1.1 	A bill for an act
1.2 	relating to education; providing for policy and funding for family, adult, and 
1.3 	prekindergarten through grade 12 education including general education, 
1.4 	academic excellence, special education, facilities and technology, nutrition and 
1.5 	accounting, libraries, early childhood education, prevention, self-sufficiency and 
1.6 	lifelong learning, state agencies, and forecast adjustments; requiring reports; 
1.7 	requiring studies; appropriating money;amending Minnesota Statutes 2010, 
1.8 	sections 13D.02, by adding a subdivision; 16A.152, subdivision 2; 93.22, 
1.9 	subdivision 1; 93.2236; 120A.41; 120B.023, subdivision 2; 120B.07; 120B.30, 
1.10 	subdivision 1, by adding a subdivision; 120B.35, subdivision 1; 120B.36, 
1.11 	subdivision 1; 122A.40, subdivisions 5, 6, 7, 8, 9, 10, 11, by adding subdivisions; 
1.12 	122A.41, subdivisions 2, 3, 4, 5, 6, 14, by adding a subdivision; 122A.414, 
1.13 	subdivisions 1a, 2, 2a, 2b, 4; 122A.416; 122A.60; 122A.61, subdivision 
1.14 	1; 123A.55; 123B.02, subdivision 15; 123B.09, subdivision 8; 123B.143, 
1.15 	subdivision 1; 123B.54; 123B.59, subdivision 5; 123B.75, subdivision 5; 
1.16 	124D.15, subdivision 3a; 124D.19, subdivision 3; 124D.531, subdivision 1; 
1.17 	124D.86, subdivision 3; 125A.07; 125A.21, subdivisions 2, 3, 5, 7; 125A.515, 
1.18 	by adding a subdivision; 125A.69, subdivision 1; 125A.76, subdivision 1; 
1.19 	125A.79, subdivision 1; 126C.10, subdivisions 1, 2, 2a, 3, 7, 8, 8a, 13a, 14, by 
1.20 	adding a subdivision; 126C.126; 126C.20; 126C.40, subdivision 1; 126C.44; 
1.21 	127A.33; 127A.441; 127A.45, subdivision 2; 179A.16, subdivision 1; 179A.18, 
1.22 	subdivisions 1, 3; 298.28, subdivisions 2, 4; Laws 2009, chapter 79, article 5, 
1.23 	section 60, as amended; Laws 2009, chapter 96, article 1, section 24, subdivisions 
1.24 	2, as amended, 3, 4, as amended, 5, as amended, 6, as amended, 7, as amended; 
1.25 	article 2, section 67, subdivisions 2, as amended, 3, as amended, 4, as amended, 
1.26 	6, 9, as amended; article 3, section 21, subdivisions 3, 4, as amended; article 4, 
1.27 	section 12, subdivision 6, as amended; article 5, section 13, subdivisions 2, 3, 4, 
1.28 	as amended; article 6, section 11, subdivisions 3, as amended, 4, as amended, 
1.29 	8, as amended, 12, as amended; proposing coding for new law in Minnesota 
1.30 	Statutes, chapters 120B; 122A; 124D; 179A; proposing coding for new law as 
1.31 	Minnesota Statutes, chapter 119C; repealing Minnesota Statutes 2010, sections 
1.32 	122A.61; 123B.05; 123B.59, subdivisions 6, 7; 124D.86, subdivisions 1, 1a, 
1.33 	2, 4, 5, 6; 126C.10, subdivision 5; 127A.46; 129C.10, subdivisions 1, 2, 3, 
1.34 	3a, 4, 6, 7, 8; 129C.105; 129C.15; 129C.20; 129C.25; 129C.26; 179A.18, 
1.35 	subdivision 2; Laws 2009, chapter 88, article 12, section 23; Minnesota Rules, 
1.36 	parts 3535.0100; 3535.0110; 3535.0120; 3535.0130; 3535.0140; 3535.0150; 
1.37 	3535.0160; 3535.0170; 3535.0180.
1.38 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.1 	ARTICLE 1
2.2 	GENERAL EDUCATION

2.3 	Section 1. Minnesota Statutes 2010, section 93.22, subdivision 1, is amended to read:
2.4 		Subdivision 1.Generally. (a) All payments under sections 93.14 to 93.285 shall 
2.5 	be made to the Department of Natural Resources and shall be credited according to this 
2.6 	section.
2.7 	(b) Twenty percent of all payments, except for those payments received for school 
2.8 	trust lands,  under sections 93.14 to 93.285 shall be credited to the minerals management 
2.9 	account in the natural resources fund as costs for the administration and management of 
2.10 	state mineral resources by the commissioner of natural resources.
2.11 	(c) The remainder of the payments shall be credited as follows:
2.12 	(1) if the lands or minerals and mineral rights covered by a lease are held by the state 
2.13 	by virtue of an act of Congress, payments made under the lease shall be credited to the 
2.14 	permanent fund of the class of land to which the leased premises belong;
2.15 	(2) if a lease covers the bed of navigable waters, payments made under the lease 
2.16 	shall be credited to the permanent school fund of the state;
2.17 	(3) if the lands or minerals and mineral rights covered by a lease are held by the state 
2.18 	in trust for the taxing districts, payments made under the lease shall be distributed annually 
2.19 	on the first day of September to the respective counties in which the lands lie, to be 
2.20 	apportioned among the taxing districts interested therein as follows: county, three-ninths; 
2.21 	town or city, two-ninths; and school district, four-ninths;
2.22 	(4) if the lands or mineral rights covered by a lease became the absolute property of 
2.23 	the state under the provisions of chapter 84A, payments made under the lease shall be 
2.24 	distributed as follows: county containing the land from which the income was derived, 
2.25 	five-eighths; and general fund of the state, three-eighths; and
2.26 	(5) except as provided under this section and except where the disposition of 
2.27 	payments may be otherwise directed by law, payments made under a lease shall be paid 
2.28 	into the general fund of the state.

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

2.30 	Sec. 2. Minnesota Statutes 2010, section 93.2236, is amended to read:
2.31 	93.2236 MINERALS MANAGEMENT ACCOUNT.
3.1 	(a) The minerals management account is created as an account in the natural 
3.2 	resources fund. Interest earned on money in the account accrues to the account. Money in 
3.3 	the account may be spent or distributed only as provided in paragraphs (b) and (c).
3.4 	(b) If the balance in the minerals management account exceeds $3,000,000 on June 
3.5 	30, the amount exceeding $3,000,000 must be distributed to the permanent school fund 
3.6 	and the permanent university fund. The amount distributed to each fund must be in the 
3.7 	same proportion as the total mineral lease revenue received in the previous biennium 
3.8 	from school trust lands and university lands.
3.9 	(c) Subject to appropriation by the legislature, money in the minerals management 
3.10 	account may be spent by the commissioner of natural resources for mineral resource 
3.11 	management and projects to enhance future mineral income and promote new mineral 
3.12 	resource opportunities.

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

3.14 	Sec. 3. Minnesota Statutes 2010, section 120A.41, is amended to read:
3.15 	120A.41 LENGTH OF SCHOOL YEAR; DAYS HOURS OF INSTRUCTION.
3.16 	A school board's annual school calendar must include at least the number of days of 
3.17 	student instruction the board formally adopted as its school calendar at the beginning of 
3.18 	the 1996-1997 school year 425 hours of instruction for a kindergarten student without a 
3.19 	disability, 935 hours of instruction for a student in grades 1 though 6, and 1,020 hours of 
3.20 	instruction for a student in grades 7 though 12, not including summer school.

3.21 	Sec. 4. Minnesota Statutes 2010, section 120B.07, is amended to read:
3.22 	120B.07 EARLY GRADUATION.
3.23 	(a) Notwithstanding any law to the contrary, any secondary school student who has 
3.24 	completed all required courses or standards may, with the approval of the student, the 
3.25 	student's parent or guardian, and local school officials, graduate before the completion 
3.26 	of the school year.
3.27 	(b) General education revenue attributable to the student must be paid as though 
3.28 	the student was in attendance for the entire year unless the student participates in the 
3.29 	early graduation achievement scholarship program under section 120B.08 or the early 
3.30 	graduation military service award program under section 120B.081.

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

4.1 	Sec. 5. [120B.08] EARLY GRADUATION ACHIEVEMENT SCHOLARSHIP 
4.2 	PROGRAM.
4.3 		Subdivision 1.Participation. A student who qualifies for early graduation under 
4.4 	section 120B.07 is eligible to participate in the early graduation achievement scholarship 
4.5 	program.
4.6 		Subd. 2.Scholarship amounts. A student who participates in the early graduation 
4.7 	achievement scholarship program is eligible for a scholarship of $2,500 if the student 
4.8 	qualifies for graduation one semester or two trimesters early, $5,000 if the student qualifies 
4.9 	for graduation two semesters or three or four trimesters early, or $7,500 if the student 
4.10 	qualifies for graduation three or more semesters or five or more trimesters early.
4.11 		Subd. 3.Scholarship uses. An early graduation achievement scholarship may be 
4.12 	used at any accredited institution of higher education.
4.13 		Subd. 4.Application. A qualifying student may apply to the commissioner of 
4.14 	education for an early graduation achievement scholarship. The application must be in 
4.15 	the form and manner specified by the commissioner. Upon verification of the qualifying 
4.16 	student's course completion necessary for graduation, the department must issue the 
4.17 	student a certificate showing the student's scholarship amount.
4.18 		Subd. 5.Enrollment verification. A student who qualifies under this section 
4.19 	and enrolls in an accredited higher education institution must submit a form to the 
4.20 	commissioner verifying the student's enrollment in the higher education institution and the 
4.21 	tuition charges for that semester. Within 15 days of receipt of a student's enrollment and 
4.22 	tuition verification form, the commissioner must issue a scholarship check to the student in 
4.23 	the lesser of the tuition amount for that semester or the maximum amount of the student's 
4.24 	early graduation achievement scholarship. A student may continue to submit enrollment 
4.25 	verification forms to the commissioner until the student has used the full amount of the 
4.26 	student's graduation achievement scholarship.
4.27 		Subd. 6.General education money transferred. The commissioner must transfer 
4.28 	the amounts necessary to fund the early graduation achievement scholarships from the 
4.29 	general education aid appropriation for that year.

4.30 	EFFECTIVE DATE. This section is effective for fiscal year 2012 and later.

4.31 	Sec. 6. [120B.081] EARLY GRADUATION MILITARY SERVICE AWARD 
4.32 	PROGRAM.
4.33 		Subdivision 1.Eligibility. For purposes of this section, "eligible person" means 
4.34 	a secondary student enrolled in any Minnesota public school who qualifies for early 
4.35 	graduation under section 120B.07 and who, before the end of the calendar year of the 
5.1 	student's graduation, enters into active service in either the active or reserve component 
5.2 	of the United States armed forces and deploys for 60 days or longer to a military base or 
5.3 	installation outside Minnesota for the purpose of attending basic military training or 
5.4 	military school and, if required by the military, performing other military duty. The active 
5.5 	service may be in accordance with United States Code, title 10 or title 32.
5.6 		Subd. 2.Application. An eligible person may apply to the commissioner of 
5.7 	education for an early graduation military service bonus. The application must be in the 
5.8 	form and manner specified by the commissioner.
5.9 		Subd. 3.Verification and award. Upon verification of the qualifying student's 
5.10 	course completion necessary for graduation and eligibility for the military service 
5.11 	bonus, the commissioner must issue payment to that person. Payment amounts must be 
5.12 	determined according to section 120B.08, subdivision 2.

5.13 	EFFECTIVE DATE. This section is effective for fiscal year 2012 and later.

5.14 	Sec. 7. Minnesota Statutes 2010, section 122A.414, subdivision 1a, is amended to read:
5.15 		Subd. 1a.Transitional planning year. (a) To be eligible to participate in an 
5.16 	alternative teacher professional pay system, a school district, intermediate school district, 
5.17 	or site, at least one school year before it expects to fully implement an alternative pay 
5.18 	system, must:
5.19 	(1) submit to the department a letter of intent executed by the school district or 
5.20 	intermediate school district and the exclusive representative of the teachers to complete a 
5.21 	plan preparing for full implementation, consistent with subdivision 2, that may include, 
5.22 	among other activities, training to evaluate teacher performance, a restructured school 
5.23 	day to develop integrated ongoing site-based professional development activities, release 
5.24 	time to develop an alternative pay system agreement, and teacher and staff training on 
5.25 	using multiple data sources; and
5.26 	(2) agree to use up to two percent of basic revenue for staff development purposes, 
5.27 	consistent with sections section122A.60and 122A.61, to develop the alternative teacher 
5.28 	professional pay system agreement under this section.
5.29 	(b) To be eligible to participate in an alternative teacher professional pay system, a 
5.30 	charter school, at least one school year before it expects to fully implement an alternative 
5.31 	pay system, must:
5.32 	(1) submit to the department a letter of intent executed by the charter school and the 
5.33 	charter school board of directors;
6.1 	(2) submit the record of a formal vote by the teachers employed at the charter 
6.2 	school indicating at least 70 percent of all teachers agree to implement the alternative 
6.3 	pay system; and
6.4 	(3) agree to use up to two percent of basic revenue for staff development purposes, 
6.5 	consistent with sections section122A.60and 122A.61, to develop the alternative teacher 
6.6 	professional pay system.
6.7 	(c) The commissioner may waive the planning year if the commissioner determines, 
6.8 	based on the criteria under subdivision 2, that the school district, intermediate school 
6.9 	district, site or charter school is ready to fully implement an alternative pay system.

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

6.11 	Sec. 8. Minnesota Statutes 2010, section 122A.414, subdivision 4, is amended to read:
6.12 		Subd. 4.Planning and staff development. A school district that qualifies to 
6.13 	participate in the alternative teacher professional pay system transitional planning year 
6.14 	under subdivision 1a may use up to two percent of its general education basic revenue 
6.15 	that would otherwise be reserved under section 122A.61 for complying with the planning 
6.16 	and staff development activities under this section.

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

6.18 	Sec. 9. Minnesota Statutes 2010, section 122A.60, subdivision 1, is amended to read:
6.19 		Subdivision 1.Staff development committee. A school board must use the revenue 
6.20 	authorized in section 122A.61 for in-service education for programs under section 
6.21 	120B.22, subdivision 2, or for staff development plans may implement a staff development 
6.22 	plan under this section. If a school board implements a plan under this section, the board 
6.23 	must establish an advisory staff development committee to develop the plan, assist site 
6.24 	professional development teams in developing a site plan consistent with the goals of the 
6.25 	plan, and evaluate staff development efforts at the site level. A majority of the advisory 
6.26 	committee and the site professional development team must be teachers representing 
6.27 	various grade levels, subject areas, and special education. The advisory committee must 
6.28 	also include nonteaching staff, parents, and administrators.

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

6.30 	Sec. 10. Minnesota Statutes 2010, section 122A.60, subdivision 1a, is amended to read:
6.31 		Subd. 1a.Effective staff development activities. (a) Staff development activities
6.32 	implemented under this section must:
7.1 	(1) focus on the school classroom and research-based strategies that improve student 
7.2 	learning;
7.3 	(2) provide opportunities for teachers to practice and improve their instructional 
7.4 	skills over time;
7.5 	(3) provide opportunities for teachers to use student data as part of their daily work 
7.6 	to increase student achievement;
7.7 	(4) enhance teacher content knowledge and instructional skills;
7.8 	(5) align with state and local academic standards;
7.9 	(6) provide opportunities to build professional relationships, foster collaboration 
7.10 	among principals and staff who provide instruction, and provide opportunities for 
7.11 	teacher-to-teacher mentoring; and
7.12 	(7) align with the plan of the district or site for an alternative teacher professional 
7.13 	pay system.
7.14 	Staff development activities may include curriculum development and curriculum training 
7.15 	programs, and activities that provide teachers and other members of site-based teams 
7.16 	training to enhance team performance. The school district also may implement other 
7.17 	staff development activities required by law and activities associated with professional 
7.18 	teacher compensation models.
7.19 	(b) Release time provided for teachers to supervise students on field trips and school 
7.20 	activities, or independent tasks not associated with enhancing the teacher's knowledge 
7.21 	and instructional skills, such as preparing report cards, calculating grades, or organizing 
7.22 	classroom materials, may not be counted as staff development time that is financed with 
7.23 	staff development reserved revenue under section 122A.61.

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

7.25 	Sec. 11. Minnesota Statutes 2010, section 122A.60, subdivision 4, is amended to read:
7.26 		Subd. 4.Staff development report. (a) By October 15 of each year, the a district 
7.27 	andimplementing a staff development plan under this section, in conjunction with its 
7.28 	site staff development committees, shall write and submit a report of staff development 
7.29 	activities and expenditures for the previous year, in the form and manner determined by 
7.30 	the commissioner. The report, signed by the district superintendent and staff development 
7.31 	chair, must include assessment and evaluation data indicating progress toward district and 
7.32 	site staff development goals based on teaching and learning outcomes, including the 
7.33 	percentage of teachers and other staff involved in instruction who participate in effective 
7.34 	staff development activities under subdivision 3.
8.1 	(b) The report must break down expenditures for:
8.2 	(1) curriculum development and curriculum training programs; and
8.3 	(2) staff development training models, workshops, and conferences, and the cost of 
8.4 	releasing teachers or providing substitute teachers for staff development purposes.
8.5 	The report also must indicate whether the expenditures were incurred at the district 
8.6 	level or the school site level, and whether the school site expenditures were made possible 
8.7 	by grants to school sites that demonstrate exemplary use of allocated staff development 
8.8 	revenue. These expenditures must be reported using the uniform financial and accounting 
8.9 	and reporting standards.
8.10 	(c) The commissioner shall report the staff development progress and expenditure 
8.11 	data to the house of representatives and senate committees having jurisdiction over 
8.12 	education by February 15 each year.

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

8.14 	Sec. 12. Minnesota Statutes 2010, section 123A.55, is amended to read:
8.15 	123A.55 CLASSES, NUMBER.
8.16 	Districts shall be classified as common, independent, or special, or charter districts,.
8.17 	Each of which common, independent, and special district is a public corporation. Each 
8.18 	district shall be known by its classification and assigned a number by the commissioner so 
8.19 	that its title will be .......... School District No. ......

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

8.21 	Sec. 13. Minnesota Statutes 2010, section 126C.10, subdivision 1, is amended to read:
8.22 		Subdivision 1.General education revenue. For fiscal year 2006 and later, The 
8.23 	general education revenue for each district equals the sum of the district's basic revenue, 
8.24 	extended time revenue, gifted and talented revenue, small schools revenue, basic skills 
8.25 	revenue, training and experience revenue, secondary sparsity revenue, elementary sparsity 
8.26 	revenue, transportation sparsity revenue, total operating capital revenue, equity revenue, 
8.27 	alternative teacher compensation revenue, and transition revenue.

8.28 	EFFECTIVE DATE. This section is effective for fiscal year 2013 and later.

8.29 	Sec. 14. Minnesota Statutes 2010, section 126C.10, subdivision 2, is amended to read:
8.30 		Subd. 2.Basic revenue. The basic revenue for each district equals the formula 
8.31 	allowance times the adjusted marginal cost pupil units for the school year. The formula 
9.1 	allowance for fiscal year 2007 is $4,974. The formula allowance for fiscal year 2008 is 
9.2 	$5,074 and the formula allowance for fiscal year years 2009 through 2011 is $5,124. The 
9.3 	formula allowance is $5,174 for fiscal year 2012 and $5,210 for fiscal year 2013. The 
9.4 	formula allowance for fiscal year 2014 and subsequent years is $5,124 $5,255.

9.5 	Sec. 15. Minnesota Statutes 2010, section 126C.10, subdivision 2a, is amended to read:
9.6 		Subd. 2a.Extended time revenue. (a) A school district's extended time revenue 
9.7 	is equal to the product of $4,601 $5,124 and the sum of the adjusted marginal cost pupil 
9.8 	units of the district for each pupil in average daily membership in excess of 1.0 and less 
9.9 	than 1.2 according to section 126C.05, subdivision 8.
9.10 	(b) A school district's extended time revenue may be used for extended day 
9.11 	programs, extended week programs, summer school, and other programming authorized 
9.12 	under the learning year program.

9.13 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2013 
9.14 	and later.

9.15 	Sec. 16. Minnesota Statutes 2010, section 126C.10, is amended by adding a 
9.16 	subdivision to read:
9.17 		Subd. 2c.Small schools revenue. A school district's small schools revenue equals 
9.18 	the product of:
9.19 	(1) $5,124;
9.20 	(2) the district's adjusted marginal cost pupil units for that year;
9.21 	(3) the greater of zero or the ratio of (i) 1,000 less the district's adjusted marginal 
9.22 	cost pupil units for that year, to (ii) 1,000; and
9.23 	(4) 0.08.

9.24 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2013 
9.25 	and later.

9.26 	Sec. 17. Minnesota Statutes 2010, section 126C.10, subdivision 3, is amended to read:
9.27 		Subd. 3.Compensatory education revenue. (a) The compensatory education 
9.28 	revenue for each building in the district equals the formula allowance minus $415 $4,709
9.29 	times the compensation revenue pupil units computed according to section 126C.05, 
9.30 	subdivision 3. Revenue shall be paid to the district and must be allocated according to 
9.31 	section 126C.15, subdivision 2.
10.1 	(b) When the district contracting with an alternative program under section 124D.69
10.2 	changes prior to the start of a school year, the compensatory revenue generated by pupils 
10.3 	attending the program shall be paid to the district contracting with the alternative program 
10.4 	for the current school year, and shall not be paid to the district contracting with the 
10.5 	alternative program for the prior school year.
10.6 	(c) When the fiscal agent district for an area learning center changes prior to the start 
10.7 	of a school year, the compensatory revenue shall be paid to the fiscal agent district for the 
10.8 	current school year, and shall not be paid to the fiscal agent district for the prior school year.

10.9 	Sec. 18. Minnesota Statutes 2010, section 126C.10, subdivision 7, is amended to read:
10.10 		Subd. 7.Secondary sparsity revenue. (a) A district's secondary sparsity revenue 
10.11 	for a school year equals the sum of the results of the following calculation for each 
10.12 	qualifying high school in the district:
10.13 	(1) the formula allowance for the school year $5,124, multiplied by
10.14 	(2) the secondary average daily membership of pupils served in the high school, 
10.15 	multiplied by
10.16 	(3) the quotient obtained by dividing 400 minus the secondary average daily 
10.17 	membership by 400 plus the secondary daily membership, multiplied by
10.18 	(4) the lesser of 1.5 or the quotient obtained by dividing the isolation index minus 
10.19 	23 by ten.
10.20 	(b) A newly formed district that is the result of districts combining under the 
10.21 	cooperation and combination program or consolidating under section 123A.48 must 
10.22 	receive secondary sparsity revenue equal to the greater of: (1) the amount calculated 
10.23 	under paragraph (a) for the combined district; or (2) the sum of the amounts of secondary 
10.24 	sparsity revenue the former districts had in the year prior to consolidation, increased for 
10.25 	any subsequent changes in the secondary sparsity formula.

10.26 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2012 
10.27 	and later.

10.28 	Sec. 19. Minnesota Statutes 2010, section 126C.10, subdivision 8, is amended to read:
10.29 		Subd. 8.Elementary sparsity revenue. A district's elementary sparsity revenue 
10.30 	equals the sum of the following amounts for each qualifying elementary school in the 
10.31 	district:
10.32 	(1) the formula allowance for the year $5,124, multiplied by
10.33 	(2) the elementary average daily membership of pupils served in the school, 
10.34 	multiplied by
11.1 	(3) the quotient obtained by dividing 140 minus the elementary average daily 
11.2 	membership by 140 plus the average daily membership.

11.3 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2012 
11.4 	and later.

11.5 	Sec. 20. Minnesota Statutes 2010, section 126C.10, subdivision 8a, is amended to read:
11.6 		Subd. 8a.Sparsity revenue for school districts that close facilities. A school 
11.7 	district that closes a school facility or whose sparsity revenue is reduced by a school 
11.8 	closure in another district is eligible for elementary and secondary sparsity revenue equal 
11.9 	to the greater of the amounts calculated under subdivisions 6, 7, and 8 or the total amount 
11.10 	of sparsity revenue for the previous fiscal year if the school board of the district has 
11.11 	adopted a written resolution stating that the district intends to close the school facility, but 
11.12 	cannot proceed with the closure without the adjustment to sparsity revenue authorized by 
11.13 	this subdivision. The written resolution must be filed with the commissioner of education 
11.14 	at least 60 days prior to the start of the fiscal year for which aid under this subdivision is 
11.15 	first requested. A school district whose sparsity revenue is affected by a closure in another 
11.16 	district is not required to adopt a written resolution under this section.

11.17 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2012 
11.18 	and later.

11.19 	Sec. 21. Minnesota Statutes 2010, section 126C.10, subdivision 13a, is amended to 
11.20 	read:
11.21 		Subd. 13a.Operating capital levy. To obtain operating capital revenue for fiscal 
11.22 	year 2007 and later, a district may levy an amount not more than the product of its 
11.23 	operating capital revenue for the fiscal year times the lesser of one or the ratio of its 
11.24 	adjusted net tax capacity per adjusted marginal cost pupil unit to the operating capital 
11.25 	equalizing factor. The operating capital equalizing factor equals $22,222 $10,700 for 
11.26 	fiscal year 2006 2012, and $10,700 $12,790 for fiscal year 2007 2013 and later.

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

11.28 	Sec. 22. Minnesota Statutes 2010, section 126C.10, subdivision 14, is amended to read:
11.29 		Subd. 14.Uses of total operating capital revenue. Total operating capital revenue 
11.30 	may be used only for the following purposes:
11.31 	(1) to acquire land for school purposes;
11.32 	(2) to acquire or construct buildings for school purposes;
12.1 	(3) to rent or lease buildings, including the costs of building repair or improvement 
12.2 	that are part of a lease agreement;
12.3 	(4) to improve and repair school sites and buildings, and equip or reequip school 
12.4 	buildings with permanent attached fixtures, including library media centers;
12.5 	(5) for a surplus school building that is used substantially for a public nonschool 
12.6 	purpose;
12.7 	(6) to eliminate barriers or increase access to school buildings by individuals with a 
12.8 	disability;
12.9 	(7) to bring school buildings into compliance with the State Fire Code adopted 
12.10 	according to chapter 299F;
12.11 	(8) to remove asbestos from school buildings, encapsulate asbestos, or make 
12.12 	asbestos-related repairs;
12.13 	(9) to clean up and dispose of polychlorinated biphenyls found in school buildings;
12.14 	(10) to clean up, remove, dispose of, and make repairs related to storing heating fuel 
12.15 	or transportation fuels such as alcohol, gasoline, fuel oil, and special fuel, as defined 
12.16 	in section 296A.01; 
12.17 	(11) for energy audits for school buildings and to modify buildings if the audit 
12.18 	indicates the cost of the modification can be recovered within ten years;
12.19 	(12) to improve buildings that are leased according to section 123B.51, subdivision 4; 
12.20 	(13) to pay special assessments levied against school property but not to pay 
12.21 	assessments for service charges;
12.22 	(14) to pay principal and interest on state loans for energy conservation according to 
12.23 	section 216C.37 or loans made under the Douglas J. Johnson Economic Protection Trust 
12.24 	Fund Act according to sections 298.292 to 298.298; 
12.25 	(15) to purchase or lease interactive telecommunications equipment;
12.26 	(16) by board resolution, to transfer money into the debt redemption fund to: (i) 
12.27 	pay the amounts needed to meet, when due, principal and interest payments on certain 
12.28 	obligations issued according to chapter 475; or (ii) pay principal and interest on debt 
12.29 	service loans or capital loans according to section 126C.70; 
12.30 	(17) to pay operating capital-related assessments of any entity formed under a 
12.31 	cooperative agreement between two or more districts;
12.32 	(18) to purchase or lease computers and related materials, copying machines, 
12.33 	telecommunications equipment, and other noninstructional equipment;
12.34 	(19) to purchase or lease assistive technology or equipment for instructional 
12.35 	programs;
12.36 	(20) to purchase textbooks;
13.1 	(21) to purchase new and replacement library media resources or technology;
13.2 	(22) to lease or purchase vehicles;
13.3 	(23) to purchase or lease telecommunications equipment, computers, and related 
13.4 	equipment for integrated information management systems for:
13.5 	(i) managing and reporting learner outcome information for all students under a 
13.6 	results-oriented graduation rule;
13.7 	(ii) managing student assessment, services, and achievement information required 
13.8 	for students with individual education plans; and
13.9 	(iii) other classroom information management needs; and
13.10 	(24) to pay personnel costs directly related to the acquisition, operation, and 
13.11 	maintenance of telecommunications systems, computers, related equipment, and network 
13.12 	and applications software; and
13.13 	(25) to pay the costs directly associated with closing a school facility, including 
13.14 	moving and storage costs.

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

13.16 	Sec. 23. Minnesota Statutes 2010, section 126C.126, is amended to read:
13.17 	126C.126 REALLOCATING GENERAL EDUCATION REVENUE FOR 
13.18 	ALL-DAY KINDERGARTEN AND PREKINDERGARTEN.
13.19 	(a) In order to provide additional revenue for an optional all-day kindergarten 
13.20 	program, a district may reallocate general education revenue attributable to 12th grade 
13.21 	students who have graduated early under section 120B.07 and who do not participate in 
13.22 	the early graduation achievement scholarship program under section 120B.08 or the early 
13.23 	graduation military service award program under section 120B.081. 
13.24 	(b) A school district may spend general education revenue on extended time 
13.25 	kindergarten and prekindergarten programs.

13.26 	EFFECTIVE DATE. This section is effective for fiscal year 2012 and later.

13.27 	Sec. 24. Minnesota Statutes 2010, section 126C.20, is amended to read:
13.28 	126C.20 ANNUAL GENERAL EDUCATION AID APPROPRIATION.
13.29 	There is annually appropriated from the general fund to the department the 
13.30 	amount necessary for general education aid under section 126C.13, the early graduation 
13.31 	achievement scholarship program under section 120B.08, and the early graduation 
13.32 	military service award program under section 120B.081. This amount must be reduced 
14.1 	by the amount of any money specifically appropriated for the same purpose in any year 
14.2 	from any state fund.

14.3 	EFFECTIVE DATE. This section is effective for fiscal year 2012 and later.

14.4 	Sec. 25. Minnesota Statutes 2010, section 126C.44, is amended to read:
14.5 	126C.44 SAFE SCHOOLS LEVY.
14.6 	(a) Each district may make a levy on all taxable property located within the district 
14.7 	for the purposes specified in this section. The maximum amount which may be levied 
14.8 	for all costs under this section shall be equal to $30 multiplied by the district's adjusted 
14.9 	marginal cost pupil units for the school year. The proceeds of the levy must be reserved and 
14.10 	used for directly funding the following purposes or for reimbursing the cities and counties 
14.11 	who contract with the district for the following purposes: (1) to pay the costs incurred for 
14.12 	the salaries, benefits, and transportation costs of peace officers and sheriffs for liaison in 
14.13 	services in the district's schools; (2) to pay the costs for a drug abuse prevention program 
14.14 	as defined in section 609.101, subdivision 3, paragraph (e), in the elementary schools; 
14.15 	(3) to pay the costs for a gang resistance education training curriculum in the district's 
14.16 	schools; (4) to pay the costs for security in the district's schools and on school property; (5) 
14.17 	to pay the costs for other crime prevention, drug abuse, student and staff safety, voluntary 
14.18 	opt-in suicide prevention tools, and violence prevention measures taken by the school 
14.19 	district; or (6) to pay costs for licensed school counselors, licensed school nurses, licensed 
14.20 	school social workers, licensed school psychologists, and licensed alcohol and chemical 
14.21 	dependency counselors to help provide early responses to problems. For expenditures 
14.22 	under clause (1), the district must initially attempt to contract for services to be provided 
14.23 	by peace officers or sheriffs with the police department of each city or the sheriff's 
14.24 	department of the county within the district containing the school receiving the services. If 
14.25 	a local police department or a county sheriff's department does not wish to provide the 
14.26 	necessary services, the district may contract for these services with any other police or 
14.27 	sheriff's department located entirely or partially within the school district's boundaries.
14.28 	(b) A school district that is a member of an intermediate school district may 
14.29 	include in its authority under this section the costs associated with safe schools activities 
14.30 	authorized under paragraph (a) for intermediate school district programs. This authority 
14.31 	must not exceed $10 times the adjusted marginal cost pupil units of the member districts. 
14.32 	This authority is in addition to any other authority authorized under this section. Revenue 
14.33 	raised under this paragraph must be transferred to the intermediate school district.
15.1 	(c) A school district must set aside at least $3 per adjusted marginal cost pupil 
15.2 	unit of the safe schools levy proceeds for the purposes authorized under paragraph (a), 
15.3 	clause (6). The district must annually certify either that: (1) its total spending on services 
15.4 	provided by the employees listed in paragraph (a), clause (6), is not less than the sum of 
15.5 	its expenditures for these purposes, excluding amounts spent under this section, in the 
15.6 	previous year plus the amount spent under this section; or (2) that the district's full-time 
15.7 	equivalent number of employees listed in paragraph (a), clause (6), is not less than the 
15.8 	number for the previous year.

15.9 	Sec. 26. Minnesota Statutes 2010, section 127A.33, is amended to read:
15.10 	127A.33 SCHOOL ENDOWMENT FUND; APPORTIONMENT.
15.11 	The commissioner shall apportion the school endowment fund semiannually on the 
15.12 	first Monday in March and September in each year, to districts whose schools have been 
15.13 	in session at least nine months. The apportionment shall be in proportion to the number 
15.14 	of pupils in each district's adjusted average daily membership during the preceding year. 
15.15 	The apportionment shall not be paid to a district for pupils for whom tuition is received 
15.16 	by the district.

15.17 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2012 
15.18 	and later.

15.19 	Sec. 27. Minnesota Statutes 2010, section 298.28, subdivision 2, is amended to read:
15.20 		Subd. 2.City or town where quarried or produced. (a) 4.5 cents per gross ton of 
15.21 	merchantable iron ore concentrate, hereinafter referred to as "taxable ton," plus the amount 
15.22 	provided in paragraph (c), must be allocated to the city or town in the county in which 
15.23 	the lands from which taconite was mined or quarried were located or within which the 
15.24 	concentrate was produced. If the mining, quarrying, and concentration, or different steps 
15.25 	in either thereof are carried on in more than one taxing district, the commissioner shall 
15.26 	apportion equitably the proceeds of the part of the tax going to cities and towns among 
15.27 	such subdivisions upon the basis of attributing 50 percent of the proceeds of the tax to 
15.28 	the operation of mining or quarrying the taconite, and the remainder to the concentrating 
15.29 	plant and to the processes of concentration, and with respect to each thereof giving due 
15.30 	consideration to the relative extent of such operations performed in each such taxing 
15.31 	district. The commissioner's order making such apportionment shall be subject to review 
15.32 	by the Tax Court at the instance of any of the interested taxing districts, in the same 
15.33 	manner as other orders of the commissioner.
16.1 	(b) Four cents per taxable ton shall be allocated to cities and organized townships 
16.2 	affected by mining because their boundaries are within three miles of a taconite mine pit 
16.3 	that has been actively mined in at least one of the prior three years. If a city or town is 
16.4 	located near more than one mine meeting these criteria, the city or town is eligible to 
16.5 	receive aid calculated from only the mine producing the largest taxable tonnage. When 
16.6 	more than one municipality qualifies for aid based on one company's production, the aid 
16.7 	must be apportioned among the municipalities in proportion to their populations. Of the 
16.8 	amounts distributed under this paragraph to each municipality, one-half must be used for 
16.9 	infrastructure improvement projects, and one-half must be used for projects in which two 
16.10 	or more municipalities cooperate. Each municipality that receives a distribution under this 
16.11 	paragraph must report annually to the Iron Range Resources and Rehabilitation Board and 
16.12 	the commissioner of Iron Range resources and rehabilitation on the projects involving 
16.13 	cooperation with other municipalities.
16.14 	(c) The amount that would have been computed for the current year under Minnesota 
16.15 	Statutes 2008, section 126C.21, subdivision 4, for a school district within which the 
16.16 	taconite was mined or quarried or within which the concentrate is produced is added to 
16.17 	the amount to be distributed to the cities and towns located within that school district as 
16.18 	provided in paragraph (a).

16.19 	EFFECTIVE DATE. This section is effective for distributions in 2012 and 
16.20 	thereafter.

16.21 	Sec. 28. Minnesota Statutes 2010, section 298.28, subdivision 4, is amended to read:
16.22 		Subd. 4.School districts. (a) 23.15 cents per taxable ton, plus the increase provided 
16.23 	in paragraph (d), less the amount that would have been computed under Minnesota 
16.24 	Statutes 2008, section 126C.21, subdivision 4, for the current year for that district, must be 
16.25 	allocated to qualifying school districts to be distributed, based upon the certification of the 
16.26 	commissioner of revenue, under paragraphs (b), (c), and (f).
16.27 	(b)(i) 3.43 cents per taxable ton must be distributed to the school districts in which 
16.28 	the lands from which taconite was mined or quarried were located or within which the 
16.29 	concentrate was produced. The distribution must be based on the apportionment formula 
16.30 	prescribed in subdivision 2.
16.31 	(ii) Four cents per taxable ton from each taconite facility must be distributed to 
16.32 	each affected school district for deposit in a fund dedicated to building maintenance 
16.33 	and repairs, as follows:
17.1 	(1) proceeds from Keewatin Taconite or its successor are distributed to Independent 
17.2 	School Districts Nos. 316, Coleraine, and 319, Nashwauk-Keewatin, or their successor 
17.3 	districts;
17.4 	(2) proceeds from the Hibbing Taconite Company or its successor are distributed to 
17.5 	Independent School Districts Nos. 695, Chisholm, and 701, Hibbing, or their successor 
17.6 	districts;
17.7 	(3) proceeds from the Mittal Steel Company and Minntac or their successors are 
17.8 	distributed to Independent School Districts Nos. 712, Mountain Iron-Buhl, 706, Virginia, 
17.9 	2711, Mesabi East, and 2154, Eveleth-Gilbert, or their successor districts;
17.10 	(4) proceeds from the Northshore Mining Company or its successor are distributed 
17.11 	to Independent School Districts Nos. 2142, St. Louis County, and 381, Lake Superior, 
17.12 	or their successor districts; and
17.13 	(5) proceeds from United Taconite or its successor are distributed to Independent 
17.14 	School Districts Nos. 2142, St. Louis County, and 2154, Eveleth-Gilbert, or their 
17.15 	successor districts.
17.16 	Revenues that are required to be distributed to more than one district shall be 
17.17 	apportioned according to the number of pupil units identified in section 126C.05, 
17.18 	subdivision 1, enrolled in the second previous year.
17.19 	(c)(i) 15.72 cents per taxable ton, less any amount distributed under paragraph (e), 
17.20 	shall be distributed to a group of school districts comprised of those school districts which 
17.21 	qualify as a tax relief area under section 273.134, paragraph (b), or in which there is a 
17.22 	qualifying municipality as defined by section 273.134, paragraph (a), in direct proportion 
17.23 	to school district indexes as follows: for each school district, its pupil units determined 
17.24 	under section 126C.05 for the prior school year shall be multiplied by the ratio of the 
17.25 	average adjusted net tax capacity per pupil unit for school districts receiving aid under 
17.26 	this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year 
17.27 	ending prior to distribution to the adjusted net tax capacity per pupil unit of the district. 
17.28 	Each district shall receive that portion of the distribution which its index bears to the sum 
17.29 	of the indices for all school districts that receive the distributions.
17.30 	(ii) Notwithstanding clause (i), each school district that receives a distribution 
17.31 	under sections 298.018; 298.23 to 298.28, exclusive of any amount received under this 
17.32 	clause; 298.34 to 298.39; 298.391 to 298.396; 298.405; or any law imposing a tax on 
17.33 	severed mineral values after reduction for any portion distributed to cities and towns 
17.34 	under section 126C.48, subdivision 8, paragraph (5), that is less than the amount of its 
17.35 	levy reduction under section 126C.48, subdivision 8, for the second year prior to the 
17.36 	year of the distribution shall receive a distribution equal to the difference; the amount 
18.1 	necessary to make this payment shall be derived from proportionate reductions in the 
18.2 	initial distribution to other school districts under clause (i). If there are insufficient tax 
18.3 	proceeds to make the distribution provided under this paragraph in any year, money must 
18.4 	be transferred from the taconite property tax relief account in subdivision 6, to the extent 
18.5 	of the shortfall in the distribution.
18.6 	(d) Any school district described in paragraph (c) where a levy increase pursuant to 
18.7 	section 126C.17, subdivision 9, was authorized by referendum for taxes payable in 2001, 
18.8 	shall receive a distribution of 21.3 cents per ton. Each district shall receive $175 times the 
18.9 	pupil units identified in section 126C.05, subdivision 1, enrolled in the second previous 
18.10 	year or the 1983-1984 school year, whichever is greater, less the product of 1.8 percent 
18.11 	times the district's taxable net tax capacity in the second previous year.
18.12 	If the total amount provided by paragraph (d) is insufficient to make the payments 
18.13 	herein required then the entitlement of $175 per pupil unit shall be reduced uniformly 
18.14 	so as not to exceed the funds available. Any amounts received by a qualifying school 
18.15 	district in any fiscal year pursuant to paragraph (d) shall not be applied to reduce general 
18.16 	education aid which the district receives pursuant to section 126C.13 or the permissible 
18.17 	levies of the district. Any amount remaining after the payments provided in this paragraph 
18.18 	shall be paid to the commissioner of Iron Range resources and rehabilitation who shall 
18.19 	deposit the same in the taconite environmental protection fund and the Douglas J. Johnson 
18.20 	economic protection trust fund as provided in subdivision 11.
18.21 	Each district receiving money according to this paragraph shall reserve the lesser of 
18.22 	the amount received under this paragraph or $25 times the number of pupil units served 
18.23 	in the district. It may use the money for early childhood programs or for outcome-based 
18.24 	learning programs that enhance the academic quality of the district's curriculum. The 
18.25 	outcome-based learning programs must be approved by the commissioner of education.
18.26 	(e) There shall be distributed to any school district the amount which the school 
18.27 	district was entitled to receive under section 298.32 in 1975.
18.28 	(f) Four cents per taxable ton must be distributed to qualifying school districts 
18.29 	according to the distribution specified in paragraph (b), clause (ii), and two cents per 
18.30 	taxable ton must be distributed according to the distribution specified in paragraph 
18.31 	(c). These amounts are not subject to sections 126C.21, subdivision 4, and 126C.48, 
18.32 	subdivision 8.

18.33 	EFFECTIVE DATE. This section is effective for distributions in 2012 and 
18.34 	thereafter.

18.35 	Sec. 29. KITTSON CENTRAL SCHOOL CLOSING.
 19.1 	Independent School District No. 356, Lancaster, is eligible for sparsity revenue 
19.2 	calculated under Minnesota Statutes, section 126C.10, subdivision 8a, for fiscal year 2012 
19.3 	and later, if the board has adopted a written resolution at any time prior to the start of 
19.4 	the 2011-2012 school year to notify the commissioner and request aid under Minnesota 
19.5 	Statutes, section 126C.10, subdivision 8a. For the purposes of this section, the school 
19.6 	district shall be eligible for aid under Minnesota Statutes, section 126C.10, subdivision 
19.7 	8a, as a result of the closure of the Kennedy Elementary School in Independent School 
19.8 	District No. 2171, Kittson Central.

19.9 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2012 
19.10 	and later.

19.11 	Sec. 30. NORTHLAND COMMUNITY SCHOOL CLOSING.
 19.12 	(a) Independent School District No. 118, Northland Community Schools, is eligible 
19.13 	for sparsity revenue calculated under Minnesota Statutes, section 126C.10, subdivision 8a, 
19.14 	for fiscal year 2012 and later, if the board has adopted the required written resolution at 
19.15 	least 60 days prior to the start of fiscal year 2012.
19.16 	(b) If the school district adopts a written resolution under paragraph (a), in fiscal 
19.17 	year 2012, the commissioner must provide sparsity aid to the district in an amount equal 
19.18 	to the amount that the district would have received under Minnesota Statutes, section 
19.19 	126C.10, subdivision 8a, in fiscal year 2011, if the provisions of paragraph (a) had been in 
19.20 	effect. The school district must recognize the sparsity aid provided under this paragraph as 
19.21 	revenue in fiscal year 2011.

19.22 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2012.

19.23 	Sec. 31. SCHOOL DISTRICT LEVY ADJUSTMENTS.
 19.24 		Subdivision 1.Tax rate adjustment. The commissioner of education must adjust 
19.25 	each school district tax rate established under Minnesota Statutes, chapters 120B to 127A, 
19.26 	by multiplying the rate by the ratio of the statewide total tax capacity for assessment year 
19.27 	2010 as it existed prior to the passage of House File 42, or a similarly styled bill, to the 
19.28 	statewide total tax capacity for assessment year 2010.
19.29 		Subd. 2.Equalizing factors. The commissioner of education must adjust each 
19.30 	school district equalizing factor established under Minnesota Statutes, chapters 120B to 
19.31 	127A, by dividing the equalizing factor by the ratio of the statewide total tax capacity for 
19.32 	assessment year 2010 as it existed prior to the passage of House File 42, or a similarly 
19.33 	styled bill, to the statewide total tax capacity for assessment year 2010.

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

20.2 	Sec. 32. APPROPRIATIONS.
 20.3 		Subdivision 1.Department of Education. The sums indicated in this section are 
20.4 	appropriated from the general fund to the Department of Education for the fiscal years 
20.5 	designated.
20.6 		Subd. 2.General education aid. For general education aid under Minnesota 
20.7 	Statutes, section 126C.13, subdivision 4:

20.8		$
	 5,695,383,000
	.....
	2012
	
20.9		$
	 5,862,929,000
	.....
	2013
	
20.10 	The 2012 appropriation includes $1,678,539,000 for 2011 and $4,016,844,000 
20.11 	for 2012.
20.12 	The 2013 appropriation includes $1,717,378,000 for 2012 and $4,145,551,000 
20.13 	for 2013.
20.14 		Subd. 3.Enrollment options transportation. For transportation of pupils attending 
20.15 	postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation 
20.16 	of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

20.17		$
	31,000
	.....
	2012
	
20.18		$
	32,000
	.....
	2013
	
20.19 		Subd. 4.Abatement revenue. For abatement aid under Minnesota Statutes, section 
20.20 	127A.49:

20.21		$
	1,452,000
	.....
	2012
	
20.22		$
	1,635,000
	.....
	2013
	
20.23 	The 2012 appropriation includes $346,000 for 2011 and $1,106,000 for 2012.
20.24 	The 2013 appropriation includes $473,000 for 2012 and $1,162,000 for 2013.
20.25 		Subd. 5.Consolidation transition. For districts consolidating under Minnesota 
20.26 	Statutes, section 123A.485:

20.27		$
	145,000
	.....
	2012
	
20.28		$
	210,000
	.....
	2013
	
20.29 	The 2012 appropriation includes $145,000 for 2011 and $0 for 2012.
20.30 	The 2013 appropriation includes $0 for 2012 and $210,000 for 2013.
20.31 		Subd. 6.Nonpublic pupil education aid. For nonpublic pupil education aid under 
20.32 	Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:

21.1		$
	16,101,000
	.....
	2012
	
21.2		$
	16,023,000
	.....
	2013
	
21.3 	The 2012 appropriation includes $5,078,000 for 2011 and $11,023,000 for 2012.
21.4 	The 2013 appropriation includes $4,724,000 for 2012 and $11,299,000 for 2013.
21.5 		Subd. 7.Nonpublic pupil transportation. For nonpublic pupil transportation aid 
21.6 	under Minnesota Statutes, section 123B.92, subdivision 9:

21.7		$
	19,007,000
	.....
	2012
	
21.8		$
	19,033,000
	.....
	2013
	
21.9 	The 2012 appropriation includes $5,895,000 for 2011 and $13,112,000 for 2012.
21.10 	The 2013 appropriation includes $5,619,000 for 2012 and $13,414,000 for 2013.
21.11 		Subd. 8.One-room schoolhouse. For a grant to Independent School District No. 
21.12 	690, Warroad, to operate the Angle Inlet School:

21.13		$
	65,000
	.....
	2012
	
21.14		$
	65,000
	.....
	2013
	
21.15 		Subd. 9.Compensatory revenue pilot project. For grants for participation in the 
21.16 	compensatory revenue pilot program under Laws 2005, First Special Session chapter 5, 
21.17 	article 1, section 50:

21.18		$
	2,175,000
	.....
	2012
	
21.19		$
	2,175,000
	.....
	2013
	
21.20 	Of this amount, $1,500,000 in each year is for a grant to Independent School District 
21.21 	No. 11, Anoka-Hennepin; $75,000 in each year is for a grant to Independent School 
21.22 	District No. 286, Brooklyn Center; $210,000 in each year is for a grant to Independent 
21.23 	School District No. 279, Osseo; $160,000 in each year is for a grant to Independent 
21.24 	School District No. 281, Robbinsdale; $165,000 in each year is for a grant to Independent 
21.25 	School District No. 535, Rochester; and $65,000 in each year is for a grant to Independent 
21.26 	School District No. 833, South Washington.
21.27 	If a grant to a specific school district is not awarded, the commissioner may increase 
21.28 	the aid amounts to any of the remaining participating school districts.
21.29 	This appropriation is part of the base budget for subsequent fiscal years.
21.30 		Subd. 10.Compensatory formula pilot project aid. For grants for compensatory 
21.31 	pilot project aid as calculated under this subdivision:

21.32		$
	11,957,000
	.....
	2012
	
21.33		$
	5,124,000
	.....
	2013
	
22.1 	For fiscal year 2012 only, a district which has a pupil unit count that is in the top ten 
22.2 	largest pupil unit counts is eligible for the greater of zero or $1,500 times the number of 
22.3 	compensatory pupil units, minus the amount of compensatory education revenue received 
22.4 	by the district under Minnesota Statutes, section 126C.10, subdivision 3. A district which 
22.5 	has a pupil unit count that is between the 11th and 20th largest pupil unit counts is eligible 
22.6 	for the greater of zero or $1,200 times the number of compensatory pupil units, minus 
22.7 	the amount of compensatory education revenue received by the district under Minnesota 
22.8 	Statutes, section 126C.10, subdivision 3.
22.9 	The 2012 appropriation includes $0 for 2011 and $11,957,000 for 2012.
22.10 	The 2013 appropriation includes $5,124,000 for 2012 and $0 for 2013.
22.11 	This is a onetime appropriation.

22.12 	Sec. 33. APPROPRIATIONS; MINNESOTA DEPARTMENT OF NATURAL 
22.13 	RESOURCES.
 22.14 	The sums indicated in this section are appropriated from the general fund to the 
22.15 	Minnesota Department of Natural Resources for the fiscal years designated:

22.16		$
	0
	.....
	2012
	
22.17		$
	2,072,000
	.....
	2013
	
22.18 	This appropriation must only be used for minerals management activities for school 
22.19 	trust lands.

22.20 	Sec. 34. REPEALER AND REENACTMENT.
 22.21 	(a) Laws 2009, chapter 88, article 12, section 23, paragraph (c), is repealed and 
22.22 	Minnesota Statutes 2008, section 126C.21, subdivision 4, is reenacted for revenue for 
22.23 	fiscal year 2012 and thereafter.
22.24 	(b) Minnesota Statutes 2010, sections 122A.61; 123B.05; and 126C.10, subdivision 
22.25 	5, are repealed.

22.26 	ARTICLE 2
22.27 	ACADEMIC EXCELLENCE

22.28 	Section 1. Minnesota Statutes 2010, section 13D.02, is amended by adding a 
22.29 	subdivision to read:
22.30 		Subd. 5.School boards; interactive technology with an audio and visual link.
 22.31 	A school board conducting a meeting under this section may use interactive technology 
23.1 	with an audio and visual link to conduct the meeting if the school board complies with 
23.2 	all other requirements under this section.

23.3 	Sec. 2. Minnesota Statutes 2010, section 120B.023, subdivision 2, is amended to read:
23.4 		Subd. 2.Revisions and reviews required. (a) The commissioner of education must 
23.5 	revise and appropriately embed technology and information literacy standards consistent 
23.6 	with recommendations from school media specialists into the state's academic standards 
23.7 	and graduation requirements and implement a review cycle for state academic standards 
23.8 	and related benchmarks, consistent with this subdivision. The commissioner must revise 
23.9 	and align the state's academic standards and graduation requirements, consistent with the 
23.10 	review cycle established in this subdivision and the requirements of chapter 14, but must 
23.11 	not proceed to finally adopt revised and realigned academic standards and graduation 
23.12 	requirements in rule without first receiving specific legislative authority to do so. During 
23.13 	each review cycle, the commissioner also must examine the alignment of each required 
23.14 	academic standard and related benchmark with the knowledge and skills students need for 
23.15 	college readiness and advanced work in the particular subject area.
23.16 	(b) The commissioner in the 2006-2007 school year must revise and align the state's 
23.17 	academic standards and high school graduation requirements in mathematics to require 
23.18 	that students satisfactorily complete the revised mathematics standards, beginning in the 
23.19 	2010-2011 school year. Under the revised standards:
23.20 	(1) students must satisfactorily complete an algebra I credit by the end of eighth 
23.21 	grade; and
23.22 	(2) students scheduled to graduate in the 2014-2015 school year or later must 
23.23 	satisfactorily complete an algebra II credit or its equivalent.
23.24 	The commissioner also must ensure that the statewide mathematics assessments 
23.25 	administered to students in grades 3 through 8 and 11 are aligned with the state academic 
23.26 	standards in mathematics, consistent with section 120B.30, subdivision 1, paragraph 
23.27 	(b). The commissioner must implement a review of the academic standards and related 
23.28 	benchmarks in mathematics beginning in the 2015-2016 school year.
23.29 	(c) The commissioner in the 2007-2008 school year must revise and align the state's 
23.30 	academic standards and high school graduation requirements in the arts to require that 
23.31 	students satisfactorily complete the revised arts standards beginning in the 2010-2011 
23.32 	school year. The commissioner must implement a review of the academic standards and 
23.33 	related benchmarks in arts beginning in the 2016-2017 school year.
23.34 	(d) The commissioner in the 2008-2009 school year must revise and align the state's 
23.35 	academic standards and high school graduation requirements in science to require that 
24.1 	students satisfactorily complete the revised science standards, beginning in the 2011-2012 
24.2 	school year. Under the revised standards, students scheduled to graduate in the 2014-2015 
24.3 	school year or later must satisfactorily complete a chemistry or physics credit. The 
24.4 	commissioner must implement a review of the academic standards and related benchmarks 
24.5 	in science beginning in the 2017-2018 school year.
24.6 	(e) The commissioner in the 2009-2010 school year must revise and align the state's 
24.7 	academic standards and high school graduation requirements in language arts to require 
24.8 	that students satisfactorily complete the revised language arts standards beginning in the 
24.9 	2012-2013 school year. The commissioner must implement a review of the academic 
24.10 	standards and related benchmarks in language arts beginning in the 2018-2019 school year.
24.11 	(f) The commissioner in the 2010-2011 school year must revise and align review
24.12 	the state's academic standards and high school graduation requirements in social studies 
24.13 	to require that students must satisfactorily complete the revised social studies standards
24.14 	beginning in the 2013-2014 2014-2015 school year. The commissioner must again
24.15 	implement a review of the academic standards and related benchmarks in social studies 
24.16 	beginning in the 2019-2020 2020-2021 school year.
24.17 	(g) School districts and charter schools must revise and align local academic 
24.18 	standards and high school graduation requirements in health, world languages, and career 
24.19 	and technical education to require students to complete the revised standards beginning 
24.20 	in a school year determined by the school district or charter school. School districts and 
24.21 	charter schools must formally establish a periodic review cycle for the academic standards 
24.22 	and related benchmarks in health, world languages, and career and technical education.

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

24.24 	Sec. 3. Minnesota Statutes 2010, section 120B.30, subdivision 1, is amended to read:
24.25 		Subdivision 1.Statewide testing.  (a) The commissioner, with advice from experts 
24.26 	with appropriate technical qualifications and experience and stakeholders, consistent with 
24.27 	subdivision 1a, shall include in the comprehensive assessment system, for each grade 
24.28 	level to be tested, state-constructed tests developed from and aligned with the state's 
24.29 	required academic standards under section 120B.021, include multiple choice questions, 
24.30 	and be administered annually to all students in grades 3 through 8. State-developed high 
24.31 	school tests aligned with the state's required academic standards under section 120B.021 
24.32 	and administered to all high school students in a subject other than writing must include 
24.33 	multiple choice questions. The commissioner shall establish one or more months during 
24.34 	which schools shall administer the tests to students each school year. For students enrolled 
24.35 	in grade 8 before the 2005-2006 school year, Minnesota basic skills tests in reading, 
25.1 	mathematics, and writing shall fulfill students' basic skills testing requirements for a 
25.2 	passing state notation. The passing scores of basic skills tests in reading and mathematics 
25.3 	are the equivalent of 75 percent correct for students entering grade 9 based on the first 
25.4 	uniform test administered in February 1998. Students who have not successfully passed 
25.5 	a Minnesota basic skills test by the end of the 2011-2012 school year must pass the 
25.6 	graduation-required assessments for diploma under paragraph (c).
25.7 	(b) The state assessment system must be aligned to the most recent revision of 
25.8 	academic standards as described in section 120B.023 in the following manner:
25.9 	(1) mathematics;
25.10 	(i) grades 3 through 8 beginning in the 2010-2011 school year; and
25.11 	(ii) high school level beginning in the 2013-2014 school year;
25.12 	(2) science; grades 5 and 8 and at the high school level beginning in the 2011-2012 
25.13 	school year; and
25.14 	(3) language arts and reading; grades 3 through 8 and high school level beginning in 
25.15 	the 2012-2013 school year.
25.16 	(c) For students enrolled in grade 8 in the 2005-2006 school year and later, only the 
25.17 	following options shall fulfill students' state graduation test requirements:
25.18 	(1) for reading and mathematics:
25.19 	(i) obtaining an achievement level equivalent to or greater than proficient as 
25.20 	determined through a standard setting process on the Minnesota comprehensive 
25.21 	assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing 
25.22 	score as determined through a standard setting process on the graduation-required 
25.23 	assessment for diploma in grade 10 for reading and grade 11 for mathematics or 
25.24 	subsequent retests;
25.25 	(ii) achieving a passing score as determined through a standard setting process on the 
25.26 	state-identified language proficiency test in reading and the mathematics test for English 
25.27 	language learners or the graduation-required assessment for diploma equivalent of those 
25.28 	assessments for students designated as English language learners;
25.29 	(iii) achieving an individual passing score on the graduation-required assessment 
25.30 	for diploma as determined by appropriate state guidelines for students with an individual 
25.31 	education plan or 504 plan;
25.32 	(iv) obtaining achievement level equivalent to or greater than proficient as 
25.33 	determined through a standard setting process on the state-identified alternate assessment 
25.34 	or assessments in grade 10 for reading and grade 11 for mathematics for students with 
25.35 	an individual education plan; or
26.1 	(v) achieving an individual passing score on the state-identified alternate assessment 
26.2 	or assessments as determined by appropriate state guidelines for students with an 
26.3 	individual education plan; and
26.4 	(2) for writing:
26.5 	(i) achieving a passing score on the graduation-required assessment for diploma;
26.6 	(ii) achieving a passing score as determined through a standard setting process on 
26.7 	the state-identified language proficiency test in writing for students designated as English 
26.8 	language learners;
26.9 	(iii) achieving an individual passing score on the graduation-required assessment 
26.10 	for diploma as determined by appropriate state guidelines for students with an individual 
26.11 	education plan or 504 plan; or
26.12 	(iv) achieving an individual passing score on the state-identified alternate assessment 
26.13 	or assessments as determined by appropriate state guidelines for students with an 
26.14 	individual education plan.
26.15 	(d) Students enrolled in grade 8 in any school year from the 2005-2006 school 
26.16 	year to the 2009-2010 2008-2009 school year who do not pass the mathematics 
26.17 	graduation-required assessment for diploma under paragraph (c) are eligible to receive a 
26.18 	high school diploma if they:
26.19 	(1) complete with a passing score or grade all state and local coursework and credits 
26.20 	required for graduation by the school board granting the students their diploma;
26.21 	(2) participate in district-prescribed academic remediation in mathematics; and
26.22 	(3) fully participate in at least two retests of the mathematics GRAD test or until 
26.23 	they pass the mathematics GRAD test, whichever comes first. A school, district, or 
26.24 	charter school must place a student's highest assessment score for each of the following 
26.25 	assessments on the student's high school transcript: the mathematics Minnesota 
26.26 	Comprehensive Assessment, reading Minnesota Comprehensive Assessment, and writing 
26.27 	Graduation-Required Assessment for Diploma, and when applicable, the mathematics 
26.28 	Graduation-Required Assessment for Diploma and reading Graduation-Required 
26.29 	Assessment for Diploma.
26.30 	In addition, the school board granting the students their diplomas may formally 
26.31 	decide to include a notation of high achievement on the high school diplomas of those 
26.32 	graduating seniors who, according to established school board criteria, demonstrate 
26.33 	exemplary academic achievement during high school.
26.34 	(e) The 3rd through 8th grade and high school test results shall be available to 
26.35 	districts for diagnostic purposes affecting student learning and district instruction and 
27.1 	curriculum, and for establishing educational accountability. The commissioner must 
27.2 	disseminate to the public the high school test results upon receiving those results.
27.3 	(f) The 3rd through 8th grade and high school tests must be aligned with state 
27.4 	academic standards. The commissioner shall determine the testing process and the order 
27.5 	of administration. The statewide results shall be aggregated at the site and district level, 
27.6 	consistent with subdivision 1a.
27.7 	(g) In addition to the testing and reporting requirements under this section, the 
27.8 	commissioner shall include the following components in the statewide public reporting 
27.9 	system:
27.10 	(1) uniform statewide testing of all students in grades 3 through 8 and at the high 
27.11 	school level that provides appropriate, technically sound accommodations or alternate 
27.12 	assessments;
27.13 	(2) educational indicators that can be aggregated and compared across school 
27.14 	districts and across time on a statewide basis, including average daily attendance, high 
27.15 	school graduation rates, and high school drop-out rates by age and grade level;
27.16 	(3) state results on the American College Test; and
27.17 	(4) state results from participation in the National Assessment of Educational 
27.18 	Progress so that the state can benchmark its performance against the nation and other 
27.19 	states, and, where possible, against other countries, and contribute to the national effort 
27.20 	to monitor achievement.

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

27.22 	Sec. 4. Minnesota Statutes 2010, section 120B.30, is amended by adding a subdivision 
27.23 	to read:
27.24 		Subd. 1b.High school assessments. (a) Notwithstanding any other law to the 
27.25 	contrary, the commissioner shall establish a system of high school assessments for students 
27.26 	entering grade 8 in the 2012-2013 school year and later that provides information on the 
27.27 	college and career readiness of Minnesota students and fulfills federal accountability 
27.28 	requirements, consistent with this subdivision and related rules. For purposes of this 
27.29 	subdivision, "college and career readiness" means the knowledge and skills that a high 
27.30 	school graduate needs to undertake either credit-bearing coursework at a two-year or 
27.31 	four-year college or university or career-track employment.
27.32 	(b) The commissioner shall establish and administer a high school reading and 
27.33 	writing exam at the end of grade 10. The reading and writing exam must conform with 
27.34 	the following:
28.1 	(1) align with the most recently revised academic content standards under section 
28.2 	120B.023, subdivision 2;
28.3 	(2) produce independent scores for each content area;
28.4 	(3) include both multiple-choice and open-ended items on the reading portion of the 
28.5 	exam to assess skills defined in the state's academic content standards;
28.6 	(4) be designed for computer administration and scoring so that, beginning the 
28.7 	second year a computerized test is administered and as soon as practicable during the 
28.8 	first year a computerized test is administered, the exam results of students who take 
28.9 	computerized tests are available to the school or district within five full school days after 
28.10 	the exam is administered, among other design characteristics;
28.11 	(5) allow for remediation and computer retests not sooner than six weeks after the 
28.12 	previous administration of the reading and writing portions of the exam;
28.13 	(6) use achievement-level descriptors in reading and writing that define a student's 
28.14 	readiness for college or a career;
28.15 	(7) require all general education students, as a condition of graduating, to achieve 
28.16 	passing scores that indicate that students' performance is proficient in reading and writing 
28.17 	and that are established through a professionally recognized methodology, consistent 
28.18 	with this paragraph;
28.19 	(8) require general education students to participate in a locally developed 
28.20 	remediation plan if they do not achieve a passing score;
28.21 	(9) provide a state-level student appeals process that accommodates alternative 
28.22 	measures to demonstrate students' college and career readiness and is available only to 
28.23 	those limited number of students in the second semester of their senior year, not exceeding 
28.24 	two percent of students in the graduating class, who are unable to demonstrate reading or 
28.25 	writing proficiency on the assessment but can demonstrate equivalent levels of knowledge 
28.26 	and skill based on the alternative measures; and
28.27 	(10) allow an eligible student to meet this exam requirement through an alternative 
28.28 	method:
28.29 	(i) for high school students who transfer into Minnesota from another state where 
28.30 	the high school reading and writing course and graduation requirements are of equal 
28.31 	or greater rigor, meet that state's federal accountability exams requirements in reading 
28.32 	or writing, as applicable;
28.33 	(ii) allow a student who has an active individualized education program to achieve a 
28.34 	passing status at an individual level as prescribed by the commissioner; or
29.1 	(iii) waive the required exam for a high school student who is an English language 
29.2 	learner under section 124D.59 and who has been enrolled for four or fewer school years in 
29.3 	a school in which English is the primary language of instruction.
29.4 	(c) All general education students must receive a passing score in both reading 
29.5 	and writing to graduate, consistent with paragraphs (b) and (e). The commissioner must 
29.6 	establish the passing score that indicates a student's performance meets grade-level 
29.7 	standards for proficiency.
29.8 	(d) The commissioner shall establish statewide end-of-course exams in subjects 
29.9 	equivalent to high school algebra and biology. These exams must conform with the 
29.10 	following:
29.11 	(1) align with the most recently revised academic content standards under section 
29.12 	120B.023, subdivision 2;
29.13 	(2) include both multiple-choice and open-ended items that assess the appropriate 
29.14 	algebra and biology knowledge and skills contained in the state's academic content 
29.15 	standards;
29.16 	(3) be designed for computer administration and scoring so that, beginning the 
29.17 	second year a computerized test is administered and as soon as practicable during the 
29.18 	first year a computerized test is administered, the exam results of students who take 
29.19 	computerized tests are available to the school or district within five full school days after 
29.20 	the exam is administered, among other design characteristics;
29.21 	(4) be administered at regular intervals that align with the most common high school 
29.22 	schedules in Minnesota;
29.23 	(5) generate achievement levels established through a professionally recognized 
29.24 	methodology;
29.25 	(6) use achievement-level descriptors that define a student's college and career 
29.26 	readiness;
29.27 	(7) notwithstanding section 120B.30, subdivision 1a, paragraph (a), clause (2), 
29.28 	require all general education students, as a condition of graduating, to achieve passing 
29.29 	scores that indicate that students' performance is proficient in algebra and biology and 
29.30 	that are established through a professionally recognized methodology, consistent with 
29.31 	this paragraph;
29.32 	(8) require a student who does not pass a high school algebra or biology course to:
29.33 	(i) retake the course or complete a district-authorized credit recovery class; and
29.34 	(ii) retake the end-of-course assessment within a regularly scheduled administration 
29.35 	window;
30.1 	(9) allow an eligible student to meet this requirement through an alternative method 
30.2 	that demonstrates the student's college and career readiness:
30.3 	(i) for high school students who transfer into Minnesota from another state where 
30.4 	the algebra or biology course content, as applicable, is of equal or greater rigor, pass that 
30.5 	state's high school course and graduation requirements in algebra or biology, as applicable;
30.6 	(ii) allow a student who has an active individualized education program to achieve a 
30.7 	passing status at an individual level as prescribed by the commissioner; or
30.8 	(iii) waive the required exam for a high school student who is an English language 
30.9 	learner under section 124D.59 and who has been enrolled for four or fewer years in a 
30.10 	school in which English is the primary language of instruction; 
30.11 	(10) use three consecutive school years of research and analysis through the 
30.12 	2015-2016 school year, as prescribed by the commissioner, to calculate and report 
30.13 	an alignment index that compares students' final grades in these courses with their 
30.14 	end-of-course exam scores;
30.15 	(11) subsequent to calculating and reporting the alignment index under clause (10), 
30.16 	require schools that are highly misaligned for two or more consecutive school years to 
30.17 	transmit written notice of the misalignment to all parents of students enrolled in the school, 
30.18 	as prescribed by the commissioner; and
30.19 	(12) when schools are highly misaligned for two or more consecutive years under 
30.20 	clause (11), use school district funds under section 122A.60, subdivision 1a, paragraph 
30.21 	(a), to correct the misalignment.
30.22 	(e) The requirements of this subdivision apply to students in public schools, 
30.23 	including charter schools, who enter grade 8 in the 2012-2013 school year or later. The 
30.24 	commissioner may establish a transition period where students who enter grade 8 in 
30.25 	the 2012-2013 or 2013-2014 school year graduate either under the graduation-required 
30.26 	assessment for diploma requirements under section 120B.30, subdivision 1, or through a 
30.27 	staggered implementation of this subdivision. During the transition period, the proficiency 
30.28 	level of any federally required or state-required interim passing score in reading or writing 
30.29 	must be comparable to the passing scores currently required for reading and writing under 
30.30 	the graduation-required assessment for diploma. The commissioner may seek authority 
30.31 	from the legislature to adjust the timeline under this paragraph if  circumstances such as 
30.32 	changes in federal law governing educational accountability and assessment warrant 
30.33 	such an adjustment.
30.34 	(f) To fully implement this subdivision and enable school districts to provide 
30.35 	intervention and support to struggling students and improve instruction for all students, 
30.36 	the commissioner must provide districts with:
31.1 	(1) benchmark assessments that are aligned with the high school reading and writing 
31.2 	assessment and algebra and biology end-of-course exams; and
31.3 	(2) an item bank available to teachers for creating formative assessments to help 
31.4 	students prepare for the high school reading and writing assessment and algebra and 
31.5 	biology end-of-course exams.
31.6 	(g) The commissioner shall expand the membership and purpose of the Assessment 
31.7 	Advisory Committee established under section 120B.365 to include assessment experts 
31.8 	and practitioners from both secondary and postsecondary education systems and other 
31.9 	appropriate stakeholders to monitor the implementation of and student outcomes based on 
31.10 	the end-of-course exams and policies and the state support available to districts, including 
31.11 	small or rural districts, under this subdivision. This committee shall report annually by 
31.12 	February 15 to the commissioner and the legislature on the implementation of and student 
31.13 	outcomes based on the exams and policies under this subdivision. Notwithstanding 
31.14 	section 15.059, subdivision 3, committee members shall not receive compensation, per 
31.15 	diem payments, or reimbursement for expenses.
31.16 	(h) The commissioner may not begin to develop additional statewide end-of-course 
31.17 	exams in geometry, chemistry, or physics until specifically authorized in law to do so.
31.18 	(i) A district or charter school must indicate on a student's transcript the student's 
31.19 	level of college and career readiness in reading, writing, algebra, and biology under this 
31.20 	subdivision after the levels have been established through a professionally recognized 
31.21 	methodology.

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

31.23 	Sec. 5. [120B.361] DISTRICT AND CHARTER SCHOOL AND SCHOOL 
31.24 	DISTRICT GRADING SYSTEM AND SCHOOL RECOGNITION PROGRAM.
31.25 		Subdivision 1.District and charter school and school district grades. (a) 
31.26 	Consistent with the state growth targets established under sections 120B.299 and 120B.35, 
31.27 	subdivision 3, paragraphs (a) and (b), and the school performance report cards under 
31.28 	section 120B.36, subdivision 1, an "A to F" grading system for district and charter schools 
31.29 	and school districts is established to help identify those schools and districts where 
31.30 	students are achieving low, medium, or high growth and achieving or not achieving 
31.31 	proficiency on statewide assessments under section 120B.30. For purposes of this section, 
31.32 	and using the state growth target, the commissioner annually must assign each district 
31.33 	and charter school and school district an "A to F" grade and then report that grade under 
31.34 	section 120B.36, subdivision 1, based on the following calculations:
32.1 	(1) 50 percent of a school's grade must be determined based on the numbers and 
32.2 	percentages of students in each applicable student category for which assessment data 
32.3 	is disaggregated under section 120B.35, subdivision 3, paragraph (b), clause (2), and 
32.4 	paragraph (c), who achieved proficiency on the statewide reading and mathematics 
32.5 	assessments under section 120B.30 in the previous school year;
32.6 	(2) 25 percent of a school's grade must be determined based on the numbers and 
32.7 	percentages of students in each applicable student category for which assessment data 
32.8 	is disaggregated under section 120B.35, subdivision 3, paragraph (b), clause (2), and 
32.9 	paragraph (c), who achieved low growth, medium growth, or high growth on the statewide 
32.10 	reading and mathematics assessments under section 120B.30 in the previous school year;
32.11 	(3) 15 percent of a school's grade must be determined based on the numbers and 
32.12 	percentages of students in each applicable student category for which assessment data 
32.13 	is disaggregated under section 120B.35, subdivision 3, paragraph (b), clause (2), and 
32.14 	paragraph (c), who achieved low growth and did not achieve proficiency on the statewide 
32.15 	reading assessments under section 120B.30 in the previous school year; 
32.16 	(4) ten percent of a school's grade must be determined based on the numbers and 
32.17 	percentages of students in each applicable student category for which assessment data 
32.18 	is disaggregated under section 120B.35, subdivision 3, paragraph (b), clause (2), and 
32.19 	paragraph (c), who achieved low growth and did not achieve proficiency on the statewide 
32.20 	mathematics assessments under section 120B.30 in the previous school year; and
32.21 	(5) using the calculations in clauses (1) to (4), a school district's grade must be 
32.22 	determined based on the combined average scores of all district schools.
32.23 	(b) The grade a school or district receives under this subdivision must accurately 
32.24 	reflect the differences in schools' performances based on students' proficiency and growth 
32.25 	and the calculations required under this subdivision. A school or district may appeal its 
32.26 	grade in writing to the commissioner within 30 days of receiving notice of its grade. The 
32.27 	commissioner's decision regarding the grade is final. Grades given under this section are 
32.28 	nonpublic data under section 13.02, subdivision 9, until not later than ten days after the 
32.29 	appeal under this paragraph is complete.
32.30 		Subd. 2.District and charter school recognition. (a) A school that received a 
32.31 	letter grade of "A" in the previous school year, improved at least one letter grade in the 
32.32 	previous school year, or improved two or more letter grades in the two previous school 
32.33 	years is eligible to receive a school recognition award.
32.34 	(b) A school recognition award under this subdivision equals $100 per enrollee for 
32.35 	each eligible school. The commissioner must distribute the award to each eligible school.
32.36 	(c) An eligible school that receives a school recognition award may use the award to:
33.1 	(1) pay onetime bonuses for licensed staff employed at the school;
33.2 	(2) pay onetime expenditures for educational equipment or materials to help 
33.3 	maintain or improve student academic achievement; or
33.4 	(3) temporarily employ licensed or otherwise qualified staff to help maintain or 
33.5 	improve student academic achievement. 
33.6 	Notwithstanding any other law to the contrary, an award a school receives under this 
33.7 	subdivision is not subject to a collective bargaining agreement.
33.8 	(d) To distribute the award at the school, and consistent with paragraph (c), an 
33.9 	eligible school may select a site team that includes at least the school principal or other 
33.10 	person having administrative control of the school, teachers employed at the school, the 
33.11 	parent of a student enrolled in the school, and a community representative to decide how 
33.12 	best to use the award. Alternatively, if by November 1 in the year in which the award 
33.13 	is made the site team cannot reach agreement or if no site team is selected, the school 
33.14 	principal or other person having administrative control of the school must distribute the 
33.15 	award. 

33.16 	EFFECTIVE DATE. This section is effective the day following final enactment 
33.17 	and requires the education commissioner to use student performance data beginning in the 
33.18 	2011-2012 school year, determine and report a letter grade for each school and district, 
33.19 	and distribute school recognition awards beginning in the 2012-2013 school year and later.

33.20 	Sec. 6. Minnesota Statutes 2010, section 122A.40, is amended by adding a subdivision 
33.21 	to read:
33.22 		Subd. 3a.Qualified economic offer. (a) Notwithstanding any law to the contrary, 
33.23 	if a school board offers teachers a biennial contract that includes a percentage increase 
33.24 	in total compensation at least equal to the district's biennial percentage increase in 
33.25 	basic revenue under section 126C.10, subdivision 2, as measured by the ratio of (1) the 
33.26 	most recent estimate of district basic revenue for the biennium that corresponds to the 
33.27 	prospective contract term to (2) district basic revenue for the previous biennium; teachers 
33.28 	may not strike for any issue relating to total compensation for the years covered by that 
33.29 	contract or submit any total compensation issue to interest arbitration under section 
33.30 	179A.16. District fund balances or other revenue sources or allocations are not to be 
33.31 	included in any calculation of compensation under this subdivision.
33.32 	(b) If a school board and teachers do not agree on the allocation of the total 
33.33 	compensation offered by the board under paragraph (a) by September 1 of an 
33.34 	even-numbered calendar year, the allocation of total compensation among teachers shall 
33.35 	be as follows:
34.1 	(1) existing employee benefits must continue at the same percentage of the total 
34.2 	compensation and in the same manner as provided in the teachers' immediately preceding 
34.3 	employment contract; and
34.4 	(2) based on the percentage increase in the general education formula allowance 
34.5 	for the biennium for which the contract is in effect, any remaining percentage of the total 
34.6 	compensation for the contract period being negotiated, after subtracting the value of 
34.7 	clause (1), is for increases in teacher salary based on first, alternative teacher pay plans 
34.8 	under section 122A.414; second, the number of years of service; and third, promotion 
34.9 	and advanced education.
34.10 	(c) For purposes of this subdivision, the following terms have the meanings given 
34.11 	them.
34.12 	"Teachers" means classroom teachers licensed under section 122A.18. At a school 
34.13 	board's election, teachers also means school administrators licensed under section 
34.14 	122A.14, subdivision 1. A school board that elects to offer school administrators an 
34.15 	employment contract under this subdivision must make the offer consistent with section 
34.16 	179A.20 and the provisions of this subdivision. A school board, at its discretion, also 
34.17 	may elect to offer any of its nonlicensed employees an employment contract under the 
34.18 	terms of this subdivision.
34.19 	"Total compensation" means the sum of the following cost components: (i) a school 
34.20 	district's total salary schedule costs excluding alternative teacher compensation under 
34.21 	sections 122A.413 to 122A.415; (ii) a school district's total salary costs of an alternative 
34.22 	teacher professional pay system under sections 122A.413 to 122A.415; (iii) total 
34.23 	health insurance costs paid by the school district for its teachers, excluding any district 
34.24 	contributions to health reimbursement arrangements (HRA) or health savings accounts 
34.25 	(HSA) for teachers; (iv) total life insurance costs paid by the school district for its teachers; 
34.26 	(v) total long-term disability costs paid by the school district for its teachers; (vi) total 
34.27 	dental insurance costs paid by the school district for its teachers; (vii) total extracurricular 
34.28 	costs paid to the school district's teachers; (viii) total costs of lane changes on the teachers' 
34.29 	salary schedule; (ix) total  Teachers Retirement Association costs paid by the school district 
34.30 	for its teachers; (x) total Social Security and Medicare (FICA) contribution costs paid by 
34.31 	the school district for its teachers; and (xi) other miscellaneous costs identified by the 
34.32 	school district as payment for teachers' services or benefits such as special school events, 
34.33 	extra service duty, summer school instruction, drivers' education outside the regular school 
34.34 	day and school year, and other direct salary payments to teachers or fringe benefit costs 
34.35 	paid by the school district for its teachers and not otherwise provided for in items (i) to (x). 

35.1 	EFFECTIVE DATE. This section is effective for contracts ratified beginning 
35.2 	July 1, 2011.

35.3 	Sec. 7. Minnesota Statutes 2010, section 122A.41, is amended by adding a subdivision 
35.4 	to read:
35.5 		Subd. 2a.Qualified economic offer. (a) Notwithstanding any law to the contrary, 
35.6 	if a school board offers teachers a biennial contract that includes a percentage increase 
35.7 	in total compensation at least equal to the district's biennial percentage increase in 
35.8 	basic revenue under section 126C.10, subdivision 2, as measured by the ratio of (1) the 
35.9 	most recent estimate of district basic revenue for the biennium that corresponds to the 
35.10 	prospective contract term to (2) district basic revenue for the previous biennium; teachers 
35.11 	may not strike for any issue relating to total compensation for the years covered by that 
35.12 	contract or submit any total compensation issue to interest arbitration under section 
35.13 	179A.16. District fund balances or other revenue sources or allocations are not to be 
35.14 	included in any calculation of compensation under this subdivision.
35.15 	(b) If a school board and teachers do not agree on the allocation of the total 
35.16 	compensation offered by the board under paragraph (a) by September 1 of an 
35.17 	even-numbered calendar year, the allocation of total compensation among teachers shall 
35.18 	be as follows:
35.19 	(1) existing employee benefits must continue at the same percentage of the total 
35.20 	compensation and in the same manner as provided in the teachers' immediately preceding 
35.21 	employment contract; and
35.22 	(2) based on the percentage increase in the general education formula allowance 
35.23 	for the biennium for which the contract is in effect, any remaining percentage of the total 
35.24 	compensation for the contract period being negotiated, after subtracting the value of 
35.25 	clause (1), is for increases in teacher salary based on first, alternative teacher pay plans 
35.26 	under section 122A.414; second, the number of years of service; and third, promotion 
35.27 	and advanced education.
35.28 	(c) For the purposes of this subdivision, the following terms have the meanings 
35.29 	given them.
35.30 	"Teachers" means classroom teachers licensed under section 122A.18. At a school 
35.31 	board's election, teachers also means school administrators licensed under section 
35.32 	122A.14, subdivision 1. A school board that elects to offer school administrators an 
35.33 	employment contract under this subdivision must make the offer consistent with section 
35.34 	179A.20 and the provisions of this subdivision. A school board, at its discretion, also 
36.1 	may elect to offer any of its nonlicensed employees an employment contract under the 
36.2 	terms of this subdivision.
36.3 	"Total compensation" means the sum of the following cost components: (i) a school 
36.4 	district's total salary schedule costs excluding alternative teacher compensation under 
36.5 	sections 122A.413 to 122A.415; (ii) a school district's total salary costs of an alternative 
36.6 	teacher professional pay system under sections 122A.413 to 122A.415; (iii) total 
36.7 	health insurance costs paid by the school district for its teachers, excluding any district 
36.8 	contributions to health reimbursement arrangements (HRA) or health savings accounts 
36.9 	(HSA) for teachers; (iv) total life insurance costs paid by the school district for its teachers; 
36.10 	(v) total long-term disability costs paid by the school district for its teachers; (vi) total 
36.11 	dental insurance costs paid by the school district for its teachers; (vii) total extracurricular 
36.12 	costs paid to the school district's teachers; (viii) total costs of lane changes on the teachers' 
36.13 	salary schedule; (ix) total  Teachers Retirement Association costs paid by the school district 
36.14 	for its teachers; (x) total Social Security and Medicare (FICA) contribution costs paid by 
36.15 	the school district for its teachers; and (xi) other miscellaneous costs identified by the 
36.16 	school district as payment for teachers' services or benefits such as special school events, 
36.17 	extra service duty, summer school instruction, drivers' education outside the regular school 
36.18 	day and school year, and other direct salary payments to teachers or fringe benefit costs 
36.19 	paid by the school district for its teachers and not otherwise provided for in items (i) to (x). 

36.20 	EFFECTIVE DATE. This section is effective for contracts ratified beginning 
36.21 	July 1, 2011.

36.22 	Sec. 8. Minnesota Statutes 2010, section 122A.414, subdivision 1a, is amended to read:
36.23 		Subd. 1a.Transitional planning year. (a) To be eligible to participate in an 
36.24 	alternative teacher professional pay system, a school district, intermediate school district, 
36.25 	or site, charter school must, at least one school year before it expects to fully implement 
36.26 	an alternative pay system, must:
36.27 	(1) submit to the department a letter of intent executed by the school district or 
36.28 	intermediate school district and the exclusive representative of the teachers to complete 
36.29 	a plan preparing for full implementation, begin to develop an alternative teacher pay 
36.30 	plan,  consistent with subdivision 2, that may include, among other activities, training to 
36.31 	evaluate teacher performance, a restructured school day to develop integrated ongoing 
36.32 	site-based professional development activities, release time to develop an alternative pay 
36.33 	system agreement, and teacher and staff training on using multiple data sources; and.
37.1 	(2) agree to use up to two percent of basic revenue for staff development purposes, 
37.2 	consistent with sections 122A.60 and 122A.61, to develop the alternative teacher 
37.3 	professional pay system agreement under this section.
37.4 	(b) To be eligible to participate in an alternative teacher professional pay system, a 
37.5 	charter school, at least one school year before it expects to fully implement an alternative 
37.6 	pay system, must:
37.7 	(1) submit to the department a letter of intent executed by the charter school and the 
37.8 	charter school board of directors;
37.9 	(2) submit the record of a formal vote by the teachers employed at the charter 
37.10 	school indicating at least 70 percent of all teachers agree to implement the alternative 
37.11 	pay system; and
37.12 	(3) agree to use up to two percent of basic revenue for staff development purposes, 
37.13 	consistent with sections 122A.60 and 122A.61, to develop the alternative teacher 
37.14 	professional pay system.
37.15 	(c) The commissioner may waive the planning year if the commissioner determines, 
37.16 	based on the criteria under subdivision 2, that the school district, intermediate school 
37.17 	district, site or charter school is ready to fully implement an alternative pay system.

37.18 	EFFECTIVE DATE. This section is effective the day following final enactment, 
37.19 	and applies to any new plan that the commissioner approves or any approved plan that is 
37.20 	modified after that date.

37.21 	Sec. 9. Minnesota Statutes 2010, section 122A.414, subdivision 2, is amended to read:
37.22 		Subd. 2.Alternative teacher professional pay system. (a) To participate in this 
37.23 	program, a school district, intermediate school district, school site, or charter school must 
37.24 	have an educational improvement plan under section 122A.413 and an alternative teacher 
37.25 	professional pay system agreement under paragraph (b). A charter school participant also 
37.26 	must comply with subdivision 2a.
37.27 	(b) The alternative teacher professional pay system agreement must:
37.28 	(1) describe how teachers can achieve career advancement and additional 
37.29 	compensation;
37.30 	(2) describe how the school district, intermediate school district, school site, or 
37.31 	charter school will provide teachers with career advancement options that allow teachers 
37.32 	to retain primary roles in student instruction and facilitate site-focused professional 
37.33 	development that helps other teachers improve their skills;
37.34 	(3) reform the "steps and lanes" salary schedule by establishing an alternative 
37.35 	salary schedule that uses measures other than seniority to award compensation increases 
38.1 	based on the requirements in this clause, prevent any teacher's compensation paid before 
38.2 	implementing the pay system from being reduced as a result of participating in this 
38.3 	system, and base at least 60 percent of award any compensation increase on teacher 
38.4 	performance using based on:
38.5 	(i) schoolwide student achievement gains under section 120B.35 or locally selected 
38.6 	standardized assessment outcomes, or both;
38.7 	(ii) districtwide measures of student achievement that use longitudinal data on 
38.8 	student academic growth, student attendance, student engagement and connection, 
38.9 	other outcome measures under section 120B.35, and other locally selected measures of 
38.10 	student learning explicitly aligned with the elements of curriculum for which  teachers are 
38.11 	responsible, which must constitute 50 percent of any compensation increase; and
38.12 	(ii) data from parent surveys, an annual evaluation performed by a trained school 
38.13 	administrator, and other performance measures such as student surveys, peer observations 
38.14 	and review, teacher performance portfolios, video classroom observations combined with 
38.15 	teacher reflection, and other highly reliable research-based measures; and
38.16 	(iii) an objective evaluation program that includes:
38.17 	(A) individual teacher evaluations aligned with the educational improvement plan 
38.18 	under section 122A.413 and the staff development plan under section 122A.60; and
38.19 	(B) objective evaluations using multiple criteria conducted by a locally selected and 
38.20 	periodically trained evaluation team that understands teaching and learning consistent 
38.21 	with items (i) and (ii);
38.22 	(4) provide integrated ongoing site-based professional development activities to 
38.23 	improve instructional skills and learning that are aligned with student needs under section 
38.24 	122A.413, consistent with the staff development plan under section 122A.60 and led 
38.25 	during the school day by trained teacher leaders such as master or mentor teachers;
38.26 	(5) allow any teacher in a participating school district, intermediate school district, 
38.27 	school site, or charter school that implements an alternative pay system to participate in 
38.28 	that system without any quota or other limit; and
38.29 	(6) encourage collaboration rather than competition among teachers.

38.30 	EFFECTIVE DATE. This section is effective June 1, 2013, and applies to any new 
38.31 	plan that the commissioner approves or any approved plan that is modified after that date.

38.32 	Sec. 10. Minnesota Statutes 2010, section 122A.414, subdivision 2a, is amended to 
38.33 	read:
39.1 		Subd. 2a.Charter school applications. For charter school applications, the board 
39.2 	of directors of a charter school that satisfies the conditions under subdivisions 2 and 2b 
39.3 	must submit to the commissioner an application that contains:
39.4 	(1) an agreement to implement an alternative teacher professional pay system under 
39.5 	this section; and
39.6 	(2) a resolution by the charter school board of directors adopting the agreement; and.
39.7 	(3) the record of a formal vote by the teachers employed at the charter school 
39.8 	indicating that at least 70 percent of all teachers agree to implement the alternative 
39.9 	teacher professional pay system, unless the charter school submits an alternative teacher 
39.10 	professional pay system agreement under this section before the first year of operation.
39.11 	Alternative compensation revenue for a qualifying charter school must be calculated 
39.12 	under section 126C.10, subdivision 34, paragraphs (a) and (b).

39.13 	EFFECTIVE DATE. This section is effective June 1, 2013, and applies to any new 
39.14 	plan that the commissioner approves or any approved plan that is modified after that date.

39.15 	Sec. 11. Minnesota Statutes 2010, section 122A.414, subdivision 2b, is amended to 
39.16 	read:
39.17 		Subd. 2b.Approval process. (a) Consistent with the requirements of this section 
39.18 	and sections 122A.413 and 122A.415, the department must prepare and transmit to 
39.19 	interested school districts, intermediate school districts, school sites, and charter schools 
39.20 	a standard form for applying to participate in the alternative teacher professional pay 
39.21 	system. The commissioner annually must establish at least three dates as deadlines by 
39.22 	which interested applicants must submit an application to the commissioner under this 
39.23 	section. An interested school district, intermediate school district, school site, or charter 
39.24 	school must submit to the commissioner a completed application executed by the district 
39.25 	superintendent and the exclusive bargaining representative of the teachers if the applicant 
39.26 	is a school district,or intermediate school district, or school site, or executed by the charter 
39.27 	school board of directors if the applicant is a charter school. The application must include 
39.28 	the proposed alternative teacher professional pay system agreement under subdivision 2. 
39.29 	The department must review a completed application within 30 business days of the most 
39.30 	recent application deadline and recommend to the commissioner whether to approve or 
39.31 	disapprove the application. The commissioner must approve applications on a first-come, 
39.32 	first-served basis. The applicant's alternative teacher professional pay system agreement 
39.33 	must be legally binding on the applicant and the collective bargaining representative before 
39.34 	the applicant receives alternative compensation revenue. The commissioner must approve 
39.35 	or disapprove an application based on the requirements under subdivisions 2 and 2a.
40.1 	(b) If the commissioner disapproves an application, the commissioner must 
40.2 	give the applicant timely notice of the specific reasons in detail for disapproving the 
40.3 	application. The applicant may revise and resubmit its application and related documents 
40.4 	to the commissioner within 30 business days of receiving notice of the commissioner's 
40.5 	disapproval and the commissioner must approve or disapprove the revised application, 
40.6 	consistent with this subdivision. Applications that are revised and then approved are 
40.7 	considered submitted on the date the applicant initially submitted the application.

40.8 	EFFECTIVE DATE. This section is effective June 1, 2013, and applies to any new 
40.9 	plan that the commissioner approves or any approved plan that is modified after that date.

40.10 	Sec. 12. Minnesota Statutes 2010, section 123B.02, subdivision 15, is amended to read:
40.11 		Subd. 15.Annuity contract; payroll allocation. (a) At the request of an employee 
40.12 	and as part of the employee's compensation arrangement, the board may purchase an 
40.13 	individual annuity contract for an employee for retirement or other purposes and may 
40.14 	make payroll allocations in accordance with such arrangement for the purpose of paying 
40.15 	the entire premium due and to become due under such contract. The allocation must be 
40.16 	made in a manner which will qualify the annuity premiums, or a portion thereof, for 
40.17 	the benefit afforded under section 403(b) of the current Federal Internal Revenue Code 
40.18 	or any equivalent provision of subsequent federal income tax law. The employee shall 
40.19 	own such contract and the employee's rights under the contract shall be nonforfeitable 
40.20 	except for failure to pay premiums. Section 122A.40 shall not be applicable hereto and the 
40.21 	board shall have no liability thereunder because of its purchase of any individual annuity 
40.22 	contracts. This statute shall be applied in a nondiscriminatory manner to employees of 
40.23 	the school district. The school board of a school district shall determine the identity and 
40.24 	number of the available vendors under federal Internal Revenue Code, section 403(b) is a 
40.25 	term and condition of employment under section 179A.03.
40.26 	(b) When considering vendors under paragraph (a), the school district and the 
40.27 	exclusive representative of the employees shall consider all of the following:
40.28 	(1) the vendor's ability to comply with all employer requirements imposed by 
40.29 	section 403(b) of the Internal Revenue Code of 1986 and its subsequent amendments, 
40.30 	other provisions of the Internal Revenue Code of 1986 that apply to section 403(b) of the 
40.31 	Internal Revenue Code, and any regulation adopted in relation to these laws;
40.32 	(2) the vendor's experience in providing 403(b) plans;
40.33 	(3) the vendor's potential effectiveness in providing client services attendant to 
40.34 	its plan and in relation to cost;
40.35 	(4) the nature and extent of rights and benefits offered under the vendor's plan;
41.1 	(5) the suitability of the rights and benefits offered under the vendor's plan;
41.2 	(6) the vendor's ability to provide the rights and benefits offered under its plan; and
41.3 	(7) the vendor's financial stability.

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

41.5 	Sec. 13. Minnesota Statutes 2010, section 123B.143, subdivision 1, is amended to read:
41.6 		Subdivision 1.Contract; duties. All districts maintaining a classified secondary 
41.7 	school must employ a superintendent who shall be an ex officio nonvoting member of the 
41.8 	school board. The authority for selection and employment of a superintendent must be 
41.9 	vested in the board in all cases. An individual employed by a board as a superintendent 
41.10 	shall have an initial employment contract for a period of time no longer than three years 
41.11 	from the date of employment. Any subsequent employment contract must not exceed a 
41.12 	period of three years. A board, at its discretion, may or may not renew an employment 
41.13 	contract. A board must not, by action or inaction, extend the duration of an existing 
41.14 	employment contract. Beginning 365 days prior to the expiration date of an existing 
41.15 	employment contract, a board may negotiate and enter into a subsequent employment 
41.16 	contract to take effect upon the expiration of the existing contract. A subsequent contract 
41.17 	must be contingent upon the employee completing the terms of an existing contract. If a 
41.18 	contract between a board and a superintendent is terminated prior to the date specified in 
41.19 	the contract, the board may not enter into another superintendent contract with that same 
41.20 	individual that has a term that extends beyond the date specified in the terminated contract. 
41.21 	A board may terminate a superintendent during the term of an employment contract for any 
41.22 	of the grounds specified in section 122A.40, subdivision 9 or 13. A superintendent shall 
41.23 	not rely upon an employment contract with a board to assert any other continuing contract 
41.24 	rights in the position of superintendent under section 122A.40. Notwithstanding the 
41.25 	provisions of sections 122A.40, subdivision 10 or 11, 123A.32, 123A.75, or any other law 
41.26 	to the contrary, no individual shall have a right to employment as a superintendent based 
41.27 	on order of employment in any district. If two or more districts enter into an agreement for 
41.28 	the purchase or sharing of the services of a superintendent, the contracting districts have 
41.29 	the absolute right to select one of the individuals employed to serve as superintendent 
41.30 	in one of the contracting districts and no individual has a right to employment as the 
41.31 	superintendent to provide all or part of the services based on order of employment in a 
41.32 	contracting district. The superintendent of a district shall perform the following:
41.33 	(1) visit and supervise the schools in the district, report and make recommendations 
41.34 	about their condition when advisable or on request by the board;
41.35 	(2) recommend to the board employment and dismissal of teachers;
42.1 	(3) annually evaluate each school principal assigned responsibility for supervising a 
42.2 	school building within the district, consistent with section 122A.73;
42.3 	(4) superintend school grading practices and examinations for promotions;
42.4 	(4) (5) make reports required by the commissioner; and
42.5 	(5) (6) perform other duties prescribed by the board.

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

42.8 	Sec. 14. [124D.031] ENROLLMENT OPTIONS FOR STUDENTS AT 
42.9 	LOW-PERFORMING PUBLIC SCHOOLS.
42.10 		Subdivision 1.Student enrollment options. (a) A student who attends a persistently 
42.11 	low-performing school located in a city of the first class for at least one school year and 
42.12 	whose family income is equal to or less than 175 percent of the federal poverty level is 
42.13 	eligible to enroll in a nonpublic school under this section or in a nonresident district 
42.14 	school or program under section 124D.03.
42.15 	(b) For the purposes of this section, "persistently low-performing school" means a 
42.16 	public school located in a city of the first class that has student performance levels for at 
42.17 	least three consecutive school years immediately preceding the school year in which a 
42.18 	student enrolls in a nonpublic school under this section or in a nonresident district school 
42.19 	or program under section 124D.03, as follows:
42.20 	(1) the combined total percentage of students scoring at the "does not meet 
42.21 	standards" level for either the reading or mathematics Minnesota Comprehensive 
42.22 	Assessment exceeds 40 percent for all grades tested;
42.23 	(2) the combined percentage of students demonstrating "proficient, low growth," 
42.24 	"not proficient, low growth," and "not proficient, medium growth" for either the reading or 
42.25 	mathematics Minnesota Comprehensive Assessment exceeds 50 percent; or
42.26 	(3) 50 percent or more students in secondary school do not receive a passing 
42.27 	score when first tested on the graduation required assessment for diploma in reading, 
42.28 	mathematics, or writing.
42.29 		Subd. 2.Eligible nonpublic schools. (a) To be eligible to participate under this 
42.30 	section, a nonpublic school must comply with section 121A.04 and chapter 363A; 
42.31 	make reasonable accommodations for students and meet the requirements under the 
42.32 	Americans with Disabilities Act, Public Law 101-336; adopt an antidiscrimination and 
42.33 	harassment and violence prevention policy that complies with section 121A.03 and an 
42.34 	anti-intimidation and bullying policy that complies with section 121A.0695; submit 
42.35 	data to the commissioner in the form and manner required by the commissioner so that 
43.1 	the school may be included in the state's annual school performance report cards under 
43.2 	section 120B.36; accept students on a random basis, except that the nonpublic school may 
43.3 	give preference to the siblings of students already enrolled in the nonpublic school; and 
43.4 	notify the commissioner of its intent to participate under this section. The nonpublic 
43.5 	school must administer the statewide reading and math tests under section 120B.30  to its 
43.6 	students enrolled under this section.
43.7 	(b) The commissioner shall ensure that the nonpublic school complies with the 
43.8 	requirements of this subdivision.
43.9 		Subd. 3.Tuition funding for students transferring to nonpublic schools. If a 
43.10 	student transfers to a nonpublic school under this section, and upon receiving proof that 
43.11 	the student is enrolled in the nonpublic school, the commissioner shall make quarterly 
43.12 	payments to the student's parent or guardian in an amount equal to the lesser of the 
43.13 	state average general education revenue per pupil unit, calculated without transportation 
43.14 	sparsity revenue or the nonpublic school's operating and debt service cost per pupil 
43.15 	that is related to educational programming, as determined by the commissioner. The 
43.16 	commissioner shall send the check to the nonpublic school and the parent or guardian shall 
43.17 	restrictively endorse the check for the nonpublic school's use.
43.18 	The scholarship payments must be made by the commissioner to the recipients in 
43.19 	four equal payments on September 15, December 15, March 15, and July 1.
43.20 		Subd. 4.Student transportation. A resident school district must provide for 
43.21 	transportation within the district's borders for a student who enrolls in a nonpublic school 
43.22 	under this section and shall receive transportation funding equal to the actual costs in the 
43.23 	current school year for those transportation services.
43.24 		Subd. 5.Funding for student testing. The state shall pay the nonpublic school the 
43.25 	costs of administering tests under section 120B.30.
43.26 		Subd. 6.Curriculum review; exemption from instruction. A nonpublic school 
43.27 	must provide a procedure for a parent, guardian, or an adult student, 18 years or older, to 
43.28 	review the content of instructional materials and, if the materials are found objectionable, 
43.29 	exempt the student from the instruction upon request.
43.30 		Subd. 7.Financial audit. A nonpublic school enrolling students under this section 
43.31 	must submit to the commissioner by November 15 of each year a summary of audited 
43.32 	financial data for the preceding fiscal year.
43.33 		Subd. 8.List of nonpublic schools. The commissioner shall publish a list of 
43.34 	participating nonpublic schools.

43.35 	EFFECTIVE DATE. This section is effective the day following final enactment 
43.36 	and applies to the 2011-2012 school year and later.

44.1 	Sec. 15. Minnesota Statutes 2010, section 124D.86, subdivision 3, is amended to read:
44.2 		Subd. 3.Integration Innovation revenue. Integration revenue (a) A district's 
44.3 	innovation revenue equals the following amounts:
44.4 	(1) for Independent School District No. 709, Duluth, $206 times the adjusted pupil 
44.5 	units for the school year;
44.6 	(2) for Independent School District No. 625, St. Paul,  30 percent of $445 times the 
44.7 	adjusted pupil units for the school year;
44.8 	(3) (2) for Special School District No. 1, Minneapolis, the sum of 30 percent of  $445 
44.9 	times the adjusted pupil units for the school year and an additional $35 times the adjusted 
44.10 	pupil units for the school year that is provided entirely through a local levy; and
44.11 	(4) (3) for a district not listed in clause (1), or (2), or (3), that must implement a plan 
44.12 	under Minnesota Rules, parts 3535.0100 to 3535.0180, where the district's enrollment of 
44.13 	protected students, as defined under Minnesota Rules, part 3535.0110, exceeds 15 percent, 
44.14 	the lesser of (i) the actual cost of implementing the plan during the fiscal year minus the 
44.15 	aid received under subdivision 6, or (ii) $129 times the adjusted pupil units for the school 
44.16 	year; a district's innovation revenue allowance equals its integration revenue allowance 
44.17 	for fiscal year 2011, except that a district's revenue allowance under this clause may not 
44.18 	exceed $129 per adjusted pupil unit for that year.
44.19 	(5) for a district not listed in clause (1), (2), (3), or (4), that is required to implement 
44.20 	a plan according to the requirements of Minnesota Rules, parts 3535.0100 to 3535.0180, 
44.21 	the lesser of
44.22 	(i) the actual cost of implementing the plan during the fiscal year minus the aid 
44.23 	received under subdivision 6, or
44.24 	(ii) $92 times the adjusted pupil units for the school year.
44.25 	Any money received by districts in clauses (1) to (3) which exceeds the amount 
44.26 	received in fiscal year 2000 shall be subject to the budget requirements in subdivision 
44.27 	1a; and
44.28 	(6) for a member district of a multidistrict integration collaborative that files a plan 
44.29 	with the commissioner, but is not contiguous to a racially isolated district, integration 
44.30 	revenue equals the amount defined in clause (5).
44.31 	(b) A district's innovation levy equals 100 percent of the district's innovation revenue 
44.32 	under paragraph (a), clauses (1) and (2), and 30 percent of the district's innovation revenue 
44.33 	under paragraph (a), clause (3).
44.34 	(c) A district's innovation aid equals its innovation revenue minus its innovation levy.
44.35 	(d) Innovation revenue received under this section must be spent on research-based 
44.36 	activities designed to close the achievement gap.

45.1 	EFFECTIVE DATE. This section is effective for state aid recognized by school 
45.2 	districts in fiscal year 2012 and later and for levies payable in 2012 and later.

45.3 	Sec. 16. Minnesota Statutes 2010, section 179A.16, subdivision 1, is amended to read:
45.4 		Subdivision 1.Nonessential employees. An exclusive representative or an 
45.5 	employer of a unit of employees other than essential employees or teachers may request 
45.6 	interest arbitration by providing written notice of the request to the other party and the 
45.7 	commissioner. The written request for arbitration must specify the items to be submitted to 
45.8 	arbitration and whether conventional, final-offer total-package, or final-offer item-by-item 
45.9 	arbitration is contemplated by the request.
45.10 	The items to be submitted to arbitration and the form of arbitration to be used are 
45.11 	subject to mutual agreement. If an agreement to arbitrate is reached, it must be reduced to 
45.12 	writing and a copy of the agreement filed with the commissioner. A failure to respond, or 
45.13 	to reach agreement on the items or form of arbitration, within 15 days of receipt of the 
45.14 	request to arbitrate constitutes a rejection of the request.

45.15 	EFFECTIVE DATE. This section is effective beginning July 1, 2013, and applies 
45.16 	to all teacher collective bargaining agreements entered into or modified after that date.

45.17 	Sec. 17. [179A.175] TEACHER CONTRACTS.
45.18 	Notwithstanding section 179A.16 and any other law to the contrary, a school board 
45.19 	and the exclusive representative of the teachers may meet and negotiate and enter into 
45.20 	an employment contract between March 15 and October 15 in an odd-numbered year. 
45.21 	If the school board and the exclusive representative fail to reach a certified written 
45.22 	agreement by October 15 in the odd-numbered year, the negotiations must be suspended 
45.23 	until the next even-numbered calendar year and resume during the three-month period 
45.24 	preceding September 1 when school is not in session. During the time the negotiations 
45.25 	are suspended, employee compensation must be according to the terms of the collective 
45.26 	bargaining agreement in effect in the preceding collective bargaining cycle. If agreement 
45.27 	is not reached during the three-month period in the even-numbered year, the school board 
45.28 	must submit the matter to an arbitrator selected by the Bureau of Mediation Services 
45.29 	who must determine the matter based on a final offer total package from each party. The 
45.30 	arbitrator's award must not cause a structural imbalance in a district's budget during the 
45.31 	contract term that is subject to the arbitrator's award under this section. An award will 
45.32 	not cause a structural imbalance only if district expenditures do not exceed available 
45.33 	revenue, taking into account current state aid formulas and reasonable and comprehensive 
45.34 	calculations and projections of the district's ongoing revenues and expenditures during the 
46.1 	contract term. Onetime revenue must not be considered when calculating or projecting 
46.2 	available revenue for ongoing expenditures in a contract term.

46.3 	EFFECTIVE DATE. This section is effective beginning July 1, 2013, and applies 
46.4 	to all teacher collective bargaining agreements entered into or modified after that date.

46.5 	Sec. 18. Minnesota Statutes 2010, section 179A.18, subdivision 1, is amended to read:
46.6 		Subdivision 1.When authorized. Essential employees and teachers may not strike. 
46.7 	Except as otherwise provided by subdivision 2 and section 179A.17, subdivision 2, other 
46.8 	public employees may strike only under the following circumstances:
46.9 	(1)(i) the collective bargaining agreement between their exclusive representative and 
46.10 	their employer has expired or, if there is no agreement, impasse under section 179A.17, 
46.11 	subdivision 2, has occurred; and
46.12 	(ii) the exclusive representative and the employer have participated in mediation 
46.13 	over a period of at least 45 days, provided that the mediation period established by section 
46.14 	179A.17, subdivision 2, governs negotiations under that section, and provided that for the 
46.15 	purposes of this subclause the mediation period commences on the day following receipt 
46.16 	by the commissioner of a request for mediation; or
46.17 	(2) the employer violates section 179A.13, subdivision 2, clause (9); or
46.18 	(3) in the case of state employees, (i) the Legislative Coordinating Commission has 
46.19 	rejected a negotiated agreement or arbitration decision during a legislative interim; or (ii) 
46.20 	the entire legislature rejects or fails to ratify a negotiated agreement or arbitration decision, 
46.21 	which has been approved during a legislative interim by the Legislative Coordinating 
46.22 	Commission, at a special legislative session called to consider it, or at its next regular 
46.23 	legislative session, whichever occurs first.

46.24 	EFFECTIVE DATE. This section is effective beginning July 1, 2013, and applies 
46.25 	to all teacher collective bargaining agreements entered into or modified after that date.

46.26 	Sec. 19. Minnesota Statutes 2010, section 179A.18, subdivision 3, is amended to read:
46.27 		Subd. 3.Notice. In addition to the other requirements of this section, no employee 
46.28 	may strike unless written notification of intent to strike is served on the employer and the 
46.29 	commissioner by the exclusive representative at least ten days prior to the commencement 
46.30 	of the strike. For all employees other than teachers, if more than 30 days have expired 
46.31 	after service of a notification of intent to strike, no strike may commence until ten days 
46.32 	after service of a new written notification. For teachers, no strike may commence more 
46.33 	than 25 days after service of notification of intent to strike unless, before the end of the 
47.1 	25-day period, the exclusive representative and the employer agree that the period during 
47.2 	which a strike may commence shall be extended for an additional period not to exceed five 
47.3 	days. Teachers are limited to one notice of intent to strike for each contract negotiation 
47.4 	period, provided, however, that a strike notice may be renewed for an additional ten days, 
47.5 	the first five of which shall be a notice period during which no strike may occur, if the 
47.6 	following conditions have been satisfied:
47.7 	(1) an original notice was provided pursuant to this section; and
47.8 	(2) a tentative agreement to resolve the dispute was reached during the original 
47.9 	strike notice period; and
47.10 	(3) such tentative agreement was rejected by either party during or after the original 
47.11 	strike notice period.
47.12 	The first day of the renewed strike notice period shall commence on the day following 
47.13 	the expiration of the previous strike notice period or the day following the rejection 
47.14 	of the tentative agreement, whichever is later. Notification of intent to strike under 
47.15 	subdivisions 1, clause (1); and 2, clause (1), may not be served until the collective 
47.16 	bargaining agreement has expired, or if there is no agreement, on or after the date impasse 
47.17 	under section 179A.17 has occurred.

47.18 	EFFECTIVE DATE. This section is effective beginning July 1, 2013, and applies 
47.19 	to all teacher collective bargaining agreements entered into or modified after that date.

47.20 	Sec. 20. IMPLEMENTING A PERFORMANCE-BASED EVALUATION 
47.21 	SYSTEM FOR PRINCIPALS.
 47.22 	(a) To implement the requirements of Minnesota Statutes, sections 123B.143, 
47.23 	subdivision 1, clause (3), and 122A.73, the commissioner of education, the Minnesota 
47.24 	Association of Secondary School Principals, and the Minnesota Association of Elementary 
47.25 	School Principals must convene a group of recognized and qualified experts and interested 
47.26 	stakeholders, including principals, superintendents, teachers, school board members, and 
47.27 	parents, among other stakeholders, to develop a performance-based system model for 
47.28 	annually evaluating school principals. In developing the system model, the group must at 
47.29 	least consider how principals develop and maintain:
47.30 	(1) high standards for student performance;
47.31 	(2) rigorous curriculum;
47.32 	(3) quality instruction;
47.33 	(4) a culture of learning and professional behavior;
47.34 	(5) connections to external communities;
48.1 	(6) systemic performance accountability; and 
48.2 	(7) leadership behaviors that create effective schools and improve school 
48.3 	performance, including how to plan for, implement, support, advocate for, communicate 
48.4 	about, and monitor continuous and improved learning.
48.5 	The group also may consider whether to establish a multitiered evaluation system 
48.6 	that supports newly licensed principals in becoming highly skilled school leaders and 
48.7 	provides opportunities for advanced learning for more experienced school leaders.
48.8 	(b) The commissioner, the Minnesota Association of Secondary School Principals, 
48.9 	and the Minnesota Association of Elementary School Principals must submit a 
48.10 	written report and all the group's working papers to the education committees of the 
48.11 	legislature by February 1, 2012, discussing the group's responses to paragraph (a) and its 
48.12 	recommendations for a performance-based system model for annually evaluating school 
48.13 	principals. The group convened under this section expires June 1, 2012.

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

48.16 	Sec. 21. REPORT; PLAN FOR IMPLEMENTING SCHOOL AND DISTRICT 
48.17 	GRADING SYSTEM.
 48.18 	The commissioner of education must convene a stakeholder group that includes 
48.19 	assessment and evaluation directors, educators, researchers, and parents to advise the 
48.20 	commissioner on developing a plan to implement the school and district grading system 
48.21 	under Minnesota Statutes, section 120B.361. The commissioner must present the plan 
48.22 	in writing to the education policy and finance committees of the legislature by February 
48.23 	15, 2012, and include any recommendations for further clarifying Minnesota Statutes, 
48.24 	section 120B.361. 

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

48.26 	Sec. 22. REPORT; RECOMMENDATIONS FOR INCREASING SCHOOLS' 
48.27 	FINANCIAL FLEXIBILITY.
 48.28 	The commissioner of education must submit to the education policy and finance 
48.29 	committees of the legislature by February 1, 2013, written recommendations that identify 
48.30 	fiscal mandates the legislature might waive to give greater financial flexibility to schools 
48.31 	that received a letter grade of "A," improved at least one letter grade in the preceding 
48.32 	school year, or improved two or more letter grades in the two preceding school years 
48.33 	under Minnesota Statutes, section  120B.361, subdivision 1.

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

49.2 	Sec. 23. ASSESSMENT ADVISORY COMMITTEE; RECOMMENDATIONS.
 49.3 	(a) The Assessment Advisory Committee under Minnesota Statutes, section 
49.4 	120B.365, must develop recommendations for alternative methods by which students meet 
49.5 	the reading and writing exam requirement under Minnesota Statutes, section 120B.30, 
49.6 	subdivision 1b, paragraph (b), clause (10). The Assessment Advisory Committee, among 
49.7 	other alternative methods and if consistent with federal educational accountability law, 
49.8 	must consider allowing students to:
49.9 	(1) achieve a college-credit score on a college-level examination program (CLEP) 
49.10 	for reading and writing; or
49.11 	(2) achieve a college readiness score in the relevant subject area on the American 
49.12 	college test (ACT) or scholastic aptitude test (SAT) exam.
49.13 	(b) The Assessment Advisory Committee must develop recommendations for 
49.14 	alternative methods by which students satisfy the high school algebra and biology 
49.15 	requirements under Minnesota Statutes, section 120B.30, subdivision 1b, paragraph (d), 
49.16 	clause (8), and demonstrate their college and career readiness. The Assessment Advisory 
49.17 	Committee, among other alternative methods and if consistent with federal educational 
49.18 	accountability law, must consider allowing students to:
49.19 	(1) achieve the mathematics or science college readiness score on the American 
49.20 	college test (ACT) or scholastic aptitude test (SAT) exam;
49.21 	(2) achieve a college-credit score on a college-level examination program (CLEP) 
49.22 	for algebra or biology; or
49.23 	(3) achieve a score on an equivalent advanced placement or international 
49.24 	baccalaureate exam that would earn credit at a four-year college or university.
49.25 	(c) The Assessment Advisory Committee, for purposes of fully implementing the 
49.26 	high school assessment system under Minnesota Statutes, section 120B.30, subdivision 
49.27 	1b, also must develop recommendations for the administrative structure, criteria, 
49.28 	and processes for implementing the state-level student appeals process. Finally, the 
49.29 	Assessment Advisory Committee must develop recommendations for calculating the 
49.30 	alignment index, including how questions about validity and reliability are resolved, 
49.31 	defining "misaligned" and "highly misaligned," and when and under what specific 
49.32 	circumstances misalignments occur.
49.33 	(d) By February 15, 2013, the Assessment Advisory Committee must submit its 
49.34 	recommendations under this section to the education commissioner and the education 
49.35 	policy and finance committees of the legislature.

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

50.2 	Sec. 24. ALTERNATIVE COMPENSATION REAPPLICATION.
 50.3 	Any school district, intermediate school district, or charter school that has an 
50.4 	approved alternative teacher compensation plan under Minnesota Statutes, section 
50.5 	122A.414, must submit a new application to the commissioner of education by June 
50.6 	1, 2013, that complies with the changes to Minnesota Statutes, section 122A.414, 
50.7 	subdivision 2, paragraph (b).

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

50.9 	Sec. 25. APPROPRIATIONS.
 50.10 		Subdivision 1.Department of Education. The sums indicated in this section are 
50.11 	appropriated from the general fund to the Department of Education for the fiscal years 
50.12 	designated.
50.13 		Subd. 2.Charter school building lease aid. For building lease aid under Minnesota 
50.14 	Statutes, section 124D.11, subdivision 4: 

50.15		$
	48,180,000
	.....
	2012
	
50.16		$
	53,772,000
	.....
	2013
	
50.17 	The 2012 appropriation includes $13,336,000 for 2011 and $34,844,000 for 2012.
50.18 	The 2013 appropriation includes $14,933,000 for 2012 and $38,839,000 for 2013.
50.19 		Subd. 3.Charter school startup cost aid. For charter school startup cost aid under 
50.20 	Minnesota Statutes, section 124D.11, subdivision 8:

50.21		$
	600,000
	.....
	2012
	
50.22		$
	1,278,000
	.....
	2013
	
50.23 	The 2012 appropriation includes $119,000 for 2011 and $481,000 for 2012.
50.24 	The 2013 appropriation includes $205,000 for 2012 and $1,073,000 for 2013.
50.25 		Subd. 4.Innovation aid. For innovation aid under Minnesota Statutes, section 
50.26 	124D.86:

50.27		$
	53,088,000
	.....
	2012
	
50.28		$
	36,559,000
	.....
	2013
	
50.29 	The 2012 appropriation includes $27,497,000 for 2011 and $25,592,000 for 2012.
50.30 	The 2013 appropriation includes $10,967,000 for 2012 and $25,592,000 for 2013.
51.1 		Subd. 5.Interdistrict desegregation or integration transportation grants. For 
51.2 	interdistrict desegregation or integration transportation grants under Minnesota Statutes, 
51.3 	section 124D.87:

51.4		$
	14,917,000
	.....
	2012
	
51.5		$
	16,612,000
	.....
	2013
	
51.6 		Subd. 6.Success for the future. For American Indian success for the future grants 
51.7 	under Minnesota Statutes, section 124D.81:

51.8		$
	2,137,000
	.....
	2012
	
51.9		$
	2,137,000
	.....
	2013
	
51.10 	The 2012 appropriation includes $641,000 for 2011 and $1,496,000 for 2012.
51.11 	The 2013 appropriation includes $641,000 for 2012 and $1,496,000 for 2013.
51.12 		Subd. 7.American Indian teacher preparation grants. For joint grants to assist 
51.13 	American Indian people to become teachers under Minnesota Statutes, section 122A.63:

51.14		$
	190,000
	.....
	2012
	
51.15		$
	190,000
	.....
	2013
	
51.16 		Subd. 8.Tribal contract schools. For tribal contract school aid under Minnesota 
51.17 	Statutes, section 124D.83:

51.18		$
	2,091,000
	.....
	2012
	
51.19		$
	2,207,000
	.....
	2013
	
51.20 	The 2012 appropriation includes $600,000 for 2011 and $1,491,000 for 2012.
51.21 	The 2013 appropriation includes $638,000 for 2012 and $1,569,000 for 2013.
51.22 		Subd. 9.Early childhood programs at tribal schools. For early childhood family 
51.23 	education programs at tribal contract schools under Minnesota Statutes, section 124D.83, 
51.24 	subdivision 4:

51.25		$
	68,000
	.....
	2012
	
51.26		$
	68,000
	.....
	2013
	
51.27 		Subd. 10.Statewide testing and reporting system. For the statewide testing and 
51.28 	reporting system under Minnesota Statutes, section 120B.30:

51.29		$
	15,150,000
	.....
	2012
	
51.30		$
	15,150,000
	.....
	2013
	
51.31 	Any balance in the first year does not cancel but is available in the second year.
52.1 		Subd. 11.Examination fees; teacher training and support programs. (a) For 
52.2 	students' advanced placement and international baccalaureate examination fees under 
52.3 	Minnesota Statutes, section 120B.13, subdivision 3, and the training and related costs 
52.4 	for teachers and other interested educators under Minnesota Statutes, section 120B.13, 
52.5 	subdivision 1:

52.6		$
	4,500,000
	.....
	2012
	
52.7		$
	4,500,000
	.....
	2013
	
52.8 	(b) The advanced placement program shall receive 75 percent of the appropriation 
52.9 	each year and the international baccalaureate program shall receive 25 percent of the 
52.10 	appropriation each year. The department, in consultation with representatives of the 
52.11 	advanced placement and international baccalaureate programs selected by the Advanced 
52.12 	Placement Advisory Council and IBMN, respectively, shall determine the amounts of 
52.13 	the expenditures each year for examination fees and training and support programs for 
52.14 	each program.
52.15 	(c) Notwithstanding Minnesota Statutes, section 120B.13, subdivision 1, at least 
52.16 	$500,000 each year is for teachers to attend subject matter summer training programs 
52.17 	and follow-up support workshops approved by the advanced placement or international 
52.18 	baccalaureate programs. The amount of the subsidy for each teacher attending an 
52.19 	advanced placement or international baccalaureate summer training program or workshop 
52.20 	shall be the same. The commissioner shall determine the payment process and the amount 
52.21 	of the subsidy.
52.22 	(d) The commissioner shall pay all examination fees for all students of low-income 
52.23 	families under Minnesota Statutes, section 120B.13, subdivision 3, and to the extent 
52.24 	of available appropriations shall also pay examination fees for students sitting for an 
52.25 	advanced placement examination, international baccalaureate examination, or both.
52.26 	Any balance in the first year does not cancel but is available in the second year.
52.27 		Subd. 12.Concurrent enrollment programs. For concurrent enrollment programs 
52.28 	under Minnesota Statutes, section 124D.091:

52.29		$
	2,000,000
	.....
	2012
	
52.30		$
	2,000,000
	.....
	2013
	
52.31 	If the appropriation is insufficient, the commissioner must proportionately reduce 
52.32 	the aid payment to each district.
52.33 	Any balance in the first year does not cancel but is available in the second year.
52.34 		Subd. 13.Collaborative urban educator. For the collaborative urban educator 
52.35 	grant program:

53.1		$
	528,000
	.....
	2012
	
53.2		$
	528,000
	.....
	2013
	
53.3 	Any balance in the first year does not cancel but is available in the second year.
53.4 	Each institution shall prepare for the legislature, by January 15 of each year, a 
53.5 	detailed report regarding the funds used. The report must include the number of teachers 
53.6 	prepared as well as the diversity for each cohort of teachers produced.
53.7 		Subd. 14.Youth works program. For funding youth works programs under 
53.8 	Minnesota Statutes, sections 124D.37 to 124D.45:

53.9		$
	900,000
	.....
	2012
	
53.10		$
	900,000
	.....
	2013
	
53.11 	A grantee organization may provide health and child care coverage to the dependents 
53.12 	of each participant enrolled in a full-time youth works program to the extent such coverage 
53.13 	is not otherwise available.
53.14 		Subd. 15.Student organizations. For student organizations:

53.15		$
	725,000
	.....
	2012
	
53.16		$
	725,000
	.....
	2013
	
53.17 	$40,000 each year is for student organizations serving health occupations.
53.18 	$38,000 each year is for student organizations serving service occupations.
53.19 	$88,000 each year is for student organizations serving trade and industry occupations.
53.20 	$84,000 each year is for student organizations serving business occupations.
53.21 	$131,000 each year is for student organizations serving agriculture occupations.
53.22 	$125,000 each year is for student organizations serving family and consumer science 
53.23 	occupations.
53.24 	$95,000 each year is for student organizations serving marketing occupations.
53.25 	Any balance in the first year does not cancel but is available in the second year.
53.26 		Subd. 16.Early childhood literacy programs. For early childhood literacy 
53.27 	programs under Minnesota Statutes, section 119A.50, subdivision 3:

53.28		$
	1,375,000
	.....
	2012
	
53.29		$
	1,375,000
	.....
	2013
	
53.30 	Up to $1,375,000 each year is for leveraging federal and private funding to support 
53.31 	AmeriCorps members serving in the Minnesota Reading Corps program established by 
53.32 	Serve Minnesota, including costs associated with the training and teaching of early literacy 
53.33 	skills to children age three to grade 3 and the evaluation of the impact of the program 
53.34 	under Minnesota Statutes, sections 124D.38, subdivision 2, and 124D.42, subdivision 6.
54.1 		Subd. 17.Education planning and assessment system (EPAS) program. For the 
54.2 	educational planning and assessment system (EPAS) program under Minnesota Statutes, 
54.3 	section 120B.128:

54.4		$
	829,000
	.....
	2012
	
54.5		$
	829,000
	.....
	2013
	
54.6 		Subd. 18.Principals' Leadership Institute. For principal leadership activities 
54.7 	under Minnesota Statutes, section 122A.74:

54.8		$
	150,000
	.....
	2012
	
54.9		$
	150,000
	.....
	2013
	
54.10 		Subd. 19.School recognition awards. For payments to school districts for the 
54.11 	school recognition award program under Minnesota Statutes, section 120B.361:

54.12		$
	0
	.....
	2012
	
54.13		$
	3,455,000
	.....
	2013
	
54.14 	The 2013 appropriation includes $0 for 2012 and $3,455,000 for 2013.
54.15 		Subd. 20.Enrollment options for students at low-performing schools. For the 
54.16 	enrollment options for students at low-performing schools under Minnesota Statutes, 
54.17 	section 124D.031:

54.18		$
	5,616,000
	.....
	2012
	
54.19		$
	13,131,000
	.....
	2013
	
54.20 	Of this appropriation, $400,000 in 2012 and $800,000 in 2013 are for payments to 
54.21 	school districts for reimbursement for transportation expenses under Minnesota Statutes, 
54.22 	section 124D.031, subdivision 4.

54.23 	Sec. 26.  REPEALER.
 54.24 	(a) Minnesota Statutes 2010, sections 123B.05; and 179A.18, subdivision 2, are 
54.25 	repealed.
54.26 	(b) Minnesota Statutes 2010, section 124D.86, subdivisions 1, 1a, 2, 4, 5, and 6;
54.27 	and Minnesota Rules, parts 3535.0100; 3535.0110; 3535.0120; 3535.0130; 3535.0140; 
54.28 	3535.0150; 3535.0160; 3535.0170; and 3535.0180, are repealed.

54.29 	EFFECTIVE DATE. Paragraph (a) is effective the day following final enactment. 
54.30 	Paragraph (b) is effective July 1, 2011.

55.1 	ARTICLE 3
55.2 	SPECIAL EDUCATION

55.3 	Section 1. Minnesota Statutes 2010, section 125A.07, is amended to read:
55.4 	125A.07 RULEMAKING.
55.5 	(a) Consistent with this section, the commissioner shall adopt new rules and 
55.6 	amend existing rules related to children with disabilities only under after receiving
55.7 	specific legislative authority to do so, consistent with section 127A.05, subdivision 4, and 
55.8 	consistent with the requirements of chapter 14 and paragraph (c). Technical changes and 
55.9 	corrections are exempted from this paragraph.
55.10 	(b) As provided in this paragraph, the state's regulatory scheme should support 
55.11 	schools by assuring that all state special education rules adopted by the commissioner 
55.12 	result in one or more of the following outcomes:
55.13 	(1) increased time available to teachers and, where appropriate, to support staff 
55.14 	including school nurses for educating students through direct and indirect instruction;
55.15 	(2) consistent and uniform access to effective education programs for students with 
55.16 	disabilities throughout the state;
55.17 	(3) reduced inequalities and conflict, appropriate due process hearing procedures 
55.18 	and reduced court actions related to the delivery of special education instruction and 
55.19 	services for students with disabilities;
55.20 	(4) clear expectations for service providers and for students with disabilities;
55.21 	(5) increased accountability for all individuals and agencies that provide instruction 
55.22 	and other services to students with disabilities;
55.23 	(6) greater focus for the state and local resources dedicated to educating students 
55.24 	with disabilities; and
55.25 	(7) clearer standards for evaluating the effectiveness of education and support 
55.26 	services for students with disabilities.
55.27 	(c) Subject to chapter 14, the commissioner may adopt, amend, or rescind a rule 
55.28 	related to children with disabilities if such action is specifically required by federal law.

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

55.30 	Sec. 2. Minnesota Statutes 2010, section 125A.21, subdivision 2, is amended to read:
55.31 		Subd. 2.Third-party reimbursement. (a) Beginning July 1, 2000, districts 
55.32 	shall seek reimbursement from insurers and similar third parties for the cost of services 
55.33 	provided by the district whenever the services provided by the district are otherwise 
56.1 	covered by the child's health coverage. Districts shall request, but may not require, the 
56.2 	child's family to provide information about the child's health coverage when a child with a 
56.3 	disability begins to receive services from the district of a type that may be reimbursable, 
56.4 	and shall request, but may not require, updated information after that as needed.
56.5 	(b) For children enrolled in medical assistance under chapter 256B or MinnesotaCare 
56.6 	under chapter 256L who have no other health coverage, a district shall provide an initial
56.7 	and annual written notice to the enrolled child's parent or legal representative of its intent 
56.8 	to seek reimbursement from medical assistance or MinnesotaCare for the individual
56.9 	individualized education plan program health-related services provided by the district.
56.10 	The initial notice must give the child's parent or legal representative the right to:
56.11 	(1) request a copy of the child's education records on the health-related services that 
56.12 	the district provided to the child and disclosed to a third-party payer;
56.13 	(2) withdraw consent for the district to disclose information in a child's education 
56.14 	record at any time without affecting a parent's eligibility for MinnesotaCare or medical 
56.15 	assistance under section 256B.08, subdivision 1, including consent that the parent or 
56.16 	legal representative gave as part of the application process for MinnesotaCare or medical 
56.17 	assistance; and
56.18 	(3) receive a statement, consistent with clause (2), indicating that a decision to 
56.19 	withdraw consent for the district to disclose information in a child's education record does 
56.20 	not affect a parent's eligibility for MinnesotaCare or medical assistance.
56.21 	(c) The district shall give the parent or legal representative annual written notice of:
56.22 	(1) the district's intent to seek reimbursement from medical assistance or 
56.23 	MinnesotaCare for individual education plan health-related services provided by the 
56.24 	district;
56.25 	(2) the right of the parent or legal representative to request a copy of all records 
56.26 	concerning individual education plan health-related services disclosed by the district to 
56.27 	any third party; and
56.28 	(3) the right of the parent or legal representative to withdraw consent for disclosure 
56.29 	of a child's records at any time without consequence, including consent that the parent 
56.30 	or legal representative gave as part of the application process for any public assistance 
56.31 	program that may result in a parent's eligibility for MinnesotaCare or medical assistance 
56.32 	under section 256B.08, subdivision 1.
56.33 	The written notice shall be provided as part of the written notice required by Code of 
56.34 	Federal Regulations, title 34, section 300.504. The district must ensure that the parent of a 
56.35 	child with a disability is given notice, in understandable language, of federal and state 
56.36 	procedural safeguards available to the parent under this paragraph and paragraph (b).
57.1 	(d) In order to access the private health care coverage of a child who is covered by 
57.2 	private health care coverage in whole or in part, a district must:
57.3 	(1) obtain annual written informed consent from the parent or legal representative, in 
57.4 	compliance with subdivision 5; and
57.5 	(2) inform the parent or legal representative that a refusal to permit the district 
57.6 	or state Medicaid agency to access their private health care coverage does not relieve 
57.7 	the district of its responsibility to provide all services necessary to provide free and 
57.8 	appropriate public education at no cost to the parent or legal representative.
57.9 	(e) If the commissioner of human services obtains federal approval to exempt 
57.10 	covered individual education plan health-related services from the requirement that private 
57.11 	health care coverage refuse payment before medical assistance may be billed, paragraphs 
57.12 	(b), (c), and (d) shall also apply to students with a combination of private health care 
57.13 	coverage and health care coverage through medical assistance or MinnesotaCare.
57.14 	(f) In the event that Congress or any federal agency or the Minnesota legislature 
57.15 	or any state agency establishes lifetime limits, limits for any health care services, 
57.16 	cost-sharing provisions, or otherwise provides that individual education plan health-related 
57.17 	services impact benefits for persons enrolled in medical assistance or MinnesotaCare, the 
57.18 	amendments to this subdivision adopted in 2002 are repealed on the effective date of any 
57.19 	federal or state law or regulation that imposes the limits. In that event, districts must 
57.20 	obtain informed consent consistent with this subdivision as it existed prior to the 2002 
57.21 	amendments and subdivision 5, before seeking reimbursement for children enrolled in 
57.22 	medical assistance under chapter 256B or MinnesotaCare under chapter 256L who have 
57.23 	no other health care coverage.

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

57.25 	Sec. 3. Minnesota Statutes 2010, section 125A.21, subdivision 3, is amended to read:
57.26 		Subd. 3.Use of reimbursements. Of the reimbursements received, districts may:
57.27 	(1) retain an amount sufficient to compensate the district for its administrative costs 
57.28 	of obtaining reimbursements;
57.29 	(2) regularly obtain from education- and health-related entities training and other 
57.30 	appropriate technical assistance designed to improve the district's ability to determine 
57.31 	which services are reimbursable and to seek timely reimbursement in a cost-effective 
57.32 	manner access third-party payments for individualized education program health-related 
57.33 	services; or
57.34 	(3) reallocate reimbursements for the benefit of students with special needs
57.35 	individualized education programs or individual family service plans in the district.

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

58.2 	Sec. 4. Minnesota Statutes 2010, section 125A.21, subdivision 5, is amended to read:
58.3 		Subd. 5.Informed consent. When obtaining informed consent, consistent with 
58.4 	sections 13.05, subdivision 4a; and,256B.77, subdivision 2, paragraph (p), and Code of 
58.5 	Federal Regulations, title 34, parts 99 and 300, to bill health plans for covered services, the 
58.6 	school district must notify the legal representative (1) that the cost of the person's private 
58.7 	health insurance premium may increase due to providing the covered service in the school 
58.8 	setting, (2) that the school district may pay certain enrollee health plan costs, including 
58.9 	but not limited to, co-payments, coinsurance, deductibles, premium increases or other 
58.10 	enrollee cost-sharing amounts for health and related services required by an individual 
58.11 	service plan, or individual family service plan, and (3) that the school's billing for each 
58.12 	type of covered service may affect service limits and prior authorization thresholds. The 
58.13 	informed consent may be revoked in writing at any time by the person authorizing the 
58.14 	billing of the health plan.

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

58.16 	Sec. 5. Minnesota Statutes 2010, section 125A.21, subdivision 7, is amended to read:
58.17 		Subd. 7.District disclosure of information. A school district may disclose 
58.18 	information contained in a student's individual individualized education plan program, 
58.19 	consistent with section 13.32, subdivision 3, paragraph (a), and Code of Federal 
58.20 	Regulations, title 34, parts 99 and 300; including records of the student's diagnosis and 
58.21 	treatment, to a health plan company only with the signed and dated consent of the student's 
58.22 	parent, or other legally authorized individual, including consent that the parent or legal 
58.23 	representative gave as part of the application process for MinnesotaCare or medical 
58.24 	assistance under section 256B.08, subdivision 1. The school district shall disclose only 
58.25 	that information necessary for the health plan company to decide matters of coverage and 
58.26 	payment. A health plan company may use the information only for making decisions 
58.27 	regarding coverage and payment, and for any other use permitted by law.  

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

58.29 	Sec. 6. Minnesota Statutes 2010, section 125A.515, is amended by adding a 
58.30 	subdivision to read:
58.31 		Subd. 3a.Students without a disability from other states.  A school district is not 
58.32 	required to provide education services under this section to a student who:
59.1 	(1) is not a resident of Minnesota;
59.2 	(2) does not have an individualized education program; and
59.3 	(3) does not have a tuition arrangement or agreement to pay the cost of education 
59.4 	from the placing authority.

59.5 	EFFECTIVE DATE. This section is effective July 1, 2011, for fiscal year 2012 
59.6 	and later.

59.7 	Sec. 7. Minnesota Statutes 2010, section 125A.69, subdivision 1, is amended to read:
59.8 		Subdivision 1.Two kinds Admissions. There are two kinds of Admission to the 
59.9 	Minnesota State Academies is described in this section.
59.10 	(a) A pupil who is deaf, hard of hearing, or blind-deaf deafblind, may be admitted to 
59.11 	the Academy for the Deaf. A pupil who is blind or visually impaired, blind-deaf deafblind, 
59.12 	or multiply disabled may be admitted to the Academy for the Blind. For a pupil to be 
59.13 	admitted, two decisions must be made under sections 125A.03 to 125A.24 and 125A.65. 
59.14 	(1) It must be decided by the individual education planning team that education in 
59.15 	regular or special education classes in the pupil's district of residence cannot be achieved 
59.16 	satisfactorily because of the nature and severity of the deafness or blindness or visual 
59.17 	impairment respectively.
59.18 	(2) It must be decided by the individual education planning team that the academy 
59.19 	provides the most appropriate placement within the least restrictive alternative for the 
59.20 	pupil.
59.21 	(b) A deaf or hard-of-hearing child or a visually impaired pupil may be admitted to 
59.22 	get socialization skills or on a short-term basis for skills development.
59.23 	(c) A parent of a child who resides in Minnesota and who meets the disability criteria 
59.24 	for being deaf or hard of hearing, blind or visually impaired, or multiply disabled may 
59.25 	apply to place the child in the Minnesota State Academies. Academy staff must review 
59.26 	the application to determine whether the Minnesota State Academies is an appropriate 
59.27 	placement for the child. If academy staff determine that the Minnesota State Academies is 
59.28 	an appropriate placement, the staff must invite the individualized education program team 
59.29 	at the child's resident school district to participate in a meeting to arrange a trial placement 
59.30 	of between 60 and 90 calendar days at the Minnesota State Academies. If the child's 
59.31 	parent consents to the trial placement, the Minnesota State Academies is the responsible 
59.32 	serving school district and incurs all due process obligations under law, and the child's 
59.33 	resident school district is responsible for any transportation included in the child's 
59.34 	individualized education program during the trial placement. Before the trial placement 
59.35 	ends, academy staff must convene an individualized education program team meeting to 
60.1 	determine whether to continue the child's placement at the Minnesota State Academies 
60.2 	or that another placement is appropriate. If the academy members of the individualized 
60.3 	education program team and the parent are unable to agree on the child's placement, the 
60.4 	child's placement reverts to the placement in the child's individualized education program 
60.5 	that immediately preceded the trial placement. If the parent and individualized education 
60.6 	program team agree to continue the placement beyond the trial period, the transportation 
60.7 	and due process responsibilities are the same as those described for the trial placement 
60.8 	under this paragraph.

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

60.10 	Sec. 8. Minnesota Statutes 2010, section 125A.76, subdivision 1, is amended to read:
60.11 		Subdivision 1.Definitions. For the purposes of this section, the definitions in this 
60.12 	subdivision apply.
60.13 	(a) "Basic revenue" has the meaning given it in section 126C.10, subdivision 2. 
60.14 	For the purposes of computing basic revenue pursuant to this section, each child with a 
60.15 	disability shall be counted as prescribed in section 126C.05, subdivision 1.
60.16 	(b) "Essential personnel" means teachers, cultural liaisons, related services, and 
60.17 	support services staff providing services to students. Essential personnel may also include 
60.18 	special education paraprofessionals or clericals providing support to teachers and students 
60.19 	by preparing paperwork and making arrangements related to special education compliance 
60.20 	requirements, including parent meetings and individual education plans. Essential 
60.21 	personnel does not include administrators and supervisors.
60.22 	(c) "Average daily membership" has the meaning given it in section 126C.05.
60.23 	(d) "Program growth factor" means 1.046 1.0 for fiscal year 2012 and later.

60.24 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2012 
60.25 	and later.

60.26 	Sec. 9. Minnesota Statutes 2010, section 125A.79, subdivision 1, is amended to read:
60.27 		Subdivision 1.Definitions. For the purposes of this section, the definitions in this 
60.28 	subdivision apply.
60.29 	(a) "Unreimbursed special education cost" means the sum of the following:
60.30 	(1) expenditures for teachers' salaries, contracted services, supplies, equipment, and 
60.31 	transportation services eligible for revenue under section 125A.76; plus
60.32 	(2) expenditures for tuition bills received under sections 125A.03 to 125A.24 and 
60.33 	125A.65 for services eligible for revenue under section 125A.76, subdivision 2; minus
61.1 	(3) revenue for teachers' salaries, contracted services, supplies, equipment, and 
61.2 	transportation services under section 125A.76; minus
61.3 	(4) tuition receipts under sections 125A.03 to 125A.24 and 125A.65 for services 
61.4 	eligible for revenue under section 125A.76, subdivision 2.
61.5 	(b) "General revenue" means the sum of the general education revenue according to 
61.6 	section 126C.10, subdivision 1, excluding alternative teacher compensation revenue, plus 
61.7 	the total qualifying referendum revenue specified in paragraph (e) minus transportation 
61.8 	sparsity revenue minus total operating capital revenue.
61.9 	(c) "Average daily membership" has the meaning given it in section 126C.05.
61.10 	(d) "Program growth factor" means 1.02 1.0 for fiscal year 2012 and later.
61.11 	(e) "Total qualifying referendum revenue" means two-thirds of the district's total 
61.12 	referendum revenue as adjusted according to section 127A.47, subdivision 7, paragraphs 
61.13 	(a) to (c), for fiscal year 2006, one-third of the district's total referendum revenue for fiscal 
61.14 	year 2007, and none of the district's total referendum revenue for fiscal year 2008 and later.

61.15 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2012 
61.16 	and later.

61.17 	Sec. 10. Laws 2009, chapter 79, article 5, section 60, as amended by Laws 2009, 
61.18 	chapter 173, article 1, section 37, is amended to read:
61.19 	Sec. 60. Minnesota Statutes 2008, section 256L.05, is amended by adding a 
61.20 	subdivision to read:
61.21 		Subd. 1c.Open enrollment and streamlined application and enrollment 
61.22 	process. (a) The commissioner and local agencies working in partnership must develop a 
61.23 	streamlined and efficient application and enrollment process for medical assistance and 
61.24 	MinnesotaCare enrollees that meets the criteria specified in this subdivision.
61.25 	(b) The commissioners of human services and education shall provide 
61.26 	recommendations to the legislature by January 15, 2010, on the creation of an open 
61.27 	enrollment process for medical assistance and MinnesotaCare that is coordinated with 
61.28 	the public education system. The recommendations must:
61.29 	(1) be developed in consultation with medical assistance and MinnesotaCare 
61.30 	enrollees and representatives from organizations that advocate on behalf of children and 
61.31 	families, low-income persons and minority populations, counties, school administrators 
61.32 	and nurses, health plans, and health care providers;
61.33 	(2) be based on enrollment and renewal procedures best practices;
61.34 	(3) simplify the enrollment and renewal processes wherever possible; and
61.35 	(4) establish a process:
62.1 	(i) to disseminate information on medical assistance and MinnesotaCare to all 
62.2 	children in the public education system, including prekindergarten programs; and
62.3 	(ii) for the commissioner of human services to enroll children and other household 
62.4 	members who are eligible.
62.5 	The commissioner of human services in coordination with the commissioner of 
62.6 	education shall implement an open enrollment process by August 1, 2010, to be effective 
62.7 	beginning with the 2010-2011 school year.
62.8 	(c) The commissioner and local agencies shall develop an online application process 
62.9 	for medical assistance and MinnesotaCare.
62.10 	(d) The commissioner shall develop an application for children that is easily 
62.11 	understandable and does not exceed four pages in length.
62.12 	(e) The commissioner of human services shall present to the legislature, by January 
62.13 	15, 2010, an implementation plan for the open enrollment period and online application 
62.14 	process.
62.15 	(f) The commissioner of human services, after consulting with the commissioner of 
62.16 	education, shall include on new and revised Minnesota health care program application 
62.17 	forms, including electronic application forms, an authorization for consent that, if signed 
62.18 	by the parent or legal representative of a child receiving health-related services through 
62.19 	an individualized education program or an individual family services plan, would allow 
62.20 	the school district or other provider of covered services to release information from the 
62.21 	child's education record to the commissioner to permit the provider to be reimbursed by 
62.22 	MinnesotaCare or medical assistance. The authorization for consent under this paragraph 
62.23 	must conform to federal data practices law governing access to nonpublic data in a child's 
62.24 	education record and indicate that the parent or legal representative of the child may 
62.25 	withdraw his or her consent at any time without any consequence to the parent or child. 
62.26 	The commissioner must include this authorization for consent on an application form at 
62.27 	the time the commissioner reviews, revises, or replaces the form.

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

62.29 	Sec. 11. THIRD-PARTY BILLING.
 62.30 	(a) To allow cost-effective billing of medical assistance for covered services that are 
62.31 	not reimbursed by legally liable third party private payers, the commissioner of human 
62.32 	services must:
62.33 	(1) summarize and document school district efforts to secure reimbursement from 
62.34 	legally liable third parties; and
63.1 	(2) request initial and continuing waivers of the requirement to seek payment from a 
63.2 	child's private health plan, consistent with Code of Federal Regulations, title 42, section 
63.3 	433.139, chapter IV, part 433, based on the determination by the Centers for Medicare and 
63.4 	Medicaid Services that this requirement is not cost-effective. The waiver request must 
63.5 	seek permission for the commissioner to allow school districts to bill Medicaid alone, 
63.6 	without first billing private payers, when a child has both public and private coverage. 
63.7 	(b) If the Centers for Medicare and Medicaid Services does not grant ongoing 
63.8 	permission to implement paragraph (a), clause (2), the commissioner of human services 
63.9 	shall seek permission to implement clause (2) on a time-limited basis, with the opportunity 
63.10 	to renew this time-limited permission as needed.

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

63.12 	Sec. 12. APPROPRIATIONS.
 63.13 		Subdivision 1.Department of Education. The sums indicated in this section are 
63.14 	appropriated from the general fund to the Department of Education for the fiscal years 
63.15 	designated.
63.16 		Subd. 2.Special education; regular. For special education aid under Minnesota 
63.17 	Statutes, section 125A.75:

63.18		$
	789,955,000
	.....
	2012
	
63.19		$
	796,681,000
	.....
	2013
	
63.20 	The 2012 appropriation includes $235,975,000 for 2011 and $553,980,000 for 2012.
63.21 	The 2013 appropriation includes $237,419,000 for 2012 and $559,262,000 for 2013.
63.22 		Subd. 3.Aid for children with disabilities. For aid under Minnesota Statutes, 
63.23 	section 125A.75, subdivision 3, for children with disabilities placed in residential facilities 
63.24 	within the district boundaries for whom no district of residence can be determined:

63.25		$
	1,648,000
	.....
	2012
	
63.26		$
	1,745,000
	.....
	2013
	
63.27 	If the appropriation for either year is insufficient, the appropriation for the other 
63.28 	year is available.
63.29 		Subd. 4.Travel for home-based services. For aid for teacher travel for home-based 
63.30 	services under Minnesota Statutes, section 125A.75, subdivision 1:

63.31		$
	357,000
	.....
	2012
	
63.32		$
	359,000
	.....
	2013
	
63.33 	The 2012 appropriation includes $107,000 for 2011 and $250,000 for 2012.
64.1 	The 2013 appropriation includes $107,000 for 2012 and $252,000 for 2013.
64.2 		Subd. 5.Special education; excess costs. For excess cost aid under Minnesota 
64.3 	Statutes, section 125A.79, subdivision 7:

64.4		$
	111,243,000
	.....
	2012
	
64.5		$
	112,122,000
	.....
	2013
	
64.6 	The 2012 appropriation includes $53,449,000 for 2011 and $57,794,000 for 2012.
64.7 	The 2013 appropriation includes $53,777,000 for 2012 and $58,345,000 for 2013.
64.8 		Subd. 6.Court-placed special education revenue. For reimbursing serving 
64.9 	school districts for unreimbursed eligible expenditures attributable to children placed in 
64.10 	the serving school district by court action under Minnesota Statutes, section 125A.79, 
64.11 	subdivision 4:

64.12		$
	80,000
	.....
	2012
	
64.13		$
	82,000
	.....
	2013
	
64.14 		Subd. 7.Special education out-of-state tuition. For special education out-of-state 
64.15 	tuition according to Minnesota Statutes, section 125A.79, subdivision 8:

64.16		$
	250,000
	.....
	2012
	
64.17		$
	250,000
	.....
	2013

64.18 	Sec. 13. REVISOR'S INSTRUCTION.
 64.19 	The revisor of statutes shall substitute the term "individualized education program" 
64.20 	or similar terms for "individual education plan" or similar terms wherever they appear 
64.21 	in Minnesota Statutes and Minnesota Rules referring to the requirements relating to 
64.22 	the federal Individuals with Disabilities Education Act. The revisor shall also make 
64.23 	grammatical changes related to the changes in terms.

64.24 	ARTICLE 4
64.25 	FACILITIES AND TECHNOLOGIES

64.26 	Section 1. Minnesota Statutes 2010, section 123B.54, is amended to read:
64.27 	123B.54 DEBT SERVICE APPROPRIATION.
64.28 	(a) $17,161,000 $12,425,000 in fiscal year 2012 and $19,175,000, $20,459,000 in 
64.29 	fiscal year 2013, $28,558,000 in fiscal year 2014, and $24,095,000 in fiscal year 2015 and 
64.30 	later are appropriated from the general fund to the commissioner of education for payment 
64.31 	of debt service equalization aid under section 123B.53.
65.1 	(b) The appropriations in paragraph (a) must be reduced by the amount of any 
65.2 	money specifically appropriated for the same purpose in any year from any state fund.

65.3 	Sec. 2. Minnesota Statutes 2010, section 123B.59, subdivision 5, is amended to read:
65.4 		Subd. 5.Levy authorized. A district may levy for costs related to an approved 
65.5 	facility plan as follows:
65.6 	(a) if the district has indicated to the commissioner that bonds will be issued, the 
65.7 	district may levy for the principal and interest payments on outstanding bonds issued 
65.8 	according to subdivision 3 after reduction for any alternative facilities aid receivable 
65.9 	under subdivision 6; or
65.10 	(b) if the district has indicated to the commissioner that the plan will be funded 
65.11 	through levy, the district may levy according to the schedule approved in the plan after 
65.12 	reduction for any alternative facilities aid receivable under subdivision 6.

65.13 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2013 
65.14 	and later.

65.15 	Sec. 3. Minnesota Statutes 2010, section 126C.40, subdivision 1, is amended to read:
65.16 		Subdivision 1.To lease building or land. (a) When an independent or a special 
65.17 	school district or a group of independent or special school districts finds it economically 
65.18 	advantageous to rent or lease a building or land for any instructional purposes or for 
65.19 	school storage or furniture repair, and it determines that the operating capital revenue 
65.20 	authorized under section 126C.10, subdivision 13, is insufficient for this purpose, it may 
65.21 	apply to the commissioner for permission to make an additional capital expenditure levy 
65.22 	for this purpose. An application for permission to levy under this subdivision must contain 
65.23 	financial justification for the proposed levy, the terms and conditions of the proposed 
65.24 	lease, and a description of the space to be leased and its proposed use.
65.25 	(b) The criteria for approval of applications to levy under this subdivision must 
65.26 	include: the reasonableness of the price, the appropriateness of the space to the proposed 
65.27 	activity, the feasibility of transporting pupils to the leased building or land, conformity 
65.28 	of the lease to the laws and rules of the state of Minnesota, and the appropriateness of 
65.29 	the proposed lease to the space needs and the financial condition of the district. The 
65.30 	commissioner must not authorize a levy under this subdivision in an amount greater than 
65.31 	the cost to the district of renting or leasing a building or land for approved purposes. 
65.32 	The proceeds of this levy must not be used for custodial or other maintenance services. 
65.33 	A district may not levy under this subdivision for the purpose of leasing or renting a 
65.34 	district-owned building or site to itself.
66.1 	(c) For agreements finalized after July 1, 1997, a district may not levy under this 
66.2 	subdivision for the purpose of leasing: (1) a newly constructed building used primarily 
66.3 	for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed 
66.4 	building addition or additions used primarily for regular kindergarten, elementary, or 
66.5 	secondary instruction that contains more than 20 percent of the square footage of the 
66.6 	previously existing building.
66.7 	(d) Notwithstanding paragraph (b), a district may levy under this subdivision for the 
66.8 	purpose of leasing or renting a district-owned building or site to itself only if the amount 
66.9 	is needed by the district to make payments required by a lease purchase agreement, 
66.10 	installment purchase agreement, or other deferred payments agreement authorized by law, 
66.11 	and the levy meets the requirements of paragraph (c). A levy authorized for a district by 
66.12 	the commissioner under this paragraph may be in the amount needed by the district to 
66.13 	make payments required by a lease purchase agreement, installment purchase agreement, 
66.14 	or other deferred payments agreement authorized by law, provided that any agreement 
66.15 	include a provision giving the school districts the right to terminate the agreement 
66.16 	annually without penalty.
66.17 	(e) The total levy under this subdivision for a district for any year must not exceed 
66.18 	$150 times the resident pupil units for the fiscal year to which the levy is attributable.
66.19 	(f) For agreements for which a review and comment have been submitted to the 
66.20 	Department of Education after April 1, 1998, the term "instructional purpose" as used in 
66.21 	this subdivision excludes expenditures on stadiums.
66.22 	(g) The commissioner of education may authorize a school district to exceed the 
66.23 	limit in paragraph (e) if the school district petitions the commissioner for approval. The 
66.24 	commissioner shall grant approval to a school district to exceed the limit in paragraph (e) 
66.25 	for not more than five years if the district meets the following criteria:
66.26 	(1) the school district has been experiencing pupil enrollment growth in the 
66.27 	preceding five years;
66.28 	(2) the purpose of the increased levy is in the long-term public interest;
66.29 	(3) the purpose of the increased levy promotes colocation of government services; 
66.30 	and
66.31 	(4) the purpose of the increased levy is in the long-term interest of the district by 
66.32 	avoiding over construction of school facilities.
66.33 	(h) A school district that is a member of an intermediate school district may include 
66.34 	in its authority under this section the costs associated with leases of administrative and 
66.35 	classroom space for intermediate school district programs. This authority must not exceed 
67.1 	$43 times the adjusted marginal cost pupil units of the member districts. This authority is 
67.2 	in addition to any other authority authorized under this section.
67.3 	(i) In addition to the allowable capital levies in paragraph (a), for taxes payable in 
67.4 	2012 to 2022, a district that is a member of the "Technology and Information Education 
67.5 	Systems" data processing joint board, that finds it economically advantageous to enter 
67.6 	into a lease purchase agreement for to finance improvements to a building for a group of 
67.7 	school districts or special school districts for staff development purposes, may levy for 
67.8 	its portion of lease costs attributed to the district within the total levy limit in paragraph 
67.9 	(e). The total levy authority under this paragraph shall not exceed $632,000 each year.

67.10 	EFFECTIVE DATE. This section is effective for taxes payable in 2012 and later.

67.11 	Sec. 4. EARLY REPAYMENT.
 67.12 	A school district that received a maximum effort capital loan prior to January 1, 
67.13 	1997, may repay the full outstanding original principal on its capital loan prior to July 1, 
67.14 	2012, and the liability of the district on the loan is satisfied and discharged and interest 
67.15 	on the loan ceases.

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

67.17 	Sec. 5. APPROPRIATIONS.
 67.18 		Subdivision 1.Department of Education. The sums indicated in this section are 
67.19 	appropriated from the general fund to the Department of Education for the fiscal years 
67.20 	designated.
67.21 		Subd. 2.Health and safety revenue. For health and safety aid according to 
67.22 	Minnesota Statutes, section 123B.57, subdivision 5:

67.23		$
	123,000
	.....
	2012
	
67.24		$
	113,000
	.....
	2013
	
67.25 	The 2012 appropriation includes $39,000 for 2011 and $84,000 for 2012.
67.26 	The 2013 appropriation includes $36,000 for 2012 and $77,000 for 2013.
67.27 		Subd. 3.Debt service equalization. For debt service aid according to Minnesota 
67.28 	Statutes, section 123B.53, subdivision 6:

67.29		$
	12,425,000
	.....
	2012
	
67.30		$
	20,459,000
	.....
	2013
	
67.31 	The 2012 appropriation includes $2,604,000 for 2011 and $9,821,000 for 2012.
67.32 	The 2013 appropriation includes $4,208,000 for 2012 and $16,251,000 for 2013.
68.1 		Subd. 4.Alternative facilities bonding aid. For alternative facilities bonding aid, 
68.2 	according to Minnesota Statutes, section 123B.59, subdivision 1:

68.3		$
	19,287,000
	.....
	2012
	
68.4		$
	5,786,000
	.....
	2013
	
68.5 	The 2012 appropriation includes $5,786,000 for 2011 and $13,501,000 for 2012.
68.6 	The 2013 appropriation includes $5,786,000 for 2012 and $0 for 2013.
68.7 		Subd. 5.Equity in telecommunications access. For equity in telecommunications 
68.8 	access:

68.9		$
	3,750,000
	.....
	2012
	
68.10		$
	3,750,000
	.....
	2013
	
68.11 	If the appropriation amount is insufficient, the commissioner shall reduce the 
68.12 	reimbursement rate in Minnesota Statutes, section 125B.26, subdivisions 4 and 5, and the 
68.13 	revenue for fiscal years 2012 and 2013 shall be prorated.
68.14 	Any balance in the first year does not cancel but is available in the second year.
68.15 		Subd. 6.Deferred maintenance aid. For deferred maintenance aid, according to 
68.16 	Minnesota Statutes, section 123B.591, subdivision 4:

68.17		$
	2,494,000
	.....
	2012
	
68.18		$
	3,035,000
	.....
	2013
	
68.19 	The 2012 appropriation includes $676,000 for 2011 and $1,818,000 for 2012.
68.20 	The 2013 appropriation includes $778,000 for 2012 and $2,257,000 for 2013.

68.21 	Sec. 6.  REPEALER.
 68.22 	Minnesota Statutes 2010, section 123B.59, subdivisions 6 and 7, are repealed.

68.23 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2013 
68.24 	and later.

68.25 	ARTICLE 5
68.26 	NUTRITION AND ACCOUNTING

68.27 	Section 1. Minnesota Statutes 2010, section 16A.152, subdivision 2, is amended to 
68.28 	read:
68.29 		Subd. 2.Additional revenues; priority. (a) If on the basis of a forecast of general 
68.30 	fund revenues and expenditures, the commissioner of management and budget determines 
68.31 	that there will be a positive unrestricted budgetary general fund balance at the close of 
69.1 	the biennium, the commissioner of management and budget must allocate money to the 
69.2 	following accounts and purposes in priority order:
69.3 	(1) the cash flow account established in subdivision 1 until that account reaches 
69.4 	$350,000,000;
69.5 	(2) the budget reserve account established in subdivision 1a until that account 
69.6 	reaches $653,000,000;
69.7 	(3) the amount necessary to increase the aid payment schedule for school district 
69.8 	aids and credits payments in section 127A.45 to not more than 90 percent rounded to the 
69.9 	nearest tenth of a percent without exceeding the amount available and with any remaining 
69.10 	funds deposited in the budget reserve;
69.11 	(4) the amount necessary to restore all or a portion of the net aid reductions under 
69.12 	section 127A.441 and to reduce the property tax revenue recognition shift under section 
69.13 	123B.75, subdivision 5, paragraph (a), and Laws 2003, First Special Session chapter 9, 
69.14 	article 5, section 34, as amended by Laws 2003, First Special Session chapter 23, section 
69.15 	20, by the same amount;
69.16 	(5) to the state airports fund, the amount necessary to restore the amount transferred 
69.17 	from the state airports fund under Laws 2008, chapter 363, article 11, section 3, 
69.18 	subdivision 5; and
69.19 	(6) to the fire safety account in the special revenue fund, the amount necessary to 
69.20 	restore transfers from the account to the general fund made in Laws 2010.
69.21 	(b) The amounts necessary to meet the requirements of this section are appropriated 
69.22 	from the general fund within two weeks after the forecast is released or, in the case of 
69.23 	transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations 
69.24 	schedules otherwise established in statute.
69.25 	(c) The commissioner of management and budget shall certify the total dollar 
69.26 	amount of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of 
69.27 	education. The commissioner of education shall increase the aid payment percentage and 
69.28 	reduce the property tax shift percentage by these amounts and apply those reductions to 
69.29 	the current fiscal year and thereafter.

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

69.31 	Sec. 2. Minnesota Statutes 2010, section 123B.75, subdivision 5, is amended to read:
69.32 		Subd. 5.Levy recognition. (a) For fiscal years 2009 and 2010, in June of each 
69.33 	year, the school district must recognize as revenue, in the fund for which the levy was 
69.34 	made, the lesser of:
70.1 	(1) the sum of May, June, and July school district tax settlement revenue received in 
70.2 	that calendar year, plus general education aid according to section 126C.13, subdivision 
70.3 	4, received in July and August of that calendar year; or
70.4 	(2) the sum of:
70.5 	(i) 31 percent of the referendum levy certified according to section 126C.17, in 
70.6 	calendar year 2000; and
70.7 	(ii) the entire amount of the levy certified in the prior calendar year according to 
70.8 	section 124D.86, subdivision 4, for school districts receiving revenue under sections 
70.9 	124D.86, subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, paragraph 
70.10 	(a), and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48, 
70.11 	subdivision 6; plus
70.12 	(iii) zero percent of the amount of the levy certified in the prior calendar year for the 
70.13 	school district's general and community service funds, plus or minus auditor's adjustments, 
70.14 	not including the levy portions that are assumed by the state, that remains after subtracting 
70.15 	the referendum levy certified according to section 126C.17 and the amount recognized 
70.16 	according to item (ii).
70.17 	(b) For fiscal year 2011 and later years, in June of each year, the school district must 
70.18 	recognize as revenue, in the fund for which the levy was made, the lesser of:
70.19 	(1) the sum of May, June, and July school district tax settlement revenue received in 
70.20 	that calendar year, plus general education aid according to section 126C.13, subdivision 
70.21 	4, received in July and August of that calendar year; or
70.22 	(2) the sum of:
70.23 	(i) the greater of 48.6 percent of the referendum levy certified according to section 
70.24 	126C.17 in the prior calendar year, or 31 percent of the referendum levy certified 
70.25 	according to section 126C.17 in calendar year 2000; plus
70.26 	(ii) the entire amount of the levy certified in the prior calendar year according to 
70.27 	section 124D.86, subdivision 4, for school districts receiving revenue under sections 
70.28 	124D.86, subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, paragraph 
70.29 	(a), and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48, 
70.30 	subdivision 6; plus
70.31 	(iii) 48.6 percent of the amount of the levy certified in the prior calendar year for the 
70.32 	school district's general and community service funds, plus or minus auditor's adjustments, 
70.33 	not including the levy portions that are assumed by the state, that remains after subtracting 
70.34 	the referendum levy certified according to section 126C.17 and the amount recognized 
70.35 	according to item (ii).

70.36 	EFFECTIVE DATE. This section is effective for fiscal year 2011 and later.

71.1 	Sec. 3. Minnesota Statutes 2010, section 127A.441, is amended to read:
71.2 	127A.441 AID REDUCTION; LEVY REVENUE RECOGNITION CHANGE.
71.3 	(a) Each year, the state aids payable to any school district for that fiscal year that are 
71.4 	recognized as revenue in the school district's general and community service funds shall 
71.5 	be adjusted by an amount equal to (1) the amount the district recognized as revenue for the 
71.6 	prior fiscal year pursuant to section 123B.75, subdivision 5, paragraph (a) or (b), minus (2) 
71.7 	the amount the district recognized as revenue for the current fiscal year pursuant to section 
71.8 	123B.75, subdivision 5, paragraph (a) or (b). For purposes of making the aid adjustments 
71.9 	under this section, the amount the district recognizes as revenue for either the prior fiscal 
71.10 	year or the current fiscal year pursuant to section 123B.75, subdivision 5, paragraph (b), 
71.11 	shall not include any amount levied pursuant to section 124D.86, subdivision 4, for school 
71.12 	districts receiving revenue under sections 124D.86, subdivision 3, clauses (1), (2), and (3); 
71.13 	126C.41, subdivisions 1, 2, and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; 
71.14 	126C.457; and 126C.48, subdivision 6. Payment from the permanent school fund shall 
71.15 	not be adjusted pursuant to this section. 
71.16 	(b) The commissioner shall schedule the timing of the adjustments under paragraph 
71.17 	(a) as close to the end of the fiscal year as possible.
71.18 	The school district shall be notified of the amount of the adjustment made to each 
71.19 	payment pursuant to this section.

71.20 	EFFECTIVE DATE. This section is effective for fiscal year 2011 and later.

71.21 	Sec. 4. Minnesota Statutes 2010, section 127A.45, subdivision 2, is amended to read:
71.22 		Subd. 2.Definitions. (a) "Other district receipts" means payments by county 
71.23 	treasurers pursuant to section 276.10, apportionments from the school endowment fund 
71.24 	pursuant to section 127A.33, apportionments by the county auditor pursuant to section 
71.25 	127A.34, subdivision 2, and payments to school districts by the commissioner of revenue 
71.26 	pursuant to chapter 298.
71.27 	(b) "Cumulative amount guaranteed" means the product of
71.28 	(1) the cumulative disbursement percentage shown in subdivision 3; times
71.29 	(2) the sum of
71.30 	(i) the current year aid payment percentage of the estimated aid and credit 
71.31 	entitlements paid according to subdivision 13; plus
71.32 	(ii) 100 percent of the entitlements paid according to subdivisions 11 and 12; plus
71.33 	(iii) the other district receipts.
72.1 	(c) "Payment date" means the date on which state payments to districts are made 
72.2 	by the electronic funds transfer method. If a payment date falls on a Saturday, a Sunday, 
72.3 	or a weekday which is a legal holiday, the payment shall be made on the immediately 
72.4 	preceding business day. The commissioner may make payments on dates other than 
72.5 	those listed in subdivision 3, but only for portions of payments from any preceding 
72.6 	payment dates which could not be processed by the electronic funds transfer method due 
72.7 	to documented extenuating circumstances.
72.8 	(d) The current year aid payment percentage equals 73 in fiscal year 2010, 70 in 
72.9 	fiscal year years 2011, 2012, and 2013, and 90 in fiscal years 2012 year 2014 and later.

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

72.11 	Sec. 5. LEVY AID RECOGNITION TIMING.
 72.12 	Notwithstanding Minnesota Statutes, section 127A.441, paragraph (b), the 
72.13 	commissioner of education shall schedule the portion of the aid adjustment for fiscal year 
72.14 	2011 attributable to the exclusion of levy portions assumed by the state from the levy 
72.15 	recognition calculation under Minnesota Statutes, section 123B.75, subdivision 5, to occur 
72.16 	with the final payment for fiscal year 2011 made on October 30, 2011.

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

72.18 	Sec. 6. FUND TRANSFER; FISCAL YEARS 2012 AND 2013 ONLY.
 72.19 	(a) Notwithstanding Minnesota Statutes, section 123B.80, subdivision 3, for fiscal 
72.20 	years 2012 and 2013 only, the commissioner must approve a request for a fund transfer 
72.21 	if the transfer does not increase state aid obligations to the district or result in additional 
72.22 	property tax authority for the district. This section does not permit transfers from the 
72.23 	community service fund or the food service fund.
72.24 	(b) A school board may approve a fund transfer under paragraph (a) only after 
72.25 	adopting a resolution stating the fund transfer will not diminish instructional opportunities 
72.26 	for students.

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

72.28 	Sec. 7. APPROPRIATIONS.
 72.29 		Subdivision 1.Department of Education. The sums indicated in this section are 
72.30 	appropriated from the general fund to the Department of Education for the fiscal years 
72.31 	designated.
73.1 		Subd. 2.School lunch. For school lunch aid according to Minnesota Statutes, 
73.2 	section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

73.3		$
	12,626,000
	.....
	2012
	
73.4		$
	12,878,000
	.....
	2013
	
73.5 		Subd. 3.School breakfast. For traditional school breakfast aid under Minnesota 
73.6 	Statutes, section 124D.1158:

73.7		$
	4,759,000
	.....
	2012
	
73.8		$
	4,875,000
	.....
	2013
	
73.9 		Subd. 4.Kindergarten milk. For kindergarten milk aid under Minnesota Statutes, 
73.10 	section 124D.118:

73.11		$
	1,084,000
	.....
	2012
	
73.12		$
	1,105,000
	.....
	2013
	
73.13 		Subd. 5.Summer food service replacement aid. For summer food service 
73.14 	replacement aid under Minnesota Statutes, section 124D.119:

73.15		$
	150,000
	.....
	2012
	
73.16		$
	150,000
	.....
	2013

73.17 	Sec. 8.  REPEALER.
 73.18 	Minnesota Statutes 2010, section 127A.46, is repealed.

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

73.20 	ARTICLE 6
73.21 	LIBRARIES

73.22 	Section 1. DEPARTMENT OF EDUCATION; LIBRARY APPROPRIATIONS.
 73.23 		Subdivision 1.Department of Education. The sums indicated in this section are 
73.24 	appropriated from the general fund to the Department of Education for the fiscal years 
73.25 	designated.
73.26 		Subd. 2.Basic system support. For basic system support grants under Minnesota 
73.27 	Statutes, section 134.355:

73.28		$
	13,570,000
	.....
	2012
	
73.29		$
	13,570,000
	.....
	2013
	
73.30 	The 2012 appropriation includes $4,071,000 for 2011 and $9,499,000 for 2012.
74.1 	The 2013 appropriation includes $4,071,000 for 2012 and $9,499,000 for 2013.
74.2 		Subd. 3.Multicounty, multitype library systems. For grants under Minnesota 
74.3 	Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:

74.4		$
	1,300,000
	.....
	2012
	
74.5		$
	1,300,000
	.....
	2013
	
74.6 	The 2012 appropriation includes $390,000 for 2011 and $910,000 for 2012.
74.7 	The 2013 appropriation includes $390,000 for 2012 and $910,000 for 2013.
74.8 		Subd. 4.Electronic library for Minnesota. For statewide licenses to online 
74.9 	databases selected in cooperation with the Minnesota Office of Higher Education for 
74.10 	school media centers, public libraries, state government agency libraries, and public 
74.11 	or private college or university libraries:

74.12		$
	900,000
	.....
	2012
	
74.13		$
	900,000
	.....
	2013
	
74.14 	Any balance in the first year does not cancel but is available in the second year.
74.15 		Subd. 5.Regional library telecommunications aid. For regional library 
74.16 	telecommunications aid under Minnesota Statutes, section 134.355:

74.17		$
	2,300,000
	.....
	2012
	
74.18		$
	2,300,000
	.....
	2013
	
74.19 	The 2012 appropriation includes $690,000 for 2011 and $1,610,000 for 2012.
74.20 	The 2013 appropriation includes $690,000 for 2012 and $1,610,000 for 2013.

74.21 	ARTICLE 7
74.22 	EARLY CHILDHOOD EDUCATION

74.23 	Section 1. [119C.01] DEFINITIONS.
74.24 		Subdivision 1.Definitions. The terms defined in this section apply to this chapter.
74.25 		Subd. 2.Commissioner. "Commissioner" means the commissioner of education.
74.26 		Subd. 3.Eligible program. "Eligible program" means a Head Start program under 
74.27 	section 119A.50, school readiness program under section 124D.15, or other public or 
74.28 	private preschool program. 
74.29 		Subd. 4.Income. "Income" has the meaning given in section 119B.011, subdivision 
74.30 	15.
74.31 		Subd. 5.Parent Aware. "Parent Aware" means the voluntary evidence-based quality 
74.32 	rating and improvement system for early childhood education under section 119C.02.
75.1 		Subd. 6.Parent Aware Plus regions. "Parent Aware Plus regions" means Parent 
75.2 	Aware regions as designated by the commissioner under section 119C.03, subdivision 5.
75.3 		Subd. 7.Parent Aware region. "Parent Aware region" means a geographic area 
75.4 	approved by the commissioner under section 119C.03.
75.5 		Subd. 8.Rated program. "Rated program" means an eligible program in a Parent 
75.6 	Aware region that receives one, two, three, or four stars.
75.7 		Subd. 9.Preschool program. A preschool program means a public or private early 
75.8 	childhood program for children ages 3 to 5.

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

75.10 	Sec. 2. [119C.02] PARENT AWARE.
75.11 		Subdivision 1.Department of Education; request for proposal. The Department 
75.12 	of Education must develop a request for proposal for an organization to: (1) develop the 
75.13 	methods used to verify, assess, and monitor program compliance with the standards, 
75.14 	including review of and action on applications; (2) conduct on-site assessments; (3) 
75.15 	develop and maintain a data quality management system for compiling all data used to 
75.16 	calculate program ratings and related procedures for ensuring data quality and integrity; 
75.17 	and (4) coordinate a system for sharing ratings and related quality information with the 
75.18 	public. The commissioner must consult with the Minnesota Early Learning Foundation 
75.19 	to design the request for proposal. Eligible responders include units of state and local 
75.20 	governments, nonprofit organizations, research organizations, and educational institutions. 
75.21 	The commissioner shall issue a request for proposal by July 30, 2011. The commissioner 
75.22 	shall issue a contract by October 31, 2011. The contract is valid for three years. By 
75.23 	July 30, 2014, and every three years thereafter, the commissioner must consult with the 
75.24 	Minnesota Early Learning Foundation or its designated successor organization to review 
75.25 	and update the request for proposal. The contract must be issued by October 31, 2014, and 
75.26 	every three years thereafter. The Minnesota Early Learning Foundation and its designated 
75.27 	successor organization are consultants to the commissioner on the request for proposal 
75.28 	and are not eligible responders.
75.29 		Subd. 2.Criteria; measure. (a) Parent Aware must use quality ratings shown to 
75.30 	be linked to improving children's school readiness outcomes and must evaluate, at a 
75.31 	minimum, how programs perform in the following areas:
75.32 	(1) family partnerships;
75.33 	(2) tracking learning;
75.34 	(3) teacher training and education; and
75.35 	(4) teaching materials and strategies.
76.1 	(b) The commissioner must establish and regularly update the standards and 
76.2 	indicators that determine program quality for the quality rating system. The commissioner 
76.3 	must not mandate or require the use of any specific curriculum, or set standards or 
76.4 	indicators that limit a participating program's curricular offerings. In fiscal year 2012 
76.5 	and later, the commissioner must use the Minnesota quality rating system tool in use 
76.6 	in fiscal year 2011, the results of the evaluations of that quality rating system, and the 
76.7 	recommendations in the report required under section 124D.142.
76.8 	The quality rating system program ratings may reflect a participating program's 
76.9 	accreditation.
76.10 	(c) Ratings must be indicated using stars. Four stars is the best possible rating. No 
76.11 	stars means the program has not been rated.
76.12 		Subd. 3.Rated programs. At least twice each year, beginning June 30, 2012, the 
76.13 	contract entity awarded the contract in subdivision 1 must submit a list of rated programs 
76.14 	to the commissioner. The list of rated programs serves as the commissioner's rating. The 
76.15 	commissioner's decision is final.
76.16 		Subd. 4.Evaluation. The commissioner shall contract with an independent private 
76.17 	organization to use private funds to evaluate the Parent Aware quality rating system if 
76.18 	sufficient private funding is available. The evaluation must incorporate rating levels and 
76.19 	outcome-based data reflecting child progress toward school readiness. The evaluation 
76.20 	must also include recommendations on continued monitoring and improvement of the 
76.21 	correlation between rating levels and outcome-based child progress toward school 
76.22 	readiness. The commissioner shall make available to the independent private organization 
76.23 	any data requested by the organization consistent with chapter 13 and at no cost to the 
76.24 	organization.

76.25 	Sec. 3. [119C.03] SELECTION PROCESS FOR PARENT AWARE REGIONS.
76.26 		Subdivision 1.Designation of Parent Aware regions. For the purposes of this 
76.27 	section, Parent Aware regions are the economic development regions as designated by the 
76.28 	governor under section 462.385.
76.29 		Subd. 2.Application process. The commissioner of education shall develop an 
76.30 	application process to select new Parent Aware regions using the following criteria:
76.31 	(1) the percentage of preschool-aged children who are from families with income 
76.32 	equal to or less than 47 percent of the state median income;
76.33 	(2) the region's demonstrated efforts to use existing public and private resources to 
76.34 	improve program quality in alignment with Parent Aware quality standards;
77.1 	(3) the level of community support, especially support of the school districts, Head 
77.2 	Start programs, counties, and local representatives of other public and private preschool 
77.3 	programs as designated by the commissioner of education; and 
77.4 	(4) the demonstration of quality improvement support from local nonprofits and 
77.5 	foundations.
77.6 		Subd. 3.Application preparation. A resource and referral organization under 
77.7 	section 119B.19, or other entities designated by the commissioner of education, must 
77.8 	prepare and submit the application for their region for approval under subdivision 4 to 
77.9 	become a Parent Aware region in coordination with local partners.
77.10 		Subd. 4.Region approval. The commissioner shall develop an application process 
77.11 	by December 1, 2011. A region may apply beginning February 1, 2012, to become a 
77.12 	Parent Aware region. Economic development regions 9, 10, and 11 are automatically 
77.13 	approved as Parent Aware regions beginning in fiscal year 2012. The commissioner shall 
77.14 	approve the first Parent Aware region by June 30, 2012, and shall approve all regions as 
77.15 	Parent Aware regions by June 30, 2015. 
77.16 		Subd. 5.Parent Aware Plus regions; commissioner approval. The commissioner 
77.17 	of education must designate a Parent Aware region as a Parent Aware Plus region when 
77.18 	there is a sufficient number of programs rated for each program type. The commissioner 
77.19 	must also consider, at a minimum, the following criteria when designating Parent Aware 
77.20 	Plus regions: (1) the distribution of rated programs by eligible program type within a 
77.21 	region; (2) the amount of funding available for scholarships in the region; and (3) the 
77.22 	distribution of the population of low-income preschool-aged children in the region. The 
77.23 	commissioner must also designate Hennepin County, the city of St. Paul, Blue Earth 
77.24 	County, and Nicollet County as Parent Aware Plus regions beginning in fiscal year 2012 
77.25 	and allow those regions to continue using the existing model of the Parent Aware quality 
77.26 	rating system in fiscal year 2012.

77.27 	Sec. 4. [119C.04] EARLY CHILDHOOD EDUCATION SCHOLARSHIPS.
77.28 		Subdivision 1.Early childhood education scholarship locations. In fiscal year 
77.29 	2012 and later, the commissioner shall make scholarships available in the Parent Aware 
77.30 	Plus regions. In fiscal year 2013 and later, the commissioner shall establish additional 
77.31 	locations where early childhood education scholarships may be used to pay for services 
77.32 	provided by rated programs. The additional early childhood education scholarship 
77.33 	locations must be located in Parent Aware Plus regions. The commissioner may assign 
77.34 	duties as described in subdivisions 5 and 7 to approved Parent Aware Plus regions, 
77.35 	as appropriate.
78.1 		Subd. 2.Scholarship eligibility. (a) All children whose parents or legal guardians 
78.2 	meet the eligibility requirements of paragraph (b) are eligible to receive early childhood 
78.3 	education scholarships under this section.
78.4 	(b) A parent or legal guardian is eligible for an early childhood education scholarship 
78.5 	if the parent or legal guardian:
78.6 	(1) has a child three or four years of age on September 1, beginning in calendar 
78.7 	year 2011;
78.8 	(2) lives in one of the early childhood education scholarship locations according to 
78.9 	subdivision 1; and
78.10 	(i) has income equal to or less than 47 percent of the state median income in the 
78.11 	current calendar year; or 
78.12 	(ii) can document their child's identification through another public funding 
78.13 	eligibility process, including the Free and Reduced Price Lunch Program, National School 
78.14 	Lunch Act, United States Code, title 42, section 1751, part 210; Head Start under federal 
78.15 	Improving Head Start for School Readiness Act of 2007; Minnesota family investment 
78.16 	program under chapter 256J; and child care assistance programs under chapter 119B.
78.17 		Subd. 3.Eligibility determination. The commissioner of education shall develop a 
78.18 	simple application process that families may use to apply for early childhood education 
78.19 	scholarships based on the criteria in subdivision 2.
78.20 		Subd. 4.Scholarship value. For fiscal year 2012 and later, the early childhood 
78.21 	education scholarship is equal to $4,000 each year for each eligible child according to 
78.22 	subdivision 2.
78.23 		Subd. 5.Scholarship use. (a) The early childhood education scholarship must be 
78.24 	used during the 13 months after July 1, 2011, and each year thereafter by the parent or 
78.25 	legal guardian on behalf of their child for services designed to promote school readiness at 
78.26 	a rated program in a Parent Aware Plus region. A parent or legal guardian may use the 
78.27 	early childhood education scholarship to pay fees or charges associated with their eligible 
78.28 	child's education at a rated program, according to subdivision 6.
78.29 	(b) To maintain an eligible child's early childhood education scholarship, a parent or 
78.30 	legal guardian must begin to use the scholarship within six months following the receipt 
78.31 	of the scholarship or October 1.
78.32 	(c) For the purpose of dividing the early childhood education scholarship between 
78.33 	two or more rated programs, a parent or legal guardian may reduce the early childhood 
78.34 	education scholarship value paid to an individual rated program. The commissioner must 
78.35 	determine a method to allow a parent or legal guardian to reduce or divide an early 
78.36 	childhood education scholarship.
79.1 		Subd. 6.Quality standard; transition. (a) A rated program is eligible to receive 
79.2 	early childhood education scholarships if the program has received a three- or four-star 
79.3 	rating under Parent Aware under section 119C.02 and is located in a Parent Aware Plus 
79.4 	region. An eligible program must agree to accept early childhood education scholarships 
79.5 	to pay for services. 
79.6 	(b) Notwithstanding paragraph (a), for the first two fiscal years after a Parent 
79.7 	Aware region has become a Parent Aware Plus region, a rated program located in the 
79.8 	Parent Aware Plus region is eligible to receive early childhood education scholarships 
79.9 	to pay for its services if the program has received a one-star or better rating under the 
79.10 	Parent Aware rating system. An eligible program must agree to accept early childhood 
79.11 	education scholarships to pay for services. This paragraph does not apply to the Parent 
79.12 	Aware Plus regions located in the city of St. Paul, Hennepin County, Nicollet County, 
79.13 	and Blue Earth County.
79.14 		Subd. 7.Redeeming a scholarship. (a) A rated program that has received an early 
79.15 	childhood education scholarship on behalf of an eligible child to pay for services must 
79.16 	remit the scholarship in a manner determined by the commissioner.
79.17 	(b) The commissioner must pay rated programs the value of the early childhood 
79.18 	education scholarship within 30 days of receiving the scholarship from a program.
79.19 	(c) The commissioner must determine a method for paying rated programs if a parent 
79.20 	or legal guardian has divided or reduced a scholarship under subdivision 5, paragraph (b).
79.21 		Subd. 8.Earned income calculation. Scholarships paid to providers on behalf 
79.22 	of eligible parents must not be counted as earned income for the purposes of medical 
79.23 	assistance, MinnesotaCare, MFIP, diversionary work program, child care assistance, or 
79.24 	Head Start programs. Scholarships paid to providers on behalf of eligible parents must 
79.25 	not be considered child care funds for the purposes of the child care assistance program 
79.26 	under chapter 119B.

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

79.28 	Sec. 5. Minnesota Statutes 2010, section 124D.15, subdivision 3a, is amended to read:
79.29 		Subd. 3a.Application and reporting requirements. (a) A school readiness 
79.30 	program provider must submit a biennial plan for approval by the commissioner before 
79.31 	receiving aid under section 124D.16. The plan must describe how the program meets the 
79.32 	program requirements under subdivision 3. A school district by April 1 must submit 
79.33 	the plan for approval by the commissioner in the form and manner prescribed by the 
79.34 	commissioner. One-half the districts must first submit the plan by April 1, 2006, and 
80.1 	one-half the districts must first submit the plan by April 1, 2007, as determined by the 
80.2 	commissioner.
80.3 	(b) Programs receiving school readiness funds annually must submit a report to 
80.4 	the department in the form and manner specified by the commissioner. The report must 
80.5 	show how participants in the districts' school readiness programs performed on outcome 
80.6 	measures as defined by the commissioner and display demographic information on 
80.7 	program participants, including family income status, primary language spoken in the 
80.8 	home, and presence of early childhood special education needs.
80.9 	(c) The commissioner must compile the information submitted by school districts 
80.10 	under paragraph (b) and annually report that information to the education committees of 
80.11 	the legislature by February 15.

80.12 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2012 and 
80.13 	later.

80.14 	Sec. 6. PROGRAMMATIC STREAMLINING.
 80.15 	By January 15, 2013, the commissioner of education, in consultation with the 
80.16 	commissioner of human services, shall report to the legislative committees having 
80.17 	jurisdiction over early childhood education and child care on a framework for incorporating 
80.18 	the existing state programs that provide access to early learning programming into a 
80.19 	single scholarship program that funds access to high-quality early learning and care 
80.20 	programs for low-income children in Minnesota. The report must also identify barriers 
80.21 	and impediments to applying federal child care assistance and Head Start program funds 
80.22 	in the form of a scholarship under Minnesota Statutes, section 119C.04. As part of the 
80.23 	framework, the commissioner must also take into consideration efforts for simplifying the 
80.24 	application and management procedures for participating families and providers.

80.25 	Sec. 7. APPROPRIATIONS.
 80.26 		Subdivision 1.Department of Education. The sums indicated in this section are 
80.27 	appropriated from the general fund to the Department of Education for the fiscal years 
80.28 	designated.
80.29 		Subd. 2.School readiness. For revenue for school readiness programs under 
80.30 	Minnesota Statutes, sections 124D.15 and 124D.16:

80.31		$
	10,095,000
	.....
	2012
	
80.32		$
	10,095,000
	.....
	2013
	
80.33 	The 2012 appropriation includes $3,028,000 for 2011 and $7,067,000 for 2012.
81.1 	The 2013 appropriation includes $3,028,000 for 2012 and $7,067,000 for 2013.
81.2 		Subd. 3.Early childhood family education aid. For early childhood family 
81.3 	education aid under Minnesota Statutes, section 124D.135:

81.4		$
	22,466,000
	.....
	2012
	
81.5		$
	23,015,000
	.....
	2013
	
81.6 	The 2012 appropriation includes $6,542,000 for 2011 and $15,924,000 for 2012.
81.7 	The 2013 appropriation includes $6,824,000 for 2012 and $16,191,000 for 2013.
81.8 		Subd. 4.Health and developmental screening aid. For health and developmental 
81.9 	screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

81.10		$
	3,568,000
	.....
	2012
	
81.11		$
	3,547,000
	.....
	2013
	
81.12 	The 2012 appropriation includes $1,066,000 for 2011 and $2,502,000 for 2012.
81.13 	The 2013 appropriation includes $1,072,000 for 2012 and $2,475,000 for 2013.
81.14 		Subd. 5.Head Start program. For Head Start programs under Minnesota Statutes, 
81.15 	section 119A.52:

81.16		$
	20,100,000
	.....
	2012
	
81.17		$
	20,100,000
	.....
	2013
	
81.18 		Subd. 6.Educate parents partnership. For the educate parents partnership under 
81.19 	Minnesota Statutes, section 124D.129:

81.20		$
	49,000
	.....
	2012
	
81.21		$
	49,000
	.....
	2013
	
81.22 		Subd. 7.Kindergarten entrance assessment initiative and intervention 
81.23 	program. For the kindergarten entrance assessment initiative and intervention program 
81.24 	under Minnesota Statutes, section 124D.162:

81.25		$
	281,000
	.....
	2012
	
81.26		$
	281,000
	.....
	2013
	
81.27 		Subd. 8.Quality rating and improvement system. For improving effectiveness of 
81.28 	teacher-child interaction in the classroom under Minnesota Statutes, section 124D.142, 
81.29 	paragraph (c):

81.30		$
	1,750,000
	.....
	2012
	
81.31		$
	0
	.....
	2013
	
81.32 	Any balance in the first year does not cancel but is available in the second year.
82.1 	The base funding for this program is $2,000,000 in fiscal year 2014 and $0 in fiscal 
82.2 	year 2015.
82.3 		Subd. 9.Early childhood education scholarships. For grants to early childhood 
82.4 	education scholarships under Minnesota Statutes, section 119C.04:

82.5		$
	 5,000,000
	.....
	2012
	
82.6		$
	 5,000,000
	.....
	2013
	
82.7 	In fiscal year 2012, the appropriation is for grants to projects located in the Parent 
82.8 	Aware Plus regions. In fiscal year 2013 and later, the appropriation is for scholarship 
82.9 	grants to fund eligible early childhood care and education programs located in Parent 
82.10 	Aware Plus regions that have received early childhood education scholarships from 
82.11 	eligible parents or legal guardians under Minnesota Statutes, section 119C.04, subdivision 
82.12 	2. The base funding for this program is $5,000,000 in fiscal year 2014 and later.
82.13 	Each year, if this appropriation is insufficient to provide early childhood education 
82.14 	scholarships to all eligible children, the Department of Education shall make scholarships 
82.15 	available on a first-come, first-served basis.

82.16 	ARTICLE 8
82.17 	PREVENTION

82.18 	Section 1. Minnesota Statutes 2010, section 124D.19, subdivision 3, is amended to 
82.19 	read:
82.20 		Subd. 3.Community education director. (a) Except as provided under paragraphs 
82.21 	(b) and (c), each board shall employ a licensed community education director. The board 
82.22 	shall submit the name of the person who is serving as director of community education 
82.23 	under this section on the district's annual community education report to the commissioner.
82.24 	(b) A board may apply to the Minnesota Board of School Administrators under 
82.25 	Minnesota Rules, part 3512.3500, subpart 9, for authority to use an individual who is not 
82.26 	licensed as a community education director.
82.27 	(c) A board of a district with a total population of 2,000 10,000 or less may identify 
82.28 	an employee who holds a valid Minnesota principal or superintendent license under 
82.29 	Minnesota Rules, chapter 3512, to serve as director of community education. To be 
82.30 	eligible for an exception under this paragraph, the board shall certify in writing to the 
82.31 	commissioner that the district has not placed a licensed director of community education 
82.32 	on unrequested leave.

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

83.1 	Sec. 2. APPROPRIATION.
 83.2 		Subdivision 1.Department of Education. The sums indicated in this section are 
83.3 	appropriated from the general fund to the Department of Education for the fiscal years 
83.4 	designated.
83.5 		Subd. 2.Community education aid. For community education aid under 
83.6 	Minnesota Statutes, section 124D.20:

83.7		$
	478,000
	.....
	2012
	
83.8		$
	694,000
	.....
	2013
	
83.9 	The 2012 appropriation includes $134,000 for 2011 and $344,000 for 2012.
83.10 	The 2013 appropriation includes $147,000 for 2012 and $547,000 for 2013.
83.11 		Subd. 3.Adults with disabilities program aid. For adults with disabilities 
83.12 	programs under Minnesota Statutes, section 124D.56:

83.13		$
	710,000
	.....
	2012
	
83.14		$
	710,000
	.....
	2013
	
83.15 	The 2012 appropriation includes $213,000 for 2011 and $497,000 for 2012.
83.16 	The 2013 appropriation includes $213,000 for 2012 and $497,000 for 2013.
83.17 		Subd. 4.Hearing-impaired adults. For programs for hearing-impaired adults 
83.18 	under Minnesota Statutes, section 124D.57:

83.19		$
	70,000
	.....
	2012
	
83.20		$
	70,000
	.....
	2013
	
83.21 		Subd. 5.School-age care revenue. For extended day aid under Minnesota Statutes, 
83.22 	section 124D.22:

83.23		$
	1,000
	.....
	2012
	
83.24		$
	1,000
	.....
	2013
	
83.25 	The 2012 appropriation includes $0 for 2011 and $1,000 for 2012.
83.26 	The 2013 appropriation includes $0 for 2012 and $1,000 for 2013.

83.27 	ARTICLE 9
83.28 	SELF-SUFFICIENCY AND LIFELONG LEARNING

83.29 	Section 1. Minnesota Statutes 2010, section 124D.531, subdivision 1, is amended to 
83.30 	read:
83.31 		Subdivision 1.State total adult basic education aid. (a) The state total adult basic 
83.32 	education aid for fiscal year 2005 is $36,509,000. The state total adult basic education 
84.1 	aid for fiscal year 2006 equals $36,587,000 plus any amount that is not paid for during 
84.2 	the previous fiscal year, as a result of adjustments under subdivision 4, paragraph (a), 
84.3 	or section 124D.52, subdivision 3. The state total adult basic education aid for fiscal 
84.4 	year 2007 equals $37,673,000 plus any amount that is not paid for during the previous 
84.5 	fiscal year, as a result of adjustments under subdivision 4, paragraph (a), or section 
84.6 	124D.52, subdivision 3. The state total adult basic education aid for fiscal year 2008 2012 
84.7 	and later equals $40,650,000 $44,550,000, plus any amount that is not paid during the 
84.8 	previous fiscal year as a result of adjustments under subdivision 4, paragraph (a), or 
84.9 	section 124D.52, subdivision 3. The state total adult basic education aid for later fiscal 
84.10 	years equals:
84.11 	(1) the state total adult basic education aid for the preceding fiscal year plus any 
84.12 	amount that is not paid for during the previous fiscal year, as a result of adjustments under 
84.13 	subdivision 4, paragraph (a), or section 124D.52, subdivision 3; times
84.14 	(2) the lesser of:
84.15 	(i) 1.03; or
84.16 	(ii) the average growth in state total contact hours over the prior ten program years.
84.17 	Beginning in fiscal year 2002, two percent of the state total adult basic education 
84.18 	aid must be set aside for adult basic education supplemental service grants under section 
84.19 	124D.522.
84.20 	(b) The state total adult basic education aid, excluding basic population aid, equals 
84.21 	the difference between the amount computed in paragraph (a), and the state total basic 
84.22 	population aid under subdivision 2.

84.23 	EFFECTIVE DATE. This section is effective for revenue for fiscal years 2012 
84.24 	and later.

84.25 	Sec. 2. APPROPRIATIONS.
 84.26 		Subdivision 1.Department of Education. The sums indicated in this section are 
84.27 	appropriated from the general fund to the Department of Education for the fiscal years 
84.28 	designated.
84.29 		Subd. 2.Adult basic education aid. For adult basic education aid under Minnesota 
84.30 	Statutes, section 124D.531:

84.31		$
	44,452,000
	.....
	2012
	
84.32		$
	44,507,000
	.....
	2013
	
84.33 	The 2012 appropriation includes $13,365,000 for 2011 and $31,087,000 for 2012.
84.34 	The 2013 appropriation includes $13,322,000 for 2012 and $31,185,000 for 2013.
85.1 		Subd. 3.GED tests. For payment of 60 percent of the costs of GED tests under 
85.2 	Minnesota Statutes, section 124D.55:

85.3		$
	125,000
	.....
	2012
	
85.4		$
	125,000
	.....
	2013

85.5 	ARTICLE 10
85.6 	STATE AGENCIES

85.7 	Section 1. Minnesota Statutes 2010, section 120B.35, subdivision 1, is amended to read:
85.8 		Subdivision 1.School and student indicators of growth and achievement.
 85.9 	The commissioner must develop and implement a system for measuring and reporting 
85.10 	academic achievement and individual student growth, consistent with the statewide 
85.11 	educational accountability and reporting system. The system components must measure 
85.12 	and separately report the adequate yearly progress of schools and the growth of individual 
85.13 	students: students' current achievement in schools under subdivision 2; and individual 
85.14 	students' educational growth over time under subdivision 3. The commissioner annually 
85.15 	must report a student's growth and progress toward grade-level proficiency under section 
85.16 	120B.299 as it relates to applicable state academic standards and the statewide assessments 
85.17 	aligned with those standards. The system also must include statewide measures of student 
85.18 	academic growth that identify schools with high levels of growth, and also schools with 
85.19 	low levels of growth that need improvement. When determining a school's effect, the data 
85.20 	must include both statewide measures of student achievement and, to the extent annual 
85.21 	tests are administered, indicators of achievement growth that take into account a student's 
85.22 	prior achievement. Indicators of achievement and prior achievement must be based on 
85.23 	highly reliable statewide or districtwide assessments. Indicators that take into account a 
85.24 	student's prior achievement must not be used to disregard a school's low achievement or to 
85.25 	exclude a school from a program to improve low achievement levels.

85.26 	EFFECTIVE DATE. This section is effective July 1, 2012, and applies to growth 
85.27 	data beginning in the 2012-2013 school year.

85.28 	Sec. 2. Minnesota Statutes 2010, section 120B.36, subdivision 1, is amended to read:
85.29 		Subdivision 1.School performance report cards. (a) The commissioner 
85.30 	shall report student academic performance under section 120B.35, subdivision 2; the 
85.31 	percentages of students showing low, medium, and high growth under section 120B.35, 
85.32 	subdivision 3, paragraph (b); school safety and student engagement and connection 
85.33 	under section 120B.35, subdivision 3, paragraph (d); rigorous coursework under section 
86.1 	120B.35, subdivision 3, paragraph (c); two separate student-to-teacher ratios that clearly 
86.2 	indicate the definition of teacher consistent with sections 122A.06 and 122A.15 for 
86.3 	purposes of determining these ratios; staff characteristics excluding salaries; the number 
86.4 	of teachers in each performance effectiveness rating category under section 122A.411, 
86.5 	subdivision 3, by school site; student enrollment demographics; district mobility; and 
86.6 	extracurricular activities. The report also must indicate a school's adequate yearly progress 
86.7 	status, and must not set any designations applicable to high- and low-performing schools 
86.8 	due solely to adequate yearly progress status.
86.9 	(b) The commissioner shall develop, annually update, and post on the department 
86.10 	Web site school performance report cards.
86.11 	(c) The commissioner must make available performance report cards by the 
86.12 	beginning of each school year.
86.13 	(d) A school or district may appeal its adequate yearly progress status in writing to 
86.14 	the commissioner within 30 days of receiving the notice of its status. The commissioner's 
86.15 	decision to uphold or deny an appeal is final.
86.16 	(e) School performance report card data are nonpublic data under section 13.02, 
86.17 	subdivision 9, until not later than ten days after the appeal procedure described in 
86.18 	paragraph (d) concludes. The department shall annually post school performance report 
86.19 	cards to its public Web site no later than September 1.

86.20 	EFFECTIVE DATE. This section is effective July 1, 2014.

86.21 	Sec. 3. Minnesota Statutes 2010, section 122A.40, subdivision 5, is amended to read:
86.22 		Subd. 5.Probationary period. (a) The first three consecutive years of a teacher's 
86.23 	first teaching experience in Minnesota in a single district is deemed to be a probationary 
86.24 	period of employment, and after completion thereof, the probationary period in each 
86.25 	district in which the teacher is thereafter employed shall be one year. The school board 
86.26 	must issue a three-year employment contract and adopt a plan for written evaluation of 
86.27 	teachers during the probationary period that complies with section 122A.411. During the 
86.28 	first 90 school days only of a probationary teacher's first year of employment, the board 
86.29 	may terminate the teacher at will. Evaluation must occur at least three times each year for a 
86.30 	teacher performing services on 120 or more school days, at least two times each year for a 
86.31 	teacher performing services on 60 to 119 school days, and at least one time each year for a 
86.32 	teacher performing services on fewer than 60 school days. Days devoted to parent-teacher 
86.33 	conferences, teachers' workshops, and other staff development opportunities and days on 
86.34 	which a teacher is absent from school must not be included in determining the number 
86.35 	of school days on which a teacher performs services. Except as otherwise provided in 
87.1 	paragraph (b), during the probationary period any annual contract with any teacher may or 
87.2 	may not be renewed as the school board shall see fit. However, The board must give any 
87.3 	such probationary teacher whose contract it declines to renew for the following school 
87.4 	year written notice to that effect before July 1. If the teacher requests reasons for any 
87.5 	nonrenewal of a teaching contract, the board must give the teacher its reason in writing, 
87.6 	including a statement that appropriate supervision was furnished describing the nature and 
87.7 	the extent of such supervision furnished the teacher during the employment by the board, 
87.8 	within ten days after receiving such request. The school board may, after a hearing held 
87.9 	upon due notice, discharge a teacher during the probationary period for cause, effective 
87.10 	immediately, under section 122A.44.
87.11 	(b) A board must discharge a probationary teacher, effective immediately, upon 
87.12 	receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the teacher's 
87.13 	license has been revoked due to a conviction for child abuse or sexual abuse.
87.14 	(c) A probationary teacher whose first three years of consecutive employment are 
87.15 	interrupted for active military service and who promptly resumes teaching consistent with 
87.16 	federal reemployment timelines for uniformed service personnel under United States 
87.17 	Code, title 38, section 4312(e), is considered to have a consecutive teaching experience 
87.18 	for purposes of paragraph (a).
87.19 	(d) A probationary teacher must complete at least 60 days of teaching service each 
87.20 	year during the probationary period. Days devoted to parent-teacher conferences, teachers' 
87.21 	workshops, and other staff development opportunities and days on which a teacher is 
87.22 	absent from school do not count as days of teaching service under this paragraph.
87.23 	(e) A district must decide whether to issue a contract to a probationary classroom 
87.24 	teacher at the end of the teacher's probationary period based on:
87.25 	(1) the teacher's professional growth plan based on standards of effective professional 
87.26 	practice, student learning goals, and teacher evaluations under this subdivision that 
87.27 	comply with section 122A.411;
87.28 	(2) the teacher's appraisal results and performance effectiveness rating under section 
87.29 	122A.411; and
87.30 	(3) other locally selected criteria aligned to instructional practices in teaching and 
87.31 	learning.

87.32 	EFFECTIVE DATE. This section is effective for the 2014-2015 school year and 
87.33 	later.

87.34 	Sec. 4. Minnesota Statutes 2010, section 122A.40, subdivision 6, is amended to read:
88.1 		Subd. 6.Professional development and mentoring for probationary teachers.
 88.2 	(a) A school board and the exclusive representative of the teachers in the district must 
88.3 	collaborate in establishing a professional development model for probationary teachers, 
88.4 	consistent with subdivision 8, that uses a district's professional development resources and 
88.5 	plans, including those under sections 122A.414, if applicable, 122A.60, and 122A.61, to 
88.6 	improve teaching and learning.
88.7 	(b) A school board and an exclusive representative of the teachers in the district 
88.8 	must develop a probationary teacher peer review process through joint agreement. The 
88.9 	process may include having trained observers serve as mentors or coaches or having 
88.10 	teachers participate in professional learning communities.

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

88.13 	Sec. 5. Minnesota Statutes 2010, section 122A.40, subdivision 7, is amended to read:
88.14 		Subd. 7.Termination of contract after probationary period. (a) A teacher who 
88.15 	has completed a probationary period in any district, and who has not been discharged or 
88.16 	advised of a refusal to renew the teacher's contract under subdivision 5, shall elect to have 
88.17 	a continuing renewable five-year contract with such the district where contract terms and 
88.18 	conditions, including salary and salary increases, are established based either on the length 
88.19 	of the school calendar or an extended school calendar under section 120A.415. Thereafter,
88.20 	The teacher's contract must remain in full force and effect, except as modified by mutual 
88.21 	consent of the board and the teacher, until terminated by a majority roll call vote of the full 
88.22 	membership of the board prior to April 1 upon one of the grounds specified in subdivision 
88.23 	9 or July 1 upon one of the grounds specified in subdivision 10 or 11, or until the teacher 
88.24 	is discharged pursuant to subdivision 13, or by the written resignation of the teacher 
88.25 	submitted prior to April 1. If an agreement as to the terms and conditions of employment 
88.26 	for the succeeding school year has not been adopted pursuant to the provisions of sections 
88.27 	179A.01 to 179A.25 prior to March 1, the teacher's right of resignation is extended to the 
88.28 	30th calendar day following the adoption of said the contract in compliance with under
88.29 	section 179A.20, subdivision 5. Such Written resignation by the teacher is effective as 
88.30 	of on June 30 if submitted prior to before that date and the teachers' teacher's right of 
88.31 	resignation for the next school year then beginning shall cease on July 15. 
88.32 	(b) Before a teacher's contract is terminated by the board, the board must notify 
88.33 	the teacher in writing and state its ground for the proposed termination in reasonable 
88.34 	detail together with a statement that the teacher may make a written request for a hearing 
88.35 	before the board within 14 days after receipt of such notification. If the grounds are those 
89.1 	specified in subdivision 9 or 13, the notice must also state a teacher may request arbitration 
89.2 	under subdivision 15. Within 14 days after receipt of this notification the teacher may 
89.3 	make a written request for a hearing before the board or an arbitrator and it shall be 
89.4 	granted upon reasonable notice to the teacher of the date set for hearing, before final action 
89.5 	is taken. If no hearing is requested within such period, it shall be deemed acquiescence by 
89.6 	the teacher to the board's action. Such The teacher's termination shall take effect at the 
89.7 	close of the school year in which the contract is terminated in the manner aforesaid must 
89.8 	comply with subdivision 9 or 13. Such A contract may be terminated at any time by mutual 
89.9 	consent of the board and the teacher and this section does not affect the powers of a board 
89.10 	to suspend, discharge, or demote a teacher under and pursuant to other provisions of law.
89.11 	(b) (c) A teacher electing to have a continuing contract based on the extended school 
89.12 	calendar under section 120A.415 must participate in staff development training under 
89.13 	subdivision 7a and shall receive an increased base salary.

89.14 	EFFECTIVE DATE. This section is effective for the 2014-2015 school year and 
89.15 	later.

89.16 	Sec. 6. Minnesota Statutes 2010, section 122A.40, is amended by adding a subdivision 
89.17 	to read:
89.18 		Subd. 7b.Teacher employment. (a) A school district must use a teacher appraisal 
89.19 	framework to make informed decisions about teacher development and performance. 
89.20 	Teachers must participate in ongoing professional development to improve teaching and 
89.21 	learning throughout a term of employment.
89.22 	(b) After completing the initial three-year probationary period without discharge, a 
89.23 	teacher who is reemployed by a school board continues in service and holds that position 
89.24 	during good behavior and efficient and competent service for a renewable five-year term. 
89.25 	The terms and conditions of a teacher's employment contract, including salary and salary 
89.26 	increases, must be based either on the length of the school year or an extended school 
89.27 	calendar under section 120A.415.
89.28 	(c) At the end of every five-year term, the school board either must continue or 
89.29 	terminate a teacher's employment based on:
89.30 	(1) a portfolio of the teacher's five-year professional growth plan based on standards 
89.31 	of professional practice, student learning, and successful teacher evaluations, consistent 
89.32 	with section 122A.411, that are conducted at least twice per year by a trained school 
89.33 	administrator;
89.34 	(2) the teacher's appraisal results and performance effectiveness rating under section 
89.35 	122A.411; and 
90.1 	(3) other locally selected criteria aligned to instructional practices in teaching and 
90.2 	learning.

90.3 	EFFECTIVE DATE. This section is effective for the 2014-2015 school year and 
90.4 	later.

90.5 	Sec. 7. Minnesota Statutes 2010, section 122A.40, subdivision 8, is amended to read:
90.6 		Subd. 8.Professional development and peer coaching for continuing contract 
90.7 	teachers. (a) A school board and the exclusive representative of the teachers in the district 
90.8 	must collaborate in establishing a professional development model for continuing contract 
90.9 	teachers, consistent with subdivision 6, that uses a district's professional development 
90.10 	resources and plans, including those under sections 122A.414, if applicable, 122A.60, and 
90.11 	122A.61, to improve teaching and learning.
90.12 	(b) A school board and an exclusive representative of the teachers in the district shall 
90.13 	develop a peer review process for continuing contract teachers through joint agreement. 
90.14 	The process may include having trained observers serve as peer coaches or having 
90.15 	teachers participate in professional learning communities.

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

90.18 	Sec. 8. Minnesota Statutes 2010, section 122A.40, subdivision 9, is amended to read:
90.19 		Subd. 9.Grounds for termination. (a) A continuing contract may be terminated, 
90.20 	effective at the close of the school year, upon any of the following grounds:
90.21 	(a) (1) inefficiency;
90.22 	(b) (2) neglect of duty, or persistent violation of school laws, rules, regulations, 
90.23 	or directives;
90.24 	(c) (3) conduct unbecoming a teacher which materially impairs the teacher's 
90.25 	educational effectiveness;
90.26 	(d) (4) other good and sufficient grounds rendering the teacher unfit to perform the 
90.27 	teacher's duties.; or
90.28 	(5) the teacher is ineffective under section 122A.411 and not recommended by the 
90.29 	district for continued employment under this section.
90.30 	(b) A contract must not be terminated upon one of the grounds specified in clause
90.31 	under paragraph (a), (b), (c), or (d), clause (5), unless the teacher fails to correct the 
90.32 	deficiency after being given written notice of the specific items of complaint and 
90.33 	reasonable time within which180 days after receiving the notice to remedy them.

91.1 	EFFECTIVE DATE. This section is effective for the 2014-2015 school year and 
91.2 	later.

91.3 	Sec. 9. Minnesota Statutes 2010, section 122A.40, subdivision 10, is amended to read:
91.4 		Subd. 10.Negotiated unrequested leave of absence. The school board and the 
91.5 	exclusive bargaining representative of the teachers may negotiate a plan providing for 
91.6 	unrequested leave of absence without pay or fringe benefits for as many teachers as may 
91.7 	be necessary because of discontinuance of position, lack of pupils, financial limitations, or 
91.8 	merger of classes caused by consolidation of districts. Failing to successfully negotiate 
91.9 	such a plan, the provisions of subdivision 11 shall apply. The negotiated plan must not 
91.10 	include provisions which would result in the exercise of seniority by a teacher holding a 
91.11 	provisional license, other than a vocational education license, contrary to the provisions of 
91.12 	subdivision 11, clause (c), or the reinstatement of a teacher holding a provisional license, 
91.13 	other than a vocational education license, contrary to the provisions of subdivision 11, 
91.14 	clause (e). The provisions of section 179A.16 do not apply for the purposes of this 
91.15 	subdivision.

91.16 	EFFECTIVE DATE. This section is effective for the 2014-2015 school year and 
91.17 	later.

91.18 	Sec. 10. Minnesota Statutes 2010, section 122A.40, subdivision 11, is amended to read:
91.19 		Subd. 11.Unrequested leave of absence. (a) The board may place on unrequested 
91.20 	leave of absence, without pay or fringe benefits, as many teachers as may be necessary 
91.21 	because of discontinuance of position, lack of pupils, financial limitations, or merger of 
91.22 	classes caused by consolidation of districts. The unrequested leave is effective at the close 
91.23 	of the school year. In placing teachers on unrequested leave, the superintendent may 
91.24 	exempt from the effects of paragraphs (b) to (f) those teachers who, in the superintendent's 
91.25 	judgment, are able to provide instruction that similarly licensed teachers cannot provide or 
91.26 	whose subject area license meets unmet district needs for student instruction. The board is 
91.27 	governed by the following provisions: paragraphs (b) to (k).
91.28 	(a) The board may place probationary teachers on unrequested leave first in the 
91.29 	inverse order of their employment. A teacher who has acquired continuing contract rights 
91.30 	must not be placed on unrequested leave of absence while probationary teachers are 
91.31 	retained in positions for which the teacher who has acquired continuing contract rights is 
91.32 	licensed;
91.33 	(b) Teachers who have acquired continuing contract rights shall be placed on 
91.34 	unrequested leave of absence in fields in which they are licensed in the following order:
92.1 	(1) teachers with a "needs improvement" or "ineffective" rating under section 
92.2 	122A.411 in the inverse order in which they were employed by the school district.;
92.3 	(2) teachers with an "average" rating under section 122A.411 with four or more 
92.4 	years of teaching experience in the inverse order in which they were employed by the 
92.5 	school district;
92.6 	(3) teachers with an "effective" rating under section 122A.411 with fewer than 
92.7 	four years of teaching experience in the inverse order in which they were employed by 
92.8 	the school district;
92.9 	(4) teachers with a "highly effective" rating under section 122A.411 in the inverse 
92.10 	order in which they were employed by the school district;
92.11 	(5) teachers with a "distinguished" rating under section 122A.411 in the inverse 
92.12 	order in which they were employed by the school district; and
92.13 	(6) teachers with an "exemplary" rating under section 122A.411 in the inverse order 
92.14 	in which they were employed by the school district.
92.15 	(c) In the case of equal seniority within a clause of paragraph (b), the order in which 
92.16 	teachers who have acquired continuing contract rights shall be placed on unrequested 
92.17 	leave of absence in fields in which they are licensed is negotiable;.
92.18 	(c) Notwithstanding the provisions of clause (b), a teacher is not entitled to exercise 
92.19 	any seniority when that exercise results in that teacher being retained by the district in a 
92.20 	field for which the teacher holds only a provisional license, as defined by the board of 
92.21 	teaching, unless that exercise of seniority results in the placement on unrequested leave of 
92.22 	absence of another teacher who also holds a provisional license in the same field. The 
92.23 	provisions of this clause do not apply to vocational education licenses;
92.24 	(d) Notwithstanding clauses (a), paragraphs (b) and (c), if the placing of a 
92.25 	probationary teacher on unrequested leave before a teacher who has acquired continuing 
92.26 	rights, the placing of a teacher who has acquired continuing contract rights on unrequested 
92.27 	leave before another teacher who has acquired continuing contract rights but who has 
92.28 	greater seniority, or the restriction restrictions imposed by the provisions of clause
92.29 	paragraph (b) or (c) would place the district in violation of its affirmative action program, 
92.30 	the district may retain the probationary teacher, the teacher with less seniority, or the 
92.31 	provisionally licensed teacher; with a lower designated status or less seniority.
92.32 	(e) Teachers placed on unrequested leave of absence must be reinstated to the 
92.33 	positions from which they have been given leaves of absence or, if not available, to 
92.34 	other available positions in the school district in fields in which they are licensed. 
92.35 	Reinstatement must be in the inverse order of placement on leave of absence. A teacher 
92.36 	must not be reinstated to a position in a field in which the teacher holds only a provisional 
93.1 	license, other than a vocational education license, while another teacher who holds a 
93.2 	nonprovisional license in the same field remains on unrequested leave. The order of 
93.3 	reinstatement of teachers who have equal seniority and who are placed on unrequested 
93.4 	leave in the same school year is negotiable;.
93.5 	(f) Appointment of a new teacher must not be made while there is available, on 
93.6 	unrequested leave, a teacher who is properly licensed to fill such vacancy, unless the 
93.7 	teacher fails to advise the school board within 30 days of the date of notification that a 
93.8 	position is available to that teacher who may return to employment and assume the duties 
93.9 	of the position to which appointed on a future date determined by the board;.
93.10 	(g) A teacher placed on unrequested leave of absence may engage in teaching or any 
93.11 	other occupation during the period of this leave;.
93.12 	(h) The unrequested leave of absence must not impair the continuing contract rights 
93.13 	of a teacher or result in a loss of credit for previous years of service;.
93.14 	(i) The unrequested leave of absence of a teacher who is placed on unrequested leave 
93.15 	of absence and who is not reinstated shall continue for a period of five years until that 
93.16 	teacher's contract expires under subdivision 7b, after which the right to reinstatement shall 
93.17 	terminate. The teacher's right to reinstatement shall also terminate if the teacher fails to 
93.18 	file with the board by April 1 of any year a written statement requesting reinstatement;.
93.19 	(j) The same provisions applicable to terminations of probationary or continuing 
93.20 	contracts in subdivisions 5 and 7 must apply to placement on unrequested leave of 
93.21 	absence;.
93.22 	(k) Nothing in this subdivision shall be construed to impair the rights of teachers 
93.23 	placed on unrequested leave of absence to receive unemployment benefits if otherwise 
93.24 	eligible.

93.25 	EFFECTIVE DATE. This section is effective for the 2014-2015 school year and 
93.26 	later.

93.27 	Sec. 11. Minnesota Statutes 2010, section 122A.41, subdivision 2, is amended to read:
93.28 		Subd. 2.Probationary period; discharge or demotion. (a) All teachers in 
93.29 	the public schools in cities of the first class during the first three years of consecutive 
93.30 	employment shall be deemed to be in a probationary period of employment during which 
93.31 	period any annual contract with any teacher may, or may not, be renewed as the school 
93.32 	board, after consulting with the peer review committee charged with evaluating the 
93.33 	probationary teachers under subdivision 3, shall see fit. The school site management team 
93.34 	or the school board if there is no school site management team, shall issue a three-year 
93.35 	employment contract and adopt a plan for a written evaluation of teachers during the 
94.1 	probationary period according to subdivision 3 that is consistent with section 122A.411. 
94.2 	During the first 90 days only of a probationary teacher's first year of employment, the 
94.3 	board may terminate the teacher at will. Evaluation by the peer review committee charged 
94.4 	with evaluating of probationary teachers under subdivision 3 shall occur at least three 
94.5 	times each year for a teacher performing services on 120 or more school days, at least 
94.6 	two times each year for a teacher performing services on 60 to 119 school days, and 
94.7 	at least one time each year for a teacher performing services on fewer than 60 school 
94.8 	days. Days devoted to parent-teacher conferences, teachers' workshops, and other staff 
94.9 	development opportunities and days on which a teacher is absent from school shall not be 
94.10 	included in determining the number of school days on which a teacher performs services. 
94.11 	The school board may, during such probationary period, discharge or demote a teacher 
94.12 	for any of the causes as specified in this code. A written statement of the cause of such 
94.13 	discharge or demotion shall be given to the teacher by the school board at least 30 days 
94.14 	before such removal or demotion shall become effective, and the teacher so notified shall 
94.15 	have no right of appeal therefrom.
94.16 	(b) A probationary teacher whose first three years of consecutive employment are 
94.17 	interrupted for active military service and who promptly resumes teaching consistent with 
94.18 	federal reemployment timelines for uniformed service personnel under United States 
94.19 	Code, title 38, section 4312(e), is considered to have a consecutive teaching experience 
94.20 	for purposes of paragraph (a).
94.21 	(c) A probationary teacher must complete at least 60 days of teaching service each 
94.22 	year during the probationary period. Days devoted to parent-teacher conferences, teachers' 
94.23 	workshops, and other staff development opportunities and days on which a teacher is 
94.24 	absent from school do not count as days of teaching service under this paragraph.
94.25 	(d) A district must decide whether to issue a contract to a probationary classroom 
94.26 	teacher at the end of the teacher's probationary period based on:
94.27 	(1) a portfolio of the teacher's professional growth plan based on standards of 
94.28 	effective professional practice, student learning goals, and successful teacher evaluations, 
94.29 	consistent with section 122A.411, that are conducted at least twice per year by a trained 
94.30 	school administrator;
94.31 	(2) the teacher's appraisal results and performance effectiveness rating under section 
94.32 	122A.411; and
94.33 	(3) other locally selected criteria aligned to instructional practices in teaching and 
94.34 	learning.

94.35 	EFFECTIVE DATE. This section is effective for the 2014-2015 school year and 
94.36 	later.

95.1 	Sec. 12. Minnesota Statutes 2010, section 122A.41, subdivision 3, is amended to read:
95.2 		Subd. 3.Professional development and mentoring for probationary teachers.
 95.3 	(a) A school board and the exclusive representative of the teachers in the district must 
95.4 	collaborate in establishing a professional development model for probationary teachers, 
95.5 	consistent with subdivision 5, that uses a district's professional development resources and 
95.6 	plans, including those under sections 122A.414, if applicable, 122A.60, and 122A.61, to 
95.7 	improve teaching and learning.
95.8 	(b) A board and an exclusive representative of the teachers in the district must 
95.9 	develop a probationary teacher peer review process through joint agreement. The process 
95.10 	may include having trained observers serve as mentors or coaches or having teachers 
95.11 	participate in professional learning communities.

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

95.14 	Sec. 13. Minnesota Statutes 2010, section 122A.41, subdivision 4, is amended to read:
95.15 		Subd. 4.Period of service after probationary period; discharge or demotion
95.16 	Teacher employment. (a) A school district must use a teacher appraisal framework 
95.17 	to make informed decisions about teacher development and performance. Teachers 
95.18 	must participate in ongoing professional development to improve teaching and learning 
95.19 	throughout a term of employment.
95.20 	(b) After the completion of such completing the initial three-year probationary 
95.21 	period, without discharge, such teachers as are thereupon a teacher who is reemployed 
95.22 	shall continue in service and hold their respectivethat position during good behavior and 
95.23 	efficient and competent service for a renewable five-year term and must not be discharged 
95.24 	or demoted except for cause after a hearing. The terms and conditions of a teacher's 
95.25 	employment contract, including salary and salary increases, must be based either on the 
95.26 	length of the school year or an extended school calendar under section 120A.415. 
95.27 	(b) (c) A probationary teacher is deemed to have been reemployed for the ensuing 
95.28 	school year, unless the school board in charge of such school gave such teacher notice in 
95.29 	writing before July 1 of the termination of such employment.
95.30 	(c) (d) A teacher electing to have an employment contract based on the extended 
95.31 	school calendar under section 120A.415 must participate in staff development training 
95.32 	under subdivision 4a and shall receive an increased base salary. 
95.33 	(e) At the end of every five-year term, the school board must either continue or 
95.34 	terminate a teacher's employment based on:
96.1 	(1) a portfolio of the teacher's five-year professional growth plan based on standards 
96.2 	of professional practice, student learning, and successful teacher evaluations, consistent 
96.3 	with section 122A.411, that are conducted at least twice per year by a trained school 
96.4 	administrator;
96.5 	(2) the teacher's appraisal results and performance effectiveness rating under section 
96.6 	122A.411; and 
96.7 	(3) other locally selected criteria aligned to instructional practices in teaching and 
96.8 	learning.

96.9 	EFFECTIVE DATE. This section is effective for the 2014-2015 school year and 
96.10 	later.

96.11 	Sec. 14. Minnesota Statutes 2010, section 122A.41, subdivision 5, is amended to read:
96.12 		Subd. 5.Professional development and peer coaching for continuing contract 
96.13 	teachers. (a) A school board and the exclusive representative of the teachers in the district 
96.14 	must collaborate in establishing a professional development model for probationary 
96.15 	teachers, consistent with subdivision 3, that uses a district's professional development 
96.16 	resources and plans, including those under sections 122A.414, if applicable, 122A.60, and 
96.17 	122A.61, to improve teaching and learning.
96.18 	(b) A school board and an exclusive representative of the teachers in the district must 
96.19 	develop a peer review process for nonprobationary teachers through joint agreement. The 
96.20 	process may include having trained observers serve as peer coaches or having teachers 
96.21 	participate in professional learning communities.

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

96.24 	Sec. 15. Minnesota Statutes 2010, section 122A.41, subdivision 6, is amended to read:
96.25 		Subd. 6.Grounds for discharge or demotion. (a) Except as otherwise provided 
96.26 	in paragraph (b), causes for the discharge or demotion of a teacher either during or after 
96.27 	the probationary period must be:
96.28 	(1) immoral character, conduct unbecoming a teacher, or insubordination;
96.29 	(2) failure without justifiable cause to teach without first securing the written release 
96.30 	of the school board having the care, management, or control of the school in which the 
96.31 	teacher is employed;
96.32 	(3) inefficiency in teaching or in the management of a school;
97.1 	(4) affliction with active tuberculosis or other communicable disease must be 
97.2 	considered as cause for removal or suspension while the teacher is suffering from such 
97.3 	disability; or
97.4 	(5) discontinuance of position or lack of pupils.; or
97.5 	(6) the teacher is ineffective under section 122A.411 and not recommended by the 
97.6 	district for employment under this section.
97.7 	For purposes of this paragraph, the provision in clause (6) does not interfere with the 
97.8 	effect of clause (3) and conduct unbecoming a teacher includes an unfair discriminatory 
97.9 	practice described in section 363A.13. A teacher must not be discharged under clause (6) 
97.10 	unless the teacher fails to correct the deficiency after being given written notice of the 
97.11 	specific items of complaint and 180 days within which to remedy them.
97.12 	(b) A probationary or continuing-contract teacher must be discharged immediately 
97.13 	upon receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the 
97.14 	teacher's license has been revoked due to a conviction for child abuse or sexual abuse. 

97.15 	EFFECTIVE DATE. This section is effective for the 2014-2015 school year and 
97.16 	later.

97.17 	Sec. 16. Minnesota Statutes 2010, section 122A.41, subdivision 14, is amended to read:
97.18 		Subd. 14.Services terminated by discontinuance or lack of pupils; preference 
97.19 	given. (a) A teacher whose services are terminated on account of discontinuance of 
97.20 	position or lack of pupils must receive first consideration for other positions in the district 
97.21 	for which that teacher is qualified. In the event it becomes necessary to discontinue one 
97.22 	or more positions, in making such discontinuance, teachers must be discontinued in any 
97.23 	department in the following order:
97.24 	(1) teachers with a "needs improvement" or "ineffective" rating under section 
97.25 	122A.411 in the inverse order in which they were employed, unless a board and the 
97.26 	exclusive representative of teachers in the district negotiate a plan providing otherwise.;
97.27 	(2) teachers with an "average" rating under section 122A.411 with four or more 
97.28 	years of teaching experience in the inverse order in which they were employed by the 
97.29 	school district;
97.30 	(3) teachers with an "effective" rating under section 122A.411 with fewer than 
97.31 	four years of teaching experience in the inverse order in which they were employed by 
97.32 	the school district;
97.33 	(4) teachers with a "highly effective" rating under section 122A.411 in the inverse 
97.34 	order in which they were employed by the school district;
98.1 	(5) teachers with a "distinguished" rating under section 122A.411 in the inverse 
98.2 	order in which they were employed by the school district; and
98.3 	(6) teachers with an "exemplary" rating under section 122A.411 in the inverse order 
98.4 	in which they were employed by the school district.
98.5 	The superintendent may exempt from the effects of this subdivision those teachers 
98.6 	who, in the superintendent's judgment, are able to provide instruction that similarly 
98.7 	licensed teachers cannot provide or whose subject area license meets unmet district needs 
98.8 	for student instruction.
98.9 	(b) Notwithstanding the provisions of clause (a), a teacher is not entitled to exercise 
98.10 	any seniority when that exercise results in that teacher being retained by the district in 
98.11 	a field for which the teacher holds only a provisional license, as defined by the Board 
98.12 	of Teaching, unless that exercise of seniority results in the termination of services, on 
98.13 	account of discontinuance of position or lack of pupils, of another teacher who also 
98.14 	holds a provisional license in the same field. The provisions of this clause do not apply 
98.15 	to vocational education licenses.
98.16 	(c) Notwithstanding the provisions of clause (a), a teacher must not be reinstated 
98.17 	to a position in a field in which the teacher holds only a provisional license, other than a 
98.18 	vocational education license, while another teacher who holds a nonprovisional license in 
98.19 	the same field is available for reinstatement.

98.20 	EFFECTIVE DATE. This section is effective for the 2014-2015 school year and 
98.21 	later.

98.22 	Sec. 17. [122A.411] TEACHER EVALUATIONS. 
98.23 		Subdivision 1.Evaluation structure. A teacher evaluation structure is established 
98.24 	to provide information about teacher effectiveness for teachers under section 122A.06, 
98.25 	subdivision 2, school districts, and charter schools to use in developing and improving 
98.26 	teacher performance and student learning. The three-part structure contains: 
98.27 	(1) a teacher appraisal framework that identifies performance measures for 
98.28 	determining teacher effectiveness; 
98.29 	(2) a mechanism for translating the performance data into a five-part teacher 
98.30 	effectiveness rating scale; and 
98.31 	(3) a four-tier status designation that identifies teachers as standard, advanced, 
98.32 	distinguished, or exemplary based on a teacher's effectiveness rating over time.
98.33 		Subd. 2.Teacher appraisal framework. (a) Each school district and charter 
98.34 	school must create and implement a teacher appraisal framework. The framework must 
98.35 	translate performance measures and scores under this subdivision into five performance 
99.1 	effectiveness rating scores where "5" is the highest rating and "1" is the lowest rating. The 
99.2 	department, in collaboration with the Board of Teaching, must make available to districts 
99.3 	and charter schools appraisal frameworks and other materials from evidence-based 
99.4 	sources to assist districts and charter schools in implementing an appraisal framework, 
99.5 	consistent with this section. 
99.6 	(b) If statewide assessment results are available under section 120B.35, these results 
99.7 	are the basis for 50 percent of a teacher's total appraisal.
99.8 	(c) If statewide assessment results are unavailable, 40 percent of a teacher's total 
99.9 	appraisal must consist of results from districtwide assessments of state and local standards 
99.10 	and another ten percent of the teacher's total appraisal must consist of results from 
99.11 	teacher-developed assessments.
99.12 	(d) If no districtwide assessment results are available, 50 percent of a teacher's total 
99.13 	appraisal must consist of teacher-developed and administrator-approved assessments of 
99.14 	state and local standards. A school administrator shall meet with teachers at least annually 
99.15 	under this paragraph to review, modify if needed, and approve local course and grade-level 
99.16 	expectations for student achievement and growth.
99.17 	(e) A charter school board of directors or a school board, in consultation with 
99.18 	its teachers, must identify the performance measures used as a basis for the other 50 
99.19 	percent of a teacher's total appraisal under this subdivision. The appraisal must include 
99.20 	data from parent surveys and at least two annual evaluations performed by a trained 
99.21 	school administrator. Other performance measures may include student surveys, peer 
99.22 	observations and review, teacher performance portfolios, video classroom observations 
99.23 	with teacher reflection after viewing videos, measures that are part of an approved 
99.24 	educational improvement plan under section 122A.413, and other highly reliable 
99.25 	research-based measures. 
99.26 		Subd. 3.Teacher performance effectiveness ratings. (a) Beginning in the 
99.27 	2012-2013 school year and consistent with subdivision 2, a school district or charter 
99.28 	school annually must use the following scale to determine a teacher performance 
99.29 	effectiveness rating and corresponding status designation under subdivision 4 for each 
99.30 	teacher who teaches a subject for which statewide assessment results are available under 
99.31 	section 120B.35:
99.32 	(1) a teacher is "highly effective" if the teacher's appraisal shows that the teacher's 
99.33 	students, on average, achieved 1-1/2 or more years of growth on statewide assessments 
99.34 	and the teacher received a "5" performance rating under the district or charter school 
99.35 	appraisal framework;
100.1 	(2) a teacher is "effective" if the teacher's appraisal shows that the teacher's students, 
100.2 	on average, achieved at least one year of growth on statewide assessments and the teacher 
100.3 	received a "4" performance rating under the district or charter school appraisal framework;
100.4 	(3) a teacher is "average" if the teacher's appraisal shows that the teacher's students, 
100.5 	on average, achieved at least 0.9 years of growth on statewide student assessments and the 
100.6 	teacher received a "3" performance rating under the district or charter school appraisal 
100.7 	framework;
100.8 	(4) a teacher "needs improvement" if the teacher's appraisal shows that the teacher's 
100.9 	students, on average, achieved between 0.5 and 0.9 years of growth on statewide 
100.10 	assessments or the teacher received a "2" or lower performance rating under the district or 
100.11 	charter school appraisal framework; and
100.12 	(5) a teacher is "ineffective" if the teacher's appraisal shows that the teacher's 
100.13 	students, on average, achieved less than one-half year of growth on statewide assessments 
100.14 	and the teacher received a "1" performance rating under the district or charter school 
100.15 	appraisal framework.
100.16 	A teacher who does not meet both the growth and performance rating requirements 
100.17 	in clauses (1) to (4) receives the next lower effectiveness rating that immediately follows 
100.18 	the clause where the teacher met either the growth or the performance rating requirement.
100.19 	(b) Beginning in the 2012-2013 school year and consistent with subdivision 2, a 
100.20 	school district or charter school annually must use the following teacher performance 
100.21 	effectiveness rating scale and corresponding status designation under subdivision 4 for 
100.22 	each teacher who teaches a subject for which no statewide assessment data exist:
100.23 	(1) a teacher is "highly effective" if the teacher receives a "5" performance rating 
100.24 	under the district or charter school appraisal framework;
100.25 	(2) a teacher is "effective" if the teacher receives a "4" performance rating under the 
100.26 	district or charter school appraisal framework;
100.27 	(3) a teacher is "average" if the teacher receives a "3" performance rating under the 
100.28 	district or charter school appraisal framework;
100.29 	(4) a teacher "needs improvement" if the teacher receives a "2" performance rating 
100.30 	under the district or charter school appraisal framework; and
100.31 	(5) a teacher is "ineffective" if the teacher receives a "1" performance rating under 
100.32 	the district or charter school appraisal framework.
100.33 		Subd. 4.Teacher status designations. (a) Beginning no later than the 2012-2013 
100.34 	school year, a school district or charter school shall establish a four-tier status designation 
100.35 	for identifying teacher effectiveness, consistent with this section, using measures of 
101.1 	teacher performance and student learning as they relate to meeting state and local 
101.2 	education standards.
101.3 	(b) To receive a "standard" designation, a probationary teacher during the three-year 
101.4 	probationary period must receive at least one rating of "average," "effective," or "highly 
101.5 	effective" under the district or charter school appraisal framework and meet applicable 
101.6 	professional development requirements.
101.7 	(c) A licensed teacher who has a "standard" designation must receive a rating 
101.8 	of "average," "effective," or "highly effective" in four years out of each five-year 
101.9 	employment period and meet applicable professional development requirements to receive 
101.10 	an "advanced" status designation.
101.11 	(d) A teacher who receives a "highly effective" rating in three years out of a five-year 
101.12 	employment period and meets applicable professional development requirements receives 
101.13 	a "distinguished" status designation.
101.14 	(e) A teacher who receives a "highly effective" rating in seven years during two 
101.15 	consecutive five-year employment periods and meets applicable professional development 
101.16 	requirements receives an "exemplary" status designation.
101.17 	(f) A teacher who receives a "distinguished" or "exemplary" status designation 
101.18 	keeps that designation for the remainder of the five-year employment period in which the 
101.19 	teacher received the designation.
101.20 	(g) A teacher who does not meet the requirements of a particular status designation 
101.21 	under paragraph (c), (d), or (e) receives the next lower status designation under this 
101.22 	subdivision. A teacher who does not meet the requirements of a standard designation 
101.23 	under paragraph (b) has no status designation.
101.24 		Subd. 5.Data gathering and analysis. Beginning in the 2012-2013 school 
101.25 	year, the department, in consultation with the Board of Teaching, shall assist a school 
101.26 	district or charter school in collecting and aggregating student data needed to implement 
101.27 	subdivisions 2, 3, and 4. If the school district or charter school and the department agree 
101.28 	that an ongoing need exists for department assistance, the district or charter school and the 
101.29 	department shall enter into a data-sharing agreement. Any data on individual students or 
101.30 	teachers received, collected, or created that are used to generate summary data under this 
101.31 	section are nonpublic data under chapter 13.
101.32 		Subd. 6.Reports. (a) Beginning in the 2012-2013 school year, each school district 
101.33 	and charter school annually shall report to the department by August 31 the following 
101.34 	information about the school year just completed:
101.35 	(1) each teacher's performance effectiveness rating determined under subdivision 2, 
101.36 	paragraph (b), (c), or (d);
102.1 	(2) each teacher's performance effectiveness rating determined under subdivision 2, 
102.2 	paragraph (e);
102.3 	(3) each teacher's status designation under subdivision 4;
102.4 	(4) each teacher's professional preparation program;
102.5 	(5) its appraisal framework; and
102.6 	(6) its graduation rate.
102.7 	(b) Beginning in 2014, the department annually by February 15 shall submit a 
102.8 	report to the committees of the legislature with primary jurisdiction over kindergarten 
102.9 	through grade 12 education policy and finance that analyzes and evaluates summary data 
102.10 	generated under paragraph (a) to determine the effectiveness of teacher appraisal systems 
102.11 	in improving teaching and learning.
102.12 	(c) Beginning in 2014, the department annually by June 30 shall submit summary 
102.13 	data on teacher effectiveness under paragraph (a) to the Board of Teaching and the 
102.14 	Minnesota teacher preparation program or institution that prepared the teachers covered in 
102.15 	that year's district and charter school reports to the department.

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

102.17 	Sec. 18. Minnesota Statutes 2010, section 122A.416, is amended to read:
102.18 	122A.416 ALTERNATIVE TEACHER COMPENSATION REVENUE 
102.19 	FOR PERPICH CENTER FOR ARTS EDUCATION AND MULTIDISTRICT 
102.20 	INTEGRATION COLLABORATIVES.
102.21 	Notwithstanding sections 122A.413, 122A.414, 122A.415, and 126C.10, 
102.22 	multidistrict integration collaboratives and the Perpich Center for Arts Education are 
102.23 	eligible to receive alternative teacher compensation revenue as if they were intermediate 
102.24 	school districts. To qualify for alternative teacher compensation revenue, a multidistrict 
102.25 	integration collaborative or the Perpich Center for Arts Education must meet all of the 
102.26 	requirements of sections 122A.413, 122A.414, and 122A.415 that apply to intermediate 
102.27 	school districts, must report its enrollment as of October 1 of each year to the department, 
102.28 	and must annually report its expenditures for the alternative teacher professional pay 
102.29 	system consistent with the uniform financial accounting and reporting standards to the 
102.30 	department by November 30 of each year.

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

102.32 	Sec. 19. [122A.418] TEACHER EFFECTIVENESS-BASED BONUSES.
103.1 	(a) A teacher with a "distinguished" rating under section 122A.411 shall receive 
103.2 	an annual bonus equal to ten percent of the teacher's base salary as long as the teacher 
103.3 	maintains a "distinguished" rating.
103.4 	(b) A teacher with an "exemplary" rating under section 122A.411 shall receive 
103.5 	an annual bonus equal to 20 percent of the teacher's base salary as long as the teacher 
103.6 	maintains an "exemplary" rating.

103.7 	EFFECTIVE DATE. This section is effective July 1, 2019.

103.8 	Sec. 20. Minnesota Statutes 2010, section 122A.60, is amended to read:
103.9 	122A.60 STAFF DEVELOPMENT PROGRAM.
103.10 		Subdivision 1.Staff development committee. A school board must use the revenue 
103.11 	authorized in section 122A.61 for in-service education for programs under section 
103.12 	120B.22, subdivision 2, or for staff development and teacher training plans under this 
103.13 	section. The board must establish an advisory staff development committee to develop the 
103.14 	plan, assist site professional development teams in developing a site plan consistent with 
103.15 	the goals of the plan, and evaluate staff development efforts at the site level. A majority 
103.16 	of the advisory committee and the site professional development team must be teachers 
103.17 	representing various grade levels, subject areas, and special education. The advisory 
103.18 	committee must also include nonteaching staff, parents, and administrators.
103.19 		Subd. 1a.Effective staff development activities. (a) Staff development activities 
103.20 	must be aligned with district and school site staff development plans, based on student 
103.21 	achievement and growth data, and focused on student learning goals. Activities must:
103.22 	(1) focus on the school classroom and research-based scientifically based research
103.23 	strategies that improve student learning;
103.24 	(2) provide opportunities for teachers to practice and improve their instructional 
103.25 	skills over time and receive instructional-based observations using objective 
103.26 	standards-based assessments to assist in the professional growth process;
103.27 	(3) provide regular opportunities for teachers to use student data as part of their 
103.28 	daily work to increase student achievement;
103.29 	(4) enhance teacher content knowledge and instructional skills;
103.30 	(5) align with state and local academic standards;
103.31 	(6) provide job-embedded or integrated professional development opportunities 
103.32 	during the teacher contract day to build professional relationships, foster collaboration 
103.33 	among principals and staff who provide instruction to identify instructional strategies 
103.34 	to meet student learning goals, plan instruction, practice new teaching strategies, and 
104.1 	review the results of implementing those strategies, and provide opportunities for 
104.2 	teacher-to-teacher coaching and mentoring; and
104.3 	(7) align with the plan of the district or site for those participating in an alternative 
104.4 	teacher professional pay system under section 122A.414.
104.5 	Staff development activities also may include curriculum development and 
104.6 	curriculum training programs, and activities that provide teachers and other members of 
104.7 	site-based teams training to enhance team performance. The school district also may 
104.8 	implement other staff development activities required by law and activities associated with 
104.9 	professional teacher compensation models.
104.10 	(b) Release time provided for teachers to supervise students on field trips and school 
104.11 	activities, or independent tasks not associated with enhancing the teacher's knowledge 
104.12 	and instructional skills, such as preparing report cards, calculating grades, or organizing 
104.13 	classroom materials, may not be counted as staff development time that is financed with 
104.14 	staff development reserved revenue under section 122A.61.
104.15 		Subd. 2.Contents of plan. The plan must be based on student achievement 
104.16 	and growth and include student learning goals, the staff development outcomes under 
104.17 	subdivision 3, the means to achieve the outcomes, and procedures for evaluating progress 
104.18 	at each school site toward meeting education outcomes, consistent with relicensure 
104.19 	requirements under section 122A.18, subdivision 4. The plan also must:
104.20 	(1) support stable and productive professional communities achieved through 
104.21 	ongoing and schoolwide progress and growth in teaching practice;
104.22 	(2) emphasize coaching, professional learning communities, classroom action 
104.23 	research, and other job-embedded models;
104.24 	(3) maintain a strong subject matter focus premised on students' learning goals;
104.25 	(4) ensure specialized preparation and learning about issues related to teaching 
104.26 	students with special needs and limited English proficiency; and
104.27 	(5) reinforce national and state standards of effective teaching practice.
104.28 		Subd. 3.Staff development outcomes. The advisory staff development committee 
104.29 	must adopt a staff development plan for increasing teacher effectiveness and student 
104.30 	learning and for improving student achievement. The plan must be consistent with 
104.31 	education outcomes that the school board determines. The plan must include ongoing staff 
104.32 	development activities that contribute toward continuous improvement in achievement of 
104.33 	the following goals:
104.34 	(1) improve student achievement of state and local education academic standards in 
104.35 	all areas of the curriculum by using best practices methods and benchmark assessments 
104.36 	aligned with academic standards;
105.1 	(2) effectively meet the needs of a diverse student population, including at-risk 
105.2 	children, children with disabilities, and gifted children, within the regular classroom 
105.3 	and other settings;
105.4 	(3) provide an inclusive curriculum for a racially, ethnically, and culturally diverse 
105.5 	student population that is consistent with the state education diversity rule and the district's 
105.6 	education diversity plan;
105.7 	(4) improve staff collaboration and develop mentoring and peer coaching programs 
105.8 	for teachers new to the school or district in their first five years of teaching;
105.9 	(5) effectively teach and model violence prevention policy and curriculum that 
105.10 	address early intervention alternatives, issues of harassment, and teach nonviolent 
105.11 	alternatives for conflict resolution; and
105.12 	(6) provide teachers and other members of site-based management teams with 
105.13 	appropriate management and financial management skills.
105.14 		Subd. 4.Staff development report. (a) By October 15 1 of each year, the district 
105.15 	and site staff development committees shall write and submit a report of staff development 
105.16 	activities and expenditures for the previous year, in the form and manner determined by 
105.17 	the commissioner. The report, signed by the district superintendent and staff development 
105.18 	chair, must include assessment and evaluation data indicating progress toward district and 
105.19 	site staff development goals based on teaching and learning outcomes, including the 
105.20 	percentage of teachers and other staff involved in instruction who participate in effective 
105.21 	staff development activities under subdivision 3.
105.22 	(b) The report must break down expenditures for:
105.23 	(1) curriculum development and curriculum training programs; and
105.24 	(2) staff development training models, workshops, and conferences, and the cost of 
105.25 	releasing teachers or providing substitute teachers for staff development purposes.
105.26 	The report also must indicate whether the expenditures were incurred at the district 
105.27 	level or the school site level, and whether the school site expenditures were made possible 
105.28 	by grants to school sites that demonstrate exemplary use of allocated staff development 
105.29 	revenue. These expenditures must be reported using the uniform financial and accounting 
105.30 	and reporting standards.
105.31 	(c) The commissioner shall report the staff development progress and expenditure 
105.32 	data to the house of representatives and senate committees having jurisdiction over 
105.33 	education by February 15 each year.

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

106.1 	Sec. 21. Minnesota Statutes 2010, section 122A.61, subdivision 1, is amended to read:
106.2 		Subdivision 1.Staff development revenue. A district is required to reserve 
106.3 	an amount equal to at least two percent of the basic revenue under section 126C.10, 
106.4 	subdivision 2, for in-service education for programs under section 120B.22, subdivision 2, 
106.5 	for with the primary purpose of creating and implementing district and school site staff 
106.6 	development plans, including. Funds also may be used to support plans for challenging 
106.7 	instructional activities and experiences under section 122A.60, and for curriculum 
106.8 	development and programs, other in-service education, teachers' workshops, teacher 
106.9 	conferences, the cost of substitute teachers staff development purposes, preservice and 
106.10 	in-service education for special education professionals and paraprofessionals, and other 
106.11 	related costs for staff development efforts. A district may annually waive the requirement 
106.12 	to reserve their basic revenue under this section if a majority vote of the licensed teachers 
106.13 	in the district and a majority vote of the school board agree to a resolution to waive the 
106.14 	requirement. A district in statutory operating debt is exempt from reserving basic revenue 
106.15 	according to this section. Districts may expend an additional amount of unreserved 
106.16 	revenue for staff development based on their needs. With the exception of amounts 
106.17 	reserved for staff development from revenues allocated directly to school sites, the board 
106.18 	must initially allocate 50 percent of the reserved revenue to each school site in the district 
106.19 	on a per teacher basis, which must be retained by the school site until used. The board may 
106.20 	retain 25 percent to be used for district wide staff development efforts. The remaining 
106.21 	25 percent of the revenue must be used to make grants to school sites for best practices 
106.22 	methods. A grant may be used for any purpose authorized under section 120B.22, 
106.23 	subdivision 2, 122A.60, or for the costs of curriculum development and programs, other 
106.24 	in-service education, teachers' workshops, teacher conferences, substitute teachers for 
106.25 	staff development purposes, and other staff development efforts, and determined by 
106.26 	the site professional development team. The site professional development team must 
106.27 	demonstrate to the school board the extent to which staff at the site have met the outcomes 
106.28 	of the program. The board may withhold a portion of initial allocation of revenue if the 
106.29 	staff development outcomes are not being met.

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

106.32 	Sec. 22. [122A.73] SCHOOL ADMINISTRATOR DEVELOPMENT.
106.33 	A school board and the school administrators in a district must collaboratively 
106.34 	establish a professional development model for school administrators that uses the 
106.35 	district's professional development resources and plans, including those under sections 
107.1 	122A.414, if applicable, 122A.60, and 122A.61. The model must be designed to improve 
107.2 	teaching and learning by supporting administrators in shaping the school's professional 
107.3 	environment and developing teacher quality, performance, and effectiveness. The model 
107.4 	must, at a minimum:
107.5 	(1) support and improve administrators' instructional leadership and organizational, 
107.6 	management, and professional development; and strengthen their capacity in instruction 
107.7 	and supervision and in teacher evaluation and development under section 122A.411;
107.8 	(2) provide professional development that emphasizes improved teaching and 
107.9 	learning, curriculum and instruction, student learning, and a collaborative professional 
107.10 	culture;
107.11 	(3) make appropriate recommendations for administrators to participate in 
107.12 	development opportunities, including the Principals' Leadership Institute under section 
107.13 	122A.74 and other statewide development programs that support administrators' 
107.14 	leadership behaviors and practices, rigorous curriculum, school performance, and high 
107.15 	quality instruction; and
107.16 	(4) use formative and summative assessments, on-the-job evaluations, surveys, and 
107.17 	longitudinal data on student academic growth as evaluation components; and provide 
107.18 	professional development opportunities targeted at identifying systemic strengths and 
107.19 	weaknesses and administrators' strengths and weaknesses in exercising leadership in 
107.20 	pursuit of school success.
107.21 	The provisions of this section are intended to provide districts with sufficient 
107.22 	flexibility to accommodate district needs and goals, consistent with section 122A.411.

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

107.24 	Sec. 23. Minnesota Statutes 2010, section 123B.09, subdivision 8, is amended to read:
107.25 		Subd. 8.Duties. The board must superintend and manage the schools of the 
107.26 	district; adopt rules for their organization, government, and instruction; keep registers; 
107.27 	and prescribe textbooks and courses of study. The board may enter into an agreement 
107.28 	with a postsecondary institution for secondary or postsecondary nonsectarian courses 
107.29 	to be taught at a secondary school, nonsectarian postsecondary institution, or another 
107.30 	location. Consistent with section 122A.40, subdivision 10, or 122A.41, subdivision 14, as 
107.31 	applicable, the board must not enter into an agreement that limits a district superintendent's 
107.32 	ability to assign and reassign a teacher or administrator to a school to best meet student 
107.33 	and school needs as determined by the superintendent.

107.34 	Sec. 24. Minnesota Statutes 2010, section 123B.143, subdivision 1, is amended to read:
108.1 		Subdivision 1.Contract; duties. All districts maintaining a classified secondary 
108.2 	school must employ a superintendent who shall be an ex officio nonvoting member of the 
108.3 	school board. The authority for selection and employment of a superintendent must be 
108.4 	vested in the board in all cases. An individual employed by a board as a superintendent 
108.5 	shall have an initial employment contract for a period of time no longer than three years 
108.6 	from the date of employment. Any subsequent employment contract must not exceed a 
108.7 	period of three years. A board, at its discretion, may or may not renew an employment 
108.8 	contract. A board must not, by action or inaction, extend the duration of an existing 
108.9 	employment contract. Beginning 365 days prior to the expiration date of an existing 
108.10 	employment contract, a board may negotiate and enter into a subsequent employment 
108.11 	contract to take effect upon the expiration of the existing contract. A subsequent contract 
108.12 	must be contingent upon the employee completing the terms of an existing contract. If a 
108.13 	contract between a board and a superintendent is terminated prior to the date specified in 
108.14 	the contract, the board may not enter into another superintendent contract with that same 
108.15 	individual that has a term that extends beyond the date specified in the terminated contract. 
108.16 	A board may terminate a superintendent during the term of an employment contract for any 
108.17 	of the grounds specified in section 122A.40, subdivision 9 or 13. A superintendent shall 
108.18 	not rely upon an employment contract with a board to assert any other continuing contract 
108.19 	rights in the position of superintendent under section 122A.40. Notwithstanding the 
108.20 	provisions of sections 122A.40, subdivision 10 or 11, 123A.32, 123A.75, or any other law 
108.21 	to the contrary, no individual shall have a right to employment as a superintendent based 
108.22 	on order of employment in any district. If two or more districts enter into an agreement for 
108.23 	the purchase or sharing of the services of a superintendent, the contracting districts have 
108.24 	the absolute right to select one of the individuals employed to serve as superintendent 
108.25 	in one of the contracting districts and no individual has a right to employment as the 
108.26 	superintendent to provide all or part of the services based on order of employment in a 
108.27 	contracting district. The superintendent of a district shall perform the following:
108.28 	(1) visit and supervise the schools in the district, report and make recommendations 
108.29 	about their condition when advisable or on request by the board;
108.30 	(2) recommend to the board employment and dismissal of teachers;
108.31 	(3) before the start of the school year, and at other times as needed, assign highly 
108.32 	effective, distinguished, and exemplary teachers, as defined in section 122A.411, to 
108.33 	schools to best meet student and school needs as determined by the superintendent;
108.34 	(4) superintend school grading practices and examinations for promotions;
108.35 	(4) (5) make reports required by the commissioner; and
108.36 	(5) (6) perform other duties prescribed by the board.

109.1 	Sec. 25. [124D.101] PERPICH CENTER FOR ARTS EDUCATION.
109.2 		Subdivision 1.Charter school established. The Perpich Center for Arts Education 
109.3 	may organize as a charter school consistent with section 124D.10.
109.4 		Subd. 2.Sponsor. (a) Consistent with section 124D.10, subdivision 3, in order to 
109.5 	organize as a charter school, the Perpich Center for Arts Education must attempt to find 
109.6 	at least one qualified charter school authorizer that will authorize and serve as a charter 
109.7 	school authorizer for the Perpich Center for Arts Education charter school.
109.8 	(b) If a qualified authorizer cannot be found, the Department of Education shall 
109.9 	authorize the Perpich Center for Arts Education charter school. If a qualified authorizer 
109.10 	is later found, the Department of Education may transfer authorization to the qualified 
109.11 	authorizer under section 124D.10.
109.12 		Subd. 3.State aid. The Perpich Center for Arts Education charter school is eligible 
109.13 	for state charter school aid, including aid for start-up and operating costs, as provided 
109.14 	in section 124D.11.

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

109.16 	Sec. 26. DISSOLUTION OF PERPICH CENTER FOR ARTS EDUCATION.
 109.17 	(a) The Perpich Center for Arts Education is dissolved as a state agency.
109.18 	(b) Official state records held at the Perpich Center for Arts Education shall be 
109.19 	transferred to the Department of Education.
109.20 	(c) Oversight of the facility occupied by the Perpich Center for Arts Education 
109.21 	shall be transferred to the Department of Administration. If the Perpich Center for Arts 
109.22 	Education organizes as a charter school under Minnesota Statutes, section 124D.10, the 
109.23 	charter school shall have the right of first refusal to lease the building from the state.

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

109.25 	Sec. 27. APPRAISAL IMPLEMENTATION TIMELINE.
 109.26 	Consistent with Minnesota Statutes, section 122A.411, districts and charter schools 
109.27 	shall implement the teacher appraisal framework according to the following timeline:
109.28 	(1) in the 2011-2012 school year, develop an appraisal framework and a system 
109.29 	to collect data;
109.30 	(2) in the 2012-2013 school year, implement the teacher appraisal framework and 
109.31 	data collection system as a pilot program; and
109.32 	(3) beginning in the 2013-2014 school year, fully implement the teacher appraisal 
109.33 	framework and data collection system.

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

110.2 	Sec. 28. EFFECT OF TEACHER DIVERSITY ON STUDENT ACHIEVEMENT.
 110.3 	(a) The commissioner of education shall report on the impact that a culturally, 
110.4 	racially, and ethnically diverse teaching faculty has on the educational outcomes of 
110.5 	minority students, including academic performance, graduation rates, and participation in 
110.6 	postsecondary programs. The study must control for the level of teacher effectiveness.
110.7 	(b) The commissioner of education also shall evaluate and report on school district 
110.8 	practices for recruiting a culturally, racially, and ethnically diverse teaching faculty.
110.9 	(c) The commissioner must submit the reports under paragraphs (a) and (b) to the 
110.10 	education policy and finance committees of the legislature by February 1, 2015.

110.11 	EFFECTIVE DATE. This section is effective July 1, 2013. The study in paragraph 
110.12 	(a) may not begin until after the 2013-2014 school year.

110.13 	Sec. 29. ADVISORY TASK FORCE ON IMPLEMENTING TEACHER 
110.14 	EVALUATION STRUCTURE.
 110.15 	Consistent with Minnesota Statutes, section 122A.411, and related sections, the 
110.16 	commissioner of education shall convene an 11-member advisory task force to make 
110.17 	recommendations related to implementing the state's teacher evaluation structure. Task 
110.18 	force members shall include: one representative each from the Minnesota Chamber of 
110.19 	Commerce, the Minnesota Business Partnership, the Minnesota Assessment Group, 
110.20 	the Minnesota Association of School Administrators, the Minnesota Elementary and 
110.21 	Secondary School Principals Association, the Minnesota School Boards Association, and 
110.22 	the Minnesota Association of Charter Schools appointed by the respective organization; 
110.23 	two representatives from Education Minnesota, one of whom must be a currently 
110.24 	licensed classroom teacher teaching in a first class city school district, appointed by 
110.25 	Education Minnesota; and two parents of students currently enrolled in Minnesota public 
110.26 	schools, one of whom must be a parent of color, appointed by the Minnesota Parent 
110.27 	Teacher Organization. The commissioner or the commissioner's designee shall serve as 
110.28 	a nonvoting member of the task force and shall provide technical assistance to the task 
110.29 	force upon request. The task force must review the statutory sections that compose this act 
110.30 	and recommend to the commissioner any changes needed to fully implement the teacher 
110.31 	evaluation structure, including statutory changes to accomplish the recommendations. The 
110.32 	commissioner must report the task force recommendations to the education policy and 
110.33 	finance committees of the legislature by February 15, 2012. The advisory task force 
110.34 	expires June 1, 2012.

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

111.2 	Sec. 30. APPROPRIATIONS; DEPARTMENT OF EDUCATION.
 111.3 		Subdivision 1.Department of Education. Unless otherwise indicated, the sums 
111.4 	indicated in this section are appropriated from the general fund to the Department of 
111.5 	Education for the fiscal years designated.
111.6 		Subd. 2.Department. (a) For the Department of Education:

111.7		$
	 13,485,000
	.....
	2012
	
111.8		$
	 13,485,000
	.....
	2013
	
111.9 	Any balance in the first year does not cancel but is available in the second year.
111.10 	(b) $260,000 each year is for the Minnesota Children's Museum.
111.11 	(c) $41,000 each year is for the Minnesota Academy of Science.
111.12 	(d) $618,000 each year is for the Board of Teaching. Any balance in the first year 
111.13 	does not cancel but is available in the second year.
111.14 	(e) $167,000 each year is for the Board of School Administrators. Any balance in 
111.15 	the first year does not cancel but is available in the second year.
111.16 	(f) The expenditures of federal grants and aids as shown in the biennial budget 
111.17 	document and its supplements are approved and appropriated and shall be spent as 
111.18 	indicated.
111.19 	(g) $38,000 each year is for an early hearing loss intervention coordinator under 
111.20 	Minnesota Statutes, section 125A.63, subdivision 5. If the department expends federal 
111.21 	funds to employ a hearing loss coordinator under Minnesota Statutes, section 125A.63, 
111.22 	subdivision 5, then the appropriation under this paragraph is reallocated for purposes of 
111.23 	employing a world languages coordinator.
111.24 	(h) $50,000 each year is for the Duluth Children's Museum.
111.25 		Subd. 3.Board of Teaching. From the education licensure portfolio account in the 
111.26 	special revenue fund to the Board of Teaching for licensure by portfolio:

111.27		$
	30,000
	.....
	2012
	
111.28		$
	30,000
	.....
	2013

111.29 	Sec. 31. APPROPRIATIONS; MINNESOTA STATE ACADEMIES.
 111.30 	The sums indicated in this section are appropriated from the general fund to the 
111.31 	Minnesota State Academies for the Deaf and the Blind for the fiscal years designated:

111.32		$
	11,603,000
	.....
	2012
	
111.33		$
	11,603,000
	.....
	2013
	
112.1 	Any balance in the first year does not cancel but is available in the second year.

112.2 	Sec. 32. APPROPRIATIONS; PERPICH CENTER FOR ARTS EDUCATION.
 112.3 	The sums in this section are appropriated from the general fund to the Perpich 
112.4 	Center for Arts Education for the fiscal years designated:

112.5		$
	7,087,000
	.....
	2012
	
112.6		$
	2,721,000
	.....
	2013
	
112.7 	After the conclusion of the 2011-2012 school year, the fiscal year 2013 appropriation 
112.8 	is available for immediate transfer to the Department of Administration or the Department 
112.9 	of Management and Budget in order to administer severance payments and oversee 
112.10 	the closing of the Perpich Center for Arts Education as a state agency. The fiscal year 
112.11 	2013 appropriation includes $2,275,000 for severance payments, $336,000 for facility 
112.12 	maintenance, and $110,000 for the sale of the property, which is available until expended.

112.13 	Sec. 33.  REPEALER.
 112.14 	Minnesota Statutes 2010, sections 129C.10, subdivisions 1, 2, 3, 3a, 4, 6, 7, and 8; 
112.15 	129C.105; 129C.15; 129C.20; 129C.25; and 129C.26, are repealed July 1, 2012.

112.16 	ARTICLE 11
112.17 	FORECAST ADJUSTMENT
112.18 	A. GENERAL EDUCATION

112.19 	Section 1. Laws 2009, chapter 96, article 1, section 24, subdivision 2, as amended by 
112.20 	Laws 2010, First Special Session chapter 1, article 3, section 10, is amended to read:
112.21 		Subd. 2.General education aid. For general education aid under Minnesota 
112.22 	Statutes, section 126C.13, subdivision 4:

112.23		$
	4,291,422,000
	.....
	2010
	
112.24
112.25		$
	4,776,884,000
4,832,264,000
	.....
	2011
	
112.26 	The 2010 appropriation includes $553,591,000 for 2009 and $3,737,831,000 for 
112.27 	2010.
112.28 	The 2011 appropriation includes $1,363,306,000 for 2010 and $3,413,578,000
112.29 	$3,468,958,000 for 2011.

112.30 	Sec. 2. Laws 2009, chapter 96, article 1, section 24, subdivision 3, is amended to read:
113.1 		Subd. 3.Enrollment options transportation. For transportation of pupils attending 
113.2 	postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation 
113.3 	of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

113.4		$
	48,000
	.....
	2010
	
113.5
113.6		$
	52,000
29,000
	.....
	2011

113.7 	Sec. 3. Laws 2009, chapter 96, article 1, section 24, subdivision 4, as amended by 
113.8 	Laws 2010, First Special Session chapter 1, article 4, section 2, is amended to read:
113.9 		Subd. 4.Abatement revenue. For abatement aid under Minnesota Statutes, section 
113.10 	127A.49:

113.11		$
	1,000,000 
	.....
	2010
	
113.12
113.13		$
	1,132,000
1,127,000
	.....
	2011
	
113.14 	The 2010 appropriation includes $140,000 for 2009 and $860,000 for 2010.
113.15 	The 2011 appropriation includes $317,000 for 2010 and $815,000 $810,000 for 2011.

113.16 	Sec. 4. Laws 2009, chapter 96, article 1, section 24, subdivision 5, as amended by 
113.17 	Laws 2010, First Special Session chapter 1, article 4, section 3, is amended to read:
113.18 		Subd. 5.Consolidation transition. For districts consolidating under Minnesota 
113.19 	Statutes, section 123A.485:

113.20		$
	684,000
	.....
	2010
	
113.21
113.22		$
	576,000
593,000
	.....
	2011
	
113.23 	The 2010 appropriation includes $0 for 2009 and $684,000 for 2010.
113.24 	The 2011 appropriation includes $252,000 for 2010 and $324,000 $341,000 for 2011.

113.25 	Sec. 5. Laws 2009, chapter 96, article 1, section 24, subdivision 6, as amended by 
113.26 	Laws 2010, First Special Session chapter 1, article 4, section 4, is amended to read:
113.27 		Subd. 6.Nonpublic pupil education aid. For nonpublic pupil education aid under 
113.28 	Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:

113.29		$
	12,861,000
	.....
	2010
	
113.30
113.31		$
	16,157,000
16,213,000
	.....
	2011
	
113.32 	The 2010 appropriation includes $1,067,000 for 2009 and $11,794,000 for 2010.
113.33 	The 2011 appropriation includes $4,362,000 for 2010 and $11,795,000 $11,851,000
113.34 	for 2011.

114.1 	Sec. 6. Laws 2009, chapter 96, article 1, section 24, subdivision 7, as amended by 
114.2 	Laws 2010, First Special Session chapter 1, article 4, section 5, is amended to read:
114.3 		Subd. 7.Nonpublic pupil transportation. For nonpublic pupil transportation aid 
114.4 	under Minnesota Statutes, section 123B.92, subdivision 9:

114.5		$
	17,297,000
	.....
	2010
	
114.6
114.7		$
	19,729,000
19,387,000
	.....
	2011
	
114.8 	The 2010 appropriation includes $2,077,000 for 2009 and $15,220,000 for 2010.
114.9 	The 2011 appropriation includes $5,629,000 for 2010 and $14,100,000 $13,758,000
114.10 	for 2011.
114.11 	B. EDUCATION EXCELLENCE

114.12 	Sec. 7. Laws 2009, chapter 96, article 2, section 67, subdivision 2, as amended by 
114.13 	Laws 2010, First Special Session chapter 1, article 4, section 6, is amended to read:
114.14 		Subd. 2.Charter school building lease aid. For building lease aid under Minnesota 
114.15 	Statutes, section 124D.11, subdivision 4: 

114.16		$
	34,833,000
	.....
	2010
	
114.17
114.18		$
	44,938,000
42,633,000
	.....
	2011
	
114.19 	The 2010 appropriation includes $3,704,000 for 2009 and $31,129,000 for 2010.
114.20 	The 2011 appropriation includes $11,513,000 for 2010 and $33,425,000 $31,120,000
114.21 	for 2011.

114.22 	Sec. 8. Laws 2009, chapter 96, article 2, section 67, subdivision 3, as amended by 
114.23 	Laws 2010, First Special Session chapter 1, article 4, section 7, is amended to read:
114.24 		Subd. 3.Charter school startup aid. For charter school startup cost aid under 
114.25 	Minnesota Statutes, section 124D.11:

114.26		$
	1,218,000
	.....
	2010
	
114.27
114.28		$
	743,000
654,000
	.....
	2011
	
114.29 	The 2010 appropriation includes $202,000 for 2009 and $1,016,000 for 2010.
114.30 	The 2011 appropriation includes $375,000 for 2010 and $368,000 $279,000 for 2011.

114.31 	Sec. 9. Laws 2009, chapter 96, article 2, section 67, subdivision 4, as amended by 
114.32 	Laws 2010, First Special Session chapter 1, article 4, section 8, is amended to read:
115.1 		Subd. 4.Integration aid. For integration aid under Minnesota Statutes, section 
115.2 	124D.86, subdivision 5:

115.3		$
	50,812,000
	.....
	2010
	
115.4
115.5		$
	61,782,000
61,604,000
	.....
	2011
	
115.6 	The 2010 appropriation includes $5,832,000 for 2009 and $44,980,000 for 2010.
115.7 	The 2011 appropriation includes $16,636,000 for 2010 and $45,146,000 $44,968,000
115.8 	for 2011.

115.9 	Sec. 10. Laws 2009, chapter 96, article 2, section 67, subdivision 6, is amended to read:
115.10 		Subd. 6.Interdistrict desegregation or integration transportation grants. For 
115.11 	interdistrict desegregation or integration transportation grants under Minnesota Statutes, 
115.12 	section 124D.87:

115.13		$
	14,468,000
	.....
	2010
	
115.14
115.15		$
	17,582,000
13,393,000
	.....
	2011

115.16 	Sec. 11. Laws 2009, chapter 96, article 2, section 67, subdivision 9, as amended by 
115.17 	Laws 2010, First Special Session chapter 1, article 4, section 10, is amended to read:
115.18 		Subd. 9.Tribal contract schools. For tribal contract school aid under Minnesota 
115.19 	Statutes, section 124D.83:

115.20		$
	1,702,000
	.....
	2010
	
115.21
115.22		$
	2,119,000
1,958,000
	.....
	2011
	
115.23 	The 2010 appropriation includes $191,000 for 2009 and $1,511,000 for 2010.
115.24 	The 2011 appropriation includes $558,000 for 2010 and $1,561,000 $1,400,000
115.25 	for 2011.
115.26 	C. SPECIAL EDUCATION

115.27 	Sec. 12. Laws 2009, chapter 96, article 3, section 21, subdivision 3, is amended to read:
115.28 		Subd. 3.Aid for children with disabilities. For aid under Minnesota Statutes, 
115.29 	section 125A.75, subdivision 3, for children with disabilities placed in residential facilities 
115.30 	within the district boundaries for whom no district of residence can be determined:

115.31		$
	1,717,000
	.....
	2010
	
115.32
115.33		$
	1,895,000
1,554,000
	.....
	2011
	
116.1 	If the appropriation for either year is insufficient, the appropriation for the other 
116.2 	year is available.

116.3 	Sec. 13. Laws 2009, chapter 96, article 3, section 21, subdivision 4, as amended by 
116.4 	Laws 2010, First Special Session chapter 1, article 4, section 12, is amended to read:
116.5 		Subd. 4.Travel for home-based services. For aid for teacher travel for home-based 
116.6 	services under Minnesota Statutes, section 125A.75, subdivision 1:

116.7		$
	224,000
	.....
	2010
	
116.8
116.9		$
	282,000
324,000
	.....
	2011
	
116.10 	The 2010 appropriation includes $24,000 for 2009 and $200,000 for 2010.
116.11 	The 2011 appropriation includes $73,000 for 2010 and $209,000 $251,000 for 2011.
116.12 	D. FACILITIES AND TECHNOLOGY

116.13 	Sec. 14. Laws 2009, chapter 96, article 4, section 12, subdivision 6, as amended by 
116.14 	Laws 2010, First Special Session chapter 1, article 4, section 17, is amended to read:
116.15 		Subd. 6.Deferred maintenance aid. For deferred maintenance aid, according to 
116.16 	Minnesota Statutes, section 123B.591, subdivision 4:

116.17		$
	1,918,000
	.....
	2010
	
116.18
116.19		$
	2,146,000
2,191,000
	.....
	2011
	
116.20 	The 2010 appropriation includes $260,000 for 2009 and $1,658,000 for 2010.
116.21 	The 2011 appropriation includes $613,000 for 2010 and $1,533,000 $1,578,000
116.22 	for 2011.
116.23 	E. NUTRITION

116.24 	Sec. 15. Laws 2009, chapter 96, article 5, section 13, subdivision 2, is amended to read:
116.25 		Subd. 2.School lunch. For school lunch aid according to Minnesota Statutes, 
116.26 	section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

116.27		$
	12,688,000
	.....
	2010
	
116.28
116.29		$
	13,069,000
12,378,000
	.....
	2011

116.30 	Sec. 16. Laws 2009, chapter 96, article 5, section 13, subdivision 3, is amended to read:
116.31 		Subd. 3.School breakfast. For traditional school breakfast aid under Minnesota 
116.32 	Statutes, section 124D.1158:

117.1		$
	4,978,000
	.....
	2010
	
117.2
117.3		$
	5,147,000
4,646,000
	.....
	2011

117.4 	Sec. 17. Laws 2009, chapter 96, article 5, section 13, subdivision 4, as amended by 
117.5 	Laws 2010, First Special Session chapter 1, article 4, section 18, is amended to read:
117.6 		Subd. 4.Kindergarten milk. For kindergarten milk aid under Minnesota Statutes, 
117.7 	section 124D.118:

117.8		$
	1,104,000
	.....
	2010
	
117.9117.10
		$
	1,126,000
1,063,000 
	.....
	2011
	
117.11 	F. EARLY CHILDHOOD EDUCATION, PREVENTION, AND 
117.12 	SELF-SUFFICIENCY AND LIFELONG LEARNING

117.13 	Sec. 18. Laws 2009, chapter 96, article 6, section 11, subdivision 3, as amended by 
117.14 	Laws 2010, First Special Session chapter 1, article 4, section 23, is amended to read:
117.15 		Subd. 3.Early childhood family education aid. For early childhood family 
117.16 	education aid under Minnesota Statutes, section 124D.135:

117.17		$
	19,005,000
	.....
	2010
	
117.18
117.19		$
	21,460,000
21,177,000
	.....
	2011
	
117.20 	The 2010 appropriation includes $3,020,000 for 2009 and $15,985,000 for 2010.
117.21 	The 2011 appropriation includes $5,911,000 for 2010 and $15,549,000 $15,266,000
117.22 	for 2011.

117.23 	Sec. 19. Laws 2009, chapter 96, article 6, section 11, subdivision 4, as amended by 
117.24 	Laws 2010, First Special Session chapter 1, article 4, section 24, is amended to read:
117.25 		Subd. 4.Health and developmental screening aid. For health and developmental 
117.26 	screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

117.27		$
	2,922,000
	.....
	2010
	
117.28
117.29		$
	3,425,000
3,434,000
	.....
	2011
	
117.30 	The 2010 appropriation includes $367,000 for 2009 and $2,555,000 for 2010.
117.31 	The 2011 appropriation includes $945,000 for 2010 and $2,480,000 $2,489,000
117.32 	for 2011.

118.1 	Sec. 20. Laws 2009, chapter 96, article 6, section 11, subdivision 8, as amended by 
118.2 	Laws 2010, First Special Session chapter 1, article 4, section 25, is amended to read:
118.3 		Subd. 8.Community education aid. For community education aid under 
118.4 	Minnesota Statutes, section 124D.20:

118.5		$
	476,000
	.....
	2010
	
118.6
118.7		$
	473,000
463,000
	.....
	2011
	
118.8 	The 2010 appropriation includes $73,000 for 2009 and $403,000 for 2010.
118.9 	The 2011 appropriation included $148,000 for 2010 and $325,000 $315,000 for 
118.10 	2011.

118.11 	Sec. 21. Laws 2009, chapter 96, article 6, section 11, subdivision 12, as amended by 
118.12 	Laws 2010, First Special Session chapter 1, article 4, section 27, is amended to read:
118.13 		Subd. 12.Adult basic education aid. For adult basic education aid under 
118.14 	Minnesota Statutes, section 124D.531:

118.15		$
	35,671,000
	.....
	2010
	
118.16
118.17		$
	42,732,000
42,829,000
	.....
	2011
	
118.18 	The 2010 appropriation includes $4,187,000 for 2009 and $31,484,000 for 2010.
118.19 	The 2011 appropriation includes $11,644,000 for 2010 and $31,088,000 $31,185,000
118.20 	for 2011.