1.1 	A bill for an act
1.2 	relating to education; providing funding and policy for early childhood and 
1.3 	family, prekindergarten through grade 12, and adult education, including 
1.4 	general education, student accountability, education excellence, charter schools, 
1.5 	special education, facilities, technology, nutrition, libraries, accounting, early 
1.6 	childhood, self-sufficiency, lifelong learning, state agencies, and forecast 
1.7 	adjustments; authorizing rulemaking; requiring reports; appropriating money;
1.8 	amending Minnesota Statutes 2012, sections 13.319, by adding a subdivision; 
1.9 	15.059, subdivision 5b; 120A.20, subdivision 1; 120A.41; 120B.02; 120B.021, 
1.10 	subdivision 1; 120B.023; 120B.024; 120B.125; 120B.128; 120B.30, subdivisions 
1.11 	1, 1a; 120B.31, subdivision 1; 120B.35, subdivision 3; 120B.36, subdivision 
1.12 	1; 121A.22, subdivision 2; 121A.2205; 122A.09, subdivision 4; 122A.18, 
1.13 	subdivision 2; 122A.23, subdivision 2; 122A.28, subdivision 1; 122A.33, 
1.14 	subdivision 3; 122A.61, subdivision 1; 123B.41, subdivision 7; 123B.54; 
1.15 	123B.88, subdivision 22; 123B.92, subdivisions 1, 5; 124D.02, subdivision 
1.16 	1; 124D.095, subdivision 10; 124D.10; 124D.11, subdivision 5; 124D.111, 
1.17 	subdivision 1; 124D.119; 124D.122; 124D.128, subdivision 2; 124D.42; 
1.18 	124D.4531, subdivision 1; 124D.52, by adding a subdivision; 124D.531, 
1.19 	subdivision 1; 124D.59, subdivision 2; 124D.61; 124D.79, subdivision 1, by 
1.20 	adding a subdivision; 125A.0941; 125A.0942; 125A.11, subdivision 1; 125A.27, 
1.21 	subdivisions 8, 11, 14; 125A.28; 125A.29; 125A.30; 125A.32; 125A.33; 
1.22 	125A.35, subdivision 1; 125A.36; 125A.43; 125A.76, subdivisions 1, 4a, 8, 
1.23 	by adding subdivisions; 125A.78, subdivision 2; 125A.79, subdivisions 1, 5; 
1.24 	126C.01, by adding a subdivision; 126C.05, subdivisions 1, 15; 126C.10, 
1.25 	subdivisions 1, 2, 14, 24, 29, 32; 126C.15, subdivisions 1, 2; 126C.17, 
1.26 	subdivisions 1, 5, 6; 126C.40, subdivision 6; 126C.44; 126C.48, subdivision 
1.27 	8; 127A.47, subdivision 7; 128D.11, subdivision 3; 134.32; 134.34; 134.351, 
1.28 	subdivisions 3, 7; 134.353; 134.354; 134.355, subdivisions 1, 2, 3, 4, 5, 6; 
1.29 	134.36; 260A.02, subdivision 3; 260A.03; 260A.05, subdivision 1; 260A.07, 
1.30 	subdivision 1; Laws 2007, chapter 146, article 4, section 12; Laws 2011, First 
1.31 	Special Session chapter 11, article 1, section 36, subdivisions 2, as amended, 3, 
1.32 	as amended, 4, as amended, 5, as amended, 6, as amended, 7, as amended, 10, 
1.33 	as amended; article 2, section 50, subdivisions 2, as amended, 4, as amended, 
1.34 	5, as amended, 6, as amended, 7, as amended, 9, as amended; article 3, 
1.35 	section 11, subdivisions 2, as amended, 3, as amended, 4, as amended, 5, as 
1.36 	amended; article 4, section 10, subdivisions 2, as amended, 3, as amended, 4, 
1.37 	as amended, 6, as amended; article 5, section 12, subdivisions 2, as amended, 
1.38 	3, as amended, 4, as amended; article 6, section 2, subdivisions 2, as amended, 
1.39 	3, as amended, 5, as amended; article 7, section 2, subdivisions 2, as amended, 
2.1 	3, as amended, 4, as amended, 8, as amended; article 8, section 2, subdivisions 
2.2 	2, as amended, 3, as amended; article 9, section 3, subdivision 2, as amended; 
2.3 	proposing coding for new law in Minnesota Statutes, chapters 120B; 121A; 
2.4 	124D; 126C; 127A; proposing coding for new law as Minnesota Statutes, chapter 
2.5 	16F; repealing Minnesota Statutes 2012, sections 124D.454, subdivisions 3, 
2.6 	10, 11; 125A.35, subdivisions 4, 5; 125A.76, subdivisions 2, 4, 5, 7; 125A.79, 
2.7 	subdivisions 6, 7; 126C.17, subdivision 13; Minnesota Rules, parts 3501.0010; 
2.8 	3501.0020; 3501.0030, subparts 1, 2, 3, 4, 5, 6, 7, 9, 10, 11, 12, 13, 14, 15, 
2.9 	16; 3501.0040; 3501.0050; 3501.0060; 3501.0090; 3501.0100; 3501.0110; 
2.10 	3501.0120; 3501.0130; 3501.0140; 3501.0150; 3501.0160; 3501.0170; 
2.11 	3501.0180; 3501.0200; 3501.0210; 3501.0220; 3501.0230; 3501.0240; 
2.12 	3501.0250; 3501.0270; 3501.0280, subparts 1, 2; 3501.0290; 3501.0505; 
2.13 	3501.0510; 3501.0515; 3501.0520; 3501.0525; 3501.0530; 3501.0535; 
2.14 	3501.0540; 3501.0545; 3501.0550; 3501.1000; 3501.1020; 3501.1030; 
2.15 	3501.1040; 3501.1050; 3501.1110; 3501.1120; 3501.1130; 3501.1140; 
2.16 	3501.1150; 3501.1160; 3501.1170; 3501.1180; 3501.1190.
2.17 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.18 	ARTICLE 1
2.19 	GENERAL EDUCATION

2.20 	Section 1. Minnesota Statutes 2012, section 120A.20, subdivision 1, is amended to read:
2.21 		Subdivision 1.Age limitations; pupils. (a) All schools supported in whole or 
2.22 	in part by state funds are public schools. Admission to a public school is free to any 
2.23 	person who: (1) resides within the district that operates the school; (2) is under 21 years of 
2.24 	age or who meets the requirements of paragraph (c); and (3) satisfies the minimum age 
2.25 	requirements imposed by this section. Notwithstanding the provisions of any law to the 
2.26 	contrary, the conduct of all students under 21 years of age attending a public secondary 
2.27 	school is governed by a single set of reasonable rules and regulations promulgated by the 
2.28 	school board.
2.29 	(b) A person shall not be admitted to a public school (1) as a kindergarten pupil, 
2.30 	unless the pupil is at least five years of age on September 1 of the calendar year in which 
2.31 	the school year for which the pupil seeks admission commences; or (2) as a 1st grade 
2.32 	student, unless the pupil is at least six years of age on September 1 of the calendar year in 
2.33 	which the school year for which the pupil seeks admission commences or has completed 
2.34 	kindergarten; except that any school board may establish a policy for admission of 
2.35 	selected pupils at an earlier age under section 124D.02.
2.36 	(c) A pupil who becomes age 21 after enrollment is eligible for continued free public 
2.37 	school enrollment until at least one of the following occurs: (1) the first September 1 after 
2.38 	the pupil's 21st birthday; (2) the pupil's completion of the graduation requirements; (3) 
2.39 	the pupil's withdrawal with no subsequent enrollment within 21 calendar days; or (4) 
2.40 	the end of the school year.

3.1 	Sec. 2. Minnesota Statutes 2012, section 120A.41, is amended to read:
3.2 	120A.41 LENGTH OF SCHOOL YEAR; HOURS OF INSTRUCTION.
3.3 	A school board's annual school calendar must include at least 850 hours of 
3.4 	instruction for a kindergarten student without a disability in an all-day every day 
3.5 	kindergarten program, at least 425 hours of instruction for a kindergarten student without a 
3.6 	disability in a kindergarten program that is not all-day every day, 935 hours of instruction 
3.7 	for a student in grades 1 though 6, and 1,020 hours of instruction for a student in grades 7 
3.8 	though 12, not including summer school. Nothing in this section permits a school district 
3.9 	to adopt A school board's annual calendar must include at least 165 days of instruction 
3.10 	for a student in grades 1 through 11 unless a four-day week schedule unless has been
3.11 	 approved by the commissioner under section 124D.126.

3.12 	Sec. 3. Minnesota Statutes 2012, section 123B.41, subdivision 7, is amended to read:
3.13 		Subd. 7.Elementary pupils. "Elementary pupils" means pupils in grades 
3.14 	kindergarten through 6; provided, each kindergarten pupil in a half-day program shall be 
3.15 	counted as one-half pupil for all computations pursuant to sections 123B.40 to 123B.42, 
3.16 	and 123B.44 to 123B.48.

3.17 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
3.18 	and later.

3.19 	Sec. 4. Minnesota Statutes 2012, section 123B.88, subdivision 22, is amended to read:
3.20 		Subd. 22.Postsecondary enrollment options pupils. Districts may provide bus 
3.21 	transportation along school bus routes when space is available, for pupils attending 
3.22 	programs at a postsecondary institution under the postsecondary enrollment options 
3.23 	program. The transportation is permitted only if it does not increase the district's 
3.24 	expenditures for transportation. Fees collected for this service under section 123B.36, 
3.25 	subdivision 1, paragraph (13), shall be subtracted from the authorized cost for nonregular 
3.26 	transportation for the purpose of section 123B.92. A school district may provide 
3.27 	transportation for a pupil participating in an articulated program operated under an 
3.28 	agreement between the school district and the postsecondary institution.

3.29 	Sec. 5. Minnesota Statutes 2012, section 123B.92, subdivision 1, is amended to read:
3.30 		Subdivision 1.Definitions. For purposes of this section and section 125A.76, the 
3.31 	terms defined in this subdivision have the meanings given to them.
4.1 	(a) "Actual expenditure per pupil transported in the regular and excess transportation 
4.2 	categories" means the quotient obtained by dividing:
4.3 	(1) the sum of:
4.4 	(i) all expenditures for transportation in the regular category, as defined in paragraph 
4.5 	(b), clause (1), and the excess category, as defined in paragraph (b), clause (2), plus
4.6 	(ii) an amount equal to one year's depreciation on the district's school bus fleet 
4.7 	and mobile units computed on a straight line basis at the rate of 15 percent per year for 
4.8 	districts operating a program under section 124D.128 for grades 1 to 12 for all students in 
4.9 	the district and 12-1/2 percent per year for other districts of the cost of the fleet, plus
4.10 	(iii) an amount equal to one year's depreciation on the district's type III vehicles, as 
4.11 	defined in section 169.011, subdivision 71, which must be used a majority of the time for 
4.12 	pupil transportation purposes, computed on a straight line basis at the rate of 20 percent 
4.13 	per year of the cost of the type three school buses by:
4.14 	(2) the number of pupils eligible for transportation in the regular category, as defined 
4.15 	in paragraph (b), clause (1), and the excess category, as defined in paragraph (b), clause (2).
4.16 	(b) "Transportation category" means a category of transportation service provided to 
4.17 	pupils as follows:
4.18 	(1) Regular transportation is:
4.19 	(i) transportation to and from school during the regular school year for resident 
4.20 	elementary pupils residing one mile or more from the public or nonpublic school they 
4.21 	attend, and resident secondary pupils residing two miles or more from the public 
4.22 	or nonpublic school they attend, excluding desegregation transportation and noon 
4.23 	kindergarten transportation; but with respect to transportation of pupils to and from 
4.24 	nonpublic schools, only to the extent permitted by sections 123B.84 to 123B.87;
4.25 	(ii) transportation of resident pupils to and from language immersion programs;
4.26 	(iii) transportation of a pupil who is a custodial parent and that pupil's child between 
4.27 	the pupil's home and the child care provider and between the provider and the school, if 
4.28 	the home and provider are within the attendance area of the school;
4.29 	(iv) transportation to and from or board and lodging in another district, of resident 
4.30 	pupils of a district without a secondary school; and
4.31 	(v) transportation to and from school during the regular school year required under 
4.32 	subdivision 3 for nonresident elementary pupils when the distance from the attendance 
4.33 	area border to the public school is one mile or more, and for nonresident secondary pupils 
4.34 	when the distance from the attendance area border to the public school is two miles or 
4.35 	more, excluding desegregation transportation and noon kindergarten transportation.
5.1 	For the purposes of this paragraph, a district may designate a licensed day care facility, 
5.2 	school day care facility, respite care facility, the residence of a relative, or the residence 
5.3 	of a person or other location chosen by the pupil's parent or guardian, or an after-school 
5.4 	program for children operated by a political subdivision of the state, as the home of a pupil 
5.5 	for part or all of the day, if requested by the pupil's parent or guardian, and if that facility, 
5.6 	residence, or program is within the attendance area of the school the pupil attends.
5.7 	(2) Excess transportation is:
5.8 	(i) transportation to and from school during the regular school year for resident 
5.9 	secondary pupils residing at least one mile but less than two miles from the public or 
5.10 	nonpublic school they attend, and transportation to and from school for resident pupils 
5.11 	residing less than one mile from school who are transported because of full-service school 
5.12 	zones, extraordinary traffic, drug, or crime hazards; and
5.13 	(ii) transportation to and from school during the regular school year required under 
5.14 	subdivision 3 for nonresident secondary pupils when the distance from the attendance area 
5.15 	border to the school is at least one mile but less than two miles from the public school 
5.16 	they attend, and for nonresident pupils when the distance from the attendance area border 
5.17 	to the school is less than one mile from the school and who are transported because of 
5.18 	full-service school zones, extraordinary traffic, drug, or crime hazards.
5.19 	(3) Desegregation transportation is transportation within and outside of the district 
5.20 	during the regular school year of pupils to and from schools located outside their normal 
5.21 	attendance areas under a plan for desegregation mandated by the commissioner or under 
5.22 	court order.
5.23 	(4) "Transportation services for pupils with disabilities" is:
5.24 	(i) transportation of pupils with disabilities who cannot be transported on a regular 
5.25 	school bus between home or a respite care facility and school;
5.26 	(ii) necessary transportation of pupils with disabilities from home or from school to 
5.27 	other buildings, including centers such as developmental achievement centers, hospitals, 
5.28 	and treatment centers where special instruction or services required by sections 125A.03 
5.29 	to 125A.24, 125A.26 to 125A.48, and 125A.65 are provided, within or outside the district 
5.30 	where services are provided;
5.31 	(iii) necessary transportation for resident pupils with disabilities required by sections 
5.32 	125A.12, and 125A.26 to 125A.48;
5.33 	(iv) board and lodging for pupils with disabilities in a district maintaining special 
5.34 	classes;
5.35 	(v) transportation from one educational facility to another within the district for 
5.36 	resident pupils enrolled on a shared-time basis in educational programs, and necessary 
6.1 	transportation required by sections 125A.18, and 125A.26 to 125A.48, for resident pupils 
6.2 	with disabilities who are provided special instruction and services on a shared-time basis 
6.3 	or if resident pupils are not transported, the costs of necessary travel between public 
6.4 	and private schools or neutral instructional sites by essential personnel employed by the 
6.5 	district's program for children with a disability;
6.6 	(vi) transportation for resident pupils with disabilities to and from board and lodging 
6.7 	facilities when the pupil is boarded and lodged for educational purposes;
6.8 	(vii) transportation of pupils for a curricular field trip activity on a school bus 
6.9 	equipped with a power lift when the power lift is required by a student's disability or 
6.10 	section 504 plan; and
6.11 	(viii) services described in clauses (i) to (vii), when provided for pupils with 
6.12 	disabilities in conjunction with a summer instructional program that relates to the 
6.13 	pupil's individualized education program or in conjunction with a learning year program 
6.14 	established under section 124D.128.
6.15 	For purposes of computing special education initial aid under section 125A.76, 
6.16 	subdivision subdivisions 2 and 2a, the cost of providing transportation for children with 
6.17 	disabilities includes (A) the additional cost of transporting a homeless student from a 
6.18 	temporary nonshelter home in another district to the school of origin, or a formerly 
6.19 	homeless student from a permanent home in another district to the school of origin but 
6.20 	only through the end of the academic year; and (B) depreciation on district-owned school 
6.21 	buses purchased after July 1, 2005, and used primarily for transportation of pupils with 
6.22 	disabilities, calculated according to paragraph (a), clauses (ii) and (iii). Depreciation 
6.23 	costs included in the disabled transportation category must be excluded in calculating the 
6.24 	actual expenditure per pupil transported in the regular and excess transportation categories 
6.25 	according to paragraph (a). For purposes of subitem (A), a school district may transport 
6.26 	a child who does not have a school of origin to the same school attended by that child's 
6.27 	sibling, if the siblings are homeless.
6.28 	(5) "Nonpublic nonregular transportation" is:
6.29 	(i) transportation from one educational facility to another within the district for 
6.30 	resident pupils enrolled on a shared-time basis in educational programs, excluding 
6.31 	transportation for nonpublic pupils with disabilities under clause (4);
6.32 	(ii) transportation within district boundaries between a nonpublic school and a 
6.33 	public school or a neutral site for nonpublic school pupils who are provided pupil support 
6.34 	services pursuant to section 123B.44; and
6.35 	(iii) late transportation home from school or between schools within a district for 
6.36 	nonpublic school pupils involved in after-school activities.
7.1 	(c) "Mobile unit" means a vehicle or trailer designed to provide facilities for 
7.2 	educational programs and services, including diagnostic testing, guidance and counseling 
7.3 	services, and health services. A mobile unit located off nonpublic school premises is a 
7.4 	neutral site as defined in section 123B.41, subdivision 13.

7.5 	EFFECTIVE DATE. This section is effective July 1, 2013.

7.6 	Sec. 6. Minnesota Statutes 2012, section 123B.92, subdivision 5, is amended to read:
7.7 		Subd. 5.District reports. (a) Each district must report data to the department as 
7.8 	required by the department to account for transportation expenditures.
7.9 	(b) Salaries and fringe benefits of district employees whose primary duties are 
7.10 	other than transportation, including central office administrators and staff, building 
7.11 	administrators and staff, teachers, social workers, school nurses, and instructional aides, 
7.12 	must not be included in a district's transportation expenditures, except that a district may 
7.13 	include salaries and benefits according to paragraph (c) for (1) an employee designated 
7.14 	as the district transportation director, (2) an employee providing direct support to the 
7.15 	transportation director, or (3) an employee providing direct transportation services such as 
7.16 	a bus driver or bus aide.
7.17 	(c) Salaries and fringe benefits of the district employees listed in paragraph (b), 
7.18 	clauses (1), (2), and (3), who work part time in transportation and part time in other areas 
7.19 	must not be included in a district's transportation expenditures unless the district maintains 
7.20 	documentation of the employee's time spent on pupil transportation matters in the form 
7.21 	and manner prescribed by the department.
7.22 	(d) A school district that contracts for transportation service may allocate 
7.23 	transportation expense to transportation categories based upon contract rates. Districts 
7.24 	may only allocate transportation expense to transportation categories based upon contract 
7.25 	rates if contract rates are reasonably consistent on a cost-per-hour, cost-per-mile, 
7.26 	cost-per-route, or cost-per-student basis. In order to allocate transportation expense based 
7.27 	upon contract rates, a school district, if audited, must be able to demonstrate to the auditor 
7.28 	that variances in the application of transportation cost basis rates are appropriate. 
7.29 	(e) Pupil transportation expenditures, excluding expenditures for capital outlay, 
7.30 	leased buses, student board and lodging, crossing guards, and aides on buses, must be 
7.31 	allocated among transportation categories based on cost-per-mile or cost-per-student 
7.32 	regardless of whether the transportation services are provided on district-owned or 
7.33 	contractor-owned school buses. Expenditures for school bus driver salaries and fringe 
7.34 	benefits may either be directly charged to the appropriate transportation category or may 
7.35 	be allocated among transportation categories based on cost-per-mile or cost-per-student. 
8.1 	Expenditures by private contractors or individuals who provide transportation exclusively 
8.2 	in one transportation category must be charged directly to the appropriate transportation 
8.3 	category. Transportation services provided by contractor-owned school bus companies 
8.4 	incorporated under different names but owned by the same individual or group of 
8.5 	individuals must be treated as the same company for cost allocation purposes.
8.6 	(e) Notwithstanding paragraph (d), districts contracting for transportation services 
8.7 	are exempt from the standard cost allocation method for authorized and nonauthorized 
8.8 	transportation categories if the district: (1) bids its contracts separately for authorized and 
8.9 	nonauthorized transportation categories and for special transportation separate from regular 
8.10 	and excess transportation; (2) receives bids or quotes from more than one vendor for these 
8.11 	transportation categories; and (3) the district's cost-per-mile does not vary more than ten 
8.12 	percent among categories, excluding salaries and fringe benefits of bus aides. If the costs 
8.13 	reported by the district for contractor-owned operations vary by more than ten percent 
8.14 	among categories, the department shall require the district to reallocate its transportation 
8.15 	costs, excluding salaries and fringe benefits of bus aides, among all categories.

8.16 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 
8.17 	and later.

8.18 	Sec. 7. Minnesota Statutes 2012, section 124D.02, subdivision 1, is amended to read:
8.19 		Subdivision 1.Kindergarten instruction. The board may establish and maintain 
8.20 	one or more kindergartens for the instruction of children and after July 1, 1974, shall 
8.21 	provide kindergarten instruction for all eligible children, either in the district or in 
8.22 	another district. All children to be eligible for kindergarten must be at least five years 
8.23 	of age on September 1 of the calendar year in which the school year commences. In 
8.24 	addition all children selected under an early admissions policy established by the school 
8.25 	board may be admitted. If established, a board-adopted early admissions policy must 
8.26 	describe the process and procedures for comprehensive evaluation in cognitive, social, 
8.27 	and emotional developmental domains to help determine the child's ability to meet 
8.28 	kindergarten grade expectations and progress to first grade in the subsequent year. The 
8.29 	comprehensive evaluation must use valid and reliable instrumentation, be aligned with 
8.30 	state kindergarten expectations, and include a parent report and teacher observations of 
8.31 	the child's knowledge, skills, and abilities. The early admissions policy must be made 
8.32 	available to parents in an accessible format and is subject to review by the commissioner 
8.33 	of education. The evaluation is subject to section 127A.41. Nothing in this section 
8.34 	shall prohibit a school district from establishing Head Start, prekindergarten, or nursery 
8.35 	school classes for children below kindergarten age. Any school board with evidence that 
9.1 	providing kindergarten will cause an extraordinary hardship on the school district may 
9.2 	apply to the commissioner of education for an exception.

9.3 	Sec. 8. Minnesota Statutes 2012, section 124D.128, subdivision 2, is amended to read:
9.4 		Subd. 2.Commissioner designation. (a) A state-approved alternative program 
9.5 	designated by the state must be a site. A state-approved alternative program must provide 
9.6 	services to students who meet the criteria in section 124D.68 and who are enrolled in:
9.7 	(1) a district that is served by the state-approved alternative program; or
9.8 	(2) a charter school located within the geographic boundaries of a district that is 
9.9 	served by the state-approved alternative program.
9.10 	(b) A school district or charter school may be approved biennially by the state to 
9.11 	provide additional instructional programming that results in grade level acceleration. The 
9.12 	program must be designed so that students make grade progress during the school year 
9.13 	and graduate prior to the students' peers.
9.14 	(c) (b) To be designated, a district, charter school, or state-approved alternative 
9.15 	program must demonstrate to the commissioner that it will:
9.16 	(1) provide a program of instruction that permits pupils to receive instruction 
9.17 	throughout the entire year; and
9.18 	(2) develop and maintain a separate record system that, for purposes of section 
9.19 	126C.05, permits identification of membership attributable to pupils participating in the 
9.20 	program. The record system and identification must ensure that the program will not have 
9.21 	the effect of increasing the total average daily membership attributable to an individual 
9.22 	pupil as a result of a learning year program. The record system must include the date the 
9.23 	pupil originally enrolled in a learning year program, the pupil's grade level, the date of 
9.24 	each grade promotion, the average daily membership generated in each grade level, the 
9.25 	number of credits or standards earned, and the number needed to graduate.
9.26 	(d) (c) A student who has not completed a school district's graduation requirements 
9.27 	may continue to enroll in courses the student must complete in order to graduate until 
9.28 	the student satisfies the district's graduation requirements or the student is 21 years old, 
9.29 	whichever comes first.

9.30 	Sec. 9. Minnesota Statutes 2012, section 124D.4531, subdivision 1, is amended to read:
9.31 		Subdivision 1.Career and technical levy. (a) A district with a career and technical 
9.32 	program approved under this section for the fiscal year in which the levy is certified 
9.33 	may levy an amount equal to 35 percent of approved expenditures in the fiscal year in 
9.34 	which the levy is certified for the following:
10.1 	(1) salaries paid to essential, licensed personnel providing direct instructional 
10.2 	services to students in that fiscal year, including extended contracts, for services rendered 
10.3 	in the district's approved career and technical education programs, excluding salaries 
10.4 	reimbursed by another school district under clause (2);
10.5 	(2) amounts paid to another Minnesota school district for salaries of essential, 
10.6 	licensed personnel providing direct instructional services to students in that fiscal year for 
10.7 	services rendered in the district's approved career and technical education programs;
10.8 	(2) (3) contracted services provided by a public or private agency other than a 
10.9 	Minnesota school district or cooperative center under subdivision 7;
10.10 	(3) (4) necessary travel between instructional sites by licensed career and technical 
10.11 	education personnel;
10.12 	(4) (5) necessary travel by licensed career and technical education personnel for 
10.13 	vocational student organization activities held within the state for instructional purposes;
10.14 	(5) (6) curriculum development activities that are part of a five-year plan for 
10.15 	improvement based on program assessment;
10.16 	(6) (7) necessary travel by licensed career and technical education personnel for 
10.17 	noncollegiate credit-bearing professional development; and
10.18 	(7) (8) specialized vocational instructional supplies.
10.19 	(b) Up to ten percent of a district's career and technical levy may be spent on 
10.20 	equipment purchases. Districts using the career and technical levy for equipment 
10.21 	purchases must report to the department on the improved learning opportunities for 
10.22 	students that result from the investment in equipment.
10.23 	(c) The district must recognize the full amount of this levy as revenue for the fiscal 
10.24 	year in which it is certified.
10.25 	(d) The amount of the levy certified under this subdivision may not exceed 
10.26 	$17,850,000 for taxes payable in 2012, $15,520,000 for taxes payable in 2013, and 
10.27 	$15,393,000 for taxes payable in 2014.
10.28 	(e) If the estimated levy exceeds the amount in paragraph (d), the commissioner 
10.29 	must reduce the percentage in paragraph (a), clause (2), until the estimated levy no longer 
10.30 	exceeds the limit in paragraph (d).

10.31 	Sec. 10. Minnesota Statutes 2012, section 126C.01, is amended by adding a 
10.32 	subdivision to read:
10.33 		Subd. 3a.Referendum market value equalizing factor. The referendum market 
10.34 	value equalizing factor equals the quotient derived by dividing the total referendum market 
11.1 	value of all school districts in the state for the year before the year the levy is certified by 
11.2 	the total number of resident marginal cost pupil units in the state for the current school year.

11.3 	EFFECTIVE DATE. This section is effective for taxes payable in 2014 and later.

11.4 	Sec. 11. Minnesota Statutes 2012, section 126C.05, subdivision 1, is amended to read:
11.5 		Subdivision 1.Pupil unit. Pupil units for each Minnesota resident pupil under the 
11.6 	age of 21 or who meets the requirements of section 120A.20, subdivision 1, paragraph (c), 
11.7 	in average daily membership enrolled in the district of residence, in another district under 
11.8 	sections 123A.05 to 123A.08, 124D.03, 124D.08, or 124D.68; in a charter school under 
11.9 	section 124D.10; or for whom the resident district pays tuition under section 123A.18, 
11.10 	123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, subdivision 4, 124D.04, 
11.11 	124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65, shall be counted according to this 
11.12 	subdivision.
11.13 	(a) A prekindergarten pupil with a disability who is enrolled in a program approved 
11.14 	by the commissioner and has an individualized education program is counted as the ratio 
11.15 	of the number of hours of assessment and education service to 825 times 1.25 with a 
11.16 	minimum average daily membership of 0.28, but not more than 1.25 pupil units.
11.17 	(b) A prekindergarten pupil who is assessed but determined not to be disabled is 
11.18 	counted as the ratio of the number of hours of assessment service to 825 times 1.25.
11.19 	(c) A kindergarten pupil with a disability who is enrolled in a program approved 
11.20 	by the commissioner is counted as the ratio of the number of hours of assessment and 
11.21 	education services required in the fiscal year by the pupil's individualized education 
11.22 	program to 875, but not more than one.
11.23 	(d) A kindergarten pupil who is not included in paragraph (c) is counted as .612
11.24 	 1.0 pupil units if the pupil is enrolled in a free all-day, every day kindergarten program 
11.25 	available to all kindergarten pupils at the pupil's school, or is counted as .612 pupil units, 
11.26 	if the pupil is not enrolled in a free all-day, every day kindergarten program available to all 
11.27 	kindergarten pupils at the pupil's school. The annual school calendar for a kindergarten 
11.28 	program established by the school board under section 120A.02 must include at least 850 
11.29 	hours of instruction for a kindergarten pupil to be counted as 1.0 pupil units. 
11.30 	(e) A pupil who is in any of grades 1 to 3 is counted as 1.115 pupil units for fiscal 
11.31 	year 2000 and thereafter.
11.32 	(f) A pupil who is any of grades 4 to 6 is counted as 1.06 pupil units for fiscal 
11.33 	year 1995 and thereafter.
11.34 	(g) A pupil who is in any of grades 7 to 12 is counted as 1.3 pupil units.
12.1 	(h) A pupil who is in the postsecondary enrollment options program is counted 
12.2 	as 1.3 pupil units.

12.3 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
12.4 	and later.

12.5 	Sec. 12. Minnesota Statutes 2012, section 126C.05, subdivision 15, is amended to read:
12.6 		Subd. 15.Learning year pupil units. (a) When a pupil is enrolled in a learning 
12.7 	year program under section 124D.128, an area learning center or an alternative learning 
12.8 	program approved by the commissioner under sections 123A.05 and 123A.06, or a 
12.9 	contract alternative program under section 124D.68, subdivision 3, paragraph (d), or 
12.10 	subdivision 3a, for more than 1,020 hours in a school year for a secondary student, more 
12.11 	than 935 hours in a school year for an elementary student, more than 850 hours in a school 
12.12 	year for a kindergarten student without a disability in a full-day kindergarten program, 
12.13 	or more than 425 hours in a school year for a half-day kindergarten student without a 
12.14 	disability, that pupil may be counted as more than one pupil in average daily membership 
12.15 	for purposes of section 126C.10, subdivision 2a. The amount in excess of one pupil must 
12.16 	be determined by the ratio of the number of hours of instruction provided to that pupil in 
12.17 	excess of: (i) the greater of 1,020 hours or the number of hours required for a full-time 
12.18 	secondary pupil in the district to 1,020 for a secondary pupil; (ii) the greater of 935 hours 
12.19 	or the number of hours required for a full-time elementary pupil in the district to 935 for 
12.20 	an elementary pupil in grades 1 through 6; and (iii) the greater of 425 hours or the number 
12.21 	of hours required for a full-time kindergarten student without a disability in the district to 
12.22 	425 for a kindergarten student without a disability; and (iv) the greater of 425 hours or the 
12.23 	number of hours required for a half-time kindergarten student without a disability in the 
12.24 	district to 425 for a half-day kindergarten student without a disability. Hours that occur 
12.25 	after the close of the instructional year in June shall be attributable to the following fiscal 
12.26 	year. A kindergarten student must not be counted as more than 1.2 pupils in average daily 
12.27 	membership under this subdivision. A student in kindergarten or grades 1 through 12 must 
12.28 	not be counted as more than 1.2 pupils in average daily membership under this subdivision.
12.29 	(b)(i) To receive general education revenue for a pupil in an area learning center 
12.30 	or alternative learning program that has an independent study component, a district 
12.31 	must meet the requirements in this paragraph. The district must develop, for the pupil, 
12.32 	a continual learning plan consistent with section 124D.128, subdivision 3. Each school 
12.33 	district that has an area learning center or alternative learning program must reserve 
12.34 	revenue in an amount equal to at least 90 percent of the district average general education 
12.35 	revenue per pupil unit, minus an amount equal to the product of the formula allowance 
13.1 	according to section 126C.10, subdivision 2, times .0485, calculated without basic skills 
13.2 	and transportation sparsity revenue, times the number of pupil units generated by students 
13.3 	attending an area learning center or alternative learning program. The amount of reserved 
13.4 	revenue available under this subdivision may only be spent for program costs associated 
13.5 	with the area learning center or alternative learning program. Basic skills revenue 
13.6 	generated according to section 126C.10, subdivision 4, by pupils attending the eligible 
13.7 	program must be allocated to the program.
13.8 	(ii) General education revenue for a pupil in a state-approved alternative program 
13.9 	without an independent study component must be prorated for a pupil participating for less 
13.10 	than a full year, or its equivalent. The district must develop a continual learning plan for the 
13.11 	pupil, consistent with section 124D.128, subdivision 3. Each school district that has an area 
13.12 	learning center or alternative learning program must reserve revenue in an amount equal to 
13.13 	at least 90 percent of the district average general education revenue per pupil unit, minus 
13.14 	an amount equal to the product of the formula allowance according to section 126C.10, 
13.15 	subdivision 2, times .0485, calculated without basic skills and transportation sparsity 
13.16 	revenue, times the number of pupil units generated by students attending an area learning 
13.17 	center or alternative learning program. The amount of reserved revenue available under this 
13.18 	subdivision may only be spent for program costs associated with the area learning center or 
13.19 	alternative learning program. Basic skills revenue generated according to section 126C.10, 
13.20 	subdivision 4, by pupils attending the eligible program must be allocated to the program.
13.21 	(iii) General education revenue for a pupil in a state-approved alternative program 
13.22 	that has an independent study component must be paid for each hour of teacher contact 
13.23 	time and each hour of independent study time completed toward a credit or graduation 
13.24 	standards necessary for graduation. Average daily membership for a pupil shall equal the 
13.25 	number of hours of teacher contact time and independent study time divided by 1,020.
13.26 	(iv) For a state-approved alternative program having an independent study 
13.27 	component, the commissioner shall require a description of the courses in the program, the 
13.28 	kinds of independent study involved, the expected learning outcomes of the courses, and 
13.29 	the means of measuring student performance against the expected outcomes.

13.30 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
13.31 	and later.

13.32 	Sec. 13. Minnesota Statutes 2012, section 126C.10, subdivision 1, is amended to read:
13.33 		Subdivision 1.General education revenue.  The general education revenue for 
13.34 	each district equals the sum of the district's basic revenue, extended time revenue, gifted 
13.35 	and talented revenue, small schools revenue, basic skills revenue, training and experience 
14.1 	revenue, secondary sparsity revenue, elementary sparsity revenue, transportation sparsity 
14.2 	revenue, total operating capital revenue, equity revenue, alternative teacher compensation 
14.3 	revenue, and transition revenue.

14.4 	Sec. 14. Minnesota Statutes 2012, section 126C.10, subdivision 2, is amended to read:
14.5 		Subd. 2.Basic revenue. The basic revenue for each district equals the formula 
14.6 	allowance times the adjusted marginal cost pupil units for the school year. The formula 
14.7 	allowance for fiscal year 2011 is $5,124. The formula allowance for fiscal year 2012 is 
14.8 	$5,174. The formula allowance for fiscal year 2013 and subsequent years is $5,224. The 
14.9 	formula allowance for fiscal year 2014 is $5,328. The formula allowance for fiscal year 
14.10 	2015 and later is $5,433.

14.11 	Sec. 15. Minnesota Statutes 2012, section 126C.10, subdivision 14, is amended to read:
14.12 		Subd. 14.Uses of total operating capital revenue. Total operating capital revenue 
14.13 	may be used only for the following purposes:
14.14 	(1) to acquire land for school purposes;
14.15 	(2) to acquire or construct buildings for school purposes;
14.16 	(3) to rent or lease buildings, including the costs of building repair or improvement 
14.17 	that are part of a lease agreement;
14.18 	(4) to improve and repair school sites and buildings, and equip or reequip school 
14.19 	buildings with permanent attached fixtures, including library media centers;
14.20 	(5) for a surplus school building that is used substantially for a public nonschool 
14.21 	purpose;
14.22 	(6) to eliminate barriers or increase access to school buildings by individuals with a 
14.23 	disability;
14.24 	(7) to bring school buildings into compliance with the State Fire Code adopted 
14.25 	according to chapter 299F;
14.26 	(8) to remove asbestos from school buildings, encapsulate asbestos, or make 
14.27 	asbestos-related repairs;
14.28 	(9) to clean up and dispose of polychlorinated biphenyls found in school buildings;
14.29 	(10) to clean up, remove, dispose of, and make repairs related to storing heating fuel 
14.30 	or transportation fuels such as alcohol, gasoline, fuel oil, and special fuel, as defined 
14.31 	in section 296A.01;
14.32 	(11) for energy audits for school buildings and to modify buildings if the audit 
14.33 	indicates the cost of the modification can be recovered within ten years;
14.34 	(12) to improve buildings that are leased according to section 123B.51, subdivision 4;
15.1 	(13) to pay special assessments levied against school property but not to pay 
15.2 	assessments for service charges;
15.3 	(14) to pay principal and interest on state loans for energy conservation according to 
15.4 	section 216C.37 or loans made under the Douglas J. Johnson Economic Protection Trust 
15.5 	Fund Act according to sections 298.292 to 298.298;
15.6 	(15) to purchase or lease interactive telecommunications equipment;
15.7 	(16) by board resolution, to transfer money into the debt redemption fund to: (i) 
15.8 	pay the amounts needed to meet, when due, principal and interest payments on certain 
15.9 	obligations issued according to chapter 475; or (ii) pay principal and interest on debt 
15.10 	service loans or capital loans according to section 126C.70;
15.11 	(17) to pay operating capital-related assessments of any entity formed under a 
15.12 	cooperative agreement between two or more districts;
15.13 	(18) to purchase or lease computers and related materials hardware, initial purchase 
15.14 	of related software, but not annual licensing fees, copying machines, telecommunications 
15.15 	equipment, and other noninstructional equipment;
15.16 	(19) to purchase or lease assistive technology or equipment for instructional 
15.17 	programs;
15.18 	(20) to purchase textbooks as defined in section 123B.41, subdivision 2;
15.19 	(21) to purchase new and replacement library media resources or technology;
15.20 	(22) to lease or purchase vehicles;
15.21 	(23) to purchase or lease telecommunications equipment, computers, and related 
15.22 	equipment for integrated information management systems for:
15.23 	(i) managing and reporting learner outcome information for all students under a 
15.24 	results-oriented graduation rule;
15.25 	(ii) managing student assessment, services, and achievement information required 
15.26 	for students with individualized education programs; and
15.27 	(iii) other classroom information management needs;
15.28 	(24) to pay personnel costs directly related to the acquisition, operation, and 
15.29 	maintenance of telecommunications systems, computers, related equipment, and network 
15.30 	and applications software; and
15.31 	(25) to pay the costs directly associated with closing a school facility, including 
15.32 	moving and storage costs.

15.33 	Sec. 16. Minnesota Statutes 2012, section 126C.10, subdivision 24, is amended to read:
15.34 		Subd. 24.Equity revenue. (a) A school district qualifies for equity revenue if:
16.1 	(1) the school district's adjusted marginal cost pupil unit amount of basic revenue, 
16.2 	transition revenue, and referendum revenue is less than the value of the school district at 
16.3 	or immediately above the 95th percentile of school districts in its equity region for those 
16.4 	revenue categories; and
16.5 	(2) the school district's administrative offices are not located in a city of the first 
16.6 	class on July 1, 1999.
16.7 	(b) Equity revenue for a qualifying district that receives referendum revenue under 
16.8 	section 126C.17, subdivision 4, equals the product of (1) the district's adjusted marginal 
16.9 	cost pupil units for that year; times (2) the sum of (i) $13, plus (ii) $75, times the school 
16.10 	district's equity index computed under subdivision 27.
16.11 	(c) Equity revenue for a qualifying district that does not receive referendum revenue 
16.12 	under section 126C.17, subdivision 4, equals the product of the district's adjusted marginal 
16.13 	cost pupil units for that year times $13.
16.14 	(d) A school district's equity revenue is increased by the greater of zero or an amount 
16.15 	equal to the difference between $300 times the district's resident marginal cost pupil units 
16.16 	times the difference between ten percent of the statewide average and the district's amount 
16.17 	of referendum revenue per resident marginal cost pupil unit for that year and the district's 
16.18 	referendum revenue per resident marginal cost pupil unit. A school district's revenue 
16.19 	under this paragraph must not exceed $100,000 for that year.
16.20 	(e) A school district's equity revenue for a school district located in the metro equity 
16.21 	region equals the amount computed in paragraphs (b), (c), and (d) multiplied by 1.25.
16.22 	(f) For fiscal year 2007 and later, notwithstanding paragraph (a), clause (2), A school 
16.23 	district that has per pupil referendum revenue below the 95th percentile qualifies for
16.24 	 district's additional equity revenue equal to equals $46 times its adjusted marginal cost 
16.25 	pupil units.
16.26 	(g) A district that does not qualify for revenue under paragraph (f) qualifies for 
16.27 	equity revenue equal to $46 times its adjusted marginal cost pupil units.

16.28 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 
16.29 	and later.

16.30 	Sec. 17. Minnesota Statutes 2012, section 126C.10, subdivision 29, is amended to read:
16.31 		Subd. 29.Equity levy. To obtain equity revenue for fiscal year 2005 2015 and later, 
16.32 	a district may levy an amount not more than the product of its equity revenue for the fiscal 
16.33 	year times the lesser of one or the ratio of its referendum market value per resident marginal 
16.34 	cost pupil unit to $476,000 122 percent of the referendum market value equalizing factor.

17.1 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
17.2 	and later.

17.3 	Sec. 18. Minnesota Statutes 2012, section 126C.10, subdivision 32, is amended to read:
17.4 		Subd. 32.Transition levy. To obtain transition revenue for fiscal year 2005 2015
17.5 	 and later, a district may levy an amount not more than the product of its transition revenue 
17.6 	for the fiscal year times the lesser of one or the ratio of its referendum market value per 
17.7 	resident marginal cost pupil unit to $476,000 122 percent of the referendum market 
17.8 	value equalizing factor.

17.9 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
17.10 	and later.

17.11 	Sec. 19. Minnesota Statutes 2012, section 126C.15, subdivision 1, is amended to read:
17.12 		Subdivision 1.Use of revenue. The basic skills revenue under section 126C.10, 
17.13 	subdivision 4, must be reserved and used to meet the educational needs of pupils who 
17.14 	enroll under-prepared to learn and whose progress toward meeting state or local content 
17.15 	or performance standards is below the level that is appropriate for learners of their age. 
17.16 	Basic skills revenue may also be used for programs designed to prepare children and their 
17.17 	families for entry into school whether the student first enrolls in kindergarten or first grade. 
17.18 	Any of the following may be provided to meet these learners' needs:
17.19 	(1) direct instructional services under the assurance of mastery program according 
17.20 	to section 124D.66;
17.21 	(2) remedial instruction in reading, language arts, mathematics, other content areas, 
17.22 	or study skills to improve the achievement level of these learners;
17.23 	(3) additional teachers and teacher aides to provide more individualized instruction 
17.24 	to these learners through individual tutoring, lower instructor-to-learner ratios, or team 
17.25 	teaching;
17.26 	(4) a longer school day or week during the regular school year or through a summer 
17.27 	program that may be offered directly by the site or under a performance-based contract 
17.28 	with a community-based organization;
17.29 	(5) comprehensive and ongoing staff development consistent with district and site 
17.30 	plans according to section 122A.60, for teachers, teacher aides, principals, and other 
17.31 	personnel to improve their ability to identify the needs of these learners and provide 
17.32 	appropriate remediation, intervention, accommodations, or modifications;
17.33 	(6) instructional materials, digital learning, and technology appropriate for meeting 
17.34 	the individual needs of these learners;
18.1 	(7) programs to reduce truancy, encourage completion of high school, enhance 
18.2 	self-concept, provide health services, provide nutrition services, provide a safe and secure 
18.3 	learning environment, provide coordination for pupils receiving services from other 
18.4 	governmental agencies, provide psychological services to determine the level of social, 
18.5 	emotional, cognitive, and intellectual development, and provide counseling services, 
18.6 	guidance services, and social work services;
18.7 	(8) bilingual programs, bicultural programs, and programs for English learners;
18.8 	(9) all day kindergarten;
18.9 	(10) early education programs, parent-training programs, school readiness programs, 
18.10 	kindergarten programs for four-year-olds, voluntary home visits under section 124D.13, 
18.11 	subdivision 4, and other outreach efforts designed to prepare children for kindergarten;
18.12 	(11) extended school day and extended school year programs; and
18.13 	(11) (12) substantial parent involvement in developing and implementing remedial 
18.14 	education or intervention plans for a learner, including learning contracts between the 
18.15 	school, the learner, and the parent that establish achievement goals and responsibilities of 
18.16 	the learner and the learner's parent or guardian.

18.17 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 
18.18 	and later.

18.19 	Sec. 20. Minnesota Statutes 2012, section 126C.15, subdivision 2, is amended to read:
18.20 		Subd. 2.Building allocation. (a) A district or cooperative must allocate its 
18.21 	compensatory revenue to each school building in the district or cooperative where 
18.22 	the children who have generated the revenue are served unless the school district or 
18.23 	cooperative has received permission under Laws 2005, First Special Session chapter 5, 
18.24 	article 1, section 50, to allocate compensatory revenue according to student performance 
18.25 	measures developed by the school board.
18.26 	(b) Notwithstanding paragraph (a), a district or cooperative may allocate up to 
18.27 	five percent of the amount of compensatory revenue that the district receives to school 
18.28 	sites according to a plan adopted by the school board, and a district or cooperative may 
18.29 	allocate up to an additional five percent of its compensatory revenue for activities under 
18.30 	subdivision 1, clause (10), according to a plan adopted by the school board. The money 
18.31 	reallocated under this paragraph must be spent for the purposes listed in subdivision 1, but 
18.32 	may be spent on students in any grade, including students attending school readiness or 
18.33 	other prekindergarten programs.
18.34 	(c) For the purposes of this section and section 126C.05, subdivision 3, "building" 
18.35 	means education site as defined in section 123B.04, subdivision 1.
19.1 	(d) Notwithstanding section 123A.26, subdivision 1, compensatory revenue 
19.2 	generated by students served at a cooperative unit shall be paid to the cooperative unit.
19.3 	(e) A district or cooperative with school building openings, school building 
19.4 	closings, changes in attendance area boundaries, or other changes in programs or student 
19.5 	demographics between the prior year and the current year may reallocate compensatory 
19.6 	revenue among sites to reflect these changes. A district or cooperative must report to the 
19.7 	department any adjustments it makes according to this paragraph and the department must 
19.8 	use the adjusted compensatory revenue allocations in preparing the report required under 
19.9 	section 123B.76, subdivision 3, paragraph (c).

19.10 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 
19.11 	and later.

19.12 	Sec. 21. Minnesota Statutes 2012, section 126C.17, subdivision 1, is amended to read:
19.13 		Subdivision 1.Referendum allowance. (a) For fiscal year 2003 and later, a district's 
19.14 	initial referendum revenue allowance equals the sum of the allowance under section 
19.15 	126C.16, subdivision 2, plus any additional allowance per resident marginal cost pupil 
19.16 	unit authorized under subdivision 9 before May 1, 2001, for fiscal year 2002 and later, 
19.17 	plus the referendum conversion allowance approved under subdivision 13, minus $415. 
19.18 	For districts with more than one referendum authority, the reduction must be computed 
19.19 	separately for each authority. The reduction must be applied first to the referendum 
19.20 	conversion allowance and next to the authority with the earliest expiration date. A 
19.21 	district's initial referendum revenue allowance may not be less than zero.
19.22 	(b) For fiscal year 2003, a district's referendum revenue allowance equals the initial 
19.23 	referendum allowance plus any additional allowance per resident marginal cost pupil unit 
19.24 	authorized under subdivision 9 between April 30, 2001, and December 30, 2001, for 
19.25 	fiscal year 2003 and later.
19.26 	(c) For fiscal year 2004 and later, a district's referendum revenue allowance equals 
19.27 	the sum of:
19.28 	(1) the product of (i) the ratio of the resident marginal cost pupil units the district 
19.29 	would have counted for fiscal year 2004 under Minnesota Statutes 2002, section 126C.05, 
19.30 	to the district's resident marginal cost pupil units for fiscal year 2004, times (ii) the initial 
19.31 	referendum allowance plus any additional allowance per resident marginal cost pupil unit 
19.32 	authorized under subdivision 9 between April 30, 2001, and May 30, 2003, for fiscal 
19.33 	year 2003 and later, plus
19.34 	(2) any additional allowance per resident marginal cost pupil unit authorized under 
19.35 	subdivision 9 after May 30, 2003, for fiscal year 2005 and later.
20.1 	(a) A district's initial referendum allowance for fiscal year 2015 equals the result of 
20.2 	the following calculations:
20.3 	(1) multiply the referendum allowance the district would have received for fiscal 
20.4 	year 2015 under Minnesota Statutes 2012, section 126C.17, subdivision 1, based on 
20.5 	elections held before July 1, 2013, by the resident marginal cost pupil units the district 
20.6 	would have counted for fiscal year 2015 under Minnesota Statutes 2012, section 126C.05;
20.7 	(2) divide the result of clause (1) by the district's residential marginal cost pupil units 
20.8 	for fiscal year 2015; and
20.9 	(3) if the result of clause (2) is less than zero, set the allowance to zero.
20.10 	(b) A district's referendum allowance equals the sum of the district's initial 
20.11 	referendum allowance for fiscal year 2015, plus any additional referendum allowance per 
20.12 	resident marginal cost pupil unit authorized after June 30, 2013, minus any allowances 
20.13 	expiring in fiscal year 2016 or later.

20.14 	EFFECTIVE DATE. This section is effective for fiscal year 2015 and later.

20.15 	Sec. 22. Minnesota Statutes 2012, section 126C.17, subdivision 5, is amended to read:
20.16 		Subd. 5.Referendum equalization revenue. (a) For fiscal year 2003 and later,
20.17 	 A district's referendum equalization revenue equals the sum of the first tier referendum 
20.18 	equalization revenue and the second tier referendum equalization revenue.
20.19 	(b) A district's first tier referendum equalization revenue equals the district's first 
20.20 	tier referendum equalization allowance times the district's resident marginal cost pupil 
20.21 	units for that year.
20.22 	(c) For fiscal year 2006, a district's first tier referendum equalization allowance 
20.23 	equals the lesser of the district's referendum allowance under subdivision 1 or $500. For 
20.24 	fiscal year 2007, a district's first tier referendum equalization allowance equals the lesser 
20.25 	of the district's referendum allowance under subdivision 1 or $600.
20.26 	For fiscal year 2008 and later, A district's first tier referendum equalization allowance 
20.27 	equals the lesser of the district's referendum allowance under subdivision 1 or $700.
20.28 	(d) A district's second tier referendum equalization revenue equals the district's 
20.29 	second tier referendum equalization allowance times the district's resident marginal cost 
20.30 	pupil units for that year.
20.31 	(e) For fiscal year 2006, a district's second tier referendum equalization allowance 
20.32 	equals the lesser of the district's referendum allowance under subdivision 1 or 18.6 percent 
20.33 	of the formula allowance, minus the district's first tier referendum equalization allowance. 
20.34 	For fiscal year 2007 and later, A district's second tier referendum equalization allowance 
21.1 	equals the lesser of the district's referendum allowance under subdivision 1 or 26 percent 
21.2 	of the formula allowance, minus the district's first tier referendum equalization allowance.
21.3 	(f) Notwithstanding paragraph (e), the second tier referendum allowance for a 
21.4 	district qualifying for secondary sparsity revenue under section 126C.10, subdivision 7, or 
21.5 	elementary sparsity revenue under section 126C.10, subdivision 8, equals the district's 
21.6 	referendum allowance under subdivision 1 minus the district's first tier referendum 
21.7 	equalization allowance.

21.8 	Sec. 23. Minnesota Statutes 2012, section 126C.17, subdivision 6, is amended to read:
21.9 		Subd. 6.Referendum equalization levy. (a) For fiscal year 2003 and later,
21.10 	 A district's referendum equalization levy equals the sum of the first tier referendum 
21.11 	equalization levy and the second tier referendum equalization levy.
21.12 	(b) A district's first tier referendum equalization levy equals the district's first tier 
21.13 	referendum equalization revenue times the lesser of one or the ratio of the district's 
21.14 	referendum market value per resident marginal cost pupil unit to $476,000 122 percent of 
21.15 	the referendum market value equalizing factor.
21.16 	(c) A district's second tier referendum equalization levy equals the district's second 
21.17 	tier referendum equalization revenue times the lesser of one or the ratio of the district's 
21.18 	referendum market value per resident marginal cost pupil unit to $270,000 66 percent of 
21.19 	the referendum market value equalizing factor.

21.20 	EFFECTIVE DATE. This section is effective for fiscal year 2015 and later.

21.21 	Sec. 24. Minnesota Statutes 2012, section 126C.40, subdivision 6, is amended to read:
21.22 		Subd. 6.Lease purchase; installment buys. (a) Upon application to, and approval 
21.23 	by, the commissioner in accordance with the procedures and limits in subdivision 1, 
21.24 	paragraphs (a) and (b), a district, as defined in this subdivision, may:
21.25 	(1) purchase real or personal property under an installment contract or may lease 
21.26 	real or personal property with an option to purchase under a lease purchase agreement, by 
21.27 	which installment contract or lease purchase agreement title is kept by the seller or vendor 
21.28 	or assigned to a third party as security for the purchase price, including interest, if any; and
21.29 	(2) annually levy the amounts necessary to pay the district's obligations under the 
21.30 	installment contract or lease purchase agreement.
21.31 	(b) The obligation created by the installment contract or the lease purchase 
21.32 	agreement must not be included in the calculation of net debt for purposes of section 
21.33 	475.53, and does not constitute debt under other law. An election is not required in 
21.34 	connection with the execution of the installment contract or the lease purchase agreement.
22.1 	(c) The proceeds of the levy authorized by this subdivision must not be used to 
22.2 	acquire a facility to be primarily used for athletic or school administration purposes.
22.3 	(d) For the purposes of this subdivision, "district" means:
22.4 	(1) a school district which is eligible for revenue under section 124D.86, subdivision 
22.5 	3, clause (1), (2), or (3), and whose Special School District No. 1, Minneapolis; 
22.6 	Independent School District No. 625, St. Paul; Independent School District No. 709, 
22.7 	Duluth; or Independent School District No. 535, Rochester, if the district's desegregation
22.8 	 plan has been determined by the commissioner to be in compliance with Department of 
22.9 	Education rules relating to equality of educational opportunity and school desegregation 
22.10 	and, for a district eligible for revenue under section 124D.86, subdivision 3, clause (4) 
22.11 	or (5), where the acquisition of property under this subdivision is determined by the 
22.12 	commissioner to contribute to the implementation of the desegregation plan; or
22.13 	(2) a school district that participates in a joint program for interdistrict desegregation 
22.14 	with a district defined in clause (1) other districts eligible for revenue under section 
22.15 	124D.862 if the facility acquired under this subdivision is to be primarily used for the a
22.16 	 joint program for interdistrict desegregation and the commissioner determines that the 
22.17 	joint programs are being undertaken to implement the districts' desegregation plan.
22.18 	(e) Notwithstanding subdivision 1, the prohibition against a levy by a district to lease 
22.19 	or rent a district-owned building to itself does not apply to levies otherwise authorized 
22.20 	by this subdivision.
22.21 	(f) For the purposes of this subdivision, any references in subdivision 1 to building 
22.22 	or land shall include personal property.

22.23 	Sec. 25. Minnesota Statutes 2012, section 126C.44, is amended to read:
22.24 	126C.44 SAFE SCHOOLS LEVY.
22.25 	(a) Each district may make a levy on all taxable property located within the district 
22.26 	for the purposes specified in this section. The maximum amount which may be levied for 
22.27 	all costs under this section shall be equal to $30 $35 multiplied by the district's adjusted 
22.28 	marginal cost pupil units for the school year. The proceeds of the levy must be reserved 
22.29 	and used for directly funding the following purposes or for reimbursing the cities and 
22.30 	counties who contract with the district for the following purposes: 
22.31 	(1) to pay the costs incurred for the salaries, benefits, and transportation costs of 
22.32 	peace officers and sheriffs for liaison in services in the district's schools; 
22.33 	(2) to pay the costs for a drug abuse prevention program as defined in section 
22.34 	609.101, subdivision 3, paragraph (e), in the elementary schools; 
23.1 	(3) to pay the costs for a gang resistance education training curriculum in the 
23.2 	district's schools; 
23.3 	(4) to pay the costs for security in the district's schools and on school property; 
23.4 	(5) to pay the costs for other crime prevention, drug abuse, student and staff safety, 
23.5 	voluntary opt-in suicide prevention tools, and violence prevention measures taken by 
23.6 	the school district; or
23.7 	(6) to pay costs for licensed school counselors, licensed school nurses, licensed 
23.8 	school social workers, licensed school psychologists, and licensed alcohol and chemical 
23.9 	dependency counselors to help provide early responses to problems;
23.10 	(7) to pay for facility security enhancements including laminated glass, public 
23.11 	announcement systems, emergency communications devices, and equipment and facility 
23.12 	modifications related to violence prevention and facility security;
23.13 	(8) to pay for costs associated with improving the school climate; or
23.14 	(9) to pay costs associated with mental health services.
23.15 	(b) For expenditures under paragraph (a), clause (1), the district must initially 
23.16 	attempt to contract for services to be provided by peace officers or sheriffs with the 
23.17 	police department of each city or the sheriff's department of the county within the district 
23.18 	containing the school receiving the services. If a local police department or a county 
23.19 	sheriff's department does not wish to provide the necessary services, the district may 
23.20 	contract for these services with any other police or sheriff's department located entirely or 
23.21 	partially within the school district's boundaries.
23.22 	(b) (c) A school district that is a member of an intermediate school district may 
23.23 	include in its authority under this section the costs associated with safe schools activities 
23.24 	authorized under paragraph (a) for intermediate school district programs. This authority 
23.25 	must not exceed $10 times the adjusted marginal cost pupil units of the member districts. 
23.26 	This authority is in addition to any other authority authorized under this section. Revenue 
23.27 	raised under this paragraph must be transferred to the intermediate school district.

23.28 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
23.29 	and later.

23.30 	Sec. 26. Minnesota Statutes 2012, section 126C.48, subdivision 8, is amended to read:
23.31 		Subd. 8.Taconite payment and other reductions. (1) Reductions in levies 
23.32 	pursuant to subdivision 1 must be made prior to the reductions in clause (2).
23.33 	(2) Notwithstanding any other law to the contrary, districts that have revenue 
23.34 	pursuant to sections 298.018; 298.225; 298.24 to 298.28, except an amount distributed 
23.35 	under sections 298.26; 298.28, subdivision 4, paragraphs (c), clause (ii), and (d); 298.34
24.1 	to 298.39; 298.391 to 298.396; 298.405; 477A.15; and any law imposing a tax upon 
24.2 	severed mineral values must reduce the levies authorized by this chapter and chapters 
24.3 	120B, 122A, 123A, 123B, 124A, 124D, 125A, and 127A by 95 percent of the sum of the 
24.4 	previous year's revenue specified under this clause and the amount attributable to the same 
24.5 	production year distributed to the cities and townships within the school district under 
24.6 	section 298.28, subdivision 2, paragraph (c).
24.7 	(3) The amount of any voter approved referendum, facilities down payment, and 
24.8 	debt levies shall not be reduced by more than 50 percent under this subdivision. In 
24.9 	administering this paragraph, the commissioner shall first reduce the nonvoter approved 
24.10 	levies of a district; then, if any payments, severed mineral value tax revenue or recognized 
24.11 	revenue under paragraph (2) remains, the commissioner shall reduce any voter approved 
24.12 	referendum levies authorized under section 126C.17; then, if any payments, severed 
24.13 	mineral value tax revenue or recognized revenue under paragraph (2) remains, the 
24.14 	commissioner shall reduce any voter approved facilities down payment levies authorized 
24.15 	under section 123B.63 and then, if any payments, severed mineral value tax revenue or 
24.16 	recognized revenue under paragraph (2) remains, the commissioner shall reduce any 
24.17 	voter approved debt levies.
24.18 	(4) Before computing the reduction pursuant to this subdivision of the health and 
24.19 	safety levy authorized by sections 123B.57 and 126C.40, subdivision 5, the commissioner 
24.20 	shall ascertain from each affected school district the amount it proposes to levy under 
24.21 	each section or subdivision. The reduction shall be computed on the basis of the amount 
24.22 	so ascertained.
24.23 	(5) To the extent the levy reduction calculated under paragraph (2) exceeds the 
24.24 	limitation in paragraph (3), an amount equal to the excess must be distributed from the 
24.25 	school district's distribution under sections 298.225, 298.28, and 477A.15 in the following 
24.26 	year to the cities and townships within the school district in the proportion that their 
24.27 	taxable net tax capacity within the school district bears to the taxable net tax capacity of 
24.28 	the school district for property taxes payable in the year prior to distribution. No city or 
24.29 	township shall receive a distribution greater than its levy for taxes payable in the year prior 
24.30 	to distribution. The commissioner of revenue shall certify the distributions of cities and 
24.31 	towns under this paragraph to the county auditor by September 30 of the year preceding 
24.32 	distribution. The county auditor shall reduce the proposed and final levies of cities and 
24.33 	towns receiving distributions by the amount of their distribution. Distributions to the cities 
24.34 	and towns shall be made at the times provided under section 298.27.

24.35 	EFFECTIVE DATE. This section is effective for levies certified in 2014 and later.

25.1 	Sec. 27. Minnesota Statutes 2012, section 127A.47, subdivision 7, is amended to read:
25.2 		Subd. 7.Alternative attendance programs. (a) The general education aid and 
25.3 	special education aid for districts must be adjusted for each pupil attending a nonresident 
25.4 	district under sections 123A.05 to 123A.08, 124D.03, 124D.08, and 124D.68. The 
25.5 	adjustments must be made according to this subdivision.
25.6 	(a) (b) General education aid paid to a resident district must be reduced by an amount 
25.7 	equal to the referendum equalization aid attributable to the pupil in the resident district.
25.8 	(b) (c) General education aid paid to a district serving a pupil in programs listed in 
25.9 	this subdivision must be increased by an amount equal to the greater of (1) the referendum 
25.10 	equalization aid attributable to the pupil in the nonresident district; or (2) the product of 
25.11 	the district's open enrollment concentration index, the maximum amount of referendum 
25.12 	revenue in the first tier, and the district's net open enrollment pupil units for that year. A 
25.13 	district's open enrollment concentration index equals the greater of: (i) zero, or (ii) the 
25.14 	lesser of 1.0, or the difference between the district's ratio of open enrollment pupil units 
25.15 	served to its resident pupil units for that year and 0.2. This clause does not apply to a 
25.16 	school district where more than 50 percent of the open enrollment students are enrolled 
25.17 	solely in online learning courses.
25.18 	(c) (d) If the amount of the reduction to be made from the general education aid of 
25.19 	the resident district is greater than the amount of general education aid otherwise due the 
25.20 	district, the excess reduction must be made from other state aids due the district.
25.21 	(d) For fiscal year 2006, the district of residence must pay tuition to a district or an 
25.22 	area learning center, operated according to paragraph (f), providing special instruction and 
25.23 	services to a pupil with a disability, as defined in section 125A.02, or a pupil, as defined in 
25.24 	section 125A.51, who is enrolled in a program listed in this subdivision. The tuition must 
25.25 	be equal to (1) the actual cost of providing special instruction and services to the pupil, 
25.26 	including a proportionate amount for special transportation and unreimbursed building 
25.27 	lease and debt service costs for facilities used primarily for special education, minus (2) 
25.28 	if the pupil receives special instruction and services outside the regular classroom for 
25.29 	more than 60 percent of the school day, the amount of general education revenue and 
25.30 	referendum aid attributable to that pupil for the portion of time the pupil receives special 
25.31 	instruction and services outside of the regular classroom, excluding portions attributable to 
25.32 	district and school administration, district support services, operations and maintenance, 
25.33 	capital expenditures, and pupil transportation, minus (3) special education aid attributable 
25.34 	to that pupil, that is received by the district providing special instruction and services. 
25.35 	For purposes of this paragraph, general education revenue and referendum equalization 
26.1 	aid attributable to a pupil must be calculated using the serving district's average general 
26.2 	education revenue and referendum equalization aid per adjusted pupil unit.
26.3 	(e) For fiscal year 2007 and later, special education aid paid to a resident district must 
26.4 	be reduced by an amount equal to For purposes of this subdivision, the "unreimbursed 
26.5 	cost of providing special education and services" means the difference between: (1) the 
26.6 	actual cost of providing special instruction and services, including special transportation 
26.7 	and unreimbursed building lease and debt service costs for facilities used primarily for 
26.8 	special education, for a pupil with a disability, as defined in section 125A.02, or a pupil, as 
26.9 	defined in section 125A.51, who is enrolled in a program listed in this subdivision, minus 
26.10 	(2) if the pupil receives special instruction and services outside the regular classroom for 
26.11 	more than 60 percent of the school day, the amount of general education revenue and 
26.12 	referendum equalization aid attributable to that pupil for the portion of time the pupil 
26.13 	receives special instruction and services outside of the regular classroom, excluding 
26.14 	portions attributable to district and school administration, district support services, 
26.15 	operations and maintenance, capital expenditures, and pupil transportation, minus (3) 
26.16 	special education aid under section 125A.76 attributable to that pupil, that is received by 
26.17 	the district providing special instruction and services. For purposes of this paragraph, 
26.18 	general education revenue and referendum equalization aid attributable to a pupil must be 
26.19 	calculated using the serving district's average general education revenue and referendum 
26.20 	equalization aid per adjusted pupil unit. 
26.21 	(f) For fiscal year 2015 and later, special education aid paid to a resident district 
26.22 	must be reduced by an amount equal to 90 percent of the unreimbursed cost of providing 
26.23 	special education and services.
26.24 	(g) Notwithstanding paragraph (f), special education aid paid to a resident district 
26.25 	must be reduced by an amount equal to 100 percent of the unreimbursed cost of special 
26.26 	education and services provided to students at an intermediate district, cooperative, or 
26.27 	charter school where the percent of students eligible for special education services is at 
26.28 	least 70 percent of the charter school's total enrollment.
26.29 	(h) Special education aid paid to the district or cooperative providing special 
26.30 	instruction and services for the pupil, or to the fiscal agent district for a cooperative, 
26.31 	must be increased by the amount of the reduction in the aid paid to the resident district
26.32 	 under paragraphs (f) and (g). If the resident district's special education aid is insufficient 
26.33 	to make the full adjustment, the remaining adjustment shall be made to other state aids 
26.34 	due to the district.
26.35 	(f) (i) An area learning center operated by a service cooperative, intermediate 
26.36 	district, education district, or a joint powers cooperative may elect through the action of 
27.1 	the constituent boards to charge the resident district tuition for pupils rather than to have 
27.2 	the general education revenue paid to a fiscal agent school district. Except as provided in 
27.3 	paragraph (d) or (e) (f) or (g), the district of residence must pay tuition equal to at least 90 
27.4 	percent of the district average general education revenue per pupil unit minus an amount 
27.5 	equal to the product of the formula allowance according to section 126C.10, subdivision 
27.6 	2, times .0485, calculated without compensatory revenue and transportation sparsity 
27.7 	revenue, times the number of pupil units for pupils attending the area learning center.

27.8 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
27.9 	and later.

27.10 	Sec. 28. EQUITY AID; FISCAL YEAR 2014.
 27.11 	For fiscal year 2014 only, the commissioner must calculate and pay to school 
27.12 	districts in state aid the difference between the equity revenue actually received under 
27.13 	Minnesota Statutes, section 126C.10, and the amount the district would have received 
27.14 	under Minnesota Statutes 2012, section 126C.10.

27.15 	Sec. 29. APPROPRIATIONS.
 27.16 		Subdivision 1.Department of Education. The sums indicated in this section are 
27.17 	appropriated from the general fund to the Department of Education for the fiscal years 
27.18 	designated.
27.19 		Subd. 2.General education aid. For general education aid under Minnesota 
27.20 	Statutes, section 126C.13, subdivision 4:

27.21		$
	6,092,415,000
	.....
	2014
	
27.22		$
	6,440,890,000
	.....
	2015
	
27.23 	The 2014 appropriation includes $781,842,000 for 2013 and $5,310,573,000 for 
27.24 	2014.
27.25 	The 2015 appropriation includes $808,460,000 for 2014 and $5,632,430,000 for 
27.26 	2015.
27.27 		Subd. 3.Enrollment options transportation. For transportation of pupils attending 
27.28 	postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation 
27.29 	of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

27.30		$
	44,000
	.....
	2014
	
27.31		$
	48,000
	.....
	2015
	
28.1 		Subd. 4.Abatement revenue. For abatement aid under Minnesota Statutes, section 
28.2 	127A.49:

28.3		$
	2,747,000
	.....
	2014
	
28.4		$
	3,136,000
	.....
	2015
	
28.5 	The 2014 appropriation includes $301,000 for 2013 and $2,446,000 for 2014.
28.6 	The 2015 appropriation includes $385,000 for 2014 and $2,751,000 for 2015.
28.7 		Subd. 5.Consolidation transition. For districts consolidating under Minnesota 
28.8 	Statutes, section 123A.485:

28.9		$
	472,000
	.....
	2014
	
28.10		$
	480,000
	.....
	2015
	
28.11 	The 2014 appropriation includes $40,000 for 2013 and $432,000 for 2014.
28.12 	The 2015 appropriation includes $68,000 for 2014 and $412,000 for 2015.
28.13 		Subd. 6.Nonpublic pupil education aid. For nonpublic pupil education aid under 
28.14 	Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:

28.15		$
	15,660,000
	.....
	2014
	
28.16		$
	16,324,000
	.....
	2015
	
28.17 	The 2014 appropriation includes $2,099,000 for 2013 and $13,561,000 for 2014.
28.18 	The 2015 appropriation includes $2,121,000 for 2014 and $14,203,000 for 2015.
28.19 		Subd. 7.Nonpublic pupil transportation. For nonpublic pupil transportation aid 
28.20 	under Minnesota Statutes, section 123B.92, subdivision 9:

28.21		$
	18,656,000
	.....
	2014
	
28.22		$
	19,127,000
	.....
	2015
	
28.23 	The 2014 appropriation includes $2,668,000 for 2013 and $15,988,000 for 2014.
28.24 	The 2015 appropriation includes $2,501,000 for 2014 and $16,626,000 for 2015.
28.25 		Subd. 8.One-room schoolhouse. For a grant to Independent School District No. 
28.26 	690, Warroad, to operate the Angle Inlet School:

28.27		$
	65,000
	.....
	2014
	
28.28		$
	65,000
	.....
	2015
	
28.29 		Subd. 9.Compensatory revenue pilot program. For grants for participation in the 
28.30 	compensatory revenue pilot program under Laws 2005, First Special Session chapter 5, 
28.31 	article 1, section 50:

28.32		$
	2,325,000
	.....
	2014
	
28.33		$
	2,325,000
	.....
	2015
	
29.1 	Of this amount, $1,500,000 each year is for a grant to Independent School District 
29.2 	No. 11, Anoka-Hennepin; $75,000 each year is for a grant to Independent School District 
29.3 	No. 286, Brooklyn Center; $210,000 each year is for a grant to Independent School 
29.4 	District No. 279, Osseo; $160,000 each year is for a grant to Independent School District 
29.5 	No. 281, Robbinsdale; $165,000 each year is for a grant to Independent School District 
29.6 	No. 535, Rochester; $65,000 each year is for a grant to Independent School District No. 
29.7 	833, South Washington County; and $150,000 each year is for a grant to Independent 
29.8 	School District No. 241, Albert Lea.
29.9 	If a grant to a specific school district is not awarded, the commissioner may increase 
29.10 	the aid amounts to any of the remaining participating school districts.
29.11 	This appropriation is part of the base budget for subsequent fiscal years.

29.12 	Sec. 30.  REPEALER.
 29.13 	Minnesota Statutes 2012, section 126C.17, subdivision 13, is repealed July 1, 2013.

29.14 	ARTICLE 2
29.15 	STUDENT ACCOUNTABILITY

29.16 	Section 1. [120B.018] DEFINITIONS.
29.17 		Subdivision 1.Scope. The definitions in this section apply to this chapter.
29.18 		Subd. 2.Academic standard. "Academic standard" means a summary description 
29.19 	of student learning in a required content area under section 120B.021 or elective content 
29.20 	area under section 120B.022.
29.21 		Subd. 3.Career and college ready benchmark. "Career and college ready 
29.22 	benchmark" means specific knowledge or skill that a student must attain to complete part 
29.23 	of an academic standard.
29.24 		Subd. 4.Credit. "Credit" means the determination by the local school district that a 
29.25 	student successfully completed an academic year of study or demonstrated attainment of 
29.26 	applicable subject matter.
29.27 		Subd. 5.Elective standard. "Elective standard" means a locally adopted 
29.28 	expectation for student learning in career and technical education or world languages.
29.29 		Subd. 6.Required standard. "Required standard" means (1) a statewide adopted 
29.30 	expectation for student learning in the content areas of language arts, mathematics, 
29.31 	science, social studies, physical education, and the arts or (2) a locally adopted expectation 
29.32 	for student learning in health or the arts.
29.33 		Subd. 7.School site. "School site" means a separate facility, or a separate program 
29.34 	within a facility that a local school board recognizes as a school site for funding purposes.

30.1 	Sec. 2. Minnesota Statutes 2012, section 120B.02, is amended to read:
30.2 	120B.02 EDUCATIONAL EXPECTATIONS AND GRADUATION 
30.3 	REQUIREMENTS FOR MINNESOTA'S STUDENTS.
30.4 		Subdivision 1.Educational expectations. (a) The legislature is committed to 
30.5 	establishing rigorous academic standards for Minnesota's public school students. To 
30.6 	that end, the commissioner shall adopt in rule statewide academic standards. The 
30.7 	commissioner shall not prescribe in rule or otherwise the delivery system, classroom 
30.8 	assessments, or form of instruction that school sites must use. For purposes of this chapter, 
30.9 	a school site is a separate facility, or a separate program within a facility that a local school 
30.10 	board recognizes as a school site for funding purposes.
30.11 	(b) All commissioner actions regarding the rule must be premised on the following:
30.12 	(1) the rule is intended to raise academic expectations for students, teachers, and 
30.13 	schools;
30.14 	(2) any state action regarding the rule must evidence consideration of school district 
30.15 	autonomy; and
30.16 	(3) the Department of Education, with the assistance of school districts, must make 
30.17 	available information about all state initiatives related to the rule to students and parents, 
30.18 	teachers, and the general public in a timely format that is appropriate, comprehensive, and 
30.19 	readily understandable.
30.20 	(c) When fully implemented, the requirements for high school graduation in 
30.21 	Minnesota must require students to satisfactorily complete, as determined by the school 
30.22 	district, the course credit requirements under section 120B.024, all state academic 
30.23 	standards or local academic standards where state standards do not apply, and successfully 
30.24 	pass graduation examinations as required under section 120B.30.
30.25 	(d) (c) The commissioner shall periodically review and report on the state's 
30.26 	assessment process.
30.27 	(e) (d) School districts are not required to adopt specific provisions of the federal 
30.28 	School-to-Work programs.
30.29 		Subd. 2.Graduation requirements. To graduate from high school, students must 
30.30 	demonstrate to their enrolling school district or school their satisfactory completion of the 
30.31 	credit requirements under section 120B.024 and their attainment of academic standards 
30.32 	and career and college readiness benchmarks on a nationally normed college entrance 
30.33 	exam under section 120B.30. A school district must adopt graduation requirements that 
30.34 	meet or exceed state graduation requirements established in law or rule.

31.1 	EFFECTIVE DATE. This section is effective August 1, 2013, and applies to 
31.2 	students entering grade 8 in the 2013-2014 school year and later.

31.3 	Sec. 3. Minnesota Statutes 2012, section 120B.021, subdivision 1, is amended to read:
31.4 		Subdivision 1.Required academic standards. (a) The following subject areas 
31.5 	are required for statewide accountability:
31.6 	(1) language arts;
31.7 	(2) mathematics;
31.8 	(3) science;
31.9 	(4) social studies, including history, geography, economics, and government and 
31.10 	citizenship;
31.11 	(5) physical education;
31.12 	(6) health, for which locally developed academic standards apply; and
31.13 	(7) the arts, for which statewide or locally developed academic standards apply, as 
31.14 	determined by the school district. Public elementary and middle schools must offer at least 
31.15 	three and require at least two of the following four arts areas: dance; music; theater; and 
31.16 	visual arts. Public high schools must offer at least three and require at least one of the 
31.17 	following five arts areas: media arts; dance; music; theater; and visual arts.
31.18 	The commissioner must submit proposed standards in science and social studies to 
31.19 	the legislature by February 1, 2004.
31.20 	(b) For purposes of applicable federal law, the academic standards for language arts, 
31.21 	mathematics, and science apply to all public school students, except the very few students 
31.22 	with extreme cognitive or physical impairments for whom an individualized education 
31.23 	program team has determined that the required academic standards are inappropriate. An 
31.24 	individualized education program team that makes this determination must establish 
31.25 	alternative standards.
31.26 	A school district, no later than the 2007-2008 school year, must adopt graduation 
31.27 	requirements that meet or exceed state graduation requirements established in law or rule. 
31.28 	A school district that incorporates these state graduation requirements before the 2007-2008 
31.29 	school year must provide students who enter the 9th grade in or before the 2003-2004 
31.30 	school year the opportunity to earn a diploma based on existing locally established 
31.31 	graduation requirements in effect when the students entered the 9th grade.(c) District 
31.32 	efforts to develop, implement, or improve instruction or curriculum as a result of the 
31.33 	provisions of this section must be consistent with sections 120B.10, 120B.11, and 120B.20.
32.1 	The commissioner must include the contributions of Minnesota American Indian 
32.2 	tribes and communities as they relate to the academic standards during the review and 
32.3 	revision of the required academic standards.

32.4 	Sec. 4. Minnesota Statutes 2012, section 120B.023, is amended to read:
32.5 	120B.023 BENCHMARKS.
32.6 		Subdivision 1.Benchmarks implement, supplement statewide academic 
32.7 	standards. (a) The commissioner must supplement required state academic standards with 
32.8 	grade-level benchmarks. High school career and college ready benchmarks may cover 
32.9 	more than one grade. The benchmarks must implement statewide academic standards 
32.10 	by specifying the academic knowledge and skills that Schools must offer and students 
32.11 	must achieve all benchmarks for an academic standard to satisfactorily complete a that
32.12 	 state standard. The commissioner must publish benchmarks to inform and guide parents, 
32.13 	teachers, school districts, and other interested persons and to use in developing tests 
32.14 	consistent with the benchmarks.
32.15 	(b) The commissioner shall publish benchmarks in the State Register and transmit 
32.16 	the benchmarks in any other manner that informs and guides parents, teachers, school 
32.17 	districts, and other interested persons and makes them accessible to the general public. The 
32.18 	commissioner must use benchmarks in developing career and college readiness assessments 
32.19 	under section 120B.30. The commissioner may charge a reasonable fee for publications.
32.20 	(c) Once established, the commissioner may change the benchmarks only with 
32.21 	specific legislative authorization and after completing a review under subdivision 2.
32.22 	(d) The commissioner must develop and implement a system for reviewing each 
32.23 	of the required academic standards and related benchmarks and elective standards on a 
32.24 	periodic cycle, consistent with subdivision 2.
32.25 	(e) (d) The benchmarks are not subject to chapter 14 and section 14.386 does not 
32.26 	apply.
32.27 		Subd. 2.Revisions and reviews required. (a) The commissioner of education must 
32.28 	revise and appropriately embed technology and information literacy standards consistent 
32.29 	with recommendations from school media specialists into the state's academic standards 
32.30 	and graduation requirements and implement a review six-year cycle for to review and 
32.31 	revise state academic standards and related benchmarks, consistent with this subdivision. 
32.32 	During each six-year review and revision cycle, the commissioner also must examine the 
32.33 	alignment of each required academic standard and related benchmark with the knowledge 
32.34 	and skills students need for career and college readiness and advanced work in the 
32.35 	particular subject area. The commissioner must include the contributions of Minnesota 
33.1 	American Indian tribes and communities as related to the academic standards during the 
33.2 	review and revision of the required academic standards.
33.3 	(b) The commissioner in the 2006-2007 school year must revise and align the state's 
33.4 	academic standards and high school graduation requirements in mathematics to require 
33.5 	that students satisfactorily complete the revised mathematics standards, beginning in the 
33.6 	2010-2011 school year. Under the revised standards:
33.7 	(1) students must satisfactorily complete an algebra I credit by the end of eighth 
33.8 	grade; and
33.9 	(2) students scheduled to graduate in the 2014-2015 school year or later must 
33.10 	satisfactorily complete an algebra II credit or its equivalent.
33.11 	(b) The commissioner also must ensure that the statewide mathematics assessments 
33.12 	administered to students in grades 3 through 8 and 11 are aligned with the state academic 
33.13 	standards in mathematics, consistent with section 120B.30, subdivision 1, paragraph 
33.14 	(b). The commissioner must implement a review of the academic standards and related 
33.15 	benchmarks in mathematics beginning in the 2015-2016 school year.
33.16 	(c) The commissioner in the 2007-2008 school year must revise and align the state's 
33.17 	academic standards and high school graduation requirements in the arts to require that 
33.18 	students satisfactorily complete the revised arts standards beginning in the 2010-2011 
33.19 	school year. The commissioner must implement a review of the academic standards and 
33.20 	related benchmarks in arts beginning in the 2016-2017 school year.
33.21 	(d) The commissioner in the 2008-2009 school year must revise and align the state's 
33.22 	academic standards and high school graduation requirements in science to require that 
33.23 	students satisfactorily complete the revised science standards, beginning in the 2011-2012 
33.24 	school year. Under the revised standards, students scheduled to graduate in the 2014-2015 
33.25 	school year or later must satisfactorily complete a chemistry or physics credit or a career 
33.26 	and technical education credit that meets standards underlying the chemistry, physics, 
33.27 	or biology credit or a combination of those standards approved by the district. The 
33.28 	commissioner must implement a review of the academic standards and related benchmarks 
33.29 	in science beginning in the 2017-2018 school year.
33.30 	(e) The commissioner in the 2009-2010 school year must revise and align the state's 
33.31 	academic standards and high school graduation requirements in language arts to require 
33.32 	that students satisfactorily complete the revised language arts standards beginning in the 
33.33 	2012-2013 school year. The commissioner must implement a review of the academic 
33.34 	standards and related benchmarks in language arts beginning in the 2018-2019 school year.
33.35 	(f) The commissioner in the 2010-2011 school year must revise and align the state's 
33.36 	academic standards and high school graduation requirements in social studies to require 
34.1 	that students satisfactorily complete the revised social studies standards beginning in the 
34.2 	2013-2014 school year. The commissioner must implement a review of the academic 
34.3 	standards and related benchmarks in social studies beginning in the 2019-2020 school year.
34.4 	(g) School districts and charter schools must revise and align local academic 
34.5 	standards and high school graduation requirements in health, world languages, and career 
34.6 	and technical education to require students to complete the revised standards beginning 
34.7 	in a school year determined by the school district or charter school. School districts and 
34.8 	charter schools must formally establish a periodic review cycle for the academic standards 
34.9 	and related benchmarks in health, world languages, and career and technical education.

34.10 	Sec. 5. Minnesota Statutes 2012, section 120B.024, is amended to read:
34.11 	120B.024 GRADUATION REQUIREMENTS; COURSE CREDITS.
34.12 		Subdivision 1.Graduation requirements. (a) Students beginning 9th grade in the 
34.13 	2011-2012 school year and later must successfully complete the following high school 
34.14 	level course credits for graduation:
34.15 	(1) four credits of language arts sufficient to satisfy all of the academic standards 
34.16 	in English language arts;
34.17 	(2) three credits of mathematics, encompassing at least algebra, geometry, statistics, 
34.18 	and probability including an algebra II credit or its equivalent, sufficient to satisfy all of 
34.19 	the academic standard standards in mathematics;
34.20 	(3) an algebra I credit by the end of grade 8 sufficient to satisfy all of the grade 8 
34.21 	standards in mathematics;
34.22 	(3) (4) three credits of science, including at least: (i) one credit in biology; and (ii) 
34.23 	one chemistry or physics credit or a career and technical education credit that meets 
34.24 	standards underlying the chemistry, physics, or biology credit or a combination of those 
34.25 	standards approved by the district, but meeting biology standards under this item does not 
34.26 	meet the biology requirement under item (i);
34.27 	(4) (5) three and one-half credits of social studies, encompassing at least United 
34.28 	States history, geography, government and citizenship, world history, and economics or 
34.29 	three credits of social studies encompassing at least United States history, geography, 
34.30 	government and citizenship, and world history, and one-half credit of economics taught in 
34.31 	a school's social studies, agriculture education, or business department sufficient to satisfy 
34.32 	all of the academic standards in social studies;
34.33 	(5) (6) one credit in of the arts sufficient to satisfy all of the state or local academic 
34.34 	standards in the arts; and
34.35 	(6) (7) a minimum of seven elective course credits.
35.1 	A course credit is equivalent to a student successfully completing an academic 
35.2 	year of study or a student mastering the applicable subject matter, as determined by the 
35.3 	local school district.
35.4 		Subd. 2.Credit equivalencies. (a) A one-half credit of economics taught in a 
35.5 	school's agriculture education or business department may fulfill a one-half credit in 
35.6 	social studies under subdivision 1, clause (5), if the credit is sufficient to satisfy all of the 
35.7 	academic standards in economics.
35.8 	(b) An agriculture science course may fulfill a science credit requirement other 
35.9 	than the specified science credit in biology under paragraph (a) subdivision 1, clause 
35.10 	(3) (4), item (i).
35.11 	(c) A career and technical education course may fulfill a mathematics or arts credit 
35.12 	requirement or a science credit requirement other than the specified science credit in 
35.13 	biology under paragraph (a) subdivision 1, clause (2), (3), or (5) (4), or (6).

35.14 	EFFECTIVE DATE. This section is effective August 1, 2013.

35.15 	Sec. 6. Minnesota Statutes 2012, section 120B.125, is amended to read:
35.16 	120B.125 PLANNING FOR STUDENTS' SUCCESSFUL TRANSITION 
35.17 	TO POSTSECONDARY EDUCATION AND EMPLOYMENT; INVOLUNTARY 
35.18 	CAREER TRACKING PROHIBITED.
35.19 	(a) Consistent with sections 120B.128, 120B.13, 120B.131, 120B.132, 120B.14, 
35.20 	120B.15, 120B.30, subdivision 1, paragraph (c), 125A.08, and other related sections, 
35.21 	school districts are strongly encouraged to, beginning in the 2013-2014 school year, must
35.22 	 assist all students by no later than grade 9 to explore their college and career interests and 
35.23 	aspirations and develop a plan for a smooth and successful transition to postsecondary 
35.24 	education or employment. All students' plans must be designed to:
35.25 	(1) provide a comprehensive academic plan for completing a college and 
35.26 	career-ready curriculum premised on meeting state and local academic standards and 
35.27 	developing 21st century skills such as team work, collaboration, and good work habits;
35.28 	(2) emphasize academic rigor and high expectations;
35.29 	(3) help students identify personal learning styles that may affect their postsecondary 
35.30 	education and employment choices;
35.31 	(4) help students succeed at gaining gain access to postsecondary education and 
35.32 	career options;
35.33 	(5) integrate strong academic content into career-focused courses and integrate 
35.34 	relevant career-focused courses into strong academic content;
36.1 	(6) help students and families identify and gain access to appropriate counseling 
36.2 	and other supports and assistance that enable students to complete required coursework, 
36.3 	prepare for postsecondary education and careers, and obtain information about 
36.4 	postsecondary education costs and eligibility for financial aid and scholarship;
36.5 	(7) help students and families identify collaborative partnerships of kindergarten 
36.6 	through grade 12 schools, postsecondary institutions, economic development agencies, and 
36.7 	employers that support students' transition to postsecondary education and employment 
36.8 	and provide students with experiential learning opportunities; and
36.9 	(8) be reviewed and revised at least annually by the student, the student's parent or 
36.10 	guardian, and the school or district to ensure that the student's course-taking schedule 
36.11 	keeps the student "on track" making adequate progress to meet state and local high school 
36.12 	graduation requirements and with a reasonable chance to succeed with employment or 
36.13 	postsecondary education without the need to first complete remedial course work.
36.14 	(b) A school district may develop grade-level curricula or provide instruction that 
36.15 	introduces students to various careers, but must not require any curriculum, instruction, 
36.16 	or employment-related activity that obligates an elementary or secondary student to 
36.17 	involuntarily select a career, career interest, employment goals, or related job training.
36.18 	(c) School districts are encouraged to seek and use revenue and in-kind contributions 
36.19 	from nonstate sources and to seek administrative cost savings through innovative local 
36.20 	funding arrangements, such as the Collaboration Among Rochester Educators (CARE) 
36.21 	model for funding postsecondary enrollment options, among other sources, for purposes 
36.22 	of implementing this section.

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

36.24 	Sec. 7. Minnesota Statutes 2012, section 120B.128, is amended to read:
36.25 	120B.128 EDUCATIONAL PLANNING AND ASSESSMENT SYSTEM 
36.26 	(EPAS) PROGRAM.
36.27 	(a) School districts and charter schools may elect to participate in the Educational 
36.28 	Planning and Assessment System (EPAS) program offered by ACT, Inc. to provide a 
36.29 	longitudinal, systematic approach to student educational and career planning, assessment, 
36.30 	instructional support, and evaluation. The EPAS achievement tests include English, 
36.31 	reading, mathematics, science, and components on planning for high school and 
36.32 	postsecondary education, interest inventory, needs assessments, and student education 
36.33 	plans. These tests are linked to the ACT assessment for college admission and allow 
37.1 	students, parents, teachers, and schools to determine the student's college readiness before 
37.2 	grades 11 and 12.
37.3 	(b) The commissioner of education shall provide ACT Explore tests for students 
37.4 	in grade 8 and the ACT Plan test for students in grade 10 to assess individual student 
37.5 	academic strengths and weaknesses, academic achievement and progress, higher order 
37.6 	thinking skills, and college readiness.
37.7 	(c) Students enrolled in grade 8 through the 2012-2013 school year who have 
37.8 	not yet demonstrated proficiency on the Minnesota comprehensive assessments, the 
37.9 	graduation-required assessments for diploma, or the basic skills testing requirements 
37.10 	prior to high school graduation may satisfy state high school graduation requirements 
37.11 	for assessments in reading, mathematics, and writing by taking the graduation-required 
37.12 	assessment for diploma in reading, mathematics, or writing under Minnesota Statutes 
37.13 	2012, section 120B.30, subdivision 1, paragraph (c), clauses (1) and (2), the WorkKeys 
37.14 	job skills assessment, the Compass computer-adaptive college placement test, or the 
37.15 	ACT assessment for college admission.
37.16 	(d) The state shall pay the test costs for school districts and charter schools that 
37.17 	choose to participate in the EPAS program public school students to participate in the 
37.18 	assessments under this section. The commissioner shall establish an application procedure 
37.19 	and a process for state payment of costs.

37.20 	EFFECTIVE DATE. This section is effective the day following final enactment 
37.21 	and applies through the 2013-2014 school year.

37.22 	Sec. 8. [120B.21] MENTAL HEALTH EDUCATION.
37.23 	School districts and charter schools are encouraged to provide mental health 
37.24 	instruction for students in grades 6 through 12 aligned with local health standards and 
37.25 	integrated into existing programs, curriculum, or the general school environment of a 
37.26 	district or charter school. The commissioner, in consultation with the commissioner of 
37.27 	human services and mental health organizations, is encouraged to provide districts and 
37.28 	charter schools with:
37.29 	(1) age-appropriate model learning activities for grades 6 through 12 that encompass 
37.30 	the mental health components of the National Health Education Standards and the 
37.31 	benchmarks developed by the department's quality teaching network in health and best 
37.32 	practices in mental health education; and
37.33 	(2) a directory of resources for planning and implementing age-appropriate mental 
37.34 	health curriculum and instruction in grades 6 through 12.

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

38.2 	Sec. 9. Minnesota Statutes 2012, section 120B.30, subdivision 1, is amended to read:
38.3 		Subdivision 1.Statewide testing.  (a) The commissioner, with advice from experts 
38.4 	with appropriate technical qualifications and experience and stakeholders, consistent 
38.5 	with subdivision 1a, shall include in the comprehensive assessment system, for each 
38.6 	grade level to be tested, state-constructed tests developed from and as computer-adaptive 
38.7 	reading and mathematics assessments for students that are aligned with the state's required 
38.8 	academic standards under section 120B.021, include multiple choice questions, and be
38.9 	 are administered annually to all students in grades 3 through 8 7. State-developed high 
38.10 	school tests aligned with the state's required academic standards under section 120B.021 
38.11 	and administered to all high school students in a subject other than writing must include 
38.12 	multiple choice questions. The commissioner shall establish one or more months during 
38.13 	which schools shall administer the tests to students each school year. For students enrolled 
38.14 	in grade 8 before the 2005-2006 school year, Minnesota basic skills tests in reading, 
38.15 	mathematics, and writing shall fulfill students' basic skills testing requirements for a 
38.16 	passing state notation. The passing scores of basic skills tests in reading and mathematics 
38.17 	are the equivalent of 75 percent correct for students entering grade 9 based on the 
38.18 	first uniform test administered in February 1998. Students who have not successfully 
38.19 	passed a Minnesota basic skills test by the end of the 2011-2012 school year must pass 
38.20 	the graduation-required assessments for diploma under paragraph (c), except that for 
38.21 	the 2012-2013 and 2013-2014 school years only, these students may satisfy the state's 
38.22 	graduation test requirement for math by complying with paragraph (d), clauses (1) and 
38.23 	(3) For students enrolled in grade 8 in the 2005-2006 through 2012-2013 school years, 
38.24 	students' state graduation requirements include the requirements under: (i) section 
38.25 	120B.128, paragraph (c); (ii) paragraph (c); or (iii) Minnesota Statutes 2012, section 
38.26 	120B.30, subdivision 1, paragraph (c), clauses (1) and (2).
38.27 	(b) The state assessment system must be aligned to the most recent revision of 
38.28 	academic standards as described in section 120B.023 in the following manner:
38.29 	(1) mathematics;
38.30 	(i) grades 3 through 8 beginning in the 2010-2011 school year; and
38.31 	(ii) high school level beginning in the 2013-2014 school year;
38.32 	(2) science; grades 5 and 8 and at the high school level beginning in the 2011-2012 
38.33 	school year; and
38.34 	(3) language arts and reading; grades 3 through 8 and high school level beginning in 
38.35 	the 2012-2013 school year.
39.1 	(c) For students enrolled in grade 8 in the 2005-2006 2013-2014 school year and 
39.2 	later, only the following options shall fulfill students' state graduation test requirements, 
39.3 	based on a longitudinal, systematic approach to student education and career planning, 
39.4 	assessment, instructional support, and evaluation, include the following:
39.5 	(1) for reading and mathematics:
39.6 	(i) obtaining an achievement level equivalent to or greater than proficient as 
39.7 	determined through a standard setting process on the Minnesota comprehensive 
39.8 	assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing 
39.9 	score as determined through a standard setting process on the graduation-required 
39.10 	assessment for diploma in grade 10 for reading and grade 11 for mathematics or 
39.11 	subsequent retests;
39.12 	(ii) achieving a passing score as determined through a standard setting process 
39.13 	on the state-identified language proficiency test in reading and the mathematics test for 
39.14 	English learners or the graduation-required assessment for diploma equivalent of those 
39.15 	assessments for students designated as English learners;
39.16 	(iii) achieving an individual passing score on the graduation-required assessment for 
39.17 	diploma as determined by appropriate state guidelines for students with an individualized 
39.18 	education program or 504 plan;
39.19 	(iv) obtaining achievement level equivalent to or greater than proficient as 
39.20 	determined through a standard setting process on the state-identified alternate assessment 
39.21 	or assessments in grade 10 for reading and grade 11 for mathematics for students with 
39.22 	an individualized education program; or
39.23 	(v) achieving an individual passing score on the state-identified alternate assessment 
39.24 	or assessments as determined by appropriate state guidelines for students with an 
39.25 	individualized education program; and
39.26 	(2) for writing:
39.27 	(i) achieving a passing score on the graduation-required assessment for diploma;
39.28 	(ii) achieving a passing score as determined through a standard setting process on 
39.29 	the state-identified language proficiency test in writing for students designated as English 
39.30 	learners;
39.31 	(iii) achieving an individual passing score on the graduation-required assessment for 
39.32 	diploma as determined by appropriate state guidelines for students with an individualized 
39.33 	education program or 504 plan; or
39.34 	(iv) achieving an individual passing score on the state-identified alternate assessment 
39.35 	or assessments as determined by appropriate state guidelines for students with an 
39.36 	individualized education program.
40.1 	(1) attainment of required academic standards and career and college readiness 
40.2 	benchmarks under section 120B.023  as demonstrated on a nationally normed college 
40.3 	entrance exam, or taking a nationally recognized armed services vocational aptitude 
40.4 	test at the election of the student;
40.5 	(2) achievement and career and college readiness tests in mathematics, reading, and 
40.6 	writing, consistent with paragraph (e) and, to the extent available, to monitor students' 
40.7 	continuous development of and growth in requisite knowledge and skills; analyze 
40.8 	students' progress and performance levels, identifying students' academic strengths and 
40.9 	diagnosing areas where students require curriculum or instructional adjustments, targeted 
40.10 	interventions, or remediation; and, based on analysis of students' progress and performance 
40.11 	data, determine students' learning and instructional needs and the instructional tools and 
40.12 	best practices that support academic rigor for the student; and
40.13 	(3) consistent with this paragraph and section 120B.125, age-appropriate exploration 
40.14 	and planning activities and career assessments to encourage students to identify personally 
40.15 	relevant career interests and aptitudes and help students and their families develop a 
40.16 	regularly reexamined transition plan for postsecondary education or employment without 
40.17 	need for postsecondary remediation.
40.18 	Based on appropriate state guidelines, students with an individualized education program 
40.19 	may satisfy state graduation requirements by achieving an individual score on the 
40.20 	state-identified alternative assessments.
40.21 	Expectations of schools, districts, and the state for career or college readiness under 
40.22 	this subdivision must be comparable in rigor, clarity of purpose, and rates of student 
40.23 	completion. A student under clause (2) must receive targeted, relevant, academically 
40.24 	rigorous, and resourced instruction, which may include a targeted instruction and 
40.25 	intervention plan focused on improving the student's knowledge and skills in core subjects 
40.26 	so that the student has a reasonable chance to succeed in a career or college without need 
40.27 	for postsecondary remediation. Consistent with sections 120B.13, 124D.09, 124D.091, 
40.28 	124D.49, and related sections, an enrolling school or district must actively encourage a 
40.29 	student in grade 11 or 12 who is identified as academically ready for a career or college 
40.30 	to participate in courses and programs awarding college credit to high school students. 
40.31 	Students are not required to achieve a specified score or level of proficiency on an 
40.32 	assessment under this subdivision to graduate from high school.
40.33 	(d) Students enrolled in grade 8 in any school year from the 2005-2006 school 
40.34 	year to the 2009-2010 school year who do not pass the mathematics graduation-required 
40.35 	assessment for diploma under paragraph (c) are eligible to receive a high school diploma 
40.36 	if they:
41.1 	(1) complete with a passing score or grade all state and local coursework and credits 
41.2 	required for graduation by the school board granting the students their diploma;
41.3 	(2) participate in district-prescribed academic remediation in mathematics; and
41.4 	(3) fully participate in at least two retests of the mathematics GRAD test or until 
41.5 	they pass the mathematics GRAD test, whichever comes first. To improve the secondary 
41.6 	and postsecondary outcomes of all students, the alignment between secondary and 
41.7 	postsecondary education programs and Minnesota's workforce needs, and the efficiency 
41.8 	and cost-effectiveness of secondary and postsecondary programs, the commissioner, after 
41.9 	consulting with the chancellor of the Minnesota State Colleges and Universities and using 
41.10 	a request for proposal process, shall contract for a series of assessments that are consistent 
41.11 	with this subdivision, aligned with state academic standards, and include career and 
41.12 	college readiness benchmarks. Mathematics, reading, and writing assessments for students 
41.13 	in grades 8 and 10 must be predictive of and aligned with a nationally normed assessment 
41.14 	for career and college readiness. This nationally recognized assessment must be a college 
41.15 	entrance exam and given to students in grade 11 or 12. This series of assessments must 
41.16 	include a college placement diagnostic exam and contain career exploration elements. 
41.17 	Students in grade 11 or 12 may choose to take a nationally recognized armed services 
41.18 	vocational aptitude test as an alternative to the college and career readiness entrance 
41.19 	exam under this paragraph. The commissioner and the chancellor of the Minnesota State 
41.20 	Colleges and Universities must collaborate in aligning instruction and assessments for 
41.21 	adult basic education students to provide the students with diagnostic information about 
41.22 	any targeted interventions they need so that they may seek postsecondary education or 
41.23 	employment without need for postsecondary remediation.
41.24 	(1) Districts and schools, on an annual basis, must use the career exploration 
41.25 	elements in these assessments to help students, beginning no later than grade 9, and their 
41.26 	families explore and plan for postsecondary education or careers based on the students' 
41.27 	interests, aptitudes, and aspirations. Districts and schools must use timely regional labor 
41.28 	market information and partnerships, among other resources, to help students and their 
41.29 	families successfully develop, pursue, review, and revise an individualized plan for 
41.30 	postsecondary education or a career. This process must help increase students' engagement 
41.31 	in and connection to school, improve students' knowledge and skills, and deepen students' 
41.32 	understanding of career pathways as a sequence of academic and career courses that lead 
41.33 	to an industry-recognized credential, an associate's degree, or a bachelor's degree and are 
41.34 	available to all students, whatever their interests and career goals.
41.35 	(2) Students who, based on their growth in academic achievement between grades 8 
41.36 	and 10, show adequate progress toward meeting state career and college readiness must 
42.1 	be given the college entrance exam part of these assessments in grade 11 or a nationally 
42.2 	recognized armed services vocational aptitude test. A student under this clause who 
42.3 	demonstrates attainment of required state academic standards, which include career and 
42.4 	college readiness benchmarks, on these assessments is academically ready for a career or 
42.5 	college and is encouraged to participate in courses and programs awarding college credit to 
42.6 	high school students. Such courses and programs may include sequential courses of study 
42.7 	within broad career areas and technical skill assessments that extend beyond course grades.
42.8 	(3) All students in grade 11 not subject to clause (2) must be given the college 
42.9 	placement diagnostic exam so that the students, their families, the school, and the district 
42.10 	can use the results to diagnose areas for targeted instruction, intervention, or remediation 
42.11 	and improve students' knowledge and skills in core subjects sufficient for the student 
42.12 	to graduate and have a reasonable chance to succeed in a career or college without 
42.13 	remediation. These students must be given the college entrance exam part of these 
42.14 	assessments in grade 12 or a nationally recognized armed services vocational aptitude test.
42.15 	(4) A student in clause (3) who demonstrates: (i) attainment of required state 
42.16 	academic standards, which include career and college readiness benchmarks,  on these 
42.17 	assessments; (ii) attainment of career and college readiness benchmarks on the college 
42.18 	placement diagnostic part of these assessments; and, where applicable, (iii) successfully 
42.19 	completes targeted instruction, intervention, or remediation approved by the commissioner 
42.20 	and the chancellor of the Minnesota State Colleges and Universities after consulting with 
42.21 	local school officials and educators, is academically ready for a career or college and is 
42.22 	encouraged to participate in courses and programs awarding college credit to high school 
42.23 	students. Such courses and programs may include sequential courses of study within 
42.24 	broad career areas and technical skill assessments that extend beyond course grades.
42.25 	(5) A study to determine the alignment between these assessments and state 
42.26 	academic standards under this chapter must be conducted. Where alignment exists, the 
42.27 	commissioner must seek federal approval to, and immediately upon receiving approval, 
42.28 	replace the federally required assessments referenced under subdivision 1a and section 
42.29 	120B.35, subdivision 2, with assessments under this paragraph.
42.30 	(e) In developing, supporting, and improving students' academic readiness for a 
42.31 	career or college, schools, districts, and the state must have a continuum of empirically 
42.32 	derived, clearly defined benchmarks focused on students' attainment of knowledge and 
42.33 	skills so that students, their parents, and teachers know how well students must perform to 
42.34 	have a reasonable chance to succeed in a career or college without need for postsecondary 
42.35 	remediation. The commissioner and Minnesota's public postsecondary institutions must 
42.36 	ensure that the foundational knowledge and skills for students' successful performance 
43.1 	in postsecondary employment or education and an articulated series of possible targeted 
43.2 	interventions are clearly identified and satisfy Minnesota's postsecondary admissions 
43.3 	requirements.
43.4 	(f) A school, district, or charter school must place record on the high school 
43.5 	transcript a student's current pass status for each subject that has a required graduation 
43.6 	assessment progress toward career and college readiness.
43.7 	In addition, (g) The school board granting the students their diplomas may formally 
43.8 	decide to include a notation of high achievement on the high school diplomas of those 
43.9 	graduating seniors who, according to established school board criteria, demonstrate 
43.10 	exemplary academic achievement during high school.
43.11 	(e) (h) The 3rd through 8th 7th grade computer-adaptive assessment results and 
43.12 	high school test results shall be available to districts for diagnostic purposes affecting 
43.13 	student learning and district instruction and curriculum, and for establishing educational 
43.14 	accountability. The commissioner must establish empirically derived benchmarks on 
43.15 	adaptive assessments in grades 3 through 7 that reveal a trajectory toward career and 
43.16 	college readiness. The commissioner must disseminate to the public the computer-adaptive 
43.17 	assessments and high school test results upon receiving those results.
43.18 	(f) (i) The 3rd through 8th grade grades 3 through 7 computer-adaptive assessments
43.19 	 and high school tests must be aligned with state academic standards. The commissioner 
43.20 	shall determine the testing process and the order of administration. The statewide results 
43.21 	shall be aggregated at the site and district level, consistent with subdivision 1a.
43.22 	(g) In addition to the testing and reporting requirements under this section, (j) The 
43.23 	commissioner shall include the following components in the statewide public reporting 
43.24 	system:
43.25 	(1) uniform statewide testing computer-adaptive assessments of all students in 
43.26 	grades 3 through 8 7 and testing at the high school level that provides appropriate, 
43.27 	technically sound accommodations or alternate assessments;
43.28 	(2) educational indicators that can be aggregated and compared across school 
43.29 	districts and across time on a statewide basis, including average daily attendance, high 
43.30 	school graduation rates, and high school drop-out rates by age and grade level;
43.31 	(3) state results on the American College Test; and
43.32 	(4) state results from participation in the National Assessment of Educational 
43.33 	Progress so that the state can benchmark its performance against the nation and other 
43.34 	states, and, where possible, against other countries, and contribute to the national effort 
43.35 	to monitor achievement.

44.1 	EFFECTIVE DATE. This section is effective the day following final enactment 
44.2 	and applies to the 2013-2014 school year and later, except that paragraph (a) applies 
44.3 	the day following final enactment and the requirements for using computer-adaptive 
44.4 	mathematics and reading assessments for grades 3 through 7 apply in the 2015-2016 
44.5 	school year and later.

44.6 	Sec. 10. Minnesota Statutes 2012, section 120B.30, subdivision 1a, is amended to read:
44.7 		Subd. 1a.Statewide and local assessments; results. (a) For purposes of this 
44.8 	section, the following definitions have the meanings given them.
44.9 	(1) "Computer-adaptive assessments" means fully adaptive assessments.
44.10 	(2) "Fully adaptive assessments" include test items that are on-grade level and items 
44.11 	that may be above or below a student's grade level.
44.12 	(3) "On-grade level" test items contain subject area content that is aligned to state 
44.13 	academic standards for the grade level of the student taking the assessment.
44.14 	(4) "Above-grade level" test items contain subject area content that is above the 
44.15 	grade level of the student taking the assessment and is considered aligned with state 
44.16 	academic standards to the extent it is aligned with content represented in state academic 
44.17 	standards above the grade level of the student taking the assessment. Notwithstanding 
44.18 	the student's grade level, administering above-grade level test items to a student does not 
44.19 	violate the requirement that state assessments must be aligned with state standards.
44.20 	(5) "Below-grade level" test items contain subject area content that is below the 
44.21 	grade level of the student taking the test and is considered aligned with state academic 
44.22 	standards to the extent it is aligned with content represented in state academic standards 
44.23 	below the student's current grade level. Notwithstanding the student's grade level, 
44.24 	administering below-grade level test items to a student does not violate the requirement 
44.25 	that state assessments must be aligned with state standards.
44.26 	(b) The commissioner must use fully adaptive mathematics and reading assessments 
44.27 	for grades 3 through 7 beginning in the 2015-2016 school year and later.
44.28 	(c) For purposes of conforming with existing federal educational accountability 
44.29 	requirements, the commissioner must develop and implement computer-adaptive reading 
44.30 	and mathematics assessments for grades 3 through 8 7, state-developed high school 
44.31 	reading and mathematics tests aligned with state academic standards, and science 
44.32 	assessments under clause (2) that districts and sites must use to monitor student growth 
44.33 	toward achieving those standards. The commissioner must not develop statewide 
44.34 	assessments for academic standards in social studies, health and physical education, and 
44.35 	the arts. The commissioner must require:
45.1 	(1) annual computer-adaptive reading and mathematics assessments in grades 3 
45.2 	through 8 7, and high school reading and mathematics tests; and
45.3 	(2) annual science assessments in one grade in the grades 3 through 5 span, the 
45.4 	grades 6 through 8 span, and a life sciences assessment in the grades 9 through 12 span, 
45.5 	and the commissioner must not require students to achieve a passing score on high school 
45.6 	science assessments as a condition of receiving a high school diploma.
45.7 	(d) The commissioner must ensure that for annual computer-adaptive assessments:
45.8 	(1) individual student performance data and achievement reports are available within 
45.9 	three school days of when students take an assessment;
45.10 	(2) growth information is available for each student from the student's first 
45.11 	assessment to each proximate assessment using a constant measurement scale;
45.12 	(3) parents, teachers, and school administrators are able to use elementary and 
45.13 	middle school student performance data to project students' secondary and postsecondary 
45.14 	achievement; and
45.15 	(4) useful diagnostic information about areas of students' academic strengths and 
45.16 	weaknesses is available to teachers and school administrators for improving student 
45.17 	instruction and indicating the specific skills and concepts that should be introduced and 
45.18 	developed for students at given performance levels, organized by strands within subject 
45.19 	areas, and aligned to state academic standards.
45.20 	(b) (e) The commissioner must ensure that all statewide tests administered to 
45.21 	elementary and secondary students measure students' academic knowledge and skills and 
45.22 	not students' values, attitudes, and beliefs.
45.23 	(c) (f) Reporting of assessment results must:
45.24 	(1) provide timely, useful, and understandable information on the performance of 
45.25 	individual students, schools, school districts, and the state;
45.26 	(2) include a value-added growth indicator of student achievement under section 
45.27 	120B.35, subdivision 3, paragraph (b); and
45.28 	(3)(i) for students enrolled in grade 8 before the 2005-2006 school year, determine 
45.29 	whether students have met the state's basic skills requirements; and
45.30 	(ii) for students enrolled in grade 8 in the 2005-2006 school year and later, determine 
45.31 	whether students have met the state's academic standards.
45.32 	(d) (g) Consistent with applicable federal law and subdivision 1, paragraph (d), 
45.33 	clause (1), the commissioner must include appropriate, technically sound accommodations 
45.34 	or alternative assessments for the very few students with disabilities for whom statewide 
45.35 	assessments are inappropriate and for English learners.
46.1 	(e)(h) A school, school district, and charter school must administer statewide 
46.2 	assessments under this section, as the assessments become available, to evaluate student 
46.3 	proficiency progress toward career and college readiness in the context of the state's grade 
46.4 	level academic standards. If a state assessment is not available, a school, school district, 
46.5 	and charter school must determine locally if a student has met the required academic 
46.6 	standards. A school, school district, or charter school may use a student's performance 
46.7 	on a statewide assessment as one of multiple criteria to determine grade promotion or 
46.8 	retention. A school, school district, or charter school may use a high school student's 
46.9 	performance on a statewide assessment as a percentage of the student's final grade in a 
46.10 	course, or place a student's assessment score on the student's transcript.

46.11 	EFFECTIVE DATE. This section is effective for the 2013-2014 school year and 
46.12 	later except the requirements for using computer-adaptive mathematics and reading 
46.13 	assessments for grades 3 through 7 apply in the 2015-2016 school year and later.

46.14 	Sec. 11. Minnesota Statutes 2012, section 120B.31, subdivision 1, is amended to read:
46.15 		Subdivision 1.Educational accountability and public reporting. Consistent 
46.16 	with the direction to adopt statewide academic standards under section 120B.02, the 
46.17 	department, in consultation with education and other system stakeholders, must establish a 
46.18 	coordinated and comprehensive system of educational accountability and public reporting 
46.19 	that promotes greater academic achievement, preparation for higher academic education, 
46.20 	preparation for the world of work, citizenship under sections 120B.021, subdivision 1, 
46.21 	clause (4), and 120B.024, paragraph (a), clause (4), and the arts.

46.22 	Sec. 12. Minnesota Statutes 2012, section 120B.35, subdivision 3, is amended to read:
46.23 		Subd. 3.State growth target; other state measures. (a) The state's educational 
46.24 	assessment system measuring individual students' educational growth is based on 
46.25 	indicators of achievement growth that show an individual student's prior achievement. 
46.26 	Indicators of achievement and prior achievement must be based on highly reliable 
46.27 	statewide or districtwide assessments.
46.28 	(b) The commissioner, in consultation with a stakeholder group that includes 
46.29 	assessment and evaluation directors and staff and researchers must implement a model 
46.30 	that uses a value-added growth indicator and includes criteria for identifying schools 
46.31 	and school districts that demonstrate medium and high growth under section 120B.299, 
46.32 	subdivisions 8 and 9, and may recommend other value-added measures under section 
46.33 	120B.299, subdivision 3. The model may be used to advance educators' professional 
46.34 	development and replicate programs that succeed in meeting students' diverse learning 
47.1 	needs. Data on individual teachers generated under the model are personnel data under 
47.2 	section 13.43. The model must allow users to:
47.3 	(1) report student growth consistent with this paragraph; and
47.4 	(2) for all student categories, report and compare aggregated and disaggregated state 
47.5 	growth data using the nine student categories identified under the federal 2001 No Child 
47.6 	Left Behind Act and two student gender categories of male and female, respectively, 
47.7 	following appropriate reporting practices to protect nonpublic student data.
47.8 	The commissioner must report separate measures of student growth and proficiency, 
47.9 	consistent with this paragraph.
47.10 	(c) When reporting student performance under section 120B.36, subdivision 1, the 
47.11 	commissioner annually, beginning July 1, 2011, must report two core measures indicating 
47.12 	the extent to which current high school graduates are being prepared for postsecondary 
47.13 	academic and career opportunities:
47.14 	(1) a preparation measure indicating the number and percentage of high school 
47.15 	graduates in the most recent school year who completed course work important to 
47.16 	preparing them for postsecondary academic and career opportunities, consistent with 
47.17 	the core academic subjects required for admission to Minnesota's public colleges and 
47.18 	universities as determined by the Office of Higher Education under chapter 136A; and
47.19 	(2) a rigorous coursework measure indicating the number and percentage of high 
47.20 	school graduates in the most recent school year who successfully completed one or more 
47.21 	college-level advanced placement, international baccalaureate, postsecondary enrollment 
47.22 	options including concurrent enrollment, other rigorous courses of study under section 
47.23 	120B.021, subdivision 1a, or industry certification courses or programs.
47.24 	When reporting the core measures under clauses (1) and (2), the commissioner must also 
47.25 	analyze and report separate categories of information using the nine student categories 
47.26 	identified under the federal 2001 No Child Left Behind Act and two student gender 
47.27 	categories of male and female, respectively, following appropriate reporting practices to 
47.28 	protect nonpublic student data.
47.29 	(d) When reporting student performance under section 120B.36, subdivision 1, the 
47.30 	commissioner annually, beginning July 1, 2014, must report summary data on school 
47.31 	safety and students' engagement and connection at school. The summary data under this 
47.32 	paragraph are separate from and must not be used for any purpose related to measuring 
47.33 	or evaluating the performance of classroom teachers. The commissioner, in consultation 
47.34 	with qualified experts on student engagement and connection and classroom teachers, 
47.35 	must identify highly reliable variables that generate summary data under this paragraph. 
47.36 	The summary data may be used at school, district, and state levels only. Any data on 
48.1 	individuals received, collected, or created that are used to generate the summary data 
48.2 	under this paragraph are nonpublic data under section 13.02, subdivision 9.
48.3 	(e) For purposes of statewide educational accountability, the commissioner must 
48.4 	identify and report measures that demonstrate the success of school districts, school sites, 
48.5 	charter schools, and alternative program providers in improving the graduation outcomes 
48.6 	of students under this paragraph. When reporting student performance under section 
48.7 	120B.36, subdivision 1, the commissioner, beginning July 1, 2015, must annually report 
48.8 	summary data on:
48.9 	(1) the four- and six-year graduation rates of students throughout the state who 
48.10 	are identified as at risk of not graduating or off track to graduate, including students 
48.11 	who are eligible to participate in a program under section 123A.05 or 124D.68, among 
48.12 	other students; and
48.13 	(2) the success that school districts, school sites, charter schools, and alternative 
48.14 	program providers experience in:
48.15 	(i) identifying at-risk and off-track student populations by grade;
48.16 	(ii) providing successful prevention and intervention strategies for at-risk students;
48.17 	(iii) providing successful recuperative and recovery or reenrollment strategies for 
48.18 	off-track students; and
48.19 	(iv) improving the graduation outcomes of at-risk and off-track students.
48.20 	For purposes of this paragraph, a student who is at risk of not graduating is a student 
48.21 	in eighth or ninth grade who meets one or more of the following criteria: first enrolled in 
48.22 	an English language learners program in eighth or ninth grade and may be older than other 
48.23 	students enrolled in the same grade; as an eighth grader, is absent from school for at least 
48.24 	20 percent of the days of instruction during the school year, is two or more years older 
48.25 	than other students enrolled in the same grade, or fails multiple core academic courses; or 
48.26 	as a ninth grader, fails multiple ninth grade core academic courses in English language 
48.27 	arts, mathematics, science, or social studies.
48.28 	For purposes of this paragraph, a student who is off track to graduate is a student 
48.29 	who meets one or more of the following criteria: first enrolled in an English language 
48.30 	learners program in high school and is older than other students enrolled in the same grade; 
48.31 	is a returning dropout; is 16 or 17 years old and two or more academic years off track to 
48.32 	graduate; is 18 years or older and two or more academic years off track to graduate; or is 
48.33 	18 years or older and may graduate within one school year.

48.34 	EFFECTIVE DATE. Paragraph (e) applies to data that are collected in the 
48.35 	2014-2015 school year and later and reported annually beginning July 1, 2015, consistent 
48.36 	with the recommendations the commissioner receives from recognized and qualified 
49.1 	experts on improving differentiated graduation rates and establishing alternative routes to 
49.2 	a standard high school diploma for at-risk and off-track students.

49.3 	Sec. 13. Minnesota Statutes 2012, section 120B.36, subdivision 1, is amended to read:
49.4 		Subdivision 1.School performance report cards reports. (a) The commissioner 
49.5 	shall report student academic performance under section 120B.35, subdivision 2; the 
49.6 	percentages of students showing low, medium, and high growth under section 120B.35, 
49.7 	subdivision 3, paragraph (b); school safety and student engagement and connection 
49.8 	under section 120B.35, subdivision 3, paragraph (d); rigorous coursework under section 
49.9 	120B.35, subdivision 3, paragraph (c); the percentage of students whose progress and 
49.10 	performance levels are meeting career and college readiness benchmarks under section 
49.11 	120B.30, subdivision 1; longitudinal data on district and school progress in reducing 
49.12 	disparities in students' academic achievement under section 124D.861, subdivision 3; two 
49.13 	separate student-to-teacher ratios that clearly indicate the definition of teacher consistent 
49.14 	with sections 122A.06 and 122A.15 for purposes of determining these ratios; staff 
49.15 	characteristics excluding salaries; student enrollment demographics; district mobility; and 
49.16 	extracurricular activities. The report also must indicate a school's adequate yearly progress 
49.17 	status under applicable federal law, and must not set any designations applicable to high- 
49.18 	and low-performing schools due solely to adequate yearly progress status.
49.19 	(b) The commissioner shall develop, annually update, and post on the department 
49.20 	Web site school performance report cards reports.
49.21 	(c) The commissioner must make available performance report cards reports by the 
49.22 	beginning of each school year.
49.23 	(d) A school or district may appeal its adequate yearly progress status in writing to 
49.24 	the commissioner within 30 days of receiving the notice of its status. The commissioner's 
49.25 	decision to uphold or deny an appeal is final.
49.26 	(e) School performance report card data are nonpublic data under section 13.02, 
49.27 	subdivision 9, until the commissioner publicly releases the data. The commissioner shall 
49.28 	annually post school performance report cards reports to the department's public Web 
49.29 	site no later than September 1, except that in years when the report card reflects reports 
49.30 	reflect new performance standards, the commissioner shall post the school performance 
49.31 	report cards reports no later than October 1.

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

50.1 	Sec. 14. Minnesota Statutes 2012, section 124D.52, is amended by adding a 
50.2 	subdivision to read:
50.3 		Subd. 8.Standard high school diploma for adults. (a) The commissioner shall 
50.4 	adopt rules for providing a standard high school diploma to adults who:
50.5 	(1) are not eligible for kindergarten through grade 12 services;
50.6 	(2) do not have a high school diploma; and
50.7 	(3) successfully complete an adult basic education program of instruction approved 
50.8 	by the commissioner necessary to earn an adult high school diploma.
50.9 	(b) Persons participating in an approved adult basic education program of instruction 
50.10 	must demonstrate proficiency in a standard set of competencies that reflect the knowledge 
50.11 	and skills sufficient to ensure that postsecondary programs and institutions and potential 
50.12 	employers regard persons with a standard high school diploma and persons with a 
50.13 	standard high school diploma for adults as equally well prepared and qualified graduates. 
50.14 	Approved adult basic education programs of instruction under this subdivision must issue 
50.15 	a standard high school diploma for adults who successfully demonstrate the competencies, 
50.16 	knowledge, and skills required by the program.

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

50.18 	Sec. 15. [126C.101] MINNESOTA'S WORLD'S BEST WORKFORCE.
50.19 		Subdivision 1.Goals for the world's best workforce. To create the world's best 
50.20 	workforce by 2027, Minnesota must strive to: close entirely the academic achievement 
50.21 	gap among all racial and ethnic groups of students and between students living in poverty 
50.22 	and students not living in poverty; achieve a 100 percent high school graduation rate; 
50.23 	achieve 100 percent grade-level literacy for students in third grade; and have 100 percent 
50.24 	of students attain career and college readiness before graduating from high school.
50.25 		Subd. 2.Strategic plans for attaining the world's best workforce. (a) A school 
50.26 	board must formally develop, implement, and periodically review and, where appropriate, 
50.27 	revise a comprehensive, long-term strategic education and budget plan for student 
50.28 	achievement premised on research-based strategies and efforts required for a district and 
50.29 	school to make progress toward realizing the goals in subdivision 1. The strategic plan for 
50.30 	student achievement must identify the state, regional, and local structures and systems, 
50.31 	interdistrict, intradistrict, and in-school strategies, inclusive best education practices, 
50.32 	and collaborative partnerships with regional centers under subdivision 4, postsecondary 
50.33 	institutions, and local and regional business and industry to work effectively and efficiently 
50.34 	toward making all students part of the world's best workforce by 2027.
51.1 	(b) The components of a board's plan may include: innovative and integrated 
51.2 	prekindergarten through grade 12 learning environments that include school enrollment 
51.3 	options; family engagement initiatives that involve families in their students' academic 
51.4 	life and career success; professional development opportunities for teachers, school 
51.5 	administrators, and other licensed school professionals focused on improving all students' 
51.6 	academic achievement and career and college readiness; increased programmatic 
51.7 	opportunities for all students, including historically underserved students, focused on rigor 
51.8 	in learning and career and college readiness, and recruitment and retention of teachers 
51.9 	and school administrators of diverse backgrounds. Plans must include at least formative 
51.10 	assessment practices, consistent with chapter 120B, and other instructional best practices 
51.11 	that inform cost-effective, research-based interventions, improve student achievement, 
51.12 	reduce disparities in students' academic performance, and foster students' career and 
51.13 	college readiness without need for postsecondary remediation.
51.14 	(c) A regional center of excellence, upon request, must assist a school board with 
51.15 	developing, implementing, reviewing, or revising its education and budget plan.
51.16 		Subd. 3.Budgeting process. (a) Beginning in the 2014-2015 school year, a school 
51.17 	board must hold at least one formal hearing by March 1 each year to report to the public 
51.18 	its progress in realizing the goals contained in its strategic plan for student achievement, to 
51.19 	review the plan components, and to revise the plan where appropriate. At the hearing, the 
51.20 	board must provide the public with longitudinal data from at least the three immediately 
51.21 	preceding school years demonstrating district and school progress in realizing its student 
51.22 	achievement goals, consistent with the measures for demonstrating progress in paragraph 
51.23 	(b). At least 30 days before the hearing, the board must post on the district Web site, in 
51.24 	an understandable, readily accessible format, up-to-date longitudinal data on district 
51.25 	and school progress. The district, by March 1, must submit to the commissioner and 
51.26 	its regional center of excellence in an electronic format the district's annual budget for 
51.27 	continuing to implement its strategic plan for student achievement.
51.28 	(b) The longitudinal data required under paragraph (a) at least must be based on 
51.29 	one or more of the following measures and must report outcomes for all students and 
51.30 	specific groups of students identified under section 120B.35, subdivision 3: third grade 
51.31 	at-grade-level literacy rates; reductions in the disparity in academic achievement among 
51.32 	all racial and ethnic student groups and between students living in poverty and students not 
51.33 	living in poverty; high school graduation rates; rates for completing rigorous coursework; 
51.34 	rates for attaining career and college readiness; rates for receiving postsecondary credit 
51.35 	while enrolled in high school; students' engagement and connection in school; and rates 
52.1 	for awarding world language proficiency or high achievement certificates under section 
52.2 	120B.022, subdivision 1, paragraphs (b) and (c).
52.3 	(c) For the 2013-2014 school year only, a board, after providing a 30-day notice on 
52.4 	the district Web site, must hold a formal hearing before March 1, 2014, to inform the 
52.5 	public about the content of its proposed strategic plan for student achievement under 
52.6 	this section. The board also must submit its proposed plan by March 1, 2014, to the 
52.7 	commissioner and its regional center of excellence in an electronic format.
52.8 		Subd. 4.Regional support. (a) Regional centers of excellence are established to 
52.9 	assist and support school boards, districts, and schools in implementing this section. The 
52.10 	centers must collaborate with local and regional service cooperatives, postsecondary 
52.11 	institutions, integrated school districts, the department, children's mental health providers, 
52.12 	and other interested entities to equitably support school boards, districts, and schools 
52.13 	throughout the region. Center support may include assisting districts and schools 
52.14 	with common principles of effective practice, defining measurable education goals, 
52.15 	implementing evidence-based practices, engaging in data-driven decision making, 
52.16 	reducing the use of seclusion and restraints, providing multilayered levels of support, 
52.17 	supporting culturally responsive teaching and learning, aligning state and local academic 
52.18 	standards and career and college readiness benchmarks, and engaging parents, families, 
52.19 	youth, and the local community in district and school programs and activities.
52.20 	(b) The department must help the regional centers of excellence meet staff, facilities, 
52.21 	and technical needs, provide the centers with programmatic support, and work with the 
52.22 	centers to establish a coherent statewide system of regional support, including consulting, 
52.23 	training, and technical support, to help school boards, districts, and schools effectively and 
52.24 	efficiently implement state and federal initiatives.
52.25 		Subd. 5.Evaluation. (a) The commissioner and each regional center of excellence 
52.26 	must collaborate in evaluating the success of districts and schools in working effectively 
52.27 	and efficiently toward creating the world's best workforce by 2027. Where districts and 
52.28 	schools demonstrate effective use of resources and adequate progress toward realizing 
52.29 	plan goals, the commissioner and the regional centers of excellence must promote and 
52.30 	disseminate successful strategies to other districts and schools throughout the state.
52.31 	(b) If the commissioner, in consultation with the affected regional center of 
52.32 	excellence, determines a district or charter school is not making adequate progress in 
52.33 	realizing its student achievement goals under this section, the department may reduce the 
52.34 	district's basic general education revenue by up to four percent per fiscal year, and transfer 
52.35 	that amount to the affected regional center of excellence for the center to use to assist the 
52.36 	district to effectively and efficiently realize its student achievement goals.
53.1 	(c) If, after a district receives assistance under paragraph (b) for at least three 
53.2 	consecutive school years, the commissioner, in consultation with the affected regional 
53.3 	center of excellence and the affected district, identifies a school as persistently failing to 
53.4 	make adequate progress toward realizing the student achievement goals contained in 
53.5 	the strategic plan, the commissioner may require the school to implement a turnaround 
53.6 	strategy to improve the school's ability to effectively and efficiently realize those goals.

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

53.8 	Sec. 16. STATEWIDE ASSESSMENT AND ACCOUNTABILITY; TRANSITION.
 53.9 	Notwithstanding other law to the contrary, students enrolled in grade 8 in the 
53.10 	2005-2006 through 2012-2013 school years are eligible to be assessed under the amended 
53.11 	provisions of Minnesota Statutes, section 120B.30, subdivision 1, to the extent such 
53.12 	assessments are available, under Minnesota Statutes, section 120B.128, paragraph (c), or 
53.13 	under Minnesota Statutes 2012, section 120B.30, subdivision 1, paragraph (c), clauses 
53.14 	(1) and (2). Other measures of statewide accountability, including student performance, 
53.15 	preparation, rigorous course taking, engagement and connection, and transition into 
53.16 	postsecondary education or the workforce remain in effect.

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

53.18 	Sec. 17. CAREER PATHWAYS AND TECHNICAL EDUCATION ADVISORY 
53.19 	TASK FORCE.
 53.20 		Subdivision 1.Recommendations. (a) A career pathways and technical education 
53.21 	advisory task force is established to recommend to the Minnesota legislature, consistent 
53.22 	with Minnesota Statutes, sections 120B.30, subdivision 1, and 120B.35, subdivision 3, 
53.23 	how to structurally redesign secondary and postsecondary education to:
53.24 	(1) improve secondary and postsecondary outcomes for students and adult learners;
53.25 	(2) align secondary and postsecondary education programs serving students and 
53.26 	adult learners;
53.27 	(3) align secondary and postsecondary education programs and Minnesota's 
53.28 	workforce needs; and
53.29 	(4) measure and evaluate the combined efficacy of Minnesota's public kindergarten 
53.30 	through grade 12 and postsecondary education programs.
53.31 	(b) Advisory task force members, in preparing these recommendations, must 
53.32 	seek the advice of education providers, employers, policy makers, and other interested 
53.33 	stakeholders and must at least consider how to:
54.1 	(1) better inform students about career options, occupational trends, and educational 
54.2 	paths leading to viable and rewarding careers and reduce the gap between the demand for 
54.3 	and preparation of a skilled Minnesota workforce;
54.4 	(2) in consultation with a student's family, develop and periodically adapt, as 
54.5 	needed, an education and work plan for each student aligned with the student's personal 
54.6 	and professional interests, abilities, skills, and aspirations;
54.7 	(3) improve monitoring of high school students' progress with targeted interventions 
54.8 	and support and remove the need for remedial instruction;
54.9 	(4) increase and accelerate opportunities for secondary school students to earn 
54.10 	postsecondary credits leading to a certificate, industry license, or degree;
54.11 	(5) better align high school courses and expectations and postsecondary 
54.12 	credit-bearing courses;
54.13 	(6) better align high school standards and assessments, postsecondary readiness 
54.14 	measures and entrance requirements, and the expectations of Minnesota employers;
54.15 	(7) increase the rates at which students complete a postsecondary certificate, 
54.16 	industry license, or degree; and
54.17 	(8) provide graduates of two-year and four-year postsecondary institutions with the 
54.18 	foundational skills needed for civic engagement, ongoing employment, and continuous 
54.19 	learning.
54.20 		Subd. 2.Task force membership and operation. (a) Advisory task force members 
54.21 	must include representatives of the following organizations from throughout the state: 
54.22 	the Minnesota Association of Career and Technical Administrators; the Minnesota 
54.23 	Association for Career and Technical Education; University of Minnesota, Minnesota 
54.24 	State Colleges and Universities, and secondary and other postsecondary faculty working 
54.25 	to develop career and technical educators in Minnesota; the National Research Center 
54.26 	for Career and Technical Education; the Department of Education; the Department of 
54.27 	Employment and Economic Development; the Minnesota Chamber of Commerce; the 
54.28 	Minnesota Business Partnership; the Minnesota Board of Teaching; the Minnesota 
54.29 	Association of Colleges for Teacher Education; Minnesota State Colleges and Universities 
54.30 	foundational skills and general education faculty; Minnesota Secondary School Principals 
54.31 	Association; Minnesota Association of School Administrators; Minnesota School 
54.32 	Counselors Association; Minnesota Association of Charter Schools; and any other 
54.33 	representatives selected by the task force members. The education commissioner or the 
54.34 	commissioner's designee must convene the task force.
54.35 	(b) The commissioner, upon request, must provide technical assistance to the task 
54.36 	force.
55.1 	(c) The task force must submit its written recommendations under this section to the 
55.2 	legislative committees with jurisdiction over kindergarten through grade 12 education by 
55.3 	February 15, 2014.

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

55.5 	Sec. 18. STANDARD ADULT HIGH SCHOOL DIPLOMA ADVISORY TASK 
55.6 	FORCE.
 55.7 	(a) The commissioner of education shall appoint a nine-member advisory task 
55.8 	force to recommend programmatic requirements for adult basic education programs of 
55.9 	instruction leading to a standard adult high school diploma under Minnesota Statutes, 
55.10 	section 124D.52, subdivision 8. 
55.11 	(b) The commissioner of education must appoint representatives from the following 
55.12 	organizations to the task force by July 1, 2013:
55.13 	(1) one employee of the Department of Education with expertise in adult basic 
55.14 	education;
55.15 	(2) five adult basic education administrators and teachers from local adult basic 
55.16 	education programs located in rural, suburban, and urban areas of the state, at least one of 
55.17 	whom represents the Literacy Action network;
55.18 	(3) one employee of the Minnesota State Colleges and Universities with expertise 
55.19 	in adult basic education;
55.20 	(4) one employee of the Department of Employment and Economic Development 
55.21 	with expertise in adult basic education and employment; and
55.22 	(5) one member of the Minnesota Chamber of Commerce familiar with adult basic 
55.23 	education programs under Minnesota Statutes, section 124D.52.
55.24 	(c) The commissioner of education must convene the task force. Task force 
55.25 	members are not eligible for compensation or reimbursement for expenses related to task 
55.26 	force activities. The commissioner, upon request, must provide technical assistance to 
55.27 	task force members.
55.28 	(d) By February 1, 2014, the task force must submit its recommendations to the 
55.29 	commissioner of education for providing a standard adult high school diploma to persons 
55.30 	who are not eligible for kindergarten through grade 12 services, who do not have a 
55.31 	high school diploma, and who successfully complete an approved adult basic education 
55.32 	program of instruction necessary to earn an adult high school diploma. The commissioner 
55.33 	must consider these recommendations when adopting rules under Minnesota Statutes, 
55.34 	section 124D.52, subdivision 8.

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

56.2 	Sec. 19. IMPLEMENTING DIFFERENTIATED GRADUATION RATE 
56.3 	MEASURES AND EXPLORING ALTERNATIVE ROUTES TO A STANDARD 
56.4 	DIPLOMA FOR AT-RISK AND OFF-TRACK STUDENTS.
 56.5 	(a) To implement the requirements of Minnesota Statutes, section 120B.35, 
56.6 	subdivision 3, paragraph (e), the commissioner of education must consult with recognized 
56.7 	and qualified experts and the stakeholders listed in paragraph (b) on improving 
56.8 	differentiated graduation rates and establishing alternative routes to a standard high school 
56.9 	diploma for at-risk and off-track students throughout the state. The commissioner must 
56.10 	consider and recommend to the legislature:
56.11 	(1) research-based measures that demonstrate the relative success of school 
56.12 	districts, school sites, charter schools, and alternative program providers in improving the 
56.13 	graduation outcomes of at-risk and off-track students; and
56.14 	(2) state options for establishing alternative routes to a standard diploma consistent 
56.15 	with the educational accountability system under Minnesota Statutes, chapter 120B.
56.16 	When proposing alternative routes to a standard diploma, the commissioner also must 
56.17 	identify highly reliable variables that generate summary data to comply with Minnesota 
56.18 	Statutes, section 120B.35, subdivision 3, paragraph (e), including: who initiates the 
56.19 	request for an alternative route; who approves the request for an alternative route; the 
56.20 	parameters of the alternative route process, including whether a student first must fail a 
56.21 	regular, state-mandated exam; and the comparability of the academic and achievement 
56.22 	criteria reflected in the alternative route and the standard route for a standard diploma. 
56.23 	The commissioner is also encouraged to identify the data, timelines, and methods needed 
56.24 	to evaluate and report on the alternative routes to a standard diploma once they are 
56.25 	implemented and the student outcomes that result from those routes.
56.26 	(b) Stakeholders to be consulted include persons from: state-approved alternative 
56.27 	programs; online programs; charter schools; school boards; teachers; metropolitan school 
56.28 	districts; rural educators; university and college faculty with expertise in serving and 
56.29 	assessing at-risk and off-track students; superintendents; high school principals; and 
56.30 	the public. The commissioner may seek input from other interested stakeholders and 
56.31 	organizations with expertise to help inform the commissioner.
56.32 	(c) The commissioner, by February 15, 2014, must develop and submit to the 
56.33 	education policy and finance committees of the legislature recommendations and 
56.34 	legislation, consistent with this section and Minnesota Statutes, section 120B.35, 
56.35 	subdivision 3, paragraph (e), for:
57.1 	(1) measuring and reporting differentiated graduation rates for at-risk and off-track 
57.2 	students throughout the state and the success and costs that school districts, school sites, 
57.3 	charter schools, and alternative program providers experience in identifying and serving 
57.4 	at-risk or off-track student populations; and
57.5 	(2) establishing alternative routes to a standard diploma.

57.6 	EFFECTIVE DATE. This section is effective the day following final enactment 
57.7 	and applies to school reports beginning July 1, 2015.

57.8 	Sec. 20. APPROPRIATIONS.
 57.9 		Subdivision 1.Minnesota Department of Education. The sums indicated in this 
57.10 	section are appropriated from the general fund to the Department of Education for the 
57.11 	fiscal years designated.
57.12 		Subd. 2.Statewide testing and reporting system. For the statewide testing and 
57.13 	reporting system under Minnesota Statutes, section 120B.30:

57.14		$
	17,550,000
	.....
	2014
	
57.15		$
	20,079,000
	.....
	2015
	
57.16 	Any balance in the first year does not cancel but is available in the second year.
57.17 		Subd. 3.Educational planning and assessment system (EPAS) program. For 
57.18 	the educational planning and assessment system program under Minnesota Statutes, 
57.19 	section 120B.128:

57.20		$
	829,000
	.....
	2014
	
57.21		$
	0
	.....
	2015
	
57.22 	Any balance in the first year does not cancel but is available in the second year.

57.23 	Sec. 21. REVISOR'S INSTRUCTION.
 57.24 	The revisor of statutes shall renumber Minnesota Statutes, section 120B.023, 
57.25 	subdivision 2, as Minnesota Statutes, section 120B.021, subdivision 4. The revisor shall 
57.26 	make necessary cross-reference changes consistent with the renumbering.

57.27 	Sec. 22.  REPEALER.
 57.28 	(a) Minnesota Rules, parts 3501.0505; 3501.0510; 3501.0515; 3501.0520; 
57.29 	3501.0525; 3501.0530; 3501.0535; 3501.0540; 3501.0545; and 3501.0550, are repealed.
57.30 	(b) Minnesota Rules, parts 3501.0010; 3501.0020; 3501.0030, subparts 1, 2, 3, 4, 
57.31 	5, 6, 7, 9, 10, 11, 12, 13, 14, 15, and 16; 3501.0040; 3501.0050; 3501.0060; 3501.0090; 
58.1 	3501.0100; 3501.0110; 3501.0120; 3501.0130; 3501.0140; 3501.0150; 3501.0160; 
58.2 	3501.0170; 3501.0180; 3501.0200; 3501.0210; 3501.0220; 3501.0230; 3501.0240; 
58.3 	3501.0250; 3501.0270; 3501.0280, subparts 1 and 2; 3501.0290; 3501.1000; 3501.1020; 
58.4 	3501.1030; 3501.1040; 3501.1050; 3501.1110; 3501.1120; 3501.1130; 3501.1140; 
58.5 	3501.1150; 3501.1160; 3501.1170; 3501.1180; and 3501.1190, are repealed.

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

58.7 	ARTICLE 3
58.8 	EDUCATION EXCELLENCE

58.9 	Section 1. Minnesota Statutes 2012, section 121A.22, subdivision 2, is amended to read:
58.10 		Subd. 2.Exclusions. In addition, this section does not apply to drugs or medicine 
58.11 	that are:
58.12 	(1) purchased without a prescription;
58.13 	(2) used by a pupil who is 18 years old or older;
58.14 	(3) used in connection with services for which a minor may give effective consent, 
58.15 	including section 144.343, subdivision 1, and any other law;
58.16 	(4) used in situations in which, in the judgment of the school personnel who are 
58.17 	present or available, the risk to the pupil's life or health is of such a nature that drugs or 
58.18 	medicine should be given without delay;
58.19 	(5) used off the school grounds;
58.20 	(6) used in connection with athletics or extra curricular activities;
58.21 	(7) used in connection with activities that occur before or after the regular school day;
58.22 	(8) provided or administered by a public health agency to prevent or control an 
58.23 	illness or a disease outbreak as provided for in sections 144.05 and 144.12;
58.24 	(9) prescription asthma or reactive airway disease medications self-administered by 
58.25 	a pupil with an asthma inhaler if the district has received a written authorization from the 
58.26 	pupil's parent permitting the pupil to self-administer the medication, the inhaler is properly 
58.27 	labeled for that student, and the parent has not requested school personnel to administer 
58.28 	the medication to the pupil. The parent must submit written authorization for the pupil to 
58.29 	self-administer the medication each school year; or
58.30 	(10) prescription nonsyringe injectors of epinephrine auto-injectors, consistent with 
58.31 	section 121A.2205, if the parent and prescribing medical professional annually inform 
58.32 	the pupil's school in writing that (i) the pupil may possess the epinephrine or (ii) the 
58.33 	pupil is unable to possess the epinephrine and requires immediate access to nonsyringe 
59.1 	injectors of epinephrine auto-injectors that the parent provides properly labeled to the 
59.2 	school for the pupil as needed.

59.3 	Sec. 2. Minnesota Statutes 2012, section 121A.2205, is amended to read:
59.4 	121A.2205 POSSESSION AND USE OF NONSYRINGE INJECTORS OF
59.5 	 EPINEPHRINE AUTO-INJECTORS; MODEL POLICY.
59.6 		Subdivision 1.Definitions. As used in this section:
59.7 	(1) "administer" means the direct application of an epinephrine auto-injector to 
59.8 	the body of an individual;
59.9 	(2) "epinephrine auto-injector" means a device that automatically injects a 
59.10 	premeasured dose of epinephrine; and
59.11 	(3) "school" means a public school under section 120A.22, subdivision 4, or a 
59.12 	nonpublic school, excluding a home school, under section 120A.22, subdivision 4, that 
59.13 	is subject to the federal Americans with Disabilities Act.
59.14 		Subd. 2.Plan for use of epinephrine auto-injectors. (a) At the start of each school 
59.15 	year or at the time a student enrolls in school, whichever is first, a student's parent, school 
59.16 	staff, including those responsible for student health care, and the prescribing medical 
59.17 	professional must develop and implement an individualized written health plan for a 
59.18 	student who is prescribed nonsyringe injectors of epinephrine auto-injectors that enables 
59.19 	the student to:
59.20 	(1) possess nonsyringe injectors of epinephrine auto-injectors; or
59.21 	(2) if the parent and prescribing medical professional determine the student is unable 
59.22 	to possess the epinephrine, have immediate access to nonsyringe injectors of epinephrine 
59.23 	auto-injectors in close proximity to the student at all times during the instructional day.
59.24 	The plan must designate the school staff responsible for implementing the student's 
59.25 	health plan, including recognizing anaphylaxis and administering nonsyringe injectors of
59.26 	 epinephrine auto-injectors when required, consistent with section 121A.22, subdivision 2, 
59.27 	clause (10). This health plan may be included in a student's 504 plan.
59.28 	(b) A school under this section is a public school under section 120A.22, subdivision 
59.29 	4, or a nonpublic school, excluding a home school, under section 120A.22, subdivision 4, 
59.30 	that is subject to the federal Americans with Disabilities Act. Other nonpublic schools are 
59.31 	encouraged to develop and implement an individualized written health plan for students 
59.32 	requiring nonsyringe injectors of epinephrine auto-injectors, consistent with this section 
59.33 	and section 121A.22, subdivision 2, clause (10).
60.1 	(c) A school district and its agents and employees are immune from liability for 
60.2 	any act or failure to act, made in good faith, in implementing this section and section 
60.3 	121A.2207.
60.4 	(d) The education commissioner may develop and transmit to interested schools a 
60.5 	model policy and individualized health plan form consistent with this section and federal 
60.6 	504 plan requirements. The policy and form may:
60.7 	(1) assess a student's ability to safely possess nonsyringe injectors of epinephrine
60.8 	 auto-injectors;
60.9 	(2) identify staff training needs related to recognizing anaphylaxis and administering 
60.10 	epinephrine when needed;
60.11 	(3) accommodate a student's need to possess or have immediate access to nonsyringe 
60.12 	injectors of epinephrine auto-injectors in close proximity to the student at all times during 
60.13 	the instructional day; and
60.14 	(4) ensure that the student's parent provides properly labeled nonsyringe injectors of 
60.15 	epinephrine auto-injectors to the school for the student as needed.
60.16 	(e) Additional nonsyringe injectors of epinephrine auto-injectors may be available in 
60.17 	school first aid kits.
60.18 	(f) The school board of the school district must define instructional day for the 
60.19 	purposes of this section.

60.20 	Sec. 3. [121A.2207] LIFE-THREATENING ALLERGIES IN SCHOOLS; 
60.21 	STOCK SUPPLY OF EPINEPHRINE AUTO-INJECTORS.
60.22 		Subdivision 1.Districts and schools permitted to maintain supply.
 60.23 	Notwithstanding section 151.37, districts and schools may obtain and possess epinephrine 
60.24 	auto-injectors to be maintained and administered by school personnel to a student or 
60.25 	other individual if, in good faith, it is determined that person is experiencing anaphylaxis 
60.26 	regardless of whether the student or other individual has a prescription for an epinephrine 
60.27 	auto-injector. The administration of an epinephrine auto-injector in accordance with 
60.28 	this section is not the practice of medicine. 
60.29 		Subd. 2.Arrangements with manufacturers. A district or school may enter into 
60.30 	arrangements with manufacturers of epinephrine auto-injectors to obtain epinephrine 
60.31 	auto-injectors at fair-market, free, or reduced prices. A third party, other than a 
60.32 	manufacturer or supplier, may pay for a school's supply of epinephrine auto-injectors.

60.33 	Sec. 4. Minnesota Statutes 2012, section 122A.09, subdivision 4, is amended to read:
61.1 		Subd. 4.License and rules. (a) The board must adopt rules to license public school 
61.2 	teachers and interns subject to chapter 14.
61.3 	(b) The board must adopt rules requiring a person to pass a skills examination in 
61.4 	reading, writing, and mathematics as a requirement for initial teacher licensure, except 
61.5 	that the board may issue up to three additional temporary, one-year teaching licenses to an 
61.6 	otherwise qualified candidate who has not passed the skills exam at the time the candidate 
61.7 	successfully completes an approved teacher preparation program. Such rules must require 
61.8 	college and universities offering a board-approved teacher preparation program to provide 
61.9 	remedial assistance to persons who did not achieve a qualifying score on the skills 
61.10 	examination, including those for whom English is a second language.
61.11 	(c) The board must adopt rules to approve teacher preparation programs. The board, 
61.12 	upon the request of a postsecondary student preparing for teacher licensure or a licensed 
61.13 	graduate of a teacher preparation program, shall assist in resolving a dispute between the 
61.14 	person and a postsecondary institution providing a teacher preparation program when the 
61.15 	dispute involves an institution's recommendation for licensure affecting the person or the 
61.16 	person's credentials. At the board's discretion, assistance may include the application 
61.17 	of chapter 14.
61.18 	(d) The board must provide the leadership and adopt rules for the redesign of teacher 
61.19 	education programs to implement a research based, results-oriented curriculum that 
61.20 	focuses on the skills teachers need in order to be effective. The board shall implement new 
61.21 	systems of teacher preparation program evaluation to assure program effectiveness based 
61.22 	on proficiency of graduates in demonstrating attainment of program outcomes. Teacher 
61.23 	preparation programs including alternative teacher preparation programs under section 
61.24 	122A.245, among other programs, must include a content-specific, board-approved, 
61.25 	performance-based assessment that measures teacher candidates in three areas: planning 
61.26 	for instruction and assessment; engaging students and supporting learning; and assessing 
61.27 	student learning.
61.28 	(e) The board must adopt rules requiring candidates for initial licenses to pass an 
61.29 	examination of general pedagogical knowledge and examinations of licensure-specific 
61.30 	teaching skills. The rules shall be effective by September 1, 2001. The rules under this 
61.31 	paragraph also must require candidates for initial licenses to teach prekindergarten or 
61.32 	elementary students to pass, as part of the examination of licensure-specific teaching 
61.33 	skills, test items assessing the candidates' knowledge, skill, and ability in comprehensive, 
61.34 	scientifically based reading instruction under section 122A.06, subdivision 4, and their 
61.35 	knowledge and understanding of the foundations of reading development, the development 
62.1 	of reading comprehension, and reading assessment and instruction, and their ability to 
62.2 	integrate that knowledge and understanding.
62.3 	(f) The board must adopt rules requiring teacher educators to work directly with 
62.4 	elementary or secondary school teachers in elementary or secondary schools to obtain 
62.5 	periodic exposure to the elementary or secondary teaching environment.
62.6 	(g) The board must grant licenses to interns and to candidates for initial licenses 
62.7 	based on appropriate professional competencies that are aligned with the board's licensing 
62.8 	system and students' diverse learning needs. The board must include these licenses in a 
62.9 	statewide differentiated licensing system that creates new leadership roles for successful 
62.10 	experienced teachers premised on a collaborative professional culture dedicated to meeting 
62.11 	students' diverse learning needs in the 21st century and formalizes mentoring and induction 
62.12 	for newly licensed teachers that is provided through a teacher support framework.
62.13 	(h) The board must design and implement an assessment system which requires a 
62.14 	candidate for an initial license and first continuing license to demonstrate the abilities 
62.15 	necessary to perform selected, representative teaching tasks at appropriate levels.
62.16 	(i) The board must receive recommendations from local committees as established 
62.17 	by the board for the renewal of teaching licenses.
62.18 	(j) The board must grant life licenses to those who qualify according to requirements 
62.19 	established by the board, and suspend or revoke licenses pursuant to sections 122A.20 and 
62.20 	214.10. The board must not establish any expiration date for application for life licenses.
62.21 	(k) The board must adopt rules that require all licensed teachers who are renewing 
62.22 	their continuing license to include in their renewal requirements further preparation in 
62.23 	the areas of using positive behavior interventions and in accommodating, modifying, and 
62.24 	adapting curricula, materials, and strategies to appropriately meet the needs of individual 
62.25 	students and ensure adequate progress toward the state's graduation rule.
62.26 	(l) In adopting rules to license public school teachers who provide health-related 
62.27 	services for disabled children, the board shall adopt rules consistent with license or 
62.28 	registration requirements of the commissioner of health and the health-related boards who 
62.29 	license personnel who perform similar services outside of the school.
62.30 	(m) The board must adopt rules that require all licensed teachers who are renewing 
62.31 	their continuing license to include in their renewal requirements further reading 
62.32 	preparation, consistent with section 122A.06, subdivision 4. The rules do not take effect 
62.33 	until they are approved by law. Teachers who do not provide direct instruction including, at 
62.34 	least, counselors, school psychologists, school nurses, school social workers, audiovisual 
62.35 	directors and coordinators, and recreation personnel are exempt from this section.
63.1 	(n) The board must adopt rules that require all licensed teachers who are renewing 
63.2 	their continuing license to include in their renewal requirements further preparation, 
63.3 	first, in understanding the key warning signs of early-onset mental illness in children 
63.4 	and adolescents and then, during subsequent licensure renewal periods, preparation may 
63.5 	include providing a more in-depth understanding of students' mental illness trauma, 
63.6 	accommodations for students' mental illness, parents' role in addressing students' mental 
63.7 	illness, Fetal Alcohol Spectrum Disorders, autism, the requirements of section 125A.0942 
63.8 	governing restrictive procedures, and de-escalation methods, among other similar topics.

63.9 	EFFECTIVE DATE. Paragraph (b) is effective the day following final enactment. 
63.10 	Paragraph (n) is effective August 1, 2014.

63.11 	Sec. 5. Minnesota Statutes 2012, section 122A.18, subdivision 2, is amended to read:
63.12 		Subd. 2.Teacher and support personnel qualifications. (a) The Board of 
63.13 	Teaching must issue licenses under its jurisdiction to persons the board finds to be 
63.14 	qualified and competent for their respective positions.
63.15 	(b) The board must require a person to pass an examination of skills in reading, 
63.16 	writing, and mathematics before being granted an initial teaching license to provide direct 
63.17 	instruction to pupils in prekindergarten, elementary, secondary, or special education 
63.18 	programs, except that the board may issue up to three additional temporary, one-year 
63.19 	teaching licenses to an otherwise qualified candidate who has not passed the skills 
63.20 	exam at the time the candidate successfully completes an approved teacher preparation 
63.21 	program. The board must require colleges and universities offering a board approved 
63.22 	teacher preparation program to provide make available upon request remedial assistance 
63.23 	that includes a formal diagnostic component to persons enrolled in their institution who 
63.24 	did not achieve a qualifying score on the skills examination, including those for whom 
63.25 	English is a second language. The colleges and universities must provide make available
63.26 	 assistance in the specific academic areas of deficiency in which the person did not achieve 
63.27 	a qualifying score. School districts may make available upon request similar, appropriate, 
63.28 	and timely remedial assistance that includes a formal diagnostic component to those 
63.29 	persons employed by the district who completed their teacher education program, who did 
63.30 	not achieve a qualifying score on the skills examination, including those persons for whom 
63.31 	English is a second language and persons under section 122A.23, subdivision 2, paragraph 
63.32 	(h), who completed their teacher's education program outside the state of Minnesota, 
63.33 	and who received a temporary license to teach in Minnesota. The Board of Teaching 
63.34 	shall report annually to the education committees of the legislature on the total number 
63.35 	of teacher candidates during the most recent school year taking the skills examination, 
64.1 	the number who achieve a qualifying score on the examination, the number who do not 
64.2 	achieve a qualifying score on the examination, the distribution of all candidates' scores, 
64.3 	the number of candidates who have taken the examination at least once before, and the 
64.4 	number of candidates who have taken the examination at least once before and achieve 
64.5 	a qualifying score.
64.6 	(c) A person who has completed an approved teacher preparation program and has 
64.7 	been issued three temporary, one-year teaching licenses, but has not passed the skills exam, 
64.8 	may have the board renew the temporary license if the school district employing the licensee 
64.9 	requests that the licensee continue to teach for that district under a temporary license.
64.10 	(d) The Board of Teaching must grant continuing licenses only to those persons who 
64.11 	have met board criteria for granting a continuing license, which includes passing the skills 
64.12 	examination in reading, writing, and mathematics.
64.13 	(d) (e) All colleges and universities approved by the board of teaching to prepare 
64.14 	persons for teacher licensure must include in their teacher preparation programs a common 
64.15 	core of teaching knowledge and skills to be acquired by all persons recommended 
64.16 	for teacher licensure. This common core shall meet the standards developed by the 
64.17 	interstate new teacher assessment and support consortium in its 1992 "model standards for 
64.18 	beginning teacher licensing and development." Amendments to standards adopted under 
64.19 	this paragraph are covered by chapter 14. The board of teaching shall report annually to 
64.20 	the education committees of the legislature on the performance of teacher candidates 
64.21 	on common core assessments of knowledge and skills under this paragraph during the 
64.22 	most recent school year.

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

64.24 	Sec. 6. Minnesota Statutes 2012, section 122A.23, subdivision 2, is amended to read:
64.25 		Subd. 2.Applicants licensed in other states. (a) Subject to the requirements of 
64.26 	sections 122A.18, subdivision 8, and 123B.03, the Board of Teaching must issue a teaching 
64.27 	license or a temporary teaching license under paragraphs (b) to (e) to an applicant who holds 
64.28 	at least a baccalaureate degree from a regionally accredited college or university and holds 
64.29 	or held a similar out-of-state teaching license that requires the applicant to successfully 
64.30 	complete a teacher preparation program approved by the issuing state, which includes 
64.31 	field-specific teaching methods and student teaching or essentially equivalent experience.
64.32 	(b) The Board of Teaching must issue a teaching license to an applicant who:
64.33 	(1) successfully completed all exams and human relations preparation components 
64.34 	required by the Board of Teaching; and
65.1 	(2) holds or held an out-of-state teaching license to teach the same content field and 
65.2 	grade levels if the scope of the out-of-state license is no more than one grade level less 
65.3 	than a similar Minnesota license.
65.4 	(c) The Board of Teaching, consistent with board rules and paragraph (h), must 
65.5 	issue up to three one-year temporary teaching licenses to an applicant who holds or held 
65.6 	an out-of-state teaching license to teach the same content field and grade levels, where 
65.7 	the scope of the out-of-state license is no more than one grade level less than a similar 
65.8 	Minnesota license, but has not successfully completed all exams and human relations 
65.9 	preparation components required by the Board of Teaching.
65.10 	(d) The Board of Teaching, consistent with board rules, must issue up to three 
65.11 	one-year temporary teaching licenses to an applicant who:
65.12 	(1) successfully completed all exams and human relations preparation components 
65.13 	required by the Board of Teaching; and
65.14 	(2) holds or held an out-of-state teaching license to teach the same content field 
65.15 	and grade levels, where the scope of the out-of-state license is no more than one grade 
65.16 	level less than a similar Minnesota license, but has not completed field-specific teaching 
65.17 	methods or student teaching or equivalent experience.
65.18 	The applicant may complete field-specific teaching methods and student teaching 
65.19 	or equivalent experience by successfully participating in a one-year school district 
65.20 	mentorship program consistent with board-adopted standards of effective practice and 
65.21 	Minnesota graduation requirements.
65.22 	(e) The Board of Teaching must issue a temporary teaching license for a term of 
65.23 	up to three years only in the content field or grade levels specified in the out-of-state 
65.24 	license to an applicant who:
65.25 	(1) successfully completed all exams and human relations preparation components 
65.26 	required by the Board of Teaching; and
65.27 	(2) holds or held an out-of-state teaching license where the out-of-state license is 
65.28 	more limited in the content field or grade levels than a similar Minnesota license.
65.29 	(f) The Board of Teaching must not issue to an applicant more than three one-year 
65.30 	temporary teaching licenses under this subdivision.
65.31 	(g) The Board of Teaching must not issue a license under this subdivision if the 
65.32 	applicant has not attained the additional degrees, credentials, or licenses required in a 
65.33 	particular licensure field.
65.34 	(h) The Board of Teaching must require an applicant for a teaching license or a 
65.35 	temporary teaching license under this subdivision to pass a skills examination in reading, 
65.36 	writing, and mathematics before the board issues the license. Consistent with section 
66.1 	122A.18, subdivision 2, paragraph (c), and notwithstanding other provisions of this 
66.2 	subdivision, the board may issue up to three additional temporary, one-year teaching 
66.3 	licenses to an otherwise qualified applicant who has not passed the skills exam and the 
66.4 	board may renew this temporary license if the school district employing the applicant 
66.5 	requests that the applicant continue to teach for that district under a temporary license.  

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

66.7 	Sec. 7. Minnesota Statutes 2012, section 122A.28, subdivision 1, is amended to read:
66.8 		Subdivision 1.K-12 license to teach deaf and hard-of-hearing students; 
66.9 	relicensure. (a) The Board of Teaching must review and determine appropriate licensure 
66.10 	requirements for a candidate for a license or an applicant for a continuing license to teach 
66.11 	deaf and hard-of-hearing students in prekindergarten through grade 12. In addition to 
66.12 	other requirements, a candidate must demonstrate the minimum level of proficiency in 
66.13 	American sign language as determined by the board.
66.14 	(b) Among other relicensure requirements, each teacher under this section must 
66.15 	complete 30 continuing education clock hours on hearing loss topics, including American 
66.16 	Sign Language, American Sign Language linguistics, or deaf culture, in each licensure 
66.17 	renewal period.

66.18 	EFFECTIVE DATE. This section is effective August 1, 2013.

66.19 	Sec. 8. Minnesota Statutes 2012, section 122A.33, subdivision 3, is amended to read:
66.20 		Subd. 3.Notice of nonrenewal; opportunity to respond. A school board that 
66.21 	declines to renew the coaching contract of a licensed or nonlicensed head varsity coach 
66.22 	must notify the coach within 14 days of that decision. If the coach requests reasons for not 
66.23 	renewing the coaching contract, the board must give the coach its reasons in writing within 
66.24 	ten days of receiving the request. The existence of parent complaints must not be the sole 
66.25 	reason for a board not to renew a coaching contract. Upon request, the board must provide 
66.26 	the coach with a reasonable opportunity to respond to the reasons at a board meeting. The 
66.27 	hearing may be opened or closed at the election of the coach unless the board closes the 
66.28 	meeting under section 13D.05, subdivision 2, to discuss private data.

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

66.30 	Sec. 9. Minnesota Statutes 2012, section 122A.61, subdivision 1, is amended to read:
66.31 		Subdivision 1.Staff development revenue. A district is required to reserve 
66.32 	an amount equal to at least two percent of the basic revenue under section 126C.10, 
67.1 	subdivision 2, for in-service education for programs under section 120B.22, subdivision 2, 
67.2 	for staff development plans, including plans for challenging instructional activities and 
67.3 	experiences under section 122A.60, and for curriculum development and programs, other 
67.4 	in-service education, teachers' evaluation, teachers' workshops, teacher conferences, the 
67.5 	cost of substitute teachers staff development purposes, preservice and in-service education 
67.6 	for special education professionals and paraprofessionals, and other related costs for 
67.7 	staff development efforts. A district may annually waive the requirement to reserve their 
67.8 	basic revenue under this section if a majority vote of the licensed teachers in the district 
67.9 	and a majority vote of the school board agree to a resolution to waive the requirement. 
67.10 	A district in statutory operating debt is exempt from reserving basic revenue according 
67.11 	to this section. Districts may expend an additional amount of unreserved revenue for 
67.12 	staff development based on their needs.

67.13 	EFFECTIVE DATE. This section is effective July 1, 2013.

67.14 	Sec. 10. Minnesota Statutes 2012, section 124D.095, subdivision 10, is amended to 
67.15 	read:
67.16 		Subd. 10.Online and Digital Learning Advisory Council. (a) An Online and 
67.17 	Digital Learning Advisory Council is established. The term for each council member shall 
67.18 	be three years. The advisory council is composed of 1215 members from throughout the 
67.19 	state who have demonstrated experience with or interest in online learning. Two members 
67.20 	of the council must represent technology business. The remaining membership must 
67.21 	represent the following interests:
67.22 	(1) superintendents;
67.23 	(2) special education specialists;
67.24 	(3) technology directors;
67.25 	(4) teachers;
67.26 	(5) rural, urban, and suburban school districts;
67.27 	(6) supplemental programs;
67.28 	(7) full-time programs;
67.29 	(8) consortia;
67.30 	(9) charter schools; 
67.31 	(10) Board of Teaching-approved teacher preparation programs; and
67.32 	(11) parents.
67.33 	The members of the council shall be appointed by the commissioner. 
67.34 	(b) The advisory council shall bring to the attention of the commissioner and the 
67.35 	legislature any matters related to online and digital learning and. The advisory council 
68.1 	shall provide input to the department and the legislature in online learning matters related, 
68.2 	but not restricted, to:
68.3 	(1) quality assurance;
68.4 	(2) teacher qualifications;
68.5 	(3) program approval;
68.6 	(4) special education;
68.7 	(5) attendance;
68.8 	(6) program design and requirements; and
68.9 	(7) fair and equal access to programs.
68.10 	(b) By June 30, 2013, (c) The Online Learning advisory council with the support of 
68.11 	the Minnesota Department of Education and the Minnesota Learning Commons shall:
68.12 	(1) oversee the development and maintenance of a catalog of publicly available 
68.13 	digital learning content currently aligned to Minnesota academic standards to include:
68.14 	(i) indexing of Minnesota academic standards with which curriculum is aligned;
68.15 	(ii) a method for student and teacher users to provide evaluative feedback; and
68.16 	(iii) a plan for ongoing maintenance; and
68.17 	(2) recommend methods for including student performance data on the digital 
68.18 	learning content within the catalog.
68.19 	(d) The advisory council shall also consider and provide input to the department and 
68.20 	legislature on digital learning matters including, but not limited to:
68.21 	(1) methods to maximize the effectiveness of technology and related instructional 
68.22 	strategies in teaching and learning to improve student outcomes and identify methods 
68.23 	for measuring the impact of using various forms of digital learning in and outside of 
68.24 	the classroom;
68.25 	(2) the effective use of technology to advance a student's ability to learn 21st 
68.26 	century skills and knowledge and to involve parents in an education system that is more 
68.27 	transparent in terms of outcomes and processes by providing toolkits to help parents, 
68.28 	students, and schools make good decisions in the environment of choice;
68.29 	(3) the use of technology for schools to personalize or differentiate learning to the 
68.30 	needs, abilities, and learning styles of each student and guide students towards greater 
68.31 	ownership of their learning, so that all students are digital learners and have access to 
68.32 	high-quality digital curriculum in every class and level;
68.33 	(4) methods to prepare current and future educators, education leaders, and staff to 
68.34 	provide professional development and collaboration around best practices to use and to 
68.35 	evaluate the effectiveness of digital tools and instructional strategies to personalize or 
69.1 	differentiate education and focus on competency-based learning and advancement, so that 
69.2 	all teachers have a digital presence and use high-quality digital curriculum;
69.3 	(5) methods to support collaborative efforts to leverage resources among districts or 
69.4 	at regional levels to provide digital resources, content, and curriculum;
69.5 	(6) the barriers to improving the use of technology in the classroom, and methods 
69.6 	to ensure that each student has access to a digital device and high-speed Internet at 
69.7 	school and at home; and
69.8 	(7) the current disparities in digital education across the state.
69.9 	(e) The advisory council shall make policy recommendations to the commissioner 
69.10 	and committees of the legislature having jurisdiction over kindergarten through grade 12 
69.11 	education annually by December 15 of each year, including implementation plans based 
69.12 	on recommendations from previous councils and task forces related to online and digital 
69.13 	learning.
69.14 	(c)(f) The Online and Digital Learning Advisory Council under this subdivision 
69.15 	expires June 30, 2013 2016.

69.16 	Sec. 11. Minnesota Statutes 2012, section 124D.122, is amended to read:
69.17 	124D.122 ESTABLISHMENT OF FLEXIBLE LEARNING YEAR PROGRAM.
69.18 	The board of any district or a consortium of districts, with the approval of the 
69.19 	commissioner, may establish and operate a flexible learning year program in one or more of 
69.20 	the day or residential facilities for children with a disability within the district. Consortiums 
69.21 	may use a single application and evaluation process, though results, public hearings, and 
69.22 	board approvals must be obtained for each district as required under appropriate sections.

69.23 	Sec. 12. Minnesota Statutes 2012, section 124D.42, is amended to read:
69.24 	124D.42 READING AND MATH CORPS.
69.25 		Subd. 6.Program training. The commission must, within available resources:
69.26 	(1) orient each grantee organization in the nature, philosophy, and purpose of the 
69.27 	program;
69.28 	(2) build an ethic of community service through general community service training; 
69.29 	and
69.30 	(3) provide guidance on integrating programmatic-based measurement into program 
69.31 	models.
69.32 		Subd. 8.Minnesota reading corps program. (a) A Minnesota reading corps 
69.33 	program is established to provide ServeMinnesota Innovation AmeriCorps members with 
69.34 	a data-based problem-solving model of literacy instruction to use in helping to train local 
70.1 	Head Start program providers, other prekindergarten program providers, and staff in 
70.2 	schools with students in kindergarten through grade 3 to evaluate and teach early literacy 
70.3 	skills, including comprehensive, scientifically based reading instruction under section 
70.4 	122A.06, subdivision 4, to children age 3 to grade 3.
70.5 	(b) Literacy programs under this subdivision must comply with the provisions 
70.6 	governing literacy program goals and data use under section 119A.50, subdivision 3, 
70.7 	paragraph (b).
70.8 	(c) The commission must submit a biennial report to the committees of the 
70.9 	legislature with jurisdiction over kindergarten through grade 12 education that records and 
70.10 	evaluates program data to determine the efficacy of the programs under this subdivision.
70.11 		Subd. 9.Minnesota math corps program. (a) A Minnesota math corps program is 
70.12 	established to give ServeMinnesota AmeriCorps members a data-based problem-solving 
70.13 	model of mathematics instruction useful for providing elementary and middle school 
70.14 	students and their teachers with instructional support to meet state academic standards in 
70.15 	mathematics.
70.16 	(b) The commission must submit a biennial report to the legislative committees with 
70.17 	jurisdiction over kindergarten through grade 12 education that records and evaluates 
70.18 	program data to determine the efficacy of the programs under this subdivision.

70.19 	EFFECTIVE DATE. This section is effective July 1, 2013.

70.20 	Sec. 13. Minnesota Statutes 2012, section 124D.59, subdivision 2, is amended to read:
70.21 		Subd. 2.English learner. (a) "English learner" means a pupil in kindergarten 
70.22 	through grade 12 who meets the following requirements:
70.23 	(1) the pupil, as declared by a parent or guardian first learned a language other than 
70.24 	English, comes from a home where the language usually spoken is other than English, or 
70.25 	usually speaks a language other than English; and
70.26 	(2) the pupil is determined by developmentally appropriate measures, which might 
70.27 	include observations, teacher judgment, parent recommendations, or developmentally 
70.28 	appropriate assessment instruments that measure the pupil's emerging academic English 
70.29 	and are aligned to state standards for English language development defined in rule, to 
70.30 	lack the necessary English skills to participate fully in classes taught in English.
70.31 	(b) Notwithstanding paragraph (a), a pupil in grades 4 through 12 who was enrolled 
70.32 	in a Minnesota public school on the dates during the previous school year when a 
70.33 	commissioner provided assessment that measures the pupil's emerging academic English 
70.34 	was administered, shall not be counted as an English learner in calculating English learner 
70.35 	pupil units under section 126C.05, subdivision 17, and shall not generate state English 
71.1 	learner aid under section 124D.65, subdivision 5, unless the pupil scored below the state 
71.2 	cutoff score or is otherwise counted as a nonproficient participant on an assessment 
71.3 	measuring emerging academic English provided by the commissioner during the previous 
71.4 	school year.
71.5 	(c) Notwithstanding paragraphs (a) and (b), a pupil in kindergarten through grade 
71.6 	12 shall not be counted as an English learner in calculating English learner pupil units 
71.7 	under section 126C.05, subdivision 17, and shall not generate state English learner aid 
71.8 	under section 124D.65, subdivision 5, if:
71.9 	(1) the pupil is not enrolled during the current fiscal year in an educational program 
71.10 	for English learners in accordance with sections 124D.58 to 124D.64; or
71.11 	(2) the pupil has generated five or more years of average daily membership in 
71.12 	Minnesota public schools since July 1, 1996.

71.13 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 
71.14 	and later.

71.15 	Sec. 14. Minnesota Statutes 2012, section 124D.61, is amended to read:
71.16 	124D.61 GENERAL REQUIREMENTS FOR PROGRAMS.
71.17 	A district that enrolls one or more English learners must implement an educational 
71.18 	program that includes at a minimum the following requirements:
71.19 	(1) identification, program entrance, and reclassification criteria for English learners 
71.20 	and program entrance and exit criteria for English learners must be documented by the 
71.21 	district, applied uniformly to English learners, and made available to parents and other 
71.22 	stakeholders upon request;
71.23 	(2) a written plan of services that describes programming by English proficiency level 
71.24 	made available to parents upon request. The plan must articulate the amount and scope of 
71.25 	service offered to English learners through an educational program for English learners;
71.26 	(3) professional development opportunities for ESL, bilingual education, 
71.27 	mainstream, and all staff working with English learners which are: (i) coordinated with 
71.28 	the district's professional development activities; (ii) related to the needs of English 
71.29 	learners; and (iii) ongoing;
71.30 	(4) to the extent possible, avoid isolating English learners for a substantial part of 
71.31 	the school day; and
71.32 	(5) in predominantly nonverbal subjects, such as art, music, and physical education, 
71.33 	permit English learners to participate fully and on an equal basis with their contemporaries 
71.34 	in public school classes provided for these subjects. To the extent possible, the district 
72.1 	must assure to pupils enrolled in a program for English learners an equal and meaningful 
72.2 	opportunity to participate fully with other pupils in all extracurricular activities.
72.3 	The exit criteria under clause (1) must be equivalent to the emerging academic English 
72.4 	measures on state assessments for English language development.

72.5 	Sec. 15. Minnesota Statutes 2012, section 124D.79, subdivision 1, is amended to read:
72.6 		Subdivision 1.Community involvement. The commissioner must provide for the 
72.7 	maximum involvement of the state committees on American Indian education, parents 
72.8 	of American Indian children, secondary students eligible to be served, American Indian 
72.9 	language and culture education teachers, American Indian teachers, teachers' aides, 
72.10 	representatives of community groups, and persons knowledgeable in the field of American 
72.11 	Indian education, in the formulation of policy and procedures relating to the administration 
72.12 	of sections 124D.71 to 124D.82. The commissioner must annually hold a field hearing on 
72.13 	American Indian education to gather input from American Indian educators, parents, and 
72.14 	students on the state of American Indian education in Minnesota. Results of the hearing 
72.15 	must be made available to all 11 tribal nations for review and comment.

72.16 	Sec. 16. Minnesota Statutes 2012, section 124D.79, is amended by adding a 
72.17 	subdivision to read:
72.18 		Subd. 4.Consultation with the Tribal Nations Education Committee. (a) The 
72.19 	commissioner shall seek consultation with the Tribal Nations Education Committee on all 
72.20 	issues relating to American Indian education including:
72.21 	(1) administration of the commissioner's duties under sections 124D.71 to 124D.82 
72.22 	and other programs;
72.23 	(2) administration of other programs for the education of American Indian people, as 
72.24 	determined by the commissioner;
72.25 	(3) awarding of scholarships to eligible American Indian students;
72.26 	(4) administration of the commissioner's duties regarding awarding of American 
72.27 	Indian postsecondary preparation grants to school districts; and
72.28 	(5) recommendations of education policy changes for American Indians.
72.29 	(b) Membership in the Tribal Nations Education Committee is at the sole discretion 
72.30 	of the committee and nothing in this subdivision gives the commissioner authority to 
72.31 	dictate committee membership.

72.32 	Sec. 17. [124D.791] INDIAN EDUCATION DIRECTOR.
73.1 		Subdivision 1.Appointment. An Indian education director shall be appointed by 
73.2 	the commissioner.
73.3 		Subd. 2.Qualifications. The commissioner shall select the Indian education 
73.4 	director on the basis of outstanding professional qualifications and knowledge of 
73.5 	American Indian education, culture, practices, and beliefs. The Indian education director 
73.6 	serves in the unclassified service. The commissioner may remove the Indian education 
73.7 	director for cause. The commissioner is encouraged to seek qualified applicants who 
73.8 	are enrolled members of a tribe.
73.9 		Subd. 3.Compensation. Compensation of the Indian education director shall be 
73.10 	established under chapter 15A.
73.11 		Subd. 4.Duties; powers. (a) The Indian education director shall:
73.12 	(1) serve as the liaison for the department with the Tribal Nations Education 
73.13 	Committee, the 11 reservations, the Minnesota Chippewa tribe, the Minnesota Indian 
73.14 	Affairs Council, and the Urban Indian Advisory Council;
73.15 	(2) evaluate the state of American Indian education in Minnesota;
73.16 	(3) engage the tribal bodies, community groups, parents of children eligible to be 
73.17 	served by American Indian education programs, American Indian administrators and 
73.18 	teachers, persons experienced in the training of teachers for American Indian education 
73.19 	programs, the tribally controlled schools, and other persons knowledgeable in the field of 
73.20 	American Indian education and seek their advice on policies that can improve the quality 
73.21 	of American Indian education;
73.22 	(4) advise the commissioner on American Indian education issues, including:
73.23 	(i) issues facing American Indian students;
73.24 	(ii) policies for American Indian education;
73.25 	(iii) awarding scholarships to eligible American Indian students and in administering 
73.26 	the commissioner's duties regarding awarding of American Indian postsecondary 
73.27 	preparation grants to school districts; and
73.28 	(iv) administration of the commissioner's duties under sections 124D.71 to 124D.82 
73.29 	and other programs for the education of American Indian people;
73.30 	(5) propose to the commissioner legislative changes that will improve the quality 
73.31 	of American Indian education;
73.32 	(6) develop a strategic plan and a long-term framework for American Indian 
73.33 	education, in conjunction with the Minnesota Indian Affairs Council, that is updated every 
73.34 	five years and implemented by the commissioner, with goals to:
73.35 	(i) increase American Indian student achievement, including increased levels of 
73.36 	proficiency and growth on statewide accountability assessments;
74.1 	(ii) increase the number of American Indian teachers in public schools;
74.2 	(iii) close the achievement gap between American Indian students and their more 
74.3 	advantaged peers;
74.4 	(iv) increase the statewide graduation rate for American Indian students; and
74.5 	(v) increase American Indian student placement in postsecondary programs and 
74.6 	the workforce; and
74.7 	(7) keep the American Indian community informed about the work of the department 
74.8 	by reporting to the Tribal Nations Education Committee at each committee meeting.

74.9 	Sec. 18. [124D.861] ACHIEVEMENT AND INTEGRATION FOR MINNESOTA.
74.10 		Subdivision 1.Program to close the academic achievement and opportunity 
74.11 	gap. (a) The "Achievement and Integration for Minnesota" program is established to 
74.12 	promote diversity, pursue racial and economic integration, and increase student academic 
74.13 	achievement and equitable educational opportunities in Minnesota public schools. The 
74.14 	program must serve students of varying racial, ethnic, and economic backgrounds, taking 
74.15 	into account unique geographic and demographic particularities affecting students, 
74.16 	schools, and districts including race, neighborhood locations and characteristics, grades, 
74.17 	socioeconomic status, academic performance, and language barriers.
74.18 	(b) For purposes of this section and section 124D.862, "eligible district" means a 
74.19 	district required to submit a plan to the commissioner under Minnesota Rules governing 
74.20 	school desegregation and integration.
74.21 	(c) Eligible districts must use the revenue under section 124D.862 to pursue racial 
74.22 	and economic integration in schools through: (1) in-school educational practices and 
74.23 	integrated learning environments created to prepare all students to be effective citizens, 
74.24 	enhance social cohesion, and reinforce democratic values; and (2) corresponding 
74.25 	and meaningful policies and curricula and trained instructors, administrators, school 
74.26 	counselors, and other advocates who support and enhance in-school practices and 
74.27 	integrated learning environments under this section. In-school practices and integrated 
74.28 	learning environments must promote increased student academic achievement, cultural 
74.29 	fluency, graduation and educational attainment rates, and parent involvement.
74.30 		Subd. 2.Plan components. (a) The school board of each eligible district must 
74.31 	formally develop and implement a long-term comprehensive plan that identifies the 
74.32 	collaborative structures and systems, in-school strategies, inclusive best educational 
74.33 	practices, and partnerships with higher education institutions and industries required 
74.34 	to effect this section and increase the academic achievement of all students. Plan 
74.35 	components may include: innovative and integrated prekindergarten through grade 12 
75.1 	learning environments that offer students school enrollment choices; family engagement 
75.2 	initiatives that involve families in their students' academic life and success; professional 
75.3 	development opportunities for teachers and administrators focused on improving the 
75.4 	academic achievement of all students; increased programmatic opportunities focused 
75.5 	on rigor and college and career readiness for underserved students, including students 
75.6 	enrolled in alternative learning centers under section 123A.05, public alternative programs 
75.7 	under section 126C.05, subdivision 15, or contract alternative programs under section 
75.8 	124D.69, among other underserved students; or recruitment and retention of teachers and 
75.9 	administrators with diverse backgrounds. The plan must specify district and school goals 
75.10 	for reducing the disparity in academic achievement among all racial and ethnic categories of 
75.11 	students and promoting racial and economic integration in schools and districts over time.
75.12 	(b) Among other requirements, an eligible district must implement a cost-effective, 
75.13 	research-based intervention that includes formative assessment practices to reduce the 
75.14 	disparity in student academic achievement between the highest and lowest performing 
75.15 	racial and ethnic categories of students as measured by student demonstration of 
75.16 	proficiency on state reading and math assessments.
75.17 	(c) Eligible districts must collaborate in creating efficiencies and eliminating the 
75.18 	duplication of programs and services under this section, which may include forming a 
75.19 	single, seven-county metropolitan areawide partnership of eligible districts for this purpose.
75.20 		Subd. 3.Biennial progress; budget process. (a) To receive revenue under section 
75.21 	124D.862, the school board of an eligible district must hold at least one formal hearing by 
75.22 	March 1 in the year preceding the current biennium to report to the public its progress in 
75.23 	realizing the goals identified in its plan.  At the hearing, the board must provide the public 
75.24 	with longitudinal data demonstrating district and school progress in reducing the disparity 
75.25 	in student academic achievement among all racial and ethnic categories of students and 
75.26 	realizing racial and economic integration, consistent with its plan and the measures in 
75.27 	paragraph (b). At least 30 days before the formal hearing under this paragraph, the 
75.28 	board must post on the district Web site, in an understandable, readily accessible format, 
75.29 	up-to-date longitudinal data on district and school progress in reducing disparities in 
75.30 	students' academic achievement, consistent with this subdivision. The district also must 
75.31 	submit to the commissioner by March 1 in the year preceding the current biennium a 
75.32 	detailed biennial budget for continuing to implement its plan and the commissioner must 
75.33 	review and approve or disapprove the budget by June 1 of that year.
75.34 	(b) The longitudinal data required under paragraph (a) must be based on one or 
75.35 	more of the following measures:
76.1 	(1) the number of world language proficiency or high achievement certificates 
76.2 	awarded under section 120B.022, subdivision 1, paragraphs (b) and (c);
76.3 	(2) student growth and progress toward proficiency in reading or mathematics as 
76.4 	defined under section 120B.299;
76.5 	(3) adequate yearly progress under section 120B.35, subdivision 2;
76.6 	(4) preparation for postsecondary academic and career opportunities under section 
76.7 	120B.35, subdivision 3, paragraph (c), clause (1);
76.8 	(5) rigorous coursework completed under section 120B.35, subdivision 3, paragraph 
76.9 	(c), clause (2); or
76.10 	(6) school safety and students' engagement and connection at school under section 
76.11 	120B.35, subdivision 3, paragraph (d).
76.12 		Subd. 4.Evaluation. The commissioner must evaluate the efficacy of district 
76.13 	plans in reducing the disparity in student academic achievement among all racial and 
76.14 	ethnic categories of students and realizing racial and economic integration and report the 
76.15 	commissioner's findings to the legislative committees with jurisdiction over kindergarten 
76.16 	through grade 12 education by February 1 every fourth year beginning February 1, 2017.

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

76.18 	Sec. 19. [124D.862] ACHIEVEMENT AND INTEGRATION REVENUE.
76.19 		Subdivision 1.Eligibility. A school district is eligible for achievement and 
76.20 	integration revenue under this section if the district has a biennial achievement and 
76.21 	integration plan approved by the department under section 124D.861.
76.22 		Subd. 2.Achievement and integration revenue. (a) An eligible district's initial 
76.23 	achievement and integration revenue equals the sum of (1) $350 times the district's adjusted 
76.24 	pupil units for that year times the ratio of the district's enrollment of protected students 
76.25 	for the previous school year to total enrollment for the previous school year, and (2) the 
76.26 	greater of zero or 65 percent of the difference between the district's integration revenue for 
76.27 	fiscal year 2013 and the district's integration revenue for fiscal year 2014 under clause (1).
76.28 	(b) In each year, 0.2 percent of each district's initial achievement and integration 
76.29 	revenue is transferred to the department for the oversight and accountability activities 
76.30 	required under this section and section 124D.861.
76.31 	(c) A district that did not meet its achievement goals established in section 124D.861 
76.32 	for the previous biennium must have its initial achievement and integration revenue 
76.33 	reduced by five percent for the current year.
77.1 	(d) Any revenue saved by the reductions in paragraph (c) must be proportionately 
77.2 	reallocated on a per-pupil basis to all districts that met their achievement goals in the 
77.3 	previous biennium.
77.4 		Subd. 3.Achievement and integration aid. A district's achievement and 
77.5 	integration aid equals 70 percent of its achievement and integration revenue.
77.6 		Subd. 4.Achievement and integration levy. A district's achievement and 
77.7 	integration levy equals the difference between its achievement and integration revenue 
77.8 	and its achievement and integration aid. For Special School District No. 1, Minneapolis, 
77.9 	Independent School District No. 625, St. Paul, and Independent School District No. 709, 
77.10 	Duluth, 100 percent of the levy certified under this subdivision is shifted into the prior 
77.11 	calendar year for purposes of sections 123B.75, subdivision 5, and 127A.441.
77.12 		Subd. 5.Incentive revenue. An eligible school district's maximum incentive 
77.13 	revenue equals $10 per adjusted pupil unit. In order to receive this revenue, a district 
77.14 	must be implementing a voluntary plan to reduce racial enrollment disparities through 
77.15 	intradistrict and interdistrict activities that have been approved as a part of the district's 
77.16 	achievement and integration plan.
77.17 		Subd. 6.Revenue reserved. Integration revenue received under this section must 
77.18 	be reserved and used only for the programs authorized in subdivision 7.
77.19 		Subd. 7.Revenue uses. (a) At least 80 percent of a district's achievement and 
77.20 	integration revenue received under this section must be used for innovative and integrated 
77.21 	learning environments, school enrollment choices, family engagement activities, and other 
77.22 	approved programs providing direct services to students.
77.23 	(b) Up to 20 percent of the revenue may be used for professional development and 
77.24 	staff development activities and placement services.
77.25 	(c) No more than ten percent of the total amount of revenue may be spent on 
77.26 	administrative services.

77.27 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 
77.28 	and later.

77.29 	Sec. 20. [127A.051] SCHOOL CLIMATE COUNCIL.
77.30 		Subdivision 1.Establishment and membership. (a) A multiagency leadership 
77.31 	council is established to improve school climate and school safety so that all Minnesota 
77.32 	students in prekindergarten through grade 12 schools and higher education institutions 
77.33 	are provided with safe and welcoming learning environments in order to maximize each 
77.34 	student's learning potential.
77.35 	(b) The council shall consist of:
78.1 	(1) the commissioners or their designees from the Departments of Education, 
78.2 	Health, Human Rights, Human Services, Public Safety, and Corrections, and the Office of 
78.3 	Higher Education;
78.4 	(2) one representative each from the Board of Teaching, Board of School 
78.5 	Administrators, Minnesota School Boards Association, Elementary School Principals 
78.6 	Association, Association of Secondary School Principals, and Education Minnesota as 
78.7 	selected by each organization;
78.8 	(3) two representatives each of student support personnel, parents, and students as 
78.9 	selected by the commissioner of education;
78.10 	(4) two representatives of local law enforcement as selected by the commissioner of 
78.11 	public safety;
78.12 	(5) two representatives of the judicial branch as selected by the chief justice of 
78.13 	the Supreme Court; and
78.14 	(6) one charter school representative selected by the Minnesota Association of 
78.15 	Charter Schools.
78.16 		Subd. 2.Duties. The council must provide leadership for the following activities:
78.17 	(1) establishment of norms and standards for prevention, intervention, and support 
78.18 	around issues of prohibited conduct;
78.19 	(2) advancement of evidence-based policy and best practices to improve school 
78.20 	climate and promote school safety; and
78.21 	(3) development and dissemination of resources and training for schools and 
78.22 	communities about issues of prohibited conduct and other school safety-related issues.

78.23 	Sec. 21. [127A.052] SCHOOL CLIMATE CENTER.
78.24 	(a) The commissioner shall establish a school climate center at the department to 
78.25 	help districts and schools under section 121A.031 provide a safe and supportive learning 
78.26 	environment and foster academic achievement for all students by focusing on prevention, 
78.27 	intervention, support, and recovery. The center must work collaboratively with implicated 
78.28 	state agencies identified by the center and schools, communities, and interested individuals 
78.29 	and organizations to determine how to best use available resources.
78.30 	(b) The center's services shall include:
78.31 	(1) evidence-based policy review, development, and dissemination;
78.32 	(2) single, point-of-contact services for schools, parents, and students seeking 
78.33 	information or other help;
79.1 	(3) qualitative and quantitative data gathering, interpretation, and dissemination of 
79.2 	summary data for existing reporting systems and student surveys and the identification 
79.3 	and pursuit of emerging trends and issues;
79.4 	(4) assistance to districts and schools in using Minnesota student survey results to 
79.5 	inform intervention and prevention programs;
79.6 	(5) education and skill building;
79.7 	(6) multisector and multiagency planning and advisory activities incorporating 
79.8 	best practices and research; and
79.9 	(7) administrative and financial support for school site-based planning, school sites 
79.10 	recovering from incidents of violence, and violence prevention education.
79.11 	(c) The center shall:
79.12 	(1) compile and make available to all districts and schools evidence-based elements 
79.13 	and resources to develop and maintain safe and supportive schools;
79.14 	(2) establish and maintain a central repository for collecting and analyzing 
79.15 	information about prohibited conduct, including but not limited to:
79.16 	(i) training materials on strategies and techniques to prevent and appropriately 
79.17 	address prohibited conduct;
79.18 	(ii) model programming;
79.19 	(iii) remedial responses consistent with section 121A.031, subdivision 3, paragraph 
79.20 	(g); and
79.21 	(iv) other resources for improving the school climate and preventing prohibited 
79.22 	conduct;
79.23 	(3) assist districts and schools to develop strategies and techniques for effectively 
79.24 	communicating with and engaging parents in efforts to protect students from prohibited 
79.25 	conduct by other students and adults; and
79.26 	(4) solicit input from social media experts on implementing this section.
79.27 	(d) The commissioner shall provide administrative services including personnel, 
79.28 	budget, payroll and contract services, and staff support for center activities including 
79.29 	developing and disseminating materials, providing seminars, and developing and 
79.30 	maintaining a Web site. Center staff shall include a center director, a data analyst 
79.31 	coordinator, and trainers who provide training to affected state and local organizations 
79.32 	under a fee-for-service agreement. The financial, administrative, and staff support the 
79.33 	commissioner provides under this section must be based on an annual budget and work 
79.34 	program developed by the center and submitted to the commissioner by the center director.
79.35 	(e) School climate center staff may consult with school safety center staff at the 
79.36 	Department of Public Safety in providing services under this section.

80.1 	EFFECTIVE DATE. This section is effective beginning July 1, 2013.

80.2 	Sec. 22. TEACHER LICENSURE ADVISORY TASK FORCE.
 80.3 	(a) A Teacher Licensure Advisory Task Force is established to make 
80.4 	recommendations to the Board of Teaching, the commissioner of education, and the 
80.5 	education committees of the legislature on requirements for: teacher applicants to 
80.6 	demonstrate mastery of basic reading, writing, and mathematics skills through nationally 
80.7 	normed assessments, a basic skills portfolio, or accredited college coursework, among other 
80.8 	methods of demonstrating basic skills mastery; and an alternative licensure pathway for 
80.9 	nonnative English speakers seeking licensure to teach in a language immersion program.
80.10 	(b) Task force recommendations on how teacher candidates demonstrate basic skills 
80.11 	mastery must encompass the following criteria:
80.12 	(1) assessment content must be relevant to the teacher's subject area licensure;
80.13 	(2) the scope of assessment content must be documented in sufficient detail to 
80.14 	correspond to a similarly detailed description of relevant public school curriculum;
80.15 	(3) the scope of assessment content must be publicly available and readily accessible 
80.16 	on the Web site of the Board of Teaching and all Minnesota board-approved teacher 
80.17 	preparation programs and institutions;
80.18 	(4) the Board of Teaching and all Minnesota board-approved teacher preparation 
80.19 	programs and institutions, upon request, must make available to the public at cost a written 
80.20 	review of the scope of assessment content;
80.21 	(5) if applicable, the Board of Teaching and all Minnesota board-approved teacher 
80.22 	preparation programs and institutions annually must post on their Web site up-to-date 
80.23 	longitudinal summary data showing teacher candidates' overall passing rate and the 
80.24 	passing rate for each demographic group of teacher candidates taking a basic skills 
80.25 	assessment in that school year and in previous school years;
80.26 	(6) reliable evidence showing assessment content is not culturally biased;
80.27 	(7) the Board of Teaching and all Minnesota board-approved teacher preparation 
80.28 	programs and institutions must appropriately accommodate teacher candidates with 
80.29 	documented learning disabilities; and
80.30 	(8) if applicable, give timely, detailed feedback to teacher candidates who do not 
80.31 	pass the basic skills assessment sufficient for the candidate to target specific areas of 
80.32 	deficiency for appropriate remediation.
80.33 	(c) The Teacher Licensure Advisory Task Force shall be composed of the following 
80.34 	members:
80.35 	(1) two members of the Board of Teaching appointed by the board's chair;
81.1 	(2) two representatives from the Department of Education appointed by the 
81.2 	commissioner of education;
81.3 	(3) two members of the house of representatives appointed by the speaker of the 
81.4 	house, one from the minority party and one from the majority party;
81.5 	(4) two members of the senate appointed by the Subcommittee on Committees of 
81.6 	the Committee on Rules and Administration of the senate, one from the minority party 
81.7 	and one from the majority party;
81.8 	(5) one elementary school principal from rural Minnesota appointed by the 
81.9 	Minnesota Elementary School Principals Association and one secondary school principal 
81.10 	from the seven-county metropolitan area appointed by the Minnesota Secondary School 
81.11 	Principals Association;
81.12 	(6) one licensed and practicing public elementary school teacher and one licensed 
81.13 	and practicing secondary school teacher appointed by Education Minnesota;
81.14 	(7) one teacher preparation faculty member each from the University of Minnesota 
81.15 	system appointed by the system president, the Minnesota State Colleges and Universities 
81.16 	system appointed by the system chancellor, and the Minnesota Private Colleges and 
81.17 	Universities system appointed by the Minnesota Private Colleges Council;
81.18 	(8) one member of the Nonpublic Education Council appointed by the council; and
81.19 	(9) one representative of Minnesota charter schools appointed by the Minnesota 
81.20 	Charter Schools Association.
81.21 	(d) The executive director of the Board of Teaching and the commissioner of 
81.22 	education jointly must convene the task force by August 1, 2013. Task force members 
81.23 	are not eligible for compensation or reimbursement for expenses related to task force 
81.24 	activities. The executive director of the board and the commissioner of education must 
81.25 	provide technical assistance to task force members upon request.
81.26 	(e) By February 1, 2014, task force members must submit to the Board of Teaching, 
81.27 	the commissioner of education, and the education committees of the legislature their 
81.28 	written recommendations on requirements for teacher applicants to demonstrate mastery of 
81.29 	basic reading, writing, and mathematics skills and for an alternative licensure pathway for 
81.30 	nonnative English speakers seeking licensure to teach in a language immersion program.

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

81.32 	Sec. 23. SCHOOL CLIMATE CENTER FIRST-YEAR PRIORITIES.
 81.33 	(a) During the first year the school climate center operates under Minnesota Statutes, 
81.34 	section 127A.052, the center shall:
82.1 	(1) work in partnership with the Department of Public Safety school safety center 
82.2 	and other appropriate entities to establish and staff the school climate council under 
82.3 	Minnesota Statutes, section 127A.051;
82.4 	(2) develop and disseminate a model bullying and intimidation prevention policy 
82.5 	for schools;
82.6 	(3) provide regional training and technical assistance to schools on best practices for 
82.7 	ensuring a positive school climate;
82.8 	(4) collaborate with other entities to establish and make accessible baseline data to 
82.9 	inform and guide efforts to improve the school climate; and
82.10 	(5) develop a tool kit, available through the Department of Education Web site, of 
82.11 	current research-based practices that promote positive learning environments and help 
82.12 	repair learning environments when harm occurs, including materials appropriate for use 
82.13 	with diverse and special needs populations.
82.14 	(b) When appropriate, and consistent with federal and state data privacy laws, 
82.15 	data under paragraph (a), clause (4), shall be made available for analysis at population 
82.16 	subgroup, school site, and district, regional, and statewide levels.

82.17 	Sec. 24. STUDENT SUPPORT SERVICES; TEAM STAFFING APPROACH.
 82.18 	The commissioner of education shall develop and submit to the kindergarten 
82.19 	through grade 12 education policy and finance committees of the legislature by February 
82.20 	1, 2014, recommendations for providing professional support services, including school 
82.21 	counseling, psychology, nursing, social work, and chemical dependency services, to 
82.22 	public school students throughout  Minnesota using a team staffing structure.  The 
82.23 	recommendations must reflect (i) the extent to which students need academic, career, 
82.24 	personal, social, and early-onset mental health services and (ii) the extent to which 
82.25 	such services or teams do not exist, are incomplete or inadequate given the number of 
82.26 	students implicated, or are not funded or reimbursed from nonstate sources, and where 
82.27 	caseloads for individual team members exceed established professional guidelines or 
82.28 	recommendations by more than 50 percent.

82.29 	Sec. 25. LEVY ADJUSTMENT.
 82.30 	The Department of Education must adjust the achievement and integration levy for 
82.31 	taxes payable in 2014 by the difference between the achievement and integration levy for 
82.32 	fiscal year 2014 under section 124D.862 and the amount levied by the district under Laws 
82.33 	2011, First Special Session chapter 11, article 2, section 49, paragraph (f).

83.1 	Sec. 26. APPROPRIATIONS.
 83.2 		Subdivision 1.Department. The sums indicated in this section are appropriated 
83.3 	from the general fund to the Department of Education for the fiscal years designated.
83.4 		Subd. 2.Integration aid. For integration aid under Minnesota Statutes, section 
83.5 	124D.86:

83.6		$
	17,197,000
	.....
	2014
	
83.7		$
	0
	.....
	2015
	
83.8 	The 2014 appropriation includes $17,197,000 for 2013 and $0 for 2014.
83.9 	The 2015 appropriation includes $0 for 2014 and $0 for 2015.
83.10 		Subd. 3.Achievement and integration aid. For achievement and integration aid 
83.11 	under Minnesota Statutes, section 124D.862:

83.12		$
	58,911,000
	.....
	2014
	
83.13		$
	68,623,000
	.....
	2015
	
83.14 	The 2014 appropriation includes $0 for 2013 and $58,911,000 for 2014.
83.15 	The 2015 appropriation includes $9,273,000 for 2014 and $59,350,000 for 2015.
83.16 		Subd. 4.Literacy incentive aid. For literacy incentive aid under Minnesota 
83.17 	Statutes, section 124D.98:

83.18		$
	52,514,000
	.....
	2014
	
83.19		$
	53,818,000
	.....
	2015
	
83.20 	The 2014 appropriation includes $6,607,000 for 2013 and $45,907,000 for 2014.
83.21 	The 2015 appropriation includes $7,225,000 for 2014 and $46,593,000 for 2015.
83.22 		Subd. 5.Interdistrict desegregation or integration transportation grants. For 
83.23 	interdistrict desegregation or integration transportation grants under Minnesota Statutes, 
83.24 	section 124D.87:

83.25		$
	13,968,000
	.....
	2014
	
83.26		$
	14,712,000
	.....
	2015
	
83.27 		Subd. 6.Success for the future. For American Indian success for the future grants 
83.28 	under Minnesota Statutes, section 124D.81:

83.29		$
	2,137,000
	.....
	2014
	
83.30		$
	2,137,000
	.....
	2015
	
83.31 	The 2014 appropriation includes $290,000 for 2013 and $1,847,000 for 2014.
83.32 	The 2015 appropriation includes $290,000 for 2014 and $1,847,000 for 2015.
84.1 		Subd. 7.American Indian teacher preparation grants. For joint grants to assist 
84.2 	American Indian people to become teachers under Minnesota Statutes, section 122A.63:

84.3		$
	190,000
	.....
	2014
	
84.4		$
	190,000
	.....
	2015
	
84.5 		Subd. 8.Tribal contract schools. For tribal contract school aid under Minnesota 
84.6 	Statutes, section 124D.83:

84.7		$
	2,090,000
	.....
	2014
	
84.8		$
	2,252,000
	.....
	2015
	
84.9 	The 2014 appropriation includes $266,000 for 2013 and $1,824,000 for 2014.
84.10 	The 2015 appropriation includes $285,000 for 2014 and $1,967,000 for 2015.
84.11 		Subd. 9.Early childhood programs at tribal schools. For early childhood family 
84.12 	education programs at tribal contract schools under Minnesota Statutes, section 124D.83, 
84.13 	subdivision 4:

84.14		$
	68,000
	.....
	2014
	
84.15		$
	68,000
	.....
	2015
	
84.16 		Subd. 10.Examination fees; teacher training and support programs. (a) For 
84.17 	students' advanced placement and international baccalaureate examination fees under 
84.18 	Minnesota Statutes, section 120B.13, subdivision 3, and the training and related costs 
84.19 	for teachers and other interested educators under Minnesota Statutes, section 120B.13, 
84.20 	subdivision 1:

84.21		$
	4,500,000
	.....
	2014
	
84.22		$
	4,500,000
	.....
	2015
	
84.23 	(b) The advanced placement program shall receive 75 percent of the appropriation 
84.24 	each year and the international baccalaureate program shall receive 25 percent of the 
84.25 	appropriation each year. The department, in consultation with representatives of the 
84.26 	advanced placement and international baccalaureate programs selected by the Advanced 
84.27 	Placement Advisory Council and the Minnesota Association of IB World Schools, 
84.28 	respectively, shall determine the amounts of the expenditures each year for examination 
84.29 	fees and training and support programs for each program.
84.30 	(c) Notwithstanding Minnesota Statutes, section 120B.13, subdivision 1, at least 
84.31 	$500,000 each year is for teachers to attend subject matter summer training programs 
84.32 	and follow-up support workshops approved by the advanced placement or international 
84.33 	baccalaureate programs. The amount of the subsidy for each teacher attending an 
84.34 	advanced placement or international baccalaureate summer training program or workshop 
85.1 	shall be the same. The commissioner shall determine the payment process and the amount 
85.2 	of the subsidy.
85.3 	(d) The commissioner shall pay all examination fees for all students of low-income 
85.4 	families under Minnesota Statutes, section 120B.13, subdivision 3, and to the extent 
85.5 	of available appropriations shall also pay examination fees for students sitting for an 
85.6 	advanced placement examination, international baccalaureate examination, or both.
85.7 	Any balance in the first year does not cancel but is available in the second year.
85.8 		Subd. 11.Concurrent enrollment program. For concurrent enrollment programs 
85.9 	under Minnesota Statutes, section 124D.091:

85.10		$
	2,000,000
	.....
	2014
	
85.11		$
	2,000,000
	.....
	2015
	
85.12 	If the appropriation is insufficient, the commissioner must proportionately reduce 
85.13 	the aid payment to each district.
85.14 	Any balance in the first year does not cancel but is available in the second year.
85.15 		Subd. 12.Collaborative urban educator. For the collaborative urban educator 
85.16 	grant program:

85.17		$
	776,000
	.....
	2014
	
85.18		$
	776,000
	.....
	2015
	
85.19 	$224,000 each year is for the Southeast Asian teacher program at Concordia 
85.20 	University, St. Paul; $184,000 each year is for the collaborative educator program at the 
85.21 	University of St. Thomas; $184,000 each year is for the Center for Excellence in Urban 
85.22 	Teaching at Hamline University; and $184,000 each year is for East African teacher 
85.23 	educator activities at Augsburg College.
85.24 	Any balance in the first year does not cancel but is available in the second year.
85.25 	Each institution shall prepare for the legislature, by January 15 of each year, a 
85.26 	detailed report regarding the funds used. The report must include the number of teachers 
85.27 	prepared as well as the diversity for each cohort of teachers produced.
85.28 		Subd. 13.ServeMinnesota program. For funding ServeMinnesota programs under 
85.29 	Minnesota Statutes, sections 124D.37 to 124D.45:

85.30		$
	900,000
	.....
	2014
	
85.31		$
	900,000
	.....
	2015
	
85.32 	A grantee organization may provide health and child care coverage to the dependents 
85.33 	of each participant enrolled in a full-time ServeMinnesota program to the extent such 
85.34 	coverage is not otherwise available.
86.1 		Subd. 14.Student organizations. For student organizations:

86.2		$
	725,000
	.....
	2014
	
86.3		$
	725,000
	.....
	2015
	
86.4 	$45,695 each year is for student organizations serving health occupations (HOSA).
86.5 	$42,830 each year is for student organizations serving service occupations (HERO).
86.6 	$100,130 each year is for student organizations serving trade and industry 
86.7 	occupations (Skills USA, secondary and postsecondary).
86.8 	$95,355 each year is for student organizations serving business occupations (BPA, 
86.9 	secondary and postsecondary).
86.10 	$149,790 each year is for student organizations serving agriculture occupations 
86.11 	(FFA, PAS).
86.12 	$142,150 each year is for student organizations serving family and consumer science 
86.13 	occupations (FCCLA).
86.14 	$108,725 each year is for student organizations serving marketing occupations 
86.15 	(DECA and DECA collegiate).
86.16 	$40,325 each year is for the Minnesota Foundation for Student Organizations.
86.17 	Any balance in the first year does not cancel but is available in the second year.
86.18 		Subd. 15.Early childhood literacy programs. For early childhood literacy 
86.19 	programs under Minnesota Statutes, section 119A.50, subdivision 3:

86.20		$
	4,125,000
	.....
	2014
	
86.21		$
	4,125,000
	.....
	2015
	
86.22 	Up to $4,125,000 each year is for leveraging federal and private funding to support 
86.23 	AmeriCorps members serving in the Minnesota reading corps program established by 
86.24 	ServeMinnesota, including costs associated with the training and teaching of early literacy 
86.25 	skills to children age three to grade 3 and the evaluation of the impact of the program 
86.26 	under Minnesota Statutes, sections 124D.38, subdivision 2, and 124D.42, subdivision 6.
86.27 	Any balance in the first year does not cancel but is available in the second year.
86.28 		Subd. 16.Minnesota math corps program. For the Minnesota math corps program 
86.29 	under Minnesota Statutes, section 124D.42, subdivision 9:

86.30		$
	250,000
	.....
	2014
	
86.31		$
	250,000
	.....
	2015
	
86.32 	Any unexpended balance in the first year does not cancel but is available in the 
86.33 	second year.
87.1 		Subd. 17.Minnesota Principals' Academy. For a grant to the University of 
87.2 	Minnesota, College of Education and Human Development, for the operation of the 
87.3 	Minnesota Principals' Academy:

87.4		$
	235,000
	.....
	2014
	
87.5		$
	215,000
	.....
	2015
	
87.6 	Any balance in the first year does not cancel but is available in the second year. The 
87.7 	base appropriation for this program for fiscal year 2016 and later is $250,000.
87.8 		Subd. 18.Regional centers of excellence. For regional centers of excellence under 
87.9 	Minnesota Statutes, section 126C.101, subdivision 4:

87.10		$
	1,500,000
	.....
	2014
	
87.11		$
	3,000,000
	.....
	2015
	
87.12 	The base for the regional centers of excellence in fiscal years 2016 and 2017 is 
87.13 	$4,500,000 each year.
87.14 		Subd. 19.School Climate Center. For the School Climate Center under Minnesota 
87.15 	Statutes, section 127A.052:

87.16		$
	500,000
	.....
	2014
	
87.17		$
	500,000
	.....
	2015
	
87.18 		Subd. 20.Site decision-making grant program. For site decision-making grants 
87.19 	under Minnesota Statutes, section 123B.04, subdivision 2, paragraph (f):

87.20		$
	200,000
	.....
	2014
	
87.21 	An education site having a written achievement contract under Minnesota Statutes, 
87.22 	section 123B.04, subdivision 4, agreed to by the school board and the education site, 
87.23 	may apply to the commissioner of education for a two-year grant not to exceed $10 per 
87.24 	resident pupil unit at the site in the 2012-2013 school year. Each participating education 
87.25 	site and its school board that are the parties to the achievement contract must report 
87.26 	annually to the commissioner, in the form and manner determined by the commissioner, 
87.27 	on the progress and success of the education site in achieving student or contract goals 
87.28 	or other performance expectations or measures contained in the achievement contract. 
87.29 	The commissioner must include the substance and an analysis of these reports in the 
87.30 	next statewide report under Minnesota Statutes, section 123B.04, subdivision 5, clause 
87.31 	(3), evaluating the effectiveness of site management agreements in redesigning learning 
87.32 	programs and broadening the definition of student achievement. Any unexpended funds 
87.33 	do not cancel but are available in fiscal year 2015.

88.1 	ARTICLE 4
88.2 	CHARTER SCHOOLS

88.3 	Section 1. Minnesota Statutes 2012, section 124D.10, is amended to read:
88.4 	124D.10 CHARTER SCHOOLS.
88.5 		Subdivision 1.Purposes. (a) The primary purpose of this section is to:
88.6 	(1) improve pupil learning and student achievement;. Additional purposes include to:
88.7 	(2) (1) increase learning opportunities for pupils;
88.8 	(3) (2) encourage the use of different and innovative teaching methods;
88.9 	(4) (3) measure learning outcomes and create different and innovative forms of 
88.10 	measuring outcomes;
88.11 	(5) (4) establish new forms of accountability for schools; and or
88.12 	(6) (5) create new professional opportunities for teachers, including the opportunity 
88.13 	to be responsible for the learning program at the school site.
88.14 	(b) This section does not provide a means to keep open a school that a school board 
88.15 	decides to close. However, a school board may endorse or authorize the establishing of 
88.16 	a charter school to replace the school the board decided to close. Applicants seeking a 
88.17 	charter under this circumstance must demonstrate to the authorizer that the charter sought 
88.18 	is substantially different in purpose and program from the school the board closed and 
88.19 	that the proposed charter satisfies the requirements of this subdivision. If the school 
88.20 	board that closed the school authorizes the charter, it must document in its affidavit to the 
88.21 	commissioner that the charter is substantially different in program and purpose from 
88.22 	the school it closed.
88.23 	An authorizer shall not approve an application submitted by a charter school 
88.24 	developer under subdivision 4, paragraph (a), if the application does not comply with this 
88.25 	subdivision. The commissioner shall not approve an affidavit submitted by an authorizer 
88.26 	under subdivision 4, paragraph (b), if the affidavit does not comply with this subdivision.
88.27 		Subd. 2.Applicability. This section applies only to charter schools formed and 
88.28 	operated under this section.
88.29 		Subd. 3.Authorizer. (a) For purposes of this section, the terms defined in this 
88.30 	subdivision have the meanings given them.
88.31 	"Application" to receive approval as an authorizer means the proposal an eligible 
88.32 	authorizer submits to the commissioner under paragraph (c) before that authorizer is able 
88.33 	to submit any affidavit to charter to a school.
88.34 	"Application" under subdivision 4 means the charter school business plan a 
88.35 	school developer submits to an authorizer for approval to establish a charter school that 
89.1 	documents the school developer's mission statement, school purposes, program design, 
89.2 	financial plan, governance and management structure, and background and experience, 
89.3 	plus any other information the authorizer requests. The application also shall include a 
89.4 	"statement of assurances" of legal compliance prescribed by the commissioner.
89.5 	"Affidavit" means a written statement the authorizer submits to the commissioner 
89.6 	for approval to establish a charter school under subdivision 4 attesting to its review and 
89.7 	approval process before chartering a school.
89.8 	(b) The following organizations may authorize one or more charter schools:
89.9 	(1) a school board, intermediate school district school board, or education district 
89.10 	organized under sections 123A.15 to 123A.19;
89.11 	(2) a charitable organization under section 501(c)(3) of the Internal Revenue Code 
89.12 	of 1986, excluding a nonpublic sectarian or religious institution; any person other than a 
89.13 	natural person that directly or indirectly, through one or more intermediaries, controls, 
89.14 	is controlled by, or is under common control with the nonpublic sectarian or religious 
89.15 	institution; and any other charitable organization under this clause that in the federal IRS 
89.16 	Form 1023, Part IV, describes activities indicating a religious purpose, that:
89.17 	(i) is a member of the Minnesota Council of Nonprofits or the Minnesota Council on 
89.18 	Foundations;
89.19 	(ii) is registered with the attorney general's office; and
89.20 	(iii) is incorporated in the state of Minnesota and has been operating continuously 
89.21 	for at least five years but does not operate a charter school;
89.22 	(3) a Minnesota private college, notwithstanding clause (2), that grants two- or 
89.23 	four-year degrees and is registered with the Minnesota Office of Higher Education under 
89.24 	chapter 136A; community college, state university, or technical college governed by the 
89.25 	Board of Trustees of the Minnesota State Colleges and Universities; or the University 
89.26 	of Minnesota;
89.27 	(4) a nonprofit corporation subject to chapter 317A, described in section 317A.905, 
89.28 	and exempt from federal income tax under section 501(c)(6) of the Internal Revenue Code 
89.29 	of 1986, may authorize one or more charter schools if the charter school has operated 
89.30 	for at least three years under a different authorizer and if the nonprofit corporation has 
89.31 	existed for at least 25 years; or
89.32 	(5) single-purpose authorizers that are charitable, nonsectarian organizations formed 
89.33 	under section 501(c)(3) of the Internal Revenue Code of 1986 and incorporated in the 
89.34 	state of Minnesota under chapter 317A as a corporation with no members whose sole 
89.35 	purpose is to charter schools. Eligible organizations interested in being approved as an 
89.36 	authorizer under this paragraph must submit a proposal to the commissioner that includes 
90.1 	the provisions of paragraph (c) and a five-year financial plan. Such authorizers shall 
90.2 	consider and approve charter school applications using the criteria provided in subdivision 
90.3 	4 and shall not limit the applications it solicits, considers, or approves to any single 
90.4 	curriculum, learning program, or method.
90.5 	(c) An eligible authorizer under this subdivision must apply to the commissioner for 
90.6 	approval as an authorizer before submitting any affidavit to the commissioner to charter 
90.7 	a school. The application for approval as a charter school authorizer must demonstrate 
90.8 	the applicant's ability to implement the procedures and satisfy the criteria for chartering a 
90.9 	school under this section. The commissioner must approve or disapprove an application 
90.10 	within 45 business days of the application deadline. If the commissioner disapproves 
90.11 	the application, the commissioner must notify the applicant of the specific deficiencies 
90.12 	in writing and the applicant then has 20 business days to address the deficiencies to the 
90.13 	commissioner's satisfaction. After the 20 business days expire, the commissioner has 15 
90.14 	business days to make a final decision to approve or disapprove the application. Failing to 
90.15 	address the deficiencies to the commissioner's satisfaction makes an applicant ineligible to 
90.16 	be an authorizer. The commissioner, in establishing criteria for approval, must consider 
90.17 	the applicant's:
90.18 	(1) capacity and infrastructure;
90.19 	(2) application criteria and process;
90.20 	(3) contracting process;
90.21 	(4) ongoing oversight and evaluation processes; and
90.22 	(5) renewal criteria and processes.
90.23 	(d) An applicant must include in its application to the commissioner to be an 
90.24 	approved authorizer at least the following:
90.25 	(1) how chartering schools is a way for the organization to carry out its mission;
90.26 	(2) a description of the capacity of the organization to serve as an authorizer, 
90.27 	including the personnel who will perform the authorizing duties, their qualifications, the 
90.28 	amount of time they will be assigned to this responsibility, and the financial resources 
90.29 	allocated by the organization to this responsibility;
90.30 	(3) a description of the application and review process the authorizer will use to 
90.31 	make decisions regarding the granting of charters;
90.32 	(4) a description of the type of contract it will arrange with the schools it charters 
90.33 	that meets the provisions of subdivision 6;
90.34 	(5) the process to be used for providing ongoing oversight of the school consistent 
90.35 	with the contract expectations specified in clause (4) that assures that the schools chartered 
90.36 	are complying with both the provisions of applicable law and rules, and with the contract;
91.1 	(6) a description of the criteria and process the authorizer will use to grant expanded 
91.2 	applications under subdivision 4, paragraph (j);
91.3 	(7) the process for making decisions regarding the renewal or termination of 
91.4 	the school's charter based on evidence that demonstrates the academic, organizational, 
91.5 	and financial competency of the school, including its success in increasing student 
91.6 	achievement and meeting the goals of the charter school agreement; and
91.7 	(8) an assurance specifying that the organization is committed to serving as an 
91.8 	authorizer for the full five-year term.
91.9 	(e) A disapproved applicant under this section may resubmit an application during a 
91.10 	future application period.
91.11 	(f) If the governing board of an approved authorizer votes to withdraw as an 
91.12 	approved authorizer for a reason unrelated to any cause under subdivision 23, the 
91.13 	authorizer must notify all its chartered schools and the commissioner in writing by July 
91.14 	15 of its intent to withdraw as an authorizer on June 30 in the next calendar year. The 
91.15 	commissioner may approve the transfer of a charter school to a new authorizer under this 
91.16 	paragraph after the new authorizer submits an affidavit to the commissioner.
91.17 	(g) The authorizer must participate in department-approved training.
91.18 	(h) An authorizer that chartered a school before August 1, 2009, must apply by 
91.19 	June 30, 2012, to the commissioner for approval, under paragraph (c), to continue as an 
91.20 	authorizer under this section. For purposes of this paragraph, an authorizer that fails to 
91.21 	submit a timely application is ineligible to charter a school.
91.22 	(i) (h) The commissioner shall review an authorizer's performance every five years 
91.23 	in a manner and form determined by the commissioner and may review an authorizer's 
91.24 	performance more frequently at the commissioner's own initiative or at the request of a 
91.25 	charter school operator, charter school board member, or other interested party. The 
91.26 	commissioner, after completing the review, shall transmit a report with findings to the 
91.27 	authorizer. If, consistent with this section, the commissioner finds that an authorizer has 
91.28 	not fulfilled the requirements of this section, the commissioner may subject the authorizer 
91.29 	to corrective action, which may include terminating the contract with the charter school 
91.30 	board of directors of a school it chartered. The commissioner must notify the authorizer 
91.31 	in writing of any findings that may subject the authorizer to corrective action and 
91.32 	the authorizer then has 15 business days to request an informal hearing before the 
91.33 	commissioner takes corrective action. If the commissioner terminates a contract between 
91.34 	an authorizer and a charter school under this paragraph, the commissioner may assist the 
91.35 	charter school in acquiring a new authorizer.
92.1 	(j) (i) The commissioner may at any time take corrective action against an authorizer, 
92.2 	including terminating an authorizer's ability to charter a school for:
92.3 	(1) failing to demonstrate the criteria under paragraph (c) under which the 
92.4 	commissioner approved the authorizer;
92.5 	(2) violating a term of the chartering contract between the authorizer and the charter 
92.6 	school board of directors;
92.7 	(3) unsatisfactory performance as an approved authorizer; or
92.8 	(4) any good cause shown that provides the commissioner a legally sufficient reason 
92.9 	to take corrective action against an authorizer.
92.10 		Subd. 4.Formation of school. (a) An authorizer, after receiving an application from 
92.11 	a school developer, may charter a licensed teacher under section 122A.18, subdivision 
92.12 	1, or a group of individuals that includes one or more licensed teachers under section 
92.13 	122A.18, subdivision 1, to operate a school subject to the commissioner's approval of the 
92.14 	authorizer's affidavit under paragraph (b). The school must be organized and operated as a 
92.15 	nonprofit corporation under chapter 317A and the provisions under the applicable chapter 
92.16 	shall apply to the school except as provided in this section.
92.17 	Notwithstanding sections 465.717 and 465.719, a school district, subject to this 
92.18 	section and section 124D.11, may create a corporation for the purpose of establishing a 
92.19 	charter school.
92.20 	(b) Before the operators may establish and operate a school, the authorizer must file 
92.21 	an affidavit with the commissioner stating its intent to charter a school. An authorizer 
92.22 	must file a separate affidavit for each school it intends to charter. The affidavit must state 
92.23 	the terms and conditions under which the authorizer would charter a school and how the 
92.24 	authorizer intends to oversee the fiscal and student performance of the charter school and to 
92.25 	comply with the terms of the written contract between the authorizer and the charter school 
92.26 	board of directors under subdivision 6. The commissioner must approve or disapprove the 
92.27 	authorizer's affidavit within 60 business days of receipt of the affidavit. If the commissioner 
92.28 	disapproves the affidavit, the commissioner shall notify the authorizer of the deficiencies 
92.29 	in the affidavit and the authorizer then has 20 business days to address the deficiencies. 
92.30 	If the authorizer does not address deficiencies to the commissioner's satisfaction, the 
92.31 	commissioner's disapproval is final. Failure to obtain commissioner approval precludes an 
92.32 	authorizer from chartering the school that is the subject of this affidavit.
92.33 	(c) The authorizer may prevent an approved charter school from opening for 
92.34 	operation if, among other grounds, the charter school violates this section or does not meet 
92.35 	the ready-to-open standards that are part of the authorizer's oversight and evaluation 
92.36 	process or are stipulated in the charter school contract.
93.1 	(d) The operators authorized to organize and operate a school, before entering into 
93.2 	a contract or other agreement for professional or other services, goods, or facilities, 
93.3 	must incorporate as a nonprofit corporation under chapter 317A and must establish a 
93.4 	board of directors composed of at least five members who are not related parties until a 
93.5 	timely election for members of the ongoing charter school board of directors is held 
93.6 	according to the school's articles and bylaws under paragraph (f). A charter school board 
93.7 	of directors must be composed of at least five members who are not related parties. 
93.8 	Staff members employed at the school, including teachers providing instruction under a 
93.9 	contract with a cooperative, members of the board of directors, and all parents or legal 
93.10 	guardians of children enrolled in the school are the voters eligible to elect the members 
93.11 	of the school's board of directors. A charter school must notify eligible voters of the 
93.12 	school board election dates at least 30 days before the election. Board of director meetings 
93.13 	must comply with chapter 13D.
93.14 	(e) A charter school shall publish and maintain on the school's official Web site: (1) 
93.15 	the minutes of meetings of the board of directors, and of members and committees having 
93.16 	any board-delegated authority, for at least one calendar year from the date of publication; 
93.17 	(2) directory information for members of the board of directors and committees having 
93.18 	board-delegated authority; and (3) identifying and contact information for the school's 
93.19 	authorizer. Identifying and contact information for the school's authorizer must be 
93.20 	included in other school materials made available to the public. Upon request of an 
93.21 	individual, the charter school must also make available in a timely fashion financial 
93.22 	statements showing all operations and transactions affecting income, surplus, and deficit 
93.23 	during the school's last annual accounting period; and a balance sheet summarizing assets 
93.24 	and liabilities on the closing date of the accounting period. A charter school also must post 
93.25 	on its official Web site information identifying its authorizer and indicate how to contact 
93.26 	that authorizer and include that same information about its authorizer in other school 
93.27 	materials that it makes available to the public.
93.28 	(f) Every charter school board member shall attend ongoing annual training 
93.29 	throughout the member's term on the board governance, including. All new board 
93.30 	members shall attend initial training on the board's role and responsibilities, employment 
93.31 	policies and practices, and financial management. A new board member who does not 
93.32 	begin the required initial training within six months after being seated and complete that 
93.33 	training within 12 months of being seated on the board is automatically ineligible to 
93.34 	continue to serve as a board member. The school shall include in its annual report the 
93.35 	training attended by each board member during the previous year.
94.1 	(g) The ongoing board must be elected before the school completes its third year of 
94.2 	operation. Board elections must be held during the school year but may not be conducted 
94.3 	on days when the school is closed for holidays, breaks, or vacations. The charter school 
94.4 	board of directors shall be composed of at least five nonrelated members and include: (i) 
94.5 	at least one licensed teacher employed as a teacher at the school or a licensed teacher
94.6 	 providing instruction under contract between the charter school and a cooperative; (ii) the
94.7 	at least one parent or legal guardian of a student enrolled in the charter school who is not an 
94.8 	employee of the charter school; and (iii) an at least one interested community member who
94.9 	 resides in Minnesota and is not employed by the charter school and does not have a child 
94.10 	enrolled in the school. The board may be a teacher majority board composed may include 
94.11 	a majority  of teachers, parents, or community members as described in this paragraph or it 
94.12 	may have no clear majority. The chief financial officer and the chief administrator may only 
94.13 	serve as ex-officio nonvoting board members and may not serve as a voting member of the 
94.14 	board. No charter school employees shall not serve on the board unless other than teachers 
94.15 	under item (i) applies. Contractors providing facilities, goods, or services to a charter 
94.16 	school shall not serve on the board of directors of the charter school. Board bylaws shall 
94.17 	outline the process and procedures for changing the board's governance model structure, 
94.18 	consistent with chapter 317A. A board may change its governance model structure only:
94.19 	(1) by a majority vote of the board of directors and a majority vote of the licensed 
94.20 	teachers employed by the school as teachers, including licensed teachers providing 
94.21 	instruction under a contract between the school and a cooperative; and
94.22 	(2) with the authorizer's approval.
94.23 	Any change in board governance structure must conform with the composition of 
94.24 	the board structure established under this paragraph.
94.25 	(h) The granting or renewal of a charter by an authorizer must not be conditioned 
94.26 	upon the bargaining unit status of the employees of the school.
94.27 	(i) The granting or renewal of a charter school by an authorizer must not be 
94.28 	contingent on the charter school being required to contract, lease, or purchase services 
94.29 	or facilities from the authorizer or to enter into a contract with a corporation, contractor, 
94.30 	or individual with which the authorizer has a financial relationship or arrangement. Any 
94.31 	potential contract, lease, or purchase of service from an authorizer must be disclosed to 
94.32 	the commissioner, accepted through an open bidding process, and be a separate contract 
94.33 	from the charter contract. The school must document the open bidding process it used in 
94.34 	awarding the contract. The authorizer must document that the bid terms were competitive 
94.35 	in relation to the market and that the authorizer makes the same terms available to 
94.36 	schools that it does not authorize. An authorizer must not enter into a contract to provide 
95.1 	management and financial services for a school that it authorizes, unless the school 
95.2 	documents that it received at least two competitive bids.
95.3 	(j) An authorizer may permit the board of directors of a charter school to expand 
95.4 	the operation of the charter school to additional sites or to add additional grades at the 
95.5 	school beyond those described in the authorizer's original affidavit as approved by 
95.6 	the commissioner only after submitting a supplemental affidavit for approval to the 
95.7 	commissioner in a form and manner prescribed by the commissioner. The supplemental 
95.8 	affidavit must document that:
95.9 	(1) the proposed expansion plan demonstrates need and projected enrollment;
95.10 	(2) the expansion is warranted, at a minimum, by longitudinal data demonstrating 
95.11 	students' improved academic performance and growth on statewide assessments under 
95.12 	chapter 120B;
95.13 	(3) the charter school is financially sound and the financing it needs to implement 
95.14 	the proposed expansion exists; and
95.15 	(4) the charter school has the governance structure and management capacity to 
95.16 	carry out its expansion.
95.17 	(k) The commissioner shall have 30 business days to review and comment on the 
95.18 	supplemental affidavit. The commissioner shall notify the authorizer of any deficiencies in 
95.19 	the supplemental affidavit and the authorizer then has 20 business days to address, to the 
95.20 	commissioner's satisfaction, any deficiencies in the supplemental affidavit. The school 
95.21 	may not expand grades or add sites until the commissioner has approved the supplemental 
95.22 	affidavit. The commissioner's approval or disapproval of a supplemental affidavit is final.
95.23 		Subd. 4a.Conflict of interest. (a) An individual is prohibited from serving as a 
95.24 	member of the charter school board of directors if the individual, an immediate family 
95.25 	member, or the individual's partner is an a full or part owner, employee or agent of, or 
95.26 	a contractor principal with a for-profit or nonprofit entity or individual independent 
95.27 	contractor with whom the charter school contracts, directly or indirectly, for professional 
95.28 	services, goods, or facilities. An individual is prohibited from serving as a board member 
95.29 	if an immediate family member is an employee of the school or is an individual with 
95.30 	whom the school contracts, directly or indirectly, through full or part ownership, for 
95.31 	professional services, goods, or facilities. A violation of this prohibition renders a contract 
95.32 	voidable at the option of the commissioner or the charter school board of directors. A 
95.33 	member of a charter school board of directors who violates this prohibition is individually 
95.34 	liable to the charter school for any damage caused by the violation.
96.1 	(b) No member of the board of directors, employee, officer, or agent of a charter 
96.2 	school shall participate in selecting, awarding, or administering a contract if a conflict 
96.3 	of interest exists. A conflict exists when:
96.4 	(1) the board member, employee, officer, or agent;
96.5 	(2) the immediate family of the board member, employee, officer, or agent;
96.6 	(3) the partner of the board member, employee, officer, or agent; or
96.7 	(4) an organization that employs, or is about to employ any individual in clauses 
96.8 	(1) to (3),
96.9 	has a financial or other interest in the entity with which the charter school is contracting. 
96.10 	A violation of this prohibition renders the contract void.
96.11 	(c) Any employee, agent, or board member of the authorizer who participates 
96.12 	in the initial review, approval, ongoing oversight, evaluation, or the charter renewal or 
96.13 	nonrenewal process or decision is ineligible to serve on the board of directors of a school 
96.14 	chartered by that authorizer.
96.15 	(d) An individual may serve as a member of the board of directors if no conflict of 
96.16 	interest under paragraph (a) exists.
96.17 	(e) The conflict of interest provisions under this subdivision do not apply to 
96.18 	compensation paid to a teacher employed as a teacher by the charter school who or a 
96.19 	teacher who provides instructional services to the charter school through a cooperative 
96.20 	formed under chapter 308A when the teacher also serves as a member of on the charter 
96.21 	school board of directors.
96.22 	(f) The conflict of interest provisions under this subdivision do not apply to a teacher 
96.23 	who provides services to a charter school through a cooperative formed under chapter 
96.24 	308A when the teacher also serves on the charter school board of directors.
96.25 		Subd. 5.Conversion of existing schools. A board of an independent or special 
96.26 	school district may convert one or more of its existing schools to charter schools under 
96.27 	this section if 60 percent of the full-time teachers at the school sign a petition seeking 
96.28 	conversion. The conversion must occur at the beginning of an academic year.
96.29 		Subd. 6.Charter contract. The authorization for a charter school must be in the 
96.30 	form of a written contract signed by the authorizer and the board of directors of the charter 
96.31 	school. The contract must be completed within 45 business days of the commissioner's 
96.32 	approval of the authorizer's affidavit. The authorizer shall submit to the commissioner a 
96.33 	copy of the signed charter contract within ten business days of its execution. The contract 
96.34 	for a charter school must be in writing and contain at least the following:
96.35 	(1) a declaration that the charter school will carry out the primary purpose in 
96.36 	subdivision 1 and how the school will report its implementation of the primary purpose;
97.1 	(1) (2) a declaration of the additional purposes in subdivision 1 that the school 
97.2 	intends to carry out and how the school will report its implementation of those purposes;
97.3 	(2) (3) a description of the school program and the specific academic and 
97.4 	nonacademic outcomes that pupils must achieve;
97.5 	(3) (4) a statement of admission policies and procedures;
97.6 	(4) (5) a governance, management, and administration plan for the school;
97.7 	(5) (6) signed agreements from charter school board members to comply with all 
97.8 	federal and state laws governing organizational, programmatic, and financial requirements 
97.9 	applicable to charter schools;
97.10 	(6) (7) the criteria, processes, and procedures that the authorizer will use for 
97.11 	ongoing oversight of operational, financial, and academic performance to monitor and 
97.12 	evaluate the fiscal, operational, and academic performance consistent with subdivision 
97.13 	15, paragraphs (a) and (b);
97.14 	(7) (8) for contract renewal, the formal written performance evaluation of the school 
97.15 	that is a prerequisite for reviewing a charter contract under subdivision 15;
97.16 	(8) (9) types and amounts of insurance liability coverage to be obtained by the 
97.17 	charter school, consistent with subdivision 8, paragraph (k);
97.18 	(9) (10) consistent with subdivision 25, paragraph (d), a provision to indemnify and 
97.19 	hold harmless the authorizer and its officers, agents, and employees from any suit, claim, 
97.20 	or liability arising from any operation of the charter school, and the commissioner and 
97.21 	department officers, agents, and employees notwithstanding section 3.736;
97.22 	(10) (11) the term of the initial contract, which may be up to five years plus an 
97.23 	additional preoperational planning year, and up to five years for a renewed contract or a 
97.24 	contract with a new authorizer after a transfer of authorizers, if warranted by the school's 
97.25 	academic, financial, and operational performance;
97.26 	(11) (12) how the board of directors or the operators of the charter school will 
97.27 	provide special instruction and services for children with a disability under sections 
97.28 	125A.03 to 125A.24, and 125A.65, a description of the financial parameters within 
97.29 	which the charter school will operate to provide the special instruction and services to 
97.30 	children with a disability;
97.31 	(12) the process and criteria the authorizer intends to use to monitor and evaluate the 
97.32 	fiscal and student performance of the charter school, consistent with subdivision 15; and
97.33 	(13) the specific conditions for contract renewal, which identify performance under 
97.34 	the primary purpose of subdivision 1 as the most important factor in determining contract 
97.35 	renewal; and
98.1 	(13) (14) the plan for an orderly closing of the school under chapter 317A, if
98.2 	 whether the closure is a termination for cause, a voluntary termination, or a nonrenewal 
98.3 	of the contract, and that includes establishing the responsibilities of the school board of 
98.4 	directors and the authorizer and notifying the commissioner, authorizer, school district in 
98.5 	which the charter school is located, and parents of enrolled students about the closure, 
98.6 	the transfer of student records to students' resident districts, and procedures for closing 
98.7 	financial operations.
98.8 		Subd. 6a.Audit report. (a) The charter school must submit an audit report to the 
98.9 	commissioner and its authorizer by December 31 each year.
98.10 	(b) The charter school, with the assistance of the auditor conducting the audit, 
98.11 	must include with the report, as supplemental information, a copy of all charter school 
98.12 	agreements for corporate management services, including parent company or other 
98.13 	administrative, financial, and staffing services. If the entity that provides the professional 
98.14 	services to the charter school is exempt from taxation under section 501 of the Internal 
98.15 	Revenue Code of 1986, that entity must file with the commissioner by February 15 a copy 
98.16 	of the annual return required under section 6033 of the Internal Revenue Code of 1986.
98.17 	(c) A charter school independent audit report shall include audited financial data of 
98.18 	an affiliated building corporation or other component unit.
98.19 	(c) (d) If the audit report finds that a material weakness exists in the financial 
98.20 	reporting systems of a charter school, the charter school must submit a written report to 
98.21 	the commissioner explaining how the material weakness will be resolved. An auditor, 
98.22 	as a condition of providing financial services to a charter school, must agree to make 
98.23 	available information about a charter school's financial audit to the commissioner and 
98.24 	authorizer upon request.
98.25 		Subd. 7.Public status; exemption from statutes and rules. A charter school is 
98.26 	a public school and is part of the state's system of public education. A charter school is 
98.27 	exempt from all statutes and rules applicable to a school, school board, or school district 
98.28 	unless a statute or rule is made specifically applicable to a charter school or is included 
98.29 	in this section.
98.30 		Subd. 8.Federal, state, and local requirements. (a) A charter school shall meet all 
98.31 	federal, state, and local health and safety requirements applicable to school districts.
98.32 	(b) A school must comply with statewide accountability requirements governing 
98.33 	standards and assessments in chapter 120B.
98.34 	(c) A school authorized by a school board may be located in any district, unless the 
98.35 	school board of the district of the proposed location disapproves by written resolution.
99.1 	(d) A charter school must be nonsectarian in its programs, admission policies, 
99.2 	employment practices, and all other operations. An authorizer may not authorize a charter 
99.3 	school or program that is affiliated with a nonpublic sectarian school or a religious 
99.4 	institution. A charter school student must be released for religious instruction, consistent 
99.5 	with section 120A.22, subdivision 12, clause (3).
99.6 	(e) Charter schools must not be used as a method of providing education or 
99.7 	generating revenue for students who are being home-schooled. This paragraph does not 
99.8 	apply to shared time aid under section 126C.19.
99.9 	(f) The primary focus of a charter school must be to provide a comprehensive 
99.10 	program of instruction for at least one grade or age group from five through 18 years 
99.11 	of age. Instruction may be provided to people younger than five years and older than 
99.12 	18 years of age.
99.13 	(g) A charter school may not charge tuition.
99.14 	(h) A charter school is subject to and must comply with chapter 363A and section 
99.15 	121A.04.
99.16 	(i) A charter school is subject to and must comply with the Pupil Fair Dismissal 
99.17 	Act, sections 121A.40 to 121A.56, and the Minnesota Public School Fee Law, sections 
99.18 	123B.34 to 123B.39.
99.19 	(j) A charter school is subject to the same financial audits, audit procedures, and 
99.20 	audit requirements as a district, except as required under subdivision 6a. Audits must be 
99.21 	conducted in compliance with generally accepted governmental auditing standards, the 
99.22 	federal Single Audit Act, if applicable, and section 6.65. A charter school is subject 
99.23 	to and must comply with sections 15.054; 118A.01; 118A.02; 118A.03; 118A.04; 
99.24 	118A.05; 118A.06; 471.38; 471.391; 471.392; and 471.425. The audit must comply with 
99.25 	the requirements of sections 123B.75 to 123B.83, except to the extent deviations are 
99.26 	necessary because of the program at the school. Deviations must be approved by the 
99.27 	commissioner and authorizer. The Department of Education, state auditor, legislative 
99.28 	auditor, or authorizer may conduct financial, program, or compliance audits. A charter 
99.29 	school determined to be in statutory operating debt under sections 123B.81 to 123B.83
99.30 	must submit a plan under section 123B.81, subdivision 4.
99.31 	(k) A charter school is a district for the purposes of tort liability under chapter 466.
99.32 	(l) A charter school must comply with chapters 13 and 13D; and sections 120A.22, 
99.33 	subdivision 7; 121A.75; and 260B.171, subdivisions 3 and 5.
99.34 	(m) A charter school is subject to the Pledge of Allegiance requirement under 
99.35 	section 121A.11, subdivision 3.
100.1 	(n) A charter school offering online courses or programs must comply with section 
100.2 	124D.095.
100.3 	(o) A charter school and charter school board of directors are subject to chapter 181.
100.4 	(p) A charter school must comply with section 120A.22, subdivision 7, governing 
100.5 	the transfer of students' educational records and sections 138.163 and 138.17 governing 
100.6 	the management of local records.
100.7 	(q) A charter school that provides early childhood health and developmental 
100.8 	screening must comply with sections 121A.16 to 121A.19.
100.9 	(r) A charter school that provides school-sponsored youth athletic activities must 
100.10 	comply with section 121A.38.
100.11 	(s) A charter school is subject to and must comply with continuing truant notification 
100.12 	under section 260A.03.
100.13 	(t) A charter school must develop and implement a teacher evaluation and peer 
100.14 	review process, consistent with section 122A.40, subdivision 8, paragraph (b), and 
100.15 	subdivision 21, paragraph (b), of this section.
100.16 	(u) A charter school is subject to and must comply with the same requirements as 
100.17 	a school district under section 126C.101.
100.18 		Subd. 8a.Aid reduction. The commissioner may reduce a charter school's state aid 
100.19 	under section 127A.42 or 127A.43 if the charter school board fails to correct a violation 
100.20 	under this section.
100.21 		Subd. 8b.Aid reduction for violations. The commissioner may reduce a charter 
100.22 	school's state aid by an amount not to exceed 60 percent of the charter school's basic 
100.23 	revenue for the period of time that a violation of law occurs.
100.24 		Subd. 9.Admission requirements. (a) A charter school may limit admission to:
100.25 	(1) pupils within an age group or grade level;
100.26 	(2) pupils who are eligible to participate in the graduation incentives program under 
100.27 	section 124D.68; or
100.28 	(3) residents of a specific geographic area in which the school is located when the 
100.29 	majority of students served by the school are members of underserved populations.
100.30 	(b) A charter school shall enroll an eligible pupil who submits a timely application, 
100.31 	unless the number of applications exceeds the capacity of a program, class, grade level, or 
100.32 	building. In this case, pupils must be accepted by lot. The charter school must develop 
100.33 	and publish, including on its Web site, a lottery policy and process that it must use when 
100.34 	accepting pupils by lot.
101.1 	(c) A charter school shall give enrollment preference to a sibling of an enrolled pupil 
101.2 	and to a foster child of that pupil's parents and may give preference for enrolling children 
101.3 	of the school's staff before accepting other pupils by lot.
101.4 	(d) A person shall not be admitted to a charter school: (1) as a kindergarten pupil, 
101.5 	unless the pupil is at least five years of age on September 1 of the calendar year in which 
101.6 	the school year for which the pupil seeks admission commences; or (2) as a first grade 
101.7 	student, unless the pupil is at least six years of age on September 1 of the calendar year in 
101.8 	which the school year for which the pupil seeks admission commences or has completed 
101.9 	kindergarten; except that a charter school may establish and publish on its Web site a 
101.10 	policy for admission of selected pupils at an earlier age, consistent with the enrollment 
101.11 	process in paragraphs (b) and (c) and section 124D.02, subdivision 1.
101.12 	(e) Except as permitted in paragraph (d), a charter school may not limit admission 
101.13 	to pupils on the basis of intellectual ability, measures of achievement or aptitude, or 
101.14 	athletic ability and may not establish any criteria or requirements for admission that are 
101.15 	inconsistent with this subdivision.
101.16 	(f) The charter school shall not distribute any services or goods of value to students, 
101.17 	parents, or guardians as an inducement, term, or condition of enrolling a student in a 
101.18 	charter school.
101.19 		Subd. 10.Pupil performance. A charter school must design its programs to at 
101.20 	least meet the outcomes adopted by the commissioner for public school students. In 
101.21 	the absence of the commissioner's requirements, the school must meet the outcomes 
101.22 	contained in the contract with the authorizer. The achievement levels of the outcomes 
101.23 	contained in the contract may exceed the achievement levels of any outcomes adopted by 
101.24 	the commissioner for public school students.
101.25 		Subd. 11.Employment and other operating matters. (a) A charter school must 
101.26 	employ or contract with necessary teachers, as defined by section 122A.15, subdivision 1, 
101.27 	who hold valid licenses to perform the particular service for which they are employed in 
101.28 	the school. The charter school's state aid may be reduced under section 127A.43 if the 
101.29 	school employs a teacher who is not appropriately licensed or approved by the board of 
101.30 	teaching. The school may employ necessary employees who are not required to hold 
101.31 	teaching licenses to perform duties other than teaching and may contract for other services. 
101.32 	The school may discharge teachers and nonlicensed employees. The charter school board 
101.33 	is subject to section 181.932. When offering employment to a prospective employee, a 
101.34 	charter school must give that employee a written description of the terms and conditions 
101.35 	of employment and the school's personnel policies.
102.1 	(b) A person, without holding a valid administrator's license, may perform 
102.2 	administrative, supervisory, or instructional leadership duties. The board of directors shall 
102.3 	establish qualifications for persons that hold administrative, supervisory, or instructional 
102.4 	leadership roles. The qualifications shall include at least the following areas: instruction 
102.5 	and assessment; human resource and personnel management; financial management; 
102.6 	legal and compliance management; effective communication; and board, authorizer, and 
102.7 	community relationships. The board of directors shall use those qualifications as the basis 
102.8 	for job descriptions, hiring, and performance evaluations of those who hold administrative, 
102.9 	supervisory, or instructional leadership roles. The board of directors and an individual 
102.10 	who does not hold a valid administrative license and who serves in an administrative, 
102.11 	supervisory, or instructional leadership position shall develop a professional development 
102.12 	plan. Documentation of the implementation of the professional development plan of these 
102.13 	persons shall be included in the school's annual report.
102.14 	(c) The board of directors also shall decide and be responsible for policy matters 
102.15 	related to the operation of the school, including budgeting, curriculum programming, 
102.16 	personnel,  and operating procedures. The board shall adopt a policy on nepotism in 
102.17 	employment. The board shall adopt personnel evaluation policies and practices that, 
102.18 	at a minimum:
102.19 	(1) carry out the school's mission and goals;
102.20 	(2) evaluate the execution of charter contract goals and commitments;
102.21 	(3) evaluate student achievement, postsecondary and workforce readiness, and 
102.22 	engagement goals; and
102.23 	(4) provide professional development related to the individual's job responsibilities.
102.24 		Subd. 12.Pupils with a disability. A charter school must comply with sections 
102.25 	125A.02, 125A.03 to 125A.24, and 125A.65 and rules relating to the education of pupils 
102.26 	with a disability as though it were a district.
102.27 		Subd. 13.Length of school year. A charter school must provide instruction each 
102.28 	year for at least the number of hours required by section 120A.41. It may provide 
102.29 	instruction throughout the year according to sections 124D.12 to 124D.127 or 124D.128.
102.30 		Subd. 14.Annual public reports. A charter school must publish an annual report 
102.31 	approved by the board of directors. The annual report must at least include information 
102.32 	on school enrollment, student attrition, governance and management, staffing, finances, 
102.33 	academic performance, operational performance, innovative practices and implementation, 
102.34 	and future plans. A charter school must post the annual report on the school's official 
102.35 	Web site. A charter school must also distribute the annual report by publication, mail, or 
102.36 	electronic means to the commissioner, its authorizer, school employees, and parents and 
103.1 	legal guardians of students enrolled in the charter school and must also post the report on 
103.2 	the charter school's official Web site. The reports are public data under chapter 13.
103.3 		Subd. 15.Review and comment. (a) The authorizer shall provide a formal written 
103.4 	evaluation of the school's performance before the authorizer renews the charter contract. 
103.5 	The department must review and comment on the authorizer's evaluation process at the 
103.6 	time the authorizer submits its application for approval and each time the authorizer 
103.7 	undergoes its five-year review under subdivision 3, paragraph (i).
103.8 	(b) An authorizer shall monitor and evaluate the fiscal, operational, and student 
103.9 	performance of the school, and may for this purpose annually assess a charter school 
103.10 	a fee according to paragraph (c). The agreed-upon fee structure must be stated in the 
103.11 	charter school contract.
103.12 	(c) The fee that each charter school pays to an authorizer each year is the greater of:
103.13 	(1) the basic formula allowance for that year; or
103.14 	(2) the lesser of:
103.15 	(i) the maximum fee factor times the basic formula allowance for that year; or
103.16 	(ii) the fee factor times the basic formula allowance for that year times the charter 
103.17 	school's adjusted marginal cost pupil units for that year. The fee factor equals .005 in fiscal 
103.18 	year 2010, .01 in fiscal year 2011, .013 in fiscal year 2012, and .015 in fiscal years 2013 
103.19 	and later. The maximum fee factor equals 1.5 in fiscal year 2010, 2.0 in fiscal year 2011, 
103.20 	3.0 in fiscal year 2012, and 4.0 in fiscal years 2013 and later.
103.21 	(d) An authorizer may not assess a fee for any required services other than as 
103.22 	provided in this subdivision.
103.23 	(e) For the preoperational planning period, after a school is chartered, the authorizer 
103.24 	may assess a charter school a fee equal to the basic formula allowance.
103.25 	(f) By September 30 of each year, an authorizer shall submit to the commissioner a 
103.26 	statement of income and expenditures related to chartering activities during the previous 
103.27 	school year ending June 30. A copy of the statement shall be given to all schools chartered 
103.28 	by the authorizer.
103.29 		Subd. 16.Transportation. (a) A charter school after its first fiscal year of operation 
103.30 	by March 1 of each fiscal year and a charter school by July 1 of its first fiscal year of 
103.31 	operation must notify the district in which the school is located and the Department of 
103.32 	Education if it will provide its own transportation or use the transportation services of the 
103.33 	district in which it is located for the fiscal year.
103.34 	(b) If a charter school elects to provide transportation for pupils, the transportation 
103.35 	must be provided by the charter school within the district in which the charter school is 
104.1 	located. The state must pay transportation aid to the charter school according to section 
104.2 	124D.11, subdivision 2.
104.3 	For pupils who reside outside the district in which the charter school is located, the 
104.4 	charter school is not required to provide or pay for transportation between the pupil's 
104.5 	residence and the border of the district in which the charter school is located. A parent 
104.6 	may be reimbursed by the charter school for costs of transportation from the pupil's 
104.7 	residence to the border of the district in which the charter school is located if the pupil is 
104.8 	from a family whose income is at or below the poverty level, as determined by the federal 
104.9 	government. The reimbursement may not exceed the pupil's actual cost of transportation 
104.10 	or 15 cents per mile traveled, whichever is less. Reimbursement may not be paid for 
104.11 	more than 250 miles per week.
104.12 	At the time a pupil enrolls in a charter school, the charter school must provide the 
104.13 	parent or guardian with information regarding the transportation.
104.14 	(c) If a charter school does not elect to provide transportation, transportation for 
104.15 	pupils enrolled at the school must be provided by the district in which the school is 
104.16 	located, according to sections 123B.88, subdivision 6, and 124D.03, subdivision 8, for a 
104.17 	pupil residing in the same district in which the charter school is located. Transportation 
104.18 	may be provided by the district in which the school is located, according to sections 
104.19 	123B.88, subdivision 6, and 124D.03, subdivision 8, for a pupil residing in a different 
104.20 	district. If the district provides the transportation, the scheduling of routes, manner and 
104.21 	method of transportation, control and discipline of the pupils, and any other matter relating 
104.22 	to the transportation of pupils under this paragraph shall be within the sole discretion, 
104.23 	control, and management of the district.
104.24 		Subd. 17.Leased space. A charter school may lease space from an independent 
104.25 	or special school board eligible to be an authorizer, other public organization, private, 
104.26 	nonprofit nonsectarian organization, private property owner, or a sectarian organization 
104.27 	if the leased space is constructed as a school facility. The department must review and 
104.28 	approve or disapprove leases, including modifications and renewals prior to execution of 
104.29 	the lease by the lessee and lessor, in a timely manner. Leases for a school year must be 
104.30 	submitted to the department no later than July 1 before that school year. The commissioner 
104.31 	may waive this date based on an appeal by a charter school when circumstances beyond 
104.32 	the control of the charter school do not allow a lease agreement to be written prior to that 
104.33 	date. The commissioner shall not approve a facility lease that does not have (1) a sum 
104.34 	certain annual cost and (2) an escape clause that may be exercised by the charter school in 
104.35 	the event of nonrenewal or termination of the charter school contract.
105.1 		Subd. 17a.Affiliated nonprofit building corporation. (a) Before a charter school 
105.2 	may organize an affiliated nonprofit building corporation (i) to renovate or purchase an 
105.3 	existing facility to serve as a school or (ii) to expand an existing building or construct 
105.4 	a new school facility, an authorizer must submit an affidavit to the commissioner for 
105.5 	approval in the form and manner the commissioner prescribes, and consistent with 
105.6 	paragraphs (b) and (c) or (d).
105.7 	(b) An affiliated nonprofit building corporation under this subdivision must:
105.8 	(1) be incorporated under section 317A;
105.9 	(2) comply with applicable Internal Revenue Service regulations, including 
105.10 	regulations for "supporting organizations" as defined by the Internal Revenue Service;
105.11 	(3) submit to the commissioner each fiscal year a list of current board members 
105.12 	and a copy of its annual audit; and
105.13 	(4) comply with government data practices law under chapter 13.
105.14 	An affiliated nonprofit building corporation must not serve as the leasing agent for 
105.15 	property or facilities it does not own. A charter school that leases a facility from an 
105.16 	affiliated nonprofit building corporation that does not own the leased facility is ineligible 
105.17 	to receive charter school lease aid. The state is immune from liability resulting from a 
105.18 	contract between a charter school and an affiliated nonprofit building corporation.
105.19 	(c) A charter school may organize an affiliated nonprofit building corporation to 
105.20 	renovate or purchase an existing facility to serve as a school if the charter school:
105.21 	(1) has been operating for at least five consecutive school years;
105.22 	(2) has had a net positive unreserved general fund balance as of June 30 in the 
105.23 	preceding five fiscal years;
105.24 	(3) has a long-range strategic and financial plan;
105.25 	(4) completes a feasibility study of available buildings;
105.26 	(5) documents enrollment projections and the need to use an affiliated building 
105.27 	corporation to renovate or purchase an existing facility to serve as a school; and
105.28 	(6) has a plan for the renovation or purchase, which describes the parameters and 
105.29 	budget for the project.
105.30 	(d) A charter school may organize an affiliated nonprofit building corporation to 
105.31 	expand an existing school facility or construct a new school facility if the charter school:
105.32 	(1) demonstrates the lack of facilities available to serve as a school;
105.33 	(2) has been operating for at least eight consecutive school years;
105.34 	(3) has had a net positive unreserved general fund balance as of June 30 in the 
105.35 	preceding five fiscal years;
105.36 	(4) completes a feasibility study of facility options;
106.1 	(5) has a long-range strategic and financial plan that includes enrollment projections 
106.2 	and demonstrates the need for constructing a new school facility; and
106.3 	(6) has a plan for the expansion or new school facility, which describes the 
106.4 	parameters and budget for the project.
106.5 		Subd. 17b.Positive review and comment. (e) A charter school or an affiliated 
106.6 	nonprofit building corporation organized by a charter school must not initiate an 
106.7 	installment contract for purchase, or a lease agreement, or solicit bids for new construction, 
106.8 	expansion, or remodeling of an educational facility that requires an expenditure in 
106.9 	excess of $1,400,000, unless it meets the criteria in subdivision 17a, paragraph (b) and 
106.10 	paragraph (c) or (d), as applicable, and receives a positive review and comment from 
106.11 	the commissioner under section 123B.71.
106.12 		Subd. 19.Disseminate information. (a) The authorizer, the operators, Authorizers
106.13 	 and the department must disseminate information to the public on how to form and 
106.14 	operate a charter school. Charter schools must disseminate information about how to 
106.15 	use the offerings of a charter school. Targeted groups include low-income families and 
106.16 	communities, students of color, and students who are at risk of academic failure.
106.17 	(b) Authorizers, operators, and the department also may disseminate information 
106.18 	about the successful best practices in teaching and learning demonstrated by charter 
106.19 	schools.
106.20 		Subd. 20.Leave to teach in a charter school. If a teacher employed by a district 
106.21 	makes a written request for an extended leave of absence to teach at a charter school, 
106.22 	the district must grant the leave. The district must grant a leave not to exceed a total of 
106.23 	five years. Any request to extend the leave shall be granted only at the discretion of the 
106.24 	school board. The district may require that the request for a leave or extension of leave 
106.25 	be made before February 1 in the school year preceding the school year in which the 
106.26 	teacher intends to leave, or February 1 of the calendar year in which the teacher's leave is 
106.27 	scheduled to terminate. Except as otherwise provided in this subdivision and except for 
106.28 	section 122A.46, subdivision 7, the leave is governed by section 122A.46, including, but 
106.29 	not limited to, reinstatement, notice of intention to return, seniority, salary, and insurance.
106.30 	During a leave, the teacher may continue to aggregate benefits and credits in the 
106.31 	Teachers' Retirement Association account under chapters 354 and 354A, consistent with 
106.32 	subdivision 22.
106.33 		Subd. 21.Collective bargaining. Employees of the board of directors of a charter 
106.34 	school may, if otherwise eligible, organize under chapter 179A and comply with its 
106.35 	provisions. The board of directors of a charter school is a public employer, for the 
106.36 	purposes of chapter 179A, upon formation of one or more bargaining units at the school. 
107.1 	Bargaining units at the school must be separate from any other units within an authorizing 
107.2 	district, except that bargaining units may remain part of the appropriate unit within an 
107.3 	authorizing district, if the employees of the school, the board of directors of the school, 
107.4 	the exclusive representative of the appropriate unit in the authorizing district, and the 
107.5 	board of the authorizing district agree to include the employees in the appropriate unit of 
107.6 	the authorizing district.
107.7 		Subd. 22.Teacher and other employee retirement. (a) Teachers in a charter 
107.8 	school must be public school teachers for the purposes of chapters 354 and 354A.
107.9 	(b) Except for teachers under paragraph (a), employees in a charter school must be 
107.10 	public employees for the purposes of chapter 353.
107.11 		Subd. 23.Causes for nonrenewal or termination of charter school contract. (a) 
107.12 	The duration of the contract with an authorizer must be for the term contained in the 
107.13 	contract according to subdivision 6. The authorizer may or may not renew a contract at 
107.14 	the end of the term for any ground listed in paragraph (b). An authorizer may unilaterally 
107.15 	terminate a contract during the term of the contract for any ground listed in paragraph (b). 
107.16 	At least 60 business days before not renewing or terminating a contract, the authorizer 
107.17 	shall notify the board of directors of the charter school of the proposed action in writing. 
107.18 	The notice shall state the grounds for the proposed action in reasonable detail and that the 
107.19 	charter school's board of directors may request in writing an informal hearing before the 
107.20 	authorizer within 15 business days of receiving notice of nonrenewal or termination of 
107.21 	the contract. Failure by the board of directors to make a written request for an informal 
107.22 	hearing within the 15-business-day period shall be treated as acquiescence to the proposed 
107.23 	action. Upon receiving a timely written request for a hearing, the authorizer shall give ten 
107.24 	business days' notice to the charter school's board of directors of the hearing date. The 
107.25 	authorizer shall conduct an informal hearing before taking final action. The authorizer 
107.26 	shall take final action to renew or not renew a contract no later than 20 business days 
107.27 	before the proposed date for terminating the contract or the end date of the contract.
107.28 	(b) A contract may be terminated or not renewed upon any of the following grounds:
107.29 	(1) failure to meet demonstrate satisfactory academic achievement for all groups of 
107.30 	students, including the requirements for pupil performance contained in the contract;
107.31 	(2) failure to meet generally accepted standards of fiscal management;
107.32 	(3) violations of law; or
107.33 	(4) other good cause shown.
107.34 	If a contract is terminated or not renewed under this paragraph, the school must be 
107.35 	dissolved according to the applicable provisions of chapter 317A.
108.1 	(c) If the authorizer and the charter school board of directors mutually agree to 
108.2 	terminate or not renew the contract, a change in authorizers is allowed if the commissioner 
108.3 	approves the change to a different eligible authorizer to authorize the charter school. 
108.4 	Both parties must jointly submit their intent in writing to the commissioner to mutually 
108.5 	terminate the contract. The authorizer that is a party to the existing contract must inform 
108.6 	the proposed authorizer about the fiscal and operational status and student performance 
108.7 	of the school. Before the commissioner determines whether to approve a change in 
108.8 	authorizer, the proposed authorizer must identify any outstanding issues in the proposed 
108.9 	charter contract that were unresolved in the previous charter contract and have the charter 
108.10 	school agree to resolve those issues. If no change in authorizer is approved, the school 
108.11 	must be dissolved according to applicable law and the terms of the contract.
108.12 	(c) If the authorizer and the charter school board of directors mutually agree not to 
108.13 	renew the contract, a change in authorizers is allowed. The authorizer and the school 
108.14 	board must jointly submit a written and signed letter of their intent to the commissioner 
108.15 	to mutually not renew the contract. The authorizer that is a party to the existing contract 
108.16 	must inform the proposed authorizer about the fiscal, operational, and student performance 
108.17 	status of the school, as well as any outstanding contractual obligations that exist. The 
108.18 	charter contract between the proposed authorizer and the school must identify and provide 
108.19 	a plan to address any outstanding obligations from the previous contract. The proposed 
108.20 	contract must be submitted at least 105 business days before the end of the existing 
108.21 	charter contract. The commissioner shall have 30 business days to review and make a 
108.22 	determination. The proposed authorizer and the school shall have 15 business days to 
108.23 	respond to the determination and address any issues identified by the commissioner. A 
108.24 	final determination by the commissioner shall be made no later than 45 business days 
108.25 	before the end of the current charter contract. If no change in authorizer is approved, the 
108.26 	school and the current authorizer may withdraw their letter of nonrenewal and enter into a 
108.27 	new contract. If the transfer of authorizers is not approved and the current authorizer and 
108.28 	the school do not withdraw their letter and enter into a new contract, the school must be 
108.29 	dissolved according to applicable law and the terms of the contract.
108.30 	(d) The commissioner, after providing reasonable notice to the board of directors of 
108.31 	a charter school and the existing authorizer, and after providing an opportunity for a public 
108.32 	hearing, may terminate the existing contract between the authorizer and the charter school 
108.33 	board if the charter school has a history of:
108.34 	(1) failure to meet pupil performance requirements consistent with state law;
108.35 	(2) financial mismanagement or failure to meet generally accepted standards of 
108.36 	fiscal management; or
109.1 	(3) repeated or major violations of the law.
109.2 		Subd. 23a.Related party lease costs. (a) A charter school is prohibited from 
109.3 	entering a lease of real property with a related party unless the lessor is a nonprofit 
109.4 	corporation under chapter 317A or a cooperative under chapter 308A, and the lease cost is 
109.5 	reasonable under section 124D.11, subdivision 4, clause (1).
109.6 	(b) For purposes of this section and section 124D.11:
109.7 	(1) "related party" means an affiliate or immediate relative of the other party in 
109.8 	question, an affiliate of an immediate relative, or an immediate relative of an affiliate;
109.9 	(2) "affiliate" means a person that directly or indirectly, through one or more 
109.10 	intermediaries, controls, is controlled by, or is under common control with another person;
109.11 	(3) "immediate family" means an individual whose relationship by blood, marriage, 
109.12 	adoption, or partnering is no more remote than first cousin;
109.13 	(4) "person" means an individual or entity of any kind; and
109.14 	(5) "control" means the ability to affect the management, operations, or policy 
109.15 	actions or decisions of a person, whether through ownership of voting securities, by 
109.16 	contract, or otherwise.
109.17 	(c) A lease of real property to be used for a charter school, not excluded in paragraph 
109.18 	(a), must contain the following statement: "This lease is subject to Minnesota Statutes, 
109.19 	section 124D.10, subdivision 23a."
109.20 	(d) If a charter school enters into as lessee a lease with a related party and the 
109.21 	charter school subsequently closes, the commissioner has the right to recover from the 
109.22 	lessor any lease payments in excess of those that are reasonable under section 124D.11, 
109.23 	subdivision 4, clause (1).
109.24 		Subd. 24.Pupil enrollment upon nonrenewal or termination of charter school 
109.25 	contract. If a contract is not renewed or is terminated according to subdivision 23, a 
109.26 	pupil who attended the school, siblings of the pupil, or another pupil who resides in the 
109.27 	same place as the pupil may enroll in the resident district or may submit an application 
109.28 	to a nonresident district according to section 124D.03 at any time. Applications and 
109.29 	notices required by section 124D.03 must be processed and provided in a prompt manner. 
109.30 	The application and notice deadlines in section 124D.03 do not apply under these 
109.31 	circumstances. The closed charter school must transfer the student's educational records 
109.32 	within ten business days of closure to the student's school district of residence where the 
109.33 	records must be retained or transferred under section 120A.22, subdivision 7.
109.34 		Subd. 25.Extent of specific legal authority. (a) The board of directors of a charter 
109.35 	school may sue and be sued.
109.36 	(b) The board may not levy taxes or issue bonds.
110.1 	(c) The commissioner, an authorizer, members of the board of an authorizer in 
110.2 	their official capacity, and employees of an authorizer are immune from civil or criminal 
110.3 	liability with respect to all activities related to a charter school they approve or authorize. 
110.4 	The board of directors shall obtain at least the amount of and types of insurance up to the 
110.5 	applicable tort liability limits under chapter 466. The charter school board must submit 
110.6 	a copy of the insurance policy to its authorizer and the commissioner before starting 
110.7 	operations. The charter school board must submit changes in its insurance carrier or policy 
110.8 	to its authorizer and the commissioner within 20 business days of the change.
110.9 	(d) Notwithstanding section 3.736, the charter school shall assume full liability for 
110.10 	its activities and indemnify and hold harmless the authorizer and its officers, agents, and 
110.11 	employees from any suit, claim, or liability arising from any operation of the charter school 
110.12 	and the commissioner and department officers, agents, and employees. A charter school 
110.13 	is not required to indemnify or hold harmless a state employee if the state would not be 
110.14 	required to indemnify and hold the employee harmless under section 3.736, subdivision 9.
110.15 	(e) The board may borrow money in the following manner and subject to the 
110.16 	following limitations in anticipation of receipt of state aids for schools as defined in 
110.17 	Minnesota Statutes or federal school aid distributed by or through the Department of 
110.18 	Education. The aggregate borrowing under this paragraph shall not exceed the greater 
110.19 	of (1) 50 percent or (2) the difference between 100 percent and the current year aid 
110.20 	payment under section 127A.45, subdivision 2, paragraph (d), of the aids, fees, and 
110.21 	tuition payments receivable by the charter school in the fiscal year in which the money is 
110.22 	borrowed as estimated and certified by the commissioner. If the charter school proposes 
110.23 	to sell all or a portion of the estimated and certified aid, it must give public notice of the 
110.24 	proposed sale on its official Web site for at least 15 business days before the proposed sale. 
110.25 	At the time the board intends to sell all or a portion of the anticipated aid, the anticipated 
110.26 	aid must be sold to the buyer who will agree to purchase the aid on the terms deemed 
110.27 	most favorable to the charter school. The terms of any sale of anticipated aid are public 
110.28 	data under chapter 13. The money received from the sale of the anticipated aid must be 
110.29 	disbursed solely for the purpose that the aid is intended.
110.30 		Subd. 27.Collaboration between charter school and school district. (a) A charter 
110.31 	school board may voluntarily enter into a two-year, renewable agreement for collaboration 
110.32 	to enhance student achievement with a school district within whose geographic boundary 
110.33 	it operates.
110.34 	(b) A school district need not be an approved authorizer to enter into a collaboration 
110.35 	agreement with a charter school. A charter school need not be authorized by the school 
110.36 	district with which it seeks to collaborate.
111.1 	(c) A charter school authorizer is prohibited from requiring a collaboration agreement 
111.2 	as a condition of entering into or renewing a charter contract as defined in subdivision 6.
111.3 	(d) Nothing in this subdivision or in the collaboration agreement may impact in any 
111.4 	way the authority or autonomy of the charter school.
111.5 	(e) Nothing in this subdivision or in the collaboration agreement shall cause the state 
111.6 	to pay twice for the same student, service, or facility or otherwise impact state funding, or 
111.7 	the flow thereof, to the school district or the charter school.
111.8 	(f) The collaboration agreement may include, but need not be limited to, 
111.9 	collaboration regarding facilities, transportation, training, student achievement, 
111.10 	assessments, mutual performance standards, and other areas of mutual agreement.
111.11 	(g) The school district may include the academic performance of the students of a 
111.12 	collaborative charter school site operating within the geographic boundaries of the school 
111.13 	district, for purposes of student assessment and reporting to the state.
111.14 	(h) Districts, authorizers, or charter schools entering into a collaborative agreement 
111.15 	are equally and collectively subject to the same state and federal accountability measures 
111.16 	for student achievement, school performance outcomes, and school improvement 
111.17 	strategies. The collaborative agreement and all accountability measures must be posted 
111.18 	on the district, charter school, and authorizer Web sites.

111.19 	EFFECTIVE DATE. This section is effective the day following final enactment, 
111.20 	except subdivision 23 is effective July 1, 2013.

111.21 	Sec. 2. Minnesota Statutes 2012, section 260A.02, subdivision 3, is amended to read:
111.22 		Subd. 3.Continuing truant. "Continuing truant" means a child who is subject to the 
111.23 	compulsory instruction requirements of section 120A.22 and is absent from instruction in a 
111.24 	school, as defined in section 120A.05, without valid excuse within a single school year for:
111.25 	(1) three days if the child is in elementary school; or
111.26 	(2) three or more class periods on three days if the child is in middle school, junior 
111.27 	high school, or high school.
111.28 	Nothing in this section shall prevent a school district or charter school from notifying 
111.29 	a truant child's parent or legal guardian of the child's truancy or otherwise addressing a 
111.30 	child's attendance problems prior to the child becoming a continuing truant.

111.31 	Sec. 3. Minnesota Statutes 2012, section 260A.03, is amended to read:
111.32 	260A.03 NOTICE TO PARENT OR GUARDIAN WHEN CHILD IS A 
111.33 	CONTINUING TRUANT.
112.1 	Upon a child's initial classification as a continuing truant, the school attendance 
112.2 	officer or other designated school official shall notify the child's parent or legal guardian, 
112.3 	by first-class mail or other reasonable means, of the following:
112.4 	(1) that the child is truant;
112.5 	(2) that the parent or guardian should notify the school if there is a valid excuse 
112.6 	for the child's absences;
112.7 	(3) that the parent or guardian is obligated to compel the attendance of the child 
112.8 	at school pursuant to section 120A.22 and parents or guardians who fail to meet this 
112.9 	obligation may be subject to prosecution under section 120A.34;
112.10 	(4) that this notification serves as the notification required by section 120A.34;
112.11 	(5) that alternative educational programs and services may be available in the child's 
112.12 	enrolling or resident district;
112.13 	(6) that the parent or guardian has the right to meet with appropriate school personnel 
112.14 	to discuss solutions to the child's truancy;
112.15 	(7) that if the child continues to be truant, the parent and child may be subject to 
112.16 	juvenile court proceedings under chapter 260C;
112.17 	(8) that if the child is subject to juvenile court proceedings, the child may be subject 
112.18 	to suspension, restriction, or delay of the child's driving privilege pursuant to section 
112.19 	260C.201; and
112.20 	(9) that it is recommended that the parent or guardian accompany the child to school 
112.21 	and attend classes with the child for one day.

112.22 	Sec. 4. Minnesota Statutes 2012, section 260A.05, subdivision 1, is amended to read:
112.23 		Subdivision 1.Establishment. A school district or charter school may establish 
112.24 	one or more school attendance review boards to exercise the powers and duties in this 
112.25 	section. The school district or charter school board shall appoint the members of the 
112.26 	school attendance review board and designate the schools within the board's jurisdiction. 
112.27 	Members of a school attendance review board may include:
112.28 	(1) the superintendent of the school district or the superintendent's designee or 
112.29 	charter school director or the director's designee;
112.30 	(2) a principal and one or more other school officials from within the district or 
112.31 	charter school;
112.32 	(3) parent representatives;
112.33 	(4) representatives from community agencies that provide services for truant 
112.34 	students and their families;
112.35 	(5) a juvenile probation officer;
113.1 	(6) school counselors and attendance officers; and
113.2 	(7) law enforcement officers.

113.3 	Sec. 5. Minnesota Statutes 2012, section 260A.07, subdivision 1, is amended to read:
113.4 		Subdivision 1.Establishment; referrals. A county attorney may establish a truancy 
113.5 	mediation program for the purpose of resolving truancy problems without court action. If 
113.6 	a student is in a school district or charter school that has established a school attendance 
113.7 	review board, the student may be referred to the county attorney under section 260A.06, 
113.8 	subdivision 3. If the student's school district or charter school has not established a board, 
113.9 	the student may be referred to the county attorney by the school district or charter school 
113.10 	if the student continues to be truant after the parent or guardian has been sent or conveyed 
113.11 	the notice under section 260A.03.

113.12 	Sec. 6. APPROPRIATIONS.
 113.13 		Subdivision 1.Department. The sums indicated in this section are appropriated 
113.14 	from the general fund to the Department of Education for the fiscal years designated.
113.15 		Subd. 2.Charter school building lease aid. For building lease aid under Minnesota 
113.16 	Statutes, section 124D.11, subdivision 4: 

113.17		$
	54,484,000
	.....
	2014
	
113.18		$
	59,533,000
	.....
	2015
	
113.19 	The 2014 appropriation includes $6,819,000 for 2013 and $47,665,000 for 2014.
113.20 	The 2015 appropriation includes $7,502,000 for 2014 and $52,031,000 for 2015.

113.21 	Sec. 7. REVISOR'S INSTRUCTION; CHARTER SCHOOLS 
113.22 	RECODIFICATION.
 113.23 	The revisor of statutes, in consultation with K-12 education staff in House Research 
113.24 	and Senate Counsel and Research, shall prepare a recodification of Minnesota Statutes, 
113.25 	sections 124D.10 and 124D.11, including corresponding technical corrections and other 
113.26 	needed technical changes and shall submit the completed recodification to the chairs and 
113.27 	ranking minority members of the legislative committees having jurisdiction over K-12 
113.28 	education policy and finance.

113.29 	ARTICLE 5
113.30 	SPECIAL EDUCATION

113.31 	Section 1. Minnesota Statutes 2012, section 15.059, subdivision 5b, is amended to read:
114.1 		Subd. 5b.Continuation dependent on federal law. Notwithstanding this section, 
114.2 	the following councils and committees do not expire unless federal law no longer requires 
114.3 	the existence of the council or committee:
114.4 	(1) Rehabilitation Council for the Blind, created in section 248.10;
114.5 	(2) Juvenile Justice Advisory Committee, created in section 299A.72;
114.6 	(3) Governor's Workforce Development Council, created in section 116L.665;
114.7 	(4) local workforce councils, created in section 116L.666, subdivision 2;
114.8 	(5) Rehabilitation Council, created in section 268A.02, subdivision 2; and
114.9 	(6) Statewide Independent Living Council, created in section 268A.02, subdivision 
114.10 	2; and
114.11 	(7) Interagency Coordinating Council, created in section 125A.28.

114.12 	Sec. 2. Minnesota Statutes 2012, section 124D.11, subdivision 5, is amended to read:
114.13 		Subd. 5.Special education aid. (a) Except as provided in subdivision 2, special 
114.14 	education aid must be paid to a charter school according to section 125A.76, as though 
114.15 	it were a school district.
114.16 	(b) For fiscal year 2006, the charter school may charge tuition to the district of 
114.17 	residence as follows:
114.18 	(1) if the charter school does not receive general education revenue on behalf of 
114.19 	the student according to subdivision 1, tuition shall be charged as provided in section 
114.20 	125A.11; or
114.21 	(2) if the charter school receives general education revenue on behalf of the student 
114.22 	according to subdivision 1, tuition shall be charged as provided in section 127A.47, 
114.23 	subdivision 7, paragraph (d).
114.24 	(c) (b) For fiscal year 2007 2015 and later, the special education aid paid to the 
114.25 	charter school shall be adjusted as follows:
114.26 	(1) if the charter school does not receive general education revenue on behalf of 
114.27 	the student according to subdivision 1, the aid shall be adjusted as provided in section 
114.28 	125A.11; or
114.29 	(2) if the charter school receives general education revenue on behalf of the student 
114.30 	according to subdivision 1, the aid shall be adjusted as provided in section 127A.47, 
114.31 	subdivision 7, paragraph (d) (h).

114.32 	EFFECTIVE DATE. This section is effective for fiscal year 2015 and later.

115.1 	Sec. 3. Minnesota Statutes 2012, section 125A.0941, is amended to read:
115.2 	125A.0941 DEFINITIONS.
115.3 	(a) The following terms have the meanings given them.
115.4 	(b) "Emergency" means a situation where immediate intervention is needed to 
115.5 	protect a child or other individual from physical injury or to prevent serious property 
115.6 	damage. Emergency does not mean circumstances such as: a child who does not respond 
115.7 	to a task or request and instead places his or her head on a desk or hides under a desk or 
115.8 	table; a child who does not respond to a staff person's request unless failing to respond 
115.9 	would result in physical injury to the child or other individual; or an emergency incident 
115.10 	has already occurred and no threat of physical injury currently exists.
115.11 	(c) "Physical holding" means physical intervention intended to hold a child immobile 
115.12 	or limit a child's movement, where body contact is the only source of physical restraint, 
115.13 	and where immobilization is used to effectively gain control of a child in order to protect 
115.14 	the a child or other person individual from physical injury. The term physical holding does 
115.15 	not mean physical contact that:
115.16 	(1) helps a child respond or complete a task;
115.17 	(2) assists a child without restricting the child's movement;
115.18 	(3) is needed to administer an authorized health-related service or procedure; or
115.19 	(4) is needed to physically escort a child when the child does not resist or the child's 
115.20 	resistance is minimal.
115.21 	(d) "Positive behavioral interventions and supports" means interventions and 
115.22 	strategies to improve the school environment and teach children the skills to behave 
115.23 	appropriately.
115.24 	(e) "Prone restraint" means placing a child in a face down position.
115.25 	(f) "Restrictive procedures" means the use of physical holding or seclusion in an 
115.26 	emergency. Restrictive procedures must not be used to punish or otherwise discipline a 
115.27 	child.
115.28 	(g) "Seclusion" means confining a child alone in a room from which egress is barred. 
115.29 	Egress may be barred by an adult locking or closing the door in the room or preventing the 
115.30 	child from leaving the room. Removing a child from an activity to a location where the 
115.31 	child cannot participate in or observe the activity is not seclusion.

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

115.33 	Sec. 4. Minnesota Statutes 2012, section 125A.0942, is amended to read:
115.34 	125A.0942 STANDARDS FOR RESTRICTIVE PROCEDURES.
116.1 		Subdivision 1.Restrictive procedures plan. (a) Schools that intend to use 
116.2 	restrictive procedures shall maintain and make publicly accessible in an electronic format 
116.3 	on a school or district Web site or make a paper copy available upon request describing a 
116.4 	restrictive procedures plan for children with disabilities that includes at least the following:
116.5 	(1) lists the list of restrictive procedures the school intends to use;
116.6 	(2) describes how the school will implement a range of positive behavior strategies 
116.7 	and provide links to mental health services;
116.8 	(3) describes how the school will monitor and review the use of restrictive 
116.9 	procedures, including:
116.10 	(i)  conducting post-use debriefings, consistent with subdivision 3, paragraph (a), 
116.11 	clause (5); and 
116.12 	(ii) convening an oversight committee to undertake a quarterly review of the use 
116.13 	of restrictive procedures based on patterns or problems indicated by similarities in the 
116.14 	time of day, day of the week, duration of the use of a procedure, the individuals involved, 
116.15 	or other factors associated with the use of restrictive procedures; the number of times a 
116.16 	restrictive procedure is used schoolwide and for individual children; the number and types 
116.17 	of injuries, if any, resulting from the use of restrictive procedures; whether restrictive 
116.18 	procedures are used in nonemergency situations; the need for additional staff training; and 
116.19 	proposed actions to minimize the use of restrictive procedures; and
116.20 	(3) (4) includes a written description and documentation of the training staff 
116.21 	completed under subdivision 5.
116.22 	(b) Schools annually must publicly identify oversight committee members who 
116.23 	must at least include: 
116.24 	(1) a mental health professional, school psychologist, or school social worker; 
116.25 	(2) an expert in positive behavior strategies; 
116.26 	(3) a special education administrator; and 
116.27 	(4) a general education administrator.
116.28 		Subd. 2.Restrictive procedures. (a) Restrictive procedures may be used only by a 
116.29 	licensed special education teacher, school social worker, school psychologist, behavior 
116.30 	analyst certified by the National Behavior Analyst Certification Board, a person with a 
116.31 	master's degree in behavior analysis, other licensed education professional, highly qualified 
116.32 	paraprofessional under section 120B.363, or mental health professional under section 
116.33 	245.4871, subdivision 27, who has completed the training program under subdivision 5.
116.34 	(b) A school shall make reasonable efforts to notify the parent on the same day a 
116.35 	restrictive procedure is used on the child, or if the school is unable to provide same-day 
117.1 	notice, notice is sent within two days by written or electronic means or as otherwise 
117.2 	indicated by the child's parent under paragraph (d).
117.3 	(c) When restrictive procedures are used twice in 30 days or when a pattern emerges 
117.4 	and restrictive procedures are not included in a child's individualized education program 
117.5 	or behavior intervention plan, The district must hold a meeting of the individualized 
117.6 	education program team, conduct or review a functional behavioral analysis, review data, 
117.7 	consider developing additional or revised positive behavioral interventions and supports, 
117.8 	consider actions to reduce the use of restrictive procedures, and modify the individualized 
117.9 	education program or behavior intervention plan as appropriate. The district must hold 
117.10 	the meeting: within ten calendar days after district staff use restrictive procedures on two 
117.11 	separate school days within 30 calendar days or a pattern of use emerges and the child's 
117.12 	individualized education program or behavior intervention plan does not provide for using 
117.13 	restrictive procedures in an emergency; or at the request of a parent or the district after 
117.14 	restrictive procedures are used.  The district must review use of restrictive procedures at a 
117.15 	child's annual individualized education program meeting when the child's individualized 
117.16 	education program provides for using restrictive procedures in an emergency.
117.17 	(d) If the individualized education program team under paragraph (c) determines 
117.18 	that existing interventions and supports are ineffective in reducing the use of restrictive 
117.19 	procedures or the district uses restrictive procedures on a child on ten or more school days 
117.20 	during the same school year, the team, as appropriate, either must consult with other 
117.21 	professionals working with the child; consult with experts in behavior analysis, mental 
117.22 	health, communication, or autism; consult with culturally competent professionals; 
117.23 	review existing evaluations, resources, and successful strategies; or consider whether to 
117.24 	reevaluate the child.
117.25 	(e) At the individualized education program meeting under paragraph (c), the team 
117.26 	must review any known medical or psychological limitations, including any medical 
117.27 	information the parent provides voluntarily, that contraindicate the use of a restrictive 
117.28 	procedure, consider whether to prohibit that restrictive procedure, and document any 
117.29 	prohibition in the individualized education program or behavior intervention plan.
117.30 	(d) (f) An individualized education program team may plan for using restrictive 
117.31 	procedures and may include these procedures in a child's individualized education 
117.32 	program or behavior intervention plan; however, the restrictive procedures may be used 
117.33 	only in response to behavior that constitutes an emergency, consistent with this section. 
117.34 	The individualized education program or behavior intervention plan shall indicate how the 
117.35 	parent wants to be notified when a restrictive procedure is used.
118.1 		Subd. 3.Physical holding or seclusion. (a) Physical holding or seclusion may be 
118.2 	used only in an emergency. A school that uses physical holding or seclusion shall meet the 
118.3 	following requirements:
118.4 	(1) the physical holding or seclusion must be is the least intrusive intervention 
118.5 	that effectively responds to the emergency;
118.6 	(2) physical holding or seclusion is not used to discipline a noncompliant child;
118.7 	(3) physical holding or seclusion must endends when the threat of harm ends and 
118.8 	the staff determines that the child can safely return to the classroom or activity;
118.9 	(3) (4) staff must directly observe observes the child while physical holding or 
118.10 	seclusion is being used;
118.11 	(4) (5) each time physical holding or seclusion is used, the staff person who 
118.12 	implements or oversees the physical holding or seclusion shall document documents, as 
118.13 	soon as possible after the incident concludes, the following information:
118.14 	(i) a description of the incident that led to the physical holding or seclusion;
118.15 	(ii) why a less restrictive measure failed or was determined by staff to be 
118.16 	inappropriate or impractical;
118.17 	(iii) the time the physical holding or seclusion began and the time the child was 
118.18 	released; and
118.19 	(iv) a brief record of the child's behavioral and physical status;
118.20 	(5) (6) the room used for seclusion must:
118.21 	(i) be at least six feet by five feet;
118.22 	(ii) be well lit, well ventilated, adequately heated, and clean;
118.23 	(iii) have a window that allows staff to directly observe a child in seclusion;
118.24 	(iv) have tamperproof fixtures, electrical switches located immediately outside the 
118.25 	door, and secure ceilings;
118.26 	(v) have doors that open out and are unlocked, locked with keyless locks that 
118.27 	have immediate release mechanisms, or locked with locks that have immediate release 
118.28 	mechanisms connected with a fire and emergency system; and
118.29 	(vi) not contain objects that a child may use to injure the child or others;
118.30 	(6) (7) before using a room for seclusion, a school must:
118.31 	(i) receive written notice from local authorities that the room and the locking 
118.32 	mechanisms comply with applicable building, fire, and safety codes; and
118.33 	(ii) register the room with the commissioner, who may view that room; and
118.34 	(7) (8) until August 1, 2013 2015, a school district may use prone restraints with 
118.35 	children age five or older under the following conditions if:
119.1 	(i) a the district has provided to the department a list of staff who have had specific 
119.2 	training on the use of prone restraints;
119.3 	(ii) a the district provides information on the type of training that was provided 
119.4 	and by whom;
119.5 	(iii) prone restraints may only be used by staff who have received specific training
119.6 	 use prone restraints;
119.7 	(iv) each incident of the use of prone restraints is reported to the department within 
119.8 	five working days on a form provided by the department; and
119.9 	(v) a the district, prior to before using prone restraints, must review any known 
119.10 	medical or psychological limitations that contraindicate the use of prone restraints.
119.11 	The department will report back to the chairs and ranking minority members of the 
119.12 	legislative committees with primary jurisdiction over education policy by February 
119.13 	1, 2013, on the use of prone restraints in the schools. Consistent with item (iv), The 
119.14 	department must collect data on districts' use of prone restraints and publish the data in a 
119.15 	readily accessible format on the department's Web site on a quarterly basis.
119.16 	(b) The department must develop a statewide plan by February 1, 2013, to reduce 
119.17 	districts' use of restrictive procedures that includes By March 1, 2014, stakeholders must 
119.18 	recommend to the commissioner specific and measurable implementation and outcome 
119.19 	goals for reducing the use of restrictive procedures and the commissioner must submit to 
119.20 	the legislature a report on districts' progress in reducing the use of restrictive procedures 
119.21 	that recommends how to further reduce these procedures and eliminate the use of prone 
119.22 	restraints. The statewide plan includes the following components: measurable goals; the 
119.23 	resources, training, technical assistance, mental health services, and collaborative efforts 
119.24 	needed to significantly reduce districts' use of prone restraints; and recommendations 
119.25 	to clarify and improve the law governing districts' use of restrictive procedures. The 
119.26 	department must convene commissioner must consult with interested stakeholders to 
119.27 	develop the statewide plan and identify the need for technical assistance when preparing 
119.28 	the report, including representatives of advocacy organizations, special education 
119.29 	directors, intermediate school districts, school boards, day treatment providers, county 
119.30 	social services, state human services department staff, mental health professionals, and 
119.31 	autism experts. To assist the department and stakeholders under this paragraph, school 
119.32 	districts must report summary data to the department by July 1, 2012, on districts' use of 
119.33 	restrictive procedures during the 2011-2012 school year, including data on the number 
119.34 	of incidents involving restrictive procedures, the total number of students on which 
119.35 	restrictive procedures were used, the number of resulting injuries, relevant demographic 
119.36 	data on the students and school, and other relevant data collected by the district. By June 
120.1 	30 each year, districts must report summary data on their use of restrictive procedures to 
120.2 	the department, in a form and manner determined by the commissioner.
120.3 		Subd. 4.Prohibitions. The following actions or procedures are prohibited:
120.4 	(1) engaging in conduct prohibited under section 121A.58;
120.5 	(2) requiring a child to assume and maintain a specified physical position, activity, 
120.6 	or posture that induces physical pain;
120.7 	(3) totally or partially restricting a child's senses as punishment;
120.8 	(4) presenting an intense sound, light, or other sensory stimuli using smell, taste, 
120.9 	substance, or spray as punishment;
120.10 	(5) denying or restricting a child's access to equipment and devices such as walkers, 
120.11 	wheelchairs, hearing aids, and communication boards that facilitate the child's functioning, 
120.12 	except when temporarily removing the equipment or device is needed to prevent injury 
120.13 	to the child or others or serious damage to the equipment or device, in which case the 
120.14 	equipment or device shall be returned to the child as soon as possible;
120.15 	(6) interacting with a child in a manner that constitutes sexual abuse, neglect, or 
120.16 	physical abuse under section 626.556;
120.17 	(7) withholding regularly scheduled meals or water;
120.18 	(8) denying access to bathroom facilities; and
120.19 	(9) physical holding that restricts or impairs a child's ability to breathe, restricts or 
120.20 	impairs a child's ability to communicate distress, places pressure or weight on a child's 
120.21 	head, throat, neck, chest, lungs, sternum, diaphragm, back, or abdomen, or results in 
120.22 	straddling a child's torso.
120.23 		Subd. 5.Training for staff. (a) To meet the requirements of subdivision 1, 
120.24 	staff who use restrictive procedures, including highly qualified paraprofessionals, shall 
120.25 	complete training in the following skills and knowledge areas:
120.26 	(1) positive behavioral interventions;
120.27 	(2) communicative intent of behaviors;
120.28 	(3) relationship building;
120.29 	(4) alternatives to restrictive procedures, including techniques to identify events and 
120.30 	environmental factors that may escalate behavior;
120.31 	(5) de-escalation methods;
120.32 	(6) standards for using restrictive procedures only in an emergency;
120.33 	(7) obtaining emergency medical assistance;
120.34 	(8) the physiological and psychological impact of physical holding and seclusion;
120.35 	(9) monitoring and responding to a child's physical signs of distress when physical 
120.36 	holding is being used; and
121.1 	(10) recognizing the symptoms of and interventions that may cause positional 
121.2 	asphyxia when physical holding is used.;
121.3 	(11) district policies and procedures for timely reporting and documenting each 
121.4 	incident involving use of a restricted procedure; and
121.5 	(12) schoolwide programs on positive behavior strategies.
121.6 	(b) The commissioner, after consulting with the commissioner of human services, 
121.7 	must develop and maintain a list of training programs that satisfy the requirements of 
121.8 	paragraph (a). The commissioner also must develop and maintain a list of experts to 
121.9 	help individualized education program teams reduce the use of restrictive procedures. 
121.10 	The district shall maintain records of staff who have been trained and the organization 
121.11 	or professional that conducted the training. The district may collaborate with children's 
121.12 	community mental health providers to coordinate trainings.
121.13 		Subd. 6.Behavior supports. School districts are encouraged to establish effective 
121.14 	schoolwide systems of positive behavior interventions and supports. Nothing in this 
121.15 	section or section 125A.0941 precludes the use of reasonable force under sections 
121.16 	121A.582; 609.06, subdivision 1; and 609.379.

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

121.18 	Sec. 5. Minnesota Statutes 2012, section 125A.11, subdivision 1, is amended to read:
121.19 		Subdivision 1.Nonresident tuition rate; other costs. (a) For fiscal year 2006, 
121.20 	when a school district provides instruction and services outside the district of residence, 
121.21 	board and lodging, and any tuition to be paid, shall be paid by the district of residence. 
121.22 	The tuition rate to be charged for any child with a disability, excluding a pupil for whom 
121.23 	tuition is calculated according to section 127A.47, subdivision 7, paragraph (d), must be 
121.24 	the sum of (1) the actual cost of providing special instruction and services to the child 
121.25 	including a proportionate amount for special transportation and unreimbursed building 
121.26 	lease and debt service costs for facilities used primarily for special education, plus (2) 
121.27 	the amount of general education revenue and referendum aid attributable to the pupil, 
121.28 	minus (3) the amount of special education aid for children with a disability received 
121.29 	on behalf of that child, minus (4) if the pupil receives special instruction and services 
121.30 	outside the regular classroom for more than 60 percent of the school day, the amount of 
121.31 	general education revenue and referendum aid, excluding portions attributable to district 
121.32 	and school administration, district support services, operations and maintenance, capital 
121.33 	expenditures, and pupil transportation, attributable to that pupil for the portion of time 
121.34 	the pupil receives special instruction and services outside of the regular classroom. If 
121.35 	the boards involved do not agree upon the tuition rate, either board may apply to the 
122.1 	commissioner to fix the rate. Notwithstanding chapter 14, the commissioner must then set 
122.2 	a date for a hearing or request a written statement from each board, giving each board 
122.3 	at least ten days' notice, and after the hearing or review of the written statements the 
122.4 	commissioner must make an order fixing the tuition rate, which is binding on both school 
122.5 	districts. General education revenue and referendum equalization aid attributable to a 
122.6 	pupil must be calculated using the resident district's average general education revenue 
122.7 	and referendum equalization aid per adjusted pupil unit.
122.8 	(b) (a) For fiscal year 2007 2015 and later, when a school district provides special 
122.9 	instruction and services for a pupil with a disability as defined in section 125A.02 outside 
122.10 	the district of residence, excluding a pupil for whom an adjustment to special education aid 
122.11 	is calculated according to section 127A.47, subdivision 7, paragraph (e) paragraphs (f) to 
122.12 	(h), special education aid paid to the resident district must be reduced by an amount equal 
122.13 	to (1) the actual cost of providing special instruction and services to the pupil, including 
122.14 	a proportionate amount for special transportation and unreimbursed building lease and 
122.15 	debt service costs for facilities used primarily for special education, plus (2) the amount 
122.16 	of general education revenue and referendum equalization aid attributable to that pupil, 
122.17 	calculated using the resident district's average general education revenue and referendum 
122.18 	equalization aid per adjusted pupil unit excluding basic skills revenue, elementary sparsity 
122.19 	revenue and secondary sparsity revenue, minus (3) the amount of special education aid for 
122.20 	children with a disability received on behalf of that child, minus (4) if the pupil receives 
122.21 	special instruction and services outside the regular classroom for more than 60 percent 
122.22 	of the school day, the amount of general education revenue and referendum equalization 
122.23 	aid, excluding portions attributable to district and school administration, district support 
122.24 	services, operations and maintenance, capital expenditures, and pupil transportation, 
122.25 	attributable to that pupil for the portion of time the pupil receives special instruction 
122.26 	and services outside of the regular classroom, calculated using the resident district's 
122.27 	average general education revenue and referendum equalization aid per adjusted pupil unit 
122.28 	excluding basic skills revenue, elementary sparsity revenue and secondary sparsity revenue 
122.29 	and the serving district's basic skills revenue, elementary sparsity revenue and secondary 
122.30 	sparsity revenue per adjusted pupil unit. Notwithstanding clauses (1) and (4), for pupils 
122.31 	served by a cooperative unit without a fiscal agent school district, the general education 
122.32 	revenue and referendum equalization aid attributable to a pupil must be calculated using 
122.33 	the resident district's average general education revenue and referendum equalization aid 
122.34 	excluding compensatory revenue, elementary sparsity revenue, and secondary sparsity 
122.35 	revenue. Special education aid paid to the district or cooperative providing special 
122.36 	instruction and services for the pupil must be increased by the amount of the reduction in 
123.1 	the aid paid to the resident district. Amounts paid to cooperatives under this subdivision 
123.2 	and section 127A.47, subdivision 7, shall be recognized and reported as revenues and 
123.3 	expenditures on the resident school district's books of account under sections 123B.75 
123.4 	and 123B.76. If the resident district's special education aid is insufficient to make the full 
123.5 	adjustment, the remaining adjustment shall be made to other state aid due to the district.
123.6 	(c) (b) Notwithstanding paragraphs paragraph (a) and (b) and section 127A.47, 
123.7 	subdivision 7, paragraphs (d) and (e) (f) to (h), a charter school where more than 30 
123.8 	percent of enrolled students receive special education and related services, a site approved 
123.9 	under section 125A.515, an intermediate district, a special education cooperative, or a 
123.10 	school district that served as the applicant agency for a group of school districts for federal 
123.11 	special education aids for fiscal year 2006 may apply to the commissioner for authority to 
123.12 	charge the resident district an additional amount to recover any remaining unreimbursed 
123.13 	costs of serving pupils with a disability. The application must include a description of the 
123.14 	costs and the calculations used to determine the unreimbursed portion to be charged to the 
123.15 	resident district. Amounts approved by the commissioner under this paragraph must be 
123.16 	included in the tuition billings or aid adjustments under paragraph (a) or (b), or section 
123.17 	127A.47, subdivision 7, paragraph (d) or (e) (f) or (g), as applicable.
123.18 	(d) (c) For purposes of this subdivision and section 127A.47, subdivision 7, 
123.19 	paragraphs (d) and (e) (f) and (g), "general education revenue and referendum equalization 
123.20 	aid" means the sum of the general education revenue according to section 126C.10, 
123.21 	subdivision 1, excluding alternative teacher compensation revenue, plus the referendum 
123.22 	equalization aid according to section 126C.17, subdivision 7, as adjusted according to 
123.23 	section 127A.47, subdivision 7, paragraphs (a) to (c) (d).

123.24 	EFFECTIVE DATE. This section is effective for fiscal year 2015 and later.

123.25 	Sec. 6. Minnesota Statutes 2012, section 125A.27, subdivision 8, is amended to read:
123.26 		Subd. 8.Eligibility for Part C. "Eligibility for Part C" means eligibility for 
123.27 	early childhood special education infant and toddler intervention services under section 
123.28 	125A.02 and Minnesota Rules.

123.29 	Sec. 7. Minnesota Statutes 2012, section 125A.27, subdivision 11, is amended to read:
123.30 		Subd. 11.Interagency child find systems. "Interagency child find systems" means 
123.31 	activities developed on an interagency basis with the involvement of interagency early 
123.32 	intervention committees and other relevant community groups, including primary referral 
123.33 	sources included in Code of Federal Regulations, title 34, section 303.303(c), using 
123.34 	rigorous standards to actively seek out, identify, and refer infants and young children, 
124.1 	with, or at risk of, disabilities, and their families, including a child to reduce the need for 
124.2 	future services. The interagency child find systems must mandate referrals for a child
124.3 	 under the age of three who: (1) is involved in the subject of a substantiated case of abuse 
124.4 	or neglect, or (2) is identified as directly affected by illegal substance abuse, or withdrawal 
124.5 	symptoms resulting from prenatal drug exposure, to reduce the need for future services.
124.6 	 The referral procedures must specify that a referral must occur within seven calendar days 
124.7 	from the date of identification.

124.8 	Sec. 8. Minnesota Statutes 2012, section 125A.27, subdivision 14, is amended to read:
124.9 		Subd. 14.Parent. "Parent" means the biological parent with parental rights, 
124.10 	adoptive parent, legal guardian, or surrogate parent "parent" as defined by Code of Federal 
124.11 	Regulations, title 34, section 303.27, or a surrogate parent appointed in accordance with 
124.12 	Code of Federal Regulations, title 34, section 303.422, or United States Code, title 20, 
124.13 	section 1439(a)(5).

124.14 	Sec. 9. Minnesota Statutes 2012, section 125A.28, is amended to read:
124.15 	125A.28 STATE INTERAGENCY COORDINATING COUNCIL.
124.16 	An Interagency Coordinating Council of at least 17, but not more than 25 members 
124.17 	is established, in compliance with Public Law 108-446, section 641. The members must 
124.18 	be appointed by the governor and reasonably represent the population of Minnesota. 
124.19 	Council members must elect the council chair, who may not be a representative of the 
124.20 	Department of Education. The representative of the commissioner may not serve as the 
124.21 	chair. The council must be composed of at least five parents, including persons of color, 
124.22 	of children with disabilities under age 12, including at least three parents of a child 
124.23 	with a disability under age seven, five representatives of public or private providers 
124.24 	of services for children with disabilities under age five, including a special education 
124.25 	director, county social service director, local Head Start director, and a community health 
124.26 	services or public health nursing administrator, one member of the senate, one member of 
124.27 	the house of representatives, one representative of teacher preparation programs in early 
124.28 	childhood-special education or other preparation programs in early childhood intervention, 
124.29 	at least one representative of advocacy organizations for children with disabilities under 
124.30 	age five, one physician who cares for young children with special health care needs, one 
124.31 	representative each from the commissioners of commerce, education, health, human 
124.32 	services, a representative from the state agency responsible for child care, foster care, 
124.33 	mental health, homeless coordinator of education of homeless children and youth, and a 
125.1 	representative from Indian health services or a tribal council. Section 15.059, subdivisions 
125.2 	2 to 5, apply to the council. The council must meet at least quarterly.
125.3 	The council must address methods of implementing the state policy of developing 
125.4 	and implementing comprehensive, coordinated, multidisciplinary interagency programs of 
125.5 	early intervention services for children with disabilities and their families.
125.6 	The duties of the council include recommending policies to ensure a comprehensive 
125.7 	and coordinated system of all state and local agency services for children under age five 
125.8 	with disabilities and their families. The policies must address how to incorporate each 
125.9 	agency's services into a unified state and local system of multidisciplinary assessment 
125.10 	practices, individual intervention plans, comprehensive systems to find children in need of 
125.11 	services, methods to improve public awareness, and assistance in determining the role of 
125.12 	interagency early intervention committees.
125.13 	On the date that Minnesota Part C Annual Performance Report is submitted to the 
125.14 	federal Office of Special Education, the council must recommend to the governor and the 
125.15 	commissioners of education, health, human services, commerce, and employment and 
125.16 	economic development policies for a comprehensive and coordinated system.
125.17 	Annually, the council must prepare and submit a report to the governor and the 
125.18 	secretary of the federal Department of Education on the status of early intervention 
125.19 	services and programs for infants and toddlers with disabilities and their families under 
125.20 	the Individuals with Disabilities Education Act, United States Code, title 20, sections 
125.21 	1471 to 1485 (Part C, Public Law 102-119), as operated in Minnesota. The Minnesota 
125.22 	Part C annual performance report may serve as the report.
125.23 	Notwithstanding any other law to the contrary, the State Interagency Coordinating 
125.24 	Council expires on June 30, 2014 does not expire unless federal law no longer requires 
125.25 	the existence of the council or committee.

125.26 	Sec. 10. Minnesota Statutes 2012, section 125A.29, is amended to read:
125.27 	125A.29 RESPONSIBILITIES OF COUNTY BOARDS AND SCHOOL 
125.28 	BOARDS.
125.29 	(a) It is the joint responsibility of county boards and school boards to coordinate, 
125.30 	provide, and pay for appropriate services, and to facilitate payment for services from public 
125.31 	and private sources. Appropriate services for children eligible under section 125A.02 must 
125.32 	be determined in consultation with parents, physicians, and other educational, medical, 
125.33 	health, and human services providers. The services provided must be in conformity with:
125.34 	(1) an IFSP for each eligible infant and toddler from birth through age two and 
125.35 	the infant's or toddler's family including:
126.1 	(i) American Indian infants and toddlers with disabilities and their families residing 
126.2 	on a reservation geographically located in the state;
126.3 	(ii) infants and toddlers with disabilities who are homeless children and their 
126.4 	families; and
126.5 	(iii) infants and toddlers with disabilities who are wards of the state; or
126.6 	(2) an individualized education program (IEP) or individual service plan (ISP) for 
126.7 	each eligible child ages three through four.
126.8 	(b) Appropriate early intervention services include family education and 
126.9 	counseling, home visits, occupational and physical therapy, speech pathology, audiology, 
126.10 	psychological services, special instruction, nursing, respite, nutrition, assistive technology, 
126.11 	transportation and related costs, social work, vision services, case management services 
126.12 	provided in conformity with an IFSP that are designed to meet the special developmental 
126.13 	needs of an eligible child and the needs of the child's family related to enhancing the 
126.14 	child's development and that are selected in collaboration with the parent. These services 
126.15 	include core early intervention services and additional early intervention services listed in 
126.16 	this section and infant and toddler intervention services defined under United States Code, 
126.17 	title 20, sections 1431 to 1444, and Code of Federal Regulations, title 34, section 303,
126.18 	 including service coordination under section 125A.33, medical services for diagnostic and 
126.19 	evaluation purposes, early identification, and screening, assessment, and health services 
126.20 	necessary to enable children with disabilities to benefit from early intervention services.
126.21 	(c) School and county boards shall coordinate early intervention services. In the 
126.22 	absence of agreements established according to section 125A.39, service responsibilities 
126.23 	for children birth through age two are as follows:
126.24 	(1) school boards must provide, pay for, and facilitate payment for special education 
126.25 	and related services required under sections 125A.03 and 125A.06;
126.26 	(2) county boards must provide, pay for, and facilitate payment for noneducational 
126.27 	services of social work, psychology, transportation and related costs, nursing, respite, and 
126.28 	nutrition services not required under clause (1).
126.29 	(d) School and county boards may develop an interagency agreement according 
126.30 	to section 125A.39 to establish agency responsibility that assures early intervention 
126.31 	services are coordinated, provided, paid for, and that payment is facilitated from public 
126.32 	and private sources.
126.33 	(e) County and school boards must jointly determine the primary agency in this 
126.34 	cooperative effort and must notify the commissioner of the state lead agency of their 
126.35 	decision.

127.1 	Sec. 11. Minnesota Statutes 2012, section 125A.30, is amended to read:
127.2 	125A.30 INTERAGENCY EARLY INTERVENTION COMMITTEES.
127.3 	(a) A school district, group of districts, or special education cooperative, in 
127.4 	cooperation with the health and human service agencies located in the county or counties 
127.5 	in which the district or cooperative is located, must establish an Interagency Early 
127.6 	Intervention Committee for children with disabilities under age five and their families 
127.7 	under this section, and for children with disabilities ages three to 22 consistent with 
127.8 	the requirements under sections 125A.023 and 125A.027. Committees must include 
127.9 	representatives of local health, education, and county human service agencies, county 
127.10 	boards, school boards, early childhood family education programs, Head Start, parents of 
127.11 	young children with disabilities under age 12, child care resource and referral agencies, 
127.12 	school readiness programs, current service providers, and may also include representatives 
127.13 	from other private or public agencies and school nurses. The committee must elect a chair 
127.14 	from among its members and must meet at least quarterly.
127.15 	(b) The committee must develop and implement interagency policies and procedures 
127.16 	concerning the following ongoing duties:
127.17 	(1) develop public awareness systems designed to inform potential recipient families, 
127.18 	especially parents with premature infants, or infants with other physical risk factors 
127.19 	associated with learning or development complications, of available programs and services;
127.20 	(2) to reduce families' need for future services, and especially parents with premature 
127.21 	infants, or infants with other physical risk factors associated with learning or development 
127.22 	complications, implement interagency child find systems designed to actively seek out, 
127.23 	identify, and refer infants and young children with, or at risk of, disabilities, including 
127.24 	a child under the age of three who: (i) is involved in the subject of a substantiated case 
127.25 	of abuse or neglect or (ii) is identified as directly affected by illegal substance abuse, or 
127.26 	withdrawal symptoms resulting from prenatal drug exposure;
127.27 	(3) establish and evaluate the identification, referral, child screening, evaluation, 
127.28 	child- and family-directed assessment systems, procedural safeguard process, 
127.29 	and community learning systems to recommend, where necessary, alterations and 
127.30 	improvements;
127.31 	(4) assure the development of individualized family service plans for all eligible 
127.32 	infants and toddlers with disabilities from birth through age two, and their families, 
127.33 	and individualized education programs and individual service plans when necessary to 
127.34 	appropriately serve children with disabilities, age three and older, and their families and 
127.35 	recommend assignment of financial responsibilities to the appropriate agencies;
128.1 	(5) implement a process for assuring that services involve cooperating agencies at all 
128.2 	steps leading to individualized programs;
128.3 	(6) facilitate the development of a transitional transition plan if a service provider is 
128.4 	not recommended to continue to provide services in the individual family service plan by 
128.5 	the time a child is two years and nine months old;
128.6 	(7) identify the current services and funding being provided within the community 
128.7 	for children with disabilities under age five and their families;
128.8 	(8) develop a plan for the allocation and expenditure of additional state and federal 
128.9 	early intervention funds under United States Code, title 20, section 1471 et seq. (Part C, 
128.10 	Public Law 108-446) and United States Code, title 20, section 631, et seq. (Chapter I, 
128.11 	Public Law 89-313); and
128.12 	(9) develop a policy that is consistent with section 13.05, subdivision 9, and federal 
128.13 	law to enable a member of an interagency early intervention committee to allow another 
128.14 	member access to data classified as not public.
128.15 	(c) The local committee shall also:
128.16 	(1) participate in needs assessments and program planning activities conducted by 
128.17 	local social service, health and education agencies for young children with disabilities 
128.18 	and their families; and.
128.19 	(2) review and comment on the early intervention section of the total special 
128.20 	education system for the district, the county social service plan, the section or sections of 
128.21 	the community health services plan that address needs of and service activities targeted 
128.22 	to children with special health care needs, the section on children with special needs in 
128.23 	the county child care fund plan, sections in Head Start plans on coordinated planning and 
128.24 	services for children with special needs, any relevant portions of early childhood education 
128.25 	plans, such as early childhood family education or school readiness, or other applicable 
128.26 	coordinated school and community plans for early childhood programs and services, and 
128.27 	the section of the maternal and child health special project grants that address needs of and 
128.28 	service activities targeted to children with chronic illness and disabilities.

128.29 	Sec. 12. Minnesota Statutes 2012, section 125A.32, is amended to read:
128.30 	125A.32 INDIVIDUALIZED FAMILY SERVICE PLAN (IFSP).
128.31 	(a) A team must participate in IFSP meetings to develop the IFSP. The team shall 
128.32 	include:
128.33 	(1) a parent or parents of the child, as defined in Code of Federal Regulations, 
128.34 	title 34, section 303.27;
128.35 	(2) other family members, as requested by the parent, if feasible to do so;
129.1 	(3) an advocate or person outside of the family, if the parent requests that the 
129.2 	person participate;
129.3 	(4) the service coordinator who has been working with the family since the 
129.4 	initial referral, or who has been designated by the public agency to be responsible for 
129.5 	implementation of the IFSP and coordination with other agencies including transition 
129.6 	services; and
129.7 	(5) a person or persons involved in conducting evaluations and assessments.; and
129.8 	(6) as appropriate, persons who will be providing early intervention services under 
129.9 	the plan to the child or family.
129.10 	(b) The IFSP must include:
129.11 	(1) information about the child's developmental status;
129.12 	(2) family information, with the consent of the family;
129.13 	(3) measurable results or major outcomes expected to be achieved by the child with 
129.14 	the family's assistance, that include developmentally appropriate preliteracy and language 
129.15 	skills for the child, and the criteria, procedures, and timelines;
129.16 	(4) specific early intervention services based on peer-reviewed research, to the 
129.17 	extent practicable, necessary to meet the unique needs of the child and the family to 
129.18 	achieve the outcomes;
129.19 	(5) payment arrangements, if any;
129.20 	(6) medical and other services that the child needs, but that are not required under 
129.21 	the Individual with Disabilities Education Act, United States Code, title 20, section 1471 
129.22 	et seq. (Part C, Public Law 108-446) including funding sources to be used in paying for 
129.23 	those services and the steps that will be taken to secure those services through public 
129.24 	or private sources;
129.25 	(7) dates and duration of early intervention services;
129.26 	(8) name of the service coordinator;
129.27 	(9) steps to be taken to support a child's transition from early infant and toddler
129.28 	 intervention services to other appropriate services, including convening a transition 
129.29 	conference at least 90 days or, at the discretion of all parties, not more than nine months 
129.30 	before the child is eligible for preschool services; and
129.31 	(10) signature of the parent and authorized signatures of the agencies responsible 
129.32 	for providing, paying for, or facilitating payment, or any combination of these, for early
129.33 	 infant and toddler intervention services.

129.34 	Sec. 13. Minnesota Statutes 2012, section 125A.33, is amended to read:
129.35 	125A.33 SERVICE COORDINATION.
130.1 	(a) The team responsible for the initial evaluation and the child- and family-directed 
130.2 	assessment and for developing the IFSP under section 125A.32, if appropriate, must 
130.3 	select a service coordinator to carry out service coordination activities on an interagency 
130.4 	basis. Service coordination must actively promote a family's capacity and competency 
130.5 	to identify, obtain, coordinate, monitor, and evaluate resources and services to meet the 
130.6 	family's needs. Service coordination activities include:
130.7 	(1) coordinating the performance of evaluations and assessments;
130.8 	(2) facilitating and participating in the development, review, and evaluation of 
130.9 	individualized family service plans;
130.10 	(3) assisting families in identifying available service providers;
130.11 	(4) coordinating and monitoring the delivery of available services;
130.12 	(5) informing families of the availability of advocacy services;
130.13 	(6) coordinating with medical, health, and other service providers;
130.14 	(7) facilitating the development of a transition plan to preschool, school, or if 
130.15 	appropriate, to other services, at least 90 days before the time the child is no longer 
130.16 	eligible for early infant and toddler intervention services or, at the discretion of all parties, 
130.17 	not more than nine months prior to the child's eligibility for preschool services third 
130.18 	birthday, if appropriate;
130.19 	(8) managing the early intervention record and submitting additional information to 
130.20 	the local primary agency at the time of periodic review and annual evaluations; and
130.21 	(9) notifying a local primary agency when disputes between agencies impact service 
130.22 	delivery required by an IFSP.
130.23 	(b) A service coordinator must be knowledgeable about children and families 
130.24 	receiving services under this section, requirements of state and federal law, and services 
130.25 	available in the interagency early childhood intervention system. The IFSP must include 
130.26 	the name of the services coordinator from the profession most relevant to the child's or 
130.27 	family's needs or who is otherwise qualified to carry out all applicable responsibilities 
130.28 	under the Individuals with Disabilities Education Act, United States Code, title 20, 
130.29 	sections 1471 to 1485 (Part C, Public Law 102-119), who will be responsible for 
130.30 	implementing the early intervention services identified in the child's IFSP, including 
130.31 	transition services and coordination with other agencies and persons.

130.32 	Sec. 14. Minnesota Statutes 2012, section 125A.35, subdivision 1, is amended to read:
130.33 		Subdivision 1.Lead agency; allocation of resources. The state lead agency must 
130.34 	administer the early intervention account that consists of federal allocations. The Part C 
130.35 	state plan must state the amount of federal resources in the early intervention account 
131.1 	available for use by local agencies. The state lead agency must distribute the funds to the 
131.2 	local primary agency designated by an Interagency Early Intervention Committee based 
131.3 	on a formula that includes a December 1 count of the prior year of Part C eligible children 
131.4 	for the following purposes:
131.5 	(1) as provided in Code of Federal Regulations, title 34, part 303.425 303.430, to 
131.6 	arrange for payment for early intervention services not elsewhere available, or to pay for 
131.7 	services during the pendency of a conflict procedure, including mediation, complaints, due 
131.8 	process hearings, and interagency disputes; and
131.9 	(2) to support interagency child find system activities.

131.10 	Sec. 15. Minnesota Statutes 2012, section 125A.36, is amended to read:
131.11 	125A.36 PAYMENT FOR SERVICES.
131.12 	Core early intervention services must be provided at public expense with no cost to 
131.13 	parents. Parents must be requested to assist in the cost of additional early intervention 
131.14 	services by using third-party payment sources and applying for available resources. 
131.15 	Payment structures permitted under state law must be used to pay for additional early 
131.16 	intervention services. Parental financial responsibility must be clearly defined in the 
131.17 	IFSP. A parent's inability to pay must not prohibit a child from receiving needed early 
131.18 	intervention services.

131.19 	Sec. 16. Minnesota Statutes 2012, section 125A.43, is amended to read:
131.20 	125A.43 MEDIATION PROCEDURE.
131.21 	(a) The commissioner, or the commissioner's designee, of the state lead agency must 
131.22 	use federal funds to provide mediation for the activities in paragraphs (b) and (c).
131.23 	(b) A parent may resolve a dispute regarding issues in section 125A.42, paragraph 
131.24 	(b), clause (5), through mediation. If the parent chooses mediation, mediation must be 
131.25 	voluntary on the part of the parties. The parent and the public agencies must complete the 
131.26 	mediation process within 30 calendar days of the date the Office of Dispute Resolution
131.27 	 Department of Education receives a parent's written request for mediation unless the 
131.28 	district declines mediation. The mediation process may not be used to delay a parent's 
131.29 	right to a due process hearing. The resolution of the written, signed mediation agreement 
131.30 	is not binding on any party both parties and is enforceable in any state court of competent 
131.31 	jurisdiction or in a district court of the United States.
131.32 	(c) Resolution of a dispute through mediation, or other form of alternative dispute 
131.33 	resolution, is not limited to formal disputes arising from the objection of a parent or 
131.34 	guardian and is not limited to the period following a request for a due process hearing.
132.1 	(d) The commissioner shall provide training and resources to school districts to 
132.2 	facilitate early identification of disputes and access to mediation.
132.3 	(e) The local primary agency may request mediation on behalf of involved agencies 
132.4 	when there are disputes between agencies regarding responsibilities to coordinate, provide, 
132.5 	pay for, or facilitate payment for early intervention services.

132.6 	Sec. 17. Minnesota Statutes 2012, section 125A.76, subdivision 1, is amended to read:
132.7 		Subdivision 1.Definitions. (a) For the purposes of this section and section 125A.79, 
132.8 	the definitions in this subdivision apply.
132.9 	(a) "Basic revenue" has the meaning given it in section 126C.10, subdivision 2. 
132.10 	For the purposes of computing basic revenue pursuant to this section, each child with a 
132.11 	disability shall be counted as prescribed in section 126C.05, subdivision 1.
132.12 	(b) "Essential personnel" means teachers, cultural liaisons, related services, and 
132.13 	support services staff providing services to students. Essential personnel may also include 
132.14 	special education paraprofessionals or clericals providing support to teachers and students 
132.15 	by preparing paperwork and making arrangements related to special education compliance 
132.16 	requirements, including parent meetings and individualized education programs. Essential 
132.17 	personnel does not include administrators and supervisors.
132.18 	(c) "Average daily membership" has the meaning given it in section 126C.05.
132.19 	(d) (b) "Program growth factor" means 1.046 for fiscal year 2012 through 2015, 
132.20 	1.0 for fiscal year 2016, and the product of 1.025 and the program growth factor for the 
132.21 	previous year for 2017 and later.
132.22 	(c) "Nonfederal special education expenditure" means all direct expenditures that 
132.23 	are necessary and essential to meet the district's obligation to provide special instruction 
132.24 	and services to children with a disability according to sections 124D.454, 125A.03 to 
132.25 	125A.24, 125A.259 to 125A.48, and 125A.65 as submitted by the district and approved by 
132.26 	the department under section 125A.75, subdivision 4, excluding expenditures:
132.27 	(1) reimbursed with federal funds;
132.28 	(2) reimbursed with other state aids under this chapter;
132.29 	(3) for general education costs of serving students with a disability;
132.30 	(4) for facilities;
132.31 	(5) for pupil transportation; and
132.32 	(6) for postemployment benefits.
132.33 	(d) "Old formula special education expenditures" means expenditures eligible for 
132.34 	revenue under Minnesota Statutes 2012, section 125A.76, subdivision 2.
133.1 	For the Minnesota State Academy for the Deaf and the Minnesota State Academy for the 
133.2 	Blind, expenditures are limited to the salary and fringe benefits of one-to-one instructional 
133.3 	and behavior management aides assigned to a child attending the academy, if the aides are 
133.4 	required by the child's individualized education program.

133.5 	EFFECTIVE DATE. This section is effective for fiscal year 2016 and later.

133.6 	Sec. 18. Minnesota Statutes 2012, section 125A.76, is amended by adding a 
133.7 	subdivision to read:
133.8 		Subd. 2a.Special education initial aid. For fiscal year 2016 and later, a district's 
133.9 	special education initial aid equals the sum of:
133.10 	(1) the lesser of 56 percent of the district's old formula special education 
133.11 	expenditures for the prior fiscal year, 48 percent of the district's nonfederal special 
133.12 	education expenditures for the prior year, or 50 percent of the product of the sum of the 
133.13 	following amounts, computed using prior fiscal year data, and the program growth factor:
133.14 	(i) the product of the district's average daily membership served and the sum of:
133.15 	(A) $438; plus
133.16 	(B) $360 times the ratio of the sum of the number of pupils enrolled on October 1 
133.17 	who are eligible to receive free lunch plus one-half of the pupils enrolled on October 1 
133.18 	who are eligible to receive reduced-price lunch to the total October 1 enrollment; plus
133.19 	(C) .007 times the district's average daily membership served; plus
133.20 	(ii) $10,400 times the December 1 child count for the primary disability areas of 
133.21 	autism spectrum disorders, developmental delay, and severely multiply impaired; plus
133.22 	(iii) $18,000 times the December 1 child count for the primary disability areas of 
133.23 	deaf and hard-of-hearing and emotional or behavioral disorders; plus
133.24 	(iv) $27,000 times the December 1 child count for the primary disability areas of 
133.25 	developmentally cognitive mild-moderate, developmentally cognitive severe-profound, 
133.26 	physically impaired, visually impaired, and deafblind; plus
133.27 	(2) the cost of providing transportation services for children with disabilities under 
133.28 	section 123B.92, subdivision 1, paragraph (b), clause (4).

133.29 	EFFECTIVE DATE. This section is effective for fiscal year 2016 and later.

133.30 	Sec. 19. Minnesota Statutes 2012, section 125A.76, is amended by adding a 
133.31 	subdivision to read:
134.1 		Subd. 2b.Special education aid. (a) For fiscal year 2016 and later, a district's 
134.2 	special education aid equals the sum of the district's special education initial aid under 
134.3 	subdivision 2a and the district's excess cost aid under section 125A.79, subdivision 5.
134.4 	(b) Notwithstanding paragraph (a), the special education aid for a school district, not 
134.5 	including a charter school, must not be less than the lesser of (1) the district's nonfederal 
134.6 	special education expenditures for that fiscal year or (2) the product of the sum of the 
134.7 	special education aid the district would have received for fiscal year 2016 under Minnesota 
134.8 	Statutes 2012, sections 125A.76 and 125A.79, as adjusted according to sections 125A.11 
134.9 	and 127A.47, subdivision 7, the ratio of the district's adjusted daily membership for the 
134.10 	current fiscal year to the district's average daily membership for fiscal year 2016, and the 
134.11 	program growth factor.

134.12 	EFFECTIVE DATE. This section is effective for fiscal year 2016 and later.

134.13 	Sec. 20. Minnesota Statutes 2012, section 125A.76, is amended by adding a 
134.14 	subdivision to read:
134.15 		Subd. 2c.Statewide average expenditure. By January 15 of each year, the 
134.16 	department must calculate the statewide average special education expenditure per 
134.17 	December 1 child count for the prior fiscal year by primary disability area and provide that 
134.18 	information to all districts. By January 15 of each odd-numbered year, the commissioner 
134.19 	must identify options for aligning the assignment of disability areas to the categories and 
134.20 	the rates for each category in subdivision 2a, clause (1), with the latest expenditure data and 
134.21 	submit these options to the legislative committees with jurisdiction over education finance.

134.22 	EFFECTIVE DATE. This section is effective July 1, 2015.

134.23 	Sec. 21. Minnesota Statutes 2012, section 125A.76, subdivision 4a, is amended to read:
134.24 		Subd. 4a.Adjustments for tuition reciprocity with adjoining states. (a) If an 
134.25 	agreement is reached between the state of Minnesota and an adjoining state pursuant to 
134.26 	section 124D.041 that requires a special education tuition payment from the state of 
134.27 	Minnesota to the adjoining state, the tuition payment shall be made from the special 
134.28 	education aid appropriation for that year, and the state total special education aid under 
134.29 	subdivision 4 shall be reduced by the amount of the payment.
134.30 	(b) If an agreement is reached between the state of Minnesota and an adjoining state 
134.31 	pursuant to section 124D.041 that requires a special education tuition payment from 
134.32 	an adjoining state to the state of Minnesota, the special education aid appropriation for 
135.1 	that year and the state total special education aid under subdivision 4 shall be increased 
135.2 	by the amount of the payment.
135.3 	(c) (b) If an agreement is reached between the state of Minnesota and an adjoining 
135.4 	state pursuant to section 124D.041 that requires special education tuition payments to 
135.5 	be made between the two states and not between districts in the two states, the special 
135.6 	education aid for a Minnesota school district serving a student with a disability from the 
135.7 	adjoining state shall be calculated according to section 127A.47, subdivision 7, except that 
135.8 	no reduction shall be made in the special education aid paid to the resident district.

135.9 	EFFECTIVE DATE. This section is effective for fiscal year 2016 and later.

135.10 	Sec. 22. Minnesota Statutes 2012, section 125A.76, subdivision 8, is amended to read:
135.11 		Subd. 8.Special education forecast maintenance of effort. (a) If, on the basis of 
135.12 	a forecast of general fund revenues and expenditures under section 16A.103, the state's 
135.13 	expenditures for special education and related services for children with disabilities from 
135.14 	nonfederal sources for a fiscal year, including special education aid under section 125A.76; 
135.15 	special education excess cost aid under section 125A.76, subdivision 7 subdivision 2b; 
135.16 	travel for home-based services under section 125A.75, subdivision 1; aid for students with 
135.17 	disabilities under section 125A.75, subdivision 3; court-placed special education under 
135.18 	section 125A.79, subdivision 4; out-of-state tuition under section 125A.79, subdivision 8; 
135.19 	and direct expenditures by state agencies are projected to be less than the amount required 
135.20 	to meet federal special education maintenance of effort, the reimbursement percentages 
135.21 	for excess cost aid under section 125A.79, subdivision 5, must be increased as required to 
135.22 	ensure that the additional amount required to meet federal special education maintenance of 
135.23 	effort is added to the state total special education aid in section 125A.76, subdivision 4 2b.
135.24 	(b) If, on the basis of a forecast of general fund revenues and expenditures under 
135.25 	section 16A.103, expenditures in the programs in paragraph (a) are projected to be greater 
135.26 	than previously forecast for an enacted budget, and an addition to state total special 
135.27 	education aid has been made under paragraph (a), the state total special education aid 
135.28 	must be reduced by the lesser of the amount of the expenditure increase or the amount 
135.29 	previously added to state total special education aid in section 125A.76, subdivision 4 2b.
135.30 	(c) For the purpose of this section, "previously forecast for an enacted budget" means 
135.31 	the allocation of funding for these programs in the most recent forecast of general fund 
135.32 	revenues and expenditures or the act appropriating money for these programs, whichever 
135.33 	occurred most recently. It does not include planning estimates for a future biennium.
135.34 	(d) If the amount of special education aid is adjusted in accordance with this 
135.35 	subdivision, the commissioner of education shall notify the chairs of the legislative 
136.1 	committees having jurisdiction over kindergarten through grade 12 education regarding 
136.2 	the amount of the adjustment and provide an explanation of the federal maintenance of 
136.3 	effort requirements.

136.4 	EFFECTIVE DATE. This section is effective for fiscal year 2016 and later.

136.5 	Sec. 23. Minnesota Statutes 2012, section 125A.78, subdivision 2, is amended to read:
136.6 		Subd. 2.Initial aid adjustment. For the fiscal year after approval of a district's 
136.7 	application, and thereafter, the special education initial aid under section 125A.76, 
136.8 	subdivision 1, must be computed based on activities defined as reimbursable under 
136.9 	Department of Education rules for special education and nonspecial education students, 
136.10 	and additional activities as detailed and approved by the commissioner.

136.11 	EFFECTIVE DATE. This section is effective for fiscal year 2016 and later.

136.12 	Sec. 24. Minnesota Statutes 2012, section 125A.79, subdivision 1, is amended to read:
136.13 		Subdivision 1.Definitions. For the purposes of this section, the definitions in this 
136.14 	subdivision apply.
136.15 	(a) "Unreimbursed old formula special education cost expenditures" means the 
136.16 	sum of the following:
136.17 	(1) old formula special education expenditures for teachers' salaries, contracted 
136.18 	services, supplies, equipment, and transportation services eligible for revenue under 
136.19 	section 125A.76 for the prior fiscal year; plus minus
136.20 	(2) expenditures for tuition bills received under sections 125A.03 to 125A.24 and 
136.21 	125A.65 for services eligible for revenue under section 125A.76, subdivision 2; minus
136.22 	(3) revenue for teachers' salaries, contracted services, supplies, equipment, and 
136.23 	transportation services special education initial aid under section 125A.76; minus, 
136.24 	subdivision 2a; minus
136.25 	(3) the amount of general education revenue and referendum equalization aid for the 
136.26 	prior fiscal year attributable to pupils receiving special instruction and services outside the 
136.27 	regular classroom for more than 60 percent of the school day for the portion of time the 
136.28 	pupils receive special instruction and services outside the regular classroom, excluding 
136.29 	portions attributable to district and school administration, district support services, 
136.30 	operations and maintenance, capital expenditures, and pupil transportation.
136.31 	(4) tuition receipts under sections 125A.03 to 125A.24 and 125A.65 for services 
136.32 	eligible for revenue under section 125A.76, subdivision 2.
136.33 	(b) "Unreimbursed nonfederal special education expenditures" means:
137.1 	(1) nonfederal special education expenditures for the prior fiscal year; minus
137.2 	(2) special education initial aid under section 125A.76, subdivision 2a; minus
137.3 	(3) the amount of general education revenue and referendum equalization aid for the 
137.4 	prior fiscal year attributable to pupils receiving special instruction and services outside the 
137.5 	regular classroom for more than 60 percent of the school day for the portion of time the 
137.6 	pupils receive special instruction and services outside of the regular classroom, excluding 
137.7 	portions attributable to district and school administration, district support services, 
137.8 	operations and maintenance, capital expenditures, and pupil transportation.
137.9 	(c) "General revenue" for a school district means the sum of the general education 
137.10 	revenue according to section 126C.10, subdivision 1, excluding alternative teacher 
137.11 	compensation revenue, minus transportation sparsity revenue minus total operating 
137.12 	capital revenue. "General revenue" for a charter school means the sum of the general 
137.13 	education revenue according to section 124D.11, subdivision 1, and transportation revenue 
137.14 	according to section 124D.11, subdivision 2, excluding alternative teacher compensation 
137.15 	revenue, minus referendum equalization aid minus transportation sparsity revenue minus 
137.16 	operating capital revenue.
137.17 	(c) "Average daily membership" has the meaning given it in section 126C.05.
137.18 	(d) "Program growth factor" means 1.02 for fiscal year 2012 and later.

137.19 	EFFECTIVE DATE. This section is effective for fiscal year 2016 and later.

137.20 	Sec. 25. Minnesota Statutes 2012, section 125A.79, subdivision 5, is amended to read:
137.21 		Subd. 5.Initial excess cost aid. For fiscal years 2008 2016 and later, a district's 
137.22 	initial excess cost aid equals the greater of:
137.23 	(1) 75 50 percent of the difference between (i) the district's unreimbursed nonfederal
137.24 	 special education cost expenditures and (ii) 4.36 6.0 percent of the district's general 
137.25 	revenue; or
137.26 	(2) 60 percent of the difference between (i) the district's unreimbursed old formula 
137.27 	special education expenditures and (ii) 3.0 percent of the district's general revenue; or
137.28 	(2) (3) zero.

137.29 	EFFECTIVE DATE. This section is effective for fiscal year 2016 and later.

137.30 	Sec. 26. SPECIAL EDUCATION CASE LOADS TASK FORCE.
 137.31 		Subdivision 1.Members. The commissioner shall establish and appoint a special 
137.32 	education case loads task force consisting of at least ten members who will provide equal 
138.1 	representation from school districts, including special education teachers, and advocacy 
138.2 	organizations, including parents of children with disabilities.
138.3 		Subd. 2.Duties. The special education case loads task force shall develop 
138.4 	recommendations for the appropriate numbers of students with disabilities that may be 
138.5 	assigned to a teacher both with and without paraprofessional support in the classroom and 
138.6 	for cost-effective and efficient strategies and structures for improving student outcomes.
138.7 		Subd. 3.Report. The task force must submit a report by February 15, 2014, to the 
138.8 	education policy and finance committees of the legislature recommending appropriate 
138.9 	case loads for teachers of school-age children in all federal settings, including educational 
138.10 	service alternatives, and for early childhood special education and program alternatives.
138.11 		Subd. 4.Expiration. The task force expires February 16, 2014.

138.12 	Sec. 27. RULEMAKING AUTHORITY.
 138.13 	The commissioner of education shall use the expedited rulemaking process in 
138.14 	Minnesota Statutes, section 14.389, to amend Minnesota Rules related to providing 
138.15 	special education under Part C of the Individuals with Disabilities Education Act. The 
138.16 	commissioner shall amend the rules to conform to new federal regulations in Code 
138.17 	of Federal Regulations, title 34, part 303, including definitions of and procedures for 
138.18 	evaluation and assessment, including assessment of the child and family, initial evaluation 
138.19 	and assessment, the use of native language, the use of informed clinical opinion as an 
138.20 	independent basis to establish eligibility, and transition of a toddler from Part C consistent 
138.21 	with Code of Federal Regulations, title 34, sections 303.24, 303.25, and 303.321, only 
138.22 	to the extent necessary to avoid loss of federal funds. The authority to use the expedited 
138.23 	process to amend rules specified in this section expires July 1, 2014. Rule amendments 
138.24 	adopted under the expedited process before that date remain in effect unless further 
138.25 	amended under the rulemaking procedures in Minnesota Statutes, chapter 14.

138.26 	Sec. 28. APPROPRIATIONS.
 138.27 		Subdivision 1.Department of Education. The sums indicated in this section are 
138.28 	appropriated from the general fund to the Department of Education for the fiscal years 
138.29 	designated.
138.30 		Subd. 2.Special education; regular. For special education aid under Minnesota 
138.31 	Statutes, section 125A.75:

138.32		$
	910,153,000
	.....
	2014
	
138.33		$
	959,018,000
	.....
	2015
	
139.1 	The 2014 appropriation includes $118,232,000 for 2013 and $791,921,000 for 2014.
139.2 	The 2015 appropriation includes $124,654,000 for 2014 and $834,364,000 for 2015.
139.3 		Subd. 3.Aid for children with disabilities. For aid under Minnesota Statutes, 
139.4 	section 125A.75, subdivision 3, for children with disabilities placed in residential facilities 
139.5 	within the district boundaries for whom no district of residence can be determined:

139.6		$
	1,655,000
	.....
	2014
	
139.7		$
	1,752,000
	.....
	2015
	
139.8 	If the appropriation for either year is insufficient, the appropriation for the other 
139.9 	year is available.
139.10 		Subd. 4.Travel for home-based services. For aid for teacher travel for home-based 
139.11 	services under Minnesota Statutes, section 125A.75, subdivision 1:

139.12		$
	345,000
	.....
	2014
	
139.13		$
	355,000
	.....
	2015
	
139.14 	The 2014 appropriation includes $45,000 for 2013 and $300,000 for 2014.
139.15 	The 2015 appropriation includes $47,000 for 2014 and $308,000 for 2015.
139.16 		Subd. 5.Special education; excess costs. For excess cost aid under Minnesota 
139.17 	Statutes, section 125A.79, subdivision 7:

139.18		$
	118,639,000
	.....
	2014
	
139.19		$
	121,919,000
	.....
	2015
	
139.20 	The 2014 appropriation includes $42,030,000 for 2013 and $76,609,000 for 2014.
139.21 	The 2015 appropriation includes $43,211,000 for 2014 and $78,708,000 for 2015.
139.22 		Subd. 6.Court-placed special education revenue. For reimbursing serving school 
139.23 	districts for unreimbursed eligible expenditures attributable to children placed in the serving 
139.24 	school district by court action under Minnesota Statutes, section 125A.79, subdivision 4:

139.25		$
	54,000
	.....
	2014
	
139.26		$
	55,000
	.....
	2015
	
139.27 		Subd. 7.Special education out-of-state tuition. For special education out-of-state 
139.28 	tuition according to Minnesota Statutes, section 125A.79, subdivision 8:

139.29		$
	250,000
	.....
	2014
	
139.30		$
	250,000
	.....
	2015

139.31 	Sec. 29.  REPEALER.
 140.1 	Minnesota Statutes 2012, sections 124D.454, subdivisions 3, 10, and 11; 125A.35, 
140.2 	subdivisions 4 and 5; 125A.76, subdivisions 2, 4, 5, and 7; and 125A.79, subdivisions 6 
140.3 	and 7, are repealed for fiscal year 2016 and later.

140.4 	ARTICLE 6
140.5 	FACILITIES AND TECHNOLOGY

140.6 	Section 1. Minnesota Statutes 2012, section 123B.54, is amended to read:
140.7 	123B.54 DEBT SERVICE APPROPRIATION.
140.8 	(a) $21,727,000 in fiscal year 2014 and $24,201,000 in fiscal year 2015 and later 
140.9 	are The amount necessary to make debt service equalization aid payments under section 
140.10 	123B.53 is annually appropriated from the general fund to the commissioner of education 
140.11 	for payment of debt service equalization aid under section 123B.53.
140.12 	(b) The appropriations in paragraph (a) must be reduced by the amount of any 
140.13 	money specifically appropriated for the same purpose in any year from any state fund.

140.14 	Sec. 2. Minnesota Statutes 2012, section 128D.11, subdivision 3, is amended to read:
140.15 		Subd. 3.No election. Subject to the provisions of subdivisions 7 to 10, the school 
140.16 	district may also by a two-thirds majority vote of all the members of its board of education 
140.17 	and without any election by the voters of the district, issue and sell in each calendar year 
140.18 	general obligation bonds of the district in an amount not to exceed 5-1/10 per cent of the 
140.19 	net tax capacity of the taxable property in the district (plus, for calendar years 1990 to 
140.20 	2003, an amount not to exceed $7,500,000, and for calendar years year 2004 to 2016 and 
140.21 	later, an amount not to exceed $15,000,000; with an additional provision that any amount 
140.22 	of bonds so authorized for sale in a specific year and not sold can be carried forward and 
140.23 	sold in the year immediately following).

140.24 	EFFECTIVE DATE. This section is effective July 1, 2013.

140.25 	Sec. 3. Laws 2007, chapter 146, article 4, section 12, is amended to read:
140.26 	Sec. 12. BONDING AUTHORIZATION.
 140.27 	To provide funds for the acquisition or betterment of school facilities, Independent 
140.28 	School District No. 625, St. Paul, may by two-thirds majority vote of all the members of 
140.29 	the board of directors issue general obligation bonds in one or more series for calendar 
140.30 	years 2008 through 2016, as provided in this section. The aggregate principal amount of 
140.31 	any bonds issued under this section for each calendar year must not exceed $15,000,000. 
140.32 	Issuance of the bonds is not subject to Minnesota Statutes, section 475.58 or 475.59. 
141.1 	The bonds must otherwise be issued as provided in Minnesota Statutes, chapter 475. 
141.2 	The authority to issue bonds under this section is in addition to any bonding authority 
141.3 	authorized by Minnesota Statutes, chapter 123B, or other law. The amount of bonding 
141.4 	authority authorized under this section must be disregarded in calculating the bonding 
141.5 	limit of Minnesota Statutes, chapter 123B, or any other law other than Minnesota Statutes, 
141.6 	section 475.53, subdivision 4.

141.7 	EFFECTIVE DATE. This section is effective July 1, 2013.

141.8 	Sec. 4. CYRUS AND MORRIS SCHOOL DISTRICT CONSOLIDATION.
 141.9 		Subdivision 1.Purpose. The legislature finds that an orderly, voluntary 
141.10 	consolidation of Independent School Districts Nos. 611, Cyrus, and 769, Morris, promotes 
141.11 	the well-being of the students and increases educational efficiency in those school districts.
141.12 		Subd. 2.Remediation costs. Independent School District No. 611, Cyrus, may 
141.13 	identify all health and safety remediation costs related to the demolition of the Cyrus 
141.14 	school building and submit those amounts to the commissioner of education for approval. 
141.15 	Any approved costs may be included either in the district's health and safety plan or in the 
141.16 	bonding authority authorized under subdivision 3.
141.17 		Subd. 3.Facility bonds. Independent School District No. 611, Cyrus, may issue 
141.18 	general obligation bonds without an election under Minnesota Statutes, chapter 475, 
141.19 	in an amount approved by the commissioner of education for the costs associated with 
141.20 	demolishing the Cyrus school building. The bonds must be repaid within ten years of 
141.21 	issuance.
141.22 		Subd. 4.Reorganization operating debt determined. Independent School District 
141.23 	No. 611, Cyrus, must estimate its reorganization operating debt according to Minnesota 
141.24 	Statutes, section 123B.82, and submit that amount to the commissioner of education 
141.25 	for approval.
141.26 		Subd. 5.Reorganization operating debt bonds. Independent School District No. 
141.27 	611, Cyrus, may issue general obligation bonds without an election under Minnesota 
141.28 	Statutes, chapter 475, in an amount not to exceed the reorganization operating debt 
141.29 	approved by the commissioner of education under subdivision 2. The bonds must be 
141.30 	repaid within six years of issuance.
141.31 		Subd. 6.Repayment. The bonded debt issued under this section remains payable 
141.32 	by the taxable property located within the boundaries of former Independent School  
141.33 	District No. 611, Cyrus.

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

142.1 	Sec. 5. APPROPRIATIONS.
 142.2 		Subdivision 1.Department of Education. The sums indicated in this section are 
142.3 	appropriated from the general fund to the Department of Education for the fiscal years 
142.4 	designated.
142.5 		Subd. 2.Health and safety revenue. For health and safety aid according to 
142.6 	Minnesota Statutes, section 123B.57, subdivision 5:

142.7		$
	463,000
	.....
	2014
	
142.8		$
	434,000
	.....
	2015
	
142.9 	The 2014 appropriation includes $26,000 for 2013 and $437,000 for 2014.
142.10 	The 2015 appropriation includes $68,000 for 2014 and $366,000 for 2015.
142.11 		Subd. 3.Debt service equalization. For debt service aid according to Minnesota 
142.12 	Statutes, section 123B.53, subdivision 6:

142.13		$
	19,083,000
	.....
	2014
	
142.14		$
	25,046,000
	.....
	2015
	
142.15 	The 2014 appropriation includes $2,397,000 for 2013 and $16,686,000 for 2014.
142.16 	The 2015 appropriation includes $2,626,000 for 2014 and $22,420,000 for 2015.
142.17 		Subd. 4.Alternative facilities bonding aid. For alternative facilities bonding aid, 
142.18 	according to Minnesota Statutes, section 123B.59, subdivision 1:

142.19		$
	19,287,000
	.....
	2014
	
142.20		$
	19,287,000
	.....
	2015
	
142.21 	The 2014 appropriation includes $2,623,000 for 2013 and $16,664,000 for 2014.
142.22 	The 2015 appropriation includes $2,623,000 for 2014 and $16,664,000 for 2015.
142.23 		Subd. 5.Equity in telecommunications access. For equity in telecommunications 
142.24 	access:

142.25		$
	3,750,000
	.....
	2014
	
142.26		$
	3,750,000
	.....
	2015
	
142.27 	If the appropriation amount is insufficient, the commissioner shall reduce the 
142.28 	reimbursement rate in Minnesota Statutes, section 125B.26, subdivisions 4 and 5, and the 
142.29 	revenue for fiscal years 2014 and 2015 shall be prorated.
142.30 	Any balance in the first year does not cancel but is available in the second year.
142.31 		Subd. 6.Deferred maintenance aid. For deferred maintenance aid, according to 
142.32 	Minnesota Statutes, section 123B.591, subdivision 4:

143.1		$
	3,564,000
	.....
	2014
	
143.2		$
	3,731,000
	.....
	2015
	
143.3 	The 2014 appropriation includes $456,000 for 2013 and $3,108,000 for 2014.
143.4 	The 2015 appropriation includes $489,000 for 2014 and $3,242,000 for 2015.

143.5 	ARTICLE 7
143.6 	NUTRITION; LIBRARIES; ACCOUNTING

143.7 	Section 1. Minnesota Statutes 2012, section 124D.111, subdivision 1, is amended to 
143.8 	read:
143.9 		Subdivision 1.School lunch aid computation. Each school year, the state must pay 
143.10 	participants in the national school lunch program the amount of 12 13 cents for each full 
143.11 	paid, reduced reduced-price, and free student lunch served to students.

143.12 	EFFECTIVE DATE. This section is effective July 1, 2013, for aid payments for 
143.13 	fiscal year 2014 and later.

143.14 	Sec. 2. Minnesota Statutes 2012, section 124D.119, is amended to read:
143.15 	124D.119 SUMMER FOOD SERVICE REPLACEMENT AID.
143.16 	States State funds are available to compensate department-approved summer food 
143.17 	program sponsors for reduced federal operating reimbursement rates under Public Law 
143.18 	104-193, the federal summer food service program. A sponsor is eligible for summer food 
143.19 	service replacement aid equal to the sum of the following amounts:. Reimbursement shall 
143.20 	be made on December 15 based on total meals served by each sponsor from the end of the 
143.21 	school year to the beginning of the next school year on a pro rata basis. 
143.22 	(1) for breakfast service, up to four cents per breakfast served by the sponsor during 
143.23 	the current program year;
143.24 	(2) for lunch or supper service, up to 14 cents per lunch or supper served by the 
143.25 	sponsor during the current program year; and
143.26 	(3) for supplement service, up to ten cents per supplement served by the sponsor 
143.27 	during the current program year.

143.28 	Sec. 3. Minnesota Statutes 2012, section 134.32, is amended to read:
143.29 	134.32 GRANT AUTHORIZATION; TYPES OF GRANTS AND AID.
143.30 		Subdivision 1.Provision of grants. The department shall provide the grants and aid 
143.31 	specified in this section from any available state, federal, or other funds.
144.1 		Subd. 3.Regional library basic system support grants aid. It shall provide 
144.2 	regional library basic system support grantsaid to regional public library systems which 
144.3 	meet the requirements of section 134.34, to assist those systems in providing basic system 
144.4 	services.
144.5 		Subd. 4.Special project grants. It may provide special project grants to assist 
144.6 	innovative and experimental library programs including, but not limited to, special 
144.7 	services for American Indians and the Spanish-speaking, delivery of library materials to 
144.8 	homebound persons, other extensions of library services to persons without access to 
144.9 	libraries and projects to strengthen and improve library services.
144.10 		Subd. 5.Interlibrary exchange grants. It may provide grants for interlibrary 
144.11 	exchange of books, periodicals, resource material, reference information and the expenses 
144.12 	incident to the sharing of library resources and materials, including planning, development 
144.13 	and operating grants to multicounty, multitype library systems.
144.14 		Subd. 6.Library service grants. It may provide grants for the improvement of 
144.15 	library services at welfare and corrections institutions and for library service for the blind 
144.16 	and physically disabled.
144.17 		Subd. 7.Construction or remodeling grants. It may provide grants for 
144.18 	construction or remodeling of library facilities from any state and federal funds specifically 
144.19 	appropriated for this purpose.
144.20 		Subd. 8.Rulemaking. (a) The commissioner shall promulgate rules consistent 
144.21 	with sections 134.32 to 134.355 governing:
144.22 	(1) applications for these grants and aid;
144.23 	(2) computation formulas for determining the amounts of establishment grants and 
144.24 	regional library basic system support grants aid; and
144.25 	(3) eligibility criteria for grants and aid.
144.26 	(b) To the extent allowed under federal law, a construction grant applicant, in 
144.27 	addition to the points received under Minnesota Rules, part 3530.2632, shall receive an 
144.28 	additional five points if the construction grant is for a project combining public library 
144.29 	services and school district library services at a single location.

144.30 	Sec. 4. Minnesota Statutes 2012, section 134.34, is amended to read:
144.31 	134.34 REGIONAL LIBRARY BASIC SYSTEM SUPPORT GRANTS AID; 
144.32 	REQUIREMENTS.
144.33 		Subdivision 1.Local support levels. (a) A Regional library basic system support 
144.34 	grantaid shall be madeprovided to any regional public library system where there are at 
144.35 	least three participating counties and where each participating city and county is providing 
145.1 	for public library service support the lesser of (a) an amount equivalent to .82 percent of 
145.2 	the average of the adjusted net tax capacity of the taxable property of that city or county, 
145.3 	as determined by the commissioner of revenue for the second, third, and fourth year 
145.4 	preceding that calendar year or (b) a per capita amount calculated under the provisions of 
145.5 	this subdivision. The per capita amount is established for calendar year 1993 as $7.62. 
145.6 	In succeeding calendar years, the per capita amount shall be increased by a percentage 
145.7 	equal to one-half of the percentage by which the total state adjusted net tax capacity of 
145.8 	property as determined by the commissioner of revenue for the second year preceding 
145.9 	that calendar year increases over that total adjusted net tax capacity for the third year 
145.10 	preceding that calendar year.
145.11 	(b) The minimum level of support specified under this subdivision or subdivision 4 
145.12 	shall be certified annually to the participating cities and counties by the Department of 
145.13 	Education. If a city or county chooses to reduce its local support in accordance with 
145.14 	subdivision 4, paragraph (b) or (c), it shall notify its regional public library system. The 
145.15 	regional public library system shall notify the Department of Education that a revised 
145.16 	certification is required. The revised minimum level of support shall be certified to the 
145.17 	city or county by the Department of Education.
145.18 	(c) A city which is a part of a regional public library system shall not be required to 
145.19 	provide this level of support if the property of that city is already taxable by the county for 
145.20 	the support of that regional public library system. In no event shall the Department of 
145.21 	Education require any city or county to provide a higher level of support than the level 
145.22 	of support specified in this section in order for a system to qualify for a regional library 
145.23 	basic system support grant aid. This section shall not be construed to prohibit a city or 
145.24 	county from providing a higher level of support for public libraries than the level of 
145.25 	support specified in this section.
145.26 		Subd. 3.Regional designation. Regional library basic system support grantsaid 
145.27 	shall be madeprovided only to those regional public library systems officially designated 
145.28 	by the commissioner of education as the appropriate agency to strengthen, improve and 
145.29 	promote public library services in the participating areas. The commissioner of education 
145.30 	shall designate no more than one such regional public library system located entirely within 
145.31 	any single development region existing under sections 462.381 to 462.398 or chapter 473.
145.32 		Subd. 4.Limitation. (a) For calendar year 2010 and later, a regional library basic 
145.33 	system support grantaid shall not be madeprovided to a regional public library system 
145.34 	for a participating city or county which decreases the dollar amount provided for support 
145.35 	for operating purposes of public library service below the amount provided by it for the 
145.36 	second, or third preceding year, whichever is less. For purposes of this subdivision and 
146.1 	subdivision 1, any funds provided under section 473.757, subdivision 2, for extending 
146.2 	library hours of operation shall not be considered amounts provided by a city or county for 
146.3 	support for operating purposes of public library service. This subdivision shall not apply 
146.4 	to participating cities or counties where the adjusted net tax capacity of that city or county 
146.5 	has decreased, if the dollar amount of the reduction in support is not greater than the dollar 
146.6 	amount by which support would be decreased if the reduction in support were made in 
146.7 	direct proportion to the decrease in adjusted net tax capacity.
146.8 	(b) For calendar year 2009 and later, in any calendar year in which a city's or 
146.9 	county's aid under sections 477A.011 to 477A.014 or credit reimbursement under section 
146.10 	273.1384 is reduced after the city or county has certified its levy payable in that year, it 
146.11 	may reduce its local support by the lesser of:
146.12 	(1) ten percent; or
146.13 	(2) a percent equal to the ratio of the aid and credit reimbursement reductions to the 
146.14 	city's or county's revenue base, based on aids certified for the current calendar year. For 
146.15 	calendar year 2009 only, the reduction under this paragraph shall be based on 2008 aid and 
146.16 	credit reimbursement reductions under the December 2008 unallotment, as well as any 
146.17 	aid and credit reimbursement reductions in calendar year 2009. For pay 2009 only, the 
146.18 	commissioner of revenue will calculate the reductions under this paragraph and certify 
146.19 	them to the commissioner of education within 15 days of May 17, 2009.
146.20 	(c) For taxes payable in 2010 and later, in any payable year in which the total 
146.21 	amounts certified for city or county aids under sections 477A.011 to 477A.014 are less 
146.22 	than the total amounts paid under those sections in the previous calendar year, a city or 
146.23 	county may reduce its local support by the lesser of:
146.24 	(1) ten percent; or
146.25 	(2) a percent equal to the ratio of:
146.26 	(i) the difference between (A) the sum of the aid it was paid under sections 
146.27 	477A.011 to 477A.014 and the credit reimbursement it received under section 273.1384 
146.28 	in the previous calendar year and (B) the sum of the aid it is certified to be paid in the 
146.29 	current calendar year under sections 477A.011 to 477A.014 and the credit reimbursement 
146.30 	estimated to be paid under section 273.1384; to
146.31 	(ii) its revenue base for the previous year, based on aids actually paid in the previous 
146.32 	calendar year. The commissioner of revenue shall calculate the percent aid cut for each 
146.33 	county and city under this paragraph and certify the percentage cuts to the commissioner 
146.34 	of education by August 1 of the year prior to the year in which the reduced aids and 
146.35 	credit reimbursements are to be paid. The percentage of reduction related to reductions 
147.1 	to credit reimbursements under section 273.1384 shall be based on the best estimation 
147.2 	available as of July 30.
147.3 	(d) Notwithstanding paragraph (a), (b), or (c), no city or county shall reduce its 
147.4 	support for public libraries below the minimum level specified in subdivision 1.
147.5 	(e) For purposes of this subdivision, "revenue base" means the sum of:
147.6 	(1) its levy for taxes payable in the current calendar year, including the levy on 
147.7 	the fiscal disparities distribution under section 276A.06, subdivision 3, paragraph (a), 
147.8 	or 473F.08, subdivision 3, paragraph (a);
147.9 	(2) its aid under sections 477A.011 to 477A.014 in the current calendar year; and
147.10 	(3) its taconite aid in the current calendar year under sections 298.28 and 298.282.
147.11 		Subd. 7.Proposed budget. In addition to the annual report required in section 
147.12 	134.13, a regional public system that receives a basic system support grantaid under this 
147.13 	section must provide each participating county and city with its proposed budget for 
147.14 	the next year.

147.15 	Sec. 5. Minnesota Statutes 2012, section 134.351, subdivision 3, is amended to read:
147.16 		Subd. 3.Agreement. In order for a multicounty, multitype library system to qualify 
147.17 	for a planning, development or operating grant aid pursuant to sections 134.353 and 
147.18 	134.354, each participating library in the system shall adopt an organizational agreement 
147.19 	providing for the following:
147.20 	(a) Sharing of resources among all participating libraries;
147.21 	(b) Long-range planning for cooperative programs;
147.22 	(c) The development of a delivery system for services and programs;
147.23 	(d) The development of a bibliographic database; and
147.24 	(e) A communications system among all cooperating libraries.

147.25 	Sec. 6. Minnesota Statutes 2012, section 134.351, subdivision 7, is amended to read:
147.26 		Subd. 7.Reports. Each multicounty, multitype system receiving a grant aid
147.27 	 pursuant to section 134.353 or 134.354 shall provide an annual progress report to the 
147.28 	Department of Education.

147.29 	Sec. 7. Minnesota Statutes 2012, section 134.353, is amended to read:
147.30 	134.353 MULTICOUNTY, MULTITYPE LIBRARY SYSTEM 
147.31 	DEVELOPMENT GRANT AID.
147.32 	The commissioner of education may provide development grants aid to multicounty, 
147.33 	multitype library systems. In awarding a development grant aid, the commissioner shall 
148.1 	consider the extra costs incurred in systems located in sparsely populated and large 
148.2 	geographic regions.

148.3 	Sec. 8. Minnesota Statutes 2012, section 134.354, is amended to read:
148.4 	134.354 MULTICOUNTY, MULTITYPE LIBRARY SYSTEM OPERATING 
148.5 	GRANT AID.
148.6 	The commissioner of education may provide operating grants aid to multicounty, 
148.7 	multitype library systems. In awarding an operating grant aid, the commissioner shall 
148.8 	consider the extra costs incurred in systems located in sparsely populated and large 
148.9 	geographic areas.

148.10 	Sec. 9. Minnesota Statutes 2012, section 134.355, subdivision 1, is amended to read:
148.11 		Subdivision 1.Appropriations. Basic system support grantsaid and regional library 
148.12 	telecommunications aid provide the appropriations for the basic regional library system.

148.13 	Sec. 10. Minnesota Statutes 2012, section 134.355, subdivision 2, is amended to read:
148.14 		Subd. 2.Grant application. Any regional public library system which qualifies 
148.15 	according to the provisions of section 134.34 may apply for an annual grantaid for 
148.16 	regional library basic system support. Regional public library districts under section 
148.17 	134.201 may not compensate board members using grantaid funds. The amount of each 
148.18 	grantaid for each fiscal year shall be calculated as provided in this section.

148.19 	Sec. 11. Minnesota Statutes 2012, section 134.355, subdivision 3, is amended to read:
148.20 		Subd. 3.Per capita distribution. Fifty-seven and one-half percent of the available 
148.21 	grantaid funds shall be distributed to provide all qualifying systems an equal amount 
148.22 	per capita. Each system's allocation pursuant to this subdivision shall be based on the 
148.23 	population it serves.

148.24 	Sec. 12. Minnesota Statutes 2012, section 134.355, subdivision 4, is amended to read:
148.25 		Subd. 4.Per square mile distribution. Twelve and one-half percent of the 
148.26 	available grantaid funds shall be distributed to provide all qualifying systems an equal 
148.27 	amount per square mile. Each system's allocation pursuant to this subdivision shall be 
148.28 	based on the area it serves.

148.29 	Sec. 13. Minnesota Statutes 2012, section 134.355, subdivision 5, is amended to read:
149.1 		Subd. 5.Base grantaid distribution. Five percent of the available grantaid funds 
149.2 	shall be paid to each system as a base grantaid for basic system services.

149.3 	Sec. 14. Minnesota Statutes 2012, section 134.355, subdivision 6, is amended to read:
149.4 		Subd. 6.Adjusted net tax capacity per capita distribution. Twenty-five percent 
149.5 	of the available grantaid funds shall be distributed to regional public library systems based 
149.6 	upon the adjusted net tax capacity per capita for each member county or participating 
149.7 	portion of a county as calculated for the second year preceding the fiscal year for which 
149.8 	the grantaid is made provided. Each system's entitlement shall be calculated as follows:
149.9 	(a) Multiply the adjusted net tax capacity per capita for each county or participating 
149.10 	portion of a county by .0082.
149.11 	(b) Add sufficient grantaid funds that are available under this subdivision to raise 
149.12 	the amount of the county or participating portion of a county with the lowest value 
149.13 	calculated according to paragraph (a) to the amount of the county or participating portion 
149.14 	of a county with the next highest value calculated according to paragraph (a). Multiply the 
149.15 	amount of the additional grantaid funds by the population of the county or participating 
149.16 	portion of a county.
149.17 	(c) Continue the process described in paragraph (b) by adding sufficient grantaid 
149.18 	funds that are available under this subdivision to the amount of a county or participating 
149.19 	portion of a county with the next highest value calculated in paragraph (a) to raise it and 
149.20 	the amount of counties and participating portions of counties with lower values calculated 
149.21 	in paragraph (a) up to the amount of the county or participating portion of a county 
149.22 	with the next highest value, until reaching an amount where funds available under this 
149.23 	subdivision are no longer sufficient to raise the amount of a county or participating portion 
149.24 	of a county and the amount of counties and participating portions of counties with lower 
149.25 	values up to the amount of the next highest county or participating portion of a county.
149.26 	(d) If the point is reached using the process in paragraphs (b) and (c) at which the 
149.27 	remaining grantaid funds under this subdivision are not adequate for raising the amount of 
149.28 	a county or participating portion of a county and all counties and participating portions of 
149.29 	counties with amounts of lower value to the amount of the county or participating portion 
149.30 	of a county with the next highest value, those funds are to be divided on a per capita basis 
149.31 	for all counties or participating portions of counties that received grantaid funds under 
149.32 	the calculation in paragraphs (b) and (c).

149.33 	Sec. 15. Minnesota Statutes 2012, section 134.36, is amended to read:
149.34 	134.36 RULES.
150.1 	The commissioner of education shall promulgate rules as necessary for 
150.2 	implementation of library grant and aid programs.

150.3 	Sec. 16. FUND TRANSFER; FISCAL YEARS 2014 AND 2015 ONLY.
 150.4 	(a) Notwithstanding Minnesota Statutes, section 123B.80, subdivision 3, for 
150.5 	fiscal years 2014 and 2015 only, the commissioner must approve a request for a fund 
150.6 	transfer if the transfer does not increase state aid obligations to the district or result in 
150.7 	additional property tax authority for the district. This section does not permit transfers 
150.8 	from the community service fund, the food service fund, or the reserved account for 
150.9 	staff development under section 122A.61.
150.10 	(b) A school board may approve a fund transfer under paragraph (a) only after 
150.11 	adopting a resolution stating the fund transfer will not diminish instructional opportunities 
150.12 	for students.

150.13 	EFFECTIVE DATE. This section is effective July 1, 2013.

150.14 	Sec. 17. SCHOOL PAYMENT SHIFTS.
 150.15 	For fiscal years 2014 and later, any increase in an aid entitlement for an aid program 
150.16 	subject to the aid payment shift must have a current year aid payment percent of 90. 
150.17 	For taxes payable in 2014 and later, no appropriations gains from a property tax early 
150.18 	recognition shift may be recognized on any change in school district levies.

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

150.20 	Sec. 18. APPROPRIATIONS.
 150.21 		Subdivision 1.Department of Education. The sums indicated in this section are 
150.22 	appropriated from the general fund to the Department of Education for the fiscal years 
150.23 	designated.
150.24 		Subd. 2.School lunch. For school lunch aid according to Minnesota Statutes, 
150.25 	section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

150.26		$
	13,513,000
	.....
	2014
	
150.27		$
	13,763,000
	.....
	2015
	
150.28 		Subd. 3.School breakfast. For traditional school breakfast aid under Minnesota 
150.29 	Statutes, section 124D.1158:

150.30		$
	5,711,000
	.....
	2014
	
150.31		$
	6,022,000
	.....
	2015
	
151.1 		Subd. 4.Kindergarten milk. For kindergarten milk aid under Minnesota Statutes, 
151.2 	section 124D.118:

151.3		$
	1,039,000
	.....
	2014
	
151.4		$
	1,049,000
	.....
	2015
	
151.5 		Subd. 5.Summer food service replacement aid. For summer food service 
151.6 	replacement aid under Minnesota Statutes, section 124D.119:

151.7		$
	150,000
	.....
	2014
	
151.8		$
	150,000
	.....
	2015
	
151.9 		Subd. 6.Basic system support. For basic system support grants under Minnesota 
151.10 	Statutes, section 134.355:

151.11		$
	13,570,000
	.....
	2014
	
151.12		$
	13,570,000
	.....
	2015
	
151.13 	The 2014 appropriation includes $1,845,000 for 2013 and $11,725,000 for 2014.
151.14 	The 2015 appropriation includes $1,845,000 for 2014 and $11,725,000 for 2015.
151.15 		Subd. 7.Multicounty, multitype library systems. For grants under Minnesota 
151.16 	Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:

151.17		$
	1,300,000
	.....
	2014
	
151.18		$
	1,300,000
	.....
	2015
	
151.19 	The 2014 appropriation includes $176,000 for 2013 and $1,124,000 for 2014.
151.20 	The 2015 appropriation includes $176,000 for 2014 and $1,124,000 for 2015.
151.21 		Subd. 8.Electronic library for Minnesota. For statewide licenses to online 
151.22 	databases selected in cooperation with the Minnesota Office of Higher Education for 
151.23 	school media centers, public libraries, state government agency libraries, and public 
151.24 	or private college or university libraries:

151.25		$
	900,000
	.....
	2014
	
151.26		$
	900,000
	.....
	2015
	
151.27 	Any balance in the first year does not cancel but is available in the second year.
151.28 		Subd. 9.Regional library telecommunications aid. For regional library 
151.29 	telecommunications aid under Minnesota Statutes, section 134.355:

151.30		$
	2,300,000
	.....
	2014
	
151.31		$
	2,300,000
	.....
	2015
	
151.32 	The 2014 appropriation includes $312,000 for 2013 and $1,988,000 for 2014.
151.33 	The 2015 appropriation includes $312,000 for 2014 and $1,988,000 for 2015.

152.1 	Sec. 19. REVISOR'S INSTRUCTION.
 152.2 	In Minnesota Statutes and Minnesota Rules, the revisor of statutes shall substitute 
152.3 	the term "Division of State Library Services" for "Library Development and Services," 
152.4 	"Office of Library Development and Services," or "LDS" where "LDS" stands for "Library 
152.5 	Development and Services." The revisor shall also make grammatical changes related 
152.6 	to the changes in terms.

152.7 	ARTICLE 8
152.8 	EARLY CHILDHOOD; SELF-SUFFICIENCY; LIFELONG LEARNING

152.9 	Section 1. Minnesota Statutes 2012, section 13.319, is amended by adding a 
152.10 	subdivision to read:
152.11 		Subd. 9.Early learning scholarships. Section 124D.143 governs data under the 
152.12 	early learning scholarship program.

152.13 	Sec. 2. [16F.01] MINNESOTA YOUTH COUNCIL COMMITTEE.
152.14 		Subdivision 1.Establishment and membership. The Minnesota Youth Council 
152.15 	Committee is established within and under the auspices of the Minnesota Alliance With 
152.16 	Youth. The committee consists of four members from each congressional district in 
152.17 	Minnesota and four members selected at-large. Members must be selected through an 
152.18 	application and interview process conducted by the Minnesota Alliance With Youth. In 
152.19 	making its appointments, the Minnesota Alliance With Youth should strive to ensure 
152.20 	gender and ethnic diversity in the committee's membership. Members must be between 
152.21 	the ages of 13 and 19 and serve two-year terms, except that one-half of the initial members 
152.22 	must serve a one-year term. Members may serve a maximum of two terms.
152.23 		Subd. 2.Duties. The Minnesota Youth Council Committee shall:
152.24 	(1) provide advice and recommendations to the legislature and the governor on 
152.25 	issues affecting youth;
152.26 	(2) serve as a liaison for youth around the state to the legislature and the governor; and
152.27 	(3) submit an annual report of the council's activities and goals.
152.28 		Subd. 3.Partnerships. The Minnesota Youth Council Committee shall partner with 
152.29 	nonprofits, the private sector, and educational resources to fulfill its duties.
152.30 		Subd. 4.Youth Council Committee in the legislature. (a) The Minnesota Youth 
152.31 	Council Committee shall meet at least twice each year during the regular session of the 
152.32 	legislature.
152.33 	(b) The committee may:
153.1 	(1) select introduced bills in the house of representatives and senate for consideration 
153.2 	for a public hearing before the committee;
153.3 	(2) propose youth legislation;
153.4 	(3) provide advisory opinions to the legislature on bills heard before the committee; 
153.5 	and
153.6 	(4) prepare a youth omnibus bill.
153.7 	(c) The leaders of the majority and minority parties of the house of representatives 
153.8 	and senate shall each appoint one legislator to serve as a legislative liaison to the 
153.9 	committee. Leadership of the house of representatives and senate, on rotating years, may 
153.10 	appoint a staff member to staff the committee.

153.11 	Sec. 3. [124D.143] EARLY LEARNING SCHOLARSHIPS.
153.12 		Subdivision 1.Early learning scholarships established. The Office of Early 
153.13 	Learning must oversee the early learning scholarship program in consultation with the 
153.14 	Minnesota Departments of Education, Human Services, and Health.
153.15 		Subd. 2.Duties. The Office of Early Learning shall administer the early learning 
153.16 	scholarship program, establish participation standards for children and their families, 
153.17 	develop criteria for qualifying providers based on section 124D.142, and contract for 
153.18 	administrative services as necessary with a resource and referral organization under 
153.19 	section 119B.19, or other nonprofit or public entity.
153.20 		Subd. 3.Definitions. (a) The terms defined in the subdivision apply to this section.
153.21 	(b) "Director" means the director of the Office of Early Learning.
153.22 	(c) "Eligible program" means a Head Start program under section 119A.50, school 
153.23 	readiness program under section 124D.15, or other school district child-based program 
153.24 	designed to provide early education services to children not yet in kindergarten, licensed 
153.25 	center-based child care program under chapter 245A, or licensed family child care 
153.26 	program under chapter 245A or other program providing early learning opportunities. 
153.27 	(d) "Income" has the meaning given in section 119B.011, subdivision 15. 
153.28 	(e) "Parent" means the parent or legal guardian of a child.
153.29 	(f) "Prospective program" means an eligible program that makes a commitment to 
153.30 	enhance its quality of education and care and demonstrates to the director's satisfaction 
153.31 	that the program is pursuing a program rating. For fiscal year 2016 and later, a prospective 
153.32 	program must cite a hardship or demonstrate a special circumstance as to why the program 
153.33 	is not yet ready to enter the rating process before the director may grant it eligibility.
153.34 	(g) "Rated program" means an eligible program that receives one, two, three, or four 
153.35 	stars under the quality rating and improvement system established in section 124D.142.
154.1 		Subd. 4.Participant eligibility. The parent of a child who will be at least three 
154.2 	years of age as of September 1 of the year of application is eligible to apply for an early 
154.3 	learning scholarship if the family's income is at or below 185 percent of the federal poverty 
154.4 	level. The director of the Office of Early Learning may specify the form and manner of 
154.5 	the application for a scholarship. The director may establish a method to determine family 
154.6 	income but a parent meets this requirement by documenting their child's identification 
154.7 	through another public funding eligibility process, including the free and reduced-price 
154.8 	lunch program, National School Lunch Act, United States Code, title 42, section 1751, part 
154.9 	210; Head Start under federal Improving Head Start for School Readiness Act of 2007; 
154.10 	Minnesota family investment program under chapter 256J; the Federal Supplemental 
154.11 	Nutrition Assistance Program; and child care assistance programs under chapter 119B and 
154.12 	no further information to verify income is required. Notwithstanding the other provisions 
154.13 	of this section, a parent under age 21 who is pursuing a high school or general education 
154.14 	equivalency diploma is eligible for an early learning scholarship if the parent has a child 
154.15 	age zero to five years old and meets the income eligibility guidelines in this subdivision.
154.16 		Subd. 5.Scholarship amount. The director annually shall determine the maximum 
154.17 	scholarship amounts based on the results of the rate survey conducted under section 
154.18 	119B.13, subdivision 1, paragraph (b), and may establish a range of scholarship amounts 
154.19 	taking into account the child's level of need and geographic location. The director shall 
154.20 	establish a scholarship amount schedule according to the eligible program's rating and 
154.21 	prospective programs under subdivision 3, paragraph (g). The scholarship amounts may 
154.22 	be designed to be layered around other assistance programs available to that child. The 
154.23 	director shall not consider local funds allocated to support an early learning program 
154.24 	when layering scholarships around other assistance programs. Eligible providers must be 
154.25 	notified of the scholarship allocations available in their geographic location.
154.26 		Subd. 6.Award of scholarships. (a) The director shall establish application 
154.27 	timelines and determine the schedule for awarding scholarships that meets operational 
154.28 	needs of eligible programs. The director may prioritize applications on factors including 
154.29 	family income, geographic location, whether the child's family is on a waiting list for a 
154.30 	publicly funded program providing early education or child care services, and the needs of 
154.31 	the child and that child's family. By March 15, eligible programs may notify the director of 
154.32 	the number of scholarship-eligible children who are eligible under subdivision 4, and who 
154.33 	have applied for enrollment in that program. To facilitate enrollment planning, by April 
154.34 	15, the director shall notify eligible programs that have provided enrollment information 
154.35 	under this paragraph of the scholarship status of each applicant. To the extent practicable 
154.36 	and taking into account family mobility, the scholarships must be awarded to eligible 
155.1 	recipients beginning April 15 of each year for a child's participation in a program starting 
155.2 	in July, August, or September of that year. Any siblings of a child who has been awarded a 
155.3 	scholarship under this section must be awarded a scholarship upon request provided the 
155.4 	sibling attends the same program. A child who has received a scholarship under this 
155.5 	section must continue to receive a scholarship until that child enrolls in kindergarten 
155.6 	or turns six years of age.
155.7 	(b) A three- or four-star rated program that has a waiting list of children eligible for 
155.8 	scholarships may notify the director of the program's desire to serve additional children in 
155.9 	order to accommodate scholarship recipients. The director may designate a predetermined 
155.10 	number of scholarship slots for that program and notify the program of that number.
155.11 	(c) A scholarship recipient may choose any available program and is not required to 
155.12 	enroll in a program with a predetermined number of slots.
155.13 	(d) A child who receives a scholarship who has not completed development 
155.14 	screening under sections 121A.16 to 121A.19 must complete that screening within 45 
155.15 	days of first attending an eligible program.
155.16 		Subd. 7.Scholarship recipient choice of programs. A scholarship recipient may 
155.17 	choose to apply to any rated program or prospective program for acceptance. If the 
155.18 	scholarship recipient has not been accepted and subsequently enrolled in a rated program 
155.19 	within ten months of receipt of the scholarship, the scholarship cancels and the recipient 
155.20 	must reapply in order to be eligible for another scholarship.
155.21 		Subd. 8.Building quality. For fiscal years 2014 and 2015 only, the director must 
155.22 	develop a streamlined process to encourage eligible programs to enter the rating program. 
155.23 	As a part of building quality in the system of providers, the director may grant a parent 
155.24 	authority to use a scholarship at a prospective program.
155.25 		Subd. 9.Provider reimbursement. The director may determine the form and 
155.26 	method of payment to the fiscal agent for each program serving a scholarship recipient. 
155.27 	The director may make quarterly payments on behalf of the scholarship recipient in 
155.28 	advance of the services provided to the child, or arrange other payment methods for 
155.29 	providers. The director may request information as necessary from providers to verify 
155.30 	scholarship payments.
155.31 		Subd. 10.Earned income calculation. Scholarships paid to providers on behalf 
155.32 	of eligible parents must not be counted as earned income for the purposes of medical 
155.33 	assistance, MinnesotaCare, Minnesota family investment program, diversionary work 
155.34 	program, child care assistance, or Head Start programs. Scholarships paid to providers on 
155.35 	behalf of eligible parents must not be considered child care funds for the purposes of the 
155.36 	child care assistance program under chapter 119B.
156.1 		Subd. 11.Collection and use of data. (a) To the extent available, the director may 
156.2 	collect data from participating programs on scholarship program recipients, including but 
156.3 	not limited to demographic, socioeconomic, participation, and assessment data.
156.4 	(b) Data on scholarship applicants and recipients are private data on individuals, as 
156.5 	defined in section 13.02, subdivision 12. Participating program providers may not disclose 
156.6 	a scholarship recipient's student identification number except as otherwise authorized by 
156.7 	law. A participating program provider is liable for damages resulting from its release of a 
156.8 	student identification number in a manner not authorized by law.
156.9 		Subd. 12.Report required. (a) The director, in consultation with the children's 
156.10 	cabinet, shall develop and implement a plan to publicize and increase parent awareness of 
156.11 	early learning scholarships. The director must report the results of the outreach efforts to 
156.12 	the legislature by January 15 of each year.
156.13 	(b) The director shall coordinate existing evaluation and assessment efforts and track 
156.14 	scholarship program participation to understand program outcomes. The director must 
156.15 	report to the legislature on the performance of the scholarship program by January 15, 
156.16 	2016, and each year thereafter.

156.17 	Sec. 4. Minnesota Statutes 2012, section 124D.531, subdivision 1, is amended to read:
156.18 		Subdivision 1.State total adult basic education aid. (a) The state total adult basic 
156.19 	education aid for fiscal year 2011 equals $44,419,000, plus any amount that is not paid 
156.20 	during the previous fiscal year as a result of adjustments under subdivision 4, paragraph 
156.21 	(a), or section 124D.52, subdivision 3. The state total adult basic education aid for later 
156.22 	fiscal years equals:
156.23 	(1) the state total adult basic education aid for the preceding fiscal year plus any 
156.24 	amount that is not paid for during the previous fiscal year, as a result of adjustments under 
156.25 	subdivision 4, paragraph (a), or section 124D.52, subdivision 3; times
156.26 	(2) the lesser of:
156.27 	(i) 1.02 1.03; or
156.28 	(ii) the average growth in state total contact hours over the prior ten program years.
156.29 	Beginning in fiscal year 2002, two percent of the state total adult basic education 
156.30 	aid must be set aside for adult basic education supplemental service grants under section 
156.31 	124D.522.
156.32 	(b) The state total adult basic education aid, excluding basic population aid, equals 
156.33 	the difference between the amount computed in paragraph (a), and the state total basic 
156.34 	population aid under subdivision 2.

157.1 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
157.2 	and later.

157.3 	Sec. 5. Laws 2011, First Special Session chapter 11, article 7, section 2, subdivision 8, 
157.4 	as amended by Laws 2012, chapter 239, article 3, section 4, is amended to read:
157.5 		Subd. 8.Early childhood education scholarships. For grants to early childhood 
157.6 	education scholarships for public or private early childhood preschool programs for 
157.7 	children ages 3 to 5:

157.8		$
	2,000,000
	.....
	2013
	
157.9 	(a) All children whose parents or legal guardians meet the eligibility requirements 
157.10 	of paragraph (b) established by the commissioner are eligible to receive early childhood 
157.11 	education scholarships under this section.
157.12 	(b) A parent or legal guardian is eligible for an early childhood education scholarship 
157.13 	if the parent or legal guardian:
157.14 	(1) has a child three or four years of age on September 1, beginning in calendar 
157.15 	year 2012; and
157.16 	(2)(i) has income equal to or less than 47 percent of the state median income in the 
157.17 	current calendar year; or
157.18 	(ii) can document their child's identification through another public funding 
157.19 	eligibility process, including the Free and Reduced Price Lunch Program, National School 
157.20 	Lunch Act, United States Code, title 42, section 1751, part 210; Head Start under federal 
157.21 	Improving Head Start for School Readiness Act of 2007; Minnesota family investment 
157.22 	program under chapter 256J; and child care assistance programs under chapter 119B.
157.23 	 Early childhood scholarships may not be counted as earned income for the purposes of 
157.24 	medical assistance, MinnesotaCare, Minnesota family investment program, child care 
157.25 	assistance, or Head Start programs.
157.26 	Each year, if this appropriation is insufficient to provide early childhood education 
157.27 	scholarships to all eligible children, the Department of Education shall make scholarships 
157.28 	available on a first-come, first-served basis.
157.29 	The commissioner of education shall submit a written report to the education 
157.30 	committees of the legislature by January 15, 2012, describing its plan for implementation 
157.31 	of scholarships under this subdivision for the 2012-2013 school year.
157.32 	Any balance in the first year does not cancel but is available in the second year.
157.33 	The base for this program is $3,000,000 each year.

158.1 	EFFECTIVE DATE. This section is effective the day following final enactment 
158.2 	and applies to early learning scholarships received during fiscal year 2013.

158.3 	Sec. 6. FISCAL YEAR 2014 ONLY.
 158.4 	Notwithstanding the timelines in section 2, for fiscal year 2014 only, the director 
158.5 	shall establish an expedited process to award scholarships to eligible recipients attending 
158.6 	three- or four-star rated programs to accommodate those eligible programs with fall 
158.7 	enrollment deadlines.

158.8 	Sec. 7. APPROPRIATIONS.
 158.9 		Subdivision 1.Department of Education. The sums indicated in this section are 
158.10 	appropriated from the general fund to the Department of Education for the fiscal years 
158.11 	designated.
158.12 		Subd. 2.School readiness. For revenue for school readiness programs under 
158.13 	Minnesota Statutes, sections 124D.15 and 124D.16:

158.14		$
	10,095,000
	.....
	2014
	
158.15		$
	10,159,000
	.....
	2015
	
158.16 	The 2014 appropriation includes $1,372,000 for 2013 and $8,723,000 for 2014.
158.17 	The 2015 appropriation includes $1,372,000 for 2014 and $8,787,000 for 2015.
158.18 		Subd. 3.Early childhood family education aid. For early childhood family 
158.19 	education aid under Minnesota Statutes, section 124D.135:

158.20		$
	22,078,000
	.....
	2014
	
158.21		$
	22,425,000
	.....
	2015
	
158.22 	The 2014 appropriation includes $3,008,000 for 2013 and $19,070,000 for 2014.
158.23 	The 2015 appropriation includes $3,001,000 for 2014 and $19,424,000 for 2015.
158.24 		Subd. 4.Health and developmental screening aid. For health and developmental 
158.25 	screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

158.26		$
	3,421,000
	.....
	2014
	
158.27		$
	3,344,000
	.....
	2015
	
158.28 	The 2014 appropriation includes $474,000 for 2013 and $2,947,000 for 2014.
158.29 	The 2015 appropriation includes $463,000 for 2014 and $2,881,000 for 2015.
158.30 		Subd. 5.Head Start program. For Head Start programs under Minnesota Statutes, 
158.31 	section 119A.52:

159.1		$
	22,171,000
	.....
	2014
	
159.2		$
	20,100,000
	.....
	2015
	
159.3 	For the fiscal year 2014 appropriation only, the lesser of 50 percent of the actual 
159.4 	loss of revenue to sequestration or $2,071,000 must be used to replace a portion of the 
159.5 	federal funds lost to sequestration and must be distributed proportionate to the loss among 
159.6 	all programs.
159.7 		Subd. 6.Educate parents partnership. For the educate parents partnership under 
159.8 	Minnesota Statutes, section 124D.129:

159.9		$
	49,000
	.....
	2014
	
159.10		$
	49,000
	.....
	2015
	
159.11 		Subd. 7.Kindergarten entrance assessment initiative and intervention 
159.12 	program. For the kindergarten entrance assessment initiative and intervention program 
159.13 	under Minnesota Statutes, section 124D.162:

159.14		$
	281,000
	.....
	2014
	
159.15		$
	281,000
	.....
	2015
	
159.16 		Subd. 8.Early childhood education scholarships. For transfer to the Office of 
159.17 	Early Learning for early learning scholarships under Minnesota Statutes, section 124D.143:

159.18		$
	25,000,000
	.....
	2014
	
159.19		$
	31,000,000
	.....
	2015
	
159.20 	Up to $950,000 each year is for administration of this program.
159.21 	Any balance in the first year does not cancel but is available in the second year.
159.22 	The base for this program is $52,000,000 for fiscal year 2016 and $75,000,000 for 
159.23 	fiscal year 2017 and later.
159.24 		Subd. 9.Parent-child home program. For a grant for a parent-child home program:

159.25		$
	$250,000
	.....
	2014
	
159.26		$
	$250,000
	.....
	2015
	
159.27 	The grant must be used for an evidence-based and research-validated early childhood 
159.28 	literacy and school readiness program for children ages 16 months to four years. Any 
159.29 	unexpended balance in the first year does not cancel but is available in the second year.
159.30 		Subd. 10.Community education aid. For community education aid under 
159.31 	Minnesota Statutes, section 124D.20:

159.32		$
	935,000
	.....
	2014
	
159.33		$
	1,056,000
	.....
	2015
	
160.1 	The 2014 appropriation includes $118,000 for 2013 and $817,000 for 2014.
160.2 	The 2015 appropriation includes $128,000 for 2014 and $928,000 for 2015.
160.3 		Subd. 11.Adults with disabilities program aid. For adults with disabilities 
160.4 	programs under Minnesota Statutes, section 124D.56:

160.5		$
	710,000
	.....
	2014
	
160.6		$
	710,000
	.....
	2015
	
160.7 	The 2014 appropriation includes $96,000 for 2013 and $614,000 for 2014.
160.8 	The 2015 appropriation includes $96,000 for 2014 and $614,000 for 2015.
160.9 		Subd. 12.Hearing-impaired adults. For programs for hearing-impaired adults 
160.10 	under Minnesota Statutes, section 124D.57:

160.11		$
	70,000
	.....
	2014
	
160.12		$
	70,000
	.....
	2015
	
160.13 		Subd. 13.School-age care revenue. For extended day aid under Minnesota 
160.14 	Statutes, section 124D.22:

160.15		$
	1,000
	.....
	2014
	
160.16		$
	1,000
	.....
	2015
	
160.17 	The 2014 appropriation includes $0 for 2013 and $1,000 for 2014.
160.18 	The 2015 appropriation includes $0 for 2014 and $1,000 for 2015.
160.19 		Subd. 14.Adult basic education aid. For adult basic education aid under 
160.20 	Minnesota Statutes, section 124D.531:

160.21		$
	47,005,000
	.....
	2014
	
160.22		$
	48,356,000
	.....
	2015
	
160.23 	The 2014 appropriation includes $6,284,000 for 2013 and $40,721,000 for 2014.
160.24 	The 2015 appropriation includes $6,409,000 for 2014 and $41,947,000 for 2015.
160.25 		Subd. 15.GED tests. For payment of 60 percent of the costs of GED tests under 
160.26 	Minnesota Statutes, section 124D.55:

160.27		$
	125,000
	.....
	2014
	
160.28		$
	125,000
	.....
	2015

160.29 	ARTICLE 9
160.30 	STATE AGENCIES

160.31 	Section 1. APPROPRIATIONS; DEPARTMENT OF EDUCATION.
 161.1 		Subdivision 1.Department of Education. Unless otherwise indicated, the sums 
161.2 	indicated in this section are appropriated from the general fund to the Department of 
161.3 	Education for the fiscal years designated.
161.4 		Subd. 2.Department. (a) For the Department of Education:

161.5		$
	19,214,000
	.....
	2014
	
161.6		$
	19,386,000
	.....
	2015
	
161.7 	Any balance in the first year does not cancel but is available in the second year.
161.8 	(b) $260,000 each year is for the Minnesota Children's Museum.
161.9 	(c) $41,000 each year is for the Minnesota Academy of Science.
161.10 	(d) $50,000 each year is for the Duluth Children's Museum.
161.11 	(e) $618,000 each year is for the Board of Teaching. Any balance in the first year 
161.12 	does not cancel but is available in the second year.
161.13 	(f) $167,000 each year is for the Board of School Administrators. Any balance in 
161.14 	the first year does not cancel but is available in the second year.
161.15 	(g) The expenditures of federal grants and aids as shown in the biennial budget 
161.16 	document and its supplements are approved and appropriated and shall be spent as 
161.17 	indicated.
161.18 	(h) None of the amounts appropriated under this subdivision may be used for 
161.19 	Minnesota's Washington, D.C. office.
161.20 		Subd. 3.Licensure by portfolio. For licensure by portfolio:

161.21		$
	30,000
	.....
	2014
	
161.22		$
	30,000
	.....
	2015
	
161.23 	This appropriation is from the educator licensure portfolio account of the special 
161.24 	revenue fund.

161.25 	Sec. 2. APPROPRIATIONS; MINNESOTA STATE ACADEMIES.
 161.26 	The sums indicated in this section are appropriated from the general fund to the 
161.27 	Minnesota State Academies for the Deaf and the Blind for the fiscal years designated:

161.28		$
	11,897,000
	.....
	2014
	
161.29		$
	11,910,000
	.....
	2015
	
161.30 	$85,000 of the fiscal year 2014 appropriation is for costs associated with upgrading 
161.31 	kitchen facilities. Any balance in the first year does not cancel but is available in the 
161.32 	second year.

161.33 	Sec. 3. APPROPRIATIONS; PERPICH CENTER FOR ARTS EDUCATION.
 162.1 	The sums in this section are appropriated from the general fund to the Perpich 
162.2 	Center for Arts Education for the fiscal years designated:

162.3		$
	6,786,000
	.....
	2014
	
162.4		$
	6,848,000
	.....
	2015
	
162.5 	Any balance in the first year does not cancel but is available in the second year.

162.6 	ARTICLE 10
162.7 	FORECAST ADJUSTMENTS
162.8 	A. GENERAL EDUCATION

162.9 	Section 1. Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision 
162.10 	2, as amended by Laws 2012, chapter 292, article 2, section 1, is amended to read:
162.11 		Subd. 2.General education aid. For general education aid under Minnesota 
162.12 	Statutes, section 126C.13, subdivision 4:

162.13		$
	5,379,068,000
	.....
	2012
	
162.14
162.15		$
	5,844,995,000
7,153,701,000
	.....
	2013
	
162.16 	The 2012 appropriation includes $1,660,922,000 for 2011 and $3,718,146,000 
162.17 	for 2012.
162.18 	The 2013 appropriation includes $2,038,568,000 for 2012 and $3,806,427,000
162.19 	 $5,115,133,000 for 2013.

162.20 	Sec. 2. Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision 
162.21 	3, as amended by Laws 2012, chapter 292, article 2, section 2, is amended to read:
162.22 		Subd. 3.Enrollment options transportation. For transportation of pupils attending 
162.23 	postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation 
162.24 	of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

162.25		$
	42,000
	.....
	2012
	
162.26
162.27		$
	46,000
40,000
	.....
	2013

162.28 	Sec. 3. Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision 
162.29 	4, as amended by Laws 2012, chapter 292, article 2, section 3, is amended to read:
162.30 		Subd. 4.Abatement revenue. For abatement aid under Minnesota Statutes, section 
162.31 	127A.49:

163.1		$
	1,406,000
	.....
	2012
	
163.2
163.3		$
	2,072,000
2,503,000
	.....
	2013
	
163.4 	The 2012 appropriation includes $346,000 for 2011 and $1,060,000 for 2012.
163.5 	The 2013 appropriation includes $588,000 for 2012 and $1,484,000 $1,915,000
163.6 	 for 2013.

163.7 	Sec. 4. Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision 
163.8 	5, as amended by Laws 2012, chapter 292, article 2, section 4, is amended to read:
163.9 		Subd. 5.Consolidation transition. For districts consolidating under Minnesota 
163.10 	Statutes, section 123A.485:

163.11		$
	145,000
	.....
	2012
	
163.12
163.13		$
	193,000
260,000
	.....
	2013
	
163.14 	The 2012 appropriation includes $145,000 for 2011 and $0 for 2012.
163.15 	The 2013 appropriation includes $0 for 2012 and $193,000 $260,000 for 2013.

163.16 	Sec. 5. Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision 
163.17 	6, as amended by Laws 2012, chapter 292, article 2, section 5, is amended to read:
163.18 		Subd. 6.Nonpublic pupil education aid. For nonpublic pupil education aid under 
163.19 	Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:

163.20		$
	14,302,000
	.....
	2012
	
163.21
163.22		$
	15,594,000
18,969,000
	.....
	2013
	
163.23 	The 2012 appropriation includes $4,161,000 for 2011 and $10,141,000 for 2012.
163.24 	The 2013 appropriation includes $5,629,000 for 2012 and $9,965,000 $13,340,000
163.25 	 for 2013.

163.26 	Sec. 6. Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision 
163.27 	7, as amended by Laws 2012, chapter 292, article 2, section 6, is amended to read:
163.28 		Subd. 7.Nonpublic pupil transportation. For nonpublic pupil transportation aid 
163.29 	under Minnesota Statutes, section 123B.92, subdivision 9:

163.30		$
	17,757,000
	.....
	2012
	
163.31
163.32		$
	19,036,000
23,648,000
	.....
	2013
	
163.33 	The 2012 appropriation includes $5,700,000 for 2011 and $12,057,000 for 2012.
164.1 	The 2013 appropriation includes $6,694,000 for 2012 and $12,342,000 $16,954,000
164.2 	 for 2013.

164.3 	Sec. 7. Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision 
164.4 	10, as amended by Laws 2012, chapter 292, article 2, section 7, is amended to read:
164.5 		Subd. 10.Compensatory pilot project formula aid. For grants for compensatory 
164.6 	pilot project formula aid as calculated under this subdivision:

164.7
164.8		$
	9,368,000
13,403,000
	.....
	2013
	
164.9 	For fiscal year 2013 only, a district which has a pupil unit count that is in the top 20 
164.10 	largest pupil unit counts is eligible for the greater of zero or $1,400 times the number of 
164.11 	compensatory pupil units, minus the amount of compensatory education revenue received 
164.12 	by the district under Minnesota Statutes, section 126C.10, subdivision 3.
164.13 	The 2013 appropriation includes $0 for 2012 and $9,368,000 $13,403,000 for 2013.
164.14 	This is a onetime appropriation.
164.15 	B. EDUCATION EXCELLENCE

164.16 	Sec. 8. Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision 
164.17 	2, as amended by Laws 2012, chapter 292, article 2, section 8, is amended to read:
164.18 		Subd. 2.Charter school building lease aid. For building lease aid under Minnesota 
164.19 	Statutes, section 124D.11, subdivision 4:

164.20		$
	42,806,000
	.....
	2012
	
164.21
164.22		$
	48,978,000
60,067,000
	.....
	2013
	
164.23 	The 2012 appropriation includes $12,642,000 for 2011 and $30,164,000 for 2012.
164.24 	The 2013 appropriation includes $16,746,000 for 2012 and $32,232,000 $43,321,000
164.25 	 for 2013.

164.26 	Sec. 9. Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision 
164.27 	4, as amended by Laws 2012, chapter 292, article 2, section 10, is amended to read:
164.28 		Subd. 4.Integration aid. For integration aid under Minnesota Statutes, section 
164.29 	124D.86:

164.30		$
	61,181,000
	.....
	2012
	
164.31
164.32		$
	65,498,000
79,329,000
	.....
	2013
	
164.33 	The 2012 appropriation includes $19,272,000 for 2011 and $41,909,000 for 2012.
165.1 	The 2013 appropriation includes $23,268,000 for 2012 and $42,230,000 $56,061,000
165.2 	 for 2013.
165.3 	The base for the final payment in fiscal year 2014 for fiscal year 2013 is $31,668,000
165.4 	 $17,197,000.

165.5 	Sec. 10. Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision 
165.6 	5, as amended by Laws 2012, chapter 292, article 2, section 11, is amended to read:
165.7 		Subd. 5.Literacy incentive aid. For literacy incentive aid under Minnesota 
165.8 	Statutes, section 124D.98:

165.9165.10
		$
	31,241,000
41,978,000
	.....
	2013
	
165.11 	The 2013 appropriation includes $0 for 2012 and $31,241,000 $41,978,000 for 2013.

165.12 	Sec. 11. Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision 
165.13 	6, as amended by Laws 2012, chapter 292, article 2, section 12, is amended to read:
165.14 		Subd. 6.Interdistrict desegregation or integration transportation grants. For 
165.15 	interdistrict desegregation or integration transportation grants under Minnesota Statutes, 
165.16 	section 124D.87:

165.17		$
	13,262,000
	.....
	2012
	
165.18
165.19		$
	13,966,000
13,260,000
	.....
	2013

165.20 	Sec. 12. Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision 
165.21 	7, as amended by Laws 2012, chapter 292, article 2, section 13, is amended to read:
165.22 		Subd. 7.Success for the future. For American Indian success for the future grants 
165.23 	under Minnesota Statutes, section 124D.81:

165.24		$
	2,013,000
	.....
	2012
	
165.25
165.26		$
	2,137,000
2,609,000
	.....
	2013
	
165.27 	The 2012 appropriation includes $638,000 for 2011 and $1,375,000 for 2012.
165.28 	The 2013 appropriation includes $762,000 for 2012 and $1,375,000 $1,847,000
165.29 	 for 2013.

165.30 	Sec. 13. Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision 
165.31 	9, as amended by Laws 2012, chapter 292, article 2, section 14, is amended to read:
165.32 		Subd. 9.Tribal contract schools. For tribal contract school aid under Minnesota 
165.33 	Statutes, section 124D.83:

166.1		$
	1,791,000
	.....
	2012
	
166.2
166.3		$
	1,969,000
2,353,000
	.....
	2013
	
166.4 	The 2012 appropriation includes $600,000 for 2011 and $1,191,000 for 2012.
166.5 	The 2013 appropriation includes $660,000 for 2012 and $1,309,000 $1,693,000
166.6 	 for 2013.
166.7 	C. SPECIAL EDUCATION

166.8 	Sec. 14. Laws 2011, First Special Session chapter 11, article 3, section 11, subdivision 
166.9 	2, as amended by Laws 2012, chapter 292, article 2, section 15, is amended to read:
166.10 		Subd. 2.Special education; regular. For special education aid under Minnesota 
166.11 	Statutes, section 125A.75:

166.12		$
	767,845,000
	.....
	2012
	
166.13
166.14		$
	856,386,000
1,046,423,000
	.....
	2013
	
166.15 	The 2012 appropriation includes $235,975,000 for 2011 and $531,870,000 for 2012.
166.16 	The 2013 appropriation includes $295,299,000 for 2012 and $561,087,000
166.17 	 $751,124,000 for 2013.

166.18 	Sec. 15. Laws 2011, First Special Session chapter 11, article 3, section 11, subdivision 
166.19 	3, as amended by Laws 2012, chapter 292, article 2, section 16, is amended to read:
166.20 		Subd. 3.Aid for children with disabilities. For aid under Minnesota Statutes, 
166.21 	section 125A.75, subdivision 3, for children with disabilities placed in residential facilities 
166.22 	within the district boundaries for whom no district of residence can be determined:

166.23		$
	1,508,000
	.....
	2012
	
166.24
166.25		$
	1,593,000
1,570,000
	.....
	2013
	
166.26 	If the appropriation for either year is insufficient, the appropriation for the other 
166.27 	year is available.

166.28 	Sec. 16. Laws 2011, First Special Session chapter 11, article 3, section 11, subdivision 
166.29 	4, as amended by Laws 2012, chapter 292, article 2, section 17, is amended to read:
166.30 		Subd. 4.Travel for home-based services. For aid for teacher travel for home-based 
166.31 	services under Minnesota Statutes, section 125A.75, subdivision 1:

166.32		$
	314,000
	.....
	2012
	
166.33
166.34		$
	321,000
407,000
	.....
	2013
	
167.1 	The 2012 appropriation includes $107,000 for 2011 and $207,000 for 2012.
167.2 	The 2013 appropriation includes $114,000 for 2012 and $207,000 $293,000 for 2013.

167.3 	Sec. 17. Laws 2011, First Special Session chapter 11, article 3, section 11, subdivision 
167.4 	5, as amended by Laws 2012, chapter 292, article 2, section 18, is amended to read:
167.5 		Subd. 5.Special education; excess costs. For excess cost aid under Minnesota 
167.6 	Statutes, section 125A.79, subdivision 7:

167.7		$
	107,557,000
	.....
	2012
	
167.8
167.9		$
	115,269,000
134,121,000
	.....
	2013
	
167.10 	The 2012 appropriation includes $53,449,000 for 2011 and $54,108,000 for 2012.
167.11 	The 2013 appropriation includes $59,607,000 for 2012 and $55,662,000 $74,514,000
167.12 	 for 2013.
167.13 	D. FACILITIES AND TECHNOLOGY

167.14 	Sec. 18. Laws 2011, First Special Session chapter 11, article 4, section 10, subdivision 
167.15 	2, as amended by Laws 2012, chapter 292, article 2, section 19, is amended to read:
167.16 		Subd. 2.Health and safety revenue. For health and safety aid according to 
167.17 	Minnesota Statutes, section 123B.57, subdivision 5:

167.18		$
	98,000
	.....
	2012
	
167.19
167.20		$
	157,000
200,000
	.....
	2013
	
167.21 	The 2012 appropriation includes $39,000 for 2011 and $59,000 for 2012.
167.22 	The 2013 appropriation includes $32,000 for 2012 and $125,000 $168,000 for 2013.

167.23 	Sec. 19. Laws 2011, First Special Session chapter 11, article 4, section 10, subdivision 
167.24 	3, as amended by Laws 2012, chapter 292, article 2, section 20, is amended to read:
167.25 		Subd. 3.Debt service equalization. For debt service aid according to Minnesota 
167.26 	Statutes, section 123B.53, subdivision 6:

167.27		$
	11,625,000
	.....
	2012
	
167.28
167.29		$
	16,342,000
20,237,000
	.....
	2013
	
167.30 	The 2012 appropriation includes $2,604,000 for 2011 and $9,021,000 for 2012.
167.31 	The 2013 appropriation includes $5,008,000 for 2012 and $11,334,000 $15,229,000
167.32 	 for 2013.

168.1 	Sec. 20. Laws 2011, First Special Session chapter 11, article 4, section 10, subdivision 
168.2 	4, as amended by Laws 2012, chapter 292, article 2, section 21, is amended to read:
168.3 		Subd. 4.Alternative facilities bonding aid. For alternative facilities bonding aid, 
168.4 	according to Minnesota Statutes, section 123B.59, subdivision 1:

168.5		$
	18,187,000
	.....
	2012
	
168.6
168.7		$
	19,287,000
23,549,000
	.....
	2013
	
168.8 	The 2012 appropriation includes $5,785,000 for 2011 and $12,402,000 for 2012.
168.9 	The 2013 appropriation includes $6,885,000 for 2012 and $12,402,000 $16,664,000
168.10 	 for 2013.

168.11 	Sec. 21. Laws 2011, First Special Session chapter 11, article 4, section 10, subdivision 
168.12 	6, as amended by Laws 2012, chapter 292, article 2, section 22, is amended to read:
168.13 		Subd. 6.Deferred maintenance aid. For deferred maintenance aid, according to 
168.14 	Minnesota Statutes, section 123B.591, subdivision 4:

168.15		$
	2,331,000
	.....
	2012
	
168.16
168.17		$
	3,141,000
3,817,000
	.....
	2013
	
168.18 	The 2012 appropriation includes $676,000 for 2011 and $1,655,000 for 2012.
168.19 	The 2013 appropriation includes $918,000 for 2012 and $2,223,000 $2,899,000
168.20 	 for 2013.
168.21 	E. NUTRITION AND LIBRARIES

168.22 	Sec. 22. Laws 2011, First Special Session chapter 11, article 5, section 12, subdivision 
168.23 	2, as amended by Laws 2012, chapter 292, article 2, section 23, is amended to read:
168.24 		Subd. 2.School lunch. For school lunch aid according to Minnesota Statutes, 
168.25 	section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

168.26		$
	12,285,000
	.....
	2012
	
168.27
168.28		$
	12,524,000
12,266,000
	.....
	2013

168.29 	Sec. 23. Laws 2011, First Special Session chapter 11, article 5, section 12, subdivision 
168.30 	3, as amended by Laws 2012, chapter 292, article 2, section 24, is amended to read:
168.31 		Subd. 3.School breakfast. For traditional school breakfast aid under Minnesota 
168.32 	Statutes, section 124D.1158:

169.1		$
	5,247,000
	.....
	2012
	
169.2
169.3		$
	5,560,000
5,417,000
	.....
	2013

169.4 	Sec. 24. Laws 2011, First Special Session chapter 11, article 5, section 12, subdivision 
169.5 	4, as amended by Laws 2012, chapter 292, article 2, section 25, is amended to read:
169.6 		Subd. 4.Kindergarten milk. For kindergarten milk aid under Minnesota Statutes, 
169.7 	section 124D.118:

169.8		$
	1,025,000
	.....
	2012
	
169.9169.10
		$
	1,035,000
1,019,000
	.....
	2013

169.11 	Sec. 25. Laws 2011, First Special Session chapter 11, article 6, section 2, subdivision 
169.12 	2, as amended by Laws 2012, chapter 292, article 2, section 26, is amended to read:
169.13 		Subd. 2.Basic system support. For basic system support grants under Minnesota 
169.14 	Statutes, section 134.355:

169.15		$
	12,797,000
	.....
	2012
	
169.16
169.17		$
	13,570,000
16,569,000
	.....
	2013
	
169.18 	The 2012 appropriation includes $4,071,000 for 2011 and $8,726,000 for 2012.
169.19 	The 2013 appropriation includes $4,844,000 for 2012 and $8,726,000 $11,725,000
169.20 	 for 2013.

169.21 	Sec. 26. Laws 2011, First Special Session chapter 11, article 6, section 2, subdivision 
169.22 	3, as amended by Laws 2012, chapter 292, article 2, section 27, is amended to read:
169.23 		Subd. 3.Multicounty, multitype library systems. For grants under Minnesota 
169.24 	Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:

169.25		$
	1,226,000
	.....
	2012
	
169.26
169.27		$
	1,300,000
1,588,000
	.....
	2013
	
169.28 	The 2012 appropriation includes $390,000 for 2011 and $836,000 for 2012.
169.29 	The 2013 appropriation includes $464,000 for 2012 and $836,000 $1,124,000 for 
169.30 	2013.

169.31 	Sec. 27. Laws 2011, First Special Session chapter 11, article 6, section 2, subdivision 
169.32 	5, as amended by Laws 2012, chapter 292, article 2, section 28, is amended to read:
170.1 		Subd. 5.Regional library telecommunications aid. For regional library 
170.2 	telecommunications aid under Minnesota Statutes, section 134.355:

170.3		$
	2,169,000
	.....
	2012
	
170.4
170.5		$
	2,300,000
2,809,000
	.....
	2013
	
170.6 	The 2012 appropriation includes $690,000 for 2011 and $1,479,000 for 2012.
170.7 	The 2013 appropriation includes $821,000 for 2012 and $1,479,000 $1,988,000
170.8 	 for 2013.
170.9 	F. EARLY CHILDHOOD EDUCATION, PREVENTION, AND 
170.10 	LIFELONG LEARNING

170.11 	Sec. 28. Laws 2011, First Special Session chapter 11, article 7, section 2, subdivision 
170.12 	2, as amended by Laws 2012, chapter 292, article 2, section 29, is amended to read:
170.13 		Subd. 2.School readiness. For revenue for school readiness programs under 
170.14 	Minnesota Statutes, sections 124D.15 and 124D.16:

170.15		$
	9,444,000
	.....
	2012
	
170.16
170.17		$
	10,095,000
12,326,000
	.....
	2013
	
170.18 	The 2012 appropriation includes $2,952,000 for 2011 and $6,492,000 for 2012.
170.19 	The 2013 appropriation includes $3,603,000 for 2012 and $6,492,000 $8,723,000
170.20 	 for 2013.

170.21 	Sec. 29. Laws 2011, First Special Session chapter 11, article 7, section 2, subdivision 
170.22 	3, as amended by Laws 2012, chapter 292, article 2, section 30, is amended to read:
170.23 		Subd. 3.Early childhood family education aid. For early childhood family 
170.24 	education aid under Minnesota Statutes, section 124D.135:

170.25		$
	21,099,000
	.....
	2012
	
170.26
170.27		$
	22,358,000
27,197,000
	.....
	2013
	
170.28 	The 2012 appropriation includes $6,542,000 for 2011 and $14,557,000 for 2012.
170.29 	The 2013 appropriation includes $8,082,000 for 2012 and $14,276,000 $19,115,000
170.30 	 for 2013.

170.31 	Sec. 30. Laws 2011, First Special Session chapter 11, article 7, section 2, subdivision 
170.32 	4, as amended by Laws 2012, chapter 292, article 2, section 31, is amended to read:
171.1 		Subd. 4.Health and developmental screening aid. For health and developmental 
171.2 	screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

171.3		$
	3,359,000
	.....
	2012
	
171.4
171.5		$
	3,543,000
4,287,000
	.....
	2013
	
171.6 	The 2012 appropriation includes $1,066,000 for 2011 and $2,293,000 for 2012.
171.7 	The 2013 appropriation includes $1,273,000 for 2012 and $2,270,000 $3,014,000
171.8 	 for 2013.

171.9 	Sec. 31. Laws 2011, First Special Session chapter 11, article 8, section 2, subdivision 
171.10 	2, as amended by Laws 2012, chapter 292, article 2, section 32, is amended to read:
171.11 		Subd. 2.Community education aid. For community education aid under 
171.12 	Minnesota Statutes, section 124D.20:

171.13		$
	442,000
	.....
	2012
	
171.14
171.15		$
	746,000
926,000
	.....
	2013
	
171.16 	The 2012 appropriation includes $134,000 for 2011 and $308,000 for 2012.
171.17 	The 2013 appropriation includes $170,000 for 2012 and $576,000 $756,000 for 2013.

171.18 	Sec. 32. Laws 2011, First Special Session chapter 11, article 8, section 2, subdivision 
171.19 	3, as amended by Laws 2012, chapter 292, article 2, section 33, is amended to read:
171.20 		Subd. 3.Adults with disabilities program aid. For adults with disabilities 
171.21 	programs under Minnesota Statutes, section 124D.56:

171.22		$
	654,000
	.....
	2012
	
171.23
171.24		$
	710,000
867,000
	.....
	2013
	
171.25 	The 2012 appropriation includes $197,000 for 2011 and $457,000 for 2012.
171.26 	The 2013 appropriation includes $253,000 for 2012 and $457,000 $614,000 for 2013.

171.27 	Sec. 33. Laws 2011, First Special Session chapter 11, article 9, section 3, subdivision 
171.28 	2, as amended by Laws 2012, chapter 292, article 2, section 34, is amended to read:
171.29 		Subd. 2.Adult basic education aid. For adult basic education aid under Minnesota 
171.30 	Statutes, section 124D.531:

171.31		$
	42,526,000
	.....
	2012
	
171.32
171.33		$
	45,901,000
56,113,000
	.....
	2013
	
171.34 	The 2012 appropriation includes $13,364,000 for 2011 and $29,162,000 for 2012.
172.1 	The 2013 appropriation includes $16,190,000 for 2012 and $29,711,000 $39,923,000
172.2 	 for 2013.