1.1 	A bill for an act
1.2 	relating to education; providing for policy and funding for kindergarten through 
1.3 	grade 12 education including general education, education excellence, special 
1.4 	programs, facilities and technology, accounting, and state agencies; authorizing 
1.5 	rulemaking; requiring reports; appropriating money;amending Minnesota 
1.6 	Statutes 2008, sections 11A.16, subdivision 5; 120A.22, subdivision 11; 
1.7 	120A.24; 120B.15; 121A.15, subdivision 8; 122A.16; 122A.18, subdivision 2; 
1.8 	122A.23, subdivision 2; 123B.12; 123B.42, subdivision 1; 123B.44, subdivision 
1.9 	1; 123B.57, as amended; 123B.63, subdivision 3; 124D.09, subdivision 20; 
1.10 	125A.03; 125A.21, subdivisions 2, 3, 5, 7; 125A.69, subdivision 1; 125A.79, 
1.11 	subdivision 1; 126C.40, subdivision 1; 127A.42, subdivision 2; 127A.43; 
1.12 	127A.45, by adding a subdivision; 171.05, subdivision 2; 171.17, subdivision 
1.13 	1; 171.22, subdivision 1; 181A.05, subdivision 1; Minnesota Statutes 2009 
1.14 	Supplement, sections 16A.152, subdivision 2, as amended; 120B.30, subdivisions 
1.15 	1, 3, 4, by adding a subdivision; 120B.35, subdivision 3; 120B.36, subdivision 
1.16 	1; 124D.10, subdivisions 3, 4, 6a, 23; 125A.02, subdivision 1; 125A.091, 
1.17 	subdivision 7; 125A.63, subdivisions 2, 4, 5; 126C.41, subdivision 2; Laws 1999, 
1.18 	chapter 241, article 4, section 25; Laws 2009, chapter 79, article 5, section 60; 
1.19 	Laws 2009, chapter 96, article 2, section 67, subdivision 14; proposing coding 
1.20 	for new law in Minnesota Statutes, chapters 120B; 125A; repealing Minnesota 
1.21 	Statutes 2008, sections 120A.26, subdivisions 1, 2; 125A.54.
1.22 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.23 	ARTICLE 1
1.24 	GENERAL EDUCATION

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

2.11 	Sec. 2. Minnesota Statutes 2008, section 123B.63, subdivision 3, is amended to read:
2.12 		Subd. 3.Capital project levy referendum. (a) A district may levy the local tax 
2.13 	rate approved by a majority of the electors voting on the question to provide funds for 
2.14 	an approved project. The election must take place no more than five years before the 
2.15 	estimated date of commencement of the project. The referendum must be held on a date 
2.16 	set by the board. A referendum for a project not receiving a positive review and comment 
2.17 	by the commissioner under section 123B.71 must be approved by at least 60 percent of 
2.18 	the voters at the election. 
2.19 	(b) The referendum may be called by the school board and may be held: 
2.20 	(1) separately, before an election for the issuance of obligations for the project 
2.21 	under chapter 475; or
2.22 	(2) in conjunction with an election for the issuance of obligations for the project 
2.23 	under chapter 475; or
2.24 	(3) notwithstanding section 475.59, as a conjunctive question authorizing both the 
2.25 	capital project levy and the issuance of obligations for the project under chapter 475. Any 
2.26 	obligations authorized for a project may be issued within five years of the date of the 
2.27 	election. 
2.28 	(c) The ballot must provide a general description of the proposed project, state the 
2.29 	estimated total cost of the project, state whether the project has received a positive or 
2.30 	negative review and comment from the commissioner, state the maximum amount of the 
2.31 	capital project levy as a percentage of net tax capacity, state the amount that will be raised 
2.32 	by that local tax rate in the first year it is to be levied, and state the maximum number of 
2.33 	years that the levy authorization will apply.
2.34 	The ballot must contain a textual portion with the information required in this 
2.35 	section and a question stating substantially the following:
3.1 	"Shall the capital project levy proposed by the board of .......... School District 
3.2 	No. .......... be approved?"
3.3 	If approved, the amount provided by the approved local tax rate applied to the net 
3.4 	tax capacity for the year preceding the year the levy is certified may be certified for the 
3.5 	number of years, not to exceed ten, approved.
3.6 	(d) If the authority for an existing project is expiring and the district is proposing 
3.7 	a new project at the same maximum tax rate, the general description on the ballot may 
3.8 	state that the capital project levy is being renewed and that the tax rate is not being 
3.9 	increased from the previous year's rate and the notice required under section 276.60, may 
3.10 	be modified to read: "BY VOTING YES ON THIS BALLOT QUESTION, YOU ARE 
3.11 	VOTING TO EXTEND THE AUTHORITY FOR AN EXPIRING CAPITAL PROJECT 
3.12 	AT THE SAME TAX RATE."
3.13 	(e) In the event a conjunctive question proposes to authorize both the capital project 
3.14 	levy and the issuance of obligations for the project, appropriate language authorizing the 
3.15 	issuance of obligations must also be included in the question.
3.16 	(f) The district must notify the commissioner of the results of the referendum.

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

3.19 	Sec. 3. Minnesota Statutes 2008, section 124D.09, subdivision 20, is amended to read:
3.20 		Subd. 20.Textbooks; materials. All textbooks and equipment provided to a pupil, 
3.21 	and paid for under subdivision 13, are the property of the pupil's postsecondary institution. 
3.22 	Each pupil is required to return all textbooks and equipment to the postsecondary 
3.23 	institution after the course has ended. The postsecondary institution may bill the pupil for 
3.24 	any textbooks and equipment that are not promptly returned by the student.

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

3.26 	Sec. 4. Minnesota Statutes 2008, section 125A.79, subdivision 1, is amended to read:
3.27 		Subdivision 1.Definitions. For the purposes of this section, the definitions in this 
3.28 	subdivision apply.
3.29 	(a) "Unreimbursed special education cost" means the sum of the following:
3.30 	(1) expenditures for teachers' salaries, contracted services, supplies, equipment, and 
3.31 	transportation services eligible for revenue under section 125A.76; plus
3.32 	(2) expenditures for tuition bills received under sections 125A.03 to 125A.24 and 
3.33 	125A.65 for services eligible for revenue under section 125A.76, subdivision 2; minus
4.1 	(3) revenue for teachers' salaries, contracted services, supplies, equipment, and 
4.2 	transportation services under section 125A.76; minus
4.3 	(4) tuition receipts under sections 125A.03 to 125A.24 and 125A.65 for services 
4.4 	eligible for revenue under section 125A.76, subdivision 2.
4.5 	(b) "General revenue" for a school district means the sum of the general education 
4.6 	revenue according to section 126C.10, subdivision 1, excluding alternative teacher 
4.7 	compensation revenue, plus the total qualifying referendum revenue specified in paragraph 
4.8 	(e) minus transportation sparsity revenue minus total operating capital revenue. "General 
4.9 	revenue" for a charter school means the sum of the general education revenue according to 
4.10 	section 124D.11, subdivision 1, and transportation revenue according to section 124D.11, 
4.11 	subdivision 2, excluding alternative teacher compensation revenue, minus referendum 
4.12 	equalization aid minus transportation sparsity revenue minus operating capital revenue.
4.13 	(c) "Average daily membership" has the meaning given it in section 126C.05.
4.14 	(d) "Program growth factor" means 1.02 for fiscal year 2012 and later.
4.15 	(e) "Total qualifying referendum revenue" means two-thirds of the district's total 
4.16 	referendum revenue as adjusted according to section 127A.47, subdivision 7, paragraphs 
4.17 	(a) to (c), for fiscal year 2006, one-third of the district's total referendum revenue for fiscal 
4.18 	year 2007, and none of the district's total referendum revenue for fiscal year 2008 and later.

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

4.20 	Sec. 5. Minnesota Statutes 2009 Supplement, section 126C.41, subdivision 2, is 
4.21 	amended to read:
4.22 		Subd. 2.Retired employee health benefits. (a) A district may levy an amount up 
4.23 	to the amount the district is required by the collective bargaining agreement in effect 
4.24 	on March 30, 1992, to pay for health insurance or unreimbursed medical expenses for 
4.25 	licensed and nonlicensed employees who have terminated services in the employing 
4.26 	district and withdrawn from active teaching service or other active service, as applicable, 
4.27 	before July 1, 1992, and to pay for health insurance or unreimbursed medical expenses 
4.28 	for licensed and nonlicensed employees who have terminated services in the employing 
4.29 	district and withdrawn from active teaching service or other active service, as applicable 
4.30 	before July 1, 1998, only if a sunset clause is in effect for the current collective bargaining 
4.31 	agreement. The total amount of the levy each year may not exceed $600,000.
4.32 	(b) In addition to the levy authority granted under paragraph (a), a school district 
4.33 	may levy for other postemployment benefits expenses actually paid during the previous 
4.34 	fiscal year. For purposes of this subdivision, "postemployment benefits" means benefits 
5.1 	giving rise to a liability under Statement No. 45 of the Government Accounting Standards 
5.2 	Board. A district seeking levy authority under this subdivision must:
5.3 	(1) create or have created an actuarial liability to pay postemployment benefits to 
5.4 	employees or officers after their termination of service;
5.5 	(2) have a sunset clause in effect for the current collective bargaining agreement as 
5.6 	required by paragraph (a); and
5.7 	(3) apply for the authority in the form and manner required by the commissioner 
5.8 	of education.
5.9 	If the total levy authority requested under this paragraph exceeds the amount established 
5.10 	in paragraph (c), the commissioner must proportionately reduce each district's maximum 
5.11 	levy authority under this subdivision. The commissioner may subsequently adjust each 
5.12 	district's levy authority under this subdivision so long as the total levy authority does not 
5.13 	exceed the maximum levy authority for that year.
5.14 	(c) The maximum levy authority under paragraph (b) must not exceed the following 
5.15 	amounts:
5.16 	(1) $9,242,000 for taxes payable in 2010;
5.17 	(2) $29,863,000 for taxes payable in 2011; and
5.18 	(3) for taxes payable in 2012 and later, the maximum levy authority must not exceed 
5.19 	the sum of the previous year's authority and $14,000,000.

5.20 	Sec. 6. NONPUBLIC PUPIL AID.
 5.21 	The fiscal year 2011 appropriation for nonpublic pupil aid under Laws 2009, chapter 
5.22 	96, article 1, section 24, subdivision 6, is reduced by $458,000.

5.23 	ARTICLE 2
5.24 	EDUCATION EXCELLENCE

5.25 	Section 1. Minnesota Statutes 2008, section 120A.22, subdivision 11, is amended to 
5.26 	read:
5.27 		Subd. 11.Assessment of performance. (a) Each year the performance of 
5.28 	every child who is not enrolled in a public school must be assessed using a nationally 
5.29 	norm-referenced standardized achievement examination. The superintendent of the 
5.30 	district in which the child receives instruction and the person in charge of the child's 
5.31 	instruction must agree about the specific examination to be used and the administration 
5.32 	and location of the examination or a nationally recognized college entrance exam.
6.1 	(b) To the extent the examination in paragraph (a) does not provide assessment in 
6.2 	all of the subject areas in subdivision 9, the parent must assess the child's performance 
6.3 	in the applicable subject area. This requirement applies only to a parent who provides 
6.4 	instruction and does not meet the requirements of subdivision 10, clause (1), (2), or (3).
6.5 	(c) If the results of the assessments in paragraphs (a) and (b) indicate that the 
6.6 	child's performance on the total battery score is at or below the 30th percentile or one 
6.7 	grade level below the performance level for children of the same age, the parent must 
6.8 	obtain additional evaluation of the child's abilities and performance for the purpose of 
6.9 	determining whether the child has learning problems.
6.10 	(d)(b) A child receiving instruction from a nonpublic school, person, or institution 
6.11 	that is accredited by an accrediting agency, recognized according to section 123B.445, or 
6.12 	recognized by the commissioner, is exempt from the requirements of this subdivision.

6.13 	Sec. 2. Minnesota Statutes 2008, section 120A.24, is amended to read:
6.14 	120A.24 REPORTING.
6.15 		Subdivision 1.Reports to superintendent. (a) The person in charge of providing 
6.16 	instruction to a child must submit the following information to the superintendent of the 
6.17 	district in which the child resides the name, birth date, and address of the child; the annual 
6.18 	tests intended to be used under section 120A.22, subdivision 11, if required; the name of 
6.19 	each instructor; and evidence of compliance with one of the requirements specified in 
6.20 	section 120A.22, subdivision 10:
6.21 	(1) by October 1 of each the first school year, the name, birth date, and address 
6.22 	of each child receiving instruction the child receives instruction after reaching the age 
6.23 	of seven;
6.24 	(2) the name of each instructor and evidence of compliance with one of the 
6.25 	requirements specified in section 120A.22, subdivision 10;
6.26 	(3) an annual instructional calendar; and
6.27 	(4) for each child instructed by a parent who meets only the requirement of section 
6.28 	120A.22, subdivision 10, clause (6), a quarterly report card on the achievement of the 
6.29 	child in each subject area required in section 120A.22, subdivision 9
6.30 	(2) within 15 days of when a parent withdraws a child from public school after 
6.31 	age seven to homeschool;
6.32 	(3) within 15 days of moving out of a district; and
6.33 	(4) by October 1 after a new resident district is established.
6.34 	(b) The person in charge of providing instruction to a child between the ages of 
6.35 	seven and 16 must submit, by October 1 of each school year, a letter of intent to continue 
7.1 	to provide instruction under this section for all students under their supervision and any 
7.2 	changes to the information required in paragraph (a) for each student.
7.3 	(c) The superintendent may collect the required information under this section 
7.4 	through electronic or Web-based format, but must not require electronic submission of 
7.5 	information of the person in charge of reporting under this subdivision.
7.6 		Subd. 2.Availability of documentation. (a) The person in charge of providing 
7.7 	instruction to a child must make available maintain documentation indicating that the 
7.8 	subjects required in section 120A.22, subdivision 9, are being taught and proof that the 
7.9 	tests under section 120A.22, subdivision 11, have been administered. This documentation 
7.10 	must include class schedules, copies of materials used for instruction, and descriptions of 
7.11 	methods used to assess student achievement.
7.12 	(b) The parent of a child who enrolls full-time in public school after having been 
7.13 	enrolled in a home school under section 120A.22, subdivision 6, must provide the 
7.14 	enrolling public school or school district with the child's scores on any tests administered 
7.15 	to the child under section 120A.22, subdivision 11, and other education-related documents 
7.16 	the enrolling school or district requires to determine where the child is placed in school 
7.17 	and what course requirements apply. This paragraph does not apply to a shared time 
7.18 	student who does not seek a public school diploma.
7.19 	(c) The person in charge of providing instruction to a child must make the 
7.20 	documentation in this subdivision available to the county attorney when a case is 
7.21 	commenced under section 120A.26, subdivision 5; chapter 260C; or when diverted under 
7.22 	chapter 260A.
7.23 		Subd. 3.Exemptions. A nonpublic school, person, or other institution that is 
7.24 	accredited by an accrediting agency, recognized according to section 123B.445, or 
7.25 	recognized by the commissioner, is exempt from the requirements in subdivisions 1 and
7.26 	subdivision 2, except for the requirement in subdivision 1, clause (1).  
7.27 		Subd. 4.Reports to the state. A superintendent must make an annual report to the 
7.28 	commissioner of education by December 1 of the total number of nonpublic children 
7.29 	reported as residing in the district. The report must include the following information:
7.30 	(1) the number of children residing in the district attending nonpublic schools or 
7.31 	receiving instruction from persons or institutions other than a public school;
7.32 	(2) the number of children in clause (1) who are in compliance with section 120A.22
7.33 	and this section; and  
7.34 	(3) the number of children in clause (1) who the superintendent has determined are 
7.35 	not in compliance with section 120A.22 and this section.  
8.1 		Subd. 5.Obligations. Nothing in this section alleviates the obligations under 
8.2 	section 120A.22.

8.3 	Sec. 3. Minnesota Statutes 2008, section 120B.15, is amended to read:
8.4 	120B.15 GIFTED AND TALENTED STUDENTS PROGRAMS.
8.5 	(a) School districts and charter schools may identify students, locally develop 
8.6 	programs addressing instructional and affective needs, provide staff development, and 
8.7 	evaluate programs to provide gifted and talented students with challenging and appropriate 
8.8 	educational programs.
8.9 	(b) School districts and charter schools may adopt guidelines for assessing and 
8.10 	identifying students for participation in gifted and talented programs. The guidelines 
8.11 	should include the use of:
8.12 	(1) multiple and objective criteria; and
8.13 	(2) assessments and procedures that are valid and reliable, fair, and based on 
8.14 	current theory and research addressing the use of tools and methods that are sensitive to 
8.15 	underrepresented groups, including, but not limited to, students who are low income, 
8.16 	minority, gifted and learning disabled, and English language learners.
8.17 	(c) School districts and charter schools must adopt procedures for the academic 
8.18 	acceleration of gifted and talented students. These procedures must include how the 
8.19 	district will:
8.20 	(1) assess a student's readiness and motivation for acceleration; and
8.21 	(2) match the level, complexity, and pace of the curriculum to a student to achieve 
8.22 	the best type of academic acceleration for that student.

8.23 	Sec. 4. [120B.21] MENTAL HEALTH EDUCATION.
8.24 	The legislature encourages districts to provide instruction in mental health for 
8.25 	students in grades 7 through 12. Instruction must be aligned with local health standards 
8.26 	and integrated into a district's existing programs, curriculum, or the general school 
8.27 	environment. The commissioner of education, in consultation with mental health 
8.28 	organizations, shall provide assistance to districts including:
8.29 	(1) age-appropriate model learning activities for grades 7 through 12 that address 
8.30 	mental health components of the National Health Education Standards and the benchmarks 
8.31 	developed by the department's quality teaching network in health and best practices in 
8.32 	mental health education; and
8.33 	(2) a directory of resources for planning and implementing age-appropriate mental 
8.34 	health curriculum and instruction in grades 7 through 12.

9.1 	Sec. 5. Minnesota Statutes 2009 Supplement, section 120B.30, subdivision 1, is 
9.2 	amended to read:
9.3 		Subdivision 1.Statewide testing.  (a) The commissioner, with advice from experts 
9.4 	with appropriate technical qualifications and experience and stakeholders, consistent with 
9.5 	subdivision 1a, shall include in the comprehensive assessment system, for each grade 
9.6 	level to be tested, state-constructed tests developed from and aligned with the state's 
9.7 	required academic standards under section 120B.021, include multiple choice questions, 
9.8 	and be administered annually to all students in grades 3 through 8. State-developed high 
9.9 	school tests aligned with the state's required academic standards under section 120B.021
9.10 	and administered to all high school students in a subject other than writing must include 
9.11 	multiple choice questions. The commissioner shall establish one or more months during 
9.12 	which schools shall administer the tests to students each school year. For students enrolled 
9.13 	in grade 8 before the 2005-2006 school year, Minnesota basic skills tests in reading, 
9.14 	mathematics, and writing shall fulfill students' basic skills testing requirements for a 
9.15 	passing state notation. The passing scores of basic skills tests in reading and mathematics 
9.16 	are the equivalent of 75 percent correct for students entering grade 9 based on the first 
9.17 	uniform test administered in February 1998. Students who have not successfully passed 
9.18 	a Minnesota basic skills test by the end of the 2011-2012 school year must pass the 
9.19 	graduation-required assessments for diploma under paragraph (b).
9.20 	(b) The state assessment system must be aligned to the most recent revision of 
9.21 	academic standards as described in section 120B.023 in the following manner:
9.22 	(1) mathematics;
9.23 	(i) grades 3 through 8 beginning in the 2010-2011 school year; and
9.24 	(ii) high school level beginning in the 2013-2014 2014-2015 school year;
9.25 	(2) science; grades 5 and 8 and at the high school level beginning in the 2011-2012 
9.26 	school year; and
9.27 	(3) language arts and reading; grades 3 through 8 and high school level beginning in 
9.28 	the 2012-2013 school year.
9.29 	(c) For students enrolled in grade 8 in the 2005-2006 school year and later, only the 
9.30 	following options shall fulfill students' state graduation test requirements:
9.31 	(1) for reading and mathematics:
9.32 	(i) obtaining an achievement level equivalent to or greater than proficient as 
9.33 	determined through a standard setting process on the Minnesota comprehensive 
9.34 	assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing 
9.35 	score as determined through a standard setting process on the graduation-required 
10.1 	assessment for diploma in grade 10 for reading and grade 11 for mathematics or 
10.2 	subsequent retests;
10.3 	(ii) achieving a passing score as determined through a standard setting process on the 
10.4 	state-identified language proficiency test in reading and the mathematics test for English 
10.5 	language learners or the graduation-required assessment for diploma equivalent of those 
10.6 	assessments for students designated as English language learners;
10.7 	(iii) achieving an individual passing score on the graduation-required assessment 
10.8 	for diploma as determined by appropriate state guidelines for students with an individual 
10.9 	education plan or 504 plan;
10.10 	(iv) obtaining achievement level equivalent to or greater than proficient as 
10.11 	determined through a standard setting process on the state-identified alternate assessment 
10.12 	or assessments in grade 10 for reading and grade 11 for mathematics for students with 
10.13 	an individual education plan; or
10.14 	(v) achieving an individual passing score on the state-identified alternate assessment 
10.15 	or assessments as determined by appropriate state guidelines for students with an 
10.16 	individual education plan; and
10.17 	(2) for writing:
10.18 	(i) achieving a passing score on the graduation-required assessment for diploma;
10.19 	(ii) achieving a passing score as determined through a standard setting process on 
10.20 	the state-identified language proficiency test in writing for students designated as English 
10.21 	language learners;
10.22 	(iii) achieving an individual passing score on the graduation-required assessment 
10.23 	for diploma as determined by appropriate state guidelines for students with an individual 
10.24 	education plan or 504 plan; or
10.25 	(iv) achieving an individual passing score on the state-identified alternate assessment 
10.26 	or assessments as determined by appropriate state guidelines for students with an 
10.27 	individual education plan.
10.28 	(d) Students enrolled in grade 8 in any school year from the 2005-2006 school 
10.29 	year to the 2009-2010 school year who do not pass the mathematics graduation-required 
10.30 	assessment for diploma under paragraph (b) are eligible to receive a high school diploma 
10.31 	with a passing state notation if they:
10.32 	(1) complete with a passing score or grade all state and local coursework and credits 
10.33 	required for graduation by the school board granting the students their diploma;
10.34 	(2) participate in district-prescribed academic remediation in mathematics; and
10.35 	(3) fully participate in at least two retests of the mathematics GRAD test or until 
10.36 	they pass the mathematics GRAD test, whichever comes first. A school, district, or 
11.1 	charter school must place on the high school transcript a student's highestcurrent pass 
11.2 	status for each subject that has a required graduation assessment score for each of the 
11.3 	following assessments on the student's high school transcript: the mathematics Minnesota 
11.4 	Comprehensive Assessment, reading Minnesota Comprehensive Assessment, and writing 
11.5 	Graduation-Required Assessment for Diploma, and when applicable, the mathematics 
11.6 	Graduation-Required Assessment for Diploma and reading Graduation-Required 
11.7 	Assessment for Diploma.
11.8 	In addition, the school board granting the students their diplomas may formally 
11.9 	decide to include a notation of high achievement on the high school diplomas of those 
11.10 	graduating seniors who, according to established school board criteria, demonstrate 
11.11 	exemplary academic achievement during high school.
11.12 	(e) The 3rd through 8th grade and high school test results shall be available to 
11.13 	districts for diagnostic purposes affecting student learning and district instruction and 
11.14 	curriculum, and for establishing educational accountability. The commissioner must 
11.15 	disseminate to the public the high school test results upon receiving those results.
11.16 	(f) The 3rd through 8th grade and high school tests must be aligned with state 
11.17 	academic standards. The commissioner shall determine the testing process and the order 
11.18 	of administration. The statewide results shall be aggregated at the site and district level, 
11.19 	consistent with subdivision 1a.
11.20 	(g) In addition to the testing and reporting requirements under this section, the 
11.21 	commissioner shall include the following components in the statewide public reporting 
11.22 	system:
11.23 	(1) uniform statewide testing of all students in grades 3 through 8 and at the high 
11.24 	school level that provides appropriate, technically sound accommodations or alternate 
11.25 	assessments;
11.26 	(2) educational indicators that can be aggregated and compared across school 
11.27 	districts and across time on a statewide basis, including average daily attendance, high 
11.28 	school graduation rates, and high school drop-out rates by age and grade level;
11.29 	(3) state results on the American College Test; and
11.30 	(4) state results from participation in the National Assessment of Educational 
11.31 	Progress so that the state can benchmark its performance against the nation and other 
11.32 	states, and, where possible, against other countries, and contribute to the national effort 
11.33 	to monitor achievement.

11.34 	Sec. 6. Minnesota Statutes 2009 Supplement, section 120B.30, is amended by adding a 
11.35 	subdivision to read:
12.1 		Subd. 1b.High school algebra end-of-course assessment. (a) Notwithstanding 
12.2 	subdivision 1, the commissioner shall establish a statewide high school algebra 
12.3 	end-of-course assessment for students entering grade 8 in the 2010-2011 school year 
12.4 	and later that provides information on the college and career readiness of Minnesota 
12.5 	students and fulfills federal accountability requirements, consistent with this subdivision 
12.6 	and related rules. For purposes of this subdivision, "college and career readiness" means 
12.7 	the knowledge and skills that a high school graduate needs to do either credit-bearing 
12.8 	coursework at a two-year or four-year college or university or career-track employment 
12.9 	that pays a living wage, provides employment benefits, and offers clear pathways for 
12.10 	advancement through further education and training.
12.11 	(b) This statewide high school algebra end-of-course assessment must conform 
12.12 	with the following:
12.13 	(1) align with the most recently revised academic content standards under section 
12.14 	120B.023, subdivision 2;
12.15 	(2) include both multiple-choice and open-ended items that assess the appropriate 
12.16 	algebra knowledge and skills contained in the state's academic content standards;
12.17 	(3) be designed for computer administration and scoring so that, beginning the 
12.18 	second year a computerized test is administered and as soon as practicable during the 
12.19 	first year a computerized test is administered, the exam results of students who take 
12.20 	computerized tests are available to the school or district within three full school days after 
12.21 	the exam is administered, among other design characteristics;
12.22 	(4) be administered at regular intervals that align with the most common high school 
12.23 	schedules in Minnesota;
12.24 	(5) generate achievement levels established through a professionally recognized 
12.25 	methodology;
12.26 	(6) use achievement level descriptors that define a student's college and career 
12.27 	readiness;
12.28 	(7) comprise 20 percent of the student's overall course grade in the corresponding 
12.29 	course;
12.30 	(8) require a student who does not pass a high school algebra course to (i) 
12.31 	retake the course or complete a district-authorized credit recovery class, (ii) opt, at the 
12.32 	student's election, to retake the end-of-course assessment within a regularly scheduled 
12.33 	administration window, and (iii) have the student select the exam score on the initial test 
12.34 	or the retest to count as the equivalent of 20 percent of the student's overall course grade;
12.35 	(9) allow an eligible student to meet this requirement through an alternative method 
12.36 	that demonstrates the student's college and career readiness:
13.1 	(i) for high school students who transfer into Minnesota from another state where 
13.2 	the algebra course content, as applicable, is of equal or greater rigor, pass that state's high 
13.3 	school course and graduation requirements in algebra, as applicable;
13.4 	(ii) allow a student who has an active individualized education program to achieve a 
13.5 	passing status at an individual level as prescribed by the commissioner;
13.6 	(iii) waive the required exam for a high school student who is an English language 
13.7 	learner under section 124D.59 and who has been enrolled for four or fewer years in a 
13.8 	school in which English is the primary language of instruction; or
13.9 	(iv) other alternative methods recommended by the Assessment Advisory 
13.10 	Committee, if subsequently specifically authorized by law to allow other alternative 
13.11 	methods;
13.12 	(10) use three consecutive school years of research and analysis through the 
13.13 	2014-2015 school year, as prescribed by the commissioner, to calculate and report an 
13.14 	alignment index that compares students' final grades in this course with their end-of-course 
13.15 	assessment scores;
13.16 	(11) subsequent to calculating and reporting the alignment index under clause (10), 
13.17 	require schools that are highly misaligned for two or more consecutive school years to 
13.18 	transmit written notice of the misalignment to all parents of students enrolled in the school, 
13.19 	as prescribed by the commissioner; and
13.20 	(12) when schools are highly misaligned for two or more consecutive years under 
13.21 	clause (11), use school district funds under section 122A.60, subdivision 1a, paragraph 
13.22 	(a), to correct the misalignment.
13.23 	(c) The requirements of this subdivision apply to students in public schools, 
13.24 	including charter schools, who enter grade 8 in the 2010-2011 school year or later. The 
13.25 	commissioner may establish a transition period where students who enter grade 8 in the 
13.26 	2010-2011 or 2011-2012 school year graduate either under the Graduation-Required 
13.27 	Assessment for Diploma requirements under section 120B.30, subdivision 1, or this 
13.28 	subdivision. The commissioner may seek authority from the legislature to adjust the 
13.29 	time line under this paragraph if  circumstances such as changes in federal law governing 
13.30 	educational accountability and assessment warrant such an adjustment.
13.31 	(d) To fully implement this subdivision and enable school districts to provide 
13.32 	intervention and support to struggling students and improve instruction for all students, 
13.33 	the commissioner must provide districts with (1) a benchmark assessment aligned with 
13.34 	the high school algebra end-of-course assessment, and as funding allows, may provide 
13.35 	districts with (2) an item bank available to teachers for creating formative assessments to 
13.36 	help students prepare for the high school algebra end-of-course assessment.
14.1 	(e) The commissioner shall expand the membership and purpose of the Assessment 
14.2 	Advisory Committee established under section 120B.365 to include assessment experts 
14.3 	and practitioners from both secondary and postsecondary education systems and other 
14.4 	appropriate stakeholders to monitor the implementation of and student outcomes based 
14.5 	on the algebra end-of-course assessment and policies and the state support available 
14.6 	to districts, including small or rural districts, under this subdivision. This committee 
14.7 	shall report annually by February 15 to the commissioner and the legislature on the 
14.8 	implementation of and student outcomes based on the assessment and policies under this 
14.9 	subdivision. Notwithstanding section 15.059, subdivision 3, committee members shall not 
14.10 	receive compensation, per diem payments, or reimbursement for expenses.
14.11 	(f) Using a solicitation process that includes a "request for proposal" process and 
14.12 	multiple responses, the commissioner shall contract for at least two  independent studies 
14.13 	at two-year intervals to evaluate (1) the implementation of the requirements and (2) the 
14.14 	availability and efficacy of resources to support and improve student outcomes based on 
14.15 	student achievement data under this subdivision. The commissioner must submit the 
14.16 	results of the first study to the education policy and finance committees of the legislature 
14.17 	by February 15, 2015. The commissioner must submit the results of the second study 
14.18 	to the legislature by February 15, 2017.
14.19 	(g) The commissioner must not begin to develop additional statewide end-of-course 
14.20 	exams in geometry, chemistry, or physics until specifically authorized in law to do so.
14.21 	(h) A district or charter school must indicate on a student's transcript the student's 
14.22 	level of college and career readiness in algebra under this subdivision after the levels have 
14.23 	been established through a professionally recognized methodology.

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

14.25 	Sec. 7. Minnesota Statutes 2009 Supplement, section 120B.30, subdivision 3, is 
14.26 	amended to read:
14.27 		Subd. 3.Reporting. The commissioner shall report test data results publicly and 
14.28 	to stakeholders, including the performance achievement levels developed from students' 
14.29 	unweighted test scores in each tested subject and a listing of demographic factors that 
14.30 	strongly correlate with student performance. The test results must not include personally 
14.31 	identifiable information as defined in Code of Federal Regulations, title 34, section 99.3.
14.32 	The commissioner shall also report data that compares performance results among school 
14.33 	sites, school districts, Minnesota and other states, and Minnesota and other nations. The 
14.34 	commissioner shall disseminate to schools and school districts a more comprehensive 
15.1 	report containing testing information that meets local needs for evaluating instruction 
15.2 	and curriculum.

15.3 	Sec. 8. Minnesota Statutes 2009 Supplement, section 120B.30, subdivision 4, is 
15.4 	amended to read:
15.5 		Subd. 4.Access to tests. Consistent with section 13.34, the commissioner must 
15.6 	adopt and publish a policy to provide public and parental access for review of basic skills 
15.7 	tests, Minnesota Comprehensive Assessments, or any other such statewide test and 
15.8 	assessment which would not compromise the objectivity or fairness of the testing or 
15.9 	examination process. Upon receiving a written request, the commissioner must make 
15.10 	available to parents or guardians a copy of their student's actual responses to the test 
15.11 	questions for their review.

15.12 	Sec. 9. Minnesota Statutes 2009 Supplement, section 120B.35, subdivision 3, is 
15.13 	amended to read:
15.14 		Subd. 3.State growth target; other state measures. (a) The state's educational 
15.15 	assessment system measuring individual students' educational growth is based on 
15.16 	indicators of achievement growth that show an individual student's prior achievement. 
15.17 	Indicators of achievement and prior achievement must be based on highly reliable 
15.18 	statewide or districtwide assessments.
15.19 	(b) The commissioner, in consultation with a stakeholder group that includes 
15.20 	assessment and evaluation directors and staff and researchers must implement a model 
15.21 	that uses a value-added growth indicator and includes criteria for identifying schools 
15.22 	and school districts that demonstrate medium and high growth under section 120B.299, 
15.23 	subdivisions 8 and 9, and may recommend other value-added measures under section 
15.24 	120B.299, subdivision 3. The model may be used to advance educators' professional 
15.25 	development and replicate programs that succeed in meeting students' diverse learning 
15.26 	needs. Data on individual teachers generated under the model are personnel data under 
15.27 	section 13.43. The model must allow users to:
15.28 	(1) report student growth consistent with this paragraph; and
15.29 	(2) for all student categories, report and compare aggregated and disaggregated state 
15.30 	growth data using the nine student categories identified under the federal 2001 No Child 
15.31 	Left Behind Act and two student gender categories of male and female, respectively, 
15.32 	following appropriate reporting practices to protect nonpublic student data.
15.33 	The commissioner must report separate measures of student growth and proficiency, 
15.34 	consistent with this paragraph.
16.1 	(c) When reporting student performance under section 120B.36, subdivision 1, the 
16.2 	commissioner annually, beginning July 1, 2011, must report two core measures indicating 
16.3 	the extent to which current high school graduates are being prepared for postsecondary 
16.4 	academic and career opportunities:
16.5 	(1) a preparation measure indicating the number and percentage of high school 
16.6 	graduates in the most recent school year who completed course work important to 
16.7 	preparing them for postsecondary academic and career opportunities, consistent with 
16.8 	the core academic subjects required for admission to Minnesota's public colleges and 
16.9 	universities as determined by the Office of Higher Education under chapter 136A; and
16.10 	(2) a rigorous coursework measure indicating the number and percentage of high 
16.11 	school graduates in the most recent school year who successfully completed one or more 
16.12 	college-level advanced placement, international baccalaureate, postsecondary enrollment 
16.13 	options including concurrent enrollment, other rigorous courses of study under section 
16.14 	120B.021, subdivision 1a, or industry certification courses or programs.
16.15 	When reporting the core measures under clauses (1) and (2), the commissioner must also 
16.16 	analyze and report separate categories of information using the nine student categories 
16.17 	identified under the federal 2001 No Child Left Behind Act and two student gender 
16.18 	categories of male and female, respectively, following appropriate reporting practices to 
16.19 	protect nonpublic student data.
16.20 	(d) When reporting student performance under section 120B.36, subdivision 1, the 
16.21 	commissioner annually, beginning July 1, 2014, must report summary data on school 
16.22 	safety and students' engagement and connection at school. The summary data under this 
16.23 	paragraph are separate from and must not be used for any purpose related to measuring 
16.24 	or evaluating the performance of classroom teachers. The commissioner, in consultation 
16.25 	with qualified experts on student engagement and connection and classroom teachers, 
16.26 	must identify highly reliable variables that generate summary data under this paragraph. 
16.27 	The summary data may be used at school, district, and state levels only. Any data on 
16.28 	individuals received, collected, or created that are used to generate the summary data 
16.29 	under this paragraph are nonpublic data under section 13.02, subdivision 9.
16.30 	(e) For purposes of statewide educational accountability, the commissioner must 
16.31 	identify and report measures that demonstrate the success of school districts, school sites, 
16.32 	charter schools, and alternative program providers in improving the graduation outcomes 
16.33 	of students under this paragraph. When reporting student performance under section 
16.34 	120B.36, subdivision 1, the commissioner, beginning July 1, 2013, must annually report 
16.35 	summary data on (i) the four- and six-year graduation rates of students throughout the state 
16.36 	who are identified as at risk of not graduating or off track to graduate, including students 
17.1 	who are eligible to participate in a program under section 123A.05 or 124D.68, among 
17.2 	other students, and (ii) the success that school districts, school sites, charter schools, and 
17.3 	alternative program providers experience in:
17.4 	(1) identifying at-risk and off-track student populations by grade;
17.5 	(2) providing successful prevention and intervention strategies for at-risk students;
17.6 	(3) providing successful recuperative and recovery or reenrollment strategies for 
17.7 	off-track students; and
17.8 	(4) improving the graduation outcomes of at-risk and off-track students.
17.9 	For purposes of this paragraph, a student who is at risk of not graduating is a student 
17.10 	in eighth or ninth grade who meets one or more of the following criteria: first enrolled 
17.11 	in an English language learners program in eighth or ninth grade and may be older than 
17.12 	other students enrolled in the same grade; as an eighth grader, is absent from school for at 
17.13 	least 20 percent of the days of instruction during the school year, is two or more years 
17.14 	older than other students enrolled in the same grade, or fails multiple core academic 
17.15 	courses; or as a ninth grader, fails multiple ninth grade core academic courses in English 
17.16 	language arts, math, science, or social studies.
17.17 	For purposes of this paragraph, a student who is off track to graduate is a student 
17.18 	who meets one or more of the following criteria: first enrolled in an English language 
17.19 	learners program in high school and is older than other students enrolled in the same grade; 
17.20 	is a returning dropout; is 16 or 17 years old and two or more academic years off track to 
17.21 	graduate; is 18 years or older and two or more academic years off track to graduate; or is 
17.22 	18 years or older and may graduate within one school year.

17.23 	EFFECTIVE DATE. Paragraph (e) applies to data that are collected in the 
17.24 	2012-2013 school year and later and reported annually beginning July 1, 2013, consistent 
17.25 	with the recommendations the commissioner receives from recognized and qualified 
17.26 	experts on improving differentiated graduation rates, and establishing alternative routes to 
17.27 	a standard high school diploma for at-risk and off-track students.

17.28 	Sec. 10. Minnesota Statutes 2009 Supplement, section 120B.36, subdivision 1, is 
17.29 	amended to read:
17.30 		Subdivision 1.School performance report cards. (a) The commissioner 
17.31 	shall report student academic performance under section 120B.35, subdivision 2; the 
17.32 	percentages of students showing low, medium, and high growth under section 120B.35, 
17.33 	subdivision 3, paragraph (b); school safety and student engagement and connection 
17.34 	under section 120B.35, subdivision 3, paragraph (d); rigorous coursework under section 
17.35 	120B.35, subdivision 3, paragraph (c); the four- and six-year graduation rates of at-risk and 
18.1 	off-track students throughout the state under section 120B.35, subdivision 3, paragraph 
18.2 	(e), and the success that school districts, school sites, charter schools, and alternative 
18.3 	program providers experience in their efforts to improve the graduation outcomes of 
18.4 	those students; two separate student-to-teacher ratios that clearly indicate the definition 
18.5 	of teacher consistent with sections 122A.06 and 122A.15 for purposes of determining 
18.6 	these ratios; staff characteristics excluding salaries; student enrollment demographics; 
18.7 	district mobility; and extracurricular activities. The report also must indicate a school's 
18.8 	adequate yearly progress status, and must not set any designations applicable to high- and 
18.9 	low-performing schools due solely to adequate yearly progress status.
18.10 	(b) The commissioner shall develop, annually update, and post on the department 
18.11 	Web site school performance report cards.
18.12 	(c) The commissioner must make available performance report cards by the 
18.13 	beginning of each school year.
18.14 	(d) A school or district may appeal its adequate yearly progress status in writing to 
18.15 	the commissioner within 30 days of receiving the notice of its status. The commissioner's 
18.16 	decision to uphold or deny an appeal is final.
18.17 	(e) School performance report card data are nonpublic data under section 13.02, 
18.18 	subdivision 9, until not later than ten days after the appeal procedure described in 
18.19 	paragraph (d) concludes. The department shall annually post school performance report 
18.20 	cards to its public Web site no later than September 1.

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

18.23 	Sec. 11. Minnesota Statutes 2008, section 121A.15, subdivision 8, is amended to read:
18.24 		Subd. 8.Report. The administrator or other person having general control and 
18.25 	supervision of the elementary or secondary school shall file a report with the commissioner 
18.26 	on all persons enrolled in the school. The superintendent of each district shall file a report 
18.27 	with the commissioner for all persons within the district receiving instruction in a home 
18.28 	school in compliance with sections 120A.22 and 120A.24. The parent of persons receiving 
18.29 	instruction in a home school shall submit the statements as required by subdivisions 1, 2, 
18.30 	3, and 4 to the superintendent of the district in which the person resides by October 1 of 
18.31 	each school year the first year of their homeschooling and the 7th grade year. The school 
18.32 	report must be prepared on forms developed jointly by the commissioner of health and the 
18.33 	commissioner of education and be distributed to the local districts by the commissioner 
18.34 	of health. The school report must state the number of persons attending the school, the 
18.35 	number of persons who have not been immunized according to subdivision 1 or 2, and 
19.1 	the number of persons who received an exemption under subdivision 3, clause (c) or (d). 
19.2 	The school report must be filed with the commissioner of education within 60 days of the 
19.3 	commencement of each new school term. Upon request, a district must be given a 60-day 
19.4 	extension for filing the school report. The commissioner of education shall forward the 
19.5 	report, or a copy thereof, to the commissioner of health who shall provide summary 
19.6 	reports to boards of health as defined in section 145A.02, subdivision 2. The administrator 
19.7 	or other person having general control and supervision of the child care facility shall file a 
19.8 	report with the commissioner of human services on all persons enrolled in the child care 
19.9 	facility. The child care facility report must be prepared on forms developed jointly by 
19.10 	the commissioner of health and the commissioner of human services and be distributed 
19.11 	to child care facilities by the commissioner of health. The child care facility report 
19.12 	must state the number of persons enrolled in the facility, the number of persons with no 
19.13 	immunizations, the number of persons who received an exemption under subdivision 3, 
19.14 	clause (c) or (d), and the number of persons with partial or full immunization histories. 
19.15 	The child care facility report must be filed with the commissioner of human services by 
19.16 	November 1 of each year. The commissioner of human services shall forward the report, 
19.17 	or a copy thereof, to the commissioner of health who shall provide summary reports to 
19.18 	boards of health as defined in section 145A.02, subdivision 2. The report required by this 
19.19 	subdivision is not required of a family child care or group family child care facility, for 
19.20 	prekindergarten children enrolled in any elementary or secondary school provided services 
19.21 	according to sections 125A.05 and 125A.06, nor for child care facilities in which at least 
19.22 	75 percent of children in the facility participate on a onetime only or occasional basis to a 
19.23 	maximum of 45 hours per child, per month. 

19.24 	Sec. 12. Minnesota Statutes 2008, section 122A.16, is amended to read:
19.25 	122A.16 HIGHLY QUALIFIED TEACHER DEFINED.
19.26 	(a) A qualified teacher is one holding a valid license, under this chapter, to perform 
19.27 	the particular service for which the teacher is employed in a public school.
19.28 	(b) For the purposes of the federal No Child Left Behind Act, a highly qualified 
19.29 	teacher is one who holds a valid license under this chapter to perform the particular service 
19.30 	for which the teacher is employed in a public school or who meets the requirements of a 
19.31 	highly objective uniform state standard of evaluation (HOUSSE).
19.32 	All Minnesota teachers teaching in a core academic subject area, as defined by the 
19.33 	federal No Child Left Behind Act, in which they are not fully licensed may complete the 
19.34 	following HOUSSE process in the core subject area for which the teacher is requesting 
20.1 	highly qualified status by completing an application, in the form and manner described by 
20.2 	the commissioner, that includes:
20.3 	(1) documentation of student achievement as evidenced by norm-referenced test 
20.4 	results that are objective and psychometrically valid and reliable;
20.5 	(2) evidence of local, state, or national activities, recognition, or awards for 
20.6 	professional contribution to achievement;
20.7 	(3) description of teaching experience in the teachers' core subject area in a public 
20.8 	school under a waiver, variance, limited license or other exception; nonpublic school; and 
20.9 	postsecondary institution;
20.10 	(4) test results from the Praxis IIsubject area content test;
20.11 	(5) evidence of advanced certification from the National Board for Professional 
20.12 	Teaching Standards;
20.13 	(6) evidence of the successful completion of course work or pedagogy courses; and
20.14 	(7) evidence of the successful completion of high quality professional development 
20.15 	activities.
20.16 	Districts must assign a school administrator to serve as a HOUSSE reviewer to 
20.17 	meet with teachers under this paragraph and, where appropriate, certify the teachers' 
20.18 	applications. Teachers satisfy the definition of highly qualified when the teachers receive 
20.19 	at least 100 of the total number of points used to measure the teachers' content expertise 
20.20 	under clauses (1) to (7). Teachers may acquire up to 50 points only in any one clause (1) 
20.21 	to (7). Teachers may use the HOUSSE process to satisfy the definition of highly qualified 
20.22 	for more than one subject area.
20.23 	(c) Achievement of the HOUSSE criteria is not equivalent to a license. A teacher 
20.24 	must obtain permission from the Board of Teaching in order to teach in a public school.

20.25 	Sec. 13. Minnesota Statutes 2008, section 122A.18, subdivision 2, is amended to read:
20.26 		Subd. 2.Teacher and support personnel qualifications. (a) The Board of 
20.27 	Teaching must issue licenses under its jurisdiction to persons the board finds to be 
20.28 	qualified and competent for their respective positions.
20.29 	(b) The board must require a person to successfully complete pass an examination of 
20.30 	skills in reading, writing, and mathematics before being granted an initial teaching license 
20.31 	to provide direct instruction to pupils in prekindergarten, elementary, secondary, or special 
20.32 	education programs. The board must require colleges and universities offering a board 
20.33 	approved teacher preparation program to provide remedial assistance that includes a 
20.34 	formal diagnostic component to persons enrolled in their institution who did not achieve a 
20.35 	qualifying score on the skills examination, including those for whom English is a second 
21.1 	language. The colleges and universities must provide assistance in the specific academic 
21.2 	areas of deficiency in which the person did not achieve a qualifying score. School 
21.3 	districts must provide similar, appropriate, and timely remedial assistance that includes a 
21.4 	formal diagnostic component and mentoring to those persons employed by the district 
21.5 	who completed their teacher education program outside the state of Minnesota, received 
21.6 	a one-year license to teach in Minnesota and did not achieve a qualifying score on the 
21.7 	skills examination, including those persons for whom English is a second language. The 
21.8 	Board of Teaching shall report annually to the education committees of the legislature 
21.9 	on the total number of teacher candidates during the most recent school year taking the 
21.10 	skills examination, the number who achieve a qualifying score on the examination, the 
21.11 	number who do not achieve a qualifying score on the examination, the distribution of all 
21.12 	candidates' scores, the number of candidates who have taken the examination at least once 
21.13 	before, and the number of candidates who have taken the examination at least once before 
21.14 	and achieve a qualifying score.
21.15 	(c) A person who has completed an approved teacher preparation program and 
21.16 	obtained a one-year license to teach, but has not successfully completed the skills 
21.17 	examination, may renew the one-year license for two additional one-year periods. Each 
21.18 	renewal of the one-year license is contingent upon the licensee:
21.19 	(1) providing evidence of participating in an approved remedial assistance program 
21.20 	provided by a school district or postsecondary institution that includes a formal diagnostic 
21.21 	component in the specific areas in which the licensee did not obtain qualifying scores; and
21.22 	(2) attempting to successfully complete the skills examination during the period 
21.23 	of each one-year license.
21.24 	(d)(c) The Board of Teaching must grant continuing licenses only to those persons 
21.25 	who have met board criteria for granting a continuing license, which includes successfully 
21.26 	completing passing the skills examination in reading, writing, and mathematics.
21.27 	(e)(d) All colleges and universities approved by the board of teaching to prepare 
21.28 	persons for teacher licensure must include in their teacher preparation programs a common 
21.29 	core of teaching knowledge and skills to be acquired by all persons recommended 
21.30 	for teacher licensure. This common core shall meet the standards developed by the 
21.31 	interstate new teacher assessment and support consortium in its 1992 "model standards for 
21.32 	beginning teacher licensing and development." Amendments to standards adopted under 
21.33 	this paragraph are covered by chapter 14. The board of teaching shall report annually to 
21.34 	the education committees of the legislature on the performance of teacher candidates 
21.35 	on common core assessments of knowledge and skills under this paragraph during the 
21.36 	most recent school year.
22.1 	(e) The Board of Teaching must: 
22.2 	(1) ensure that kindergarten through grade 12 teacher licensing standards are highly 
22.3 	aligned with the state's kindergarten through grade 12 academic standards;
22.4 	(2) adopt a review cycle that is consistent with the kindergarten through grade 12 
22.5 	academic standards review cycle under section 120B.023, subdivision 2; and 
22.6 	(3) review and align the teacher licensure standards with the kindergarten through 
22.7 	grade 12 academic standards within one school year after the commissioner reviews and 
22.8 	adopts revised kindergarten through grade 12 academic standards in a particular subject 
22.9 	area.
22.10 	(f) All teacher preparation programs approved by the Board of Teaching must 
22.11 	require teacher candidates to complete at least one online course.

22.12 	Sec. 14. Minnesota Statutes 2008, section 122A.23, subdivision 2, is amended to read:
22.13 		Subd. 2.Applicants licensed in other states. (a) Subject to the requirements 
22.14 	of sections 122A.18, subdivision 8, and 123B.03, the Board of Teaching must issue 
22.15 	a teaching license or a temporary teaching license under paragraphs (b) to (e) to an 
22.16 	applicant who holds at least a baccalaureate degree from a regionally accredited college 
22.17 	or university and holds or held a similar out-of-state teaching license that requires the 
22.18 	applicant to successfully complete a teacher preparation program approved by the issuing 
22.19 	state, which includes field-specific teaching methods and student teaching or essentially 
22.20 	equivalent experience.  
22.21 	(b) The Board of Teaching must issue a teaching license to an applicant who:
22.22 	(1) successfully completed passed all exams and successfully completed human 
22.23 	relations preparation components required by the Board of Teaching; and
22.24 	(2) holds or held an out-of-state teaching license to teach the same content field and 
22.25 	grade levels if the scope of the out-of-state license is no more than one grade level less 
22.26 	than a similar Minnesota license.
22.27 	(c) The Board of Teaching, consistent with board rules, must issue up to three 
22.28 	one-year temporary teaching licenses to an applicant who holds or held an out-of-state 
22.29 	teaching license to teach the same content field and grade levels, where the scope of the 
22.30 	out-of-state license is no more than one grade level less than a similar Minnesota license, 
22.31 	but has not successfully completed passed all exams and successfully completed human 
22.32 	relations preparation components required by the Board of Teaching.
22.33 	(d) The Board of Teaching, consistent with board rules, must issue up to three 
22.34 	one-year temporary teaching licenses to an applicant who:
23.1 	(1) successfully completed passed all exams and successfully completed human 
23.2 	relations preparation components required by the Board of Teaching; and
23.3 	(2) holds or held an out-of-state teaching license to teach the same content field 
23.4 	and grade levels, where the scope of the out-of-state license is no more than one grade 
23.5 	level less than a similar Minnesota license, but has not completed field-specific teaching 
23.6 	methods or student teaching or equivalent experience.
23.7 	The applicant may complete field-specific teaching methods and student teaching 
23.8 	or equivalent experience by successfully participating in a one-year school district 
23.9 	mentorship program consistent with board-adopted standards of effective practice and 
23.10 	Minnesota graduation requirements.
23.11 	(e) The Board of Teaching must issue a temporary teaching license for a term of 
23.12 	up to three years only in the content field or grade levels specified in the out-of-state 
23.13 	license to an applicant who:
23.14 	(1) successfully completed passed all exams and successfully completed human 
23.15 	relations preparation components required by the Board of Teaching; and
23.16 	(2) holds or held an out-of-state teaching license where the out-of-state license is 
23.17 	more limited in the content field or grade levels than a similar Minnesota license.
23.18 	(f) The Board of Teaching must not issue to an applicant more than three one-year 
23.19 	temporary teaching licenses under this subdivision.
23.20 	(g) The Board of Teaching must not issue a license under this subdivision if the 
23.21 	applicant has not attained the additional degrees, credentials, or licenses required in a 
23.22 	particular licensure field.

23.23 	Sec. 15. Minnesota Statutes 2008, section 123B.42, subdivision 1, is amended to read:
23.24 		Subdivision 1.Providing education materials and tests. The commissioner of 
23.25 	education shall promulgate rules under the provisions of chapter 14 requiring that in 
23.26 	each school year, based upon formal requests by or on behalf of nonpublic school pupils 
23.27 	in a nonpublic school with enrollment that exceeds 15 students, the local districts or 
23.28 	intermediary service areas must purchase or otherwise acquire textbooks, individualized 
23.29 	instructional or cooperative learning materials, and standardized tests and loan or provide 
23.30 	them for use by children enrolled in that nonpublic school. These textbooks, individualized 
23.31 	instructional or cooperative learning materials, and standardized tests must be loaned or 
23.32 	provided free to the children for the school year for which requested. The loan or provision 
23.33 	of the textbooks, individualized instructional or cooperative learning materials, and 
23.34 	standardized tests shall be subject to rules prescribed by the commissioner of education.

24.1 	Sec. 16. Minnesota Statutes 2008, section 123B.44, subdivision 1, is amended to read:
24.2 		Subdivision 1.Provided services. The commissioner of education shall promulgate 
24.3 	rules under the provisions of chapter 14 requiring each district or other intermediary 
24.4 	service area: (a) to provide each year upon formal request by a specific date by or on 
24.5 	behalf of a nonpublic school pupil enrolled in a nonpublic school located in that district 
24.6 	or area with a total enrollment of more than 15 pupils, the same specific health services 
24.7 	as are provided for public school pupils by the district where the nonpublic school is 
24.8 	located; and (b) to provide each year upon formal request by a specific date by or on 
24.9 	behalf of a nonpublic school secondary pupil enrolled in a nonpublic school located in that 
24.10 	district or area, the same specific guidance and counseling services as are provided for 
24.11 	public school secondary pupils by the district where the nonpublic school is located. The 
24.12 	district where the nonpublic school is located must provide the necessary transportation 
24.13 	within the district boundaries between the nonpublic school and a public school or 
24.14 	neutral site for nonpublic school pupils who are provided pupil support services under 
24.15 	this section if the district elects to provide pupil support services at a site other than the 
24.16 	nonpublic school. Each request for pupil support services must set forth the guidance and 
24.17 	counseling or health services requested by or on behalf of all eligible nonpublic school 
24.18 	pupils enrolled in a given nonpublic school. No district or intermediary service area 
24.19 	must not expend an amount for these pupil support services which exceeds the amount 
24.20 	allotted to it under this section.

24.21 	Sec. 17. Minnesota Statutes 2009 Supplement, section 124D.10, subdivision 3, is 
24.22 	amended to read:
24.23 		Subd. 3.Authorizer. (a) For purposes of this section, the terms defined in this 
24.24 	subdivision have the meanings given them.
24.25 	"Application" to receive approval as an authorizer means the proposal an eligible 
24.26 	authorizer submits to the commissioner under paragraph (c) before that authorizer is able 
24.27 	to submit any affidavit to charter to a school.
24.28 	"Application" under subdivision 4 means the charter school business plan a 
24.29 	school developer submits to an authorizer for approval to establish a charter school that 
24.30 	documents the school developer's mission statement, school purposes, program design, 
24.31 	financial plan, governance and management structure, and background and experience, 
24.32 	plus any other information the authorizer requests. The application also shall include a 
24.33 	"statement of assurances" of legal compliance prescribed by the commissioner.
25.1 	"Affidavit" means a written statement the authorizer submits to the commissioner 
25.2 	for approval to establish a charter school under subdivision 4 attesting to its review and 
25.3 	approval process before chartering a school.
25.4 	"Affidavit" means the form an authorizer submits to the commissioner that is a 
25.5 	precondition to a charter school organizing an affiliated nonprofit building corporation 
25.6 	under subdivision 17a.
25.7 	(b) The following organizations may authorize one or more charter schools:
25.8 	(1) a school board; intermediate school district school board; education district 
25.9 	organized under sections 123A.15 to 123A.19;
25.10 	(2) a charitable organization under section 501(c)(3) of the Internal Revenue 
25.11 	Code of 1986, excluding a nonpublic sectarian or religious institution, without an 
25.12 	approved affidavit by the commissioner prior to July 1, 2009, and any person other than a 
25.13 	natural person that directly or indirectly, through one or more intermediaries, controls, 
25.14 	is controlled by, or is under common control with the nonpublic sectarian or religious 
25.15 	institution, and any other charitable organization under this clause that in the federal IRS 
25.16 	Form 1023, Part IV, describes activities indicating a religious purpose, that:
25.17 	(i) is a member of the Minnesota Council of Nonprofits or the Minnesota Council on 
25.18 	Foundations;
25.19 	(ii) is registered with the attorney general's office;
25.20 	(iii) reports an end-of-year fund balance of at least $2,000,000; and
25.21 	(iv) is incorporated in the state of Minnesota;
25.22 	(3) a Minnesota private college, notwithstanding clause (2), that grants two- or 
25.23 	four-year degrees and is registered with the Minnesota Office of Higher Education under 
25.24 	chapter 136A; community college, state university, or technical college governed by the 
25.25 	Board of Trustees of the Minnesota State Colleges and Universities; or the University of 
25.26 	Minnesota; or
25.27 	(4) a nonprofit corporation subject to chapter 317A, described in section 317A.905, 
25.28 	and exempt from federal income tax under section 501(c)(6) of the Internal Revenue Code 
25.29 	of 1986, may authorize one or more charter schools if the charter school has operated 
25.30 	for at least three years under a different authorizer and if the nonprofit corporation has 
25.31 	existed for at least 25 years.
25.32 	(5) no more than three single-purpose sponsors that are charitable, nonsectarian 
25.33 	organizations formed under section 501(c)(3) of the Internal Revenue Code of 1986 and 
25.34 	incorporated in the state of Minnesota whose sole purpose is to charter schools. Eligible 
25.35 	organizations interested in being approved as a sponsor under this paragraph must submit a 
25.36 	proposal to the commissioner that includes the provisions of paragraph (c) and a five-year 
26.1 	financial plan. Such authorizers shall consider and approve applications using the criteria 
26.2 	provided in subdivision 4 and shall not limit the applications it solicits, considers, or 
26.3 	approves to any single curriculum, learning program, or method.
26.4 	(c) An eligible authorizer under this subdivision must apply to the commissioner for 
26.5 	approval as an authorizer before submitting any affidavit to the commissioner to charter 
26.6 	a school. The application for approval as a charter school authorizer must demonstrate 
26.7 	the applicant's ability to implement the procedures and satisfy the criteria for chartering a 
26.8 	school under this section. The commissioner must approve or disapprove an application 
26.9 	within 60 business days of the application deadline. If the commissioner disapproves 
26.10 	the application, the commissioner must notify the applicant of the deficiencies and the 
26.11 	applicant then has 20 business days to address the deficiencies to the commissioner's 
26.12 	satisfaction. Failing to address the deficiencies to the commissioner's satisfaction makes 
26.13 	an applicant ineligible to be an authorizer. The commissioner, in establishing criteria for 
26.14 	approval, must consider the applicant's:
26.15 	(1) capacity and infrastructure;
26.16 	(2) application criteria and process;
26.17 	(3) contracting process;
26.18 	(4) ongoing oversight and evaluation processes; and
26.19 	(5) renewal criteria and processes.
26.20 	(d) The affidavit application for approval to be submitted to and evaluated by the 
26.21 	commissioner must include at least the following:
26.22 	(1) how chartering schools is a way for the organization to carry out its mission;
26.23 	(2) a description of the capacity of the organization to serve as a sponsor, including 
26.24 	the personnel who will perform the sponsoring duties, their qualifications, the amount of 
26.25 	time they will be assigned to this responsibility, and the financial resources allocated 
26.26 	by the organization to this responsibility;
26.27 	(3) a description of the application and review process the authorizer will use to make 
26.28 	decisions regarding the granting of charters, which will include at least the following:
26.29 	(i) how the statutory purposes defined in subdivision 1 are addressed;
26.30 	(ii) the mission, goals, program model, and student performance expectations;
26.31 	(iii) an evaluation plan for the school that includes criteria for evaluating educational, 
26.32 	organizational, and fiscal plans;
26.33 	(iv) the school's governance plan;
26.34 	(v) the financial management plan; and
26.35 	(vi) the administration and operations plan;
27.1 	(4) a description of the type of contract it will arrange with the schools it charters 
27.2 	that meets the provisions of subdivision 6 and defines the rights and responsibilities of the 
27.3 	charter school for governing its educational program, controlling its funds, and making 
27.4 	school management decisions;
27.5 	(5) the process to be used for providing ongoing oversight of the school consistent 
27.6 	with the contract expectations specified in clause (4) that assures that the schools chartered 
27.7 	are complying with both the provisions of applicable law and rules, and with the contract;
27.8 	(6) the process for making decisions regarding the renewal or termination of 
27.9 	the school's charter based on evidence that demonstrates the academic, organizational, 
27.10 	and financial competency of the school, including its success in increasing student 
27.11 	achievement and meeting the goals of the charter school agreement; and
27.12 	(7) an assurance specifying that the organization is committed to serving as a 
27.13 	sponsor for the full five-year term.
27.14 	A disapproved applicant under this paragraph may resubmit an application during a 
27.15 	future application period.
27.16 	(e) The authorizer must participate in department-approved training.
27.17 	(f) An authorizer that chartered a school before August 1, 2009, must apply by 
27.18 	June 30, 2011, to the commissioner for approval, under paragraph (c), to continue as an 
27.19 	authorizer under this section. For purposes of this paragraph, an authorizer that fails to 
27.20 	submit a timely application is ineligible to charter a school.
27.21 	(g) The commissioner shall review an authorizer's performance every five years in 
27.22 	a manner and form determined by the commissioner and may review an authorizer's 
27.23 	performance more frequently at the commissioner's own initiative or at the request of a 
27.24 	charter school operator, charter school board member, or other interested party. The 
27.25 	commissioner, after completing the review, shall transmit a report with findings to the 
27.26 	authorizer. If, consistent with this section, the commissioner finds that an authorizer 
27.27 	has not fulfilled the requirements of this section, the commissioner may subject the 
27.28 	authorizer to corrective action, which may include terminating the contract with the 
27.29 	charter school board of directors of a school it chartered. The commissioner must notify 
27.30 	the authorizer in writing of any findings that may subject the authorizer to corrective 
27.31 	action and the authorizer then has 15 business days to request an informal hearing before 
27.32 	the commissioner takes corrective action.
27.33 	(h) The commissioner may at any time take corrective action against an authorizer, 
27.34 	including terminating an authorizer's ability to charter a school for:
27.35 	(1) failing to demonstrate the criteria under paragraph (c) under which the 
27.36 	commissioner approved the authorizer;
28.1 	(2) violating a term of the chartering contract between the authorizer and the charter 
28.2 	school board of directors; or
28.3 	(3) unsatisfactory performance as an approved authorizer.

28.4 	Sec. 18. Minnesota Statutes 2009 Supplement, section 124D.10, subdivision 4, is 
28.5 	amended to read:
28.6 		Subd. 4.Formation of school. (a) An authorizer, after receiving an application from 
28.7 	a school developer, may charter a licensed teacher under section 122A.18, subdivision 
28.8 	1, or a group of individuals that includes one or more licensed teachers under section 
28.9 	122A.18, subdivision 1, to operate a school subject to the commissioner's approval of the 
28.10 	authorizer's affidavit under paragraph (b). The school must be organized and operated 
28.11 	as a cooperative under chapter 308A or nonprofit corporation under chapter 317A and 
28.12 	the provisions under the applicable chapter shall apply to the school except as provided 
28.13 	in this section.
28.14 	Notwithstanding sections 465.717 and 465.719, a school district, subject to this 
28.15 	section and section 124D.11, may create a corporation for the purpose of establishing a 
28.16 	charter school.
28.17 	(b) Before the operators may establish and operate a school, the authorizer must file 
28.18 	an affidavit with the commissioner stating its intent to charter a school. An authorizer 
28.19 	must file a separate affidavit for each school it intends to charter. The affidavit must 
28.20 	state the terms and conditions under which the authorizer would charter a school and 
28.21 	how the authorizer intends to oversee the fiscal and student performance of the charter 
28.22 	school and to comply with the terms of the written contract between the authorizer 
28.23 	and the charter school board of directors under subdivision 6. The commissioner must 
28.24 	approve or disapprove the authorizer's affidavit within 60 business days of receipt of the 
28.25 	affidavit. If the commissioner disapproves the affidavit, the commissioner shall notify 
28.26 	the authorizer of the deficiencies in the affidavit and the authorizer then has 20 business 
28.27 	days to address the deficiencies. If the authorizer does not address deficiencies to the 
28.28 	commissioner's satisfaction, the commissioner's disapproval is final. Failure to obtain 
28.29 	commissioner approval precludes an authorizer from chartering the school that is the 
28.30 	subject of this affidavit.
28.31 	(c) The authorizer may prevent an approved charter school from opening for 
28.32 	operation if, among other grounds, the charter school violates this section or does not meet 
28.33 	the ready-to-open standards that are part of the authorizer's oversight and evaluation 
28.34 	process or are stipulated in the charter school contract.
29.1 	(d) The operators authorized to organize and operate a school, before entering into a 
29.2 	contract or other agreement for professional or other services, goods, or facilities, must 
29.3 	incorporate as a cooperative under chapter 308A or as a nonprofit corporation under 
29.4 	chapter 317A and must establish a board of directors composed of at least five members 
29.5 	who are not related parties until a timely election for members of the ongoing charter 
29.6 	school board of directors is held according to the school's articles and bylaws under 
29.7 	paragraph (f). A charter school board of directors must be composed of at least five 
29.8 	members who are not related parties. Staff members employed at the school, including 
29.9 	teachers providing instruction under a contract with a cooperative, and all parents or legal 
29.10 	guardians of children enrolled in the school are the voters eligible to elect the members 
29.11 	of the school's board of directors. A charter school must notify eligible voters of the 
29.12 	school board election dates at least 30 days before the election. Board of director meetings 
29.13 	must comply with chapter 13D.
29.14 	(e) Upon the request of an individual, the charter school must make available in 
29.15 	a timely fashion the minutes of meetings of the board of directors, and of members 
29.16 	and committees having any board-delegated authority; financial statements showing all 
29.17 	operations and transactions affecting income, surplus, and deficit during the school's last 
29.18 	annual accounting period; and a balance sheet summarizing assets and liabilities on the 
29.19 	closing date of the accounting period. A charter school also must post on its official Web 
29.20 	site information identifying its authorizer and indicate how to contact that authorizer and 
29.21 	include that same information about its authorizer in other school materials that it makes 
29.22 	available to the public.
29.23 	(f) Every charter school board member shall attend department-approved training 
29.24 	on board governance, the board's role and responsibilities, employment policies and 
29.25 	practices, and financial management. A board member who does not begin the required 
29.26 	training within six months of being seated and complete the required training within 12 
29.27 	months of being seated on the board is ineligible to continue to serve as a board member.
29.28 	(g) The ongoing board must be elected before the school completes its third year 
29.29 	of operation. Board elections must be held during a time when school is in session. The 
29.30 	charter school board of directors shall be composed of at least five nonrelated members 
29.31 	and include: (i) at least one licensed teacher employed and serving as a teacher at the 
29.32 	school or a licensed teacher providing instruction under a contact contract between the 
29.33 	charter school and a cooperative; (ii) the parent or legal guardian of a student enrolled 
29.34 	in the charter school who is not employed by the charter school; and (iii) an interested 
29.35 	community member who is not employed by the charter school and does not have a child 
29.36 	enrolled in the school. The board may be a teacher majority board composed of teachers 
30.1 	described in this paragraph. The chief financial officer and the chief administrator are may 
30.2 	only serve as ex-officio nonvoting board members and shall not serve as a voting member 
30.3 	of the board. Charter school employees shall not serve on the board unless item (i) applies. 
30.4 	Contractors providing facilities, goods, or services to a charter school shall not serve on 
30.5 	the board of directors of the charter school. Board bylaws shall outline the process and 
30.6 	procedures for changing the board's governance model, consistent with chapter 317A. A 
30.7 	board may change its governance model only:
30.8 	(1) by a majority vote of the board of directors and the licensed teachers employed 
30.9 	by the school, including licensed teachers providing instruction under a contract between 
30.10 	the school and a cooperative; and
30.11 	(2) with the authorizer's approval.
30.12 	Any change in board governance must conform with the board structure established 
30.13 	under this paragraph.
30.14 	(h) The granting or renewal of a charter by an authorizer must not be conditioned 
30.15 	upon the bargaining unit status of the employees of the school.
30.16 	(i) The granting or renewal of a charter school by an authorizer must not be 
30.17 	contingent on the charter school being required to contract, lease, or purchase services 
30.18 	from the authorizer. Any potential contract, lease, or purchase of service from an 
30.19 	authorizer must be disclosed to the commissioner, accepted through an open bidding 
30.20 	process, and be a separate contract from the charter contract. The school must document 
30.21 	the open bidding process. An authorizer must not enter into a contract to provide 
30.22 	management and financial services for a school that it authorizes, unless the school 
30.23 	documents that it received at least two competitive bids.
30.24 	(j) An authorizer may permit the board of directors of a charter school to expand 
30.25 	the operation of the charter school to additional sites or to add additional grades at the 
30.26 	school beyond those described in the authorizer's original affidavit as approved by 
30.27 	the commissioner only after submitting a supplemental affidavit for approval to the 
30.28 	commissioner in a form and manner prescribed by the commissioner. The supplemental 
30.29 	affidavit must show that:
30.30 	(1) the expansion proposed by the charter school is supported by need and projected 
30.31 	enrollment;
30.32 	(2) the charter school expansion is warranted, at a minimum, by longitudinal data 
30.33 	demonstrating students' improved academic performance and growth on statewide 
30.34 	assessments under chapter 120B;
30.35 	(3) the charter school is fiscally sound and has the financial capacity to implement 
30.36 	the proposed expansion; and
31.1 	(4) the authorizer finds that the charter school has the management capacity to 
31.2 	carry out its expansion.
31.3 	(k) The commissioner shall have 30 business days to review and comment on the 
31.4 	supplemental affidavit. The commissioner shall notify the authorizer of any deficiencies in 
31.5 	the supplemental affidavit and the authorizer then has 30 business days to address, to the 
31.6 	commissioner's satisfaction, any deficiencies in the supplemental affidavit. The school 
31.7 	may not expand grades or add sites until the commissioner has approved the supplemental 
31.8 	affidavit. The commissioner's approval or disapproval of a supplemental affidavit is final.

31.9 	Sec. 19. Minnesota Statutes 2009 Supplement, section 124D.10, subdivision 6a, 
31.10 	is amended to read:
31.11 		Subd. 6a.Audit report. (a) The charter school must submit an audit report to the 
31.12 	commissioner and its authorizer by December 31 each year.
31.13 	(b) The charter school, with the assistance of the auditor conducting the audit, must 
31.14 	include with the report a copy of all charter school agreements for corporate management 
31.15 	services. If the entity that provides the professional services to the charter school is 
31.16 	exempt from taxation under section 501 of the Internal Revenue Code of 1986, that entity 
31.17 	must file with the commissioner by February 15 a copy of the annual return required under 
31.18 	section 6033 of the Internal Revenue Code of 1986.
31.19 	(c) If the commissioner receives an audit report indicating that a material weakness 
31.20 	exists in the financial reporting systems of a charter school, the charter school must 
31.21 	submit a written report to the commissioner explaining how the material weakness will 
31.22 	be resolved. An entity, as a condition of providing financial services to a charter school, 
31.23 	must agree to make available information about a charter school's financial audit to the 
31.24 	commissioner upon request.

31.25 	Sec. 20. Minnesota Statutes 2009 Supplement, section 124D.10, subdivision 23, 
31.26 	is amended to read:
31.27 		Subd. 23.Causes for nonrenewal or termination of charter school contract. (a) 
31.28 	The duration of the contract with an authorizer must be for the term contained in the 
31.29 	contract according to subdivision 6. The authorizer may or may not renew a contract at 
31.30 	the end of the term for any ground listed in paragraph (b). An authorizer may unilaterally 
31.31 	terminate a contract during the term of the contract for any ground listed in paragraph 
31.32 	(b). At least 60 days before not renewing or terminating a contract, the authorizer shall 
31.33 	notify the board of directors of the charter school of the proposed action in writing. The 
31.34 	notice shall state the grounds for the proposed action in reasonable detail and that the 
32.1 	charter school's board of directors may request in writing an informal hearing before the 
32.2 	authorizer within 15 business days of receiving notice of nonrenewal or termination of the 
32.3 	contract. Failure by the board of directors to make a written request for a hearing within 
32.4 	the 15-business-day period shall be treated as acquiescence to the proposed action. Upon 
32.5 	receiving a timely written request for a hearing, the authorizer shall give ten business days' 
32.6 	notice to the charter school's board of directors of the hearing date. The authorizer shall 
32.7 	conduct an informal hearing before taking final action. The authorizer shall take final 
32.8 	action to renew or not renew a contract no later than 20 business days before the proposed 
32.9 	date for terminating the contract or the end date of the contract.
32.10 	(b) A contract may be terminated or not renewed upon any of the following grounds:
32.11 	(1) failure to meet the requirements for pupil performance contained in the contract;
32.12 	(2) failure to meet generally accepted standards of fiscal management;
32.13 	(3) violations of law; or
32.14 	(4) other good cause shown.
32.15 	If a contract is terminated or not renewed under this paragraph, the school must be 
32.16 	dissolved according to the applicable provisions of chapter 308A or 317A.
32.17 	(c) If the sponsor and the charter school board of directors mutually agree to 
32.18 	terminate or not renew the contract, a change in sponsors is allowed if the commissioner 
32.19 	approves the transfer to a different eligible authorizer to authorize the charter school. 
32.20 	Both parties must jointly submit their intent in writing to the commissioner to mutually 
32.21 	terminate the contract. The sponsor that is a party to the existing contract at least must 
32.22 	inform the approved different eligible sponsor about the fiscal and operational status 
32.23 	and student performance of the school. Before the commissioner determines whether 
32.24 	to approve a transfer of authorizer, the commissioner first must determine whether the 
32.25 	charter school and prospective new authorizer can identify and effectively resolve those 
32.26 	circumstances causing the previous authorizer and the charter school to mutually agree to 
32.27 	terminate the contract. If no transfer of sponsor is approved, the school must be dissolved 
32.28 	according to applicable law and the terms of the contract.
32.29 	(d) The commissioner, after providing reasonable notice to the board of directors of 
32.30 	a charter school and the existing authorizer, and after providing an opportunity for a public 
32.31 	hearing under chapter 14, may terminate the existing contract between the authorizer and 
32.32 	the charter school board if the charter school has a history of:
32.33 	(1) failure to meet pupil performance requirements contained in the contract
32.34 	consistent with state law;
32.35 	(2) financial mismanagement or failure to meet generally accepted standards of 
32.36 	fiscal management; or
33.1 	(3) repeated or major violations of the law.
33.2 	(e) If the commissioner terminates a charter school contract under subdivision 3, 
33.3 	paragraph (g), the commissioner shall provide the charter school with information about 
33.4 	other eligible authorizers.

33.5 	Sec. 21. Minnesota Statutes 2008, section 171.05, subdivision 2, is amended to read:
33.6 		Subd. 2.Person less than 18 years of age. (a) Notwithstanding any provision 
33.7 	in subdivision 1 to the contrary, the department may issue an instruction permit to an 
33.8 	applicant who is 15, 16, or 17 years of age and who:
33.9 	(1) has completed a course of driver education in another state, has a previously 
33.10 	issued valid license from another state, or is enrolled in either:
33.11 	(i) a public, private, or commercial driver education program that is approved by 
33.12 	the commissioner of public safety and that includes classroom and behind-the-wheel 
33.13 	training; or
33.14 	(ii) an approved behind-the-wheel driver education program when the student is 
33.15 	receiving full-time instruction in a home school within the meaning of sections 120A.22
33.16 	and 120A.24, the student is working toward a homeschool diploma, the student's status 
33.17 	as a homeschool student has been certified by the superintendent of the school district in 
33.18 	which the student resides, and the student is taking home-classroom driver training with 
33.19 	classroom materials approved by the commissioner of public safety, and the student's 
33.20 	parent has certified the student's homeschool and home-classroom driver training status on 
33.21 	the form approved by the commissioner;
33.22 	(2) has completed the classroom phase of instruction in the driver education program;
33.23 	(3) has passed a test of the applicant's eyesight;
33.24 	(4) has passed a department-administered test of the applicant's knowledge of traffic 
33.25 	laws;
33.26 	(5) has completed the required application, which must be approved by (i) either 
33.27 	parent when both reside in the same household as the minor applicant or, if otherwise, then 
33.28 	(ii) the parent or spouse of the parent having custody or, in the event there is no court order 
33.29 	for custody, then (iii) the parent or spouse of the parent with whom the minor is living 
33.30 	or, if items (i) to (iii) do not apply, then (iv) the guardian having custody of the minor or, 
33.31 	in the event a person under the age of 18 has no living father, mother, or guardian, or is 
33.32 	married or otherwise legally emancipated, then (v) the applicant's adult spouse, adult close 
33.33 	family member, or adult employer; provided, that the approval required by this clause 
33.34 	contains a verification of the age of the applicant and the identity of the parent, guardian, 
33.35 	adult spouse, adult close family member, or adult employer; and
34.1 	(6) has paid the fee required in section 171.06, subdivision 2.
34.2 	(b) For the purposes of determining compliance with the certification of paragraph 
34.3 	(a), clause (1), item (ii), the commissioner may request verification of a student's 
34.4 	homeschool status from the superintendent of the school district in which the student 
34.5 	resides and the superintendent shall provide that verification.
34.6 	(c) The instruction permit is valid for two years from the date of application and 
34.7 	may be renewed upon payment of a fee equal to the fee for issuance of an instruction 
34.8 	permit under section 171.06, subdivision 2.

34.9 	Sec. 22. Minnesota Statutes 2008, section 171.17, subdivision 1, is amended to read:
34.10 		Subdivision 1.Offenses. (a) The department shall immediately revoke the license 
34.11 	of a driver upon receiving a record of the driver's conviction of:
34.12 	(1) manslaughter resulting from the operation of a motor vehicle or criminal 
34.13 	vehicular homicide or injury under section 609.21;
34.14 	(2) a violation of section 169A.20 or 609.487;
34.15 	(3) a felony in the commission of which a motor vehicle was used;
34.16 	(4) failure to stop and disclose identity and render aid, as required under section 
34.17 	169.09, in the event of a motor vehicle accident, resulting in the death or personal injury 
34.18 	of another;
34.19 	(5) perjury or the making of a false affidavit or statement to the department under 
34.20 	any law relating to the application, ownership or operation of a motor vehicle, including 
34.21 	on the certification required under section 171.05, subdivision 2, clause (1), item (ii), to 
34.22 	issue an instruction permit to a homeschool student;
34.23 	(6) except as this section otherwise provides, three charges of violating within a 
34.24 	period of 12 months any of the provisions of chapter 169 or of the rules or municipal 
34.25 	ordinances enacted in conformance with chapter 169, for which the accused may be 
34.26 	punished upon conviction by imprisonment;
34.27 	(7) two or more violations, within five years, of the misdemeanor offense described 
34.28 	in section 169.444, subdivision 2, paragraph (a);
34.29 	(8) the gross misdemeanor offense described in section 169.444, subdivision 2, 
34.30 	paragraph (b);
34.31 	(9) an offense in another state that, if committed in this state, would be grounds for 
34.32 	revoking the driver's license; or
34.33 	(10) a violation of an applicable speed limit by a person driving in excess of 100 
34.34 	miles per hour. The person's license must be revoked for six months for a violation of 
35.1 	this clause, or for a longer minimum period of time applicable under section 169A.53, 
35.2 	169A.54, or 171.174.
35.3 	(b) The department shall immediately revoke the school bus endorsement of a driver 
35.4 	upon receiving a record of the driver's conviction of the misdemeanor offense described in 
35.5 	section 169.443, subdivision 7.

35.6 	Sec. 23. Minnesota Statutes 2008, section 171.22, subdivision 1, is amended to read:
35.7 		Subdivision 1.Violations. With regard to any driver's license, including a 
35.8 	commercial driver's license, it shall be unlawful for any person:
35.9 	(1) to display, cause or permit to be displayed, or have in possession, any fictitious 
35.10 	or fraudulently altered driver's license or Minnesota identification card;
35.11 	(2) to lend the person's driver's license or Minnesota identification card to any other 
35.12 	person or knowingly permit the use thereof by another;
35.13 	(3) to display or represent as one's own any driver's license or Minnesota 
35.14 	identification card not issued to that person;
35.15 	(4) to use a fictitious name or date of birth to any police officer or in any application 
35.16 	for a driver's license or Minnesota identification card, or to knowingly make a false 
35.17 	statement, or to knowingly conceal a material fact, or otherwise commit a fraud in any 
35.18 	such application;
35.19 	(5) to alter any driver's license or Minnesota identification card;
35.20 	(6) to take any part of the driver's license examination for another or to permit 
35.21 	another to take the examination for that person;
35.22 	(7) to make a counterfeit driver's license or Minnesota identification card;
35.23 	(8) to use the name and date of birth of another person to any police officer for the 
35.24 	purpose of falsely identifying oneself to the police officer; or
35.25 	(9) to display as a valid driver's license any canceled, revoked, or suspended driver's 
35.26 	license. A person whose driving privileges have been withdrawn may display a driver's 
35.27 	license only for identification purposes; or
35.28 	(10) to submit a false affidavit or statement to the department on the certification 
35.29 	required under section 171.05, subdivision 2, clause (1), item (ii), to issue an instruction 
35.30 	permit to a homeschool student.

35.31 	Sec. 24. Minnesota Statutes 2008, section 181A.05, subdivision 1, is amended to read:
35.32 		Subdivision 1.When issued. Any minor 14 or 15 years of age who wishes to work 
35.33 	on school days during school hours shall first secure an employment certificate. The 
35.34 	certificate shall be issued only by the school district superintendent, the superintendent's 
36.1 	agent, or some other person designated by the Board of Education, or by the person in 
36.2 	charge of providing instruction for students enrolled in nonpublic schools as defined in 
36.3 	section 120A.22, subdivision 4. The employment certificate shall be issued only for 
36.4 	a specific position with a designated employer and shall be issued only in the following 
36.5 	circumstances:
36.6 	(1) if a minor is to be employed in an occupation not prohibited by rules promulgated 
36.7 	under section 181A.09 and as evidence thereof presents a signed statement from the 
36.8 	prospective employer; and 
36.9 	(2) if the parent or guardian of the minor consents to the employment; and
36.10 	(3) if the issuing officer believes the minor is physically capable of handling the job 
36.11 	in question and further believes the best interests of the minor will be served by permitting 
36.12 	the minor to work.

36.13 	Sec. 25. Laws 2009, chapter 96, article 2, section 67, subdivision 14, is amended to 
36.14 	read:
36.15 		Subd. 14.Collaborative urban educator. For the collaborative urban educator 
36.16 	grant program:

36.17		$
	528,000
	.....
	2010
	
36.18		$
	528,000
	.....
	2011
	
36.19 	$210,000 each year is for the Southeast Asian teacher program at Concordia 
36.20 	University, St. Paul; $159,000 each year is for the collaborative urban educator program at 
36.21 	the University of St. Thomas; and $159,000 each year is for the Center for Excellence in 
36.22 	Urban Teaching at Hamline University. Grant recipients must collaborate with urban and 
36.23 	nonurban school districts. Any balance in the first year does not cancel but is available 
36.24 	in the second year.

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

36.26 	Sec. 26. IMPLEMENTING DIFFERENTIATED GRADUATION RATE 
36.27 	MEASURES AND EXPLORING ALTERNATIVE ROUTES TO A STANDARD 
36.28 	DIPLOMA FOR AT-RISK AND OFF-TRACK STUDENTS.
 36.29 	(a) To implement the requirements of Minnesota Statutes, section 120B.35, 
36.30 	subdivision 3, paragraph (e), the commissioner of education must convene a group 
36.31 	of recognized and qualified experts on improving differentiated graduation rates and 
36.32 	establishing alternative routes to a standard high school diploma for at-risk and off-track 
36.33 	students throughout the state. The commissioner must assist the group, as requested, 
36.34 	to explore and recommend to the commissioner and the legislature (i) research-based 
37.1 	measures that demonstrate the relative success of school districts, school sites, charter 
37.2 	schools, and alternative program providers in improving the graduation outcomes of 
37.3 	at-risk and off-track students, and (ii) state options for establishing alternative routes to a 
37.4 	standard diploma consistent with the educational accountability system under Minnesota 
37.5 	Statutes, chapter 120B. When proposing alternative routes to a standard diploma, the 
37.6 	group also must identify highly reliable variables that generate summary data to comply 
37.7 	with Minnesota Statutes, section 120B.35, subdivision 3, paragraph (e), including: who 
37.8 	initiates the request for an alternative route; who approves the request for an alternative 
37.9 	route; the parameters of the alternative route process, including whether a student first 
37.10 	must fail a regular, state-mandated exam; and the comparability of the academic and 
37.11 	achievement criteria reflected in the alternative route and the standard route for a standard 
37.12 	diploma. The group is also encouraged to identify the data, time lines, and methods 
37.13 	needed to evaluate and report on the alternative routes to a standard diploma once they are 
37.14 	implemented and the student outcomes that result from those routes.
37.15 	(b) The commissioner must convene the first meeting of this group by September 
37.16 	15, 2010. Group members must include: one administrator of, one teacher from, and 
37.17 	one parent of a student currently enrolled in a state-approved alternative program 
37.18 	selected by the Minnesota Association of Alternative Programs; one representative 
37.19 	selected by the Minnesota Online Learning Alliance; one representative selected by 
37.20 	the Metropolitan Federation of Alternative Schools; one representative selected by the 
37.21 	Minnesota Association of Charter Schools; one representative selected by the Minnesota 
37.22 	School Board Association; one representative selected by Education Minnesota; one 
37.23 	representative selected by the Association of Metropolitan School Districts; one 
37.24 	representative selected by the Minnesota Rural Education Association; two faculty 
37.25 	members selected by the dean of the college of education at the University of Minnesota 
37.26 	with expertise in serving and assessing at-risk and off-track students; two Minnesota State 
37.27 	Colleges and Universities faculty members selected by the Minnesota State Colleges 
37.28 	and Universities chancellor with expertise in serving and assessing at-risk and off-track 
37.29 	students; one currently serving superintendent from a school district selected by the 
37.30 	Minnesota Association of School Administrators; one currently serving high school 
37.31 	principal selected by the Minnesota Association of Secondary School Principals; and 
37.32 	two public members selected by the commissioner. The group may seek input from 
37.33 	representatives of other interested stakeholders and organizations with expertise to help 
37.34 	inform the group's work. The group must meet at least quarterly. Group members do not 
37.35 	receive compensation or reimbursement of expenses for participating in this group. The 
37.36 	group expires February 16, 2012.
38.1 	(c) The group, by February 15, 2012, must develop and submit to the commissioner 
38.2 	and the education policy and finance committees of the legislature recommendations 
38.3 	and legislation, consistent with this section and Minnesota Statutes, section 120B.35, 
38.4 	subdivision 3, paragraph (e), for:
38.5 	(1)  measuring and reporting differentiated graduation rates for at-risk and off-track 
38.6 	students throughout the state and the success and costs that school districts, school sites, 
38.7 	charter schools, and alternative program providers experience in identifying and serving 
38.8 	at-risk or off-track student populations; and
38.9 	(2) establishing alternative routes to a standard diploma.

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

38.12 	Sec. 27. RULEMAKING AUTHORITY.
 38.13 	The commissioner of education shall adopt rules consistent with chapter 14 that 
38.14 	provide English language proficiency standards for instruction of students identified 
38.15 	as limited English proficient under Minnesota Statutes, sections 124D.58 to 124D.64. 
38.16 	The English language proficiency standards must encompass the language domains of 
38.17 	listening, speaking, reading, and writing. The English language proficiency standards must 
38.18 	reflect social and academic dimensions of acquiring a second language that are accepted 
38.19 	of English language learners in prekindergarten through grade 12. The English language 
38.20 	proficiency standards must address the specific contexts for language acquisition in the 
38.21 	areas of social and instructional settings as well as academic language encountered in 
38.22 	language arts, mathematics, science, and social studies. The English language proficiency 
38.23 	standards must express the progression of language development through language 
38.24 	proficiency levels. The English language proficiency standards must be implemented 
38.25 	for all limited English proficient students beginning in the 2011-2012 school year and 
38.26 	assessed beginning in the 2012-2013 school year.

38.27 	Sec. 28. ASSESSMENT ADVISORY COMMITTEE; RECOMMENDATIONS.
 38.28 	(a) The Assessment Advisory Committee must develop recommendations for 
38.29 	alternative methods by which students satisfy the high school algebra end-of-course 
38.30 	requirements under Minnesota Statutes, section 120B.30, subdivision 1b, paragraph (b), 
38.31 	clause (9), and demonstrate their college and career readiness. The Assessment Advisory 
38.32 	Committee, among other alternative methods and if consistent with federal educational 
38.33 	accountability law, must consider allowing students to:
39.1 	(1) achieve the mathematics college readiness score on the American College Test 
39.2 	(ACT) or Scholastic Aptitude Test (SAT) exam;
39.3 	(2) achieve a college-credit score on a College-Level Examination Program (CLEP) 
39.4 	for algebra;
39.5 	(3) achieve a score on an equivalent Advanced Placement or International 
39.6 	Baccalaureate exam that would earn credit at a four-year college or university; or
39.7 	(4) pass a credit-bearing course in college algebra or a more advanced course in that 
39.8 	subject with a grade of C or better under Minnesota Statutes, section 124D.09, including 
39.9 	Minnesota Statutes, section 124D.09, subdivision 10.
39.10 	(b) The Assessment Advisory Committee, in the context of the high school algebra 
39.11 	end-of-course assessment under Minnesota Statutes, section 120B.30, subdivision 1b, may 
39.12 	develop recommendations on integrating universal design principles to improve access 
39.13 	to learning and assessments for all students, more accurately understand what students 
39.14 	know and can do, provide Minnesota with more cost-effective assessments, and provide 
39.15 	educators with more valid inferences about students' achievement levels.
39.16 	(c) The Assessment Advisory Committee, for purposes of fully implementing the 
39.17 	high school algebra end-of-course assessment under Minnesota Statutes, section 120B.30, 
39.18 	subdivision 1b, also must develop recommendations for:
39.19 	(1) calculating the alignment index, including how questions about validity and 
39.20 	reliability are resolved; and
39.21 	(2) defining "misaligned" and "highly misaligned" and when and under what specific 
39.22 	circumstances misalignments occur.
39.23 	(d) By February 15, 2011, the Assessment Advisory Committee must submit its 
39.24 	recommendations under this section to the education commissioner and the education 
39.25 	policy and finance committees of the legislature.
39.26 	(e) The commissioner must not implement any element of any recommendation 
39.27 	under paragraphs (a) to (d) related to the high school algebra end-of-course assessment 
39.28 	under Minnesota Statutes, section 120B.30, subdivision 1b, without first receiving specific 
39.29 	legislative authority to do so.

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

39.31 	Sec. 29. PERSISTENTLY LOWEST-ACHIEVING SCHOOL DESIGNATION; 
39.32 	FEDERAL SCHOOL IMPROVEMENT GRANTS.
 39.33 	Upon request of a traditional public or charter school, the commissioner shall seek 
39.34 	an exception from the United States Department of Education, to the extent it is permitted 
39.35 	under the school improvement grant requirements, from the designation as a persistently 
40.1 	lowest-achieving school if the school has shown student growth in proficiency from 2007 
40.2 	through 2010 of over 50 percent in the high-growth category under the Minnesota growth 
40.3 	model under Minnesota Statutes, section 120B.299. A traditional public or charter school 
40.4 	may only request this exemption if it is identified as a persistently lowest-achieving 
40.5 	school under the graduation rate definition or if the school has an approved program 
40.6 	under Minnesota Statutes, section 124D.68.

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

40.8 	Sec. 30.  REPEALER.
 40.9 	Minnesota Statutes 2008, section 120A.26, subdivisions 1 and 2, are repealed.

40.10 	ARTICLE 3
40.11 	SPECIAL PROGRAMS

40.12 	Section 1. Minnesota Statutes 2009 Supplement, section 125A.02, subdivision 1, 
40.13 	is amended to read:
40.14 		Subdivision 1.Child with a disability. "Child with a disability" means a child 
40.15 	identified under federal and state special education law as having a hearing impairment, 
40.16 	blindness, visual disability, deaf or hard-of-hearing, blind or visually impaired, deafblind, 
40.17 	or having a speech or language impairment, a physical disability impairment, other health 
40.18 	impairment disability, mental developmental cognitive disability, emotional/behavioral an 
40.19 	emotional or behavioral disorder, specific learning disability, autism spectrum disorder, 
40.20 	traumatic brain injury, or severe multiple disabilities impairments, or deafblind disability
40.21 	and who needs special education and related services, as determined by the rules of the 
40.22 	commissioner, is a child with a disability. A licensed physician, an advanced practice 
40.23 	nurse, or a licensed psychologist is qualified to make a diagnosis and determination 
40.24 	of attention deficit disorder or attention deficit hyperactivity disorder for purposes of 
40.25 	identifying a child with a disability.

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

40.27 	Sec. 2. Minnesota Statutes 2008, section 125A.03, is amended to read:
40.28 	125A.03 SPECIAL INSTRUCTION FOR CHILDREN WITH A DISABILITY.
40.29 	(a) As defined Except as provided in paragraph (b), every district must provide or 
40.30 	make available special instruction education and related services, either within the district 
40.31 	or in another district, for all children every child with a disability, including providing 
41.1 	required services under Code of Federal Regulations, title 34, section 300.121, paragraph 
41.2 	(d), to those children suspended or expelled from school for more than ten school days 
41.3 	in that school year, who are residents is a resident of the district and who are disabled as 
41.4 	set forth in section 125A.02 from birth until that child becomes 21 years old or receives 
41.5 	a regular high school diploma, whichever comes first. For purposes of state and federal 
41.6 	special education laws, The phrase "special instruction education and related services" 
41.7 	in the state Education Code means a free and appropriate public education provided to an 
41.8 	eligible child with disabilities and includes special education and related services defined 
41.9 	in the Individuals with Disabilities Education Act, subpart A, section 300.24 a disability.  
41.10 	(b) Notwithstanding any age limits in laws to the contrary, special instruction and 
41.11 	services must be provided from birth until July 1 after the child with a disability becomes 
41.12 	21 years old but shall not extend beyond secondary school or its equivalent, except as 
41.13 	provided in section 124D.68, subdivision 2. If a child with a disability becomes 21 years 
41.14 	old during the school year, the district shall continue to make available special education 
41.15 	and related services until the last day of the school year, or until the day the child receives 
41.16 	a regular high school diploma, whichever comes first.
41.17 	(c) For purposes of this section and section 121A.41, subdivision 7, paragraph (a), 
41.18 	clause (2), "school year" means the days of student instruction designated by the school 
41.19 	board as the regular school year in the annual calendar adopted under section 120A.41.
41.20 	(d) A district shall identify, locate, and evaluate children with a disability in the 
41.21 	district who are in need of special education and related services. Local health, education, 
41.22 	and social service agencies must refer children under age five who are known to need or 
41.23 	suspected of needing special instruction education and related services to the school 
41.24 	district. Districts with less than the minimum number of eligible children with a disability 
41.25 	as determined by the commissioner must cooperate with other districts to maintain a full 
41.26 	range of programs for education and services for children with a disability. This section 
41.27 	does not alter the compulsory attendance requirements of section 120A.22.

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

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

42.3 	Sec. 4. Minnesota Statutes 2009 Supplement, section 125A.091, subdivision 7, is 
42.4 	amended to read:
42.5 		Subd. 7.Conciliation conference. A parent must have an opportunity to meet with 
42.6 	appropriate district staff in at least one conciliation conference if the parent objects to 
42.7 	any proposal of which the parent receives notice under subdivision 3a. A district must 
42.8 	offer to hold a conciliation conference within two business days after receiving a parent's 
42.9 	objection to a proposal or refusal in the prior written notice. The district must hold the 
42.10 	conciliation conference within ten calendar days from the date the district receives a the
42.11 	parent's objection to a proposal or refusal in the prior written notice. Except as provided 
42.12 	in this section, all discussions held during a conciliation conference are confidential 
42.13 	and are not admissible in a due process hearing. Within five school days after the final 
42.14 	conciliation conference, the district must prepare and provide to the parent a conciliation 
42.15 	conference memorandum that describes the district's final proposed offer of service. This 
42.16 	memorandum is admissible in evidence in any subsequent proceeding.

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

42.19 	Sec. 5. Minnesota Statutes 2008, section 125A.21, subdivision 2, is amended to read:
42.20 		Subd. 2.Third party reimbursement. (a) Beginning July 1, 2000, districts shall 
42.21 	seek reimbursement from insurers and similar third parties for the cost of services 
42.22 	provided by the district whenever the services provided by the district are otherwise 
42.23 	covered by the child's health coverage. Districts shall request, but may not require, the 
42.24 	child's family to provide information about the child's health coverage when a child with a 
42.25 	disability begins to receive services from the district of a type that may be reimbursable, 
42.26 	and shall request, but may not require, updated information after that as needed.
42.27 	(b) For children enrolled in medical assistance under chapter 256B or MinnesotaCare 
42.28 	under chapter 256L who have no other health coverage, a district shall provide an initial 
42.29 	written notice to the enrolled child's parent or legal representative of its intent to seek 
42.30 	reimbursement from medical assistance or MinnesotaCare for the individual education 
42.31 	plan health-related services provided by the district. The notice shall include:
42.32 	(1) the right of the parent or legal representative to request a copy of all records 
42.33 	concerning individualized education program health-related services disclosed by the 
42.34 	district to any third party; 
43.1 	(2) the right of the parent or legal representative to withdraw consent for disclosing a 
43.2 	child's records at any time without consequence, including consent that was initially 
43.3 	given as part of the application process for MinnesotaCare or medical assistance under 
43.4 	section 256B.08, subdivision 1; and
43.5 	(3) a decision to revoke consent for schools to share information from education 
43.6 	records does not impact a parent's eligibility for MinnesotaCare or medical assistance.
43.7 	(c) The district shall give the parent or legal representative annual written notice of:
43.8 	(1) the district's intent to seek reimbursement from medical assistance or 
43.9 	MinnesotaCare for individual education plan health-related services provided by the 
43.10 	district;
43.11 	(2) the right of the parent or legal representative to request a copy of all records 
43.12 	concerning individual education plan health-related services disclosed by the district to 
43.13 	any third party; and
43.14 	(3) the right of the parent or legal representative to withdraw consent for disclosure 
43.15 	of a child's records at any time without consequence, including consent that was initially 
43.16 	given as part of the application process for MinnesotaCare or medical assistance under 
43.17 	section 256B.08, subdivision 1.
43.18 	The written notice shall be provided as part of the written notice required by Code of 
43.19 	Federal Regulations, title 34, section 300.504.  
43.20 	(d) In order to access the private health care coverage of a child who is covered by 
43.21 	private health care coverage in whole or in part, a district must:
43.22 	(1) obtain annual written informed consent from the parent or legal representative, in 
43.23 	compliance with subdivision 5; and
43.24 	(2) inform the parent or legal representative that a refusal to permit the district 
43.25 	or state Medicaid agency to access their private health care coverage does not relieve 
43.26 	the district of its responsibility to provide all services necessary to provide free and 
43.27 	appropriate public education at no cost to the parent or legal representative.
43.28 	(e) If the commissioner of human services obtains federal approval to exempt 
43.29 	covered individual education plan health-related services from the requirement that private 
43.30 	health care coverage refuse payment before medical assistance may be billed, paragraphs 
43.31 	(b), (c), and (d) shall also apply to students with a combination of private health care 
43.32 	coverage and health care coverage through medical assistance or MinnesotaCare.
43.33 	(f) In the event that Congress or any federal agency or the Minnesota legislature 
43.34 	or any state agency establishes lifetime limits, limits for any health care services, 
43.35 	cost-sharing provisions, or otherwise provides that individual education plan health-related 
43.36 	services impact benefits for persons enrolled in medical assistance or MinnesotaCare, the 
44.1 	amendments to this subdivision adopted in 2002 are repealed on the effective date of any 
44.2 	federal or state law or regulation that imposes the limits. In that event, districts must 
44.3 	obtain informed consent consistent with this subdivision as it existed prior to the 2002 
44.4 	amendments and subdivision 5, before seeking reimbursement for children enrolled in 
44.5 	medical assistance under chapter 256B or MinnesotaCare under chapter 256L who have 
44.6 	no other health care coverage.

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

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

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

44.32 	Sec. 8. Minnesota Statutes 2008, section 125A.21, subdivision 7, is amended to read:
45.1 		Subd. 7.District disclosure of information. A school district may disclose 
45.2 	information contained in a student's individual education plan, consistent with section 
45.3 	13.32, subdivision 3, paragraph (a), and Code of Federal Regulations, title 34, part 99;
45.4 	including records of the student's diagnosis and treatment, to a health plan company only 
45.5 	with the signed and dated consent of the student's parent, or other legally authorized 
45.6 	individual. The school district shall disclose only that information necessary for the health 
45.7 	plan company to decide matters of coverage and payment. A health plan company may 
45.8 	use the information only for making decisions regarding coverage and payment, and for 
45.9 	any other use permitted by law.  

45.10 	Sec. 9. Minnesota Statutes 2009 Supplement, section 125A.63, subdivision 2, is 
45.11 	amended to read:
45.12 		Subd. 2.Programs. The Department of Education, through the resource centers 
45.13 	must offer summer institutes or other training programs and other educational strategies
45.14 	throughout the state for deaf or hard-of-hearing, blind or visually impaired, and multiply 
45.15 	disabled pupils. The resource centers must also offer workshops for teachers, and 
45.16 	leadership development for teachers.
45.17 	A program offered through the resource centers must promote and develop education 
45.18 	programs offered by school districts or other organizations. The program must assist 
45.19 	school districts or other organizations to develop innovative programs.

45.20 	Sec. 10. Minnesota Statutes 2009 Supplement, section 125A.63, subdivision 4, is 
45.21 	amended to read:
45.22 		Subd. 4.Advisory committees. (a) The commissioner shall establish an 
45.23 	advisory committee for each resource center. The advisory committees shall develop 
45.24 	recommendations regarding the resource centers and submit an annual report to the 
45.25 	commissioner on the form and in the manner prescribed by the commissioner.
45.26 	(b) The advisory committee for the Resource Center for the Deaf and Hard of 
45.27 	Hearing shall meet periodically at least four times per year and submit an annual report 
45.28 	to the commissioner, the education policy and finance committees of the legislature, 
45.29 	and the Commission of Deaf, DeafBlind, and Hard of Hearing Minnesotans. The report 
45.30 	must, at least:
45.31 	(1) identify and report the aggregate, data-based education outcomes for children 
45.32 	with the primary disability classification of deaf and hard of hearing, consistent with 
45.33 	the commissioner's child count reporting practices, the commissioner's state and local 
45.34 	outcome data reporting system by district and region, and the school performance report 
46.1 	cards under section 120B.36, subdivision 1, and relevant IDEA Parts B and C mandated 
46.2 	reporting data; and
46.3 	(2) describe the implementation of a data-based plan for improving the education 
46.4 	outcomes of deaf and hard of hearing children that is premised on evidence-based best 
46.5 	practices, and provide a cost estimate for ongoing implementation of the plan.; and
46.6 	(3) include the recommendations for improving the developmental outcomes of 
46.7 	children birth to age 3 and the data underlying those recommendations that the coordinator 
46.8 	identifies under subdivision 5.

46.9 	Sec. 11. Minnesota Statutes 2009 Supplement, section 125A.63, subdivision 5, is 
46.10 	amended to read:
46.11 		Subd. 5.Statewide hearing loss early education intervention coordinator. (a) 
46.12 	The coordinator shall:
46.13 	(1) collaborate with the early hearing detection and intervention coordinator for the 
46.14 	Department of Health, the director of the Department of Education Resource Center for 
46.15 	Deaf and Hard-of-Hearing, and the Department of Health Early Hearing Detection and 
46.16 	Intervention Advisory Council;
46.17 	(2) coordinate and support Department of Education early hearing detection and 
46.18 	intervention teams;
46.19 	(3) leverage resources by serving as a liaison between interagency early intervention 
46.20 	committees; part C coordinators from the Departments of Education, Health, and 
46.21 	Human Services; Department of Education regional low-incidence facilitators; service 
46.22 	coordinators from school districts; Minnesota children with special health needs in the 
46.23 	Department of Health; public health nurses; child find; Department of Human Services 
46.24 	Deaf and Hard-of-Hearing Services Division; and others as appropriate;
46.25 	(4) identify, support, and promote culturally appropriate and evidence-based early 
46.26 	intervention practices for infants with hearing loss, and provide training, outreach, and use 
46.27 	of technology to increase consistency in statewide service provision;
46.28 	(5) identify culturally appropriate specialized reliable and valid instruments to assess 
46.29 	and track the progress of children with hearing loss and promote their use;
46.30 	(6) ensure that early childhood providers, parents, and members of the individual 
46.31 	family service and intervention plan are provided with child progress data resulting from 
46.32 	specialized assessments;
46.33 	(7) educate early childhood providers and teachers of the deaf and hard-of-hearing 
46.34 	to use developmental data from specialized assessments to plan and adjust individual 
46.35 	family service plans; and
47.1 	(8) make recommendations that would improve educational outcomes to the early 
47.2 	hearing detection and intervention committee, the commissioners of education and health, 
47.3 	the Commission of Deaf, DeafBlind and Hard-of-Hearing Minnesotans, and the advisory 
47.4 	council of the Minnesota Department of Education Resource Center for the Deaf and 
47.5 	Hard-of-Hearing.
47.6 	(b) The Department of Education must provide aggregate data regarding outcomes 
47.7 	of deaf and hard-of-hearing children with hearing loss who receive early intervention 
47.8 	services within the state in accordance with the state performance plan.

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

47.10 	Sec. 12. Minnesota Statutes 2008, section 125A.69, subdivision 1, is amended to read:
47.11 		Subdivision 1.Two kinds Admissions. There are two kinds of Admission to the 
47.12 	Minnesota State Academies is described in this section.
47.13 	(a) A pupil who is deaf, hard of hearing, or blind-deaf, may be admitted to the 
47.14 	Academy for the Deaf. A pupil who is blind or visually impaired, blind-deaf, or multiply 
47.15 	disabled may be admitted to the Academy for the Blind. For a pupil to be admitted, two 
47.16 	decisions must be made under sections 125A.03 to 125A.24 and 125A.65. 
47.17 	(1) It must be decided by the individual education planning team that education in 
47.18 	regular or special education classes in the pupil's district of residence cannot be achieved 
47.19 	satisfactorily because of the nature and severity of the deafness or blindness or visual 
47.20 	impairment respectively.
47.21 	(2) It must be decided by the individual education planning team that the academy 
47.22 	provides the most appropriate placement within the least restrictive alternative for the 
47.23 	pupil.
47.24 	(b) A deaf or hard of hearing child or a visually impaired pupil may be admitted to 
47.25 	get socialization skills or on a short-term basis for skills development.
47.26 	(c) A parent of a child who resides in Minnesota and who meets the disability criteria 
47.27 	for being deaf or hard-of-hearing, blind or visually impaired, or multiply disabled may 
47.28 	apply to place the child in the Minnesota State Academies. Academy staff must review 
47.29 	the application to determine whether the Minnesota State Academies is an appropriate 
47.30 	placement for the child. If academy staff determine that the Minnesota State Academies 
47.31 	is an appropriate placement, the staff must invite the individualized education program 
47.32 	team at the child's resident school district to participate in a meeting to arrange a trial 
47.33 	placement of between 60 and 90 calendar days at the Minnesota State Academies. If 
47.34 	the child's parent consents to the trial placement, the Minnesota State Academies is the 
47.35 	responsible serving school district and incur all due process obligations under law and the 
48.1 	child's resident school district is responsible for any transportation included in the child's 
48.2 	individualized education program during the trial placement. Before the trial placement 
48.3 	ends, academy staff must convene an individualized education program team meeting to 
48.4 	determine whether to continue the child's placement at the Minnesota State Academies or 
48.5 	that another placement is appropriate. If the individualized education program team and 
48.6 	the parent are unable to agree on the child's placement, the child's placement reverts to the 
48.7 	placement in the child's individualized education program that immediately preceded the 
48.8 	trial placement. If the parent and individualized education program team agree to continue 
48.9 	the placement beyond the trial period, the transportation and due process responsibilities 
48.10 	are the same as those described for the trial placement under this paragraph.

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

48.13 	Sec. 13. Laws 2009, chapter 79, article 5, section 60, is amended to read:
48.14 	Sec. 60. Minnesota Statutes 2008, section 256L.05, is amended by adding a 
48.15 	subdivision to read:
48.16 		Subd. 1c.Open enrollment and streamlined application and enrollment 
48.17 	process. (a) The commissioner and local agencies working in partnership must develop a 
48.18 	streamlined and efficient application and enrollment process for medical assistance and 
48.19 	MinnesotaCare enrollees that meets the criteria specified in this subdivision.
48.20 	(b) The commissioners of human services and education shall provide 
48.21 	recommendations to the legislature by January 15, 2010, on the creation of an open 
48.22 	enrollment process for medical assistance and MinnesotaCare that is coordinated with 
48.23 	the public education system. The recommendations must:
48.24 	(1) be developed in consultation with medical assistance and MinnesotaCare 
48.25 	enrollees and representatives from organizations that advocate on behalf of children and 
48.26 	families, low-income persons and minority populations, counties, school administrators 
48.27 	and nurses, health plans, and health care providers;
48.28 	(2) be based on enrollment and renewal procedures best practices, including express 
48.29 	lane eligibility as required under subdivision 1d;
48.30 	(3) simplify the enrollment and renewal processes wherever possible; and
48.31 	(4) establish a process:
48.32 	(i) to disseminate information on medical assistance and MinnesotaCare to all 
48.33 	children in the public education system, including prekindergarten programs; and
48.34 	(ii) for the commissioner of human services to enroll children and other household 
48.35 	members who are eligible.
49.1 	The commissioner of human services in coordination with the commissioner of 
49.2 	education shall implement an open enrollment process by August 1, 2010, to be effective 
49.3 	beginning with the 2010-2011 school year.
49.4 	(c) The commissioner and local agencies shall develop an online application process 
49.5 	for medical assistance and MinnesotaCare.
49.6 	(d) The commissioner shall develop an application that is easily understandable 
49.7 	and does not exceed four pages in length.
49.8 	(e) The commissioner of human services shall present to the legislature, by January 
49.9 	15, 2010, an implementation plan for the open enrollment period and online application 
49.10 	process.
49.11 	(f) To ensure parity between all providers of medical services in the ability to seek 
49.12 	reimbursement from MinnesotaCare or medical assistance, the commissioner of human 
49.13 	services, in consultation with the commissioner of education, shall include on new or 
49.14 	revised enrollment forms consent authorization language for all providers of medical 
49.15 	services to the parent's child or children, including schools, by incorporating language on 
49.16 	the enrollment form that is consistent with federal data practices laws requiring consent 
49.17 	before a school may release information from individual educational records. The consent 
49.18 	language shall include a statement that the medical services providers may share with the 
49.19 	commissioner of human services medical or other information in the possession of the 
49.20 	provider that is necessary for the provider to be reimbursed by MinnesotaCare or medical 
49.21 	assistance. The consent language also shall state that information may be shared from 
49.22 	a child's individual educational records and that the parent may revoke the consent for 
49.23 	schools to share information from educational records at any time. The commissioner 
49.24 	shall include substantially similar consent authorization language on each of its other 
49.25 	enrollment forms as they are scheduled for review, revision, or replacement.

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

49.28 	Sec. 14. THIRD-PARTY BILLING.
 49.29 	To allow the cost effective billing of medical assistance for covered services that 
49.30 	are not reimbursed by other legally liable third parties, the commissioner of human 
49.31 	services must:
49.32 	(1) summarize and document school district efforts to secure reimbursement from 
49.33 	legally liable third parties; and
49.34 	(2) request permission from the Centers for Medicare and Medicaid Services to 
49.35 	allow school districts to bill Medicaid alone, without first billing private payers, when:
50.1 	(i) a child has both public and private coverage; and
50.2 	(ii) documentation demonstrates that the private payer involved does not reimburse 
50.3 	for individualized education program health-related services.

50.4 	Sec. 15. REVISOR'S INSTRUCTION.
 50.5 	The revisor of statutes shall substitute the term "individualized education program" 
50.6 	or similar terms for "individual education plan" or similar terms wherever they appear 
50.7 	in Minnesota Statutes and Minnesota Rules referring to the requirements relating to 
50.8 	the federal Individuals with Disabilities Education Act. The revisor shall also make 
50.9 	grammatical changes related to the changes in terms.

50.10 	Sec. 16.  REPEALER.
 50.11 	Minnesota Statutes 2008, section 125A.54, is repealed.

50.12 	ARTICLE 4
50.13 	FACILITIES AND TECHNOLOGY

50.14 	Section 1. Minnesota Statutes 2008, section 123B.57, as amended by Laws 2009 
50.15 	chapter 96, article 4, section 2, is amended to read:
50.16 	123B.57 CAPITAL EXPENDITURE; HEALTH AND SAFETY.
50.17 		Subdivision 1.Health and safety program revenue application. (a) To receive 
50.18 	health and safety revenue for any fiscal year a district must submit to the commissioner 
50.19 	an a capital expenditure health and safety revenue application for aid and levy by the 
50.20 	date determined by the commissioner. The application may be for hazardous substance 
50.21 	removal, fire and life safety code repairs, labor and industry regulated facility and 
50.22 	equipment violations, and health, safety, and environmental management, including 
50.23 	indoor air quality management. The application must include a health and safety program
50.24 	budget adopted and confirmed by the school district board as being consistent with the 
50.25 	district's health and safety policy under subdivision 2. The program budget must include 
50.26 	the estimated cost, per building, of the program per Uniform Financial Accounting and 
50.27 	Reporting Standards (UFARS) finance code, by fiscal year. Upon approval through the 
50.28 	adoption of a resolution by each of an intermediate district's member school district 
50.29 	boards and the approval of the Department of Education, a school district may include 
50.30 	its proportionate share of the costs of health and safety projects for an intermediate 
50.31 	district in its application.
51.1 	(b) Health and safety projects with an estimated cost of $500,000 or more per 
51.2 	site are not eligible for health and safety revenue. Health and safety projects with an 
51.3 	estimated cost of $500,000 or more per site that meet all other requirements for health and 
51.4 	safety funding, are eligible for alternative facilities bonding and levy revenue according 
51.5 	to section 123B.59. A school board shall not separate portions of a single project into 
51.6 	components to qualify for health and safety revenue, and shall not combine unrelated 
51.7 	projects into a single project to qualify for alternative facilities bonding and levy revenue.
51.8 	(c) The commissioner of education shall not make eligibility for health and safety 
51.9 	revenue contingent on a district's compliance status, level of program development, or 
51.10 	training. The commissioner shall not mandate additional performance criteria such as 
51.11 	training, certifications, or compliance evaluations as a prerequisite for levy approval.
51.12 		Subd. 2.Contents of program Health and safety policy. To qualify for health 
51.13 	and safety revenue, a district school board must adopt a health and safety program policy. 
51.14 	The program policy must include plans, where applicable, for hazardous substance 
51.15 	removal, fire and life safety code repairs, regulated facility and equipment violations, 
51.16 	and provisions for implementing a health and safety program that complies with health, 
51.17 	safety, and environmental management, regulations and best practices including indoor 
51.18 	air quality management.
51.19 	(a) A hazardous substance plan must contain provisions for the removal or 
51.20 	encapsulation of asbestos from school buildings or property, asbestos-related repairs, 
51.21 	cleanup and disposal of polychlorinated biphenyls found in school buildings or property, 
51.22 	and cleanup, removal, disposal, and repairs related to storing heating fuel or transportation 
51.23 	fuels such as alcohol, gasoline, fuel, oil, and special fuel, as defined in section 296A.01. 
51.24 	If a district has already developed a plan for the removal or encapsulation of asbestos as 
51.25 	required by the federal Asbestos Hazard Emergency Response Act of 1986, the district 
51.26 	may use a summary of that plan, which includes a description and schedule of response 
51.27 	actions, for purposes of this section. The plan must also contain provisions to make 
51.28 	modifications to existing facilities and equipment necessary to limit personal exposure 
51.29 	to hazardous substances, as regulated by the federal Occupational Safety and Health 
51.30 	Administration under Code of Federal Regulations, title 29, part 1910, subpart Z; or is 
51.31 	determined by the commissioner to present a significant risk to district staff or student 
51.32 	health and safety as a result of foreseeable use, handling, accidental spill, exposure, or 
51.33 	contamination. 
51.34 	(b) A fire and life safety plan must contain a description of the current fire and life 
51.35 	safety code violations, a plan for the removal or repair of the fire and life safety hazard, 
52.1 	and a description of safety preparation and awareness procedures to be followed until the 
52.2 	hazard is fully corrected.
52.3 	(c) A facilities and equipment violation plan must contain provisions to correct 
52.4 	health and safety hazards as provided in Department of Labor and Industry standards 
52.5 	pursuant to section 182.655. 
52.6 	(d) A health, safety, and environmental management plan must contain a description 
52.7 	of training, record keeping, hazard assessment, and program management as defined 
52.8 	in section 123B.56. 
52.9 	(e) A plan to test for and mitigate radon produced hazards.
52.10 	(f) A plan to monitor and improve indoor air quality.
52.11 		Subd. 3.Health and safety revenue. A district's health and safety revenue 
52.12 	for a fiscal year equals the district's alternative facilities levy under section 123B.59, 
52.13 	subdivision 5, paragraph (b), plus the greater of zero or:
52.14 	(1) the sum of (a) the total approved cost of the district's hazardous substance 
52.15 	plan for fiscal years 1985 through 1989, plus (b) the total approved cost of the district's 
52.16 	health and safety program for fiscal year 1990 through the fiscal year to which the levy 
52.17 	is attributable, excluding expenditures funded with bonds issued under section 123B.59 
52.18 	or 123B.62, or chapter 475; certificates of indebtedness or capital notes under section 
52.19 	123B.61; levies under section 123B.58, 123B.59, 123B.63, or 126C.40, subdivision 1 or 
52.20 	6; and other federal, state, or local revenues, minus 
52.21 	(2) the sum of (a) the district's total hazardous substance aid and levy for fiscal years 
52.22 	1985 through 1989 under sections 124.245 and 275.125, subdivision 11c, plus (b) the 
52.23 	district's health and safety revenue under this subdivision, for years before the fiscal year 
52.24 	to which the levy is attributable. 
52.25 		Subd. 4.Health and safety levy. To receive health and safety revenue, a district 
52.26 	may levy an amount equal to the district's health and safety revenue as defined in 
52.27 	subdivision 3 multiplied by the lesser of one, or the ratio of the quotient derived by 
52.28 	dividing the adjusted net tax capacity of the district for the year preceding the year the 
52.29 	levy is certified by the adjusted marginal cost pupil units in the district for the school year 
52.30 	to which the levy is attributable, to $2,935.
52.31 		Subd. 5.Health and safety aid. A district's health and safety aid is the difference 
52.32 	between its health and safety revenue and its health and safety levy. If a district does not 
52.33 	levy the entire amount permitted, health and safety aid must be reduced in proportion to 
52.34 	the actual amount levied. Health and safety aid may not be reduced as a result of reducing 
52.35 	a district's health and safety levy according to section 123B.79. 
53.1 		Subd. 6.Uses of health and safety revenue. (a) Health and safety revenue may 
53.2 	be used only for approved expenditures necessary to correct fire and life safety hazards, 
53.3 	or for the; design, purchase, installation, maintenance, and inspection of fire protection 
53.4 	and alarm equipment; purchase or construction of appropriate facilities for the storage of 
53.5 	combustible and flammable materials; inventories and facility modifications not related 
53.6 	to a remodeling project to comply with lab safety requirements under section 121A.31; 
53.7 	inspection, testing, repair, removal or encapsulation, and disposal of asbestos from school 
53.8 	buildings or property owned or being acquired by the district, asbestos-related repairs,
53.9 	asbestos-containing building materials; cleanup and disposal of polychlorinated biphenyls 
53.10 	found in school buildings or property owned or being acquired by the district, or the; 
53.11 	cleanup and disposal of hazardous and infectious wastes; cleanup, removal, disposal, and 
53.12 	repairs related to storing heating fuel or transportation fuels such as alcohol, gasoline, fuel 
53.13 	oil, and special fuel, as defined in section 296A.01, Minnesota; correction of occupational 
53.14 	safety and health administration regulated facility and equipment hazards,; indoor air 
53.15 	quality inspections, investigations, and testing; mold abatement,; upgrades or replacement 
53.16 	of mechanical ventilation systems to meet American Society of Heating, Refrigerating 
53.17 	and Air Conditioning Engineers standards and State Mechanical Code,; design, materials, 
53.18 	and installation of local exhaust ventilation systems, including required make up air for 
53.19 	controlling regulated hazardous substances; correction of Department of Health Food 
53.20 	Code and violations; correction of swimming pool hazards excluding depth correction,; 
53.21 	playground safety inspections and the installation of impact surfacing materials; bleacher 
53.22 	repair or rebuilding to comply with the order of a building code inspector under section 
53.23 	326B.112; testing and mitigation of elevated radon hazards; lead in water, paint, soil, 
53.24 	and toys testing; copper in water testing; cleanup after major weather-related disasters 
53.25 	or flooding; reduction of excessive organic and inorganic levels in wells and well 
53.26 	capping of abandoned wells; installation and testing of boiler backflow valves to prevent 
53.27 	contamination of potable water; vaccinations, titers, and preventative supplies for 
53.28 	bloodborne pathogen compliance; costs to comply with the Janet B. Johnson Parents' 
53.29 	Right To Know Act; and health, safety, and environmental management costs associated 
53.30 	with implementing the district's health and safety program including costs to establish 
53.31 	and operate safety committees, in school buildings or property owned or being acquired 
53.32 	by the district. Testing and calibration activities are permitted for existing mechanical 
53.33 	ventilation systems at intervals no less than every five years. Health and safety revenue 
53.34 	must not be used to finance a lease purchase agreement, installment purchase agreement, 
53.35 	or other deferred payments agreement. Health and safety revenue must not be used for 
53.36 	the construction of new facilities or the purchase of portable classrooms, for interest or 
54.1 	other financing expenses, or for energy efficiency projects under section 123B.65. The 
54.2 	revenue may not be used for a building or property or part of a building or property used 
54.3 	for postsecondary instruction or administration or for a purpose unrelated to elementary 
54.4 	and secondary education.
54.5 		Subd. 6a.Restrictions on health and safety revenue. (b) Notwithstanding 
54.6 	paragraph (a) subdivision 6, health and safety revenue must not be used to finance a 
54.7 	lease purchase agreement, installment purchase agreement, or other deferred payments 
54.8 	agreement, for the construction of new facilities, remodeling of existing facilities, or 
54.9 	the purchase of portable classrooms, for interest or other financing expenses, or for 
54.10 	energy efficiency projects under section 123B.65, for a building or property or part of a 
54.11 	building or property used for postsecondary instruction or administration or for a purpose 
54.12 	unrelated to elementary and secondary education, for replacement of building materials 
54.13 	or facilities including roof, walls, windows, internal fixtures and flooring, nonhealth and 
54.14 	safety costs associated with demolition of facilities, structural repair or replacement of 
54.15 	facilities due to unsafe conditions, violence prevention and facility security, ergonomics, 
54.16 	or for building and heating, ventilating and air conditioning supplies, maintenance, and 
54.17 	cleaning activities. All assessments, investigations, inventories, and support equipment 
54.18 	not leading to the engineering or construction of a project shall be included in the health, 
54.19 	safety, and environmental management costs in subdivision 8, paragraph (a).
54.20 		Subd. 6b.Health and safety projects. (a) Health and safety revenue applications 
54.21 	defined in subdivision 1 must be accompanied by a description of each project for which 
54.22 	funding is being requested. Project descriptions must provide enough detail for an auditor 
54.23 	to determine if the work qualifies for revenue. For projects other than fire and life 
54.24 	safety projects, playground projects, and health, safety, and environmental management 
54.25 	activities, a project description does not need to include itemized details such as material 
54.26 	types, room locations, square feet, names, or license numbers. The commissioner shall 
54.27 	approve only projects that comply with subdivisions 6 and 8, as defined by the Department 
54.28 	of Education.
54.29 	(b) Districts may request funding for allowable projects based on self-assessments, 
54.30 	safety committee recommendations, insurance inspections, management assistance 
54.31 	reports, fire marshal orders, or other mandates. Notwithstanding subdivision 1, paragraph 
54.32 	(b), and subdivision 8, paragraph (b), for projects under $500,000, individual project 
54.33 	size for projects authorized by this subdivision is not limited and may include related 
54.34 	work in multiple facilities. Health and safety management costs from subdivision 8 may 
54.35 	be reported as a single project.
55.1 	(c) All costs directly related to a project shall be reported in the appropriate Uniform 
55.2 	Financial Accounting and Reporting Standards (UFARS) finance code.
55.3 	(d) For fire and life safety egress and all other projects exceeding $20,000, cited 
55.4 	under Minnesota Fire Code, a fire marshal plan review is required.
55.5 	(e) Districts shall update project estimates with actual expenditures for each 
55.6 	fiscal year. If a project's final cost is significantly higher than originally approved, the 
55.7 	commissioner may request additional supporting information.
55.8 		Subd. 6c.Appeals process. In the event a district is denied funding approval for 
55.9 	a project the district believes complies with subdivisions 6 and 8, and is not otherwise 
55.10 	excluded, a district may appeal the decision. All such requests must be in writing. The 
55.11 	commissioner shall respond in writing. A written request must contain the following: 
55.12 	project number; description and amount; reason for denial; unresolved questions for 
55.13 	consideration; reasons for reconsideration; and a specific statement of what action the 
55.14 	district is requesting.
55.15 		Subd. 7.Proration. In the event that the health and safety aid available for any year 
55.16 	is prorated, a district having its aid prorated may levy an additional amount equal to the 
55.17 	amount not paid by the state due to proration.
55.18 		Subd. 8.Health, safety, and environmental management cost. (a) "Health, safety, 
55.19 	and environmental management" is defined in section 123B.56.
55.20 	(b) A district's cost for health, safety, and environmental management is limited to 
55.21 	the lesser of:
55.22 	(1) actual cost to implement their plan; or
55.23 	(2) an amount determined by the commissioner, based on enrollment, building 
55.24 	age, and size.
55.25 	(b) (c) The department may contract with regional service organizations, private 
55.26 	contractors, Minnesota Safety Council, or state agencies to provide management 
55.27 	assistance to school districts for health and safety capital projects. Management assistance 
55.28 	is the development of written programs for the identification, recognition and control of 
55.29 	hazards, and prioritization and scheduling of district health and safety capital projects. 
55.30 	The department commissioner shall not mandate management assistance or exclude 
55.31 	private contractors from the opportunity to provide any health and safety services to 
55.32 	school districts.
55.33 	(c) Notwithstanding paragraph (b), the department may approve revenue, up to 
55.34 	the limit defined in paragraph (a) for districts having an approved health, safety, and 
55.35 	environmental management plan that uses district staff to accomplish coordination and 
55.36 	provided services.

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

56.2 	Sec. 2. Minnesota Statutes 2008, section 126C.40, subdivision 1, is amended to read:
56.3 		Subdivision 1.To lease building or land. (a) When an independent or a special 
56.4 	school district or a group of independent or special school districts finds it economically 
56.5 	advantageous to rent or lease a building or land for any instructional purposes or for 
56.6 	school storage or furniture repair, and it determines that the operating capital revenue 
56.7 	authorized under section 126C.10, subdivision 13, is insufficient for this purpose, it may 
56.8 	apply to the commissioner for permission to make an additional capital expenditure levy 
56.9 	for this purpose. An application for permission to levy under this subdivision must contain 
56.10 	financial justification for the proposed levy, the terms and conditions of the proposed 
56.11 	lease, and a description of the space to be leased and its proposed use.
56.12 	(b) The criteria for approval of applications to levy under this subdivision must 
56.13 	include: the reasonableness of the price, the appropriateness of the space to the proposed 
56.14 	activity, the feasibility of transporting pupils to the leased building or land, conformity 
56.15 	of the lease to the laws and rules of the state of Minnesota, and the appropriateness of 
56.16 	the proposed lease to the space needs and the financial condition of the district. The 
56.17 	commissioner must not authorize a levy under this subdivision in an amount greater than 
56.18 	the cost to the district of renting or leasing a building or land for approved purposes. 
56.19 	The proceeds of this levy must not be used for custodial or other maintenance services. 
56.20 	A district may not levy under this subdivision for the purpose of leasing or renting a 
56.21 	district-owned building or site to itself.
56.22 	(c) For agreements finalized after July 1, 1997, a district may not levy under this 
56.23 	subdivision for the purpose of leasing: (1) a newly constructed building used primarily 
56.24 	for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed 
56.25 	building addition or additions used primarily for regular kindergarten, elementary, or 
56.26 	secondary instruction that contains more than 20 percent of the square footage of the 
56.27 	previously existing building.
56.28 	(d) Notwithstanding paragraph (b), a district may levy under this subdivision for the 
56.29 	purpose of leasing or renting a district-owned building or site to itself only if the amount 
56.30 	is needed by the district to make payments required by a lease purchase agreement, 
56.31 	installment purchase agreement, or other deferred payments agreement authorized by law, 
56.32 	and the levy meets the requirements of paragraph (c). A levy authorized for a district by 
56.33 	the commissioner under this paragraph may be in the amount needed by the district to 
56.34 	make payments required by a lease purchase agreement, installment purchase agreement, 
56.35 	or other deferred payments agreement authorized by law, provided that any agreement 
57.1 	include a provision giving the school districts the right to terminate the agreement 
57.2 	annually without penalty.
57.3 	(e) The total levy under this subdivision for a district for any year must not exceed 
57.4 	$150 times the resident pupil units for the fiscal year to which the levy is attributable.
57.5 	(f) For agreements for which a review and comment have been submitted to the 
57.6 	Department of Education after April 1, 1998, the term "instructional purpose" as used in 
57.7 	this subdivision excludes expenditures on stadiums.
57.8 	(g) The commissioner of education may authorize a school district to exceed the 
57.9 	limit in paragraph (e) if the school district petitions the commissioner for approval. The 
57.10 	commissioner shall grant approval to a school district to exceed the limit in paragraph (e) 
57.11 	for not more than five years if the district meets the following criteria:
57.12 	(1) the school district has been experiencing pupil enrollment growth in the 
57.13 	preceding five years;
57.14 	(2) the purpose of the increased levy is in the long-term public interest;
57.15 	(3) the purpose of the increased levy promotes colocation of government services; 
57.16 	and
57.17 	(4) the purpose of the increased levy is in the long-term interest of the district by 
57.18 	avoiding over construction of school facilities.
57.19 	(h) A school district that is a member of an intermediate school district may include 
57.20 	in its authority under this section the costs associated with leases of administrative and 
57.21 	classroom space for intermediate school district programs. This authority must not exceed 
57.22 	$43 times the adjusted marginal cost pupil units of the member districts. This authority is 
57.23 	in addition to any other authority authorized under this section.
57.24 	(i) In addition to the allowable capital levies in paragraph (a), for taxes payable in 
57.25 	2011 to 2021, a district that is a member of the "Technology and Information Education 
57.26 	Systems" data processing joint board, that finds it economically advantageous to enter 
57.27 	into a lease purchase agreement for to finance improvements to a building for a group of 
57.28 	school districts or special school districts for staff development purposes, may levy for 
57.29 	its portion of lease costs attributed to the district within the total levy limit in paragraph 
57.30 	(e). The total levy authority under this paragraph shall not exceed $632,000 each year.

57.31 	EFFECTIVE DATE. This section is effective for taxes payable in 2011 and later.

57.32 	Sec. 3. Laws 1999, chapter 241, article 4, section 25, is amended to read:
57.33 	Sec. 25. ALTERNATIVE FACILITIES REVENUE PROGRAM.
 57.34 		Subdivision 1.[INDEPENDENT SCHOOL DISTRICT NO. 622, NORTH ST. 
57.35 	PAUL-MAPLEWOOD-OAKDALE.] Independent school district No. 622, North St. 
58.1 	Paul-Maplewood-Oakdale, is eligible for the alternative facilities revenue program under 
58.2 	Minnesota Statutes, section 123B.59, for the purposes of financing school facilities 
58.3 	in the district.
58.4 		Subd. 2.Stillwater. Independent school district No. 834, Stillwater, is eligible for 
58.5 	the alternative facilities revenue program under Minnesota Statutes, section 123B.59, for 
58.6 	the purposes of financing school facilities in the district.
58.7 		Subd. 3.Independent School District No. 284, Wayzata. Independent School 
58.8 	District No. 284, Wayzata, is eligible for the alternative facilities revenue program under 
58.9 	Minnesota Statutes, section 123B.59, for the purposes of financing school facilities 
58.10 	in the district.

58.11 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2013 
58.12 	and later.

58.13 	Sec. 4. HEALTH AND SAFETY POLICY.
 58.14 	Notwithstanding Minnesota Statutes, section 123B.57, subdivision 2, a school board 
58.15 	that has not yet adopted a health and safety policy by September 30, 2010, may submit an 
58.16 	application for health and safety revenue for taxes payable in 2011 in the form and manner 
58.17 	specified by the commissioner of education.

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

58.19 	ARTICLE 5
58.20 	ACCOUNTING

58.21 	Section 1. Minnesota Statutes 2009 Supplement, section 16A.152, subdivision 2, as 
58.22 	amended by Laws 2010, chapter 215, article 11, section 15, is amended to read:
58.23 		Subd. 2.Additional revenues; priority. (a) If on the basis of a forecast of general 
58.24 	fund revenues and expenditures, the commissioner of management and budget determines 
58.25 	that there will be a positive unrestricted budgetary general fund balance at the close of 
58.26 	the biennium, the commissioner of management and budget must allocate money to the 
58.27 	following accounts and purposes in priority order:
58.28 	(1) the cash flow account established in subdivision 1 until that account reaches 
58.29 	$350,000,000;
58.30 	(2) the budget reserve account established in subdivision 1a until that account 
58.31 	reaches $653,000,000;
58.32 	(3) the amount necessary to increase the aid payment schedule for school district 
58.33 	aids and credits payments in section 127A.45 to not more than 90 percent rounded to the 
59.1 	nearest tenth of a percent without exceeding the amount available and with any remaining 
59.2 	funds deposited in the budget reserve;
59.3 	(4) the amount necessary to restore all or a portion of the net aid reductions under 
59.4 	section 127A.441 and to reduce the property tax revenue recognition shift under section 
59.5 	123B.75, subdivision 5, paragraph (b), and Laws 2003, First Special Session chapter 9, 
59.6 	article 5, section 34, as amended by Laws 2003, First Special Session chapter 23, section 
59.7 	20, by the same amount; 
59.8 	(5) to the state airports fund, the amount necessary to restore the amount transferred 
59.9 	from the state airports fund under Laws 2008, chapter 363, article 11, section 3, 
59.10 	subdivision 5; and
59.11 	(6) to the fire safety account in the special revenue fund, the amount necessary to 
59.12 	restore transfers from the account to the general fund made in Laws 2010.
59.13 	(b) The amounts necessary to meet the requirements of this section are appropriated 
59.14 	from the general fund within two weeks after the forecast is released or, in the case of 
59.15 	transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations 
59.16 	schedules otherwise established in statute.
59.17 	(c) The commissioner of management and budget shall certify the total dollar 
59.18 	amount of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of 
59.19 	education. The commissioner of education shall increase the aid payment percentage and 
59.20 	reduce the property tax shift percentage by these amounts and apply those reductions to 
59.21 	the current fiscal year and thereafter.

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

59.23 	Sec. 2. Minnesota Statutes 2008, section 123B.12, is amended to read:
59.24 	123B.12 INSUFFICIENT FUNDS TO PAY ORDERS.
59.25 	(a) In the event that a district or a cooperative unit defined in section 123A.24, 
59.26 	subdivision 2, has insufficient funds to pay its usual lawful current obligations, subject to 
59.27 	section 471.69, the board may enter into agreements with banks or any person to take its 
59.28 	orders. Any order drawn, after having been presented to the treasurer for payment and not 
59.29 	paid for want of funds shall be endorsed by the treasurer by putting on the back thereof 
59.30 	the words "not paid for want of funds," giving the date of endorsement and signed by the 
59.31 	treasurer. A record of such presentment, nonpayment and endorsement shall be made by 
59.32 	the treasurer. The treasurer shall serve a written notice upon the payee or the payee's 
59.33 	assignee, personally, or by mail, when the treasurer is prepared to pay such orders. The 
59.34 	notice may be directed to the payee or the payee's assignee at the address given in writing 
60.1 	by such payee or assignee to such treasurer, at any time prior to the service of such notice. 
60.2 	No order shall draw any interest if such address is not given when the same is unknown to 
60.3 	the treasurer, and no order shall draw any interest after the service of such notice.  
60.4 	(b) A district may enter, subject to section 471.69, into a an unsecured line of credit 
60.5 	agreement with a financial institution. The amount of credit available must not exceed 95
60.6 	380 percent of average expenditure per month of operating expenditures in the previous 
60.7 	fiscal year. Any amount advanced must be repaid no later than 45 120 days after the 
60.8 	day of advancement.

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

60.10 	Sec. 3. Minnesota Statutes 2008, section 127A.42, subdivision 2, is amended to read:
60.11 		Subd. 2.Violations of law. The commissioner may reduce or withhold the district's 
60.12 	state aid for any school year whenever the board of the district authorizes or permits 
60.13 	violations of law within the district by:
60.14 	(1) employing a teacher who does not hold a valid teaching license or permit in a 
60.15 	public school;
60.16 	(2) noncompliance with a mandatory rule of general application promulgated by the 
60.17 	commissioner in accordance with statute, unless special circumstances make enforcement 
60.18 	inequitable, impose an extraordinary hardship on the district, or the rule is contrary to 
60.19 	the district's best interests;
60.20 	(3) the district's continued performance of a contract made for the rental of rooms 
60.21 	or buildings for school purposes or for the rental of any facility owned or operated by or 
60.22 	under the direction of any private organization, if the contract has been disapproved, the 
60.23 	time for review of the determination of disapproval has expired, and no proceeding for 
60.24 	review is pending;
60.25 	(4) any practice which is a violation of sections 1 and 2 of article 13 of the 
60.26 	Constitution of the state of Minnesota;
60.27 	(5) failure to reasonably provide for a resident pupil's school attendance under 
60.28 	Minnesota Statutes;
60.29 	(6) noncompliance with state laws prohibiting discrimination because of race, 
60.30 	color, creed, religion, national origin, sex, age, marital status, status with regard to 
60.31 	public assistance or disability, as defined in sections 363A.08 to 363A.19 and 363A.28, 
60.32 	subdivision 10; or 
60.33 	(7) using funds contrary to the statutory purpose of the funds.
61.1 	The reduction or withholding must be made in the amount and upon the procedure 
61.2 	provided in this section, or, in the case of the violation stated in clause (1), upon the 
61.3 	procedure provided in section 127A.43.

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

61.5 	Sec. 4. Minnesota Statutes 2008, section 127A.43, is amended to read:
61.6 	127A.43 DISTRICT EMPLOYMENT OF UNLICENSED TEACHERS; AID 
61.7 	REDUCTION.
61.8 	When a district employs one or more teachers who do not hold a valid teaching 
61.9 	license, state aid shall be withheld reduced in the proportion that the number of such 
61.10 	teachers is to the total number of teachers employed by the district, multiplied by 60 
61.11 	percent of the basic revenue, as defined in section 126C.10, subdivision 2, of the district 
61.12 	for the year in which the employment occurred.  

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

61.14 	Sec. 5. Minnesota Statutes 2008, section 127A.45, is amended by adding a subdivision 
61.15 	to read:
61.16 		Subd. 17.Payment to creditors. Except where otherwise specifically authorized, 
61.17 	state education aid payments shall be made only to the school district, charter school, or 
61.18 	other education organization earning state aid revenues as a result of providing education 
61.19 	services.

61.20 	Sec. 6. FUND TRANSFERS.
 61.21 		Subdivision 1.Aitkin. Notwithstanding Minnesota Statutes, sections 123B.79; 
61.22 	123B.80; and 475.61, subdivision 4, on June 30, 2010, Independent School District No. 
61.23 	1, Aitkin, may permanently transfer up to $70,000 from its debt redemption fund to its 
61.24 	undesignated general fund balance without making a levy reduction.
61.25 		Subd. 2.Anoka-Hennepin. Notwithstanding Minnesota Statutes, sections 123B.79, 
61.26 	123B.80, and 475.61, subdivision 4, on June 30, 2010, Independent School District No. 
61.27 	11, Anoka-Hennepin, may permanently transfer up to $400,000 from its debt redemption 
61.28 	fund to its undesignated general fund balance without making a levy reduction.
61.29 		Subd. 3.Elk River. Notwithstanding Minnesota Statutes, sections 123B.79, 
61.30 	123B.80, and 475.61, subdivision 4, on June 30, 2010, Independent School District No. 
61.31 	728, Elk River, may permanently transfer up to $500,000 from its debt redemption fund to 
61.32 	its undesignated general fund balance without making a levy reduction.
62.1 		Subd. 4.Hayfield. Notwithstanding Minnesota Statutes, section 123B.79 or 
62.2 	123B.80, on June 30, 2010, Independent School District No. 203, Hayfield, may 
62.3 	permanently transfer up to $75,000 from its reserved for operating capital account to its 
62.4 	undesignated general fund balance without making a levy reduction.
62.5 		Subd. 5.Kenyon-Wanamingo. Notwithstanding Minnesota Statutes, sections 
62.6 	123B.79, 123B.80, and 475.61, subdivision 4, on June 30, 2010, Independent School 
62.7 	District No. 2172, Kenyon-Wanamingo, may permanently transfer up to $55,000 from 
62.8 	its debt redemption fund to its undesignated general fund balance without making a levy 
62.9 	reduction.
62.10 		Subd. 6.Madelia. Notwithstanding Minnesota Statutes, sections 123B.79, 123B.80, 
62.11 	and 475.61, subdivision 4, on June 30, 2010, Independent School District No. 837, 
62.12 	Madelia, may permanently transfer up to $350,000 from its debt redemption fund to its 
62.13 	reserved for operating capital account without making a levy reduction.
62.14 		Subd. 7.Rochester. Notwithstanding Minnesota Statutes, sections 123B.79, 
62.15 	123B.80, and 475.61, subdivision 4, on June 30, 2010, Independent School District No. 
62.16 	535, Rochester,  may permanently transfer up to $400,000 from its debt redemption fund to 
62.17 	its undesignated general fund balance without making a levy reduction.
62.18 		Subd. 8.St. Louis Park. Notwithstanding Minnesota Statutes, sections 123B.79, 
62.19 	123B.80, and 475.61, subdivision 4, on June 30, 2010, Independent School District 
62.20 	No. 283, St. Louis Park, may permanently transfer up to $225,000 from its reserved 
62.21 	for operating capital account to its undesignated general fund balance without making 
62.22 	a levy reduction. Any funds transferred under this subdivision must be used to pay for 
62.23 	the costs directly associated with closing the Cedar Manor Elementary School, including 
62.24 	moving and storage costs.

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

62.26 	ARTICLE 6
62.27 	STATE AGENCIES

62.28 	Section 1. DEPARTMENT OF EDUCATION; APPROPRIATIONS.
 62.29 	$24,000 in fiscal year 2010 and $23,000 in fiscal year 2011 are transferred from the 
62.30 	department's special revenue fund to the general fund.

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

62.32 	Sec. 2. PERPICH CENTER FOR ARTS EDUCATION; APPROPRIATION.
 63.1 	$19,000 in fiscal year 2010 and $11,000 in fiscal year 2011 are transferred from the 
63.2 	Perpich Center's special revenue fund to the general fund.

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