="pl.60.33"></a><var>60.33</var>Minnesota Association of School Administrators; one currently serving high school <br/>
<a id="pl.60.34"></a><var>60.34</var>principal selected by the Minnesota Association of Secondary School Principals; and <br/>
<a id="pl.60.35"></a><var>60.35</var>two public members selected by the commissioner. The group may seek input from <br/>
<a id="pl.60.36"></a><var>60.36</var>representatives of other interested stakeholders and organizations with expertise to help <br/>
<a id="pl.61.1"></a><var>61.1</var>inform the group's work. The group must meet at least quarterly. Group members do not <br/>
<a id="pl.61.2"></a><var>61.2</var>receive compensation or reimbursement of expenses for participating in this group. The <br/>
<a id="pl.61.3"></a><var>61.3</var>group expires February 16, 2012.<br/>
<a id="pl.61.4"></a><var>61.4</var>(c) The group, by February 15, 2012, must develop and submit to the commissioner <br/>
<a id="pl.61.5"></a><var>61.5</var>and the education policy and finance committees of the legislature recommendations <br/>
<a id="pl.61.6"></a><var>61.6</var>and legislation, consistent with this section and Minnesota Statutes, section 120B.35, <br/>
<a id="pl.61.7"></a><var>61.7</var>subdivision 3, paragraph (e), for:<br/>
<a id="pl.61.8"></a><var>61.8</var>(1)  measuring and reporting differentiated graduation rates for at-risk and off-track <br/>
<a id="pl.61.9"></a><var>61.9</var>students throughout the state and the success and costs that school districts, school sites, <br/>
<a id="pl.61.10"></a><var>61.10</var>charter schools, and alternative program providers experience in identifying and serving <br/>
<a id="pl.61.11"></a><var>61.11</var>at-risk or off-track student populations; and<br/>
<a id="pl.61.12"></a><var>61.12</var>(2) establishing alternative routes to a standard diploma.<br/>
<a id="pl.61.13"></a><var>61.13</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.61.14"></a><var>61.14</var>and applies to school report cards beginning July 1, 2013.<br/>
<br/>
<a id="bill.2.38.0"></a><a id="pl.61.15"></a><var>61.15</var>    Sec. 38. <b>RULEMAKING AUTHORITY.</b><br/>
<a id="pl.61.16"></a><var>61.16</var>The commissioner of education shall adopt rules consistent with chapter 14 that <br/>
<a id="pl.61.17"></a><var>61.17</var>provide English language proficiency standards for instruction of students identified <br/>
<a id="pl.61.18"></a><var>61.18</var>as limited English proficient under Minnesota Statutes, sections 124D.58 to 124D.64. <br/>
<a id="pl.61.19"></a><var>61.19</var>The English language proficiency standards must encompass the language domains of <br/>
<a id="pl.61.20"></a><var>61.20</var>listening, speaking, reading, and writing. The English language proficiency standards must <br/>
<a id="pl.61.21"></a><var>61.21</var>reflect social and academic dimensions of acquiring a second language that are accepted <br/>
<a id="pl.61.22"></a><var>61.22</var>of English language learners in prekindergarten through grade 12. The English language <br/>
<a id="pl.61.23"></a><var>61.23</var>proficiency standards must address the specific contexts for language acquisition in the <br/>
<a id="pl.61.24"></a><var>61.24</var>areas of social and instructional settings as well as academic language encountered in <br/>
<a id="pl.61.25"></a><var>61.25</var>language arts, mathematics, science, and social studies. The English language proficiency <br/>
<a id="pl.61.26"></a><var>61.26</var>standards must express the progression of language development through language <br/>
<a id="pl.61.27"></a><var>61.27</var>proficiency levels. The English language proficiency standards must be implemented <br/>
<a id="pl.61.28"></a><var>61.28</var>for all limited English proficient students beginning in the 2011-2012 school year and <br/>
<a id="pl.61.29"></a><var>61.29</var>assessed beginning in the 2012-2013 school year.<br/>
<br/>
<a id="bill.2.39.0"></a><a id="pl.61.30"></a><var>61.30</var>    Sec. 39. <b>DEPARTMENT OF EDUCATION.</b><br/>
<a id="pl.61.31"></a><var>61.31</var>    Subdivision 1. <b>Recess guidelines.</b> The department is encouraged to develop <br/>
<a id="pl.61.32"></a><var>61.32</var>voluntary school district guidelines that promote high quality recess practices and foster <br/>
<a id="pl.61.33"></a><var>61.33</var>student behaviors that lead students to increase their activity levels, improve their social <br/>
<a id="pl.61.34"></a><var>61.34</var>skills, and misbehave less.<br/>
<a id="pl.62.1"></a><var>62.1</var>    Subd. 2. <b>Common course catalogue.</b> The department is encouraged to include <br/>
<a id="pl.62.2"></a><var>62.2</var>in the Minnesota common course catalogue all district physical education classes and <br/>
<a id="pl.62.3"></a><var>62.3</var>physical education graduation requirements.<br/>
<a id="pl.62.4"></a><var>62.4</var>    Subd. 3. <b>Standards adoption.</b> Notwithstanding Minnesota Statutes, sections <br/>
<a id="pl.62.5"></a><var>62.5</var>120B.021, subdivision 2, and 120B.023, any statutory criteria required when reviewing or <br/>
<a id="pl.62.6"></a><var>62.6</var>revising standards and benchmarks, any requirements governing the content of statewide <br/>
<a id="pl.62.7"></a><var>62.7</var>standards, and any other law to the contrary, the commissioner of education shall initially <br/>
<a id="pl.62.8"></a><var>62.8</var>adopt the most recent standards developed by the National Association for Sport and <br/>
<a id="pl.62.9"></a><var>62.9</var>Physical Education for physical education in kindergarten through grade 12.<br/>
<a id="pl.62.10"></a><var>62.10</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.40.0"></a><a id="pl.62.11"></a><var>62.11</var>    Sec. 40. <b>HEALTHY KIDS AWARDS PROGRAM.</b><br/>
<a id="pl.62.12"></a><var>62.12</var>    Subdivision 1. <b>Recognition.</b> The healthy kids awards program rewards kindergarten <br/>
<a id="pl.62.13"></a><var>62.13</var>through grade 12 students for their nutritional well-being and physical activity. In addition <br/>
<a id="pl.62.14"></a><var>62.14</var>to the physical and nutritional education students receive in physical education classes, <br/>
<a id="pl.62.15"></a><var>62.15</var>the program is intended to integrate physical activity and nutritional education into <br/>
<a id="pl.62.16"></a><var>62.16</var>nonphysical education classes, recess, and extracurricular activities throughout the day. <br/>
<a id="pl.62.17"></a><var>62.17</var>Interested schools must agree to participate from October through May of each school year.<br/>
<a id="pl.62.18"></a><var>62.18</var>    Subd. 2. <b>School district participation.</b> School districts annually by September <br/>
<a id="pl.62.19"></a><var>62.19</var>15 may submit to the commissioner of education a letter of intent to participate in a <br/>
<a id="pl.62.20"></a><var>62.20</var>healthy kids awards program from October to May during the current school year. The <br/>
<a id="pl.62.21"></a><var>62.21</var>commissioner must recognize on the school performance report card under Minnesota <br/>
<a id="pl.62.22"></a><var>62.22</var>Statutes, section 120B.36, those schools and districts that affirm to the commissioner, as <br/>
<a id="pl.62.23"></a><var>62.23</var>prescribed by the commissioner, that at least 75 percent of students in the school or district <br/>
<a id="pl.62.24"></a><var>62.24</var>are physically active for at least 60 minutes each school day. The time students spend <br/>
<a id="pl.62.25"></a><var>62.25</var>participating in a physical education class counts toward the daily 60-minute requirement.<br/>
<a id="pl.62.26"></a><var>62.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.62.27"></a><var>62.27</var>and applies beginning in the 2010-2011 school year and later.<br/>
<br/>
<a id="bill.2.41.0"></a><a id="pl.62.28"></a><var>62.28</var>    Sec. 41. <b>ADVISORY TASK FORCE ON SCHOOL DESEGREGATION AND </b><br/>
<a id="pl.62.29"></a><var>62.29</var><b>INTEGRATION.</b><br/>
<a id="pl.62.30"></a><var>62.30</var>    Subdivision 1. <b>Establishment; purpose; membership.</b> (a) An advisory task force <br/>
<a id="pl.62.31"></a><var>62.31</var>on school desegregation and integration is established to develop recommendations and <br/>
<a id="pl.62.32"></a><var>62.32</var>legislation for the legislature on: (i) addressing the findings and recommendations in the <br/>
<a id="pl.62.33"></a><var>62.33</var>2005 Minnesota legislative auditor's report on school district integration revenue, (ii) <br/>
<a id="pl.63.1"></a><var>63.1</var>amending Minnesota's school desegregation rule, and (iii) specifying the purpose, use, and <br/>
<a id="pl.63.2"></a><var>63.2</var>allocation of integration revenue under Minnesota Statutes, section 124D.86. The task <br/>
<a id="pl.63.3"></a><var>63.3</var>force shall consist of education stakeholders interested in addressing school desegregation <br/>
<a id="pl.63.4"></a><var>63.4</var>and integration policies, integration revenue uses, and the academic achievement gap <br/>
<a id="pl.63.5"></a><var>63.5</var>among groups of students. The 17-member task force consists of the commissioner of <br/>
<a id="pl.63.6"></a><var>63.6</var>education or the commissioner's designee and the following:<br/>
<a id="pl.63.7"></a><var>63.7</var>(1) one member appointed by and serving at the pleasure of the Minnesota Indian <br/>
<a id="pl.63.8"></a><var>63.8</var>Affairs Council;<br/>
<a id="pl.63.9"></a><var>63.9</var>(2) one member appointed by and serving at the pleasure of the Council on <br/>
<a id="pl.63.10"></a><var>63.10</var>Asian-Pacific Minnesotans;<br/>
<a id="pl.63.11"></a><var>63.11</var>(3) one member appointed by and serving at the pleasure of the Council on Black <br/>
<a id="pl.63.12"></a><var>63.12</var>Minnesotans;<br/>
<a id="pl.63.13"></a><var>63.13</var>(4) one member appointed by and serving at the pleasure of the Chicano Latino <br/>
<a id="pl.63.14"></a><var>63.14</var>Affairs Council;<br/>
<a id="pl.63.15"></a><var>63.15</var>(5) three public members appointed by the speaker of the house who are currently <br/>
<a id="pl.63.16"></a><var>63.16</var>serving as school district superintendents, collaborative coordinators, or school board <br/>
<a id="pl.63.17"></a><var>63.17</var>members, with one public member from each of the following: an urban school district, a <br/>
<a id="pl.63.18"></a><var>63.18</var>suburban school district, and a rural school district, and where at least one of the three <br/>
<a id="pl.63.19"></a><var>63.19</var>public members is also from a metropolitan integration district;<br/>
<a id="pl.63.20"></a><var>63.20</var>(6) four current members of the house of representatives appointed by the speaker <br/>
<a id="pl.63.21"></a><var>63.21</var>of the house, with two from each political party, and where two members are from the <br/>
<a id="pl.63.22"></a><var>63.22</var>seven-county metropolitan area and two members are from rural Minnesota;<br/>
<a id="pl.63.23"></a><var>63.23</var>(7) three public members appointed by the senate Subcommittee on Committees of <br/>
<a id="pl.63.24"></a><var>63.24</var>the Committee on Rules and Administration who are currently serving as school district <br/>
<a id="pl.63.25"></a><var>63.25</var>superintendents, collaborative coordinators, or school board members, with one public <br/>
<a id="pl.63.26"></a><var>63.26</var>member from each of the following: an urban school district, a suburban school district, <br/>
<a id="pl.63.27"></a><var>63.27</var>and a rural school district, and where at least one of the three public members is also from <br/>
<a id="pl.63.28"></a><var>63.28</var>a rural integration collaborative district; and<br/>
<a id="pl.63.29"></a><var>63.29</var>(8) two current members of the senate appointed by the senate Subcommittee on <br/>
<a id="pl.63.30"></a><var>63.30</var>Committees of the Committee on Rules and Administration, with one from each political <br/>
<a id="pl.63.31"></a><var>63.31</var>party, and where one member is from the seven-county metropolitan area and the second <br/>
<a id="pl.63.32"></a><var>63.32</var>member is from rural Minnesota.<br/>
<a id="pl.63.33"></a><var>63.33</var>(b) Task force members shall be appointed by July 1, 2010. Task force members <br/>
<a id="pl.63.34"></a><var>63.34</var>shall be represented by the designated appointee of each named organization. The task <br/>
<a id="pl.63.35"></a><var>63.35</var>force shall seek input from nonmember organizations such as the Institute on Race and <br/>
<a id="pl.63.36"></a><var>63.36</var>Poverty, the Minneapolis Urban League, the Minnesota Minority Education Partnership, <br/>
<a id="pl.64.1"></a><var>64.1</var>the National Association for the Advancement of Colored People, and the Office of the <br/>
<a id="pl.64.2"></a><var>64.2</var>State Demographer, among other organizations whose expertise can help inform the <br/>
<a id="pl.64.3"></a><var>64.3</var>work of the task force.<br/>
<a id="pl.64.4"></a><var>64.4</var>(c) The commissioner of education shall convene the first meeting of the task force <br/>
<a id="pl.64.5"></a><var>64.5</var>by September 15, 2010. Task force members shall elect one member to serve as the <br/>
<a id="pl.64.6"></a><var>64.6</var>task force chair. The task force may invite representatives of other interested education <br/>
<a id="pl.64.7"></a><var>64.7</var>stakeholders and organizations to participate in task force meetings. The task force must <br/>
<a id="pl.64.8"></a><var>64.8</var>meet at least monthly.<br/>
<a id="pl.64.9"></a><var>64.9</var>(d) Upon request, the commissioner of education shall provide assistance to the <br/>
<a id="pl.64.10"></a><var>64.10</var>task force.<br/>
<a id="pl.64.11"></a><var>64.11</var>(e) Task force members do not receive compensation or reimbursement of expenses <br/>
<a id="pl.64.12"></a><var>64.12</var>from the task force for service on the task force.<br/>
<a id="pl.64.13"></a><var>64.13</var>    Subd. 2. <b>Duties; report.</b> (a) The task force shall develop recommendations and <br/>
<a id="pl.64.14"></a><var>64.14</var>legislation for addressing the findings and recommendations in the 2005 Minnesota <br/>
<a id="pl.64.15"></a><var>64.15</var>legislative auditor's report on school district integration revenue, amending Minnesota's <br/>
<a id="pl.64.16"></a><var>64.16</var>school desegregation rule, and Minnesota Statutes, section 124D.86, governing the use <br/>
<a id="pl.64.17"></a><var>64.17</var>and allocation of integration revenue. These recommendations and legislation may <br/>
<a id="pl.64.18"></a><var>64.18</var>address but are not limited to:<br/>
<a id="pl.64.19"></a><var>64.19</var>(1) access to integrated and equitable learning environments that enhance <br/>
<a id="pl.64.20"></a><var>64.20</var>achievement and opportunities for all students;<br/>
<a id="pl.64.21"></a><var>64.21</var>(2) changing demographics among Minnesota students reflected in the increasing <br/>
<a id="pl.64.22"></a><var>64.22</var>numbers of students of color, new immigrants, and English language learners;<br/>
<a id="pl.64.23"></a><var>64.23</var>(3) cultural proficiency training for teachers;<br/>
<a id="pl.64.24"></a><var>64.24</var>(4) the impact of school choice laws on state and local school desegregation and <br/>
<a id="pl.64.25"></a><var>64.25</var>integration efforts; and<br/>
<a id="pl.64.26"></a><var>64.26</var>(5) financial and other resources that enable schools and school districts to provide <br/>
<a id="pl.64.27"></a><var>64.27</var>staff development training, magnet schools, and other interdistrict collaborative initiatives <br/>
<a id="pl.64.28"></a><var>64.28</var>that enhance student achievement.<br/>
<a id="pl.64.29"></a><var>64.29</var>(b) By January 15, 2011, the task force shall submit to the legislative committees <br/>
<a id="pl.64.30"></a><var>64.30</var>and divisions with jurisdiction over early childhood through grade 12 education policy <br/>
<a id="pl.64.31"></a><var>64.31</var>and finance a report and accompanying legislation that reflect the substance of the <br/>
<a id="pl.64.32"></a><var>64.32</var>recommendation of the task force.<br/>
<a id="pl.64.33"></a><var>64.33</var>    Subd. 3. <b>Expiration.</b> The task force expires on January 16, 2011.<br/>
<a id="pl.64.34"></a><var>64.34</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.42.0"></a><a id="pl.64.35"></a><var>64.35</var>    Sec. 42. <b>ASSESSMENT ADVISORY COMMITTEE; RECOMMENDATIONS.</b><br/>
<a id="pl.65.1"></a><var>65.1</var>(a) The Assessment Advisory Committee must develop recommendations for <br/>
<a id="pl.65.2"></a><var>65.2</var>alternative methods by which students satisfy the high school algebra end-of-course <br/>
<a id="pl.65.3"></a><var>65.3</var>requirements under Minnesota Statutes, section 120B.30, subdivision 1b, paragraph (b), <br/>
<a id="pl.65.4"></a><var>65.4</var>clause (9), and demonstrate their college and career readiness. The Assessment Advisory <br/>
<a id="pl.65.5"></a><var>65.5</var>Committee, among other alternative methods and if consistent with federal educational <br/>
<a id="pl.65.6"></a><var>65.6</var>accountability law, must consider allowing students to:<br/>
<a id="pl.65.7"></a><var>65.7</var>(1) achieve the mathematics college readiness score on the American College Test <br/>
<a id="pl.65.8"></a><var>65.8</var>(ACT) or Scholastic Aptitude Test (SAT) exam;<br/>
<a id="pl.65.9"></a><var>65.9</var>(2) achieve a college-credit score on a College-Level Examination Program (CLEP) <br/>
<a id="pl.65.10"></a><var>65.10</var>for algebra;<br/>
<a id="pl.65.11"></a><var>65.11</var>(3) achieve a score on an equivalent Advanced Placement or International <br/>
<a id="pl.65.12"></a><var>65.12</var>Baccalaureate exam that would earn credit at a four-year college or university; or<br/>
<a id="pl.65.13"></a><var>65.13</var>(4) pass a credit-bearing course in college algebra or a more advanced course in that <br/>
<a id="pl.65.14"></a><var>65.14</var>subject with a grade of C or better under Minnesota Statutes, section 124D.09, including <br/>
<a id="pl.65.15"></a><var>65.15</var>Minnesota Statutes, section 124D.09, subdivision 10.<br/>
<a id="pl.65.16"></a><var>65.16</var>(b) The Assessment Advisory Committee, in the context of the high school algebra <br/>
<a id="pl.65.17"></a><var>65.17</var>end-of-course assessment under Minnesota Statutes, section 120B.30, subdivision 1b, may <br/>
<a id="pl.65.18"></a><var>65.18</var>develop recommendations on integrating universal design principles to improve access <br/>
<a id="pl.65.19"></a><var>65.19</var>to learning and assessments for all students, more accurately understand what students <br/>
<a id="pl.65.20"></a><var>65.20</var>know and can do, provide Minnesota with more cost-effective assessments, and provide <br/>
<a id="pl.65.21"></a><var>65.21</var>educators with more valid inferences about students' achievement levels.<br/>
<a id="pl.65.22"></a><var>65.22</var>(c) The Assessment Advisory Committee, for purposes of fully implementing the <br/>
<a id="pl.65.23"></a><var>65.23</var>high school algebra end-of-course assessment under Minnesota Statutes, section 120B.30, <br/>
<a id="pl.65.24"></a><var>65.24</var>subdivision 1b, also must develop recommendations for:<br/>
<a id="pl.65.25"></a><var>65.25</var>(1) calculating the alignment index, including how questions about validity and <br/>
<a id="pl.65.26"></a><var>65.26</var>reliability are resolved; and<br/>
<a id="pl.65.27"></a><var>65.27</var>(2) defining "misaligned" and "highly misaligned" and when and under what specific <br/>
<a id="pl.65.28"></a><var>65.28</var>circumstances misalignments occur.<br/>
<a id="pl.65.29"></a><var>65.29</var>(d) By February 15, 2011, the Assessment Advisory Committee must submit its <br/>
<a id="pl.65.30"></a><var>65.30</var>recommendations under this section to the education commissioner and the education <br/>
<a id="pl.65.31"></a><var>65.31</var>policy and finance committees of the legislature.<br/>
<a id="pl.65.32"></a><var>65.32</var>(e) The commissioner must not implement any element of any recommendation <br/>
<a id="pl.65.33"></a><var>65.33</var>under paragraphs (a) to (d) related to the high school algebra end-of-course assessment <br/>
<a id="pl.65.34"></a><var>65.34</var>under Minnesota Statutes, section 120B.30, subdivision 1b, without first receiving specific <br/>
<a id="pl.65.35"></a><var>65.35</var>legislative authority to do so.<br/>
<a id="pl.65.36"></a><var>65.36</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.43.0"></a><a id="pl.66.1"></a><var>66.1</var>    Sec. 43. <b>REPEALER.</b><br/>
<a id="pl.66.2"></a><var>66.2</var>Minnesota Statutes 2008, section 122A.24, is repealed.<br/>
<a id="pl.66.3"></a><var>66.3</var><b>EFFECTIVE DATE.</b>This section is effective August 1, 2010.<br/>
<br/>
<a id="bill.3.0.0"></a>

<a id="bill.3.1.0"></a><a id="pl.66.6"></a><var>66.6</var>    Section 1. Minnesota Statutes 2009 Supplement, section 125A.02, subdivision 1, <br/>
<a id="pl.66.7"></a><var>66.7</var>is amended to read:<br/>
<a id="pl.66.8"></a><var>66.8</var>    Subdivision 1. <b>Child with a disability.</b> "Child with a disability" means a child <br/>
<a id="pl.66.9"></a><var>66.9</var>identified under federal and state special education law as having a hearing impairment, <br/>
<a id="pl.66.10"></a><var>66.10</var>blindness, visual disability, deaf or hard-of-hearing, blind or visually impaired, deafblind, <br/>
<a id="pl.66.11"></a><var>66.11</var>or having a speech or language impairment, a physical disability impairment, other health <br/>
<a id="pl.66.12"></a><var>66.12</var>impairment disability, mental developmental cognitive disability, emotional/behavioral an <br/>
<a id="pl.66.13"></a><var>66.13</var>emotional or behavioral disorder, specific learning disability, autism spectrum disorder, <br/>
<a id="pl.66.14"></a><var>66.14</var>traumatic brain injury, or severe multiple disabilities impairments, or deafblind disability <br/>
<a id="pl.66.15"></a><var>66.15</var>and who needs special education and related services, as determined by the rules of the <br/>
<a id="pl.66.16"></a><var>66.16</var>commissioner, is a child with a disability. A licensed physician, an advanced practice <br/>
<a id="pl.66.17"></a><var>66.17</var>nurse, or a licensed psychologist is qualified to make a diagnosis and determination <br/>
<a id="pl.66.18"></a><var>66.18</var>of attention deficit disorder or attention deficit hyperactivity disorder for purposes of <br/>
<a id="pl.66.19"></a><var>66.19</var>identifying a child with a disability.<br/>
<a id="pl.66.20"></a><var>66.20</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.3.2.0"></a><a id="pl.66.21"></a><var>66.21</var>    Sec. 2. Minnesota Statutes 2008, section 125A.03, is amended to read:<br/>
<a id="pl.66.22"></a><var>66.22</var><b>125A.03 SPECIAL INSTRUCTION FOR CHILDREN WITH A DISABILITY.</b><br/>
<a id="pl.66.23"></a><var>66.23</var>(a) As defined Except as provided in paragraph (b), every district must provide or <br/>
<a id="pl.66.24"></a><var>66.24</var>make available special instruction education and related services, either within the district <br/>
<a id="pl.66.25"></a><var>66.25</var>or in another district, for all children every child with a disability, including providing <br/>
<a id="pl.66.26"></a><var>66.26</var>required services under Code of Federal Regulations, title 34, section 
<statute_ref>300.121, paragraph <br/>
<a id="pl.66.27"></a><var>66.27</var>(d)
</statute_ref>, to those children suspended or expelled from school for more than ten school days <br/>
<a id="pl.66.28"></a><var>66.28</var>in that school year, who are residents is a resident of the district and who are disabled as <br/>
<a id="pl.66.29"></a><var>66.29</var>set forth in section 
<statute_ref>125A.02</statute_ref> from birth until that child becomes 21 years old or receives <br/>
<a id="pl.66.30"></a><var>66.30</var>a regular high school diploma, whichever comes first. For purposes of state and federal <br/>
<a id="pl.66.31"></a><var>66.31</var>special education laws, The phrase "special instruction education and related services" <br/>
<a id="pl.66.32"></a><var>66.32</var>in the state Education Code means a free and appropriate public education provided to an <br/>
<a id="pl.67.1"></a><var>67.1</var>eligible child with disabilities and includes special education and related services defined <br/>
<a id="pl.67.2"></a><var>67.2</var>in the Individuals with Disabilities Education Act, subpart A, section 
<statute_ref>300.24</statute_ref> a disability.  <br/>
<a id="pl.67.3"></a><var>67.3</var>(b) Notwithstanding any age limits in laws to the contrary, special instruction and <br/>
<a id="pl.67.4"></a><var>67.4</var>services must be provided from birth until July 1 after the child with a disability becomes <br/>
<a id="pl.67.5"></a><var>67.5</var>21 years old but shall not extend beyond secondary school or its equivalent, except as <br/>
<a id="pl.67.6"></a><var>67.6</var>provided in section 
<statute_ref>124D.68, subdivision 2</statute_ref>. If a child with a disability becomes 21 years <br/>
<a id="pl.67.7"></a><var>67.7</var>old during the school year, the district shall continue to make available special education <br/>
<a id="pl.67.8"></a><var>67.8</var>and related services until the last day of the school year, or until the day the child receives <br/>
<a id="pl.67.9"></a><var>67.9</var>a regular high school diploma, whichever comes first.<br/>
<a id="pl.67.10"></a><var>67.10</var>(c) For purposes of this section and section 121A.41, subdivision 7, paragraph (a), <br/>
<a id="pl.67.11"></a><var>67.11</var>clause (2), "school year" means the days of student instruction designated by the school <br/>
<a id="pl.67.12"></a><var>67.12</var>board as the regular school year in the annual calendar adopted under section 120A.41.<br/>
<a id="pl.67.13"></a><var>67.13</var>(d) A district shall identify, locate, and evaluate children with a disability in the <br/>
<a id="pl.67.14"></a><var>67.14</var>district who are in need of special education and related services. Local health, education, <br/>
<a id="pl.67.15"></a><var>67.15</var>and social service agencies must refer children under age five who are known to need or <br/>
<a id="pl.67.16"></a><var>67.16</var>suspected of needing special instruction education and related services to the school <br/>
<a id="pl.67.17"></a><var>67.17</var>district. Districts with less than the minimum number of eligible children with a disability <br/>
<a id="pl.67.18"></a><var>67.18</var>as determined by the commissioner must cooperate with other districts to maintain a full <br/>
<a id="pl.67.19"></a><var>67.19</var>range of programs for education and services for children with a disability. This section <br/>
<a id="pl.67.20"></a><var>67.20</var>does not alter the compulsory attendance requirements of section 
<statute_ref>120A.22</statute_ref>. <br/>
<a id="pl.67.21"></a><var>67.21</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.3.3.0"></a><a id="pl.67.22"></a><var>67.22</var>    Sec. 3. <b>[125A.031] RESOLVING DISPUTES AMONG DISTRICTS.</b><br/>
<a id="pl.67.23"></a><var>67.23</var>If districts dispute which district is responsible for providing or making available <br/>
<a id="pl.67.24"></a><var>67.24</var>special education and related services to a child with a disability who is not currently <br/>
<a id="pl.67.25"></a><var>67.25</var>enrolled in a district because the child's district of residence is disputed, the district in <br/>
<a id="pl.67.26"></a><var>67.26</var>which that child first tries to enroll shall provide or make available special education <br/>
<a id="pl.67.27"></a><var>67.27</var>and related services to the child until the commissioner is notified and expeditiously <br/>
<a id="pl.67.28"></a><var>67.28</var>resolves the dispute. For purposes of this section, "district" means a school district or a <br/>
<a id="pl.67.29"></a><var>67.29</var>charter school.<br/>
<br/>
<a id="bill.3.4.0"></a><a id="pl.67.30"></a><var>67.30</var>    Sec. 4. Minnesota Statutes 2009 Supplement, section 125A.091, subdivision 7, is <br/>
<a id="pl.67.31"></a><var>67.31</var>amended to read:<br/>
<a id="pl.67.32"></a><var>67.32</var>    Subd. 7. <b>Conciliation conference.</b> A parent must have an opportunity to meet with <br/>
<a id="pl.67.33"></a><var>67.33</var>appropriate district staff in at least one conciliation conference if the parent objects to <br/>
<a id="pl.67.34"></a><var>67.34</var>any proposal of which the parent receives notice under subdivision 3a. A district must <br/>
<a id="pl.68.1"></a><var>68.1</var>offer to hold a conciliation conference within two business days after receiving a parent's <br/>
<a id="pl.68.2"></a><var>68.2</var>objection to a proposal or refusal in the prior written notice. The district must hold the <br/>
<a id="pl.68.3"></a><var>68.3</var>conciliation conference within ten calendar days from the date the district receives a the <br/>
<a id="pl.68.4"></a><var>68.4</var>parent's objection to a proposal or refusal in the prior written notice. Except as provided <br/>
<a id="pl.68.5"></a><var>68.5</var>in this section, all discussions held during a conciliation conference are confidential <br/>
<a id="pl.68.6"></a><var>68.6</var>and are not admissible in a due process hearing. Within five school days after the final <br/>
<a id="pl.68.7"></a><var>68.7</var>conciliation conference, the district must prepare and provide to the parent a conciliation <br/>
<a id="pl.68.8"></a><var>68.8</var>conference memorandum that describes the district's final proposed offer of service. This <br/>
<a id="pl.68.9"></a><var>68.9</var>memorandum is admissible in evidence in any subsequent proceeding.<br/>
<a id="pl.68.10"></a><var>68.10</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.68.11"></a><var>68.11</var>and applies to all conciliation conferences required after that date.<br/>
<br/>
<a id="bill.3.5.0"></a><a id="pl.68.12"></a><var>68.12</var>    Sec. 5. Minnesota Statutes 2008, section 125A.21, subdivision 2, is amended to read:<br/>
<a id="pl.68.13"></a><var>68.13</var>    Subd. 2. <b>Third party reimbursement.</b> (a) Beginning July 1, 2000, districts shall <br/>
<a id="pl.68.14"></a><var>68.14</var>seek reimbursement from insurers and similar third parties for the cost of services <br/>
<a id="pl.68.15"></a><var>68.15</var>provided by the district whenever the services provided by the district are otherwise <br/>
<a id="pl.68.16"></a><var>68.16</var>covered by the child's health coverage. Districts shall request, but may not require, the <br/>
<a id="pl.68.17"></a><var>68.17</var>child's family to provide information about the child's health coverage when a child with a <br/>
<a id="pl.68.18"></a><var>68.18</var>disability begins to receive services from the district of a type that may be reimbursable, <br/>
<a id="pl.68.19"></a><var>68.19</var>and shall request, but may not require, updated information after that as needed.<br/>
<a id="pl.68.20"></a><var>68.20</var>(b) For children enrolled in medical assistance under chapter 256B or MinnesotaCare <br/>
<a id="pl.68.21"></a><var>68.21</var>under chapter 256L who have no other health coverage, a district shall provide an initial <br/>
<a id="pl.68.22"></a><var>68.22</var>written notice to the enrolled child's parent or legal representative of its intent to seek <br/>
<a id="pl.68.23"></a><var>68.23</var>reimbursement from medical assistance or MinnesotaCare for the individual education <br/>
<a id="pl.68.24"></a><var>68.24</var>plan health-related services provided by the district. The notice shall include:<br/>
<a id="pl.68.25"></a><var>68.25</var>(1) the right of the parent or legal representative to request a copy of all records <br/>
<a id="pl.68.26"></a><var>68.26</var>concerning individualized education program health-related services disclosed by the <br/>
<a id="pl.68.27"></a><var>68.27</var>district to any third party; <br/>
<a id="pl.68.28"></a><var>68.28</var>(2) the right of the parent or legal representative to withdraw consent for disclosing a <br/>
<a id="pl.68.29"></a><var>68.29</var>child's records at any time without consequence, including consent that was initially <br/>
<a id="pl.68.30"></a><var>68.30</var>given as part of the application process for MinnesotaCare or medical assistance under <br/>
<a id="pl.68.31"></a><var>68.31</var>section 256B.08, subdivision 1; and<br/>
<a id="pl.68.32"></a><var>68.32</var>(3) a decision to revoke consent for schools to share information from education <br/>
<a id="pl.68.33"></a><var>68.33</var>records does not impact a parent's eligibility for MinnesotaCare or medical assistance.<br/>
<a id="pl.68.34"></a><var>68.34</var>(c) The district shall give the parent or legal representative annual written notice of:<br/>
<a id="pl.69.1"></a><var>69.1</var>(1) the district's intent to seek reimbursement from medical assistance or <br/>
<a id="pl.69.2"></a><var>69.2</var>MinnesotaCare for individual education plan health-related services provided by the <br/>
<a id="pl.69.3"></a><var>69.3</var>district;<br/>
<a id="pl.69.4"></a><var>69.4</var>(2) the right of the parent or legal representative to request a copy of all records <br/>
<a id="pl.69.5"></a><var>69.5</var>concerning individual education plan health-related services disclosed by the district to <br/>
<a id="pl.69.6"></a><var>69.6</var>any third party; and<br/>
<a id="pl.69.7"></a><var>69.7</var>(3) the right of the parent or legal representative to withdraw consent for disclosure <br/>
<a id="pl.69.8"></a><var>69.8</var>of a child's records at any time without consequence, including consent that was initially <br/>
<a id="pl.69.9"></a><var>69.9</var>given as part of the application process for MinnesotaCare or medical assistance under <br/>
<a id="pl.69.10"></a><var>69.10</var>section 256B.08, subdivision 1.<br/>
<a id="pl.69.11"></a><var>69.11</var>The written notice shall be provided as part of the written notice required by Code of <br/>
<a id="pl.69.12"></a><var>69.12</var>Federal Regulations, title 34, section 
         <statute_ref>300.504</statute_ref>.  <br/>
<a id="pl.69.13"></a><var>69.13</var>(d) In order to access the private health care coverage of a child who is covered by <br/>
<a id="pl.69.14"></a><var>69.14</var>private health care coverage in whole or in part, a district must:<br/>
<a id="pl.69.15"></a><var>69.15</var>(1) obtain annual written informed consent from the parent or legal representative, in <br/>
<a id="pl.69.16"></a><var>69.16</var>compliance with subdivision 5; and<br/>
<a id="pl.69.17"></a><var>69.17</var>(2) inform the parent or legal representative that a refusal to permit the district <br/>
<a id="pl.69.18"></a><var>69.18</var>or state Medicaid agency to access their private health care coverage does not relieve <br/>
<a id="pl.69.19"></a><var>69.19</var>the district of its responsibility to provide all services necessary to provide free and <br/>
<a id="pl.69.20"></a><var>69.20</var>appropriate public education at no cost to the parent or legal representative.<br/>
<a id="pl.69.21"></a><var>69.21</var>(e) If the commissioner of human services obtains federal approval to exempt <br/>
<a id="pl.69.22"></a><var>69.22</var>covered individual education plan health-related services from the requirement that private <br/>
<a id="pl.69.23"></a><var>69.23</var>health care coverage refuse payment before medical assistance may be billed, paragraphs <br/>
<a id="pl.69.24"></a><var>69.24</var>(b), (c), and (d) shall also apply to students with a combination of private health care <br/>
<a id="pl.69.25"></a><var>69.25</var>coverage and health care coverage through medical assistance or MinnesotaCare.<br/>
<a id="pl.69.26"></a><var>69.26</var>(f) In the event that Congress or any federal agency or the Minnesota legislature <br/>
<a id="pl.69.27"></a><var>69.27</var>or any state agency establishes lifetime limits, limits for any health care services, <br/>
<a id="pl.69.28"></a><var>69.28</var>cost-sharing provisions, or otherwise provides that individual education plan health-related <br/>
<a id="pl.69.29"></a><var>69.29</var>services impact benefits for persons enrolled in medical assistance or MinnesotaCare, the <br/>
<a id="pl.69.30"></a><var>69.30</var>amendments to this subdivision adopted in 2002 are repealed on the effective date of any <br/>
<a id="pl.69.31"></a><var>69.31</var>federal or state law or regulation that imposes the limits. In that event, districts must <br/>
<a id="pl.69.32"></a><var>69.32</var>obtain informed consent consistent with this subdivision as it existed prior to the 2002 <br/>
<a id="pl.69.33"></a><var>69.33</var>amendments and subdivision 5, before seeking reimbursement for children enrolled in <br/>
<a id="pl.69.34"></a><var>69.34</var>medical assistance under chapter 256B or MinnesotaCare under chapter 256L who have <br/>
<a id="pl.69.35"></a><var>69.35</var>no other health care coverage.<br/>
<a id="pl.70.1"></a><var>70.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.6.0"></a><a id="pl.70.2"></a><var>70.2</var>    Sec. 6. Minnesota Statutes 2008, section 125A.21, subdivision 3, is amended to read:<br/>
<a id="pl.70.3"></a><var>70.3</var>    Subd. 3. <b>Use of reimbursements.</b> Of the reimbursements received, districts may:<br/>
<a id="pl.70.4"></a><var>70.4</var>(1) retain an amount sufficient to compensate the district for its administrative costs <br/>
<a id="pl.70.5"></a><var>70.5</var>of obtaining reimbursements;<br/>
<a id="pl.70.6"></a><var>70.6</var>(2) regularly obtain from education- and health-related entities training and other <br/>
<a id="pl.70.7"></a><var>70.7</var>appropriate technical assistance designed to improve the district's ability to determine <br/>
<a id="pl.70.8"></a><var>70.8</var>which services are reimbursable and to seek timely reimbursement in a cost-effective <br/>
<a id="pl.70.9"></a><var>70.9</var>manner access third-party payments for individualized education program health-related <br/>
<a id="pl.70.10"></a><var>70.10</var>services; or<br/>
<a id="pl.70.11"></a><var>70.11</var>(3) reallocate reimbursements for the benefit of students with special needs <br/>
<a id="pl.70.12"></a><var>70.12</var>individualized education programs or individual family service plans in the district.<br/>
<br/>
<a id="bill.3.7.0"></a><a id="pl.70.13"></a><var>70.13</var>    Sec. 7. Minnesota Statutes 2008, section 125A.21, subdivision 5, is amended to read:<br/>
<a id="pl.70.14"></a><var>70.14</var>    Subd. 5. <b>Informed consent.</b> When obtaining informed consent, consistent with <br/>
<a id="pl.70.15"></a><var>70.15</var>sections 
         <statute_ref>13.05, subdivision 4</statute_ref>, paragraph (d); and,
<statute_ref>256B.77, subdivision 2</statute_ref>, paragraph <br/>
<a id="pl.70.16"></a><var>70.16</var>(p), and Code of Federal Regulations, title 34, parts 99 and 300, to bill health plans for <br/>
<a id="pl.70.17"></a><var>70.17</var>covered services, the school district must notify the legal representative (1) that the cost of <br/>
<a id="pl.70.18"></a><var>70.18</var>the person's private health insurance premium may increase due to providing the covered <br/>
<a id="pl.70.19"></a><var>70.19</var>service in the school setting, (2) that the school district may pay certain enrollee health <br/>
<a id="pl.70.20"></a><var>70.20</var>plan costs, including but not limited to, co-payments, coinsurance, deductibles, premium <br/>
<a id="pl.70.21"></a><var>70.21</var>increases or other enrollee cost-sharing amounts for health and related services required <br/>
<a id="pl.70.22"></a><var>70.22</var>by an individual service plan, or individual family service plan, and (3) that the school's <br/>
<a id="pl.70.23"></a><var>70.23</var>billing for each type of covered service may affect service limits and prior authorization <br/>
<a id="pl.70.24"></a><var>70.24</var>thresholds. The informed consent may be revoked in writing at any time by the person <br/>
<a id="pl.70.25"></a><var>70.25</var>authorizing the billing of the health plan.  <br/>
<br/>
<a id="bill.3.8.0"></a><a id="pl.70.26"></a><var>70.26</var>    Sec. 8. Minnesota Statutes 2008, section 125A.21, subdivision 7, is amended to read:<br/>
<a id="pl.70.27"></a><var>70.27</var>    Subd. 7. <b>District disclosure of information.</b> A school district may disclose <br/>
<a id="pl.70.28"></a><var>70.28</var>information contained in a student's individual education plan, consistent with section <br/>
<statute_ref><a id="pl.70.29"></a><var>70.29</var>13.32, subdivision 3
         </statute_ref>, paragraph (a), and Code of Federal Regulations, title 34, part 99; <br/>
<a id="pl.70.30"></a><var>70.30</var>including records of the student's diagnosis and treatment, to a health plan company only <br/>
<a id="pl.70.31"></a><var>70.31</var>with the signed and dated consent of the student's parent, or other legally authorized <br/>
<a id="pl.70.32"></a><var>70.32</var>individual. The school district shall disclose only that information necessary for the health <br/>
<a id="pl.70.33"></a><var>70.33</var>plan company to decide matters of coverage and payment. A health plan company may <br/>
<a id="pl.71.1"></a><var>71.1</var>use the information only for making decisions regarding coverage and payment, and for <br/>
<a id="pl.71.2"></a><var>71.2</var>any other use permitted by law.  <br/>
<br/>
<a id="bill.3.9.0"></a><a id="pl.71.3"></a><var>71.3</var>    Sec. 9. Minnesota Statutes 2008, section 125A.515, is amended by adding a <br/>
<a id="pl.71.4"></a><var>71.4</var>subdivision to read:<br/>
<a id="pl.71.5"></a><var>71.5</var>    Subd. 3a. <b>Students without a disability from other states.</b>  A school district need <br/>
<a id="pl.71.6"></a><var>71.6</var>not provide education services under this section to an out-of-state student without an <br/>
<a id="pl.71.7"></a><var>71.7</var>individualized education program who lacks a tuition agreement or other agreement by the <br/>
<a id="pl.71.8"></a><var>71.8</var>placing authority to pay for the services.<br/>
<a id="pl.71.9"></a><var>71.9</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010, for fiscal years 2011 <br/>
<a id="pl.71.10"></a><var>71.10</var>and later.<br/>
<br/>
<a id="bill.3.10.0"></a><a id="pl.71.11"></a><var>71.11</var>    Sec. 10. Minnesota Statutes 2009 Supplement, section 125A.63, subdivision 2, is <br/>
<a id="pl.71.12"></a><var>71.12</var>amended to read:<br/>
<a id="pl.71.13"></a><var>71.13</var>    Subd. 2. <b>Programs.</b> The Department of Education, through the resource centers <br/>
<a id="pl.71.14"></a><var>71.14</var>must offer summer institutes or other training programs and other educational strategies <br/>
<a id="pl.71.15"></a><var>71.15</var>throughout the state for deaf or hard-of-hearing, blind or visually impaired, and multiply <br/>
<a id="pl.71.16"></a><var>71.16</var>disabled pupils. The resource centers must also offer workshops for teachers, and <br/>
<a id="pl.71.17"></a><var>71.17</var>leadership development for teachers.<br/>
<a id="pl.71.18"></a><var>71.18</var>A program offered through the resource centers must promote and develop education <br/>
<a id="pl.71.19"></a><var>71.19</var>programs offered by school districts or other organizations. The program must assist <br/>
<a id="pl.71.20"></a><var>71.20</var>school districts or other organizations to develop innovative programs.<br/>
<br/>
<a id="bill.3.11.0"></a><a id="pl.71.21"></a><var>71.21</var>    Sec. 11. Minnesota Statutes 2009 Supplement, section 125A.63, subdivision 4, is <br/>
<a id="pl.71.22"></a><var>71.22</var>amended to read:<br/>
<a id="pl.71.23"></a><var>71.23</var>    Subd. 4. <b>Advisory committees.</b> (a) The commissioner shall establish an <br/>
<a id="pl.71.24"></a><var>71.24</var>advisory committee for each resource center. The advisory committees shall develop <br/>
<a id="pl.71.25"></a><var>71.25</var>recommendations regarding the resource centers and submit an annual report to the <br/>
<a id="pl.71.26"></a><var>71.26</var>commissioner on the form and in the manner prescribed by the commissioner.<br/>
<a id="pl.71.27"></a><var>71.27</var>(b) The advisory committee for the Resource Center for the Deaf and Hard of <br/>
<a id="pl.71.28"></a><var>71.28</var>Hearing shall meet periodically at least four times per year and submit an annual report <br/>
<a id="pl.71.29"></a><var>71.29</var>to the commissioner, the education policy and finance committees of the legislature, <br/>
<a id="pl.71.30"></a><var>71.30</var>and the Commission of Deaf, DeafBlind, and Hard of Hearing Minnesotans. The report <br/>
<a id="pl.71.31"></a><var>71.31</var>must, at least:<br/>
<a id="pl.71.32"></a><var>71.32</var>(1) identify and report the aggregate, data-based education outcomes for children <br/>
<a id="pl.71.33"></a><var>71.33</var>with the primary disability classification of deaf and hard of hearing, consistent with <br/>
<a id="pl.72.1"></a><var>72.1</var>the commissioner's child count reporting practices, the commissioner's state and local <br/>
<a id="pl.72.2"></a><var>72.2</var>outcome data reporting system by district and region, and the school performance report <br/>
<a id="pl.72.3"></a><var>72.3</var>cards under section 
         <statute_ref>120B.36, subdivision 1</statute_ref>, and relevant IDEA Parts B and C mandated <br/>
<a id="pl.72.4"></a><var>72.4</var>reporting data; and<br/>
<a id="pl.72.5"></a><var>72.5</var>(2) describe the implementation of a data-based plan for improving the education <br/>
<a id="pl.72.6"></a><var>72.6</var>outcomes of deaf and hard of hearing children that is premised on evidence-based best <br/>
<a id="pl.72.7"></a><var>72.7</var>practices, and provide a cost estimate for ongoing implementation of the plan.; and <br/>
<a id="pl.72.8"></a><var>72.8</var>(3) include the recommendations for improving the developmental outcomes of <br/>
<a id="pl.72.9"></a><var>72.9</var>children birth to age 3 and the data underlying those recommendations that the coordinator <br/>
<a id="pl.72.10"></a><var>72.10</var>identifies under subdivision 5.<br/>
<br/>
<a id="bill.3.12.0"></a><a id="pl.72.11"></a><var>72.11</var>    Sec. 12. Minnesota Statutes 2009 Supplement, section 125A.63, subdivision 5, is <br/>
<a id="pl.72.12"></a><var>72.12</var>amended to read:<br/>
<a id="pl.72.13"></a><var>72.13</var>    Subd. 5. <b>Statewide hearing loss early education intervention coordinator.</b> (a) <br/>
<a id="pl.72.14"></a><var>72.14</var>The coordinator shall:<br/>
<a id="pl.72.15"></a><var>72.15</var>    (1) collaborate with the early hearing detection and intervention coordinator for the <br/>
<a id="pl.72.16"></a><var>72.16</var>Department of Health, the director of the Department of Education Resource Center for <br/>
<a id="pl.72.17"></a><var>72.17</var>Deaf and Hard-of-Hearing, and the Department of Health Early Hearing Detection and <br/>
<a id="pl.72.18"></a><var>72.18</var>Intervention Advisory Council;<br/>
<a id="pl.72.19"></a><var>72.19</var>    (2) coordinate and support Department of Education early hearing detection and <br/>
<a id="pl.72.20"></a><var>72.20</var>intervention teams;<br/>
<a id="pl.72.21"></a><var>72.21</var>    (3) leverage resources by serving as a liaison between interagency early intervention <br/>
<a id="pl.72.22"></a><var>72.22</var>committees; part C coordinators from the Departments of Education, Health, and <br/>
<a id="pl.72.23"></a><var>72.23</var>Human Services; Department of Education regional low-incidence facilitators; service <br/>
<a id="pl.72.24"></a><var>72.24</var>coordinators from school districts; Minnesota children with special health needs in the <br/>
<a id="pl.72.25"></a><var>72.25</var>Department of Health; public health nurses; child find; Department of Human Services <br/>
<a id="pl.72.26"></a><var>72.26</var>Deaf and Hard-of-Hearing Services Division; and others as appropriate;<br/>
<a id="pl.72.27"></a><var>72.27</var>    (4) identify, support, and promote culturally appropriate and evidence-based early <br/>
<a id="pl.72.28"></a><var>72.28</var>intervention practices for infants with hearing loss, and provide training, outreach, and use <br/>
<a id="pl.72.29"></a><var>72.29</var>of technology to increase consistency in statewide service provision;<br/>
<a id="pl.72.30"></a><var>72.30</var>    (5) identify culturally appropriate specialized reliable and valid instruments to assess <br/>
<a id="pl.72.31"></a><var>72.31</var>and track the progress of children with hearing loss and promote their use;<br/>
<a id="pl.72.32"></a><var>72.32</var>    (6) ensure that early childhood providers, parents, and members of the individual <br/>
<a id="pl.72.33"></a><var>72.33</var>family service and intervention plan are provided with child progress data resulting from <br/>
<a id="pl.72.34"></a><var>72.34</var>specialized assessments;<br/>
<a id="pl.73.1"></a><var>73.1</var>    (7) educate early childhood providers and teachers of the deaf and hard-of-hearing <br/>
<a id="pl.73.2"></a><var>73.2</var>to use developmental data from specialized assessments to plan and adjust individual <br/>
<a id="pl.73.3"></a><var>73.3</var>family service plans; and<br/>
<a id="pl.73.4"></a><var>73.4</var>    (8) make recommendations that would improve educational outcomes to the early <br/>
<a id="pl.73.5"></a><var>73.5</var>hearing detection and intervention committee, the commissioners of education and health, <br/>
<a id="pl.73.6"></a><var>73.6</var>the Commission of Deaf, DeafBlind and Hard-of-Hearing Minnesotans, and the advisory <br/>
<a id="pl.73.7"></a><var>73.7</var>council of the Minnesota Department of Education Resource Center for the Deaf and <br/>
<a id="pl.73.8"></a><var>73.8</var>Hard-of-Hearing.<br/>
<a id="pl.73.9"></a><var>73.9</var>    (b) The Department of Education must provide aggregate data regarding outcomes <br/>
<a id="pl.73.10"></a><var>73.10</var>of deaf and hard-of-hearing children with hearing loss who receive early intervention <br/>
<a id="pl.73.11"></a><var>73.11</var>services within the state in accordance with the state performance plan.<br/>
<a id="pl.73.12"></a><var>73.12</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.13.0"></a><a id="pl.73.13"></a><var>73.13</var>    Sec. 13. Minnesota Statutes 2008, section 125A.69, subdivision 1, is amended to read:<br/>
<a id="pl.73.14"></a><var>73.14</var>    Subdivision 1. <b>Two kinds</b><b> Admissions</b><b>.</b> There are two kinds of Admission to the <br/>
<a id="pl.73.15"></a><var>73.15</var>Minnesota State Academies is described in this section.<br/>
<a id="pl.73.16"></a><var>73.16</var>(a) A pupil who is deaf, hard of hearing, or blind-deaf, may be admitted to the <br/>
<a id="pl.73.17"></a><var>73.17</var>Academy for the Deaf. A pupil who is blind or visually impaired, blind-deaf, or multiply <br/>
<a id="pl.73.18"></a><var>73.18</var>disabled may be admitted to the Academy for the Blind. For a pupil to be admitted, two <br/>
<a id="pl.73.19"></a><var>73.19</var>decisions must be made under sections 
         <statute_ref>125A.03</statute_ref> to 
         <statute_ref>125A.24</statute_ref> and 
         <statute_ref>125A.65</statute_ref>. <br/>
<a id="pl.73.20"></a><var>73.20</var>(1) It must be decided by the individual education planning team that education in <br/>
<a id="pl.73.21"></a><var>73.21</var>regular or special education classes in the pupil's district of residence cannot be achieved <br/>
<a id="pl.73.22"></a><var>73.22</var>satisfactorily because of the nature and severity of the deafness or blindness or visual <br/>
<a id="pl.73.23"></a><var>73.23</var>impairment respectively.<br/>
<a id="pl.73.24"></a><var>73.24</var>(2) It must be decided by the individual education planning team that the academy <br/>
<a id="pl.73.25"></a><var>73.25</var>provides the most appropriate placement within the least restrictive alternative for the <br/>
<a id="pl.73.26"></a><var>73.26</var>pupil.<br/>
<a id="pl.73.27"></a><var>73.27</var>(b) A deaf or hard of hearing child or a visually impaired pupil may be admitted to <br/>
<a id="pl.73.28"></a><var>73.28</var>get socialization skills or on a short-term basis for skills development.<br/>
<a id="pl.73.29"></a><var>73.29</var>(c) A parent of a child who resides in Minnesota and who meets the disability criteria <br/>
<a id="pl.73.30"></a><var>73.30</var>for being deaf or hard-of-hearing, blind or visually impaired, or multiply disabled may <br/>
<a id="pl.73.31"></a><var>73.31</var>apply to place the child in the Minnesota State Academies. Academy staff must review <br/>
<a id="pl.73.32"></a><var>73.32</var>the application to determine whether the Minnesota State Academies is an appropriate <br/>
<a id="pl.73.33"></a><var>73.33</var>placement for the child. If academy staff determine that the Minnesota State Academies <br/>
<a id="pl.73.34"></a><var>73.34</var>is an appropriate placement, the staff must invite the individualized education program <br/>
<a id="pl.73.35"></a><var>73.35</var>team at the child's resident school district to participate in a meeting to arrange a trial <br/>
<a id="pl.74.1"></a><var>74.1</var>placement of between 60 and 90 calendar days at the Minnesota State Academies. If <br/>
<a id="pl.74.2"></a><var>74.2</var>the child's parent consents to the trial placement, the Minnesota State Academies is the <br/>
<a id="pl.74.3"></a><var>74.3</var>responsible serving school district and incur all due process obligations under law and the <br/>
<a id="pl.74.4"></a><var>74.4</var>child's resident school district is responsible for any transportation included in the child's <br/>
<a id="pl.74.5"></a><var>74.5</var>individualized education program during the trial placement. Before the trial placement <br/>
<a id="pl.74.6"></a><var>74.6</var>ends, academy staff must convene an individualized education program team meeting to <br/>
<a id="pl.74.7"></a><var>74.7</var>determine whether to continue the child's placement at the Minnesota State Academies or <br/>
<a id="pl.74.8"></a><var>74.8</var>that another placement is appropriate. If the individualized education program team and <br/>
<a id="pl.74.9"></a><var>74.9</var>the parent are unable to agree on the child's placement, the child's placement reverts to the <br/>
<a id="pl.74.10"></a><var>74.10</var>placement in the child's individualized education program that immediately preceded the <br/>
<a id="pl.74.11"></a><var>74.11</var>trial placement. If the parent and individualized education program team agree to continue <br/>
<a id="pl.74.12"></a><var>74.12</var>the placement beyond the trial period, the transportation and due process responsibilities <br/>
<a id="pl.74.13"></a><var>74.13</var>are the same as those described for the trial placement under this paragraph.<br/>
<a id="pl.74.14"></a><var>74.14</var><b>EFFECTIVE DATE.</b>This section is effective for the 2010-2011 school year and <br/>
<a id="pl.74.15"></a><var>74.15</var>later.<br/>
<br/>
<a id="bill.3.14.0"></a><a id="pl.74.16"></a><var>74.16</var>    Sec. 14. Minnesota Statutes 2009 Supplement, section 256B.0625, subdivision 26, <br/>
<a id="pl.74.17"></a><var>74.17</var>is amended to read:<br/>
<a id="pl.74.18"></a><var>74.18</var>    Subd. 26. <b>Special education services.</b> (a) Medical assistance covers medical <br/>
<a id="pl.74.19"></a><var>74.19</var>services identified in a recipient's individualized education plan and covered under the <br/>
<a id="pl.74.20"></a><var>74.20</var>medical assistance state plan. Covered services include occupational therapy, physical <br/>
<a id="pl.74.21"></a><var>74.21</var>therapy, speech-language therapy, clinical psychological services, nursing services, <br/>
<a id="pl.74.22"></a><var>74.22</var>school psychological services, school social work services, personal care assistants <br/>
<a id="pl.74.23"></a><var>74.23</var>serving as management aides, assistive technology devices, transportation services, <br/>
<a id="pl.74.24"></a><var>74.24</var>health assessments, and other services covered under the medical assistance state plan. <br/>
<a id="pl.74.25"></a><var>74.25</var>Mental health services eligible for medical assistance reimbursement must be provided or <br/>
<a id="pl.74.26"></a><var>74.26</var>coordinated through a children's mental health collaborative where a collaborative exists if <br/>
<a id="pl.74.27"></a><var>74.27</var>the child is included in the collaborative operational target population. The provision or <br/>
<a id="pl.74.28"></a><var>74.28</var>coordination of services does not require that the individual education plan be developed <br/>
<a id="pl.74.29"></a><var>74.29</var>by the collaborative.<br/>
<a id="pl.74.30"></a><var>74.30</var>The services may be provided by a Minnesota school district that is enrolled as a <br/>
<a id="pl.74.31"></a><var>74.31</var>medical assistance provider or its subcontractor, and only if the services meet all the <br/>
<a id="pl.74.32"></a><var>74.32</var>requirements otherwise applicable if the service had been provided by a provider other <br/>
<a id="pl.74.33"></a><var>74.33</var>than a school district, in the following areas: medical necessity, physician's orders, <br/>
<a id="pl.74.34"></a><var>74.34</var>documentation, personnel qualifications, and prior authorization requirements. The <br/>
<a id="pl.74.35"></a><var>74.35</var>nonfederal share of costs for services provided under this subdivision is the responsibility <br/>
<a id="pl.75.1"></a><var>75.1</var>of the local school district as provided in section 
         <statute_ref>125A.74</statute_ref>. Services listed in a child's <br/>
<a id="pl.75.2"></a><var>75.2</var>individual education plan are eligible for medical assistance reimbursement only if those <br/>
<a id="pl.75.3"></a><var>75.3</var>services meet criteria for federal financial participation under the Medicaid program.<br/>
<a id="pl.75.4"></a><var>75.4</var>(b) Approval of health-related services for inclusion in the individual education plan <br/>
<a id="pl.75.5"></a><var>75.5</var>does not require prior authorization for purposes of reimbursement under this chapter. <br/>
<a id="pl.75.6"></a><var>75.6</var>The commissioner may require physician review and approval of the plan not more than <br/>
<a id="pl.75.7"></a><var>75.7</var>once annually or upon any modification of the individual education plan that reflects a <br/>
<a id="pl.75.8"></a><var>75.8</var>change in health-related services.<br/>
<a id="pl.75.9"></a><var>75.9</var>(c) Services of a speech-language pathologist provided under this section are covered <br/>
<a id="pl.75.10"></a><var>75.10</var>notwithstanding Minnesota Rules, part 9505.0390, subpart 1, item L, if the person:<br/>
<a id="pl.75.11"></a><var>75.11</var>(1) holds a masters degree in speech-language pathology;<br/>
<a id="pl.75.12"></a><var>75.12</var>(2) is licensed by the Minnesota Board of Teaching as an educational <br/>
<a id="pl.75.13"></a><var>75.13</var>speech-language pathologist; and<br/>
<a id="pl.75.14"></a><var>75.14</var>(3) either has a certificate of clinical competence from the American Speech and <br/>
<a id="pl.75.15"></a><var>75.15</var>Hearing Association, has completed the equivalent educational requirements and work <br/>
<a id="pl.75.16"></a><var>75.16</var>experience necessary for the certificate or has completed the academic program and is <br/>
<a id="pl.75.17"></a><var>75.17</var>acquiring supervised work experience to qualify for the certificate.<br/>
<a id="pl.75.18"></a><var>75.18</var>(d) Medical assistance coverage for medically necessary services provided under <br/>
<a id="pl.75.19"></a><var>75.19</var>other subdivisions in this section may not be denied solely on the basis that the same or <br/>
<a id="pl.75.20"></a><var>75.20</var>similar services are covered under this subdivision.<br/>
<a id="pl.75.21"></a><var>75.21</var>(e) The commissioner shall develop and implement package rates, bundled rates, or <br/>
<a id="pl.75.22"></a><var>75.22</var>per diem rates for special education services under which separately covered services are <br/>
<a id="pl.75.23"></a><var>75.23</var>grouped together and billed as a unit in order to reduce administrative complexity.<br/>
<a id="pl.75.24"></a><var>75.24</var>(f) The commissioner shall develop a cost-based payment structure for payment of <br/>
<a id="pl.75.25"></a><var>75.25</var>these services. Only costs reported through designated Department of Education data <br/>
<a id="pl.75.26"></a><var>75.26</var>systems in distinct service categories may be included in the cost-based payment structure. <br/>
<a id="pl.75.27"></a><var>75.27</var>The commissioner shall reimburse claims submitted based on an interim rate, and shall <br/>
<a id="pl.75.28"></a><var>75.28</var>settle at a final rate once the department has determined it. The commissioner shall <br/>
<a id="pl.75.29"></a><var>75.29</var>notify the school district of the final rate. The school district has 60 days to appeal the <br/>
<a id="pl.75.30"></a><var>75.30</var>final rate. To appeal the final rate, the school district shall file a written appeal request <br/>
<a id="pl.75.31"></a><var>75.31</var>to the commissioner within 60 days of the date the final rate determination was mailed. <br/>
<a id="pl.75.32"></a><var>75.32</var>The appeal request shall specify (1) the disputed items and (2) the name and address of <br/>
<a id="pl.75.33"></a><var>75.33</var>the person to contact regarding the appeal.<br/>
<a id="pl.75.34"></a><var>75.34</var>(g) Effective July 1, 2000, medical assistance services provided under an individual <br/>
<a id="pl.75.35"></a><var>75.35</var>education plan or an individual family service plan by local school districts shall not count <br/>
<a id="pl.75.36"></a><var>75.36</var>against medical assistance authorization thresholds for that child.<br/>
<a id="pl.76.1"></a><var>76.1</var>(h) Nursing services as defined in section 
         <statute_ref>148.171, subdivision 15</statute_ref>, and provided <br/>
<a id="pl.76.2"></a><var>76.2</var>as an individual education plan health-related service, are eligible for medical assistance <br/>
<a id="pl.76.3"></a><var>76.3</var>payment if they are otherwise a covered service under the medical assistance program. <br/>
<a id="pl.76.4"></a><var>76.4</var>Medical assistance covers the administration of prescription medications by a licensed <br/>
<a id="pl.76.5"></a><var>76.5</var>nurse who is employed by or under contract with a school district when the administration <br/>
<a id="pl.76.6"></a><var>76.6</var>of medications is identified in the child's individualized education plan. The simple <br/>
<a id="pl.76.7"></a><var>76.7</var>administration of medications alone is not covered under medical assistance when <br/>
<a id="pl.76.8"></a><var>76.8</var>administered by a provider other than a school district or when it is not identified in the <br/>
<a id="pl.76.9"></a><var>76.9</var>child's individualized education plan.<br/>
<br/>
<a id="bill.3.15.0"></a><a id="pl.76.10"></a><var>76.10</var>    Sec. 15. Laws 2009, chapter 79, article 5, section 60, is amended to read:<br/>
<a id="pl.76.11"></a><var>76.11</var>    Sec. 60. Minnesota Statutes 2008, section 256L.05, is amended by adding a <br/>
<a id="pl.76.12"></a><var>76.12</var>subdivision to read:<br/>
<a id="pl.76.13"></a><var>76.13</var>    Subd. 1c. <b>Open enrollment and streamlined application and enrollment </b><br/>
<a id="pl.76.14"></a><var>76.14</var><b>process.</b> (a) The commissioner and local agencies working in partnership must develop a <br/>
<a id="pl.76.15"></a><var>76.15</var>streamlined and efficient application and enrollment process for medical assistance and <br/>
<a id="pl.76.16"></a><var>76.16</var>MinnesotaCare enrollees that meets the criteria specified in this subdivision.<br/>
<a id="pl.76.17"></a><var>76.17</var>(b) The commissioners of human services and education shall provide <br/>
<a id="pl.76.18"></a><var>76.18</var>recommendations to the legislature by January 15, 2010, on the creation of an open <br/>
<a id="pl.76.19"></a><var>76.19</var>enrollment process for medical assistance and MinnesotaCare that is coordinated with <br/>
<a id="pl.76.20"></a><var>76.20</var>the public education system. The recommendations must:<br/>
<a id="pl.76.21"></a><var>76.21</var>(1) be developed in consultation with medical assistance and MinnesotaCare <br/>
<a id="pl.76.22"></a><var>76.22</var>enrollees and representatives from organizations that advocate on behalf of children and <br/>
<a id="pl.76.23"></a><var>76.23</var>families, low-income persons and minority populations, counties, school administrators <br/>
<a id="pl.76.24"></a><var>76.24</var>and nurses, health plans, and health care providers;<br/>
<a id="pl.76.25"></a><var>76.25</var>(2) be based on enrollment and renewal procedures best practices, including express <br/>
<a id="pl.76.26"></a><var>76.26</var>lane eligibility as required under subdivision 1d;<br/>
<a id="pl.76.27"></a><var>76.27</var>(3) simplify the enrollment and renewal processes wherever possible; and<br/>
<a id="pl.76.28"></a><var>76.28</var>(4) establish a process:<br/>
<a id="pl.76.29"></a><var>76.29</var>(i) to disseminate information on medical assistance and MinnesotaCare to all <br/>
<a id="pl.76.30"></a><var>76.30</var>children in the public education system, including prekindergarten programs; and<br/>
<a id="pl.76.31"></a><var>76.31</var>(ii) for the commissioner of human services to enroll children and other household <br/>
<a id="pl.76.32"></a><var>76.32</var>members who are eligible.<br/>
<a id="pl.76.33"></a><var>76.33</var>The commissioner of human services in coordination with the commissioner of <br/>
<a id="pl.76.34"></a><var>76.34</var>education shall implement an open enrollment process by August 1, 2010, to be effective <br/>
<a id="pl.76.35"></a><var>76.35</var>beginning with the 2010-2011 school year.<br/>
<a id="pl.77.1"></a><var>77.1</var>(c) The commissioner and local agencies shall develop an online application process <br/>
<a id="pl.77.2"></a><var>77.2</var>for medical assistance and MinnesotaCare.<br/>
<a id="pl.77.3"></a><var>77.3</var>(d) The commissioner shall develop an application that is easily understandable <br/>
<a id="pl.77.4"></a><var>77.4</var>and does not exceed four pages in length.<br/>
<a id="pl.77.5"></a><var>77.5</var>(e) The commissioner of human services shall present to the legislature, by January <br/>
<a id="pl.77.6"></a><var>77.6</var>15, 2010, an implementation plan for the open enrollment period and online application <br/>
<a id="pl.77.7"></a><var>77.7</var>process.<br/>
<a id="pl.77.8"></a><var>77.8</var>(f) To ensure parity between all providers of medical services in the ability to seek <br/>
<a id="pl.77.9"></a><var>77.9</var>reimbursement from MinnesotaCare or medical assistance, the commissioner of human <br/>
<a id="pl.77.10"></a><var>77.10</var>services, in consultation with the commissioner of education, shall include on new or <br/>
<a id="pl.77.11"></a><var>77.11</var>revised enrollment forms consent authorization language for all providers of medical <br/>
<a id="pl.77.12"></a><var>77.12</var>services to the parent's child or children, including schools, by incorporating language on <br/>
<a id="pl.77.13"></a><var>77.13</var>the enrollment form that is consistent with federal data practices laws requiring consent <br/>
<a id="pl.77.14"></a><var>77.14</var>before a school may release information from individual educational records. The consent <br/>
<a id="pl.77.15"></a><var>77.15</var>language shall include a statement that the medical services providers may share with the <br/>
<a id="pl.77.16"></a><var>77.16</var>commissioner of human services medical or other information in the possession of the <br/>
<a id="pl.77.17"></a><var>77.17</var>provider that is necessary for the provider to be reimbursed by MinnesotaCare or medical <br/>
<a id="pl.77.18"></a><var>77.18</var>assistance. The consent language also shall state that information may be shared from <br/>
<a id="pl.77.19"></a><var>77.19</var>a child's individual educational records and that the parent may revoke the consent for <br/>
<a id="pl.77.20"></a><var>77.20</var>schools to share information from educational records at any time. The commissioner <br/>
<a id="pl.77.21"></a><var>77.21</var>shall include substantially similar consent authorization language on each of its other <br/>
<a id="pl.77.22"></a><var>77.22</var>enrollment forms as they are scheduled for review, revision, or replacement.<br/>
<a id="pl.77.23"></a><var>77.23</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010, or upon federal <br/>
<a id="pl.77.24"></a><var>77.24</var>approval, which must be requested by the commissioner, whichever is later.<br/>
<br/>
<a id="bill.3.16.0"></a><a id="pl.77.25"></a><var>77.25</var>    Sec. 16. <b>SPECIAL EDUCATION REPORT.</b><br/>
<a id="pl.77.26"></a><var>77.26</var>As the agency charged with administering and enforcing federal and state special <br/>
<a id="pl.77.27"></a><var>77.27</var>education laws and making special education aid payments, the Department of Education <br/>
<a id="pl.77.28"></a><var>77.28</var>must identify and report by February 15, 2011, to the committees of the house of <br/>
<a id="pl.77.29"></a><var>77.29</var>representatives and senate with primary jurisdiction over kindergarten through grade <br/>
<a id="pl.77.30"></a><var>77.30</var>12 education the specific circumstances under which a school district or other entity, <br/>
<a id="pl.77.31"></a><var>77.31</var>consistent with federal and state law, must provide special education and related services <br/>
<a id="pl.77.32"></a><var>77.32</var>to a child with a disability and thereby receives payment for providing the special <br/>
<a id="pl.77.33"></a><var>77.33</var>education and related services.<br/>
<a id="pl.77.34"></a><var>77.34</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.17.0"></a><a id="pl.78.1"></a><var>78.1</var>    Sec. 17. <b>THIRD-PARTY BILLING.</b><br/>
<a id="pl.78.2"></a><var>78.2</var>To allow the cost effective billing of medical assistance for covered services that <br/>
<a id="pl.78.3"></a><var>78.3</var>are not reimbursed by other legally liable third parties, the commissioner of human <br/>
<a id="pl.78.4"></a><var>78.4</var>services must:<br/>
<a id="pl.78.5"></a><var>78.5</var>(1) summarize and document school district efforts to secure reimbursement from <br/>
<a id="pl.78.6"></a><var>78.6</var>legally liable third parties; and<br/>
<a id="pl.78.7"></a><var>78.7</var>(2) request permission from the Centers for Medicare and Medicaid Services to <br/>
<a id="pl.78.8"></a><var>78.8</var>allow school districts to bill Medicaid alone, without first billing private payers, when:<br/>
<a id="pl.78.9"></a><var>78.9</var>(i) a child has both public and private coverage; and<br/>
<a id="pl.78.10"></a><var>78.10</var>(ii) documentation demonstrates that the private payer involved does not reimburse <br/>
<a id="pl.78.11"></a><var>78.11</var>for individualized education program health-related services.<br/>
<br/>
<a id="bill.3.18.0"></a><a id="pl.78.12"></a><var>78.12</var>    Sec. 18. <b>REVISOR'S INSTRUCTION.</b><br/>
<a id="pl.78.13"></a><var>78.13</var>The revisor of statutes shall substitute the term "individualized education program" <br/>
<a id="pl.78.14"></a><var>78.14</var>or similar terms for "individual education plan" or similar terms wherever they appear <br/>
<a id="pl.78.15"></a><var>78.15</var>in Minnesota Statutes and Minnesota Rules referring to the requirements relating to <br/>
<a id="pl.78.16"></a><var>78.16</var>the federal Individuals with Disabilities Education Act. The revisor shall also make <br/>
<a id="pl.78.17"></a><var>78.17</var>grammatical changes related to the changes in terms.<br/>
<br/>
<a id="bill.3.19.0"></a><a id="pl.78.18"></a><var>78.18</var>    Sec. 19. <b> REPEALER.</b><br/>
<a id="pl.78.19"></a><var>78.19</var>Minnesota Statutes 2008, section 125A.54, is repealed.<br/>
<br/>
<a id="bill.4.0.0"></a>

<a id="bill.4.1.0"></a><a id="pl.78.22"></a><var>78.22</var>    Section 1. Minnesota Statutes 2008, section 123B.57, as amended by Laws 2009 <br/>
<a id="pl.78.23"></a><var>78.23</var>chapter 96, article 4, section 2, is amended to read:<br/>
<a id="pl.78.24"></a><var>78.24</var><b>123B.57 CAPITAL EXPENDITURE; HEALTH AND SAFETY.</b><br/>
<a id="pl.78.25"></a><var>78.25</var>    Subdivision 1. <b>Health and safety </b><b>program</b><b> revenue application</b><b>.</b> (a) To receive <br/>
<a id="pl.78.26"></a><var>78.26</var>health and safety revenue for any fiscal year a district must submit to the commissioner <br/>
<a id="pl.78.27"></a><var>78.27</var>an a capital expenditure health and safety revenue application for aid and levy by the <br/>
<a id="pl.78.28"></a><var>78.28</var>date determined by the commissioner. The application may be for hazardous substance <br/>
<a id="pl.78.29"></a><var>78.29</var>removal, fire and life safety code repairs, labor and industry regulated facility and <br/>
<a id="pl.78.30"></a><var>78.30</var>equipment violations, and health, safety, and environmental management, including <br/>
<a id="pl.78.31"></a><var>78.31</var>indoor air quality management. The application must include a health and safety program <br/>
<a id="pl.78.32"></a><var>78.32</var>budget adopted and confirmed by the school district board as being consistent with the <br/>
<a id="pl.79.1"></a><var>79.1</var>district's health and safety policy under subdivision 2. The program budget must include <br/>
<a id="pl.79.2"></a><var>79.2</var>the estimated cost, per building, of the program per Uniform Financial Accounting and <br/>
<a id="pl.79.3"></a><var>79.3</var>Reporting Standards (UFARS) finance code, by fiscal year. Upon approval through the <br/>
<a id="pl.79.4"></a><var>79.4</var>adoption of a resolution by each of an intermediate district's member school district <br/>
<a id="pl.79.5"></a><var>79.5</var>boards and the approval of the Department of Education, a school district may include <br/>
<a id="pl.79.6"></a><var>79.6</var>its proportionate share of the costs of health and safety projects for an intermediate <br/>
<a id="pl.79.7"></a><var>79.7</var>district in its application.<br/>
<a id="pl.79.8"></a><var>79.8</var>(b) Health and safety projects with an estimated cost of $500,000 or more per <br/>
<a id="pl.79.9"></a><var>79.9</var>site are not eligible for health and safety revenue. Health and safety projects with an <br/>
<a id="pl.79.10"></a><var>79.10</var>estimated cost of $500,000 or more per site that meet all other requirements for health and <br/>
<a id="pl.79.11"></a><var>79.11</var>safety funding, are eligible for alternative facilities bonding and levy revenue according <br/>
<a id="pl.79.12"></a><var>79.12</var>to section 
         <statute_ref>123B.59</statute_ref>. A school board shall not separate portions of a single project into <br/>
<a id="pl.79.13"></a><var>79.13</var>components to qualify for health and safety revenue, and shall not combine unrelated <br/>
<a id="pl.79.14"></a><var>79.14</var>projects into a single project to qualify for alternative facilities bonding and levy revenue.<br/>
<a id="pl.79.15"></a><var>79.15</var>(c) The commissioner of education shall not make eligibility for health and safety <br/>
<a id="pl.79.16"></a><var>79.16</var>revenue contingent on a district's compliance status, level of program development, or <br/>
<a id="pl.79.17"></a><var>79.17</var>training. The commissioner shall not mandate additional performance criteria such as <br/>
<a id="pl.79.18"></a><var>79.18</var>training, certifications, or compliance evaluations as a prerequisite for levy approval.<br/>
<a id="pl.79.19"></a><var>79.19</var>    Subd. 2. <b>Contents of program</b><b> Health and safety policy</b><b>.</b> To qualify for health <br/>
<a id="pl.79.20"></a><var>79.20</var>and safety revenue, a district school board must adopt a health and safety program policy. <br/>
<a id="pl.79.21"></a><var>79.21</var>The program policy must include plans, where applicable, for hazardous substance <br/>
<a id="pl.79.22"></a><var>79.22</var>removal, fire and life safety code repairs, regulated facility and equipment violations, <br/>
<a id="pl.79.23"></a><var>79.23</var>and provisions for implementing a health and safety program that complies with health, <br/>
<a id="pl.79.24"></a><var>79.24</var>safety, and environmental management, regulations and best practices including indoor <br/>
<a id="pl.79.25"></a><var>79.25</var>air quality management.<br/>
<a id="pl.79.26"></a><var>79.26</var>(a) A hazardous substance plan must contain provisions for the removal or <br/>
<a id="pl.79.27"></a><var>79.27</var>encapsulation of asbestos from school buildings or property, asbestos-related repairs, <br/>
<a id="pl.79.28"></a><var>79.28</var>cleanup and disposal of polychlorinated biphenyls found in school buildings or property, <br/>
<a id="pl.79.29"></a><var>79.29</var>and cleanup, removal, disposal, and repairs related to storing heating fuel or transportation <br/>
<a id="pl.79.30"></a><var>79.30</var>fuels such as alcohol, gasoline, fuel, oil, and special fuel, as defined in section 
<statute_ref>296A.01</statute_ref>. <br/>
<a id="pl.79.31"></a><var>79.31</var>If a district has already developed a plan for the removal or encapsulation of asbestos as <br/>
<a id="pl.79.32"></a><var>79.32</var>required by the federal Asbestos Hazard Emergency Response Act of 1986, the district <br/>
<a id="pl.79.33"></a><var>79.33</var>may use a summary of that plan, which includes a description and schedule of response <br/>
<a id="pl.79.34"></a><var>79.34</var>actions, for purposes of this section. The plan must also contain provisions to make <br/>
<a id="pl.79.35"></a><var>79.35</var>modifications to existing facilities and equipment necessary to limit personal exposure <br/>
<a id="pl.79.36"></a><var>79.36</var>to hazardous substances, as regulated by the federal Occupational Safety and Health <br/>
<a id="pl.80.1"></a><var>80.1</var>Administration under Code of Federal Regulations, title 29, part 1910, subpart Z; or is <br/>
<a id="pl.80.2"></a><var>80.2</var>determined by the commissioner to present a significant risk to district staff or student <br/>
<a id="pl.80.3"></a><var>80.3</var>health and safety as a result of foreseeable use, handling, accidental spill, exposure, or <br/>
<a id="pl.80.4"></a><var>80.4</var>contamination. <br/>
<a id="pl.80.5"></a><var>80.5</var>(b) A fire and life safety plan must contain a description of the current fire and life <br/>
<a id="pl.80.6"></a><var>80.6</var>safety code violations, a plan for the removal or repair of the fire and life safety hazard, <br/>
<a id="pl.80.7"></a><var>80.7</var>and a description of safety preparation and awareness procedures to be followed until the <br/>
<a id="pl.80.8"></a><var>80.8</var>hazard is fully corrected.<br/>
<a id="pl.80.9"></a><var>80.9</var>(c) A facilities and equipment violation plan must contain provisions to correct <br/>
<a id="pl.80.10"></a><var>80.10</var>health and safety hazards as provided in Department of Labor and Industry standards <br/>
<a id="pl.80.11"></a><var>80.11</var>pursuant to section 
<statute_ref>182.655</statute_ref>. <br/>
<a id="pl.80.12"></a><var>80.12</var>(d) A health, safety, and environmental management plan must contain a description <br/>
<a id="pl.80.13"></a><var>80.13</var>of training, record keeping, hazard assessment, and program management as defined <br/>
<a id="pl.80.14"></a><var>80.14</var>in section 
<statute_ref>123B.56</statute_ref>. <br/>
<a id="pl.80.15"></a><var>80.15</var>(e) A plan to test for and mitigate radon produced hazards.<br/>
<a id="pl.80.16"></a><var>80.16</var>(f) A plan to monitor and improve indoor air quality.<br/>
<a id="pl.80.17"></a><var>80.17</var>    Subd. 3. <b>Health and safety revenue.</b> A district's health and safety revenue <br/>
<a id="pl.80.18"></a><var>80.18</var>for a fiscal year equals the district's alternative facilities levy under section 
         <statute_ref>123B.59</statute_ref>, <br/>
<a id="pl.80.19"></a><var>80.19</var>subdivision 5, paragraph (b), plus the greater of zero or:<br/>
<a id="pl.80.20"></a><var>80.20</var>    (1) the sum of (a) the total approved cost of the district's hazardous substance <br/>
<a id="pl.80.21"></a><var>80.21</var>plan for fiscal years 1985 through 1989, plus (b) the total approved cost of the district's <br/>
<a id="pl.80.22"></a><var>80.22</var>health and safety program for fiscal year 1990 through the fiscal year to which the levy <br/>
<a id="pl.80.23"></a><var>80.23</var>is attributable, excluding expenditures funded with bonds issued under section 
         <statute_ref>123B.59 <br/>
</statute_ref><a id="pl.80.24"></a><var>80.24</var>or 
         <statute_ref>123B.62</statute_ref>, or chapter 475; certificates of indebtedness or capital notes under section <br/>
<statute_ref><a id="pl.80.25"></a><var>80.25</var>123B.61
         </statute_ref>; levies under section 
         <statute_ref>123B.58</statute_ref>, 
         <statute_ref>123B.59</statute_ref>, 
         <statute_ref>123B.63</statute_ref>, or 
         <statute_ref>126C.40, subdivision 1</statute_ref> or <br/>
<a id="pl.80.26"></a><var>80.26</var>6; and other federal, state, or local revenues, minus <br/>
<a id="pl.80.27"></a><var>80.27</var>    (2) the sum of (a) the district's total hazardous substance aid and levy for fiscal years <br/>
<a id="pl.80.28"></a><var>80.28</var>1985 through 1989 under sections 
         <statute_ref>124.245</statute_ref> and 
         <statute_ref>275.125, subdivision 11c</statute_ref>, plus (b) the <br/>
<a id="pl.80.29"></a><var>80.29</var>district's health and safety revenue under this subdivision, for years before the fiscal year <br/>
<a id="pl.80.30"></a><var>80.30</var>to which the levy is attributable. <br/>
<a id="pl.80.31"></a><var>80.31</var>    Subd. 4. <b>Health and safety levy.</b> To receive health and safety revenue, a district <br/>
<a id="pl.80.32"></a><var>80.32</var>may levy an amount equal to the district's health and safety revenue as defined in <br/>
<a id="pl.80.33"></a><var>80.33</var>subdivision 3 multiplied by the lesser of one, or the ratio of the quotient derived by <br/>
<a id="pl.80.34"></a><var>80.34</var>dividing the adjusted net tax capacity of the district for the year preceding the year the <br/>
<a id="pl.80.35"></a><var>80.35</var>levy is certified by the adjusted marginal cost pupil units in the district for the school year <br/>
<a id="pl.80.36"></a><var>80.36</var>to which the levy is attributable, to $2,935.<br/>
<a id="pl.81.1"></a><var>81.1</var>    Subd. 5. <b>Health and safety aid.</b> A district's health and safety aid is the difference <br/>
<a id="pl.81.2"></a><var>81.2</var>between its health and safety revenue and its health and safety levy. If a district does not <br/>
<a id="pl.81.3"></a><var>81.3</var>levy the entire amount permitted, health and safety aid must be reduced in proportion to <br/>
<a id="pl.81.4"></a><var>81.4</var>the actual amount levied. Health and safety aid may not be reduced as a result of reducing <br/>
<a id="pl.81.5"></a><var>81.5</var>a district's health and safety levy according to section 
         <statute_ref>123B.79</statute_ref>. <br/>
<a id="pl.81.6"></a><var>81.6</var>    Subd. 6. <b>Uses of health and safety revenue.</b> (a) Health and safety revenue may <br/>
<a id="pl.81.7"></a><var>81.7</var>be used only for approved expenditures necessary to correct fire and life safety hazards, <br/>
<a id="pl.81.8"></a><var>81.8</var>or for the; design, purchase, installation, maintenance, and inspection of fire protection <br/>
<a id="pl.81.9"></a><var>81.9</var>and alarm equipment; purchase or construction of appropriate facilities for the storage of <br/>
<a id="pl.81.10"></a><var>81.10</var>combustible and flammable materials; inventories and facility modifications not related <br/>
<a id="pl.81.11"></a><var>81.11</var>to a remodeling project to comply with lab safety requirements under section 121A.31; <br/>
<a id="pl.81.12"></a><var>81.12</var>inspection, testing, repair, removal or encapsulation, and disposal of asbestos from school <br/>
<a id="pl.81.13"></a><var>81.13</var>buildings or property owned or being acquired by the district, asbestos-related repairs, <br/>
<a id="pl.81.14"></a><var>81.14</var>asbestos-containing building materials; cleanup and disposal of polychlorinated biphenyls <br/>
<a id="pl.81.15"></a><var>81.15</var>found in school buildings or property owned or being acquired by the district, or the; <br/>
<a id="pl.81.16"></a><var>81.16</var>cleanup and disposal of hazardous and infectious wastes; cleanup, removal, disposal, and <br/>
<a id="pl.81.17"></a><var>81.17</var>repairs related to storing heating fuel or transportation fuels such as alcohol, gasoline, fuel <br/>
<a id="pl.81.18"></a><var>81.18</var>oil, and special fuel, as defined in section 
         <statute_ref>296A.01</statute_ref>, Minnesota; correction of occupational <br/>
<a id="pl.81.19"></a><var>81.19</var>safety and health administration regulated facility and equipment hazards,; indoor air <br/>
<a id="pl.81.20"></a><var>81.20</var>quality inspections, investigations, and testing; mold abatement,; upgrades or replacement <br/>
<a id="pl.81.21"></a><var>81.21</var>of mechanical ventilation systems to meet American Society of Heating, Refrigerating <br/>
<a id="pl.81.22"></a><var>81.22</var>and Air Conditioning Engineers standards and State Mechanical Code,; design, materials, <br/>
<a id="pl.81.23"></a><var>81.23</var>and installation of local exhaust ventilation systems, including required make up air for <br/>
<a id="pl.81.24"></a><var>81.24</var>controlling regulated hazardous substances; correction of Department of Health Food <br/>
<a id="pl.81.25"></a><var>81.25</var>Code and violations; correction of swimming pool hazards excluding depth correction,; <br/>
<a id="pl.81.26"></a><var>81.26</var>playground safety inspections and the installation of impact surfacing materials; bleacher <br/>
<a id="pl.81.27"></a><var>81.27</var>repair or rebuilding to comply with the order of a building code inspector under section <br/>
<a id="pl.81.28"></a><var>81.28</var>326B.112; testing and mitigation of elevated radon hazards; lead in water, paint, soil, <br/>
<a id="pl.81.29"></a><var>81.29</var>and toys testing; copper in water testing; cleanup after major weather-related disasters <br/>
<a id="pl.81.30"></a><var>81.30</var>or flooding; reduction of excessive organic and inorganic levels in wells and well <br/>
<a id="pl.81.31"></a><var>81.31</var>capping of abandoned wells; installation and testing of boiler backflow valves to prevent <br/>
<a id="pl.81.32"></a><var>81.32</var>contamination of potable water; vaccinations, titers, and preventative supplies for <br/>
<a id="pl.81.33"></a><var>81.33</var>bloodborne pathogen compliance; costs to comply with the Janet B. Johnson Parents' <br/>
<a id="pl.81.34"></a><var>81.34</var>Right To Know Act; and health, safety, and environmental management costs associated <br/>
<a id="pl.81.35"></a><var>81.35</var>with implementing the district's health and safety program including costs to establish <br/>
<a id="pl.81.36"></a><var>81.36</var>and operate safety committees, in school buildings or property owned or being acquired <br/>
<a id="pl.82.1"></a><var>82.1</var>by the district. Testing and calibration activities are permitted for existing mechanical <br/>
<a id="pl.82.2"></a><var>82.2</var>ventilation systems at intervals no less than every five years. Health and safety revenue <br/>
<a id="pl.82.3"></a><var>82.3</var>must not be used to finance a lease purchase agreement, installment purchase agreement, <br/>
<a id="pl.82.4"></a><var>82.4</var>or other deferred payments agreement. Health and safety revenue must not be used for <br/>
<a id="pl.82.5"></a><var>82.5</var>the construction of new facilities or the purchase of portable classrooms, for interest or <br/>
<a id="pl.82.6"></a><var>82.6</var>other financing expenses, or for energy efficiency projects under section 
<statute_ref>123B.65</statute_ref>. The <br/>
<a id="pl.82.7"></a><var>82.7</var>revenue may not be used for a building or property or part of a building or property used <br/>
<a id="pl.82.8"></a><var>82.8</var>for postsecondary instruction or administration or for a purpose unrelated to elementary <br/>
<a id="pl.82.9"></a><var>82.9</var>and secondary education. <br/>
<a id="pl.82.10"></a><var>82.10</var>    Subd. 6a. <b>Restrictions on health and safety revenue.</b> (b) Notwithstanding <br/>
<a id="pl.82.11"></a><var>82.11</var>paragraph (a) subdivision 6, health and safety revenue must not be used to finance a <br/>
<a id="pl.82.12"></a><var>82.12</var>lease purchase agreement, installment purchase agreement, or other deferred payments <br/>
<a id="pl.82.13"></a><var>82.13</var>agreement, for the construction of new facilities, remodeling of existing facilities, or <br/>
<a id="pl.82.14"></a><var>82.14</var>the purchase of portable classrooms, for interest or other financing expenses, or for <br/>
<a id="pl.82.15"></a><var>82.15</var>energy efficiency projects under section 123B.65, for a building or property or part of a <br/>
<a id="pl.82.16"></a><var>82.16</var>building or property used for postsecondary instruction or administration or for a purpose <br/>
<a id="pl.82.17"></a><var>82.17</var>unrelated to elementary and secondary education, for replacement of building materials <br/>
<a id="pl.82.18"></a><var>82.18</var>or facilities including roof, walls, windows, internal fixtures and flooring, nonhealth and <br/>
<a id="pl.82.19"></a><var>82.19</var>safety costs associated with demolition of facilities, structural repair or replacement of <br/>
<a id="pl.82.20"></a><var>82.20</var>facilities due to unsafe conditions, violence prevention and facility security, ergonomics, <br/>
<a id="pl.82.21"></a><var>82.21</var>or for building and heating, ventilating and air conditioning supplies, maintenance, and <br/>
<a id="pl.82.22"></a><var>82.22</var>cleaning activities. All assessments, investigations, inventories, and support equipment <br/>
<a id="pl.82.23"></a><var>82.23</var>not leading to the engineering or construction of a project shall be included in the health, <br/>
<a id="pl.82.24"></a><var>82.24</var>safety, and environmental management costs in subdivision 8, paragraph (a).<br/>
<a id="pl.82.25"></a><var>82.25</var>    Subd. 6b. <b>Health and safety projects.</b> (a) Health and safety revenue applications <br/>
<a id="pl.82.26"></a><var>82.26</var>defined in subdivision 1 must be accompanied by a description of each project for which <br/>
<a id="pl.82.27"></a><var>82.27</var>funding is being requested. Project descriptions must provide enough detail for an auditor <br/>
<a id="pl.82.28"></a><var>82.28</var>to determine if the work qualifies for revenue. For projects other than fire and life <br/>
<a id="pl.82.29"></a><var>82.29</var>safety projects, playground projects, and health, safety, and environmental management <br/>
<a id="pl.82.30"></a><var>82.30</var>activities, a project description does not need to include itemized details such as material <br/>
<a id="pl.82.31"></a><var>82.31</var>types, room locations, square feet, names, or license numbers. The commissioner shall <br/>
<a id="pl.82.32"></a><var>82.32</var>approve only projects that comply with subdivisions 6 and 8, as defined by the Department <br/>
<a id="pl.82.33"></a><var>82.33</var>of Education.<br/>
<a id="pl.82.34"></a><var>82.34</var>(b) Districts may request funding for allowable projects based on self-assessments, <br/>
<a id="pl.82.35"></a><var>82.35</var>safety committee recommendations, insurance inspections, management assistance <br/>
<a id="pl.82.36"></a><var>82.36</var>reports, fire marshal orders, or other mandates. Notwithstanding subdivision 1, paragraph <br/>
<a id="pl.83.1"></a><var>83.1</var>(b), and subdivision 8, paragraph (b), for projects under $500,000, individual project <br/>
<a id="pl.83.2"></a><var>83.2</var>size for projects authorized by this subdivision is not limited and may include related <br/>
<a id="pl.83.3"></a><var>83.3</var>work in multiple facilities. Health and safety management costs from subdivision 8 may <br/>
<a id="pl.83.4"></a><var>83.4</var>be reported as a single project.<br/>
<a id="pl.83.5"></a><var>83.5</var>(c) All costs directly related to a project shall be reported in the appropriate Uniform <br/>
<a id="pl.83.6"></a><var>83.6</var>Financial Accounting and Reporting Standards (UFARS) finance code.<br/>
<a id="pl.83.7"></a><var>83.7</var>(d) For fire and life safety egress and all other projects exceeding $20,000, cited <br/>
<a id="pl.83.8"></a><var>83.8</var>under Minnesota Fire Code, a fire marshal plan review is required.<br/>
<a id="pl.83.9"></a><var>83.9</var>(e) Districts shall update project estimates with actual expenditures for each <br/>
<a id="pl.83.10"></a><var>83.10</var>fiscal year. If a project's final cost is significantly higher than originally approved, the <br/>
<a id="pl.83.11"></a><var>83.11</var>commissioner may request additional supporting information.<br/>
<a id="pl.83.12"></a><var>83.12</var>    Subd. 6c. <b>Appeals process.</b> In the event a district is denied funding approval for <br/>
<a id="pl.83.13"></a><var>83.13</var>a project the district believes complies with subdivisions 6 and 8, and is not otherwise <br/>
<a id="pl.83.14"></a><var>83.14</var>excluded, a district may appeal the decision. All such requests must be in writing. The <br/>
<a id="pl.83.15"></a><var>83.15</var>commissioner shall respond in writing. A written request must contain the following: <br/>
<a id="pl.83.16"></a><var>83.16</var>project number; description and amount; reason for denial; unresolved questions for <br/>
<a id="pl.83.17"></a><var>83.17</var>consideration; reasons for reconsideration; and a specific statement of what action the <br/>
<a id="pl.83.18"></a><var>83.18</var>district is requesting.<br/>
<a id="pl.83.19"></a><var>83.19</var>    Subd. 7. <b>Proration.</b> In the event that the health and safety aid available for any year <br/>
<a id="pl.83.20"></a><var>83.20</var>is prorated, a district having its aid prorated may levy an additional amount equal to the <br/>
<a id="pl.83.21"></a><var>83.21</var>amount not paid by the state due to proration.<br/>
<a id="pl.83.22"></a><var>83.22</var>    Subd. 8. <b>Health, safety, and environmental management cost.</b> (a) "Health, safety, <br/>
<a id="pl.83.23"></a><var>83.23</var>and environmental management" is defined in section 123B.56.<br/>
<a id="pl.83.24"></a><var>83.24</var>(b) A district's cost for health, safety, and environmental management is limited to <br/>
<a id="pl.83.25"></a><var>83.25</var>the lesser of:<br/>
<a id="pl.83.26"></a><var>83.26</var>(1) actual cost to implement their plan; or<br/>
<a id="pl.83.27"></a><var>83.27</var>(2) an amount determined by the commissioner, based on enrollment, building <br/>
<a id="pl.83.28"></a><var>83.28</var>age, and size.<br/>
<a id="pl.83.29"></a><var>83.29</var>(b) (c) The department may contract with regional service organizations, private <br/>
<a id="pl.83.30"></a><var>83.30</var>contractors, Minnesota Safety Council, or state agencies to provide management <br/>
<a id="pl.83.31"></a><var>83.31</var>assistance to school districts for health and safety capital projects. Management assistance <br/>
<a id="pl.83.32"></a><var>83.32</var>is the development of written programs for the identification, recognition and control of <br/>
<a id="pl.83.33"></a><var>83.33</var>hazards, and prioritization and scheduling of district health and safety capital projects. <br/>
<a id="pl.83.34"></a><var>83.34</var>The department commissioner shall not mandate management assistance or exclude <br/>
<a id="pl.83.35"></a><var>83.35</var>private contractors from the opportunity to provide any health and safety services to <br/>
<a id="pl.83.36"></a><var>83.36</var>school districts.<br/>
<a id="pl.84.1"></a><var>84.1</var>(c) Notwithstanding paragraph (b), the department may approve revenue, up to <br/>
<a id="pl.84.2"></a><var>84.2</var>the limit defined in paragraph (a) for districts having an approved health, safety, and <br/>
<a id="pl.84.3"></a><var>84.3</var>environmental management plan that uses district staff to accomplish coordination and <br/>
<a id="pl.84.4"></a><var>84.4</var>provided services.<br/>
<a id="pl.84.5"></a><var>84.5</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.4.2.0"></a><a id="pl.84.6"></a><var>84.6</var>    Sec. 2. <b>[126C.75] FIBER OPTIC INFRASTRUCTURE GRANT PROGRAM.</b><br/>
<a id="pl.84.7"></a><var>84.7</var>    Subdivision 1. <b>Creation of accounts.</b> Two public school fiber optic infrastructure <br/>
<a id="pl.84.8"></a><var>84.8</var>accounts are created, one in the general fund and one in the bond proceeds fund. Money <br/>
<a id="pl.84.9"></a><var>84.9</var>in these accounts may only be used for capital costs of fiber optic infrastructure for <br/>
<a id="pl.84.10"></a><var>84.10</var>eligible public school projects.<br/>
<a id="pl.84.11"></a><var>84.11</var>    Subd. 2. <b>Program purpose.</b> The fiber optic infrastructure grant program is <br/>
<a id="pl.84.12"></a><var>84.12</var>established to provide the capital investment needed to bridge the gap between the federal <br/>
<a id="pl.84.13"></a><var>84.13</var>Schools and Libraries Program of the Universal Service Fund, commonly known as <br/>
<a id="pl.84.14"></a><var>84.14</var>"E-Rate," and the total cost of fiber optic infrastructure that will better public school <br/>
<a id="pl.84.15"></a><var>84.15</var>buildings to support 21st century learning capacity at each district school.<br/>
<a id="pl.84.16"></a><var>84.16</var>    Subd. 3. <b>General eligibility; state general obligation bond funds.</b> Article XI, <br/>
<a id="pl.84.17"></a><var>84.17</var>section 5, clause (a), of the Minnesota Constitution requires that state general obligation <br/>
<a id="pl.84.18"></a><var>84.18</var>bonds be issued to finance only the acquisition or betterment of public land, buildings, and <br/>
<a id="pl.84.19"></a><var>84.19</var>other public improvements of a capital nature. The legislature has determined that many <br/>
<a id="pl.84.20"></a><var>84.20</var>fiber optic infrastructure projects will constitute betterments and capital improvements <br/>
<a id="pl.84.21"></a><var>84.21</var>within the meaning of the Minnesota Constitution and capital expenditures under generally <br/>
<a id="pl.84.22"></a><var>84.22</var>accepted accounting principles, and will be financed more efficiently and economically <br/>
<a id="pl.84.23"></a><var>84.23</var>under this section than by direct appropriations for specific projects.<br/>
<a id="pl.84.24"></a><var>84.24</var>    Subd. 4. <b>Definitions.</b> For purposes of this section:<br/>
<a id="pl.84.25"></a><var>84.25</var>(1) "school district" means an independent, common, special, or intermediate school <br/>
<a id="pl.84.26"></a><var>84.26</var>district or a charter school.<br/>
<a id="pl.84.27"></a><var>84.27</var>(2) "fiber optic infrastructure" means the land, buildings, fiber optic connection <br/>
<a id="pl.84.28"></a><var>84.28</var>cable, and end point hardware, including routers and switches. It does not include <br/>
<a id="pl.84.29"></a><var>84.29</var>computers, telephones, or cameras.<br/>
<a id="pl.84.30"></a><var>84.30</var>    Subd. 5. <b>Grant program established.</b> The commissioner shall make grants to <br/>
<a id="pl.84.31"></a><var>84.31</var>school districts for fiber optic infrastructure projects.<br/>
<a id="pl.84.32"></a><var>84.32</var>    Subd. 6. <b>Eligible costs for grants.</b> (a) "Eligible cost" for use of state general <br/>
<a id="pl.84.33"></a><var>84.33</var>obligation bond fund money means the acquisition of land or permanent easements; <br/>
<a id="pl.84.34"></a><var>84.34</var>preparation of land on which the fiber optic infrastructure will be located, including <br/>
<a id="pl.84.35"></a><var>84.35</var>demolition of structures and remediation of any hazardous conditions on the land; and <br/>
<a id="pl.85.1"></a><var>85.1</var>predesign, design, acquisition, and installation of publicly owned fiber optic infrastructure <br/>
<a id="pl.85.2"></a><var>85.2</var>in this state with a useful life of at least ten years that supports public school district <br/>
<a id="pl.85.3"></a><var>85.3</var>facility operation, administration, and instruction; the unpaid principal on debt issued by <br/>
<a id="pl.85.4"></a><var>85.4</var>the school district for a fiber optic infrastructure project, or the amount necessary to pay in <br/>
<a id="pl.85.5"></a><var>85.5</var>a lump sum all lease payments due if payment results in the school district owning the fiber <br/>
<a id="pl.85.6"></a><var>85.6</var>optic infrastructure. All uses under this paragraph must be for publicly owned property.<br/>
<a id="pl.85.7"></a><var>85.7</var>(b) "Eligible cost" for use of any other source of money will be determined by <br/>
<a id="pl.85.8"></a><var>85.8</var>limitations imposed on that source, but may include the costs of leases and reimbursement <br/>
<a id="pl.85.9"></a><var>85.9</var>of the costs of purchase and installation of fiber optic infrastructure.<br/>
<a id="pl.85.10"></a><var>85.10</var>    Subd. 7. <b>Application.</b> The commissioner must develop forms and procedures for <br/>
<a id="pl.85.11"></a><var>85.11</var>soliciting and reviewing applications for grants under this section. At a minimum, a school <br/>
<a id="pl.85.12"></a><var>85.12</var>district must include the following information in its application:<br/>
<a id="pl.85.13"></a><var>85.13</var>(1) a resolution adopted by its school board certifying that the money required to be <br/>
<a id="pl.85.14"></a><var>85.14</var>supplied by the school district to complete the project is available and committed;<br/>
<a id="pl.85.15"></a><var>85.15</var>(2) a detailed and specific description of the project and an estimate, along with <br/>
<a id="pl.85.16"></a><var>85.16</var>necessary supporting evidence, of the total costs for the project;<br/>
<a id="pl.85.17"></a><var>85.17</var>(3) an assessment of the need for and benefits of the project;<br/>
<a id="pl.85.18"></a><var>85.18</var>(4) a timeline indicating the major milestones of the project and their anticipated <br/>
<a id="pl.85.19"></a><var>85.19</var>completion dates; and<br/>
<a id="pl.85.20"></a><var>85.20</var>(5) any additional information or material the commissioner prescribes.<br/>
<a id="pl.85.21"></a><var>85.21</var>    Subd. 8. <b>Criteria for grants.</b> The commissioner must develop the criteria that will <br/>
<a id="pl.85.22"></a><var>85.22</var>be used to award grants if grant applications exceed available resources.<br/>
<a id="pl.85.23"></a><var>85.23</var>    Subd. 9. <b>Cancellation of grant.</b> If, five years after execution of a grant agreement, <br/>
<a id="pl.85.24"></a><var>85.24</var>the commissioner determines that the grantee has not proceeded in a timely manner with <br/>
<a id="pl.85.25"></a><var>85.25</var>implementation of the project funded, the commissioner must cancel the grant and the <br/>
<a id="pl.85.26"></a><var>85.26</var>grantee must repay to the commissioner all grant money paid to the grantee. Section <br/>
<a id="pl.85.27"></a><var>85.27</var>16A.642 applies to any appropriations made to the commissioner under this section that <br/>
<a id="pl.85.28"></a><var>85.28</var>have not been awarded to grantees.<br/>
<a id="pl.85.29"></a><var>85.29</var>    Subd. 10. <b>Report.</b> By January 15 of each year, the commissioner must submit to <br/>
<a id="pl.85.30"></a><var>85.30</var>the commissioner of management and budget and the chairs of the legislative committees <br/>
<a id="pl.85.31"></a><var>85.31</var>or divisions with jurisdiction over education policy, education finance, and capital <br/>
<a id="pl.85.32"></a><var>85.32</var>investment, a list of the projects that have been funded with money under this program <br/>
<a id="pl.85.33"></a><var>85.33</var>during the preceding calendar year, as well as a list of those priority projects for which state <br/>
<a id="pl.85.34"></a><var>85.34</var>bond proceeds fund appropriations will be sought during that year's legislative session.<br/>
<a id="pl.85.35"></a><var>85.35</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.3.0"></a><a id="pl.86.1"></a><var>86.1</var>    Sec. 3. <b>HEALTH AND SAFETY POLICY.</b><br/>
<a id="pl.86.2"></a><var>86.2</var>Notwithstanding Minnesota Statutes, section 123B.57, subdivision 2, a school board <br/>
<a id="pl.86.3"></a><var>86.3</var>that has not yet adopted a health and safety policy by September 30, 2010, may submit an <br/>
<a id="pl.86.4"></a><var>86.4</var>application for health and safety revenue for taxes payable in 2011 in the form and manner <br/>
<a id="pl.86.5"></a><var>86.5</var>specified by the commissioner of education.<br/>
<a id="pl.86.6"></a><var>86.6</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.0.0"></a>

<a id="bill.5.1.0"></a><a id="pl.86.9"></a><var>86.9</var>    Section 1. Minnesota Statutes 2009 Supplement, section 16A.152, subdivision 2, as <br/>
<a id="pl.86.10"></a><var>86.10</var>amended by Laws 2010, chapter 215, article 11, section 15, is amended to read:<br/>
<a id="pl.86.11"></a><var>86.11</var>    Subd. 2. <b>Additional revenues; priority.</b> (a) If on the basis of a forecast of general <br/>
<a id="pl.86.12"></a><var>86.12</var>fund revenues and expenditures, the commissioner of management and budget determines <br/>
<a id="pl.86.13"></a><var>86.13</var>that there will be a positive unrestricted budgetary general fund balance at the close of <br/>
<a id="pl.86.14"></a><var>86.14</var>the biennium, the commissioner of management and budget must allocate money to the <br/>
<a id="pl.86.15"></a><var>86.15</var>following accounts and purposes in priority order:<br/>
<a id="pl.86.16"></a><var>86.16</var>    (1) the cash flow account established in subdivision 1 until that account reaches <br/>
<a id="pl.86.17"></a><var>86.17</var>$350,000,000;<br/>
<a id="pl.86.18"></a><var>86.18</var>    (2) the budget reserve account established in subdivision 1a until that account <br/>
<a id="pl.86.19"></a><var>86.19</var>reaches $653,000,000;<br/>
<a id="pl.86.20"></a><var>86.20</var>    (3) the amount necessary to increase the aid payment schedule for school district <br/>
<a id="pl.86.21"></a><var>86.21</var>aids and credits payments in section 
         <statute_ref>127A.45</statute_ref> to not more than 90 percent rounded to the <br/>
<a id="pl.86.22"></a><var>86.22</var>nearest tenth of a percent without exceeding the amount available and with any remaining <br/>
<a id="pl.86.23"></a><var>86.23</var>funds deposited in the budget reserve;<br/>
<a id="pl.86.24"></a><var>86.24</var>    (4) the amount necessary to restore all or a portion of the net aid reductions under <br/>
<a id="pl.86.25"></a><var>86.25</var>section 
         <statute_ref>127A.441</statute_ref> and to reduce the property tax revenue recognition shift under section <br/>
<statute_ref><a id="pl.86.26"></a><var>86.26</var>123B.75, subdivision 5
         </statute_ref>, paragraph (b), and Laws 2003, First Special Session chapter 9, <br/>
<a id="pl.86.27"></a><var>86.27</var>article 5, section 34, as amended by Laws 2003, First Special Session chapter 23, section <br/>
<a id="pl.86.28"></a><var>86.28</var>20, by the same amount; <br/>
<a id="pl.86.29"></a><var>86.29</var>(5) to the state airports fund, the amount necessary to restore the amount transferred <br/>
<a id="pl.86.30"></a><var>86.30</var>from the state airports fund under Laws 2008, chapter 363, article 11, section 3, <br/>
<a id="pl.86.31"></a><var>86.31</var>subdivision 5; and<br/>
<a id="pl.86.32"></a><var>86.32</var>(6) to the fire safety account in the special revenue fund, the amount necessary to <br/>
<a id="pl.86.33"></a><var>86.33</var>restore transfers from the account to the general fund made in Laws 2010.<br/>
<a id="pl.87.1"></a><var>87.1</var>    (b) The amounts necessary to meet the requirements of this section are appropriated <br/>
<a id="pl.87.2"></a><var>87.2</var>from the general fund within two weeks after the forecast is released or, in the case of <br/>
<a id="pl.87.3"></a><var>87.3</var>transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations <br/>
<a id="pl.87.4"></a><var>87.4</var>schedules otherwise established in statute.<br/>
<a id="pl.87.5"></a><var>87.5</var>    (c) The commissioner of management and budget shall certify the total dollar <br/>
<a id="pl.87.6"></a><var>87.6</var>amount of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of <br/>
<a id="pl.87.7"></a><var>87.7</var>education. The commissioner of education shall increase the aid payment percentage and <br/>
<a id="pl.87.8"></a><var>87.8</var>reduce the property tax shift percentage by these amounts and apply those reductions to <br/>
<a id="pl.87.9"></a><var>87.9</var>the current fiscal year and thereafter.<br/>
<a id="pl.87.10"></a><var>87.10</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.2.0"></a><a id="pl.87.11"></a><var>87.11</var>    Sec. 2. Minnesota Statutes 2008, section 123B.12, is amended to read:<br/>
<a id="pl.87.12"></a><var>87.12</var><b>123B.12 INSUFFICIENT FUNDS TO PAY ORDERS.</b><br/>
<a id="pl.87.13"></a><var>87.13</var>(a) In the event that a district or a cooperative unit defined in section 
         <statute_ref>123A.24, <br/>
<a id="pl.87.14"></a><var>87.14</var>subdivision 2
         </statute_ref>, has insufficient funds to pay its usual lawful current obligations, subject to <br/>
<a id="pl.87.15"></a><var>87.15</var>section 
         <statute_ref>471.69</statute_ref>, the board may enter into agreements with banks or any person to take its <br/>
<a id="pl.87.16"></a><var>87.16</var>orders. Any order drawn, after having been presented to the treasurer for payment and not <br/>
<a id="pl.87.17"></a><var>87.17</var>paid for want of funds shall be endorsed by the treasurer by putting on the back thereof <br/>
<a id="pl.87.18"></a><var>87.18</var>the words "not paid for want of funds," giving the date of endorsement and signed by the <br/>
<a id="pl.87.19"></a><var>87.19</var>treasurer. A record of such presentment, nonpayment and endorsement shall be made by <br/>
<a id="pl.87.20"></a><var>87.20</var>the treasurer. The treasurer shall serve a written notice upon the payee or the payee's <br/>
<a id="pl.87.21"></a><var>87.21</var>assignee, personally, or by mail, when the treasurer is prepared to pay such orders. The <br/>
<a id="pl.87.22"></a><var>87.22</var>notice may be directed to the payee or the payee's assignee at the address given in writing <br/>
<a id="pl.87.23"></a><var>87.23</var>by such payee or assignee to such treasurer, at any time prior to the service of such notice. <br/>
<a id="pl.87.24"></a><var>87.24</var>No order shall draw any interest if such address is not given when the same is unknown to <br/>
<a id="pl.87.25"></a><var>87.25</var>the treasurer, and no order shall draw any interest after the service of such notice.  <br/>
<a id="pl.87.26"></a><var>87.26</var>(b) A district may enter, subject to section 
         <statute_ref>471.69</statute_ref>, into a an unsecured line of credit <br/>
<a id="pl.87.27"></a><var>87.27</var>agreement with a financial institution. The amount of credit available must not exceed 95 <br/>
<a id="pl.87.28"></a><var>87.28</var>380 percent of average expenditure per month of operating expenditures in the previous <br/>
<a id="pl.87.29"></a><var>87.29</var>fiscal year. Any amount advanced must be repaid no later than 45 120 days after the <br/>
<a id="pl.87.30"></a><var>87.30</var>day of advancement.<br/>
<a id="pl.87.31"></a><var>87.31</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.3.0"></a><a id="pl.87.32"></a><var>87.32</var>    Sec. 3. Minnesota Statutes 2008, section 123B.75, is amended by adding a subdivision <br/>
<a id="pl.87.33"></a><var>87.33</var>to read:<br/>
<a id="pl.88.1"></a><var>88.1</var>    Subd. 1a. <b>Definition.</b> For the purpose of this section, "school district tax settlement <br/>
<a id="pl.88.2"></a><var>88.2</var>revenue" means the current, delinquent, and manufactured home property tax receipts <br/>
<a id="pl.88.3"></a><var>88.3</var>collected by the county and distributed to the school district.<br/>
<a id="pl.88.4"></a><var>88.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.88.5"></a><var>88.5</var>and applies to fiscal years 2010 and later.<br/>
<br/>
<a id="bill.5.4.0"></a><a id="pl.88.6"></a><var>88.6</var>    Sec. 4. Minnesota Statutes 2008, section 123B.75, subdivision 5, is amended to read:<br/>
<a id="pl.88.7"></a><var>88.7</var>    Subd. 5. <b>Levy recognition.</b> (a) "School district tax settlement revenue" means the <br/>
<a id="pl.88.8"></a><var>88.8</var>current, delinquent, and manufactured home property tax receipts collected by the county <br/>
<a id="pl.88.9"></a><var>88.9</var>and distributed to the school district.<br/>
<a id="pl.88.10"></a><var>88.10</var>(b) For fiscal year 2004 and later years 2009 and 2010, in June of each year, the <br/>
<a id="pl.88.11"></a><var>88.11</var>school district must recognize as revenue, in the fund for which the levy was made, the <br/>
<a id="pl.88.12"></a><var>88.12</var>lesser of:<br/>
<a id="pl.88.13"></a><var>88.13</var>(1) the sum of May, June, and July school district tax settlement revenue received in <br/>
<a id="pl.88.14"></a><var>88.14</var>that calendar year, plus general education aid according to section 
         <statute_ref>126C.13, subdivision <br/>
<a id="pl.88.15"></a><var>88.15</var>4
         </statute_ref>, received in July and August of that calendar year; or<br/>
<a id="pl.88.16"></a><var>88.16</var>(2) the sum of:<br/>
<a id="pl.88.17"></a><var>88.17</var>(i) 31 percent of the referendum levy certified according to section 
         <statute_ref>126C.17</statute_ref>, in <br/>
<a id="pl.88.18"></a><var>88.18</var>calendar year 2000; and<br/>
<a id="pl.88.19"></a><var>88.19</var>(ii) the entire amount of the levy certified in the prior calendar year according to <br/>
<a id="pl.88.20"></a><var>88.20</var>section 
         <statute_ref>124D.86, subdivision 4</statute_ref>, for school districts receiving revenue under sections <br/>
<statute_ref><a id="pl.88.21"></a><var>88.21</var>124D.86, subdivision 3
         </statute_ref>, clauses (1), (2), and (3); 
         <statute_ref>126C.41, subdivisions 1, 2, paragraph <br/>
<a id="pl.88.22"></a><var>88.22</var>(a), and 3
         </statute_ref>, paragraphs (b), (c), and (d); 
         <statute_ref>126C.43, subdivision 2</statute_ref>; 
         <statute_ref>126C.457</statute_ref>; and 
         <statute_ref>126C.48, <br/>
<a id="pl.88.23"></a><var>88.23</var>subdivision 6
         </statute_ref>; plus<br/>
<a id="pl.88.24"></a><var>88.24</var>(iii) zero percent of the amount of the levy certified in the prior calendar year for the <br/>
<a id="pl.88.25"></a><var>88.25</var>school district's general and community service funds, plus or minus auditor's adjustments, <br/>
<a id="pl.88.26"></a><var>88.26</var>not including the levy portions that are assumed by the state, that remains after subtracting <br/>
<a id="pl.88.27"></a><var>88.27</var>the referendum levy certified according to section 126C.17 and the amount recognized <br/>
<a id="pl.88.28"></a><var>88.28</var>according to item (ii).<br/>
<a id="pl.88.29"></a><var>88.29</var>(b) For fiscal year 2011 and later years, in June of each year, the school district must <br/>
<a id="pl.88.30"></a><var>88.30</var>recognize as revenue, in the fund for which the levy was made, the lesser of:<br/>
<a id="pl.88.31"></a><var>88.31</var>(1) the sum of May, June, and July school district tax settlement revenue received in <br/>
<a id="pl.88.32"></a><var>88.32</var>that calendar year, plus general education aid according to section 126C.13, subdivision <br/>
<a id="pl.88.33"></a><var>88.33</var>4, received in July and August of that calendar year; or<br/>
<a id="pl.88.34"></a><var>88.34</var>(2) the sum of:<br/>
<a id="pl.89.1"></a><var>89.1</var>(i) the greater of 47.8 percent of the referendum levy certified according to section <br/>
<a id="pl.89.2"></a><var>89.2</var>126C.17, in the prior calendar year or 31 percent of the referendum levy certified <br/>
<a id="pl.89.3"></a><var>89.3</var>according to section 126C.17, in calendar year 2000; plus<br/>
<a id="pl.89.4"></a><var>89.4</var>(ii) the entire amount of the levy certified in the prior calendar year according to <br/>
<a id="pl.89.5"></a><var>89.5</var>section 124D.86, subdivision 4, for school districts receiving revenue under sections <br/>
<a id="pl.89.6"></a><var>89.6</var>124D.86, subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, and 3, <br/>
<a id="pl.89.7"></a><var>89.7</var>paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48, subdivision <br/>
<a id="pl.89.8"></a><var>89.8</var>6; plus<br/>
<a id="pl.89.9"></a><var>89.9</var>(iii) 47.8 percent of the amount of the levy certified in the prior calendar year for the <br/>
<a id="pl.89.10"></a><var>89.10</var>school district's general and community service funds, plus or minus auditor's adjustments, <br/>
<a id="pl.89.11"></a><var>89.11</var>not including the levy portions that are assumed by the state, that remains after subtracting <br/>
<a id="pl.89.12"></a><var>89.12</var>the referendum levy certified according to section 126C.17 and the amount recognized <br/>
<a id="pl.89.13"></a><var>89.13</var>according to clause (ii).<br/>
<br/>
<a id="bill.5.5.0"></a><a id="pl.89.14"></a><var>89.14</var>    Sec. 5. Minnesota Statutes 2008, section 126C.54, is amended to read:<br/>
<a id="pl.89.15"></a><var>89.15</var><b>126C.54 REPAYMENT; MATURITY DATE OF CERTIFICATES; INTEREST.</b><br/>
<a id="pl.89.16"></a><var>89.16</var>(a) The proceeds of the current tax levies and future state aid receipts or other school <br/>
<a id="pl.89.17"></a><var>89.17</var>funds which may become available must be applied to the extent necessary to repay <br/>
<a id="pl.89.18"></a><var>89.18</var>such certificates and the full faith and credit of the district shall be pledged to payment <br/>
<a id="pl.89.19"></a><var>89.19</var>of the certificates. Certificates issued in anticipation of receipt of aids shall mature not <br/>
<a id="pl.89.20"></a><var>89.20</var>later than the anticipated date of receipt of the aids as estimated by the commissioner, but <br/>
<a id="pl.89.21"></a><var>89.21</var>in no event later than three months after the close of the school year in which issued. <br/>
<a id="pl.89.22"></a><var>89.22</var>Certificates issued in anticipation of receipt of taxes shall mature not later than the <br/>
<a id="pl.89.23"></a><var>89.23</var>anticipated date of receipt in full of the taxes, but in no event later than three months after <br/>
<a id="pl.89.24"></a><var>89.24</var>the close of the calendar year in which issued. The certificates must be sold at not less <br/>
<a id="pl.89.25"></a><var>89.25</var>than par. The certificates must bear interest after maturity until paid at the rate they bore <br/>
<a id="pl.89.26"></a><var>89.26</var>before maturity and any interest accruing before or after maturity must be paid from <br/>
<a id="pl.89.27"></a><var>89.27</var>any available school funds.<br/>
<a id="pl.89.28"></a><var>89.28</var>(b) Notwithstanding any contrary provision in paragraph (a), if the certificates are <br/>
<a id="pl.89.29"></a><var>89.29</var>issued as taxable obligations on which the interest is includable in gross income for federal <br/>
<a id="pl.89.30"></a><var>89.30</var>income tax purposes, certificates issued in anticipation of receipt of aids shall mature not <br/>
<a id="pl.89.31"></a><var>89.31</var>later than 12 months after the close of the school year in which issued and certificates <br/>
<a id="pl.89.32"></a><var>89.32</var>issued in anticipation of receipt of taxes shall mature not later than 12 months after the <br/>
<a id="pl.89.33"></a><var>89.33</var>close of the calendar year in which issued. Any certificate issued under this section with a <br/>
<a id="pl.89.34"></a><var>89.34</var>maturity in excess of 12 months must be repaid with money from the general fund.<br/>
<br/>
<a id="bill.5.6.0"></a><a id="pl.90.1"></a><var>90.1</var>    Sec. 6. Minnesota Statutes 2008, section 127A.42, subdivision 2, is amended to read:<br/>
<a id="pl.90.2"></a><var>90.2</var>    Subd. 2. <b>Violations of law.</b> The commissioner may reduce or withhold the district's <br/>
<a id="pl.90.3"></a><var>90.3</var>state aid for any school year whenever the board of the district authorizes or permits <br/>
<a id="pl.90.4"></a><var>90.4</var>violations of law within the district by:<br/>
<a id="pl.90.5"></a><var>90.5</var>(1) employing a teacher who does not hold a valid teaching license or permit in a <br/>
<a id="pl.90.6"></a><var>90.6</var>public school;<br/>
<a id="pl.90.7"></a><var>90.7</var>(2) noncompliance with a mandatory rule of general application promulgated by the <br/>
<a id="pl.90.8"></a><var>90.8</var>commissioner in accordance with statute, unless special circumstances make enforcement <br/>
<a id="pl.90.9"></a><var>90.9</var>inequitable, impose an extraordinary hardship on the district, or the rule is contrary to <br/>
<a id="pl.90.10"></a><var>90.10</var>the district's best interests;<br/>
<a id="pl.90.11"></a><var>90.11</var>(3) the district's continued performance of a contract made for the rental of rooms <br/>
<a id="pl.90.12"></a><var>90.12</var>or buildings for school purposes or for the rental of any facility owned or operated by or <br/>
<a id="pl.90.13"></a><var>90.13</var>under the direction of any private organization, if the contract has been disapproved, the <br/>
<a id="pl.90.14"></a><var>90.14</var>time for review of the determination of disapproval has expired, and no proceeding for <br/>
<a id="pl.90.15"></a><var>90.15</var>review is pending;<br/>
<a id="pl.90.16"></a><var>90.16</var>(4) any practice which is a violation of sections 1 and 2 of article 13 of the <br/>
<a id="pl.90.17"></a><var>90.17</var>Constitution of the state of Minnesota;<br/>
<a id="pl.90.18"></a><var>90.18</var>(5) failure to reasonably provide for a resident pupil's school attendance under <br/>
<a id="pl.90.19"></a><var>90.19</var>Minnesota Statutes;<br/>
<a id="pl.90.20"></a><var>90.20</var>(6) noncompliance with state laws prohibiting discrimination because of race, <br/>
<a id="pl.90.21"></a><var>90.21</var>color, creed, religion, national origin, sex, age, marital status, status with regard to <br/>
<a id="pl.90.22"></a><var>90.22</var>public assistance or disability, as defined in sections 
         <statute_ref>363A.08</statute_ref> to 
         <statute_ref>363A.19</statute_ref> and 
         <statute_ref>363A.28, <br/>
<a id="pl.90.23"></a><var>90.23</var>subdivision 10
         </statute_ref>; or <br/>
<a id="pl.90.24"></a><var>90.24</var>(7) using funds contrary to the statutory purpose of the funds.<br/>
<a id="pl.90.25"></a><var>90.25</var>The reduction or withholding must be made in the amount and upon the procedure <br/>
<a id="pl.90.26"></a><var>90.26</var>provided in this section, or, in the case of the violation stated in clause (1), upon the <br/>
<a id="pl.90.27"></a><var>90.27</var>procedure provided in section 127A.43.<br/>
<a id="pl.90.28"></a><var>90.28</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.5.7.0"></a><a id="pl.90.29"></a><var>90.29</var>    Sec. 7. Minnesota Statutes 2008, section 127A.43, is amended to read:<br/>
<a id="pl.90.30"></a><var>90.30</var><b>127A.43 DISTRICT EMPLOYMENT OF UNLICENSED TEACHERS; AID </b><br/>
<a id="pl.90.31"></a><var>90.31</var><b>REDUCTION.</b><br/>
<a id="pl.90.32"></a><var>90.32</var>When a district employs one or more teachers who do not hold a valid teaching <br/>
<a id="pl.90.33"></a><var>90.33</var>license, state aid shall be withheld reduced in the proportion that the number of such <br/>
<a id="pl.90.34"></a><var>90.34</var>teachers is to the total number of teachers employed by the district, multiplied by 60 <br/>
<a id="pl.91.1"></a><var>91.1</var>percent of the basic revenue, as defined in section 
         <statute_ref>126C.10, subdivision 2</statute_ref>, of the district <br/>
<a id="pl.91.2"></a><var>91.2</var>for the year in which the employment occurred.  <br/>
<a id="pl.91.3"></a><var>91.3</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.5.8.0"></a><a id="pl.91.4"></a><var>91.4</var>    Sec. 8. Minnesota Statutes 2008, section 127A.441, is amended to read:<br/>
<a id="pl.91.5"></a><var>91.5</var><b>127A.441 AID REDUCTION; LEVY REVENUE RECOGNITION CHANGE.</b><br/>
<a id="pl.91.6"></a><var>91.6</var>    Each year, the state aids payable to any school district for that fiscal year that are <br/>
<a id="pl.91.7"></a><var>91.7</var>recognized as revenue in the school district's general and community service funds shall <br/>
<a id="pl.91.8"></a><var>91.8</var>be adjusted by an amount equal to (1) the amount the district recognized as revenue for the <br/>
<a id="pl.91.9"></a><var>91.9</var>prior fiscal year pursuant to section 
         <statute_ref>123B.75, subdivision 5</statute_ref>, paragraph (a) or (b), minus (2) <br/>
<a id="pl.91.10"></a><var>91.10</var>the amount the district recognized as revenue for the current fiscal year pursuant to section <br/>
<statute_ref><a id="pl.91.11"></a><var>91.11</var>123B.75, subdivision 5
         </statute_ref>, paragraph (a) or (b). For purposes of making the aid adjustments <br/>
<a id="pl.91.12"></a><var>91.12</var>under this section, the amount the district recognizes as revenue for either the prior fiscal <br/>
<a id="pl.91.13"></a><var>91.13</var>year or the current fiscal year pursuant to section 
         <statute_ref>123B.75, subdivision 5</statute_ref>, paragraph (b), <br/>
<a id="pl.91.14"></a><var>91.14</var>shall not include any amount levied pursuant to section 
         <statute_ref>124D.86, subdivision 4</statute_ref>, for school <br/>
<a id="pl.91.15"></a><var>91.15</var>districts receiving revenue under sections 
         <statute_ref>124D.86, subdivision 3</statute_ref>, clauses (1), (2), and (3); <br/>
<statute_ref><a id="pl.91.16"></a><var>91.16</var>126C.41, subdivisions 1, 2, and 3
         </statute_ref>, paragraphs (b), (c), and (d); 
         <statute_ref>126C.43, subdivision 2</statute_ref>; <br/>
<statute_ref><a id="pl.91.17"></a><var>91.17</var>126C.457
         </statute_ref>; and 
         <statute_ref>126C.48, subdivision 6</statute_ref>. Payment from the permanent school fund shall not <br/>
<a id="pl.91.18"></a><var>91.18</var>be adjusted pursuant to this section. The school district shall be notified of the amount of <br/>
<a id="pl.91.19"></a><var>91.19</var>the adjustment made to each payment pursuant to this section. <br/>
<a id="pl.91.20"></a><var>91.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.91.21"></a><var>91.21</var>and applies to fiscal years 2010 and later.<br/>
<br/>
<a id="bill.5.9.0"></a><a id="pl.91.22"></a><var>91.22</var>    Sec. 9. Minnesota Statutes 2008, section 127A.45, subdivision 2, is amended to read:<br/>
<a id="pl.91.23"></a><var>91.23</var>    Subd. 2. <b>Definitions.</b> (a) The term "Other district receipts" means payments by <br/>
<a id="pl.91.24"></a><var>91.24</var>county treasurers pursuant to section 
         <statute_ref>276.10</statute_ref>, apportionments from the school endowment <br/>
<a id="pl.91.25"></a><var>91.25</var>fund pursuant to section 
         <statute_ref>127A.33</statute_ref>, apportionments by the county auditor pursuant to <br/>
<a id="pl.91.26"></a><var>91.26</var>section 
         <statute_ref>127A.34, subdivision 2</statute_ref>, and payments to school districts by the commissioner of <br/>
<a id="pl.91.27"></a><var>91.27</var>revenue pursuant to chapter 298.<br/>
<a id="pl.91.28"></a><var>91.28</var>(b) The term "Cumulative amount guaranteed" means the product of<br/>
<a id="pl.91.29"></a><var>91.29</var>(1) the cumulative disbursement percentage shown in subdivision 3; times<br/>
<a id="pl.91.30"></a><var>91.30</var>(2) the sum of<br/>
<a id="pl.91.31"></a><var>91.31</var>(i) the current year aid payment percentage of the estimated aid and credit <br/>
<a id="pl.91.32"></a><var>91.32</var>entitlements paid according to subdivision 13; plus<br/>
<a id="pl.91.33"></a><var>91.33</var>(ii) 100 percent of the entitlements paid according to subdivisions 11 and 12; plus<br/>
<a id="pl.92.1"></a><var>92.1</var>(iii) the other district receipts.<br/>
<a id="pl.92.2"></a><var>92.2</var>(c) The term "Payment date" means the date on which state payments to districts <br/>
<a id="pl.92.3"></a><var>92.3</var>are made by the electronic funds transfer method. If a payment date falls on a Saturday, <br/>
<a id="pl.92.4"></a><var>92.4</var>a Sunday, or a weekday which is a legal holiday, the payment shall be made on the <br/>
<a id="pl.92.5"></a><var>92.5</var>immediately preceding business day. The commissioner may make payments on dates <br/>
<a id="pl.92.6"></a><var>92.6</var>other than those listed in subdivision 3, but only for portions of payments from any <br/>
<a id="pl.92.7"></a><var>92.7</var>preceding payment dates which could not be processed by the electronic funds transfer <br/>
<a id="pl.92.8"></a><var>92.8</var>method due to documented extenuating circumstances.<br/>
<a id="pl.92.9"></a><var>92.9</var>(d) The current year aid payment percentage equals 90 73.<br/>
<a id="pl.92.10"></a><var>92.10</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.92.11"></a><var>92.11</var>and applies to fiscal years 2010 and later.<br/>
<br/>
<a id="bill.5.10.0"></a><a id="pl.92.12"></a><var>92.12</var>    Sec. 10. Minnesota Statutes 2008, section 127A.45, subdivision 3, is amended to read:<br/>
<a id="pl.92.13"></a><var>92.13</var>    Subd. 3. <b>Payment dates and percentages.</b> (a) For fiscal year 2004 and later, The <br/>
<a id="pl.92.14"></a><var>92.14</var>commissioner shall pay to a district on the dates indicated an amount computed as follows: <br/>
<a id="pl.92.15"></a><var>92.15</var>the cumulative amount guaranteed minus the sum of (a) (1) the district's other district <br/>
<a id="pl.92.16"></a><var>92.16</var>receipts through the current payment, and (b) (2) the aid and credit payments through the <br/>
<a id="pl.92.17"></a><var>92.17</var>immediately preceding payment. For purposes of this computation, the payment dates and <br/>
<a id="pl.92.18"></a><var>92.18</var>the cumulative disbursement percentages are as follows:<br/>
<table>
<col width="50px"/>
<col width="12.5"/>
<col width="32.5"/>
<col width="30"/>
<tr>
<td><a id="pl.92.19"></a><var>92.19</var><br/>
</td>
<td></td>
<td>Payment date<br/>
</td>
<td align="right">Percentage<br/>
</td>
</tr>
<tr>
<td><a id="pl.92.20"></a><var>92.20</var><br/>
</td>
<td>Payment 1<br/>
</td>
<td>July 15:<br/>
</td>
<td align="right">5.5<br/>
</td>
</tr>
<tr>
<td><a id="pl.92.21"></a><var>92.21</var><br/>
</td>
<td>Payment 2<br/>
</td>
<td>July 30:<br/>
</td>
<td align="right">8.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.92.22"></a><var>92.22</var><br/>
</td>
<td>Payment 3<br/>
</td>
<td>August 15:<br/>
</td>
<td align="right">17.5<br/>
</td>
</tr>
<tr>
<td><a id="pl.92.23"></a><var>92.23</var><br/>
</td>
<td>Payment 4<br/>
</td>
<td>August 30:<br/>
</td>
<td align="right">20.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.92.24"></a><var>92.24</var><br/>
</td>
<td>Payment 5<br/>
</td>
<td>September 15:<br/>
</td>
<td align="right">22.5<br/>
</td>
</tr>
<tr>
<td><a id="pl.92.25"></a><var>92.25</var><br/>
</td>
<td>Payment 6<br/>
</td>
<td>September 30:<br/>
</td>
<td align="right">25.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.92.26"></a><var>92.26</var><br/>
</td>
<td>Payment 7<br/>
</td>
<td>October 15:<br/>
</td>
<td align="right">27.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.92.27"></a><var>92.27</var><br/>
</td>
<td>Payment 8<br/>
</td>
<td>October 30:<br/>
</td>
<td align="right">30.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.92.28"></a><var>92.28</var><br/>
</td>
<td>Payment 9<br/>
</td>
<td>November 15:<br/>
</td>
<td align="right">32.5<br/>
</td>
</tr>
<tr>
<td><a id="pl.92.29"></a><var>92.29</var><br/>
</td>
<td>Payment 10<br/>
</td>
<td>November 30:<br/>
</td>
<td align="right">36.5<br/>
</td>
</tr>
<tr>
<td><a id="pl.92.30"></a><var>92.30</var><br/>
</td>
<td>Payment 11<br/>
</td>
<td>December 15:<br/>
</td>
<td align="right">42.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.92.31"></a><var>92.31</var><br/>
</td>
<td>Payment 12<br/>
</td>
<td>December 30:<br/>
</td>
<td align="right">45.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.92.32"></a><var>92.32</var><br/>
</td>
<td>Payment 13<br/>
</td>
<td>January 15:<br/>
</td>
<td align="right">50.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.92.33"></a><var>92.33</var><br/>
</td>
<td>Payment 14<br/>
</td>
<td>January 30:<br/>
</td>
<td align="right">54.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.92.34"></a><var>92.34</var><br/>
</td>
<td>Payment 15<br/>
</td>
<td>February 15:<br/>
</td>
<td align="right">58.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.92.35"></a><var>92.35</var><br/>
</td>
<td>Payment 16<br/>
</td>
<td>February 28:<br/>
</td>
<td align="right">63.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.92.36"></a><var>92.36</var><br/>
</td>
<td>Payment 17<br/>
</td>
<td>March 15:<br/>
</td>
<td align="right">68.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.92.37"></a><var>92.37</var><br/>
</td>
<td>Payment 18<br/>
</td>
<td>March 30:<br/>
</td>
<td align="right">74.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.92.38"></a><var>92.38</var><br/>
</td>
<td>Payment 19<br/>
</td>
<td>April 15:<br/>
</td>
<td align="right">78.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.93.1"></a><var>93.1</var><br/>
</td>
<td>Payment 20<br/>
</td>
<td>April 30:<br/>
</td>
<td align="right">85.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.93.2"></a><var>93.2</var><br/>
</td>
<td>Payment 21<br/>
</td>
<td>May 15:<br/>
</td>
<td align="right">90.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.93.3"></a><var>93.3</var><br/>
</td>
<td>Payment 22<br/>
</td>
<td>May 30:<br/>
</td>
<td align="right">95.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.93.4"></a><var>93.4</var><br/>
</td>
<td>Payment 23<br/>
</td>
<td>June 20:<br/>
</td>
<td align="right">100.0<br/>
</td>
</tr>
</table><a id="pl.93.5"></a><var>93.5</var>(b) In addition to the amounts paid under paragraph (a), for fiscal year 2004, the <br/>
<a id="pl.93.6"></a><var>93.6</var>commissioner shall pay to a district on the dates indicated an amount computed as follows:<br/>
<table>
<col width="50px"/>
<col width="12.5"/>
<col width="52.5"/>
<tr>
<td><a id="pl.93.7"></a><var>93.7</var><br/>
<a id="pl.93.8"></a><var>93.8</var><br/>
</td>
<td valign="top">Payment 3<br/>
</td>
<td valign="top">August 15: the final adjustment for the prior fiscal year for the state paid <br/>
property tax credits established in section 
<statute_ref>273.1392<br/>
</statute_ref>
</td>
</tr>
<tr>
<td><a id="pl.93.9"></a><var>93.9</var><br/>
<a id="pl.93.10"></a><var>93.10</var><br/>
</td>
<td valign="top">Payment 4<br/>
</td>
<td valign="top">August 30: one-third of the final adjustment for the prior fiscal year for <br/>
all aid entitlements except state paid property tax credits<br/>
</td>
</tr>
<tr>
<td><a id="pl.93.11"></a><var>93.11</var><br/>
<a id="pl.93.12"></a><var>93.12</var><br/>
</td>
<td valign="top">Payment 6<br/>
</td>
<td valign="top">September 30: one-third of the final adjustment for the prior fiscal year <br/>
for all aid entitlements except state paid property tax credits<br/>
</td>
</tr>
<tr>
<td><a id="pl.93.13"></a><var>93.13</var><br/>
<a id="pl.93.14"></a><var>93.14</var><br/>
</td>
<td valign="top">Payment 8<br/>
</td>
<td valign="top">October 30: one-third of the final adjustment for the prior fiscal year for <br/>
all aid entitlements except state paid property tax credits<br/>
</td>
</tr>
</table><a id="pl.93.15"></a><var>93.15</var>(c) (b) In addition to the amounts paid under paragraph (a), for fiscal year 2005 and <br/>
<a id="pl.93.16"></a><var>93.16</var>later, the commissioner shall pay to a district on the dates indicated an amount computed <br/>
<a id="pl.93.17"></a><var>93.17</var>as follows:<br/>
<table>
<col width="50px"/>
<col width="12.5"/>
<col width="52.5"/>
<tr>
<td><a id="pl.93.18"></a><var>93.18</var><br/>
<a id="pl.93.19"></a><var>93.19</var><br/>
</td>
<td valign="top">Payment 3<br/>
</td>
<td valign="top">August 15: the final adjustment for the prior fiscal year for the state paid <br/>
                  		property tax credits established in section 
                  <statute_ref>273.1392<br/>
</statute_ref>
</td>
</tr>
<tr>
<td><a id="pl.93.20"></a><var>93.20</var><br/>
<a id="pl.93.21"></a><var>93.21</var><br/>
</td>
<td valign="top">Payment 4<br/>
</td>
<td valign="top">August 30: 30 percent of the final adjustment for the prior fiscal year for <br/>
                  		all aid entitlements except state paid property tax credits<br/>
</td>
</tr>
<tr>
<td><a id="pl.93.22"></a><var>93.22</var><br/>
<a id="pl.93.23"></a><var>93.23</var><br/>
</td>
<td valign="top">Payment 6<br/>
</td>
<td valign="top">September 30: 40 percent of the final adjustment for the prior fiscal year <br/>
                  		for all aid entitlements except state paid property tax credits<br/>
</td>
</tr>
<tr>
<td><a id="pl.93.24"></a><var>93.24</var><br/>
<a id="pl.93.25"></a><var>93.25</var><br/>
</td>
<td valign="top">Payment 8<br/>
</td>
<td valign="top">October 30: 30 percent of the final adjustment for the prior fiscal year <br/>
                  		for all aid entitlements except state paid property tax credits<br/>
</td>
</tr>
</table><a id="pl.93.26"></a><var>93.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.93.27"></a><var>93.27</var>and applies to fiscal years 2010 and later.<br/>
<br/>
<a id="bill.5.11.0"></a><a id="pl.93.28"></a><var>93.28</var>    Sec. 11. Minnesota Statutes 2008, section 127A.45, is amended by adding a <br/>
<a id="pl.93.29"></a><var>93.29</var>subdivision to read:<br/>
<a id="pl.93.30"></a><var>93.30</var>    Subd. 6a. <b>Cash flow adjustment.</b> The board of directors of any charter school <br/>
<a id="pl.93.31"></a><var>93.31</var>serving fewer than 150 students where the percentage of students eligible for special <br/>
<a id="pl.93.32"></a><var>93.32</var>education services equals 100 percent of the charter school's total enrollment may request <br/>
<a id="pl.93.33"></a><var>93.33</var>that the commissioner of education accelerate the school's cash flow under this section. <br/>
<a id="pl.93.34"></a><var>93.34</var>The commissioner must approve a properly submitted request within 30 days of its receipt. <br/>
<a id="pl.93.35"></a><var>93.35</var>The commissioner must accelerate the school's regular special education aid payments <br/>
<a id="pl.93.36"></a><var>93.36</var>according to the schedule in the school's request and modify the payments to the school <br/>
<a id="pl.93.37"></a><var>93.37</var>under subdivision 3 accordingly. A school must not receive current payments of regular <br/>
<a id="pl.93.38"></a><var>93.38</var>special education aid exceeding 90 percent of its estimated aid entitlement for the fiscal <br/>
<a id="pl.94.1"></a><var>94.1</var>year. The commissioner must delay the special education aid payments to all other school <br/>
<a id="pl.94.2"></a><var>94.2</var>districts and charter schools in proportion to each district or charter school's total share <br/>
<a id="pl.94.3"></a><var>94.3</var>of regular special education aid such that the overall aid payment savings from the aid <br/>
<a id="pl.94.4"></a><var>94.4</var>payment shift remains unchanged for any fiscal year. <br/>
<a id="pl.94.5"></a><var>94.5</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.94.6"></a><var>94.6</var>and applies to school district or charter school payments made on or after that date.<br/>
<br/>
<a id="bill.5.12.0"></a><a id="pl.94.7"></a><var>94.7</var>    Sec. 12. Minnesota Statutes 2008, section 127A.45, is amended by adding a <br/>
<a id="pl.94.8"></a><var>94.8</var>subdivision to read:<br/>
<a id="pl.94.9"></a><var>94.9</var>    Subd. 7b. <b>Advance final payment.</b> (a) Notwithstanding subdivisions 3 and 7, <br/>
<a id="pl.94.10"></a><var>94.10</var>a school district or charter school exceeding its expenditure limitations under section <br/>
<a id="pl.94.11"></a><var>94.11</var>123B.83 as of June 30 of the prior fiscal year may receive a portion of its final payment <br/>
<a id="pl.94.12"></a><var>94.12</var>for the current fiscal year on June 20, if requested by the district or charter school. The <br/>
<a id="pl.94.13"></a><var>94.13</var>amount paid under this subdivision must not exceed the lesser of:<br/>
<a id="pl.94.14"></a><var>94.14</var>(1) the difference between 90 percent and the current year payment percentage in <br/>
<a id="pl.94.15"></a><var>94.15</var>subdivision 2, paragraph (d), in the current fiscal year times the sum of the district or <br/>
<a id="pl.94.16"></a><var>94.16</var>charter school's general education aid plus the aid adjustment in section 127A.50 for <br/>
<a id="pl.94.17"></a><var>94.17</var>the current fiscal year; or<br/>
<a id="pl.94.18"></a><var>94.18</var>(2) the amount by which the district's or charter school's net negative unreserved <br/>
<a id="pl.94.19"></a><var>94.19</var>general fund balance as of June 30 of the prior fiscal year exceeds 2.5 percent of the <br/>
<a id="pl.94.20"></a><var>94.20</var>district or charter school's expenditures for that fiscal year.<br/>
<a id="pl.94.21"></a><var>94.21</var>(b) The state total advance final payment under this subdivision for any year must <br/>
<a id="pl.94.22"></a><var>94.22</var>not exceed $7,500,000. If the amount request exceeds $7,500,000, the advance final <br/>
<a id="pl.94.23"></a><var>94.23</var>payment for each eligible district must be reduced proportionately.<br/>
<a id="pl.94.24"></a><var>94.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.94.25"></a><var>94.25</var>and applies to fiscal years 2010 and later.<br/>
<br/>
<a id="bill.5.13.0"></a><a id="pl.94.26"></a><var>94.26</var>    Sec. 13. Minnesota Statutes 2008, section 127A.45, subdivision 13, is amended to read:<br/>
<a id="pl.94.27"></a><var>94.27</var>    Subd. 13. <b>Aid payment percentage.</b> Except as provided in subdivisions 11, 12, 12a, <br/>
<a id="pl.94.28"></a><var>94.28</var>and 14, each fiscal year, all education aids and credits in this chapter and chapters 120A, <br/>
<a id="pl.94.29"></a><var>94.29</var>120B, 121A, 122A, 123A, 123B, 124D, 125A, 125B, 126C, 134, and section 
         <statute_ref>273.1392</statute_ref>, <br/>
<a id="pl.94.30"></a><var>94.30</var>shall be paid at the current year aid payment percentage of the estimated entitlement during <br/>
<a id="pl.94.31"></a><var>94.31</var>the fiscal year of the entitlement. For the purposes of this subdivision, a district's estimated <br/>
<a id="pl.94.32"></a><var>94.32</var>entitlement for special education excess cost aid under section 
<statute_ref>125A.79</statute_ref> for fiscal year <br/>
<a id="pl.94.33"></a><var>94.33</var>2005 equals 70 percent of the district's entitlement for the second prior fiscal year. For the <br/>
<a id="pl.95.1"></a><var>95.1</var>purposes of this subdivision, a district's estimated entitlement for special education excess <br/>
<a id="pl.95.2"></a><var>95.2</var>cost aid under section 
         <statute_ref>125A.79</statute_ref> for fiscal year 2006 and later equals 74.0 percent of the <br/>
<a id="pl.95.3"></a><var>95.3</var>district's entitlement for the current fiscal year. The final adjustment payment, according <br/>
<a id="pl.95.4"></a><var>95.4</var>to subdivision 9, must be the amount of the actual entitlement, after adjustment for actual <br/>
<a id="pl.95.5"></a><var>95.5</var>data, minus the payments made during the fiscal year of the entitlement.<br/>
<br/>
<a id="bill.5.14.0"></a><a id="pl.95.6"></a><var>95.6</var>    Sec. 14. Minnesota Statutes 2008, section 127A.45, is amended by adding a <br/>
<a id="pl.95.7"></a><var>95.7</var>subdivision to read:<br/>
<a id="pl.95.8"></a><var>95.8</var>    Subd. 17. <b>Payment to creditors.</b> Except where otherwise specifically authorized, <br/>
<a id="pl.95.9"></a><var>95.9</var>state education aid payments shall be made only to the school district, charter school, or <br/>
<a id="pl.95.10"></a><var>95.10</var>other education organization earning state aid revenues as a result of providing education <br/>
<a id="pl.95.11"></a><var>95.11</var>services.<br/>
<br/>
<a id="bill.5.15.0"></a><a id="pl.95.12"></a><var>95.12</var>    Sec. 15. <b>FUND TRANSFERS.</b><br/>
<a id="pl.95.13"></a><var>95.13</var>    Subdivision 1. <b>Fiscal years 2010 and 2011 only.</b> (a) Notwithstanding Minnesota <br/>
<a id="pl.95.14"></a><var>95.14</var>Statutes, section 123B.80, subdivision 3, for fiscal years 2010 and 2011 only, the <br/>
<a id="pl.95.15"></a><var>95.15</var>commissioner must approve a request for a fund transfer if the transfer does not increase <br/>
<a id="pl.95.16"></a><var>95.16</var>state aid obligations to the district or result in additional property tax authority for the <br/>
<a id="pl.95.17"></a><var>95.17</var>district. This section does not permit transfers from the community service fund.<br/>
<a id="pl.95.18"></a><var>95.18</var>(b) A school board may approve a fund transfer under paragraph (a) only after <br/>
<a id="pl.95.19"></a><var>95.19</var>adopting a resolution stating the fund transfer will not diminish instructional opportunities <br/>
<a id="pl.95.20"></a><var>95.20</var>for students.<br/>
<a id="pl.95.21"></a><var>95.21</var>    Subd. 2. <b>Hayfield.</b> Notwithstanding Minnesota Statutes, section 123B.79 or <br/>
<a id="pl.95.22"></a><var>95.22</var>123B.80, on June 30, 2010, Independent School District No. 203, Hayfield, may <br/>
<a id="pl.95.23"></a><var>95.23</var>permanently transfer up to $75,000 from its reserved for operating capital account to its <br/>
<a id="pl.95.24"></a><var>95.24</var>undesignated general fund balance.<br/>
<a id="pl.95.25"></a><var>95.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.16.0"></a><a id="pl.95.26"></a><var>95.26</var>    Sec. 16. <b> REPEALER.</b><br/>
<a id="pl.95.27"></a><var>95.27</var>Minnesota Statutes 2008, section 127A.46, is repealed.<br/>
<a id="pl.95.28"></a><var>95.28</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.6.0.0"></a>

<a id="bill.6.1.0"></a><a id="pl.96.3"></a><var>96.3</var>    Section 1. Minnesota Statutes 2008, section 3.303, is amended by adding a subdivision <br/>
<a id="pl.96.4"></a><var>96.4</var>to read:<br/>
<a id="pl.96.5"></a><var>96.5</var>    Subd. 11. <b>Permanent school fund land management analyst.</b> The commission <br/>
<a id="pl.96.6"></a><var>96.6</var>shall undertake activities that are necessary to advise the legislature and to monitor the <br/>
<a id="pl.96.7"></a><var>96.7</var>executive branch on issues related to the management of permanent school fund lands. <br/>
<a id="pl.96.8"></a><var>96.8</var>The commission may hire a lead analyst and other staff as necessary for this purpose. The <br/>
<a id="pl.96.9"></a><var>96.9</var>commission shall:<br/>
<a id="pl.96.10"></a><var>96.10</var>(1) monitor management of permanent school fund lands;<br/>
<a id="pl.96.11"></a><var>96.11</var>(2) analyze the benefits derived from the fund;<br/>
<a id="pl.96.12"></a><var>96.12</var>(3) actively participate in the work of the permanent school fund advisory committee <br/>
<a id="pl.96.13"></a><var>96.13</var>under section 127A.30;<br/>
<a id="pl.96.14"></a><var>96.14</var>(4) provide oversight to ensure that the state fulfills its fiduciary responsibilities to <br/>
<a id="pl.96.15"></a><var>96.15</var>the permanent school fund as specified by the Minnesota Constitution and Minnesota <br/>
<a id="pl.96.16"></a><var>96.16</var>Statutes; and<br/>
<a id="pl.96.17"></a><var>96.17</var>(5) make effective recommendations to the permanent school fund advisory <br/>
<a id="pl.96.18"></a><var>96.18</var>committee and the finance divisions and committees of the house of representatives and <br/>
<a id="pl.96.19"></a><var>96.19</var>the senate.<br/>
<a id="pl.96.20"></a><var>96.20</var>The purpose of this function is to maximize the long-term economic returns to the <br/>
<a id="pl.96.21"></a><var>96.21</var>school trust lands consistent with the goals of section 127A.31.<br/>
<a id="pl.96.22"></a><var>96.22</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2011.<br/>
<br/>
<a id="bill.6.2.0"></a><a id="pl.96.23"></a><var>96.23</var>    Sec. 2. Minnesota Statutes 2008, section 16A.125, subdivision 5, is amended to read:<br/>
<a id="pl.96.24"></a><var>96.24</var>    Subd. 5. <b>Forest trust lands.</b> (a) The term "state forest trust fund lands" as used <br/>
<a id="pl.96.25"></a><var>96.25</var>in this subdivision, means public land in trust under the Constitution set apart as "forest <br/>
<a id="pl.96.26"></a><var>96.26</var>lands under the authority of the commissioner" of natural resources as defined by section <br/>
<statute_ref><a id="pl.96.27"></a><var>96.27</var>89.001, subdivision 13
         </statute_ref>.<br/>
<a id="pl.96.28"></a><var>96.28</var>(b) The commissioner of management and budget shall credit the revenue from the <br/>
<a id="pl.96.29"></a><var>96.29</var>forest trust fund lands to the forest suspense account. The account must specify the trust <br/>
<a id="pl.96.30"></a><var>96.30</var>funds interested in the lands and the respective receipts of the lands.<br/>
<a id="pl.96.31"></a><var>96.31</var>(c) After a fiscal year, the commissioner of management and budget shall certify the <br/>
<a id="pl.96.32"></a><var>96.32</var>total costs incurred for forestry during that year under appropriations for the protection, <br/>
<a id="pl.96.33"></a><var>96.33</var>improvement, administration, and management of state forest trust fund lands and <br/>
<a id="pl.96.34"></a><var>96.34</var>construction and improvement of forest roads to enhance the forest value of the lands. <br/>
<a id="pl.97.1"></a><var>97.1</var>The certificate must specify the trust funds interested in the lands. The commissioner of <br/>
<a id="pl.97.2"></a><var>97.2</var>natural resources shall supply the commissioner of management and budget with the <br/>
<a id="pl.97.3"></a><var>97.3</var>information needed for the certificate.<br/>
<a id="pl.97.4"></a><var>97.4</var>(d) After a fiscal year, the commissioner shall distribute the receipts credited to the <br/>
<a id="pl.97.5"></a><var>97.5</var>suspense account during that fiscal year as follows:<br/>
<a id="pl.97.6"></a><var>97.6</var>(1) the amount of the certified costs incurred by the state for forest management, <br/>
<a id="pl.97.7"></a><var>97.7</var>forest improvement, and road improvement during the fiscal year shall be transferred to <br/>
<a id="pl.97.8"></a><var>97.8</var>the forest management investment account established under section 
         <statute_ref>89.039</statute_ref>, including <br/>
<a id="pl.97.9"></a><var>97.9</var>the costs associated with the Legislative Coordinating Commission's permanent school <br/>
<a id="pl.97.10"></a><var>97.10</var>fund land management activities;<br/>
<a id="pl.97.11"></a><var>97.11</var>(2) the balance of the certified costs incurred by the state during the fiscal year <br/>
<a id="pl.97.12"></a><var>97.12</var>shall be transferred to the general fund; and<br/>
<a id="pl.97.13"></a><var>97.13</var>(3) the balance of the receipts shall then be returned prorated to the trust funds in <br/>
<a id="pl.97.14"></a><var>97.14</var>proportion to their respective interests in the lands which produced the receipts.<br/>
<a id="pl.97.15"></a><var>97.15</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2011.<br/>
<br/>
<a id="bill.6.3.0"></a><a id="pl.97.16"></a><var>97.16</var>    Sec. 3. Minnesota Statutes 2008, section 127A.30, subdivision 2, is amended to read:<br/>
<a id="pl.97.17"></a><var>97.17</var>    Subd. 2. <b>Duties. </b> The advisory committee, in conjunction with the Legislative <br/>
<a id="pl.97.18"></a><var>97.18</var>Coordinating Commission, shall review the policies of the Department of Natural <br/>
<a id="pl.97.19"></a><var>97.19</var>Resources and current statutes on management of school trust fund lands at least annually <br/>
<a id="pl.97.20"></a><var>97.20</var>and shall recommend necessary changes in statutes, policy, and implementation in order to <br/>
<a id="pl.97.21"></a><var>97.21</var>ensure provident utilization of the permanent school fund lands. By January 15 of each <br/>
<a id="pl.97.22"></a><var>97.22</var>year, the advisory committee shall submit a report to the legislature with recommendations <br/>
<a id="pl.97.23"></a><var>97.23</var>for the oversight and management of school trust lands to secure long-term economic <br/>
<a id="pl.97.24"></a><var>97.24</var>return for the permanent school fund, consistent with sections 
         <statute_ref>92.121</statute_ref> and 
         <statute_ref>127A.31</statute_ref>. The <br/>
<a id="pl.97.25"></a><var>97.25</var>committee's annual report may include recommendations to:<br/>
<a id="pl.97.26"></a><var>97.26</var>    (1) manage the school trust lands efficiently;<br/>
<a id="pl.97.27"></a><var>97.27</var>    (2) reduce the management expenditures of school trust lands and maximize the <br/>
<a id="pl.97.28"></a><var>97.28</var>revenues deposited in the permanent school trust fund;<br/>
<a id="pl.97.29"></a><var>97.29</var>    (3) manage the sale, exchange, and commercial leasing of school trust lands to <br/>
<a id="pl.97.30"></a><var>97.30</var>maximize the revenues deposited in the permanent school trust fund and retain the value <br/>
<a id="pl.97.31"></a><var>97.31</var>from the long-term appreciation of the school trust lands; and<br/>
<a id="pl.97.32"></a><var>97.32</var>    (4) manage the school trust lands to maximize the long-term economic return for the <br/>
<a id="pl.97.33"></a><var>97.33</var>permanent school trust fund while maintaining sound natural resource conservation and <br/>
<a id="pl.97.34"></a><var>97.34</var>management principles.<br/>
<a id="pl.98.1"></a><var>98.1</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2011.<br/>
<br/>
<a id="bill.6.4.0"></a><a id="pl.98.2"></a><var>98.2</var>    Sec. 4. Minnesota Statutes 2008, section 157.15, is amended by adding a subdivision <br/>
<a id="pl.98.3"></a><var>98.3</var>to read:<br/>
<a id="pl.98.4"></a><var>98.4</var>    Subd. 14a. <b>School concession stand.</b> "School concession stand" means a food <br/>
<a id="pl.98.5"></a><var>98.5</var>and beverage service establishment located in a school, on school grounds, or within a <br/>
<a id="pl.98.6"></a><var>98.6</var>school-owned athletic complex, that is operated in conjunction with school-sponsored <br/>
<a id="pl.98.7"></a><var>98.7</var>events.<br/>
<br/>
<a id="bill.6.5.0"></a><a id="pl.98.8"></a><var>98.8</var>    Sec. 5. Minnesota Statutes 2009 Supplement, section 157.16, subdivision 3, is <br/>
<a id="pl.98.9"></a><var>98.9</var>amended to read:<br/>
<a id="pl.98.10"></a><var>98.10</var>    Subd. 3.  <b>Establishment fees; definitions.</b> (a) The following fees are required <br/>
<a id="pl.98.11"></a><var>98.11</var>for food and beverage service establishments, youth camps, hotels, motels, lodging <br/>
<a id="pl.98.12"></a><var>98.12</var>establishments, public pools, and resorts licensed under this chapter. Food and beverage <br/>
<a id="pl.98.13"></a><var>98.13</var>service establishments must pay the highest applicable fee under paragraph (d), clause <br/>
<a id="pl.98.14"></a><var>98.14</var>(1), (2), (3), or (4), and establishments serving alcohol must pay the highest applicable <br/>
<a id="pl.98.15"></a><var>98.15</var>fee under paragraph (d), clause (6) or (7). The license fee for new operators previously <br/>
<a id="pl.98.16"></a><var>98.16</var>licensed under this chapter for the same calendar year is one-half of the appropriate annual <br/>
<a id="pl.98.17"></a><var>98.17</var>license fee, plus any penalty that may be required. The license fee for operators opening <br/>
<a id="pl.98.18"></a><var>98.18</var>on or after October 1 is one-half of the appropriate annual license fee, plus any penalty <br/>
<a id="pl.98.19"></a><var>98.19</var>that may be required. <br/>
<a id="pl.98.20"></a><var>98.20</var>    (b) All food and beverage service establishments, except special event food stands, <br/>
<a id="pl.98.21"></a><var>98.21</var>and all hotels, motels, lodging establishments, public pools, and resorts shall pay an <br/>
<a id="pl.98.22"></a><var>98.22</var>annual base fee of $150. <br/>
<a id="pl.98.23"></a><var>98.23</var>    (c) A special event food stand shall pay a flat fee of $50 annually. "Special event <br/>
<a id="pl.98.24"></a><var>98.24</var>food stand" means a fee category where food is prepared or served in conjunction with <br/>
<a id="pl.98.25"></a><var>98.25</var>celebrations, county fairs, or special events from a special event food stand as defined <br/>
<a id="pl.98.26"></a><var>98.26</var>in section 
         <statute_ref>157.15</statute_ref>. <br/>
<a id="pl.98.27"></a><var>98.27</var>    (d) In addition to the base fee in paragraph (b), each food and beverage service <br/>
<a id="pl.98.28"></a><var>98.28</var>establishment, other than a special event food stand and a school concession stand, and <br/>
<a id="pl.98.29"></a><var>98.29</var>each hotel, motel, lodging establishment, public pool, and resort shall pay an additional <br/>
<a id="pl.98.30"></a><var>98.30</var>annual fee for each fee category, additional food service, or required additional inspection <br/>
<a id="pl.98.31"></a><var>98.31</var>specified in this paragraph: <br/>
<a id="pl.98.32"></a><var>98.32</var>    (1) Limited food menu selection, $60. "Limited food menu selection" means a fee <br/>
<a id="pl.98.33"></a><var>98.33</var>category that provides one or more of the following: <br/>
<a id="pl.98.34"></a><var>98.34</var>    (i) prepackaged food that receives heat treatment and is served in the package; <br/>
<a id="pl.99.1"></a><var>99.1</var>    (ii) frozen pizza that is heated and served; <br/>
<a id="pl.99.2"></a><var>99.2</var>    (iii) a continental breakfast such as rolls, coffee, juice, milk, and cold cereal; <br/>
<a id="pl.99.3"></a><var>99.3</var>    (iv) soft drinks, coffee, or nonalcoholic beverages; or <br/>
<a id="pl.99.4"></a><var>99.4</var>    (v) cleaning for eating, drinking, or cooking utensils, when the only food served <br/>
<a id="pl.99.5"></a><var>99.5</var>is prepared off site. <br/>
<a id="pl.99.6"></a><var>99.6</var>    (2) Small establishment, including boarding establishments, $120. "Small <br/>
<a id="pl.99.7"></a><var>99.7</var>establishment" means a fee category that has no salad bar and meets one or more of <br/>
<a id="pl.99.8"></a><var>99.8</var>the following: <br/>
<a id="pl.99.9"></a><var>99.9</var>    (i) possesses food service equipment that consists of no more than a deep fat fryer, a <br/>
<a id="pl.99.10"></a><var>99.10</var>grill, two hot holding containers, and one or more microwave ovens; <br/>
<a id="pl.99.11"></a><var>99.11</var>    (ii) serves dipped ice cream or soft serve frozen desserts; <br/>
<a id="pl.99.12"></a><var>99.12</var>    (iii) serves breakfast in an owner-occupied bed and breakfast establishment; <br/>
<a id="pl.99.13"></a><var>99.13</var>    (iv) is a boarding establishment; or <br/>
<a id="pl.99.14"></a><var>99.14</var>    (v) meets the equipment criteria in clause (3), item (i) or (ii), and has a maximum <br/>
<a id="pl.99.15"></a><var>99.15</var>patron seating capacity of not more than 50. <br/>
<a id="pl.99.16"></a><var>99.16</var>    (3) Medium establishment, $310. "Medium establishment" means a fee category <br/>
<a id="pl.99.17"></a><var>99.17</var>that meets one or more of the following: <br/>
<a id="pl.99.18"></a><var>99.18</var>    (i) possesses food service equipment that includes a range, oven, steam table, salad <br/>
<a id="pl.99.19"></a><var>99.19</var>bar, or salad preparation area; <br/>
<a id="pl.99.20"></a><var>99.20</var>    (ii) possesses food service equipment that includes more than one deep fat fryer, <br/>
<a id="pl.99.21"></a><var>99.21</var>one grill, or two hot holding containers; or <br/>
<a id="pl.99.22"></a><var>99.22</var>    (iii) is an establishment where food is prepared at one location and served at one or <br/>
<a id="pl.99.23"></a><var>99.23</var>more separate locations. <br/>
<a id="pl.99.24"></a><var>99.24</var>    Establishments meeting criteria in clause (2), item (v), are not included in this fee <br/>
<a id="pl.99.25"></a><var>99.25</var>category. <br/>
<a id="pl.99.26"></a><var>99.26</var>    (4) Large establishment, $540. "Large establishment" means either: <br/>
<a id="pl.99.27"></a><var>99.27</var>    (i) a fee category that (A) meets the criteria in clause (3), items (i) or (ii), for a <br/>
<a id="pl.99.28"></a><var>99.28</var>medium establishment, (B) seats more than 175 people, and (C) offers the full menu <br/>
<a id="pl.99.29"></a><var>99.29</var>selection an average of five or more days a week during the weeks of operation; or <br/>
<a id="pl.99.30"></a><var>99.30</var>    (ii) a fee category that (A) meets the criteria in clause (3), item (iii), for a medium <br/>
<a id="pl.99.31"></a><var>99.31</var>establishment, and (B) prepares and serves 500 or more meals per day. <br/>
<a id="pl.99.32"></a><var>99.32</var>    (5) Other food and beverage service, including food carts, mobile food units, <br/>
<a id="pl.99.33"></a><var>99.33</var>seasonal temporary food stands, and seasonal permanent food stands, $60. <br/>
<a id="pl.99.34"></a><var>99.34</var>    (6) Beer or wine table service, $60. "Beer or wine table service" means a fee <br/>
<a id="pl.99.35"></a><var>99.35</var>category where the only alcoholic beverage service is beer or wine, served to customers <br/>
<a id="pl.99.36"></a><var>99.36</var>seated at tables. <br/>
<a id="pl.100.1"></a><var>100.1</var>    (7) Alcoholic beverage service, other than beer or wine table service, $165. <br/>
<a id="pl.100.2"></a><var>100.2</var>    "Alcohol beverage service, other than beer or wine table service" means a fee <br/>
<a id="pl.100.3"></a><var>100.3</var>category where alcoholic mixed drinks are served or where beer or wine are served from <br/>
<a id="pl.100.4"></a><var>100.4</var>a bar. <br/>
<a id="pl.100.5"></a><var>100.5</var>    (8) Lodging per sleeping accommodation unit, $10, including hotels, motels, <br/>
<a id="pl.100.6"></a><var>100.6</var>lodging establishments, and resorts, up to a maximum of $1,000. "Lodging per sleeping <br/>
<a id="pl.100.7"></a><var>100.7</var>accommodation unit" means a fee category including the number of guest rooms, cottages, <br/>
<a id="pl.100.8"></a><var>100.8</var>or other rental units of a hotel, motel, lodging establishment, or resort; or the number of <br/>
<a id="pl.100.9"></a><var>100.9</var>beds in a dormitory. <br/>
<a id="pl.100.10"></a><var>100.10</var>    (9) First public pool, $325; each additional public pool, $175. "Public pool" means a <br/>
<a id="pl.100.11"></a><var>100.11</var>fee category that has the meaning given in section 
         <statute_ref>144.1222, subdivision 4</statute_ref>. <br/>
<a id="pl.100.12"></a><var>100.12</var>    (10) First spa, $175; each additional spa, $100. "Spa pool" means a fee category that <br/>
<a id="pl.100.13"></a><var>100.13</var>has the meaning given in Minnesota Rules, part 4717.0250, subpart 9. <br/>
<a id="pl.100.14"></a><var>100.14</var>    (11) Private sewer or water, $60. "Individual private water" means a fee category <br/>
<a id="pl.100.15"></a><var>100.15</var>with a water supply other than a community public water supply as defined in Minnesota <br/>
<a id="pl.100.16"></a><var>100.16</var>Rules, chapter 4720. "Individual private sewer" means a fee category with an individual <br/>
<a id="pl.100.17"></a><var>100.17</var>sewage treatment system which uses subsurface treatment and disposal. <br/>
<a id="pl.100.18"></a><var>100.18</var>    (12) Additional food service, $150. "Additional food service" means a location at <br/>
<a id="pl.100.19"></a><var>100.19</var>a food service establishment, other than the primary food preparation and service area, <br/>
<a id="pl.100.20"></a><var>100.20</var>used to prepare or serve food to the public. "Additional food service" does not apply to <br/>
<a id="pl.100.21"></a><var>100.21</var>school concession stands. <br/>
<a id="pl.100.22"></a><var>100.22</var>    (13) Additional inspection fee, $360. "Additional inspection fee" means a fee to <br/>
<a id="pl.100.23"></a><var>100.23</var>conduct the second inspection each year for elementary and secondary education facility <br/>
<a id="pl.100.24"></a><var>100.24</var>school lunch programs when required by the Richard B. Russell National School Lunch <br/>
<a id="pl.100.25"></a><var>100.25</var>Act. <br/>
<a id="pl.100.26"></a><var>100.26</var>    (e) A fee for review of construction plans must accompany the initial license <br/>
<a id="pl.100.27"></a><var>100.27</var>application for restaurants, hotels, motels, lodging establishments, resorts, seasonal food <br/>
<a id="pl.100.28"></a><var>100.28</var>stands, and mobile food units. The fee for this construction plan review is as follows:<br/>
<table>
<col width="50px"/>
<col width="15.5"/>
<col width="30"/>
<col width="5.5"/>
<tr>
<td><a id="pl.100.29"></a><var>100.29</var><br/>
</td>
<td align="left"><b>Service Area</b><br/>
</td>
<td align="left"><b>Type</b><br/>
</td>
<td align="right"><b>Fee</b><br/>
</td>
</tr>
<tr>
<td><a id="pl.100.30"></a><var>100.30</var><br/>
</td>
<td>Food<br/>
</td>
<td>limited food menu<br/>
</td>
<td align="right">$275<br/>
</td>
</tr>
<tr>
<td><a id="pl.100.31"></a><var>100.31</var><br/>
</td>
<td></td>
<td>small establishment<br/>
</td>
<td align="right">$400<br/>
</td>
</tr>
<tr>
<td><a id="pl.100.32"></a><var>100.32</var><br/>
</td>
<td></td>
<td>medium establishment<br/>
</td>
<td align="right">$450<br/>
</td>
</tr>
<tr>
<td><a id="pl.100.33"></a><var>100.33</var><br/>
</td>
<td></td>
<td>large food establishment<br/>
</td>
<td align="right">$500<br/>
</td>
</tr>
<tr>
<td><a id="pl.100.34"></a><var>100.34</var><br/>
</td>
<td></td>
<td>additional food service<br/>
</td>
<td align="right">$150<br/>
</td>
</tr>
<tr>
<td><a id="pl.100.35"></a><var>100.35</var><br/>
</td>
<td>Transient food service<br/>
</td>
<td>food cart<br/>
</td>
<td align="right">$250<br/>
</td>
</tr>
<tr>
<td><a id="pl.100.36"></a><var>100.36</var><br/>
</td>
<td></td>
<td>seasonal permanent food stand<br/>
</td>
<td align="right">$250<br/>
</td>
</tr>
<tr>
<td><a id="pl.100.37"></a><var>100.37</var><br/>
</td>
<td></td>
<td>seasonal temporary food stand<br/>
</td>
<td align="right">$250<br/>
</td>
</tr>
<tr>
<td><a id="pl.101.1"></a><var>101.1</var><br/>
</td>
<td></td>
<td>mobile food unit<br/>
</td>
<td align="right">$350<br/>
</td>
</tr>
<tr>
<td><a id="pl.101.2"></a><var>101.2</var><br/>
</td>
<td>Alcohol<br/>
</td>
<td>beer or wine table service<br/>
</td>
<td align="right">$150<br/>
</td>
</tr>
<tr>
<td><a id="pl.101.3"></a><var>101.3</var><br/>
</td>
<td></td>
<td>alcohol service from bar<br/>
</td>
<td align="right">$250<br/>
</td>
</tr>
<tr>
<td><a id="pl.101.4"></a><var>101.4</var><br/>
</td>
<td>Lodging<br/>
</td>
<td>less than 25 rooms<br/>
</td>
<td align="right">$375<br/>
</td>
</tr>
<tr>
<td><a id="pl.101.5"></a><var>101.5</var><br/>
</td>
<td></td>
<td>25 to less than 100 rooms<br/>
</td>
<td align="right">$400<br/>
</td>
</tr>
<tr>
<td><a id="pl.101.6"></a><var>101.6</var><br/>
</td>
<td></td>
<td>100 rooms or more<br/>
</td>
<td align="right">$500<br/>
</td>
</tr>
<tr>
<td><a id="pl.101.7"></a><var>101.7</var><br/>
</td>
<td></td>
<td>less than five cabins<br/>
</td>
<td align="right">$350<br/>
</td>
</tr>
<tr>
<td><a id="pl.101.8"></a><var>101.8</var><br/>
</td>
<td></td>
<td>five to less than ten cabins<br/>
</td>
<td align="right">$400<br/>
</td>
</tr>
<tr>
<td><a id="pl.101.9"></a><var>101.9</var><br/>
</td>
<td></td>
<td>ten cabins or more<br/>
</td>
<td align="right">$450<br/>
</td>
</tr>
</table><a id="pl.101.10"></a><var>101.10</var>    (f) When existing food and beverage service establishments, hotels, motels, lodging <br/>
<a id="pl.101.11"></a><var>101.11</var>establishments, resorts, seasonal food stands, and mobile food units are extensively <br/>
<a id="pl.101.12"></a><var>101.12</var>remodeled, a fee must be submitted with the remodeling plans. The fee for this <br/>
<a id="pl.101.13"></a><var>101.13</var>construction plan review is as follows:<br/>
<table>
<col width="50px"/>
<col width="15.5"/>
<col width="30"/>
<col width="5.5"/>
<tr>
<td><a id="pl.101.14"></a><var>101.14</var><br/>
</td>
<td align="left"><b>Service Area</b><br/>
</td>
<td align="left"><b>Type</b><br/>
</td>
<td align="right"><b>Fee</b><br/>
</td>
</tr>
<tr>
<td><a id="pl.101.15"></a><var>101.15</var><br/>
</td>
<td>Food<br/>
</td>
<td>limited food menu<br/>
</td>
<td align="right">$250<br/>
</td>
</tr>
<tr>
<td><a id="pl.101.16"></a><var>101.16</var><br/>
</td>
<td></td>
<td>small establishment<br/>
</td>
<td align="right">$300<br/>
</td>
</tr>
<tr>
<td><a id="pl.101.17"></a><var>101.17</var><br/>
</td>
<td></td>
<td>medium establishment<br/>
</td>
<td align="right">$350<br/>
</td>
</tr>
<tr>
<td><a id="pl.101.18"></a><var>101.18</var><br/>
</td>
<td></td>
<td>large food establishment<br/>
</td>
<td align="right">$400<br/>
</td>
</tr>
<tr>
<td><a id="pl.101.19"></a><var>101.19</var><br/>
</td>
<td></td>
<td>additional food service<br/>
</td>
<td align="right">$150<br/>
</td>
</tr>
<tr>
<td><a id="pl.101.20"></a><var>101.20</var><br/>
</td>
<td>Transient food service<br/>
</td>
<td>food cart<br/>
</td>
<td align="right">$250<br/>
</td>
</tr>
<tr>
<td><a id="pl.101.21"></a><var>101.21</var><br/>
</td>
<td></td>
<td>seasonal permanent food stand<br/>
</td>
<td align="right">$250<br/>
</td>
</tr>
<tr>
<td><a id="pl.101.22"></a><var>101.22</var><br/>
</td>
<td></td>
<td>seasonal temporary food stand<br/>
</td>
<td align="right">$250<br/>
</td>
</tr>
<tr>
<td><a id="pl.101.23"></a><var>101.23</var><br/>
</td>
<td></td>
<td>mobile food unit<br/>
</td>
<td align="right">$250<br/>
</td>
</tr>
<tr>
<td><a id="pl.101.24"></a><var>101.24</var><br/>
</td>
<td>Alcohol<br/>
</td>
<td>beer or wine table service<br/>
</td>
<td align="right">$150<br/>
</td>
</tr>
<tr>
<td><a id="pl.101.25"></a><var>101.25</var><br/>
</td>
<td></td>
<td>alcohol service from bar<br/>
</td>
<td align="right">$250<br/>
</td>
</tr>
<tr>
<td><a id="pl.101.26"></a><var>101.26</var><br/>
</td>
<td>Lodging<br/>
</td>
<td>less than 25 rooms<br/>
</td>
<td align="right">$250<br/>
</td>
</tr>
<tr>
<td><a id="pl.101.27"></a><var>101.27</var><br/>
</td>
<td></td>
<td>25 to less than 100 rooms<br/>
</td>
<td align="right">$300<br/>
</td>
</tr>
<tr>
<td><a id="pl.101.28"></a><var>101.28</var><br/>
</td>
<td></td>
<td>100 rooms or more<br/>
</td>
<td align="right">$450<br/>
</td>
</tr>
<tr>
<td><a id="pl.101.29"></a><var>101.29</var><br/>
</td>
<td></td>
<td>less than five cabins<br/>
</td>
<td align="right">$250<br/>
</td>
</tr>
<tr>
<td><a id="pl.101.30"></a><var>101.30</var><br/>
</td>
<td></td>
<td>five to less than ten cabins<br/>
</td>
<td align="right">$350<br/>
</td>
</tr>
<tr>
<td><a id="pl.101.31"></a><var>101.31</var><br/>
</td>
<td></td>
<td>ten cabins or more<br/>
</td>
<td align="right">$400<br/>
</td>
</tr>
</table><a id="pl.101.32"></a><var>101.32</var>    (g) Special event food stands are not required to submit construction or remodeling <br/>
<a id="pl.101.33"></a><var>101.33</var>plans for review. <br/>
<a id="pl.101.34"></a><var>101.34</var>(h) Youth camps shall pay an annual single fee for food and lodging as follows:<br/>
<a id="pl.101.35"></a><var>101.35</var>(1) camps with up to 99 campers, $325;<br/>
<a id="pl.101.36"></a><var>101.36</var>(2) camps with 100 to 199 campers, $550; and<br/>
<a id="pl.101.37"></a><var>101.37</var>(3) camps with 200 or more campers, $750.<br/>
<br/>
<a id="bill.6.6.0"></a><a id="pl.101.38"></a><var>101.38</var>    Sec. 6. <b>DEPARTMENT OF EDUCATION; APPROPRIATIONS.</b><br/>
<a id="pl.102.1"></a><var>102.1</var>(a) The appropriation to the Department of Education under Laws 2009, chapter <br/>
<a id="pl.102.2"></a><var>102.2</var>96, article 7, section 3, subdivision 2, is reduced by $250,000 in fiscal year 2010 and <br/>
<a id="pl.102.3"></a><var>102.3</var>by $482,000 in fiscal year 2011.<br/>
<a id="pl.102.4"></a><var>102.4</var>(b) $24,000 in fiscal year 2010 and $23,000 in fiscal year 2011 are transferred from <br/>
<a id="pl.102.5"></a><var>102.5</var>the department's special revenue fund to the general fund.<br/>
<a id="pl.102.6"></a><var>102.6</var>(c) The base appropriation for the Department of Education for fiscal year 2012 <br/>
<a id="pl.102.7"></a><var>102.7</var>and later is $18,678,000.<br/>
<a id="pl.102.8"></a><var>102.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.7.0"></a><a id="pl.102.9"></a><var>102.9</var>    Sec. 7. <b>PERPICH CENTER FOR ARTS EDUCATION; APPROPRIATION.</b><br/>
<a id="pl.102.10"></a><var>102.10</var>$19,000 in fiscal year 2010 and $11,000 in fiscal year 2011 are transferred from the <br/>
<a id="pl.102.11"></a><var>102.11</var>Perpich Center's special revenue fund to the general fund.<br/>
<a id="pl.102.12"></a><var>102.12</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.0.0"></a>

<a id="bill.7.1.0"></a><a id="pl.102.15"></a><var>102.15</var>    Section 1. Minnesota Statutes 2008, section 123B.88, subdivision 13, is amended to <br/>
<a id="pl.102.16"></a><var>102.16</var>read:<br/>
<a id="pl.102.17"></a><var>102.17</var>    Subd. 13. <b>Area learning center pupils</b><b>; transport between buildings</b><b>.</b> Districts <br/>
<a id="pl.102.18"></a><var>102.18</var>may provide bus transportation between buildings along school bus routes when space is <br/>
<a id="pl.102.19"></a><var>102.19</var>available, for pupils attending programs at an area learning center. The transportation is <br/>
<a id="pl.102.20"></a><var>102.20</var>only permitted between schools and if it does not increase the district's expenditures for <br/>
<a id="pl.102.21"></a><var>102.21</var>transportation. The cost of these services shall be considered part of the authorized cost <br/>
<a id="pl.102.22"></a><var>102.22</var>for nonregular transportation for the purpose of section 
         <statute_ref>123B.92</statute_ref>. <br/>
<br/>
<a id="bill.7.2.0"></a><a id="pl.102.23"></a><var>102.23</var>    Sec. 2. Minnesota Statutes 2008, section 123B.90, subdivision 3, is amended to read:<br/>
<a id="pl.102.24"></a><var>102.24</var>    Subd. 3. <b>Model training program.</b> The commissioner shall develop and maintain a <br/>
<a id="pl.102.25"></a><var>102.25</var>comprehensive model list of school bus safety training program instructional materials <br/>
<a id="pl.102.26"></a><var>102.26</var>for pupils who ride the bus that includes bus safety curriculum for both classroom and <br/>
<a id="pl.102.27"></a><var>102.27</var>practical instruction and age-appropriate instructional materials.<br/>
<a id="pl.102.28"></a><var>102.28</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.7.3.0"></a><a id="pl.102.29"></a><var>102.29</var>    Sec. 3. Minnesota Statutes 2009 Supplement, section 123B.92, subdivision 1, is <br/>
<a id="pl.102.30"></a><var>102.30</var>amended to read:<br/>
<a id="pl.103.1"></a><var>103.1</var>    Subdivision 1. <b>Definitions.</b> For purposes of this section and section 
         <statute_ref>125A.76</statute_ref>, the <br/>
<a id="pl.103.2"></a><var>103.2</var>terms defined in this subdivision have the meanings given to them.<br/>
<a id="pl.103.3"></a><var>103.3</var>    (a) "Actual expenditure per pupil transported in the regular and excess transportation <br/>
<a id="pl.103.4"></a><var>103.4</var>categories" means the quotient obtained by dividing:<br/>
<a id="pl.103.5"></a><var>103.5</var>    (1) the sum of:<br/>
<a id="pl.103.6"></a><var>103.6</var>    (i) all expenditures for transportation in the regular category, as defined in paragraph <br/>
<a id="pl.103.7"></a><var>103.7</var>(b), clause (1), and the excess category, as defined in paragraph (b), clause (2), plus<br/>
<a id="pl.103.8"></a><var>103.8</var>    (ii) an amount equal to one year's depreciation on the district's school bus fleet <br/>
<a id="pl.103.9"></a><var>103.9</var>and mobile units computed on a straight line basis at the rate of 15 percent per year for <br/>
<a id="pl.103.10"></a><var>103.10</var>districts operating a program under section 
         <statute_ref>124D.128</statute_ref> for grades 1 to 12 for all students in <br/>
<a id="pl.103.11"></a><var>103.11</var>the district and 12-1/2 percent per year for other districts of the cost of the fleet, plus<br/>
<a id="pl.103.12"></a><var>103.12</var>    (iii) an amount equal to one year's depreciation on the district's type III vehicles, as <br/>
<a id="pl.103.13"></a><var>103.13</var>defined in section 
         <statute_ref>169.011, subdivision 71</statute_ref>, which must be used a majority of the time for <br/>
<a id="pl.103.14"></a><var>103.14</var>pupil transportation purposes, computed on a straight line basis at the rate of 20 percent <br/>
<a id="pl.103.15"></a><var>103.15</var>per year of the cost of the type three school buses by:<br/>
<a id="pl.103.16"></a><var>103.16</var>    (2) the number of pupils eligible for transportation in the regular category, as defined <br/>
<a id="pl.103.17"></a><var>103.17</var>in paragraph (b), clause (1), and the excess category, as defined in paragraph (b), clause (2).<br/>
<a id="pl.103.18"></a><var>103.18</var>    (b) "Transportation category" means a category of transportation service provided to <br/>
<a id="pl.103.19"></a><var>103.19</var>pupils as follows:<br/>
<a id="pl.103.20"></a><var>103.20</var>    (1) Regular transportation is:<br/>
<a id="pl.103.21"></a><var>103.21</var>    (i) transportation to and from school during the regular school year for resident <br/>
<a id="pl.103.22"></a><var>103.22</var>elementary pupils residing one mile or more from the public or nonpublic school they <br/>
<a id="pl.103.23"></a><var>103.23</var>attend, and resident secondary pupils residing two miles or more from the public <br/>
<a id="pl.103.24"></a><var>103.24</var>or nonpublic school they attend, excluding desegregation transportation and noon <br/>
<a id="pl.103.25"></a><var>103.25</var>kindergarten transportation; but with respect to transportation of pupils to and from <br/>
<a id="pl.103.26"></a><var>103.26</var>nonpublic schools, only to the extent permitted by sections 
         <statute_ref>123B.84</statute_ref> to 
         <statute_ref>123B.87</statute_ref>;<br/>
<a id="pl.103.27"></a><var>103.27</var>    (ii) transportation of resident pupils to and from language immersion programs;<br/>
<a id="pl.103.28"></a><var>103.28</var>    (iii) transportation of a pupil who is a custodial parent and that pupil's child between <br/>
<a id="pl.103.29"></a><var>103.29</var>the pupil's home and the child care provider and between the provider and the school, if <br/>
<a id="pl.103.30"></a><var>103.30</var>the home and provider are within the attendance area of the school;<br/>
<a id="pl.103.31"></a><var>103.31</var>    (iv) transportation to and from or board and lodging in another district, of resident <br/>
<a id="pl.103.32"></a><var>103.32</var>pupils of a district without a secondary school; and<br/>
<a id="pl.103.33"></a><var>103.33</var>    (v) transportation to and from school during the regular school year required under <br/>
<a id="pl.103.34"></a><var>103.34</var>subdivision 3 for nonresident elementary pupils when the distance from the attendance <br/>
<a id="pl.103.35"></a><var>103.35</var>area border to the public school is one mile or more, and for nonresident secondary pupils <br/>
<a id="pl.104.1"></a><var>104.1</var>when the distance from the attendance area border to the public school is two miles or <br/>
<a id="pl.104.2"></a><var>104.2</var>more, excluding desegregation transportation and noon kindergarten transportation.<br/>
<a id="pl.104.3"></a><var>104.3</var>    For the purposes of this paragraph, a district may designate a licensed day care <br/>
<a id="pl.104.4"></a><var>104.4</var>facility, school day care facility, respite care facility, the residence of a relative, or the <br/>
<a id="pl.104.5"></a><var>104.5</var>residence of a person chosen by the pupil's parent or guardian, or an after-school program <br/>
<a id="pl.104.6"></a><var>104.6</var>for children operated by a political subdivision of the state, as the home of a pupil for part <br/>
<a id="pl.104.7"></a><var>104.7</var>or all of the day, if requested by the pupil's parent or guardian, and if that facility or, <br/>
<a id="pl.104.8"></a><var>104.8</var>residence, or program is within the attendance area of the school the pupil attends.<br/>
<a id="pl.104.9"></a><var>104.9</var>    (2) Excess transportation is:<br/>
<a id="pl.104.10"></a><var>104.10</var>    (i) transportation to and from school during the regular school year for resident <br/>
<a id="pl.104.11"></a><var>104.11</var>secondary pupils residing at least one mile but less than two miles from the public or <br/>
<a id="pl.104.12"></a><var>104.12</var>nonpublic school they attend, and transportation to and from school for resident pupils <br/>
<a id="pl.104.13"></a><var>104.13</var>residing less than one mile from school who are transported because of extraordinary <br/>
<a id="pl.104.14"></a><var>104.14</var>traffic, drug, or crime hazards; and<br/>
<a id="pl.104.15"></a><var>104.15</var>    (ii) transportation to and from school during the regular school year required under <br/>
<a id="pl.104.16"></a><var>104.16</var>subdivision 3 for nonresident secondary pupils when the distance from the attendance area <br/>
<a id="pl.104.17"></a><var>104.17</var>border to the school is at least one mile but less than two miles from the public school <br/>
<a id="pl.104.18"></a><var>104.18</var>they attend, and for nonresident pupils when the distance from the attendance area border <br/>
<a id="pl.104.19"></a><var>104.19</var>to the school is less than one mile from the school and who are transported because of <br/>
<a id="pl.104.20"></a><var>104.20</var>extraordinary traffic, drug, or crime hazards.<br/>
<a id="pl.104.21"></a><var>104.21</var>    (3) Desegregation transportation is transportation within and outside of the district <br/>
<a id="pl.104.22"></a><var>104.22</var>during the regular school year of pupils to and from schools located outside their normal <br/>
<a id="pl.104.23"></a><var>104.23</var>attendance areas under a plan for desegregation mandated by the commissioner or under <br/>
<a id="pl.104.24"></a><var>104.24</var>court order.<br/>
<a id="pl.104.25"></a><var>104.25</var>    (4) "Transportation services for pupils with disabilities" is:<br/>
<a id="pl.104.26"></a><var>104.26</var>    (i) transportation of pupils with disabilities who cannot be transported on a regular <br/>
<a id="pl.104.27"></a><var>104.27</var>school bus between home or a respite care facility and school;<br/>
<a id="pl.104.28"></a><var>104.28</var>    (ii) necessary transportation of pupils with disabilities from home or from school to <br/>
<a id="pl.104.29"></a><var>104.29</var>other buildings, including centers such as developmental achievement centers, hospitals, <br/>
<a id="pl.104.30"></a><var>104.30</var>and treatment centers where special instruction or services required by sections 
         <statute_ref>125A.03 <br/>
</statute_ref><a id="pl.104.31"></a><var>104.31</var>to 
         <statute_ref>125A.24</statute_ref>, 
         <statute_ref>125A.26</statute_ref> to 
         <statute_ref>125A.48</statute_ref>, and 
         <statute_ref>125A.65</statute_ref> are provided, within or outside the district <br/>
<a id="pl.104.32"></a><var>104.32</var>where services are provided;<br/>
<a id="pl.104.33"></a><var>104.33</var>    (iii) necessary transportation for resident pupils with disabilities required by sections <br/>
<statute_ref><a id="pl.104.34"></a><var>104.34</var>125A.12
         </statute_ref>, and 
         <statute_ref>125A.26</statute_ref> to 
         <statute_ref>125A.48</statute_ref>;<br/>
<a id="pl.104.35"></a><var>104.35</var>    (iv) board and lodging for pupils with disabilities in a district maintaining special <br/>
<a id="pl.104.36"></a><var>104.36</var>classes;<br/>
<a id="pl.105.1"></a><var>105.1</var>    (v) transportation from one educational facility to another within the district for <br/>
<a id="pl.105.2"></a><var>105.2</var>resident pupils enrolled on a shared-time basis in educational programs, and necessary <br/>
<a id="pl.105.3"></a><var>105.3</var>transportation required by sections 
         <statute_ref>125A.18</statute_ref>, and 
         <statute_ref>125A.26</statute_ref> to 
         <statute_ref>125A.48</statute_ref>, for resident pupils <br/>
<a id="pl.105.4"></a><var>105.4</var>with disabilities who are provided special instruction and services on a shared-time basis <br/>
<a id="pl.105.5"></a><var>105.5</var>or if resident pupils are not transported, the costs of necessary travel between public <br/>
<a id="pl.105.6"></a><var>105.6</var>and private schools or neutral instructional sites by essential personnel employed by the <br/>
<a id="pl.105.7"></a><var>105.7</var>district's program for children with a disability;<br/>
<a id="pl.105.8"></a><var>105.8</var>    (vi) transportation for resident pupils with disabilities to and from board and lodging <br/>
<a id="pl.105.9"></a><var>105.9</var>facilities when the pupil is boarded and lodged for educational purposes; and<br/>
<a id="pl.105.10"></a><var>105.10</var>(vii) transportation of pupils for a curricular field trip activity on a school bus <br/>
<a id="pl.105.11"></a><var>105.11</var>equipped with a power lift when the power lift is required by a student's disability or <br/>
<a id="pl.105.12"></a><var>105.12</var>section 504 plan; and<br/>
<a id="pl.105.13"></a><var>105.13</var>(viii)  services described in clauses (i) to (vi) (vii), when provided for pupils with <br/>
<a id="pl.105.14"></a><var>105.14</var>disabilities in conjunction with a summer instructional program that relates to the pupil's <br/>
<a id="pl.105.15"></a><var>105.15</var>individual education plan or in conjunction with a learning year program established <br/>
<a id="pl.105.16"></a><var>105.16</var>under section 
         <statute_ref>124D.128</statute_ref>.<br/>
<a id="pl.105.17"></a><var>105.17</var>    For purposes of computing special education initial aid under section 
         <statute_ref>125A.76, <br/>
<a id="pl.105.18"></a><var>105.18</var>subdivision 2
         </statute_ref>, the cost of providing transportation for children with disabilities includes <br/>
<a id="pl.105.19"></a><var>105.19</var>(A) the additional cost of transporting a homeless student from a temporary nonshelter <br/>
<a id="pl.105.20"></a><var>105.20</var>home in another district to the school of origin, or a formerly homeless student from a <br/>
<a id="pl.105.21"></a><var>105.21</var>permanent home in another district to the school of origin but only through the end of the <br/>
<a id="pl.105.22"></a><var>105.22</var>academic year; and (B) depreciation on district-owned school buses purchased after July 1, <br/>
<a id="pl.105.23"></a><var>105.23</var>2005, and used primarily for transportation of pupils with disabilities, calculated according <br/>
<a id="pl.105.24"></a><var>105.24</var>to paragraph (a), clauses (ii) and (iii). Depreciation costs included in the disabled <br/>
<a id="pl.105.25"></a><var>105.25</var>transportation category must be excluded in calculating the actual expenditure per pupil <br/>
<a id="pl.105.26"></a><var>105.26</var>transported in the regular and excess transportation categories according to paragraph (a).<br/>
<a id="pl.105.27"></a><var>105.27</var>    (5) "Nonpublic nonregular transportation" is:<br/>
<a id="pl.105.28"></a><var>105.28</var>    (i) transportation from one educational facility to another within the district for <br/>
<a id="pl.105.29"></a><var>105.29</var>resident pupils enrolled on a shared-time basis in educational programs, excluding <br/>
<a id="pl.105.30"></a><var>105.30</var>transportation for nonpublic pupils with disabilities under clause (4);<br/>
<a id="pl.105.31"></a><var>105.31</var>    (ii) transportation within district boundaries between a nonpublic school and a <br/>
<a id="pl.105.32"></a><var>105.32</var>public school or a neutral site for nonpublic school pupils who are provided pupil support <br/>
<a id="pl.105.33"></a><var>105.33</var>services pursuant to section 
         <statute_ref>123B.44</statute_ref>; and<br/>
<a id="pl.105.34"></a><var>105.34</var>    (iii) late transportation home from school or between schools within a district for <br/>
<a id="pl.105.35"></a><var>105.35</var>nonpublic school pupils involved in after-school activities.<br/>
<a id="pl.106.1"></a><var>106.1</var>    (c) "Mobile unit" means a vehicle or trailer designed to provide facilities for <br/>
<a id="pl.106.2"></a><var>106.2</var>educational programs and services, including diagnostic testing, guidance and counseling <br/>
<a id="pl.106.3"></a><var>106.3</var>services, and health services. A mobile unit located off nonpublic school premises is a <br/>
<a id="pl.106.4"></a><var>106.4</var>neutral site as defined in section 
         <statute_ref>123B.41, subdivision 13</statute_ref>.<br/>
<a id="pl.106.5"></a><var>106.5</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal years 2011 <br/>
<a id="pl.106.6"></a><var>106.6</var>and later.<br/>
<br/>
<a id="bill.7.4.0"></a><a id="pl.106.7"></a><var>106.7</var>    Sec. 4. Minnesota Statutes 2008, section 123B.92, subdivision 5, is amended to read:<br/>
<a id="pl.106.8"></a><var>106.8</var>    Subd. 5. <b>District reports.</b> (a) Each district must report data to the department as <br/>
<a id="pl.106.9"></a><var>106.9</var>required by the department to account for transportation expenditures.<br/>
<a id="pl.106.10"></a><var>106.10</var>(b) Salaries and fringe benefits of district employees whose primary duties are <br/>
<a id="pl.106.11"></a><var>106.11</var>other than transportation, including central office administrators and staff, building <br/>
<a id="pl.106.12"></a><var>106.12</var>administrators and staff, teachers, social workers, school nurses, and instructional aides, <br/>
<a id="pl.106.13"></a><var>106.13</var>must not be included in a district's transportation expenditures, except that a district may <br/>
<a id="pl.106.14"></a><var>106.14</var>include salaries and benefits according to paragraph (c) for (1) an employee designated <br/>
<a id="pl.106.15"></a><var>106.15</var>as the district transportation director, (2) an employee providing direct support to the <br/>
<a id="pl.106.16"></a><var>106.16</var>transportation director, or (3) an employee providing direct transportation services such as <br/>
<a id="pl.106.17"></a><var>106.17</var>a bus driver or bus aide.<br/>
<a id="pl.106.18"></a><var>106.18</var>(c) Salaries and fringe benefits of the district employees listed in paragraph (b), <br/>
<a id="pl.106.19"></a><var>106.19</var>clauses (1), (2), and (3), who work part time in transportation and part time in other areas <br/>
<a id="pl.106.20"></a><var>106.20</var>must not be included in a district's transportation expenditures unless the district maintains <br/>
<a id="pl.106.21"></a><var>106.21</var>documentation of the employee's time spent on pupil transportation matters in the form <br/>
<a id="pl.106.22"></a><var>106.22</var>and manner prescribed by the department.<br/>
<a id="pl.106.23"></a><var>106.23</var>(d) Pupil transportation expenditures, excluding expenditures for capital outlay, <br/>
<a id="pl.106.24"></a><var>106.24</var>leased buses, student board and lodging, crossing guards, and aides on buses, must <br/>
<a id="pl.106.25"></a><var>106.25</var>be allocated among transportation categories based on cost-per-mile, cost-per-student, <br/>
<a id="pl.106.26"></a><var>106.26</var>cost-per-hour, or cost-per-route, regardless of whether the transportation services are <br/>
<a id="pl.106.27"></a><var>106.27</var>provided on district-owned or contractor-owned school buses. Expenditures for school <br/>
<a id="pl.106.28"></a><var>106.28</var>bus driver salaries and fringe benefits may either be directly charged to the appropriate <br/>
<a id="pl.106.29"></a><var>106.29</var>transportation category or may be allocated among transportation categories based <br/>
<a id="pl.106.30"></a><var>106.30</var>on cost-per-mile, cost-per-student, cost-per-hour, or cost-per-route. Expenditures <br/>
<a id="pl.106.31"></a><var>106.31</var>by private contractors or individuals who provide transportation exclusively in one <br/>
<a id="pl.106.32"></a><var>106.32</var>transportation category must be charged directly to the appropriate transportation category. <br/>
<a id="pl.106.33"></a><var>106.33</var>Transportation services provided by contractor-owned school bus companies incorporated <br/>
<a id="pl.106.34"></a><var>106.34</var>under different names but owned by the same individual or group of individuals must be <br/>
<a id="pl.106.35"></a><var>106.35</var>treated as the same company for cost allocation purposes.<br/>
<a id="pl.107.1"></a><var>107.1</var>(e) Notwithstanding paragraph (d), districts contracting for transportation services <br/>
<a id="pl.107.2"></a><var>107.2</var>are exempt from the standard cost allocation method for authorized and nonauthorized <br/>
<a id="pl.107.3"></a><var>107.3</var>transportation categories if: (1) the district bids its contracts separately for authorized <br/>
<a id="pl.107.4"></a><var>107.4</var>and nonauthorized transportation categories and for special transportation separate from <br/>
<a id="pl.107.5"></a><var>107.5</var>regular and excess transportation; (2) the district receives bids or quotes from more <br/>
<a id="pl.107.6"></a><var>107.6</var>than one vendor for these transportation categories; and (3) the district's cost-per-mile, <br/>
<a id="pl.107.7"></a><var>107.7</var>cost-per-hour, or cost-per-route does not vary more than ten percent among categories, <br/>
<a id="pl.107.8"></a><var>107.8</var>excluding salaries and fringe benefits of bus aides. If the costs reported by the district <br/>
<a id="pl.107.9"></a><var>107.9</var>for contractor-owned operations vary by more than ten percent among categories, the <br/>
<a id="pl.107.10"></a><var>107.10</var>department shall require the district to reallocate its transportation costs, excluding salaries <br/>
<a id="pl.107.11"></a><var>107.11</var>and fringe benefits of bus aides, among all categories.<br/>
<a id="pl.107.12"></a><var>107.12</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal years 2011 <br/>
<a id="pl.107.13"></a><var>107.13</var>and later.<br/>
<br/>
<a id="bill.7.5.0"></a><a id="pl.107.14"></a><var>107.14</var>    Sec. 5. Minnesota Statutes 2008, section 169.447, subdivision 2a, is amended to read:<br/>
<a id="pl.107.15"></a><var>107.15</var>    Subd. 2a. <b>Passenger lap and shoulder belts.</b> (a) In addition to the requirements in <br/>
<a id="pl.107.16"></a><var>107.16</var>section 
         <statute_ref>169.4501, subdivision 1</statute_ref>,:<br/>
<a id="pl.107.17"></a><var>107.17</var>(1) a school bus may be equipped with an approved lap belt or an approved lap and <br/>
<a id="pl.107.18"></a><var>107.18</var>shoulder belt installed for each passenger-seating position on the bus; and<br/>
<a id="pl.107.19"></a><var>107.19</var>(2) a school motor coach manufactured after July 1, 2012, must be equipped with an <br/>
<a id="pl.107.20"></a><var>107.20</var>approved lap belt or an approved lap and shoulder belt installed for each passenger-seating <br/>
<a id="pl.107.21"></a><var>107.21</var>position.<br/>
<a id="pl.107.22"></a><var>107.22</var>(b) The design and installation of lap belts and lap and shoulder belts required <br/>
<a id="pl.107.23"></a><var>107.23</var>under this paragraph (a) must meet the standards of the commissioner established under <br/>
<a id="pl.107.24"></a><var>107.24</var>this paragraph (b).<br/>
<a id="pl.107.25"></a><var>107.25</var>(b) The commissioner shall consider all concerns necessary to properly integrate <br/>
<a id="pl.107.26"></a><var>107.26</var>lap belts or lap and shoulder belts into the current compartmentalization safety system <br/>
<a id="pl.107.27"></a><var>107.27</var>and prescribe standards for the design and installation of lap and shoulder belts required <br/>
<a id="pl.107.28"></a><var>107.28</var>under paragraph (a). The standards are not subject to chapter 14 and are specifically not <br/>
<a id="pl.107.29"></a><var>107.29</var>subject to section 
         <statute_ref>14.386</statute_ref>.<br/>
<a id="pl.107.30"></a><var>107.30</var>(c) This subdivision does not apply to specially equipped school buses under section <br/>
<statute_ref><a id="pl.107.31"></a><var>107.31</var>169.4504
         </statute_ref>.<br/>
<a id="pl.107.32"></a><var>107.32</var>(d) A passenger on a school bus or school motor coach equipped with lap belts <br/>
<a id="pl.107.33"></a><var>107.33</var>or lap and shoulder belts must use these lap belts or lap and shoulder belts unless the <br/>
<a id="pl.107.34"></a><var>107.34</var>passenger, or if the passenger is a minor, the passenger's parent or guardian, has notified <br/>
<a id="pl.108.1"></a><var>108.1</var>the school district in writing that the passenger does not intend to wear the lap belt or lap <br/>
<a id="pl.108.2"></a><var>108.2</var>and shoulder belt.<br/>
<a id="pl.108.3"></a><var>108.3</var>(e) In an action for personal injury or wrongful death against a school district, a <br/>
<a id="pl.108.4"></a><var>108.4</var>school bus or school motor coach operator under contract with a school district, or any <br/>
<a id="pl.108.5"></a><var>108.5</var>agent or employee of a school district or operator, or against a volunteer, no such person or <br/>
<a id="pl.108.6"></a><var>108.6</var>entity shall be held liable solely because the injured party was not wearing a safety belt; <br/>
<a id="pl.108.7"></a><var>108.7</var>provided, however, that nothing contained herein shall be construed to grant immunity <br/>
<a id="pl.108.8"></a><var>108.8</var>from liability for failure to:<br/>
<a id="pl.108.9"></a><var>108.9</var>(1) maintain in operating order any equipment required by statute, rule, or school <br/>
<a id="pl.108.10"></a><var>108.10</var>district policy; or<br/>
<a id="pl.108.11"></a><var>108.11</var>(2) comply with an applicable statute, rule, or school district policy.<br/>
<a id="pl.108.12"></a><var>108.12</var>(f) In an action for personal injury or wrongful death, a school district, a school <br/>
<a id="pl.108.13"></a><var>108.13</var>bus or school motor coach contract operator, any agent or employee of a school district or <br/>
<a id="pl.108.14"></a><var>108.14</var>operator, or a volunteer is not liable for failing to assist any child with the adjustment, <br/>
<a id="pl.108.15"></a><var>108.15</var>fastening, unfastening, or other use of the lap belt or lap and shoulder belt.<br/>
<a id="pl.108.16"></a><var>108.16</var>(g) For purposes of this subdivision, "school motor coach" means a bus that has an <br/>
<a id="pl.108.17"></a><var>108.17</var>elevated passenger deck located over a baggage compartment, when the vehicle is used <br/>
<a id="pl.108.18"></a><var>108.18</var>to transport pupils to or from school-related activities, by (1) the school or (2) someone <br/>
<a id="pl.108.19"></a><var>108.19</var>under an agreement with the school or a school district, including operation under charter <br/>
<a id="pl.108.20"></a><var>108.20</var>carrier authority.<br/>
<a id="pl.108.21"></a><var>108.21</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2012.<br/>
<br/>
<a id="bill.7.6.0"></a><a id="pl.108.22"></a><var>108.22</var>    Sec. 6. Minnesota Statutes 2009 Supplement, section 171.02, subdivision 2b, is <br/>
<a id="pl.108.23"></a><var>108.23</var>amended to read:<br/>
<a id="pl.108.24"></a><var>108.24</var>    Subd. 2b. <b>Exception for type III vehicle drivers.</b> (a) Notwithstanding subdivision <br/>
<a id="pl.108.25"></a><var>108.25</var>2, the holder of a class A, B, C, or D driver's license, without a school bus endorsement, <br/>
<a id="pl.108.26"></a><var>108.26</var>may operate a type III vehicle described in section 
         <statute_ref>169.011, subdivision 71</statute_ref>, paragraph (h), <br/>
<a id="pl.108.27"></a><var>108.27</var>under the conditions in paragraphs (b) through (o).<br/>
<a id="pl.108.28"></a><var>108.28</var>    (b) The operator is an employee of the entity that owns, leases, or contracts for <br/>
<a id="pl.108.29"></a><var>108.29</var>the school bus.<br/>
<a id="pl.108.30"></a><var>108.30</var>    (c) The operator's employer has adopted and implemented a policy that provides for <br/>
<a id="pl.108.31"></a><var>108.31</var>annual training and certification of the operator in:<br/>
<a id="pl.108.32"></a><var>108.32</var>    (1) safe operation of a type III vehicle;<br/>
<a id="pl.108.33"></a><var>108.33</var>    (2) understanding student behavior, including issues relating to students with <br/>
<a id="pl.108.34"></a><var>108.34</var>disabilities;<br/>
<a id="pl.109.1"></a><var>109.1</var>    (3) encouraging orderly conduct of students on the bus and handling incidents of <br/>
<a id="pl.109.2"></a><var>109.2</var>misconduct appropriately;<br/>
<a id="pl.109.3"></a><var>109.3</var>    (4) knowing and understanding relevant laws, rules of the road, and local school <br/>
<a id="pl.109.4"></a><var>109.4</var>bus safety policies;<br/>
<a id="pl.109.5"></a><var>109.5</var>    (5) handling emergency situations;<br/>
<a id="pl.109.6"></a><var>109.6</var>    (6) proper use of seat belts and child safety restraints;<br/>
<a id="pl.109.7"></a><var>109.7</var>    (7) performance of pretrip vehicle inspections; <br/>
<a id="pl.109.8"></a><var>109.8</var>    (8) safe loading and unloading of students, including, but not limited to:<br/>
<a id="pl.109.9"></a><var>109.9</var>    (i) utilizing a safe location for loading and unloading students at the curb, on the <br/>
<a id="pl.109.10"></a><var>109.10</var>nontraffic side of the roadway, or at off-street loading areas, driveways, yards, and other <br/>
<a id="pl.109.11"></a><var>109.11</var>areas to enable the student to avoid hazardous conditions;<br/>
<a id="pl.109.12"></a><var>109.12</var>    (ii) refraining from loading and unloading students in a vehicular traffic lane, on the <br/>
<a id="pl.109.13"></a><var>109.13</var>shoulder, in a designated turn lane, or a lane adjacent to a designated turn lane;<br/>
<a id="pl.109.14"></a><var>109.14</var>    (iii) avoiding a loading or unloading location that would require a pupil to cross a <br/>
<a id="pl.109.15"></a><var>109.15</var>road, or ensuring that the driver or an aide personally escort the pupil across the road if <br/>
<a id="pl.109.16"></a><var>109.16</var>it is not reasonably feasible to avoid such a location; and<br/>
<a id="pl.109.17"></a><var>109.17</var>    (iv) placing the type III vehicle in "park" during loading and unloading; and<br/>
<a id="pl.109.18"></a><var>109.18</var>(v) escorting a pupil across the road under clause (iii) only after the motor is <br/>
<a id="pl.109.19"></a><var>109.19</var>stopped, the ignition key is removed, the brakes are set, and the vehicle is otherwise <br/>
<a id="pl.109.20"></a><var>109.20</var>rendered immobile; and<br/>
<a id="pl.109.21"></a><var>109.21</var>(9) compliance with paragraph (k), concerning reporting certain convictions to the <br/>
<a id="pl.109.22"></a><var>109.22</var>employer within ten days of the date of conviction.<br/>
<a id="pl.109.23"></a><var>109.23</var>    (d) A background check or background investigation of the operator has been <br/>
<a id="pl.109.24"></a><var>109.24</var>conducted that meets the requirements under section 
         <statute_ref>122A.18, subdivision 8</statute_ref>, or 
         <statute_ref>123B.03 <br/>
</statute_ref><a id="pl.109.25"></a><var>109.25</var>for school district employees; section 
         <statute_ref>144.057</statute_ref> or chapter 245C for day care employees; <br/>
<a id="pl.109.26"></a><var>109.26</var>or section 
         <statute_ref>171.321, subdivision 3</statute_ref>, for all other persons operating a type A or type III <br/>
<a id="pl.109.27"></a><var>109.27</var>vehicle under this subdivision.<br/>
<a id="pl.109.28"></a><var>109.28</var>    (e) Operators shall submit to a physical examination as required by section 
         <statute_ref>171.321, <br/>
<a id="pl.109.29"></a><var>109.29</var>subdivision 2
         </statute_ref>.<br/>
<a id="pl.109.30"></a><var>109.30</var>    (f) The operator's employer requires preemployment drug and alcohol testing of <br/>
<a id="pl.109.31"></a><var>109.31</var>applicants for operator positions. Current operators must comply with the employer's <br/>
<a id="pl.109.32"></a><var>109.32</var>policy under section 
         <statute_ref>181.951, subdivisions 2</statute_ref>, 4, and 5. Notwithstanding any law to the <br/>
<a id="pl.109.33"></a><var>109.33</var>contrary, the operator's employer may use a Breathalyzer or similar device to fulfill <br/>
<a id="pl.109.34"></a><var>109.34</var>random or reasonable suspicion alcohol testing requirements.<br/>
<a id="pl.110.1"></a><var>110.1</var>    (g) The operator's driver's license is verified annually by the entity that owns, <br/>
<a id="pl.110.2"></a><var>110.2</var>leases, or contracts for the school bus type III vehicle as required under section 171.321, <br/>
<a id="pl.110.3"></a><var>110.3</var>subdivision 5.<br/>
<a id="pl.110.4"></a><var>110.4</var>    (h) A person who sustains a conviction, as defined under section 
         <statute_ref>609.02</statute_ref>, of violating <br/>
<a id="pl.110.5"></a><var>110.5</var>section 
         <statute_ref>169A.25</statute_ref>, 
         <statute_ref>169A.26</statute_ref>, 
         <statute_ref>169A.27</statute_ref>, or 
         <statute_ref>169A.31</statute_ref>, or whose driver's license is revoked <br/>
<a id="pl.110.6"></a><var>110.6</var>under sections 
         <statute_ref>169A.50</statute_ref> to 
         <statute_ref>169A.53</statute_ref> of the implied consent law, or who is convicted of <br/>
<a id="pl.110.7"></a><var>110.7</var>violating or whose driver's license is revoked under a similar statute or ordinance of <br/>
<a id="pl.110.8"></a><var>110.8</var>another state, is precluded from operating a type III vehicle for five years from the date <br/>
<a id="pl.110.9"></a><var>110.9</var>of conviction.<br/>
<a id="pl.110.10"></a><var>110.10</var>    (i) A person who has ever been convicted of a disqualifying offense as defined in <br/>
<a id="pl.110.11"></a><var>110.11</var>section 
         <statute_ref>171.3215, subdivision 1</statute_ref>, paragraph (c), may not operate a type III vehicle under <br/>
<a id="pl.110.12"></a><var>110.12</var>this subdivision.<br/>
<a id="pl.110.13"></a><var>110.13</var>    (j) A person who sustains a conviction, as defined under section 
         <statute_ref>609.02</statute_ref>, of a moving <br/>
<a id="pl.110.14"></a><var>110.14</var>offense in violation of chapter 169 within three years of the first of three other moving <br/>
<a id="pl.110.15"></a><var>110.15</var>offenses is precluded from operating a type III vehicle for one year from the date of <br/>
<a id="pl.110.16"></a><var>110.16</var>the last conviction.<br/>
<a id="pl.110.17"></a><var>110.17</var>    (k) An operator who sustains a conviction as described in paragraph (h), (i), or (j) <br/>
<a id="pl.110.18"></a><var>110.18</var>while employed by the entity that owns, leases, or contracts for the school bus, shall report <br/>
<a id="pl.110.19"></a><var>110.19</var>the conviction to the employer within ten days of the date of the conviction.<br/>
<a id="pl.110.20"></a><var>110.20</var>    (l) Students riding the type III vehicle must have training required under section <br/>
<statute_ref><a id="pl.110.21"></a><var>110.21</var>123B.90, subdivision 2
         </statute_ref>.<br/>
<a id="pl.110.22"></a><var>110.22</var>    (m) Documentation of meeting the requirements listed in this subdivision must be <br/>
<a id="pl.110.23"></a><var>110.23</var>maintained under separate file at the business location for each type III vehicle operator. <br/>
<a id="pl.110.24"></a><var>110.24</var>The business manager, school board, governing body of a nonpublic school, or any <br/>
<a id="pl.110.25"></a><var>110.25</var>other entity that owns, leases, or contracts for the type III vehicle operating under this <br/>
<a id="pl.110.26"></a><var>110.26</var>subdivision is responsible for maintaining these files for inspection.<br/>
<a id="pl.110.27"></a><var>110.27</var>    (n) The type III vehicle must bear a current certificate of inspection issued under <br/>
<a id="pl.110.28"></a><var>110.28</var>section 
         <statute_ref>169.451</statute_ref>.<br/>
<a id="pl.110.29"></a><var>110.29</var>    (o) An employee of a school or of a school district, who is not employed for the sole <br/>
<a id="pl.110.30"></a><var>110.30</var>purpose of operating a type III vehicle, is exempt from paragraphs (e) and (f).<br/>
<a id="pl.110.31"></a><var>110.31</var>(p) Notwithstanding any law to the contrary, any person who conducts testing under <br/>
<a id="pl.110.32"></a><var>110.32</var>paragraph (f) is exempt from section 181.953, subdivisions 9 and 10, paragraph (b).<br/>
<a id="pl.110.33"></a><var>110.33</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.7.7.0"></a><a id="pl.110.34"></a><var>110.34</var>    Sec. 7. Minnesota Statutes 2008, section 171.321, subdivision 2, is amended to read:<br/>
<a id="pl.111.1"></a><var>111.1</var>    Subd. 2. <b>Rules.</b> (a) The commissioner of public safety shall prescribe rules <br/>
<a id="pl.111.2"></a><var>111.2</var>governing (1) the physical qualifications of school bus drivers and tests required to obtain <br/>
<a id="pl.111.3"></a><var>111.3</var>a school bus endorsement and (2) the physical qualifications of type III vehicle drivers. <br/>
<a id="pl.111.4"></a><var>111.4</var>The rules for physical qualifications of type III vehicle drivers are not subject to chapter <br/>
<a id="pl.111.5"></a><var>111.5</var>14 and section 14.386 does not apply.<br/>
<a id="pl.111.6"></a><var>111.6</var>(b) The rules under paragraph (a) must provide that an applicant for a school <br/>
<a id="pl.111.7"></a><var>111.7</var>bus endorsement or renewal is exempt from the physical qualifications and medical <br/>
<a id="pl.111.8"></a><var>111.8</var>examination required to operate a school bus upon providing evidence of being medically <br/>
<a id="pl.111.9"></a><var>111.9</var>examined and certified within the preceding 24 months as physically qualified to operate a <br/>
<a id="pl.111.10"></a><var>111.10</var>commercial motor vehicle, pursuant to Code of Federal Regulations, title 49, part 391, <br/>
<a id="pl.111.11"></a><var>111.11</var>subpart E, or rules of the commissioner of transportation incorporating those federal <br/>
<a id="pl.111.12"></a><var>111.12</var>regulations. The commissioner shall accept physical examinations for school bus drivers <br/>
<a id="pl.111.13"></a><var>111.13</var>conducted by medical examiners authorized as provided by Code of Federal Regulations, <br/>
<a id="pl.111.14"></a><var>111.14</var>title 49, chapter 3, part 391, subpart E.<br/>
<a id="pl.111.15"></a><var>111.15</var>(b) (c) The commissioner of public safety, in conjunction with the commissioner <br/>
<a id="pl.111.16"></a><var>111.16</var>of education, shall adopt rules prescribing a training program for Head Start bus drivers. <br/>
<a id="pl.111.17"></a><var>111.17</var>The program must provide for initial classroom and behind-the-wheel training, and annual <br/>
<a id="pl.111.18"></a><var>111.18</var>in-service training. The program must provide training in defensive driving, human <br/>
<a id="pl.111.19"></a><var>111.19</var>relations, emergency and accident procedures, vehicle maintenance, traffic laws, and use <br/>
<a id="pl.111.20"></a><var>111.20</var>of safety equipment. The program must provide that the training will be conducted by the <br/>
<a id="pl.111.21"></a><var>111.21</var>contract operator for a Head Start agency, the Head Start grantee, a licensed driver training <br/>
<a id="pl.111.22"></a><var>111.22</var>school, or by another person or entity approved by both commissioners.<br/>
<a id="pl.111.23"></a><var>111.23</var>(d) The commissioner may exempt a type III vehicle driver from the physical <br/>
<a id="pl.111.24"></a><var>111.24</var>qualifications required to operate a type III vehicle upon receiving evidence of the <br/>
<a id="pl.111.25"></a><var>111.25</var>driver having been medically examined and certified within the preceding 24 months as <br/>
<a id="pl.111.26"></a><var>111.26</var>physically qualified to operate a commercial motor vehicle as provided for applicants for a <br/>
<a id="pl.111.27"></a><var>111.27</var>school bus endorsement under paragraph (b).<br/>
<br/>
<a id="bill.8.0.0"></a>

<a id="bill.8.1.0"></a><a id="pl.111.30"></a><var>111.30</var>    Section 1. Minnesota Statutes 2008, section 123B.53, subdivision 5, is amended to read:<br/>
<a id="pl.111.31"></a><var>111.31</var>    Subd. 5. <b>Equalized debt service levy.</b> (a) The equalized debt service levy of a <br/>
<a id="pl.111.32"></a><var>111.32</var>district equals the sum of the first tier equalized debt service levy and the second tier <br/>
<a id="pl.111.33"></a><var>111.33</var>equalized debt service levy.<br/>
<a id="pl.111.34"></a><var>111.34</var>(b) A district's first tier equalized debt service levy equals the district's first tier debt <br/>
<a id="pl.111.35"></a><var>111.35</var>service equalization revenue times the lesser of one or the ratio of:<br/>
<a id="pl.112.1"></a><var>112.1</var>(1) the quotient derived by dividing the adjusted net tax capacity of the district for <br/>
<a id="pl.112.2"></a><var>112.2</var>the year before the year the levy is certified by the adjusted pupil units in the district for <br/>
<a id="pl.112.3"></a><var>112.3</var>the school year ending in the year prior to the year the levy is certified; to<br/>
<a id="pl.112.4"></a><var>112.4</var>(2) $3,200 100 percent of the statewide adjusted net tax capacity equalizing factor.<br/>
<a id="pl.112.5"></a><var>112.5</var>(c) A district's second tier equalized debt service levy equals the district's second tier <br/>
<a id="pl.112.6"></a><var>112.6</var>debt service equalization revenue times the lesser of one or the ratio of:<br/>
<a id="pl.112.7"></a><var>112.7</var>(1) the quotient derived by dividing the adjusted net tax capacity of the district for <br/>
<a id="pl.112.8"></a><var>112.8</var>the year before the year the levy is certified by the adjusted pupil units in the district for <br/>
<a id="pl.112.9"></a><var>112.9</var>the school year ending in the year prior to the year the levy is certified; to<br/>
<a id="pl.112.10"></a><var>112.10</var>(2) $8,000 200 percent of the statewide adjusted net tax capacity equalizing factor.<br/>
<a id="pl.112.11"></a><var>112.11</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2013 and later.<br/>
<br/>
<a id="bill.8.2.0"></a><a id="pl.112.12"></a><var>112.12</var>    Sec. 2. <b>[123B.555] SCHOOL BOND AGRICULTURAL CREDIT.</b><br/>
<a id="pl.112.13"></a><var>112.13</var>    Subdivision 1. <b>Eligibility.</b> All class 2a, 2b, and 2c property under section 273.13, <br/>
<a id="pl.112.14"></a><var>112.14</var>subdivision 23, except for property consisting of the house, garage, and immediately <br/>
<a id="pl.112.15"></a><var>112.15</var>surrounding one acre of land of an agricultural homestead, is eligible to receive the credit <br/>
<a id="pl.112.16"></a><var>112.16</var>under this section.<br/>
<a id="pl.112.17"></a><var>112.17</var>    Subd. 2. <b>Credit amount.</b> For each qualifying property, the school bond agricultural <br/>
<a id="pl.112.18"></a><var>112.18</var>credit is equal to 66 percent of the property's eligible net tax capacity multiplied by the <br/>
<a id="pl.112.19"></a><var>112.19</var>school debt tax rate determined under section 275.08, subdivision 1b.<br/>
<a id="pl.112.20"></a><var>112.20</var>    Subd. 3. <b>Credit reimbursements.</b> The county auditor shall determine the tax <br/>
<a id="pl.112.21"></a><var>112.21</var>reductions allowed under this section within the county for each taxes payable year and <br/>
<a id="pl.112.22"></a><var>112.22</var>shall certify that amount to the commissioner of revenue as a part of the abstracts of tax <br/>
<a id="pl.112.23"></a><var>112.23</var>lists submitted under section 275.29. Any prior year adjustments shall also be certified on <br/>
<a id="pl.112.24"></a><var>112.24</var>the abstracts of tax lists. The commissioner shall review the certifications for accuracy, <br/>
<a id="pl.112.25"></a><var>112.25</var>and may make such changes as are deemed necessary, or return the certification to the <br/>
<a id="pl.112.26"></a><var>112.26</var>county auditor for correction. The credit under this section must be used to reduce the <br/>
<a id="pl.112.27"></a><var>112.27</var>school district net tax capacity-based property tax as provided in section 273.1393.<br/>
<a id="pl.112.28"></a><var>112.28</var>    Subd. 4. <b>Payment.</b> The commissioner of revenue shall certify the total of the tax <br/>
<a id="pl.112.29"></a><var>112.29</var>reductions granted under this section for each taxes payable year within each school <br/>
<a id="pl.112.30"></a><var>112.30</var>district to the commissioner of education, who shall pay the reimbursement amounts to <br/>
<a id="pl.112.31"></a><var>112.31</var>each school district as provided in section 273.1392.<br/>
<a id="pl.112.32"></a><var>112.32</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2013 and later.<br/>
<br/>
<a id="bill.8.3.0"></a><a id="pl.113.1"></a><var>113.1</var>    Sec. 3. Minnesota Statutes 2008, section 124D.4531, as amended by Laws 2009, <br/>
<a id="pl.113.2"></a><var>113.2</var>chapter 88, article 2, section 1, is amended to read:<br/>
<a id="pl.113.3"></a><var>113.3</var><b>124D.4531 CAREER AND TECHNICAL </b><b>LEVY</b><b> AID</b><b>.</b><br/>
<a id="pl.113.4"></a><var>113.4</var>    Subdivision 1. <b>Career and technical </b><b>levy</b><b> aid</b><b>.</b> (a) A district with a career and <br/>
<a id="pl.113.5"></a><var>113.5</var>technical program approved under this section for the fiscal year in which the levy is <br/>
<a id="pl.113.6"></a><var>113.6</var>certified may levy an amount is eligible for aid equal to the lesser of:<br/>
<a id="pl.113.7"></a><var>113.7</var>(1) $80 $240 times the district's average daily membership in grades 10 through 12 <br/>
<a id="pl.113.8"></a><var>113.8</var>for the current fiscal year in which the levy is certified; or<br/>
<a id="pl.113.9"></a><var>113.9</var>(2) 25 percent of approved expenditures in the previous fiscal year in which the <br/>
<a id="pl.113.10"></a><var>113.10</var>levy is certified for the following:<br/>
<a id="pl.113.11"></a><var>113.11</var>(i) salaries paid to essential, licensed personnel providing direct instructional <br/>
<a id="pl.113.12"></a><var>113.12</var>services to students in that fiscal year for services rendered in the district's approved <br/>
<a id="pl.113.13"></a><var>113.13</var>career and technical education programs;<br/>
<a id="pl.113.14"></a><var>113.14</var>(ii) contracted services provided by a public or private agency other than a Minnesota <br/>
<a id="pl.113.15"></a><var>113.15</var>school district or cooperative center under subdivision 7;<br/>
<a id="pl.113.16"></a><var>113.16</var>(iii) necessary travel between instructional sites by licensed career and technical <br/>
<a id="pl.113.17"></a><var>113.17</var>education personnel;<br/>
<a id="pl.113.18"></a><var>113.18</var>(iv) necessary travel by licensed career and technical education personnel for <br/>
<a id="pl.113.19"></a><var>113.19</var>vocational student organization activities held within the state for instructional purposes;<br/>
<a id="pl.113.20"></a><var>113.20</var>(v) curriculum development activities that are part of a five-year plan for <br/>
<a id="pl.113.21"></a><var>113.21</var>improvement based on program assessment;<br/>
<a id="pl.113.22"></a><var>113.22</var>(vi) necessary travel by licensed career and technical education personnel for <br/>
<a id="pl.113.23"></a><var>113.23</var>noncollegiate credit-bearing professional development; and<br/>
<a id="pl.113.24"></a><var>113.24</var>(vii) specialized vocational instructional supplies.<br/>
<a id="pl.113.25"></a><var>113.25</var>(b) Up to ten percent of a district's career and technical levy aid may be spent on <br/>
<a id="pl.113.26"></a><var>113.26</var>equipment purchases. Districts using the career and technical levy aid for equipment <br/>
<a id="pl.113.27"></a><var>113.27</var>purchases must report to the department on the improved learning opportunities for <br/>
<a id="pl.113.28"></a><var>113.28</var>students that result from the investment in equipment.<br/>
<a id="pl.113.29"></a><var>113.29</var>(c) The district must recognize the full amount of this levy as revenue for the fiscal <br/>
<a id="pl.113.30"></a><var>113.30</var>year in which it is certified.<br/>
<a id="pl.113.31"></a><var>113.31</var>    Subd. 2. <b>Allocation from cooperative centers and intermediate districts.</b> For <br/>
<a id="pl.113.32"></a><var>113.32</var>purposes of this section, a cooperative center or an intermediate district must allocate its <br/>
<a id="pl.113.33"></a><var>113.33</var>approved expenditures for career and technical education programs among participating <br/>
<a id="pl.113.34"></a><var>113.34</var>districts.<br/>
<a id="pl.113.35"></a><var>113.35</var>    Subd. 3. <b>Levy</b><b> </b><b>Aid </b><b>guarantee.</b> Notwithstanding subdivision 1, the career and <br/>
<a id="pl.113.36"></a><var>113.36</var>technical education levy aid for a district is not less than the lesser of:<br/>
<a id="pl.114.1"></a><var>114.1</var>(1) the district's career and technical education levy authority revenue for the <br/>
<a id="pl.114.2"></a><var>114.2</var>previous fiscal year; or<br/>
<a id="pl.114.3"></a><var>114.3</var>(2) 100 percent of the approved expenditures for career and technical programs <br/>
<a id="pl.114.4"></a><var>114.4</var>included in subdivision 1, paragraph (b), for the prior fiscal year in which the levy is <br/>
<a id="pl.114.5"></a><var>114.5</var>certified.<br/>
<a id="pl.114.6"></a><var>114.6</var>    Subd. 4. <b>District reports.</b> Each district or cooperative center must report data to the <br/>
<a id="pl.114.7"></a><var>114.7</var>department for all career and technical education programs as required by the department <br/>
<a id="pl.114.8"></a><var>114.8</var>to implement the career and technical levy formula.<br/>
<a id="pl.114.9"></a><var>114.9</var>    Subd. 5. <b>Allocation from districts participating in agreements for secondary </b><br/>
<a id="pl.114.10"></a><var>114.10</var><b>education or interdistrict cooperation.</b> For purposes of this section, a district with a <br/>
<a id="pl.114.11"></a><var>114.11</var>career and technical program approved under this section that participates in an agreement <br/>
<a id="pl.114.12"></a><var>114.12</var>under section 
         <statute_ref>123A.30</statute_ref> or 
         <statute_ref>123A.32</statute_ref> must allocate its levy authority under this section <br/>
<a id="pl.114.13"></a><var>114.13</var>among participating districts.<br/>
<a id="pl.114.14"></a><var>114.14</var><b>EFFECTIVE DATE.</b>This section is effective for aid payments for fiscal year <br/>
<a id="pl.114.15"></a><var>114.15</var>2014 and thereafter.<br/>
<br/>
<a id="bill.8.4.0"></a><a id="pl.114.16"></a><var>114.16</var>    Sec. 4. Minnesota Statutes 2008, section 124D.59, subdivision 2, is amended to read:<br/>
<a id="pl.114.17"></a><var>114.17</var>    Subd. 2. <b>Pupil of limited English proficiency.</b> (a) "Pupil of limited English <br/>
<a id="pl.114.18"></a><var>114.18</var>proficiency" means a pupil in kindergarten through grade 12 who meets the following <br/>
<a id="pl.114.19"></a><var>114.19</var>requirements:<br/>
<a id="pl.114.20"></a><var>114.20</var>(1) the pupil, as declared by a parent or guardian first learned a language other than <br/>
<a id="pl.114.21"></a><var>114.21</var>English, comes from a home where the language usually spoken is other than English, or <br/>
<a id="pl.114.22"></a><var>114.22</var>usually speaks a language other than English; and<br/>
<a id="pl.114.23"></a><var>114.23</var>(2) the pupil is determined by developmentally appropriate measures, which might <br/>
<a id="pl.114.24"></a><var>114.24</var>include observations, teacher judgment, parent recommendations, or developmentally <br/>
<a id="pl.114.25"></a><var>114.25</var>appropriate assessment instruments, to lack the necessary English skills to participate <br/>
<a id="pl.114.26"></a><var>114.26</var>fully in classes taught in English.<br/>
<a id="pl.114.27"></a><var>114.27</var>(b) Notwithstanding paragraph (a), a pupil in grades 4 through 12 who was enrolled <br/>
<a id="pl.114.28"></a><var>114.28</var>in a Minnesota public school on the dates during the previous school year when a <br/>
<a id="pl.114.29"></a><var>114.29</var>commissioner provided assessment that measures the pupil's emerging academic English <br/>
<a id="pl.114.30"></a><var>114.30</var>was administered, shall not be counted as a pupil of limited English proficiency in <br/>
<a id="pl.114.31"></a><var>114.31</var>calculating limited English proficiency pupil units under section 
         <statute_ref>126C.05, subdivision <br/>
<a id="pl.114.32"></a><var>114.32</var>17
         </statute_ref>, and shall not generate state limited English proficiency aid under section 
         <statute_ref>124D.65, <br/>
<a id="pl.114.33"></a><var>114.33</var>subdivision 5
         </statute_ref>, unless the pupil scored below the state cutoff score on an assessment <br/>
<a id="pl.114.34"></a><var>114.34</var>measuring emerging academic English provided by the commissioner during the previous <br/>
<a id="pl.114.35"></a><var>114.35</var>school year.  <br/>
<a id="pl.115.1"></a><var>115.1</var>(c) Notwithstanding paragraphs (a) and (b), a pupil in kindergarten through grade 12 <br/>
<a id="pl.115.2"></a><var>115.2</var>shall not be counted as a pupil of limited English proficiency in calculating limited English <br/>
<a id="pl.115.3"></a><var>115.3</var>proficiency pupil units under section 
         <statute_ref>126C.05, subdivision 17</statute_ref>, and shall not generate state <br/>
<a id="pl.115.4"></a><var>115.4</var>limited English proficiency aid under section 
         <statute_ref>124D.65, subdivision 5</statute_ref>, if: <br/>
<a id="pl.115.5"></a><var>115.5</var>(1) the pupil is not enrolled during the current fiscal year in an educational program <br/>
<a id="pl.115.6"></a><var>115.6</var>for pupils of limited English proficiency in accordance with sections 
         <statute_ref>124D.58</statute_ref> to 
         <statute_ref>124D.64</statute_ref>; <br/>
<a id="pl.115.7"></a><var>115.7</var>or. <br/>
<a id="pl.115.8"></a><var>115.8</var>(2) the pupil has generated five or more years of average daily membership in <br/>
<a id="pl.115.9"></a><var>115.9</var>Minnesota public schools since July 1, 1996.<br/>
<a id="pl.115.10"></a><var>115.10</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal year 2014 <br/>
<a id="pl.115.11"></a><var>115.11</var>and later.<br/>
<br/>
<a id="bill.8.5.0"></a><a id="pl.115.12"></a><var>115.12</var>    Sec. 5. Minnesota Statutes 2008, section 124D.65, subdivision 5, is amended to read:<br/>
<a id="pl.115.13"></a><var>115.13</var>    Subd. 5. <b>School district LEP revenue.</b> (a) A district's limited English proficiency <br/>
<a id="pl.115.14"></a><var>115.14</var>programs revenue equals the product of: (1) $700 in fiscal year 2004 and later times .2; <br/>
<a id="pl.115.15"></a><var>115.15</var>(2)  the basic formula allowance for that year; and (3) the greater of 20 or the adjusted <br/>
<a id="pl.115.16"></a><var>115.16</var>marginal cost average daily membership of eligible pupils of limited English proficiency <br/>
<a id="pl.115.17"></a><var>115.17</var>enrolled in the district during the current fiscal year.<br/>
<a id="pl.115.18"></a><var>115.18</var>(b) A pupil ceases to generate state limited English proficiency aid in the school <br/>
<a id="pl.115.19"></a><var>115.19</var>year following the school year in which the pupil attains the state cutoff score on a <br/>
<a id="pl.115.20"></a><var>115.20</var>commissioner-provided assessment that measures the pupil's emerging academic English.<br/>
<a id="pl.115.21"></a><var>115.21</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal year 2014 <br/>
<a id="pl.115.22"></a><var>115.22</var>and later.<br/>
<br/>
<a id="bill.8.6.0"></a><a id="pl.115.23"></a><var>115.23</var>    Sec. 6. Minnesota Statutes 2008, section 125A.76, subdivision 5, is amended to read:<br/>
<a id="pl.115.24"></a><var>115.24</var>    Subd. 5. <b>School district special education aid.</b> A school district's special education <br/>
<a id="pl.115.25"></a><var>115.25</var>aid for fiscal year 2008 and later equals the state total special education aid times the ratio <br/>
<a id="pl.115.26"></a><var>115.26</var>of the district's its initial special education aid to the state total initial special education aid.<br/>
<a id="pl.115.27"></a><var>115.27</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal year 2014 <br/>
<a id="pl.115.28"></a><var>115.28</var>and later.<br/>
<br/>
<a id="bill.8.7.0"></a><a id="pl.115.29"></a><var>115.29</var>    Sec. 7. Minnesota Statutes 2008, section 125A.79, subdivision 7, is amended to read:<br/>
<a id="pl.115.30"></a><var>115.30</var>    Subd. 7. <b>District special education excess cost aid.</b> A district's special education <br/>
<a id="pl.115.31"></a><var>115.31</var>excess cost aid for fiscal year 2002 and later equals the state total special education excess <br/>
<a id="pl.116.1"></a><var>116.1</var>cost aid times the ratio of the district's its initial excess cost aid to the state total initial <br/>
<a id="pl.116.2"></a><var>116.2</var>excess cost aid.<br/>
<a id="pl.116.3"></a><var>116.3</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal year 2014 <br/>
<a id="pl.116.4"></a><var>116.4</var>and later.<br/>
<br/>
<a id="bill.8.8.0"></a><a id="pl.116.5"></a><var>116.5</var>    Sec. 8. Minnesota Statutes 2008, section 126C.01, is amended by adding a subdivision <br/>
<a id="pl.116.6"></a><var>116.6</var>to read:<br/>
<a id="pl.116.7"></a><var>116.7</var>    Subd. 2a. <b>Adjusted net tax capacity equalizing factor.</b> The adjusted net tax <br/>
<a id="pl.116.8"></a><var>116.8</var>capacity equalizing factor equals the quotient derived by dividing the total adjusted net tax <br/>
<a id="pl.116.9"></a><var>116.9</var>capacity of all school districts in the state for the year before the year the levy is certified <br/>
<a id="pl.116.10"></a><var>116.10</var>by the total number of adjusted pupil units in the state for the current school year.<br/>
<a id="pl.116.11"></a><var>116.11</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2013 and later.<br/>
<br/>
<a id="bill.8.9.0"></a><a id="pl.116.12"></a><var>116.12</var>    Sec. 9. Minnesota Statutes 2008, section 126C.01, is amended by adding a subdivision <br/>
<a id="pl.116.13"></a><var>116.13</var>to read:<br/>
<a id="pl.116.14"></a><var>116.14</var>    Subd. 3a. <b>Referendum market value equalizing factor.</b> The referendum market <br/>
<a id="pl.116.15"></a><var>116.15</var>value equalizing factor equals the quotient derived by dividing the total referendum <br/>
<a id="pl.116.16"></a><var>116.16</var>market value of all school districts in the state for the year before the year the levy is <br/>
<a id="pl.116.17"></a><var>116.17</var>certified by the total number of resident pupil units in the state for the current school year.<br/>
<a id="pl.116.18"></a><var>116.18</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2013.<br/>
<br/>
<a id="bill.8.10.0"></a><a id="pl.116.19"></a><var>116.19</var>    Sec. 10. Minnesota Statutes 2008, section 126C.01, is amended by adding a <br/>
<a id="pl.116.20"></a><var>116.20</var>subdivision to read:<br/>
<a id="pl.116.21"></a><var>116.21</var>    Subd. 5a. <b>Location equity index.</b> (a) A school district's location equity index <br/>
<a id="pl.116.22"></a><var>116.22</var>equals each district's composite wage level divided by the statewide average wage for the <br/>
<a id="pl.116.23"></a><var>116.23</var>same period. The composite wage level for a school district equals the sum of 50 percent <br/>
<a id="pl.116.24"></a><var>116.24</var>of the district's county wage level and 50 percent of the district's economic development <br/>
<a id="pl.116.25"></a><var>116.25</var>region composite wage level. The composite wage level is computed by using the most <br/>
<a id="pl.116.26"></a><var>116.26</var>recent three-year weighted wage data.<br/>
<a id="pl.116.27"></a><var>116.27</var>(b) A school district's location equity index must not be less than .9 or greater than <br/>
<a id="pl.116.28"></a><var>116.28</var>1.05.<br/>
<a id="pl.116.29"></a><var>116.29</var>(c) The commissioner of education annually must recalculate the indexes in this <br/>
<a id="pl.116.30"></a><var>116.30</var>section. For purposes of this subdivision, the commissioner must locate a school district <br/>
<a id="pl.116.31"></a><var>116.31</var>with boundaries that cross county borders in the county that generates the highest location <br/>
<a id="pl.116.32"></a><var>116.32</var>equity index for that district.<br/>
<a id="pl.117.1"></a><var>117.1</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal year 2014 <br/>
<a id="pl.117.2"></a><var>117.2</var>and later.<br/>
<br/>
<a id="bill.8.11.0"></a><a id="pl.117.3"></a><var>117.3</var>    Sec. 11. Minnesota Statutes 2008, section 126C.05, subdivision 1, is amended to read:<br/>
<a id="pl.117.4"></a><var>117.4</var>    Subdivision 1. <b>Pupil unit.</b> Pupil units for each Minnesota resident pupil under the <br/>
<a id="pl.117.5"></a><var>117.5</var>age of 21 or who meets the requirements of section 
         <statute_ref>120A.20</statute_ref>, subdivision 1, paragraph (c), <br/>
<a id="pl.117.6"></a><var>117.6</var>in average daily membership enrolled in the district of residence, in another district under <br/>
<a id="pl.117.7"></a><var>117.7</var>sections 
         <statute_ref>123A.05</statute_ref> to 
         <statute_ref>123A.08</statute_ref>, 
         <statute_ref>124D.03</statute_ref>, 
         <statute_ref>124D.08</statute_ref>, or 
         <statute_ref>124D.68</statute_ref>; in a charter school under <br/>
<a id="pl.117.8"></a><var>117.8</var>section 
         <statute_ref>124D.10</statute_ref>; or for whom the resident district pays tuition under section 
         <statute_ref>123A.18</statute_ref>, <br/>
<statute_ref><a id="pl.117.9"></a><var>117.9</var>123A.22
         </statute_ref>, 
         <statute_ref>123A.30</statute_ref>, 
         <statute_ref>123A.32</statute_ref>, 
         <statute_ref>123A.44</statute_ref>, 
         <statute_ref>123A.488</statute_ref>, 
         <statute_ref>123B.88, subdivision 4</statute_ref>, 
         <statute_ref>124D.04</statute_ref>, <br/>
<statute_ref><a id="pl.117.10"></a><var>117.10</var>124D.05
         </statute_ref>, 
         <statute_ref>125A.03</statute_ref> to 
         <statute_ref>125A.24</statute_ref>, 
         <statute_ref>125A.51</statute_ref>, or 
         <statute_ref>125A.65</statute_ref>, shall be counted according to this <br/>
<a id="pl.117.11"></a><var>117.11</var>subdivision. <br/>
<a id="pl.117.12"></a><var>117.12</var>    (a) A prekindergarten pupil with a disability who is enrolled in a program approved <br/>
<a id="pl.117.13"></a><var>117.13</var>by the commissioner and has an individual education plan is counted as the ratio of the <br/>
<a id="pl.117.14"></a><var>117.14</var>number of hours of assessment and education service to 825 times 
         <statute_ref>1.25</statute_ref> with a minimum <br/>
<a id="pl.117.15"></a><var>117.15</var>average daily membership of 0.28, but not more than 
         <statute_ref>1.25</statute_ref> pupil units. <br/>
<a id="pl.117.16"></a><var>117.16</var>    (b) A prekindergarten pupil who is assessed but determined not to be disabled is <br/>
<a id="pl.117.17"></a><var>117.17</var>counted as the ratio of the number of hours of assessment service to 825 times 
         <statute_ref>1.25</statute_ref>. <br/>
<a id="pl.117.18"></a><var>117.18</var>    (c) A kindergarten pupil with a disability who is enrolled in a program approved <br/>
<a id="pl.117.19"></a><var>117.19</var>by the commissioner is counted as the ratio of the number of hours of assessment and <br/>
<a id="pl.117.20"></a><var>117.20</var>education services required in the fiscal year by the pupil's individual education program <br/>
<a id="pl.117.21"></a><var>117.21</var>plan to 875, but not more than one.<br/>
<a id="pl.117.22"></a><var>117.22</var>    (d) A kindergarten pupil who is not included in paragraph (c) is counted as .612 1.0 <br/>
<a id="pl.117.23"></a><var>117.23</var>pupil units.<br/>
<a id="pl.117.24"></a><var>117.24</var>    (e) A pupil who is in any of grades 1 to 3 is counted as 
         <statute_ref>1.115</statute_ref> 1.0 pupil units for <br/>
<a id="pl.117.25"></a><var>117.25</var>fiscal year 2000 and thereafter. <br/>
<a id="pl.117.26"></a><var>117.26</var>    (f) A pupil who is any of grades 4 to 6 is counted as 
         <statute_ref>1.06</statute_ref> 1.0 pupil units for fiscal <br/>
<a id="pl.117.27"></a><var>117.27</var>year 1995 and thereafter. <br/>
<a id="pl.117.28"></a><var>117.28</var>    (g) A pupil who is in any of grades 7 to 12 is counted as 
         <statute_ref>1.3</statute_ref> 1.0 pupil units.<br/>
<a id="pl.117.29"></a><var>117.29</var>    (h) A pupil who is in the postsecondary enrollment options program is counted as <br/>
<statute_ref><a id="pl.117.30"></a><var>117.30</var>1.3
</statute_ref> 1.0 pupil units.<br/>
<a id="pl.117.31"></a><var>117.31</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal year 2014 <br/>
<a id="pl.117.32"></a><var>117.32</var>and later.<br/>
<br/>
<a id="bill.8.12.0"></a><a id="pl.117.33"></a><var>117.33</var>    Sec. 12. Minnesota Statutes 2008, section 126C.05, subdivision 3, is amended to read:<br/>
<a id="pl.118.1"></a><var>118.1</var>    Subd. 3. <b>Compensation revenue pupil units.</b> Compensation revenue pupil units <br/>
<a id="pl.118.2"></a><var>118.2</var>for fiscal year 1998 and thereafter must be computed according to this subdivision.<br/>
<a id="pl.118.3"></a><var>118.3</var>(a) The compensation revenue concentration percentage for each building in a <br/>
<a id="pl.118.4"></a><var>118.4</var>district equals the product of 100 times the ratio of:<br/>
<a id="pl.118.5"></a><var>118.5</var>(1) the sum of the number of pupils enrolled in the building district eligible to receive <br/>
<a id="pl.118.6"></a><var>118.6</var>free lunch plus one-half of the pupils eligible to receive reduced priced or reduced-price <br/>
<a id="pl.118.7"></a><var>118.7</var>lunch on October 1 of the previous fiscal year; to<br/>
<a id="pl.118.8"></a><var>118.8</var>(2) the number of pupils enrolled in the building district on October 1 of the <br/>
<a id="pl.118.9"></a><var>118.9</var>previous fiscal year.<br/>
<a id="pl.118.10"></a><var>118.10</var>(b) The compensation revenue pupil weighting factor for a building equals the <br/>
<a id="pl.118.11"></a><var>118.11</var>lesser of one or the quotient obtained by dividing the building's compensation revenue <br/>
<a id="pl.118.12"></a><var>118.12</var>concentration percentage by 80.0.<br/>
<a id="pl.118.13"></a><var>118.13</var>(c) The compensation revenue pupil units for a building district equals the product of:<br/>
<a id="pl.118.14"></a><var>118.14</var>(1) the sum of the number of pupils enrolled in the building district eligible to receive <br/>
<a id="pl.118.15"></a><var>118.15</var>free lunch and one-half of the pupils eligible to receive reduced priced or reduced-price <br/>
<a id="pl.118.16"></a><var>118.16</var>lunch on October 1 of the previous fiscal year; times<br/>
<a id="pl.118.17"></a><var>118.17</var>(2) the compensation revenue pupil weighting factor for the building; times<br/>
<a id="pl.118.18"></a><var>118.18</var>(3) .60 district.<br/>
<a id="pl.118.19"></a><var>118.19</var>(d) Notwithstanding paragraphs (a) to (c), for charter schools and contracted <br/>
<a id="pl.118.20"></a><var>118.20</var>alternative programs in the first year of operation, compensation revenue pupil units shall <br/>
<a id="pl.118.21"></a><var>118.21</var>be computed using data for the current fiscal year. If the charter school or contracted <br/>
<a id="pl.118.22"></a><var>118.22</var>alternative program begins operation after October 1, compensatory revenue pupil units <br/>
<a id="pl.118.23"></a><var>118.23</var>shall be computed based on pupils enrolled on an alternate date determined by the <br/>
<a id="pl.118.24"></a><var>118.24</var>commissioner, and the compensation revenue pupil units shall be prorated based on the <br/>
<a id="pl.118.25"></a><var>118.25</var>ratio of the number of days of student instruction to 170 days.<br/>
<a id="pl.118.26"></a><var>118.26</var>(e) The percentages in this subdivision must be based on the count of individual <br/>
<a id="pl.118.27"></a><var>118.27</var>pupils and not on a building average or minimum.<br/>
<a id="pl.118.28"></a><var>118.28</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal year 2014 <br/>
<a id="pl.118.29"></a><var>118.29</var>and later.<br/>
<br/>
<a id="bill.8.13.0"></a><a id="pl.118.30"></a><var>118.30</var>    Sec. 13. Minnesota Statutes 2008, section 126C.05, subdivision 5, is amended to read:<br/>
<a id="pl.118.31"></a><var>118.31</var>    Subd. 5. <b>Adjusted pupil units.</b> (a) Adjusted pupil units for a district or charter <br/>
<a id="pl.118.32"></a><var>118.32</var>school means the sum of:<br/>
<a id="pl.118.33"></a><var>118.33</var>(1) the number of pupil units served, according to subdivision 7, plus<br/>
<a id="pl.118.34"></a><var>118.34</var>(2) pupil units according to subdivision 1 for whom the district or charter school <br/>
<a id="pl.118.35"></a><var>118.35</var>pays tuition under section 
         <statute_ref>123A.18</statute_ref>, 
         <statute_ref>123A.22</statute_ref>, 
         <statute_ref>123A.30</statute_ref>, 
         <statute_ref>123A.32</statute_ref>, 
         <statute_ref>123A.44</statute_ref>, 
         <statute_ref>123A.488</statute_ref>, <br/>
<statute_ref><a id="pl.119.1"></a><var>119.1</var>123B.88, subdivision 4
         </statute_ref>, 
         <statute_ref>124D.04</statute_ref>, 
         <statute_ref>124D.05</statute_ref>, 
         <statute_ref>125A.03</statute_ref> to 
         <statute_ref>125A.24</statute_ref>, 
         <statute_ref>125A.51</statute_ref>, or 
         <statute_ref>125A.65</statute_ref>, <br/>
<a id="pl.119.2"></a><var>119.2</var>minus <br/>
<a id="pl.119.3"></a><var>119.3</var>(3) pupil units according to subdivision 1 for whom the district or charter school <br/>
<a id="pl.119.4"></a><var>119.4</var>receives tuition under section 
         <statute_ref>123A.18</statute_ref>, 
         <statute_ref>123A.22</statute_ref>, 
         <statute_ref>123A.30</statute_ref>, 
         <statute_ref>123A.32</statute_ref>, 
         <statute_ref>123A.44</statute_ref>, 
         <statute_ref>123A.488</statute_ref>, <br/>
<statute_ref><a id="pl.119.5"></a><var>119.5</var>123B.88, subdivision 4
         </statute_ref>, 
         <statute_ref>124D.04</statute_ref>, 
         <statute_ref>124D.05</statute_ref>, 
         <statute_ref>125A.03</statute_ref> to 
         <statute_ref>125A.24</statute_ref>, 
         <statute_ref>125A.51</statute_ref>, or 
         <statute_ref>125A.65</statute_ref>. <br/>
<a id="pl.119.6"></a><var>119.6</var>(b) Adjusted marginal cost pupil units means the greater of:<br/>
<a id="pl.119.7"></a><var>119.7</var>(1) the sum of .77 times the pupil units defined in paragraph (a) for the current school <br/>
<a id="pl.119.8"></a><var>119.8</var>year and .23 times the pupil units defined in paragraph (a) for the previous school year; or<br/>
<a id="pl.119.9"></a><var>119.9</var>(2) the number of adjusted pupil units defined in paragraph (a) for the current school <br/>
<a id="pl.119.10"></a><var>119.10</var>year.<br/>
<a id="pl.119.11"></a><var>119.11</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal year 2014 <br/>
<a id="pl.119.12"></a><var>119.12</var>and later.<br/>
<br/>
<a id="bill.8.14.0"></a><a id="pl.119.13"></a><var>119.13</var>    Sec. 14. Minnesota Statutes 2008, section 126C.05, subdivision 6, is amended to read:<br/>
<a id="pl.119.14"></a><var>119.14</var>    Subd. 6. <b>Resident pupil units.</b> (a) Resident pupil units for a district means the <br/>
<a id="pl.119.15"></a><var>119.15</var>number of pupil units according to subdivision 1 residing in the district.<br/>
<a id="pl.119.16"></a><var>119.16</var>(b) Resident marginal cost pupil units means the greater of:<br/>
<a id="pl.119.17"></a><var>119.17</var>(1) the sum of .77 times the pupil units defined in paragraph (a) for the current year <br/>
<a id="pl.119.18"></a><var>119.18</var>and .23 times the pupil units defined in paragraph (a) for the previous school year; or<br/>
<a id="pl.119.19"></a><var>119.19</var>(2) the number of resident pupil units defined in paragraph (a) for the current school <br/>
<a id="pl.119.20"></a><var>119.20</var>year.<br/>
<a id="pl.119.21"></a><var>119.21</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal year 2014 <br/>
<a id="pl.119.22"></a><var>119.22</var>and later.<br/>
<br/>
<a id="bill.8.15.0"></a><a id="pl.119.23"></a><var>119.23</var>    Sec. 15. Minnesota Statutes 2008, section 126C.05, subdivision 8, is amended to read:<br/>
<a id="pl.119.24"></a><var>119.24</var>    Subd. 8. <b>Average daily membership.</b> (a) Membership for pupils in grades <br/>
<a id="pl.119.25"></a><var>119.25</var>kindergarten through 12 and for prekindergarten pupils with disabilities shall mean the <br/>
<a id="pl.119.26"></a><var>119.26</var>number of pupils on the current roll of the school, counted from the date of entry until <br/>
<a id="pl.119.27"></a><var>119.27</var>withdrawal. The date of withdrawal shall mean the day the pupil permanently leaves <br/>
<a id="pl.119.28"></a><var>119.28</var>the school or the date it is officially known that the pupil has left or has been legally <br/>
<a id="pl.119.29"></a><var>119.29</var>excused. However, a pupil, regardless of age, who has been absent from school for 15 <br/>
<a id="pl.119.30"></a><var>119.30</var>consecutive school days during the regular school year or for five consecutive school days <br/>
<a id="pl.119.31"></a><var>119.31</var>during summer school or intersession classes of flexible school year programs without <br/>
<a id="pl.119.32"></a><var>119.32</var>receiving instruction in the home or hospital shall be dropped from the roll and classified <br/>
<a id="pl.119.33"></a><var>119.33</var>as withdrawn. Nothing in this section shall be construed as waiving the compulsory <br/>
<a id="pl.120.1"></a><var>120.1</var>attendance provisions cited in section 
         <statute_ref>120A.22</statute_ref>. Average daily membership equals the <br/>
<a id="pl.120.2"></a><var>120.2</var>sum for all pupils of the number of days of the school year each pupil is enrolled in the <br/>
<a id="pl.120.3"></a><var>120.3</var>district's schools divided by the number of days the schools are in session. Days of <br/>
<a id="pl.120.4"></a><var>120.4</var>summer school or intersession classes of flexible school year programs are only included <br/>
<a id="pl.120.5"></a><var>120.5</var>in the computation of membership for pupils with a disability not appropriately served <br/>
<a id="pl.120.6"></a><var>120.6</var>primarily in the regular classroom. A student must not be counted as more than 1.2 pupils <br/>
<a id="pl.120.7"></a><var>120.7</var>in average daily membership under this section. When the initial total average daily <br/>
<a id="pl.120.8"></a><var>120.8</var>membership exceeds 1.2 for a pupil enrolled in more than one school district during the <br/>
<a id="pl.120.9"></a><var>120.9</var>fiscal year, each district's average daily membership must be reduced proportionately. <br/>
<a id="pl.120.10"></a><var>120.10</var>(b) A student must not be counted as more than one pupil in average daily <br/>
<a id="pl.120.11"></a><var>120.11</var>membership except for purposes of section 
         <statute_ref>126C.10, subdivision 2a</statute_ref>. <br/>
<a id="pl.120.12"></a><var>120.12</var>(c) For purposes of section 126C.10, subdivision 2a, only, a pupil's average daily <br/>
<a id="pl.120.13"></a><var>120.13</var>membership is counted as 1.0 once a kindergarten or elementary pupil has received 960 <br/>
<a id="pl.120.14"></a><var>120.14</var>hours of instruction during the school year and as 1.0 once a secondary student has <br/>
<a id="pl.120.15"></a><var>120.15</var>received 1,050 hours of instruction during the school year.<br/>
<a id="pl.120.16"></a><var>120.16</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal year 2014 <br/>
<a id="pl.120.17"></a><var>120.17</var>and later.<br/>
<br/>
<a id="bill.8.16.0"></a><a id="pl.120.18"></a><var>120.18</var>    Sec. 16. Minnesota Statutes 2008, section 126C.05, subdivision 16, is amended to read:<br/>
<a id="pl.120.19"></a><var>120.19</var>    Subd. 16. <b>Free and reduced-price lunches.</b> The commissioner shall determine the <br/>
<a id="pl.120.20"></a><var>120.20</var>number of children eligible to receive either a free or reduced-price lunch on October 1 <br/>
<a id="pl.120.21"></a><var>120.21</var>each year. Children enrolled in a building on October 1 and determined to be eligible to <br/>
<a id="pl.120.22"></a><var>120.22</var>receive free or reduced-price lunch by December 15 of that school year shall be counted <br/>
<a id="pl.120.23"></a><var>120.23</var>as eligible on October 1 for purposes of subdivision 3. The commissioner may use <br/>
<a id="pl.120.24"></a><var>120.24</var>federal definitions for these purposes and may adjust these definitions as appropriate. <br/>
<a id="pl.120.25"></a><var>120.25</var>The commissioner may adopt reporting guidelines to assure accuracy of data counts and <br/>
<a id="pl.120.26"></a><var>120.26</var>eligibility. Districts shall use any guidelines adopted by the commissioner.<br/>
<a id="pl.120.27"></a><var>120.27</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal year 2014 <br/>
<a id="pl.120.28"></a><var>120.28</var>and later.<br/>
<br/>
<a id="bill.8.17.0"></a><a id="pl.120.29"></a><var>120.29</var>    Sec. 17. Minnesota Statutes 2008, section 126C.05, subdivision 17, is amended to read:<br/>
<a id="pl.120.30"></a><var>120.30</var>    Subd. 17. <b>LEP pupil units.</b> (a) Limited English proficiency pupil units for fiscal <br/>
<a id="pl.120.31"></a><var>120.31</var>year 2004 and thereafter shall be determined according to this subdivision.<br/>
<a id="pl.120.32"></a><var>120.32</var>(b) The limited English proficiency concentration percentage for a district equals the <br/>
<a id="pl.120.33"></a><var>120.33</var>product of 100 times the ratio of:<br/>
<a id="pl.121.1"></a><var>121.1</var>(1) means the number of eligible pupils of limited English proficiency in average <br/>
<a id="pl.121.2"></a><var>121.2</var>daily membership enrolled in the district during the current fiscal year; to.<br/>
<a id="pl.121.3"></a><var>121.3</var>(2) the number of pupils in average daily membership enrolled in the district.<br/>
<a id="pl.121.4"></a><var>121.4</var>(c) The limited English proficiency pupil units for each eligible pupil of limited <br/>
<a id="pl.121.5"></a><var>121.5</var>English proficiency in average daily membership equals the lesser of one or the quotient <br/>
<a id="pl.121.6"></a><var>121.6</var>obtained by dividing the limited English proficiency concentration percentage for the <br/>
<a id="pl.121.7"></a><var>121.7</var>pupil's district of enrollment by 11.5.<br/>
<a id="pl.121.8"></a><var>121.8</var>(d) (b) Limited English proficiency pupil units shall be counted by the district of <br/>
<a id="pl.121.9"></a><var>121.9</var>enrollment.<br/>
<a id="pl.121.10"></a><var>121.10</var>(e) (c) Notwithstanding paragraph (d) (b), for the purposes of this subdivision, <br/>
<a id="pl.121.11"></a><var>121.11</var>pupils enrolled in a cooperative or intermediate school district shall be counted by the <br/>
<a id="pl.121.12"></a><var>121.12</var>district of residence.<br/>
<a id="pl.121.13"></a><var>121.13</var>(f) (d) For the purposes of this subdivision, the terms defined in section 
         <statute_ref>124D.59</statute_ref> <br/>
<a id="pl.121.14"></a><var>121.14</var>have the same meaning. <br/>
<a id="pl.121.15"></a><var>121.15</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal year 2014 <br/>
<a id="pl.121.16"></a><var>121.16</var>and later.<br/>
<br/>
<a id="bill.8.18.0"></a><a id="pl.121.17"></a><var>121.17</var>    Sec. 18. <b>[126C.09] EDUCATION FUNDING FRAMEWORK.</b><br/>
<a id="pl.121.18"></a><var>121.18</var>    Subdivision 1. <b>Basic formula framework; general classroom funding.</b> The <br/>
<a id="pl.121.19"></a><var>121.19</var>general classroom funding for each school district equals the sum of the district's general <br/>
<a id="pl.121.20"></a><var>121.20</var>education basic revenue, extended time revenue, compensatory revenue, LEP revenue, <br/>
<a id="pl.121.21"></a><var>121.21</var>referendum replacement revenue, and special education revenue.<br/>
<a id="pl.121.22"></a><var>121.22</var>    Subd. 2. <b>District instructional services.</b> A school district's instructional services <br/>
<a id="pl.121.23"></a><var>121.23</var>revenue equals the sum of its operating sparsity revenue, location equity revenue, and <br/>
<a id="pl.121.24"></a><var>121.24</var>declining enrollment revenue.<br/>
<a id="pl.121.25"></a><var>121.25</var>    Subd. 3. <b>District support services.</b> A school district's support services revenue <br/>
<a id="pl.121.26"></a><var>121.26</var>equals the sum of its operating capital revenue, alternative facilities revenue, integration <br/>
<a id="pl.121.27"></a><var>121.27</var>revenue, and transportation revenue.<br/>
<a id="pl.121.28"></a><var>121.28</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal year 2014 <br/>
<a id="pl.121.29"></a><var>121.29</var>and later.<br/>
<br/>
<a id="bill.8.19.0"></a><a id="pl.121.30"></a><var>121.30</var>    Sec. 19. Minnesota Statutes 2008, section 126C.10, subdivision 1, is amended to read:<br/>
<a id="pl.121.31"></a><var>121.31</var>    Subdivision 1. <b>General education revenue.</b> (a) For fiscal year 2006 and later <br/>
<a id="pl.121.32"></a><var>121.32</var>through 2013, the general education revenue for each district equals the sum of the <br/>
<a id="pl.121.33"></a><var>121.33</var>district's basic revenue, extended time revenue, gifted and talented revenue, basic skills <br/>
<a id="pl.122.1"></a><var>122.1</var>revenue, training and experience revenue, secondary sparsity revenue, elementary sparsity <br/>
<a id="pl.122.2"></a><var>122.2</var>revenue, transportation sparsity revenue, total operating capital revenue, equity revenue, <br/>
<a id="pl.122.3"></a><var>122.3</var>alternative teacher compensation revenue, and transition revenue.<br/>
<a id="pl.122.4"></a><var>122.4</var>(b) For fiscal years 2014 and later, a school district's general education revenue <br/>
<a id="pl.122.5"></a><var>122.5</var>equals the sum of its basic revenue, extended time revenue, declining enrollment revenue, <br/>
<a id="pl.122.6"></a><var>122.6</var>basic skills revenue, location equity revenue, referendum replacement revenue, secondary <br/>
<a id="pl.122.7"></a><var>122.7</var>sparsity revenue, elementary sparsity revenue, transportation revenue, and total operating <br/>
<a id="pl.122.8"></a><var>122.8</var>capital revenue.<br/>
<a id="pl.122.9"></a><var>122.9</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal year 2014 <br/>
<a id="pl.122.10"></a><var>122.10</var>and later.<br/>
<br/>
<a id="bill.8.20.0"></a><a id="pl.122.11"></a><var>122.11</var>    Sec. 20. Minnesota Statutes 2008, section 126C.10, subdivision 2, is amended to read:<br/>
<a id="pl.122.12"></a><var>122.12</var>    Subd. 2. <b>Basic revenue.</b> (a) The basic revenue for each district equals the formula <br/>
<a id="pl.122.13"></a><var>122.13</var>allowance times the adjusted marginal cost pupil units for the school year. <br/>
<a id="pl.122.14"></a><var>122.14</var>(b) The formula allowance for fiscal year 2007 is $4,974. The formula allowance for <br/>
<a id="pl.122.15"></a><var>122.15</var>fiscal year 2008 is $5,074 and the formula allowance for fiscal year 2009 and subsequent <br/>
<a id="pl.122.16"></a><var>122.16</var>years is $5,124.<br/>
<a id="pl.122.17"></a><var>122.17</var>(c) The formula allowance for fiscal year 2014 is $7,500. The formula allowance <br/>
<a id="pl.122.18"></a><var>122.18</var>for fiscal year 2015 and later equals the formula allowance for the previous year times <br/>
<a id="pl.122.19"></a><var>122.19</var>the sum of 1.0 and the greater of zero or the ratio of implicit price deflator, as defined in <br/>
<a id="pl.122.20"></a><var>122.20</var>section 275.70, subdivision 2, for the most recent year to the implicit price deflator for <br/>
<a id="pl.122.21"></a><var>122.21</var>the previous year.<br/>
<a id="pl.122.22"></a><var>122.22</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal year 2014 <br/>
<a id="pl.122.23"></a><var>122.23</var>and later.<br/>
<br/>
<a id="bill.8.21.0"></a><a id="pl.122.24"></a><var>122.24</var>    Sec. 21. Minnesota Statutes 2008, section 126C.10, subdivision 2a, is amended to read:<br/>
<a id="pl.122.25"></a><var>122.25</var>    Subd. 2a. <b>Extended time revenue.</b> (a) A school district's extended time revenue <br/>
<a id="pl.122.26"></a><var>122.26</var>is equal to the product of $4,601 the formula allowance for that year and the sum of <br/>
<a id="pl.122.27"></a><var>122.27</var>the adjusted marginal cost pupil units of the district for each pupil in average daily <br/>
<a id="pl.122.28"></a><var>122.28</var>membership in excess of 1.0 and less than 1.2 according to section 
         <statute_ref>126C.05, subdivision 8</statute_ref>. <br/>
<a id="pl.122.29"></a><var>122.29</var>(b) A school district's extended time revenue may be used for extended day <br/>
<a id="pl.122.30"></a><var>122.30</var>programs, extended week programs, summer school, and other programming authorized <br/>
<a id="pl.122.31"></a><var>122.31</var>under the learning year program.<br/>
<a id="pl.122.32"></a><var>122.32</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal year 2014 <br/>
<a id="pl.122.33"></a><var>122.33</var>and later.<br/>
<br/>
<a id="bill.8.22.0"></a><a id="pl.123.1"></a><var>123.1</var>    Sec. 22. Minnesota Statutes 2008, section 126C.10, is amended by adding a <br/>
<a id="pl.123.2"></a><var>123.2</var>subdivision to read:<br/>
<a id="pl.123.3"></a><var>123.3</var>    Subd. 2c. <b>Declining enrollment revenue.</b> A school district's declining enrollment <br/>
<a id="pl.123.4"></a><var>123.4</var>revenue equals the greater of zero or the product of: (1) the basic formula allowance for <br/>
<a id="pl.123.5"></a><var>123.5</var>that year; and (2) the difference between the mean average adjusted pupil units for the <br/>
<a id="pl.123.6"></a><var>123.6</var>three preceding years and the adjusted pupil units for the current year.<br/>
<a id="pl.123.7"></a><var>123.7</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal year 2014 <br/>
<a id="pl.123.8"></a><var>123.8</var>and later.<br/>
<br/>
<a id="bill.8.23.0"></a><a id="pl.123.9"></a><var>123.9</var>    Sec. 23. Minnesota Statutes 2008, section 126C.10, is amended by adding a <br/>
<a id="pl.123.10"></a><var>123.10</var>subdivision to read:<br/>
<a id="pl.123.11"></a><var>123.11</var>    Subd. 2d. <b>Location equity revenue.</b> A school district's location equity revenue <br/>
<a id="pl.123.12"></a><var>123.12</var>equals the product of:<br/>
<a id="pl.123.13"></a><var>123.13</var>(1) .50;<br/>
<a id="pl.123.14"></a><var>123.14</var>(2) the basic formula allowance for that year;<br/>
<a id="pl.123.15"></a><var>123.15</var>(3) the district's adjusted pupil units for that year; and<br/>
<a id="pl.123.16"></a><var>123.16</var>(4) the district's location equity index minus .9.<br/>
<a id="pl.123.17"></a><var>123.17</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal year 2014 <br/>
<a id="pl.123.18"></a><var>123.18</var>and later.<br/>
<br/>
<a id="bill.8.24.0"></a><a id="pl.123.19"></a><var>123.19</var>    Sec. 24. Minnesota Statutes 2008, section 126C.10, is amended by adding a <br/>
<a id="pl.123.20"></a><var>123.20</var>subdivision to read:<br/>
<a id="pl.123.21"></a><var>123.21</var>    Subd. 2e. <b>Referendum replacement revenue.</b> A school district's referendum <br/>
<a id="pl.123.22"></a><var>123.22</var>replacement revenue equals $500 times the district's adjusted pupil units for that year.<br/>
<a id="pl.123.23"></a><var>123.23</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal year 2014 <br/>
<a id="pl.123.24"></a><var>123.24</var>and later.<br/>
<br/>
<a id="bill.8.25.0"></a><a id="pl.123.25"></a><var>123.25</var>    Sec. 25. Minnesota Statutes 2008, section 126C.10, subdivision 3, is amended to read:<br/>
<a id="pl.123.26"></a><var>123.26</var>    Subd. 3. <b>Compensatory education revenue.</b> (a) The compensatory education <br/>
<a id="pl.123.27"></a><var>123.27</var>revenue for each building in the district equals  the greater of: (1) $2,500 times the district's <br/>
<a id="pl.123.28"></a><var>123.28</var>enrollment of students eligible for free or reduced-price meals under section 126C.05, <br/>
<a id="pl.123.29"></a><var>123.29</var>subdivision 3, paragraph (a), clause (1); or (2) 40 percent of the formula allowance minus <br/>
<a id="pl.123.30"></a><var>123.30</var>$415 times the compensation revenue pupil units computed according to section 
         <statute_ref>126C.05, <br/>
<a id="pl.123.31"></a><var>123.31</var>subdivision 3
         </statute_ref>. Revenue shall be paid to the district and must be allocated according to <br/>
<a id="pl.123.32"></a><var>123.32</var>section 
         <statute_ref>126C.15, subdivision 2</statute_ref>. <br/>
<a id="pl.124.1"></a><var>124.1</var>(b) When the district contracting with an alternative program under section 
         <statute_ref>124D.69</statute_ref> <br/>
<a id="pl.124.2"></a><var>124.2</var>changes prior to the start of a school year, the compensatory revenue generated by pupils <br/>
<a id="pl.124.3"></a><var>124.3</var>attending the program shall be paid to the district contracting with the alternative program <br/>
<a id="pl.124.4"></a><var>124.4</var>for the current school year, and shall not be paid to the district contracting with the <br/>
<a id="pl.124.5"></a><var>124.5</var>alternative program for the prior school year. <br/>
<a id="pl.124.6"></a><var>124.6</var>(c) When the fiscal agent district for an area learning center changes prior to the start <br/>
<a id="pl.124.7"></a><var>124.7</var>of a school year, the compensatory revenue shall be paid to the fiscal agent district for the <br/>
<a id="pl.124.8"></a><var>124.8</var>current school year, and shall not be paid to the fiscal agent district for the prior school year.<br/>
<a id="pl.124.9"></a><var>124.9</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal year 2014 <br/>
<a id="pl.124.10"></a><var>124.10</var>and later.<br/>
<br/>
<a id="bill.8.26.0"></a><a id="pl.124.11"></a><var>124.11</var>    Sec. 26. Minnesota Statutes 2008, section 126C.10, subdivision 4, is amended to read:<br/>
<a id="pl.124.12"></a><var>124.12</var>    Subd. 4. <b>Basic skills revenue.</b> A school district's basic skills revenue equals the <br/>
<a id="pl.124.13"></a><var>124.13</var>sum of:<br/>
<a id="pl.124.14"></a><var>124.14</var>(1) compensatory revenue under subdivision 3; plus<br/>
<a id="pl.124.15"></a><var>124.15</var>(2) limited English proficiency revenue under section 
         <statute_ref>124D.65, subdivision 5</statute_ref>; plus. <br/>
<a id="pl.124.16"></a><var>124.16</var>(3) $250 times the limited English proficiency pupil units under section 
<statute_ref>126C.05, <br/>
<a id="pl.124.17"></a><var>124.17</var>subdivision 17
</statute_ref>. <br/>
<a id="pl.124.18"></a><var>124.18</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal year 2014 <br/>
<a id="pl.124.19"></a><var>124.19</var>and later.<br/>
<br/>
<a id="bill.8.27.0"></a><a id="pl.124.20"></a><var>124.20</var>    Sec. 27. Minnesota Statutes 2008, section 126C.10, subdivision 6, is amended to read:<br/>
<a id="pl.124.21"></a><var>124.21</var>    Subd. 6. <b>Definitions.</b> The definitions in this subdivision apply only to subdivisions <br/>
<a id="pl.124.22"></a><var>124.22</var>7 and 8.<br/>
<a id="pl.124.23"></a><var>124.23</var>(a) "High school" means a public secondary school, except a charter school under <br/>
<a id="pl.124.24"></a><var>124.24</var>section 
         <statute_ref>124D.10</statute_ref>, that has pupils enrolled in at least the 10th, 11th, and 12th grades. If <br/>
<a id="pl.124.25"></a><var>124.25</var>there is no high school in the district and the school is at least 19 15 miles from the next <br/>
<a id="pl.124.26"></a><var>124.26</var>nearest school, the commissioner must designate one school in the district as a high school <br/>
<a id="pl.124.27"></a><var>124.27</var>for the purposes of this section.<br/>
<a id="pl.124.28"></a><var>124.28</var>(b) "Secondary average daily membership" means, for a district that has only one <br/>
<a id="pl.124.29"></a><var>124.29</var>high school, the average daily membership of pupils served in grades 7 through 12. For a <br/>
<a id="pl.124.30"></a><var>124.30</var>district that has more than one high school, "secondary average daily membership" for <br/>
<a id="pl.124.31"></a><var>124.31</var>each high school means the product of the average daily membership of pupils served in <br/>
<a id="pl.124.32"></a><var>124.32</var>grades 7 through 12 in the high school, times the ratio of six to the number of grades <br/>
<a id="pl.124.33"></a><var>124.33</var>in the high school.<br/>
<a id="pl.125.1"></a><var>125.1</var>(c) "Attendance area" means the total surface area of the district, in square miles, <br/>
<a id="pl.125.2"></a><var>125.2</var>divided by the number of high schools in the district. For a district that does not operate <br/>
<a id="pl.125.3"></a><var>125.3</var>a high school and is less than 19 15 miles from the nearest operating high school, the <br/>
<a id="pl.125.4"></a><var>125.4</var>attendance area equals zero.<br/>
<a id="pl.125.5"></a><var>125.5</var>(d) "Isolation index" for a high school means the square root of 55 percent of the <br/>
<a id="pl.125.6"></a><var>125.6</var>attendance area plus the distance in miles, according to the usually traveled routes, <br/>
<a id="pl.125.7"></a><var>125.7</var>between the high school and the nearest high school. For a district in which there is located <br/>
<a id="pl.125.8"></a><var>125.8</var>land defined in section 
         <statute_ref>84A.01</statute_ref>, 
         <statute_ref>84A.20</statute_ref>, or 
         <statute_ref>84A.31</statute_ref>, the distance in miles is the sum of: <br/>
<a id="pl.125.9"></a><var>125.9</var>(1) the square root of one-half of the attendance area; and<br/>
<a id="pl.125.10"></a><var>125.10</var>(2) the distance from the border of the district to the nearest high school.<br/>
<a id="pl.125.11"></a><var>125.11</var>(e) "Qualifying high school" means a high school that has an isolation index greater <br/>
<a id="pl.125.12"></a><var>125.12</var>than 23 and that has secondary average daily membership of less than 400.<br/>
<a id="pl.125.13"></a><var>125.13</var>(f) "Qualifying elementary school" means a public elementary school, except a <br/>
<a id="pl.125.14"></a><var>125.14</var>charter school under section 
         <statute_ref>124D.10</statute_ref>, that is located 19 15 miles or more from the nearest <br/>
<a id="pl.125.15"></a><var>125.15</var>elementary school or from the nearest elementary school within the district and, in either <br/>
<a id="pl.125.16"></a><var>125.16</var>case, has an elementary average daily membership of an average of 20 or fewer per grade.<br/>
<a id="pl.125.17"></a><var>125.17</var>(g) "Elementary average daily membership" means, for a district that has only <br/>
<a id="pl.125.18"></a><var>125.18</var>one elementary school, the average daily membership of pupils served in kindergarten <br/>
<a id="pl.125.19"></a><var>125.19</var>through grade 6. For a district that has more than one elementary school, "average daily <br/>
<a id="pl.125.20"></a><var>125.20</var>membership" for each school means the average daily membership of pupils served in <br/>
<a id="pl.125.21"></a><var>125.21</var>kindergarten through grade 6 multiplied by the ratio of seven to the number of grades <br/>
<a id="pl.125.22"></a><var>125.22</var>in the elementary school.<br/>
<a id="pl.125.23"></a><var>125.23</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal year 2014 <br/>
<a id="pl.125.24"></a><var>125.24</var>and later.<br/>
<br/>
<a id="bill.8.28.0"></a><a id="pl.125.25"></a><var>125.25</var>    Sec. 28. Minnesota Statutes 2008, section 126C.10, subdivision 13, is amended to read:<br/>
<a id="pl.125.26"></a><var>125.26</var>    Subd. 13. <b>Total operating capital</b><b> and technology</b><b> revenue.</b> (a) Total operating <br/>
<a id="pl.125.27"></a><var>125.27</var>capital revenue for a district equals: (1) $50 times the adjusted pupil units for the school <br/>
<a id="pl.125.28"></a><var>125.28</var>year for technology purposes; (2) for any district not participating in the alternative <br/>
<a id="pl.125.29"></a><var>125.29</var>facilities program under section 123B.59, $600 times the adjusted pupil units for deferred <br/>
<a id="pl.125.30"></a><var>125.30</var>maintenance and health and safety purposes under sections 123B.57 and 123B.59; (3) the <br/>
<a id="pl.125.31"></a><var>125.31</var>amount determined under paragraph (b) or (c), plus $73; and (4) $100 times the adjusted <br/>
<a id="pl.125.32"></a><var>125.32</var>marginal cost pupil units for the school year. The revenue must be placed in a reserved <br/>
<a id="pl.125.33"></a><var>125.33</var>account in the general fund and may only be used according to subdivision 14.<br/>
<a id="pl.125.34"></a><var>125.34</var>(b) Capital revenue for a district equals $100 times the district's maintenance cost <br/>
<a id="pl.125.35"></a><var>125.35</var>index times its adjusted marginal cost pupil units for the school year.<br/>
<a id="pl.126.1"></a><var>126.1</var>(c) The revenue for a district that operates a program under section 
         <statute_ref>124D.128</statute_ref>, is <br/>
<a id="pl.126.2"></a><var>126.2</var>increased by an amount equal to $30 times the number of marginal cost adjusted pupil <br/>
<a id="pl.126.3"></a><var>126.3</var>units served at the site where the program is implemented.<br/>
<a id="pl.126.4"></a><var>126.4</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal year 2014 <br/>
<a id="pl.126.5"></a><var>126.5</var>and later.<br/>
<br/>
<a id="bill.8.29.0"></a><a id="pl.126.6"></a><var>126.6</var>    Sec. 29. Minnesota Statutes 2008, section 126C.10, subdivision 14, is amended to read:<br/>
<a id="pl.126.7"></a><var>126.7</var>    Subd. 14. <b>Uses of total operating capital revenue.</b> Technology revenue may only <br/>
<a id="pl.126.8"></a><var>126.8</var>be used for purposes in clauses (18), (19), (21), (23), and (24). Total operating capital <br/>
<a id="pl.126.9"></a><var>126.9</var>revenue may be used only for the following purposes:<br/>
<a id="pl.126.10"></a><var>126.10</var>(1) to acquire land for school purposes;<br/>
<a id="pl.126.11"></a><var>126.11</var>(2) to acquire or construct buildings for school purposes;<br/>
<a id="pl.126.12"></a><var>126.12</var>(3) to rent or lease buildings, including the costs of building repair or improvement <br/>
<a id="pl.126.13"></a><var>126.13</var>that are part of a lease agreement;<br/>
<a id="pl.126.14"></a><var>126.14</var>(4) to improve and repair school sites and buildings, and equip or reequip school <br/>
<a id="pl.126.15"></a><var>126.15</var>buildings with permanent attached fixtures, including library media centers;<br/>
<a id="pl.126.16"></a><var>126.16</var>(5) for a surplus school building that is used substantially for a public nonschool <br/>
<a id="pl.126.17"></a><var>126.17</var>purpose;<br/>
<a id="pl.126.18"></a><var>126.18</var>(6) to eliminate barriers or increase access to school buildings by individuals with a <br/>
<a id="pl.126.19"></a><var>126.19</var>disability;<br/>
<a id="pl.126.20"></a><var>126.20</var>(7) to bring school buildings into compliance with the State Fire Code adopted <br/>
<a id="pl.126.21"></a><var>126.21</var>according to chapter 299F;<br/>
<a id="pl.126.22"></a><var>126.22</var>(8) to remove asbestos from school buildings, encapsulate asbestos, or make <br/>
<a id="pl.126.23"></a><var>126.23</var>asbestos-related repairs;<br/>
<a id="pl.126.24"></a><var>126.24</var>(9) to clean up and dispose of polychlorinated biphenyls found in school buildings;<br/>
<a id="pl.126.25"></a><var>126.25</var>(10) to clean up, remove, dispose of, and make repairs related to storing heating fuel <br/>
<a id="pl.126.26"></a><var>126.26</var>or transportation fuels such as alcohol, gasoline, fuel oil, and special fuel, as defined <br/>
<a id="pl.126.27"></a><var>126.27</var>in section 
         <statute_ref>296A.01</statute_ref>; <br/>
<a id="pl.126.28"></a><var>126.28</var>(11) for energy audits for school buildings and to modify buildings if the audit <br/>
<a id="pl.126.29"></a><var>126.29</var>indicates the cost of the modification can be recovered within ten years;<br/>
<a id="pl.126.30"></a><var>126.30</var>(12) to improve buildings that are leased according to section 
         <statute_ref>123B.51, subdivision 4</statute_ref>; <br/>
<a id="pl.126.31"></a><var>126.31</var>(13) to pay special assessments levied against school property but not to pay <br/>
<a id="pl.126.32"></a><var>126.32</var>assessments for service charges;<br/>
<a id="pl.126.33"></a><var>126.33</var>(14) to pay principal and interest on state loans for energy conservation according to <br/>
<a id="pl.126.34"></a><var>126.34</var>section 
         <statute_ref>216C.37</statute_ref> or loans made under the Douglas J. Johnson Economic Protection Trust <br/>
<a id="pl.126.35"></a><var>126.35</var>Fund Act according to sections 
         <statute_ref>298.292</statute_ref> to 
         <statute_ref>298.298</statute_ref>; <br/>
<a id="pl.127.1"></a><var>127.1</var>(15) to purchase or lease interactive telecommunications equipment;<br/>
<a id="pl.127.2"></a><var>127.2</var>(16) by board resolution, to transfer money into the debt redemption fund to: (i) <br/>
<a id="pl.127.3"></a><var>127.3</var>pay the amounts needed to meet, when due, principal and interest payments on certain <br/>
<a id="pl.127.4"></a><var>127.4</var>obligations issued according to chapter 475; or (ii) pay principal and interest on debt <br/>
<a id="pl.127.5"></a><var>127.5</var>service loans or capital loans according to section 
         <statute_ref>126C.70</statute_ref>; <br/>
<a id="pl.127.6"></a><var>127.6</var>(17) to pay operating capital-related assessments of any entity formed under a <br/>
<a id="pl.127.7"></a><var>127.7</var>cooperative agreement between two or more districts;<br/>
<a id="pl.127.8"></a><var>127.8</var>(18) to purchase or lease computers and related materials, copying machines, <br/>
<a id="pl.127.9"></a><var>127.9</var>telecommunications equipment, and other noninstructional equipment;<br/>
<a id="pl.127.10"></a><var>127.10</var>(19) to purchase or lease assistive technology or equipment for instructional <br/>
<a id="pl.127.11"></a><var>127.11</var>programs;<br/>
<a id="pl.127.12"></a><var>127.12</var>(20) to purchase textbooks;<br/>
<a id="pl.127.13"></a><var>127.13</var>(21) to purchase new and replacement library media resources or technology;<br/>
<a id="pl.127.14"></a><var>127.14</var>(22) to purchase vehicles;<br/>
<a id="pl.127.15"></a><var>127.15</var>(23) to purchase or lease telecommunications equipment, computers, and related <br/>
<a id="pl.127.16"></a><var>127.16</var>equipment for integrated information management systems for:<br/>
<a id="pl.127.17"></a><var>127.17</var>(i) managing and reporting learner outcome information for all students under a <br/>
<a id="pl.127.18"></a><var>127.18</var>results-oriented graduation rule;<br/>
<a id="pl.127.19"></a><var>127.19</var>(ii) managing student assessment, services, and achievement information required <br/>
<a id="pl.127.20"></a><var>127.20</var>for students with individual education plans; and<br/>
<a id="pl.127.21"></a><var>127.21</var>(iii) other classroom information management needs; and<br/>
<a id="pl.127.22"></a><var>127.22</var>(24) to pay personnel costs directly related to the acquisition, operation, and <br/>
<a id="pl.127.23"></a><var>127.23</var>maintenance of telecommunications systems, computers, related equipment, and network <br/>
<a id="pl.127.24"></a><var>127.24</var>and applications software.<br/>
<a id="pl.127.25"></a><var>127.25</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal year 2014.<br/>
<br/>
<a id="bill.8.30.0"></a><a id="pl.127.26"></a><var>127.26</var>    Sec. 30. Minnesota Statutes 2008, section 126C.10, subdivision 18, is amended to read:<br/>
<a id="pl.127.27"></a><var>127.27</var>    Subd. 18. <b>Transportation sparsity revenue allowance.</b> (a) A district's <br/>
<a id="pl.127.28"></a><var>127.28</var>transportation sparsity allowance equals the greater of zero or the result of the following <br/>
<a id="pl.127.29"></a><var>127.29</var>computation:<br/>
<a id="pl.127.30"></a><var>127.30</var>(i) Multiply the formula allowance according to subdivision 2, by .1469.<br/>
<a id="pl.127.31"></a><var>127.31</var>(ii) Multiply the result in clause (i) by the district's sparsity index raised to the <br/>
<a id="pl.127.32"></a><var>127.32</var>26/100 power.<br/>
<a id="pl.127.33"></a><var>127.33</var>(iii) Multiply the result in clause (ii) by the district's density index raised to the <br/>
<a id="pl.127.34"></a><var>127.34</var>13/100 power.<br/>
<a id="pl.127.35"></a><var>127.35</var>(iv) Multiply the formula allowance according to subdivision 2, by .0485.<br/>
<a id="pl.128.1"></a><var>128.1</var>(v) Subtract the result in clause (iv) from the result in clause (iii).<br/>
<a id="pl.128.2"></a><var>128.2</var>(b) Transportation sparsity revenue is equal to the transportation sparsity allowance <br/>
<a id="pl.128.3"></a><var>128.3</var>times the adjusted marginal cost pupil units.<br/>
<a id="pl.128.4"></a><var>128.4</var><b>EFFECTIVE DATE.</b>This section is effective for fiscal year 2014 and later.<br/>
<br/>
<a id="bill.8.31.0"></a><a id="pl.128.5"></a><var>128.5</var>    Sec. 31. Minnesota Statutes 2008, section 126C.10, is amended by adding a <br/>
<a id="pl.128.6"></a><var>128.6</var>subdivision to read:<br/>
<a id="pl.128.7"></a><var>128.7</var>    Subd. 18a. <b>Transportation revenue.</b> (a) A school district's transportation revenue <br/>
<a id="pl.128.8"></a><var>128.8</var>equals the sum of its transportation sparsity revenue, hazardous transportation revenue, <br/>
<a id="pl.128.9"></a><var>128.9</var>and bus purchase revenue.<br/>
<a id="pl.128.10"></a><var>128.10</var>(b) A school district's transportation sparsity revenue equals its transportation <br/>
<a id="pl.128.11"></a><var>128.11</var>sparsity allowance times its adjusted pupil units for that year.<br/>
<a id="pl.128.12"></a><var>128.12</var>(c) A school district's hazardous transportation aid equals the amount necessary to <br/>
<a id="pl.128.13"></a><var>128.13</var>provide transportation services to students facing hazardous transportation conditions. A <br/>
<a id="pl.128.14"></a><var>128.14</var>district's hazardous transportation aid must not exceed 20 percent of the district's total <br/>
<a id="pl.128.15"></a><var>128.15</var>regular to and from school transportation costs for that year. For any year, a school <br/>
<a id="pl.128.16"></a><var>128.16</var>district may receive aid under this paragraph only after the school board has considered <br/>
<a id="pl.128.17"></a><var>128.17</var>the comprehensive plan for hazardous transportation submitted by the district's pupil <br/>
<a id="pl.128.18"></a><var>128.18</var>transportation safety committee at a regularly scheduled meeting of the school board.  The <br/>
<a id="pl.128.19"></a><var>128.19</var>comprehensive plan may not be adopted until after the board has allowed the public <br/>
<a id="pl.128.20"></a><var>128.20</var>reasonable time to testify on the plan.<br/>
<a id="pl.128.21"></a><var>128.21</var>(d) A school district's bus purchase revenue equals five percent of the district's <br/>
<a id="pl.128.22"></a><var>128.22</var>spending on transportation services for the previous fiscal year.<br/>
<a id="pl.128.23"></a><var>128.23</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal year 2014 <br/>
<a id="pl.128.24"></a><var>128.24</var>and later.<br/>
<br/>
<a id="bill.8.32.0"></a><a id="pl.128.25"></a><var>128.25</var>    Sec. 32. <b>[126C.115] INNOVATION REVENUE.</b><br/>
<a id="pl.128.26"></a><var>128.26</var>    (a) A school district must use its innovation revenue to implement evidence-based <br/>
<a id="pl.128.27"></a><var>128.27</var>innovation premised on research-based curriculum and instruction and other education <br/>
<a id="pl.128.28"></a><var>128.28</var>programs and practices, including best teaching practices, that are known to improve <br/>
<a id="pl.128.29"></a><var>128.29</var>academic performance for diverse groups of students. If a school district demonstrates <br/>
<a id="pl.128.30"></a><var>128.30</var>low growth and needs to improve students' current achievement and educational growth, <br/>
<a id="pl.128.31"></a><var>128.31</var>as measured by a growth-based value-added system under section 120B.35, the school <br/>
<a id="pl.128.32"></a><var>128.32</var>district must submit a plan to the commissioner, developed in consultation with interested <br/>
<a id="pl.128.33"></a><var>128.33</var>parents, that describes how the district proposes to use its innovation revenue to <br/>
<a id="pl.129.1"></a><var>129.1</var>supplement state reading requirements under section 120B.12, subdivision 1, and state <br/>
<a id="pl.129.2"></a><var>129.2</var>math and science requirements under section 120B.023, subdivision 2, paragraphs (b) and <br/>
<a id="pl.129.3"></a><var>129.3</var>(d), and improve student outcomes. The plan must:<br/>
<a id="pl.129.4"></a><var>129.4</var>    (1) identify specific education goals, consistent with this section, and the indicators <br/>
<a id="pl.129.5"></a><var>129.5</var>to demonstrate progress toward achieving those goals, which may include a value-added <br/>
<a id="pl.129.6"></a><var>129.6</var>assessment model under sections 120B.35 and 120B.362;<br/>
<a id="pl.129.7"></a><var>129.7</var>    (2) supplement current district initiatives that may transform district programs, <br/>
<a id="pl.129.8"></a><var>129.8</var>practices, and processes sufficient to significantly improve student outcomes, which <br/>
<a id="pl.129.9"></a><var>129.9</var>may include, among other initiatives, an organizational assessment and performance <br/>
<a id="pl.129.10"></a><var>129.10</var>improvement process under section 120B.3625; and<br/>
<a id="pl.129.11"></a><var>129.11</var>    (3) demonstrate how innovation revenue helps narrow and eliminate differences in <br/>
<a id="pl.129.12"></a><var>129.12</var>student academic achievement in reading, math, and science based on student measures of <br/>
<a id="pl.129.13"></a><var>129.13</var>mobility, attendance, race and ethnicity, gender, English language learner status, eligibility <br/>
<a id="pl.129.14"></a><var>129.14</var>for free or reduced price lunch, and special education, among other outcomes.<br/>
<a id="pl.129.15"></a><var>129.15</var>    (b) After transmitting its plan to the commissioner, a district must spend its <br/>
<a id="pl.129.16"></a><var>129.16</var>innovation revenue effectively and efficiently, consistent with its plan. A school district <br/>
<a id="pl.129.17"></a><var>129.17</var>that submits an innovation revenue plan under paragraph (a) must report annually by June <br/>
<a id="pl.129.18"></a><var>129.18</var>30 to the commissioner and post on the district's official Web site reliable and accessible <br/>
<a id="pl.129.19"></a><var>129.19</var>information and supporting longitudinal data showing the amount of progress the district <br/>
<a id="pl.129.20"></a><var>129.20</var>made in the immediately preceding school year and previous school years in realizing its <br/>
<a id="pl.129.21"></a><var>129.21</var>innovation revenue goals. The commissioner must analyze the data from the annual <br/>
<a id="pl.129.22"></a><var>129.22</var>district reports and post the analysis on the department's official Web site.<br/>
<a id="pl.129.23"></a><var>129.23</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal year 2014 <br/>
<a id="pl.129.24"></a><var>129.24</var>and later.<br/>
<br/>
<a id="bill.8.33.0"></a><a id="pl.129.25"></a><var>129.25</var>    Sec. 33. Minnesota Statutes 2008, section 126C.13, subdivision 4, is amended to read:<br/>
<a id="pl.129.26"></a><var>129.26</var>    Subd. 4. <b>General education aid.</b> For fiscal years 2007 and later, A district's general <br/>
<a id="pl.129.27"></a><var>129.27</var>education aid is the sum of the following amounts equals its:<br/>
<a id="pl.129.28"></a><var>129.28</var>    (1) general education revenue, excluding equity revenue, total operating capital <br/>
<a id="pl.129.29"></a><var>129.29</var>revenue, alternative teacher compensation revenue, and transition revenue;<br/>
<a id="pl.129.30"></a><var>129.30</var>    (2) operating capital aid under section 
<statute_ref>126C.10, subdivision 13b</statute_ref>;<br/>
<a id="pl.129.31"></a><var>129.31</var>    (3) equity aid under section 
<statute_ref>126C.10, subdivision 30</statute_ref>;<br/>
<a id="pl.129.32"></a><var>129.32</var>    (4) alternative teacher compensation aid under section 
<statute_ref>126C.10, subdivision 36</statute_ref>;<br/>
<a id="pl.129.33"></a><var>129.33</var>    (5) transition aid under section 
<statute_ref>126C.10, subdivision 33</statute_ref> for that year;<br/>
<a id="pl.129.34"></a><var>129.34</var>    (6) (2) shared time aid under section 
         <statute_ref>126C.01, subdivision 7</statute_ref>;<br/>
<a id="pl.129.35"></a><var>129.35</var>    (7) (3) referendum aid under section 
         <statute_ref>126C.17, subdivisions 7 and 7a</statute_ref>; and<br/>
<a id="pl.130.1"></a><var>130.1</var>    (8) (4) online learning aid according to section 
         <statute_ref>124D.096</statute_ref>.<br/>
<a id="pl.130.2"></a><var>130.2</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal year 2014 <br/>
<a id="pl.130.3"></a><var>130.3</var>and later.<br/>
<br/>
<a id="bill.8.34.0"></a><a id="pl.130.4"></a><var>130.4</var>    Sec. 34. Minnesota Statutes 2008, section 126C.13, subdivision 5, is amended to read:<br/>
<a id="pl.130.5"></a><var>130.5</var>    Subd. 5. <b>Uses of revenue.</b> Except as provided in sections 
<statute_ref>126C.10, subdivision <br/>
<a id="pl.130.6"></a><var>130.6</var>14
</statute_ref>; 
<statute_ref>126C.12</statute_ref>; and 
<statute_ref>126C.15</statute_ref>, (a) General education revenue may be used during the <br/>
<a id="pl.130.7"></a><var>130.7</var>regular school year and the summer for general and special school purposes and for <br/>
<a id="pl.130.8"></a><var>130.8</var>prekindergarten programs except as limited by paragraph (b).  <br/>
<a id="pl.130.9"></a><var>130.9</var>(b) General education revenue set-asides include:<br/>
<a id="pl.130.10"></a><var>130.10</var>(1) 1.0 percent of basic revenue must be used only for gifted and talented activities <br/>
<a id="pl.130.11"></a><var>130.11</var>consistent with section 120B.15;<br/>
<a id="pl.130.12"></a><var>130.12</var>(2) 5.0 percent of basic revenue must be used only to implement a district's <br/>
<a id="pl.130.13"></a><var>130.13</var>innovative revenue program activities under section 126C.115;<br/>
<a id="pl.130.14"></a><var>130.14</var>(3) basic skills revenue must be used according to section 126C.15; and<br/>
<a id="pl.130.15"></a><var>130.15</var>(4) operating capital revenue must be spent according to section 126C.10, <br/>
<a id="pl.130.16"></a><var>130.16</var>subdivision 14.<br/>
<a id="pl.130.17"></a><var>130.17</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal year 2014 <br/>
<a id="pl.130.18"></a><var>130.18</var>and later.<br/>
<br/>
<a id="bill.8.35.0"></a><a id="pl.130.19"></a><var>130.19</var>    Sec. 35. Minnesota Statutes 2008, section 126C.17, subdivision 1, is amended to read:<br/>
<a id="pl.130.20"></a><var>130.20</var>    Subdivision 1. <b>Referendum allowance.</b> (a) For fiscal year 2003 and later, a district's <br/>
<a id="pl.130.21"></a><var>130.21</var>initial referendum revenue allowance equals the sum of the allowance under section <br/>
<a id="pl.130.22"></a><var>130.22</var><statute_ref>126C.16, subdivision 2</statute_ref>, plus any additional allowance per resident marginal cost pupil <br/>
<a id="pl.130.23"></a><var>130.23</var>unit authorized under subdivision 9 before May 1, 2001, for fiscal year 2002 and later, <br/>
<a id="pl.130.24"></a><var>130.24</var>plus the referendum conversion allowance approved under subdivision 13, minus $415. <br/>
<a id="pl.130.25"></a><var>130.25</var>For districts with more than one referendum authority, the reduction must be computed <br/>
<a id="pl.130.26"></a><var>130.26</var>separately for each authority. The reduction must be applied first to the referendum <br/>
<a id="pl.130.27"></a><var>130.27</var>conversion allowance and next to the authority with the earliest expiration date. A <br/>
<a id="pl.130.28"></a><var>130.28</var>district's initial referendum revenue allowance may not be less than zero. <br/>
<a id="pl.130.29"></a><var>130.29</var>(b) For fiscal year 2003, a district's referendum revenue allowance equals the initial <br/>
<a id="pl.130.30"></a><var>130.30</var>referendum allowance plus any additional allowance per resident marginal cost pupil unit <br/>
<a id="pl.130.31"></a><var>130.31</var>authorized under subdivision 9 between April 30, 2001, and December 30, 2001, for <br/>
<a id="pl.130.32"></a><var>130.32</var>fiscal year 2003 and later.<br/>
<a id="pl.131.1"></a><var>131.1</var>(c) For fiscal year 2004 and later, A district's referendum revenue allowance equals <br/>
<a id="pl.131.2"></a><var>131.2</var>the sum of:<br/>
<a id="pl.131.3"></a><var>131.3</var>(1) the product of (i) the ratio of the resident marginal cost pupil units the district <br/>
<a id="pl.131.4"></a><var>131.4</var>would have counted for fiscal year 2004 under Minnesota Statutes 2002, section 
<statute_ref>126C.05</statute_ref>, <br/>
<a id="pl.131.5"></a><var>131.5</var>to the district's resident marginal cost pupil units for fiscal year 2004, times (ii) the greater <br/>
<a id="pl.131.6"></a><var>131.6</var>of zero or the district's initial referendum allowance plus any additional allowance per <br/>
<a id="pl.131.7"></a><var>131.7</var>resident marginal cost pupil unit authorized under subdivision 9 between April 30, 2001, <br/>
<a id="pl.131.8"></a><var>131.8</var>and May 30, 2003, for fiscal year 2003 and later 2014 less $500, plus <br/>
<a id="pl.131.9"></a><var>131.9</var>(2) any additional allowance per resident marginal cost pupil unit authorized under <br/>
<a id="pl.131.10"></a><var>131.10</var>subdivision 9 after May 30, 2003 2012, for fiscal year 2005 2014 and later.<br/>
<a id="pl.131.11"></a><var>131.11</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal year 2014 <br/>
<a id="pl.131.12"></a><var>131.12</var>and later.<br/>
<br/>
<a id="bill.8.36.0"></a><a id="pl.131.13"></a><var>131.13</var>    Sec. 36. Minnesota Statutes 2008, section 126C.17, subdivision 5, is amended to read:<br/>
<a id="pl.131.14"></a><var>131.14</var>    Subd. 5. <b>Referendum equalization revenue.</b> (a) For fiscal year 2003 and later, <br/>
<a id="pl.131.15"></a><var>131.15</var>A district's referendum equalization revenue equals the sum of the first tier referendum <br/>
<a id="pl.131.16"></a><var>131.16</var>equalization revenue and the second tier referendum equalization revenue.<br/>
<a id="pl.131.17"></a><var>131.17</var>(b) A district's first tier referendum equalization revenue equals the district's first <br/>
<a id="pl.131.18"></a><var>131.18</var>tier referendum equalization allowance times the district's resident marginal cost pupil <br/>
<a id="pl.131.19"></a><var>131.19</var>units for that year.<br/>
<a id="pl.131.20"></a><var>131.20</var>(c) For fiscal year 2006, a district's first tier referendum equalization allowance <br/>
<a id="pl.131.21"></a><var>131.21</var>equals the lesser of the district's referendum allowance under subdivision 1 or $500. For <br/>
<a id="pl.131.22"></a><var>131.22</var>fiscal year 2007, a district's first tier referendum equalization allowance equals the lesser <br/>
<a id="pl.131.23"></a><var>131.23</var>of the district's referendum allowance under subdivision 1 or $600.<br/>
<a id="pl.131.24"></a><var>131.24</var>For fiscal year 2008 and later, (b)  A district's first tier referendum equalization <br/>
<a id="pl.131.25"></a><var>131.25</var>allowance equals the lesser of the district's referendum allowance under subdivision 1 <br/>
<a id="pl.131.26"></a><var>131.26</var>or $700.<br/>
<a id="pl.131.27"></a><var>131.27</var>(d) (c) A district's second tier referendum equalization revenue equals the district's <br/>
<a id="pl.131.28"></a><var>131.28</var>second tier referendum equalization allowance times the district's resident marginal cost <br/>
<a id="pl.131.29"></a><var>131.29</var>pupil units for that year.<br/>
<a id="pl.131.30"></a><var>131.30</var>(e) For fiscal year 2006, a district's second tier referendum equalization allowance <br/>
<a id="pl.131.31"></a><var>131.31</var>equals the lesser of the district's referendum allowance under subdivision 1 or 18.6 percent <br/>
<a id="pl.131.32"></a><var>131.32</var>of the formula allowance, minus the district's first tier referendum equalization allowance. <br/>
<a id="pl.131.33"></a><var>131.33</var>For fiscal year 2007 and later, (d) A district's second tier referendum equalization <br/>
<a id="pl.131.34"></a><var>131.34</var>allowance equals the lesser of the district's referendum allowance under subdivision 1 or <br/>
<a id="pl.132.1"></a><var>132.1</var>26 percent of the formula allowance, minus the district's first tier referendum equalization <br/>
<a id="pl.132.2"></a><var>132.2</var>allowance.<br/>
<a id="pl.132.3"></a><var>132.3</var>(f)  (e) Notwithstanding paragraph (e) (d), the second tier referendum allowance for a <br/>
<a id="pl.132.4"></a><var>132.4</var>district qualifying for secondary sparsity revenue under section 
         <statute_ref>126C.10, subdivision 7</statute_ref>, or <br/>
<a id="pl.132.5"></a><var>132.5</var>elementary sparsity revenue under section 
         <statute_ref>126C.10, subdivision 8</statute_ref>, equals the district's <br/>
<a id="pl.132.6"></a><var>132.6</var>referendum allowance under subdivision 1 minus the district's first tier referendum <br/>
<a id="pl.132.7"></a><var>132.7</var>equalization allowance.<br/>
<a id="pl.132.8"></a><var>132.8</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal year 2014.<br/>
<br/>
<a id="bill.8.37.0"></a><a id="pl.132.9"></a><var>132.9</var>    Sec. 37. Minnesota Statutes 2008, section 126C.17, subdivision 6, is amended to read:<br/>
<a id="pl.132.10"></a><var>132.10</var>    Subd. 6. <b>Referendum equalization levy.</b> (a) For fiscal year 2003 and later, <br/>
<a id="pl.132.11"></a><var>132.11</var>A district's referendum equalization levy equals the sum of the first tier referendum <br/>
<a id="pl.132.12"></a><var>132.12</var>equalization levy and the second tier referendum equalization levy.<br/>
<a id="pl.132.13"></a><var>132.13</var>(b) A district's first tier referendum equalization levy equals the district's first tier <br/>
<a id="pl.132.14"></a><var>132.14</var>referendum equalization revenue times the lesser of one or the ratio of the district's <br/>
<a id="pl.132.15"></a><var>132.15</var>referendum market value per resident marginal cost pupil unit to $476,000 100 percent of <br/>
<a id="pl.132.16"></a><var>132.16</var>the statewide referendum market value equalizing factor.<br/>
<a id="pl.132.17"></a><var>132.17</var>(c) A district's second tier referendum equalization levy equals the district's second <br/>
<a id="pl.132.18"></a><var>132.18</var>tier referendum equalization revenue times the lesser of one or the ratio of the district's <br/>
<a id="pl.132.19"></a><var>132.19</var>referendum market value per resident marginal cost pupil unit to $270,000 60 percent of <br/>
<a id="pl.132.20"></a><var>132.20</var>the statewide referendum market value equalizing factor.<br/>
<a id="pl.132.21"></a><var>132.21</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal year 2014.<br/>
<br/>
<a id="bill.8.38.0"></a><a id="pl.132.22"></a><var>132.22</var>    Sec. 38. Minnesota Statutes 2008, section 126C.20, is amended to read:<br/>
<a id="pl.132.23"></a><var>132.23</var><b>126C.20 ANNUAL GENERAL EDUCATION AID APPROPRIATION.</b><br/>
<a id="pl.132.24"></a><var>132.24</var>There is annually appropriated from the general fund to the department the amount <br/>
<a id="pl.132.25"></a><var>132.25</var>amounts necessary for: (1) general education aid; (2) special education aid; (3) debt <br/>
<a id="pl.132.26"></a><var>132.26</var>service aid; and (4) the school bond agricultural credit. This amount These amounts must <br/>
<a id="pl.132.27"></a><var>132.27</var>be reduced by the amount of any money specifically appropriated for the same purpose <br/>
<a id="pl.132.28"></a><var>132.28</var>in any year from any state fund.<br/>
<a id="pl.132.29"></a><var>132.29</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal year 2014 <br/>
<a id="pl.132.30"></a><var>132.30</var>and later.<br/>
<br/>
<a id="bill.8.39.0"></a><a id="pl.132.31"></a><var>132.31</var>    Sec. 39. Minnesota Statutes 2008, section 126C.40, subdivision 1, is amended to read:<br/>
<a id="pl.133.1"></a><var>133.1</var>    Subdivision 1. <b>To lease building or land.</b> (a) When an independent or a special <br/>
<a id="pl.133.2"></a><var>133.2</var>school district or a group of independent or special school districts finds it economically <br/>
<a id="pl.133.3"></a><var>133.3</var>advantageous to rent or lease a building or land for any instructional purposes or <br/>
<a id="pl.133.4"></a><var>133.4</var>administrative purpose, or for school storage or furniture repair, and it determines that <br/>
<a id="pl.133.5"></a><var>133.5</var>the operating capital revenue authorized under section 
         <statute_ref>126C.10, subdivision 13</statute_ref>, is <br/>
<a id="pl.133.6"></a><var>133.6</var>insufficient for this purpose, it may apply to the commissioner for permission to make <br/>
<a id="pl.133.7"></a><var>133.7</var>an additional capital expenditure levy for this purpose. An application for permission to <br/>
<a id="pl.133.8"></a><var>133.8</var>levy under this subdivision must contain financial justification for the proposed levy, the <br/>
<a id="pl.133.9"></a><var>133.9</var>terms and conditions of the proposed lease, and a description of the space to be leased <br/>
<a id="pl.133.10"></a><var>133.10</var>and its proposed use.<br/>
<a id="pl.133.11"></a><var>133.11</var>    (b) The criteria for approval of applications to levy under this subdivision must <br/>
<a id="pl.133.12"></a><var>133.12</var>include: the reasonableness of the price, the appropriateness of the space to the proposed <br/>
<a id="pl.133.13"></a><var>133.13</var>activity, the feasibility of transporting pupils to the leased building or land, conformity <br/>
<a id="pl.133.14"></a><var>133.14</var>of the lease to the laws and rules of the state of Minnesota, and the appropriateness of <br/>
<a id="pl.133.15"></a><var>133.15</var>the proposed lease to the space needs and the financial condition of the district. The <br/>
<a id="pl.133.16"></a><var>133.16</var>commissioner must not authorize a levy under this subdivision in an amount greater than <br/>
<a id="pl.133.17"></a><var>133.17</var>the cost to the district of renting or leasing a building or land for approved purposes. <br/>
<a id="pl.133.18"></a><var>133.18</var>The proceeds of this levy must not be used for custodial or other maintenance services. <br/>
<a id="pl.133.19"></a><var>133.19</var>A district may not levy under this subdivision for the purpose of leasing or renting a <br/>
<a id="pl.133.20"></a><var>133.20</var>district-owned building or site to itself.<br/>
<a id="pl.133.21"></a><var>133.21</var>    (c) For agreements finalized after July 1, 1997, a district may not levy under this <br/>
<a id="pl.133.22"></a><var>133.22</var>subdivision for the purpose of leasing: (1) a newly constructed building used primarily <br/>
<a id="pl.133.23"></a><var>133.23</var>for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed <br/>
<a id="pl.133.24"></a><var>133.24</var>building addition or additions used primarily for regular kindergarten, elementary, or <br/>
<a id="pl.133.25"></a><var>133.25</var>secondary instruction that contains more than 20 percent of the square footage of the <br/>
<a id="pl.133.26"></a><var>133.26</var>previously existing building.<br/>
<a id="pl.133.27"></a><var>133.27</var>    (d) Notwithstanding paragraph (b), a district may levy under this subdivision for the <br/>
<a id="pl.133.28"></a><var>133.28</var>purpose of leasing or renting a district-owned building or site to itself only if the amount <br/>
<a id="pl.133.29"></a><var>133.29</var>is needed by the district to make payments required by a lease purchase agreement, <br/>
<a id="pl.133.30"></a><var>133.30</var>installment purchase agreement, or other deferred payments agreement authorized by law, <br/>
<a id="pl.133.31"></a><var>133.31</var>and the levy meets the requirements of paragraph (c). A levy authorized for a district by <br/>
<a id="pl.133.32"></a><var>133.32</var>the commissioner under this paragraph may be in the amount needed by the district to <br/>
<a id="pl.133.33"></a><var>133.33</var>make payments required by a lease purchase agreement, installment purchase agreement, <br/>
<a id="pl.133.34"></a><var>133.34</var>or other deferred payments agreement authorized by law, provided that any agreement <br/>
<a id="pl.133.35"></a><var>133.35</var>include a provision giving the school districts the right to terminate the agreement <br/>
<a id="pl.133.36"></a><var>133.36</var>annually without penalty.<br/>
<a id="pl.134.1"></a><var>134.1</var>    (e) The total levy under this subdivision for a district for any year must not exceed <br/>
<a id="pl.134.2"></a><var>134.2</var>$150 times the resident pupil units for the fiscal year to which the levy is attributable.<br/>
<a id="pl.134.3"></a><var>134.3</var>    (f) For agreements for which a review and comment have been submitted to the <br/>
<a id="pl.134.4"></a><var>134.4</var>Department of Education after April 1, 1998, the term "instructional purpose" as used in <br/>
<a id="pl.134.5"></a><var>134.5</var>this subdivision excludes expenditures on stadiums.<br/>
<a id="pl.134.6"></a><var>134.6</var>    (g) The commissioner of education may authorize a school district to exceed the <br/>
<a id="pl.134.7"></a><var>134.7</var>limit in paragraph (e) if the school district petitions the commissioner for approval. The <br/>
<a id="pl.134.8"></a><var>134.8</var>commissioner shall grant approval to a school district to exceed the limit in paragraph (e) <br/>
<a id="pl.134.9"></a><var>134.9</var>for not more than five years if the district meets the following criteria:<br/>
<a id="pl.134.10"></a><var>134.10</var>    (1) the school district has been experiencing pupil enrollment growth in the <br/>
<a id="pl.134.11"></a><var>134.11</var>preceding five years;<br/>
<a id="pl.134.12"></a><var>134.12</var>    (2) the purpose of the increased levy is in the long-term public interest;<br/>
<a id="pl.134.13"></a><var>134.13</var>    (3) the purpose of the increased levy promotes colocation of government services; <br/>
<a id="pl.134.14"></a><var>134.14</var>and<br/>
<a id="pl.134.15"></a><var>134.15</var>    (4) the purpose of the increased levy is in the long-term interest of the district by <br/>
<a id="pl.134.16"></a><var>134.16</var>avoiding over construction of school facilities.<br/>
<a id="pl.134.17"></a><var>134.17</var>    (h) A school district that is a member of an intermediate school district may include <br/>
<a id="pl.134.18"></a><var>134.18</var>in its authority under this section the costs associated with leases of administrative and <br/>
<a id="pl.134.19"></a><var>134.19</var>classroom space for intermediate school district programs. This authority must not <br/>
<a id="pl.134.20"></a><var>134.20</var>exceed $43 $50 times the adjusted marginal cost pupil units of the member districts. This <br/>
<a id="pl.134.21"></a><var>134.21</var>authority is in addition to any other authority authorized under this section.<br/>
<a id="pl.134.22"></a><var>134.22</var>    (i) In addition to the allowable capital levies in paragraph (a), a district that is a <br/>
<a id="pl.134.23"></a><var>134.23</var>member of the "Technology and Information Education Systems" data processing joint <br/>
<a id="pl.134.24"></a><var>134.24</var>board, that finds it economically advantageous to enter into a lease purchase agreement for <br/>
<a id="pl.134.25"></a><var>134.25</var>a building for a group of school districts or special school districts for staff development <br/>
<a id="pl.134.26"></a><var>134.26</var>purposes, may levy for its portion of lease costs attributed to the district within the total <br/>
<a id="pl.134.27"></a><var>134.27</var>levy limit in paragraph (e).<br/>
<a id="pl.134.28"></a><var>134.28</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal year 2014 <br/>
<a id="pl.134.29"></a><var>134.29</var>and later.<br/>
<br/>
<a id="bill.8.40.0"></a><a id="pl.134.30"></a><var>134.30</var>    Sec. 40. Minnesota Statutes 2008, section 127A.51, is amended to read:<br/>
<a id="pl.134.31"></a><var>134.31</var><b>127A.51 STATEWIDE AVERAGE REVENUE.</b><br/>
<a id="pl.134.32"></a><var>134.32</var>By October 1 of each year the commissioner must estimate the statewide average <br/>
<a id="pl.134.33"></a><var>134.33</var>adjusted general revenue per adjusted marginal cost pupil unit and the disparity in adjusted <br/>
<a id="pl.134.34"></a><var>134.34</var>general revenue among pupils and districts by computing the ratio of the 95th percentile <br/>
<a id="pl.135.1"></a><var>135.1</var>to the fifth percentile of adjusted general revenue. The commissioner must provide that <br/>
<a id="pl.135.2"></a><var>135.2</var>information to all districts.<br/>
<a id="pl.135.3"></a><var>135.3</var>If the disparity in adjusted general revenue as measured by the ratio of the 95th <br/>
<a id="pl.135.4"></a><var>135.4</var>percentile to the fifth percentile increases in any year, the commissioner shall recommend <br/>
<a id="pl.135.5"></a><var>135.5</var>to the legislature options for change in the general education formula that will limit the <br/>
<a id="pl.135.6"></a><var>135.6</var>disparity in adjusted general revenue to no more than the disparity for the previous <br/>
<a id="pl.135.7"></a><var>135.7</var>school year. The commissioner must submit the recommended options to the education <br/>
<a id="pl.135.8"></a><var>135.8</var>committees of the legislature by January 15.<br/>
<a id="pl.135.9"></a><var>135.9</var>For purposes of this section and section 
         <statute_ref>126C.10</statute_ref>, adjusted general revenue means:  <br/>
<a id="pl.135.10"></a><var>135.10</var>(1) for fiscal year 2002, the sum of basic revenue under section 
         <statute_ref>126C.10, subdivision <br/>
<a id="pl.135.11"></a><var>135.11</var>2
         </statute_ref>; supplemental revenue under section 
         <statute_ref>126C.10, subdivisions 9 and 12</statute_ref>; transition revenue <br/>
<a id="pl.135.12"></a><var>135.12</var>under section 
         <statute_ref>126C.10, subdivision 20</statute_ref>; referendum revenue under section 
         <statute_ref>126C.17</statute_ref>; and <br/>
<a id="pl.135.13"></a><var>135.13</var>equity revenue under section 
         <statute_ref>126C.10, subdivisions 24a and 24b</statute_ref>; and <br/>
<a id="pl.135.14"></a><var>135.14</var>(2) for fiscal year 2003 and later through 2013, the sum of basic revenue under <br/>
<a id="pl.135.15"></a><var>135.15</var>section 
         <statute_ref>126C.10, subdivision 2</statute_ref>; referendum revenue under section 
         <statute_ref>126C.17</statute_ref>; and equity <br/>
<a id="pl.135.16"></a><var>135.16</var>revenue under section 
         <statute_ref>126C.10, subdivisions 24a and 24b</statute_ref>.; and <br/>
<a id="pl.135.17"></a><var>135.17</var>(3) for fiscal year 2014 and later, the sum of basic revenue under section 126C.10, <br/>
<a id="pl.135.18"></a><var>135.18</var>subdivision 2, and referendum revenue under section 126C.17.<br/>
<a id="pl.135.19"></a><var>135.19</var><b>EFFECTIVE DATE.</b>This section is effective for fiscal year 2014 and later.<br/>
<br/>
<a id="bill.8.41.0"></a><a id="pl.135.20"></a><var>135.20</var>    Sec. 41. <b>PHASE-IN.</b><br/>
<a id="pl.135.21"></a><var>135.21</var>    Subdivision 1. <b>Baseline revenue.</b> A school district's baseline revenue equals the <br/>
<a id="pl.135.22"></a><var>135.22</var>revenue amounts for the aid appropriations calculated under Minnesota Statutes, section <br/>
<a id="pl.135.23"></a><var>135.23</var>126C.20, calculated using the current year's data and the revenue formulas in place in <br/>
<a id="pl.135.24"></a><var>135.24</var>Minnesota Statutes 2008.<br/>
<a id="pl.135.25"></a><var>135.25</var>    Subd. 2. <b>New revenue.</b> A school district's new revenue equals the revenue amounts <br/>
<a id="pl.135.26"></a><var>135.26</var>for the aid appropriations calculated under Minnesota Statutes, section 126C.20, calculated <br/>
<a id="pl.135.27"></a><var>135.27</var>using the current year's data and the revenue formulas in place under this act.<br/>
<a id="pl.135.28"></a><var>135.28</var>    Subd. 3. <b>Phase-in schedule.</b> A school district's revenue amounts for the revenue <br/>
<a id="pl.135.29"></a><var>135.29</var>formulas listed in subdivisions 1 and 2 equals the district's baseline revenue plus the <br/>
<a id="pl.135.30"></a><var>135.30</var>percent of the difference specified in subdivision 6 multiplied by the number of years <br/>
<a id="pl.135.31"></a><var>135.31</var>of the phase in specified in subdivision 7.<br/>
<a id="pl.135.32"></a><var>135.32</var>    Subd. 4. <b>Aid.</b> A school district's aid entitlement for the formulas listed under <br/>
<a id="pl.135.33"></a><var>135.33</var>this act equals the district's baseline aid plus the phase-in percentage times the new aid <br/>
<a id="pl.135.34"></a><var>135.34</var>amounts calculated under this act.<br/>
<a id="pl.136.1"></a><var>136.1</var>    Subd. 5. <b>Levy.</b> A school district levy for the formulas listed in this act equals the <br/>
<a id="pl.136.2"></a><var>136.2</var>levy for the same formulas calculated under Minnesota Statutes 2008, and the phase-in <br/>
<a id="pl.136.3"></a><var>136.3</var>percentage times the new revenue amounts for the levy calculated under this act.<br/>
<a id="pl.136.4"></a><var>136.4</var>    Subd. 6. <b>Percentage.</b> The phase-in percentage equals 25 percent.<br/>
<a id="pl.136.5"></a><var>136.5</var>    Subd. 7. <b>Years of phase-in.</b> The new revenue under this section is phased in over <br/>
<a id="pl.136.6"></a><var>136.6</var>four years.<br/>
<a id="pl.136.7"></a><var>136.7</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.8.42.0"></a><a id="pl.136.8"></a><var>136.8</var>    Sec. 42. <b>REVISOR'S INSTRUCTION.</b><br/>
<a id="pl.136.9"></a><var>136.9</var>In the year 2014 and subsequent editions of Minnesota Statutes, the revisor of statutes <br/>
<a id="pl.136.10"></a><var>136.10</var>shall change all references to "adjusted marginal cost pupil units" to "adjusted pupil units" <br/>
<a id="pl.136.11"></a><var>136.11</var>and all references to "resident marginal cost pupil units" to "resident pupil units."<br/>
<a id="pl.136.12"></a><var>136.12</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.8.43.0"></a><a id="pl.136.13"></a><var>136.13</var>    Sec. 43. <b> REPEALER.</b><br/>
<a id="pl.136.14"></a><var>136.14</var>Minnesota Statutes 2008, sections 123B.54; 123B.57, subdivisions 3, 4, and 5; <br/>
<a id="pl.136.15"></a><var>136.15</var>123B.591; 125A.76, subdivision 4; 125A.79, subdivision 6; 126C.10, subdivisions 2b, <br/>
<a id="pl.136.16"></a><var>136.16</var>13a, 13b, 24, 25, 26, 27, 28, 29, 30, 31, 31a, 31b, 32, 33, 34, 35, and 36; 126C.12; <br/>
<a id="pl.136.17"></a><var>136.17</var>126C.126; and 127A.50, are repealed.<br/>
<a id="pl.136.18"></a><var>136.18</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal year 2014.<br/>
<br/>
<a id="bill.9.0.0"></a>

<a id="bill.9.1.0"></a><a id="pl.136.21"></a><var>136.21</var>    Section 1. Minnesota Statutes 2009 Supplement, section 123B.54, is amended to read:<br/>
<a id="pl.136.22"></a><var>136.22</var><b>123B.54 DEBT SERVICE APPROPRIATION.</b><br/>
<a id="pl.136.23"></a><var>136.23</var>    (a) $9,109,000 in fiscal year 2009, $7,948,000 $6,608,000 in fiscal year 2010, <br/>
<a id="pl.136.24"></a><var>136.24</var>$9,275,000 $8,465,000 in fiscal year 2011, $9,574,000 $16,900,000 in fiscal year 2012, <br/>
<a id="pl.136.25"></a><var>136.25</var>and $8,904,000 $19,175,000 in fiscal year 2013 and later are appropriated from the <br/>
<a id="pl.136.26"></a><var>136.26</var>general fund to the commissioner of education for payment of debt service equalization <br/>
<a id="pl.136.27"></a><var>136.27</var>aid under section 
         <statute_ref>123B.53</statute_ref>.<br/>
<a id="pl.136.28"></a><var>136.28</var>    (b) The appropriations in paragraph (a) must be reduced by the amount of any <br/>
<a id="pl.136.29"></a><var>136.29</var>money specifically appropriated for the same purpose in any year from any state fund.<br/>
<a id="pl.136.30"></a><var>136.30</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.9.2.0"></a><a id="pl.137.1"></a><var>137.1</var>    Sec. 2. Laws 2009, chapter 96, article 4, section 12, subdivision 3, is amended to read:<br/>
<a id="pl.137.2"></a><var>137.2</var>    Subd. 3. <b>Debt service equalization.</b> For debt service aid according to Minnesota <br/>
<a id="pl.137.3"></a><var>137.3</var>Statutes, section 
         <statute_ref>123B.53, subdivision 6</statute_ref>:<br/>
<table>
<col width="50px"/>
<col width="29px"/>
<col width="16px"/>
<col width="105px"/>
<col width="42px"/>
<col width="41px"/>
<tr>
<td><a id="pl.137.4"></a><var>137.4</var><br/>
<a id="pl.137.5"></a><var>137.5</var><br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">7,948,000<br/>
6,608,000<br/>
</td>
<td align="right">.....<br/>
</td>
<td align="right">2010<br/>
</td>
</tr>
<tr>
<td><a id="pl.137.6"></a><var>137.6</var><br/>
<a id="pl.137.7"></a><var>137.7</var><br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">9,275,000<br/>
8,465,000<br/>
</td>
<td align="right">.....<br/>
</td>
<td align="right">2011<br/>
</td>
</tr>
</table><a id="pl.137.8"></a><var>137.8</var>The 2010 appropriation includes $851,000 for 2009 and $7,097,000 $5,757,000 <br/>
<a id="pl.137.9"></a><var>137.9</var>for 2010.<br/>
<a id="pl.137.10"></a><var>137.10</var>The 2011 appropriation includes $788,000 $2,128,000 for 2010 and $8,487,000 <br/>
<a id="pl.137.11"></a><var>137.11</var>$6,337,000 for 2011.<br/>
<a id="pl.137.12"></a><var>137.12</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.9.3.0"></a><a id="pl.137.13"></a><var>137.13</var>    Sec. 3. Laws 2009, chapter 96, article 5, section 13, subdivision 4, is amended to read:<br/>
<a id="pl.137.14"></a><var>137.14</var>    Subd. 4. <b>Kindergarten milk.</b> For kindergarten milk aid under Minnesota Statutes, <br/>
<a id="pl.137.15"></a><var>137.15</var>section 
         <statute_ref>124D.118</statute_ref>:<br/>
<table>
<col width="50px"/>
<col width="29px"/>
<col width="16px"/>
<col width="105px"/>
<col width="42px"/>
<col width="42px"/>
<tr>
<td><a id="pl.137.16"></a><var>137.16</var><br/>
<a id="pl.137.17"></a><var>137.17</var><br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">1,098,000<br/>
1,104,000<br/>
</td>
<td align="right">.....<br/>
</td>
<td align="right">2010<br/>
</td>
</tr>
<tr>
<td><a id="pl.137.18"></a><var>137.18</var><br/>
<a id="pl.137.19"></a><var>137.19</var><br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">1,120,000<br/>
1,126,000<br/>
</td>
<td align="right">.....<br/>
</td>
<td align="right">2011<br/>
</td>
</tr>
</table>