1.1 	A bill for an act
1.2 	relating to education; implementing integration revenue replacement advisory 
1.3 	task force recommendations; repurposing integration revenue by establishing 
1.4 	the "Achievement and Integration for Minnesota" program to increase student 
1.5 	performance and equitable educational opportunities and prepare all students 
1.6 	to be effective citizens;amending Minnesota Statutes 2012, section 120B.36, 
1.7 	subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 124D.
1.8 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.9 	Section 1. Minnesota Statutes 2012, section 120B.36, subdivision 1, is amended to read:
1.10 		Subdivision 1.School performance report cards. (a) The commissioner 
1.11 	shall report student academic performance under section 120B.35, subdivision 2; the 
1.12 	percentages of students showing low, medium, and high growth under section 120B.35, 
1.13 	subdivision 3, paragraph (b); school safety and student engagement and connection 
1.14 	under section 120B.35, subdivision 3, paragraph (d); rigorous coursework under section 
1.15 	120B.35, subdivision 3, paragraph (c); longitudinal data on district and school progress 
1.16 	in reducing disparities in students' academic achievement under section 124D.861, 
1.17 	subdivision 3; two separate student-to-teacher ratios that clearly indicate the definition 
1.18 	of teacher consistent with sections 122A.06 and 122A.15 for purposes of determining 
1.19 	these ratios; staff characteristics excluding salaries; student enrollment demographics; 
1.20 	district mobility; and extracurricular activities. The report also must indicate a school's 
1.21 	adequate yearly progress status, and must not set any designations applicable to high- and 
1.22 	low-performing schools due solely to adequate yearly progress status.
1.23 	(b) The commissioner shall develop, annually update, and post on the department 
1.24 	Web site school performance report cards.
2.1 	(c) The commissioner must make available performance report cards by the 
2.2 	beginning of each school year.
2.3 	(d) A school or district may appeal its adequate yearly progress status in writing to 
2.4 	the commissioner within 30 days of receiving the notice of its status. The commissioner's 
2.5 	decision to uphold or deny an appeal is final.
2.6 	(e) School performance report card data are nonpublic data under section 13.02, 
2.7 	subdivision 9, until the commissioner publicly releases the data. The commissioner shall 
2.8 	annually post school performance report cards to the department's public Web site no later 
2.9 	than September 1, except that in years when the report card reflects new performance 
2.10 	standards, the commissioner shall post the school performance report cards no later than 
2.11 	October 1.

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

2.13 	Sec. 2. [124D.861] ACHIEVEMENT AND INTEGRATION FOR MINNESOTA.
2.14 		Subdivision 1.Program to close the academic achievement and opportunity 
2.15 	gap. The "Achievement and Integration for Minnesota" program is established to 
2.16 	promote diversity, pursue racial and economic integration, and increase student academic 
2.17 	achievement and equitable educational opportunities in Minnesota public schools. The 
2.18 	program must serve students of varying racial, ethnic, and economic backgrounds, taking 
2.19 	into account unique geographic and demographic particularities affecting students, 
2.20 	schools, and districts including race, neighborhood locations and characteristics, grades, 
2.21 	socioeconomic status, academic performance, and language barriers. Eligible districts 
2.22 	must use the revenue under section 124D.862 to pursue racial and economic integration in 
2.23 	schools through: (1) in-school educational practices and integrated learning environments 
2.24 	created to prepare all students to be effective citizens, enhance social cohesion, and 
2.25 	reinforce democratic values; and (2) corresponding and meaningful policies and curricula 
2.26 	and trained instructors, administrators, school counselors, and other advocates who 
2.27 	support and enhance in-school practices and integrated learning environments under this 
2.28 	section. In-school practices and integrated learning environments must promote increased 
2.29 	student academic achievement, cultural fluency, graduation and educational attainment 
2.30 	rates, and parent involvement.
2.31 		Subd. 2.Plan components. (a) The school board of each eligible district must 
2.32 	formally develop and implement a long-term comprehensive plan that identifies the 
2.33 	collaborative structures and systems, in-school strategies, inclusive best educational 
2.34 	practices, and partnerships with higher education institutions and industries required 
2.35 	to effect this section and increase the academic achievement of all students. Plan 
3.1 	components may include: innovative and integrated prekindergarten through grade 12 
3.2 	learning environments that offer students school enrollment choices; family engagement 
3.3 	initiatives that involve families in their students' academic life and success; professional 
3.4 	development opportunities for teachers and administrators focused on improving the 
3.5 	academic achievement of all students; increased programmatic opportunities focused 
3.6 	on rigor and college and career readiness for underserved students, including students 
3.7 	enrolled in alternative learning centers under section 123A.05, public alternative programs 
3.8 	under section 126C.05, subdivision 15, or contract alternative programs under section 
3.9 	124D.69, among other underserved students; or recruitment and retention of teachers and 
3.10 	administrators with diverse backgrounds. The plan must specify district and school goals 
3.11 	for reducing the disparity in academic achievement among all racial and ethnic categories of 
3.12 	students and promoting racial and economic integration in schools and districts over time.
3.13 	(b) Among other requirements, an eligible district must implement a cost-effective, 
3.14 	research-based intervention that includes formative assessment practices to reduce the 
3.15 	disparity in student academic achievement between the highest and lowest performing 
3.16 	racial and ethnic categories of students as measured by student demonstration of 
3.17 	proficiency on state reading and math assessments.
3.18 	(c) Eligible districts must collaborate in creating efficiencies and eliminating the 
3.19 	duplication of programs and services under this section, which may include forming a 
3.20 	single, seven-county metropolitan areawide partnership of eligible districts for this purpose.
3.21 		Subd. 3.Biennial progress; budget process. (a) To receive revenue under section 
3.22 	124D.862, the school board of an eligible district must hold at least one formal hearing by 
3.23 	March 1 in the year preceding the current biennium to report to the public its progress in 
3.24 	realizing the goals identified in its plan.  At the hearing, the board must provide the public 
3.25 	with longitudinal data demonstrating district and school progress in reducing the disparity 
3.26 	in student academic achievement among all racial and ethnic categories of students and 
3.27 	realizing racial and economic integration, consistent with its plan and the measures in 
3.28 	paragraph (b). The district also must submit to the commissioner by March 1 in the year 
3.29 	preceding the current biennium a detailed biennial budget for continuing to implement 
3.30 	its plan and the commissioner must review and approve or disapprove the budget by 
3.31 	June 1 of that year.
3.32 	(b) The longitudinal data required under paragraph (a) must be based on one or 
3.33 	more of the following measures:
3.34 	(1) the number of world language proficiency or high achievement certificates 
3.35 	awarded under section 120B.022, subdivision 1, paragraphs (b) and (c);
4.1 	(2) student growth and progress toward proficiency in reading or mathematics as 
4.2 	defined under section 120B.299;
4.3 	(3) adequate yearly progress under section 120B.35, subdivision 2;
4.4 	(4) preparation for postsecondary academic and career opportunities under section 
4.5 	120B.35, subdivision 3, paragraph (c), clause (1);
4.6 	(5) rigorous coursework completed under section 120B.35, subdivision 3, paragraph 
4.7 	(c), clause (2); or
4.8 	(6) school safety and students' engagement and connection at school under section 
4.9 	120B.35, subdivision 3, paragraph (d).
4.10 		Subd. 4.Evaluation. The commissioner must evaluate the efficacy of district 
4.11 	plans in reducing the disparity in student academic achievement among all racial and 
4.12 	ethnic categories of students and realizing racial and economic integration and report the 
4.13 	commissioner's findings to the K-12 education committees of the legislature by February 1 
4.14 	every fourth year beginning February 1, 2017.

4.15 	EFFECTIVE DATE. This section is effective for fiscal year 2014 and later.

4.16 	Sec. 3. [124D.862] ACHIEVEMENT AND INTEGRATION REVENUE.
4.17 		Subdivision 1.Eligibility. A school district is eligible for achievement and 
4.18 	integration revenue under this section if the district has a biennial achievement and 
4.19 	integration plan approved by the department under section 124D.861.
4.20 		Subd. 2.Achievement and integration revenue. (a) An eligible district's initial 
4.21 	achievement and integration revenue equals the sum of (1) $....... per pupil unit plus (2) 
4.22 	$....... times district's pupil units for that year times the ratio of the district's enrollment of 
4.23 	protected students to total enrollment for the previous school year.
4.24 	(b) In each year, .02 percent of each district's initial achievement and integration 
4.25 	revenue is transferred to the Department of Education for the oversight and accountability 
4.26 	activities required under this section and section 124D.861.
4.27 	(c) A district that did not meet its achievement goals established in section 124D.861 
4.28 	for the previous biennium must have its initial achievement and integration revenue 
4.29 	reduced by ....... percent for the current year.
4.30 	(d) Any revenue saved by the reductions in paragraph (c) must be proportionately 
4.31 	reallocated on a per pupil basis to all districts that met their achievement goals in the 
4.32 	previous biennium.
4.33 		Subd. 3.Achievement and integration aid. A district's achievement and 
4.34 	integration aid equals 70 percent of its achievement and integration revenue.
5.1 		Subd. 4.Achievement and integration levy. A district's achievement and 
5.2 	integration levy equals the difference between its achievement and integration revenue 
5.3 	and its achievement and integration aid.
5.4 		Subd. 5.Incentive revenue. An eligible school district's maximum incentive 
5.5 	revenue equals $....... per pupil unit. In order to receive this revenue, a district must be 
5.6 	implementing a voluntary plan to reduce racial enrollment disparities through intradistrict 
5.7 	and interdistrict activities that have been approved as a part of the district's achievement 
5.8 	and integration plan.
5.9 		Subd. 6.Revenue reserved. Integration revenue received under this section must 
5.10 	be reserved and used only for the programs authorized in subdivision 7.
5.11 		Subd. 7.Revenue uses. At least 80 percent of a district's achievement and 
5.12 	integration revenue received under this section must be used for innovative and integrated 
5.13 	learning environments, family engagement activities, and other approved programs 
5.14 	providing direct services to students. Up to 20 percent of the revenue may be used for 
5.15 	professional development and staff development activities, and not more than ten percent 
5.16 	of this share of the revenue may be used for administrative expenditures.

5.17 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 
5.18 	and later.