1.1A bill for an act1.2relating to education; providing for general education, education excellence, 1.3special education, and other programs; appropriating money;amending 1.4Minnesota Statutes 2010, sections 120A.20, subdivision 2; 120A.22, subdivisions 1.52, 11; 120B.024; 120B.13, subdivision 1; 122A.415, subdivision 3; 123B.04; 1.6123B.92, subdivision 3; 124D.08, by adding a subdivision; 124D.09, subdivisions 1.79, 12, 13, 22, 24, by adding a subdivision; 125A.14; 125A.19; 125A.515, 1.8subdivision 1; 126C.19, subdivision 2; 127A.47, subdivision 1; 135A.101, 1.9subdivision 1; Minnesota Statutes 2011 Supplement, sections 120A.24, 1.10subdivision 1; 120B.023, subdivision 2; 120B.07; 120B.08; 120B.09; 120B.12, 1.11subdivision 2; 120B.30, subdivision 1; 122A.40, subdivision 5; 123B.147, 1.12subdivision 3; 124D.09, subdivision 7; 124D.10, subdivisions 3, 4, 6, 8, 10, 1.1311, 13, 14, 15, 17a, 23, 25, by adding a subdivision; 124D.4531, subdivision 1.141; 124D.98, subdivisions 2, 3; 126C.126; 126C.40, subdivision 1; 127A.45, 1.15subdivision 6a; Laws 2011, First Special Session chapter 11, article 2, section 1.1650, subdivision 16; article 7, section 2, subdivision 8; proposing coding for new 1.17law in Minnesota Statutes, chapter 123B; repealing Minnesota Statutes 2010, 1.18sections 120A.28; 120B.019; 120B.31, subdivision 3; 121A.60, subdivisions 1.193, 4; 121A.62; 121A.63; 122A.18, subdivision 9; 124D.09, subdivision 23; 1.20125A.16; 125A.80; 127A.47, subdivision 2; 475.53, subdivision 5.1.21BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:1.22ARTICLE 11.23GENERAL EDUCATION1.24    Section 1. Minnesota Statutes 2010, section 120A.20, subdivision 2, is amended to 1.25read:1.26    Subd. 2. Education and, residence, and transportation of homeless. (a) 1.27Notwithstanding subdivision 1, a district must not deny free admission to a homeless 1.28person of school age pupil solely because the district cannot determine that the person1.29pupil is a resident of the district.2.1(b) The school district of residence for a homeless person of school age pupil2.2shall be the school district in which the homeless shelter or other program, center, or 2.3facility assisting the homeless person is located. The educational services a school 2.4district provides to a homeless person must allow the person to work toward meeting the 2.5graduation standards under section 120B.02. parent or legal guardian resides, unless: (1) 2.6parental rights have been terminated by court order; (2) the parent or guardian is not 2.7living within the state; or (3) the parent or guardian having legal custody of the child is 2.8an inmate of a Minnesota correctional facility or is a resident of a halfway house under 2.9the supervision of the commissioner of corrections. If any of clauses (1) to (3) apply, the 2.10school district of residence shall be the school district in which the pupil resided when the 2.11qualifying event occurred. If no other district of residence can be established, the school 2.12district of residence shall be the school district in which the pupil currently resides. If 2.13there is a dispute between school districts regarding residency, the district of residence is 2.14the district designated by the commissioner of education.2.15(c) The serving district is responsible for transporting a homeless pupil to and from 2.16the pupil's district of residence. The district may transport from a permanent home in 2.17another district but only through the end of the academic school year. When a pupil is 2.18enrolled in a charter school, the district or school that provides transportation for other 2.19pupils enrolled in the charter school is responsible for providing transportation. When a 2.20homeless student with or without an individualized education program attends a public 2.21school other than an independent or special school district or charter school, the district of 2.22residence is responsible for transportation.2.23    Sec. 2. Minnesota Statutes 2010, section 120A.22, subdivision 11, is amended to read:2.24    Subd. 11. Assessment of performance. (a) Each year the performance of every 2.25child ages seven through 16 who is not enrolled in a public school must be assessed using 2.26a nationally norm-referenced standardized achievement examination. The superintendent 2.27of the district in which the child receives instruction and the person in charge of the child's 2.28instruction must agree about the specific examination to be used and the administration 2.29and location of the examination.2.30(b) To the extent the examination in paragraph (a) does not provide assessment in 2.31all of the subject areas in subdivision 9, the parent must assess the child's performance 2.32in the applicable subject area. This requirement applies only to a parent who provides 2.33instruction and does not meet the requirements of subdivision 10, clause (1), (2), or (3).2.34(c) If the results of the assessments in paragraphs (a) and (b) indicate that the 2.35child's performance on the total battery score is at or below the 30th percentile or one 3.1grade level below the performance level for children of the same age, the parent must 3.2obtain additional evaluation of the child's abilities and performance for the purpose of 3.3determining whether the child has learning problems.3.4(d) A child receiving instruction from a nonpublic school, person, or institution that 3.5is accredited by an accrediting agency, recognized according to section 
         123B.445, or 3.6recognized by the commissioner, is exempt from the requirements of this subdivision.3.7    Sec. 3. Minnesota Statutes 2011 Supplement, section 120A.24, subdivision 1, is 3.8amended to read:3.9    Subdivision 1. Reports to superintendent. (a) The person or nonpublic school in 3.10charge of providing instruction to a child must submit to the superintendent of the district 3.11in which the child resides the name, birth date, and address of the child; the annual tests 3.12intended to be used under section 
         120A.22, subdivision 11, if required; the name of each 3.13instructor; and evidence of compliance with one of the requirements specified in section 3.14120A.22, subdivision 10
         :3.15(1) by October 1 of the first school year the child receives instruction after reaching 3.16the age of seven;3.17(2) within 15 days of when a parent withdraws a child from public school after age 3.18seven to homeschool provide instruction in a nonpublic school that is not accredited 3.19by a state-recognized accredited agency;3.20(3) within 15 days of moving out of a district; and3.21(4) by October 1 after a new resident district is established.3.22(b) The person or nonpublic school in charge of providing instruction to a child 3.23between the ages of seven and 16 must submit, by October 1 of each school year, a letter 3.24of intent to continue to provide instruction under this section for all students under the 3.25person's or school's supervision and any changes to the information required in paragraph 3.26(a) for each student.3.27(c) The superintendent may collect the required information under this section 3.28through an electronic or Web-based format, but must not require electronic submission 3.29of information under this section from the person in charge of reporting under this 3.30subdivision.3.31    Sec. 4. Minnesota Statutes 2011 Supplement, section 120B.07, is amended to read:3.32120B.07 EARLY GRADUATION.3.33(a) Notwithstanding any law to the contrary, any secondary school student who has 3.34completed all required courses or standards may, with the approval of the student, the 4.1student's parent or guardian, and local school officials, graduate before the completion 4.2of the school year.4.3(b) General education revenue attributable to the student must be paid as though 4.4the student was in attendance for the entire year unless the student participates in the 4.5early graduation achievement scholarship program under section 120B.08 or the early 4.6graduation military service award program under section 120B.09.4.7EFFECTIVE DATE.This section is effective for fiscal year 2012 and later.4.8    Sec. 5. Minnesota Statutes 2011 Supplement, section 120B.08, is amended to read:4.9120B.08 EARLY GRADUATION ACHIEVEMENT SCHOLARSHIP 4.10PROGRAM.4.11    Subdivision 1. Participation. A student who qualifies for early graduation under 4.12section 
         120B.07, who meets the criteria in subdivision 1a and who has not participated in 4.13the early graduation military service award program under section 120B.09,  is eligible to 4.14participate in the early graduation achievement scholarship program.4.15    Subd. 1a.Eligible student.For purposes of this section, an eligible student is a 4.16secondary student enrolled in a Minnesota public school who, at the time of graduation, 4.17generated Minnesota general education revenue and who graduates prior to the end of the 4.18fourth school year after first enrolling in ninth grade.4.19    Subd. 2. Scholarship amounts. A student who participates in the early graduation 4.20achievement scholarship program is eligible for a scholarship of $2,500 if the student 4.21qualifies for graduationgraduates one semester or two trimesters early, $5,000 if the 4.22student qualifies for graduationgraduates two semesters or three or four trimesters early, 4.23or $7,500 if the student qualifies for graduationgraduates three or more semesters or 4.24five or more trimesters early. Participation in the optional summer term, extended day 4.25sessions, and intersessions of a state-approved learning year program under section 4.26124D.128 are considered a quarter for purposes of computing scholarship amounts.4.27    Subd. 3. Scholarship uses. An early graduation achievement scholarship may be 4.28used at any accredited institution of higher education accredited by an accrediting agency 4.29recognized by the United States Department of Education.4.30    Subd. 4. Application. A qualifying student may apply to the commissioner of 4.31education for an early graduation achievement scholarship. The application must be in 4.32the form and manner specified by the commissioner. Upon verification of the qualifying 4.33student's course completion necessary for graduation, the department must issue the 4.34student a certificate showing the student's scholarship amount.5.1    Subd. 5. Enrollment verification. A student who qualifies under this section 5.2and enrolls in an accredited higher education institution must submit a form to the 5.3commissioner verifying the student's enrollment in the higher education institution and the 5.4tuition charges for that semester. Within 1545 days of receipt of a student's enrollment 5.5and tuition verification form, the commissioner must issue a scholarship check to the 5.6studenthigher education institution in the lesser of the tuition amount for that semester 5.7or the maximum amount of the student's early graduation achievement scholarship. A 5.8student may continue to submit enrollment verification forms to the commissioner until 5.9the student has used the full amount of the student's graduation achievement scholarship or 5.10six years from the date of the student's graduation, whichever occurs first. The scholarship 5.11cannot be renewed.5.12    Subd. 6. General education money transferred. The commissioner must transfer 5.13the amounts necessary to fund the early graduation achievement scholarships from the 5.14general education aid appropriation for that year.5.15EFFECTIVE DATE.This section is effective for fiscal year 2012 and later.5.16    Sec. 6. Minnesota Statutes 2011 Supplement, section 120B.09, is amended to read:5.17120B.09 EARLY GRADUATION MILITARY SERVICE AWARD PROGRAM.5.18    Subdivision 1. Eligibility. For purposes of this section, "eligible person" means a 5.19secondary student enrolled in any Minnesota public school who, at the time of graduation, 5.20generated Minnesota general education revenue, who  qualifies for early graduation under 5.21section 
         120B.07, who graduated prior to the end of the fourth school year after first 5.22enrolling in ninth grade, who has not participated in the early graduation achievement 5.23scholarship program under section 120B.08,  and who, before the end of the calendar 5.24year of the student's graduation, enters into active service in either the active or reserve 5.25component of the United States armed forces and deploys for 60 days or longer to a 5.26military base or installation outside Minnesota for the purpose of attending basic military 5.27training or military school and, if required by the military, performing other military duty. 5.28The active service may be in accordance with United States Code, title 10 or title 32.5.29    Subd. 2. Application. An eligible person may apply to the commissioner of 5.30education for an early graduation military service bonus. The application must be in the 5.31form and manner specified by the commissioner and must be received at the department 5.32within two calendar years of the date of graduation.5.33    Subd. 3. Verification and award.The request for payment must be received at 5.34the department by the end of the second fiscal year following the date of the student's 6.1graduation. Upon verification of the qualifying student's course completion necessary for 6.2graduation and eligibility for the military service bonus, the commissioner must issue 6.3payment to that person. Payment amounts must be determined according to section 6.4120B.08, subdivision 2
         . Once the original amount of the award has been paid, it cannot be 6.5renewed.6.6EFFECTIVE DATE.This section is effective for fiscal year 2012 and later.6.7    Sec. 7. Minnesota Statutes 2010, section 122A.415, subdivision 3, is amended to read:6.8    Subd. 3. Revenue timing. (a) Districts, intermediate school districts, school sites, 6.9or charter schools with approved applications must receive alternative compensation 6.10revenue for each school year that the district, intermediate school district, school site, 6.11or charter school implements an alternative teacher professional pay system under this 6.12subdivision and section 
         122A.414. For fiscal year 2007 and later, a qualifying district, 6.13intermediate school district, school site, or charter school that received alternative teacher 6.14compensation aid for the previous fiscal year must receive at least an amount of alternative 6.15teacher compensation revenue equal to the lesser of the amount it received for the previous 6.16fiscal year or the amount it qualifies for under subdivision 1 for the current fiscal year if 6.17the district, intermediate school district, school site, or charter school submits a timely 6.18application and the commissioner determines that the district, intermediate school district, 6.19school site, or charter school continues to implement an alternative teacher professional 6.20pay system, consistent with its application under this section.6.21(b) The commissioner shall approve applications that comply with subdivision 1, 6.22and section 
         122A.414, subdivisions 2, paragraph (b), and 2a, if the applicant is a charter 6.23school, in the order in which they are received, select applicants that qualify for this 6.24program, notify school districts, intermediate school districts, school sites, and charter 6.25schools about the program, develop and disseminate application materials, and carry out 6.26other activities needed to implement this section.6.27(c) For applications approved under this section before August 1 of the fiscal year for 6.28which the aid is paid, the portion of the state total basic alternative teacher compensation 6.29aid entitlement allocated to charter schools must not exceed $522,000 for fiscal year 2006 6.30and $3,374,000 for fiscal year 2007. For fiscal year 2008 and later, the portion of the state 6.31total basic alternative teacher compensation aid entitlement allocated to charter schools 6.32must not exceed the product of $3,374,000 times the ratio of the state total charter school 6.33enrollment for the previous fiscal year to the state total charter school enrollment for the 6.34second previous fiscal year 2007. Additional basic alternative teacher compensation aid 6.35may be approved for charter schools after August 1, not to exceed the charter school limit 7.1for the following fiscal year, if the basic alternative teacher compensation aid entitlement 7.2for school districts based on applications approved by August 1 does not expend the 7.3remaining amount under the limit.7.4    Sec. 8. Minnesota Statutes 2010, section 123B.92, subdivision 3, is amended to read:7.5    Subd. 3. Alternative attendance programs. (a) A district that enrolls nonresident 7.6pupils in programs under sections
          123A.05 to 
         123A.08, 
         124D.03, 
         124D.08, and 
         124D.68, 7.7must provide authorized transportation to the pupil within the attendance area for the 7.8school that the pupil attends at the same level of service that is provided to resident pupils 7.9within the attendance area. The resident district need not provide or pay for transportation 7.10between the pupil's residence and the district's border.7.11    (b) A district may provide transportation to allow a student who attends a high-need 7.12English language learner program and who resides within the transportation attendance 7.13area of the program to continue in the program until the student completes the highest 7.14grade level offered by the program.7.15(c) A homeless nonresident pupil enrolled under section 124D.08, subdivision 2a, 7.16must be provided transportation from the pupil's district of residence to and from the 7.17school of enrollment.7.18    Sec. 9. Minnesota Statutes 2010, section 124D.08, is amended by adding a subdivision 7.19to read:7.20    Subd. 2a.Continued enrollment for homeless students.Notwithstanding 7.21subdivision 2, a pupil who has been enrolled in a district, who is identified as homeless, 7.22and whose parent or legal guardian moves to another district, may continue to enroll in 7.23the nonresident district without the approval of the board of the nonresident district. The 7.24approval of the board of the pupil's resident district is not required.7.25    Sec. 10. Minnesota Statutes 2010, section 124D.09, is amended by adding a 7.26subdivision to read:7.27    Subd. 5a.Authorization; career or technical education.A 10th, 11th, or 12th 7.28grade pupil enrolled in a district or an American Indian-controlled tribal contract or grant 7.29school eligible for aid under section 124D.83, except a foreign exchange pupil enrolled in 7.30a district under a cultural exchange program, may enroll in a career or technical education 7.31course offered by a Minnesota state college or university. A 10th grade pupil applying 7.32for enrollment in a career or technical education course under this subdivision must 7.33have received a passing score on the 8th grade Minnesota Comprehensive Assessment 8.1in reading as a condition of enrollment. A secondary pupil may enroll in their first 8.2postsecondary options enrollment course under this subdivision. A student who is refused 8.3enrollment by a Minnesota state college or university under this subdivision, may apply 8.4to an eligible institution offering a career or technical education course or a college or 8.5university registered under chapter 136A by the Office of Higher Education that is eligible 8.6to receive state student aid. The postsecondary institution must give priority to its students 8.7according to subdivision 9. If a secondary student receives a grade of "C" or better in the 8.8career or technical education course taken under this subdivision, the postsecondary 8.9institution must allow the student to take additional secondary courses at that institution, 8.10not to exceed the limits in subdivision 8. A "career or technical course" is a course that is 8.11part of a career and technical education program that provides individuals with coherent, 8.12rigorous content aligned with academic standards and relevant technical knowledge 8.13and skills needed to prepare for further education and careers in current and emerging 8.14professions and provide technical skill proficiency, an industry recognized credential, and 8.15a certificate, diploma, or an associate degree.8.16    Sec. 11. Minnesota Statutes 2011 Supplement, section 124D.09, subdivision 7, is 8.17amended to read:8.18    Subd. 7. Dissemination of information; notification of intent to enroll. By March 8.191 of each year, a district must provide general information about the program to all pupils 8.20in grades 8, 9, 10, and 11. To assist the district in planning, a pupil shall inform the district 8.21by MarchMay 30 of each year of the pupil's intent to enroll in postsecondary courses 8.22during the following school year. A pupil is not bound by notifying or not notifying the 8.23district by MarchMay 30.8.24    Sec. 12. Minnesota Statutes 2010, section 124D.09, subdivision 9, is amended to read:8.25    Subd. 9. Enrollment priority. A postsecondary institution shall give priority to its 8.26postsecondary students when enrolling 10th, 11th, and 12th grade pupils in its courses. 8.27A postsecondary institution may provide information about its programs to a secondary 8.28school or to a pupil or parent, but it may not advertise or otherwise recruit or solicit 8.29the participation of secondary pupils to enroll in its programs on financial grounds. 8.30An institution must not enroll secondary pupils, for postsecondary enrollment options 8.31purposes, in remedial, developmental, or other courses that are not college level. Once a 8.32pupil has been enrolled in a postsecondary course under this section, the pupil shall not 8.33be displaced by another student.9.1    Sec. 13. Minnesota Statutes 2010, section 124D.09, subdivision 12, is amended to read:9.2    Subd. 12. Credits.A pupil may enroll in a course under this section for either 9.3secondary credit or postsecondary credit. At the time a pupil enrolls in a course, the pupil 9.4shall designate whether the course is for secondary or postsecondary credit. A pupil taking 9.5several courses may designate some for secondary credit and some for postsecondary 9.6credit. A pupil must not audit a course under this section.9.7A district shall grant academic credit to a pupil enrolled in a course for secondary 9.8credit if the pupil successfully completes the course. Seven quarter or four semester 9.9college credits equal at least one full year of high school credit. Fewer college credits may 9.10be prorated. A district must also grant academic credit to a pupil enrolled in a course for 9.11postsecondary credit if secondary credit is requested by a pupil. If no comparable course is 9.12offered by the district, the district must, as soon as possible, notify the commissioner, who 9.13shall determine the number of credits that shall be granted to a pupil who successfully 9.14completes a course. If a comparable course is offered by the district, the school board 9.15shall grant a comparable number of credits to the pupil. If there is a dispute between the 9.16district and the pupil regarding the number of credits granted for a particular course, the 9.17pupil may appeal the board's decision to the commissioner. The commissioner's decision 9.18regarding the number of credits shall be final.9.19The secondary credits granted to a pupil must be counted toward the graduation 9.20requirements and subject area requirements of the district. Evidence of successful 9.21completion of each course and secondary credits granted must be included in the pupil's 9.22secondary school record. A pupil shall provide the school with a copy of the pupil's grade 9.23in each course taken for secondary credit under this section. Upon the request of a pupil, 9.24the pupil's secondary school record must also include evidence of successful completion 9.25and credits granted for a course taken for postsecondary credit. In either case, the record 9.26must indicate that the credits were earned at a postsecondary institution.9.27If a pupil enrolls in a postsecondary institution after leaving secondary school, the 9.28postsecondary institution must award postsecondary credit for any course successfully 9.29completed for secondary credit at that institution. Other postsecondary institutions may 9.30award, after a pupil leaves secondary school, postsecondary credit for any courses 9.31successfully completed under this section. An institution may not charge a pupil for 9.32the award of credit.9.33The Board of Trustees of the Minnesota State Colleges and Universities and 9.34the Board of Regents of the University of Minnesota must, and private nonprofit and 9.35proprietary postsecondary institutions should, award postsecondary credit for any 9.36successfully completed courses in a program certified by the National Alliance of 10.1Concurrent Enrollment Partnerships offered according to an agreement under subdivision 10.210.10.3    Sec. 14. Minnesota Statutes 2010, section 124D.09, subdivision 13, is amended to read:10.4    Subd. 13. Financial arrangements. For a pupil enrolled in a course under this 10.5section, the department must make payments according to this subdivision for courses that 10.6were taken for secondary credit.10.7The department must not make payments to a school district or postsecondary 10.8institution for a course taken for postsecondary credit only. The department must not 10.9make payments to a postsecondary institution for a course from which a student officially 10.10withdraws during the first 14 days of the quarter or semester or who has been absent from 10.11the postsecondary institution for the first 15 consecutive school days of the quarter or 10.12semester and is not receiving instruction in the home or hospital.10.13A postsecondary institution, including a college or university under subdivision 5a,10.14shall receive the following:10.15(1) for an institution granting quarter credit, the reimbursement per credit hour shall 10.16be an amount equal to 88 percent of the product of the formula allowance minus $415, 10.17multiplied by 1.3, and divided by 45; or10.18(2) for an institution granting semester credit, the reimbursement per credit hour 10.19shall be an amount equal to 88 percent of the product of the general revenue formula 10.20allowance minus $415, multiplied by 1.3, and divided by 30.10.21The department must pay to each postsecondary institution 100 percent of the 10.22amount in clause (1) or (2) within 30 days of receiving initial enrollment information 10.23each quarter or semester. If changes in enrollment occur during a quarter or semester, 10.24the change shall be reported by the postsecondary institution at the time the enrollment 10.25information for the succeeding quarter or semester is submitted. At any time the 10.26department notifies a postsecondary institution that an overpayment has been made, the 10.27institution shall promptly remit the amount due.10.28    Sec. 15. Minnesota Statutes 2010, section 124D.09, subdivision 24, is amended to read:10.29    Subd. 24. Limit; state obligation. The provisions of subdivisions 13, 19, and 10.3022, and 23 shall not apply for any postsecondary courses in which a pupil is enrolled in 10.31addition to being enrolled full time in that pupil's district or for any postsecondary course 10.32in which a pupil is enrolled for postsecondary credit. The pupil is enrolled full time if 10.33the pupil attends credit-bearing classes in the high school or high school program for 10.34all of the available hours of instruction.11.1EFFECTIVE DATE.This section is effective for the 2012-2013 school year and 11.2later.11.3    Sec. 16. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 8, is 11.4amended to read:11.5    Subd. 8. Federal, state, and local requirements. (a) A charter school shall meet all 11.6federal, state, and local health and safety requirements applicable to school districts.11.7    (b) A school must comply with statewide accountability requirements governing 11.8standards and assessments in chapter 120B.11.9    (c) A school authorized by a school board may be located in any district, unless the 11.10school board of the district of the proposed location disapproves by written resolution.11.11    (d) A charter school must be nonsectarian in its programs, admission policies, 11.12employment practices, and all other operations. An authorizer may not authorize a charter 11.13school or program that is affiliated with a nonpublic sectarian school or a religious 11.14institution. A charter school student must be released for religious instruction, consistent 11.15with section 
         120A.22, subdivision 12, clause (3).11.16    (e) Charter schools must not be used as a method of providing education or 11.17generating revenue for students who are being home-schooled. This paragraph does not 11.18apply to shared time aid, under section 126C.19.11.19    (f) The primary focus of a charter school must be to provide a comprehensive 11.20program of instruction for at least one grade or age group from five through 18 years 11.21of age. Instruction may be provided to people younger than five years and older than 11.2218 years of age.11.23    (g) A charter school may not charge tuition.11.24    (h) A charter school is subject to and must comply with chapter 363A and section 11.25121A.04
         .11.26    (i) A charter school is subject to and must comply with the Pupil Fair Dismissal 11.27Act, sections 
         121A.40 to 
         121A.56, and the Minnesota Public School Fee Law, sections 11.28123B.34
          to 
         123B.39.11.29    (j) A charter school is subject to the same financial audits, audit procedures, and 11.30audit requirements as a district. Audits must be conducted in compliance with generally 11.31accepted governmental auditing standards, the federal Single Audit Act, if applicable, 11.32and section 
         6.65. A charter school is subject to and must comply with sections 
         15.054; 11.33118A.01
         ; 
         118A.02; 
         118A.03; 
         118A.04; 
         118A.05; 
         118A.06; 
         471.38; 
         471.391; 
         471.392; and 11.34471.425
         . The audit must comply with the requirements of sections 
         123B.75 to 
         123B.83, 11.35except to the extent deviations are necessary because of the program at the school. 12.1Deviations must be approved by the commissioner and authorizer. The Department of 12.2Education, state auditor, legislative auditor, or authorizer may conduct financial, program, 12.3or compliance audits. A charter school determined to be in statutory operating debt under 12.4sections 
         123B.81 to 
         123B.83 must submit a plan under section 
         123B.81, subdivision 4.12.5    (k) A charter school is a district for the purposes of tort liability under chapter 466.12.6    (l) A charter school must comply with chapters 13 and 13D; and sections 
         120A.22, 12.7subdivision 7
         ; 
         121A.75; and 
         260B.171, subdivisions 3 and 5.12.8    (m) A charter school is subject to the Pledge of Allegiance requirement under 12.9section 
         121A.11, subdivision 3.12.10    (n) A charter school offering online courses or programs must comply with section 12.11124D.095
         .12.12    (o) A charter school and charter school board of directors are subject to chapter 181.12.13    (p) A charter school must comply with section 
         120A.22, subdivision 7, governing 12.14the transfer of students' educational records and sections 
         138.163 and 
         138.17 governing 12.15the management of local records.12.16    (q) A charter school that provides early childhood health and developmental 12.17screening must comply with sections 
         121A.16 to 
         121A.19.12.18(r) A charter school that provides school-sponsored youth athletic activities must 12.19comply with section 121A.38.12.20    Sec. 17. Minnesota Statutes 2011 Supplement, section 126C.126, is amended to read:12.21126C.126 REALLOCATING GENERAL EDUCATION REVENUE FOR 12.22ALL-DAY KINDERGARTEN AND PREKINDERGARTEN.12.23    (a) In order to provide additional revenue for an optional all-day kindergarten 12.24program, a district may reallocate general education revenue attributable to 12th grade 12.25students who have graduated early under section 120B.07 and who do not participate in 12.26the early graduation achievement scholarship program under section 120B.08 or the early 12.27graduation military service award program under section 120B.09.12.28    (b) A school district may spend general education revenue on extended time 12.29kindergarten and prekindergarten programs.12.30    Sec. 18. Minnesota Statutes 2010, section 126C.19, subdivision 2, is amended to read:12.31    Subd. 2. Exception. Notwithstanding subdivision 1, the resident district of a shared 12.32time pupil attending shared time classes in another district may or a charter school must 12.33 grant the district or charter school of attendance, upon its request, permission to claim 12.34the pupil as a resident for state aid purposes. In this case, state aid must be paid to the 13.1district or charter school of attendance and, upon agreement. If the resident district agrees, 13.2the district of attendance may bill the resident district for any unreimbursed education 13.3costs, but not for unreimbursed transportation costs. The agreement may, however, 13.4provideresident district and the district or charter school of attendance may negotiate an 13.5agreement for the resident district to pay the cost of any of the particular transportation 13.6categories specified in section 
         123B.92, subdivision 1, and in this case, aid for those 13.7categories must be paid to the district of residence rather than to the district of attendance.13.8EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014 13.9and later.13.10    Sec. 19. Minnesota Statutes 2011 Supplement, section 127A.45, subdivision 6a, 13.11is amended to read:13.12    Subd. 6a. Cash flow adjustment. The board of directors of any charter school 13.13serving fewer than 150 200 students where the percent of students eligible for special 13.14education services equals at least 90 percent of the charter school's total enrollment may 13.15request that the commissioner of education accelerate the school's cash flow under this 13.16section. The commissioner must approve a properly submitted request within 30 days of 13.17its receipt. The commissioner must accelerate the school's regular special education aid 13.18payments according to the schedule in the school's request and modify the payments to the 13.19school under subdivision 3 accordingly. A school must not receive current payments of 13.20regular special education aid exceeding 90 percent of its estimated aid entitlement for the 13.21fiscal year. The commissioner must delay the special education aid payments to all other 13.22school districts and charter schools in proportion to each district or charter school's total 13.23share of regular special education aid such that the overall aid payment savings from the 13.24aid payment shift remains unchanged for any fiscal year.13.25    Sec. 20. Minnesota Statutes 2010, section 127A.47, subdivision 1, is amended to read:13.26    Subdivision 1. Aid to serving district. (a) Unless otherwise specifically provided 13.27by law, general education aid must be paid according to this subdivision.13.28(b) Except as provided in paragraph (c), general education aid must be paid to the 13.29serving district.13.30(c) If the resident district pays tuition for a pupil under section 
         123A.18, 
         123A.22, 13.31123A.30
         , 
         123A.32, 
         123A.44, 
         123A.488, 
         123B.88, subdivision 4, 
         124D.04, 
         124D.05, 13.32125A.03
          to 
         125A.24, 
         125A.51, or 
         125A.65, general education aid, excluding basic skills 13.33revenue under section 
         126C.10, subdivision 4, must be paid to the resident district. For 13.34a student enrolled under section 124D.08, subdivision 2a, that is enrolled in other than 14.1an independent or special school district or charter school, the general education revenue 14.2shall be paid to the resident district.14.3    Sec. 21. Minnesota Statutes 2010, section 135A.101, subdivision 1, is amended to read:14.4    Subdivision 1. Requirements for participation. To participate in the postsecondary 14.5enrollment options program, a college or university must abide by the provisions in this 14.6section. The institution may provide information about its programs to a secondary school 14.7or to a pupil or parent, but may not recruit or solicit participation on financial grounds.14.8    Sec. 22. POSTSECONDARY ENROLLMENT OPTION APPROPRIATION 14.9ADJUSTMENT.14.10Notwithstanding Minnesota Statutes, section 124D.09, for fiscal year 2013 only, the 14.11commissioner must limit the appropriation paid in the postsecondary enrollment option 14.12program that is attributable to tenth grade students enrolling in career and technical classes 14.13to the amount generated under Minnesota Statutes, section 124D.09, subdivision 13, 14.14clause (1) or (2), multiplied times 0.55.14.15EFFECTIVE DATE.This section is effective for revenue for fiscal year 2013 only.14.16    Sec. 23. APPROPRIATION ADJUSTMENTS.14.17Notwithstanding Laws 2011, First Special Session chapter 11, the commissioner 14.18shall adjust appropriations made to the Department of Education in that act for the effects 14.19of statutory changes made in this act. Where appropriate, the amounts necessary to fulfill 14.20the requirements of this section are appropriated from the general fund.14.21    Sec. 24. REVISOR'S INSTRUCTION.14.22In Minnesota Statutes and Rules, the revisor of statutes shall substitute the terms 14.23"English learner," "EL," or similar term for "limited English proficient," "English language 14.24learner," "LEP," "ELL," or similar term when referring to early childhood through grade 12 14.25education. The revisor shall also make grammatical changes related to the changes in term.14.26    Sec. 25.  REPEALER.14.27(a) Minnesota Statutes 2010, section 124D.09, subdivision 23, is repealed effective 14.28for the 2012-2013 school year and later.14.29(b) Minnesota Statutes 2010, section 127A.47, subdivision 2, is repealed.15.1ARTICLE 215.2EDUCATION EXCELLENCE15.3    Section 1. Minnesota Statutes 2010, section 120A.22, subdivision 2, is amended to 15.4read:15.5    Subd. 2. Applicability. This section and sections 
         120A.24; 
         120A.26; 
         120A.28;15.6120A.30
         ; 
         120A.32; and 
         120A.34 apply only to a child required to receive instruction 15.7according to subdivision 5 and to instruction that is intended to fulfill that requirement.15.8    Sec. 2. Minnesota Statutes 2011 Supplement, section 120B.023, subdivision 2, is 15.9amended to read:15.10    Subd. 2. Revisions and reviews required. (a) The commissioner of education must 15.11revise and appropriately embed technology and information literacy standards consistent 15.12with recommendations from school media specialists into the state's academic standards 15.13and graduation requirements and implement a review cycle for state academic standards 15.14and related benchmarks, consistent with this subdivision. During each review cycle, the 15.15commissioner also must examine the alignment of each required academic standard and 15.16related benchmark with the knowledge and skills students need for college readiness and 15.17advanced work in the particular subject area.15.18(b) The commissioner in the 2006-2007 school year must revise and align the state's 15.19academic standards and high school graduation requirements in mathematics to require 15.20that students satisfactorily complete the revised mathematics standards, beginning in the 15.212010-2011 school year. Under the revised standards:15.22(1) students must satisfactorily complete an algebra I credit by the end of eighth 15.23grade; and15.24(2) students scheduled to graduate in the 2014-2015 school year or later must 15.25satisfactorily complete an algebra II credit or its equivalent.15.26The commissioner also must ensure that the statewide mathematics assessments 15.27administered to students in grades 3 through 8 and 11 are aligned with the state academic 15.28standards in mathematics, consistent with section 
         120B.30, subdivision 1, paragraph 15.29(b). The commissioner must implement a review of the academic standards and related 15.30benchmarks in mathematics beginning in the 2015-2016 school year.15.31(c) The commissioner in the 2007-2008 school year must revise and align the state's 15.32academic standards and high school graduation requirements in the arts to require that 15.33students satisfactorily complete the revised arts standards beginning in the 2010-2011 16.1school year. The commissioner must implement a review of the academic standards and 16.2related benchmarks in arts beginning in the 2016-2017 school year.16.3(d) The commissioner in the 2008-2009 school year must revise and align the state's 16.4academic standards and high school graduation requirements in science to require that 16.5students satisfactorily complete the revised science standards, beginning in the 2011-2012 16.6school year. Under the revised standards, students scheduled to graduate in the 2014-2015 16.7school year or later must satisfactorily complete a chemistry, physics, or career and 16.8technical education credit that meets the standards underlying either utilizes standards 16.9associated with the chemistry or, physics, or biology credit or a combination thereof. The 16.10commissioner must implement a review of the academic standards and related benchmarks 16.11in science beginning in the 2017-2018 school year.16.12(e) The commissioner in the 2009-2010 school year must revise and align the state's 16.13academic standards and high school graduation requirements in language arts to require 16.14that students satisfactorily complete the revised language arts standards beginning in the 16.152012-2013 school year. The commissioner must implement a review of the academic 16.16standards and related benchmarks in language arts beginning in the 2018-2019 school year.16.17(f) The commissioner in the 2010-2011 school year must revise and align the state's 16.18academic standards and high school graduation requirements in social studies to require 16.19that students satisfactorily complete the revised social studies standards beginning in the 16.202013-2014 school year. The commissioner must implement a review of the academic 16.21standards and related benchmarks in social studies beginning in the 2019-2020 school year.16.22(g) School districts and charter schools must revise and align local academic 16.23standards and high school graduation requirements in health, world languages, and career 16.24and technical education to require students to complete the revised standards beginning 16.25in a school year determined by the school district or charter school. School districts and 16.26charter schools must formally establish a periodic review cycle for the academic standards 16.27and related benchmarks in health, world languages, and career and technical education.16.28    Sec. 3. Minnesota Statutes 2010, section 120B.024, is amended to read:16.29120B.024 GRADUATION REQUIREMENTS; COURSE CREDITS.16.30    (a) Students beginning 9th grade in the 2004-2005 school year and later must 16.31successfully complete the following high school level course credits for graduation:16.32    (1) four credits of language arts;16.33    (2) three credits of mathematics, encompassing at least algebra, geometry, statistics, 16.34and probability sufficient to satisfy the academic standard;16.35    (3) three credits of science, including at least one credit in biology;17.1    (4) three and one-half credits of social studies, encompassing at least United 17.2States history, geography, government and citizenship, world history, and economics or 17.3three credits of social studies encompassing at least United States history, geography, 17.4government and citizenship, and world history, and one-half credit of economics taught in 17.5a school's social studies, agriculture education, or business department;17.6    (5) one credit in the arts; and17.7    (6) a minimum of seven elective course credits.17.8    A course credit is equivalent to a student successfully completing an academic 17.9year of study or a student mastering the applicable subject matter, as determined by the 17.10local school district.17.11    (b) An agriculture science course may fulfill a science credit requirement in addition 17.12to the specified science credits in biology and chemistry or physics under paragraph (a), 17.13clause (3), and paragraph (d).17.14    (c) A career and technical education course may fulfill a science, mathematics, or 17.15arts credit requirement in addition to the specified science, mathematics, or arts credits 17.16under paragraph (a), clause (2), (3), or (5), and paragraph (d).17.17(d) Students scheduled to graduate in the 2014-2015 school year and later must 17.18successfully complete a chemistry or physics credit.17.19    Sec. 4. Minnesota Statutes 2011 Supplement, section 120B.12, subdivision 2, is 17.20amended to read:17.21    Subd. 2. Identification; report. For the 2011-2012 school year and later, each 17.22school district shall identify before the end of kindergarten, grade 1, and grade 2 students 17.23who are not reading at grade level before the end of the current school year. Reading 17.24assessments must identify and evaluate students' areas of academic need related to 17.25literacy. The district must use a locally adopted assessment and annually report summary 17.26assessment results to the commissioner by JuneJuly 1.17.27    Sec. 5. Minnesota Statutes 2010, section 120B.13, subdivision 1, is amended to read:17.28    Subdivision 1. Program structure; training programs for teachers.(a) The 17.29advanced placement and international baccalaureate programs are well-established 17.30academic programs for mature, academically directed high school students. These 17.31programs, in addition to providing academic rigor, offer sound curricular design, 17.32accountability, comprehensive external assessment, feedback to students and teachers, 17.33and the opportunity for high school students to compete academically on a global level. 17.34Advanced placement and international baccalaureate programs allow students to leave 18.1high school with the academic skills and self-confidence to succeed in college and 18.2beyond. The advanced placement and international baccalaureate programs help provide 18.3Minnesota students with world-class educational opportunity.18.4(b) Critical to schools' educational success is ongoing advanced 18.5placement/international baccalaureate-approved teacher training. A secondary teacher 18.6assigned by a district to teach an advanced placement or international baccalaureate course 18.7or other interested educator may participate in a training program offered by The College 18.8Board or International Baccalaureate North America, Inc. The state may pay a portion 18.9of the tuition, room, board, and out-of-state travel costs a teacher or other interested 18.10educator incurs in participating in a training program. The commissioner shall determine 18.11application procedures and deadlines, select teachers and other interested educators to 18.12participate in the training program, and determine the payment process and amount of the 18.13subsidy. The procedures determined by the commissioner shall, to the extent possible, 18.14ensure that advanced placement and international baccalaureate courses become available 18.15in all parts of the state and that a variety of course offerings are available in school districts. 18.16This subdivision does not prevent teacher or other interested educator participation in 18.17training programs offered by The College Board or International Baccalaureate North 18.18America, Inc., when tuition is paid by a source other than the state.18.19    Sec. 6. Minnesota Statutes 2011 Supplement, section 120B.30, subdivision 1, is 18.20amended to read:18.21    Subdivision 1. Statewide testing.  (a) The commissioner, with advice from experts 18.22with appropriate technical qualifications and experience and stakeholders, consistent with 18.23subdivision 1a, shall include in the comprehensive assessment system, for each grade 18.24level to be tested, state-constructed tests developed from and aligned with the state's 18.25required academic standards under section 
         120B.021, include multiple choice questions, 18.26and be administered annually to all students in grades 3 through 8. State-developed high 18.27school tests aligned with the state's required academic standards under section 
         120B.021 18.28and administered to all high school students in a subject other than writing must include 18.29multiple choice questions. The commissioner shall establish one or more months during 18.30which schools shall administer the tests to students each school year. For students enrolled 18.31in grade 8 before the 2005-2006 school year, Minnesota basic skills tests in reading, 18.32mathematics, and writing shall fulfill students' basic skills testing requirements for a 18.33passing state notation. The passing scores of basic skills tests in reading and mathematics 18.34are the equivalent of 75 percent correct for students entering grade 9 based on the 18.35first uniform test administered in February 1998. Students who have not successfully 19.1passed a Minnesota basic skills test by the end of the 2011-2012 school year must pass 19.2the graduation-required assessments for diploma under paragraph (c), except that for 19.3the 2012-2013 and 2013-2014 school years only, these students may satisfy the state's 19.4graduation test requirement for math by complying with paragraph (d), clauses (1) and (3).19.5(b) The state assessment system must be aligned to the most recent revision of 19.6academic standards as described in section 
         120B.023 in the following manner:19.7(1) mathematics;19.8(i) grades 3 through 8 beginning in the 2010-2011 school year; and19.9(ii) high school level beginning in the 2013-2014 school year;19.10(2) science; grades 5 and 8 and at the high school level beginning in the 2011-2012 19.11school year; and19.12(3) language arts and reading; grades 3 through 8 and high school level beginning in 19.13the 2012-2013 school year.19.14    (c) For students enrolled in grade 8 in the 2005-2006 school year and later, only the 19.15following options shall fulfill students' state graduation test requirements:19.16    (1) for reading and mathematics:19.17    (i) obtaining an achievement level equivalent to or greater than proficient as 19.18determined through a standard setting process on the Minnesota comprehensive 19.19assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing 19.20score as determined through a standard setting process on the graduation-required 19.21assessment for diploma in grade 10 for reading and grade 11 for mathematics or 19.22subsequent retests;19.23    (ii) achieving a passing score as determined through a standard setting process on the 19.24state-identified language proficiency test in reading and the mathematics test for English 19.25language learners or the graduation-required assessment for diploma equivalent of those 19.26assessments for students designated as English language learners;19.27    (iii) achieving an individual passing score on the graduation-required assessment for 19.28diploma as determined by appropriate state guidelines for students with an individualized 19.29education program or 504 plan;19.30    (iv) obtaining achievement level equivalent to or greater than proficient as 19.31determined through a standard setting process on the state-identified alternate assessment 19.32or assessments in grade 10 for reading and grade 11 for mathematics for students with 19.33an individualized education program; or19.34    (v) achieving an individual passing score on the state-identified alternate assessment 19.35or assessments as determined by appropriate state guidelines for students with an 19.36individualized education program; and20.1    (2) for writing:20.2    (i) achieving a passing score on the graduation-required assessment for diploma;20.3    (ii) achieving a passing score as determined through a standard setting process on 20.4the state-identified language proficiency test in writing for students designated as English 20.5language learners;20.6    (iii) achieving an individual passing score on the graduation-required assessment for 20.7diploma as determined by appropriate state guidelines for students with an individualized 20.8education program or 504 plan; or20.9    (iv) achieving an individual passing score on the state-identified alternate assessment 20.10or assessments as determined by appropriate state guidelines for students with an 20.11individualized education program.20.12    (d) Students enrolled in grade 8 in any school year from the 2005-2006 school 20.13year to the 2009-2010 school year who do not pass the mathematics graduation-required 20.14assessment for diploma under paragraph (c) are eligible to receive a high school diploma 20.15if they:20.16(1) complete with a passing score or grade all state and local coursework and credits 20.17required for graduation by the school board granting the students their diploma;20.18(2) participate in district-prescribed academic remediation in mathematics; and20.19    (3) fully participate in at least two retests of the mathematics GRAD test or until 20.20they pass the mathematics GRAD test, whichever comes first. A school, district, or charter 20.21school must place on the high school transcript a student's current pass status for each 20.22subject that has a required graduation assessment.20.23In addition, the school board granting the students their diplomas may formally 20.24decide to include a notation of high achievement on the high school diplomas of those 20.25graduating seniors who, according to established school board criteria, demonstrate 20.26exemplary academic achievement during high school.20.27(e) The 3rd through 8th grade and high school test results shall be available to 20.28districts for diagnostic purposes affecting student learning and district instruction and 20.29curriculum, and for establishing educational accountability. The commissioner must 20.30disseminate to the public the high school test results upon receiving those results.20.31    (f) The 3rd through 8th grade and high school tests must be aligned with state 20.32academic standards. The commissioner shall determine the testing process and the order 20.33of administration. The statewide results shall be aggregated at the site and district level, 20.34consistent with subdivision 1a.21.1    (g) In addition to the testing and reporting requirements under this section, the 21.2commissioner shall include the following components in the statewide public reporting 21.3system:21.4    (1) uniform statewide testing of all students in grades 3 through 8 and at the high 21.5school level that provides appropriate, technically sound accommodations or alternate 21.6assessments;21.7    (2) educational indicators that can be aggregated and compared across school 21.8districts and across time on a statewide basis, including average daily attendance, high 21.9school graduation rates, and high school drop-out rates by age and grade level;21.10    (3) state results on the American College Test; and21.11    (4) state results from participation in the National Assessment of Educational 21.12Progress so that the state can benchmark its performance against the nation and other 21.13states, and, where possible, against other countries, and contribute to the national effort 21.14to monitor achievement.21.15    Sec. 7. Minnesota Statutes 2011 Supplement, section 122A.40, subdivision 5, is 21.16amended to read:21.17    Subd. 5. Probationary period. (a) The first three consecutive years of a teacher's 21.18first teaching experience in Minnesota in a single district is deemed to be a probationary 21.19period of employment, and, the probationary period in each district in which the teacher is 21.20thereafter employed shall be one year. The school board must adopt a plan for written 21.21evaluation of teachers during the probationary period that is consistent with subdivision 21.228. Evaluation must occur at least three times periodically throughout each school year 21.23for a teacher performing services during that school year; the first evaluation must occur 21.24within the first 90 days of teaching service. Days devoted to parent-teacher conferences, 21.25teachers' workshops, and other staff development opportunities and days on which a 21.26teacher is absent from school must not be included in determining the number of school 21.27days on which a teacher performs services. Except as otherwise provided in paragraph (b), 21.28during the probationary period any annual contract with any teacher may or may not be 21.29renewed as the school board shall see fit. However, the board must give any such teacher 21.30whose contract it declines to renew for the following school year written notice to that 21.31effect before June July 1. If the teacher requests reasons for any nonrenewal of a teaching 21.32contract, the board must give the teacher its reason in writing, including a statement 21.33that appropriate supervision was furnished describing the nature and the extent of such 21.34supervision furnished the teacher during the employment by the board, within ten days 21.35after receiving such request. The school board may, after a hearing held upon due notice, 22.1discharge a teacher during the probationary period for cause, effective immediately, 22.2under section 
         122A.44.22.3(b) A board must discharge a probationary teacher, effective immediately, upon 22.4receipt of notice under section 
         122A.20, subdivision 1, paragraph (b), that the teacher's 22.5license has been revoked due to a conviction for child abuse or sexual abuse.22.6(c) A probationary teacher whose first three years of consecutive employment are 22.7interrupted for active military service and who promptly resumes teaching consistent with 22.8federal reemployment timelines for uniformed service personnel under United States 22.9Code, title 38, section 4312(e), is considered to have a consecutive teaching experience 22.10for purposes of paragraph (a).22.11(d) A probationary teacher must complete at least 120 days of teaching service each 22.12year during the probationary period. Days devoted to parent-teacher conferences, teachers' 22.13workshops, and other staff development opportunities and days on which a teacher is 22.14absent from school do not count as days of teaching service under this paragraph.22.15EFFECTIVE DATE.This section is effective for the 2012-2013 school year and 22.16later.22.17    Sec. 8. [123B.022] PROHIBITIONS ON POLITICAL ACTIVITIES BY PUBLIC 22.18SCHOOL EMPLOYEES.22.19Local school boards shall develop and implement policies to ensure that publicly 22.20funded resources, including, but not limited to, time, materials, equipment, facilities, and 22.21e-mail and other forms of technology used to communicate are not used or authorized 22.22for use by public employees to:22.23(1) advocate the election or defeat of any candidate for elective office;22.24(2) advocate the passage or defeat of any referendum question; or22.25(3) solicit funds for political purposes.22.26The policy also must define appropriate use and times of use of all computers at a 22.27school site with Internet access available for employee use.22.28Such policies shall not prohibit the use of public funds for disseminating factual 22.29information about a proposition appearing on a local ballot, if such information is factual 22.30and does not advocate for or against the proposition.22.31All school districts must make these policies readily accessible to the public.22.32EFFECTIVE DATE.This section is effective six months following final enactment.23.1    Sec. 9. Minnesota Statutes 2010, section 123B.04, is amended to read:23.2123B.04 SITE DECISION-MAKING; INDIVIDUALIZED LEARNING23.3AGREEMENT; OTHER AGREEMENTS.23.4    Subdivision 1. Definition. "Education site" means a separate facility. A program 23.5within a facility or within a district is an education site if the school board recognizes it 23.6as a site.23.7    Subd. 1a.Individualized learning and instruction; improved student 23.8achievement.To promote individualized learning and instruction and improve student 23.9achievement under subdivisions 4 and 4a, a participating school board under this section 23.10must consider how to:23.11(1) assist a school site to adapt instruction to the needs and aptitudes of individual 23.12students, and establish goals and standards for individual students in addition to the state 23.13academic standards applicable to all students;23.14(2) coordinate the pace of instruction and learning with the needs and aptitudes of 23.15individual students at a school site;23.16(3) provide useful data and assist with research in developing and improving 23.17innovative, cost-effective, research-based individualized learning, instruction, and 23.18assessment under this section and section 124D.10;23.19(4) demonstrate and help evaluate instructional alternatives to age-based grade 23.20progression;23.21(5) more effectively motivate students and teachers; and23.22(6) expand use of learning technology to support individualized learning, instruction, 23.23assessment, and achievement.23.24    Subd. 2. Agreement.(a) The school board and a school site may enter into an 23.25agreement under this section solely to develop and implement an individualized learning 23.26and achievement contract under subdivision 4.23.27(a)(b) Upon the request of 60 percent of the licensed employees of a site or a school 23.28site decision-making team, the school board shall enter into discussions to reach an 23.29agreement concerning the governance, management, or control of the school. A school 23.30site decision-making team may include the school principal, teachers in the school or 23.31their designee, other employees in the school, representatives of pupils in the school, or 23.32other members in the community. A school site decision-making team must include at 23.33least one parent of a pupil in the school. For purposes of formation of a new site, a school 23.34site decision-making team may be a team of teachers that is recognized by the board as 23.35a site. The school site decision-making team shall include the school principal or other 23.36person having general control and supervision of the school. The site decision-making 24.1team must reflect the diversity of the education site. At least one-half of the members 24.2shall be employees of the district, unless an employee is the parent of a student enrolled 24.3in the school site, in which case the employee may elect to serve as a parent member of 24.4the site team.24.5(b)(c) School site decision-making agreements must delegate powers, duties, and 24.6broad management responsibilities to site teams and involve staff members, students as 24.7appropriate, and parents in decision making.24.8(c)(d) An agreement shall include a statement of powers, duties, responsibilities, 24.9and authority to be delegated to and within the site.24.10(d)(e) An agreement may include:24.11(1) an achievement contract according to subdivision 4;24.12(2) a mechanism to allow principals, a site leadership team, or other persons having 24.13general control and supervision of the school, to make decisions regarding how financial 24.14and personnel resources are best allocated at the site and from whom goods or services 24.15are purchased;24.16(3) a mechanism to implement parental involvement programs under section 24.17124D.895
          and to provide for effective parental communication and feedback on this 24.18involvement at the site level;24.19(4) a provision that would allow the team to determine who is hired into licensed 24.20and nonlicensed positions;24.21(5) a provision that would allow teachers to choose the principal or other person 24.22having general control;24.23(6) an amount of revenue allocated to the site under subdivision 3; and24.24(7) any other powers and duties determined appropriate by the board.24.25The school board of the district remains the legal employer under clauses (4) and (5). 24.26(e)(f) Any powers or duties not delegated to the school site management team in the 24.27school site management agreement shall remain with the school board.24.28(f)(g) Approved agreements shall be filed with the commissioner. If a school board 24.29denies a request or the school site and school board fail to reach an agreement to enter 24.30into a school site management agreement, the school board shall provide a copy of the 24.31request and the reasons for its denial to the commissioner.24.32(g)(h) A site decision-making grant program is established, consistent with this 24.33subdivision, to allow sites to implement an agreement that at least:24.34(1) notwithstanding subdivision 3, allocates to the site all revenue that is attributable 24.35to the students at that site;25.1(2) includes a provision, consistent with current law and the collective bargaining 25.2agreement in effect, that allows the site team to decide who is selected from within the 25.3district for licensed and nonlicensed positions at the site and to make staff assignments 25.4in the site; and25.5(3) includes a completed performance agreement under subdivision 4.25.6The commissioner shall establish the form and manner of the application for a grant 25.7and annually, at the end of each fiscal year, report to the house of representatives and 25.8senate committees having jurisdiction over education on the progress of the program.25.9    Subd. 3. Revenue and cost allocation. Revenue for a fiscal year received or 25.10receivable by the district shall be allocated to education sites based on the agreement 25.11between the school board and the site decision-making team. Revenue shall remain 25.12allocated to each site until used by the site. The site teams and the board may enter an 25.13agreement that permits the district to provide services and retain the revenue required to 25.14pay for the services provided. The district remains responsible for legally entering into 25.15contracts and expending funds. For the purposes of this subdivision, "allocation" means 25.16that the determination of the use of the revenue shall be under the control of the site. The 25.17district may charge the accounts of each site the actual costs of goods and services from 25.18the general or capital funds attributable to the site.25.19    Subd. 4. Achievement contract. A school board may enter a written education 25.20site achievement contract with each site decision-making team for the purpose of: (1)25.21setting individualized learning performance expectations and achievement measures and 25.22short- and long-term educational goals for each student at that site, including the goals 25.23for improvement in each area of; (2) recognizing each student's educational needs and 25.24aptitudes and levels of academic attainment, whether on grade level or above or below 25.25grade level, so as to improve student performance  through such means as a cost-effective, 25.26research-based formative assessment system designed to promote individualized learning 25.27and assessment; (3) using student performance data to diagnose a student's academic 25.28strengths and weaknesses and indicate to the student's teachers the specific skills and 25.29concepts that need to be introduced to the student and developed through academic 25.30instruction or applied learning, organized by strands within subject areas and linked to 25.31state and local academic standards during the next year, a plan to assist consistent with 25.32the student's short- and long-term educational goals; and (4) assisting the education site 25.33if their progress in achieving student or contract goals are not achieved, and or other 25.34performance expectations and or measures determined agreed to by the board and the site 25.35decision-making team are not realized or implemented.26.1    Subd. 4a.Additional site agreements premised on successful achievement 26.2contracts.A school board that enters into a written education achievement contract 26.3with a school site under subdivision 4 where the student performance data at the site 26.4demonstrate at least three consecutive school years of improved student achievement 26.5consistent with the terms of the achievement contract must seek to establish a similar 26.6achievement contract with other school sites in the district.26.7    Subd. 5. Commissioner's role. The commissioner of education, in consultation 26.8with appropriate educational organizations, shall:26.9(1) upon request, provide technical support for districts and sites with agreements 26.10under this section;26.11(2) conduct and compile research on the effectiveness of site decision making; and26.12(3) periodically report on and evaluate the effectiveness of site management 26.13agreements on a statewide basis.26.14EFFECTIVE DATE.This section is effective the day following final enactment.26.15    Sec. 10. Minnesota Statutes 2011 Supplement, section 123B.147, subdivision 3, 26.16is amended to read:26.17    Subd. 3. Duties; evaluation. (a) The principal shall provide administrative, 26.18supervisory, and instructional leadership services, under the supervision of the 26.19superintendent of schools of the district and according to the policies, rules, and 26.20regulations of the school board, for the planning, management, operation, and evaluation 26.21of the education program of the building or buildings to which the principal is assigned.26.22(b) To enhance a principal's leadership skills and support and improve teaching 26.23practices, school performance, and student achievement, a district must develop and 26.24implement a performance-based system for annually evaluating school principals assigned 26.25to supervise a school building within the district. The evaluation must be designed 26.26to improve teaching and learning by supporting the principal in shaping the school's 26.27professional environment and developing teacher quality, performance, and effectiveness. 26.28The annual evaluation must:26.29(1) support and improve a principal's instructional leadership, organizational 26.30management, and professional development, and strengthen the principal's capacity in the 26.31areas of instruction, supervision, evaluation, and teacher development;26.32(2) include formative and summative evaluations;26.33(3) be consistent with a principal's job description, a district's long-term plans and 26.34goals, and the principal's own professional multiyear growth plans and goals, all of which 27.1must support the principal's leadership behaviors and practices, rigorous curriculum, 27.2school performance, and high-quality instruction;27.3(4) include on-the-job observations and previous evaluations;27.4(5) allow surveys to help identify a principal's effectiveness, leadership skills and 27.5processes, and strengths and weaknesses in exercising leadership in pursuit of school 27.6success;27.7(6) use longitudinal data on student academic growth as an 35 percent of the27.8evaluation component and incorporate district achievement goals and targets;27.9(7) be linked to professional development that emphasizes improved teaching and 27.10learning, curriculum and instruction, student learning, and a collaborative professional 27.11culture; and27.12(8) for principals not meeting standards of professional practice or other criteria 27.13under this subdivision, implement a plan to improve the principal's performance and 27.14specify the procedure and consequence if the principal's performance is not improved.27.15The provisions of this paragraph are intended to provide districts with sufficient 27.16flexibility to accommodate district needs and goals related to developing, supporting, 27.17and evaluating principals.27.18EFFECTIVE DATE.This section is effective for the 2013-2014 school year and 27.19later.27.20    Sec. 11. Minnesota Statutes 2010, section 124D.09, subdivision 22, is amended to read:27.21    Subd. 22. Transportation.(a) A parent or guardian of a pupil enrolled in a course 27.22for secondary credit may apply to the pupil's district of residence for reimbursement for 27.23transporting the pupil between the secondary school in which the pupil is enrolled or the 27.24pupil's home and the postsecondary institution that the pupil attends. The state shall 27.25provide state aid to a district in an amount sufficient to reimburse the parent or guardian 27.26for the necessary transportation costs when the family's or guardian's income is at or 27.27below the poverty level, as determined by the federal government. The reimbursement 27.28shall be the pupil's actual cost of transportation or 15 cents per mile traveled, whichever 27.29is less. Reimbursement may not be paid for more than 250 miles per week. However, 27.30if the nearest postsecondary institution is more than 25 miles from the pupil's resident 27.31secondary school, the weekly reimbursement may not exceed the reimbursement rate per 27.32mile times the actual distance between the secondary school or the pupil's home and the 27.33nearest postsecondary institution times ten. The state must pay aid to the district according 27.34to this subdivision.28.1(b) A parent or guardian of an alternative pupil enrolled in a course for secondary 28.2credit may apply to the pupil's postsecondary institution for reimbursement for 28.3transporting the pupil between the secondary school in which the pupil is enrolled or the 28.4pupil's home and the postsecondary institution in an amount sufficient to reimburse the 28.5parent or guardian for the necessary transportation costs when the family's or guardian's 28.6income is at or below the poverty level, as determined by the federal government. The 28.7amount of the reimbursement shall be determined as in paragraph (a). The state must pay 28.8aid to the postsecondary institution according to this subdivision.28.9    Sec. 12. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 3, is 28.10amended to read:28.11    Subd. 3. Authorizer. (a) For purposes of this section, the terms defined in this 28.12subdivision have the meanings given them.28.13    "Application" to receive approval as an authorizer means the proposal an eligible 28.14authorizer submits to the commissioner under paragraph (c) before that authorizer is able 28.15to submit any affidavit to charter to a school.28.16    "Application" under subdivision 4 means the charter school business plan a 28.17school developer submits to an authorizer for approval to establish a charter school that 28.18documents the school developer's mission statement, school purposes, program design, 28.19financial plan, governance and management structure, and background and experience, 28.20plus any other information the authorizer requests. The application also shall include a 28.21"statement of assurances" of legal compliance prescribed by the commissioner.28.22    "Affidavit" means a written statement the authorizer submits to the commissioner 28.23for approval to establish a charter school under subdivision 4 attesting to its review and 28.24approval process before chartering a school.28.25    (b) The following organizations may authorize one or more charter schools:28.26    (1) a school board; intermediate school district school board; education district 28.27organized under sections 
         123A.15 to 
         123A.19;28.28    (2) a charitable organization under section 501(c)(3) of the Internal Revenue Code 28.29of 1986, excluding a nonpublic sectarian or religious institution, any person other than a 28.30natural person that directly or indirectly, through one or more intermediaries, controls, 28.31is controlled by, or is under common control with the nonpublic sectarian or religious 28.32institution, and any other charitable organization under this clause that in the federal IRS 28.33Form 1023, Part IV, describes activities indicating a religious purpose, that:28.34    (i) is a member of the Minnesota Council of Nonprofits or the Minnesota Council on 28.35Foundations;29.1    (ii) is registered with the attorney general's office; and29.2    (iii) is incorporated in the state of Minnesota and has been operating continuously 29.3for at least five years but does not operate a charter school;29.4    (3) a Minnesota private college, notwithstanding clause (2), that grants two- or 29.5four-year degrees and is registered with the Minnesota Office of Higher Education under 29.6chapter 136A; community college, state university, or technical college governed by the 29.7Board of Trustees of the Minnesota State Colleges and Universities; or the University 29.8of Minnesota;29.9    (4) a nonprofit corporation subject to chapter 317A, described in section 
         317A.905, 29.10and exempt from federal income tax under section 501(c)(6) of the Internal Revenue Code 29.11of 1986, may authorize one or more charter schools if the charter school has operated 29.12for at least three years under a different authorizer and if the nonprofit corporation has 29.13existed for at least 25 years; or29.14    (5) single-purpose authorizers that are charitable, nonsectarian organizations formed 29.15under section 501(c)(3) of the Internal Revenue Code of 1986 and incorporated in the state 29.16of Minnesota whose sole purpose is to charter schools. Eligible organizations interested 29.17in being approved as an authorizer under this paragraph must submit a proposal to the 29.18commissioner that includes the provisions of paragraph (c) and a five-year financial plan. 29.19Such authorizers shall consider and approve applications using the criteria provided in 29.20subdivision 4 and shall not limit the applications it solicits, considers, or approves to any 29.21single curriculum, learning program, or method.29.22    (c) An eligible authorizer under this subdivision must apply to the commissioner for 29.23approval as an authorizer before submitting any affidavit to the commissioner to charter 29.24a school. The application for approval as a charter school authorizer must demonstrate 29.25the applicant's ability to implement the procedures and satisfy the criteria for chartering a 29.26school under this section. The commissioner must approve or disapprove an application 29.27within 45 business days of the application deadline. If the commissioner disapproves 29.28the application, the commissioner must notify the applicant of the specific deficiencies 29.29in writing and the applicant then has 20 business days to address the deficiencies to the 29.30commissioner's satisfaction. After the 20 business days expire, the commissioner has 15 29.31business days to make a final decision to approve or disapprove the application. Failing to 29.32address the deficiencies to the commissioner's satisfaction makes an applicant ineligible to 29.33be an authorizer. The commissioner, in establishing criteria for approval, must consider 29.34the applicant's:29.35    (1) capacity and infrastructure;29.36    (2) application criteria and process;30.1    (3) contracting process;30.2    (4) ongoing oversight and evaluation processes; and30.3    (5) renewal criteria and processes.30.4    (d) An applicant must include in its application to the commissioner to be an 30.5approved authorizer at least the following:30.6    (1) how chartering schools is a way for the organization to carry out its mission;30.7    (2) a description of the capacity of the organization to serve as an authorizer, 30.8including the personnel who will perform the authorizing duties, their qualifications, the 30.9amount of time they will be assigned to this responsibility, and the financial resources 30.10allocated by the organization to this responsibility;30.11    (3) a description of the application and review process the authorizer will use to 30.12make decisions regarding the granting of charters;30.13    (4) a description of the type of contract it will arrange with the schools it charters 30.14that meets the provisions of subdivision 6;30.15    (5) the process to be used for providing ongoing oversight of the school consistent 30.16with the contract expectations specified in clause (4) that assures that the schools chartered 30.17are complying with both the provisions of applicable law and rules, and with the contract;30.18    (6) a description of the criteria and process the authorizer will use to grant expanded 30.19applications under subdivision 4, paragraph (j);30.20    (7) the process for making decisions regarding the renewal or termination of 30.21the school's charter based on evidence that demonstrates the academic, organizational, 30.22and financial competency of the school, including its success in increasing student 30.23achievement and meeting the goals of the charter school agreement; and30.24    (8) an assurance specifying that the organization is committed to serving as an 30.25authorizer for the full five-year term.30.26    (e) A disapproved applicant under this section may resubmit an application during a 30.27future application period.30.28    (f) If the governing board of an approved authorizer that has chartered multiple 30.29schools votes to withdraw as an approved authorizer for a reason unrelated to any 30.30cause under subdivision 23, the authorizer must notify all its chartered schools and the 30.31commissioner in writing by July 15 of its intent to withdraw as an authorizer on June 30 in 30.32the next calendar year. The commissioner may approve the transfer of a charter school 30.33to a new authorizer under this paragraph after the new authorizer submits an affidavit to 30.34the commissioner.30.35    (g) The authorizer must participate in department-approved training.31.1    (h) An authorizer that chartered a school before August 1, 2009, must apply by 31.2June 30, 2012, to the commissioner for approval, under paragraph (c), to continue as an 31.3authorizer under this section. For purposes of this paragraph, an authorizer that fails to 31.4submit a timely application is ineligible to charter a school.31.5    (i) The commissioner shall review an authorizer's performance every five years in 31.6a manner and form determined by the commissioner and may review an authorizer's 31.7performance more frequently at the commissioner's own initiative or at the request of a 31.8charter school operator, charter school board member, or other interested party. The 31.9commissioner, after completing the review, shall transmit a report with findings to the 31.10authorizer. If, consistent with this section, the commissioner finds that an authorizer has 31.11not fulfilled the requirements of this section, the commissioner may subject the authorizer 31.12to corrective action, which may include terminating the contract with the charter school 31.13board of directors of a school it chartered. The commissioner must notify the authorizer 31.14in writing of any findings that may subject the authorizer to corrective action and 31.15the authorizer then has 15 business days to request an informal hearing before the 31.16commissioner takes corrective action. If the commissioner terminates a contract between 31.17an authorizer and a charter school under this paragraph, the commissioner may assist the 31.18charter school in acquiring a new authorizer.31.19    (j) The commissioner may at any time take corrective action against an authorizer, 31.20including terminating an authorizer's ability to charter a school for:31.21    (1) failing to demonstrate the criteria under paragraph (c) under which the 31.22commissioner approved the authorizer;31.23    (2) violating a term of the chartering contract between the authorizer and the charter 31.24school board of directors;31.25    (3) unsatisfactory performance as an approved authorizer; or31.26    (4) any good cause shown that provides the commissioner a legally sufficient reason 31.27to take corrective action against an authorizer.31.28    Sec. 13. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 4, is 31.29amended to read:31.30    Subd. 4. Formation of school. (a) An authorizer, after receiving an application from 31.31a school developer, may charter a licensed teacher under section 
         122A.18, subdivision 31.321
         , or a group of individuals that includes one or more licensed teachers under section 31.33122A.18, subdivision 1
         , to operate a school subject to the commissioner's approval of the 31.34authorizer's affidavit under paragraph (b). The school must be organized and operated as a 32.1nonprofit corporation under chapter 317A and the provisions under the applicable chapter 32.2shall apply to the school except as provided in this section.32.3    Notwithstanding sections 
         465.717 and 
         465.719, a school district, subject to this 32.4section and section 
         124D.11, may create a corporation for the purpose of establishing a 32.5charter school.32.6    (b) Before the operators may establish and operate a school, the authorizer must file 32.7an affidavit with the commissioner stating its intent to charter a school. An authorizer 32.8must file a separate affidavit for each school it intends to charter. The affidavit must 32.9state the terms and conditions under which the authorizer would charter a school and 32.10how the authorizer intends to oversee the fiscal and student performance of the charter 32.11school and to comply with the terms of the written contract between the authorizer 32.12and the charter school board of directors under subdivision 6. The commissioner must 32.13approve or disapprove the authorizer's affidavit within 60 business days of receipt of the 32.14affidavit. If the commissioner disapproves the affidavit, the commissioner shall notify 32.15the authorizer of the deficiencies in the affidavit and the authorizer then has 20 business 32.16days to address the deficiencies. If the authorizer does not address deficiencies to the 32.17commissioner's satisfaction, the commissioner's disapproval is final. Failure to obtain 32.18commissioner approval precludes an authorizer from chartering the school that is the 32.19subject of this affidavit.32.20    (c) The authorizer may prevent an approved charter school from opening for 32.21operation if, among other grounds, the charter school violates this section or does not meet 32.22the ready-to-open standards that are part of the authorizer's oversight and evaluation 32.23process or are stipulated in the charter school contract.32.24    (d) The operators authorized to organize and operate a school, before entering into a 32.25contract or other agreement for professional or other services, goods, or facilities, must 32.26incorporate as a nonprofit corporation under chapter 317A and must establish a board of 32.27directors composed of at least five members who are not related parties until a timely 32.28election for members of the ongoing charter school board of directors is held according to 32.29the school's articles and bylaws under paragraph (f). A charter school board of directors 32.30must be composed of at least five members who are not related parties. Staff members 32.31employed at the school, including teachers providing instruction under a contract with a 32.32cooperative, and all parents or legal guardians of children enrolled in the school are the 32.33voters eligible to elect the members of the school's board of directors. A charter school 32.34must notify eligible voters of the school board election dates at least 30 days before the 32.35election. Board of director meetings must comply with chapter 13D.33.1    (e) Upon the request of an individual, the charter school must make available 33.2in a timely fashionA charter school shall publish and maintain on the school's official 33.3Web site: (1) the minutes of meetings of the board of directors, and of members and 33.4committees having any board-delegated authority;, for at least one calendar year from the 33.5date of publication; (2) directory information for members of the board of directors and 33.6committees having board-delegated authority; and (3) identifying and contact information 33.7for the school's authorizer. Identifying and contact information for the school's authorizer 33.8must be included in other school materials made available to the public. Upon request of 33.9an individual, the charter school must also make available in a timely fashion financial 33.10statements showing all operations and transactions affecting income, surplus, and deficit 33.11during the school's last annual accounting period; and a balance sheet summarizing assets 33.12and liabilities on the closing date of the accounting period. A charter school also must post 33.13on its official Web site information identifying its authorizer and indicate how to contact 33.14that authorizer and include that same information about its authorizer in other school 33.15materials that it makes available to the public.33.16    (f) Every charter school board member shall attend department-approved ongoing 33.17training throughout the member's term on board governance, including training on 33.18the board's role and responsibilities, employment policies and practices, and financial 33.19management. A board member who does not begin the required initial training within six 33.20months after being seated and complete that training within 12 months of being seated on 33.21the board is ineligible to continue to serve as a board member. The school shall include in 33.22its annual report the training attended by each board member during the previous year.33.23    (g) The ongoing board must be elected before the school completes its third year of 33.24operation. Board elections must be held during the school year but may not be conducted 33.25on days when the school is closed for holidays or vacations. The charter school board of 33.26directors shall be composed of at least five nonrelated members and include: (i) at least one 33.27licensed teacher employed at the school or a licensed teacher providing instruction under 33.28contract between the charter school and a cooperative; (ii) the parent or legal guardian 33.29of a student enrolled in the charter school who is not an employee of the charter school; 33.30and (iii) an interested community member who is not employed by the charter school and 33.31does not have a child enrolled in the school. The board may be a teacher majority board 33.32composed of teachers described in this paragraph. The chief financial officer and the chief 33.33administrator may only serve as ex-officio nonvoting board members and may not serve 33.34as a voting member of the board. Charter school employees shall not serve on the board 33.35unless item (i) applies. Contractors providing facilities, goods, or services to a charter 33.36school shall not serve on the board of directors of the charter school. Board bylaws shall 34.1outline the process and procedures for changing the board's governance model, consistent 34.2with chapter 317A. A board may change its governance model only:34.3    (1) by a majority vote of the board of directors and the licensed teachers employed 34.4by the school, including licensed teachers providing instruction under a contract between 34.5the school and a cooperative; and34.6    (2) with the authorizer's approval.34.7    Any change in board governance must conform with the board structure established 34.8under this paragraph.34.9    (h) The granting or renewal of a charter by an authorizer must not be conditioned 34.10upon the bargaining unit status of the employees of the school.34.11    (i) The granting or renewal of a charter school by an authorizer must not be 34.12contingent on the charter school being required to contract, lease, or purchase services 34.13from the authorizer. Any potential contract, lease, or purchase of service from an 34.14authorizer must be disclosed to the commissioner, accepted through an open bidding 34.15process, and be a separate contract from the charter contract. The school must document 34.16the open bidding process. An authorizer must not enter into a contract to provide 34.17management and financial services for a school that it authorizes, unless the school 34.18documents that it received at least two competitive bids.34.19    (j) An authorizer may permit the board of directors of a charter school to expand 34.20the operation of the charter school to additional sites or to add additional grades at the 34.21school beyond those described in the authorizer's original affidavit as approved by 34.22the commissioner only after submitting a supplemental affidavit for approval to the 34.23commissioner in a form and manner prescribed by the commissioner. The supplemental 34.24affidavit must document that:34.25    (1) the proposed expansion plan demonstrates need and projected enrollment;34.26    (2) the expansion is warranted, at a minimum, by longitudinal data demonstrating 34.27students' improved academic performance and growth on statewide assessments under 34.28chapter 120B;34.29    (3) the charter school is financially sound and the financing it needs to implement 34.30the proposed expansion exists; and34.31    (4) the charter school has the governance structure and management capacity to 34.32carry out its expansion.34.33    (k) The commissioner shall have 30 business days to review and comment on the 34.34supplemental affidavit. The commissioner shall notify the authorizer of any deficiencies in 34.35the supplemental affidavit and the authorizer then has 20 business days to address, to the 34.36commissioner's satisfaction, any deficiencies in the supplemental affidavit. The authorizer 35.1may not give final approval to the school may not to expand grades or add sites until the 35.2commissioner has approved the supplemental affidavit. The commissioner's approval or 35.3disapproval of a supplemental affidavit is final completes the review and comment process.35.4(l) A charter school operating under this section may merge with another charter 35.5school. The merger must comply with chapter 317A and section 124D.11, subdivision 35.69, paragraph (g). Upon a formal vote of the board of directors of each charter school 35.7involved and written notice of intent to the authorizer of each school, the schools may 35.8negotiate a merger plan that must include at least the following:35.9(1) a merger budget, a multiyear operating budget for the merged charter school, a 35.10long-range financial plan, and a plan for the transfer of assets and liabilities to the merged 35.11charter school;35.12(2) a process for transitioning responsibility of governance, administration, and all 35.13operations to the merged charter school;35.14(3) a statement of academic, student engagement, and organizational operations 35.15goals for the merged charter school; and35.16(4) an agreement between involved authorizers on the authorizing plan for the 35.17merged charter school.35.18The approval of the boards of directors of the merging charter schools, the 35.19authorizers of those schools, and the authorizer of the merged charter school is required 35.20to adopt the merger plan. After the merger plan is adopted, the authorizer of the merged 35.21charter school must submit the plan to the commissioner for review and comment. The 35.22commissioner must complete the review and comment of the plan within 30 business days. 35.23The merger may not take effect until the commissioner completes the review and comment.35.24    Sec. 14. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 6, is 35.25amended to read:35.26    Subd. 6. Charter contract. The authorization for a charter school must be in the 35.27form of a written contract signed by the authorizer and the board of directors of the charter 35.28school. The contract must be completed within 45 business days of the commissioner's 35.29approval of the authorizer's affidavit. The authorizer shall submit to the commissioner a 35.30copy of the signed charter contract within ten business days of its execution. The contract 35.31for a charter school must be in writing and contain at least the following:35.32    (1) a declaration of the purposes in subdivision 1 that the school intends to carry out 35.33and how the school will report its implementation of those purposes;35.34    (2) a description of the school program and the specific academic and nonacademic 35.35outcomes that pupils must achieve;36.1    (3) a statement of admission policies and procedures;36.2    (4) a governance, management, and administration plan for the school;36.3    (5) signed agreements from charter school board members to comply with all 36.4federal and state laws governing organizational, programmatic, and financial requirements 36.5applicable to charter schools;36.6    (6) the criteria, processes, and procedures that the authorizer will use for ongoing 36.7oversight of operational, financial, and academic performance;36.8    (7) the performance evaluation that is a prerequisite for reviewing a charter contract 36.9under subdivision 15;36.10    (8) types and amounts of insurance liability coverage to be obtained by the charter 36.11school;36.12    (9) consistent with subdivision 25, paragraph (d), a provision to indemnify and hold 36.13harmless the authorizer and its officers, agents, and employees from any suit, claim, 36.14or liability arising from any operation of the charter school, and the commissioner and 36.15department officers, agents, and employees notwithstanding section 
         3.736;36.16    (10) the term of the initial contract, which may be up to three five years plus an 36.17additional preoperational planning year, and up to five years for a renewed contract or a 36.18contract with a new authorizer after a transfer of authorizers, if warranted by the school's 36.19academic, financial, and operational performance;36.20    (11) how the board of directors or the operators of the charter school will provide 36.21special instruction and services for children with a disability under sections 
         125A.03 36.22to 
         125A.24, and 
         125A.65, a description of the financial parameters within which the 36.23charter school will operate to provide the special instruction and services to children 36.24with a disability;36.25(12) the process the authorizer will use for making decisions regarding the renewal, 36.26termination, and an appeal process of such termination, of the school's charter based on 36.27evidence that demonstrates the academic, organizational, and financial competency of the 36.28school, including its success in increasing student achievement and meeting the goals 36.29of the charter school agreement;36.30(13) a dispute resolution process agreed upon by the authorizer and the charter 36.31school that includes at least the following:36.32(i) a written notice process to invoke the dispute resolution process and a description 36.33of the matter in dispute;36.34(ii) a time limit for response; and36.35(iii) a process for final resolution of the issue in dispute;37.1    (12) (14) the process and criteria the authorizer intends to use to monitor and 37.2evaluate the fiscal and student performance of the charter school, consistent with 37.3subdivision 15; and37.4    (13) (15) the plan for an orderly closing of the school under chapter 317A, if the 37.5closure is a termination for cause, a voluntary termination, or a nonrenewal of the contract, 37.6and that includes establishing the responsibilities of the school board of directors and the 37.7authorizer and notifying the commissioner, authorizer, school district in which the charter 37.8school is located, and parents of enrolled students about the closure, the transfer of student 37.9records to students' resident districts, and procedures for closing financial operations.37.10    Sec. 15. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 10, 37.11is amended to read:37.12    Subd. 10. Pupil performance.(a) A charter school must design its programs to 37.13at least meet the outcomes adopted by the commissioner for public school students. In 37.14the absence of the commissioner's requirements, the school must meet the outcomes 37.15contained in the contract with the authorizer. The achievement levels of the outcomes 37.16contained in the contract may exceed the achievement levels of any outcomes adopted by 37.17the commissioner for public school students.37.18(b) A charter school where 70 percent or more of enrolled students are eligible to 37.19participate in the graduation incentives program under section 124D.68 is deemed an area 37.20learning center for the purpose of evaluating student and school academic performance 37.21outcomes and determining a school graduation rate.37.22EFFECTIVE DATE.This section is effective the day following final enactment.37.23    Sec. 16. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 11, 37.24is amended to read:37.25    Subd. 11. Employment and other operating matters. (a) A charter school must 37.26employ or contract with necessary teachers, as defined by section 
         122A.15, subdivision 1, 37.27who hold valid licenses to perform the particular service for which they are employed in 37.28the school. The charter school's state aid may be reduced under section 
         127A.43 if the 37.29school employs a teacher who is not appropriately licensed or approved by the board of 37.30teaching. The school may employ necessary employees who are not required to hold 37.31teaching licenses to perform duties other than teaching and may contract for other services. 37.32The school may discharge teachers and nonlicensed employees. The charter school board 37.33is subject to section 
         181.932. When offering employment to a prospective employee, a 38.1charter school must give that employee a written description of the terms and conditions 38.2of employment and the school's personnel policies.38.3    (b) A person, without holding a valid administrator's license, may perform 38.4administrative, supervisory, or instructional leadership duties. The board of directors shall 38.5establish qualifications for persons that hold administrative, supervisory, or instructional 38.6leadership roles. The qualifications shall include at least the following areas: instruction 38.7and assessment; human resource and personnel management; financial management; 38.8legal and compliance management; effective communication; and board, authorizer, and 38.9community relationships. The board of directors shall use those qualifications as the basis 38.10for job descriptions, hiring, and performance evaluations of those who hold administrative, 38.11supervisory, or instructional leadership roles. The board of directors and an individual 38.12who does not hold a valid administrative license and who serves in an administrative, 38.13supervisory, or instructional leadership position shall develop a professional development 38.14plan. Documentation of the implementation of the professional development plan of these 38.15persons shall be included in the school's annual report.38.16    (c) The board of directors also shall decide matters related to the operation of the 38.17school, including budgeting, curriculum and operating procedures.38.18(d) The board of directors shall adopt and implement a performance evaluation 38.19process for all employees of the school. The performance evaluation process for teachers 38.20and administrators must be designed to support and improve pupil learning and student 38.21achievement, instructional leadership, and enhancing school outcomes, and must be linked 38.22to professional development.38.23    Sec. 17. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 13, 38.24is amended to read:38.25    Subd. 13. Length of school year. A charter school must provide instruction each 38.26year for at least the number of days hours required by section 
         120A.41. It may provide 38.27instruction throughout the year according to sections 
         124D.12 to 
         124D.127 or 
         124D.128.38.28    Sec. 18. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 14, 38.29is amended to read:38.30    Subd. 14. Annual public reports. A charter school must publish an annual report 38.31approved by the board of directors. The annual report must at least include information 38.32on school enrollment, student attrition, governance and management, staffing, finances, 38.33academic performance, operational performance, innovative practices and implementation, 38.34and future plans. A charter school must distribute the annual report by publication, mail, 39.1or electronic means to the commissioner, authorizer, school employees, and parents and 39.2legal guardians of students enrolled in the charter school and must also post the report on 39.3the charter school's official Web site. The reports are public data under chapter 13.39.4    Sec. 19. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 15, 39.5is amended to read:39.6    Subd. 15. Review and comment. (a) The authorizer shall provide a formal written 39.7evaluation of the school's performance before the authorizer renews the charter contract. 39.8The department must review and comment on the authorizer's evaluation process at the 39.9time the authorizer submits its application for approval and each time the authorizer 39.10undergoes its five-year review under subdivision 3, paragraph (e).39.11    (b) An authorizer shall monitor and evaluate the fiscal, operational, and student 39.12performance of the school, and may for this purpose annually assess a charter school 39.13a fee according to paragraph (c). The agreed-upon fee structure must be stated in the 39.14charter school contract.39.15    (c) The fee that each charter school pays to an authorizer each year is the greater of:39.16    (1) the basic formula allowance for that year; or39.17    (2) the lesser of:39.18    (i) the maximum fee factor times the basic formula allowance for that year; or39.19    (ii) the fee factor times the basic formula allowance for that year times the charter 39.20school's adjusted marginal cost pupil units for that year. The fee factor equals .005 in fiscal 39.21year 2010, .01 in fiscal year 2011, .013 in fiscal year 2012, and .015 in fiscal years 2013 39.22and later. The maximum fee factor equals 1.5 in fiscal year 2010, 2.0 in fiscal year 2011, 39.233.0 in fiscal year 2012, and 4.0 in fiscal years 2013 and later.39.24    (d) The department and any charter school it charters must not assess or pay a fee 39.25under paragraphs (b) and (c) An authorizer may not assess a fee for any required services 39.26other than as provided in this subdivision.39.27    (e) For the preoperational planning period, the authorizer may assess a charter school 39.28a fee equal to the basic formula allowance.39.29    (f) By September 30 of each year, an authorizer shall submit to the commissioner 39.30a statement of expenditures related to chartering activities during the previous school 39.31year ending June 30. A copy of the statement shall be given to all schools chartered by 39.32the authorizer.39.33    Sec. 20. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 17a, 39.34is amended to read:40.1    Subd. 17a. Affiliated nonprofit building corporation. (a) Before a charter school 40.2may organize an affiliated nonprofit building corporation (i) to renovate or purchase an 40.3existing facility to serve as a school or (ii) to construct a new school facility, an authorizer 40.4must submit an affidavit to the commissioner for approval in the form and manner the 40.5commissioner prescribes, and consistent with paragraphs (b) and (c) or (d).40.6    (b) An affiliated nonprofit building corporation under this subdivision must:40.7    (1) be incorporated under section 317A and comply with applicable Internal 40.8Revenue Service regulations;40.9(2) comply with applicable Internal Revenue Service regulations, including 40.10regulations for "supporting organizations" as defined by the Internal Revenue Service;40.11    (2) (3) submit to the commissioner each fiscal year a list of current board members 40.12and a copy of its annual audit; and40.13    (3) (4) comply with government data practices law under chapter 13.40.14An affiliated nonprofit building corporation must not serve as the leasing agent for 40.15property or facilities it does not own. A charter school that leases a facility from an 40.16affiliated nonprofit building corporation that does not own the leased facility is ineligible 40.17to receive charter school lease aid. The state is immune from liability resulting from a 40.18contract between a charter school and an affiliated nonprofit building corporation.40.19    (c) A charter school may organize an affiliated nonprofit building corporation to 40.20renovate or purchase an existing facility to serve as a school if the charter school:40.21    (1) has been operating for at least five consecutive school years;40.22    (2) has had a net positive unreserved general fund balance as of June 30 in the 40.23preceding five fiscal years;40.24    (3) has a long-range strategic and financial plan;40.25    (4) completes a feasibility study of available buildings; and40.26    (5) documents enrollment projections and the need to use an affiliated building 40.27corporation to renovate or purchase an existing facility to serve as a school; and40.28(6) has a plan for the renovation or purchase, which describes the parameters and 40.29budget for the project.40.30    (d) A charter school may organize an affiliated nonprofit building corporation to 40.31expand an existing school facility or construct a new school facility if the charter school:40.32    (1) demonstrates the lack of facilities available to serve as a school;40.33    (2) has been operating for at least eight consecutive school years;40.34    (3) has had a net positive unreserved general fund balance as of June 30 in the 40.35preceding eight five fiscal years;40.36    (4) completes a feasibility study of facility options;41.1    (5) has a long-range strategic and financial plan that includes enrollment projections 41.2and demonstrates the need for constructing a new school facility; and41.3    (6) has a plan for the expansion or new school facility, which describes the 41.4parameters and budget for the project.41.5(e) A charter school or an affiliated nonprofit building corporation organized by a 41.6charter school must not initiate an installment contract for purchase, or a lease agreement, 41.7or solicit bids for new construction, expansion, or remodeling of an educational facility 41.8that requires an expenditure in excess of $1,400,000, unless it meets the criteria in 41.9paragraph (b) and paragraph (c) or (d), as applicable, and receives a positive review and 41.10comment from the commissioner under section 
         123B.71.41.11    Sec. 21. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 23, 41.12is amended to read:41.13    Subd. 23. Causes for nonrenewal or termination of charter school contract. (a) 41.14The duration of the contract with an authorizer must be for the term contained in the 41.15contract according to subdivision 6. The authorizer may or may not renew a contract at 41.16the end of the term for any ground listed in paragraph (b). An authorizer may unilaterally 41.17terminate a contract during the term of the contract for any ground listed in paragraph (b). 41.18At least 60 business days before not renewing or terminating a contract, the authorizer 41.19shall notify the board of directors of the charter school of the proposed action in writing. 41.20The notice shall state the grounds for the proposed action in reasonable detail and that the 41.21charter school's board of directors may request in writing an informal hearing before the 41.22authorizer within 15 business days of receiving notice of nonrenewal or termination of 41.23the contract. Failure by the board of directors to make a written request for an informal 41.24hearing within the 15-business-day period shall be treated as acquiescence to the proposed 41.25action. Upon receiving a timely written request for a hearing, the authorizer shall give ten 41.26business days' notice to the charter school's board of directors of the hearing date. The 41.27authorizer shall conduct an informal hearing before taking final action. The authorizer 41.28shall take final action to renew or not renew a contract no later than 20 business days 41.29before the proposed date for terminating the contract or the end date of the contract.41.30    (b) A contract may be terminated or not renewed upon any of the following grounds:41.31    (1) failure to meet the requirements for pupil performance contained in the contract;41.32    (2) failure to meet generally accepted standards of fiscal management;41.33    (3) violations of law; or41.34    (4) other good cause shown.42.1    If a contract is terminated or not renewed under this paragraph, the school must be 42.2dissolved according to the applicable provisions of chapter 317A.42.3    (c) If the authorizer and the charter school board of directors mutually agree to 42.4terminate or not renew the contract, for reasons other than paragraph (b), a change in42.5transfer of authorizers is allowed if the commissioner approves the change to a different 42.6eligible authorizer to authorize the charter school. Both parties at the end of the current 42.7contract with the consent of the current authorizer and after review and comment of the 42.8commissioner. The school and current authorizer must jointly submit their intent in writing 42.9to the commissioner to mutually terminate the contract. The authorizer that is a party to 42.10the existing contract must inform the proposed authorizer about the fiscal and operational 42.11status and, student performance level, and any unresolved issues related to the contract 42.12or oversight of the school. Before the commissioner determines whether to approve a 42.13change in authorizer, the proposed authorizer must identify any outstanding issues in the 42.14proposed charter contract that were unresolved in the previous charter contract and have 42.15the charter school agree to resolve those issues. If no change in authorizer is approved, 42.16the school must be dissolved according to applicable law and the terms of the contract.42.17The proposed authorizer must submit to the commissioner a copy of the proposed new 42.18contract for comment and review. The contract must identify all unresolved contract or 42.19oversight issues that exist and include a plan that the charter school and authorizer have 42.20agreed upon to resolve those issues. The commissioner shall have 20 business days to 42.21conduct the review and comment of the contract. The transfer may not go into effect until 42.22the review and comment of the commissioner is completed.42.23    (d) The commissioner, after providing reasonable notice to the board of directors of 42.24a charter school and the existing authorizer, and after providing an opportunity for a public 42.25hearing, may terminate the existing contract between the authorizer and the charter school 42.26board if the charter school has a history of:42.27    (1) failure to meet pupil performance requirements consistent with state law;42.28    (2) financial mismanagement or failure to meet generally accepted standards of 42.29fiscal management; or42.30    (3) repeated or major violations of the law.42.31    Sec. 22. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 25, 42.32is amended to read:42.33    Subd. 25. Extent of specific legal authority. (a) The board of directors of a charter 42.34school may sue and be sued.42.35    (b) The board may not levy taxes or issue bonds.43.1    (c) The commissioner, an authorizer, members of the board of an authorizer in 43.2their official capacity, and employees of an authorizer are immune from civil or criminal 43.3liability with respect to all activities related to a charter school they approve or authorize. 43.4The board of directors shall obtain at least the amount of and types of insurance up to the 43.5applicable tort liability limits under chapter 466. The charter school board must submit 43.6a copy of the insurance policy to its authorizer and the commissioner before starting 43.7operations. The charter school board must submit notify its authorizer of changes in its 43.8insurance carrier or policy to its authorizer and the commissioner amount limits within 43.920 business days of the change.43.10(d) Notwithstanding section 
         3.736, the charter school shall assume full liability for 43.11its activities and indemnify and hold harmless the authorizer and its officers, agents, and 43.12employees from any suit, claim, or liability arising from any operation of the charter school 43.13and the commissioner and department officers, agents, and employees. A charter school 43.14is not required to indemnify or hold harmless a state employee if the state would not be 43.15required to indemnify and hold the employee harmless under section 
         3.736, subdivision 9.43.16    Sec. 23. Minnesota Statutes 2011 Supplement, section 124D.10, is amended by adding 43.17a subdivision to read:43.18    Subd. 27.Collaboration between charter school and school district.(a) A charter 43.19school board may voluntarily enter into a two-year, renewable agreement for collaboration 43.20to enhance student achievement with a school district within whose geographic boundary 43.21it operates.43.22(b) A school district need not be an approved authorizer to enter into a collaboration 43.23agreement with a charter school. A charter school need not be authorized by the school 43.24district with which it seeks to collaborate.43.25(c) A charter school authorizer is prohibited from requiring a collaboration agreement 43.26as a condition of entering into or renewing a charter contract as defined in subdivision 6.43.27(d) Nothing in this subdivision or in the collaboration agreement may impact in any 43.28way, the authority or autonomy of the charter school.43.29(e) Nothing in this subdivision or in the collaboration agreement shall cause the state 43.30to pay twice for the same student, service or facility or otherwise impact state funding, or 43.31the flow thereof, to the school district or the charter school.43.32(f) The collaboration agreement may include, but need not be limited to, 43.33collaboration regarding facilities, transportation, training, student achievement, 43.34assessments, mutual performance standards and other areas of mutual agreement.44.1(g) The school district shall include the academic performance of the students of a 44.2collaborative charter school site operating within the geographic boundaries of the school 44.3district, for purposes of student assessment and reporting to the state.44.4    Sec. 24. Minnesota Statutes 2011 Supplement, section 124D.4531, subdivision 1, 44.5is amended to read:44.6    Subdivision 1. Career and technical levy. (a) A district with a career and technical 44.7program approved under this section for the fiscal year in which the levy is certified 44.8may levy an amount equal to the greater of:44.9(1) $80 times the district's average daily membership in grades 9 through 12 for the 44.10fiscal year in which the levy is certified; or44.11(2) 35 percent of approved expenditures in the fiscal year in which the levy is 44.12certified for the following:44.13(i) salaries paid to essential, licensed personnel providing direct instructional 44.14services to students in that fiscal year, including extended contracts, for services rendered 44.15in the district's approved career and technical education programs;44.16(ii) contracted services provided by a public or private agency other than a Minnesota 44.17school district or cooperative center under subdivision 7;44.18(iii) necessary travel between instructional sites by licensed career and technical 44.19education personnel;44.20(iv) necessary travel by licensed career and technical education personnel for 44.21vocational student organization activities held within the state for instructional purposes;44.22(v) curriculum development activities that are part of a five-year plan for 44.23improvement based on program assessment;44.24(vi) necessary travel by licensed career and technical education personnel for 44.25noncollegiate credit-bearing professional development; and44.26(vii) specialized vocational instructional supplies.44.27(b) Up to ten percent of a district's career and technical levy may be spent on 44.28equipment purchases. Districts using the career and technical levy for equipment 44.29purchases must report to the department on the improved learning opportunities for 44.30students that result from the investment in equipment.44.31(c) The district must recognize the full amount of this levy as revenue for the fiscal 44.32year in which it is certified.44.33(d) The amount of the levy certified under this subdivision may not exceed 44.34$17,850,000 for taxes payable in 2012, $15,520,000 $18,549,000 for taxes payable in 44.352013, and $15,545,000 $21,810,000 for taxes payable in 2014.45.1(e) If the estimated levy exceeds the amount in paragraph (d), the commissioner 45.2must reduce the percentage in paragraph (a), clause (2), until the estimated levy no longer 45.3exceeds the limit in paragraph (d).45.4EFFECTIVE DATE.This section is effective for taxes payable in 2013 and later.45.5    Sec. 25. Minnesota Statutes 2011 Supplement, section 124D.98, subdivision 2, is 45.6amended to read:45.7    Subd. 2. Proficiency aid. In fiscal year 2013 and later, the proficiency aid for each 45.8school is equal to the product of the school's proficiency allowance times the number 45.9of third grade pupils at the school on October 1 of the previous fiscal year. A school's 45.10proficiency allowance is equal to the percentage of students in each building that meet 45.11or exceed proficiency on the third grade reading Minnesota Comprehensive Assessment, 45.12averaged across the previous three test administrations, times $85 $530.45.13    Sec. 26. Minnesota Statutes 2011 Supplement, section 124D.98, subdivision 3, is 45.14amended to read:45.15    Subd. 3. Growth aid. In fiscal year 2013 and later, the growth aid for each school is 45.16equal to the product of the school's growth allowance times the number of fourth grade 45.17pupils enrolled at the school on October 1 of the previous fiscal year. A school's growth 45.18allowance is equal to the percentage of students at that school making medium or high 45.19growth, under section 
         120B.299, on the fourth grade reading Minnesota Comprehensive 45.20Assessment, averaged across the previous three test administrations, times $85 $530.45.21    Sec. 27. Minnesota Statutes 2011 Supplement, section 126C.40, subdivision 1, is 45.22amended to read:45.23    Subdivision 1. To lease building or land. (a) When an independent or a special 45.24school district or a group of independent or special school districts finds it economically 45.25advantageous to rent or lease a building or land for any instructional purposes or for 45.26school storage or furniture repair, and it determines that the operating capital revenue 45.27authorized under section 
         126C.10, subdivision 13, is insufficient for this purpose, it may 45.28apply to the commissioner for permission to make an additional capital expenditure levy 45.29for this purpose. An application for permission to levy under this subdivision must contain 45.30financial justification for the proposed levy, the terms and conditions of the proposed 45.31lease, and a description of the space to be leased and its proposed use.45.32    (b) The criteria for approval of applications to levy under this subdivision must 45.33include: the reasonableness of the price, the appropriateness of the space to the proposed 46.1activity, the feasibility of transporting pupils to the leased building or land, conformity 46.2of the lease to the laws and rules of the state of Minnesota, and the appropriateness of 46.3the proposed lease to the space needs and the financial condition of the district. The 46.4commissioner must not authorize a levy under this subdivision in an amount greater than 46.5the cost to the district of renting or leasing a building or land for approved purposes. 46.6The proceeds of this levy must not be used for custodial or other maintenance services. 46.7A district may not levy under this subdivision for the purpose of leasing or renting a 46.8district-owned building or site to itself.46.9    (c) For agreements finalized after July 1, 1997, a district may not levy under this 46.10subdivision for the purpose of leasing: (1) a newly constructed building used primarily 46.11for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed 46.12building addition or additions used primarily for regular kindergarten, elementary, or 46.13secondary instruction that contains more than 20 percent of the square footage of the 46.14previously existing building.46.15    (d) Notwithstanding paragraph (b), a district may levy under this subdivision for the 46.16purpose of leasing or renting a district-owned building or site to itself only if the amount 46.17is needed by the district to make payments required by a lease purchase agreement, 46.18installment purchase agreement, or other deferred payments agreement authorized by law, 46.19and the levy meets the requirements of paragraph (c). A levy authorized for a district by 46.20the commissioner under this paragraph may be in the amount needed by the district to 46.21make payments required by a lease purchase agreement, installment purchase agreement, 46.22or other deferred payments agreement authorized by law, provided that any agreement 46.23include a provision giving the school districts the right to terminate the agreement 46.24annually without penalty.46.25    (e) The total levy under this subdivision for a district for any year must not exceed 46.26$150 times the resident pupil units for the fiscal year to which the levy is attributable.46.27    (f) For agreements for which a review and comment have been submitted to the 46.28Department of Education after April 1, 1998, the term "instructional purpose" as used in 46.29this subdivision excludes expenditures on stadiums.46.30    (g) The commissioner of education may authorize a school district to exceed the 46.31limit in paragraph (e) if the school district petitions the commissioner for approval. The 46.32commissioner shall grant approval to a school district to exceed the limit in paragraph (e) 46.33for not more than five years if the district meets the following criteria:46.34    (1) the school district has been experiencing pupil enrollment growth in the 46.35preceding five years;46.36    (2) the purpose of the increased levy is in the long-term public interest;47.1    (3) the purpose of the increased levy promotes colocation of government services; 47.2and47.3    (4) the purpose of the increased levy is in the long-term interest of the district by 47.4avoiding over construction of school facilities.47.5    (h) A school district that is a member of an intermediate school district may include 47.6in its authority under this section the costs associated with leases of administrative and 47.7classroom space for intermediate school district programs. This authority must not exceed 47.8$43 times the adjusted marginal cost pupil units of the member districts. This authority is 47.9in addition to any other authority authorized under this section.47.10    (i) In addition to the allowable capital levies in paragraph (a), for taxes payable in 47.112012 to 2023, a district that is a member of the "Technology and Information Education 47.12Systems" data processing joint board, that finds it economically advantageous to enter into 47.13a lease agreement to finance improvements to a building and land for a group of school 47.14districts or special school districts for staff development purposes, may levy for its portion 47.15of lease costs attributed to the district within the total levy limit in paragraph (e). The total 47.16levy authority under this paragraph shall not exceed $632,000.47.17(j) In addition to the allowable capital levies in paragraph (a), a school district 47.18that is a member of the St. Croix River Education District that finds it economically 47.19advantageous to enter into a lease purchase agreement for a building and land for the St. 47.20Croix River Education District may levy for its portion of lease costs attributed to the 47.21district within the total levy limit in paragraph (e). The authority under this paragraph is 47.22effective for taxes payable in 2013 to 2028.47.23EFFECTIVE DATE.This section is effective for taxes payable in 2013 and later.47.24    Sec. 28. Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision 47.2516, is amended to read:47.26    Subd. 16. Student organizations. For student organizations:

47.27$725,000.....201247.28$725,000.....2013

47.29$49,000 each year is for student organizations serving health occupations (HUSA)47.30(HOSA).47.31$46,000 each year is for student organizations serving service occupations (HERO).47.32$106,000 each year is for student organizations serving trade and industry 47.33occupations (SkillsUSA, secondary and postsecondary).47.34$101,000 each year is for student organizations serving business occupations 47.35(DECA, BPA, secondary and postsecondary).48.1$158,000 each year is for student organizations serving agriculture occupations 48.2(FFA, PAS).48.3$150,000 each year is for student organizations serving family and consumer science 48.4occupations (FCCLA).48.5$115,000 each year is for student organizations serving marketing occupations 48.6(DEX) (DECA, DECA Collegiate).48.7Any balance in the first year does not cancel but is available in the second year.48.8    Sec. 29. LEASE LEVY; ADMINISTRATIVE SPACE.48.9    Subdivision 1.Faribault.Notwithstanding Minnesota Statutes, section 126C.40, 48.10subdivision 1, Independent School District No. 656, Faribault, may lease administrative 48.11space under Minnesota Statutes, section 126C.40, subdivision 1, if the district can 48.12demonstrate to the satisfaction of the commissioner of education that the administrative 48.13space is less expensive than instructional space that the district would otherwise lease. 48.14The commissioner must deny this levy authority unless the district passes a resolution 48.15stating its intent to lease instructional space under Minnesota Statutes, section 126C.40, 48.16subdivision 1, if the commissioner does not grant authority under this section. The 48.17resolution must also certify that a lease of administrative space under this section is less 48.18expensive than the district's proposed instructional lease. Levy authority under this section 48.19shall not exceed the total levy authority under Minnesota Statutes, section 126C.40, 48.20subdivision 1, paragraph (e).48.21    Subd. 2.Wayzata.Notwithstanding Minnesota Statutes, section 126C.40, 48.22subdivision 1, Independent School District No. 284, Wayzata, may lease administrative 48.23space under Minnesota Statutes, section 126C.40, subdivision 1, if the district can 48.24demonstrate to the satisfaction of the commissioner of education that the administrative 48.25space is less expensive than instructional space that the district would otherwise lease. 48.26The commissioner must deny this levy authority unless the district passes a resolution 48.27stating its intent to lease instructional space under Minnesota Statutes, section 126C.40, 48.28subdivision 1, if the commissioner does not grant authority under this section. The 48.29resolution must also certify that a lease of administrative space under this section is less 48.30expensive than the district's proposed instructional lease. Levy authority under this section 48.31shall not exceed the total levy authority under Minnesota Statutes, section 126C.40, 48.32subdivision 1, paragraph (e).48.33EFFECTIVE DATE.This section is effective for taxes payable in 2013 and later.48.34    Sec. 30.  REPEALER.49.1Minnesota Statutes 2010, sections 120A.28; 120B.019; 120B.31, subdivision 3; 49.2121A.60, subdivisions 3 and 4; 121A.62; 121A.63; and 122A.18, subdivision 9, are 49.3repealed.49.4ARTICLE 349.5SPECIAL EDUCATION AND OTHER PROGRAMS49.6    Section 1. Minnesota Statutes 2010, section 125A.14, is amended to read:49.7125A.14 EXTENDED SCHOOL YEAR.49.8    A district may provide extended school year services for children with a disability 49.9living within the district and nonresident children temporarily placed in the district 49.10pursuant to section 
         125A.15or 125A.16. Prior to March 31 or 30 days after the child 49.11with a disability is placed in the district, whichever is later, the providing district shall 49.12give notice to the district of residence of any nonresident children temporarily placed in 49.13the district pursuant to section 
         125A.15or 125A.16, of its intention to provide these 49.14programs. Notwithstanding any contrary provisions in sections section125A.15and 49.15125A.16, the district providing the special instruction and services must apply for special 49.16education aid for the extended school year services. The unreimbursed actual cost of 49.17providing the program for nonresident children with a disability, including the cost of 49.18board and lodging, may be billed to the district of the child's residence and must be paid 49.19by the resident district. Transportation costs must be paid by the district responsible 49.20for providing transportation pursuant to section 
         125A.15or 125A.16 and transportation 49.21aid must be paid to that district.49.22    Sec. 2. Minnesota Statutes 2010, section 125A.19, is amended to read:49.23125A.19 NONRESIDENT EDUCATION; BILLING.49.24All tuition billing for the education of nonresident children pursuant to sections 49.25125A.03
          to 
         125A.24, 125A.51, 125A.515, and 
         125A.65 must be done on uniform forms 49.26prescribed by the commissioner. The billing shall contain an itemized statement of costs 49.27that are being charged to the district of residence. One copy of each billing must be filed 49.28with the commissioner.49.29    Sec. 3. Minnesota Statutes 2010, section 125A.515, subdivision 1, is amended to read:49.30    Subdivision 1. Approval of education programs. The commissioner shall approve 49.31on-site education programs for placement of children and youth in residential facilities 49.32including detention centers, before being licensed by the Department of Human Services 50.1or the Department of Corrections. Education programs in these facilities shall conform to 50.2state and federal education laws including the Individuals with Disabilities Education Act 50.3(IDEA). This section applies only to placements in facilities licensed by the Department of 50.4Human Services or the Department of Corrections. For purposes of this section, "on-site 50.5education program" means the educational services provided directly on the grounds of 50.6the care and treatment facility to children and youth placed for care and treatment.50.7    Sec. 4. Laws 2011, First Special Session chapter 11, article 7, section 2, subdivision 8, 50.8is amended to read:50.9    Subd. 8. Early childhood education scholarships. For grants to early childhood 50.10education scholarships for public or private early childhood preschool programs for 50.11children ages 3 to 5 and for evidence-based and research-validated early literacy home 50.12visiting programs for children ages 18 months to 4 years:

50.13$4,000,000.....2013

50.14(a) All children whose parents or legal guardians meet the eligibility requirements 50.15of paragraph (b) established by the commissioner are eligible to receive early childhood 50.16education scholarships under this section.50.17(b) A parent or legal guardian is eligible for an early childhood education scholarship 50.18if the parent or legal guardian:50.19(1) has a child three or four years of age on September 1, beginning in calendar 50.20year 2012; and50.21(2)(i) has income equal to or less than 47 percent of the state median income in the 50.22current calendar year; or50.23(ii) can document their child's identification through another public funding 50.24eligibility process, including the Free and Reduced Price Lunch Program, National School 50.25Lunch Act, United States Code, title 42, section 1751, part 210; Head Start under federal 50.26Improving Head Start for School Readiness Act of 2007; Minnesota family investment 50.27program under chapter 256J; and child care assistance programs under chapter 119B.50.28Each year, if this appropriation is insufficient to provide early childhood education 50.29scholarships to all eligible children, the Department of Education shall make scholarships 50.30available on a first-come, first-served basis.50.31The commissioner of education shall submit a written report to the education 50.32committees of the legislature by January 15, 2012, describing its plan for implementation 50.33of scholarships under this subdivision for the 2012-2013 school year.50.34(c) Of this amount, $250,000 is for a grant to the evidence-based early literacy 50.35Parent-Child Home Program.51.1(d) Any balance in the first year does not cancel but is available in the second year.51.2(e) The base for this program is $2,000,000 each year.51.3    Sec. 5.  REPEALER.51.4Minnesota Statutes 2010, sections 125A.16; 125A.80; and 475.53, subdivision 51.55, are repealed.