1.1 	A bill for an act
1.2 	relating to education; modifying certain early childhood and kindergarten 
1.3 	through grade 12 policy and finance provisions; requiring reports; appropriating 
1.4 	money;amending Minnesota Statutes 2010, sections 120B.13, subdivision 
1.5 	4; 122A.61, subdivision 1; 124D.09, subdivisions 9, 10, 12, 24; 135A.101, 
1.6 	subdivision 1; 471.975; Minnesota Statutes 2011 Supplement, sections 120B.07; 
1.7 	120B.08; 120B.09; 120B.36, subdivision 1; 124D.09, subdivision 5; 126C.126; 
1.8 	126C.40, subdivision 1; Laws 2011, First Special Session chapter 11, article 5, 
1.9 	section 11; article 7, section 2, subdivision 8; proposing coding for new law in 
1.10 	Minnesota Statutes, chapter 123B; repealing Minnesota Statutes 2010, sections 
1.11 	124D.09, subdivision 23; 127A.095, subdivision 3.
1.12 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.13 	Section 1. Minnesota Statutes 2011 Supplement, section 120B.07, is amended to read:
1.14 	120B.07 EARLY GRADUATION.
1.15 	(a) Notwithstanding any law to the contrary, any secondary school student who has 
1.16 	completed all required courses or standards may, with the approval of the student, the 
1.17 	student's parent or guardian, and local school officials, graduate before the completion 
1.18 	of the school year.
1.19 	(b) General education revenue attributable to the student must be paid as though 
1.20 	the student was in attendance for the entire year unless the student participates in the 
1.21 	early graduation achievement scholarship program under section 120B.08 or the early 
1.22 	graduation military service award program under section 120B.09.

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

2.1 	Sec. 2. Minnesota Statutes 2011 Supplement, section 120B.08, is amended to read:
2.2 	120B.08 EARLY GRADUATION ACHIEVEMENT SCHOLARSHIP 
2.3 	PROGRAM.
2.4 		Subdivision 1.Participation. A student who qualifies for early graduation under 
2.5 	section 120B.07, who meets the criteria in subdivision 1a and who has not participated in 
2.6 	the early graduation military service award program under section 120B.09, is eligible to 
2.7 	participate in the early graduation achievement scholarship program.
2.8 		Subd. la.Eligible student. For purposes of this section, an eligible student is a 
2.9 	secondary student enrolled in a Minnesota public school who, at the time of graduation, 
2.10 	generated Minnesota general education revenue and who graduates prior to the end of the 
2.11 	fourth school year after first enrolling in ninth grade.
2.12 		Subd. 2.Scholarship amounts. A student who participates in the early graduation 
2.13 	achievement scholarship program is eligible for a scholarship of $2,500 if the student 
2.14 	qualifies for graduation graduates one semester or two trimesters early, $5,000 if the 
2.15 	student qualifies for graduation graduates two semesters or three or four trimesters early, 
2.16 	or $7,500 if the student qualifies for graduation graduates three or more semesters or five 
2.17 	or more trimesters early. Participation in the optional summer term, extended day sessions, 
2.18 	and intersessions of a state-approved learning year program under section 124D.128 are 
2.19 	considered a quarter for purposes of computing scholarship amounts.
2.20 		Subd. 3.Scholarship uses. An early graduation achievement scholarship may be 
2.21 	used at any accredited institution of higher education accredited by an accrediting agency 
2.22 	recognized by the United States Department of Education.
2.23 		Subd. 4.Application. A qualifying student may apply to the commissioner of 
2.24 	education for an early graduation achievement scholarship. The application must be in the 
2.25 	form and manner specified by the commissioner and must be received at the department 
2.26 	within two calendar years of the date of graduation. Upon verification of the qualifying 
2.27 	student's course completion necessary for graduation, the department must issue the 
2.28 	student a certificate showing the student's scholarship amount.
2.29 		Subd. 5.Enrollment verification. A student who qualifies under this section 
2.30 	and enrolls in an accredited higher education institution must submit a form to the 
2.31 	commissioner verifying the student's enrollment in the higher education institution and the 
2.32 	tuition charges for that semester. Within 15 45 days of receipt of a student's enrollment 
2.33 	and tuition verification form, the commissioner must issue a scholarship check to the 
2.34 	student higher education institution in the lesser of the tuition amount for that semester 
2.35 	or the maximum amount of the student's early graduation achievement scholarship. A 
2.36 	student may continue to submit enrollment verification forms to the commissioner until 
3.1 	the student has used the full amount of the student's graduation achievement scholarship or 
3.2 	six years from the date of the student's graduation, whichever occurs first. The scholarship 
3.3 	cannot be renewed.
3.4 		Subd. 6.General education money transferred. The commissioner must transfer 
3.5 	the amounts necessary to fund the early graduation achievement scholarships from the 
3.6 	general education aid appropriation for that year.

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

3.8 	Sec. 3. Minnesota Statutes 2011 Supplement, section 120B.09, is amended to read:
3.9 	120B.09 EARLY GRADUATION MILITARY SERVICE AWARD PROGRAM.
3.10 		Subdivision 1.Eligibility. For purposes of this section, "eligible person" means a 
3.11 	secondary student enrolled in any Minnesota public school who, at the time of graduation, 
3.12 	generated Minnesota general education revenue, who qualifies for early graduation under 
3.13 	section 120B.07, who graduated prior to the end of the fourth school year after first 
3.14 	enrolling in ninth grade, who has not participated in the early graduation achievement 
3.15 	scholarship program under section 120B.08, and who, before the end of the calendar 
3.16 	year of the student's graduation, enters into active service in either the active or reserve 
3.17 	component of the United States armed forces and deploys for 60 days or longer to a 
3.18 	military base or installation outside Minnesota for the purpose of attending basic military 
3.19 	training or military school and, if required by the military, performing other military duty. 
3.20 	The active service may be in accordance with United States Code, title 10 or title 32.
3.21 		Subd. 2.Application. An eligible person may apply to the commissioner of 
3.22 	education for an early graduation military service bonus. The application must be in the 
3.23 	form and manner specified by the commissioner and must be received at the department 
3.24 	within two calendar years of the date of graduation.
3.25 		Subd. 3.Verification and award. The request for payment must be received at 
3.26 	the department by the end of the fiscal year following the fiscal year in which the student 
3.27 	graduated. Upon verification of the qualifying student's course completion necessary for 
3.28 	graduation and eligibility for the military service bonus, the commissioner must issue 
3.29 	payment to that person. Payment amounts must be determined according to section 
3.30 	120B.08, subdivision 2. Once the original amount of the award has been paid, it cannot be 
3.31 	renewed.

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

3.33 	Sec. 4. Minnesota Statutes 2010, section 120B.13, subdivision 4, is amended to read:
4.1 		Subd. 4.Rigorous course taking information; AP, IB, and PSEO. The 
4.2 	commissioner shall submit the following information on rigorous course taking to the 
4.3 	education committees of the legislature each year by February 1:
4.4 	(1) the number of pupils enrolled in postsecondary enrollment options under 
4.5 	section 124D.09, including concurrent enrollment, advanced placement, and international 
4.6 	baccalaureate courses in each school district;
4.7 	(2) the number of teachers in each district attending training programs offered by 
4.8 	the college board or, International Baccalaureate North America, Inc., or Minnesota 
4.9 	concurrent enrollment programs;
4.10 	(3) the number of teachers in each district participating in support programs;
4.11 	(4) recent trends in the field of postsecondary enrollment options under section 
4.12 	124D.09, including concurrent enrollment, advanced placement, and international 
4.13 	baccalaureate programs;
4.14 	(5) expenditures for each category in this section and under sections 124D.09 and 
4.15 	124D.091; and
4.16 	(6) other recommendations for the state program or the postsecondary enrollment 
4.17 	options under section 124D.09, including concurrent enrollment.

4.18 	EFFECTIVE DATE. This section is effective for the 2012-2013 school year and 
4.19 	later.

4.20 	Sec. 5. Minnesota Statutes 2011 Supplement, section 120B.36, subdivision 1, is 
4.21 	amended to read:
4.22 		Subdivision 1.School performance report cards. (a) The commissioner 
4.23 	shall report student academic performance under section 120B.35, subdivision 2; the 
4.24 	percentages of students showing low, medium, and high growth under section 120B.35, 
4.25 	subdivision 3, paragraph (b); school safety and student engagement and connection 
4.26 	under section 120B.35, subdivision 3, paragraph (d); rigorous coursework under section 
4.27 	120B.35, subdivision 3, paragraph (c); two separate student-to-teacher ratios that clearly 
4.28 	indicate the definition of teacher consistent with sections 122A.06 and 122A.15 for 
4.29 	purposes of determining these ratios; staff characteristics excluding salaries; student 
4.30 	enrollment demographics; district mobility; and extracurricular activities. The report also 
4.31 	must indicate a school's adequate yearly progress status, and must not set any designations 
4.32 	applicable to high- and low-performing schools due solely to adequate yearly progress 
4.33 	status.
4.34 	(b) The commissioner shall develop, annually update, and post on the department 
4.35 	Web site school performance report cards as described in paragraph (f).
5.1 	(c) The commissioner must make available performance report cards by the 
5.2 	beginning of each school year.
5.3 	(d) A school or district may appeal its adequate yearly progress status in writing to 
5.4 	the commissioner within 30 days of receiving the notice of its status. The commissioner's 
5.5 	decision to uphold or deny an appeal is final.
5.6 	(e) School performance report card data are nonpublic data under section 13.02, 
5.7 	subdivision 9, until the commissioner publicly releases the data. The commissioner shall 
5.8 	annually post school performance report cards to the department's public Web site no later 
5.9 	than September 1, except that in years when the report card reflects new performance 
5.10 	standards, the commissioner shall post the school performance report cards no later than 
5.11 	October 1.
5.12 	(f) The commissioner, for each school district and each school required to report 
5.13 	under this subdivision, must at least:
5.14 	(1) title the commissioner's report "School Performance Report Card";
5.15 	(2) display all required information on a single, easily accessible and understandable 
5.16 	Web page;
5.17 	(3) using longitudinal data to display results over time, compare and display 
5.18 	corresponding state and local indicators on student proficiency in reading and math by 
5.19 	grade, school and district value-added ratings, the number and percentage of schools and 
5.20 	districts making or not making adequate yearly progress by student categories, a state and 
5.21 	local growth-based performance index, a school or district identified for improvement 
5.22 	and years in improvement status, and state and local attendance and graduation rates 
5.23 	by student categories; and
5.24 	(4) display any accountability measures or ratings required by federal law or a 
5.25 	federally approved waiver of that law.

5.26 	EFFECTIVE DATE. This section is effective for the 2012-2013 school year and 
5.27 	later.

5.28 	Sec. 6. Minnesota Statutes 2010, section 122A.61, subdivision 1, is amended to read:
5.29 		Subdivision 1.Staff development revenue. A district is required to reserve 
5.30 	an amount equal to at least two percent of the basic revenue under section 126C.10, 
5.31 	subdivision 2, for in-service education for programs under section 120B.22, subdivision 
5.32 	2, for staff development plans, including plans for challenging instructional activities 
5.33 	and experiences under section 122A.60, and for curriculum development and programs, 
5.34 	other in-service education, teachers' workshops, teacher conferences, the cost of 
5.35 	substitute teachers staff development purposes, preservice and in-service education for 
6.1 	special education professionals and paraprofessionals, and other related costs for staff 
6.2 	development efforts. A district may annually waive the requirement to reserve their basic 
6.3 	revenue under this section if a majority vote of the licensed teachers in the district and 
6.4 	a majority vote of the school board agree to a resolution to waive the requirement. A 
6.5 	district in statutory operating debt is exempt from reserving basic revenue according to 
6.6 	this section. Districts may expend an additional amount of unreserved revenue for staff 
6.7 	development based on their needs. With the exception of amounts reserved for staff 
6.8 	development from revenues allocated directly to school sites, the board must initially 
6.9 	allocate 50 percent of the reserved revenue to each school site in the district on a per 
6.10 	teacher basis, which must be retained by the school site until used. The board may 
6.11 	retain 25 percent to be used for district wide staff development efforts. The remaining 
6.12 	25 percent of the revenue must be used to make grants to school sites for best practices 
6.13 	methods. A grant may be used for any purpose authorized under section 120B.22, 
6.14 	subdivision 2, 122A.60, or for the costs of curriculum development and programs, other 
6.15 	in-service education, teachers' workshops, teacher conferences, substitute teachers for 
6.16 	staff development purposes, and other staff development efforts, and determined by 
6.17 	the site professional development team. The site professional development team must 
6.18 	demonstrate to the school board the extent to which staff at the site have met the outcomes 
6.19 	of the program. The board may withhold a portion of initial allocation of revenue if the 
6.20 	staff development outcomes are not being met.

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

6.22 	Sec. 7. [123B.022] PROHIBITIONS ON POLITICAL ACTIVITIES BY PUBLIC 
6.23 	SCHOOL EMPLOYEES.
6.24 	Local school boards shall develop and implement policies to ensure that publicly 
6.25 	funded resources, including but not limited to time, materials, equipment, facilities, and 
6.26 	e-mail and other forms of technology used to communicate, are not used or authorized 
6.27 	for use by public employees to:
6.28 	(1) advocate the election or defeat of any candidate for elective office;
6.29 	(2) advocate the passage or defeat of any referendum question; or
6.30 	(3) solicit funds for political purposes.
6.31 	Such policies shall not prohibit public employees from engaging in political activities 
6.32 	except when they are performing duties assigned to them under their employment contract 
6.33 	with the district or representing their employer in an official capacity.
7.1 	Such policies shall not prohibit the use of public funds for disseminating factual 
7.2 	information about a proposition appearing on a local ballot, if such information is factual 
7.3 	and does not advocate for or against the proposition.
7.4 	All school districts must make these policies readily accessible to the public in paper 
7.5 	copy at the district office or on the district Web site.

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

7.7 	Sec. 8. Minnesota Statutes 2011 Supplement, section 124D.09, subdivision 5, is 
7.8 	amended to read:
7.9 		Subd. 5.Authorization; notification. (a) Notwithstanding any other law to the 
7.10 	contrary, an 11th or 12th grade pupil enrolled in a school or an American Indian-controlled 
7.11 	tribal contract or grant school eligible for aid under section 124D.83, except a foreign 
7.12 	exchange pupil enrolled in a district under a cultural exchange program, may apply to an 
7.13 	eligible institution, as defined in subdivision 3, to enroll in nonsectarian academic and 
7.14 	career and technical courses offered by that postsecondary institution.
7.15 	(b) Notwithstanding any other law to the contrary, a 9th or 10th grade pupil enrolled 
7.16 	in a district or an American Indian-controlled tribal contract or grant school eligible for 
7.17 	aid under section 124D.83, except a foreign exchange pupil enrolled in a district under a 
7.18 	cultural exchange program, may apply to enroll in nonsectarian academic and career and 
7.19 	technical courses offered under subdivision 10, if after all 11th and 12th grade students 
7.20 	have applied for a course, additional students are necessary to offer the course.
7.21 	(c) If an institution accepts a secondary pupil for enrollment under this section, the 
7.22 	institution shall send written notice to the pupil, the pupil's school or school district, and 
7.23 	the commissioner within ten days of acceptance. The notice must indicate the course 
7.24 	and hours of enrollment of that pupil. If the pupil enrolls in a course for postsecondary 
7.25 	credit, the institution must notify the pupil about payment in the customary manner used 
7.26 	by the institution.

7.27 	EFFECTIVE DATE. This section is effective for the 2012-2013 school year and 
7.28 	later.

7.29 	Sec. 9. Minnesota Statutes 2010, section 124D.09, subdivision 9, is amended to read:
7.30 		Subd. 9.Enrollment priority. A postsecondary institution shall give priority to 
7.31 	its postsecondary students when enrolling 11th and 12th grade pupils in its courses. A 
7.32 	postsecondary institution may provide information about its programs to a secondary 
7.33 	school or to a pupil or parent, but it may not advertise or otherwise recruit or solicit 
8.1 	the participation of secondary pupils to enroll in its programs on financial grounds. 
8.2 	An institution must not enroll secondary pupils, for postsecondary enrollment options 
8.3 	purposes, in remedial, developmental, or other courses that are not college level. Once a 
8.4 	pupil has been enrolled in a postsecondary course under this section, the pupil shall not 
8.5 	be displaced by another student.

8.6 	Sec. 10. Minnesota Statutes 2010, section 124D.09, subdivision 10, is amended to read:
8.7 		Subd. 10.Courses according to agreements. (a) An eligible pupil, according to 
8.8 	subdivision 5, may enroll in a nonsectarian academic or career and technical course taught 
8.9 	by a secondary teacher or a postsecondary faculty member and offered at a secondary 
8.10 	school, or another location, according to an agreement between a public school board and 
8.11 	the governing body of an eligible public postsecondary system or an eligible private 
8.12 	postsecondary institution, as defined in subdivision 3. All provisions of this section shall 
8.13 	apply to a pupil, public school board, district, and the governing body of a postsecondary 
8.14 	institution, except as otherwise provided.
8.15 	(b) Participating public school boards, districts, and eligible institutions may enter 
8.16 	into an academic and career and technical education joint partnership with local or regional 
8.17 	businesses or other entrepreneurs to help interested students pursue both academic and 
8.18 	career and technical courses leading to an industry credential and a successful transition to 
8.19 	postsecondary career and college education.

8.20 	EFFECTIVE DATE. This section is effective for the 2012-2013 school year and 
8.21 	later.

8.22 	Sec. 11. Minnesota Statutes 2010, section 124D.09, subdivision 12, is amended to read:
8.23 		Subd. 12.Credits. A pupil may enroll in a course under this section for either 
8.24 	secondary credit or postsecondary credit. At the time a pupil enrolls in a course, the pupil 
8.25 	shall designate whether the course is for secondary or postsecondary credit. A pupil taking 
8.26 	several courses may designate some for secondary credit and some for postsecondary 
8.27 	credit. A pupil must not audit a course under this section.
8.28 	A district shall grant academic credit to a pupil enrolled in a course for secondary 
8.29 	credit if the pupil successfully completes the course. Seven quarter or four semester 
8.30 	college credits equal at least one full year of high school credit. Fewer college credits may 
8.31 	be prorated. A district must also grant academic credit to a pupil enrolled in a course for 
8.32 	postsecondary credit if secondary credit is requested by a pupil. If no comparable course is 
8.33 	offered by the district, the district must, as soon as possible, notify the commissioner, who 
8.34 	shall determine the number of credits that shall be granted to a pupil who successfully 
9.1 	completes a course. If a comparable course is offered by the district, the school board 
9.2 	shall grant a comparable number of credits to the pupil. If there is a dispute between the 
9.3 	district and the pupil regarding the number of credits granted for a particular course, the 
9.4 	pupil may appeal the board's decision to the commissioner. The commissioner's decision 
9.5 	regarding the number of credits shall be final.
9.6 	The secondary credits granted to a pupil must be counted toward the graduation 
9.7 	requirements and subject area requirements of the district. Evidence of successful 
9.8 	completion of each course and secondary credits granted must be included in the pupil's 
9.9 	secondary school record. A pupil shall provide the school with a copy of the pupil's grade 
9.10 	in each course taken for secondary credit under this section. Upon the request of a pupil, 
9.11 	the pupil's secondary school record must also include evidence of successful completion 
9.12 	and credits granted for a course taken for postsecondary credit. In either case, the record 
9.13 	must indicate that the credits were earned at a postsecondary institution.
9.14 	If a pupil enrolls in a postsecondary institution after leaving secondary school, the 
9.15 	postsecondary institution must award postsecondary credit for any course successfully 
9.16 	completed for secondary credit at that institution. Other postsecondary institutions may 
9.17 	award, after a pupil leaves secondary school, postsecondary credit for any courses 
9.18 	successfully completed under this section. An institution may not charge a pupil for 
9.19 	the award of credit.
9.20 	The Board of Trustees of the Minnesota State Colleges and Universities and 
9.21 	the Board of Regents of the University of Minnesota must, and private nonprofit and 
9.22 	proprietary postsecondary institutions should, award postsecondary credit for any 
9.23 	successfully completed courses in a program certified by the National Alliance of 
9.24 	Concurrent Enrollment Partnerships offered according to an agreement under subdivision 
9.25 	10.

9.26 	Sec. 12. Minnesota Statutes 2010, section 124D.09, subdivision 24, is amended to read:
9.27 		Subd. 24.Limit; state obligation. The provisions of subdivisions 13, 19, and 
9.28 	22, and 23 shall not apply for any postsecondary courses in which a pupil is enrolled in 
9.29 	addition to being enrolled full time in that pupil's district or for any postsecondary course 
9.30 	in which a pupil is enrolled for postsecondary credit. The pupil is enrolled full time if 
9.31 	the pupil attends credit-bearing classes in the high school or high school program for 
9.32 	all of the available hours of instruction.

9.33 	EFFECTIVE DATE. This section is effective for the 2012-2013 school year and 
9.34 	later.

10.1 	Sec. 13. Minnesota Statutes 2011 Supplement, section 126C.126, is amended to read:
10.2 	126C.126 REALLOCATING GENERAL EDUCATION REVENUE FOR 
10.3 	ALL-DAY KINDERGARTEN AND PREKINDERGARTEN.
10.4 	(a) In order to provide additional revenue for an optional all-day kindergarten 
10.5 	program, a district may reallocate general education revenue attributable to 12th grade 
10.6 	students who have graduated early under section 120B.07 and who do not participate in 
10.7 	the early graduation achievement scholarship program under section 120B.08 or the early 
10.8 	graduation military service award program under section 120B.09.
10.9 	(b) A school district may spend general education revenue on extended time 
10.10 	kindergarten and prekindergarten programs.

10.11 	Sec. 14. Minnesota Statutes 2011 Supplement, section 126C.40, subdivision 1, is 
10.12 	amended to read:
10.13 		Subdivision 1.To lease building or land. (a) When an independent or a special 
10.14 	school district or a group of independent or special school districts finds it economically 
10.15 	advantageous to rent or lease a building or land for any instructional purposes or for 
10.16 	school storage or furniture repair, and it determines that the operating capital revenue 
10.17 	authorized under section 126C.10, subdivision 13, is insufficient for this purpose, it may 
10.18 	apply to the commissioner for permission to make an additional capital expenditure levy 
10.19 	for this purpose. An application for permission to levy under this subdivision must contain 
10.20 	financial justification for the proposed levy, the terms and conditions of the proposed 
10.21 	lease, and a description of the space to be leased and its proposed use.
10.22 	(b) The criteria for approval of applications to levy under this subdivision must 
10.23 	include: the reasonableness of the price, the appropriateness of the space to the proposed 
10.24 	activity, the feasibility of transporting pupils to the leased building or land, conformity 
10.25 	of the lease to the laws and rules of the state of Minnesota, and the appropriateness of 
10.26 	the proposed lease to the space needs and the financial condition of the district. The 
10.27 	commissioner must not authorize a levy under this subdivision in an amount greater than 
10.28 	the cost to the district of renting or leasing a building or land for approved purposes. 
10.29 	The proceeds of this levy must not be used for custodial or other maintenance services. 
10.30 	A district may not levy under this subdivision for the purpose of leasing or renting a 
10.31 	district-owned building or site to itself.
10.32 	(c) For agreements finalized after July 1, 1997, a district may not levy under this 
10.33 	subdivision for the purpose of leasing: (1) a newly constructed building used primarily 
10.34 	for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed 
10.35 	building addition or additions used primarily for regular kindergarten, elementary, or 
11.1 	secondary instruction that contains more than 20 percent of the square footage of the 
11.2 	previously existing building.
11.3 	(d) Notwithstanding paragraph (b), a district may levy under this subdivision for the 
11.4 	purpose of leasing or renting a district-owned building or site to itself only if the amount 
11.5 	is needed by the district to make payments required by a lease purchase agreement, 
11.6 	installment purchase agreement, or other deferred payments agreement authorized by law, 
11.7 	and the levy meets the requirements of paragraph (c). A levy authorized for a district by 
11.8 	the commissioner under this paragraph may be in the amount needed by the district to 
11.9 	make payments required by a lease purchase agreement, installment purchase agreement, 
11.10 	or other deferred payments agreement authorized by law, provided that any agreement 
11.11 	include a provision giving the school districts the right to terminate the agreement 
11.12 	annually without penalty.
11.13 	(e) The total levy under this subdivision for a district for any year must not exceed 
11.14 	$150 times the resident pupil units for the fiscal year to which the levy is attributable.
11.15 	(f) For agreements for which a review and comment have been submitted to the 
11.16 	Department of Education after April 1, 1998, the term "instructional purpose" as used in 
11.17 	this subdivision excludes expenditures on stadiums.
11.18 	(g) The commissioner of education may authorize a school district to exceed the 
11.19 	limit in paragraph (e) if the school district petitions the commissioner for approval. The 
11.20 	commissioner shall grant approval to a school district to exceed the limit in paragraph (e) 
11.21 	for not more than five years if the district meets the following criteria:
11.22 	(1) the school district has been experiencing pupil enrollment growth in the 
11.23 	preceding five years;
11.24 	(2) the purpose of the increased levy is in the long-term public interest;
11.25 	(3) the purpose of the increased levy promotes colocation of government services; 
11.26 	and
11.27 	(4) the purpose of the increased levy is in the long-term interest of the district by 
11.28 	avoiding over construction of school facilities.
11.29 	(h) A school district that is a member of an intermediate school district may include 
11.30 	in its authority under this section the costs associated with leases of administrative and 
11.31 	classroom space for intermediate school district programs. This authority must not exceed 
11.32 	$43 times the adjusted marginal cost pupil units of the member districts. This authority is 
11.33 	in addition to any other authority authorized under this section.
11.34 	(i) In addition to the allowable capital levies in paragraph (a), for taxes payable in 
11.35 	2012, a district that is a member of the "Technology and Information Education Systems" 
11.36 	data processing joint board, that finds it economically advantageous to enter into a lease 
12.1 	agreement to finance improvements to a building for a group of school districts or special 
12.2 	school districts for staff development purposes, may levy for its portion of lease costs 
12.3 	attributed to the district within the total levy limit in paragraph (e). The total levy authority 
12.4 	under this paragraph shall not exceed $632,000.
12.5 	(j) Notwithstanding paragraph (a), a district may levy under this subdivision for the 
12.6 	purpose of leasing administrative space if the district can demonstrate to the satisfaction of 
12.7 	the commissioner that the lease cost for the administrative space is no greater than the 
12.8 	lease cost for instructional space that the district would otherwise lease. The commissioner 
12.9 	must deny this levy authority unless the district passes a resolution stating its intent to 
12.10 	lease instructional space under this section if the commissioner does not grant authority 
12.11 	under this paragraph. The resolution must also certify that the lease cost for administrative 
12.12 	space under this paragraph is no greater than the lease cost for the district's proposed 
12.13 	instructional lease.

12.14 	Sec. 15. Minnesota Statutes 2010, section 135A.101, subdivision 1, is amended to read:
12.15 		Subdivision 1.Requirements for participation. To participate in the postsecondary 
12.16 	enrollment options program, a college or university must abide by the provisions in this 
12.17 	section. The institution may provide information about its programs to a secondary school 
12.18 	or to a pupil or parent, but may not recruit or solicit participation on financial grounds.

12.19 	Sec. 16. Minnesota Statutes 2010, section 471.975, is amended to read:
12.20 	471.975 MAY PAY DIFFERENTIAL OF RESERVE ON ACTIVE DUTY.
12.21 	(a) Except as provided in paragraph (b), a statutory or home rule charter city, county, 
12.22 	town, or other political subdivision may pay to each eligible member of the National 
12.23 	Guard or other reserve component of the armed forces of the United States an amount 
12.24 	equal to the difference between the member's base active duty military salary and the 
12.25 	salary the member would be paid as an active political subdivision employee, including 
12.26 	any adjustments the member would have received if not on leave of absence. This 
12.27 	payment may be made only to a person whose base active duty military salary is less than 
12.28 	the salary the person would be paid as an active political subdivision employee. Back pay 
12.29 	authorized by this section may be paid in a lump sum. Payment under this section must 
12.30 	not extend beyond four years from the date the employee reported for active service, plus 
12.31 	any additional time the employee may be legally required to serve.
12.32 	(b) Subject to the limits under paragraph (g), each school district shall pay to each 
12.33 	eligible member of the National Guard or other reserve component of the armed forces 
12.34 	of the United States an amount equal to the difference between the member's base active 
13.1 	duty military salary and the salary the member would be paid as an active school district 
13.2 	employee, including any adjustments the member would have received if not on leave 
13.3 	of absence. The pay differential must be based on a comparison between the member's 
13.4 	daily base rate of active duty pay, calculated by dividing the member's base military 
13.5 	monthly salary by the number of paid days in the month, and the member's daily rate of 
13.6 	pay for the member's school district salary, calculated by dividing the member's total 
13.7 	school district salary by the number of contract days. The member's salary as a school 
13.8 	district employee must include the member's basic salary and any additional salary the 
13.9 	member earns from the school district for cocurricular and extracurricular activities. The 
13.10 	differential payment under this paragraph must be the difference between the daily base 
13.11 	rates of military pay times the number of school district contract days the member misses 
13.12 	because of military active duty. This payment may be made only to a person whose daily 
13.13 	base rate of active duty pay is less than the person's daily rate of pay as an active school 
13.14 	district employee. Payments may be made at the intervals at which the member received 
13.15 	pay as a school district employee. Payment under this section must not extend beyond 
13.16 	four years from the date the employee reported for active service, plus any additional time 
13.17 	the employee may be legally required to serve.
13.18 	(c) An eligible member of the reserve components of the armed forces of the United 
13.19 	States is a reservist or National Guard member who was an employee of a political 
13.20 	subdivision at the time the member reported for active service on or after May 29, 2003, 
13.21 	or who is on active service on May 29, 2003.
13.22 	(d) Except as provided in paragraph (e) and elsewhere in Minnesota Statutes, a 
13.23 	statutory or home rule charter city, county, town, or other political subdivision has total 
13.24 	discretion regarding employee benefit continuation for a member who reports for active 
13.25 	service and the terms and conditions of any benefit.
13.26 	(e) A school district must continue the employee's enrollment in health and dental 
13.27 	coverage, and the employer contribution toward that coverage, until the employee is 
13.28 	covered by health and dental coverage provided by the armed forces. If the employee had 
13.29 	elected dependent coverage for health or dental coverage as of the time that the employee 
13.30 	reported for active service, a school district must offer the employee the option to continue 
13.31 	the dependent coverage at the employee's own expense. A school district must permit 
13.32 	the employee to continue participating in any pretax account in which the employee 
13.33 	participated when the employee reported for active service, to the extent of employee pay 
13.34 	available for that purpose.
13.35 	(f) For purposes of this section, "active service" has the meaning given in section 
13.36 	190.05, subdivision 5, but excludes service performed exclusively for purposes of:
14.1 	(1) basic combat training, advanced individual training, annual training, and periodic 
14.2 	inactive duty training;
14.3 	(2) special training periodically made available to reserve members; and
14.4 	(3) service performed in accordance with section 190.08, subdivision 3.
14.5 	(g) A school district making payments under paragraph (b) shall place a sum equal 
14.6 	to any difference between the amount of salary that would have been paid to the employee 
14.7 	who is receiving the payments and the amount of salary being paid to substitutes for 
14.8 	that employee into a special fund that must be used to pay or partially pay the deployed 
14.9 	employee's payments under paragraph (b). A school district is required to pay only this 
14.10 	amount to the deployed school district employee. When an employee of a school district 
14.11 	who, as a member of the National Guard or any other reserve unit of the United States 
14.12 	armed forces, reports for active service as defined in section 190.05, subdivision 5, the 
14.13 	district must place into a special service member's aggregate salary savings account a sum 
14.14 	equal to the positive difference between the amount of salary the district would have paid 
14.15 	to the employee and the amount of salary paid to any substitute for the employee's position 
14.16 	during the employee's leave for military service.  The district must use the combined 
14.17 	proceeds in the account only to fully pay, or partially pay in proportionate amounts, the 
14.18 	salary differentials of all eligible deployed employees in the district, as determined under 
14.19 	paragraph (b).  A school district's obligation to make payments under this section is limited 
14.20 	to the amount of money in the account.

14.21 	EFFECTIVE DATE. This section is effective July 1, 2012, for school district 
14.22 	employees serving in active military duty on or after that date.

14.23 	Sec. 17. Laws 2011, First Special Session chapter 11, article 5, section 11, is amended 
14.24 	to read:
14.25 	Sec. 11. FUND TRANSFER; FISCAL YEARS 2012 AND 2013 THROUGH 
14.26 	2015 ONLY.
 14.27 	(a) Notwithstanding Minnesota Statutes, section 123B.80, subdivision 3, for fiscal 
14.28 	years 2012 and 2013 through 2015 only, the commissioner must approve a request for a 
14.29 	fund transfer if the transfer does not increase state aid obligations to the district or result in 
14.30 	additional property tax authority for the district. This section does not permit transfers 
14.31 	from the community service fund or the food service fund.
14.32 	(b) A school board may approve a fund transfer under paragraph (a) only after 
14.33 	adopting a resolution stating the fund transfer will not diminish instructional opportunities 
14.34 	for students.

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

15.2 	Sec. 18. Laws 2011, First Special Session chapter 11, article 7, section 2, subdivision 
15.3 	8, is amended to read:
15.4 		Subd. 8.Early childhood education scholarships. For grants to early childhood 
15.5 	education scholarships for public or private early childhood preschool programs for 
15.6 	children ages 3 to 5:

15.7		$
	4,000,000
	.....
	2013
	
15.8 	(a) All children whose parents or legal guardians meet the eligibility requirements 
15.9 	of paragraph (b) established by the commissioner are eligible to receive early childhood 
15.10 	education scholarships under this section.
15.11 	(b) A parent or legal guardian is eligible for an early childhood education 
15.12 	scholarship, to be used for a program provider of the parents' or legal guardians' choice, if 
15.13 	the parent or legal guardian:
15.14 	(1) has a child three or four years of age on September 1, beginning in calendar 
15.15 	year 2012; and
15.16 	(2)(i) has income equal to or less than 47 percent of the state median income in the 
15.17 	current calendar year; or
15.18 	(ii) can document their child's identification through another public funding 
15.19 	eligibility process, including the Free and Reduced Price Lunch Program, National School 
15.20 	Lunch Act, United States Code, title 42, section 1751, part 210; Head Start under federal 
15.21 	Improving Head Start for School Readiness Act of 2007; Minnesota family investment 
15.22 	program under chapter 256J; and child care assistance programs under chapter 119B.
15.23 	(c) Of the amount appropriated under this section, $250,000 is for a grant to the 
15.24 	parent-child home program.
15.25 	(d) Each year, the Department of Education must award one-half of the early 
15.26 	childhood education scholarship money to parents and legal guardians who reside in the 
15.27 	seven-county metropolitan area and the other half to parents and legal guardians who live 
15.28 	in greater Minnesota. If any money remains from either half after the initial applications, 
15.29 	the commissioner may use that money to make early education scholarships in the 
15.30 	other region. If this appropriation is insufficient to provide early childhood education 
15.31 	scholarships to all eligible children, the Department of Education shall make scholarships 
15.32 	available on a first-come, first-served basis within each of the two geographic regions of 
15.33 	the state.
16.1 	(e) The commissioner of education shall submit a written report to the education 
16.2 	committees of the legislature by January 15, 2012, describing its plan for implementation 
16.3 	of scholarships under this subdivision for the 2012-2013 school year.
16.4 	(f) Any balance in the first year does not cancel but is available in the second year.
16.5 	(g) The base for this program is $2,000,000 each year.

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

16.7 	Sec. 19. CAREER AND TECHNICAL EDUCATION ADVISORY TASK 
16.8 	FORCE.
 16.9 	(a) A career and technical education advisory task force is established to develop 
16.10 	recommendations for better integrating career and technical education into kindergarten 
16.11 	through grade 12 curriculum and instruction, improving teachers' ability to help students 
16.12 	prepare for college and careers by measures that include increasing the number of 
16.13 	teachers with a master's degree in a content area directly related to the teachers' 
16.14 	teaching assignment, and successfully meeting 21st century challenges through a more 
16.15 	comprehensive approach to kindergarten through grade 12 education that includes 
16.16 	expanded work-based learning opportunities and opportunities for 9th and 10th grade 
16.17 	students to participate in postsecondary enrollment options under Minnesota Statutes, 
16.18 	section 124D.09. The advisory task force must at least examine the role of school 
16.19 	administrators, teachers, policy makers, and others in:
16.20 	(1) expecting career and technical education to provide students with high levels of 
16.21 	skills and academic proficiency;
16.22 	(2) using career and technical education to improve students' mathematics scores;
16.23 	(3) understanding how the federal No Child Left Behind Act limits a student's ability 
16.24 	to pursue career and technical education; and
16.25 	(4) remedying the absence of and need for access to tools and equipment to provide 
16.26 	students with hands-on learning.
16.27 	(b) Advisory task force members must include representatives of the following 
16.28 	entities selected by that entity: the Minnesota Association of Career and Technical 
16.29 	Administrators; the Minnesota Association for Career and Technical Education; University 
16.30 	of Minnesota and Minnesota State Colleges and Universities faculty working to develop 
16.31 	career and technical educators in Minnesota; the National Research Center for Career and 
16.32 	Technical Education; the Department of Education; the Board of Teaching; the Minnesota 
16.33 	Association of Colleges for Teacher Education; and any other representatives selected by 
16.34 	the task force members. The education commissioner, or the commissioner's designee, 
17.1 	must convene the task force. Task force members are not eligible for compensation or 
17.2 	reimbursement for expenses related to task force activities.
17.3 	(c) The commissioner, upon request, must provide technical assistance to the task 
17.4 	force.
17.5 	(d) The task force must submit its recommendations under this section to the 
17.6 	legislative committees with jurisdiction over kindergarten through grade 12 education by 
17.7 	February 15, 2013.

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

17.9 	Sec. 20. REPORT; NO CHILD LEFT BEHIND ACT 2012 WAIVER 
17.10 	IMPLEMENTATION COST.
 17.11 	The commissioner of education must submit to the K-12 education committees of 
17.12 	the legislature by February 15, 2013, a written report containing an up-to-date plan for 
17.13 	fully implementing the federally approved 2012 No Child Left Behind Act waiver, a 
17.14 	summary of state and local costs and all public and nonpublic expenditures to-date related 
17.15 	to that implementation, and a projected estimate of all remaining future costs related 
17.16 	to fully implementing the federal waiver.

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

17.18 	Sec. 21. APPROPRIATION.
 17.19 		Subdivision 1.Department of Education. The sums shown are added to or, if 
17.20 	shown in parentheses, subtracted from, the appropriations in Laws 2011, First Special 
17.21 	Session chapter 11, or any appropriation that replaces those appropriations, to the 
17.22 	Department of Education for the purposes specified. The appropriations are from the 
17.23 	general fund, or another named fund, and are available for the fiscal years indicated for 
17.24 	each purpose. 
17.25 		Subd. 2.General education aid. For general education aid under Minnesota 
17.26 	Statutes, section 126C.13, subdivision 4:

17.27		$
	(340,000)
	.....
	2012
	
17.28		$
	(669,000)
	.....
	2013
	
17.29 		Subd. 3.Bemidji pupil transportation grant. For a pupil transportation grant to 
17.30 	Independent School District No. 31, Bemidji:

17.31		$
	250,000
	.....
	2013
	
18.1 	This is a onetime appropriation.
18.2 		Subd. 4.Department of Education. For the Department of Education for additional 
18.3 	support and staffing related to digital and online learning:

18.4		$
	51,000
	.....
	2013

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

18.6 	Sec. 22.  REPEALER.
 18.7 	(a) Minnesota Statutes 2010, section 127A.095, subdivision 3, is repealed.
18.8 	(b) Minnesota Statutes 2010, section 124D.09, subdivision 23, is repealed effective 
18.9 	for the 2012-2013 school year and later.

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