1.1 	A bill for an act
1.2 	relating to education; providing for policy for prekindergarten through grade 12 
1.3 	education, including general education, education excellence, special programs, 
1.4 	facilities and technology, student transportation, and early childhood education;
1.5 	amending Minnesota Statutes 2010, sections 11A.16, subdivision 5; 13.32, 
1.6 	subdivision 6; 119A.50, subdivision 3; 120A.22, subdivision 11; 120A.24; 
1.7 	120A.40; 120B.023, subdivision 2; 120B.11; 120B.12; 120B.30, subdivisions 1, 
1.8 	3, 4; 120B.31, subdivision 4; 120B.36, subdivisions 1, 2; 121A.15, subdivision 8; 
1.9 	121A.17, subdivision 3; 122A.14, subdivision 3; 122A.16, as amended; 122A.40, 
1.10 	subdivisions 5, 11, by adding a subdivision; 122A.41, subdivisions 1, 2, 5a, 10, 
1.11 	14; 123B.143, subdivision 1; 123B.147, subdivision 3; 123B.41, subdivisions 
1.12 	2, 5; 123B.57; 123B.63, subdivision 3; 123B.71, subdivision 5; 123B.72, 
1.13 	subdivision 3; 123B.75, subdivision 5; 123B.88, subdivision 13, by adding a 
1.14 	subdivision; 123B.90, subdivision 3; 123B.92, subdivisions 1, 5; 124D.091, 
1.15 	subdivision 2; 124D.10; 124D.11, subdivision 9; 124D.19, subdivision 3; 
1.16 	124D.36; 124D.37; 124D.38, subdivision 3; 124D.385, subdivision 3; 124D.39; 
1.17 	124D.40; 124D.42, subdivisions 6, 8; 124D.44; 124D.45, subdivision 2; 
1.18 	124D.52, subdivision 7; 125A.02, subdivision 1; 125A.0942, subdivision 3; 
1.19 	125A.15; 125A.51; 125A.79, subdivision 1; 126C.10, subdivision 8a; 126C.15, 
1.20 	subdivision 2; 126C.41, subdivision 2; 127A.30, subdivision 1; 127A.42, 
1.21 	subdivision 2; 127A.43; 127A.45, by adding a subdivision; 171.05, subdivision 
1.22 	2; 171.17, subdivision 1; 171.22, subdivision 1; Laws 2011, chapter 5, section 
1.23 	1; repealing Minnesota Statutes 2010, sections 120A.26, subdivisions 1, 2; 
1.24 	124D.38, subdivisions 4, 5, 6; 125A.54; 126C.457.
1.25 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.26 	ARTICLE 1
1.27 	GENERAL EDUCATION

1.28 	Section 1. Minnesota Statutes 2010, section 11A.16, subdivision 5, is amended to read:
1.29 		Subd. 5.Calculation of income. As of the end of each fiscal year, the state 
1.30 	board shall calculate the investment income earned by the permanent school fund. The 
1.31 	investment income earned by the fund shall equal the amount of interest on debt securities 
2.1 	and, dividends on equity securities, and interest earned on certified monthly earnings prior 
2.2 	to the transfer to the Department of Education. Gains and losses arising from the sale of 
2.3 	securities shall be apportioned as follows:
2.4 	(a) If the sale of securities results in a net gain during a fiscal year, the gain shall 
2.5 	be apportioned in equal installments over the next ten fiscal years to offset net losses in 
2.6 	those years. If any portion of an installment is not needed to recover subsequent losses 
2.7 	identified in paragraph (b) it shall be added to the principal of the fund.
2.8 	(b) If the sale of securities results in a net loss during a fiscal year, the net loss shall 
2.9 	be recovered first from the gains in paragraph (a) apportioned to that fiscal year. If these 
2.10 	gains are insufficient, any remaining net loss shall be recovered from interest and dividend 
2.11 	income in equal installments over the following ten fiscal years.

2.12 	Sec. 2. Minnesota Statutes 2010, section 123B.41, subdivision 2, is amended to read:
2.13 		Subd. 2.Textbook. "Textbook" means any book or book substitute, including 
2.14 	electronic books as well as other printed materials delivered electronically, which a 
2.15 	pupil uses as a text or text substitute in a particular class or program in the school 
2.16 	regularly attended and a copy of which is expected to be available for the individual use 
2.17 	of each pupil in this class or program. The term shall be limited to books, workbooks, 
2.18 	or manuals, whether bound or in loose-leaf form, as well as electronic books and other 
2.19 	printed materials delivered electronically, intended for use as a principal source of study 
2.20 	material for a given class or a group of students. The term includes only such secular, 
2.21 	neutral and nonideological textbooks as are available, used by, or of benefit to Minnesota 
2.22 	public school pupils.

2.23 	Sec. 3. Minnesota Statutes 2010, section 123B.41, subdivision 5, is amended to read:
2.24 		Subd. 5.Individualized instructional or cooperative learning materials.
 2.25 	"Individualized instructional or cooperative learning materials" means educational 
2.26 	materials which:
2.27 	(a) are designed primarily for individual pupil use or use by pupils in a cooperative 
2.28 	learning group in a particular class or program in the school the pupil regularly attends;
2.29 	(b) are secular, neutral, nonideological and not capable of diversion for religious 
2.30 	use; and
2.31 	(c) are available, used by, or of benefit to Minnesota public school pupils.
2.32 	Subject to the requirements in clauses (a), (b), and (c), "individualized instructional 
2.33 	or cooperative learning materials" include, but are not limited to, the following if they 
2.34 	do not fall within the definition of "textbook" in subdivision 2: published materials; 
3.1 	periodicals; documents; pamphlets; photographs; reproductions; pictorial or graphic 
3.2 	works; prerecorded video programs; prerecorded tapes, cassettes and other sound 
3.3 	recordings; manipulative materials; desk charts; games; study prints and pictures; desk 
3.4 	maps; models; learning kits; blocks or cubes; flash cards; individualized multimedia 
3.5 	systems; prepared instructional computer software programs; choral and band sheet music; 
3.6 	electronic books and other printed materials delivered electronically; and CD-Rom.
3.7 	"Individualized instructional or cooperative learning materials" do not include 
3.8 	instructional equipment, instructional hardware, or ordinary daily consumable classroom 
3.9 	supplies.

3.10 	Sec. 4. Minnesota Statutes 2010, section 123B.63, subdivision 3, is amended to read:
3.11 		Subd. 3.Capital project levy referendum. A district may levy the local tax 
3.12 	rate approved by a majority of the electors voting on the question to provide funds for 
3.13 	an approved project. The election must take place no more than five years before the 
3.14 	estimated date of commencement of the project. The referendum must be held on a date 
3.15 	set by the board. A district must meet the requirements of section 123B.71 for projects 
3.16 	funded under this section. If a review and comment is required under section 123B.71, 
3.17 	subdivision 8, a referendum for a project not receiving a positive review and comment by 
3.18 	the commissioner under section 123B.71 must be approved by at least 60 percent of the 
3.19 	voters at the election. The referendum may be called by the school board and may be held:
3.20 	(1) separately, before an election for the issuance of obligations for the project 
3.21 	under chapter 475; or
3.22 	(2) in conjunction with an election for the issuance of obligations for the project 
3.23 	under chapter 475; or
3.24 	(3) notwithstanding section 475.59, as a conjunctive question authorizing both the 
3.25 	capital project levy and the issuance of obligations for the project under chapter 475. Any 
3.26 	obligations authorized for a project may be issued within five years of the date of the 
3.27 	election.
3.28 	The ballot must provide a general description of the proposed project, state the 
3.29 	estimated total cost of the project, state whether the project has received a positive or 
3.30 	negative review and comment from the commissioner, state the maximum amount of the 
3.31 	capital project levy as a percentage of net tax capacity, state the amount that will be raised 
3.32 	by that local tax rate in the first year it is to be levied, and state the maximum number of 
3.33 	years that the levy authorization will apply.
3.34 	The ballot must contain a textual portion with the information required in this 
3.35 	section and a question stating substantially the following:
4.1 	"Shall the capital project levy proposed by the board of .......... School District 
4.2 	No. .......... be approved?"
4.3 	If approved, the amount provided by the approved local tax rate applied to the net 
4.4 	tax capacity for the year preceding the year the levy is certified may be certified for the 
4.5 	number of years, not to exceed ten, approved.
4.6 	In the event a conjunctive question proposes to authorize both the capital project 
4.7 	levy and the issuance of obligations for the project, appropriate language authorizing the 
4.8 	issuance of obligations must also be included in the question.
4.9 	The district must notify the commissioner of the results of the referendum.

4.10 	Sec. 5. Minnesota Statutes 2010, section 123B.75, subdivision 5, is amended to read:
4.11 		Subd. 5.Levy recognition. (a) For fiscal years 2009 and 2010, in June of each 
4.12 	year, the school district must recognize as revenue, in the fund for which the levy was 
4.13 	made, the lesser of:
4.14 	(1) the sum of May, June, and July school district tax settlement revenue received in 
4.15 	that calendar year, plus general education aid according to section 126C.13, subdivision 
4.16 	4, received in July and August of that calendar year; or
4.17 	(2) the sum of:
4.18 	(i) 31 percent of the referendum levy certified according to section 126C.17, in 
4.19 	calendar year 2000; and
4.20 	(ii) the entire amount of the levy certified in the prior calendar year according to 
4.21 	section 124D.86, subdivision 4, for school districts receiving revenue under sections 
4.22 	124D.86, subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, paragraph 
4.23 	(a), and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48, 
4.24 	subdivision 6; plus
4.25 	(iii) zero percent of the amount of the levy certified in the prior calendar year for the 
4.26 	school district's general and community service funds, plus or minus auditor's adjustments, 
4.27 	not including the levy portions that are assumed by the state, that remains after subtracting 
4.28 	the referendum levy certified according to section 126C.17 and the amount recognized 
4.29 	according to item (ii).
4.30 	(b) For fiscal year 2011 and later years, in June of each year, the school district must 
4.31 	recognize as revenue, in the fund for which the levy was made, the lesser of:
4.32 	(1) the sum of May, June, and July school district tax settlement revenue received in 
4.33 	that calendar year, plus general education aid according to section 126C.13, subdivision 
4.34 	4, received in July and August of that calendar year; or
4.35 	(2) the sum of:
5.1 	(i) the greater of 48.6 percent of the referendum levy certified according to section 
5.2 	126C.17 in the prior calendar year, or 31 percent of the referendum levy certified 
5.3 	according to section 126C.17 in calendar year 2000; plus
5.4 	(ii) the entire amount of the levy certified in the prior calendar year according to 
5.5 	section 124D.4531, 124D.86, subdivision 4, for school districts receiving revenue under 
5.6 	sections 124D.86, subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, 
5.7 	paragraph (a), and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457;
5.8 	and 126C.48, subdivision 6; plus
5.9 	(iii) 48.6 percent of the amount of the levy certified in the prior calendar year for the 
5.10 	school district's general and community service funds, plus or minus auditor's adjustments, 
5.11 	not including the levy portions that are assumed by the state, that remains after subtracting 
5.12 	the referendum levy certified according to section 126C.17 and the amount recognized 
5.13 	according to item (ii).

5.14 	Sec. 6. Minnesota Statutes 2010, section 125A.79, subdivision 1, is amended to read:
5.15 		Subdivision 1.Definitions. For the purposes of this section, the definitions in this 
5.16 	subdivision apply.
5.17 	(a) "Unreimbursed special education cost" means the sum of the following:
5.18 	(1) expenditures for teachers' salaries, contracted services, supplies, equipment, and 
5.19 	transportation services eligible for revenue under section 125A.76; plus
5.20 	(2) expenditures for tuition bills received under sections 125A.03 to 125A.24 and 
5.21 	125A.65 for services eligible for revenue under section 125A.76, subdivision 2; minus
5.22 	(3) revenue for teachers' salaries, contracted services, supplies, equipment, and 
5.23 	transportation services under section 125A.76; minus
5.24 	(4) tuition receipts under sections 125A.03 to 125A.24 and 125A.65 for services 
5.25 	eligible for revenue under section 125A.76, subdivision 2.
5.26 	(b) "General revenue" for a school district means the sum of the general education 
5.27 	revenue according to section 126C.10, subdivision 1, excluding alternative teacher 
5.28 	compensation revenue, plus the total qualifying referendum revenue specified in paragraph 
5.29 	(e) minus transportation sparsity revenue minus total operating capital revenue. "General 
5.30 	revenue" for a charter school means the sum of the general education revenue according to 
5.31 	section 124D.11, subdivision 1, and transportation revenue according to section 124D.11, 
5.32 	subdivision 2, excluding alternative teacher compensation revenue, minus referendum 
5.33 	equalization aid minus transportation sparsity revenue minus operating capital revenue.
5.34 	(c) "Average daily membership" has the meaning given it in section 126C.05.
5.35 	(d) "Program growth factor" means 1.02 for fiscal year 2012 and later.
6.1 	(e) "Total qualifying referendum revenue" means two-thirds of the district's total 
6.2 	referendum revenue as adjusted according to section 127A.47, subdivision 7, paragraphs 
6.3 	(a) to (c), for fiscal year 2006, one-third of the district's total referendum revenue for fiscal 
6.4 	year 2007, and none of the district's total referendum revenue for fiscal year 2008 and later.

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

6.6 	Sec. 7. Minnesota Statutes 2010, section 126C.10, subdivision 8a, is amended to read:
6.7 		Subd. 8a.Sparsity revenue for school districts that close facilities. A school 
6.8 	district that closes a school facility is eligible for elementary and secondary sparsity 
6.9 	revenue equal to the greater of the amounts calculated under subdivisions 6, 7, and 8 or 
6.10 	the total amount of sparsity revenue for the previous fiscal year if the school board of the 
6.11 	district has adopted a written resolution stating that the district intends to close the school 
6.12 	facility, but cannot proceed with the closure without the adjustment to sparsity revenue 
6.13 	authorized by this subdivision. The written resolution must be approved by the school 
6.14 	board and filed with the commissioner of education at least 60 days prior to the start of the 
6.15 	fiscal year for which aid under this subdivision is first requested.

6.16 	EFFECTIVE DATE. This section is effective for board resolutions approved by 
6.17 	the school board in fiscal year 2011 and later for sparsity revenue calculations in fiscal 
6.18 	year 2012 and later.

6.19 	Sec. 8. Minnesota Statutes 2010, section 126C.15, subdivision 2, is amended to read:
6.20 		Subd. 2.Building allocation. (a) A district or cooperative must allocate its 
6.21 	compensatory revenue to each school building in the district or cooperative where 
6.22 	the children who have generated the revenue are served unless the school district or 
6.23 	cooperative has received permission under Laws 2005, First Special Session chapter 5, 
6.24 	article 1, section 50, to allocate compensatory revenue according to student performance 
6.25 	measures developed by the school board.
6.26 	(b) Notwithstanding paragraph (a), a district or cooperative may allocate up to 
6.27 	five percent of the amount of compensatory revenue that the district receives to school 
6.28 	sites according to a plan adopted by the school board. The money reallocated under 
6.29 	this paragraph must be spent for the purposes listed in subdivision 1, but may be 
6.30 	spent on students in any grade, including students attending school readiness or other 
6.31 	prekindergarten programs.
6.32 	(c) For the purposes of this section and section 126C.05, subdivision 3, "building" 
6.33 	means education site as defined in section 123B.04, subdivision 1.
7.1 	(d) Notwithstanding section 123A.26, subdivision 1, compensatory revenue 
7.2 	generated by students served at a cooperative unit shall be paid to the cooperative unit.
7.3 	(e) A district or cooperative with school building openings, school building 
7.4 	closings, changes in attendance area boundaries, or other changes in programs or student 
7.5 	demographics between the prior year and the current year may reallocate compensatory 
7.6 	revenue among sites to reflect these changes. A district or cooperative must report to the 
7.7 	department any adjustments it makes according to this paragraph and the department must 
7.8 	use the adjusted compensatory revenue allocations in preparing the report required under 
7.9 	section 123B.76, subdivision 3, paragraph (c).

7.10 	Sec. 9. Minnesota Statutes 2010, section 126C.41, subdivision 2, is amended to read:
7.11 		Subd. 2.Retired employee health benefits. (a) A district may levy an amount up 
7.12 	to the amount the district is required by the collective bargaining agreement in effect 
7.13 	on March 30, 1992, to pay for health insurance or unreimbursed medical expenses for 
7.14 	licensed and nonlicensed employees who have terminated services in the employing 
7.15 	district and withdrawn from active teaching service or other active service, as applicable, 
7.16 	before July 1, 1992, and to pay for health insurance or unreimbursed medical expenses 
7.17 	for licensed and nonlicensed employees who have terminated services in the employing 
7.18 	district and withdrawn from active teaching service or other active service, as applicable 
7.19 	before July 1, 1998, only if a sunset clause is in effect for the current collective bargaining 
7.20 	agreement. The total amount of the levy each year may not exceed $600,000.
7.21 	(b) In addition to the levy authority granted under paragraph (a), a school district 
7.22 	may levy for other postemployment benefits expenses actually paid during the previous 
7.23 	fiscal year. For purposes of this subdivision, "postemployment benefits" means benefits 
7.24 	giving rise to a liability under Statement No. 45 of the Government Accounting Standards 
7.25 	Board. A district seeking levy authority under this subdivision must:
7.26 	(1) create or have created an actuarial liability to pay postemployment benefits to 
7.27 	employees or officers after their termination of service;
7.28 	(2) have a sunset clause in effect for the current collective bargaining agreement as 
7.29 	required by paragraph (a); and
7.30 	(3) apply for the authority in the form and manner required by the commissioner 
7.31 	of education.
7.32 	If the total levy authority requested under this paragraph exceeds the amount established 
7.33 	in paragraph (c), the commissioner must proportionately reduce each district's maximum 
7.34 	levy authority under this subdivision. The commissioner may subsequently adjust each 
8.1 	district's levy authority under this subdivision so long as the total levy authority does not 
8.2 	exceed the maximum levy authority for that year.
8.3 	(c) The maximum levy authority under paragraph (b) must not exceed the following 
8.4 	amounts:
8.5 	(1) $9,242,000 for taxes payable in 2010;
8.6 	(2) $29,863,000 for taxes payable in 2011; and
8.7 	(3) for taxes payable in 2012 and later, the maximum levy authority must not exceed 
8.8 	the sum of the previous year's authority and $14,000,000.

8.9 	Sec. 10. Minnesota Statutes 2010, section 127A.30, subdivision 1, is amended to read:
8.10 		Subdivision 1.Membership and terms.  (a) A state Permanent School Fund 
8.11 	Advisory Committee is established to advise the Department of Natural Resources on 
8.12 	the management of permanent school fund land, which is held in trust for the school 
8.13 	districts of the state.
8.14 	(b) The advisory committee must consist of the following persons or their 
8.15 	designees: the chairs of the education committees of the legislature, the chairs of the 
8.16 	legislative committees with jurisdiction over the K-12 education budget, the chairs of 
8.17 	the legislative committees with jurisdiction over the environment and natural resources 
8.18 	policy and budget, the chair of the senate Committee on Finance and the chair of the 
8.19 	house of representatives Committee on Ways and Means, one member of the house 
8.20 	of representatives of the minority party appointed by the minority leader, one senator 
8.21 	of the minority party appointed pursuant to the rules of the senate, the commissioner 
8.22 	of education, one superintendent from a nonmetropolitan district, one superintendent 
8.23 	from a metropolitan area district, one person with expertise on school finance matters,
8.24 	one person with an expertise in forestry, one person with an expertise in minerals and 
8.25 	mining, one person with an expertise in real estate development, one person with 
8.26 	an expertise in renewable energy, one person with an expertise in finance and land 
8.27 	management, and one person with an expertise in natural resource conservation. The 
8.28 	school district superintendents and the member with expertise on school finance matters 
8.29 	shall be appointed by the commissioner of education. The committee members with 
8.30 	areas of expertise in forestry, minerals and mining, real estate development, renewable 
8.31 	energy, finance and land management, and natural resource conservation shall be 
8.32 	appointed by the commissioner of natural resources. Members of the legislature shall be 
8.33 	given the opportunity to recommend candidates for vacancies on the committee to the 
8.34 	commissioners of education and natural resources. The advisory committee must also 
8.35 	include a nonvoting member appointed by the commissioner of natural resources.
9.1 	(c) The commissioner of natural resources shall provide administrative support to 
9.2 	the committee.
9.3 	(d) The members of the committee shall serve without compensation. The members 
9.4 	of the Permanent School Fund Advisory Committee shall elect their chair and are bound 
9.5 	by the provisions of sections 43A.38 and 116P.09, subdivision 6.
9.6 	(e) The terms of members appointed by the commissioners of education and natural 
9.7 	resources are staggered four-year terms according to section 15.059, subdivision 2. 
9.8 	Members may be reappointed at the pleasure of the appointing authority. Members are 
9.9 	subject to removal according to section 15.059, subdivision 4.
9.10 	(f) The other members of the Permanent School Fund Advisory Committee serve 
9.11 	at the pleasure of their respective appointing authorities and their terms expire upon the 
9.12 	appointment of their successors.

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

9.14 	Sec. 11.  REPEALER.
 9.15 	Minnesota Statutes 2010, section 126C.457, is repealed.

9.16 	ARTICLE 2
9.17 	EDUCATION EXCELLENCE

9.18 	Section 1. Minnesota Statutes 2010, section 13.32, subdivision 6, is amended to read:
9.19 		Subd. 6.Admissions forms; remedial instruction. (a) Minnesota postsecondary 
9.20 	education institutions, for purposes of reporting and research, may collect on the 
9.21 	1986-1987 admissions form, and disseminate to any public educational agency or 
9.22 	institution the following data on individuals: student sex, ethnic background, age, and 
9.23 	disabilities. The data shall not be required of any individual and shall not be used for 
9.24 	purposes of determining the person's admission to an institution.
9.25 	(b) A school district that receives information under subdivision 3, paragraph (h) 
9.26 	from a postsecondary institution about an identifiable student shall maintain the data 
9.27 	as educational data and use that data to conduct studies to improve instruction. Public 
9.28 	postsecondary systems annually shall provide summary data to the Department of 
9.29 	Education indicating the extent and content of the remedial instruction received in each 
9.30 	system during the prior academic year by, and the results of assessment testing and the 
9.31 	academic performance of, students who graduated from a Minnesota school district within 
9.32 	two years before receiving the remedial instruction, and include as separate categories of 
9.33 	summary data the number and percentage of recent high school graduates who prepared 
10.1 	for postsecondary academic and career opportunities under section 120B.35, subdivision 
10.2 	3, paragraph (c), and the number of recent high school graduates who graduated as 
10.3 	students with disabilities. The department shall evaluate the data and annually report its 
10.4 	findings to the education committees of the legislature.
10.5 	(c) This section supersedes any inconsistent provision of law.

10.6 	Sec. 2. Minnesota Statutes 2010, section 120A.22, subdivision 11, is amended to read:
10.7 		Subd. 11.Assessment of performance. (a) Each year the performance of 
10.8 	every child who is not enrolled in a public school must be assessed using a nationally 
10.9 	norm-referenced standardized achievement examination. The superintendent of the 
10.10 	district in which the child receives instruction and the person in charge of the child's 
10.11 	instruction must agree about the specific examination to be used and the administration 
10.12 	and location of the examination or a nationally recognized college entrance exam.
10.13 	(b) To the extent the examination in paragraph (a) does not provide assessment in 
10.14 	all of the subject areas in subdivision 9, the parent must assess the child's performance 
10.15 	in the applicable subject area. This requirement applies only to a parent who provides 
10.16 	instruction and does not meet the requirements of subdivision 10, clause (1), (2), or (3).
10.17 	(c) If the results of the assessments in paragraphs (a) and (b) indicate that the 
10.18 	child's performance on the total battery score is at or below the 30th percentile or one 
10.19 	grade level below the performance level for children of the same age, the parent must 
10.20 	obtain additional evaluation of the child's abilities and performance for the purpose of 
10.21 	determining whether the child has learning problems.
10.22 	(d)(b) A child receiving instruction from a nonpublic school, person, or institution 
10.23 	that is accredited by an accrediting agency, recognized according to section 123B.445, or 
10.24 	recognized by the commissioner, is exempt from the requirements of this subdivision.

10.25 	Sec. 3. Minnesota Statutes 2010, section 120A.24, is amended to read:
10.26 	120A.24 REPORTING.
10.27 		Subdivision 1.Reports to superintendent. (a) The person in charge of providing 
10.28 	instruction to a child must submit the following information to the superintendent of the 
10.29 	district in which the child resides the name, birth date, and address of the child; the annual 
10.30 	tests intended to be used under section 120A.22, subdivision 11, if required; the name of 
10.31 	each instructor; and evidence of compliance with one of the requirements specified in 
10.32 	section 120A.22, subdivision 10:
11.1 	(1) by October 1 of each the first school year, the name, birth date, and address 
11.2 	of each child receiving instruction the child receives instruction after reaching the age 
11.3 	of seven;
11.4 	(2) the name of each instructor and evidence of compliance with one of the 
11.5 	requirements specified in section 120A.22, subdivision 10;
11.6 	(3) an annual instructional calendar; and
11.7 	(4) for each child instructed by a parent who meets only the requirement of section 
11.8 	120A.22, subdivision 10, clause (6), a quarterly report card on the achievement of the 
11.9 	child in each subject area required in section 120A.22, subdivision 9.
11.10 	(2) within 15 days of when a parent withdraws a child from public school after 
11.11 	age seven to homeschool;
11.12 	(3) within 15 days of moving out of a district; and
11.13 	(4) by October 1 after a new resident district is established.
11.14 	(b) The person in charge of providing instruction to a child between the ages of 
11.15 	seven and 16 must submit, by October 1 of each school year, a letter of intent to continue 
11.16 	to provide instruction under this section for all students under the person's supervision and 
11.17 	any changes to the information required in paragraph (a) for each student.
11.18 	(c) The superintendent may collect the required information under this section 
11.19 	through an electronic or Web-based format, but must not require electronic submission 
11.20 	of information under this section from the person in charge of reporting under this 
11.21 	subdivision.
11.22 		Subd. 2.Availability of documentation. (a) The person in charge of providing 
11.23 	instruction to a child must make available maintain documentation indicating that the 
11.24 	subjects required in section 120A.22, subdivision 9, are being taught and proof that the 
11.25 	tests under section 120A.22, subdivision 11, have been administered. This documentation 
11.26 	must include class schedules, copies of materials used for instruction, and descriptions of 
11.27 	methods used to assess student achievement.
11.28 	(b) The parent of a child who enrolls full time in public school after having been 
11.29 	enrolled in a home school under section 120A.22, subdivision 6, must provide the 
11.30 	enrolling public school or school district with the child's scores on any tests administered 
11.31 	to the child under section 120A.22, subdivision 11, and other education-related documents 
11.32 	the enrolling school or district requires to determine where the child is placed in school 
11.33 	and what course requirements apply. This paragraph does not apply to a shared-time 
11.34 	student who does not seek a public school diploma.
11.35 	(c) The person in charge of providing instruction to a child must make the 
11.36 	documentation in this subdivision available to the county attorney when a case is 
12.1 	commenced under section 120A.26, subdivision 5; chapter 260C; or when diverted under 
12.2 	chapter 260A.
12.3 		Subd. 3.Exemptions. A nonpublic school, person, or other institution that is 
12.4 	accredited by an accrediting agency, recognized according to section 123B.445, or 
12.5 	recognized by the commissioner, is exempt from the requirements in subdivisions 1 and
12.6 	subdivision 2, except for the requirement in subdivision 1, clause (1).  
12.7 		Subd. 4.Reports to the state. A superintendent must make an annual report to the 
12.8 	commissioner of education by December 1 of the total number of nonpublic schoolchildren 
12.9 	reported as residing in the district. The report must include the following information:
12.10 	(1) the number of children residing in the district attending nonpublic schools or 
12.11 	receiving instruction from persons or institutions other than a public school;
12.12 	(2) the number of children in clause (1) who are in compliance with section 120A.22
12.13 	and this section; and  
12.14 	(3) the number of children in clause (1) who the superintendent has determined are 
12.15 	not in compliance with section 120A.22 and this section.  
12.16 		Subd. 5.Obligations. Nothing in this section alleviates the obligations under 
12.17 	section 120A.22.

12.18 	Sec. 4. Minnesota Statutes 2010, section 120A.40, is amended to read:
12.19 	120A.40 SCHOOL CALENDAR.
12.20 	(a) Except for learning programs during summer, flexible learning year programs 
12.21 	authorized under sections 124D.12 to 124D.127, and learning year programs under section 
12.22 	124D.128, a district must not commence an elementary or secondary school year before 
12.23 	Labor Day, except as provided under paragraph (b). Days devoted to teachers' workshops 
12.24 	may be held before Labor Day. Districts that enter into cooperative agreements are 
12.25 	encouraged to adopt similar school calendars.
12.26 	(b) A district may begin the school year on any day before Labor Day:
12.27 	(1) to accommodate a construction or remodeling project of $400,000 or more 
12.28 	affecting a district school facility;
12.29 	(2) if the district has an agreement under section 123A.30, 123A.32, or 123A.35 
12.30 	with a district that qualifies under clause (1); or
12.31 	(3) if the district agrees to the same schedule with a school district in an adjoining 
12.32 	state; or
12.33 	(4) if the district canceled at least two instructional school days in at least two of the 
12.34 	previous five consecutive school years because of flooding.

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

13.2 	Sec. 5. Minnesota Statutes 2010, section 120B.023, subdivision 2, is amended to read:
13.3 		Subd. 2.Revisions and reviews required. (a) The commissioner of education must 
13.4 	revise and appropriately embed technology and information literacy standards consistent 
13.5 	with recommendations from school media specialists into the state's academic standards 
13.6 	and graduation requirements and implement a review cycle for state academic standards 
13.7 	and related benchmarks, consistent with this subdivision. The commissioner must revise 
13.8 	and align the state's academic standards and graduation requirements, consistent with the 
13.9 	review cycle established in this subdivision and the requirements of chapter 14, but must 
13.10 	not proceed to finally adopt revised and realigned academic standards and graduation 
13.11 	requirements in rule without first receiving specific legislative authority to do so. During 
13.12 	each review cycle, the commissioner also must examine the alignment of each required 
13.13 	academic standard and related benchmark with the knowledge and skills students need for 
13.14 	college readiness and advanced work in the particular subject area.
13.15 	(b) The commissioner in the 2006-2007 school year must revise and align the state's 
13.16 	academic standards and high school graduation requirements in mathematics to require 
13.17 	that students satisfactorily complete the revised mathematics standards, beginning in the 
13.18 	2010-2011 school year. Under the revised standards:
13.19 	(1) students must satisfactorily complete an algebra I credit by the end of eighth 
13.20 	grade; and
13.21 	(2) students scheduled to graduate in the 2014-2015 school year or later must 
13.22 	satisfactorily complete an algebra II credit or its equivalent.
13.23 	The commissioner also must ensure that the statewide mathematics assessments 
13.24 	administered to students in grades 3 through 8 and 11 are aligned with the state academic 
13.25 	standards in mathematics, consistent with section 120B.30, subdivision 1, paragraph 
13.26 	(b). The commissioner must implement a review of the academic standards and related 
13.27 	benchmarks in mathematics beginning in the 2015-2016 school year.
13.28 	(c) The commissioner in the 2007-2008 school year must revise and align the state's 
13.29 	academic standards and high school graduation requirements in the arts to require that 
13.30 	students satisfactorily complete the revised arts standards beginning in the 2010-2011 
13.31 	school year. The commissioner must implement a review of the academic standards and 
13.32 	related benchmarks in arts beginning in the 2016-2017 school year.
13.33 	(d) The commissioner in the 2008-2009 school year must revise and align the state's 
13.34 	academic standards and high school graduation requirements in science to require that 
13.35 	students satisfactorily complete the revised science standards, beginning in the 2011-2012 
14.1 	school year. Under the revised standards, students scheduled to graduate in the 2014-2015 
14.2 	school year or later must satisfactorily complete a chemistry or physics credit, or a career 
14.3 	and technical education  credit that meets the standards underlying either the chemistry or 
14.4 	physics credit. The commissioner must implement a review of the academic standards and 
14.5 	related benchmarks in science beginning in the 2017-2018 school year.
14.6 	(e) The commissioner in the 2009-2010 school year must revise and align the state's 
14.7 	academic standards and high school graduation requirements in language arts to require 
14.8 	that students satisfactorily complete the revised language arts standards beginning in the 
14.9 	2012-2013 school year. The commissioner must implement a review of the academic 
14.10 	standards and related benchmarks in language arts beginning in the 2018-2019 school year.
14.11 	(f) The commissioner in the 2010-2011 school year must revise and align the state's 
14.12 	academic standards and high school graduation requirements in social studies to require 
14.13 	that students satisfactorily complete the revised social studies standards beginning in the 
14.14 	2013-20142014-2015 school year. The commissioner must again implement a review 
14.15 	of the academic standards and related benchmarks in social studies beginning in the 
14.16 	2019-20202020-2021 school year.
14.17 	(g) School districts and charter schools must revise and align local academic 
14.18 	standards and high school graduation requirements in health, world languages, and career 
14.19 	and technical education to require students to complete the revised standards beginning 
14.20 	in a school year determined by the school district or charter school. School districts and 
14.21 	charter schools must formally establish a periodic review cycle for the academic standards 
14.22 	and related benchmarks in health, world languages, and career and technical education.
14.23 	(h) With specific legislative authority, the commissioner may adopt common core 
14.24 	state standards in any subject and school year listed in any revision cycle under this 
14.25 	section that were developed with the participation of the National Governors Association 
14.26 	and the Council of Chief State School Officers.

14.27 	Sec. 6. Minnesota Statutes 2010, section 120B.11, is amended to read:
14.28 	120B.11 SCHOOL DISTRICT PROCESS FOR REVIEWING CURRICULUM, 
14.29 	INSTRUCTION, AND STUDENT ACHIEVEMENT.
14.30 		Subdivision 1.Definitions. For the purposes of this section and section 120B.10, 
14.31 	the following terms have the meanings given them.
14.32 	(a) "Instruction" means methods of providing learning experiences that enable a 
14.33 	student to meet state and district academic standards and graduation requirements.
15.1 	(b) "Curriculum" means district or school adopted programs and written plans for 
15.2 	providing students with learning experiences that lead to expected knowledge and skills
15.3 	and college and career readiness.
15.4 		Subd. 2.Adopting policies.  A school board shall have in place an adopted written
15.5 	adopt a policy to support and improve teaching and learning that includes the following:
15.6 	(1) district goals for instruction including the use of best teaching practices, district 
15.7 	and school curriculum, and achievement for all student subgroups identified in section 
15.8 	120B.35, subdivision 3, paragraph (b), clause (2);
15.9 	(2) a process for evaluating each student's progress toward meeting state and local 
15.10 	academic standards and identifying the strengths and weaknesses of instruction in pursuit 
15.11 	of student and school success and curriculum affecting students' progress academic 
15.12 	achievement and growth;
15.13 	(3) a performance-based system for periodically reviewing and evaluating the 
15.14 	effectiveness of all instruction and curriculum that includes, among other measures 
15.15 	to improve teaching and learning, a performance-based system for annually evaluating 
15.16 	school principals under section 123B.147, subdivision 3;
15.17 	(4) a plan for improving instruction, curriculum, and student academic achievement
15.18 	and growth; and
15.19 	(5) an education effectiveness plan aligned with section sections 120B.023, 
15.20 	subdivision 2, and122A.625 that integrates high quality instruction, rigorous curriculum, 
15.21 	and technology, and a collaborative professional culture that develops teacher quality, 
15.22 	performance, and effectiveness.
15.23 		Subd. 3.District advisory committee. Each school board shall establish an 
15.24 	advisory committee to ensure active community participation in all phases of planning and 
15.25 	improving the instruction and curriculum affecting state and district academic standards, 
15.26 	consistent with subdivision 2. A district advisory committee, to the extent possible, 
15.27 	shall reflect the diversity of the district and its learning school sites, and shall include 
15.28 	teachers, parents, support staff, students, and other community residents. The district 
15.29 	may establish building site teams as subcommittees of the district advisory committee 
15.30 	under subdivision 4. The district advisory committee shall recommend to the school 
15.31 	board rigorous academic standards, student achievement goals and measures consistent 
15.32 	with section 120B.35, district assessments, and program evaluations. Learning School
15.33 	sites may expand upon district evaluations of instruction, curriculum, assessments, or 
15.34 	programs. Whenever possible, parents and other community residents shall comprise at 
15.35 	least two-thirds of advisory committee members.
16.1 		Subd. 4.Building Site team. A school may establish a building site team to develop 
16.2 	and implement an education effectiveness plan to improve instruction, curriculum, 
16.3 	and student achievement at the school site, consistent with subdivision 2. The team 
16.4 	shall advise the board and the advisory committee about developing an instruction and 
16.5 	curriculum improvement plan that aligns curriculum, assessment of student progress in 
16.6 	meeting state and district academic standards, and instruction.
16.7 		Subd. 5.Local report. (a) By October 1 of each year, the school board shall use 
16.8 	standard statewide reporting procedures the commissioner develops and adopt a report 
16.9 	that includes the following:
16.10 	(1) student achievement goals for meeting state academic standards;
16.11 	(2) results of local assessment data, and any additional test data;
16.12 	(3) the annual school district improvement plans including staff development goals 
16.13 	under section 122A.60;
16.14 	(4) information about district and learning site progress in realizing previously 
16.15 	adopted improvement plans; and
16.16 	(5) the amount and type of revenue attributed to each education site as defined 
16.17 	in section 123B.04.
16.18 	(b) Consistent with requirements for school performance report cards under section 
16.19 	120B.36, subdivision 1, the school board shall publish a summary of the report about 
16.20 	student achievement goals, local assessment outcomes, plans for improving curriculum 
16.21 	and instruction, and success in realizing previously adopted improvement plans in the 
16.22 	local newspaper with the largest circulation in the district, by mail, or by electronic means 
16.23 	such as the district Web site. If electronic means are used, school districts must publish 
16.24 	notice of the report in a periodical of general circulation in the district. School districts 
16.25 	must make copies of the report available to the public on request.
16.26 	(c) The title of the report shall contain the name and number of the school district and 
16.27 	read "Annual Report on Curriculum, Instruction, and Student Achievement." The report 
16.28 	must include at least the following information about advisory committee membership:
16.29 	(1) the name of each committee member and the date when that member's term 
16.30 	expires;
16.31 	(2) the method and criteria the school board uses to select committee members; and
16.32 	(3) the date by which a community resident must apply to next serve on the 
16.33 	committee.
16.34 		Subd. 6.Student evaluation. The school board annually shall provide high school 
16.35 	graduates or GED recipients who receive received a diploma or its equivalent from the 
17.1 	school district within the two previous school years with an opportunity to report to the 
17.2 	board by electronic means on the following:
17.3 	(1) the quality of district instruction, curriculum, and services; and
17.4 	(2) the quality of district delivery of instruction, curriculum, and services;
17.5 	(3) the utility of district facilities; and
17.6 	(4) the effectiveness of district administration.
17.7 	For purposes of improving instruction and curriculum and consistent with section 
17.8 	13.32, subdivision 6, paragraph (b), the board must forward a summary of its evaluation 
17.9 	findings to the commissioner upon request.
17.10 		Subd. 7.Periodic report. Each school district shall periodically ask affected 
17.11 	constituencies about their level of satisfaction with school. The district shall include the 
17.12 	results of this evaluation in the report required under subdivision 5.
17.13 		Subd. 8.Biennial evaluation; assessment program. At least once every two years, 
17.14 	the district report under subdivision 5 shall include an evaluation of the effectiveness of 
17.15 	district testing programs, according to the following:
17.16 	(1) written objectives of the assessment program;
17.17 	(2) names of tests and grade levels tested;
17.18 	(3) use of test results; and
17.19 	(4) student achievement results compared to previous years.

17.20 	EFFECTIVE DATE. This section is effective the day following final enactment 
17.21 	and applies to reports on the 2011-2012 school year and later.

17.22 	Sec. 7. Minnesota Statutes 2010, section 120B.12, is amended to read:
17.23 	120B.12 READING INTERVENTION PROFICIENTLY NO LATER THAN 
17.24 	THE END OF GRADE 3.
17.25 		Subdivision 1.Literacy goal. The legislature seeks to have Minnesota's children 
17.26 	able to read no later than the end of second grade every child reading at or above 
17.27 	grade level no later than the end of grade 3 and that teachers provide comprehensive, 
17.28 	scientifically based reading instruction consistent with section 122A.06, subdivision 4.
17.29 		Subd. 2.Identification; report. For the 2002-20032011-2012 school year and 
17.30 	later, each school district shall identify before the end of first kindergarten, grade 1, and 
17.31 	grade 2 students who are at risk of not learning to readnot reading at grade level before 
17.32 	the end of second grade the current school year. Reading assessments must identify and 
17.33 	evaluate students' areas of academic need related to literacy. The district must use a 
18.1 	locally adopted assessment method. The district must and annually report thesummary 
18.2 	assessment results of the assessment to the commissioner by June 1.
18.3 		Subd. 2a.Parent notification and involvement. Schools, at least annually, 
18.4 	must give the parent of each student who is not reading at or above grade level timely 
18.5 	information about:
18.6 	(1) student's reading proficiency as measured by a locally adopted assessment; 
18.7 	(2) reading-related services currently being provided to the student; and
18.8 	(3) strategies for parents to use in helping their student succeed in becoming 
18.9 	grade-level proficient in reading.
18.10 		Subd. 3.Intervention. For each student identified under subdivision 2, the district 
18.11 	shall provide a reading intervention method or program to assist the student in reaching
18.12 	reading intervention to accelerate student growth in order to reach the goal of learning to 
18.13 	read no later thanreading at or above grade level by the end of secondthe current grade
18.14 	and school year. District intervention methods shall encourage parental involvement 
18.15 	and, where possible, collaboration with appropriate school and community programs. 
18.16 	Intervention methods may include, but are not limited to, requiring attendance in summer 
18.17 	school and, intensified reading instruction that may require that the student be removed 
18.18 	from the regular classroom for part of the school day or extended-day programs.
18.19 		Subd. 4.Staff development. Each district shall use the data under subdivision 2 
18.20 	to identify the staff development needs to ensureso that:
18.21 	(1) elementary teachers are able to implement comprehensive, scientifically 
18.22 	based, and balanced reading instruction programs that have resulted in improved 
18.23 	student performance in the five reading areas of phonemic awareness, phonics, fluency, 
18.24 	vocabulary, and comprehension as defined in section 122A.06, subdivision 4, until the 
18.25 	student achieves grade-level reading proficiency;
18.26 	(2) elementary teachers who are instructing students identified under subdivision 
18.27 	2 are prepared to teachhave sufficient training to provide comprehensive, scientifically 
18.28 	based reading instruction using the intervention methods or programs selected by the 
18.29 	district for the identified students; and
18.30 	(3) all licensed teachers employed by the district have regular opportunities to 
18.31 	improve reading instruction; and 
18.32 	(4) licensed teachers recognize students' diverse needs in cross-cultural settings 
18.33 	and are able to serve the oral language and linguistic needs of students who are English 
18.34 	language learners.
18.35 		Subd. 4a. Local literacy plan. Consistent with this section, a school district must 
18.36 	adopt a local literacy plan to have every child reading at or above grade level no later than 
19.1 	the end of grade 3. The plan must include a process to assess students' level of reading 
19.2 	proficiency, notify and involve parents, intervene with students who are not reading at 
19.3 	or above grade level, and identify and meet staff development needs. The district must 
19.4 	post its literacy plan on the official school district Web site.
19.5 		Subd. 5.Commissioner. The commissioner shall recommend to districts multiple 
19.6 	assessment tools that will to assist districts and teachers with identifying students under 
19.7 	subdivision 2. The commissioner shall also make available to districts examples of 
19.8 	nationally recognized and research-based instructional methods or programs thatto 
19.9 	districts may use to provide comprehensive, scientifically based reading instruction and 
19.10 	intervention according to under this section.

19.11 	Sec. 8. Minnesota Statutes 2010, section 120B.30, subdivision 1, is amended to read:
19.12 		Subdivision 1.Statewide testing.  (a) The commissioner, with advice from experts 
19.13 	with appropriate technical qualifications and experience and stakeholders, consistent with 
19.14 	subdivision 1a, shall include in the comprehensive assessment system, for each grade 
19.15 	level to be tested, state-constructed tests developed from and aligned with the state's 
19.16 	required academic standards under section 120B.021, include multiple choice questions, 
19.17 	and be administered annually to all students in grades 3 through 8. State-developed high 
19.18 	school tests aligned with the state's required academic standards under section 120B.021 
19.19 	and administered to all high school students in a subject other than writing must include 
19.20 	multiple choice questions. The commissioner shall establish one or more months during 
19.21 	which schools shall administer the tests to students each school year. For students enrolled 
19.22 	in grade 8 before the 2005-2006 school year, Minnesota basic skills tests in reading, 
19.23 	mathematics, and writing shall fulfill students' basic skills testing requirements for a 
19.24 	passing state notation. The passing scores of basic skills tests in reading and mathematics 
19.25 	are the equivalent of 75 percent correct for students entering grade 9 based on the first 
19.26 	uniform test administered in February 1998. Students who have not successfully passed 
19.27 	a Minnesota basic skills test by the end of the 2011-2012 school year must pass the 
19.28 	graduation-required assessments for diploma under paragraph (c).
19.29 	(b) The state assessment system must be aligned to the most recent revision of 
19.30 	academic standards as described in section 120B.023 in the following manner:
19.31 	(1) mathematics;
19.32 	(i) grades 3 through 8 beginning in the 2010-2011 school year; and
19.33 	(ii) high school level beginning in the 2013-2014 school year;
19.34 	(2) science; grades 5 and 8 and at the high school level beginning in the 2011-2012 
19.35 	school year; and
20.1 	(3) language arts and reading; grades 3 through 8 and high school level beginning in 
20.2 	the 2012-2013 school year.
20.3 	(c) For students enrolled in grade 8 in the 2005-2006 school year and later, only the 
20.4 	following options shall fulfill students' state graduation test requirements:
20.5 	(1) for reading and mathematics:
20.6 	(i) obtaining an achievement level equivalent to or greater than proficient as 
20.7 	determined through a standard setting process on the Minnesota comprehensive 
20.8 	assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing 
20.9 	score as determined through a standard setting process on the graduation-required 
20.10 	assessment for diploma in grade 10 for reading and grade 11 for mathematics or 
20.11 	subsequent retests;
20.12 	(ii) achieving a passing score as determined through a standard setting process on the 
20.13 	state-identified language proficiency test in reading and the mathematics test for English 
20.14 	language learners or the graduation-required assessment for diploma equivalent of those 
20.15 	assessments for students designated as English language learners;
20.16 	(iii) achieving an individual passing score on the graduation-required assessment 
20.17 	for diploma as determined by appropriate state guidelines for students with an individual 
20.18 	education plan or 504 plan;
20.19 	(iv) obtaining achievement level equivalent to or greater than proficient as 
20.20 	determined through a standard setting process on the state-identified alternate assessment 
20.21 	or assessments in grade 10 for reading and grade 11 for mathematics for students with 
20.22 	an individual education plan; or
20.23 	(v) achieving an individual passing score on the state-identified alternate assessment 
20.24 	or assessments as determined by appropriate state guidelines for students with an 
20.25 	individual education plan; and
20.26 	(2) for writing:
20.27 	(i) achieving a passing score on the graduation-required assessment for diploma;
20.28 	(ii) achieving a passing score as determined through a standard setting process on 
20.29 	the state-identified language proficiency test in writing for students designated as English 
20.30 	language learners;
20.31 	(iii) achieving an individual passing score on the graduation-required assessment 
20.32 	for diploma as determined by appropriate state guidelines for students with an individual 
20.33 	education plan or 504 plan; or
20.34 	(iv) achieving an individual passing score on the state-identified alternate assessment 
20.35 	or assessments as determined by appropriate state guidelines for students with an 
20.36 	individual education plan.
21.1 	(d) Students enrolled in grade 8 in any school year from the 2005-2006 school 
21.2 	year to the 2009-2010 school year who do not pass the mathematics graduation-required 
21.3 	assessment for diploma under paragraph (c) are eligible to receive a high school diploma 
21.4 	if they:
21.5 	(1) complete with a passing score or grade all state and local coursework and credits 
21.6 	required for graduation by the school board granting the students their diploma;
21.7 	(2) participate in district-prescribed academic remediation in mathematics; and
21.8 	(3) fully participate in at least two retests of the mathematics GRAD test or until 
21.9 	they pass the mathematics GRAD test, whichever comes first. A school, district, or 
21.10 	charter school must place on the high school transcript a student's highest current pass 
21.11 	status for each subject that has a required graduation assessment score for each of the 
21.12 	following assessments on the student's high school transcript: the mathematics Minnesota 
21.13 	Comprehensive Assessment, reading Minnesota Comprehensive Assessment, and writing 
21.14 	Graduation-Required Assessment for Diploma, and when applicable, the mathematics 
21.15 	Graduation-Required Assessment for Diploma and reading Graduation-Required 
21.16 	Assessment for Diploma.
21.17 	In addition, the school board granting the students their diplomas may formally 
21.18 	decide to include a notation of high achievement on the high school diplomas of those 
21.19 	graduating seniors who, according to established school board criteria, demonstrate 
21.20 	exemplary academic achievement during high school.
21.21 	(e) The 3rd through 8th grade and high school test results shall be available to 
21.22 	districts for diagnostic purposes affecting student learning and district instruction and 
21.23 	curriculum, and for establishing educational accountability. The commissioner must 
21.24 	disseminate to the public the high school test results upon receiving those results.
21.25 	(f) The 3rd through 8th grade and high school tests must be aligned with state 
21.26 	academic standards. The commissioner shall determine the testing process and the order 
21.27 	of administration. The statewide results shall be aggregated at the site and district level, 
21.28 	consistent with subdivision 1a.
21.29 	(g) In addition to the testing and reporting requirements under this section, the 
21.30 	commissioner shall include the following components in the statewide public reporting 
21.31 	system:
21.32 	(1) uniform statewide testing of all students in grades 3 through 8 and at the high 
21.33 	school level that provides appropriate, technically sound accommodations or alternate 
21.34 	assessments;
22.1 	(2) educational indicators that can be aggregated and compared across school 
22.2 	districts and across time on a statewide basis, including average daily attendance, high 
22.3 	school graduation rates, and high school drop-out rates by age and grade level;
22.4 	(3) state results on the American College Test; and
22.5 	(4) state results from participation in the National Assessment of Educational 
22.6 	Progress so that the state can benchmark its performance against the nation and other 
22.7 	states, and, where possible, against other countries, and contribute to the national effort 
22.8 	to monitor achievement.

22.9 	Sec. 9. Minnesota Statutes 2010, section 120B.30, subdivision 3, is amended to read:
22.10 		Subd. 3.Reporting. The commissioner shall report test data results publicly and 
22.11 	to stakeholders, including the performance achievement levels developed from students' 
22.12 	unweighted test scores in each tested subject and a listing of demographic factors that 
22.13 	strongly correlate with student performance. The test results must not include personally 
22.14 	identifiable information as defined in Code of Federal Regulations, title 34, section 99.3.
22.15 	The commissioner shall also report data that compares performance results among school 
22.16 	sites, school districts, Minnesota and other states, and Minnesota and other nations. The 
22.17 	commissioner shall disseminate to schools and school districts a more comprehensive 
22.18 	report containing testing information that meets local needs for evaluating instruction and 
22.19 	curriculum. The commissioner shall disseminate to charter school authorizers a more 
22.20 	comprehensive report containing testing information that contains anonymized data where 
22.21 	cell count data are sufficient to protect student identity and that meets the authorizer's 
22.22 	needs in fulfilling its obligations under section 124D.10.

22.23 	Sec. 10. Minnesota Statutes 2010, section 120B.30, subdivision 4, is amended to read:
22.24 		Subd. 4.Access to tests. Consistent with section 13.34, the commissioner must 
22.25 	adopt and publish a policy to provide public and parental access for review of basic skills 
22.26 	tests, Minnesota Comprehensive Assessments, or any other such statewide test and 
22.27 	assessment which would not compromise the objectivity or fairness of the testing or 
22.28 	examination process. Upon receiving a written request, the commissioner must make 
22.29 	available to parents or guardians a copy of their student's actual responses to the test 
22.30 	questions for their review.

22.31 	Sec. 11. Minnesota Statutes 2010, section 120B.31, subdivision 4, is amended to read:
22.32 		Subd. 4.Statistical adjustments; Student performance data. In developing 
22.33 	policies and assessment processes to hold schools and districts accountable for high levels 
23.1 	of academic standards under section 120B.021, the commissioner shall aggregate student 
23.2 	data over time to report student performance and growth levels measured at the school, 
23.3 	school district, and statewide level. When collecting and reporting the performance data, 
23.4 	the commissioner shall: (1) acknowledge the impact of significant demographic factors 
23.5 	such as residential instability, the number of single parent families, parents' level of 
23.6 	education, and parents' income level on school outcomes; and (2) organize and report the 
23.7 	data so that state and local policy makers can understand the educational implications 
23.8 	of changes in districts' demographic profiles over time. Any report the commissioner 
23.9 	disseminates containing summary data on student performance must integrate student 
23.10 	performance and the demographic factors that strongly correlate with that performance.

23.11 	Sec. 12. Minnesota Statutes 2010, section 120B.36, subdivision 1, is amended to read:
23.12 		Subdivision 1.School performance report cards. (a) The commissioner 
23.13 	shall report student academic performance under section 120B.35, subdivision 2; the 
23.14 	percentages of students showing low, medium, and high growth under section 120B.35, 
23.15 	subdivision 3, paragraph (b); school safety and student engagement and connection 
23.16 	under section 120B.35, subdivision 3, paragraph (d); rigorous coursework under section 
23.17 	120B.35, subdivision 3, paragraph (c); two separate student-to-teacher ratios that clearly 
23.18 	indicate the definition of teacher consistent with sections 122A.06 and 122A.15 for 
23.19 	purposes of determining these ratios; staff characteristics excluding salaries; student 
23.20 	enrollment demographics; district mobility; and extracurricular activities. The report also 
23.21 	must indicate a school's adequate yearly progress status, and must not set any designations 
23.22 	applicable to high- and low-performing schools due solely to adequate yearly progress 
23.23 	status.
23.24 	(b) The commissioner shall develop, annually update, and post on the department 
23.25 	Web site school performance report cards.
23.26 	(c) The commissioner must make available performance report cards by the 
23.27 	beginning of each school year.
23.28 	(d) A school or district may appeal its adequate yearly progress status in writing to 
23.29 	the commissioner within 30 days of receiving the notice of its status. The commissioner's 
23.30 	decision to uphold or deny an appeal is final.
23.31 	(e) School performance report card data are nonpublic data under section 13.02, 
23.32 	subdivision 9, until not later than ten days after the appeal procedure described in 
23.33 	paragraph (d) concludes the commissioner publicly releases the data. The department
23.34 	commissioner shall annually post school performance report cards to its the department's
23.35 	public web site no later than September 1, except that in years when the report card 
24.1 	reflects new performance standards, the commissioner shall post the school performance 
24.2 	report cards no later than October 1.

24.3 	Sec. 13. Minnesota Statutes 2010, section 120B.36, subdivision 2, is amended to read:
24.4 		Subd. 2.Adequate yearly progress and other data. All data the department 
24.5 	receives, collects, or creates to determine adequate yearly progress status under Public 
24.6 	Law 107-110, section 1116, set state growth targets, and determine student growth are 
24.7 	nonpublic data under section 13.02, subdivision 9, until not later than ten days after the 
24.8 	appeal procedure described in subdivision 1, paragraph (d), concludes the commissioner 
24.9 	publicly releases the data. Districts must provide parents sufficiently detailed summary 
24.10 	data to permit parents to appeal under Public Law 107-110, section 1116(b)(2). The 
24.11 	department commissioner shall annually post federal adequate yearly progress data and 
24.12 	state student growth data to its the department's public Web site no later than September 
24.13 	1, except that in years when adequate yearly progress reflects new performance standards, 
24.14 	the commissioner shall post federal adequate yearly progress data and state student growth 
24.15 	data no later than October 1.

24.16 	Sec. 14. Minnesota Statutes 2010, section 121A.15, subdivision 8, is amended to read:
24.17 		Subd. 8.Report. The administrator or other person having general control and 
24.18 	supervision of the elementary or secondary school shall file a report with the commissioner 
24.19 	on all persons enrolled in the school. The superintendent of each district shall file a report 
24.20 	with the commissioner for all persons within the district receiving instruction in a home 
24.21 	school in compliance with sections 120A.22 and 120A.24. The parent of persons receiving 
24.22 	instruction in a home school shall submit the statements as required by subdivisions 1, 2, 
24.23 	3, and 4, and 12 to the superintendent of the district in which the person resides by October 
24.24 	1 of each school year the first year of their homeschooling in Minnesota and the grade 7 
24.25 	year. The school report must be prepared on forms developed jointly by the commissioner 
24.26 	of health and the commissioner of education and be distributed to the local districts by the 
24.27 	commissioner of health. The school report must state the number of persons attending the 
24.28 	school, the number of persons who have not been immunized according to subdivision 1 or 
24.29 	2, and the number of persons who received an exemption under subdivision 3, clause (c) 
24.30 	or (d). The school report must be filed with the commissioner of education within 60 days 
24.31 	of the commencement of each new school term. Upon request, a district must be given a 
24.32 	60-day extension for filing the school report. The commissioner of education shall forward 
24.33 	the report, or a copy thereof, to the commissioner of health who shall provide summary 
24.34 	reports to boards of health as defined in section 145A.02, subdivision 2. The administrator 
25.1 	or other person having general control and supervision of the child care facility shall file a 
25.2 	report with the commissioner of human services on all persons enrolled in the child care 
25.3 	facility. The child care facility report must be prepared on forms developed jointly by 
25.4 	the commissioner of health and the commissioner of human services and be distributed 
25.5 	to child care facilities by the commissioner of health. The child care facility report 
25.6 	must state the number of persons enrolled in the facility, the number of persons with no 
25.7 	immunizations, the number of persons who received an exemption under subdivision 3, 
25.8 	clause (c) or (d), and the number of persons with partial or full immunization histories. 
25.9 	The child care facility report must be filed with the commissioner of human services by 
25.10 	November 1 of each year. The commissioner of human services shall forward the report, 
25.11 	or a copy thereof, to the commissioner of health who shall provide summary reports to 
25.12 	boards of health as defined in section 145A.02, subdivision 2. The report required by this 
25.13 	subdivision is not required of a family child care or group family child care facility, for 
25.14 	prekindergarten children enrolled in any elementary or secondary school provided services 
25.15 	according to sections 125A.05 and 125A.06, nor for child care facilities in which at least 
25.16 	75 percent of children in the facility participate on a onetime only or occasional basis to a 
25.17 	maximum of 45 hours per child, per month. 

25.18 	Sec. 15. Minnesota Statutes 2010, section 122A.14, subdivision 3, is amended to read:
25.19 		Subd. 3.Rules for continuing education requirements. The board shall 
25.20 	adopt rules establishing continuing education requirements that promote continuous 
25.21 	improvement and acquisition of new and relevant skills by school administrators. A 
25.22 	retired school principal who serves as a substitute principal or assistant principal for the 
25.23 	same person on a day-to-day basis for no more than 15 consecutive school days is not 
25.24 	subject to continuing education requirements as a condition of serving as a substitute 
25.25 	principal or assistant principal.

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

25.27 	Sec. 16. Minnesota Statutes 2010, section 122A.16, as amended by Laws 2011, chapter 
25.28 	5, section 2, is amended to read:
25.29 	122A.16 HIGHLY QUALIFIED TEACHER DEFINED.
25.30 	(a) A qualified teacher is one holding a valid license, under this chapter, to perform 
25.31 	the particular service for which the teacher is employed in a public school.
25.32 	(b) For the purposes of the federal No Child Left Behind Act, a highly qualified 
25.33 	teacher is one who holds a valid license under this chapter, including under section 
26.1 	122A.245, among other sections, to perform the particular service for which the teacher is 
26.2 	employed in a public school or who meets the requirements of a highly objective uniform 
26.3 	state standard of evaluation (HOUSSE) and is determined by local administrators as 
26.4 	having highly qualified status in accordance with the approved Minnesota highly qualified 
26.5 	plan. Teachers delivering core content instruction must be deemed highly qualified at the 
26.6 	local level and reported to the state via the staff automated reporting system.
26.7 	All Minnesota teachers teaching in a core academic subject area, as defined by the 
26.8 	federal No Child Left Behind Act, in which they are not fully licensed may complete the 
26.9 	following HOUSSE process in the core subject area for which the teacher is requesting 
26.10 	highly qualified status by completing an application, in the form and manner described by 
26.11 	the commissioner, that includes:
26.12 	(1) documentation of student achievement as evidenced by norm-referenced test 
26.13 	results that are objective and psychometrically valid and reliable;
26.14 	(2) evidence of local, state, or national activities, recognition, or awards for 
26.15 	professional contribution to achievement;
26.16 	(3) description of teaching experience in the teachers' core subject area in a public 
26.17 	school under a waiver, variance, limited license or other exception; nonpublic school; and 
26.18 	postsecondary institution;
26.19 	(4) test results from the Praxis II content test;
26.20 	(5) evidence of advanced certification from the National Board for Professional 
26.21 	Teaching Standards;
26.22 	(6) evidence of the successful completion of course work or pedagogy courses; and
26.23 	(7) evidence of the successful completion of high quality professional development 
26.24 	activities.
26.25 	Districts must assign a school administrator to serve as a HOUSSE reviewer to 
26.26 	meet with teachers under this paragraph and, where appropriate, certify the teachers' 
26.27 	applications. Teachers satisfy the definition of highly qualified when the teachers receive 
26.28 	at least 100 of the total number of points used to measure the teachers' content expertise 
26.29 	under clauses (1) to (7). Teachers may acquire up to 50 points only in any one clause (1) 
26.30 	to (7). Teachers may use the HOUSSE process to satisfy the definition of highly qualified 
26.31 	for more than one subject area.
26.32 	(c) Achievement of the HOUSSE criteria is not equivalent to a license. A teacher 
26.33 	must obtain permission from the Board of Teaching in order to teach in a public school.

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

27.1 	Sec. 17. Minnesota Statutes 2010, section 122A.40, subdivision 5, is amended to read:
27.2 		Subd. 5.Probationary period. (a) The first three consecutive years of a teacher's 
27.3 	first teaching experience in Minnesota in a single district is deemed to be a probationary 
27.4 	period of employment, and after completion thereof, the probationary period in each 
27.5 	district in which the teacher is thereafter employed also shall be one year three consecutive 
27.6 	years of teaching experience except that for purposes of this provision, the probationary 
27.7 	period for principals and assistant principals shall be two consecutive years. A school 
27.8 	board may, in its discretion, shorten a three-year probationary period to two years or one 
27.9 	year provided that the teacher has served an initial three-year probationary period in 
27.10 	another district. The school board must adopt a plan for written evaluation of teachers 
27.11 	during the probationary period. Evaluation must occur at least three times periodically 
27.12 	throughout each school year for a teacher performing services on 120 or more school 
27.13 	days, at least two times each year for a teacher performing services on 60 to 119 school 
27.14 	days, and at least one time each year for a teacher performing services on fewer than 
27.15 	60 school days during that school year. Days devoted to parent-teacher conferences, 
27.16 	teachers' workshops, and other staff development opportunities and days on which a 
27.17 	teacher is absent from school must not be included in determining the number of school 
27.18 	days on which a teacher performs services. Except as otherwise provided in paragraph (b), 
27.19 	during the probationary period any annual contract with any teacher may or may not be 
27.20 	renewed as the school board shall see fit. However, the board must give any such teacher 
27.21 	whose contract it declines to renew for the following school year written notice to that 
27.22 	effect before July June 1. If the teacher requests reasons for any nonrenewal of a teaching 
27.23 	contract, the board must give the teacher its reason in writing, including a statement 
27.24 	that appropriate supervision was furnished describing the nature and the extent of such 
27.25 	supervision furnished the teacher during the employment by the board, within ten days 
27.26 	after receiving such request. The school board may, after a hearing held upon due notice, 
27.27 	discharge a teacher during the probationary period for cause, effective immediately, 
27.28 	under section 122A.44.
27.29 	(b) A board must discharge a probationary teacher, effective immediately, upon 
27.30 	receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the teacher's 
27.31 	license has been revoked due to a conviction for child abuse or sexual abuse.
27.32 	(c) A probationary teacher whose first three years of consecutive employment in 
27.33 	a district are interrupted for active military service and who promptly resumes teaching 
27.34 	consistent with federal reemployment timelines for uniformed service personnel under 
27.35 	United States Code, title 38, section 4312(e), is considered to have a consecutive teaching 
27.36 	experience for purposes of paragraph (a).
28.1 	(d) A probationary teacher must complete at least 60 120 days of teaching service 
28.2 	each year during the probationary period. Days devoted to parent-teacher conferences, 
28.3 	teachers' workshops, and other staff development opportunities and days on which a 
28.4 	teacher is absent from school do not count as days of teaching service under this paragraph.

28.5 	EFFECTIVE DATE. This section is effective June 30, 2011, and applies to all 
28.6 	probationary teacher employment contracts ratified or modified after that date.

28.7 	Sec. 18. Minnesota Statutes 2010, section 122A.40, is amended by adding a 
28.8 	subdivision to read:
28.9 		Subd. 8a.Probationary period for principals hired internally. A probationary 
28.10 	period of two school years is required for a licensed teacher employed by the board who is 
28.11 	subsequently employed by the board as a licensed school principal or assistant principal 
28.12 	and an additional probationary period of two years is required for a licensed assistant 
28.13 	principal employed by the board who is subsequently employed by the board as a licensed 
28.14 	principal. A licensed teacher subsequently employed by the board as a licensed school 
28.15 	principal or assistant principal retains the teacher's continuing contract status as a licensed 
28.16 	teacher during the probationary period under this subdivision and has the right to return 
28.17 	to the teacher's previous position or an equivalent position, if available, if the teacher is 
28.18 	not promoted.

28.19 	EFFECTIVE DATE. This section is effective June 30, 2011, and applies to all 
28.20 	contracts for internally hired licensed school principals and assistant principals ratified or 
28.21 	modified after that date.

28.22 	Sec. 19. Minnesota Statutes 2010, section 122A.40, subdivision 11, is amended to read:
28.23 		Subd. 11.Unrequested leave of absence. (a) The board may place on unrequested 
28.24 	leave of absence, without pay or fringe benefits, as many teachers as may be necessary 
28.25 	because of discontinuance of position, lack of pupils, financial limitations, or merger of 
28.26 	classes caused by consolidation of districts. The unrequested leave is effective at the close 
28.27 	of the school year. In placing teachers on unrequested leave, the board may exempt from 
28.28 	the effects of paragraphs (b) to (g) those teachers who teach in a Montessori or a language 
28.29 	immersion program, provide instruction in an advanced placement course, or hold a 
28.30 	kindergarten through grade 12 instrumental vocal classroom music license and currently 
28.31 	serve as a choir, band or orchestra director and who, in the superintendent's judgment, 
28.32 	meet a unique need in delivering curriculum. However, within the Montessori or language 
29.1 	immersion program, a teacher must be placed on unrequested leave of absence consistent 
29.2 	with paragraphs (b) to (g).the board is governed by the following provisions:
29.3 	(a) (b) The board may place probationary teachers on unrequested leave first in 
29.4 	the inverse order of their employment. A teacher who has acquired continuing contract 
29.5 	rights must not be placed on unrequested leave of absence while probationary teachers 
29.6 	are retained in positions for which the teacher who has acquired continuing contract 
29.7 	rights is licensed;.
29.8 	(b) (c) Teachers who have acquired continuing contract rights shall be placed on 
29.9 	unrequested leave of absence in fields in which they are licensed in the inverse order 
29.10 	in which they were employed by the school district. In the case of equal seniority, the 
29.11 	order in which teachers who have acquired continuing contract rights shall be placed on 
29.12 	unrequested leave of absence in fields in which they are licensed is negotiable;.
29.13 	(c) (d) Notwithstanding the provisions of clause (b) paragraph (c), a teacher is not 
29.14 	entitled to exercise any seniority when that exercise results in that teacher being retained 
29.15 	by the district in a field for which the teacher holds only a provisional license, as defined 
29.16 	by the board of teaching, unless that exercise of seniority results in the placement on 
29.17 	unrequested leave of absence of another teacher who also holds a provisional license in the 
29.18 	same field. The provisions of this clause do not apply to vocational education licenses;.
29.19 	(d) (e) Notwithstanding clauses (a), (b) and (c) paragraphs (b), (c), and (d), if the 
29.20 	placing of a probationary teacher on unrequested leave before a teacher who has acquired 
29.21 	continuing rights, the placing of a teacher who has acquired continuing contract rights 
29.22 	on unrequested leave before another teacher who has acquired continuing contract rights 
29.23 	but who has greater seniority, or the restriction imposed by the provisions of clause (c)
29.24 	paragraph (d) would place the district in violation of its affirmative action program, 
29.25 	the district may retain the probationary teacher, the teacher with less seniority, or the 
29.26 	provisionally licensed teacher;.
29.27 	(e) (f) Teachers placed on unrequested leave of absence must be reinstated to 
29.28 	the positions from which they have been given leaves of absence or, if not available, 
29.29 	to other available positions in the school district in fields in which they are licensed. 
29.30 	Reinstatement must be in the inverse order of placement on leave of absence. A teacher 
29.31 	must not be reinstated to a position in a field in which the teacher holds only a provisional 
29.32 	license, other than a vocational education license, while another teacher who holds a 
29.33 	nonprovisional license in the same field remains on unrequested leave. The order of 
29.34 	reinstatement of teachers who have equal seniority and who are placed on unrequested 
29.35 	leave in the same school year is negotiable;.
30.1 	(f) (g) Appointment of a new teacher must not be made while there is available, on 
30.2 	unrequested leave, a teacher who is properly licensed to fill such vacancy, unless the 
30.3 	teacher fails to advise the school board within 30 days of the date of notification that a 
30.4 	position is available to that teacher who may return to employment and assume the duties 
30.5 	of the position to which appointed on a future date determined by the board;.
30.6 	(g) (h) A teacher placed on unrequested leave of absence may engage in teaching 
30.7 	or any other occupation during the period of this leave;.
30.8 	(h) (i) The unrequested leave of absence must not impair the continuing contract 
30.9 	rights of a teacher or result in a loss of credit for previous years of service;.
30.10 	(i) (j) The unrequested leave of absence of a teacher who is placed on unrequested 
30.11 	leave of absence and who is not reinstated shall continue for a period of five years, after 
30.12 	which the right to reinstatement shall terminate. The teacher's right to reinstatement shall 
30.13 	also terminate if the teacher fails to file with the board by April 1 of any year a written 
30.14 	statement requesting reinstatement;.
30.15 	(j) (k) The same provisions applicable to terminations of probationary or continuing 
30.16 	contracts in subdivisions 5 and 7 must apply to placement on unrequested leave of 
30.17 	absence;.
30.18 	(k) (l) Nothing in this subdivision shall be construed to impair the rights of teachers 
30.19 	placed on unrequested leave of absence to receive unemployment benefits if otherwise 
30.20 	eligible.

30.21 	EFFECTIVE DATE. This section is effective June 30, 2011, and applies to all 
30.22 	collective bargaining agreements ratified or modified after that date.

30.23 	Sec. 20. Minnesota Statutes 2010, section 122A.41, subdivision 1, is amended to read:
30.24 		Subdivision 1.Words, terms, and phrases. Unless the language or context clearly 
30.25 	indicates that a different meaning is intended, the following words, terms, and phrases, for 
30.26 	the purposes of the following subdivisions in this section shall be defined as follows:
30.27 	(a) Teachers. The term "teacher" includes every person regularly employed, as a 
30.28 	principal, or to give instruction in a classroom, or to superintend or supervise classroom 
30.29 	instruction, or as placement teacher and visiting teacher. Persons regularly employed as 
30.30 	counselors and school librarians shall be covered by these sections as teachers if licensed 
30.31 	as teachers or as school librarians.
30.32 	(b) School board. The term "school board" includes a majority in membership 
30.33 	of any and all boards or official bodies having the care, management, or control over 
30.34 	public schools.
31.1 	(c) Demote. The word "demote" means to reduce in rank or to transfer to a lower 
31.2 	branch of the service or to a position carrying a lower salary or the compensation a person 
31.3 	actually receives in the new position.
31.4 	(d) Nonprovisional license. For purposes of this section, "nonprovisional license" 
31.5 	shall mean an entrance, continuing, or life license.

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

31.7 	Sec. 21. Minnesota Statutes 2010, section 122A.41, subdivision 2, is amended to read:
31.8 		Subd. 2.Probationary period; discharge or demotion. (a) All teachers in 
31.9 	the public schools in cities of the first class during the first three years of consecutive 
31.10 	employment shall be deemed to be in a probationary period of employment during which 
31.11 	period any annual contract with any teacher may, or may not, be renewed as the school 
31.12 	board, after consulting with the peer review committee charged with evaluating the 
31.13 	probationary teachers under subdivision 3, shall see fit. The school site management team 
31.14 	or the school board if there is no school site management team, shall adopt a plan for a 
31.15 	written evaluation of teachers during the probationary period according to subdivision 
31.16 	3. Evaluation by the peer review committee charged with evaluating probationary 
31.17 	teachers under subdivision 3 shall occur at least three times periodically throughout each 
31.18 	school year for a teacher performing services on 120 or more school days, at least two 
31.19 	times each year for a teacher performing services on 60 to 119 school days, and at least 
31.20 	one time each year for a teacher performing services on fewer than 60 school days. Days 
31.21 	devoted to parent-teacher conferences, teachers' workshops, and other staff development 
31.22 	opportunities and days on which a teacher is absent from school shall not be included in 
31.23 	determining the number of school days on which a teacher performs services. The school 
31.24 	board may, during such probationary period, discharge or demote a teacher for any of the 
31.25 	causes as specified in this code. A written statement of the cause of such discharge or 
31.26 	demotion shall be given to the teacher by the school board at least 30 days before such 
31.27 	removal or demotion shall become effective, and the teacher so notified shall have no 
31.28 	right of appeal therefrom.
31.29 	(b) A probationary teacher whose first three years of consecutive employment are 
31.30 	interrupted for active military service and who promptly resumes teaching consistent with 
31.31 	federal reemployment timelines for uniformed service personnel under United States 
31.32 	Code, title 38, section 4312(e), is considered to have a consecutive teaching experience 
31.33 	for purposes of paragraph (a).
31.34 	(c) A probationary teacher must complete at least 60 120 days of teaching service 
31.35 	each year during the probationary period. Days devoted to parent-teacher conferences, 
32.1 	teachers' workshops, and other staff development opportunities and days on which a 
32.2 	teacher is absent from school do not count as days of teaching service under this paragraph.

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

32.4 	Sec. 22. Minnesota Statutes 2010, section 122A.41, subdivision 5a, is amended to read:
32.5 		Subd. 5a.Probationary period for principals hired internally. A board and the 
32.6 	exclusive representative of the school principals in the district may negotiate a plan for A 
32.7 	probationary period of up to two school years is required for licensed teachers employed 
32.8 	by the board who are subsequently employed by the board as a licensed school principal or 
32.9 	assistant principal and an additional probationary period of up to two years is required for 
32.10 	licensed assistant principals employed by the board who are subsequently employed by 
32.11 	the board as a licensed school principal. A licensed teacher subsequently employed by the 
32.12 	board as a licensed school principal or assistant principal retains the teacher's continuing 
32.13 	contract status as a licensed teacher during the probationary period under this subdivision 
32.14 	and has the right to return to the teacher's previous position or an equivalent position, if 
32.15 	available, if the teacher is not promoted.

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

32.17 	Sec. 23. Minnesota Statutes 2010, section 122A.41, subdivision 10, is amended to read:
32.18 		Subd. 10.Decision, when rendered. The hearing must be concluded and a decision 
32.19 	in writing, stating the grounds on which it is based, rendered within 25 days after giving of 
32.20 	such notice. Where the hearing is before a school board the teacher may be discharged 
32.21 	or demoted upon the affirmative vote of a majority of the members of the board. If the 
32.22 	charges, or any of such, are found to be true, the board conducting the hearing must 
32.23 	discharge, demote, or suspend the teacher, as seems to be for the best interest of the school. 
32.24 	A teacher must not be discharged for either of the causes specified in subdivision 6, clause 
32.25 	(3), except during the school year, and then only upon charges filed at least four months 
32.26 	before the close of the school sessions of such school year.

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

32.28 	Sec. 24. Minnesota Statutes 2010, section 122A.41, subdivision 14, is amended to read:
32.29 		Subd. 14.Services terminated by discontinuance or lack of pupils; preference 
32.30 	given. (a) A teacher whose services are terminated on account of discontinuance of 
32.31 	position or lack of pupils must receive first consideration for other positions in the district 
32.32 	for which that teacher is qualified. In the event it becomes necessary to discontinue 
33.1 	one or more positions, in making such discontinuance, teachers must receive first 
33.2 	consideration for other positions in the district for which that teacher is qualified and must 
33.3 	be discontinued in any department in the inverse order in which they were employed, 
33.4 	unless a board and the exclusive representative of teachers in the district negotiate a 
33.5 	plan providing otherwise.
33.6 	(b) The board may exempt from the effects of paragraph (a) those teachers who 
33.7 	teach in a Montessori or a language immersion program or provide instruction in an 
33.8 	advanced placement course and who, in the superintendent's judgment, meet a unique 
33.9 	need in delivering curriculum. However, within the Montessori or language immersion 
33.10 	program, a teacher shall be discontinued based on the inverse order in which the teacher 
33.11 	was employed.
33.12 	(b)(c) Notwithstanding the provisions of clause (a), a teacher is not entitled to 
33.13 	exercise any seniority when that exercise results in that teacher being retained by the 
33.14 	district in a field for which the teacher holds only a provisional license, as defined by the 
33.15 	Board of Teaching, unless that exercise of seniority results in the termination of services, 
33.16 	on account of discontinuance of position or lack of pupils, of another teacher who also 
33.17 	holds a provisional license in the same field. The provisions of this clause do not apply 
33.18 	to vocational education licenses.
33.19 	(c)(d) Notwithstanding the provisions of clause (a), a teacher must not be reinstated 
33.20 	to a position in a field in which the teacher holds only a provisional license, other than a 
33.21 	vocational education license, while another teacher who holds a nonprovisional license in 
33.22 	the same field is available for reinstatement.

33.23 	Sec. 25. Minnesota Statutes 2010, section 123B.143, subdivision 1, is amended to read:
33.24 		Subdivision 1.Contract; duties. All districts maintaining a classified secondary 
33.25 	school must employ a superintendent who shall be an ex officio nonvoting member of the 
33.26 	school board. The authority for selection and employment of a superintendent must be 
33.27 	vested in the board in all cases. An individual employed by a board as a superintendent 
33.28 	shall have an initial employment contract for a period of time no longer than three years 
33.29 	from the date of employment. Any subsequent employment contract must not exceed a 
33.30 	period of three years. A board, at its discretion, may or may not renew an employment 
33.31 	contract. A board must not, by action or inaction, extend the duration of an existing 
33.32 	employment contract. Beginning 365 days prior to the expiration date of an existing 
33.33 	employment contract, a board may negotiate and enter into a subsequent employment 
33.34 	contract to take effect upon the expiration of the existing contract. A subsequent contract 
33.35 	must be contingent upon the employee completing the terms of an existing contract. If a 
34.1 	contract between a board and a superintendent is terminated prior to the date specified in 
34.2 	the contract, the board may not enter into another superintendent contract with that same 
34.3 	individual that has a term that extends beyond the date specified in the terminated contract. 
34.4 	A board may terminate a superintendent during the term of an employment contract for any 
34.5 	of the grounds specified in section 122A.40, subdivision 9 or 13. A superintendent shall 
34.6 	not rely upon an employment contract with a board to assert any other continuing contract 
34.7 	rights in the position of superintendent under section 122A.40. Notwithstanding the 
34.8 	provisions of sections 122A.40, subdivision 10 or 11, 123A.32, 123A.75, or any other law 
34.9 	to the contrary, no individual shall have a right to employment as a superintendent based 
34.10 	on order of employment in any district. If two or more districts enter into an agreement for 
34.11 	the purchase or sharing of the services of a superintendent, the contracting districts have 
34.12 	the absolute right to select one of the individuals employed to serve as superintendent 
34.13 	in one of the contracting districts and no individual has a right to employment as the 
34.14 	superintendent to provide all or part of the services based on order of employment in a 
34.15 	contracting district. The superintendent of a district shall perform the following:
34.16 	(1) visit and supervise the schools in the district, report and make recommendations 
34.17 	about their condition when advisable or on request by the board;
34.18 	(2) recommend to the board employment and dismissal of teachers;
34.19 	(3) annually evaluate each school principal assigned responsibility for supervising 
34.20 	a school building within the district, consistent with section 123B.147, subdivision 3, 
34.21 	paragraph (b);
34.22 	(4) superintend school grading practices and examinations for promotions;
34.23 	(4) (5) make reports required by the commissioner; and
34.24 	(5) (6) perform other duties prescribed by the board.

34.25 	EFFECTIVE DATE. This section is effective for the 2013-2014 school year and 
34.26 	later.

34.27 	Sec. 26. Minnesota Statutes 2010, section 123B.147, subdivision 3, is amended to read:
34.28 		Subd. 3.Duties; evaluation. (a) The principal shall provide administrative, 
34.29 	supervisory, and instructional leadership services, under the supervision of the 
34.30 	superintendent of schools of the district and in accordance with according to  the policies, 
34.31 	rules, and regulations of the  school board of education, for the planning, management, 
34.32 	operation, and evaluation of the education program of the building or buildings to which 
34.33 	the principal is assigned.
34.34 	(b) To enhance a principal's leadership skills and support and improve teaching 
34.35 	practices, school performance, and student achievement, a district must develop and 
35.1 	implement a performance-based system for annually evaluating school principals assigned 
35.2 	to supervise a school building within the district. The evaluation must be designed 
35.3 	to improve teaching and learning by supporting the principal in shaping the school's 
35.4 	professional environment and developing teacher quality, performance, and effectiveness. 
35.5 	The annual evaluation must:
35.6 	(1) support and improve a principal's instructional leadership, organizational 
35.7 	management, and professional development, and strengthen the principal's capacity in the 
35.8 	areas of instruction, supervision, evaluation, and teacher development;
35.9 	(2) include formative and summative evaluations;
35.10 	(3) be consistent with a principal's job description, a district's long-term plans and 
35.11 	goals, and the principal's own professional multiyear growth plans and goals, all of which 
35.12 	must support the principal's leadership behaviors and practices, rigorous curriculum, 
35.13 	school performance, and high-quality instruction;
35.14 	(4) include on-the-job observations and previous evaluations;
35.15 	(5) allow surveys to help identify a principal's effectiveness, leadership skills and 
35.16 	processes, and strengths and weaknesses in exercising leadership in pursuit of school 
35.17 	success;
35.18 	(6) use longitudinal data on student academic growth as an evaluation component 
35.19 	and incorporate district achievement goals and targets; and
35.20 	(7) be linked to professional development that emphasizes improved teaching and 
35.21 	learning, curriculum and instruction, student learning, and a collaborative professional 
35.22 	culture.
35.23 	The provisions of this paragraph are intended to provide districts with sufficient 
35.24 	flexibility to accommodate district needs and goals related to developing, supporting, 
35.25 	and evaluating principals.

35.26 	EFFECTIVE DATE. This section is effective for the 2013-2014 school year and 
35.27 	later.

35.28 	Sec. 27. Minnesota Statutes 2010, section 124D.091, subdivision 2, is amended to read:
35.29 		Subd. 2.Eligibility. A district that offers a concurrent enrollment course according 
35.30 	to an agreement under section 124D.09, subdivision 10, is eligible to receive aid for the 
35.31 	costs of providing postsecondary courses at the high school. Beginning in fiscal year 2011, 
35.32 	districts only are eligible for aid if the college or university concurrent enrollment courses 
35.33 	offered by the district are accredited by the National Alliance of Concurrent Enrollment 
35.34 	Partnership, in the process of being accredited, or are shown by clear evidence to be of 
35.35 	comparable standard to accredited courses, or are technical courses within a recognized 
36.1 	career and technical education program of study approved by the commissioner of 
36.2 	education and the chancellor of the Minnesota State Colleges and Universities.

36.3 	Sec. 28. Minnesota Statutes 2010, section 124D.10, is amended to read:
36.4 	124D.10 CHARTER SCHOOLS.
36.5 		Subdivision 1.Purposes. (a) The purpose of this section is to:
36.6 	(1) improve pupil learning and student achievement;
36.7 	(2) increase learning opportunities for pupils;
36.8 	(3) encourage the use of different and innovative teaching methods;
36.9 	(4) measure learning outcomes and create different and innovative forms of 
36.10 	measuring outcomes;
36.11 	(5) establish new forms of accountability for schools; and
36.12 	(6) create new professional opportunities for teachers, including the opportunity to 
36.13 	be responsible for the learning program at the school site.
36.14 	(b) This section does not provide a means to keep open a school that otherwise would 
36.15 	be closed or to reestablish a school that has been closed. Applicants in these circumstances 
36.16 	bear the burden of proving that conversion to a charter school or establishment of a new 
36.17 	charter school fulfills the purposes specified in this subdivision, independent of the 
36.18 	school's closing a school board decides to close. However, a school board may endorse 
36.19 	or authorize the establishing of a charter school to replace the school the board decided 
36.20 	to close. Applicants seeking a charter under this circumstance must demonstrate to the 
36.21 	authorizer that the charter sought is substantially different in purpose and program from 
36.22 	the school the board closed and that the proposed charter satisfies the requirements of this 
36.23 	subdivision. If the school board that closed the school authorizes the charter, it must 
36.24 	document in its affidavit to the commissioner that the charter is substantially different in 
36.25 	program and purpose from the school it closed.
36.26 	An authorizer shall not approve an application submitted by a charter school 
36.27 	developer under subdivision 4, paragraph (a), if the application does not comply with this 
36.28 	subdivision. The commissioner shall not approve an affidavit submitted by an authorizer 
36.29 	under subdivision 4, paragraph (b), if the affidavit does not comply with this subdivision.
36.30 		Subd. 2.Applicability. This section applies only to charter schools formed and 
36.31 	operated under this section.
36.32 		Subd. 3.Authorizer. (a) For purposes of this section, the terms defined in this 
36.33 	subdivision have the meanings given them.
37.1 	"Application" to receive approval as an authorizer means the proposal an eligible 
37.2 	authorizer submits to the commissioner under paragraph (c) before that authorizer is able 
37.3 	to submit any affidavit to charter to a school.
37.4 	"Application" under subdivision 4 means the charter school business plan a 
37.5 	school developer submits to an authorizer for approval to establish a charter school that 
37.6 	documents the school developer's mission statement, school purposes, program design, 
37.7 	financial plan, governance and management structure, and background and experience, 
37.8 	plus any other information the authorizer requests. The application also shall include a 
37.9 	"statement of assurances" of legal compliance prescribed by the commissioner.
37.10 	"Affidavit" means a written statement the authorizer submits to the commissioner 
37.11 	for approval to establish a charter school under subdivision 4 attesting to its review and 
37.12 	approval process before chartering a school.
37.13 	"Affidavit" means the form an authorizer submits to the commissioner that is a 
37.14 	precondition to a charter school organizing an affiliated nonprofit building corporation 
37.15 	under subdivision 17a.
37.16 	(b) The following organizations may authorize one or more charter schools:
37.17 	(1) a school board; intermediate school district school board; education district 
37.18 	organized under sections 123A.15 to 123A.19;
37.19 	(2) a charitable organization under section 501(c)(3) of the Internal Revenue Code 
37.20 	of 1986, excluding a nonpublic sectarian or religious institution, any person other than a 
37.21 	natural person that directly or indirectly, through one or more intermediaries, controls, 
37.22 	is controlled by, or is under common control with the nonpublic sectarian or religious 
37.23 	institution, and any other charitable organization under this clause that in the federal IRS 
37.24 	Form 1023, Part IV, describes activities indicating a religious purpose, that:
37.25 	(i) is a member of the Minnesota Council of Nonprofits or the Minnesota Council on 
37.26 	Foundations;
37.27 	(ii) is registered with the attorney general's office; and
37.28 	(iii) reports an end-of-year fund balance of at least $2,000,000; and
37.29 	(iv) is incorporated in the state of Minnesota and has been operating continuously 
37.30 	for at least five years but does not operate a charter school;
37.31 	(3) a Minnesota private college, notwithstanding clause (2), that grants two- or 
37.32 	four-year degrees and is registered with the Minnesota Office of Higher Education under 
37.33 	chapter 136A; community college, state university, or technical college governed by the 
37.34 	Board of Trustees of the Minnesota State Colleges and Universities; or the University of 
37.35 	Minnesota; or
38.1 	(4) a nonprofit corporation subject to chapter 317A, described in section 317A.905, 
38.2 	and exempt from federal income tax under section 501(c)(6) of the Internal Revenue Code 
38.3 	of 1986, may authorize one or more charter schools if the charter school has operated 
38.4 	for at least three years under a different authorizer and if the nonprofit corporation has 
38.5 	existed for at least 25 years.
38.6 	(5) no more than three single-purpose authorizers that are charitable, nonsectarian 
38.7 	organizations formed under section 501(c)(3) of the Internal Revenue Code of 1986 and 
38.8 	incorporated in the state of Minnesota whose sole purpose is to charter schools. Eligible 
38.9 	organizations interested in being approved as an authorizer under this paragraph must 
38.10 	submit a proposal to the commissioner that includes the provisions of paragraph (c) and 
38.11 	a five-year financial plan. Such authorizers shall consider and approve applications 
38.12 	using the criteria provided in subdivision 4 and shall not limit the applications it solicits, 
38.13 	considers, or approves to any single curriculum, learning program, or method.
38.14 	(c) An eligible authorizer under this subdivision must apply to the commissioner for 
38.15 	approval as an authorizer before submitting any affidavit to the commissioner to charter 
38.16 	a school. The application for approval as a charter school authorizer must demonstrate 
38.17 	the applicant's ability to implement the procedures and satisfy the criteria for chartering a 
38.18 	school under this section. The commissioner must approve or disapprove an application 
38.19 	within 60 45 business days of the application deadline. If the commissioner disapproves 
38.20 	the application, the commissioner must notify the applicant of the specific deficiencies 
38.21 	in writing and the applicant then has 20 business days to address the deficiencies to the 
38.22 	commissioner's satisfaction. After the 20 business days expire, the commissioner has 15 
38.23 	business days to make a final decision to approve or disapprove the application. Failing to 
38.24 	address the deficiencies to the commissioner's satisfaction makes an applicant ineligible to 
38.25 	be an authorizer. The commissioner, in establishing criteria for approval, must consider 
38.26 	the applicant's:
38.27 	(1) capacity and infrastructure;
38.28 	(2) application criteria and process;
38.29 	(3) contracting process;
38.30 	(4) ongoing oversight and evaluation processes; and
38.31 	(5) renewal criteria and processes.
38.32 	(d) The affidavit to be submitted to and evaluated by An applicant must include in 
38.33 	its application to the commissioner must include to be an approved authorizer at least 
38.34 	the following:
38.35 	(1) how chartering schools is a way for the organization to carry out its mission;
39.1 	(2) a description of the capacity of the organization to serve as an authorizer, 
39.2 	including the personnel who will perform the authorizing duties, their qualifications, the 
39.3 	amount of time they will be assigned to this responsibility, and the financial resources 
39.4 	allocated by the organization to this responsibility;
39.5 	(3) a description of the application and review process the authorizer will use to make 
39.6 	decisions regarding the granting of charters, which will include at least the following:
39.7 	(i) how the statutory purposes defined in subdivision 1 are addressed;
39.8 	(ii) the mission, goals, program model, and student performance expectations;
39.9 	(iii) an evaluation plan for the school that includes criteria for evaluating educational, 
39.10 	organizational, and fiscal plans;
39.11 	(iv) the school's governance plan;
39.12 	(v) the financial management plan; and
39.13 	(vi) the administration and operations plan;
39.14 	(4) a description of the type of contract it will arrange with the schools it charters 
39.15 	that meets the provisions of subdivision 6 and defines the rights and responsibilities of the 
39.16 	charter school for governing its educational program, controlling its funds, and making 
39.17 	school management decisions;
39.18 	(5) the process to be used for providing ongoing oversight of the school consistent 
39.19 	with the contract expectations specified in clause (4) that assures that the schools chartered 
39.20 	are complying with both the provisions of applicable law and rules, and with the contract;
39.21 	(6) a description of the criteria and process the authorizer will use to grant expanded 
39.22 	applications under subdivision 4, paragraph (j);
39.23 	(7) the process for making decisions regarding the renewal or termination of 
39.24 	the school's charter based on evidence that demonstrates the academic, organizational, 
39.25 	and financial competency of the school, including its success in increasing student 
39.26 	achievement and meeting the goals of the charter school agreement; and
39.27 	(7) (8) an assurance specifying that the organization is committed to serving as 
39.28 	an authorizer for the full five-year term.
39.29 	(e) A disapproved applicant under this paragraph section may resubmit an 
39.30 	application during a future application period.
39.31 	(f) If the governing board of an approved authorizer that has chartered multiple 
39.32 	schools votes to withdraw as an approved authorizer for a reason unrelated to any 
39.33 	cause under subdivision 23, the authorizer must notify all its chartered schools and the 
39.34 	commissioner in writing by July 15 of its intent to withdraw as an authorizer on June 30 in 
39.35 	the next calendar year. The commissioner may approve the transfer of a charter school 
40.1 	to a new authorizer under this paragraph after the new authorizer submits an affidavit to 
40.2 	the commissioner.
40.3 	(e) (g) The authorizer must participate in department-approved training.
40.4 	(f) (h) An authorizer that chartered a school before August 1, 2009, must apply by 
40.5 	June 30, 2011, to the commissioner for approval, under paragraph (c), to continue as an 
40.6 	authorizer under this section. For purposes of this paragraph, an authorizer that fails to 
40.7 	submit a timely application is ineligible to charter a school.
40.8 	(g) (i) The commissioner shall review an authorizer's performance every five years 
40.9 	in a manner and form determined by the commissioner and may review an authorizer's 
40.10 	performance more frequently at the commissioner's own initiative or at the request of a 
40.11 	charter school operator, charter school board member, or other interested party. The 
40.12 	commissioner, after completing the review, shall transmit a report with findings to the 
40.13 	authorizer. If, consistent with this section, the commissioner finds that an authorizer has 
40.14 	not fulfilled the requirements of this section, the commissioner may subject the authorizer 
40.15 	to corrective action, which may include terminating the contract with the charter school 
40.16 	board of directors of a school it chartered. The commissioner must notify the authorizer 
40.17 	in writing of any findings that may subject the authorizer to corrective action and 
40.18 	the authorizer then has 15 business days to request an informal hearing before the 
40.19 	commissioner takes corrective action. If the commissioner terminates a contract between 
40.20 	an authorizer and a charter school under this paragraph, the commissioner may assist the 
40.21 	charter school in acquiring a new authorizer.
40.22 	(h) (j) The commissioner may at any time take corrective action against an 
40.23 	authorizer, including terminating an authorizer's ability to charter a school for:
40.24 	(1) failing to demonstrate the criteria under paragraph (c) under which the 
40.25 	commissioner approved the authorizer;
40.26 	(2) violating a term of the chartering contract between the authorizer and the charter 
40.27 	school board of directors; or
40.28 	(3) unsatisfactory performance as an approved authorizer; or
40.29 	(4) any good cause shown that provides the commissioner a legally sufficient reason 
40.30 	to take corrective action against an authorizer.
40.31 		Subd. 4.Formation of school. (a) An authorizer, after receiving an application from 
40.32 	a school developer, may charter a licensed teacher under section 122A.18, subdivision 
40.33 	1, or a group of individuals that includes one or more licensed teachers under section 
40.34 	122A.18, subdivision 1, to operate a school subject to the commissioner's approval of the 
40.35 	authorizer's affidavit under paragraph (b). The school must be organized and operated 
40.36 	as a cooperative under chapter 308A or nonprofit corporation under chapter 317A and 
41.1 	the provisions under the applicable chapter shall apply to the school except as provided 
41.2 	in this section.
41.3 	Notwithstanding sections 465.717 and 465.719, a school district, subject to this 
41.4 	section and section 124D.11, may create a corporation for the purpose of establishing a 
41.5 	charter school.
41.6 	(b) Before the operators may establish and operate a school, the authorizer must file 
41.7 	an affidavit with the commissioner stating its intent to charter a school. An authorizer 
41.8 	must file a separate affidavit for each school it intends to charter. The affidavit must 
41.9 	state the terms and conditions under which the authorizer would charter a school and 
41.10 	how the authorizer intends to oversee the fiscal and student performance of the charter 
41.11 	school and to comply with the terms of the written contract between the authorizer 
41.12 	and the charter school board of directors under subdivision 6. The commissioner must 
41.13 	approve or disapprove the authorizer's affidavit within 60 business days of receipt of the 
41.14 	affidavit. If the commissioner disapproves the affidavit, the commissioner shall notify 
41.15 	the authorizer of the deficiencies in the affidavit and the authorizer then has 20 business 
41.16 	days to address the deficiencies. If the authorizer does not address deficiencies to the 
41.17 	commissioner's satisfaction, the commissioner's disapproval is final. Failure to obtain 
41.18 	commissioner approval precludes an authorizer from chartering the school that is the 
41.19 	subject of this affidavit.
41.20 	(c) The authorizer may prevent an approved charter school from opening for 
41.21 	operation if, among other grounds, the charter school violates this section or does not meet 
41.22 	the ready-to-open standards that are part of the authorizer's oversight and evaluation 
41.23 	process or are stipulated in the charter school contract.
41.24 	(d) The operators authorized to organize and operate a school, before entering into a 
41.25 	contract or other agreement for professional or other services, goods, or facilities, must 
41.26 	incorporate as a cooperative under chapter 308A or as a nonprofit corporation under 
41.27 	chapter 317A and must establish a board of directors composed of at least five members 
41.28 	who are not related parties until a timely election for members of the ongoing charter 
41.29 	school board of directors is held according to the school's articles and bylaws under 
41.30 	paragraph (f). A charter school board of directors must be composed of at least five 
41.31 	members who are not related parties. Staff members employed at the school, including 
41.32 	teachers providing instruction under a contract with a cooperative, and all parents or legal 
41.33 	guardians of children enrolled in the school are the voters eligible to elect the members 
41.34 	of the school's board of directors. A charter school must notify eligible voters of the 
41.35 	school board election dates at least 30 days before the election. Board of director meetings 
41.36 	must comply with chapter 13D.
42.1 	(e) Upon the request of an individual, the charter school must make available in 
42.2 	a timely fashion the minutes of meetings of the board of directors, and of members 
42.3 	and committees having any board-delegated authority; financial statements showing all 
42.4 	operations and transactions affecting income, surplus, and deficit during the school's last 
42.5 	annual accounting period; and a balance sheet summarizing assets and liabilities on the 
42.6 	closing date of the accounting period. A charter school also must post on its official Web 
42.7 	site information identifying its authorizer and indicate how to contact that authorizer and 
42.8 	include that same information about its authorizer in other school materials that it makes 
42.9 	available to the public.
42.10 	(f) Every charter school board member shall attend department-approved ongoing
42.11 	training throughout the member's term on board governance, including training on the 
42.12 	board's role and responsibilities, employment policies and practices, and financial 
42.13 	management. A board member who does not begin the required initial training within six 
42.14 	months of after being seated and complete the required that training within 12 months of 
42.15 	being seated on the board is ineligible to continue to serve as a board member.
42.16 	(g) The ongoing board must be elected before the school completes its third year 
42.17 	of operation. Board elections must be held at a time during a time when the school is in 
42.18 	session year but may not be conducted on days when the school is closed for holidays 
42.19 	or vacations. The charter school board of directors shall be composed of at least five 
42.20 	nonrelated members and include: (i) at least one licensed teacher employed at the 
42.21 	school or a licensed teacher providing instruction under a contact contract between the 
42.22 	charter school and a cooperative; (ii) the parent or legal guardian of a student enrolled in 
42.23 	the charter school who is not an employee of the charter school; and (iii) an interested 
42.24 	community member who is not employed by the charter school and does not have a child 
42.25 	enrolled in the school. The board may be a teacher majority board composed of teachers 
42.26 	described in this paragraph. The chief financial officer and the chief administrator are may 
42.27 	only serve as ex-officio nonvoting board members and may not serve as a voting member 
42.28 	of the board. Charter school employees shall not serve on the board unless item (i) applies. 
42.29 	Contractors providing facilities, goods, or services to a charter school shall not serve on 
42.30 	the board of directors of the charter school. Board bylaws shall outline the process and 
42.31 	procedures for changing the board's governance model, consistent with chapter 317A. A 
42.32 	board may change its governance model only:
42.33 	(1) by a majority vote of the board of directors and the licensed teachers employed 
42.34 	by the school, including licensed teachers providing instruction under a contract between 
42.35 	the school and a cooperative; and
42.36 	(2) with the authorizer's approval.
43.1 	Any change in board governance must conform with the board structure established 
43.2 	under this paragraph.
43.3 	(h) The granting or renewal of a charter by an authorizer must not be conditioned 
43.4 	upon the bargaining unit status of the employees of the school.
43.5 	(i) The granting or renewal of a charter school by an authorizer must not be 
43.6 	contingent on the charter school being required to contract, lease, or purchase services 
43.7 	from the authorizer. Any potential contract, lease, or purchase of service from an 
43.8 	authorizer must be disclosed to the commissioner, accepted through an open bidding 
43.9 	process, and be a separate contract from the charter contract. The school must document 
43.10 	the open bidding process. An authorizer must not enter into a contract to provide 
43.11 	management and financial services for a school that it authorizes, unless the school 
43.12 	documents that it received at least two competitive bids.
43.13 	(j) An authorizer may permit the board of directors of a charter school to expand 
43.14 	the operation of the charter school to additional sites or to add additional grades at the 
43.15 	school beyond those described in the authorizer's original affidavit as approved by 
43.16 	the commissioner only after submitting a supplemental affidavit for approval to the 
43.17 	commissioner in a form and manner prescribed by the commissioner. The supplemental 
43.18 	affidavit must show document that:
43.19 	(1) the expansion proposed by the charter school is supported by expansion plan 
43.20 	demonstrates need and projected enrollment;
43.21 	(2) the charter school expansion is warranted, at a minimum, by longitudinal data 
43.22 	demonstrating students' improved academic performance and growth on statewide 
43.23 	assessments under chapter 120B;
43.24 	(3) the charter school is fiscally financially sound and has the financial capacity the 
43.25 	financing needed to implement the proposed expansion exists; and
43.26 	(4) the authorizer finds that the charter school has the governance structure and 
43.27 	management capacity to carry out its expansion.
43.28 	(k) The commissioner shall have 30 business days to review and comment on the 
43.29 	supplemental affidavit. The commissioner shall notify the authorizer of any deficiencies in 
43.30 	the supplemental affidavit and the authorizer then has 30 20 business days to address, to 
43.31 	the commissioner's satisfaction, any deficiencies in the supplemental affidavit. The school 
43.32 	may not expand grades or add sites until the commissioner has approved the supplemental 
43.33 	affidavit. The commissioner's approval or disapproval of a supplemental affidavit is final.
43.34 		Subd. 4a.Conflict of interest. (a) An individual is prohibited from serving as a 
43.35 	member of the charter school board of directors if the individual, an immediate family 
43.36 	member, or the individual's partner is an owner, employee or agent of, or a contractor 
44.1 	with a for-profit or nonprofit entity or individual with whom the charter school contracts, 
44.2 	directly or indirectly, for professional services, goods, or facilities. A violation of this 
44.3 	prohibition renders a contract voidable at the option of the commissioner or the charter 
44.4 	school board of directors. A member of a charter school board of directors who violates 
44.5 	this prohibition is individually liable to the charter school for any damage caused by 
44.6 	the violation.
44.7 	(b) No member of the board of directors, employee, officer, or agent of a charter 
44.8 	school shall participate in selecting, awarding, or administering a contract if a conflict 
44.9 	of interest exists. A conflict exists when:
44.10 	(1) the board member, employee, officer, or agent;
44.11 	(2) the immediate family of the board member, employee, officer, or agent;
44.12 	(3) the partner of the board member, employee, officer, or agent; or
44.13 	(4) an organization that employs, or is about to employ any individual in clauses 
44.14 	(1) to (3),
44.15 	has a financial or other interest in the entity with which the charter school is contracting. 
44.16 	A violation of this prohibition renders the contract void.
44.17 	(c) Any employee, agent, or board member of the authorizer who participates 
44.18 	in the initial review, approval, ongoing oversight, evaluation, or the charter renewal or 
44.19 	nonrenewal process or decision is ineligible to serve on the board of directors of a school 
44.20 	chartered by that authorizer.
44.21 	(d) An individual may serve as a member of the board of directors if no conflict of 
44.22 	interest under paragraph (a) exists.
44.23 	(e) The conflict of interest provisions under this subdivision do not apply to 
44.24 	compensation paid to a teacher employed by the charter school who also serves as a 
44.25 	member of the board of directors.
44.26 	(f) The conflict of interest provisions under this subdivision do not apply to a teacher 
44.27 	who provides services to a charter school through a cooperative formed under chapter 
44.28 	308A when the teacher also serves on the charter school board of directors.
44.29 		Subd. 5.Conversion of existing schools. A board of an independent or special 
44.30 	school district may convert one or more of its existing schools to charter schools under 
44.31 	this section if 60 percent of the full-time teachers at the school sign a petition seeking 
44.32 	conversion. The conversion must occur at the beginning of an academic year.
44.33 		Subd. 6.Charter contract. The authorization for a charter school must be in the 
44.34 	form of a written contract signed by the authorizer and the board of directors of the charter 
44.35 	school. The contract must be completed within 45 business days of the commissioner's 
44.36 	approval of the authorizer's affidavit. The authorizer shall submit to the commissioner a 
45.1 	copy of the signed charter contract within ten business days of its execution. The contract 
45.2 	for a charter school must be in writing and contain at least the following:
45.3 	(1) a declaration of the purposes in subdivision 1 that the school intends to carry out 
45.4 	and how the school will report its implementation of those purposes;
45.5 	(2) a description of the school program and the specific academic and nonacademic 
45.6 	outcomes that pupils must achieve;
45.7 	(3) a statement of admission policies and procedures;
45.8 	(4) a governance, management, and administration plan for the school;
45.9 	(5) signed agreements from charter school board members to comply with all 
45.10 	federal and state laws governing organizational, programmatic, and financial requirements 
45.11 	applicable to charter schools;
45.12 	(6) the criteria, processes, and procedures that the authorizer will use for ongoing 
45.13 	oversight of operational, financial, and academic performance;
45.14 	(7) the performance evaluation that is a prerequisite for reviewing a charter contract 
45.15 	under subdivision 15;
45.16 	(8) types and amounts of insurance liability coverage to be obtained by the charter 
45.17 	school;
45.18 	(9) consistent with subdivision 25, paragraph (d), a provision to indemnify and hold 
45.19 	harmless the authorizer and its officers, agents, and employees from any suit, claim, or 
45.20 	liability arising from any operation of the charter school, and the commissioner, and 
45.21 	department officers, agents, and employees notwithstanding section 3.736;
45.22 	(10) the term of the initial contract, which may be up to three years for an initial 
45.23 	contract plus an additional preoperational planning year, and up to five years for a renewed 
45.24 	contract or a contract with a new authorizer after a transfer of authorizers,  if warranted by 
45.25 	the school's academic, financial, and operational performance;
45.26 	(10) (11) how the board of directors or the operators of the charter school will 
45.27 	provide special instruction and services for children with a disability under sections 
45.28 	125A.03 to 125A.24, and 125A.65, a description of the financial parameters within 
45.29 	which the charter school will operate to provide the special instruction and services to 
45.30 	children with a disability;
45.31 	(11) (12) the process and criteria the authorizer intends to use to monitor and 
45.32 	evaluate the fiscal and student performance of the charter school, consistent with 
45.33 	subdivision 15; and
45.34 	(12) (13) the plan for an orderly closing of the school under chapter 308A or 317A, 
45.35 	if the closure is a termination for cause, a voluntary termination, or a nonrenewal of 
45.36 	the contract, and that includes establishing the responsibilities of the school board of 
46.1 	directors and the authorizer and notifying the commissioner, authorizer, school district in 
46.2 	which the charter school is located, and parents of enrolled students about the closure, 
46.3 	the transfer of student records to students' resident districts, and procedures for closing 
46.4 	financial operations.
46.5 		Subd. 6a.Audit report. (a) The charter school must submit an audit report to the 
46.6 	commissioner and its authorizer by December 31 each year.
46.7 	(b) The charter school, with the assistance of the auditor conducting the audit, must 
46.8 	include with the report a copy of all charter school agreements for corporate management 
46.9 	services. If the entity that provides the professional services to the charter school is 
46.10 	exempt from taxation under section 501 of the Internal Revenue Code of 1986, that entity 
46.11 	must file with the commissioner by February 15 a copy of the annual return required under 
46.12 	section 6033 of the Internal Revenue Code of 1986.
46.13 	(c) If the commissioner receives an audit report indicating finds that a material 
46.14 	weakness exists in the financial reporting systems of a charter school, the charter school 
46.15 	must submit a written report to the commissioner explaining how the material weakness 
46.16 	will be resolved. An auditor, as a condition of providing financial services to a charter 
46.17 	school, must agree to make available information about a charter school's financial audit 
46.18 	to the commissioner and authorizer upon request.
46.19 		Subd. 7.Public status; exemption from statutes and rules. A charter school is 
46.20 	a public school and is part of the state's system of public education. A charter school is 
46.21 	exempt from all statutes and rules applicable to a school, school board, or school district 
46.22 	unless a statute or rule is made specifically applicable to a charter school or is included 
46.23 	in this section.
46.24 		Subd. 8.Federal, state, and local requirements. (a) A charter school shall meet all 
46.25 	federal, state, and local health and safety requirements applicable to school districts.
46.26 	(b) A school must comply with statewide accountability requirements governing 
46.27 	standards and assessments in chapter 120B.
46.28 	(c) A school authorized by a school board may be located in any district, unless the 
46.29 	school board of the district of the proposed location disapproves by written resolution.
46.30 	(d) A charter school must be nonsectarian in its programs, admission policies, 
46.31 	employment practices, and all other operations. An authorizer may not authorize a charter 
46.32 	school or program that is affiliated with a nonpublic sectarian school or a religious 
46.33 	institution. A charter school student must be released for religious instruction, consistent 
46.34 	with section 120A.22, subdivision 12, clause (3).
46.35 	(e) Charter schools must not be used as a method of providing education or 
46.36 	generating revenue for students who are being home-schooled.
47.1 	(f) The primary focus of a charter school must be to provide a comprehensive 
47.2 	program of instruction for at least one grade or age group from five through 18 years 
47.3 	of age. Instruction may be provided to people younger than five years and older than 
47.4 	18 years of age.
47.5 	(g) A charter school may not charge tuition.
47.6 	(h) A charter school is subject to and must comply with chapter 363A and section 
47.7 	121A.04.
47.8 	(i) A charter school is subject to and must comply with the Pupil Fair Dismissal 
47.9 	Act, sections 121A.40 to 121A.56, and the Minnesota Public School Fee Law, sections 
47.10 	123B.34 to 123B.39.
47.11 	(j) A charter school is subject to the same financial audits, audit procedures, and 
47.12 	audit requirements as a district. Audits must be conducted in compliance with generally 
47.13 	accepted governmental auditing standards, the federal Single Audit Act, if applicable, 
47.14 	and section 6.65. A charter school is subject to and must comply with sections 15.054; 
47.15 	118A.01; 118A.02; 118A.03; 118A.04; 118A.05; 118A.06; 471.38; 471.391; 471.392; and 
47.16 	471.425. The audit must comply with the requirements of sections 123B.75 to 123B.83, 
47.17 	except to the extent deviations are necessary because of the program at the school. 
47.18 	Deviations must be approved by the commissioner and authorizer. The Department of 
47.19 	Education, state auditor, legislative auditor, or authorizer may conduct financial, program, 
47.20 	or compliance audits. A charter school determined to be in statutory operating debt under 
47.21 	sections 123B.81 to 123B.83 must submit a plan under section 123B.81, subdivision 4.
47.22 	(k) A charter school is a district for the purposes of tort liability under chapter 466.
47.23 	(l) A charter school must comply with chapters 13 and 13D; and sections 120A.22, 
47.24 	subdivision 7; 121A.75; and 260B.171, subdivisions 3 and 5.
47.25 	(m) A charter school is subject to the Pledge of Allegiance requirement under 
47.26 	section 121A.11, subdivision 3.
47.27 	(n) A charter school offering online courses or programs must comply with section 
47.28 	124D.095.
47.29 	(o) A charter school and charter school board of directors are subject to chapter 181.
47.30 	(p) A charter school must comply with section 120A.22, subdivision 7, governing 
47.31 	the transfer of students' educational records and sections 138.163 and 138.17 governing 
47.32 	the management of local records.
47.33 	(q) A charter school that provides early childhood health and developmental 
47.34 	screening must comply with sections 121A.16 to 121A.19.
48.1 		Subd. 8a.Aid reduction. The commissioner may reduce a charter school's state aid 
48.2 	under section 127A.42 or 127A.43 if the charter school board fails to correct a violation 
48.3 	under this section.
48.4 		Subd. 8b.Aid reduction for violations. The commissioner may reduce a charter 
48.5 	school's state aid by an amount not to exceed 60 percent of the charter school's basic 
48.6 	revenue for the period of time that a violation of law occurs.
48.7 		Subd. 9.Admission requirements. A charter school may limit admission to:
48.8 	(1) pupils within an age group or grade level;
48.9 	(2) pupils who are eligible to participate in the graduation incentives program under 
48.10 	section 124D.68; or
48.11 	(3) residents of a specific geographic area in which the school is located when the 
48.12 	majority of students served by the school are members of underserved populations.
48.13 	A charter school shall enroll an eligible pupil who submits a timely application, 
48.14 	unless the number of applications exceeds the capacity of a program, class, grade level, or 
48.15 	building. In this case, pupils must be accepted by lot. The charter school must develop 
48.16 	and publish a lottery policy and process that it must use when accepting pupils by lot.
48.17 	A charter school shall give enrollment preference for enrollment to a sibling of an 
48.18 	enrolled pupil and to a foster child of that pupil's parents and may give preference for 
48.19 	enrolling children of the school's teachersstaff before accepting other pupils by lot.
48.20 	A charter school may not limit admission to pupils on the basis of intellectual ability, 
48.21 	measures of achievement or aptitude, or athletic ability and may not establish any criteria 
48.22 	or requirements for admission that are inconsistent with this subdivision.
48.23 	The charter school shall not distribute any services or goods of value to students, 
48.24 	parents, or guardians as an inducement, term, or condition of enrolling a student in a 
48.25 	charter school.
48.26 		Subd. 10.Pupil performance. A charter school must design its programs to at 
48.27 	least meet the outcomes adopted by the commissioner for public school students. In 
48.28 	the absence of the commissioner's requirements, the school must meet the outcomes 
48.29 	contained in the contract with the authorizer. The achievement levels of the outcomes 
48.30 	contained in the contract may exceed the achievement levels of any outcomes adopted by 
48.31 	the commissioner for public school students.
48.32 		Subd. 11.Employment and other operating matters. (a) A charter school must 
48.33 	employ or contract with necessary teachers, as defined by section 122A.15, subdivision 1, 
48.34 	who hold valid licenses to perform the particular service for which they are employed in 
48.35 	the school. The charter school's state aid may be reduced under section 127A.43 if the 
48.36 	school employs a teacher who is not appropriately licensed or approved by the board of 
49.1 	teaching. The school may employ necessary employees who are not required to hold 
49.2 	teaching licenses to perform duties other than teaching and may contract for other services. 
49.3 	The school may discharge teachers and nonlicensed employees. The charter school board 
49.4 	is subject to section 181.932. When offering employment to a prospective employee, a 
49.5 	charter school must give that employee a written description of the terms and conditions 
49.6 	of employment and the school's personnel policies.
49.7 	(b) A person, without holding a valid administrator's license, may perform 
49.8 	administrative, supervisory, or instructional leadership duties. The board of directors shall 
49.9 	establish qualifications for persons that hold administrative, supervisory, or instructional 
49.10 	leadership roles. The qualifications shall include at least the following areas: instruction 
49.11 	and assessment; human resource and personnel management; financial management; 
49.12 	legal and compliance management; effective communication; and board, authorizer, and 
49.13 	community relationships. The board of directors shall use those qualifications as the basis 
49.14 	for job descriptions, hiring, and performance evaluations of those who hold administrative, 
49.15 	supervisory, or instructional leadership roles. The board of directors and an individual 
49.16 	who does not hold a valid administrative license and who serves in an administrative, 
49.17 	supervisory, or instructional leadership position shall develop a professional development 
49.18 	plan. Documentation of the implementation of the professional development plan of these 
49.19 	persons shall be included in the school's annual report.
49.20 	(c) The board of directors also shall decide matters related to the operation of the 
49.21 	school, including budgeting, curriculum and operating procedures.
49.22 		Subd. 12.Pupils with a disability. A charter school must comply with sections 
49.23 	125A.02, 125A.03 to 125A.24, and 125A.65 and rules relating to the education of pupils 
49.24 	with a disability as though it were a district.
49.25 		Subd. 13.Length of school year. A charter school must provide instruction 
49.26 	each year for at least the number of days required by section 120A.41. It may provide 
49.27 	instruction throughout the year according to sections 124D.12 to 124D.127 or 124D.128.
49.28 		Subd. 14.Annual public reports. A charter school must publish an annual report 
49.29 	approved by the board of directors. The annual report must at least include information 
49.30 	on school enrollment, student attrition, governance and management, staffing, finances, 
49.31 	academic performance, operational performance, innovative practices and implementation, 
49.32 	and future plans. A charter school must distribute the annual report by publication, mail, 
49.33 	or electronic means to the commissioner, authorizer, school employees, and parents and 
49.34 	legal guardians of students enrolled in the charter school and must also post the report on 
49.35 	the charter school's official Web site. The reports are public data under chapter 13.
50.1 		Subd. 15.Review and comment. (a) The authorizer shall provide a formal written 
50.2 	evaluation of the school's performance before the authorizer renews the charter contract. 
50.3 	The department must review and comment on the authorizer's evaluation process at the 
50.4 	time the authorizer submits its application for approval and each time the authorizer 
50.5 	undergoes its five-year review under subdivision 3, paragraph (e).
50.6 	(b) An authorizer shall monitor and evaluate the fiscal, operational, and student 
50.7 	performance of the school, and may for this purpose annually assess a charter school 
50.8 	a fee according to paragraph (c). The agreed-upon fee structure must be stated in the 
50.9 	charter school contract.
50.10 	(c) The fee that each charter school pays to an authorizer each year is the greater of:
50.11 	(1) the basic formula allowance for that year; or
50.12 	(2) the lesser of:
50.13 	(i) the maximum fee factor times the basic formula allowance for that year; or
50.14 	(ii) the fee factor times the basic formula allowance for that year times the charter 
50.15 	school's adjusted marginal cost pupil units for that year. The fee factor equals .005 in fiscal 
50.16 	year 2010, .01 in fiscal year 2011, .013 in fiscal year 2012, and .015 in fiscal years 2013 
50.17 	and later. The maximum fee factor equals 1.5 in fiscal year 2010, 2.0 in fiscal year 2011, 
50.18 	3.0 in fiscal year 2012, and 4.0 in fiscal years 2013 and later.
50.19 	(d) The department and any charter school it charters must not assess or pay a fee 
50.20 	under paragraphs (b) and (c).
50.21 	(e) For the preoperational planning period, the authorizer may assess a charter school 
50.22 	a fee equal to the basic formula allowance.
50.23 	(f) By September 30 of each year, an authorizer shall submit to the commissioner 
50.24 	a statement of expenditures related to chartering activities during the previous school 
50.25 	year ending June 30. A copy of the statement shall be given to all schools chartered by 
50.26 	the authorizer.
50.27 		Subd. 16.Transportation. (a) A charter school after its first fiscal year of operation 
50.28 	by March 1 of each fiscal year and a charter school by July 1 of its first fiscal year of 
50.29 	operation must notify the district in which the school is located and the Department of 
50.30 	Education if it will provide its own transportation or use the transportation services of the 
50.31 	district in which it is located for the fiscal year.
50.32 	(b) If a charter school elects to provide transportation for pupils, the transportation 
50.33 	must be provided by the charter school within the district in which the charter school is 
50.34 	located. The state must pay transportation aid to the charter school according to section 
50.35 	124D.11, subdivision 2.
51.1 	For pupils who reside outside the district in which the charter school is located, the 
51.2 	charter school is not required to provide or pay for transportation between the pupil's 
51.3 	residence and the border of the district in which the charter school is located. A parent 
51.4 	may be reimbursed by the charter school for costs of transportation from the pupil's 
51.5 	residence to the border of the district in which the charter school is located if the pupil is 
51.6 	from a family whose income is at or below the poverty level, as determined by the federal 
51.7 	government. The reimbursement may not exceed the pupil's actual cost of transportation 
51.8 	or 15 cents per mile traveled, whichever is less. Reimbursement may not be paid for 
51.9 	more than 250 miles per week.
51.10 	At the time a pupil enrolls in a charter school, the charter school must provide the 
51.11 	parent or guardian with information regarding the transportation.
51.12 	(c) If a charter school does not elect to provide transportation, transportation for 
51.13 	pupils enrolled at the school must be provided by the district in which the school is 
51.14 	located, according to sections 123B.88, subdivision 6, and 124D.03, subdivision 8, for a 
51.15 	pupil residing in the same district in which the charter school is located. Transportation 
51.16 	may be provided by the district in which the school is located, according to sections 
51.17 	123B.88, subdivision 6, and 124D.03, subdivision 8, for a pupil residing in a different 
51.18 	district. If the district provides the transportation, the scheduling of routes, manner and 
51.19 	method of transportation, control and discipline of the pupils, and any other matter relating 
51.20 	to the transportation of pupils under this paragraph shall be within the sole discretion, 
51.21 	control, and management of the district.
51.22 		Subd. 17.Leased space. A charter school may lease space from an independent 
51.23 	or special school board eligible to be an authorizer, other public organization, private, 
51.24 	nonprofit nonsectarian organization, private property owner, or a sectarian organization 
51.25 	if the leased space is constructed as a school facility. The department must review and 
51.26 	approve or disapprove leases in a timely manner.
51.27 		Subd. 17a.Affiliated nonprofit building corporation. (a) Before a charter school 
51.28 	may organize an affiliated nonprofit building corporation (i) to renovate or purchase an 
51.29 	existing facility to serve as a school or (ii) to construct a new school facility, an authorizer 
51.30 	must submit an affidavit to the commissioner for approval in the form and manner the 
51.31 	commissioner prescribes, and consistent with paragraphs (b) and (c) or (d).
51.32 	(b) An affiliated nonprofit building corporation under this subdivision must:
51.33 	(1) be incorporated under section 317A and comply with applicable Internal 
51.34 	Revenue Service regulations;
51.35 	(2) submit to the commissioner each fiscal year a list of current board members 
51.36 	and a copy of its annual audit; and
52.1 	(3) comply with government data practices law under chapter 13.
52.2 	An affiliated nonprofit building corporation must not serve as the leasing agent for 
52.3 	property or facilities it does not own. A charter school that leases a facility from an 
52.4 	affiliated nonprofit building corporation that does not own the leased facility is ineligible 
52.5 	to receive charter school lease aid. The state is immune from liability resulting from a 
52.6 	contract between a charter school and an affiliated nonprofit building corporation.
52.7 	(c) A charter school may organize an affiliated nonprofit building corporation to 
52.8 	renovate or purchase an existing facility to serve as a school if the charter school:
52.9 	(1) has been operating for at least five consecutive school years and the school's 
52.10 	charter has been renewed for a five-year term;
52.11 	(2) has had a net positive unreserved general fund balance as of June 30 in the 
52.12 	preceding five fiscal years;
52.13 	(3) has a long-range strategic and financial plan;
52.14 	(4) completes a feasibility study of available buildings; and
52.15 	(5) documents sustainable enrollment projections and the need to use an affiliated 
52.16 	building corporation to renovate or purchase an existing facility to serve as a school.
52.17 	(d) A charter school may organize an affiliated nonprofit building corporation to 
52.18 	construct a new school facility if the charter school:
52.19 	(1) demonstrates the lack of facilities available to serve as a school;
52.20 	(2) has been operating for at least eight consecutive school years;
52.21 	(3) has had a net positive unreserved general fund balance as of June 30 in the 
52.22 	preceding eight fiscal years;
52.23 	(4) completes a feasibility study of facility options;
52.24 	(5) has a long-range strategic and financial plan that includes sustainable enrollment 
52.25 	projections and demonstrates the need for constructing a new school facility; and
52.26 	(6) has a positive review and comment from the commissioner under section 
52.27 	123B.71.
52.28 		Subd. 19.Disseminate information. (a) The authorizer, the operators, and the 
52.29 	department must disseminate information to the public on how to form and operate 
52.30 	a charter school. Charter schools must disseminate information about how to use 
52.31 	the offerings of a charter school. Targeted groups include low-income families and 
52.32 	communities, students of color, and students who are at risk of academic failure.
52.33 	(b) Authorizers, operators, and the department also may disseminate information 
52.34 	about the successful best practices in teaching and learning demonstrated by charter 
52.35 	schools.
53.1 		Subd. 20.Leave to teach in a charter school. If a teacher employed by a district 
53.2 	makes a written request for an extended leave of absence to teach at a charter school, 
53.3 	the district must grant the leave. The district must grant a leave not to exceed a total of 
53.4 	five years. Any request to extend the leave shall be granted only at the discretion of the 
53.5 	school board. The district may require that the request for a leave or extension of leave 
53.6 	be made before February 1 in the school year preceding the school year in which the 
53.7 	teacher intends to leave, or February 1 of the calendar year in which the teacher's leave is 
53.8 	scheduled to terminate. Except as otherwise provided in this subdivision and except for 
53.9 	section 122A.46, subdivision 7, the leave is governed by section 122A.46, including, but 
53.10 	not limited to, reinstatement, notice of intention to return, seniority, salary, and insurance.
53.11 	During a leave, the teacher may continue to aggregate benefits and credits in the 
53.12 	Teachers' Retirement Association account under chapters 354 and 354A, consistent with 
53.13 	subdivision 22.
53.14 		Subd. 21.Collective bargaining. Employees of the board of directors of a charter 
53.15 	school may, if otherwise eligible, organize under chapter 179A and comply with its 
53.16 	provisions. The board of directors of a charter school is a public employer, for the 
53.17 	purposes of chapter 179A, upon formation of one or more bargaining units at the school. 
53.18 	Bargaining units at the school must be separate from any other units within an authorizing 
53.19 	district, except that bargaining units may remain part of the appropriate unit within an 
53.20 	authorizing district, if the employees of the school, the board of directors of the school, 
53.21 	the exclusive representative of the appropriate unit in the authorizing district, and the 
53.22 	board of the authorizing district agree to include the employees in the appropriate unit of 
53.23 	the authorizing district.
53.24 		Subd. 22.Teacher and other employee retirement. (a) Teachers in a charter 
53.25 	school must be public school teachers for the purposes of chapters 354 and 354a.
53.26 	(b) Except for teachers under paragraph (a), employees in a charter school must be 
53.27 	public employees for the purposes of chapter 353.
53.28 		Subd. 23.Causes for nonrenewal or termination of charter school contract. (a) 
53.29 	The duration of the contract with an authorizer must be for the term contained in the 
53.30 	contract according to subdivision 6. The authorizer may or may not renew a contract at 
53.31 	the end of the term for any ground listed in paragraph (b). An authorizer may unilaterally 
53.32 	terminate a contract during the term of the contract for any ground listed in paragraph (b). 
53.33 	At least 60 business days before not renewing or terminating a contract, the authorizer 
53.34 	shall notify the board of directors of the charter school of the proposed action in writing. 
53.35 	The notice shall state the grounds for the proposed action in reasonable detail and that the 
53.36 	charter school's board of directors may request in writing an informal hearing before the 
54.1 	authorizer within 15 business days of receiving notice of nonrenewal or termination of 
54.2 	the contract. Failure by the board of directors to make a written request for a an informal
54.3 	hearing within the 15-business-day period shall be treated as acquiescence to the proposed 
54.4 	action. Upon receiving a timely written request for a hearing, the authorizer shall give ten 
54.5 	business days' notice to the charter school's board of directors of the hearing date. The 
54.6 	authorizer shall conduct an informal hearing before taking final action. The authorizer 
54.7 	shall take final action to renew or not renew a contract no later than 20 business days 
54.8 	before the proposed date for terminating the contract or the end date of the contract.
54.9 	(b) A contract may be terminated or not renewed upon any of the following grounds:
54.10 	(1) failure to meet the requirements for pupil performance contained in the contract;
54.11 	(2) failure to meet generally accepted standards of fiscal management;
54.12 	(3) violations of law; or
54.13 	(4) other good cause shown.
54.14 	If a contract is terminated or not renewed under this paragraph, the school must be 
54.15 	dissolved according to the applicable provisions of chapter 308A or 317A.
54.16 	(c) If the authorizer and the charter school board of directors mutually agree to 
54.17 	terminate or not renew the contract, a change in transfer of authorizers is allowed if the 
54.18 	commissioner approves the transfer to a different eligible authorizer to authorize the 
54.19 	charter school. Both parties must jointly submit their intent in writing to the commissioner 
54.20 	to mutually terminate the contract. The authorizer that is a party to the existing contract 
54.21 	at least must inform the approved different eligible proposed authorizer about the fiscal 
54.22 	and operational status and student performance of the school. Before the commissioner 
54.23 	determines whether to approve a transfer of authorizer, the commissioner first proposed 
54.24 	authorizer must determine whether the charter school and prospective new authorizer can 
54.25 	identify and effectively resolve those circumstances causing the previous authorizer and 
54.26 	the charter school to mutually agree to terminate the contract identify any outstanding 
54.27 	issues in the proposed charter contract that were unresolved in the previous charter 
54.28 	contract and have the charter school agree to resolve those issues. If no transfer of 
54.29 	authorizer is approved, the school must be dissolved according to applicable law and 
54.30 	the terms of the contract.
54.31 	(d) The commissioner, after providing reasonable notice to the board of directors of 
54.32 	a charter school and the existing authorizer, and after providing an opportunity for a public 
54.33 	hearing, may terminate the existing contract between the authorizer and the charter school 
54.34 	board if the charter school has a history of:
54.35 	(1) failure to meet pupil performance requirements contained in the contract
54.36 	consistent with state law;
55.1 	(2) financial mismanagement or failure to meet generally accepted standards of 
55.2 	fiscal management; or
55.3 	(3) repeated or major violations of the law.
55.4 	(e) If the commissioner terminates a charter school contract under subdivision 3, 
55.5 	paragraph (g), the commissioner shall provide the charter school with information about 
55.6 	other eligible authorizers.
55.7 		Subd. 23a.Related party lease costs. (a) A charter school is prohibited from 
55.8 	entering a lease of real property with a related party unless the lessor is a nonprofit 
55.9 	corporation under chapter 317A or a cooperative under chapter 308A, and the lease cost is 
55.10 	reasonable under section 124D.11, subdivision 4, clause (1).
55.11 	(b) For purposes of this section and section 124D.11:
55.12 	(1) "related party" means an affiliate or immediate relative of the other party in 
55.13 	question, an affiliate of an immediate relative, or an immediate relative of an affiliate;
55.14 	(2) "affiliate" means a person that directly or indirectly, through one or more 
55.15 	intermediaries, controls, is controlled by, or is under common control with another person;
55.16 	(3) "immediate family" means an individual whose relationship by blood, marriage, 
55.17 	adoption, or partnering is no more remote than first cousin;
55.18 	(4) "person" means an individual or entity of any kind; and
55.19 	(5) "control" means the ability to affect the management, operations, or policy 
55.20 	actions or decisions of a person, whether through ownership of voting securities, by 
55.21 	contract, or otherwise.
55.22 	(c) A lease of real property to be used for a charter school, not excluded in paragraph 
55.23 	(a), must contain the following statement: "This lease is subject to Minnesota Statutes, 
55.24 	section 124D.10, subdivision 23a."
55.25 	(d) If a charter school enters into as lessee a lease with a related party and the 
55.26 	charter school subsequently closes, the commissioner has the right to recover from the 
55.27 	lessor any lease payments in excess of those that are reasonable under section 124D.11, 
55.28 	subdivision 4, clause (1).
55.29 		Subd. 24.Pupil enrollment upon nonrenewal or termination of charter school 
55.30 	contract. If a contract is not renewed or is terminated according to subdivision 23, a 
55.31 	pupil who attended the school, siblings of the pupil, or another pupil who resides in the 
55.32 	same place as the pupil may enroll in the resident district or may submit an application 
55.33 	to a nonresident district according to section 124D.03 at any time. Applications and 
55.34 	notices required by section 124D.03 must be processed and provided in a prompt manner. 
55.35 	The application and notice deadlines in section 124D.03 do not apply under these 
55.36 	circumstances. The closed charter school must transfer the student's educational records 
56.1 	within ten business days of closure to the student's school district of residence where the 
56.2 	records must be retained or transferred under section 120A.22, subdivision 7.
56.3 		Subd. 25.Extent of specific legal authority. (a) The board of directors of a charter 
56.4 	school may sue and be sued.
56.5 	(b) The board may not levy taxes or issue bonds.
56.6 	(c) The commissioner, an authorizer, members of the board of an authorizer in 
56.7 	their official capacity, and employees of an authorizer are immune from civil or criminal 
56.8 	liability with respect to all activities related to a charter school they approve or authorize. 
56.9 	The board of directors shall obtain at least the amount of and types of insurance up to the 
56.10 	applicable tort liability limits under chapter 466. The charter school board must submit 
56.11 	a copy of the insurance policy to its authorizer and the commissioner before starting 
56.12 	operations. The charter school board must submit changes in its insurance carrier or policy 
56.13 	to its authorizer and the commissioner within 20 business days of the change. 
56.14 	(d) Notwithstanding section 3.736, the charter school shall assume full liability 
56.15 	for its activities and indemnify and hold harmless the commissioner and the authorizer, 
56.16 	and the officers, agents, and employees of the department and authorizer from any suit, 
56.17 	claim, or liability arising from any operation of the charter school. A charter school is not 
56.18 	required to indemnify or hold harmless a state employee if the state would not be required 
56.19 	to indemnify and hold the employee harmless under section 3.736, subdivision 9.

56.20 	Sec. 29. Minnesota Statutes 2010, section 124D.11, subdivision 9, is amended to read:
56.21 		Subd. 9.Payment of aids to charter schools. (a) Notwithstanding section 127A.45, 
56.22 	subdivision 3, aid payments for the current fiscal year to a charter school shall be of an 
56.23 	equal amount on each of the 24 payment dates.
56.24 	(b) Notwithstanding paragraph (a) and section 127A.45, for a charter school ceasing 
56.25 	operation on or prior to June 30 of a school year, for the payment periods occurring after 
56.26 	the school ceases serving students, the commissioner shall withhold the estimated state aid 
56.27 	owed the school. The charter school board of directors and authorizer must submit to the 
56.28 	commissioner a closure plan under chapter 308A or 317A, and financial information about 
56.29 	the school's liabilities and assets. After receiving the closure plan, financial information, 
56.30 	an audit of pupil counts, documentation of lease expenditures, and monitoring of special 
56.31 	education expenditures, the commissioner may release cash withheld and may continue 
56.32 	regular payments up to the current year payment percentages if further amounts are 
56.33 	owed. If, based on audits and monitoring, the school received state aid in excess of the 
56.34 	amount owed, the commissioner shall retain aid withheld sufficient to eliminate the aid 
56.35 	overpayment. For a charter school ceasing operations prior to, or at the end of, a school 
57.1 	year, notwithstanding section 127A.45, subdivision 3, preliminary final payments may 
57.2 	be made after receiving the closure plan, audit of pupil counts, monitoring of special 
57.3 	education expenditures, documentation of lease expenditures, and school submission of 
57.4 	Uniform Financial Accounting and Reporting Standards (UFARS) financial data for the 
57.5 	final year of operation. Final payment may be made upon receipt of audited financial 
57.6 	statements under section 123B.77, subdivision 3.
57.7 	(c) If a charter school fails to comply with the commissioner's directive to return, 
57.8 	for cause, federal or state funds administered by the department, the commissioner may 
57.9 	withhold an amount of state aid sufficient to satisfy the directive.
57.10 	(d) If, within the timeline under section 471.425, a charter school fails to pay the state 
57.11 	of Minnesota, a school district, intermediate school district, or service cooperative after 
57.12 	receiving an undisputed invoice for goods and services, the commissioner may withhold 
57.13 	an amount of state aid sufficient to satisfy the claim and shall distribute the withheld 
57.14 	aid to the interested state agency, school district, intermediate school district, or service 
57.15 	cooperative. An interested state agency, school district, intermediate school district, or 
57.16 	education cooperative shall notify the commissioner when a charter school fails to pay an 
57.17 	undisputed invoice within 75 business days of when it received the original invoice.
57.18 	(e) Notwithstanding section 127A.45, subdivision 3, and paragraph (a), 80 percent 
57.19 	of the start-up cost aid under subdivision 8 shall be paid within 45 days after the first day 
57.20 	of student attendance for that school year.
57.21 	(f) In order to receive state aid payments under this subdivision, a charter school in 
57.22 	its first three years of operation must submit a school calendar in the form and manner 
57.23 	requested by the department and a quarterly report to the Department of Education. The 
57.24 	report must list each student by grade, show the student's start and end dates, if any, 
57.25 	with the charter school, and for any student participating in a learning year program, 
57.26 	the report must list the hours and times of learning year activities. The report must be 
57.27 	submitted not more than two weeks after the end of the calendar quarter to the department. 
57.28 	The department must develop a Web-based reporting form for charter schools to use 
57.29 	when submitting enrollment reports. A charter school in its fourth and subsequent year of 
57.30 	operation must submit a school calendar and enrollment information to the department in 
57.31 	the form and manner requested by the department.
57.32 	(g) Notwithstanding sections 317A.701 to 317A.791, upon closure of a charter 
57.33 	school and satisfaction of creditors, cash and investment balances remaining shall be 
57.34 	returned to the state.
58.1 	(h) A charter school must have a valid, signed contract under section 124D.10, 
58.2 	subdivision 6, on file at the Department of Education at least 15 days prior to the date of 
58.3 	first payment of state aid for the fiscal year.
58.4 	(i) State aid entitlements shall be computed for a charter school only for the 
58.5 	portion of a school year for which it has a valid, signed contract under section 124D.10, 
58.6 	subdivision 6.

58.7 	Sec. 30. Minnesota Statutes 2010, section 124D.19, subdivision 3, is amended to read:
58.8 		Subd. 3.Community education director. (a) Except as provided under paragraphs 
58.9 	(b) and (c), each board shall employ a licensed community education director. The board 
58.10 	shall submit the name of the person who is serving as director of community education 
58.11 	under this section on the district's annual community education report to the commissioner.
58.12 	(b) A board may apply to the Minnesota Board of School Administrators under 
58.13 	Minnesota Rules, part 3512.3500, subpart 9, for authority to use an individual who is not 
58.14 	licensed as a community education director.
58.15 	(c) A board of a district with a total population of 2,0006,000 or less may identify 
58.16 	an employee who holds a valid Minnesota principal or superintendent license under 
58.17 	Minnesota Rules, chapter 3512, to serve as director of community education. To be 
58.18 	eligible for an exception under this paragraph, the board shall certify in writing to the 
58.19 	commissioner that the district has not placed a licensed director of community education 
58.20 	on unrequested leave. A principal serving as a community education director under this 
58.21 	paragraph on June 1, 2011, may continue to serve in that capacity.

58.22 	Sec. 31. Minnesota Statutes 2010, section 124D.36, is amended to read:
58.23 	124D.36 CITATION; MINNESOTA YOUTHWORKS SERVEMINNESOTA 
58.24 	INNOVATION ACT.
58.25 	Sections 124D.37 to 124D.45 shall be cited as the "Minnesota Youthworks
58.26 	ServeMinnesota Innovation Act." 

58.27 	Sec. 32. Minnesota Statutes 2010, section 124D.37, is amended to read:
58.28 	124D.37 PURPOSE OF MINNESOTA YOUTHWORKSSERVEMINNESOTA 
58.29 	INNOVATION ACT.
58.30 	The purposes of sections 124D.37 to 124D.45 are to:
58.31 	(1) renew the ethic of civic responsibility in Minnesota;
58.32 	(2) empower youth to improve their life opportunities through literacy, job 
58.33 	placement, and other essential skills;
59.1 	(3) empower government to meet its responsibility to prepare young people to be 
59.2 	contributing members of society;
59.3 	(4) help meet human, educational, environmental, and public safety needs, 
59.4 	particularly those needs relating to poverty;
59.5 	(5) prepare a citizenry that is academically competent, ready for work, and socially 
59.6 	responsible;
59.7 	(6) demonstrate the connection between youth and community service, community 
59.8 	service and education, and education and meaningful opportunities in the business 
59.9 	community;
59.10 	(7) demonstrate the connection between providing opportunities for at-risk youth 
59.11 	and reducing crime rates and the social costs of troubled youth;
59.12 	(8) create linkages for a comprehensive youth service and learning program in 
59.13 	Minnesota including school age programs, higher education programs, youth work 
59.14 	programs, and service corps programs; and
59.15 	(9) coordinate federal and state activities that advance the purposes in this section.

59.16 	Sec. 33. Minnesota Statutes 2010, section 124D.38, subdivision 3, is amended to read:
59.17 		Subd. 3.Federal law. "Federal law" means Public Law 101-610 111-13, as 
59.18 	amended, or any other federal law or program assisting youth community service, 
59.19 	work-based learning, or youth transition from school to work.

59.20 	Sec. 34. Minnesota Statutes 2010, section 124D.385, subdivision 3, is amended to read:
59.21 		Subd. 3.Duties. (a) The commission shall:
59.22 	(1) develop, with the assistance of the governor, the commissioner of education, and 
59.23 	affected state agencies, a comprehensive state plan to provide services under sections 
59.24 	124D.37 to 124D.45 and federal law;
59.25 	(2) actively pursue public and private funding sources for services, including 
59.26 	funding available under federal law;
59.27 	(3) administer the YouthworksServeMinnesota Innovation grant program under 
59.28 	sections 124D.39 to 124D.44, including soliciting and approving grant applications from 
59.29 	eligible organizations, and administering individual postservice benefits;
59.30 	(4) establish an evaluation plan for programs developed and services provided 
59.31 	under sections 124D.37 to 124D.45;
59.32 	(5) report to the governor, commissioner of education, and legislature; and
59.33 	(6) administer the federal AmeriCorps Program.
60.1 	(b) Nothing in sections 124D.37 to 124D.45 precludes an organization from 
60.2 	independently seeking public or private funding to accomplish purposes similar to those 
60.3 	described in paragraph (a).

60.4 	Sec. 35. Minnesota Statutes 2010, section 124D.39, is amended to read:
60.5 	124D.39 YOUTHWORKS SERVEMINNESOTA INNOVATION PROGRAM.
60.6 	The Youthworks ServeMinnesota Innovation program is established to provide 
60.7 	funding for the commission to leverage federal and private funding to fulfill the purposes 
60.8 	of section 124D.37. The Youthworks ServeMinnesota Innovation program must 
60.9 	supplement existing programs and services. The program must not displace existing 
60.10 	programs and services, existing funding of programs or services, or existing employment 
60.11 	and employment opportunities. No eligible organization may terminate, layoff, or reduce 
60.12 	the hours of work of an employee to place or hire a program participant. No eligible 
60.13 	organization may place or hire an individual for a project if an employee is on layoff from 
60.14 	the same or a substantially equivalent position. 

60.15 	Sec. 36. Minnesota Statutes 2010, section 124D.40, is amended to read:
60.16 	124D.40 YOUTHWORKS SERVEMINNESOTA INNOVATION GRANTS.
60.17 		Subdivision 1.Application. An eligible organization interested in receiving a 
60.18 	grant under sections 124D.39 to 124D.44 may prepare and submit an application to the 
60.19 	commission. As part of the grant application process, the commission must establish 
60.20 	and publish grant application guidelines that: (1) are consistent with this subdivision, 
60.21 	section 124D.37, and Public Law 111-13; (2) include criteria for reviewing an applicant's 
60.22 	cost-benefit analysis; and (3) require grantees to use research-based measures of program 
60.23 	outcomes to generate valid and reliable data that are available to the commission for 
60.24 	evaluation and public reporting purposes.
60.25 		Subd. 2.Grant authority. The commission must use any state appropriation and 
60.26 	any available federal funds, including any grant received under federal law, to award 
60.27 	grants to establish programs for Youthworks ServeMinnesota Innovation. At least one 
60.28 	grant each must be available for a metropolitan proposal, a rural proposal, and a statewide 
60.29 	proposal. If a portion of the suburban metropolitan area is not included in the metropolitan 
60.30 	grant proposal, the statewide grant proposal must incorporate at least one suburban 
60.31 	metropolitan area. In awarding grants, the commission may select at least one residential 
60.32 	proposal and one nonresidential proposal.

60.33 	Sec. 37. Minnesota Statutes 2010, section 124D.42, subdivision 6, is amended to read:
61.1 		Subd. 6.Program training. The commission must, within available resources:
61.2 	(1) orient each grantee organization in the nature, philosophy, and purpose of the 
61.3 	program; and
61.4 	(2) build an ethic of community service through general community service 
61.5 	training.; and
61.6 	(3) provide guidance on integrating performance-based measurement into program 
61.7 	models.

61.8 	Sec. 38. Minnesota Statutes 2010, section 124D.42, subdivision 8, is amended to read:
61.9 		Subd. 8.Minnesota reading corps program. (a) A Minnesota reading corps 
61.10 	program is established to provide Americorps ServeMinnesota Innovation members with a 
61.11 	data-based problem-solving model of literacy instruction to use in helping to train local 
61.12 	Head Start program providers, other prekindergarten program providers, and staff in 
61.13 	schools with students in kindergarten through grade 3 to evaluate and teach early literacy 
61.14 	skills to children age 3 to grade 3.
61.15 	(b) Literacy programs under this subdivision must comply with the provisions 
61.16 	governing literacy program goals and data use under section 119A.50, subdivision 3, 
61.17 	paragraph (b).
61.18 	(c) The commission must submit a biennial report to the legislature that records 
61.19 	and evaluates literacy program data to determine the efficacy of the programs under this 
61.20 	subdivision.

61.21 	Sec. 39. Minnesota Statutes 2010, section 124D.44, is amended to read:
61.22 	124D.44 MATCH REQUIREMENTS.
61.23 	Youthworks ServeMinnesota Innovation grant funds must be used for the living 
61.24 	allowance, cost of employer taxes under sections 3111 and 3301 of the Internal Revenue 
61.25 	Code of 1986, workers' compensation coverage, health benefits, training, and evaluation
61.26 	for each program participant, and administrative expenses, which must not exceed 
61.27 	five seven percent of total program costs. Youthworks grant funds may also be used to 
61.28 	supplement applicant resources to fund postservice benefits for program participants.
61.29 	Applicant resources, from sources and in a form determined by the commission, must 
61.30 	be used to provide for all other program costs, including the portion of the applicant's 
61.31 	obligation for postservice benefits that is not covered by state or federal grant funds and 
61.32 	such costs as supplies, materials, transportation, and salaries and benefits of those staff 
61.33 	directly involved in the operation, internal monitoring, and evaluation of the program.

62.1 	Sec. 40. Minnesota Statutes 2010, section 124D.45, subdivision 2, is amended to read:
62.2 		Subd. 2.Interim report. The commission must report semiannually annually to the 
62.3 	legislature with interim recommendations to change the program.

62.4 	Sec. 41. Minnesota Statutes 2010, section 124D.52, subdivision 7, is amended to read:
62.5 		Subd. 7.Performance tracking system. (a) By July 1, 2000, each approved adult 
62.6 	basic education program must develop and implement a performance tracking system to 
62.7 	provide information necessary to comply with federal law and serve as one means of 
62.8 	assessing the effectiveness of adult basic education programs. For required reporting, 
62.9 	longitudinal studies, and program improvement, the tracking system must be designed to 
62.10 	collect data on the following core outcomes for learners who have completed participation
62.11 	participating in the adult basic education program:
62.12 	(1) demonstrated improvements in literacy skill levels in reading, writing, speaking 
62.13 	the English language, numeracy, problem solving, English language acquisition, and 
62.14 	other literacy skills;
62.15 	(2) placement in, retention in, or completion of postsecondary education, training, 
62.16 	unsubsidized employment, or career advancement; and
62.17 	(3) receipt of a secondary school diploma or its recognized equivalent; and
62.18 	(4) reduction in participation in the diversionary work program, Minnesota family 
62.19 	investment program, and food support education and training program.
62.20 	(b) A district, group of districts, state agency, or private nonprofit organization 
62.21 	providing an adult basic education program may meet this requirement by developing a 
62.22 	tracking system based on either or both of the following methodologies:
62.23 	(1) conducting a reliable follow-up survey; or
62.24 	(2) submitting student information, including Social Security numbers for data 
62.25 	matching.
62.26 	Data related to obtaining employment must be collected in the first quarter following 
62.27 	program completion or can be collected while the student is enrolled, if known. Data 
62.28 	related to employment retention must be collected in the third quarter following program 
62.29 	exit. Data related to any other specified outcome may be collected at any time during a 
62.30 	program year.
62.31 	(c) When a student in a program is requested to provide the student's Social Security 
62.32 	number, the student must be notified in a written form easily understandable to the student 
62.33 	that:
62.34 	(1) providing the Social Security number is optional and no adverse action may be 
62.35 	taken against the student if the student chooses not to provide the Social Security number;
63.1 	(2) the request is made under section 124D.52, subdivision 7; 
63.2 	(3) if the student provides the Social Security number, it will be used to assess the 
63.3 	effectiveness of the program by tracking the student's subsequent career; and
63.4 	(4) the Social Security number will be shared with the Department of Education; 
63.5 	Minnesota State Colleges and Universities; Office of Higher Education; Department of 
63.6 	Human Services; and the Department of Employment and Economic Development in 
63.7 	order to accomplish the purposes of this section described in paragraph (a) and will not be 
63.8 	used for any other purpose or reported to any other governmental entities.
63.9 	(d) Annually a district, group of districts, state agency, or private nonprofit 
63.10 	organization providing programs under this section must forward the tracking data 
63.11 	collected to the Department of Education. For the purposes of longitudinal studies on the 
63.12 	employment status of former students under this section, the Department of Education 
63.13 	must forward the Social Security numbers to the Department of Employment and 
63.14 	Economic Development to electronically match the Social Security numbers of former 
63.15 	students with wage detail reports filed under section 268.044. The results of data matches 
63.16 	must, for purposes of this section and consistent with the requirements of the United 
63.17 	States Code, title 29, section 2871, of the Workforce Investment Act of 1998, be compiled 
63.18 	in a longitudinal form by the Department of Employment and Economic Development 
63.19 	and released to the Department of Education in the form of summary data that does not 
63.20 	identify the individual students. The Department of Education may release this summary 
63.21 	data. State funding for adult basic education programs must not be based on the number or 
63.22 	percentage of students who decline to provide their Social Security numbers or on whether 
63.23 	the program is evaluated by means of a follow-up survey instead of data matching. 

63.24 	EFFECTIVE DATE. This section is effective the day following final enactment 
63.25 	and applies through the 2020-2021 school year.

63.26 	Sec. 42. Minnesota Statutes 2010, section 171.05, subdivision 2, is amended to read:
63.27 		Subd. 2.Person less than 18 years of age. (a) Notwithstanding any provision 
63.28 	in subdivision 1 to the contrary, the department may issue an instruction permit to an 
63.29 	applicant who is 15, 16, or 17 years of age and who:
63.30 	(1) has completed a course of driver education in another state, has a previously 
63.31 	issued valid license from another state, or is enrolled in either:
63.32 	(i) a public, private, or commercial driver education program that is approved by 
63.33 	the commissioner of public safety and that includes classroom and behind-the-wheel 
63.34 	training; or
64.1 	(ii) an approved behind-the-wheel driver education program when the student is 
64.2 	receiving full-time instruction in a home school within the meaning of sections 120A.22 
64.3 	and 120A.24, the student is working toward a homeschool diploma, the student's status 
64.4 	as a homeschool student has been certified by the superintendent of the school district in 
64.5 	which the student resides, and the student is taking home-classroom driver training with 
64.6 	classroom materials approved by the commissioner of public safety, and the student's 
64.7 	parent has certified the student's homeschool and home-classroom driver training status on 
64.8 	the form approved by the commissioner;
64.9 	(2) has completed the classroom phase of instruction in the driver education program;
64.10 	(3) has passed a test of the applicant's eyesight;
64.11 	(4) has passed a department-administered test of the applicant's knowledge of traffic 
64.12 	laws;
64.13 	(5) has completed the required application, which must be approved by (i) either 
64.14 	parent when both reside in the same household as the minor applicant or, if otherwise, 
64.15 	then (ii) the parent or spouse of the parent having custody or, in the event there is no 
64.16 	court order for custody, then (iii) the parent or spouse of the parent with whom the minor 
64.17 	is living or, if items (i) to (iii) do not apply, then (iv) the guardian having custody of the 
64.18 	minor, (v) the foster parent or the director of the transitional living program in which the 
64.19 	child resides or, in the event a person under the age of 18 has no living father, mother, 
64.20 	or guardian, or is married or otherwise legally emancipated, then (vi) the applicant's 
64.21 	adult spouse, adult close family member, or adult employer; provided, that the approval 
64.22 	required by this clause contains a verification of the age of the applicant and the identity of 
64.23 	the parent, guardian, adult spouse, adult close family member, or adult employer; and
64.24 	(6) has paid the fee required in section 171.06, subdivision 2.
64.25 	(b) For the purposes of determining compliance with the certification in paragraph 
64.26 	(a), clause (1), item (ii), the commissioner may request verification of a student's 
64.27 	homeschool status from the superintendent of the school district in which the student 
64.28 	resides, and the superintendent shall provide that verification.
64.29 	(c) The instruction permit is valid for two years from the date of application and 
64.30 	may be renewed upon payment of a fee equal to the fee for issuance of an instruction 
64.31 	permit under section 171.06, subdivision 2.

64.32 	Sec. 43. Minnesota Statutes 2010, section 171.17, subdivision 1, is amended to read:
64.33 		Subdivision 1.Offenses. (a) The department shall immediately revoke the license 
64.34 	of a driver upon receiving a record of the driver's conviction of:
65.1 	(1) manslaughter resulting from the operation of a motor vehicle or criminal 
65.2 	vehicular homicide or injury under section 609.21;
65.3 	(2) a violation of section 169A.20 or 609.487;
65.4 	(3) a felony in the commission of which a motor vehicle was used;
65.5 	(4) failure to stop and disclose identity and render aid, as required under section 
65.6 	169.09, in the event of a motor vehicle accident, resulting in the death or personal injury 
65.7 	of another;
65.8 	(5) perjury or the making of a false affidavit or statement to the department under 
65.9 	any law relating to the application, ownership, or operation of a motor vehicle, including 
65.10 	on the certification required under section 171.05, subdivision 2, paragraph (a), clause (1), 
65.11 	item (ii), to issue an instruction permit to a homeschool student;
65.12 	(6) except as this section otherwise provides, three charges of violating within a 
65.13 	period of 12 months any of the provisions of chapter 169 or of the rules or municipal 
65.14 	ordinances enacted in conformance with chapter 169, for which the accused may be 
65.15 	punished upon conviction by imprisonment;
65.16 	(7) two or more violations, within five years, of the misdemeanor offense described 
65.17 	in section 169.444, subdivision 2, paragraph (a);
65.18 	(8) the gross misdemeanor offense described in section 169.444, subdivision 2, 
65.19 	paragraph (b);
65.20 	(9) an offense in another state that, if committed in this state, would be grounds for 
65.21 	revoking the driver's license; or
65.22 	(10) a violation of an applicable speed limit by a person driving in excess of 100 
65.23 	miles per hour. The person's license must be revoked for six months for a violation of 
65.24 	this clause, or for a longer minimum period of time applicable under section 169A.53, 
65.25 	169A.54, or 171.174.
65.26 	(b) The department shall immediately revoke the school bus endorsement of a driver 
65.27 	upon receiving a record of the driver's conviction of the misdemeanor offense described in 
65.28 	section 169.443, subdivision 7.

65.29 	Sec. 44. Minnesota Statutes 2010, section 171.22, subdivision 1, is amended to read:
65.30 		Subdivision 1.Violations. With regard to any driver's license, including a 
65.31 	commercial driver's license, it shall be unlawful for any person:
65.32 	(1) to display, cause or permit to be displayed, or have in possession, any fictitious 
65.33 	or fraudulently altered driver's license or Minnesota identification card;
65.34 	(2) to lend the person's driver's license or Minnesota identification card to any other 
65.35 	person or knowingly permit the use thereof by another;
66.1 	(3) to display or represent as one's own any driver's license or Minnesota 
66.2 	identification card not issued to that person;
66.3 	(4) to use a fictitious name or date of birth to any police officer or in any application 
66.4 	for a driver's license or Minnesota identification card, or to knowingly make a false 
66.5 	statement, or to knowingly conceal a material fact, or otherwise commit a fraud in any 
66.6 	such application;
66.7 	(5) to alter any driver's license or Minnesota identification card;
66.8 	(6) to take any part of the driver's license examination for another or to permit 
66.9 	another to take the examination for that person;
66.10 	(7) to make a counterfeit driver's license or Minnesota identification card;
66.11 	(8) to use the name and date of birth of another person to any police officer for the 
66.12 	purpose of falsely identifying oneself to the police officer; or
66.13 	(9) to display as a valid driver's license any canceled, revoked, or suspended driver's 
66.14 	license. A person whose driving privileges have been withdrawn may display a driver's 
66.15 	license only for identification purposes; or
66.16 	(10) to submit a false affidavit or statement to the department on the certification 
66.17 	required under section 171.05, subdivision 2, paragraph (a), clause (1), item (ii), to issue 
66.18 	an instruction permit to a homeschool student.

66.19 	Sec. 45. Laws 2011, chapter 5, section 1, the effective date, is amended to read:

66.20 	EFFECTIVE DATE. This section is effective the day following final enactment 
66.21 	and applies to individuals who complete a teacher preparation program by the end of
66.22 	beginning no later than the 2013-2014 school year or later. The Board of Teaching shall 
66.23 	submit to the kindergarten through grade 12 education finance and reform committees 
66.24 	of the legislature by April 1, 2012, a progress report on its implementation of teacher 
66.25 	performance assessment under paragraph (d).

66.26 	Sec. 46. IMPLEMENTING A PERFORMANCE-BASED EVALUATION 
66.27 	SYSTEM FOR PRINCIPALS.
 66.28 	(a) To implement the requirements of Minnesota Statutes, sections 123B.143, 
66.29 	subdivision 1, clause (3), and 123B.147, subdivision 3, paragraph (b), the commissioner of 
66.30 	education, the Minnesota Association of Secondary School Principals, and the Minnesota 
66.31 	Association of Elementary School Principals must convene a group of recognized and 
66.32 	qualified experts and interested stakeholders, including principals, superintendents, 
66.33 	teachers, school board members, and parents, among other stakeholders, to develop a 
67.1 	performance-based system model for annually evaluating school principals. In developing 
67.2 	the system model, the group must at least consider how principals develop and maintain:
67.3 	(1) high standards for student performance;
67.4 	(2) rigorous curriculum;
67.5 	(3) quality instruction;
67.6 	(4) a culture of learning and professional behavior;
67.7 	(5) connections to external communities;
67.8 	(6) systemic performance accountability; and 
67.9 	(7) leadership behaviors that create effective schools and improve school 
67.10 	performance, including how to plan for, implement, support, advocate for, communicate 
67.11 	about, and monitor continuous and improved learning.
67.12 	The group also may consider whether to establish a multitiered evaluation system 
67.13 	that supports newly licensed principals in becoming highly skilled school leaders and 
67.14 	provides opportunities for advanced learning for more experienced school leaders.
67.15 	(b) The commissioner, the Minnesota Association of Secondary School Principals, 
67.16 	and the Minnesota Association of Elementary School Principals must submit a 
67.17 	written report and all the group's working papers to the education committees of the 
67.18 	legislature by February 1, 2012, discussing the group's responses to paragraph (a) and its 
67.19 	recommendations for a performance-based system model for annually evaluating school 
67.20 	principals. The group convened under this section expires June 1, 2012.

67.21 	EFFECTIVE DATE. This section is effective the day following final enactment 
67.22 	and applies to principal evaluations beginning in the 2013-2014 school year and later.

67.23 	Sec. 47. SCHOOL DISTRICTS' JOINT OPERATION AND INNOVATIVE 
67.24 	DELIVERY OF EDUCATION; PILOT PROJECT.
 67.25 		Subdivision 1.Establishment; requirements for participation. (a) A four-year 
67.26 	pilot project is established to allow groups of school districts to pursue benefits of operating 
67.27 	jointly to deliver innovative education programs and activities and share resources.
67.28 	(b) To participate in this pilot project, a group of three or more school districts, 
67.29 	after consulting with affected employees, must form a joint partnership to share elements 
67.30 	common to all the partners in providing innovative delivery of educational programs and 
67.31 	activities and sharing resources. The member districts of a joint partnership selected by 
67.32 	the commissioner may elect to admit another district at any time during the pilot project.
67.33 	(c) A partnership under paragraph (b) interested in participating in this pilot project 
67.34 	must apply to the commissioner of education in the form and manner the commissioner 
68.1 	prescribes, consistent with subdivision 2. When submitting its application, each 
68.2 	participating school district in each partnership also must submit to the commissioner:
68.3 	(1) a formally adopted school board agreement identifying the specific joint use 
68.4 	opportunities the participating district intends to pursue as part of the joint partnership; and
68.5 	(2) a binding and specific plan for a minimum of two years and a maximum of four 
68.6 	years to provide innovative delivery of educational programs and activities and to share 
68.7 	resources, consistent with this paragraph.
68.8 	A participating district's plan under clause (2) must describe its educational 
68.9 	objectives and processes for seeking advice and collaboration and managing the project; 
68.10 	its budget arrangements that include regular reviews of expenditures; its administrative 
68.11 	structures for implementing and evaluating the plan; and any other applicable conditions, 
68.12 	regulations, responsibilities, duties, provisions, fee schedules, or legal considerations 
68.13 	needed to implement its plan.
68.14 	(d) The member districts of the joint partnership must comply with Minnesota 
68.15 	Statutes, section 124D.10, subdivision 8, and are otherwise exempt from all statutes and 
68.16 	rules applicable to a school, school board, or school district unless a statute or rule is made 
68.17 	specifically applicable to a school under Minnesota Statutes, section 124D.10.
68.18 	(e) Notwithstanding paragraph (d), a school district that participates in the pilot 
68.19 	project under this section shall continue to receive revenue and maintain its taxation 
68.20 	authority as if it were a school district and not participating in the pilot project.
68.21 	(f) Notwithstanding paragraph (d), a school district that participates in the pilot 
68.22 	project under this section shall continue to be organized and governed by an elected school 
68.23 	board with the general powers under Minnesota Statutes, section 123B.02, as if it were a 
68.24 	school district and not participating in the pilot project.
68.25 		Subd. 2.Role of the commissioner. The commissioner, using available department 
68.26 	resources and staff, may select up to three applicants under subdivision 1, paragraph 
68.27 	(b), from throughout the state to participate in this pilot project. The commissioner may 
68.28 	consider and select only those applicants that the commissioner determines have fully 
68.29 	complied with the requirements in subdivision 1.
68.30 		Subd. 3.Pilot project evaluation. The commissioner must gather and evaluate data 
68.31 	on the measurable success of the joint partnerships in delivering innovative education 
68.32 	programs and activities and sharing resources. The commissioner must use the data to 
68.33 	develop and submit to the education policy and finance committees of the legislature by 
68.34 	February 1, 2016, a report evaluating the success of this pilot project and recommend 
68.35 	whether or not to continue or expand the pilot project. 

69.1 	EFFECTIVE DATE. This section is effective the day following final enactment 
69.2 	and applies to the 2011-2012 through 2014-2015 school year.

69.3 	Sec. 48. 90-DAY GOOD FAITH EFFORT EXCEPTION.
 69.4 	Notwithstanding Minnesota Statutes, section 128C.07, subdivision 3, or other law 
69.5 	to the contrary, the Minnesota State High School League must work with Albany Senior 
69.6 	High in Independent School District No. 745, Albany, Melrose Secondary School in 
69.7 	Independent School District No. 740, Melrose, and New London-Spicer Senior High in 
69.8 	Independent School District No. 345, New London-Spicer, to help each school arrange an 
69.9 	interscholastic conference membership after a 90-day good faith attempt by the school to 
69.10 	join a conference.

69.11 	EFFECTIVE DATE. This section is effective the day following final enactment 
69.12 	and applies through December 31, 2011.

69.13 	Sec. 49. ENGLISH LANGUAGE PROFICIENCY STANDARDS.
 69.14 		Subdivision 1.Standards. The Department of Education shall adopt, as statewide 
69.15 	standards, English language proficiency standards for instruction of students identified as 
69.16 	limited English proficient under Minnesota Statutes, sections 124D.58 to 124D.64.
69.17 		Subd. 2.Adoption. Notwithstanding Minnesota Statutes, chapter 14, and sections 
69.18 	14.386, 120B.02, 120B.021, and 120B.023, the commissioner of education shall adopt 
69.19 	the most recent English language proficiency standards for English learners developed 
69.20 	by World-Class Instructional Design and Assessment in kindergarten through grade 12. 
69.21 	These standards shall be adopted as permanent rules when:
69.22 	(1) the revisor of statutes approves the form of the rule by certificate;
69.23 	(2) the commissioner signs an order adopting the rule; and
69.24 	(3) a copy of the rule is published by the department in the State Register.

69.25 	Sec. 50.  REPEALER.
 69.26 	Minnesota Statutes 2010, sections 120A.26, subdivisions 1 and 2; and 124D.38, 
69.27 	subdivisions 4, 5, and 6, are repealed.

69.28 	ARTICLE 3
69.29 	SPECIAL PROGRAMS

69.30 	Section 1. Minnesota Statutes 2010, section 125A.02, subdivision 1, is amended to 
69.31 	read:
70.1 		Subdivision 1.Child with a disability. "Child with a disability" means a child 
70.2 	identified under federal and state special education law as having a hearing impairment, 
70.3 	blindness, visual disability, deaf or hard-of-hearing, blind or visually impaired, deafblind, 
70.4 	or having a speech or language impairment, a physical disability impairment, other health 
70.5 	impairment disability, mental developmental cognitive disability, emotional/behavioral an 
70.6 	emotional or behavioral disorder, specific learning disability, autism spectrum disorder, 
70.7 	traumatic brain injury, or severe multiple disabilities impairments, or deafblind disability
70.8 	and who needs special education and related services, as determined by the rules of the 
70.9 	commissioner, is a child with a disability. A licensed physician, an advanced practice 
70.10 	nurse, or a licensed psychologist is qualified to make a diagnosis and determination 
70.11 	of attention deficit disorder or attention deficit hyperactivity disorder for purposes of 
70.12 	identifying a child with a disability.

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

70.14 	Sec. 2. Minnesota Statutes 2010, section 125A.0942, subdivision 3, is amended to read:
70.15 		Subd. 3.Physical holding or seclusion. Physical holding or seclusion may be used 
70.16 	only in an emergency. A school that uses physical holding or seclusion shall meet the 
70.17 	following requirements:
70.18 	(1) the physical holding or seclusion must be the least intrusive intervention that 
70.19 	effectively responds to the emergency;
70.20 	(2) physical holding or seclusion must end when the threat of harm ends and the 
70.21 	staff determines that the child can safely return to the classroom or activity;
70.22 	(3) staff must directly observe the child while physical holding or seclusion is being 
70.23 	used;
70.24 	(4) each time physical holding or seclusion is used, the staff person who implements 
70.25 	or oversees the physical holding or seclusion shall document, as soon as possible after the 
70.26 	incident concludes, the following information:
70.27 	(i) a description of the incident that led to the physical holding or seclusion;
70.28 	(ii) why a less restrictive measure failed or was determined by staff to be 
70.29 	inappropriate or impractical;
70.30 	(iii) the time the physical holding or seclusion began and the time the child was 
70.31 	released; and
70.32 	(iv) a brief record of the child's behavioral and physical status;
70.33 	(5) the room used for seclusion must:
70.34 	(i) be at least six feet by five feet;
70.35 	(ii) be well lit, well ventilated, adequately heated, and clean;
71.1 	(iii) have a window that allows staff to directly observe a child in seclusion;
71.2 	(iv) have tamperproof fixtures, electrical switches located immediately outside the 
71.3 	door, and secure ceilings;
71.4 	(v) have doors that open out and are unlocked, locked with keyless locks that 
71.5 	have immediate release mechanisms, or locked with locks that have immediate release 
71.6 	mechanisms connected with a fire and emergency system; and
71.7 	(vi) not contain objects that a child may use to injure the child or others; and
71.8 	(6) before using a room for seclusion, a school must:
71.9 	(i) receive written notice from local authorities that the room and the locking 
71.10 	mechanisms comply with applicable building, fire, and safety codes; and
71.11 	(ii) register the room with the commissioner, who may view that room; and
71.12 	(7) until August 1, 2012, a school district may use prone restraints under the 
71.13 	following conditions:
71.14 	(i) a district has provided to the department a list of staff who have had specific 
71.15 	training on the use of prone restraints;
71.16 	(ii) a district provides information on the type of training that was provided and 
71.17 	by whom;
71.18 	(iii) prone restraints may only be used by staff who have received specific training;
71.19 	(iv) each incident of the use of prone restraints is reported to the department within 
71.20 	five working days on a form provided by the department or on a district's restrictive 
71.21 	procedure documentation form; and
71.22 	(v) a district, prior to using prone restraints, must review any known medical or 
71.23 	psychological limitations that contraindicate the use of prone restraints.
71.24 	The department will report back to the chairs and ranking minority members of the 
71.25 	legislative committees with primary jurisdiction over education policy by February 1, 
71.26 	2012, on the use of prone restraints in the schools.

71.27 	Sec. 3. Minnesota Statutes 2010, section 125A.15, is amended to read:
71.28 	125A.15 PLACEMENT IN ANOTHER DISTRICT; RESPONSIBILITY.
71.29 	The responsibility for special instruction and services for a child with a disability 
71.30 	temporarily placed in another district for care and treatment shall be determined in the 
71.31 	following manner:
71.32 	(a) The district of residence of a child shall be the district in which the child's parent 
71.33 	resides, if living, or the child's guardian, or the district designated by the commissioner 
71.34 	if neither parent nor guardian is living within the state. If there is a dispute between 
72.1 	school districts regarding residency, the district of residence is the district designated by 
72.2 	the commissioner.
72.3 	(b) If a district other than the resident district places a pupil for care and treatment, 
72.4 	the district placing the pupil must notify and give the resident district an opportunity to 
72.5 	participate in the placement decision. When an immediate emergency placement of a 
72.6 	pupil is necessary and time constraints foreclose a resident district from participating in 
72.7 	the emergency placement decision, the district in which the pupil is temporarily placed 
72.8 	must notify the resident district of the emergency placement within 15 days. The resident 
72.9 	district has up to five business days after receiving notice of the emergency placement 
72.10 	to request an opportunity to participate in the placement decision, which the placing 
72.11 	district must then provide.
72.12 	(c) When a child is temporarily placed for care and treatment in a day program 
72.13 	located in another district and the child continues to live within the district of residence 
72.14 	during the care and treatment, the district of residence is responsible for providing 
72.15 	transportation to and from the care and treatment program and an appropriate educational 
72.16 	program for the child. The resident district may establish reasonable restrictions on 
72.17 	transportation, except if a Minnesota court or agency orders the child placed at a day care 
72.18 	and treatment program and the resident district receives a copy of the order, then the 
72.19 	resident district must provide transportation to and from the program unless the court or 
72.20 	agency orders otherwise. Transportation shall only be provided by the resident district 
72.21 	during regular operating hours of the resident district. The resident district may provide the 
72.22 	educational program at a school within the district of residence, at the child's residence, or 
72.23 	in the district in which the day treatment center is located by paying tuition to that district.
72.24 	(d) When a child is temporarily placed in a residential program for care and 
72.25 	treatment, the nonresident district in which the child is placed is responsible for providing 
72.26 	an appropriate educational program for the child and necessary transportation while the 
72.27 	child is attending the educational program; and must bill the district of the child's residence 
72.28 	for the actual cost of providing the program, as outlined in section 125A.11, except as 
72.29 	provided in paragraph (e). However, the board, lodging, and treatment costs incurred in 
72.30 	behalf of a child with a disability placed outside of the school district of residence by the 
72.31 	commissioner of human services or the commissioner of corrections or their agents, for 
72.32 	reasons other than providing for the child's special educational needs must not become the 
72.33 	responsibility of either the district providing the instruction or the district of the child's 
72.34 	residence. For the purposes of this section, the state correctional facilities operated on a 
72.35 	fee-for-service basis are considered to be residential programs for care and treatment.
73.1 	(e) A privately owned and operated residential facility may enter into a contract 
73.2 	to obtain appropriate educational programs for special education children and services 
73.3 	with a joint powers entity. The entity with which the private facility contracts for special 
73.4 	education services shall be the district responsible for providing students placed in that 
73.5 	facility an appropriate educational program in place of the district in which the facility is 
73.6 	located. If a privately owned and operated residential facility does not enter into a contract 
73.7 	under this paragraph, then paragraph (d) applies.
73.8 	(f) The district of residence shall pay tuition and other program costs, not including 
73.9 	transportation costs, to the district providing the instruction and services. The district of 
73.10 	residence may claim general education aid for the child as provided by law. Transportation 
73.11 	costs must be paid by the district responsible for providing the transportation and the state 
73.12 	must pay transportation aid to that district.

73.13 	Sec. 4. Minnesota Statutes 2010, section 125A.51, is amended to read:
73.14 	125A.51 PLACEMENT OF CHILDREN WITHOUT DISABILITIES; 
73.15 	EDUCATION AND TRANSPORTATION.
73.16 	The responsibility for providing instruction and transportation for a pupil without a 
73.17 	disability who has a short-term or temporary physical or emotional illness or disability, as 
73.18 	determined by the standards of the commissioner, and who is temporarily placed for care 
73.19 	and treatment for that illness or disability, must be determined as provided in this section.
73.20 	(a) The school district of residence of the pupil is the district in which the pupil's 
73.21 	parent or guardian resides. If there is a dispute between school districts regarding 
73.22 	residency, the district of residence is the district designated by the commissioner.
73.23 	(b) When parental rights have been terminated by court order, the legal residence 
73.24 	of a child placed in a residential or foster facility for care and treatment is the district in 
73.25 	which the child resides.
73.26 	(c) Before the placement of a pupil for care and treatment, the district of residence 
73.27 	must be notified and provided an opportunity to participate in the placement decision. 
73.28 	When an immediate emergency placement is necessary and time does not permit 
73.29 	resident district participation in the placement decision, the district in which the pupil is 
73.30 	temporarily placed, if different from the district of residence, must notify the district 
73.31 	of residence of the emergency placement within 15 days of the placement. When a 
73.32 	nonresident district makes an emergency placement without first consulting with the 
73.33 	resident district, the resident district has up to five business days after receiving notice 
73.34 	of the emergency placement to request an opportunity to participate in the placement 
73.35 	decision, which the placing district must then provide.
74.1 	(d) When a pupil without a disability is temporarily placed for care and treatment 
74.2 	in a day program and the pupil continues to live within the district of residence during 
74.3 	the care and treatment, the district of residence must provide instruction and necessary 
74.4 	transportation to and from the care and treatment program for the pupil. The resident 
74.5 	district may establish reasonable restrictions on transportation, except if a Minnesota court 
74.6 	or agency orders the child placed at a day care and treatment program and the resident 
74.7 	district receives a copy of the order, then the resident district must provide transportation 
74.8 	to and from the program unless the court or agency orders otherwise. Transportation shall 
74.9 	only be provided by the resident district during regular operating hours of the resident 
74.10 	district. The resident district may provide the instruction at a school within the district of 
74.11 	residence, at the pupil's residence, or in the case of a placement outside of the resident 
74.12 	district, in the district in which the day treatment program is located by paying tuition to 
74.13 	that district. The district of placement may contract with a facility to provide instruction 
74.14 	by teachers licensed by the state Board of Teaching.
74.15 	(e) When a pupil without a disability is temporarily placed in a residential program 
74.16 	for care and treatment, the district in which the pupil is placed must provide instruction 
74.17 	for the pupil and necessary transportation while the pupil is receiving instruction, and in 
74.18 	the case of a placement outside of the district of residence, the nonresident district must 
74.19 	bill the district of residence for the actual cost of providing the instruction for the regular 
74.20 	school year and for summer school, excluding transportation costs.
74.21 	(f) Notwithstanding paragraph (e), if the pupil is homeless and placed in a public or 
74.22 	private homeless shelter, then the district that enrolls the pupil under section 127A.47, 
74.23 	subdivision 2, shall provide the transportation, unless the district that enrolls the pupil 
74.24 	and the district in which the pupil is temporarily placed agree that the district in which 
74.25 	the pupil is temporarily placed shall provide transportation. When a pupil without a 
74.26 	disability is temporarily placed in a residential program outside the district of residence, 
74.27 	the administrator of the court placing the pupil must send timely written notice of the 
74.28 	placement to the district of residence. The district of placement may contract with a 
74.29 	residential facility to provide instruction by teachers licensed by the state Board of 
74.30 	Teaching. For purposes of this section, the state correctional facilities operated on a 
74.31 	fee-for-service basis are considered to be residential programs for care and treatment.
74.32 	(g) The district of residence must include the pupil in its residence count of pupil 
74.33 	units and pay tuition as provided in section 123A.488 to the district providing the 
74.34 	instruction. Transportation costs must be paid by the district providing the transportation 
74.35 	and the state must pay transportation aid to that district. For purposes of computing state 
74.36 	transportation aid, pupils governed by this subdivision must be included in the disabled 
75.1 	transportation category if the pupils cannot be transported on a regular school bus route 
75.2 	without special accommodations.

75.3 	Sec. 5.  REPEALER.
 75.4 	Minnesota Statutes 2010, section 125A.54, is repealed.

75.5 	ARTICLE 4
75.6 	FACILITIES AND TECHNOLOGY

75.7 	Section 1. Minnesota Statutes 2010, section 123B.57, is amended to read:
75.8 	123B.57 CAPITAL EXPENDITURE; HEALTH AND SAFETY.
75.9 		Subdivision 1.Health and safety program revenue application. (a) To receive 
75.10 	health and safety revenue for any fiscal year a district must submit to the commissioner 
75.11 	an a capital expenditure health and safety revenue application for aid and levy by the 
75.12 	date determined by the commissioner. The application may be for hazardous substance 
75.13 	removal, fire and life safety code repairs, labor and industry regulated facility and 
75.14 	equipment violations, and health, safety, and environmental management, including 
75.15 	indoor air quality management. The application must include a health and safety program
75.16 	budget adopted and confirmed by the school district board as being consistent with the 
75.17 	district's health and safety policy under subdivision 2. The program budget must include 
75.18 	the estimated cost, per building, of the program per Uniform Financial Accounting and 
75.19 	Reporting Standards (UFARS) finance code, by fiscal year. Upon approval through the 
75.20 	adoption of a resolution by each of an intermediate district's member school district 
75.21 	boards and the approval of the Department of Education, a school district may include 
75.22 	its proportionate share of the costs of health and safety projects for an intermediate 
75.23 	district in its application.
75.24 	(b) Health and safety projects with an estimated cost of $500,000 or more per 
75.25 	site are not eligible for health and safety revenue. Health and safety projects with an 
75.26 	estimated cost of $500,000 or more per site that meet all other requirements for health and 
75.27 	safety funding, are eligible for alternative facilities bonding and levy revenue according 
75.28 	to section 123B.59. A school board shall not separate portions of a single project into 
75.29 	components to qualify for health and safety revenue, and shall not combine unrelated 
75.30 	projects into a single project to qualify for alternative facilities bonding and levy revenue.
75.31 	(c) The commissioner of education shall not make eligibility for health and safety 
75.32 	revenue contingent on a district's compliance status, level of program development, or 
76.1 	training. The commissioner shall not mandate additional performance criteria such as 
76.2 	training, certifications, or compliance evaluations as a prerequisite for levy approval.
76.3 		Subd. 2.Contents of program Health and safety policy. To qualify for health 
76.4 	and safety revenue, a district school board must adopt a health and safety program policy. 
76.5 	The program policy must include plans, where applicable, for hazardous substance 
76.6 	removal, fire and life safety code repairs, regulated facility and equipment violations, 
76.7 	and provisions for implementing a health and safety program that complies with health, 
76.8 	safety, and environmental management, regulations and best practices including indoor 
76.9 	air quality management.
76.10 	(a) A hazardous substance plan must contain provisions for the removal or 
76.11 	encapsulation of asbestos from school buildings or property, asbestos-related repairs, 
76.12 	cleanup and disposal of polychlorinated biphenyls found in school buildings or property, 
76.13 	and cleanup, removal, disposal, and repairs related to storing heating fuel or transportation 
76.14 	fuels such as alcohol, gasoline, fuel, oil, and special fuel, as defined in section 296A.01. 
76.15 	If a district has already developed a plan for the removal or encapsulation of asbestos as 
76.16 	required by the federal Asbestos Hazard Emergency Response Act of 1986, the district 
76.17 	may use a summary of that plan, which includes a description and schedule of response 
76.18 	actions, for purposes of this section. The plan must also contain provisions to make 
76.19 	modifications to existing facilities and equipment necessary to limit personal exposure 
76.20 	to hazardous substances, as regulated by the federal Occupational Safety and Health 
76.21 	Administration under Code of Federal Regulations, title 29, part 1910, subpart Z; or is 
76.22 	determined by the commissioner to present a significant risk to district staff or student 
76.23 	health and safety as a result of foreseeable use, handling, accidental spill, exposure, or 
76.24 	contamination.
76.25 	(b) A fire and life safety plan must contain a description of the current fire and life 
76.26 	safety code violations, a plan for the removal or repair of the fire and life safety hazard, 
76.27 	and a description of safety preparation and awareness procedures to be followed until the 
76.28 	hazard is fully corrected.
76.29 	(c) A facilities and equipment violation plan must contain provisions to correct 
76.30 	health and safety hazards as provided in Department of Labor and Industry standards 
76.31 	pursuant to section 182.655.
76.32 	(d) A health, safety, and environmental management plan must contain a description 
76.33 	of training, record keeping, hazard assessment, and program management as defined 
76.34 	in section 123B.56.
76.35 	(e) A plan to test for and mitigate radon produced hazards.
76.36 	(f) A plan to monitor and improve indoor air quality.
77.1 		Subd. 3.Health and safety revenue. A district's health and safety revenue 
77.2 	for a fiscal year equals the district's alternative facilities levy under section 123B.59, 
77.3 	subdivision 5, paragraph (b), plus the greater of zero or:
77.4 	(1) the sum of (a) the total approved cost of the district's hazardous substance 
77.5 	plan for fiscal years 1985 through 1989, plus (b) the total approved cost of the district's 
77.6 	health and safety program for fiscal year 1990 through the fiscal year to which the levy 
77.7 	is attributable, excluding expenditures funded with bonds issued under section 123B.59 
77.8 	or 123B.62, or chapter 475; certificates of indebtedness or capital notes under section 
77.9 	123B.61; levies under section 123B.58, 123B.59, 123B.63, or 126C.40, subdivision 1 or 
77.10 	6; and other federal, state, or local revenues, minus
77.11 	(2) the sum of (a) the district's total hazardous substance aid and levy for fiscal years 
77.12 	1985 through 1989 under sections 124.245 and 275.125, subdivision 11c, plus (b) the 
77.13 	district's health and safety revenue under this subdivision, for years before the fiscal year 
77.14 	to which the levy is attributable.
77.15 		Subd. 4.Health and safety levy. To receive health and safety revenue, a district 
77.16 	may levy an amount equal to the district's health and safety revenue as defined in 
77.17 	subdivision 3 multiplied by the lesser of one, or the ratio of the quotient derived by 
77.18 	dividing the adjusted net tax capacity of the district for the year preceding the year the 
77.19 	levy is certified by the adjusted marginal cost pupil units in the district for the school year 
77.20 	to which the levy is attributable, to $2,935.
77.21 		Subd. 5.Health and safety aid. A district's health and safety aid is the difference 
77.22 	between its health and safety revenue and its health and safety levy. If a district does not 
77.23 	levy the entire amount permitted, health and safety aid must be reduced in proportion to 
77.24 	the actual amount levied. Health and safety aid may not be reduced as a result of reducing 
77.25 	a district's health and safety levy according to section 123B.79.
77.26 		Subd. 6.Uses of health and safety revenue. (a) Health and safety revenue may be 
77.27 	used only for approved expenditures necessary to correct for the correction of fire and life 
77.28 	safety hazards, or for the; design, purchase, installation, maintenance, and inspection of 
77.29 	fire protection and alarm equipment; purchase or construction of appropriate facilities for 
77.30 	the storage of combustible and flammable materials; inventories and facility modifications 
77.31 	not related to a remodeling project to comply with lab safety requirements under section 
77.32 	121A.31; inspection, testing, repair, removal or encapsulation, and disposal of asbestos 
77.33 	from school buildings or property owned or being acquired by the district, asbestos-related 
77.34 	repairs, asbestos-containing building materials; cleanup and disposal of polychlorinated 
77.35 	biphenyls found in school buildings or property owned or being acquired by the district, 
77.36 	or the; cleanup and disposal of hazardous and infectious wastes; cleanup, removal, 
78.1 	disposal, and repairs related to storing heating fuel or transportation fuels such as alcohol, 
78.2 	gasoline, fuel oil, and special fuel, as defined in section 296A.01, Minnesota; correction of
78.3 	occupational safety and health administration regulated facility and equipment hazards,;
78.4 	indoor air quality inspections, investigations, and testing; mold abatement,; upgrades or 
78.5 	replacement of mechanical ventilation systems to meet American Society of Heating, 
78.6 	Refrigerating and Air Conditioning Engineers standards and State Mechanical Code,; 
78.7 	design, materials, and installation of local exhaust ventilation systems, including required 
78.8 	make-up air for controlling regulated hazardous substances; correction of Department 
78.9 	of Health Food Code and violations; correction of swimming pool hazards excluding 
78.10 	depth correction,; playground safety inspections, the repair of unsafe outdoor playground 
78.11 	equipment, and the installation of impact surfacing materials; bleacher repair or rebuilding 
78.12 	to comply with the order of a building code inspector under section 326B.112; testing and 
78.13 	mitigation of elevated radon hazards; lead testing; copper in water testing; cleanup after 
78.14 	major weather-related disasters or flooding; reduction of excessive organic and inorganic 
78.15 	levels in wells and capping of abandoned wells; installation and testing of boiler backflow 
78.16 	valves to prevent contamination of potable water; vaccinations, titers, and preventative 
78.17 	supplies for bloodborne pathogen compliance; costs to comply with the Janet B. Johnson 
78.18 	Parents' Right to Know Act; automated external defibrillators and other emergency plan 
78.19 	equipment and supplies specific to the district's emergency action plan; and health, safety, 
78.20 	and environmental management costs associated with implementing the district's health 
78.21 	and safety program including costs to establish and operate safety committees, in school 
78.22 	buildings or property owned or being acquired by the district. Testing and calibration 
78.23 	activities are permitted for existing mechanical ventilation systems at intervals no less than 
78.24 	every five years. Health and safety revenue must not be used to finance a lease purchase 
78.25 	agreement, installment purchase agreement, or other deferred payments agreement. Health 
78.26 	and safety revenue must not be used for the construction of new facilities or the purchase 
78.27 	of portable classrooms, for interest or other financing expenses, or for energy efficiency 
78.28 	projects under section 123B.65. The revenue may not be used for a building or property or 
78.29 	part of a building or property used for postsecondary instruction or administration or for a 
78.30 	purpose unrelated to elementary and secondary education.
78.31 		Subd. 6a.Restrictions on health and safety revenue. (b) Notwithstanding 
78.32 	paragraph (a) subdivision 6, health and safety revenue must not be used:
78.33 	(1) to finance a lease purchase agreement, installment purchase agreement, or other 
78.34 	deferred payments agreement;
78.35 	(2) for the construction of new facilities, remodeling of existing facilities, or the 
78.36 	purchase of portable classrooms;
79.1 	(3) for interest or other financing expenses;
79.2 	(4) for energy efficiency projects under section 123B.65, for a building or property 
79.3 	or part of a building or property used for postsecondary instruction or administration or for 
79.4 	a purpose unrelated to elementary and secondary education;
79.5 	(5) for replacement of building materials or facilities including roof, walls, windows, 
79.6 	internal fixtures and flooring, nonhealth and safety costs associated with demolition of 
79.7 	facilities, structural repair or replacement of facilities due to unsafe conditions, violence 
79.8 	prevention and facility security, ergonomics,; 
79.9 	(6) for public announcement systems and emergency communications devices; or
79.10 	(7) for building and heating, ventilating and air conditioning supplies, maintenance, 
79.11 	and cleaning activities. All assessments, investigations, inventories, and support 
79.12 	equipment not leading to the engineering or construction of a project shall be included in 
79.13 	the health, safety, and environmental management costs in subdivision 8, paragraph (a).
79.14 		Subd. 6b.Health and safety projects. (a) Health and safety revenue applications 
79.15 	defined in subdivision 1 must be accompanied by a description of each project for which 
79.16 	funding is being requested. Project descriptions must provide enough detail for an auditor 
79.17 	to determine if the work qualifies for revenue. For projects other than fire and life 
79.18 	safety projects, playground projects, and health, safety, and environmental management 
79.19 	activities, a project description does not need to include itemized details such as material 
79.20 	types, room locations, square feet, names, or license numbers. The commissioner 
79.21 	may request supporting information and shall approve only projects that comply with 
79.22 	subdivisions 6 and 8, as defined by the Department of Education.
79.23 	(b) Districts may request funding for allowable projects based on self-assessments, 
79.24 	safety committee recommendations, insurance inspections, management assistance 
79.25 	reports, fire marshal orders, or other mandates. Notwithstanding subdivision 1, paragraph 
79.26 	(b), and subdivision 8, paragraph (b), for projects under $500,000, individual project 
79.27 	size for projects authorized by this subdivision is not limited and may include related 
79.28 	work in multiple facilities. Health and safety management costs from subdivision 8 may 
79.29 	be reported as a single project.
79.30 	(c) All costs directly related to a project shall be reported in the appropriate Uniform 
79.31 	Financial Accounting and Reporting Standards (UFARS) finance code.
79.32 	(d) For fire and life safety egress and all other projects exceeding $20,000, cited 
79.33 	under Minnesota Fire Code, a fire marshal plan review is required.
79.34 	(e) Districts shall update project estimates with actual expenditures for each 
79.35 	fiscal year. If a project's final cost is significantly higher than originally approved, the 
79.36 	commissioner may request additional supporting information.
80.1 		Subd. 6c.Appeals process. In the event a district is denied funding approval for 
80.2 	a project the district believes complies with subdivisions 6 and 8, and is not otherwise 
80.3 	excluded, a district may appeal the decision. All such requests must be in writing. The 
80.4 	commissioner shall respond in writing. A written request must contain the following: 
80.5 	project number; description and amount; reason for denial; unresolved questions for 
80.6 	consideration; reasons for reconsideration; and a specific statement of what action the 
80.7 	district is requesting.
80.8 		Subd. 7.Proration. In the event that the health and safety aid available for any year 
80.9 	is prorated, a district having its aid prorated may levy an additional amount equal to the 
80.10 	amount not paid by the state due to proration.
80.11 		Subd. 8.Health, safety, and environmental management cost. (a) "Health, safety, 
80.12 	and environmental management" is defined in section 123B.56.
80.13 	(b) A district's cost for health, safety, and environmental management is limited to 
80.14 	the lesser of:
80.15 	(1) actual cost to implement their plan; or
80.16 	(2) an amount determined by the commissioner, based on enrollment, building 
80.17 	age, and size.
80.18 	(b) (c) The department may contract with regional service organizations, private 
80.19 	contractors, Minnesota Safety Council, or state agencies to provide management 
80.20 	assistance to school districts for health and safety capital projects. Management assistance 
80.21 	is the development of written programs for the identification, recognition and control of 
80.22 	hazards, and prioritization and scheduling of district health and safety capital projects. 
80.23 	The department commissioner shall not mandate management assistance or exclude 
80.24 	private contractors from the opportunity to provide any health and safety services to 
80.25 	school districts.
80.26 	(c) Notwithstanding paragraph (b), the department may approve revenue, up to 
80.27 	the limit defined in paragraph (a) for districts having an approved health, safety, and 
80.28 	environmental management plan that uses district staff to accomplish coordination and 
80.29 	provided services.

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

80.31 	Sec. 2. Minnesota Statutes 2010, section 123B.71, subdivision 5, is amended to read:
80.32 		Subd. 5.Final plans. If a construction contract has not been awarded within two 
80.33 	years of approval, the approval shall not be valid. After approval, final plans and the 
80.34 	approval shall be filed with made available, if requested, to the commissioner of education. 
80.35 	If substantial changes are made to the initial approved plans, documents reflecting 
81.1 	the changes shall be submitted to the commissioner for approval. Upon completing a 
81.2 	project, the school board shall certify to the commissioner that the project was completed 
81.3 	according to the approved plans.

81.4 	Sec. 3. Minnesota Statutes 2010, section 123B.72, subdivision 3, is amended to read:
81.5 		Subd. 3.Certification. Prior to occupying or reoccupying a school facility affected 
81.6 	by this section, a school board or its designee shall submit a document prepared by a 
81.7 	system inspector to the building official or to the commissioner, verifying that the facility's 
81.8 	heating, ventilation, and air conditioning system has been installed and operates according 
81.9 	to design specifications and code, according to section 123B.71, subdivision 9, clause 
81.10 	(11) (12). A systems inspector shall also verify that the facility's design will provide 
81.11 	the ability for monitoring of outdoor airflow and total airflow of ventilation systems in 
81.12 	new school facilities and that any heating, ventilation, or air conditioning system that is 
81.13 	installed or modified for a project subject to this section must provide a filtration system 
81.14 	with a current ASHRAE standard. 

81.15 	Sec. 4. HEALTH AND SAFETY POLICY.
 81.16 	Notwithstanding Minnesota Statutes, section 123B.57, subdivision 2, a school board 
81.17 	that has not yet adopted a health and safety policy by September 30, 2011, may submit an 
81.18 	application for health and safety revenue for taxes payable in 2012 in the form and manner 
81.19 	specified by the commissioner of education.

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

81.21 	ARTICLE 5
81.22 	ACCOUNTING

81.23 	Section 1. Minnesota Statutes 2010, section 127A.42, subdivision 2, is amended to 
81.24 	read:
81.25 		Subd. 2.Violations of law. The commissioner may reduce or withhold the district's 
81.26 	state aid for any school year whenever the board of the district authorizes or permits 
81.27 	violations of law within the district by:
81.28 	(1) employing a teacher who does not hold a valid teaching license or permit in a 
81.29 	public school;
81.30 	(2) noncompliance with a mandatory rule of general application promulgated by the 
81.31 	commissioner in accordance with statute, unless special circumstances make enforcement 
82.1 	inequitable, impose an extraordinary hardship on the district, or the rule is contrary to 
82.2 	the district's best interests;
82.3 	(3) the district's continued performance of a contract made for the rental of rooms 
82.4 	or buildings for school purposes or for the rental of any facility owned or operated by or 
82.5 	under the direction of any private organization, if the contract has been disapproved, the 
82.6 	time for review of the determination of disapproval has expired, and no proceeding for 
82.7 	review is pending;
82.8 	(4) any practice which is a violation of sections 1 and 2 of article 13 of the 
82.9 	Constitution of the state of Minnesota;
82.10 	(5) failure to reasonably provide for a resident pupil's school attendance under 
82.11 	Minnesota Statutes;
82.12 	(6) noncompliance with state laws prohibiting discrimination because of race, 
82.13 	color, creed, religion, national origin, sex, age, marital status, status with regard to 
82.14 	public assistance or disability, as defined in sections 363A.08 to 363A.19 and 363A.28, 
82.15 	subdivision 10; or
82.16 	(7) using funds contrary to the statutory purpose of the funds.
82.17 	The reduction or withholding must be made in the amount and upon the procedure 
82.18 	provided in this section, or, in the case of the violation stated in clause (1), upon the 
82.19 	procedure provided in section 127A.43.

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

82.21 	Sec. 2. Minnesota Statutes 2010, section 127A.43, is amended to read:
82.22 	127A.43 DISTRICT EMPLOYMENT OF UNLICENSED TEACHERS; AID 
82.23 	REDUCTION.
82.24 	When a district employs one or more teachers who do not hold a valid teaching 
82.25 	license, state aid shall be withheld reduced in the proportion that the number of such 
82.26 	teachers is to the total number of teachers employed by the district, multiplied by 60 
82.27 	percent of the basic revenue, as defined in section 126C.10, subdivision 2, of the district 
82.28 	for the year in which the employment occurred. 

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

82.30 	Sec. 3. Minnesota Statutes 2010, section 127A.45, is amended by adding a subdivision 
82.31 	to read:
82.32 		Subd. 17.Payment to creditors. Except where otherwise specifically authorized, 
82.33 	state education aid payments shall be made only to the school district, charter school, or 
83.1 	other education organization earning state aid revenues as a result of providing education 
83.2 	services.

83.3 	ARTICLE 6
83.4 	STUDENT TRANSPORTATION

83.5 	Section 1. Minnesota Statutes 2010, section 123B.88, is amended by adding a 
83.6 	subdivision to read:
83.7 		Subd. 1a.Full-service school zones. The board may establish a full-service 
83.8 	school zone by adopting a written resolution and may provide transportation for students 
83.9 	attending a school in that full-service school zone. A full-service school zone may be 
83.10 	established for a school that is located in an area with higher than average crime or other 
83.11 	social and economic challenges and that provides education, health or human services, or 
83.12 	other parental support in collaboration with a city, county, state, or nonprofit agency. The 
83.13 	pupil transportation must be intended to stabilize enrollment and reduce mobility at the 
83.14 	school located in a full-service school zone.

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

83.16 	Sec. 2. Minnesota Statutes 2010, section 123B.88, subdivision 13, is amended to read:
83.17 		Subd. 13.Area learning center pupils between buildings. Districts may provide 
83.18 	between-building bus transportation along school bus routes when space is available, for 
83.19 	pupils attending programs at an area learning center. The transportation is only permitted 
83.20 	between schools and if it does not increase the district's expenditures for transportation. 
83.21 	The cost of these services shall be considered part of the authorized cost for nonregular 
83.22 	transportation for the purpose of section 123B.92. 

83.23 	Sec. 3. Minnesota Statutes 2010, section 123B.90, subdivision 3, is amended to read:
83.24 		Subd. 3.Model training program. The commissioner shall develop and maintain a 
83.25 	comprehensive model list of school bus safety training program instructional materials 
83.26 	 for pupils who ride the bus that includes bus safety curriculum for both classroom and 
83.27 	practical instruction and age-appropriate instructional materials.

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

83.29 	Sec. 4. Minnesota Statutes 2010, section 123B.92, subdivision 1, is amended to read:
83.30 		Subdivision 1.Definitions. For purposes of this section and section 125A.76, the 
83.31 	terms defined in this subdivision have the meanings given to them.
84.1 	(a) "Actual expenditure per pupil transported in the regular and excess transportation 
84.2 	categories" means the quotient obtained by dividing:
84.3 	(1) the sum of:
84.4 	(i) all expenditures for transportation in the regular category, as defined in paragraph 
84.5 	(b), clause (1), and the excess category, as defined in paragraph (b), clause (2), plus
84.6 	(ii) an amount equal to one year's depreciation on the district's school bus fleet 
84.7 	and mobile units computed on a straight line basis at the rate of 15 percent per year for 
84.8 	districts operating a program under section 124D.128 for grades 1 to 12 for all students in 
84.9 	the district and 12-1/2 percent per year for other districts of the cost of the fleet, plus
84.10 	(iii) an amount equal to one year's depreciation on the district's type III vehicles, as 
84.11 	defined in section 169.011, subdivision 71, which must be used a majority of the time for 
84.12 	pupil transportation purposes, computed on a straight line basis at the rate of 20 percent 
84.13 	per year of the cost of the type three school buses by:
84.14 	(2) the number of pupils eligible for transportation in the regular category, as defined 
84.15 	in paragraph (b), clause (1), and the excess category, as defined in paragraph (b), clause (2).
84.16 	(b) "Transportation category" means a category of transportation service provided to 
84.17 	pupils as follows:
84.18 	(1) Regular transportation is:
84.19 	(i) transportation to and from school during the regular school year for resident 
84.20 	elementary pupils residing one mile or more from the public or nonpublic school they 
84.21 	attend, and resident secondary pupils residing two miles or more from the public 
84.22 	or nonpublic school they attend, excluding desegregation transportation and noon 
84.23 	kindergarten transportation; but with respect to transportation of pupils to and from 
84.24 	nonpublic schools, only to the extent permitted by sections 123B.84 to 123B.87;
84.25 	(ii) transportation of resident pupils to and from language immersion programs;
84.26 	(iii) transportation of a pupil who is a custodial parent and that pupil's child between 
84.27 	the pupil's home and the child care provider and between the provider and the school, if 
84.28 	the home and provider are within the attendance area of the school;
84.29 	(iv) transportation to and from or board and lodging in another district, of resident 
84.30 	pupils of a district without a secondary school; and
84.31 	(v) transportation to and from school during the regular school year required under 
84.32 	subdivision 3 for nonresident elementary pupils when the distance from the attendance 
84.33 	area border to the public school is one mile or more, and for nonresident secondary pupils 
84.34 	when the distance from the attendance area border to the public school is two miles or 
84.35 	more, excluding desegregation transportation and noon kindergarten transportation.
85.1 	For the purposes of this paragraph, a district may designate a licensed day care 
85.2 	facility, school day care facility, respite care facility, the residence of a relative, or the 
85.3 	residence of a person or other location chosen by the pupil's parent or guardian, or an 
85.4 	after-school program for children operated by a political subdivision of the state, as the 
85.5 	home of a pupil for part or all of the day, if requested by the pupil's parent or guardian, 
85.6 	and if that facility, residence, or program is within the attendance area of the school the 
85.7 	pupil attends.
85.8 	(2) Excess transportation is:
85.9 	(i) transportation to and from school during the regular school year for resident 
85.10 	secondary pupils residing at least one mile but less than two miles from the public or 
85.11 	nonpublic school they attend, and transportation to and from school for resident pupils 
85.12 	residing less than one mile from school who are transported because of full-service school 
85.13 	zones, extraordinary traffic, drug, or crime hazards; and
85.14 	(ii) transportation to and from school during the regular school year required under 
85.15 	subdivision 3 for nonresident secondary pupils when the distance from the attendance area 
85.16 	border to the school is at least one mile but less than two miles from the public school 
85.17 	they attend, and for nonresident pupils when the distance from the attendance area border 
85.18 	to the school is less than one mile from the school and who are transported because of 
85.19 	full-service school zones, extraordinary traffic, drug, or crime hazards.
85.20 	(3) Desegregation transportation is transportation within and outside of the district 
85.21 	during the regular school year of pupils to and from schools located outside their normal 
85.22 	attendance areas under a plan for desegregation mandated by the commissioner or under 
85.23 	court order.
85.24 	(4) "Transportation services for pupils with disabilities" is:
85.25 	(i) transportation of pupils with disabilities who cannot be transported on a regular 
85.26 	school bus between home or a respite care facility and school;
85.27 	(ii) necessary transportation of pupils with disabilities from home or from school to 
85.28 	other buildings, including centers such as developmental achievement centers, hospitals, 
85.29 	and treatment centers where special instruction or services required by sections 125A.03 
85.30 	to 125A.24, 125A.26 to 125A.48, and 125A.65 are provided, within or outside the district 
85.31 	where services are provided;
85.32 	(iii) necessary transportation for resident pupils with disabilities required by sections 
85.33 	125A.12, and 125A.26 to 125A.48;
85.34 	(iv) board and lodging for pupils with disabilities in a district maintaining special 
85.35 	classes;
86.1 	(v) transportation from one educational facility to another within the district for 
86.2 	resident pupils enrolled on a shared-time basis in educational programs, and necessary 
86.3 	transportation required by sections 125A.18, and 125A.26 to 125A.48, for resident pupils 
86.4 	with disabilities who are provided special instruction and services on a shared-time basis 
86.5 	or if resident pupils are not transported, the costs of necessary travel between public 
86.6 	and private schools or neutral instructional sites by essential personnel employed by the 
86.7 	district's program for children with a disability;
86.8 	(vi) transportation for resident pupils with disabilities to and from board and lodging 
86.9 	facilities when the pupil is boarded and lodged for educational purposes; and
86.10 	(vii)  transportation of pupils for a curricular field trip activity on a school bus 
86.11 	equipped with a power lift when the power lift is required by a student's disability or 
86.12 	section 504 plan; and
86.13 	(viii) services described in clauses (i) to (vi) (vii), when provided for pupils with 
86.14 	disabilities in conjunction with a summer instructional program that relates to the pupil's 
86.15 	individual education plan or in conjunction with a learning year program established 
86.16 	under section 124D.128.
86.17 	For purposes of computing special education initial aid under section 125A.76, 
86.18 	subdivision 2, the cost of providing transportation for children with disabilities includes 
86.19 	(A) the additional cost of transporting a homeless student from a temporary nonshelter 
86.20 	home in another district to the school of origin, or a formerly homeless student from a 
86.21 	permanent home in another district to the school of origin but only through the end of the 
86.22 	academic year; and (B) depreciation on district-owned school buses purchased after July 1, 
86.23 	2005, and used primarily for transportation of pupils with disabilities, calculated according 
86.24 	to paragraph (a), clauses (ii) and (iii). Depreciation costs included in the disabled 
86.25 	transportation category must be excluded in calculating the actual expenditure per pupil 
86.26 	transported in the regular and excess transportation categories according to paragraph (a).
86.27 	(5) "Nonpublic nonregular transportation" is:
86.28 	(i) transportation from one educational facility to another within the district for 
86.29 	resident pupils enrolled on a shared-time basis in educational programs, excluding 
86.30 	transportation for nonpublic pupils with disabilities under clause (4);
86.31 	(ii) transportation within district boundaries between a nonpublic school and a 
86.32 	public school or a neutral site for nonpublic school pupils who are provided pupil support 
86.33 	services pursuant to section 123B.44; and
86.34 	(iii) late transportation home from school or between schools within a district for 
86.35 	nonpublic school pupils involved in after-school activities.
87.1 	(c) "Mobile unit" means a vehicle or trailer designed to provide facilities for 
87.2 	educational programs and services, including diagnostic testing, guidance and counseling 
87.3 	services, and health services. A mobile unit located off nonpublic school premises is a 
87.4 	neutral site as defined in section 123B.41, subdivision 13.

87.5 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2012 
87.6 	and later.

87.7 	Sec. 5. Minnesota Statutes 2010, section 123B.92, subdivision 5, is amended to read:
87.8 		Subd. 5.District reports. (a) Each district must report data to the department as 
87.9 	required by the department to account for transportation expenditures.
87.10 	(b) Salaries and fringe benefits of district employees whose primary duties are 
87.11 	other than transportation, including central office administrators and staff, building 
87.12 	administrators and staff, teachers, social workers, school nurses, and instructional aides, 
87.13 	must not be included in a district's transportation expenditures, except that a district may 
87.14 	include salaries and benefits according to paragraph (c) for (1) an employee designated 
87.15 	as the district transportation director, (2) an employee providing direct support to the 
87.16 	transportation director, or (3) an employee providing direct transportation services such as 
87.17 	a bus driver or bus aide.
87.18 	(c) Salaries and fringe benefits of the district employees listed in paragraph (b), 
87.19 	clauses (1), (2), and (3), who work part time in transportation and part time in other areas 
87.20 	must not be included in a district's transportation expenditures unless the district maintains 
87.21 	documentation of the employee's time spent on pupil transportation matters in the form 
87.22 	and manner prescribed by the department.
87.23 	(d) Pupil transportation expenditures, excluding expenditures for capital outlay, 
87.24 	leased buses, student board and lodging, crossing guards, and aides on buses, must be 
87.25 	allocated among transportation categories based on cost-per-mile, or cost-per-student, 
87.26 	cost-per-hour, or cost-per-route, regardless of whether the transportation services are 
87.27 	provided on district-owned or contractor-owned school buses. Expenditures for school 
87.28 	bus driver salaries and fringe benefits may either be directly charged to the appropriate 
87.29 	transportation category or may be allocated among transportation categories based 
87.30 	on cost-per-mile, or cost-per-student, cost-per-hour, or cost-per-route. Expenditures 
87.31 	by private contractors or individuals who provide transportation exclusively in one 
87.32 	transportation category must be charged directly to the appropriate transportation category. 
87.33 	Transportation services provided by contractor-owned school bus companies incorporated 
87.34 	under different names but owned by the same individual or group of individuals must be 
87.35 	treated as the same company for cost allocation purposes.
88.1 	(e) Notwithstanding paragraph (d), districts contracting for transportation services 
88.2 	are exempt from the standard cost allocation method for authorized and nonauthorized 
88.3 	transportation categories if the district: (1) bids its contracts separately for authorized 
88.4 	and nonauthorized transportation categories and for special transportation separate from 
88.5 	regular and excess transportation; (2) receives bids or quotes from more than one vendor 
88.6 	for these transportation categories; and (3) the district's cost-per-mile does not vary 
88.7 	more than ten percent among categories, excluding salaries and fringe benefits of bus 
88.8 	aides. If the costs reported by the district for contractor-owned operations vary by more 
88.9 	than ten percent among categories, the department shall require the district to reallocate 
88.10 	its transportation costs, excluding salaries and fringe benefits of bus aides, among all 
88.11 	categories.

88.12 	ARTICLE 7
88.13 	EARLY CHILDHOOD EDUCATION

88.14 	Section 1. Minnesota Statutes 2010, section 119A.50, subdivision 3, is amended to read:
88.15 		Subd. 3.Early childhood literacy programs. (a) A research-based early childhood 
88.16 	literacy program premised on actively involved parents, ongoing professional staff 
88.17 	development, and high quality early literacy program standards is established to increase 
88.18 	the literacy skills of children participating in Head Start to prepare them to be successful 
88.19 	readers and to increase families' participation in providing early literacy experiences to 
88.20 	their children. Program providers must:
88.21 	(1) work to prepare children to be successful learners;
88.22 	(2) work to close the achievement gap for at-risk children;
88.23 	(3) use an integrated approach to early literacy that daily offers a literacy-rich 
88.24 	classroom learning environment composed of books, writing materials, writing centers, 
88.25 	labels, rhyming, and other related literacy materials and opportunities;
88.26 	(4) support children's home language while helping the children master English and 
88.27 	use multiple literacy strategies to provide a cultural bridge between home and school;
88.28 	(5) use literacy mentors, ongoing literacy groups, and other teachers and staff to 
88.29 	provide appropriate, extensive professional development opportunities in early literacy 
88.30 	and classroom strategies for preschool teachers and other preschool staff;
88.31 	(6) use ongoing data-based assessments that enable preschool teachers to understand, 
88.32 	plan, and implement literacy strategies, activities, and curriculum that meet children's 
88.33 	literacy needs and continuously improve children's literacy; and
88.34 	(7) foster participation by parents, community stakeholders, literacy advisors, and 
88.35 	evaluation specialists.
89.1 	Program providers are encouraged to collaborate with qualified, community-based 
89.2 	early childhood providers in implementing this program and to seek nonstate funds to 
89.3 	supplement the program.
89.4 	(b) Program providers under paragraph (a) interested in extending literacy programs 
89.5 	to children in kindergarten through grade 3 may elect to form a partnership with an 
89.6 	eligible organization under section 124D.38, subdivision 2, or 124D.42, subdivision 6, 
89.7 	clause (3), schools enrolling children in kindergarten through grade 3, and other interested 
89.8 	and qualified community-based entities to provide ongoing literacy programs that offer 
89.9 	seamless literacy instruction focused on closing the literacy achievement gap. To close the 
89.10 	literacy achievement gap by the end of third grade, partnership members must agree to use 
89.11 	best efforts and practices and to work collaboratively to implement a seamless literacy 
89.12 	model from age three to grade 3, consistent with paragraph (a). Literacy programs under 
89.13 	this paragraph must collect and use literacy data to:
89.14 	(1) evaluate children's literacy skills; and
89.15 	(2) formulate specific intervention strategies to provide reading instruction to 
89.16 	children premised on the outcomes of formative and summative assessments and 
89.17 	research-based indicators of literacy development.
89.18 	The literacy programs under this paragraph also must train teachers and other 
89.19 	providers working with children to use the assessment outcomes under clause (2) to 
89.20 	develop and use effective, long-term literacy coaching models that are specific to the 
89.21 	program providers.
89.22 	(c) The commissioner must collect and evaluate literacy data on children from age 
89.23 	three to grade 3 who participate in literacy programs under this section to determine the 
89.24 	efficacy of early literacy programs on children's success in developing the literacy skills 
89.25 	that they need for long-term academic success and the programs' success in closing the 
89.26 	literacy achievement gap. Annually by February 1, the commissioner must report to 
89.27 	the education policy and finance committees of the legislature on the ongoing impact 
89.28 	of these programs.

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

89.30 	Sec. 2. Minnesota Statutes 2010, section 121A.17, subdivision 3, is amended to read:
89.31 		Subd. 3.Screening program. (a) A screening program must include at least the 
89.32 	following components: developmental assessments, hearing and vision screening or 
89.33 	referral, immunization review and referral, the child's height and weight, identification 
89.34 	of risk factors that may influence learning, an interview with the parent about the child, 
89.35 	and referral for assessment, diagnosis, and treatment when potential needs are identified. 
90.1 	The district and the person performing or supervising the screening must provide a 
90.2 	parent or guardian with clear written notice that the parent or guardian may decline to 
90.3 	answer questions or provide information about family circumstances that might affect 
90.4 	development and identification of risk factors that may influence learning. The notice 
90.5 	must state "Early childhood developmental screening helps a school district identify 
90.6 	children who may benefit from district and community resources available to help in their 
90.7 	development. Early childhood developmental screening includes a vision screening that 
90.8 	helps detect potential eye problems but is not a substitute for a comprehensive eye exam." 
90.9 	 The notice must clearly state that declining to answer questions or provide information 
90.10 	does not prevent the child from being enrolled in kindergarten or first grade if all other 
90.11 	screening components are met. If a parent or guardian is not able to read and comprehend 
90.12 	the written notice, the district and the person performing or supervising the screening 
90.13 	must convey the information in another manner. The notice must also inform the parent 
90.14 	or guardian that a child need not submit to the district screening program if the child's 
90.15 	health records indicate to the school that the child has received comparable developmental 
90.16 	screening performed within the preceding 365 days by a public or private health care 
90.17 	organization or individual health care provider. The notice must be given to a parent or 
90.18 	guardian at the time the district initially provides information to the parent or guardian 
90.19 	about screening and must be given again at the screening location.
90.20 	(b) All screening components shall be consistent with the standards of the state 
90.21 	commissioner of health for early developmental screening programs. A developmental 
90.22 	screening program must not provide laboratory tests or a physical examination to any 
90.23 	child. The district must request from the public or private health care organization or the 
90.24 	individual health care provider the results of any laboratory test or physical examination 
90.25 	within the 12 months preceding a child's scheduled screening.
90.26 	(c) If a child is without health coverage, the school district must refer the child to an 
90.27 	appropriate health care provider.
90.28 	(d) A board may offer additional components such as nutritional, physical and 
90.29 	dental assessments, review of family circumstances that might affect development, blood 
90.30 	pressure, laboratory tests, and health history.
90.31 	(e) If a statement signed by the child's parent or guardian is submitted to the 
90.32 	administrator or other person having general control and supervision of the school that 
90.33 	the child has not been screened because of conscientiously held beliefs of the parent 
90.34 	or guardian, the screening is not required.