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 general 
1.4 	education, student accountability, education excellence, charter schools, special 
1.5 	education, facilities, technology, nutrition, libraries, accounting, early childhood, 
1.6 	self-sufficiency, lifelong learning, state agencies, and forecast adjustments; 
1.7 	authorizing rulemaking; requiring reports; appropriating money;amending 
1.8 	Minnesota Statutes 2012, sections 15.059, subdivision 5b; 120A.20, subdivision 
1.9 	1; 120A.22, subdivisions 5, 8, 11, 12; 120A.24, subdivision 1; 120A.41; 
1.10 	120B.02; 120B.021, subdivision 1; 120B.023; 120B.024; 120B.11; 120B.125; 
1.11 	120B.128; 120B.15; 120B.30, subdivisions 1, 1a; 120B.31, subdivision 1; 
1.12 	120B.35, subdivision 3; 120B.36, subdivision 1; 121A.22, subdivision 2; 
1.13 	121A.2205; 121A.39; 122A.09, subdivision 4; 122A.18, subdivision 2; 122A.23, 
1.14 	subdivision 2; 122A.28, subdivision 1; 122A.33, subdivision 3; 122A.40, 
1.15 	subdivision 8; 122A.41, subdivision 5; 122A.415, by adding subdivisions; 
1.16 	122A.61, subdivision 1; 123A.73, subdivisions 3, 4, 5; 123B.41, subdivision 7; 
1.17 	123B.42, subdivision 3; 123B.53, subdivision 5; 123B.54; 123B.57, subdivision 
1.18 	4; 123B.591, subdivisions 2, 3; 123B.75, subdivision 5; 123B.88, subdivision 
1.19 	22; 123B.92, subdivisions 1, 5, 9; 124D.02, subdivision 1; 124D.03, subdivision 
1.20 	12; 124D.095, subdivision 10; 124D.10; 124D.11, subdivisions 1, 2, 4, 5; 
1.21 	124D.111, subdivision 1; 124D.119; 124D.122; 124D.128, subdivision 2; 
1.22 	124D.42; 124D.4531; 124D.52, by adding a subdivision; 124D.531, subdivision 
1.23 	1; 124D.65, subdivision 5; 124D.79, subdivision 1, by adding a subdivision; 
1.24 	125A.0941; 125A.0942; 125A.11, subdivision 1; 125A.27, subdivisions 8, 11, 
1.25 	14; 125A.28; 125A.29; 125A.30; 125A.32; 125A.33; 125A.35, subdivision 1; 
1.26 	125A.36; 125A.43; 125A.76, subdivisions 1, 4a, 8, by adding subdivisions; 
1.27 	125A.78, subdivision 2; 125A.79, subdivisions 1, 5, 8; 125B.26, subdivision 4; 
1.28 	126C.05, subdivisions 1, 5, 6, 15; 126C.10, subdivisions 1, 2, 2a, 2b, 2c, 3, 7, 
1.29 	8, 13, 13a, 14, 18, 24, 29, 31, 32, 34, 35, 36, by adding subdivisions; 126C.12, 
1.30 	subdivisions 1, 5; 126C.126; 126C.13, subdivision 4, by adding subdivisions; 
1.31 	126C.15, subdivisions 1, 2; 126C.17; 126C.20; 126C.40, subdivisions 1, 6; 
1.32 	126C.44; 127A.45, subdivisions 12a, 13; 127A.47, subdivisions 7, 8; 127A.51; 
1.33 	128D.11, subdivision 3; 134.32; 134.34; 134.351, subdivisions 3, 7; 134.353; 
1.34 	134.354; 134.355, subdivisions 1, 2, 3, 4, 5, 6; 134.36; 260A.02, subdivision 
1.35 	3; 260A.03; 260A.05, subdivision 1; 260A.07, subdivision 1; 260C.007, 
1.36 	subdivision 19; Laws 2007, chapter 146, article 4, section 12; Laws 2011, First 
1.37 	Special Session chapter 11, article 1, section 36, subdivisions 2, as amended, 3, 
1.38 	as amended, 4, as amended, 5, as amended, 6, as amended, 7, as amended, 10, as 
1.39 	amended; article 2, section 50, subdivisions 2, as amended, 4, as amended, 5, as 
2.1 	amended, 6, as amended, 7, as amended, 9, as amended; article 3, section 11, 
2.2 	subdivisions 2, as amended, 3, as amended, 4, as amended, 5, as amended; article 
2.3 	4, section 10, subdivisions 2, as amended, 3, as amended, 4, as amended, 6, as 
2.4 	amended; article 5, section 12, subdivisions 2, as amended, 3, as amended, 4, 
2.5 	as amended; article 6, section 2, subdivisions 2, as amended, 3, as amended, 5, 
2.6 	as amended; article 7, section 2, subdivisions 2, as amended, 3, as amended, 4, 
2.7 	as amended, 8, as amended; article 8, section 2, subdivisions 2, as amended, 3, 
2.8 	as amended; article 9, section 3, subdivision 2, as amended; proposing coding 
2.9 	for new law in Minnesota Statutes, chapters 120B; 121A; 124D; proposing 
2.10 	coding for new law as Minnesota Statutes, chapter 16F; repealing Minnesota 
2.11 	Statutes 2012, sections 120B.08; 120B.09; 123B.75, subdivision 6a; 124D.454, 
2.12 	subdivisions 3, 10, 11; 125A.35, subdivisions 4, 5; 125A.76, subdivisions 2, 4, 
2.13 	5, 7; 125A.79, subdivisions 6, 7; 126C.10, subdivisions 31a, 31b, 31c, 34, 35, 
2.14 	36; 126C.17, subdivision 13; 127A.50, subdivisions 1, 5; Minnesota Rules, 
2.15 	parts 3501.0010; 3501.0020; 3501.0030, subparts 1, 2, 3, 4, 5, 6, 7, 9, 10, 11, 
2.16 	12, 13, 14, 15, 16; 3501.0040; 3501.0050; 3501.0060; 3501.0090; 3501.0100; 
2.17 	3501.0110; 3501.0120; 3501.0130; 3501.0140; 3501.0150; 3501.0160; 
2.18 	3501.0170; 3501.0180; 3501.0200; 3501.0210; 3501.0220; 3501.0230; 
2.19 	3501.0240; 3501.0250; 3501.0270; 3501.0280, subparts 1, 2; 3501.0290; 
2.20 	3501.0505; 3501.0510; 3501.0515; 3501.0520; 3501.0525; 3501.0530; 
2.21 	3501.0535; 3501.0540; 3501.0545; 3501.0550; 3501.1000; 3501.1020; 
2.22 	3501.1030; 3501.1040; 3501.1050; 3501.1110; 3501.1120; 3501.1130; 
2.23 	3501.1140; 3501.1150; 3501.1160; 3501.1170; 3501.1180; 3501.1190.
2.24 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.25 	ARTICLE 1
2.26 	GENERAL EDUCATION

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

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

3.16 	Sec. 3. Minnesota Statutes 2012, section 123A.73, subdivision 3, is amended to read:
3.17 		Subd. 3.Voluntary dissolution; referendum revenue. As of the effective date of 
3.18 	the voluntary dissolution of a district and its attachment to one or more existing districts 
3.19 	pursuant to section 123A.46, the authorization for all referendum revenues previously 
3.20 	approved by the voters of all affected districts for those districts pursuant to section 
3.21 	126C.17, subdivision 9, or its predecessor provision, is canceled. However, if all of the 
3.22 	territory of any independent district is included in the enlarged district, and if the adjusted 
3.23 	net tax capacity of taxable property in that territory comprises 90 percent or more of 
3.24 	the adjusted net tax capacity of all taxable property in an enlarged district, the enlarged 
3.25 	district's referendum revenue shall be determined as follows:
3.26 	The referendum revenue shall be the revenue per resident marginal cost adjusted
3.27 	 pupil unit times the number of resident marginal cost adjusted pupil units in the enlarged 
3.28 	district. Any new referendum revenue shall be authorized only after approval is granted 
3.29 	by the voters of the entire enlarged district in an election pursuant to section 126C.17, 
3.30 	subdivision 9.

3.31 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
3.32 	and later.

4.1 	Sec. 4. Minnesota Statutes 2012, section 123A.73, subdivision 4, is amended to read:
4.2 		Subd. 4.Consolidation; maximum authorized referendum revenues. (a) As 
4.3 	of the effective date of a consolidation pursuant to section 123A.48, if the plan for 
4.4 	consolidation so provides, or if the plan for consolidation makes no provision concerning 
4.5 	referendum revenues, the authorization for all referendum revenues previously approved 
4.6 	by the voters of all affected districts for those districts pursuant to section 126C.17, 
4.7 	subdivision 9, or its predecessor provision shall be recalculated as provided in this 
4.8 	subdivision. The referendum revenue authorization for the newly created district shall 
4.9 	be the revenue per resident marginal cost adjusted pupil unit that would raise an amount 
4.10 	equal to the combined dollar amount of the referendum revenues authorized by each of 
4.11 	the component districts for the year preceding the consolidation, unless the referendum 
4.12 	revenue authorization of the newly created district is subsequently modified pursuant to 
4.13 	section 126C.17, subdivision 9.
4.14 	(b) The referendum allowance for a consolidated district in the years following 
4.15 	consolidation equals the average of the consolidating districts' existing authorities for those 
4.16 	years, weighted by the districts' resident marginal cost adjusted pupil units in the year 
4.17 	preceding consolidation. For purposes of this calculation, the referendum authorities used 
4.18 	for individual districts shall not decrease from year to year until such time as all existing 
4.19 	authorities for all the consolidating districts have fully expired, but shall increase if they 
4.20 	were originally approved with consumer price index-based or other annual increases.
4.21 	(c) The referendum revenue authorization for the newly created district shall continue 
4.22 	for a period of time equal to the longest period authorized for any component district.

4.23 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
4.24 	and later.

4.25 	Sec. 5. Minnesota Statutes 2012, section 123A.73, subdivision 5, is amended to read:
4.26 		Subd. 5.Alternative method. (a) As of the effective date of a consolidation 
4.27 	pursuant to section 123A.48, if the plan for consolidation so provides, the authorization 
4.28 	for all referendum revenues previously approved by the voters of all affected districts for 
4.29 	those districts pursuant to section 126C.17, subdivision 9, or its predecessor provision 
4.30 	shall be combined as provided in this subdivision. The referendum revenue authorization 
4.31 	for the newly created district may be any allowance per resident marginal cost adjusted
4.32 	 pupil unit provided in the plan for consolidation, but may not exceed the allowance 
4.33 	per resident marginal cost adjusted pupil unit that would raise an amount equal to the 
4.34 	combined dollar amount of the referendum revenues authorized by each of the component 
4.35 	districts for the year preceding the consolidation.
5.1 	(b) The referendum allowance for a consolidated district in the years following 
5.2 	consolidation equals the average of the consolidating districts' existing authorities for those 
5.3 	years, weighted by the districts' resident marginal cost adjusted pupil units in the year 
5.4 	preceding consolidation. For purposes of this calculation, the referendum authorities used 
5.5 	for individual districts shall not decrease from year to year until such time as all existing 
5.6 	authorities for all the consolidating districts have fully expired, but shall increase if they 
5.7 	were originally approved with consumer price index-based or other annual increases.
5.8 	(c) The referendum revenue authorization for the newly created district shall 
5.9 	continue for a period of time equal to the longest period authorized for any component 
5.10 	district. The referendum revenue authorization for the newly created district may be 
5.11 	modified pursuant to section 126C.17, subdivision 9.

5.12 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
5.13 	and later.

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

5.19 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
5.20 	and later.

5.21 	Sec. 7. Minnesota Statutes 2012, section 123B.42, subdivision 3, is amended to read:
5.22 		Subd. 3.Cost; limitation. (a) The cost per pupil of the textbooks, individualized 
5.23 	instructional or cooperative learning materials, software or other educational technology, 
5.24 	and standardized tests provided for in this section for each school year must not exceed the 
5.25 	statewide average expenditure per pupil, adjusted pursuant to clause (b), by the Minnesota 
5.26 	public elementary and secondary schools for textbooks, individualized instructional 
5.27 	materials and standardized tests as computed and established by the department by February 
5.28 	1 of the preceding school year from the most recent public school year data then available.
5.29 	(b) The cost computed in clause (a) shall be increased by an inflation adjustment 
5.30 	equal to the percent of increase in the formula allowance, pursuant to section 126C.10, 
5.31 	subdivision 2, from the second preceding school year to the current school year.
5.32 	 Notwithstanding the amount of the formula allowance for fiscal years 2015 and 2016 in 
5.33 	section 126C.10, subdivision 2, the commissioner shall use the amount of the formula 
6.1 	allowance for the current year minus $414 in determining the inflation adjustment for 
6.2 	fiscal years 2015 and 2016.
6.3 	(c) The commissioner shall allot to the districts or intermediary service areas the 
6.4 	total cost for each school year of providing or loaning the textbooks, individualized 
6.5 	instructional or cooperative learning materials, software or other educational technology, 
6.6 	and standardized tests for the pupils in each nonpublic school. The allotment shall not 
6.7 	exceed the product of the statewide average expenditure per pupil, according to clause 
6.8 	(a), adjusted pursuant to clause (b), multiplied by the number of nonpublic school pupils 
6.9 	who make requests pursuant to this section and who are enrolled as of September 15 of 
6.10 	the current school year.

6.11 	Sec. 8. Minnesota Statutes 2012, section 123B.88, subdivision 22, is amended to read:
6.12 		Subd. 22.Postsecondary enrollment options pupils. Districts may provide bus 
6.13 	transportation along school bus routes when space is available, for pupils attending 
6.14 	programs at a postsecondary institution under the postsecondary enrollment options 
6.15 	program. The transportation is permitted only if it does not increase the district's 
6.16 	expenditures for transportation. Fees collected for this service under section 123B.36, 
6.17 	subdivision 1, paragraph (13), shall be subtracted from the authorized cost for nonregular 
6.18 	transportation for the purpose of section 123B.92. A school district may provide 
6.19 	transportation for a pupil participating in an articulated program operated under an 
6.20 	agreement between the school district and the postsecondary institution.

6.21 	Sec. 9. Minnesota Statutes 2012, section 123B.92, subdivision 1, is amended to read:
6.22 		Subdivision 1.Definitions. For purposes of this section and section 125A.76, the 
6.23 	terms defined in this subdivision have the meanings given to them.
6.24 	(a) "Actual expenditure per pupil transported in the regular and excess transportation 
6.25 	categories" means the quotient obtained by dividing:
6.26 	(1) the sum of:
6.27 	(i) all expenditures for transportation in the regular category, as defined in paragraph 
6.28 	(b), clause (1), and the excess category, as defined in paragraph (b), clause (2), plus
6.29 	(ii) an amount equal to one year's depreciation on the district's school bus fleet 
6.30 	and mobile units computed on a straight line basis at the rate of 15 percent per year for 
6.31 	districts operating a program under section 124D.128 for grades 1 to 12 for all students in 
6.32 	the district and 12-1/2 percent per year for other districts of the cost of the fleet, plus
6.33 	(iii) an amount equal to one year's depreciation on the district's type III vehicles, as 
6.34 	defined in section 169.011, subdivision 71, which must be used a majority of the time for 
7.1 	pupil transportation purposes, computed on a straight line basis at the rate of 20 percent 
7.2 	per year of the cost of the type three school buses by:
7.3 	(2) the number of pupils eligible for transportation in the regular category, as defined 
7.4 	in paragraph (b), clause (1), and the excess category, as defined in paragraph (b), clause (2).
7.5 	(b) "Transportation category" means a category of transportation service provided to 
7.6 	pupils as follows:
7.7 	(1) Regular transportation is:
7.8 	(i) transportation to and from school during the regular school year for resident 
7.9 	elementary pupils residing one mile or more from the public or nonpublic school they 
7.10 	attend, and resident secondary pupils residing two miles or more from the public 
7.11 	or nonpublic school they attend, excluding desegregation transportation and noon 
7.12 	kindergarten transportation; but with respect to transportation of pupils to and from 
7.13 	nonpublic schools, only to the extent permitted by sections 123B.84 to 123B.87;
7.14 	(ii) transportation of resident pupils to and from language immersion programs;
7.15 	(iii) transportation of a pupil who is a custodial parent and that pupil's child between 
7.16 	the pupil's home and the child care provider and between the provider and the school, if 
7.17 	the home and provider are within the attendance area of the school;
7.18 	(iv) transportation to and from or board and lodging in another district, of resident 
7.19 	pupils of a district without a secondary school; and
7.20 	(v) transportation to and from school during the regular school year required under 
7.21 	subdivision 3 for nonresident elementary pupils when the distance from the attendance 
7.22 	area border to the public school is one mile or more, and for nonresident secondary pupils 
7.23 	when the distance from the attendance area border to the public school is two miles or 
7.24 	more, excluding desegregation transportation and noon kindergarten transportation.
7.25 	For the purposes of this paragraph, a district may designate a licensed day care facility, 
7.26 	school day care facility, respite care facility, the residence of a relative, or the residence 
7.27 	of a person or other location chosen by the pupil's parent or guardian, or an after-school 
7.28 	program for children operated by a political subdivision of the state, as the home of a pupil 
7.29 	for part or all of the day, if requested by the pupil's parent or guardian, and if that facility, 
7.30 	residence, or program is within the attendance area of the school the pupil attends.
7.31 	(2) Excess transportation is:
7.32 	(i) transportation to and from school during the regular school year for resident 
7.33 	secondary pupils residing at least one mile but less than two miles from the public or 
7.34 	nonpublic school they attend, and transportation to and from school for resident pupils 
7.35 	residing less than one mile from school who are transported because of full-service school 
7.36 	zones, extraordinary traffic, drug, or crime hazards; and
8.1 	(ii) transportation to and from school during the regular school year required under 
8.2 	subdivision 3 for nonresident secondary pupils when the distance from the attendance area 
8.3 	border to the school is at least one mile but less than two miles from the public school 
8.4 	they attend, and for nonresident pupils when the distance from the attendance area border 
8.5 	to the school is less than one mile from the school and who are transported because of 
8.6 	full-service school zones, extraordinary traffic, drug, or crime hazards.
8.7 	(3) Desegregation transportation is transportation within and outside of the district 
8.8 	during the regular school year of pupils to and from schools located outside their normal 
8.9 	attendance areas under a plan for desegregation mandated by the commissioner or under 
8.10 	court order.
8.11 	(4) "Transportation services for pupils with disabilities" is:
8.12 	(i) transportation of pupils with disabilities who cannot be transported on a regular 
8.13 	school bus between home or a respite care facility and school;
8.14 	(ii) necessary transportation of pupils with disabilities from home or from school to 
8.15 	other buildings, including centers such as developmental achievement centers, hospitals, 
8.16 	and treatment centers where special instruction or services required by sections 125A.03 
8.17 	to 125A.24, 125A.26 to 125A.48, and 125A.65 are provided, within or outside the district 
8.18 	where services are provided;
8.19 	(iii) necessary transportation for resident pupils with disabilities required by sections 
8.20 	125A.12, and 125A.26 to 125A.48;
8.21 	(iv) board and lodging for pupils with disabilities in a district maintaining special 
8.22 	classes;
8.23 	(v) transportation from one educational facility to another within the district for 
8.24 	resident pupils enrolled on a shared-time basis in educational programs, and necessary 
8.25 	transportation required by sections 125A.18, and 125A.26 to 125A.48, for resident pupils 
8.26 	with disabilities who are provided special instruction and services on a shared-time basis 
8.27 	or if resident pupils are not transported, the costs of necessary travel between public 
8.28 	and private schools or neutral instructional sites by essential personnel employed by the 
8.29 	district's program for children with a disability;
8.30 	(vi) transportation for resident pupils with disabilities to and from board and lodging 
8.31 	facilities when the pupil is boarded and lodged for educational purposes;
8.32 	(vii) transportation of pupils for a curricular field trip activity on a school bus 
8.33 	equipped with a power lift when the power lift is required by a student's disability or 
8.34 	section 504 plan; and
8.35 	(viii) services described in clauses (i) to (vii), when provided for pupils with 
8.36 	disabilities in conjunction with a summer instructional program that relates to the 
9.1 	pupil's individualized education program or in conjunction with a learning year program 
9.2 	established under section 124D.128.
9.3 	For purposes of computing special education initial aid under section 125A.76, 
9.4 	subdivision 2, the cost of providing transportation for children with disabilities includes 
9.5 	(A) the additional cost of transporting a homeless student from a temporary nonshelter 
9.6 	home in another district to the school of origin, or a formerly homeless student from a 
9.7 	permanent home in another district to the school of origin but only through the end of 
9.8 	the academic year; and (B) depreciation on district-owned school buses purchased after 
9.9 	July 1, 2005, and used primarily for transportation of pupils with disabilities, calculated 
9.10 	according to paragraph (a), clauses (ii) and (iii). Depreciation costs included in the 
9.11 	disabled transportation category must be excluded in calculating the actual expenditure 
9.12 	per pupil transported in the regular and excess transportation categories according to 
9.13 	paragraph (a). For purposes of subitem (A), a school district may transport a child who 
9.14 	does not have a school of origin to the same school attended by that child's sibling, if 
9.15 	the siblings are homeless.
9.16 	(5) "Nonpublic nonregular transportation" is:
9.17 	(i) transportation from one educational facility to another within the district for 
9.18 	resident pupils enrolled on a shared-time basis in educational programs, excluding 
9.19 	transportation for nonpublic pupils with disabilities under clause (4);
9.20 	(ii) transportation within district boundaries between a nonpublic school and a 
9.21 	public school or a neutral site for nonpublic school pupils who are provided pupil support 
9.22 	services pursuant to section 123B.44; and
9.23 	(iii) late transportation home from school or between schools within a district for 
9.24 	nonpublic school pupils involved in after-school activities.
9.25 	(c) "Mobile unit" means a vehicle or trailer designed to provide facilities for 
9.26 	educational programs and services, including diagnostic testing, guidance and counseling 
9.27 	services, and health services. A mobile unit located off nonpublic school premises is a 
9.28 	neutral site as defined in section 123B.41, subdivision 13.

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

9.30 	Sec. 10. Minnesota Statutes 2012, section 123B.92, subdivision 5, is amended to read:
9.31 		Subd. 5.District reports. (a) Each district must report data to the department as 
9.32 	required by the department to account for transportation expenditures.
9.33 	(b) Salaries and fringe benefits of district employees whose primary duties are 
9.34 	other than transportation, including central office administrators and staff, building 
9.35 	administrators and staff, teachers, social workers, school nurses, and instructional aides, 
10.1 	must not be included in a district's transportation expenditures, except that a district may 
10.2 	include salaries and benefits according to paragraph (c) for (1) an employee designated 
10.3 	as the district transportation director, (2) an employee providing direct support to the 
10.4 	transportation director, or (3) an employee providing direct transportation services such as 
10.5 	a bus driver or bus aide.
10.6 	(c) Salaries and fringe benefits of the district employees listed in paragraph (b), 
10.7 	clauses (1), (2), and (3), who work part time in transportation and part time in other areas 
10.8 	must not be included in a district's transportation expenditures unless the district maintains 
10.9 	documentation of the employee's time spent on pupil transportation matters in the form 
10.10 	and manner prescribed by the department.
10.11 	(d) A school district that contracts for transportation service may allocate 
10.12 	transportation expense to transportation categories based upon contract rates. Districts 
10.13 	may only allocate transportation expense to transportation categories based upon contract 
10.14 	rates if contract rates are reasonably consistent on a cost-per-hour, cost-per-mile, 
10.15 	cost-per-route, or cost-per-student basis. In order to allocate transportation expense based 
10.16 	upon contract rates, a school district, if audited, must be able to demonstrate to the auditor 
10.17 	that variances in the application of transportation cost basis rates are appropriate. 
10.18 	(e) Pupil transportation expenditures, excluding expenditures for capital outlay, 
10.19 	leased buses, student board and lodging, crossing guards, and aides on buses, must may
10.20 	 be allocated among transportation categories based on cost-per-mile or cost-per-student 
10.21 	regardless of whether the transportation services are provided on district-owned or 
10.22 	contractor-owned school buses. Expenditures for school bus driver salaries and fringe 
10.23 	benefits may either be directly charged to the appropriate transportation category or may 
10.24 	be allocated among transportation categories based on cost-per-mile or cost-per-student. 
10.25 	Expenditures by private contractors or individuals who provide transportation exclusively 
10.26 	in one transportation category must be charged directly to the appropriate transportation 
10.27 	category. Transportation services provided by contractor-owned school bus companies 
10.28 	incorporated under different names but owned by the same individual or group of 
10.29 	individuals must be treated as the same company for cost allocation purposes.
10.30 	(e) Notwithstanding paragraph (d), districts contracting for transportation services 
10.31 	are exempt from the standard cost allocation method for authorized and nonauthorized 
10.32 	transportation categories if the district: (1) bids its contracts separately for authorized and 
10.33 	nonauthorized transportation categories and for special transportation separate from regular 
10.34 	and excess transportation; (2) receives bids or quotes from more than one vendor for these 
10.35 	transportation categories; and (3) the district's cost-per-mile does not vary more than ten 
10.36 	percent among categories, excluding salaries and fringe benefits of bus aides. If the costs 
11.1 	reported by the district for contractor-owned operations vary by more than ten percent 
11.2 	among categories, the department shall require the district to reallocate its transportation 
11.3 	costs, excluding salaries and fringe benefits of bus aides, among all categories.

11.4 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 
11.5 	and later.

11.6 	Sec. 11. Minnesota Statutes 2012, section 123B.92, subdivision 9, is amended to read:
11.7 		Subd. 9.Nonpublic pupil transportation aid. (a) A district's nonpublic pupil 
11.8 	transportation aid for the 1996-1997 and later school years for transportation services for 
11.9 	nonpublic school pupils according to sections 123B.88, 123B.84 to 123B.86, and this 
11.10 	section, equals the sum of the amounts computed in paragraphs (b) and (c). This aid does 
11.11 	not limit the obligation to transport pupils under sections 123B.84 to 123B.87.
11.12 	(b) For regular and excess transportation according to subdivision 1, paragraph (b), 
11.13 	clauses (1) and (2), an amount equal to the product of:
11.14 	(1) the district's actual expenditure per pupil transported in the regular and excess 
11.15 	transportation categories during the second preceding school year; times
11.16 	(2) the number of nonpublic school pupils residing in the district who receive regular 
11.17 	or excess transportation service or reimbursement for the current school year; times
11.18 	(3) the ratio of the formula allowance pursuant to section 126C.10, subdivision 2, for 
11.19 	the current school year to the formula allowance pursuant to section 126C.10, subdivision 
11.20 	2, for the second preceding school year.
11.21 	(c) For nonpublic nonregular transportation according to subdivision 1, paragraph 
11.22 	(b), clause (5), an amount equal to the product of:
11.23 	(1) the district's actual expenditure for nonpublic nonregular transportation during 
11.24 	the second preceding school year; times
11.25 	(2) the ratio of the formula allowance pursuant to section 126C.10, subdivision 2, for 
11.26 	the current school year to the formula allowance pursuant to section 126C.10, subdivision 
11.27 	2, for the second preceding school year.
11.28 	(d) Notwithstanding the amount of the formula allowance for fiscal year 2004
11.29 	 years 2015 and 2016 in section 126C.10, subdivision 2, the commissioner shall use the 
11.30 	amount of the formula allowance for the current year minus $415 $414 in determining 
11.31 	the nonpublic pupil transportation revenue in paragraphs (b) and (c) for fiscal year 2004
11.32 	 years 2015 and 2016.

11.33 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
11.34 	and later.

12.1 	Sec. 12. Minnesota Statutes 2012, section 124D.02, subdivision 1, is amended to read:
12.2 		Subdivision 1.Kindergarten instruction. The board may establish and maintain 
12.3 	one or more kindergartens for the instruction of children and after July 1, 1974, shall 
12.4 	provide kindergarten instruction for all eligible children, either in the district or in 
12.5 	another district. All children to be eligible for kindergarten must be at least five years 
12.6 	of age on September 1 of the calendar year in which the school year commences. In 
12.7 	addition all children selected under an early admissions policy established by the school 
12.8 	board may be admitted. If established, a board-adopted early admissions policy must 
12.9 	describe the process and procedures for comprehensive evaluation in cognitive, social, 
12.10 	and emotional developmental domains to help determine the child's ability to meet 
12.11 	kindergarten grade expectations and progress to first grade in the subsequent year. The 
12.12 	comprehensive evaluation must use valid and reliable instrumentation, be aligned with 
12.13 	state kindergarten expectations, and include a parent report and teacher observations of 
12.14 	the child's knowledge, skills, and abilities. The early admissions policy must be made 
12.15 	available to parents in an accessible format and is subject to review by the commissioner 
12.16 	of education. The evaluation is subject to section 127A.41. Nothing in this section 
12.17 	shall prohibit a school district from establishing Head Start, prekindergarten, or nursery 
12.18 	school classes for children below kindergarten age. Any school board with evidence that 
12.19 	providing kindergarten will cause an extraordinary hardship on the school district may 
12.20 	apply to the commissioner of education for an exception.

12.21 	Sec. 13. Minnesota Statutes 2012, section 124D.128, subdivision 2, is amended to read:
12.22 		Subd. 2.Commissioner designation. (a) A state-approved alternative program 
12.23 	designated by the state must be a site. A state-approved alternative program must provide 
12.24 	services to students who meet the criteria in section 124D.68 and who are enrolled in:
12.25 	(1) a district that is served by the state-approved alternative program; or
12.26 	(2) a charter school located within the geographic boundaries of a district that is 
12.27 	served by the state-approved alternative program.
12.28 	(b) A school district or charter school may be approved biennially by the state to 
12.29 	provide additional instructional programming that results in grade level acceleration. The 
12.30 	program must be designed so that students make grade progress during the school year 
12.31 	and graduate prior to the students' peers.
12.32 	(c) (b) To be designated, a district, charter school, or state-approved alternative 
12.33 	program must demonstrate to the commissioner that it will:
12.34 	(1) provide a program of instruction that permits pupils to receive instruction 
12.35 	throughout the entire year; and
13.1 	(2) develop and maintain a separate record system that, for purposes of section 
13.2 	126C.05, permits identification of membership attributable to pupils participating in the 
13.3 	program. The record system and identification must ensure that the program will not have 
13.4 	the effect of increasing the total average daily membership attributable to an individual 
13.5 	pupil as a result of a learning year program. The record system must include the date the 
13.6 	pupil originally enrolled in a learning year program, the pupil's grade level, the date of 
13.7 	each grade promotion, the average daily membership generated in each grade level, the 
13.8 	number of credits or standards earned, and the number needed to graduate.
13.9 	(d) (c) A student who has not completed a school district's graduation requirements 
13.10 	may continue to enroll in courses the student must complete in order to graduate until 
13.11 	the student satisfies the district's graduation requirements or the student is 21 years old, 
13.12 	whichever comes first.

13.13 	Sec. 14. Minnesota Statutes 2012, section 124D.4531, is amended to read:
13.14 	124D.4531 CAREER AND TECHNICAL LEVY REVENUE.
13.15 		Subdivision 1.Career and technical levy revenue. (a) A district with a career and 
13.16 	technical program approved under this section for the fiscal year in which the levy is 
13.17 	certified may levy an amount is eligible for career and technical revenue equal to 35 percent 
13.18 	of approved expenditures in the fiscal year in which the levy is certified for the following:
13.19 	(1) salaries paid to essential, licensed personnel providing direct instructional 
13.20 	services to students in that fiscal year, including extended contracts, for services rendered 
13.21 	in the district's approved career and technical education programs, excluding salaries 
13.22 	reimbursed by another school district under clause (2);
13.23 	(2) amounts paid to another Minnesota school district for salaries of essential, 
13.24 	licensed personnel providing direct instructional services to students in that fiscal year for 
13.25 	services rendered in the district's approved career and technical education programs;
13.26 	(2)(3) contracted services provided by a public or private agency other than a 
13.27 	Minnesota school district or cooperative center under subdivision 7;
13.28 	(3)(4) necessary travel between instructional sites by licensed career and technical 
13.29 	education personnel;
13.30 	(4)(5) necessary travel by licensed career and technical education personnel for 
13.31 	vocational student organization activities held within the state for instructional purposes;
13.32 	(5)(6) curriculum development activities that are part of a five-year plan for 
13.33 	improvement based on program assessment;
13.34 	(6)(7) necessary travel by licensed career and technical education personnel for 
13.35 	noncollegiate credit-bearing professional development; and
14.1 	(7)(8) specialized vocational instructional supplies.
14.2 	(b) Up to ten percent of a district's career and technical levy revenue may be spent on 
14.3 	equipment purchases. Districts using the career and technical levy revenue for equipment 
14.4 	purchases must report to the department on the improved learning opportunities for 
14.5 	students that result from the investment in equipment.
14.6 	(c) The district must recognize the full amount of this levy as revenue for the fiscal 
14.7 	year in which it is certified.
14.8 	(d) The amount of the levy certified revenue calculated under this subdivision may 
14.9 	not exceed $17,850,000 for taxes payable in 2012, $15,520,000 for taxes payable in 2013, 
14.10 	and $15,393,000$20,657,000 for taxes payable in 2014.
14.11 	(e) If the estimated levy revenue exceeds the amount in paragraph (d), the 
14.12 	commissioner must reduce the percentage in paragraph (a), clause (2), until the estimated 
14.13 	levy revenue no longer exceeds the limit in paragraph (d).
14.14 		Subd. 1a.Career and technical levy. (a) For fiscal year 2014 only, a district may 
14.15 	levy an amount not more than the product of its career and technical revenue times the 
14.16 	lesser of one or the ratio of its adjusted net tax capacity per adjusted pupil unit in the fiscal 
14.17 	year in which the levy is certified to the career and technical revenue equalizing factor. 
14.18 	The career and technical revenue equalizing factor for fiscal year 2014 equals $7,612.
14.19 	(b) For fiscal year 2015 and later, a district may levy an amount not more than 
14.20 	the product of its career and technical revenue times the lesser of one or the ratio of its 
14.21 	adjusted net tax capacity per adjusted pupil unit in the fiscal year in which the levy is 
14.22 	certified to the career and technical revenue equalizing factor. The career and technical 
14.23 	revenue equalizing factor for fiscal year 2015 and later equals $7,612.
14.24 		Subd. 1b.Career and technical aid. For fiscal year 2014 and later, a district's 
14.25 	career and technical aid equals its career and technical revenue less its career and technical 
14.26 	levy. If the district levy is less than the permitted levy, the district's career and technical 
14.27 	aid shall be reduced proportionately.
14.28 		Subd. 2.Allocation from cooperative centers and intermediate districts. For 
14.29 	purposes of this section, a cooperative center or an intermediate district must allocate its 
14.30 	approved expenditures for career and technical education programs among participating 
14.31 	districts.
14.32 		Subd. 3.Levy Revenue guarantee. Notwithstanding subdivision 1, paragraph (a), 
14.33 	the career and technical education levy revenue for a district is not less than the lesser of:
14.34 	(1) the district's career and technical education levy authority revenue for the 
14.35 	previous fiscal year; or
15.1 	(2) 100 percent of the approved expenditures for career and technical programs 
15.2 	included in subdivision 1, paragraph (b), for the fiscal year in which the levy is certified.
15.3 		Subd. 3a.Levy, pay 2012-2014 Revenue adjustments. Notwithstanding 
15.4 	subdivisions 1, 1a, and 3, for taxes payable in 2012 to 2014 only, the department must 
15.5 	calculate the career and technical levy authority revenue for each district according to 
15.6 	Minnesota Statutes 2010, section 124D.4531, and adjust the levy authority revenue for 
15.7 	each district proportionately to meet the statewide levy revenue target under subdivision 1, 
15.8 	paragraph (d). For purposes of calculating the levy revenue guarantee under subdivision 
15.9 	3, the career and technical education levy authority revenue for the previous fiscal year 
15.10 	is the levy authority revenue according to Minnesota Statutes 2010, section 124D.4531, 
15.11 	before adjustments to meet the statewide levy revenue target.
15.12 		Subd. 4.District reports. Each district or cooperative center must report data to the 
15.13 	department for all career and technical education programs as required by the department 
15.14 	to implement the career and technical levy revenue formula.
15.15 		Subd. 5.Allocation from districts participating in agreements for secondary 
15.16 	education or interdistrict cooperation. For purposes of this section, a district with a 
15.17 	career and technical program approved under this section that participates in an agreement 
15.18 	under section 123A.30 or 123A.32 must allocate its levy revenue authority under this 
15.19 	section among participating districts.

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

15.21 	Sec. 15. Minnesota Statutes 2012, section 126C.05, subdivision 1, is amended to read:
15.22 		Subdivision 1.Pupil unit. Pupil units for each Minnesota resident pupil under the 
15.23 	age of 21 or who meets the requirements of section 120A.20, subdivision 1, paragraph (c), 
15.24 	in average daily membership enrolled in the district of residence, in another district under 
15.25 	sections 123A.05 to 123A.08, 124D.03, 124D.08, or 124D.68; in a charter school under 
15.26 	section 124D.10; or for whom the resident district pays tuition under section 123A.18, 
15.27 	123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, subdivision 4, 124D.04, 
15.28 	124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65, shall be counted according to this 
15.29 	subdivision.
15.30 	(a) A prekindergarten pupil with a disability who is enrolled in a program approved 
15.31 	by the commissioner and has an individualized education program is counted as the ratio 
15.32 	of the number of hours of assessment and education service to 825 times 1.25 1.0 with a 
15.33 	minimum average daily membership of 0.28, but not more than 1.25 1.0 pupil units.
15.34 	(b) A prekindergarten pupil who is assessed but determined not to be disabled is 
15.35 	counted as the ratio of the number of hours of assessment service to 825 times 1.25 1.0.
16.1 	(c) A kindergarten pupil with a disability who is enrolled in a program approved 
16.2 	by the commissioner is counted as the ratio of the number of hours of assessment and 
16.3 	education services required in the fiscal year by the pupil's individualized education 
16.4 	program to 875, but not more than one.
16.5 	(d) A kindergarten pupil who is not included in paragraph (c) is counted as .612 pupil 
16.6 	units A kindergarten pupil who is not included in paragraph (c) is counted as 1.0 pupil 
16.7 	units if the pupil is enrolled in a free all-day, every day kindergarten program available to 
16.8 	all kindergarten pupils at the pupil's school that meets the minimum hours requirement in 
16.9 	section 120A.41, or is counted as .55 pupil units, if the pupil is not enrolled in a free all-day, 
16.10 	every day kindergarten program available to all kindergarten pupils at the pupil's school.
16.11 	(e) A pupil who is in any of grades 1 to 3 6 is counted as 1.115 1.0 pupil units for 
16.12 	fiscal year 2000 and thereafter.
16.13 	(f) A pupil who is any of grades 4 to 6 is counted as 1.06 pupil units for fiscal 
16.14 	year 1995 and thereafter.
16.15 	(g) A pupil who is in any of grades 7 to 12 is counted as 1.3 1.2 pupil units.
16.16 	(h) (g) A pupil who is in the postsecondary enrollment options program is counted 
16.17 	as 1.3 1.2 pupil units.

16.18 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
16.19 	and later.

16.20 	Sec. 16. Minnesota Statutes 2012, section 126C.05, subdivision 5, is amended to read:
16.21 		Subd. 5.Adjusted pupil units. (a) Adjusted pupil units for a district or charter 
16.22 	school means the sum of:
16.23 	(1) the number of pupil units served, according to subdivision 7, plus
16.24 	(2) pupil units according to subdivision 1 for whom the district or charter school pays 
16.25 	tuition under section 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 
16.26 	subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65, minus
16.27 	(3) pupil units according to subdivision 1 for whom the district or charter school 
16.28 	receives tuition under section 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 
16.29 	123B.88, subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65.
16.30 	(b) Adjusted marginal cost pupil units means the greater of:
16.31 	(1) the sum of .77 times the pupil units defined in paragraph (a) for the current school 
16.32 	year and .23 times the pupil units defined in paragraph (a) for the previous school year; or
16.33 	(2) the number of adjusted pupil units defined in paragraph (a) for the current school 
16.34 	year.

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

17.3 	Sec. 17. Minnesota Statutes 2012, section 126C.05, subdivision 6, is amended to read:
17.4 		Subd. 6.Resident pupil units. (a) Resident pupil units for a district means the 
17.5 	number of pupil units according to subdivision 1 residing in the district.
17.6 	(b) Resident marginal cost pupil units means the greater of:
17.7 	(1) the sum of .77 times the pupil units defined in paragraph (a) for the current year 
17.8 	and .23 times the pupil units defined in paragraph (a) for the previous school year; or
17.9 	(2) the number of resident pupil units defined in paragraph (a) for the current school 
17.10 	year.

17.11 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
17.12 	and later.

17.13 	Sec. 18. Minnesota Statutes 2012, section 126C.05, subdivision 15, is amended to read:
17.14 		Subd. 15.Learning year pupil units. (a) When a pupil is enrolled in a learning 
17.15 	year program under section 124D.128, an area learning center or an alternative learning 
17.16 	program approved by the commissioner under sections 123A.05 and 123A.06, or a 
17.17 	contract alternative program under section 124D.68, subdivision 3, paragraph (d), or 
17.18 	subdivision 3a, for more than 1,020 hours in a school year for a secondary student, more 
17.19 	than 935 hours in a school year for an elementary student, more than 850 hours in a school 
17.20 	year for a kindergarten student without a disability in an all-day kindergarten program, 
17.21 	or more than 425 hours in a school year for a half-day kindergarten student without a 
17.22 	disability, that pupil may be counted as more than one pupil in average daily membership 
17.23 	for purposes of section 126C.10, subdivision 2a. The amount in excess of one pupil must 
17.24 	be determined by the ratio of the number of hours of instruction provided to that pupil in 
17.25 	excess of: (i) the greater of 1,020 hours or the number of hours required for a full-time 
17.26 	secondary pupil in the district to 1,020 for a secondary pupil; (ii) the greater of 935 hours 
17.27 	or the number of hours required for a full-time elementary pupil in the district to 935 for 
17.28 	an elementary pupil in grades 1 through 6; and (iii) the greater of 425 hours or the number 
17.29 	of hours required for a full-time kindergarten student without a disability in the district to 
17.30 	425 for a kindergarten student without a disability; and (iv) the greater of 425 hours or the 
17.31 	number of hours required for a half-time kindergarten student without a disability in the 
17.32 	district to 425 for a half-day kindergarten student without a disability. Hours that occur 
17.33 	after the close of the instructional year in June shall be attributable to the following fiscal 
17.34 	year. A kindergarten student must not be counted as more than 1.2 pupils in average daily 
18.1 	membership under this subdivision. A student in kindergarten or grades 1 through 12 must 
18.2 	not be counted as more than 1.2 pupils in average daily membership under this subdivision.
18.3 	(b)(i) To receive general education revenue for a pupil in an area learning center 
18.4 	or alternative learning program that has an independent study component, a district 
18.5 	must meet the requirements in this paragraph. The district must develop, for the pupil, 
18.6 	a continual learning plan consistent with section 124D.128, subdivision 3. Each school 
18.7 	district that has an area learning center or alternative learning program must reserve 
18.8 	revenue in an amount equal to at least 90 percent of the district average general education 
18.9 	revenue per pupil unit, minus an amount equal to the product of the formula allowance 
18.10 	according to section 126C.10, subdivision 2, times .0485 .0466, calculated without basic 
18.11 	skills and transportation sparsity revenue, times the number of pupil units generated by 
18.12 	students attending an area learning center or alternative learning program. The amount of 
18.13 	reserved revenue available under this subdivision may only be spent for program costs 
18.14 	associated with the area learning center or alternative learning program. Basic skills 
18.15 	revenue generated according to section 126C.10, subdivision 4, by pupils attending the 
18.16 	eligible program must be allocated to the program.
18.17 	(ii) General education revenue for a pupil in a state-approved alternative program 
18.18 	without an independent study component must be prorated for a pupil participating for less 
18.19 	than a full year, or its equivalent. The district must develop a continual learning plan for the 
18.20 	pupil, consistent with section 124D.128, subdivision 3. Each school district that has an area 
18.21 	learning center or alternative learning program must reserve revenue in an amount equal to 
18.22 	at least 90 percent of the district average general education revenue per pupil unit, minus 
18.23 	an amount equal to the product of the formula allowance according to section 126C.10, 
18.24 	subdivision 2, times .0485 .0466, calculated without basic skills and transportation sparsity 
18.25 	revenue, times the number of pupil units generated by students attending an area learning 
18.26 	center or alternative learning program. The amount of reserved revenue available under this 
18.27 	subdivision may only be spent for program costs associated with the area learning center or 
18.28 	alternative learning program. Basic skills revenue generated according to section 126C.10, 
18.29 	subdivision 4, by pupils attending the eligible program must be allocated to the program.
18.30 	(iii) General education revenue for a pupil in a state-approved alternative program 
18.31 	that has an independent study component must be paid for each hour of teacher contact 
18.32 	time and each hour of independent study time completed toward a credit or graduation 
18.33 	standards necessary for graduation. Average daily membership for a pupil shall equal the 
18.34 	number of hours of teacher contact time and independent study time divided by 1,020.
18.35 	(iv) For a state-approved alternative program having an independent study 
18.36 	component, the commissioner shall require a description of the courses in the program, the 
19.1 	kinds of independent study involved, the expected learning outcomes of the courses, and 
19.2 	the means of measuring student performance against the expected outcomes.

19.3 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
19.4 	and later.

19.5 	Sec. 19. Minnesota Statutes 2012, section 126C.10, subdivision 1, is amended to read:
19.6 		Subdivision 1.General education revenue. (a) For fiscal years 2013 and 2014, the 
19.7 	general education revenue for each district equals the sum of the district's basic revenue, 
19.8 	extended time revenue, gifted and talented revenue, small schools revenue, basic skills 
19.9 	revenue, training and experience revenue, secondary sparsity revenue, elementary sparsity 
19.10 	revenue, transportation sparsity revenue, total operating capital revenue, equity revenue, 
19.11 	alternative teacher compensation revenue, and transition revenue.
19.12 	(b)  For fiscal year 2015 and later, the general education revenue for each district 
19.13 	equals the sum of the district's basic revenue, extended time revenue, gifted and talented 
19.14 	revenue, declining enrollment revenue, small schools revenue, basic skills revenue, 
19.15 	secondary sparsity revenue, elementary sparsity revenue, transportation sparsity revenue, 
19.16 	total operating capital revenue, equity revenue, pension adjustment revenue, and transition 
19.17 	revenue.

19.18 	Sec. 20. Minnesota Statutes 2012, section 126C.10, subdivision 2, is amended to read:
19.19 		Subd. 2.Basic revenue. For fiscal year 2014, the basic revenue for each district 
19.20 	equals the formula allowance times the adjusted marginal cost pupil units for the school 
19.21 	year. The formula allowance for fiscal year 2011 is $5,124. The formula allowance for 
19.22 	fiscal year 2012 is $5,174. For fiscal year 2015 and later, the basic revenue for each district 
19.23 	equals the formula allowance times the adjusted pupil units for the school year. The formula 
19.24 	allowance for fiscal year 2013 and subsequent years is $5,224. The formula allowance for 
19.25 	fiscal year 2014 is $5,302. The formula allowance for fiscal year 2015 and later is $5,806.

19.26 	Sec. 21. Minnesota Statutes 2012, section 126C.10, subdivision 2a, is amended to read:
19.27 		Subd. 2a.Extended time revenue. (a) A school district's extended time revenue 
19.28 	is equal to the product of $4,601 $5,017 and the sum of the adjusted marginal cost pupil 
19.29 	units of the district for each pupil in average daily membership in excess of 1.0 and less 
19.30 	than 1.2 according to section 126C.05, subdivision 8.
19.31 	(b) A school district's extended time revenue may be used for extended day 
19.32 	programs, extended week programs, summer school, and other programming authorized 
19.33 	under the learning year program.

20.1 	Sec. 22. Minnesota Statutes 2012, section 126C.10, subdivision 2b, is amended to read:
20.2 		Subd. 2b.Gifted and talented revenue. Gifted and talented revenue for each 
20.3 	district equals the district's adjusted marginal cost pupil units for that school year times 
20.4 	$12 for fiscal year 2008 and later $13. A school district must reserve gifted and talented 
20.5 	revenue and, consistent with section 120B.15, must spend the revenue only to:
20.6 	(1) identify gifted and talented students;
20.7 	(2) provide education programs for gifted and talented students; or
20.8 	(3) provide staff development to prepare teachers to best meet the unique needs 
20.9 	of gifted and talented students.

20.10 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
20.11 	and later.

20.12 	Sec. 23. Minnesota Statutes 2012, section 126C.10, subdivision 2c, is amended to read:
20.13 		Subd. 2c.Small schools revenue. (a) A school district, not including a charter 
20.14 	school, is eligible for small schools revenue equal to the greater of the calculation under 
20.15 	paragraph (b) or (d).
20.16 	(b) The product of:
20.17 	(1) $5,224 $544;
20.18 	(2) the district's adjusted marginal cost pupil units for that year; and
20.19 	(3) the greater of zero or the ratio of (i) 1,000 960 less the district's adjusted marginal 
20.20 	cost pupil units for that year, to (ii) 1,000; and
20.21 	(4) 0.10 960.
20.22 	(c) For the purpose of revenue calculated under paragraph (d), "district" includes a 
20.23 	qualifying high school under subdivision 6 that is located in a district with more than one 
20.24 	qualifying high school under subdivision 6.
20.25 	(d) The product of:
20.26 	(1) $544;
20.27 	(2) the district's adjusted pupil units for that year; and
20.28 	(3) the greater of zero or the ratio of (i) 960 less the district's adjusted pupil units 
20.29 	for that year, to (ii) 960.

20.30 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2015 and 
20.31 	later.

20.32 	Sec. 24. Minnesota Statutes 2012, section 126C.10, is amended by adding a 
20.33 	subdivision to read:
21.1 		Subd. 2d.Declining enrollment revenue. A school district's declining enrollment 
21.2 	revenue equals the greater of zero or the product of: (1) 28 percent of the formula 
21.3 	allowance for that year and (2) the difference between the adjusted pupil units for the 
21.4 	preceding year and the adjusted pupil units for the current year.

21.5 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
21.6 	and later.

21.7 	Sec. 25. Minnesota Statutes 2012, section 126C.10, subdivision 3, is amended to read:
21.8 		Subd. 3.Compensatory education revenue. (a) For fiscal year 2014, the 
21.9 	compensatory education revenue for each building in the district equals the formula 
21.10 	allowance minus $415 times the compensation revenue pupil units computed according 
21.11 	to section 126C.05, subdivision 3. For fiscal year 2015 and later, the compensatory 
21.12 	education revenue for each building in the district equals the formula allowance minus 
21.13 	$839 times the compensation revenue pupil units computed according to section 126C.05, 
21.14 	subdivision 3. Revenue shall be paid to the district and must be allocated according to 
21.15 	section 126C.15, subdivision 2.
21.16 	(b) When the district contracting with an alternative program under section 124D.69
21.17 	changes prior to the start of a school year, the compensatory revenue generated by pupils 
21.18 	attending the program shall be paid to the district contracting with the alternative program 
21.19 	for the current school year, and shall not be paid to the district contracting with the 
21.20 	alternative program for the prior school year.
21.21 	(c) When the fiscal agent district for an area learning center changes prior to the start 
21.22 	of a school year, the compensatory revenue shall be paid to the fiscal agent district for the 
21.23 	current school year, and shall not be paid to the fiscal agent district for the prior school year.

21.24 	Sec. 26. Minnesota Statutes 2012, section 126C.10, subdivision 7, is amended to read:
21.25 		Subd. 7.Secondary sparsity revenue. (a) A district's secondary sparsity revenue 
21.26 	for a school year equals the sum of the results of the following calculation for each 
21.27 	qualifying high school in the district:
21.28 	(1) the formula allowance for the school year minus $530, multiplied by
21.29 	(2) the secondary average daily membership of pupils served in the high school, 
21.30 	multiplied by
21.31 	(3) the quotient obtained by dividing 400 minus the secondary average daily 
21.32 	membership by 400 plus the secondary daily membership, multiplied by
21.33 	(4) the lesser of 1.5 or the quotient obtained by dividing the isolation index minus 
21.34 	23 by ten.
22.1 	(b) A newly formed district that is the result of districts combining under the 
22.2 	cooperation and combination program or consolidating under section 123A.48 must 
22.3 	receive secondary sparsity revenue equal to the greater of: (1) the amount calculated 
22.4 	under paragraph (a) for the combined district; or (2) the sum of the amounts of secondary 
22.5 	sparsity revenue the former districts had in the year prior to consolidation, increased for 
22.6 	any subsequent changes in the secondary sparsity formula.

22.7 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
22.8 	and later.

22.9 	Sec. 27. Minnesota Statutes 2012, section 126C.10, subdivision 8, is amended to read:
22.10 		Subd. 8.Elementary sparsity revenue. A district's elementary sparsity revenue 
22.11 	equals the sum of the following amounts for each qualifying elementary school in the 
22.12 	district:
22.13 	(1) the formula allowance for the year minus $530, multiplied by
22.14 	(2) the elementary average daily membership of pupils served in the school, 
22.15 	multiplied by
22.16 	(3) the quotient obtained by dividing 140 minus the elementary average daily 
22.17 	membership by 140 plus the average daily membership.

22.18 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
22.19 	and later.

22.20 	Sec. 28. Minnesota Statutes 2012, section 126C.10, subdivision 13, is amended to read:
22.21 		Subd. 13.Total operating capital revenue. (a) Total operating capital revenue for 
22.22 	a district equals the amount determined under paragraph (b) or (c), plus $73 $79 times the 
22.23 	adjusted marginal cost pupil units for the school year. The revenue must be placed in a 
22.24 	reserved account in the general fund and may only be used according to subdivision 14.
22.25 	(b) Capital revenue for a district equals $100 $109 times the district's maintenance 
22.26 	cost index times its adjusted marginal cost pupil units for the school year.
22.27 	(c) The revenue for a district that operates a program under section 124D.128, is 
22.28 	increased by an amount equal to $30 $31 times the number of marginal cost adjusted pupil 
22.29 	units served at the site where the program is implemented.

22.30 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
22.31 	and later.

22.32 	Sec. 29. Minnesota Statutes 2012, section 126C.10, subdivision 13a, is amended to read:
23.1 		Subd. 13a.Operating capital levy. To obtain operating capital revenue for fiscal 
23.2 	year 2007 2015 and later, a district may levy an amount not more than the product of its 
23.3 	operating capital revenue for the fiscal year times the lesser of one or the ratio of its 
23.4 	adjusted net tax capacity per adjusted marginal cost pupil unit to the operating capital 
23.5 	equalizing factor. The operating capital equalizing factor equals $10,194 $14,500.

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

23.7 	Sec. 30. Minnesota Statutes 2012, section 126C.10, subdivision 14, is amended to read:
23.8 		Subd. 14.Uses of total operating capital revenue. Total operating capital revenue 
23.9 	may be used only for the following purposes:
23.10 	(1) to acquire land for school purposes;
23.11 	(2) to acquire or construct buildings for school purposes;
23.12 	(3) to rent or lease buildings, including the costs of building repair or improvement 
23.13 	that are part of a lease agreement;
23.14 	(4) to improve and repair school sites and buildings, and equip or reequip school 
23.15 	buildings with permanent attached fixtures, including library media centers;
23.16 	(5) for a surplus school building that is used substantially for a public nonschool 
23.17 	purpose;
23.18 	(6) to eliminate barriers or increase access to school buildings by individuals with a 
23.19 	disability;
23.20 	(7) to bring school buildings into compliance with the State Fire Code adopted 
23.21 	according to chapter 299F;
23.22 	(8) to remove asbestos from school buildings, encapsulate asbestos, or make 
23.23 	asbestos-related repairs;
23.24 	(9) to clean up and dispose of polychlorinated biphenyls found in school buildings;
23.25 	(10) to clean up, remove, dispose of, and make repairs related to storing heating fuel 
23.26 	or transportation fuels such as alcohol, gasoline, fuel oil, and special fuel, as defined 
23.27 	in section 296A.01;
23.28 	(11) for energy audits for school buildings and to modify buildings if the audit 
23.29 	indicates the cost of the modification can be recovered within ten years;
23.30 	(12) to improve buildings that are leased according to section 123B.51, subdivision 4;
23.31 	(13) to pay special assessments levied against school property but not to pay 
23.32 	assessments for service charges;
23.33 	(14) to pay principal and interest on state loans for energy conservation according to 
23.34 	section 216C.37 or loans made under the Douglas J. Johnson Economic Protection Trust 
23.35 	Fund Act according to sections 298.292 to 298.298;
24.1 	(15) to purchase or lease interactive telecommunications equipment;
24.2 	(16) by board resolution, to transfer money into the debt redemption fund to: (i) 
24.3 	pay the amounts needed to meet, when due, principal and interest payments on certain 
24.4 	obligations issued according to chapter 475; or (ii) pay principal and interest on debt 
24.5 	service loans or capital loans according to section 126C.70;
24.6 	(17) to pay operating capital-related assessments of any entity formed under a 
24.7 	cooperative agreement between two or more districts;
24.8 	(18) to purchase or lease computers and related materials hardware, software, and 
24.9 	annual licensing fees, copying machines, telecommunications equipment, and other 
24.10 	noninstructional equipment;
24.11 	(19) to purchase or lease assistive technology or equipment for instructional 
24.12 	programs;
24.13 	(20) to purchase textbooks as defined in section 123B.41, subdivision 2;
24.14 	(21) to purchase new and replacement library media resources or technology;
24.15 	(22) to lease or purchase vehicles;
24.16 	(23) to purchase or lease telecommunications equipment, computers, and related 
24.17 	equipment for integrated information management systems for:
24.18 	(i) managing and reporting learner outcome information for all students under a 
24.19 	results-oriented graduation rule;
24.20 	(ii) managing student assessment, services, and achievement information required 
24.21 	for students with individualized education programs; and
24.22 	(iii) other classroom information management needs;
24.23 	(24) to pay personnel costs directly related to the acquisition, operation, and 
24.24 	maintenance of telecommunications systems, computers, related equipment, and network 
24.25 	and applications software; and
24.26 	(25) to pay the costs directly associated with closing a school facility, including 
24.27 	moving and storage costs.

24.28 	Sec. 31. Minnesota Statutes 2012, section 126C.10, subdivision 18, is amended to read:
24.29 		Subd. 18.Transportation sparsity revenue allowance. (a) A district's 
24.30 	transportation sparsity allowance equals the greater of zero or the result of the following 
24.31 	computation:
24.32 	(i) Multiply the formula allowance according to subdivision 2, by .1469 .141.
24.33 	(ii) Multiply the result in clause (i) by the district's sparsity index raised to the 
24.34 	26/100 power.
25.1 	(iii) Multiply the result in clause (ii) by the district's density index raised to the 
25.2 	13/100 power.
25.3 	(iv) Multiply the formula allowance according to subdivision 2, by .0485 .0466.
25.4 	(v) Subtract the result in clause (iv) from the result in clause (iii).
25.5 	(b) Transportation sparsity revenue is equal to the transportation sparsity allowance 
25.6 	times the adjusted marginal cost pupil units.

25.7 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
25.8 	and later.

25.9 	Sec. 32. Minnesota Statutes 2012, section 126C.10, subdivision 24, is amended to read:
25.10 		Subd. 24.Equity revenue. (a) A school district qualifies for equity revenue if:
25.11 	(1) the school district's adjusted marginal cost pupil unit amount of basic revenue, 
25.12 	transition revenue, and referendum revenue is less than the value of the school district at 
25.13 	or immediately above the 95th percentile of school districts in its equity region for those 
25.14 	revenue categories; and
25.15 	(2) the school district's administrative offices are not located in a city of the first 
25.16 	class on July 1, 1999.
25.17 	(b) Equity revenue for a qualifying district that receives referendum revenue under 
25.18 	section 126C.17, subdivision 4, equals the product of (1) the district's adjusted marginal 
25.19 	cost pupil units for that year; times (2) the sum of (i) $13 $14, plus (ii) $75 $80, times the 
25.20 	school district's equity index computed under subdivision 27.
25.21 	(c) Equity revenue for a qualifying district that does not receive referendum revenue 
25.22 	under section 126C.17, subdivision 4, equals the product of the district's adjusted marginal 
25.23 	cost pupil units for that year times $13 $14.
25.24 	(d) A school district's equity revenue is increased by the greater of zero or an amount 
25.25 	equal to the district's resident marginal cost pupil units times the difference between ten 
25.26 	percent of the statewide average amount of referendum revenue per resident marginal cost
25.27 	 pupil unit for that year and the district's referendum revenue per resident marginal cost
25.28 	 pupil unit. A school district's revenue under this paragraph must not exceed $100,000 for 
25.29 	that year.
25.30 	(e) A school district's equity revenue for a school district located in the metro equity 
25.31 	region equals the amount computed in paragraphs (b), (c), and (d) multiplied by 1.25.
25.32 	(f) For fiscal year 2007 and later, notwithstanding paragraph (a), clause (2), A school 
25.33 	district that has per pupil referendum revenue below the 95th percentile qualifies for
25.34 	 district's additional equity revenue equal to $46 equals $50 times its adjusted marginal 
25.35 	cost pupil units.
26.1 	(g) A district that does not qualify for revenue under paragraph (f) qualifies for 
26.2 	equity revenue equal to $46 times its adjusted marginal cost pupil units.

26.3 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
26.4 	and later.

26.5 	Sec. 33. Minnesota Statutes 2012, section 126C.10, subdivision 29, is amended to read:
26.6 		Subd. 29.Equity levy. To obtain equity revenue for fiscal year 2005 2015 and later, 
26.7 	a district may levy an amount not more than the product of its equity revenue for the 
26.8 	fiscal year times the lesser of one or the ratio of its referendum market value per resident 
26.9 	marginal cost pupil unit to $476,000 $510,000.

26.10 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
26.11 	and later.

26.12 	Sec. 34. Minnesota Statutes 2012, section 126C.10, subdivision 31, is amended to read:
26.13 		Subd. 31.Transition revenue. (a) A district's transition allowance equals the sum of 
26.14 	the transition revenue the district would have received for fiscal year 2015 under Minnesota 
26.15 	Statutes 2012, section 126C.10, subdivisions 31, 31a, and 31c, and the greater of zero or 
26.16 	the product of the ratio of the number of adjusted marginal cost pupil units the district 
26.17 	would have counted for fiscal year 2004 under Minnesota Statutes 2002 to the district's 
26.18 	adjusted marginal cost pupil units for fiscal year 2004, times the difference between: 
26.19 	(1) the lesser sum of:
26.20 	(i) the district's general education revenue per adjusted marginal cost pupil unit 
26.21 	for fiscal year 2003 or the amount of general education revenue the district would have 
26.22 	received per adjusted marginal cost pupil unit for fiscal year 2004 2015 according to 
26.23 	Minnesota Statutes 2002, 2012, section 126C.10;
26.24 	(ii) the integration revenue the district received for fiscal year 2013 under Minnesota 
26.25 	Statutes 2012, section 124D.86;
26.26 	(iii) the pension adjustment the district would have received for fiscal year 2015 
26.27 	under Minnesota Statutes 2012, section 127A.50;
26.28 	(iv) the special education aid the district would have received for fiscal year 2015 
26.29 	under Minnesota Statutes 2012, section 125A.76; and
26.30 	(v) the special education excess cost aid the district would have received for fiscal 
26.31 	year 2015 under Minnesota Statutes 2012, section 125A.79;  and
26.32 	(2) the sum of the district's:
27.1 	(i) general education revenue for fiscal year 2004 2015 excluding transition revenue 
27.2 	under section 126C.10;
27.3 	(ii) achievement and integration revenue for fiscal year 2015 under section 
27.4 	124D.862; and
27.5 	(iii) special education aid for fiscal year 2015 under section 125A.76; and
27.6 	divided by the number of adjusted marginal cost pupil units the district would have 
27.7 	counted for fiscal year 2004 under Minnesota Statutes 2002 2015.
27.8 	(b) A district's transition revenue for fiscal years 2006 through 2009 equals the sum of 
27.9 	the product of the district's transition allowance times the district's adjusted marginal cost 
27.10 	pupil units plus the district's transition for prekindergarten revenue under subdivision 31a.
27.11 	(c) (b) A district's transition revenue for fiscal year 2010 2015 and later equals the 
27.12 	sum of the product of the district's transition allowance times the district's adjusted marginal 
27.13 	cost pupil units plus the district's transition for prekindergarten revenue under subdivision 
27.14 	31a plus the district's transition for tuition reciprocity revenue under subdivision 31c.

27.15 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
27.16 	and later.

27.17 	Sec. 35. Minnesota Statutes 2012, section 126C.10, subdivision 32, is amended to read:
27.18 		Subd. 32.Transition levy. To obtain transition revenue for fiscal year 2005 2015
27.19 	 and later, a district may levy an amount not more than the product of its transition revenue 
27.20 	for the fiscal year times the lesser of one or the ratio of its referendum market value per 
27.21 	resident marginal cost pupil unit to $476,000 $510,000.

27.22 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
27.23 	and later.

27.24 	Sec. 36. Minnesota Statutes 2012, section 126C.10, subdivision 34, is amended to read:
27.25 		Subd. 34.Basic alternative teacher compensation aid. (a) For fiscal years 2007, 
27.26 	2008, and 2009, the basic alternative teacher compensation aid for a school district 
27.27 	with a plan approved under section 122A.414, subdivision 2b, equals 73.1 percent of 
27.28 	the alternative teacher compensation revenue under section 122A.415, subdivision 1. 
27.29 	The basic alternative teacher compensation aid for an intermediate school district or 
27.30 	charter school with a plan approved under section 122A.414, subdivisions 2a and 2b, if 
27.31 	the recipient is a charter school, equals $260 times the number of pupils enrolled in the 
27.32 	school on October 1 of the previous fiscal year, or on October 1 of the current fiscal 
27.33 	year for a charter school in the first year of operation, times the ratio of the sum of the 
28.1 	alternative teacher compensation aid and alternative teacher compensation levy for all 
28.2 	participating school districts to the maximum alternative teacher compensation revenue 
28.3 	for those districts under section 122A.415, subdivision 1.
28.4 	(b) For fiscal years 2010 and later 2013 and 2014 only, the basic alternative 
28.5 	teacher compensation aid for a school with a plan approved under section 122A.414, 
28.6 	subdivision 2b, equals 65 percent of the alternative teacher compensation revenue under 
28.7 	section 122A.415, subdivision 1. The basic alternative teacher compensation aid for 
28.8 	an intermediate school district or charter school with a plan approved under section 
28.9 	122A.414, subdivisions 2a and 2b, if the recipient is a charter school, equals $260 times 
28.10 	the number of pupils enrolled in the school on October 1 of the previous year, or on 
28.11 	October 1 of the current year for a charter school in the first year of operation, times 
28.12 	the ratio of the sum of the alternative teacher compensation aid and alternative teacher 
28.13 	compensation levy for all participating school districts to the maximum alternative teacher 
28.14 	compensation revenue for those districts under section 122A.415, subdivision 1.
28.15 	(c) (b) Notwithstanding paragraphsparagraph (a) and (b) and section 122A.415, 
28.16 	subdivision 1, the state total basic alternative teacher compensation aid entitlement must 
28.17 	not exceed $75,636,000 for fiscal year 2007 and later. The commissioner must limit the 
28.18 	amount of alternative teacher compensation aid approved under section 122A.415 so as 
28.19 	not to exceed these limits.

28.20 	Sec. 37. Minnesota Statutes 2012, section 126C.10, subdivision 35, is amended to read:
28.21 		Subd. 35.Alternative teacher compensation levy. For fiscal year 2007 years 2013
28.22 	 and later 2014 only, the alternative teacher compensation levy for a district receiving basic 
28.23 	alternative teacher compensation aid equals the product of (1) the difference between the 
28.24 	district's alternative teacher compensation revenue and the district's basic alternative 
28.25 	teacher compensation aid times (2) the lesser of one or the ratio of the district's adjusted 
28.26 	net tax capacity per adjusted pupil unit to $5,634.

28.27 	Sec. 38. Minnesota Statutes 2012, section 126C.10, subdivision 36, is amended to read:
28.28 		Subd. 36.Alternative teacher compensation aid. (a) For fiscal year 2007 years 
28.29 	2013 and later 2014 only, a district's alternative teacher compensation equalization aid 
28.30 	equals the district's alternative teacher compensation revenue minus the district's basic 
28.31 	alternative teacher compensation aid minus the district's alternative teacher compensation 
28.32 	levy. If a district does not levy the entire amount permitted, the alternative teacher 
28.33 	compensation equalization aid must be reduced in proportion to the actual amount levied.
29.1 	(b) A district's alternative teacher compensation aid equals the sum of the 
29.2 	district's basic alternative teacher compensation aid and the district's alternative teacher 
29.3 	compensation equalization aid.

29.4 	Sec. 39. Minnesota Statutes 2012, section 126C.10, is amended by adding a 
29.5 	subdivision to read:
29.6 		Subd. 38.Pension adjustment revenue. A school district's pension adjustment 
29.7 	revenue equals the greater of zero or the product of:
29.8 	(1) the difference between the district's adjustment under Minnesota Statutes 2012, 
29.9 	section 127A.50, subdivision 1, for fiscal year 2014 per adjusted pupil unit and the state 
29.10 	average adjustment under Minnesota Statutes 2012, section 127A.50, subdivision 1, for 
29.11 	fiscal year 2014 per adjusted pupil unit; and
29.12 	(2) the district's adjusted pupil units for the fiscal year.

29.13 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
29.14 	and later.

29.15 	Sec. 40. Minnesota Statutes 2012, section 126C.12, subdivision 1, is amended to read:
29.16 		Subdivision 1.Revenue. Of a district's general education revenue for fiscal year 
29.17 	2000 2015 and thereafter each school district shall reserve an amount equal to the formula
29.18 	allowance multiplied by the following calculation:
29.19 	(1) the sum of adjusted marginal cost pupils in average daily membership, according 
29.20 	to section 126C.05, subdivision 5, in kindergarten times .057 $299; plus
29.21 	(2) the sum of adjusted marginal cost pupils in average daily membership, according 
29.22 	to section 126C.05, subdivision 5, in grades 1 to 3 6 times .115; plus $459.
29.23 	(3) the sum of adjusted marginal cost pupils in average daily membership, according 
29.24 	to section 126C.05, subdivision 5, in grades 4 to 6 times .06.

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

29.26 	Sec. 41. Minnesota Statutes 2012, section 126C.12, subdivision 5, is amended to read:
29.27 		Subd. 5.Additional revenue use. If the board of a district determines that the 
29.28 	district has achieved and is maintaining the class sizes specified in subdivision 4, the board 
29.29 	may use the revenue to reduce class size in grades 4, 5, and 6, provide all-day, everyday 
29.30 	kindergarten, prepare and use individualized learning plans, improve program offerings, 
29.31 	purchase instructional material, services, or technology, or provide staff development 
29.32 	needed for reduced class sizes.

30.1 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015.

30.2 	Sec. 42. Minnesota Statutes 2012, section 126C.126, is amended to read:
30.3 	126C.126 USE OF GENERAL EDUCATION REVENUE FOR ALL-DAY 
30.4 	KINDERGARTEN AND PREKINDERGARTEN.
30.5 	 A school district may spend general education revenue on extended time 
30.6 	kindergarten and prekindergarten programs. At the school board's discretion, the district 
30.7 	may use revenue generated by the all-day kindergarten pupil count under section 126C.05, 
30.8 	subdivision 1, paragraph (d), to meet the needs of three- and four-year-olds in the district. 
30.9 	A school district may not use these funds on programs for three- and four-year-old children 
30.10 	while maintaining a fee-based all-day kindergarten program.

30.11 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
30.12 	and later.

30.13 	Sec. 43. Minnesota Statutes 2012, section 126C.13, is amended by adding a 
30.14 	subdivision to read:
30.15 		Subd. 3a.Student achievement rate. The commissioner must establish the student 
30.16 	achievement rate by July 1 of each year for levies payable in the following year. The 
30.17 	student achievement rate must be a rate, rounded up to the nearest hundredth of a percent, 
30.18 	that, when applied to the adjusted net tax capacity for all districts, raises the amount 
30.19 	specified in this subdivision. The student achievement rate must be the rate that raises 
30.20 	$20,000,000 for fiscal year 2015 and later years. The student achievement rate may not 
30.21 	be changed due to changes or corrections made to a district's adjusted net tax capacity 
30.22 	after the rate has been established. 

30.23 	Sec. 44. Minnesota Statutes 2012, section 126C.13, is amended by adding a 
30.24 	subdivision to read:
30.25 		Subd. 3b.Student achievement levy. To obtain general education revenue, a 
30.26 	district may levy an amount not to exceed the student achievement rate times the adjusted 
30.27 	net tax capacity of the district for the preceding year. If the amount of the student 
30.28 	achievement levy would exceed the general education revenue, the student achievement 
30.29 	levy must be determined according to subdivision 3c.

30.30 	Sec. 45. Minnesota Statutes 2012, section 126C.13, is amended by adding a 
30.31 	subdivision to read:
31.1 		Subd. 3c.Student achievement levy; districts off the formula. (a) If the amount 
31.2 	of the student achievement levy for a district exceeds the district's general education 
31.3 	revenue, excluding operating capital revenue, equity revenue, and transition revenue, the 
31.4 	amount of the student achievement levy must be limited to the district's general education 
31.5 	revenue, excluding operating capital revenue, equity revenue, and transition revenue.
31.6 	(b) A levy made according to this subdivision shall also be construed to be the levy 
31.7 	made according to subdivision 3b.

31.8 	Sec. 46. Minnesota Statutes 2012, section 126C.13, subdivision 4, is amended to read:
31.9 		Subd. 4.General education aid. (a) For fiscal years 2007 2013 and later 2014 only, 
31.10 	a district's general education aid is the sum of the following amounts:
31.11 	(1) general education revenue, excluding equity revenue, total operating capital 
31.12 	revenue, alternative teacher compensation revenue, and transition revenue;
31.13 	(2) operating capital aid under section 126C.10, subdivision 13b;
31.14 	(3) equity aid under section 126C.10, subdivision 30;
31.15 	(4) alternative teacher compensation aid under section 126C.10, subdivision 36;
31.16 	(5) transition aid under section 126C.10, subdivision 33;
31.17 	(6) shared time aid under section 126C.01, subdivision 7;
31.18 	(7) referendum aid under section 126C.17, subdivisions 7 and 7a; and
31.19 	(8) online learning aid according to section 124D.096.
31.20 	(b) For fiscal year 2015 and later, a district's general education aid equals:
31.21 	(1) general education revenue, excluding operating capital revenue, equity revenue, 
31.22 	and transition revenue, minus the student achievement levy, multiplied times the ratio of 
31.23 	the actual amount of student achievement levy levied to the permitted student achievement 
31.24 	levy; plus
31.25 	(2) equity aid under section 126C.10, subdivision 30; plus
31.26 	(3) transition aid under section 126C.10, subdivision 33; plus
31.27 	(4) shared time aid under section 126C.10, subdivision 7; plus
31.28 	(5) referendum aid under section 126C.17, subdivisions 7 and 7a; plus
31.29 	(6) online learning aid under section 124D.096.

31.30 	Sec. 47. Minnesota Statutes 2012, section 126C.15, subdivision 1, is amended to read:
31.31 		Subdivision 1.Use of revenue. The basic skills revenue under section 126C.10, 
31.32 	subdivision 4, must be reserved and used to meet the educational needs of pupils who 
31.33 	enroll under-prepared to learn and whose progress toward meeting state or local content 
31.34 	or performance standards is below the level that is appropriate for learners of their age. 
32.1 	Basic skills revenue may also be used for programs designed to prepare children and their 
32.2 	families for entry into school whether the student first enrolls in kindergarten or first grade. 
32.3 	Any of the following may be provided to meet these learners' needs:
32.4 	(1) direct instructional services under the assurance of mastery program according 
32.5 	to section 124D.66;
32.6 	(2) remedial instruction in reading, language arts, mathematics, other content areas, 
32.7 	or study skills to improve the achievement level of these learners;
32.8 	(3) additional teachers and teacher aides to provide more individualized instruction 
32.9 	to these learners through individual tutoring, lower instructor-to-learner ratios, or team 
32.10 	teaching;
32.11 	(4) a longer school day or week during the regular school year or through a summer 
32.12 	program that may be offered directly by the site or under a performance-based contract 
32.13 	with a community-based organization;
32.14 	(5) comprehensive and ongoing staff development consistent with district and site 
32.15 	plans according to section 122A.60, for teachers, teacher aides, principals, and other 
32.16 	personnel to improve their ability to identify the needs of these learners and provide 
32.17 	appropriate remediation, intervention, accommodations, or modifications;
32.18 	(6) instructional materials, digital learning, and technology appropriate for meeting 
32.19 	the individual needs of these learners;
32.20 	(7) programs to reduce truancy, encourage completion of high school, enhance 
32.21 	self-concept, provide health services, provide nutrition services, provide a safe and secure 
32.22 	learning environment, provide coordination for pupils receiving services from other 
32.23 	governmental agencies, provide psychological services to determine the level of social, 
32.24 	emotional, cognitive, and intellectual development, and provide counseling services, 
32.25 	guidance services, and social work services;
32.26 	(8) bilingual programs, bicultural programs, and programs for English learners;
32.27 	(9) all day kindergarten;
32.28 	(10) early education programs, parent-training programs, school readiness programs, 
32.29 	kindergarten programs for four-year-olds, voluntary home visits under section 124D.13, 
32.30 	subdivision 4, and other outreach efforts designed to prepare children for kindergarten;
32.31 	(11) extended school day and extended school year programs; and
32.32 	(11) (12) substantial parent involvement in developing and implementing remedial 
32.33 	education or intervention plans for a learner, including learning contracts between the 
32.34 	school, the learner, and the parent that establish achievement goals and responsibilities of 
32.35 	the learner and the learner's parent or guardian.

33.1 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 
33.2 	and later.

33.3 	Sec. 48. Minnesota Statutes 2012, section 126C.15, subdivision 2, is amended to read:
33.4 		Subd. 2.Building allocation. (a) A district or cooperative must allocate its 
33.5 	compensatory revenue to each school building in the district or cooperative where 
33.6 	the children who have generated the revenue are served unless the school district or 
33.7 	cooperative has received permission under Laws 2005, First Special Session chapter 5, 
33.8 	article 1, section 50, to allocate compensatory revenue according to student performance 
33.9 	measures developed by the school board.
33.10 	(b) Notwithstanding paragraph (a), a district or cooperative may allocate up to 
33.11 	five percent of the amount of compensatory revenue that the district receives to school 
33.12 	sites according to a plan adopted by the school board, and a district or cooperative may 
33.13 	allocate up to an additional five percent of its compensatory revenue for activities under 
33.14 	subdivision 1, clause (10), according to a plan adopted by the school board. The money 
33.15 	reallocated under this paragraph must be spent for the purposes listed in subdivision 1, but 
33.16 	may be spent on students in any grade, including students attending school readiness or 
33.17 	other prekindergarten programs.
33.18 	(c) For the purposes of this section and section 126C.05, subdivision 3, "building" 
33.19 	means education site as defined in section 123B.04, subdivision 1.
33.20 	(d) Notwithstanding section 123A.26, subdivision 1, compensatory revenue 
33.21 	generated by students served at a cooperative unit shall be paid to the cooperative unit.
33.22 	(e) A district or cooperative with school building openings, school building 
33.23 	closings, changes in attendance area boundaries, or other changes in programs or student 
33.24 	demographics between the prior year and the current year may reallocate compensatory 
33.25 	revenue among sites to reflect these changes. A district or cooperative must report to the 
33.26 	department any adjustments it makes according to this paragraph and the department must 
33.27 	use the adjusted compensatory revenue allocations in preparing the report required under 
33.28 	section 123B.76, subdivision 3, paragraph (c).

33.29 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 
33.30 	and later.

33.31 	Sec. 49. Minnesota Statutes 2012, section 126C.17, is amended to read:
33.32 	126C.17 REFERENDUM REVENUE.
34.1 		Subdivision 1.Referendum allowance. (a) For fiscal year 2003 and later, a district's 
34.2 	initial referendum revenue allowance equals the sum of the allowance under section 
34.3 	126C.16, subdivision 2, plus any additional allowance per resident marginal cost pupil 
34.4 	unit authorized under subdivision 9 before May 1, 2001, for fiscal year 2002 and later, 
34.5 	plus the referendum conversion allowance approved under subdivision 13, minus $415. 
34.6 	For districts with more than one referendum authority, the reduction must be computed 
34.7 	separately for each authority. The reduction must be applied first to the referendum 
34.8 	conversion allowance and next to the authority with the earliest expiration date. A 
34.9 	district's initial referendum revenue allowance may not be less than zero.
34.10 	(b) For fiscal year 2003, a district's referendum revenue allowance equals the initial 
34.11 	referendum allowance plus any additional allowance per resident marginal cost pupil unit 
34.12 	authorized under subdivision 9 between April 30, 2001, and December 30, 2001, for 
34.13 	fiscal year 2003 and later.
34.14 	(c) For fiscal year 2004 and later, a district's referendum revenue allowance equals 
34.15 	the sum of:
34.16 	(1) the product of (i) the ratio of the resident marginal cost pupil units the district 
34.17 	would have counted for fiscal year 2004 under Minnesota Statutes 2002, section 126C.05, 
34.18 	to the district's resident marginal cost pupil units for fiscal year 2004, times (ii) the initial 
34.19 	referendum allowance plus any additional allowance per resident marginal cost pupil unit 
34.20 	authorized under subdivision 9 between April 30, 2001, and May 30, 2003, for fiscal 
34.21 	year 2003 and later, plus
34.22 	(2) any additional allowance per resident marginal cost pupil unit authorized under 
34.23 	subdivision 9 after May 30, 2003, for fiscal year 2005 and later.
34.24 	(a) A district's initial referendum allowance for fiscal year 2015 equals the result of 
34.25 	the following calculations:
34.26 	(1) multiply the referendum allowance the district would have received for fiscal 
34.27 	year 2015 under Minnesota Statutes 2012, section 126C.17, subdivision 1, based on 
34.28 	elections held before July 1, 2013, by the resident marginal cost pupil units the district 
34.29 	would have counted for fiscal year 2015 under Minnesota Statutes 2012, section 126C.05;
34.30 	(2) add to the result of clause (1) the adjustment the district would have received 
34.31 	under Minnesota Statutes 2012, section 127A.47, subdivision 7, paragraphs (a), (b), and 
34.32 	(c), based on elections held before July 1, 2013;
34.33 	(3) divide the result of clause (2) by the district's adjusted pupil units for fiscal 
34.34 	year 2015; and
34.35 	(4) if the result of clause (3) is less than zero, set the allowance to zero.
35.1 	(b) A district's referendum allowance equals the sum of the district's initial 
35.2 	referendum allowance for fiscal year 2015, plus any additional referendum allowance per 
35.3 	adjusted pupil unit authorized after June 30, 2013, minus any allowances expiring in fiscal 
35.4 	year 2016 or later. For a district with more than one referendum allowance for fiscal year 
35.5 	2015 under Minnesota Statutes 2012, section 126C.17, the allowance calculated under 
35.6 	paragraph (a) must be divided into components such that the same percentage of the 
35.7 	district's allowance expires at the same time as the old allowances would have expired 
35.8 	under Minnesota Statutes 2012, section 126C.17.
35.9 		Subd. 2.Referendum allowance limit. (a) Notwithstanding subdivision 1, for fiscal 
35.10 	year 2007 2015 and later, a district's referendum allowance must not exceed the greater of:
35.11 	(1) the sum of: (i) a district's referendum allowance for fiscal year 1994 times 1.177 
35.12 	times the annual inflationary increase as calculated under paragraph (b) plus (ii) its 
35.13 	referendum conversion allowance for fiscal year 2003, minus (iii) $215;
35.14 	(2) the greater of (i): 26 percent of the formula allowance or (ii) $1,294 times the 
35.15 	annual inflationary increase as calculated under paragraph (b); or times the greatest of:
35.16 	(1) $1,845;
35.17 	(2) the sum of the referendum revenue the district would have received for fiscal 
35.18 	year 2015 under Minnesota Statutes 2012, section 126C.17, subdivision 4, based on 
35.19 	elections held before July 1, 2013, and the adjustment the district would have received 
35.20 	under Minnesota Statutes 2012, section 127A.47, subdivision 7, paragraphs (a), (b), and 
35.21 	(c), based on elections held before July 1, 2013, divided by the district's adjusted pupil 
35.22 	units for fiscal year 2015; or
35.23 	(3) the product of the referendum allowance limit the district would have received 
35.24 	for fiscal year 2015 under Minnesota Statutes 2012, section 126C.17, subdivision 2, and 
35.25 	the resident marginal cost pupil units the district would have received for fiscal year 2015 
35.26 	under Minnesota Statutes 2012, section 126C.05, subdivision 6, plus the adjustment the 
35.27 	district would have received under Minnesota Statutes 2012, section 127A.47, subdivision 
35.28 	7, paragraphs (a), (b), and (c), based on elections held before July 1, 2013, divided by 
35.29 	the district's adjusted pupil units for fiscal year 2015; or
35.30 	(3) (4) for a newly reorganized district created after July 1, 2006 2013, the referendum 
35.31 	revenue authority for each reorganizing district in the year preceding reorganization divided 
35.32 	by its resident marginal cost adjusted pupil units for the year preceding reorganization.
35.33 	(b) For purposes of this subdivision, for fiscal year 2005 2016 and later, "inflationary 
35.34 	increase" means one plus the percentage change in the Consumer Price Index for urban 
35.35 	consumers, as prepared by the United States Bureau of Labor Standards, for the current 
35.36 	fiscal year to fiscal year 2004 2015. For fiscal years 2009 year 2016 and later, for purposes 
36.1 	of paragraph (a), clause (1) (3), the inflationary increase equals the inflationary increase 
36.2 	for fiscal year 2008 plus one-fourth of the percentage increase in the formula allowance 
36.3 	for that year compared with the formula allowance for fiscal year 2008 2015.
36.4 		Subd. 3.Sparsity exception. A district that qualifies for sparsity revenue under 
36.5 	section 126C.10 is not subject to a referendum allowance limit.
36.6 		Subd. 4.Total referendum revenue. The total referendum revenue for each district 
36.7 	equals the district's referendum allowance times the resident marginal cost adjusted pupil 
36.8 	units for the school year.
36.9 		Subd. 5.Referendum equalization revenue. (a) For fiscal year 2003 and later,
36.10 	 A district's referendum equalization revenue equals the sum of the first tier referendum 
36.11 	equalization revenue and the second tier referendum equalization revenue.
36.12 	(b) A district's first tier referendum equalization revenue equals the district's first 
36.13 	tier referendum equalization allowance times the district's resident marginal cost adjusted
36.14 	 pupil units for that year.
36.15 	(c) For fiscal year 2006, a district's first tier referendum equalization allowance 
36.16 	equals the lesser of the district's referendum allowance under subdivision 1 or $500. For 
36.17 	fiscal year 2007, a district's first tier referendum equalization allowance equals the lesser 
36.18 	of the district's referendum allowance under subdivision 1 or $600.
36.19 	For fiscal year 2008 and later, A district's first tier referendum equalization allowance 
36.20 	equals the lesser of the district's referendum allowance under subdivision 1 or $700$760.
36.21 	(d) A district's second tier referendum equalization revenue equals the district's 
36.22 	second tier referendum equalization allowance times the district's resident marginal cost
36.23 	 adjusted pupil units for that year.
36.24 	(e) For fiscal year 2006, a district's second tier referendum equalization allowance 
36.25 	equals the lesser of the district's referendum allowance under subdivision 1 or 18.6 percent 
36.26 	of the formula allowance, minus the district's first tier referendum equalization allowance. 
36.27 	For fiscal year 2007 and later, A district's second tier referendum equalization allowance 
36.28 	equals the lesser of the district's referendum allowance under subdivision 1 or 26 25 percent 
36.29 	of the formula allowance, minus the district's first tier referendum equalization allowance.
36.30 	(f) Notwithstanding paragraph (e), the second tier referendum allowance for a 
36.31 	district qualifying for secondary sparsity revenue under section 126C.10, subdivision 7, or 
36.32 	elementary sparsity revenue under section 126C.10, subdivision 8, equals the district's 
36.33 	referendum allowance under subdivision 1 minus the district's first tier referendum 
36.34 	equalization allowance.
37.1 		Subd. 6.Referendum equalization levy. (a) For fiscal year 2003 and later, 
37.2 	a district's referendum equalization levy equals the sum of the first tier referendum 
37.3 	equalization levy and the second tier referendum equalization levy.
37.4 	(b) A district's first tier referendum equalization levy equals the district's first tier 
37.5 	referendum equalization revenue times the lesser of one or the ratio of the district's 
37.6 	referendum market value per resident marginal cost pupil unit to $476,000 $510,000.
37.7 	(c) A district's second tier referendum equalization levy equals the district's second 
37.8 	tier referendum equalization revenue times the lesser of one or the ratio of the district's 
37.9 	referendum market value per resident marginal cost pupil unit to $270,000 $290,000.
37.10 		Subd. 7.Referendum equalization aid. (a) A district's referendum equalization aid 
37.11 	equals the difference between its referendum equalization revenue and levy.
37.12 	(b) If a district's actual levy for first or second tier referendum equalization revenue 
37.13 	is less than its maximum levy limit for that tier, aid shall be proportionately reduced.
37.14 	(c) Notwithstanding paragraph (a), the referendum equalization aid for a district, 
37.15 	where the referendum equalization aid under paragraph (a) exceeds 90 percent of the 
37.16 	referendum revenue, must not exceed 26 25 percent of the formula allowance times the 
37.17 	district's resident marginal cost adjusted pupil units. A district's referendum levy is 
37.18 	increased by the amount of any reduction in referendum aid under this paragraph.
37.19 		Subd. 7a.Referendum tax base replacement aid. For each school district that 
37.20 	had a referendum allowance for fiscal year 2002 exceeding $415, for each separately 
37.21 	authorized referendum levy, the commissioner of revenue, in consultation with the 
37.22 	commissioner of education, shall certify the amount of the referendum levy in taxes 
37.23 	payable year 2001 attributable to the portion of the referendum allowance exceeding $415 
37.24 	levied against property classified as class 2, noncommercial 4c(1), or 4c(4), under section 
37.25 	273.13, excluding the portion of the tax paid by the portion of class 2a property consisting 
37.26 	of the house, garage, and surrounding one acre of land. The resulting amount must be 
37.27 	used to reduce the district's referendum levy amount otherwise determined, and must be 
37.28 	paid to the district each year that the referendum authority remains in effect, is renewed, 
37.29 	or new referendum authority is approved. The aid payable under this subdivision must 
37.30 	be subtracted from the district's referendum equalization aid under subdivision 7. The 
37.31 	referendum equalization aid after the subtraction must not be less than zero.
37.32 		Subd. 7b.Referendum aid guarantee. (a) Notwithstanding subdivision 7, a 
37.33 	district's referendum equalization aid for fiscal year 2015 must not be less than the sum 
37.34 	of the referendum equalization aid the district would have received for fiscal year 2015 
37.35 	under Minnesota Statutes 2012, section 126C.17, subdivision 7, and the adjustment the 
38.1 	district would have received under Minnesota Statutes 2012, section 127A.47, subdivision 
38.2 	7, paragraphs (a), (b), and (c).
38.3 	(b) Notwithstanding subdivision 7, referendum equalization aid for fiscal year 2016 
38.4 	and later, for a district qualifying for additional aid under paragraph (a) for fiscal year 
38.5 	2015, must not be less than the product of (1) the district's referendum equalization aid 
38.6 	for fiscal year 2015, times (2) the lesser of one or the ratio of the district's referendum 
38.7 	revenue for that school year to the district's referendum revenue for fiscal year 2015, times 
38.8 	(3) the lesser of one or the ratio of the district's referendum market value used for fiscal 
38.9 	year 2015 referendum equalization calculations to the district's referendum market value 
38.10 	used for that year's referendum equalization calculations.
38.11 		Subd. 8.Unequalized referendum levy. Each year, a district may levy an amount 
38.12 	equal to the difference between its total referendum revenue according to subdivision 4 
38.13 	and its referendum equalization revenue according to subdivision 5.
38.14 		Subd. 9.Referendum revenue. (a) The revenue authorized by section 126C.10, 
38.15 	subdivision 1, may be increased in the amount approved by the voters of the district 
38.16 	at a referendum called for the purpose. The referendum may be called by the board. 
38.17 	The referendum must be conducted one or two calendar years before the increased levy 
38.18 	authority, if approved, first becomes payable. Only one election to approve an increase 
38.19 	may be held in a calendar year. Unless the referendum is conducted by mail under 
38.20 	subdivision 11, paragraph (a), the referendum must be held on the first Tuesday after the 
38.21 	first Monday in November. The ballot must state the maximum amount of the increased 
38.22 	revenue per resident marginal cost adjusted pupil unit. The ballot may state a schedule, 
38.23 	determined by the board, of increased revenue per resident marginal cost adjusted pupil 
38.24 	unit that differs from year to year over the number of years for which the increased revenue 
38.25 	is authorized or may state that the amount shall increase annually by the rate of inflation. 
38.26 	For this purpose, the rate of inflation shall be the annual inflationary increase calculated 
38.27 	under subdivision 2, paragraph (b). The ballot may state that existing referendum levy 
38.28 	authority is expiring. In this case, the ballot may also compare the proposed levy authority 
38.29 	to the existing expiring levy authority, and express the proposed increase as the amount, if 
38.30 	any, over the expiring referendum levy authority. The ballot must designate the specific 
38.31 	number of years, not to exceed ten, for which the referendum authorization applies. The 
38.32 	ballot, including a ballot on the question to revoke or reduce the increased revenue amount 
38.33 	under paragraph (c), must abbreviate the term "per resident marginal cost adjusted pupil 
38.34 	unit" as "per pupil." The notice required under section 275.60 may be modified to read, in 
38.35 	cases of renewing existing levies at the same amount per pupil as in the previous year:
39.1 	"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING 
39.2 	TO EXTEND AN EXISTING PROPERTY TAX REFERENDUM THAT IS 
39.3 	SCHEDULED TO EXPIRE."
39.4 	The ballot may contain a textual portion with the information required in this 
39.5 	subdivision and a question stating substantially the following:
39.6 	"Shall the increase in the revenue proposed by (petition to) the board of ........., 
39.7 	School District No. .., be approved?"
39.8 	If approved, an amount equal to the approved revenue per resident marginal cost
39.9 	 adjusted pupil unit times the resident marginal cost adjusted pupil units for the school 
39.10 	year beginning in the year after the levy is certified shall be authorized for certification 
39.11 	for the number of years approved, if applicable, or until revoked or reduced by the voters 
39.12 	of the district at a subsequent referendum.
39.13 	(b) The board must prepare and deliver by first class mail at least 15 days but no more 
39.14 	than 30 days before the day of the referendum to each taxpayer a notice of the referendum 
39.15 	and the proposed revenue increase. The board need not mail more than one notice to any 
39.16 	taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be 
39.17 	those shown to be owners on the records of the county auditor or, in any county where 
39.18 	tax statements are mailed by the county treasurer, on the records of the county treasurer. 
39.19 	Every property owner whose name does not appear on the records of the county auditor 
39.20 	or the county treasurer is deemed to have waived this mailed notice unless the owner 
39.21 	has requested in writing that the county auditor or county treasurer, as the case may be, 
39.22 	include the name on the records for this purpose. The notice must project the anticipated 
39.23 	amount of tax increase in annual dollars for typical residential homesteads, agricultural 
39.24 	homesteads, apartments, and commercial-industrial property within the school district.
39.25 	The notice for a referendum may state that an existing referendum levy is expiring 
39.26 	and project the anticipated amount of increase over the existing referendum levy in 
39.27 	the first year, if any, in annual dollars for typical residential homesteads, agricultural 
39.28 	homesteads, apartments, and commercial-industrial property within the district.
39.29 	The notice must include the following statement: "Passage of this referendum will 
39.30 	result in an increase in your property taxes." However, in cases of renewing existing levies, 
39.31 	the notice may include the following statement: "Passage of this referendum extends an 
39.32 	existing operating referendum at the same amount per pupil as in the previous year."
39.33 	(c) A referendum on the question of revoking or reducing the increased revenue 
39.34 	amount authorized pursuant to paragraph (a) may be called by the board. A referendum to 
39.35 	revoke or reduce the revenue amount must state the amount per resident marginal cost 
39.36 	pupil unit by which the authority is to be reduced. Revenue authority approved by the 
40.1 	voters of the district pursuant to paragraph (a) must be available to the school district at 
40.2 	least once before it is subject to a referendum on its revocation or reduction for subsequent 
40.3 	years. Only one revocation or reduction referendum may be held to revoke or reduce 
40.4 	referendum revenue for any specific year and for years thereafter.
40.5 	(d) The approval of 50 percent plus one of those voting on the question is required to 
40.6 	pass a referendum authorized by this subdivision.
40.7 	(e) At least 15 days before the day of the referendum, the district must submit a 
40.8 	copy of the notice required under paragraph (b) to the commissioner and to the county 
40.9 	auditor of each county in which the district is located. Within 15 days after the results 
40.10 	of the referendum have been certified by the board, or in the case of a recount, the 
40.11 	certification of the results of the recount by the canvassing board, the district must notify 
40.12 	the commissioner of the results of the referendum.
40.13 		Subd. 10.School referendum levy; market value. A school referendum levy must 
40.14 	be levied against the referendum market value of all taxable property as defined in section 
40.15 	126C.01, subdivision 3. Any referendum levy amount subject to the requirements of this 
40.16 	subdivision must be certified separately to the county auditor under section 275.07.
40.17 		Subd. 11.Referendum date. (a) Except for a referendum held under paragraph (b), 
40.18 	any referendum under this section held on a day other than the first Tuesday after the first 
40.19 	Monday in November must be conducted by mail in accordance with section 204B.46. 
40.20 	Notwithstanding subdivision 9, paragraph (b), to the contrary, in the case of a referendum 
40.21 	conducted by mail under this paragraph, the notice required by subdivision 9, paragraph (b), 
40.22 	must be prepared and delivered by first-class mail at least 20 days before the referendum.
40.23 	(b) In addition to the referenda allowed in subdivision 9, clause (a), the commissioner 
40.24 	may grant authority to a district to hold a referendum on a different day if the district is in 
40.25 	statutory operating debt and has an approved plan or has received an extension from the 
40.26 	department to file a plan to eliminate the statutory operating debt.
40.27 	(c) The commissioner must approve, deny, or modify each district's request for a 
40.28 	referendum levy on a different day within 60 days of receiving the request from a district.
40.29 		Subd. 13.Referendum conversion allowance. A school district that received 
40.30 	supplemental or transition revenue in fiscal year 2002 may convert its supplemental 
40.31 	revenue conversion allowance and transition revenue conversion allowance to additional 
40.32 	referendum allowance under subdivision 1 for fiscal year 2003 and thereafter. A majority 
40.33 	of the school board must approve the conversion at a public meeting before November 1, 
40.34 	2001. For a district with other referendum authority, the referendum conversion allowance 
40.35 	approved by the board continues until the portion of the district's other referendum 
40.36 	authority with the earliest expiration date after June 30, 2006, expires. For a district 
41.1 	with no other referendum authority, the referendum conversion allowance approved by 
41.2 	the board continues until June 30, 2012.

41.3 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
41.4 	and later.

41.5 	Sec. 50. Minnesota Statutes 2012, section 126C.20, is amended to read:
41.6 	126C.20 ANNUAL GENERAL EDUCATION AID APPROPRIATION.
41.7 	There is annually appropriated from the general fund to the department the 
41.8 	amount necessary for general education aid under section 126C.13, the early graduation 
41.9 	achievement scholarship program under section 120B.08, and the early graduation 
41.10 	military service award program under section 120B.09. This amount must be reduced by 
41.11 	the amount of any money specifically appropriated for the same purpose in any year 
41.12 	from any state fund.

41.13 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2014 and 
41.14 	later.

41.15 	Sec. 51. Minnesota Statutes 2012, section 126C.40, subdivision 1, is amended to read:
41.16 		Subdivision 1.To lease building or land. (a) When an independent or a special 
41.17 	school district or a group of independent or special school districts finds it economically 
41.18 	advantageous to rent or lease a building or land for any instructional purposes or for 
41.19 	school storage or furniture repair, and it determines that the operating capital revenue 
41.20 	authorized under section 126C.10, subdivision 13, is insufficient for this purpose, it may 
41.21 	apply to the commissioner for permission to make an additional capital expenditure levy 
41.22 	for this purpose. An application for permission to levy under this subdivision must contain 
41.23 	financial justification for the proposed levy, the terms and conditions of the proposed 
41.24 	lease, and a description of the space to be leased and its proposed use.
41.25 	(b) The criteria for approval of applications to levy under this subdivision must 
41.26 	include: the reasonableness of the price, the appropriateness of the space to the proposed 
41.27 	activity, the feasibility of transporting pupils to the leased building or land, conformity 
41.28 	of the lease to the laws and rules of the state of Minnesota, and the appropriateness of 
41.29 	the proposed lease to the space needs and the financial condition of the district. The 
41.30 	commissioner must not authorize a levy under this subdivision in an amount greater than 
41.31 	the cost to the district of renting or leasing a building or land for approved purposes. 
41.32 	The proceeds of this levy must not be used for custodial or other maintenance services. 
42.1 	A district may not levy under this subdivision for the purpose of leasing or renting a 
42.2 	district-owned building or site to itself.
42.3 	(c) For agreements finalized after July 1, 1997, a district may not levy under this 
42.4 	subdivision for the purpose of leasing: (1) a newly constructed building used primarily 
42.5 	for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed 
42.6 	building addition or additions used primarily for regular kindergarten, elementary, or 
42.7 	secondary instruction that contains more than 20 percent of the square footage of the 
42.8 	previously existing building.
42.9 	(d) Notwithstanding paragraph (b), a district may levy under this subdivision for the 
42.10 	purpose of leasing or renting a district-owned building or site to itself only if the amount 
42.11 	is needed by the district to make payments required by a lease purchase agreement, 
42.12 	installment purchase agreement, or other deferred payments agreement authorized by law, 
42.13 	and the levy meets the requirements of paragraph (c). A levy authorized for a district by 
42.14 	the commissioner under this paragraph may be in the amount needed by the district to 
42.15 	make payments required by a lease purchase agreement, installment purchase agreement, 
42.16 	or other deferred payments agreement authorized by law, provided that any agreement 
42.17 	include a provision giving the school districts the right to terminate the agreement 
42.18 	annually without penalty.
42.19 	(e) The total levy under this subdivision for a district for any year must not exceed 
42.20 	$150 $162 times the resident adjusted pupil units for the fiscal year to which the levy 
42.21 	is attributable.
42.22 	(f) For agreements for which a review and comment have been submitted to the 
42.23 	Department of Education after April 1, 1998, the term "instructional purpose" as used in 
42.24 	this subdivision excludes expenditures on stadiums.
42.25 	(g) The commissioner of education may authorize a school district to exceed the 
42.26 	limit in paragraph (e) if the school district petitions the commissioner for approval. The 
42.27 	commissioner shall grant approval to a school district to exceed the limit in paragraph (e) 
42.28 	for not more than five years if the district meets the following criteria:
42.29 	(1) the school district has been experiencing pupil enrollment growth in the 
42.30 	preceding five years;
42.31 	(2) the purpose of the increased levy is in the long-term public interest;
42.32 	(3) the purpose of the increased levy promotes colocation of government services; and
42.33 	(4) the purpose of the increased levy is in the long-term interest of the district by 
42.34 	avoiding over construction of school facilities.
42.35 	(h) A school district that is a member of an intermediate school district may include 
42.36 	in its authority under this section the costs associated with leases of administrative and 
43.1 	classroom space for intermediate school district programs. This authority must not 
43.2 	exceed $43 $46 times the adjusted marginal cost pupil units of the member districts. This 
43.3 	authority is in addition to any other authority authorized under this section.
43.4 	(i) In addition to the allowable capital levies in paragraph (a), for taxes payable in 
43.5 	2012 to 2023, a district that is a member of the "Technology and Information Education 
43.6 	Systems" data processing joint board, that finds it economically advantageous to enter into 
43.7 	a lease agreement to finance improvements to a building and land for a group of school 
43.8 	districts or special school districts for staff development purposes, may levy for its portion 
43.9 	of lease costs attributed to the district within the total levy limit in paragraph (e). The total 
43.10 	levy authority under this paragraph shall not exceed $632,000.
43.11 	(j) Notwithstanding paragraph (a), a district may levy under this subdivision for the 
43.12 	purpose of leasing administrative space if the district can demonstrate to the satisfaction of 
43.13 	the commissioner that the lease cost for the administrative space is no greater than the 
43.14 	lease cost for instructional space that the district would otherwise lease. The commissioner 
43.15 	must deny this levy authority unless the district passes a resolution stating its intent to 
43.16 	lease instructional space under this section if the commissioner does not grant authority 
43.17 	under this paragraph. The resolution must also certify that the lease cost for administrative 
43.18 	space under this paragraph is no greater than the lease cost for the district's proposed 
43.19 	instructional lease.

43.20 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
43.21 	and later.

43.22 	Sec. 52. Minnesota Statutes 2012, section 126C.40, subdivision 6, is amended to read:
43.23 		Subd. 6.Lease purchase; installment buys. (a) Upon application to, and approval 
43.24 	by, the commissioner in accordance with the procedures and limits in subdivision 1, 
43.25 	paragraphs (a) and (b), a district, as defined in this subdivision, may:
43.26 	(1) purchase real or personal property under an installment contract or may lease 
43.27 	real or personal property with an option to purchase under a lease purchase agreement, by 
43.28 	which installment contract or lease purchase agreement title is kept by the seller or vendor 
43.29 	or assigned to a third party as security for the purchase price, including interest, if any; and
43.30 	(2) annually levy the amounts necessary to pay the district's obligations under the 
43.31 	installment contract or lease purchase agreement.
43.32 	(b) The obligation created by the installment contract or the lease purchase 
43.33 	agreement must not be included in the calculation of net debt for purposes of section 
43.34 	475.53, and does not constitute debt under other law. An election is not required in 
43.35 	connection with the execution of the installment contract or the lease purchase agreement.
44.1 	(c) The proceeds of the levy authorized by this subdivision must not be used to 
44.2 	acquire a facility to be primarily used for athletic or school administration purposes.
44.3 	(d) For the purposes of this subdivision, "district" means:
44.4 	(1) a school district which is eligible for revenue under section 124D.86, subdivision 
44.5 	3, clause (1), (2), or (3), and whose Special School District No. 1, Minneapolis, 
44.6 	Independent School District No. 625, St. Paul, Independent School District No. 709, 
44.7 	Duluth, or Independent School District No. 535, Rochester, if the district's desegregation
44.8 	 plan has been determined by the commissioner to be in compliance with Department of 
44.9 	Education rules relating to equality of educational opportunity and school desegregation 
44.10 	and, for a district eligible for revenue under section 124D.86, subdivision 3, clause (4) 
44.11 	or (5), where the acquisition of property under this subdivision is determined by the 
44.12 	commissioner to contribute to the implementation of the desegregation plan; or
44.13 	(2) a school district that participates in a joint program for interdistrict desegregation 
44.14 	with a district defined in clause (1) other districts eligible for revenue under section 
44.15 	124D.862  if the facility acquired under this subdivision is to be primarily used for the a
44.16 	 joint program for interdistrict desegregation and the commissioner determines that the 
44.17 	joint programs are being undertaken to implement the districts' desegregation plan.
44.18 	(e) Notwithstanding subdivision 1, the prohibition against a levy by a district to lease 
44.19 	or rent a district-owned building to itself does not apply to levies otherwise authorized 
44.20 	by this subdivision.
44.21 	(f) For the purposes of this subdivision, any references in subdivision 1 to building 
44.22 	or land shall include personal property.

44.23 	Sec. 53. Minnesota Statutes 2012, section 126C.44, is amended to read:
44.24 	126C.44 SAFE SCHOOLS LEVY.
44.25 	(a) Each district may make a levy on all taxable property located within the district 
44.26 	for the purposes specified in this section. The maximum amount which may be levied for 
44.27 	all costs under this section shall be equal to $30 $36 multiplied by the district's adjusted 
44.28 	marginal cost pupil units for the school year. The proceeds of the levy must be reserved 
44.29 	and used for directly funding the following purposes or for reimbursing the cities and 
44.30 	counties who contract with the district for the following purposes: 
44.31 	(1) to pay the costs incurred for the salaries, benefits, and transportation costs of 
44.32 	peace officers and sheriffs for liaison in services in the district's schools; 
44.33 	(2) to pay the costs for a drug abuse prevention program as defined in section 
44.34 	609.101, subdivision 3, paragraph (e), in the elementary schools; 
45.1 	(3) to pay the costs for a gang resistance education training curriculum in the 
45.2 	district's schools; 
45.3 	(4) to pay the costs for security in the district's schools and on school property; 
45.4 	(5) to pay the costs for other crime prevention, drug abuse, student and staff safety, 
45.5 	voluntary opt-in suicide prevention tools, and violence prevention measures taken by 
45.6 	the school district; or
45.7 	(6) to pay costs for licensed school counselors, licensed school nurses, licensed 
45.8 	school social workers, licensed school psychologists, and licensed alcohol and chemical 
45.9 	dependency counselors to help provide early responses to problems;
45.10 	(7) to pay for facility security enhancements including laminated glass, public 
45.11 	announcement systems, emergency communications devices, and equipment and facility 
45.12 	modifications related to violence prevention and facility security;
45.13 	(8) to pay for costs associated with improving the school climate; or
45.14 	(9) to pay costs for colocating and collaborating with mental health professionals 
45.15 	who are not district employees or contractors.
45.16 	(b) For expenditures under paragraph (a), clause (1), the district must initially 
45.17 	attempt to contract for services to be provided by peace officers or sheriffs with the 
45.18 	police department of each city or the sheriff's department of the county within the district 
45.19 	containing the school receiving the services. If a local police department or a county 
45.20 	sheriff's department does not wish to provide the necessary services, the district may 
45.21 	contract for these services with any other police or sheriff's department located entirely or 
45.22 	partially within the school district's boundaries.
45.23 	(b) (c) A school district that is a member of an intermediate school district may 
45.24 	include in its authority under this section the costs associated with safe schools activities 
45.25 	authorized under paragraph (a) for intermediate school district programs. This authority 
45.26 	must not exceed $10 times the adjusted marginal cost pupil units of the member districts. 
45.27 	This authority is in addition to any other authority authorized under this section. Revenue 
45.28 	raised under this paragraph must be transferred to the intermediate school district.

45.29 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
45.30 	and later.

45.31 	Sec. 54. Minnesota Statutes 2012, section 127A.47, subdivision 7, is amended to read:
45.32 		Subd. 7.Alternative attendance programs. (a) The general education aid and 
45.33 	special education aid for districts must be adjusted for each pupil attending a nonresident 
45.34 	district under sections 123A.05 to 123A.08, 124D.03, 124D.08, and 124D.68. The 
45.35 	adjustments must be made according to this subdivision.
46.1 	(a) General education aid paid to a resident district must be reduced by an amount 
46.2 	equal to the referendum equalization aid attributable to the pupil in the resident district.
46.3 	(b) General education aid paid to a district serving a pupil in programs listed in this 
46.4 	subdivision must be increased by an amount equal to the greater of (1) the referendum 
46.5 	equalization aid attributable to the pupil in the nonresident district; or (2) the product of 
46.6 	the district's open enrollment concentration index, the maximum amount of referendum 
46.7 	revenue in the first tier, and the district's net open enrollment pupil units for that year. A 
46.8 	district's open enrollment concentration index equals the greater of: (i) zero, or (ii) the 
46.9 	lesser of 1.0, or the difference between the district's ratio of open enrollment pupil units 
46.10 	served to its resident pupil units for that year and 0.2. This clause does not apply to a 
46.11 	school district where more than 50 percent of the open enrollment students are enrolled 
46.12 	solely in online learning courses.
46.13 	(c) If the amount of the reduction to be made from the general education aid of the 
46.14 	resident district is greater than the amount of general education aid otherwise due the 
46.15 	district, the excess reduction must be made from other state aids due the district.
46.16 	(d) For fiscal year 2006, the district of residence must pay tuition to a district or an 
46.17 	area learning center, operated according to paragraph (f), providing special instruction and 
46.18 	services to a pupil with a disability, as defined in section 125A.02, or a pupil, as defined in 
46.19 	section 125A.51, who is enrolled in a program listed in this subdivision. The tuition must 
46.20 	be equal to (1) the actual cost of providing special instruction and services to the pupil, 
46.21 	including a proportionate amount for special transportation and unreimbursed building 
46.22 	lease and debt service costs for facilities used primarily for special education, minus (2) 
46.23 	if the pupil receives special instruction and services outside the regular classroom for 
46.24 	more than 60 percent of the school day, the amount of general education revenue and 
46.25 	referendum aid attributable to that pupil for the portion of time the pupil receives special 
46.26 	instruction and services outside of the regular classroom, excluding portions attributable to 
46.27 	district and school administration, district support services, operations and maintenance, 
46.28 	capital expenditures, and pupil transportation, minus (3) special education aid attributable 
46.29 	to that pupil, that is received by the district providing special instruction and services. 
46.30 	For purposes of this paragraph, general education revenue and referendum equalization 
46.31 	aid attributable to a pupil must be calculated using the serving district's average general 
46.32 	education revenue and referendum equalization aid per adjusted pupil unit.
46.33 	(e) For fiscal year 2007 and later, special education aid paid to a resident district must 
46.34 	be reduced by an amount equal to (b) For purposes of this subdivision, the "unreimbursed 
46.35 	cost of providing special education and services" means the difference between: (1) the 
46.36 	actual cost of providing special instruction and services, including special transportation 
47.1 	and unreimbursed building lease and debt service costs for facilities used primarily for 
47.2 	special education, for a pupil with a disability, as defined in section 125A.02, or a pupil, as 
47.3 	defined in section 125A.51, who is enrolled in a program listed in this subdivision, minus 
47.4 	(2) if the pupil receives special instruction and services outside the regular classroom for 
47.5 	more than 60 percent of the school day, the amount of general education revenue and 
47.6 	referendum equalization aid attributable to that pupil for the portion of time the pupil 
47.7 	receives special instruction and services outside of the regular classroom, excluding 
47.8 	portions attributable to district and school administration, district support services, 
47.9 	operations and maintenance, capital expenditures, and pupil transportation, minus (3) 
47.10 	special education aid  under section 125A.76 attributable to that pupil, that is received by 
47.11 	the district providing special instruction and services. For purposes of this paragraph, 
47.12 	general education revenue and referendum equalization aid attributable to a pupil must be 
47.13 	calculated using the serving district's average general education revenue and referendum 
47.14 	equalization aid per adjusted pupil unit. 
47.15 	(c) For fiscal year 2015 and later, special education aid paid to a resident district 
47.16 	must be reduced by an amount equal to 90 percent of the unreimbursed cost of providing 
47.17 	special education and services.
47.18 	(d) Notwithstanding paragraph (c), special education aid paid to a resident district 
47.19 	must be reduced by an amount equal to 100 percent of the unreimbursed cost of special 
47.20 	education and services provided to students at an intermediate district, cooperative, or 
47.21 	charter school where the percent of students eligible for special education services is at 
47.22 	least 70 percent of the charter school's total enrollment.
47.23 	(e) Special education aid paid to the district or cooperative providing special 
47.24 	instruction and services for the pupil, or to the fiscal agent district for a cooperative, 
47.25 	must be increased by the amount of the reduction in the aid paid to the resident district
47.26 	 under paragraphs (c) and (d). If the resident district's special education aid is insufficient 
47.27 	to make the full adjustment, the remaining adjustment shall be made to other state aids 
47.28 	due to the district.
47.29 	(f) An area learning center operated by a service cooperative, intermediate district, 
47.30 	education district, or a joint powers cooperative may elect through the action of the 
47.31 	constituent boards to charge the resident district tuition for pupils rather than to have the 
47.32 	general education revenue paid to a fiscal agent school district. Except as provided in 
47.33 	paragraph (d) or (e), the district of residence must pay tuition equal to at least 90 percent 
47.34 	of the district average general education revenue per pupil unit minus an amount equal 
47.35 	to the product of the formula allowance according to section 126C.10, subdivision 2, 
48.1 	times .0485 .0466, calculated without compensatory revenue and transportation sparsity 
48.2 	revenue, times the number of pupil units for pupils attending the area learning center.

48.3 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
48.4 	and later.

48.5 	Sec. 55. Minnesota Statutes 2012, section 127A.47, subdivision 8, is amended to read:
48.6 		Subd. 8.Charter schools. (a) The general education aid for districts must be 
48.7 	adjusted for each pupil attending a charter school under section 124D.10. The adjustments 
48.8 	must be made according to this subdivision.
48.9 	(b) General education aid paid to a district in which a charter school not providing 
48.10 	transportation according to section 124D.10, subdivision 16, is located must be increased 
48.11 	by an amount equal to the sum of:
48.12 	(1) the product of: (i) the sum of an amount equal to the product of the formula 
48.13 	allowance according to section 126C.10, subdivision 2, times .0485 .0466, plus the 
48.14 	transportation sparsity allowance for the district; times (ii) the adjusted marginal cost
48.15 	 pupil units attributable to the pupil; plus
48.16 	(2) the product of $223 and the extended time marginal cost pupil units attributable 
48.17 	to the pupil.

48.18 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
48.19 	and later.

48.20 	Sec. 56. Minnesota Statutes 2012, section 127A.51, is amended to read:
48.21 	127A.51 STATEWIDE AVERAGE REVENUE.
48.22 	By October 1 of each year the commissioner must estimate the statewide average 
48.23 	adjusted general revenue per adjusted marginal cost pupil unit and the disparity in adjusted 
48.24 	general revenue among pupils and districts by computing the ratio of the 95th percentile 
48.25 	to the fifth percentile of adjusted general revenue. The commissioner must provide that 
48.26 	information to all districts.
48.27 	If the disparity in adjusted general revenue as measured by the ratio of the 95th 
48.28 	percentile to the fifth percentile increases in any year, the commissioner shall recommend 
48.29 	to the legislature options for change in the general education formula that will limit the 
48.30 	disparity in adjusted general revenue to no more than the disparity for the previous 
48.31 	school year. The commissioner must submit the recommended options to the education 
48.32 	committees of the legislature by January 15.
48.33 	For purposes of this section and section 126C.10, adjusted general revenue means:
49.1 	(1) for fiscal year 2002, the sum of basic revenue under section 126C.10, subdivision 
49.2 	2; supplemental revenue under section 126C.10, subdivisions 9 and 12; transition revenue 
49.3 	under section 126C.10, subdivision 20; referendum revenue under section 126C.17; and 
49.4 	equity revenue under section 126C.10, subdivisions 24a and 24b; and
49.5 	(2) for fiscal year 2003 and later, the sum of basic revenue under section 126C.10, 
49.6 	subdivision 2; referendum revenue under section 126C.17; and equity revenue under 
49.7 	section 126C.10, subdivisions 24a and 24b.

49.8 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
49.9 	and later.

49.10 	Sec. 57. SCHOOL DISTRICT LEVY ADJUSTMENTS.
 49.11 		Subdivision 1.Tax rate adjustment. The commissioner of education must adjust 
49.12 	each school district tax rate established under Minnesota Statutes, chapters 120B to 127A, 
49.13 	by multiplying the rate by the ratio of the statewide total tax capacity for assessment year 
49.14 	2012 as it existed prior to the passage of Regular Session 2013 House File No. 677, or 
49.15 	a similarly styled bill passed in a special session, to the statewide total tax capacity for 
49.16 	assessment year 2012.
49.17 		Subd. 2.Equalizing factors. The commissioner of education must adjust each 
49.18 	school district equalizing factor established under Minnesota Statutes, chapters 120B to 
49.19 	127A, by dividing the equalizing factor by the ratio of the statewide total tax capacity for 
49.20 	assessment year 2012 as it existed prior to the passage of Regular Session 2013 House 
49.21 	File No. 677, or a similarly styled bill passed in a special session, to the statewide total tax 
49.22 	capacity for assessment year 2012.

49.23 	Sec. 58. APPROPRIATIONS.
 49.24 		Subdivision 1.Department of Education. The sums indicated in this section are 
49.25 	appropriated from the general fund to the Department of Education for the fiscal years 
49.26 	designated.
49.27 		Subd. 2.General education aid. For general education aid under Minnesota 
49.28 	Statutes, section 126C.13, subdivision 4:

49.29		$
	6,051,766,000
	.....
	2014
	
49.30		$
	6,370,640,000
	.....
	2015
	
49.31 	The 2014 appropriation includes $781,842,000 for 2013 and $5,269,924,000 for 
49.32 	2014.
50.1 	The 2015 appropriation includes $823,040,000 for 2014 and $5,547,600,000 for 
50.2 	2015.
50.3 		Subd. 3.Enrollment options transportation. For transportation of pupils attending 
50.4 	postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation 
50.5 	of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

50.6		$
	44,000
	.....
	2014
	
50.7		$
	48,000
	.....
	2015
	
50.8 		Subd. 4.Abatement revenue. For abatement aid under Minnesota Statutes, section 
50.9 	127A.49:

50.10		$
	2,747,000
	.....
	2014
	
50.11		$
	3,136,000
	.....
	2015
	
50.12 	The 2014 appropriation includes $301,000 for 2013 and $2,446,000 for 2014.
50.13 	The 2015 appropriation includes $385,000 for 2014 and $2,751,000 for 2015.
50.14 		Subd. 5.Consolidation transition. For districts consolidating under Minnesota 
50.15 	Statutes, section 123A.485:

50.16		$
	472,000
	.....
	2014
	
50.17		$
	480,000
	.....
	2015
	
50.18 	The 2014 appropriation includes $40,000 for 2013 and $432,000 for 2014.
50.19 	The 2015 appropriation includes $68,000 for 2014 and $412,000 for 2015.
50.20 		Subd. 6.Nonpublic pupil education aid. For nonpublic pupil education aid under 
50.21 	Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:

50.22		$
	15,582,000
	.....
	2014
	
50.23		$
	16,169,000
	.....
	2015
	
50.24 	The 2014 appropriation includes $2,099,000 for 2013 and $13,483,000 for 2014.
50.25 	The 2015 appropriation includes $2,122,000 for 2014 and $14,047,000 for 2015.
50.26 		Subd. 7.Nonpublic pupil transportation. For nonpublic pupil transportation aid 
50.27 	under Minnesota Statutes, section 123B.92, subdivision 9:

50.28		$
	18,565,000
	.....
	2014
	
50.29		$
	18,946,000
	.....
	2015
	
50.30 	The 2014 appropriation includes $2,668,000 for 2013 and $15,897,000 for 2014.
50.31 	The 2015 appropriation includes $2,502,000 for 2014 and $16,444,000 for 2015.
51.1 		Subd. 8.One-room schoolhouse. For a grant to Independent School District No. 
51.2 	690, Warroad, to operate the Angle Inlet School:

51.3		$
	65,000
	.....
	2014
	
51.4		$
	65,000
	.....
	2015
	
51.5 		Subd. 9.Compensatory revenue pilot project. For grants for participation in the 
51.6 	compensatory revenue pilot program under Laws 2005, First Special Session chapter 5, 
51.7 	article 1, section 50, as amended by Laws 2007, chapter 146, article 1, section 21:

51.8		$
	 7,325,000
	2014
		
51.9		$
	 7,325,000
	2015
		
51.10 	Of this amount, $4,730,000 in each year is for a grant to Independent School District 
51.11 	No. 11, Anoka-Hennepin; $240,000 in each year is for a grant to Independent School 
51.12 	District No. 286, Brooklyn Center; $660,000 in each year is for a grant to Independent 
51.13 	School District No. 279, Osseo; $500,000 in each year is for a grant to Independent School 
51.14 	District No. 281, Robbinsdale; $520,000 in each year is for a grant to Independent School 
51.15 	District No. 535, Rochester; $205,000 in each year is for a grant to Independent School 
51.16 	District No. 833, South Washington; and $470,000 in each year is for a grant to Independent 
51.17 	School District No. 241, Albert Lea. If a grant to a specific school district is not awarded, 
51.18 	the commissioner may increase the aid amounts to any of the remaining participating 
51.19 	school districts. The base budget for this program for fiscal year 2016 and later is 
51.20 	$2,325,000, and the grants must be distributed in the same proportion as in fiscal year 2013.
51.21 		Subd. 10.Compensatory pilot project formula aid. For grants for compensatory 
51.22 	pilot project formula aid as calculated under Minnesota Statutes, section 126C.195:

51.23		$
	2,109,000
	.....
	2014

51.24 	The 2014 appropriation includes $2,109,000 for 2013 and $0 for 2014.
51.25 		Subd. 11.Career and technical aid. For career and technical aid under Minnesota 
51.26 	Statutes, section 124D.4531, subdivision 1b:

51.27		$
	4,320,000
	.....
	2014
	
51.28		$
	5,680,000
	.....
	2015
	
51.29 	The 2014 appropriation includes $0 for 2014 and $4,320,000 for 2015.
51.30 	The 2015 appropriation includes $680,000 for 2014 and $5,000,000 for 2015.

51.31 	Sec. 59.  REPEALER.
 51.32 	(a) Minnesota Statutes 2012, sections 120B.08; and 120B.09, are repealed for fiscal 
51.33 	year 2014 and later.
52.1 	(b) Minnesota Statutes 2012, sections 126C.10, subdivisions 31a, 31b, 31c, 34, 35, 
52.2 	and 36; 126C.17, subdivision 13; and 127A.50, subdivisions 1 and 5, are repealed for 
52.3 	fiscal year 2015 and later.

52.4 	ARTICLE 2
52.5 	STUDENT ACCOUNTABILITY

52.6 	Section 1. [120B.018] DEFINITIONS.
52.7 		Subdivision 1.Scope. The definitions in this section apply to this chapter.
52.8 		Subd. 2.Academic standard. "Academic standard" means a summary description 
52.9 	of student learning in a required content area under section 120B.021 or elective content 
52.10 	area under section 120B.022.
52.11 		Subd. 3.Benchmark. "Benchmark" means specific knowledge or skill that a 
52.12 	student must master to complete part of an academic standard by the end of the grade 
52.13 	level or grade band.
52.14 		Subd. 4.Credit. "Credit" means the determination by the local school district 
52.15 	that a student has successfully completed an academic year of study or mastered the 
52.16 	applicable subject matter.
52.17 		Subd. 5.Elective standard. "Elective standard" means a locally adopted 
52.18 	expectation for student learning in career and technical education and world languages.
52.19 		Subd. 6.Required standard. "Required standard" means (1) a statewide adopted 
52.20 	expectation for student learning in the content areas of language arts, mathematics, 
52.21 	science, social studies, physical education, and the arts, or (2) a locally adopted 
52.22 	expectation for student learning in health or the arts.

52.23 	Sec. 2. Minnesota Statutes 2012, section 120B.02, is amended to read:
52.24 	120B.02 EDUCATIONAL EXPECTATIONS AND GRADUATION 
52.25 	REQUIREMENTS FOR MINNESOTA'S STUDENTS.
52.26 		Subdivision 1.Educational expectations. (a) The legislature is committed to 
52.27 	establishing rigorous academic standards for Minnesota's public school students. To 
52.28 	that end, the commissioner shall adopt in rule statewide academic standards. The 
52.29 	commissioner shall not prescribe in rule or otherwise the delivery system, classroom 
52.30 	assessments, or form of instruction that school sites must use. For purposes of this chapter, 
52.31 	a school site is a separate facility, or a separate program within a facility that a local school 
52.32 	board recognizes as a school site for funding purposes.
52.33 	(b) All commissioner actions regarding the rule must be premised on the following:
53.1 	(1) the rule is intended to raise academic expectations for students, teachers, and 
53.2 	schools;
53.3 	(2) any state action regarding the rule must evidence consideration of school district 
53.4 	autonomy; and
53.5 	(3) the Department of Education, with the assistance of school districts, must make 
53.6 	available information about all state initiatives related to the rule to students and parents, 
53.7 	teachers, and the general public in a timely format that is appropriate, comprehensive, and 
53.8 	readily understandable.
53.9 	(c) When fully implemented, the requirements for high school graduation in 
53.10 	Minnesota must require students to satisfactorily complete, as determined by the school 
53.11 	district, the course credit requirements under section 120B.024, all state academic 
53.12 	standards or local academic standards where state standards do not apply, and successfully 
53.13 	pass graduation examinations as required under section 120B.30.
53.14 	(d) (c) The commissioner shall periodically review and report on the state's 
53.15 	assessment process.
53.16 	(e) (d) School districts are not required to adopt specific provisions of the federal 
53.17 	School-to-Work programs.
53.18 		Subd. 2.Graduation requirements. To graduate from high school, students must 
53.19 	demonstrate to their enrolling school district or school their satisfactory completion of the 
53.20 	credit requirements under section 120B.024 and their understanding of academic standards 
53.21 	on a nationally normed college entrance exam. A school district must adopt graduation 
53.22 	requirements that meet or exceed state graduation requirements established in law or rule.

53.23 	EFFECTIVE DATE. This section is effective August 1, 2013, and applies to 
53.24 	students entering grade 9 in the 2013-2014 school year and later.

53.25 	Sec. 3. Minnesota Statutes 2012, section 120B.021, subdivision 1, is amended to read:
53.26 		Subdivision 1.Required academic standards. (a) The following subject areas 
53.27 	are required for statewide accountability:
53.28 	(1) language arts;
53.29 	(2) mathematics;
53.30 	(3) science;
53.31 	(4) social studies, including history, geography, economics, and government and 
53.32 	citizenship;
53.33 	(5) physical education;
53.34 	(6) health, for which locally developed academic standards apply; and
54.1 	(7) the arts, for which statewide or locally developed academic standards apply, as 
54.2 	determined by the school district. Public elementary and middle schools must offer at least 
54.3 	three and require at least two of the following four arts areas: dance; music; theater; and 
54.4 	visual arts. Public high schools must offer at least three and require at least one of the 
54.5 	following five arts areas: media arts; dance; music; theater; and visual arts.
54.6 	The commissioner must submit proposed standards in science and social studies to 
54.7 	the legislature by February 1, 2004.
54.8 	(b) For purposes of applicable federal law, the academic standards for language arts, 
54.9 	mathematics, and science apply to all public school students, except the very few students 
54.10 	with extreme cognitive or physical impairments for whom an individualized education 
54.11 	program team has determined that the required academic standards are inappropriate. An 
54.12 	individualized education program team that makes this determination must establish 
54.13 	alternative standards.
54.14 	A school district, no later than the 2007-2008 school year, must adopt graduation 
54.15 	requirements that meet or exceed state graduation requirements established in law or rule. 
54.16 	A school district that incorporates these state graduation requirements before the 2007-2008 
54.17 	school year must provide students who enter the 9th grade in or before the 2003-2004 
54.18 	school year the opportunity to earn a diploma based on existing locally established 
54.19 	graduation requirements in effect when the students entered the 9th grade.(c) District 
54.20 	efforts to develop, implement, or improve instruction or curriculum as a result of the 
54.21 	provisions of this section must be consistent with sections 120B.10, 120B.11, and 120B.20.
54.22 	The commissioner must include the contributions of Minnesota American Indian 
54.23 	tribes and communities as they relate to the academic standards during the review and 
54.24 	revision of the required academic standards.

54.25 	Sec. 4. Minnesota Statutes 2012, section 120B.023, is amended to read:
54.26 	120B.023 BENCHMARKS.
54.27 		Subdivision 1.Benchmarks implement, supplement statewide academic 
54.28 	standards. (a) The commissioner must supplement required state academic standards with 
54.29 	grade-level benchmarks. High school career and college ready benchmarks may cover 
54.30 	more than one grade. The benchmarks must implement statewide academic standards 
54.31 	by specifying the academic knowledge and skills that Schools must offer and students 
54.32 	must achieve all benchmarks for an academic standard to satisfactorily complete a that
54.33 	 state standard. The commissioner must publish benchmarks to inform and guide parents, 
54.34 	teachers, school districts, and other interested persons and to use in developing tests 
54.35 	consistent with the benchmarks.
55.1 	(b) The commissioner shall publish benchmarks in the State Register and transmit 
55.2 	the benchmarks in any other manner that informs and guides parents, teachers, school 
55.3 	districts, and other interested persons and makes them accessible to the general public. The 
55.4 	commissioner must use benchmarks in developing career and college readiness assessments 
55.5 	under section 120B.30. The commissioner may charge a reasonable fee for publications.
55.6 	(c) Once established, the commissioner may change the benchmarks only with 
55.7 	specific legislative authorization and after completing a review under subdivision 2.
55.8 	(d) The commissioner must develop and implement a system for reviewing each 
55.9 	of the required academic standards and related benchmarks and elective standards on a 
55.10 	periodic cycle, consistent with subdivision 2.
55.11 	(e) (d) The benchmarks are not subject to chapter 14 and section 14.386 does not 
55.12 	apply.
55.13 		Subd. 2.Revisions and reviews required. (a) The commissioner of education must 
55.14 	revise and appropriately embed technology and information literacy standards consistent 
55.15 	with recommendations from school media specialists into the state's academic standards 
55.16 	and graduation requirements and implement a review ten-year cycle for to review and 
55.17 	revise state academic standards and related benchmarks, consistent with this subdivision. 
55.18 	During each ten-year review and revision cycle, the commissioner also must examine the 
55.19 	alignment of each required academic standard and related benchmark with the knowledge 
55.20 	and skills students need for career and college readiness and advanced work in the 
55.21 	particular subject area. The commissioner must include the contributions of Minnesota 
55.22 	American Indian tribes and communities as related to the academic standards during the 
55.23 	review and revision of the required academic standards.
55.24 	(b) The commissioner in the 2006-2007 school year must revise and align the state's 
55.25 	academic standards and high school graduation requirements in mathematics to require 
55.26 	that students satisfactorily complete the revised mathematics standards, beginning in the 
55.27 	2010-2011 school year. Under the revised standards:
55.28 	(1) students must satisfactorily complete an algebra I credit by the end of eighth 
55.29 	grade; and
55.30 	(2) students scheduled to graduate in the 2014-2015 school year or later must 
55.31 	satisfactorily complete an algebra II credit or its equivalent.
55.32 	(b) The commissioner also must ensure that the statewide mathematics assessments 
55.33 	administered to students in grades 3 through 8 and 11 are aligned with the state academic 
55.34 	standards in mathematics, consistent with section 120B.30, subdivision 1, paragraph 
55.35 	(b). The commissioner must implement a review of the academic standards and related 
55.36 	benchmarks in mathematics beginning in the 2015-2016 school year.
56.1 	(c) The commissioner in the 2007-2008 school year must revise and align the state's 
56.2 	academic standards and high school graduation requirements in the arts to require that 
56.3 	students satisfactorily complete the revised arts standards beginning in the 2010-2011 
56.4 	school year. The commissioner must implement a review of the academic standards and 
56.5 	related benchmarks in arts beginning in the 2016-2017 school year.
56.6 	(d) The commissioner in the 2008-2009 school year must revise and align the state's 
56.7 	academic standards and high school graduation requirements in science to require that 
56.8 	students satisfactorily complete the revised science standards, beginning in the 2011-2012 
56.9 	school year. Under the revised standards, students scheduled to graduate in the 2014-2015 
56.10 	school year or later must satisfactorily complete a chemistry or physics credit or a career 
56.11 	and technical education credit that meets standards underlying the chemistry, physics, 
56.12 	or biology credit or a combination of those standards approved by the district. The 
56.13 	commissioner must implement a review of the academic standards and related benchmarks 
56.14 	in science beginning in the 2017-2018 school year.
56.15 	(e) The commissioner in the 2009-2010 school year must revise and align the state's 
56.16 	academic standards and high school graduation requirements in language arts to require 
56.17 	that students satisfactorily complete the revised language arts standards beginning in the 
56.18 	2012-2013 school year. The commissioner must implement a review of the academic 
56.19 	standards and related benchmarks in language arts beginning in the 2018-2019 school year.
56.20 	(f) The commissioner in the 2010-2011 school year must revise and align the state's 
56.21 	academic standards and high school graduation requirements in social studies to require 
56.22 	that students satisfactorily complete the revised social studies standards beginning in the 
56.23 	2013-2014 school year. The commissioner must implement a review of the academic 
56.24 	standards and related benchmarks in social studies beginning in the 2019-2020 school year.
56.25 	(g) School districts and charter schools must revise and align local academic 
56.26 	standards and high school graduation requirements in health, world languages, and career 
56.27 	and technical education to require students to complete the revised standards beginning 
56.28 	in a school year determined by the school district or charter school. School districts and 
56.29 	charter schools must formally establish a periodic review cycle for the academic standards 
56.30 	and related benchmarks in health, world languages, and career and technical education.

56.31 	Sec. 5. Minnesota Statutes 2012, section 120B.024, is amended to read:
56.32 	120B.024 GRADUATION REQUIREMENTS; COURSE CREDITS.
56.33 		Subdivision 1.Graduation requirements. (a) Students beginning 9th grade in the 
56.34 	2011-2012 school year and later must successfully complete the following high school 
56.35 	level course credits for graduation:
57.1 	(1) four credits of language arts sufficient to satisfy all of the academic standards 
57.2 	in English language arts;
57.3 	(2) three credits of mathematics, encompassing at least algebra, geometry, statistics, 
57.4 	and probability including an algebra II credit or its equivalent, sufficient to satisfy all of 
57.5 	the academic standard standards in mathematics;
57.6 	(3) an algebra I credit by the end of 8th grade sufficient to satisfy all of the 8th 
57.7 	grade standards in mathematics;
57.8 	(3) (4) three credits of science, including at least: (i) one credit in of biology; and 
57.9 	(ii) one chemistry or physics credit or a career and technical education credit that meets 
57.10 	standards underlying the chemistry, physics, or biology credit or a combination of those 
57.11 	standards approved by the district, but meeting biology standards under this item does not 
57.12 	meet the biology requirement under item (i), one credit of chemistry or physics, and one 
57.13 	elective credit of science. The combination of credits under this clause must be sufficient 
57.14 	to satisfy (i) all of the academic standards in either chemistry or physics and (ii) all other 
57.15 	academic standards in science;
57.16 	(4) (5) three and one-half credits of social studies, encompassing at least United 
57.17 	States history, geography, government and citizenship, world history, and economics or 
57.18 	three credits of social studies encompassing at least United States history, geography, 
57.19 	government and citizenship, and world history, and one-half credit of economics taught in 
57.20 	a school's social studies, agriculture education, or business department sufficient to satisfy 
57.21 	all of the academic standards in social studies;
57.22 	(5) (6) one credit in of the arts sufficient to satisfy all of the state or local academic 
57.23 	standards in the arts; and
57.24 	(6) (7) a minimum of seven elective course credits.
57.25 	A course credit is equivalent to a student successfully completing an academic 
57.26 	year of study or a student mastering the applicable subject matter, as determined by the 
57.27 	local school district.
57.28 		Subd. 2.Credit equivalencies. (a) A one-half credit of economics taught in a 
57.29 	school's agriculture education or business department may fulfill a one-half credit in 
57.30 	social studies under subdivision 1, clause (5), if the credit is sufficient to satisfy all of the 
57.31 	academic standards in economics.
57.32 	(b) An agriculture science course or career and technical education credit may 
57.33 	fulfill a the elective science credit requirement other than the specified science credit in 
57.34 	biology under paragraph (a), clause (3). subdivision 1, clause (4), if the course meets 
57.35 	academic standards in science as approved by the district. An agriculture science or 
57.36 	career and technical education credit may fulfill the credit in chemistry or physics or the 
58.1 	elective science credit required under subdivision 1, clause (4), if (1) the credit meets the 
58.2 	chemistry, physics, or biology academic standards or a combination of these academic 
58.3 	standards as approved by the district and (2) the student satisfies either all of the chemistry 
58.4 	academic standards, all of the physics academic standards, or all of the applicable elective 
58.5 	science standards prior to graduation. An agriculture science or career and technical 
58.6 	education credit may not fulfill the required biology credit under subdivision 1, clause (4).
58.7 	(c) A career and technical education course credit may fulfill a mathematics or arts 
58.8 	credit requirement or a science credit requirement other than the specified science credit in 
58.9 	biology under paragraph (a) subdivision 1, clause (2), (3), or (5) (6).
58.10 	(d) An agriculture education teacher is not required to meet the requirements of 
58.11 	Minnesota Rules, part 3505.1150, subpart 1, item B, to meet the credit equivalency 
58.12 	requirements of paragraph (b) above.

58.13 	EFFECTIVE DATE. This section is effective August 1, 2013, and applies to 
58.14 	students entering 9th grade in the 2013-2014 school year and later.

58.15 	Sec. 6. Minnesota Statutes 2012, section 120B.11, is amended to read:
58.16 	120B.11 SCHOOL DISTRICT PROCESS FOR REVIEWING CURRICULUM, 
58.17 	INSTRUCTION, AND STUDENT ACHIEVEMENT; STRIVING FOR THE 
58.18 	WORLD'S BEST WORKFORCE.
58.19 		Subdivision 1.Definitions. For the purposes of this section and section 120B.10, 
58.20 	the following terms have the meanings given them.
58.21 	(a) "Instruction" means methods of providing learning experiences that enable a 
58.22 	student to meet state and district academic standards and graduation requirements.
58.23 	(b) "Curriculum" means district or school adopted programs and written plans for 
58.24 	providing students with learning experiences that lead to expected knowledge and skills
58.25 	 and career and college readiness.
58.26 	(c) "World's best workforce" means striving to: meet school readiness goals; have 
58.27 	all third grade students achieve grade-level literacy; close the academic achievement gap 
58.28 	among all racial and ethnic groups of students and between students living in poverty and 
58.29 	students not living in poverty; have all students attain career and college readiness before 
58.30 	graduating from high school; and have all students graduate from high school.
58.31 		Subd. 1a.Performance measures. Measures to determine school district and 
58.32 	school site progress in striving to create the world's best workforce must include at least:
58.33 	(1) student performance on the National Association of Education Progress;
58.34 	(2) the size of the academic achievement gap by student subgroup;
59.1 	(3) student performance on the Minnesota Comprehensive Assessments;
59.2 	(4) high school graduation rates; and
59.3 	(5) career and college readiness under section 120B.30, subdivision 1.
59.4 		Subd. 2.Adopting policies plans and budgets.  A school board, at a public 
59.5 	meeting, shall have in place an adopted written policy adopt a comprehensive, long-term 
59.6 	strategic plan to support and improve teaching and learning that includes the following is 
59.7 	aligned with creating the world's best workforce and includes:
59.8 	(1) clearly defined district and school site goals and benchmarks for instruction 
59.9 	including the use of best practices, district and school curriculum, and student achievement 
59.10 	for all student subgroups identified in section 120B.35, subdivision 3, paragraph (b), 
59.11 	clause (2);
59.12 	(2) a process for assessing and evaluating each student's progress toward meeting state 
59.13 	and local academic standards and identifying the strengths and weaknesses of instruction 
59.14 	in pursuit of student and school success and curriculum affecting students' progress and 
59.15 	growth toward career and college readiness and leading to the world's best workforce;
59.16 	(3) a system for periodically reviewing and evaluatingto periodically review and 
59.17 	evaluate the effectiveness of all instruction and curriculum, taking into account strategies 
59.18 	and best practices, student outcomes, school principal evaluations under section 123B.147, 
59.19 	subdivision 3, and teacher evaluations under section 122A.40, subdivision 8, or 122A.41, 
59.20 	subdivision 5;
59.21 	(4) a plan strategies for improving instruction, curriculum, and student achievement; 
59.22 	and
59.23 	(5) an education effectiveness plan aligned with section 122A.625 practices that 
59.24 	integratesintegrate high-quality instruction, rigorous curriculum, and technology, and a 
59.25 	collaborative professional culture that develops and supports teacher quality, performance, 
59.26 	and effectiveness; and
59.27 	(6) an annual budget for continuing to implement the district plan.
59.28 		Subd. 3.District advisory committee. Each school board shall establish an 
59.29 	advisory committee to ensure active community participation in all phases of planning and 
59.30 	improving the instruction and curriculum affecting state and district academic standards, 
59.31 	consistent with subdivision 2. A district advisory committee, to the extent possible, shall 
59.32 	reflect the diversity of the district and its learning school sites, and shall include teachers, 
59.33 	parents, support staff, students, and other community residents. The district may establish 
59.34 	building site teams as subcommittees of the district advisory committee under subdivision 
59.35 	4. The district advisory committee shall recommend to the school board rigorous academic 
59.36 	standards, student achievement goals and measures consistent with subdivision 1a and 
60.1 	sections 120B.022, subdivision 1, paragraphs (b) and (c), and 120B.35, district assessments, 
60.2 	and program evaluations. Learning School sites may expand upon district evaluations of 
60.3 	instruction, curriculum, assessments, or programs. Whenever possible, parents and other 
60.4 	community residents shall comprise at least two-thirds of advisory committee members.
60.5 		Subd. 4.Building Site team. A school may establish a building site team to 
60.6 	develop and implement an strategies and education effectiveness plan practices to improve 
60.7 	instruction, curriculum, and student achievement at the school site, consistent with 
60.8 	subdivision 2. The team shall advise advises the board and the advisory committee about 
60.9 	developing the annual budget and revising an instruction and curriculum improvement 
60.10 	plan that aligns curriculum, assessment of student progress and growth in meeting state 
60.11 	and district academic standards, and instruction.
60.12 		Subd. 5.Report. (a) By October 1 of each year, the school board shall use standard 
60.13 	statewide reporting procedures the commissioner develops and adopt a report that includes 
60.14 	the following:
60.15 	(1) student achievement goals for meeting state academic standards;
60.16 	(2) results of local assessment data, and any additional test data;
60.17 	(3) the annual school district improvement plans including staff development goals 
60.18 	under section 122A.60;
60.19 	(4) information about district and learning site progress in realizing previously 
60.20 	adopted improvement plans; and
60.21 	(5) the amount and type of revenue attributed to each education site as defined 
60.22 	in section 123B.04.
60.23 	(b) Consistent with requirements for school performance reports under section 
60.24 	120B.36, subdivision 1, the school board shall publish a summary of the report in the local 
60.25 	newspaper with the largest circulation in the district, by mail, or by electronic means 
60.26 	such as on the district Web site. The school board shall hold an annual public meeting 
60.27 	to review, and revise where appropriate, student achievement goals, local assessment 
60.28 	outcomes, plans, strategies, and practices for improving curriculum and instruction, and to 
60.29 	review district success in realizing the previously adopted student achievement goals and 
60.30 	related benchmarks and the improvement plans leading to the world's best workforce. If 
60.31 	electronic means are used, school districts must publish notice of the report in a periodical 
60.32 	of general circulation in the district. School districts must make copies of the report 
60.33 	available to the public on request.
60.34 	(c) The title of the report shall contain the name and number of the school district and 
60.35 	read "Annual Report on Curriculum, Instruction, and Student Achievement." The report 
60.36 	must include at least the following information about advisory committee membership:
61.1 	(1) the name of each committee member and the date when that member's term 
61.2 	expires;
61.3 	(2) the method and criteria the school board uses to select committee members; and
61.4 	(3) the date by which a community resident must apply to next serve on the 
61.5 	committee. The school board must transmit an electronic summary of its report to the 
61.6 	commissioner in the form and manner the commissioner determines.
61.7 		Subd. 6.Student evaluation. The school board annually shall provide high school 
61.8 	graduates or GED recipients who receive a diploma or its equivalent from the school 
61.9 	district with an opportunity to report to the board on the following:
61.10 	(1) the quality of district instruction, curriculum, and services;
61.11 	(2) the quality of district delivery of instruction, curriculum, and services;
61.12 	(3) the utility of district facilities; and
61.13 	(4) the effectiveness of district administration.
61.14 		Subd. 7.Periodic report. Each school district shall periodically asksurvey affected 
61.15 	constituencies about their connection to and level of satisfaction with school. The 
61.16 	district shall include the results of this evaluation in the summary report required under 
61.17 	subdivision 5.
61.18 		Subd. 8.Biennial evaluation; assessment program. At least once every two years, 
61.19 	the district report shall include an evaluation of the district testing programs, according to 
61.20 	the following:
61.21 	(1) written objectives of the assessment program;
61.22 	(2) names of tests and grade levels tested;
61.23 	(3) use of test results; and
61.24 	(4) student achievement results compared to previous years.
61.25 		Subd. 9.Annual evaluation. (a) The commissioner must identify effective 
61.26 	strategies, practices, and use of resources by districts and school sites in striving for the 
61.27 	world's best workforce. The commissioner must assist districts and sites throughout the 
61.28 	state in implementing these effective strategies, practices, and use of resources.
61.29 	(b) The commissioner must identify those districts in any consecutive three-year 
61.30 	period not making sufficient progress toward improving teaching and learning and 
61.31 	striving for the world's best workforce. The commissioner, in collaboration with the 
61.32 	identified district, may require the district to use up to two percent of its basic general 
61.33 	education revenue per fiscal year during the proximate three school years to implement 
61.34 	commissioner-specified strategies and practices, consistent with paragraph (a), to improve 
61.35 	and accelerate its progress in realizing its goals under this section. In implementing this 
61.36 	section, the commissioner must consider districts' budget constraints and legal obligations.

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

62.3 	Sec. 7. [120B.115] REGIONAL CENTERS OF EXCELLENCE.
62.4 	(a) Regional centers of excellence are established to assist and support school 
62.5 	boards, school districts, school sites, and charter schools in implementing research-based 
62.6 	interventions and practices to increase the students' achievement within a region. 
62.7 	The centers must develop partnerships with local and regional service cooperatives, 
62.8 	postsecondary institutions, integrated school districts, the department, children's mental 
62.9 	health providers, or other local or regional entities interested in providing a cohesive 
62.10 	and consistent regional delivery system that serves all schools equitably. Centers must 
62.11 	assist school districts, school sites, and charter schools in developing similar partnerships. 
62.12 	Center support may include assisting school districts, school sites, and charter schools 
62.13 	with common principles of effective practice, including:
62.14 	(1) defining measurable education goals under section 120B.11, subdivision 2;
62.15 	(2) implementing evidence-based practices;
62.16 	(3) engaging in data-driven decision-making;
62.17 	(4) providing multi-layered levels of support;
62.18 	(5) supporting culturally responsive teaching and learning aligning state and local 
62.19 	academic standards and career and college readiness benchmarks; and
62.20 	(6) engaging parents, families, youth, and local community members in programs 
62.21 	and activities at the school district, school site, or charter school.
62.22 	Centers must work with school site leadership teams to build capacity to implement 
62.23 	programs that close the achievement gap, increase students' progress and growth toward 
62.24 	career and college readiness, and increase student graduation rates.
62.25 	(b) The department must assist the regional centers of excellence to meet staff, 
62.26 	facilities, and technical needs, provide the centers with programmatic support, and work 
62.27 	with the centers to establish a coherent statewide system of regional support, including 
62.28 	consulting, training, and technical support, to help school boards, school districts, school 
62.29 	sites, and charter schools effectively and efficiently implement the world's best workforce 
62.30 	goals under section 120B.11 and other state and federal education initiatives.

62.31 	Sec. 8. Minnesota Statutes 2012, section 120B.125, is amended to read:
62.32 	120B.125 PLANNING FOR STUDENTS' SUCCESSFUL TRANSITION 
62.33 	TO POSTSECONDARY EDUCATION AND EMPLOYMENT; INVOLUNTARY 
62.34 	CAREER TRACKING PROHIBITED.
63.1 	(a) Consistent with sections 120B.128, 120B.13, 120B.131, 120B.132, 120B.14, 
63.2 	120B.15, 120B.30, subdivision 1, paragraph (c), 125A.08, and other related sections, 
63.3 	school districts are strongly encouraged to, beginning in the 2013-2014 school year, must
63.4 	 assist all students by no later than grade 9 to explore their college and career interests and 
63.5 	aspirations and develop a plan for a smooth and successful transition to postsecondary 
63.6 	education or employment. All students' plans must be designed to:
63.7 	(1) provide a comprehensive academic plan for completing a college and 
63.8 	career-ready curriculum premised on meeting state and local academic standards and 
63.9 	developing 21st century skills such as team work, collaboration, and good work habits;
63.10 	(2) emphasize academic rigor and high expectations;
63.11 	(3) help students identify personal learning styles that may affect their postsecondary 
63.12 	education and employment choices;
63.13 	(4) help students succeed at gaining gain access to postsecondary education and 
63.14 	career options;
63.15 	(5) integrate strong academic content into career-focused courses and integrate 
63.16 	relevant career-focused courses into strong academic content;
63.17 	(6) help students and families identify and gain access to appropriate counseling 
63.18 	and other supports and assistance that enable students to complete required coursework, 
63.19 	prepare for postsecondary education and careers, and obtain information about 
63.20 	postsecondary education costs and eligibility for financial aid and scholarship;
63.21 	(7) help students and families identify collaborative partnerships of kindergarten 
63.22 	through grade 12 schools, postsecondary institutions, economic development agencies, and 
63.23 	employers that support students' transition to postsecondary education and employment 
63.24 	and provide students with experiential learning opportunities; and
63.25 	(8) be reviewed and revised at least annually by the student, the student's parent or 
63.26 	guardian, and the school or district to ensure that the student's course-taking schedule 
63.27 	keeps the student "on track" making adequate progress to meet state and local high school 
63.28 	graduation requirements and with a reasonable chance to succeed with employment or 
63.29 	postsecondary education without the need to first complete remedial course work.
63.30 	(b) A school district may develop grade-level curricula or provide instruction that 
63.31 	introduces students to various careers, but must not require any curriculum, instruction, 
63.32 	or employment-related activity that obligates an elementary or secondary student to 
63.33 	involuntarily select a career, career interest, employment goals, or related job training.
63.34 	(c) School districts are encouraged to seek and use revenue and in-kind contributions 
63.35 	from nonstate sources and to seek administrative cost savings through innovative local 
63.36 	funding arrangements, such as the Collaboration Among Rochester Educators (CARE) 
64.1 	model for funding postsecondary enrollment options, among other sources, for purposes 
64.2 	of implementing this section.

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

64.4 	Sec. 9. Minnesota Statutes 2012, section 120B.128, is amended to read:
64.5 	120B.128 EDUCATIONAL PLANNING AND ASSESSMENT SYSTEM 
64.6 	(EPAS) PROGRAM.
64.7 	(a) School districts and charter schools may elect to participate in the Educational 
64.8 	Planning and Assessment System (EPAS) program offered by ACT, Inc. to provide a 
64.9 	longitudinal, systematic approach to student educational and career planning, assessment, 
64.10 	instructional support, and evaluation. The EPAS achievement tests include English, 
64.11 	reading, mathematics, science, and components on planning for high school and 
64.12 	postsecondary education, interest inventory, needs assessments, and student education 
64.13 	plans. These tests are linked to the ACT assessment for college admission and allow 
64.14 	students, parents, teachers, and schools to determine the student's college readiness before 
64.15 	grades 11 and 12.
64.16 	(b) The commissioner of education shall provide ACT Explore tests for students 
64.17 	in grade 8 and the ACT Plan test for students in grade 10 to assess individual student 
64.18 	academic strengths and weaknesses, academic achievement and progress, higher order 
64.19 	thinking skills, and college readiness.
64.20 	(c) Students enrolled in grade 8 through the 2011-2012 school year who have 
64.21 	not yet demonstrated proficiency on the Minnesota comprehensive assessments, the 
64.22 	graduation-required assessments for diploma, or the basic skills testing requirements 
64.23 	prior to high school graduation may satisfy state high school graduation requirements 
64.24 	for assessments in reading, mathematics, and writing by taking the graduation-required 
64.25 	assessment for diploma in reading, mathematics, or writing under Minnesota Statutes 
64.26 	2012, section 120B.30, subdivision 1, paragraph (c), clauses (1) and (2), the WorkKeys 
64.27 	job skills assessment, the Compass college placement test, a nationally recognized armed 
64.28 	services vocation aptitude test, or the ACT assessment for college admission.
64.29 	(d) The state shall pay the test costs for school districts and charter schools that 
64.30 	choose to participate in the EPAS program public school students to participate in the 
64.31 	assessments under this section. The commissioner shall establish an application procedure 
64.32 	and a process for state payment of costs.

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

65.1 	Sec. 10. Minnesota Statutes 2012, section 120B.15, is amended to read:
65.2 	120B.15 GIFTED AND TALENTED STUDENTS PROGRAMS.
65.3 	(a) School districts may identify students, locally develop programs addressing 
65.4 	instructional and affective needs, provide staff development, and evaluate programs to 
65.5 	provide gifted and talented students with challenging and appropriate educational programs.
65.6 	(b) School districts may must adopt guidelines for assessing and identifying students 
65.7 	for participation in gifted and talented programs. The guidelines should include the use of:
65.8 	(1) multiple and objective criteria; and
65.9 	(2) assessments and procedures that are valid and reliable, fair, and based on current 
65.10 	theory and research. Assessments and procedures should be sensitive to underrepresented 
65.11 	groups, including, but not limited to, low-income, minority, twice-exceptional, and 
65.12 	English learners.
65.13 	(c) School districts must adopt procedures for the academic acceleration of gifted 
65.14 	and talented students. These procedures must include how the district will:
65.15 	(1) assess a student's readiness and motivation for acceleration; and
65.16 	(2) match the level, complexity, and pace of the curriculum to a student to achieve 
65.17 	the best type of academic acceleration for that student.
65.18 	(d) School districts must adopt procedures consistent with section 124D.02, 
65.19 	subdivision 1, for early admission to kindergarten or first grade of gifted and talented 
65.20 	learners. The procedures must be sensitive to underrepresented groups.

65.21 	Sec. 11. [120B.21] MENTAL HEALTH EDUCATION.
65.22 	School districts and charter schools are encouraged to provide mental health 
65.23 	instruction for students in grades 6 through 12 aligned with local health standards and 
65.24 	integrated into existing programs, curriculum, or the general school environment of a 
65.25 	district or charter school. The commissioner, in consultation with the commissioner of 
65.26 	human services and mental health organizations, is encouraged to provide districts and 
65.27 	charter schools with:
65.28 	(1) age-appropriate model learning activities for grades 6 through 12 that encompass 
65.29 	the mental health components of the National Health Education Standards and the 
65.30 	benchmarks developed by the department's quality teaching network in health and best 
65.31 	practices in mental health education; and
65.32 	(2) a directory of resources for planning and implementing age-appropriate mental 
65.33 	health curriculum and instruction in grades 6 through 12.

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

66.1 	Sec. 12. Minnesota Statutes 2012, section 120B.30, subdivision 1, is amended to read:
66.2 		Subdivision 1.Statewide testing.  (a) The commissioner, with advice from experts 
66.3 	with appropriate technical qualifications and experience and stakeholders, consistent 
66.4 	with subdivision 1a, shall include in the comprehensive assessment system, for each 
66.5 	grade level to be tested, state-constructed tests developed from and as computer-adaptive 
66.6 	reading and mathematics assessments for students that are aligned with the state's required 
66.7 	academic standards under section 120B.021, include multiple choice questions, and be are
66.8 	 administered annually to all students in grades 3 through 8 7. Reading and mathematics 
66.9 	assessments for all students in grade 8 must be aligned with the state's required reading and 
66.10 	mathematics standards, be administered annually, and include multiple choice questions. 
66.11 	 State-developed high school tests aligned with the state's required academic standards 
66.12 	under section 120B.021 and administered to all high school students in a subject other than 
66.13 	writing must include multiple choice questions. The commissioner shall establish one 
66.14 	or more months during which schools shall administer the tests to students each school 
66.15 	year. For students enrolled in grade 8 before the 2005-2006 school year, Minnesota basic 
66.16 	skills tests in reading, mathematics, and writing shall fulfill students' basic skills testing 
66.17 	requirements for a passing state notation. The passing scores of basic skills tests in reading 
66.18 	and mathematics are the equivalent of 75 percent correct for students entering grade 9 
66.19 	based on the first uniform test administered in February 1998. Students who have not 
66.20 	successfully passed a Minnesota basic skills test by the end of the 2011-2012 school year 
66.21 	must pass the graduation-required assessments for diploma under paragraph (c), except that 
66.22 	for the 2012-2013 and 2013-2014 school years only, these students may satisfy the state's 
66.23 	graduation test requirement for math by complying with paragraph (d), clauses (1) and (3).
66.24 	(1) Students enrolled in grade 8 through the 2009-2010 school year are eligible 
66.25 	to be assessed under (i) the graduation-required assessment for diploma in reading, 
66.26 	mathematics, or writing under Minnesota Statutes 2012, section 120B.30, subdivision 1, 
66.27 	paragraphs (c), clauses (1) and (2), and (d), (ii) the WorkKeys job skills assessment, (iii) 
66.28 	the Compass college placement test, (iv) the ACT assessment for college admission, or (v) 
66.29 	a nationally recognized armed services vocational aptitude test.
66.30 	(2) Students enrolled in grade 8 in the 2010-2011 or 2011-2012 school year are 
66.31 	eligible to be assessed under (i) the graduation-required assessment for diploma in reading, 
66.32 	mathematics, or writing under Minnesota Statutes 2012, section 120B.30, subdivision 
66.33 	1, paragraph (c), clauses (1) and (2), (ii) the WorkKeys job skills assessment, (iii) the 
66.34 	Compass college placement test, (iv) the ACT assessment for college admission, or (v) a 
66.35 	nationally recognized armed services vocational aptitude test.
67.1 	(3) For students under clause (1) or (2), a school district may substitute a score from 
67.2 	an alternative, equivalent assessment to satisfy the requirements of this paragraph.
67.3 	(b) The state assessment system must be aligned to the most recent revision of 
67.4 	academic standards as described in section 120B.023 in the following manner:
67.5 	(1) mathematics;
67.6 	(i) grades 3 through 8 beginning in the 2010-2011 school year; and
67.7 	(ii) high school level beginning in the 2013-2014 school year;
67.8 	(2) science; grades 5 and 8 and at the high school level beginning in the 2011-2012 
67.9 	school year; and
67.10 	(3) language arts and reading; grades 3 through 8 and high school level beginning in 
67.11 	the 2012-2013 school year.
67.12 	(c) For students enrolled in grade 8 in the 2005-2006 2012-2013 school year and 
67.13 	later, only the following options shall fulfill students' state graduation test requirements, 
67.14 	based on a longitudinal, systematic approach to student education and career planning, 
67.15 	assessment, instructional support, and evaluation, include the following:
67.16 	(1) for reading and mathematics:
67.17 	(i) obtaining an achievement level equivalent to or greater than proficient as 
67.18 	determined through a standard setting process on the Minnesota comprehensive 
67.19 	assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing 
67.20 	score as determined through a standard setting process on the graduation-required 
67.21 	assessment for diploma in grade 10 for reading and grade 11 for mathematics or 
67.22 	subsequent retests;
67.23 	(ii) achieving a passing score as determined through a standard setting process 
67.24 	on the state-identified language proficiency test in reading and the mathematics test for 
67.25 	English learners or the graduation-required assessment for diploma equivalent of those 
67.26 	assessments for students designated as English learners;
67.27 	(iii) achieving an individual passing score on the graduation-required assessment for 
67.28 	diploma as determined by appropriate state guidelines for students with an individualized 
67.29 	education program or 504 plan;
67.30 	(iv) obtaining achievement level equivalent to or greater than proficient as 
67.31 	determined through a standard setting process on the state-identified alternate assessment 
67.32 	or assessments in grade 10 for reading and grade 11 for mathematics for students with 
67.33 	an individualized education program; or
67.34 	(v) achieving an individual passing score on the state-identified alternate assessment 
67.35 	or assessments as determined by appropriate state guidelines for students with an 
67.36 	individualized education program; and
68.1 	(2) for writing:
68.2 	(i) achieving a passing score on the graduation-required assessment for diploma;
68.3 	(ii) achieving a passing score as determined through a standard setting process on 
68.4 	the state-identified language proficiency test in writing for students designated as English 
68.5 	learners;
68.6 	(iii) achieving an individual passing score on the graduation-required assessment for 
68.7 	diploma as determined by appropriate state guidelines for students with an individualized 
68.8 	education program or 504 plan; or
68.9 	(iv) achieving an individual passing score on the state-identified alternate assessment 
68.10 	or assessments as determined by appropriate state guidelines for students with an 
68.11 	individualized education program.
68.12 	(1) demonstrate understanding of required academic standards on a nationally 
68.13 	normed college entrance exam;
68.14 	(2) achievement and career and college readiness tests in mathematics, reading, and 
68.15 	writing, consistent with paragraph (e) and to the extent available, to monitor students' 
68.16 	continuous development of and growth in requisite knowledge and skills; analyze 
68.17 	students' progress and performance levels, identifying students' academic strengths and 
68.18 	diagnosing areas where students require curriculum or instructional adjustments, targeted 
68.19 	interventions, or remediation; and, based on analysis of students' progress and performance 
68.20 	data, determine students' learning and instructional needs and the instructional tools and 
68.21 	best practices that support academic rigor for the student; and
68.22 	(3) consistent with this paragraph and section 120B.125, age-appropriate exploration 
68.23 	and planning activities and career assessments to encourage students to identify personally 
68.24 	relevant career interests and aptitudes and help students and their families develop a 
68.25 	regularly reexamined transition plan for postsecondary education or employment without 
68.26 	need for postsecondary remediation.
68.27 	Based on appropriate state guidelines, students with an individualized education program 
68.28 	may satisfy state graduation requirements by achieving an individual score on the 
68.29 	state-identified alternative assessments.
68.30 	Expectations of schools, districts, and the state for career or college readiness under 
68.31 	this subdivision must be comparable in rigor, clarity of purpose, and rates of student 
68.32 	completion. A student under clause (2) must receive targeted, relevant, academically 
68.33 	rigorous, and resourced instruction, which may include a targeted instruction and 
68.34 	intervention plan focused on improving the student's knowledge and skills in core subjects 
68.35 	so that the student has a reasonable chance to succeed in a career or college without need 
68.36 	for postsecondary remediation. Consistent with sections 120B.13, 124D.09, 124D.091, 
69.1 	124D.49, and related sections, an enrolling school or district must actively encourage a 
69.2 	student in grade 11 or 12 who is identified as academically ready for a career or college 
69.3 	to participate in courses and programs awarding college credit to high school students. 
69.4 	Students are not required to achieve a specified score or level of proficiency on an 
69.5 	assessment under this subdivision to graduate from high school.
69.6 	(d) Students enrolled in grade 8 in any school year from the 2005-2006 school 
69.7 	year to the 2009-2010 school year who do not pass the mathematics graduation-required 
69.8 	assessment for diploma under paragraph (c) are eligible to receive a high school diploma 
69.9 	if they:
69.10 	(1) complete with a passing score or grade all state and local coursework and credits 
69.11 	required for graduation by the school board granting the students their diploma;
69.12 	(2) participate in district-prescribed academic remediation in mathematics; and
69.13 	(3) fully participate in at least two retests of the mathematics GRAD test or until 
69.14 	they pass the mathematics GRAD test, whichever comes first. To improve the secondary 
69.15 	and postsecondary outcomes of all students, the alignment between secondary and 
69.16 	postsecondary education programs and Minnesota's workforce needs, and the efficiency 
69.17 	and cost-effectiveness of secondary and postsecondary programs, the commissioner, after 
69.18 	consulting with the chancellor of the Minnesota State Colleges and Universities and using 
69.19 	a request for proposal process, shall contract for a series of assessments that are consistent 
69.20 	with this subdivision, aligned with state academic standards, and include career and college 
69.21 	readiness benchmarks. Mathematics, reading, and writing assessments for students in 
69.22 	grades 8 and 10 must be predictive of a nationally normed assessment for career and college 
69.23 	readiness. This nationally recognized assessment must be a college entrance exam and 
69.24 	given to students in grade 11. This series of assessments must include a college placement 
69.25 	diagnostic exam and contain career exploration elements. The commissioner and the 
69.26 	chancellor of the Minnesota State Colleges and Universities must collaborate in aligning 
69.27 	instruction and assessments for adult basic education students to provide the students with 
69.28 	diagnostic information about any targeted interventions they need so that they may seek 
69.29 	postsecondary education or employment without need for postsecondary remediation.
69.30 	(1) Districts and schools, on an annual basis, must use the career exploration 
69.31 	elements in these assessments to help students, beginning no later than grade 9, and their 
69.32 	families explore and plan for postsecondary education or careers based on the students' 
69.33 	interests, aptitudes, and aspirations. Districts and schools must use timely regional labor 
69.34 	market information and partnerships, among other resources, to help students and their 
69.35 	families successfully develop, pursue, review, and revise an individualized plan for 
69.36 	postsecondary education or a career. This process must help increase students' engagement 
70.1 	in and connection to school, improve students' knowledge and skills, and deepen students' 
70.2 	understanding of career pathways as a sequence of academic and career courses that lead 
70.3 	to an industry-recognized credential, an associate's degree, or a bachelor's degree and are 
70.4 	available to all students, whatever their interests and career goals.
70.5 	(2) Students in grade 10 or 11 not yet academically ready for a career or college based 
70.6 	on their growth in academic achievement between grades 8 and 10 must take the college 
70.7 	placement diagnostic exam before taking the college entrance exam under clause (3). 
70.8 	Students, their families, the school, and the district can then use the results of the college 
70.9 	placement diagnostic exam for targeted instruction, intervention, or remediation and 
70.10 	improve students' knowledge and skills in core subjects sufficient for a student to graduate 
70.11 	and have a reasonable chance to succeed in a career or college without remediation.
70.12 	(3) All students except those eligible for alternative assessments must be given the 
70.13 	college entrance part of these assessments in grade 11. A student under this clause who 
70.14 	demonstrates attainment of required state academic standards, which include career and 
70.15 	college readiness benchmarks, on these assessments is academically ready for a career or 
70.16 	college and is encouraged to participate in courses awarding college credit to high school 
70.17 	students. Such courses and programs may include sequential courses of study within 
70.18 	broad career areas and technical skill assessments that extend beyond course grades.
70.19 	(4) As appropriate, students through grade 12 must continue to participate in targeted 
70.20 	instruction, intervention, or remediation and be encouraged to participate in courses 
70.21 	awarding college credit to high school students.
70.22 	(5) A study to determine the alignment between these assessments and state 
70.23 	academic standards under this chapter must be conducted. Where alignment exists, the 
70.24 	commissioner must seek federal approval to, and immediately upon receiving approval, 
70.25 	replace the federally required assessments referenced under subdivision 1a and section 
70.26 	120B.35, subdivision 2, with assessments under this paragraph.
70.27 	(e) In developing, supporting, and improving students' academic readiness for a 
70.28 	career or college, schools, districts, and the state must have a continuum of empirically 
70.29 	derived, clearly defined benchmarks focused on students' attainment of knowledge and 
70.30 	skills so that students, their parents, and teachers know how well students must perform to 
70.31 	have a reasonable chance to succeed in a career or college without need for postsecondary 
70.32 	remediation. The commissioner, in consultation with local school officials and educators, 
70.33 	and Minnesota's public postsecondary institutions must ensure that the foundational 
70.34 	knowledge and skills for students' successful performance in postsecondary employment 
70.35 	or education and an articulated series of possible targeted interventions are clearly 
70.36 	identified and satisfy Minnesota's postsecondary admissions requirements.
71.1 	(f) For students in grade 8 in the 2012-2013 school year and later, a school, district, 
71.2 	or charter school must place record on the high school transcript a student's current pass 
71.3 	status for each subject that has a required graduation assessment progress toward career 
71.4 	and college readiness, and for other students as soon as practicable.
71.5 	In addition, (g) The school board granting the students their diplomas may formally 
71.6 	decide to include a notation of high achievement on the high school diplomas of those 
71.7 	graduating seniors who, according to established school board criteria, demonstrate 
71.8 	exemplary academic achievement during high school.
71.9 	(e) (h) The 3rd through 8th 7th grade computer-adaptive assessment results and grade 
71.10 	8 and high school test results shall be available to districts for diagnostic purposes affecting 
71.11 	student learning and district instruction and curriculum, and for establishing educational 
71.12 	accountability. The commissioner must establish empirically derived benchmarks on 
71.13 	adaptive assessments in grades 3 through 7 that reveal a trajectory toward career and 
71.14 	college readiness. The commissioner must disseminate to the public the computer-adaptive 
71.15 	assessments, grade 8, and high school test results upon receiving those results.
71.16 	(f) (i) The 3rd through 8th grade grades 3 through 7 computer-adaptive assessments 
71.17 	and grade 8  and high school tests must be aligned with state academic standards. The 
71.18 	commissioner shall determine the testing process and the order of administration. 
71.19 	The statewide results shall be aggregated at the site and district level, consistent with 
71.20 	subdivision 1a.
71.21 	(g) In addition to the testing and reporting requirements under this section, (j) The 
71.22 	commissioner shall include the following components in the statewide public reporting 
71.23 	system:
71.24 	(1) uniform statewide testing computer-adaptive assessments of all students in 
71.25 	grades 3 through 8 7 and testing at the grade 8 and  high school level levels that provides 
71.26 	appropriate, technically sound accommodations or alternate assessments;
71.27 	(2) educational indicators that can be aggregated and compared across school 
71.28 	districts and across time on a statewide basis, including average daily attendance, high 
71.29 	school graduation rates, and high school drop-out rates by age and grade level;
71.30 	(3) state results on the American College Test; and
71.31 	(4) state results from participation in the National Assessment of Educational 
71.32 	Progress so that the state can benchmark its performance against the nation and other 
71.33 	states, and, where possible, against other countries, and contribute to the national effort 
71.34 	to monitor achievement.

71.35 	EFFECTIVE DATE. This section is effective the day following final enactment 
71.36 	and applies to the 2013-2014 school year and later, except that paragraph (a) applies 
72.1 	the day following final enactment and the requirements for using computer-adaptive 
72.2 	mathematics and reading assessments for grades 3 through 7 apply in the 2015-2016 
72.3 	school year and later. The series of assessments contracted for under paragraph (d) apply 
72.4 	in the 2014-2015 school year and later.

72.5 	Sec. 13. Minnesota Statutes 2012, section 120B.30, subdivision 1a, is amended to read:
72.6 		Subd. 1a.Statewide and local assessments; results. (a) For purposes of this 
72.7 	section, the following definitions have the meanings given them.
72.8 	(1) "Computer-adaptive assessments" means fully adaptive assessments.
72.9 	(2) "Fully adaptive assessments" include test items that are on-grade level and items 
72.10 	that may be above or below a student's grade level.
72.11 	(3) "On-grade level" test items contain subject area content that is aligned to state 
72.12 	academic standards for the grade level of the student taking the assessment.
72.13 	(4) "Above-grade level" test items contain subject area content that is above the 
72.14 	grade level of the student taking the assessment and is considered aligned with state 
72.15 	academic standards to the extent it is aligned with content represented in state academic 
72.16 	standards above the grade level of the student taking the assessment. Notwithstanding 
72.17 	the student's grade level, administering above-grade level test items to a student does not 
72.18 	violate the requirement that state assessments must be aligned with state standards.
72.19 	(5) "Below-grade level" test items contain subject area content that is below the 
72.20 	grade level of the student taking the test and is considered aligned with state academic 
72.21 	standards to the extent it is aligned with content represented in state academic standards 
72.22 	below the student's current grade level. Notwithstanding the student's grade level, 
72.23 	administering below-grade level test items to a student does not violate the requirement 
72.24 	that state assessments must be aligned with state standards.
72.25 	(b) The commissioner must use fully adaptive mathematics and reading assessments 
72.26 	for grades 3 through 7 beginning in the 2015-2016 school year and later.
72.27 	(c) For purposes of conforming with existing federal educational accountability 
72.28 	requirements, the commissioner must develop and implement computer-adaptive reading 
72.29 	and mathematics assessments for grades 3 through 8 7, state-developed grade 8 and 
72.30 	 high school reading and mathematics tests aligned with state academic standards, and 
72.31 	science assessments under clause (2) that districts and sites must use to monitor student 
72.32 	growth toward achieving those standards. The commissioner must not develop statewide 
72.33 	assessments for academic standards in social studies, health and physical education, and 
72.34 	the arts. The commissioner must require:
73.1 	(1) annual computer-adaptive reading and mathematics assessments in grades 3 
73.2 	through 8 7, and grade 8 and  high school reading and mathematics tests; and
73.3 	(2) annual science assessments in one grade in the grades 3 through 5 span, the 
73.4 	grades 6 through 8 span, and a life sciences assessment in the grades 9 through 12 span, 
73.5 	and the commissioner must not require students to achieve a passing score on high school 
73.6 	science assessments as a condition of receiving a high school diploma.
73.7 	(d) The commissioner must ensure that for annual computer-adaptive assessments:
73.8 	(1) individual student performance data and achievement reports are available 
73.9 	within three school days of when students take an assessment except in a year when an 
73.10 	assessment reflects new performance standards;
73.11 	(2) growth information is available for each student from the student's first 
73.12 	assessment to each proximate assessment using a constant measurement scale;
73.13 	(3) parents, teachers, and school administrators are able to use elementary and 
73.14 	middle school student performance data to project students' secondary and postsecondary 
73.15 	achievement; and
73.16 	(4) useful diagnostic information about areas of students' academic strengths and 
73.17 	weaknesses is available to teachers and school administrators for improving student 
73.18 	instruction and indicating the specific skills and concepts that should be introduced and 
73.19 	developed for students at given performance levels, organized by strands within subject 
73.20 	areas, and aligned to state academic standards.
73.21 	(b) (e) The commissioner must ensure that all statewide state tests administered to 
73.22 	elementary and secondary students measure students' academic knowledge and skills and 
73.23 	not students' values, attitudes, and beliefs.
73.24 	(c) (f) Reporting of state assessment results must:
73.25 	(1) provide timely, useful, and understandable information on the performance of 
73.26 	individual students, schools, school districts, and the state;
73.27 	(2) include a value-added growth indicator of student achievement under section
73.28 	120B.35, subdivision 3, paragraph (b); and
73.29 	(3)(i) for students enrolled in grade 8 before the 2005-2006 school year, determine 
73.30 	whether students have met the state's basic skills requirements; and
73.31 	(ii) for students enrolled in grade 8 in the 2005-2006 school year and later, determine 
73.32 	whether students have met the state's academic standards.
73.33 	(d) (g) Consistent with applicable federal law and subdivision 1, paragraph (d), 
73.34 	clause (1), the commissioner must include appropriate, technically sound accommodations 
73.35 	or alternative assessments for the very few students with disabilities for whom statewide 
73.36 	assessments are inappropriate and for English learners.
74.1 	(e)(h) A school, school district, and charter school must administer statewide 
74.2 	assessments under this section, as the assessments become available, to evaluate student 
74.3 	proficiency progress toward career and college readiness in the context of the state's grade 
74.4 	level academic standards. If a state assessment is not available, a school, school district, 
74.5 	and charter school must determine locally if a student has met the required academic 
74.6 	standards. A school, school district, or charter school may use a student's performance 
74.7 	on a statewide assessment as one of multiple criteria to determine grade promotion or 
74.8 	retention. A school, school district, or charter school may use a high school student's 
74.9 	performance on a statewide assessment as a percentage of the student's final grade in a 
74.10 	course, or place a student's assessment score on the student's transcript.

74.11 	EFFECTIVE DATE. This section is effective for the 2013-2014 school year and 
74.12 	later except the requirements for using computer-adaptive mathematics and reading 
74.13 	assessments for grades 3 through 7 apply in the 2015-2016 school year and later. Results 
74.14 	related to career and college readiness benchmarks apply in the 2014-2015 school year 
74.15 	and later.

74.16 	Sec. 14. Minnesota Statutes 2012, section 120B.31, subdivision 1, is amended to read:
74.17 		Subdivision 1.Educational accountability and public reporting. Consistent 
74.18 	with the direction to adopt statewide academic standards under section 120B.02, the 
74.19 	department, in consultation with education and other system stakeholders, must establish a 
74.20 	coordinated and comprehensive system of educational accountability and public reporting 
74.21 	that promotes greater academic achievement, preparation for higher academic education, 
74.22 	preparation for the world of work, citizenship under sections 120B.021, subdivision 1, 
74.23 	clause (4), and 120B.024, paragraph (a), clause (4), and the arts.

74.24 	Sec. 15. Minnesota Statutes 2012, section 120B.35, subdivision 3, is amended to read:
74.25 		Subd. 3.State growth target; other state measures. (a) The state's educational 
74.26 	assessment system measuring individual students' educational growth is based on 
74.27 	indicators of achievement growth that show an individual student's prior achievement. 
74.28 	Indicators of achievement and prior achievement must be based on highly reliable 
74.29 	statewide or districtwide assessments.
74.30 	(b) The commissioner, in consultation with a stakeholder group that includes 
74.31 	assessment and evaluation directors and staff and researchers must implement a model 
74.32 	that uses a value-added growth indicator and includes criteria for identifying schools 
74.33 	and school districts that demonstrate medium and high growth under section 120B.299, 
74.34 	subdivisions 8 and 9, and may recommend other value-added measures under section 
75.1 	120B.299, subdivision 3. The model may be used to advance educators' professional 
75.2 	development and replicate programs that succeed in meeting students' diverse learning 
75.3 	needs. Data on individual teachers generated under the model are personnel data under 
75.4 	section 13.43. The model must allow users to:
75.5 	(1) report student growth consistent with this paragraph; and
75.6 	(2) for all student categories, report and compare aggregated and disaggregated state 
75.7 	growth data using the nine student categories identified under the federal 2001 No Child 
75.8 	Left Behind Act and two student gender categories of male and female, respectively, 
75.9 	following appropriate reporting practices to protect nonpublic student data.
75.10 	The commissioner must report separate measures of student growth and proficiency, 
75.11 	consistent with this paragraph.
75.12 	(c) When reporting student performance under section 120B.36, subdivision 1, the 
75.13 	commissioner annually, beginning July 1, 2011, must report two core measures indicating 
75.14 	the extent to which current high school graduates are being prepared for postsecondary 
75.15 	academic and career opportunities:
75.16 	(1) a preparation measure indicating the number and percentage of high school 
75.17 	graduates in the most recent school year who completed course work important to 
75.18 	preparing them for postsecondary academic and career opportunities, consistent with 
75.19 	the core academic subjects required for admission to Minnesota's public colleges and 
75.20 	universities as determined by the Office of Higher Education under chapter 136A; and
75.21 	(2) a rigorous coursework measure indicating the number and percentage of high 
75.22 	school graduates in the most recent school year who successfully completed one or more 
75.23 	college-level advanced placement, international baccalaureate, postsecondary enrollment 
75.24 	options including concurrent enrollment, other rigorous courses of study under section 
75.25 	120B.021, subdivision 1a, or industry certification courses or programs.
75.26 	When reporting the core measures under clauses (1) and (2), the commissioner must also 
75.27 	analyze and report separate categories of information using the nine student categories 
75.28 	identified under the federal 2001 No Child Left Behind Act and two student gender 
75.29 	categories of male and female, respectively, following appropriate reporting practices to 
75.30 	protect nonpublic student data.
75.31 	(d) When reporting student performance under section 120B.36, subdivision 1, the 
75.32 	commissioner annually, beginning July 1, 2014, must report summary data on school 
75.33 	safety and students' engagement and connection at school. The summary data under this 
75.34 	paragraph are separate from and must not be used for any purpose related to measuring 
75.35 	or evaluating the performance of classroom teachers. The commissioner, in consultation 
75.36 	with qualified experts on student engagement and connection and classroom teachers, 
76.1 	must identify highly reliable variables that generate summary data under this paragraph. 
76.2 	The summary data may be used at school, district, and state levels only. Any data on 
76.3 	individuals received, collected, or created that are used to generate the summary data 
76.4 	under this paragraph are nonpublic data under section 13.02, subdivision 9.
76.5 	(e) For purposes of statewide educational accountability, the commissioner must 
76.6 	identify and report measures that demonstrate the success of learning year program 
76.7 	providers under sections 123A.05 and 124D.68, among other such providers, in improving 
76.8 	students' graduation outcomes. The commissioner, beginning July 1, 2015, must annually 
76.9 	report summary data on:
76.10 	(1) the four- and six-year graduation rates of students under this paragraph;
76.11 	(2) the percent of students under this paragraph whose progress and performance 
76.12 	levels are meeting career and college readiness benchmarks under section 120B.30, 
76.13 	subdivision 1; and
76.14 	(3) the success that learning year program providers experience in:
76.15 	(i) identifying at-risk and off-track student populations by grade;
76.16 	(ii) providing successful prevention and intervention strategies for at-risk students;
76.17 	(iii) providing successful recuperative and recovery or reenrollment strategies for 
76.18 	off-track students; and
76.19 	(iv) improving the graduation outcomes of at-risk and off-track students.
76.20 	The commissioner may include in the annual report summary data on other education 
76.21 	providers serving a majority of students eligible to participate in a learning year program.

76.22 	EFFECTIVE DATE. Paragraph (e) applies to data that are collected in the 
76.23 	2014-2015 school year and later and reported annually beginning July 1, 2015. 

76.24 	Sec. 16. Minnesota Statutes 2012, section 120B.36, subdivision 1, is amended to read:
76.25 		Subdivision 1.School performance report cards reports. (a) The commissioner 
76.26 	shall report student academic performance under section 120B.35, subdivision 2; the 
76.27 	percentages of students showing low, medium, and high growth under section 120B.35, 
76.28 	subdivision 3, paragraph (b); school safety and student engagement and connection 
76.29 	under section 120B.35, subdivision 3, paragraph (d); rigorous coursework under section 
76.30 	120B.35, subdivision 3, paragraph (c); the percentage of students under section 120B.35, 
76.31 	subdivision 3, paragraph (b), clause (2), whose progress and performance levels are 
76.32 	meeting career and college readiness benchmarks under sections 120B.30, subdivision 
76.33 	1, and 120B.35, subdivision 3, paragraph (e); longitudinal data on the progress of 
76.34 	eligible districts in reducing disparities in students' academic achievement and racial and 
76.35 	economic integration under section 124D.861; two separate student-to-teacher ratios that 
77.1 	clearly indicate the definition of teacher consistent with sections 122A.06 and 122A.15
77.2 	for purposes of determining these ratios; staff characteristics excluding salaries; student 
77.3 	enrollment demographics; district mobility; and extracurricular activities. The report also 
77.4 	must indicate a school's adequate yearly progress status under applicable federal law, 
77.5 	and must not set any designations applicable to high- and low-performing schools due 
77.6 	solely to adequate yearly progress status.
77.7 	(b) The commissioner shall develop, annually update, and post on the department 
77.8 	Web site school performance report cards reports.
77.9 	(c) The commissioner must make available performance report cards reports by the 
77.10 	beginning of each school year.
77.11 	(d) A school or district may appeal its adequate yearly progress status in writing to 
77.12 	the commissioner within 30 days of receiving the notice of its status. The commissioner's 
77.13 	decision to uphold or deny an appeal is final.
77.14 	(e) School performance report card data are nonpublic data under section 13.02, 
77.15 	subdivision 9, until the commissioner publicly releases the data. The commissioner shall 
77.16 	annually post school performance report cards reports to the department's public Web 
77.17 	site no later than September 1, except that in years when the report card reflects reports 
77.18 	reflect new performance standards, the commissioner shall post the school performance 
77.19 	report cards reports no later than October 1.

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

77.22 	Sec. 17. Minnesota Statutes 2012, section 124D.52, is amended by adding a 
77.23 	subdivision to read:
77.24 		Subd. 8.Standard high school diploma for adults. (a) The commissioner shall 
77.25 	adopt rules for providing a standard adult high school diploma to persons who:
77.26 	(1) are not eligible for kindergarten through grade 12 services;
77.27 	(2) do not have a high school diploma; and
77.28 	(3) successfully complete an adult basic education program of instruction approved 
77.29 	by the commissioner of education necessary to earn an adult high school diploma.
77.30 	(b) Persons participating in an approved adult basic education program of instruction 
77.31 	must demonstrate the competencies, knowledge, and skills sufficient to ensure that 
77.32 	postsecondary programs and institutions and potential employers regard persons with a 
77.33 	standard high school diploma and persons with a standard adult high school diploma as 
77.34 	equally well prepared and qualified graduates. Approved adult basic education programs 
77.35 	of instruction under this subdivision must issue a standard adult high school diploma to 
78.1 	persons who successfully demonstrate the competencies, knowledge, and skills required 
78.2 	by the program.

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

78.4 	Sec. 18. CAREER PATHWAYS AND TECHNICAL EDUCATION ADVISORY 
78.5 	TASK FORCE.
 78.6 		Subdivision 1.Recommendations. (a) A career pathways and technical education 
78.7 	advisory task force is established to recommend to the Minnesota legislature, consistent 
78.8 	with Minnesota Statutes, sections 120B.30, subdivision 1, and 120B.35, subdivision 3, 
78.9 	how to structurally redesign secondary and postsecondary education to:
78.10 	(1) improve secondary and postsecondary outcomes for students and adult learners;
78.11 	(2) align secondary and postsecondary education programs serving students and 
78.12 	adult learners;
78.13 	(3) align secondary and postsecondary education programs and Minnesota's 
78.14 	workforce needs; and
78.15 	(4) measure and evaluate the combined efficacy of Minnesota's public kindergarten 
78.16 	through grade 12 and postsecondary education programs.
78.17 	(b) Advisory task force members, in preparing these recommendations, must 
78.18 	seek the advice of education providers, employers, policy makers, and other interested 
78.19 	stakeholders and must at least consider how to:
78.20 	(1) better inform students about career options, occupational trends, and educational 
78.21 	paths leading to viable and rewarding careers and reduce the gap between the demand for 
78.22 	and preparation of a skilled Minnesota workforce;
78.23 	(2) in consultation with a student's family, develop and periodically adapt, as 
78.24 	needed, an education and work plan for each student aligned with the student's personal 
78.25 	and professional interests, abilities, skills, and aspirations;
78.26 	(3) improve monitoring of high school students' progress with targeted interventions 
78.27 	and support and remove the need for remedial instruction;
78.28 	(4) increase and accelerate opportunities for secondary school students to earn 
78.29 	postsecondary credits leading to a certificate, industry license, or degree;
78.30 	(5) better align high school courses and expectations and postsecondary 
78.31 	credit-bearing courses;
78.32 	(6) better align high school standards and assessments, postsecondary readiness 
78.33 	measures and entrance requirements, and the expectations of Minnesota employers;
78.34 	(7) increase the rates at which students complete a postsecondary certificate, 
78.35 	industry license, or degree; and
79.1 	(8) provide graduates of two-year and four-year postsecondary institutions with the 
79.2 	foundational skills needed for civic engagement, ongoing employment, and continuous 
79.3 	learning.
79.4 		Subd. 2.Membership. The Career Pathways Advisory Task Force shall have 15 
79.5 	members appointed by July 15, 2013, as follows:
79.6 	(1) one member appointed by the Minnesota Association of Career and Technical 
79.7 	Administrators;
79.8 	(2) one member appointed by the Minnesota Association for Career and Technical 
79.9 	Education;
79.10 	(3) one member appointed by the University of Minnesota who is a faculty member 
79.11 	working to develop career and technical educators in Minnesota;
79.12 	(4) one member appointed by the Minnesota State Colleges and Universities who is 
79.13 	a faculty member working to develop career and technical educators in Minnesota;
79.14 	(5) one member appointed by the National Research Center for Career and Technical 
79.15 	Education;
79.16 	(6) one member appointed by the Minnesota Department of Education;
79.17 	(7) one member appointed by the Minnesota Board of Teaching;
79.18 	(8) one member appointed by the Minnesota Association of Colleges for Teacher 
79.19 	Education;
79.20 	(9) one member appointed by the Minnesota State Colleges and Universities from 
79.21 	faculty for foundational skills and general education; 
79.22 	(10) one member representing licensed career and technical education teachers 
79.23 	appointed by Education Minnesota;
79.24 	(11) one member appointed by the commissioner of the Minnesota Department of 
79.25 	Employment and Economic Development;
79.26 	(12) one member appointed by the Minnesota Chamber of Commerce;
79.27 	(13) one member appointed by the Minnesota Business Partnership;
79.28 	(14) one member appointed by the Minnesota Secondary School Principals 
79.29 	Association;
79.30 	(15) one member appointed by the Minnesota Association of School Administrators;
79.31 	(16) one member appointed by the Minnesota School Counselors Association;
79.32 	(17) one member appointed by the Minnesota Association of Charter Schools; and
79.33 	(18) four members appointed by the commissioner of education who have expertise 
79.34 	in any of the areas with which the task force has been charged in subdivision 1.
79.35 		Subd. 3.Terms. Each member shall serve until the task force sunsets, unless 
79.36 	replaced by their appointing authority.
80.1 		Subd. 4.First meeting; acting chair; chair. The commissioner of education shall 
80.2 	convene the first meeting by August 15, 2013, and shall act as chair until the task force 
80.3 	elects a chair from among its members at the first meeting.
80.4 		Subd. 5.Staff; technical assistance. The commissioner of education, on request 
80.5 	by the task force, will provide technical assistance and provide staff assistance sufficient 
80.6 	for the task force to carry out its duties.
80.7 		Subd. 6.Report. By February 15, 2014, the task force shall submit a written 
80.8 	report describing its recommendations to the chairs and ranking minority members of the 
80.9 	legislative committees and divisions with primary jurisdiction over kindergarten through 
80.10 	grade 12 education.
80.11 		Subd. 7.Sunset. The task force expires the day after the task force reports to the 
80.12 	legislature, or February 15, 2014, whichever is earlier.

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

80.14 	Sec. 19. STANDARD ADULT HIGH SCHOOL DIPLOMA ADVISORY TASK 
80.15 	FORCE.
 80.16 		Subdivision 1.Establishment. The commissioner of education shall appoint a 
80.17 	nine-member advisory task force to recommend programmatic requirements for adult 
80.18 	basic education programs of instruction leading to a standard adult high school diploma 
80.19 	under Minnesota Statutes, section 124D.52, subdivision 8. 
80.20 		Subd. 2.Membership. The commissioner of education must appoint representatives 
80.21 	from the following organizations to the task force by July 1, 2013:
80.22 	(1) one employee of the Department of Education with expertise in adult basic 
80.23 	education;
80.24 	(2) five administrators and teachers with expertise in development of education 
80.25 	curriculum from local adult basic education programs located in rural, suburban, and 
80.26 	urban areas of the state, at least one of whom represents the Literacy Action network;
80.27 	(3) one employee of the Minnesota State Colleges and Universities with expertise 
80.28 	in adult basic education;
80.29 	(4) one employee of the Department of Employment and Economic Development 
80.30 	with expertise in adult basic education and employment; and
80.31 	(5) one member of the Minnesota Chamber of Commerce familiar with adult basic 
80.32 	education programs under Minnesota Statutes, section 124D.52.
80.33 		Subd. 3.Duties. The duties of the task force shall include:
81.1 	(1) reviewing "Minnesota Adult Secondary Credential: a Student Strategy for 
81.2 	Workforce Readiness and Individual Prosperity," a report submitted in 2012 by the 
81.3 	Minnesota Adult Secondary Task Force, and other relevant materials; and
81.4 	(2) developing specific criteria to be used in awarding the new adult diploma.
81.5 		Subd. 4.First meeting. The commissioner of education must convene the first 
81.6 	meeting of the task force by August 1, 2013.
81.7 		Subd. 5.Chair. The commissioner shall appoint a chair.
81.8 		Subd. 6.Assistance. The commissioner, upon request, must provide technical 
81.9 	assistance to task force members.
81.10 		Subd. 7.Report. By February 1, 2014, the task force must submit its 
81.11 	recommendations to the commissioner of education for providing a standard adult high 
81.12 	school diploma to persons who are not eligible for kindergarten through grade 12 services, 
81.13 	who do not have a high school diploma, and who successfully complete an approved adult 
81.14 	basic education program of instruction necessary to earn an adult high school diploma. 
81.15 	The commissioner must consider these recommendations when adopting rules under 
81.16 	Minnesota Statutes, section 124D.52, subdivision 8.
81.17 		Subd. 8.Sunset. The task force sunsets the day after submitting its report under 
81.18 	subdivision 7, or February 2, 2014, whichever is earlier.

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

81.20 	Sec. 20. APPROPRIATIONS.
 81.21 		Subdivision 1.Minnesota Department of Education. The sums indicated in this 
81.22 	section are appropriated from the general fund to the Department of Education for the 
81.23 	fiscal years designated.
81.24 		Subd. 2.Statewide testing and reporting system. For the statewide testing and 
81.25 	reporting system under Minnesota Statutes, section 120B.30:

81.26		$
	15,955,000
	.....
	2014
	
81.27		$
	21,001,000
	.....
	2015
	
81.28 	Any balance in the first year does not cancel but is available in the second year.
81.29 		Subd. 3.Educational planning and assessment system (EPAS) program. For 
81.30 	the educational planning and assessment system program under Minnesota Statutes, 
81.31 	section 120B.128:

81.32		$
	829,000
	.....
	2014
	
81.33		$
	0
	.....
	2015
	
82.1 	Any balance in the first year does not cancel but is available in the second year.

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

82.6 	Sec. 22.  REPEALER.
 82.7 	(a) Minnesota Rules, parts 3501.0505; 3501.0510; 3501.0515; 3501.0520; 
82.8 	3501.0525; 3501.0530; 3501.0535; 3501.0540; 3501.0545; and 3501.0550, are repealed.
82.9 	(b) Minnesota Rules, parts 3501.0010; 3501.0020; 3501.0030, subparts 1, 2, 3, 4, 
82.10 	5, 6, 7, 9, 10, 11, 12, 13, 14, 15, and 16; 3501.0040; 3501.0050; 3501.0060; 3501.0090; 
82.11 	3501.0100; 3501.0110; 3501.0120; 3501.0130; 3501.0140; 3501.0150; 3501.0160; 
82.12 	3501.0170; 3501.0180; 3501.0200; 3501.0210; 3501.0220; 3501.0230; 3501.0240; 
82.13 	3501.0250; 3501.0270; 3501.0280, subparts 1 and 2; 3501.0290; 3501.1000; 3501.1020; 
82.14 	3501.1030; 3501.1040; 3501.1050; 3501.1110; 3501.1120; 3501.1130; 3501.1140; 
82.15 	3501.1150; 3501.1160; 3501.1170; 3501.1180; and 3501.1190, are repealed.

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

82.17 	ARTICLE 3
82.18 	EDUCATION EXCELLENCE

82.19 	Section 1. Minnesota Statutes 2012, section 120A.22, subdivision 5, is amended to read:
82.20 		Subd. 5.Ages and terms. (a) Every child between seven and 1617 years of age must 
82.21 	receive instruction unless the child has graduated. Every child under the age of seven who 
82.22 	is enrolled in a half-day kindergarten, or a full-day kindergarten program on alternate days, 
82.23 	or other kindergarten programs shall receive instruction. Except as provided in subdivision 
82.24 	6, a parent may withdraw a child under the age of seven from enrollment at any time.
82.25 	(b) A school district by annual board action may require children subject to this 
82.26 	subdivision to receive instruction in summer school. A district that acts to require children 
82.27 	to receive instruction in summer school shall establish at the time of its action the criteria 
82.28 	for determining which children must receive instruction.
82.29 	(c) A pupil 16 years of age or older who meets the criteria of section 124D.68, 
82.30 	subdivision 2, may be assigned to an area learning center. Such assignment may be made 
82.31 	only after consultation with the principal, area learning center director, and parent or 
82.32 	guardian.

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

83.3 	Sec. 2. Minnesota Statutes 2012, section 120A.22, subdivision 8, is amended to read:
83.4 		Subd. 8.Withdrawal from school. Any student between 16 and 18who is 17 years 
83.5 	old who seeks to withdraw from school, and the student's parent or guardian must:
83.6 	(1) attend a meeting with school personnel to discuss the educational opportunities 
83.7 	available to the student, including alternative educational opportunities; and
83.8 	(2) sign a written election to withdraw from school.

83.9 	Sec. 3. Minnesota Statutes 2012, section 120A.22, subdivision 11, is amended to read:
83.10 		Subd. 11.Assessment of performance. (a) Each year the performance of every 
83.11 	child ages seven through 16 and every child ages 16 through 17 for which an initial 
83.12 	report was filed pursuant to section 120A.24, subdivision 1, after the child is 16 and who 
83.13 	is not enrolled in a public school must be assessed using a nationally norm-referenced 
83.14 	standardized achievement examination. The superintendent of the district in which the 
83.15 	child receives instruction and the person in charge of the child's instruction must agree about 
83.16 	the specific examination to be used and the administration and location of the examination.
83.17 	(b) To the extent the examination in paragraph (a) does not provide assessment in 
83.18 	all of the subject areas in subdivision 9, the parent must assess the child's performance 
83.19 	in the applicable subject area. This requirement applies only to a parent who provides 
83.20 	instruction and does not meet the requirements of subdivision 10, clause (1), (2), or (3).
83.21 	(c) If the results of the assessments in paragraphs (a) and (b) indicate that the 
83.22 	child's performance on the total battery score is at or below the 30th percentile or one 
83.23 	grade level below the performance level for children of the same age, the parent must 
83.24 	obtain additional evaluation of the child's abilities and performance for the purpose of 
83.25 	determining whether the child has learning problems.
83.26 	(d) A child receiving instruction from a nonpublic school, person, or institution that 
83.27 	is accredited by an accrediting agency, recognized according to section 123B.445, or 
83.28 	recognized by the commissioner, is exempt from the requirements of this subdivision.

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

83.31 	Sec. 4. Minnesota Statutes 2012, section 120A.22, subdivision 12, is amended to read:
83.32 		Subd. 12.Legitimate exemptions. (a) A parent, guardian, or other person 
83.33 	having control of a child may apply to a school district to have the child excused from 
84.1 	attendance for the whole or any part of the time school is in session during any school 
84.2 	year. Application may be made to any member of the board, a truant officer, a principal, 
84.3 	or the superintendent. The school district may state in its school attendance policy that 
84.4 	it may ask the student's parent or legal guardian to verify in writing the reason for 
84.5 	the child's absence from school. A note from a physician or a licensed mental health 
84.6 	professional stating that the child cannot attend school is a valid excuse. The board of the 
84.7 	district in which the child resides may approve the application upon the following being 
84.8 	demonstrated to the satisfaction of that board:
84.9 	(1) that the child's physical or mental health is such as to prevent attendance at 
84.10 	school or application to study for the period required, which includes:
84.11 	(i) child illness, medical, dental, orthodontic, or counseling appointments;
84.12 	(ii) family emergencies;
84.13 	(iii) the death or serious illness or funeral of an immediate family member;
84.14 	(iv) active duty in any military branch of the United States;
84.15 	(v) the child has a condition that requires ongoing treatment for a mental health 
84.16 	diagnosis; or
84.17 	(vi) other exemptions included in the district's school attendance policy;
84.18 	(2) that the child has already completed state and district standards required for 
84.19 	graduation from high school; or
84.20 	(3) that it is the wish of the parent, guardian, or other person having control of the 
84.21 	child, that the child attend for a period or periods not exceeding in the aggregate three 
84.22 	hours in any week, a school for religious instruction conducted and maintained by some 
84.23 	church, or association of churches, or any Sunday school association incorporated under 
84.24 	the laws of this state, or any auxiliary thereof. This school for religious instruction must 
84.25 	be conducted and maintained in a place other than a public school building, and it must 
84.26 	not, in whole or in part, be conducted and maintained at public expense. However, a child 
84.27 	may be absent from school on such days as the child attends upon instruction according to 
84.28 	the ordinances of some church.
84.29 	(b) Notwithstanding subdivision 6, paragraph (a), a parent may withdraw a child 
84.30 	from an all-day, every-day kindergarten program and put their child in a half-day program, 
84.31 	if offered, or an alternate-day program without being truant. A school board must excuse a 
84.32 	kindergarten child from a part of a school day at the request of the child's parent.

84.33 	Sec. 5. Minnesota Statutes 2012, section 120A.24, subdivision 1, is amended to read:
84.34 		Subdivision 1.Reports to superintendent. (a) The person or nonpublic school in 
84.35 	charge of providing instruction to a child must submit to the superintendent of the district 
85.1 	in which the child resides the name, birth date, and address of the child; the annual tests 
85.2 	intended to be used under section 120A.22, subdivision 11, if required; the name of each 
85.3 	instructor; and evidence of compliance with one of the requirements specified in section 
85.4 	120A.22, subdivision 10:
85.5 	(1) by October 1 of the first school year the child receives instruction after reaching 
85.6 	the age of seven;
85.7 	(2) within 15 days of when a parent withdraws a child from public school after 
85.8 	age seven to provide instruction in a nonpublic school that is not accredited by a 
85.9 	state-recognized accredited agency;
85.10 	(3) within 15 days of moving out of a district; and
85.11 	(4) by October 1 after a new resident district is established.
85.12 	(b) The person or nonpublic school in charge of providing instruction to a child 
85.13 	between the ages of seven and 16 and every child ages 16 through 17 for which an 
85.14 	initial report was filed pursuant to this subdivision after the child is 16 must submit, by 
85.15 	October 1 of each school year, a letter of intent to continue to provide instruction under 
85.16 	this section for all students under the person's or school's supervision and any changes to 
85.17 	the information required in paragraph (a) for each student.
85.18 	(c) The superintendent may collect the required information under this section 
85.19 	through an electronic or Web-based format, but must not require electronic submission of 
85.20 	information under this section from the person in charge of reporting under this subdivision.

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

85.23 	Sec. 6. Minnesota Statutes 2012, section 121A.22, subdivision 2, is amended to read:
85.24 		Subd. 2.Exclusions. In addition, this section does not apply to drugs or medicine 
85.25 	that are:
85.26 	(1) purchased without a prescription;
85.27 	(2) used by a pupil who is 18 years old or older;
85.28 	(3) used in connection with services for which a minor may give effective consent, 
85.29 	including section 144.343, subdivision 1, and any other law;
85.30 	(4) used in situations in which, in the judgment of the school personnel who are 
85.31 	present or available, the risk to the pupil's life or health is of such a nature that drugs or 
85.32 	medicine should be given without delay;
85.33 	(5) used off the school grounds;
85.34 	(6) used in connection with athletics or extra curricular activities;
85.35 	(7) used in connection with activities that occur before or after the regular school day;
86.1 	(8) provided or administered by a public health agency to prevent or control an 
86.2 	illness or a disease outbreak as provided for in sections 144.05 and 144.12;
86.3 	(9) prescription asthma or reactive airway disease medications self-administered by 
86.4 	a pupil with an asthma inhaler if the district has received a written authorization from the 
86.5 	pupil's parent permitting the pupil to self-administer the medication, the inhaler is properly 
86.6 	labeled for that student, and the parent has not requested school personnel to administer 
86.7 	the medication to the pupil. The parent must submit written authorization for the pupil to 
86.8 	self-administer the medication each school year; or
86.9 	(10) prescription nonsyringe injectors of epinephrine auto-injectors, consistent with 
86.10 	section 121A.2205, if the parent and prescribing medical professional annually inform 
86.11 	the pupil's school in writing that (i) the pupil may possess the epinephrine or (ii) the 
86.12 	pupil is unable to possess the epinephrine and requires immediate access to nonsyringe 
86.13 	injectors of epinephrine auto-injectors that the parent provides properly labeled to the 
86.14 	school for the pupil as needed.

86.15 	Sec. 7. Minnesota Statutes 2012, section 121A.2205, is amended to read:
86.16 	121A.2205 POSSESSION AND USE OF NONSYRINGE INJECTORS OF
86.17 	 EPINEPHRINE AUTO-INJECTORS; MODEL POLICY.
86.18 		Subdivision 1.Definitions. As used in this section:
86.19 	(1) "administer" means the direct application of an epinephrine auto-injector to 
86.20 	the body of an individual;
86.21 	(2) "epinephrine auto-injector" means a device that automatically injects a 
86.22 	premeasured dose of epinephrine; and
86.23 	(3) "school" means a public school under section 120A.22, subdivision 4, or a 
86.24 	nonpublic school, excluding a home school, under section 120A.22, subdivision 4, that 
86.25 	is subject to the federal Americans with Disabilities Act.
86.26 		Subd. 2.Plan for use of epinephrine auto-injectors. (a) At the start of each school 
86.27 	year or at the time a student enrolls in school, whichever is first, a student's parent, school 
86.28 	staff, including those responsible for student health care, and the prescribing medical 
86.29 	professional must develop and implement an individualized written health plan for a 
86.30 	student who is prescribed nonsyringe injectors of epinephrine auto-injectors that enables 
86.31 	the student to:
86.32 	(1) possess nonsyringe injectors of epinephrine auto-injectors; or
86.33 	(2) if the parent and prescribing medical professional determine the student is unable 
86.34 	to possess the epinephrine, have immediate access to nonsyringe injectors of epinephrine 
86.35 	auto-injectors in close proximity to the student at all times during the instructional day.
87.1 	The plan must designate the school staff responsible for implementing the student's 
87.2 	health plan, including recognizing anaphylaxis and administering nonsyringe injectors of
87.3 	 epinephrine auto-injectors when required, consistent with section 121A.22, subdivision 2, 
87.4 	clause (10). This health plan may be included in a student's 504 plan.
87.5 	(b) A school under this section is a public school under section 120A.22, subdivision 
87.6 	4, or a nonpublic school, excluding a home school, under section 120A.22, subdivision 4, 
87.7 	that is subject to the federal Americans with Disabilities Act. Other nonpublic schools are 
87.8 	encouraged to develop and implement an individualized written health plan for students 
87.9 	requiring nonsyringe injectors of epinephrine auto-injectors, consistent with this section 
87.10 	and section 121A.22, subdivision 2, clause (10).
87.11 	(c) A school district and its agents and employees are immune from liability for 
87.12 	any act or failure to act, made in good faith, in implementing this section and section 
87.13 	121A.2207.
87.14 	(d) The education commissioner may develop and transmit to interested schools a 
87.15 	model policy and individualized health plan form consistent with this section and federal 
87.16 	504 plan requirements. The policy and form may:
87.17 	(1) assess a student's ability to safely possess nonsyringe injectors of epinephrine
87.18 	 auto-injectors;
87.19 	(2) identify staff training needs related to recognizing anaphylaxis and administering 
87.20 	epinephrine when needed;
87.21 	(3) accommodate a student's need to possess or have immediate access to nonsyringe 
87.22 	injectors of epinephrine auto-injectors in close proximity to the student at all times during 
87.23 	the instructional day; and
87.24 	(4) ensure that the student's parent provides properly labeled nonsyringe injectors of 
87.25 	epinephrine auto-injectors to the school for the student as needed.
87.26 	(e) Additional nonsyringe injectors of epinephrine auto-injectors may be available in 
87.27 	school first aid kits.
87.28 	(f) The school board of the school district must define instructional day for the 
87.29 	purposes of this section.

87.30 	Sec. 8. [121A.2207] LIFE-THREATENING ALLERGIES IN SCHOOLS; 
87.31 	STOCK SUPPLY OF EPINEPHRINE AUTO-INJECTORS.
87.32 		Subdivision 1.Districts and schools permitted to maintain supply.
 87.33 	Notwithstanding section 151.37, districts and schools may obtain and possess epinephrine 
87.34 	auto-injectors to be maintained and administered by school personnel to a student or 
87.35 	other individual if, in good faith, it is determined that person is experiencing anaphylaxis 
88.1 	regardless of whether the student or other individual has a prescription for an epinephrine 
88.2 	auto-injector. The administration of an epinephrine auto-injector in accordance with 
88.3 	this section is not the practice of medicine. 
88.4 		Subd. 2.Arrangements with manufacturers. A district or school may enter into 
88.5 	arrangements with manufacturers of epinephrine auto-injectors to obtain epinephrine 
88.6 	auto-injectors at fair-market, free, or reduced prices. A third party, other than a 
88.7 	manufacturer or supplier, may pay for a school's supply of epinephrine auto-injectors.

88.8 	Sec. 9. Minnesota Statutes 2012, section 121A.39, is amended to read:
88.9 	121A.39 SCHOOL COUNSELORS.
88.10 	(a) A school district is strongly encouraged to have an adequate student-to-counselor 
88.11 	ratio for its students beginning in the 2015-2016 school year and later.
88.12 	(b) A school counselor shall assist a student in meeting the requirements for high 
88.13 	school graduation, college and career exploration, and selection, college affordability 
88.14 	planning, and successful transitions into postsecondary education or training.

88.15 	Sec. 10. Minnesota Statutes 2012, section 122A.09, subdivision 4, is amended to read:
88.16 		Subd. 4.License and rules. (a) The board must adopt rules to license public school 
88.17 	teachers and interns subject to chapter 14.
88.18 	(b) The board must adopt rules requiring a person to pass a skills examination in 
88.19 	reading, writing, and mathematics as a requirement for initial teacher licensure, except 
88.20 	that the board may issue up to two additional temporary, one-year teaching licenses to an 
88.21 	otherwise qualified candidate who has not yet passed the skills exam. Such rules must 
88.22 	require college and universities offering a board-approved teacher preparation program to 
88.23 	provide remedial assistance to persons who did not achieve a qualifying score on the skills 
88.24 	examination, including those for whom English is a second language.
88.25 	(c) The board must adopt rules to approve teacher preparation programs. The board, 
88.26 	upon the request of a postsecondary student preparing for teacher licensure or a licensed 
88.27 	graduate of a teacher preparation program, shall assist in resolving a dispute between the 
88.28 	person and a postsecondary institution providing a teacher preparation program when the 
88.29 	dispute involves an institution's recommendation for licensure affecting the person or the 
88.30 	person's credentials. At the board's discretion, assistance may include the application 
88.31 	of chapter 14.
88.32 	(d) The board must provide the leadership and adopt rules for the redesign of teacher 
88.33 	education programs to implement a research based, results-oriented curriculum that 
88.34 	focuses on the skills teachers need in order to be effective. The board shall implement new 
89.1 	systems of teacher preparation program evaluation to assure program effectiveness based 
89.2 	on proficiency of graduates in demonstrating attainment of program outcomes. Teacher 
89.3 	preparation programs including alternative teacher preparation programs under section 
89.4 	122A.245, among other programs, must include a content-specific, board-approved, 
89.5 	performance-based assessment that measures teacher candidates in three areas: planning 
89.6 	for instruction and assessment; engaging students and supporting learning; and assessing 
89.7 	student learning.
89.8 	(e) The board must adopt rules requiring candidates for initial licenses to pass an 
89.9 	examination of general pedagogical knowledge and examinations of licensure-specific 
89.10 	teaching skills. The rules shall be effective by September 1, 2001. The rules under this 
89.11 	paragraph also must require candidates for initial licenses to teach prekindergarten or 
89.12 	elementary students to pass, as part of the examination of licensure-specific teaching 
89.13 	skills, test items assessing the candidates' knowledge, skill, and ability in comprehensive, 
89.14 	scientifically based reading instruction under section 122A.06, subdivision 4, and their 
89.15 	knowledge and understanding of the foundations of reading development, the development 
89.16 	of reading comprehension, and reading assessment and instruction, and their ability to 
89.17 	integrate that knowledge and understanding.
89.18 	(f) The board must adopt rules requiring teacher educators to work directly with 
89.19 	elementary or secondary school teachers in elementary or secondary schools to obtain 
89.20 	periodic exposure to the elementary or secondary teaching environment.
89.21 	(g) The board must grant licenses to interns and to candidates for initial licenses 
89.22 	based on appropriate professional competencies that are aligned with the board's licensing 
89.23 	system and students' diverse learning needs. The board must include these licenses in a 
89.24 	statewide differentiated licensing system that creates new leadership roles for successful 
89.25 	experienced teachers premised on a collaborative professional culture dedicated to meeting 
89.26 	students' diverse learning needs in the 21st century and formalizes mentoring and induction 
89.27 	for newly licensed teachers that is provided through a teacher support framework.
89.28 	(h) The board must design and implement an assessment system which requires a 
89.29 	candidate for an initial license and first continuing license to demonstrate the abilities 
89.30 	necessary to perform selected, representative teaching tasks at appropriate levels.
89.31 	(i) The board must receive recommendations from local committees as established 
89.32 	by the board for the renewal of teaching licenses.
89.33 	(j) The board must grant life licenses to those who qualify according to requirements 
89.34 	established by the board, and suspend or revoke licenses pursuant to sections 122A.20 and 
89.35 	214.10. The board must not establish any expiration date for application for life licenses.
90.1 	(k) The board must adopt rules that require all licensed teachers who are renewing 
90.2 	their continuing license to include in their renewal requirements further preparation in 
90.3 	the areas of using positive behavior interventions and in accommodating, modifying, and 
90.4 	adapting curricula, materials, and strategies to appropriately meet the needs of individual 
90.5 	students and ensure adequate progress toward the state's graduation rule.
90.6 	(l) In adopting rules to license public school teachers who provide health-related 
90.7 	services for disabled children, the board shall adopt rules consistent with license or 
90.8 	registration requirements of the commissioner of health and the health-related boards who 
90.9 	license personnel who perform similar services outside of the school.
90.10 	(m) The board must adopt rules that require all licensed teachers who are renewing 
90.11 	their continuing license to include in their renewal requirements further reading 
90.12 	preparation, consistent with section 122A.06, subdivision 4. The rules do not take effect 
90.13 	until they are approved by law. Teachers who do not provide direct instruction including, at 
90.14 	least, counselors, school psychologists, school nurses, school social workers, audiovisual 
90.15 	directors and coordinators, and recreation personnel are exempt from this section.
90.16 	(n) The board must adopt rules that require all licensed teachers who are renewing 
90.17 	their continuing license to include in their renewal requirements further preparation, 
90.18 	first, in understanding the key warning signs of early-onset mental illness in children 
90.19 	and adolescents and then, during subsequent licensure renewal periods, preparation may 
90.20 	include providing a more in-depth understanding of students' mental illness trauma, 
90.21 	accommodations for students' mental illness, parents' role in addressing students' mental 
90.22 	illness, Fetal Alcohol Spectrum Disorders, autism, the requirements of section 125A.0942 
90.23 	governing restrictive procedures, and de-escalation methods, among other similar topics.

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

90.26 	Sec. 11. Minnesota Statutes 2012, section 122A.18, subdivision 2, is amended to read:
90.27 		Subd. 2.Teacher and support personnel qualifications. (a) The Board of 
90.28 	Teaching must issue licenses under its jurisdiction to persons the board finds to be 
90.29 	qualified and competent for their respective positions.
90.30 	(b) The board must require a person to pass an examination of skills in reading, 
90.31 	writing, and mathematics before being granted an initial teaching license to provide direct 
90.32 	instruction to pupils in prekindergarten, elementary, secondary, or special education 
90.33 	programs, except that the board may issue up to two additional temporary, one-year 
90.34 	teaching licenses to an otherwise qualified candidate who has not yet passed the skills 
90.35 	exam. The board must require colleges and universities offering a board approved teacher 
91.1 	preparation program to provide make available upon request remedial assistance that 
91.2 	includes a formal diagnostic component to persons enrolled in their institution who did 
91.3 	not achieve a qualifying score on the skills examination, including those for whom 
91.4 	English is a second language. The colleges and universities must provide make available
91.5 	 assistance in the specific academic areas of deficiency in which the person did not achieve 
91.6 	a qualifying score. School districts may make available upon request similar, appropriate, 
91.7 	and timely remedial assistance that includes a formal diagnostic component to those 
91.8 	persons employed by the district who completed their teacher education program, who did 
91.9 	not achieve a qualifying score on the skills examination, including those persons for whom 
91.10 	English is a second language and persons under section 122A.23, subdivision 2, paragraph 
91.11 	(h), who completed their teacher's education program outside the state of Minnesota, 
91.12 	and who received a temporary license to teach in Minnesota. The Board of Teaching 
91.13 	shall report annually to the education committees of the legislature on the total number 
91.14 	of teacher candidates during the most recent school year taking the skills examination, 
91.15 	the number who achieve a qualifying score on the examination, the number who do not 
91.16 	achieve a qualifying score on the examination, the distribution of all candidates' scores, 
91.17 	the number of candidates who have taken the examination at least once before, and the 
91.18 	number of candidates who have taken the examination at least once before and achieve 
91.19 	a qualifying score.
91.20 	(c) The Board of Teaching must grant continuing licenses only to those persons who 
91.21 	have met board criteria for granting a continuing license, which includes passing the 
91.22 	skills examination in reading, writing, and mathematics consistent with paragraph (b) and 
91.23 	section 122A.09, subdivision 4, paragraph (b).
91.24 	(d) All colleges and universities approved by the board of teaching to prepare 
91.25 	persons for teacher licensure must include in their teacher preparation programs a common 
91.26 	core of teaching knowledge and skills to be acquired by all persons recommended 
91.27 	for teacher licensure. This common core shall meet the standards developed by the 
91.28 	interstate new teacher assessment and support consortium in its 1992 "model standards for 
91.29 	beginning teacher licensing and development." Amendments to standards adopted under 
91.30 	this paragraph are covered by chapter 14. The board of teaching shall report annually to 
91.31 	the education committees of the legislature on the performance of teacher candidates 
91.32 	on common core assessments of knowledge and skills under this paragraph during the 
91.33 	most recent school year.

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

91.35 	Sec. 12. Minnesota Statutes 2012, section 122A.23, subdivision 2, is amended to read:
92.1 		Subd. 2.Applicants licensed in other states. (a) Subject to the requirements of 
92.2 	sections 122A.18, subdivision 8, and 123B.03, the Board of Teaching must issue a teaching 
92.3 	license or a temporary teaching license under paragraphs (b) to (e) to an applicant who holds 
92.4 	at least a baccalaureate degree from a regionally accredited college or university and holds 
92.5 	or held a similar out-of-state teaching license that requires the applicant to successfully 
92.6 	complete a teacher preparation program approved by the issuing state, which includes 
92.7 	field-specific teaching methods and student teaching or essentially equivalent experience.
92.8 	(b) The Board of Teaching must issue a teaching license to an applicant who:
92.9 	(1) successfully completed all exams and human relations preparation components 
92.10 	required by the Board of Teaching; and
92.11 	(2) holds or held an out-of-state teaching license to teach the same content field and 
92.12 	grade levels if the scope of the out-of-state license is no more than one grade level less 
92.13 	than a similar Minnesota license.
92.14 	(c) The Board of Teaching, consistent with board rules and paragraph (h), must 
92.15 	issue up to three one-year temporary teaching licenses to an applicant who holds or held 
92.16 	an out-of-state teaching license to teach the same content field and grade levels, where 
92.17 	the scope of the out-of-state license is no more than one grade level less than a similar 
92.18 	Minnesota license, but has not successfully completed all exams and human relations 
92.19 	preparation components required by the Board of Teaching.
92.20 	(d) The Board of Teaching, consistent with board rules, must issue up to three 
92.21 	one-year temporary teaching licenses to an applicant who:
92.22 	(1) successfully completed all exams and human relations preparation components 
92.23 	required by the Board of Teaching; and
92.24 	(2) holds or held an out-of-state teaching license to teach the same content field 
92.25 	and grade levels, where the scope of the out-of-state license is no more than one grade 
92.26 	level less than a similar Minnesota license, but has not completed field-specific teaching 
92.27 	methods or student teaching or equivalent experience.
92.28 	The applicant may complete field-specific teaching methods and student teaching 
92.29 	or equivalent experience by successfully participating in a one-year school district 
92.30 	mentorship program consistent with board-adopted standards of effective practice and 
92.31 	Minnesota graduation requirements.
92.32 	(e) The Board of Teaching must issue a temporary teaching license for a term of 
92.33 	up to three years only in the content field or grade levels specified in the out-of-state 
92.34 	license to an applicant who:
92.35 	(1) successfully completed all exams and human relations preparation components 
92.36 	required by the Board of Teaching; and
93.1 	(2) holds or held an out-of-state teaching license where the out-of-state license is 
93.2 	more limited in the content field or grade levels than a similar Minnesota license.
93.3 	(f) The Board of Teaching must not issue to an applicant more than three one-year 
93.4 	temporary teaching licenses under this subdivision.
93.5 	(g) The Board of Teaching must not issue a license under this subdivision if the 
93.6 	applicant has not attained the additional degrees, credentials, or licenses required in a 
93.7 	particular licensure field.
93.8 	(h) The Board of Teaching must require an applicant for a teaching license or 
93.9 	a temporary teaching license under this subdivision to pass a skills examination in 
93.10 	reading, writing, and mathematics before the board issues the license. Consistent with 
93.11 	section 122A.18, subdivision 2, paragraph (b), and notwithstanding other provisions of 
93.12 	this subdivision, the board may issue up to two additional temporary, one-year teaching 
93.13 	licenses to an otherwise qualified applicant who has not yet passed the skills exam.

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

93.15 	Sec. 13. Minnesota Statutes 2012, section 122A.28, subdivision 1, is amended to read:
93.16 		Subdivision 1.K-12 license to teach deaf and hard-of-hearing students; 
93.17 	relicensure. (a) The Board of Teaching must review and determine appropriate licensure 
93.18 	requirements for a candidate for a license or an applicant for a continuing license to teach 
93.19 	deaf and hard-of-hearing students in prekindergarten through grade 12. In addition to 
93.20 	other requirements, a candidate must demonstrate the minimum level of proficiency in 
93.21 	American sign language as determined by the board.
93.22 	(b) Among other relicensure requirements, each teacher under this section must 
93.23 	complete 30 continuing education clock hours on hearing loss topics, including American 
93.24 	Sign Language, American Sign Language linguistics, or deaf culture, in each licensure 
93.25 	renewal period.

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

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

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

94.5 	Sec. 15. Minnesota Statutes 2012, section 122A.40, subdivision 8, is amended to read:
94.6 		Subd. 8.Development, evaluation, and peer coaching for continuing contract 
94.7 	teachers. (a) To improve student learning and success, a school board and an exclusive 
94.8 	representative of the teachers in the district, consistent with paragraph (b), may develop 
94.9 	a teacher evaluation and peer review process for probationary and continuing contract 
94.10 	teachers through joint agreement. If a school board and the exclusive representative of the 
94.11 	teachers do not agree to an annual teacher evaluation and peer review process, then the 
94.12 	school board and the exclusive representative of the teachers must implement the plan 
94.13 	for evaluation and review under paragraph (c). The process must include having trained 
94.14 	observers serve as peer coaches or having teachers participate in professional learning 
94.15 	communities, consistent with paragraph (b).
94.16 	(b) To develop, improve, and support qualified teachers and effective teaching 
94.17 	practices and improve student learning and success, the annual evaluation process for 
94.18 	teachers:
94.19 	(1) must, for probationary teachers, provide for all evaluations required under 
94.20 	subdivision 5;
94.21 	(2) must establish a three-year professional review cycle for each teacher that 
94.22 	includes an individual growth and development plan, a peer review process, the 
94.23 	opportunity to participate in a professional learning community under paragraph (a), and 
94.24 	at least one summative evaluation performed by a qualified and trained evaluator such as a 
94.25 	school administrator. For the years when a tenured teacher is not evaluated by a qualified 
94.26 	and trained evaluator, the teacher must be evaluated by a peer review;
94.27 	(3) must be based on professional teaching standards established in rule;
94.28 	(4) must coordinate staff development activities under sections 122A.60 and 
94.29 	122A.61 with this evaluation process and teachers' evaluation outcomes;
94.30 	(5) may provide time during the school day and school year for peer coaching and 
94.31 	teacher collaboration;
94.32 	(6) may include mentoring and induction programs;
94.33 	(7) must include an option for teachers to develop and present a portfolio 
94.34 	demonstrating evidence of reflection and professional growth, consistent with section 
94.35 	122A.18, subdivision 4, paragraph (b), and include teachers' own performance assessment 
95.1 	based on student work samples and examples of teachers' work, which may include video 
95.2 	among other activities for the summative evaluation;
95.3 	(8) must use an agreed upon teacher value-added assessment model for the grade 
95.4 	levels and subject areas for which value-added data are available and establish state or local 
95.5 	measures of student growth for the grade levels and subject areas for which value-added 
95.6 	data are not available as a basis for 35 percent of teacher evaluation results must use data 
95.7 	from valid and reliable assessments aligned to state and local academic standards and must 
95.8 	use state and local measures of student growth that may include value-added models or 
95.9 	student learning goals to determine 35 percent of teacher evaluation results;
95.10 	(9) must use longitudinal data on student engagement and connection, and other 
95.11 	student outcome measures explicitly aligned with the elements of curriculum for which 
95.12 	teachers are responsible;
95.13 	(10) must require qualified and trained evaluators such as school administrators to 
95.14 	perform summative evaluations;
95.15 	(11) must give teachers not meeting professional teaching standards under clauses 
95.16 	(3) through (10) support to improve through a teacher improvement process that includes 
95.17 	established goals and timelines; and
95.18 	(12) must discipline a teacher for not making adequate progress in the teacher 
95.19 	improvement process under clause (11) that may include a last chance warning, 
95.20 	termination, discharge, nonrenewal, transfer to a different position, a leave of absence, or 
95.21 	other discipline a school administrator determines is appropriate.
95.22 	Data on individual teachers generated under this subdivision are personnel data 
95.23 	under section 13.43.
95.24 	(c) The department, in consultation with parents who may represent parent 
95.25 	organizations and teacher and administrator representatives appointed by their respective 
95.26 	organizations, representing the Board of Teaching, the Minnesota Association of School 
95.27 	Administrators, the Minnesota School Boards Association, the Minnesota Elementary 
95.28 	and Secondary Principals Associations, Education Minnesota, and representatives of 
95.29 	the Minnesota Assessment Group, the Minnesota Business Partnership, the Minnesota 
95.30 	Chamber of Commerce, and Minnesota postsecondary institutions with research expertise 
95.31 	in teacher evaluation, must create and publish a teacher evaluation process that complies 
95.32 	with the requirements in paragraph (b) and applies to all teachers under this section and 
95.33 	section 122A.41 for whom no agreement exists under paragraph (a) for an annual teacher 
95.34 	evaluation and peer review process. The teacher evaluation process created under this 
95.35 	subdivision does not create additional due process rights for probationary teachers under 
95.36 	subdivision 5.

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

96.2 	Sec. 16. Minnesota Statutes 2012, section 122A.41, subdivision 5, is amended to read:
96.3 		Subd. 5.Development, evaluation, and peer coaching for continuing contract 
96.4 	teachers. (a) To improve student learning and success, a school board and an exclusive 
96.5 	representative of the teachers in the district, consistent with paragraph (b), may develop an 
96.6 	annual teacher evaluation and peer review process for probationary and nonprobationary 
96.7 	teachers through joint agreement. If a school board and the exclusive representative of 
96.8 	the teachers in the district do not agree to an annual teacher evaluation and peer review 
96.9 	process, then the school board and the exclusive representative of the teachers must 
96.10 	implement the plan for evaluation and review developed under paragraph (c). The process 
96.11 	must include having trained observers serve as peer coaches or having teachers participate 
96.12 	in professional learning communities, consistent with paragraph (b).
96.13 	(b) To develop, improve, and support qualified teachers and effective teaching 
96.14 	practices and improve student learning and success, the annual evaluation process for 
96.15 	teachers:
96.16 	(1) must, for probationary teachers, provide for all evaluations required under 
96.17 	subdivision 2;
96.18 	(2) must establish a three-year professional review cycle for each teacher that 
96.19 	includes an individual growth and development plan, a peer review process, the 
96.20 	opportunity to participate in a professional learning community under paragraph (a), and 
96.21 	at least one summative evaluation performed by a qualified and trained evaluator such 
96.22 	as a school administrator;
96.23 	(3) must be based on professional teaching standards established in rule;
96.24 	(4) must coordinate staff development activities under sections 122A.60 and 
96.25 	122A.61 with this evaluation process and teachers' evaluation outcomes;
96.26 	(5) may provide time during the school day and school year for peer coaching and 
96.27 	teacher collaboration;
96.28 	(6) may include mentoring and induction programs;
96.29 	(7) must include an option for teachers to develop and present a portfolio 
96.30 	demonstrating evidence of reflection and professional growth, consistent with section 
96.31 	122A.18, subdivision 4, paragraph (b), and include teachers' own performance assessment 
96.32 	based on student work samples and examples of teachers' work, which may include video 
96.33 	among other activities for the summative evaluation;
96.34 	(8) must use an agreed upon teacher value-added assessment model for the grade 
96.35 	levels and subject areas for which value-added data are available and establish state or local 
97.1 	measures of student growth for the grade levels and subject areas for which value-added 
97.2 	data are not available as a basis for 35 percent of teacher evaluation results must use data 
97.3 	from valid and reliable assessments aligned to state and local academic standards and must 
97.4 	use state and local measures of student growth that may include value-added models or 
97.5 	student learning goals to determine 35 percent of teacher evaluation results;
97.6 	(9) must use longitudinal data on student engagement and connection and other 
97.7 	student outcome measures explicitly aligned with the elements of curriculum for which 
97.8 	teachers are responsible;
97.9 	(10) must require qualified and trained evaluators such as school administrators to 
97.10 	perform summative evaluations;
97.11 	(11) must give teachers not meeting professional teaching standards under clauses 
97.12 	(3) through (10) support to improve through a teacher improvement process that includes 
97.13 	established goals and timelines; and
97.14 	(12) must discipline a teacher for not making adequate progress in the teacher 
97.15 	improvement process under clause (11) that may include a last chance warning, 
97.16 	termination, discharge, nonrenewal, transfer to a different position, a leave of absence, or 
97.17 	other discipline a school administrator determines is appropriate.
97.18 	Data on individual teachers generated under this subdivision are personnel data 
97.19 	under section 13.43.
97.20 	(c) The department, in consultation with parents who may represent parent 
97.21 	organizations and teacher and administrator representatives appointed by their respective 
97.22 	organizations, representing the Board of Teaching, the Minnesota Association of School 
97.23 	Administrators, the Minnesota School Boards Association, the Minnesota Elementary 
97.24 	and Secondary Principals Associations, Education Minnesota, and representatives of 
97.25 	the Minnesota Assessment Group, the Minnesota Business Partnership, the Minnesota 
97.26 	Chamber of Commerce, and Minnesota postsecondary institutions with research expertise 
97.27 	in teacher evaluation, must create and publish a teacher evaluation process that complies 
97.28 	with the requirements in paragraph (b) and applies to all teachers under this section and 
97.29 	section 122A.40 for whom no agreement exists under paragraph (a) for an annual teacher 
97.30 	evaluation and peer review process. The teacher evaluation process created under this 
97.31 	subdivision does not create additional due process rights for probationary teachers under 
97.32 	subdivision 2.

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

97.34 	Sec. 17. Minnesota Statutes 2012, section 122A.415, is amended by adding a 
97.35 	subdivision to read:
98.1 		Subd. 4.Basic alternative teacher compensation aid. (a) For fiscal year 2015 
98.2 	and later, the basic alternative teacher compensation aid for a school with a plan approved 
98.3 	under section 122A.414, subdivision 2b, equals 65 percent of the alternative teacher 
98.4 	compensation revenue under subdivision 1. The basic alternative teacher compensation 
98.5 	aid for an intermediate school district or charter school with a plan approved under section 
98.6 	122A.414, subdivisions 2a and 2b, if the recipient is a charter school, equals $260 times 
98.7 	the number of pupils enrolled in the school on October 1 of the previous year, or on 
98.8 	October 1 of the current year for a charter school in the first year of operation, times 
98.9 	the ratio of the sum of the alternative teacher compensation aid and alternative teacher 
98.10 	compensation levy for all participating school districts to the maximum alternative teacher 
98.11 	compensation revenue for those districts under subdivision 1.
98.12 	(b) Notwithstanding paragraph (a) and subdivision 1, the state total basic alternative 
98.13 	teacher compensation aid entitlement must not exceed $75,636,000 for fiscal year 2015 
98.14 	and later. The commissioner must limit the amount of alternative teacher compensation 
98.15 	aid approved under this section so as not to exceed these limits.

98.16 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2015 and 
98.17 	later.

98.18 	Sec. 18. Minnesota Statutes 2012, section 122A.415, is amended by adding a 
98.19 	subdivision to read:
98.20 		Subd. 5.Alternative teacher compensation levy. For fiscal year 2015 and later, 
98.21 	the alternative teacher compensation levy for a district receiving basic alternative teacher 
98.22 	compensation aid equals the product of (1) the difference between the district's alternative 
98.23 	teacher compensation revenue and the district's basic alternative teacher compensation 
98.24 	aid, times (2) the lesser of one or the ratio of the district's adjusted net tax capacity per 
98.25 	adjusted pupil unit to $6,100.

98.26 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2015 and 
98.27 	later.

98.28 	Sec. 19. Minnesota Statutes 2012, section 122A.415, is amended by adding a 
98.29 	subdivision to read:
98.30 		Subd. 6.Alternative teacher compensation equalization aid. (a) For fiscal year 
98.31 	2015 and later, a district's alternative teacher compensation equalization aid equals the 
98.32 	district's alternative teacher compensation revenue minus the district's basic alternative 
98.33 	teacher compensation aid minus the district's alternative teacher compensation levy. If a 
99.1 	district does not levy the entire amount permitted, the alternative teacher compensation 
99.2 	equalization aid must be reduced in proportion to the actual amount levied.
99.3 	(b) A district's alternative teacher compensation aid equals the sum of the 
99.4 	district's basic alternative teacher compensation aid and the district's alternative teacher 
99.5 	compensation equalization aid.

99.6 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2015 and 
99.7 	later.

99.8 	Sec. 20. Minnesota Statutes 2012, section 122A.61, subdivision 1, is amended to read:
99.9 		Subdivision 1.Staff development revenue. A district is required to reserve 
99.10 	an amount equal to at least two percent of the basic revenue under section 126C.10, 
99.11 	subdivision 2, for in-service education for programs under section 120B.22, subdivision 2, 
99.12 	for staff development plans, including plans for challenging instructional activities and 
99.13 	experiences under section 122A.60, and for curriculum development and programs, other 
99.14 	in-service education, teachers' evaluation, teachers' workshops, teacher conferences, the 
99.15 	cost of substitute teachers staff development purposes, preservice and in-service education 
99.16 	for special education professionals and paraprofessionals, and other related costs for 
99.17 	staff development efforts. A district may annually waive the requirement to reserve their 
99.18 	basic revenue under this section if a majority vote of the licensed teachers in the district 
99.19 	and a majority vote of the school board agree to a resolution to waive the requirement. 
99.20 	A district in statutory operating debt is exempt from reserving basic revenue according 
99.21 	to this section. Districts may expend an additional amount of unreserved revenue for 
99.22 	staff development based on their needs.

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

99.24 	Sec. 21. Minnesota Statutes 2012, section 124D.03, subdivision 12, is amended to read:
99.25 		Subd. 12.Termination of enrollment. A district may terminate the enrollment 
99.26 	of a nonresident student enrolled under this section or section 124D.08 at the end of a 
99.27 	school year if the student meets the definition of a habitual truant under section 260C.007, 
99.28 	subdivision 19, the student has been provided appropriate services under chapter 260A, 
99.29 	and the student's case has been referred to juvenile court. A district may also terminate the 
99.30 	enrollment of a nonresident student over the age of 16 17 enrolled under this section if the 
99.31 	student is absent without lawful excuse for one or more periods on 15 school days and has 
99.32 	not lawfully withdrawn from school under section 120A.22, subdivision 8.

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

100.3 	Sec. 22. Minnesota Statutes 2012, section 124D.095, subdivision 10, is amended to 
100.4 	read:
100.5 		Subd. 10.Online and Digital Learning Advisory Council. (a) An Online and 
100.6 	Digital Learning Advisory Council is established. The term for each council member shall 
100.7 	be three years. The advisory council is composed of 1214 members from throughout the 
100.8 	state who have demonstrated experience with or interest in online learning. Two members 
100.9 	of the council must represent technology business. The remaining membership must 
100.10 	represent the following interests:
100.11 	(1) superintendents;
100.12 	(2) special education specialists;
100.13 	(3) technology directors;
100.14 	(4) teachers;
100.15 	(5) rural, urban, and suburban school districts;
100.16 	(6) supplemental programs;
100.17 	(7) full-time programs;
100.18 	(8) consortia;
100.19 	(9) charter schools; 
100.20 	(10) Board of Teaching-approved teacher preparation programs; and
100.21 	(11) parents.
100.22 	The members of the council shall be appointed by the commissioner. 
100.23 	(b) The advisory council shall bring to the attention of the commissioner and the 
100.24 	legislature any matters related to online and digital learning and. The advisory council 
100.25 	shall provide input to the department and the legislature in online learning matters related, 
100.26 	but not restricted, to:
100.27 	(1) quality assurance;
100.28 	(2) teacher qualifications;
100.29 	(3) program approval;
100.30 	(4) special education;
100.31 	(5) attendance;
100.32 	(6) program design and requirements; and
100.33 	(7) fair and equal access to programs.
100.34 	(b) By June 30, 2013, (c) The Online Learning advisory council with the support of 
100.35 	the Minnesota Department of Education and the Minnesota Learning Commons shall:
101.1 	(1) oversee the development and maintenance of a catalog of publicly available 
101.2 	digital learning content currently aligned to Minnesota academic standards to include:
101.3 	(i) indexing of Minnesota academic standards with which curriculum is aligned;
101.4 	(ii) a method for student and teacher users to provide evaluative feedback; and
101.5 	(iii) a plan for ongoing maintenance; and
101.6 	(2) recommend methods for including student performance data on the digital 
101.7 	learning content within the catalog.
101.8 	(d) The advisory council shall also consider and provide input to the department and 
101.9 	legislature on digital learning matters including, but not limited to:
101.10 	(1) a review and approval process to ensure the quality of online learning providers 
101.11 	based on teacher qualifications, support for special education services, definitions of 
101.12 	student attendance, program design, and equal access;
101.13 	(2) effective use of technology and related instructional strategies to improve student 
101.14 	outcomes and advance students' 21st century skills and knowledge;
101.15 	(3) measures to determine the impact of various forms of online and digital learning 
101.16 	in and outside of the classroom;
101.17 	(4) resources to help parents, students, and schools choose among enrollment 
101.18 	options in a transparent education system;
101.19 	(5) how to personalize or differentiate learning to meet the needs, abilities, and 
101.20 	learning styles of each student and support students' ownership of their learning so that all 
101.21 	students are digital learners and have access to high-quality digital curriculum in every 
101.22 	class and grade level;
101.23 	(6) professional development in best practices to prepare current and future teachers, 
101.24 	other education leaders, and other school staff  to use and evaluate the effectiveness of 
101.25 	digital tools and instructional strategies, provide personalized or differentiated instruction, 
101.26 	and focus on competency-based learning and advancement so that all educators have a 
101.27 	digital presence and use high-quality digital curriculum;
101.28 	(7) support for collaborative efforts to leverage resources for digital instructional 
101.29 	content and curriculum; and
101.30 	(8) barriers to improving the use of classroom technology and methods to ensure that 
101.31 	each student has access to a digital device and high-speed Internet at school and at home.
101.32 	(e) The advisory council shall make policy recommendations to the commissioner 
101.33 	and committees of the legislature having jurisdiction over kindergarten through grade 12 
101.34 	education annually by December 15 of each year, including implementation plans based 
101.35 	on recommendations from previous councils and task forces related to online and digital 
101.36 	learning.
102.1 	(c)(f) The Online and Digital Learning Advisory Council under this subdivision 
102.2 	expires June 30, 2013 2016.

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

102.4 	Sec. 23. Minnesota Statutes 2012, section 124D.122, is amended to read:
102.5 	124D.122 ESTABLISHMENT OF FLEXIBLE LEARNING YEAR PROGRAM.
102.6 	The board of any district or a consortium of districts, with the approval of the 
102.7 	commissioner, may establish and operate a flexible learning year program in one or more of 
102.8 	the day or residential facilities for children with a disability within the district. Consortiums 
102.9 	may use a single application and evaluation process, though results, public hearings, and 
102.10 	board approvals must be obtained for each district as required under appropriate sections.

102.11 	Sec. 24. Minnesota Statutes 2012, section 124D.42, is amended to read:
102.12 	124D.42 READING AND MATH CORPS.
102.13 		Subd. 6.Program training. The commission must, within available resources:
102.14 	(1) orient each grantee organization in the nature, philosophy, and purpose of the 
102.15 	program;
102.16 	(2) build an ethic of community service through general community service training; 
102.17 	and
102.18 	(3) provide guidance on integrating programmatic-based measurement into program 
102.19 	models.
102.20 		Subd. 8.Minnesota reading corps program. (a) A Minnesota reading corps 
102.21 	program is established to provide ServeMinnesota Innovation AmeriCorps members with 
102.22 	a data-based problem-solving model of literacy instruction to use in helping to train local 
102.23 	Head Start program providers, other prekindergarten program providers, and staff in 
102.24 	schools with students in kindergarten through grade 3 to evaluate and teach early literacy 
102.25 	skills, including comprehensive, scientifically based reading instruction under section 
102.26 	122A.06, subdivision 4, to children age 3 to grade 3.
102.27 	(b) Literacy programs under this subdivision must comply with the provisions 
102.28 	governing literacy program goals and data use under section 119A.50, subdivision 3, 
102.29 	paragraph (b).
102.30 	(c) The commission must submit a biennial report to the committees of the 
102.31 	legislature with jurisdiction over kindergarten through grade 12 education that records and 
102.32 	evaluates program data to determine the efficacy of the programs under this subdivision.
103.1 		Subd. 9.Minnesota math corps program. (a) A Minnesota math corps program is 
103.2 	established to give ServeMinnesota AmeriCorps members a data-based problem-solving 
103.3 	model of mathematics instruction useful for providing elementary and middle school 
103.4 	students and their teachers with instructional support to meet state academic standards in 
103.5 	mathematics.
103.6 	(b) The commission must submit a biennial report to the committees of the 
103.7 	legislature with jurisdiction over kindergarten through grade 12 education that records and 
103.8 	evaluates program data to determine the efficacy of the programs under this subdivision.

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

103.10 	Sec. 25. Minnesota Statutes 2012, section 124D.65, subdivision 5, is amended to read:
103.11 		Subd. 5.School district EL revenue. (a) A district's English learner programs 
103.12 	revenue equals the product of (1) $700 in fiscal year 2004 and later $704 times (2) the 
103.13 	greater of 20 or the adjusted marginal cost average daily membership of eligible English 
103.14 	learners enrolled in the district during the current fiscal year.
103.15 	(b) A pupil ceases to generate state English learner aid in the school year following 
103.16 	the school year in which the pupil attains the state cutoff score on a commissioner-provided 
103.17 	assessment that measures the pupil's emerging academic English.

103.18 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
103.19 	and later.

103.20 	Sec. 26. Minnesota Statutes 2012, section 124D.79, subdivision 1, is amended to read:
103.21 		Subdivision 1.Community involvement. The commissioner must provide for the 
103.22 	maximum involvement of the state committees on American Indian education, parents 
103.23 	of American Indian children, secondary students eligible to be served, American Indian 
103.24 	language and culture education teachers, American Indian teachers, teachers' aides, 
103.25 	representatives of community groups, and persons knowledgeable in the field of American 
103.26 	Indian education, in the formulation of policy and procedures relating to the administration 
103.27 	of sections 124D.71 to 124D.82. The commissioner must annually hold a field hearing on 
103.28 	Indian education to gather input from American Indian educators, parents, and students on 
103.29 	the state of American Indian education in Minnesota. Results of the hearing must be made 
103.30 	available to all 11 tribal nations for review and comment.

103.31 	Sec. 27. Minnesota Statutes 2012, section 124D.79, is amended by adding a 
103.32 	subdivision to read:
104.1 		Subd. 4.Consultation with the tribal nations education committee. (a) The 
104.2 	commissioner shall seek consultation with the Tribal Nations Education Committee on all 
104.3 	issues relating to American Indian education including:
104.4 	(1) administration of the commissioner's duties under sections 124D.71 to 124D.82 
104.5 	and other programs;
104.6 	(2) administration of other programs for the education of American Indian people, as 
104.7 	determined by the commissioner;
104.8 	(3) awarding of scholarships to eligible American Indian students;
104.9 	(4) administration of the commissioner's duties regarding awarding of American 
104.10 	Indian postsecondary preparation grants to school districts; and
104.11 	(5) recommendations of education policy changes for American Indians.
104.12 	(b) Membership in the Tribal Nations Education Committee is the sole discretion 
104.13 	of the committee and nothing in this subdivision gives the commissioner authority to 
104.14 	dictate committee membership.

104.15 	Sec. 28. [124D.791] INDIAN EDUCATION DIRECTOR.
104.16 		Subdivision 1.Appointment. An Indian education director shall be appointed by 
104.17 	the commissioner.
104.18 		Subd. 2.Qualifications. The commissioner shall select the Indian education 
104.19 	director on the basis of outstanding professional qualifications and knowledge of 
104.20 	American Indian education, culture, practices, and beliefs. The Indian education director 
104.21 	serves in the unclassified service. The commissioner may remove the Indian education 
104.22 	director for cause. The commissioner is encouraged to seek qualified applicants who 
104.23 	are enrolled members of a tribe.
104.24 		Subd. 3.Compensation. Compensation of the Indian education director shall be 
104.25 	established under chapter 15A.
104.26 		Subd. 4.Duties; powers. The Indian education director shall:
104.27 	(1) serve as the liaison for the department with the Tribal Nations Education 
104.28 	Committee, the 11 reservations, the Minnesota Chippewa tribe, the Minnesota Indian 
104.29 	Affairs Council, and the urban advisory council;
104.30 	(2) evaluate the state of American Indian education in Minnesota;
104.31 	(3) engage the tribal bodies, community groups, parents of children eligible to be 
104.32 	served by American Indian education programs, American Indian administrators and 
104.33 	teachers, persons experienced in the training of teachers for American Indian education 
104.34 	programs, the tribally controlled schools, and other persons knowledgeable in the field of 
105.1 	American Indian education and seek their advice on policies that can improve the quality 
105.2 	of American Indian education;
105.3 	(4) advise the commissioner on American Indian education issues, including:
105.4 	(i) issues facing American Indian students;
105.5 	(ii) policies for American Indian education;
105.6 	(iii) awarding scholarships to eligible American Indian students and in administering 
105.7 	the commissioner's duties regarding awarding of American Indian postsecondary 
105.8 	preparation grants to school districts; and
105.9 	(iv) administration of the commissioner's duties under sections 124D.71 to 124D.82 
105.10 	and other programs for the education of American Indian people;
105.11 	(5) propose to the commissioner legislative changes that will improve the quality 
105.12 	of American Indian education;
105.13 	(6) develop a strategic plan and a long-term framework for American Indian 
105.14 	education, in conjunction with the Minnesota Indian Affairs Council, that is updated every 
105.15 	five years and implemented by the commissioner, with goals to:
105.16 	(i) increase American Indian student achievement, including increased levels of 
105.17 	proficiency and growth on statewide accountability assessments;
105.18 	(ii) increase the number of American Indian teachers in public schools;
105.19 	(iii) close the achievement gap between American Indian students and their more 
105.20 	advantaged peers;
105.21 	(iv) increase the statewide graduation rate for American Indian students; and
105.22 	(v) increase American Indian student placement in postsecondary programs and 
105.23 	the workforce; and
105.24 	(7) keep the American Indian community informed about the work of the department 
105.25 	by reporting to the Tribal Nations Education Committee at each committee meeting.

105.26 	Sec. 29. [124D.861] ACHIEVEMENT AND INTEGRATION FOR MINNESOTA.
105.27 		Subdivision 1.Program to close the academic achievement and opportunity gap; 
105.28 	revenue uses. (a) The "Achievement and Integration for Minnesota" program is established 
105.29 	to pursue racial and economic integration and increase student academic achievement, 
105.30 	create equitable educational opportunities, and reduce academic disparities based on 
105.31 	students' diverse racial, ethnic, and economic backgrounds in Minnesota public schools. 
105.32 	(b) For purposes of this section and section 124D.862, "eligible district" means a 
105.33 	district required to submit a plan to the commissioner under Minnesota Rules governing 
105.34 	school desegregation and integration, or be a member of a multidistrict integration 
105.35 	collaborative that files a plan with the commissioner.
106.1 	(c) Eligible districts must use the revenue under section 124D.862 to pursue 
106.2 	academic achievement and racial and economic integration through: (1) integrated 
106.3 	learning environments that prepare all students to be effective citizens and enhance 
106.4 	social cohesion; (2) policies and curricula and trained instructors, administrators, school 
106.5 	counselors, and other advocates to support and enhance integrated learning environments 
106.6 	under this section, including through magnet schools, innovative, research-based 
106.7 	instruction, differentiated instruction, and targeted interventions to improve achievement; 
106.8 	and (3) rigorous, career and college readiness programs for underserved student 
106.9 	populations, consistent with section 120B.30, subdivision 1; integrated learning 
106.10 	environments to increase student academic achievement; cultural fluency, competency, 
106.11 	and interaction; graduation and educational attainment rates; and parent involvement.
106.12 		Subd. 2.Plan implementation; components. (a) The school board of each eligible 
106.13 	district must formally develop and implement a long-term plan under this section. The 
106.14 	plan must be incorporated into the district's comprehensive strategic plan under section 
106.15 	120B.11. Plan components may include: innovative and integrated prekindergarten 
106.16 	through grade 12 learning environments that offer students school enrollment choices; 
106.17 	family engagement initiatives that involve families in their students' academic life 
106.18 	and success; professional development opportunities for teachers and administrators 
106.19 	focused on improving the academic achievement of all students; increased programmatic 
106.20 	opportunities focused on rigor and college and career readiness for underserved students, 
106.21 	including students enrolled in alternative learning centers under section 123A.05, public 
106.22 	alternative programs under section 126C.05, subdivision 15, and contract alternative 
106.23 	programs under section 124D.69, among other underserved students; or recruitment and 
106.24 	retention of teachers and administrators with diverse racial and ethnic backgrounds. The 
106.25 	plan must contain goals for: (1) reducing the disparities in academic achievement among 
106.26 	all students and specific categories of students under section 120B.35, subdivision 3, 
106.27 	paragraph (b), excluding the student categories of gender, disability, and English learners; 
106.28 	and (2) increasing racial and economic integration in schools and districts.
106.29 	(b) Among other requirements, an eligible district must implement effective, 
106.30 	research-based interventions that include formative assessment practices to reduce the 
106.31 	disparities in student academic performance among the specific categories of students as 
106.32 	measured by student progress and growth on state reading and math assessments and 
106.33 	as aligned with section 120B.11.
106.34 	(c) Eligible districts must create efficiencies and eliminate duplicative programs 
106.35 	and services under this section, which may include forming collaborations or a single, 
106.36 	seven-county metropolitan areawide partnership of eligible districts for this purpose.
107.1 		Subd. 3.Public engagement; progress report and budget process. (a) To 
107.2 	receive revenue under section 124D.862, the school board of an eligible district must 
107.3 	incorporate school and district plan components under section 120B.11 into the district's 
107.4 	comprehensive integration plan.
107.5 	(b) A school board must hold at least one formal annual hearing to publicly report 
107.6 	its progress in realizing the goals identified in its plan.  At the hearing, the board must 
107.7 	provide the public with longitudinal data demonstrating district and school progress in 
107.8 	reducing the disparities in student academic performance among the specified categories 
107.9 	of students and in realizing racial and economic integration, consistent with the district 
107.10 	plan and the measures in paragraph (a).  At least 30 days before the formal hearing under 
107.11 	this paragraph, the board must post its plan, its preliminary analysis, relevant student 
107.12 	performance data, and other longitudinal data on the district Web site.  A district must hold 
107.13 	one hearing to meet the hearing requirements of both this section and section 120B.11
107.14 	(c) The district must submit a detailed budget to the commissioner by March 15 in 
107.15 	the year before it implements its plan. The commissioner must review, and approve or 
107.16 	disapprove the district's budget by June 1 of that year.
107.17 	(d) The longitudinal data required under paragraph (a) must be based on student 
107.18 	growth and progress in reading and mathematics, as defined under section 120B.30, 
107.19 	subdivision 1, and student performance data and achievement reports from fully adaptive 
107.20 	reading and mathematics assessments for grades 3 through 7 beginning in the 2015-2016 
107.21 	school year under section 120B.30, subdivision 1a, and either (i) school enrollment choices, 
107.22 	(ii) the number of world language proficiency or high achievement certificates awarded 
107.23 	under section 120B.022, subdivision 1, paragraphs (b) and (c), or (iii) school safety and 
107.24 	students' engagement and connection at school under section 120B.35, subdivision 3, 
107.25 	paragraph (d). Additional longitudinal data may be based on: students' progress toward 
107.26 	career and college readiness under section 120B.30, subdivision 1; or rigorous coursework 
107.27 	completed under section 120B.35, subdivision 3, paragraph (c), clause (2).
107.28 		Subd. 4.Timeline and implementation. A board must approve its plan and 
107.29 	submit it to the department by March 15. If a district that is part of a multidistrict council 
107.30 	applies for revenue for a plan, the individual district shall not receive revenue unless it 
107.31 	ratifies the plan adopted by the multidistrict council. Each plan has a term of three years. 
107.32 	For the 2014-15 school year, an eligible district under this section must submit its plan 
107.33 	to the commissioner for review by March 15, 2014.  For the 2013-14 school year only, 
107.34 	an eligible district may continue to implement its current plan until the commissioner 
107.35 	approves a new plan under this section.
108.1 		Subd. 5.Evaluation. The commissioner must evaluate the efficacy of district 
108.2 	plans in reducing the disparities in student academic performance among the specified 
108.3 	categories of students within the district, and in realizing racial and economic integration.  
108.4 	The commissioner shall report evaluation results to the kindergarten through grade 12 
108.5 	education committees of the legislature by February 1 of every odd-numbered year.

108.6 	Sec. 30. [124D.862] ACHIEVEMENT AND INTEGRATION REVENUE.
108.7 		Subdivision 1.Initial achievement and integration revenue. (a) An eligible 
108.8 	district's initial achievement and integration revenue equals the sum of (1) $350 times 
108.9 	the district's adjusted pupil units for that year times the ratio of the district's enrollment 
108.10 	of protected students for the previous school year to total enrollment for the previous 
108.11 	school year and (2) the greater of zero or 66 percent of the difference between the district's 
108.12 	integration revenue for fiscal year 2013 and the district's integration revenue for fiscal 
108.13 	year 2014 under clause (1).
108.14 	(b) In each year, 0.3 percent of each district's initial achievement and integration 
108.15 	revenue is transferred to the department for the oversight and accountability activities 
108.16 	required under this section and section 124D.861.
108.17 		Subd. 2.Incentive revenue. An eligible school district's maximum incentive 
108.18 	revenue equals $10 per adjusted pupil unit. In order to receive this revenue, a district must 
108.19 	be implementing a voluntary plan to reduce racial and economic enrollment disparities 
108.20 	through intradistrict and interdistrict activities that have been approved as a part of the 
108.21 	district's achievement and integration plan.
108.22 		Subd. 3.Achievement and integration revenue. Achievement and integration 
108.23 	revenue equals the sum of initial achievement and integration revenue and incentive 
108.24 	revenue.
108.25 		Subd. 4.Achievement and integration aid. For fiscal year 2015 and later, 
108.26 	a district's achievement and integration aid equals 70 percent of its achievement and 
108.27 	integration revenue.
108.28 		Subd. 5.Achievement and integration levy. A district's achievement and 
108.29 	integration levy equals its achievement and integration revenue times the levy percentage 
108.30 	specified in H.F. No. 677 or a similarly styled bill. For Special School District No. 1, 
108.31 	Minneapolis, Independent School District No. 625, St. Paul, and Independent School 
108.32 	District No. 709, Duluth, 100 percent of the levy certified under this subdivision is shifted 
108.33 	into the prior calendar year for purposes of sections 123B.75, subdivision 5, and 127A.441.
108.34 		Subd. 6.Revenue uses. (a) At least 80 percent of a district's achievement and 
108.35 	integration revenue received under this section must be used for innovative and integrated 
109.1 	learning environments, school enrollment choices, family engagement activities, and other 
109.2 	approved programs providing direct services to students.
109.3 	(b) Up to 20 percent of the revenue may be used for professional development and 
109.4 	staff development activities and placement services.
109.5 	(c) No more than ten percent of the total amount of revenue may be spent on 
109.6 	administrative services.
109.7 		Subd. 7.Revenue reserved. Integration revenue received under this section must 
109.8 	be reserved and used only for the programs authorized in subdivision 2.
109.9 		Subd. 8.Commissioner authority to withhold revenue. (a) The commissioner 
109.10 	must review the results of each district's integration and achievement plan by August 1 at 
109.11 	the end of the third year of implementing the plan and determine if the district met its goals.
109.12 	(b) If a district met its goals, it may submit a new three-year plan to the commissioner 
109.13 	for review.
109.14 	(c) If a district has not met its goals, the commissioner must:
109.15 	(1) develop a district improvement plan and timeline, in consultation with the 
109.16 	affected district, that identifies strategies and practices designed to meet the district's goals 
109.17 	under this section and section 120B.11; and
109.18 	(2) use up to 20 percent of the district's integration revenue, until the district's goals 
109.19 	are reached, to implement the improvement plan.

109.20 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 and 
109.21 	later. Subdivision 5 is effective for taxes payable in 2014 only.

109.22 	Sec. 31. Minnesota Statutes 2012, section 260C.007, subdivision 19, is amended to read:
109.23 		Subd. 19.Habitual truant. "Habitual truant" means a child under the age of 1617 
109.24 	years who is absent from attendance at school without lawful excuse for seven school days 
109.25 	per school year if the child is in elementary school or for one or more class periods on 
109.26 	seven school days per school year if the child is in middle school, junior high school, or 
109.27 	high school, or a child who is 16 or 17 years of age who is absent from attendance at school 
109.28 	without lawful excuse for one or more class periods on seven school days per school year
109.29 	 and who has not lawfully withdrawn from school under section 120A.22, subdivision 8.

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

109.32 	Sec. 32. ACHIEVEMENT AND INTEGRATION; RECOMMENDATIONS FOR 
109.33 	CONFORMING CHANGES.
 110.1 	The education commissioner shall review Minnesota Rules, parts 3535.0100 to 
110.2 	3535.0180, for consistency with Minnesota Statutes, sections 124D.861 and 124D.862, 
110.3 	and make recommendations to the education committees of the legislature by February 15, 
110.4 	2014, for revising the rules or amending applicable statutes.

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

110.6 	Sec. 33. TEACHER LICENSURE ADVISORY TASK FORCE.
 110.7 		Subdivision 1.Establishment and duties. (a) A Teacher Licensure Advisory Task 
110.8 	Force is established to make recommendations to the Board of Teaching, the education 
110.9 	commissioner, and the education committees of the legislature on requirements for: 
110.10 	teacher applicants to demonstrate mastery of reading, writing, and mathematics skills 
110.11 	through nationally normed assessments, a professional skills portfolio, or accredited 
110.12 	college coursework, among other methods of demonstrating skills mastery; and an 
110.13 	alternative licensure pathway for nonnative English speakers seeking licensure to teach in 
110.14 	a language immersion program.
110.15 	(b) Task force recommendations on how teacher candidates demonstrate skills 
110.16 	mastery must encompass the following criteria:
110.17 	(1) assessment content must be relevant to the teacher's subject area licensure;
110.18 	(2) the scope of assessment content must be documented in sufficient detail to 
110.19 	correspond to a similarly detailed description of relevant public school curriculum;
110.20 	(3) the scope of assessment content must be publicly available and readily accessible 
110.21 	on the Web site of the Board of Teaching and all Minnesota board-approved teacher 
110.22 	preparation programs and institutions;
110.23 	(4) the Board of Teaching and all Minnesota board-approved teacher preparation 
110.24 	programs and institutions, upon request, must make available to the public at cost a written 
110.25 	review of the scope of assessment content;
110.26 	(5) if applicable, and consistent with federal and state data practices laws including 
110.27 	the definition of summary data under Minnesota Statutes, section 13.02, subdivision 19, 
110.28 	the Board of Teaching and all Minnesota board-approved teacher preparation programs 
110.29 	and institutions annually must post on their Web site up-to-date longitudinal summary 
110.30 	data showing teacher candidates' overall passing rate and the passing rate for each 
110.31 	demographic group of teacher candidates taking a skills assessment in that school year and 
110.32 	in previous school years;
110.33 	(6) reliable evidence showing assessment content is not culturally biased;
110.34 	(7) the Board of Teaching and all Minnesota board-approved teacher preparation 
110.35 	programs and institutions must appropriately accommodate teacher candidates 
111.1 	with documented learning disabilities, including an appeals process if a request for 
111.2 	accommodations is denied; and
111.3 	(8) if applicable, give timely, detailed item analysis feedback to teacher candidates 
111.4 	who do not pass the skills assessment sufficient for the candidate to target specific areas 
111.5 	of deficiency for appropriate remediation.
111.6 		Subd. 2.Membership. The Teacher Licensure Advisory Task Force shall be 
111.7 	composed of the following 20 members appointed by July 15, 2013:
111.8 	(1) two members of the Board of Teaching appointed by the board's chair;
111.9 	(2) two representatives from the Department of Education appointed by the 
111.10 	commissioner of education;
111.11 	(3) two members of the house of representatives, one appointed by the speaker of the 
111.12 	house of representatives, and one appointed by the minority leader;
111.13 	(4) two senators, one appointed by the Subcommittee on Committees of the 
111.14 	Committee on Rules and Administration, and one appointed by the minority leader;
111.15 	(5) one elementary school principal from rural Minnesota appointed by the 
111.16 	Minnesota Elementary School Principals Association and one secondary school principal 
111.17 	from the seven-county metropolitan area appointed by the Minnesota Secondary School 
111.18 	Principals Association;
111.19 	(6) one licensed and practicing public elementary school teacher and one licensed 
111.20 	and practicing secondary school teacher appointed by Education Minnesota;
111.21 	(7) one teacher preparation faculty member each from the University of Minnesota 
111.22 	system appointed by the system president, the Minnesota State Colleges and Universities 
111.23 	system appointed by the system chancellor, and the Minnesota Private Colleges and 
111.24 	Universities system appointed by the Minnesota Private Colleges Council;
111.25 	(8) one member of the nonpublic education council appointed by the council; 
111.26 	(9) one representative of Minnesota charter schools appointed by the Minnesota 
111.27 	Charter Schools Association; 
111.28 	(10) two representatives from the business community, appointed by the Minnesota 
111.29 	Chamber of Commerce; and
111.30 	(11) one representative from the Minnesota School Boards Association.
111.31 		Subd. 3.First meeting; chair. The executive director of the Board of Teaching and 
111.32 	the commissioner of education jointly must convene the task force by August 1, 2013, and 
111.33 	shall appoint a chair from the membership of the task force.
111.34 		Subd. 4.Report. By February 1, 2014, task force members must submit to the 
111.35 	Board of Teaching, the education commissioner, and to the chairs and ranking minority 
111.36 	members of the senate and house of representatives committees and divisions with 
112.1 	primary jurisdiction over K-12 education their written recommendations on requirements 
112.2 	for teacher applicants to demonstrate mastery of reading, writing, and mathematics skills 
112.3 	and for an alternative licensure pathway for nonnative English speakers seeking licensure 
112.4 	to teach in a language immersion program.
112.5 		Subd. 5.Sunset. The task force shall sunset the day after submitting the report 
112.6 	under subdivision 6, or February 2, 2014, whichever is earlier.
112.7 		Subd. 6.Support. The executive director of the board and the commissioner of 
112.8 	education must provide technical assistance to task force members upon request.
112.9 		Subd. 7.Board of Teaching rules. The Board of Teaching must consider the 
112.10 	recommendations of the advisory task force and adopt revised rules by January 1, 2015, 
112.11 	governing the skills portion of the teacher licensure exam.

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

112.13 	Sec. 34. STUDENT SUPPORT SERVICES; TEAM STAFFING APPROACH.
 112.14 	The commissioner of education shall develop and submit to the kindergarten 
112.15 	through grade 12 education policy and finance committees of the legislature by February 
112.16 	1, 2014, recommendations for providing access to licensed student support services, 
112.17 	including licensed school counselors, licensed school psychologists, licensed school 
112.18 	nurses, licensed school social workers, and licensed chemical health counselors, to public 
112.19 	school students throughout Minnesota using a multidisciplinary team staffing structure. 
112.20 	The recommendations must reflect:
112.21 	(1) the extent to which students need academic, career, physical, emotional, social, 
112.22 	and early-onset mental health services to ensure educational achievement, safety and 
112.23 	enhancement of student's physical, emotional, and social well-being;
112.24 	(2) the extent to which such services or teams do not exist, are incomplete or 
112.25 	inadequate given the number of students with unmet psychological, social, and health 
112.26 	needs that interfere with learning;
112.27 	(3) existing funding streams and opportunities for additional funds to improve 
112.28 	students' access to needed licensed student support services; and
112.29 	(4) caseloads and best practices when working to improve access to needed licensed 
112.30 	student support services.

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

112.32 	Sec. 35. FISCAL YEAR 2014 ACHIEVEMENT AND INTEGRATION AID 
112.33 	AND LEVY.
 113.1 		Subdivision 1.Achievement and integration aid. A district's achievement and 
113.2 	integration aid for fiscal year 2014 equals the difference between the district's achievement 
113.3 	and integration revenue and its achievement and integration levy for fiscal year 2014.
113.4 		Subd. 2.Achievement and integration levy.  For fiscal year 2014 only, a district's 
113.5 	achievement and integration levy equals the amount the district was authorized to levy 
113.6 	under Laws 2011, First Special Session chapter 11, article 2, section 49, paragraph (f).

113.7 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 
113.8 	and later.

113.9 	Sec. 36. SUCCESS FOR THE FUTURE GRANT APPLICATIONS.
 113.10 	A school district may receive a success for the future grant in the 2012-2013 school 
113.11 	year if the school district's grant application was postmarked on or before the Department 
113.12 	of Education's deadline date for application.

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

113.14 	Sec. 37. APPROPRIATIONS.
 113.15 		Subdivision 1.Department. The sums indicated in this section are appropriated 
113.16 	from the general fund to the Department of Education for the fiscal years designated.
113.17 		Subd. 2.Integration aid. For integration aid under Minnesota Statutes, section 
113.18 	124D.86:

113.19		$
	17,197,000
	.....
	2014
	
113.20		$
	0
	.....
	2015
	
113.21 	The 2014 appropriation includes $17,197,000 for 2013 and $0 for 2014.
113.22 	The 2015 appropriation includes $0 for 2014 and $0 for 2015.
113.23 		Subd. 3.Achievement and integration aid. For achievement and integration aid 
113.24 	under Minnesota Statutes, section 124D.862:

113.25		$
	58,911,000
	.....
	2014
	
113.26		$
	68,623,000
	.....
	2015
	
113.27 	The 2014 appropriation includes $0 for 2013 and $58,911,000 for 2014.
113.28 	The 2015 appropriation includes $9,273,000 for 2014 and $59,350,000 for 2015.
113.29 		Subd. 4.Literacy incentive aid. For literacy incentive aid under Minnesota 
113.30 	Statutes, section 124D.98:

114.1		$
	52,514,000
	.....
	2014
	
114.2		$
	53,818,000
	.....
	2015
	
114.3 	The 2014 appropriation includes $6,607,000 for 2013 and $45,907,000 for 2014.
114.4 	The 2015 appropriation includes $7,225,000 for 2014 and $46,593,000 for 2015.
114.5 		Subd. 5.Interdistrict desegregation or integration transportation grants. For 
114.6 	interdistrict desegregation or integration transportation grants under Minnesota Statutes, 
114.7 	section 124D.87:

114.8		$
	13,968,000
	.....
	2014
	
114.9		$
	14,712,000
	.....
	2015
	
114.10 		Subd. 6.Success for the future. For American Indian success for the future grants 
114.11 	under Minnesota Statutes, section 124D.81:

114.12		$
	2,137,000
	.....
	2014
	
114.13		$
	2,137,000
	.....
	2015
	
114.14 	The 2014 appropriation includes $290,000 for 2013 and $1,847,000 for 2014.
114.15 	The 2015 appropriation includes $290,000 for 2014 and $1,847,000 for 2015.
114.16 		Subd. 7.American Indian teacher preparation grants. For joint grants to assist 
114.17 	American Indian people to become teachers under Minnesota Statutes, section 122A.63:

114.18		$
	190,000
	.....
	2014
	
114.19		$
	190,000
	.....
	2015
	
114.20 		Subd. 8.Tribal contract schools. For tribal contract school aid under Minnesota 
114.21 	Statutes, section 124D.83:

114.22		$
	2,080,000
	.....
	2014
	
114.23		$
	2,230,000
	.....
	2015
	
114.24 	The 2014 appropriation includes $266,000 for 2013 and $1,814,000 for 2014.
114.25 	The 2015 appropriation includes $285,000 for 2014 and $1,945,000 for 2015.
114.26 		Subd. 9.Early childhood programs at tribal schools. For early childhood family 
114.27 	education programs at tribal contract schools under Minnesota Statutes, section 124D.83, 
114.28 	subdivision 4:

114.29		$
	68,000
	.....
	2014
	
114.30		$
	68,000
	.....
	2015
	
114.31 		Subd. 10.Examination fees; teacher training and support programs. (a) For 
114.32 	students' advanced placement and international baccalaureate examination fees under 
115.1 	Minnesota Statutes, section 120B.13, subdivision 3, and the training and related costs 
115.2 	for teachers and other interested educators under Minnesota Statutes, section 120B.13, 
115.3 	subdivision 1:

115.4		$
	4,500,000
	.....
	2014
	
115.5		$
	4,500,000
	.....
	2015
	
115.6 	(b) The advanced placement program shall receive 75 percent of the appropriation 
115.7 	each year and the international baccalaureate program shall receive 25 percent of the 
115.8 	appropriation each year. The department, in consultation with representatives of the 
115.9 	advanced placement and international baccalaureate programs selected by the Advanced 
115.10 	Placement Advisory Council and the Minnesota Association of IB World Schools, 
115.11 	respectively, shall determine the amounts of the expenditures each year for examination 
115.12 	fees and training and support programs for each program.
115.13 	(c) Notwithstanding Minnesota Statutes, section 120B.13, subdivision 1, at least 
115.14 	$500,000 each year is for teachers to attend subject matter summer training programs 
115.15 	and follow-up support workshops approved by the advanced placement or international 
115.16 	baccalaureate programs. The amount of the subsidy for each teacher attending an 
115.17 	advanced placement or international baccalaureate summer training program or workshop 
115.18 	shall be the same. The commissioner shall determine the payment process and the amount 
115.19 	of the subsidy.
115.20 	(d) The commissioner shall pay all examination fees for all students of low-income 
115.21 	families under Minnesota Statutes, section 120B.13, subdivision 3, and to the extent 
115.22 	of available appropriations shall also pay examination fees for students sitting for an 
115.23 	advanced placement examination, international baccalaureate examination, or both.
115.24 	Any balance in the first year does not cancel but is available in the second year.
115.25 		Subd. 11.Concurrent enrollment program. For concurrent enrollment programs 
115.26 	under Minnesota Statutes, section 124D.091:

115.27		$
	2,000,000
	.....
	2014
	
115.28		$
	2,000,000
	.....
	2015
	
115.29 	If the appropriation is insufficient, the commissioner must proportionately reduce 
115.30 	the aid payment to each district.
115.31 	Any balance in the first year does not cancel but is available in the second year.
115.32 		Subd. 12.Collaborative urban educator. For the collaborative urban educator 
115.33 	grant program:

115.34		$
	782,000
	.....
	2014
	
115.35		$
	782,000
	.....
	2015
	
116.1 	$195,000 each year is for the Southeast Asian teacher program at Concordia 
116.2 	University, St. Paul; $195,000 each year is for the collaborative educator program at the 
116.3 	University of St. Thomas; $195,000 each year is for the Center for Excellence in Urban 
116.4 	Teaching at Hamline University; and $195,000 each year is for East African teacher 
116.5 	educator activities at Augsburg College.
116.6 	Any balance in the first year does not cancel but is available in the second year.
116.7 	Each institution shall prepare for the legislature, by January 15 of each year, a 
116.8 	detailed report regarding the funds used. The report must include the number of teachers 
116.9 	prepared as well as the diversity for each cohort of teachers produced.
116.10 		Subd. 13.ServeMinnesota program. For funding ServeMinnesota programs under 
116.11 	Minnesota Statutes, sections 124D.37 to 124D.45:

116.12		$
	900,000
	.....
	2014
	
116.13		$
	900,000
	.....
	2015
	
116.14 	A grantee organization may provide health and child care coverage to the dependents 
116.15 	of each participant enrolled in a full-time ServeMinnesota program to the extent such 
116.16 	coverage is not otherwise available.
116.17 		Subd. 14.Student organizations. For student organizations:

116.18		$
	725,000
	.....
	2014
	
116.19		$
	725,000
	.....
	2015
	
116.20 	$46,000 each year is for student organizations serving health occupations (HOSA).
116.21 	$43,000 each year is for student organizations serving service occupations (HERO).
116.22 	$100,000 each year is for student organizations serving trade and industry 
116.23 	occupations (Skills USA, secondary and postsecondary).
116.24 	$95,000 each year is for student organizations serving business occupations (BPA, 
116.25 	secondary and postsecondary).
116.26 	$150,000 each year is for student organizations serving agriculture occupations 
116.27 	(FFA, PAS).
116.28 	$142,000 each year is for student organizations serving family and consumer science 
116.29 	occupations (FCCLA).
116.30 	$109,000 each year is for student organizations serving marketing occupations 
116.31 	(DECA and DECA collegiate).
116.32 	$40,000 each year is for the Minnesota Foundation for Student Organizations.
116.33 	Any balance in the first year does not cancel but is available in the second year.
117.1 		Subd. 15.Early childhood literacy programs. For early childhood literacy 
117.2 	programs under Minnesota Statutes, section 119A.50, subdivision 3:

117.3		$
	4,125,000
	.....
	2014
	
117.4		$
	4,125,000
	.....
	2015
	
117.5 	Up to $4,125,000 each year is for leveraging federal and private funding to support 
117.6 	AmeriCorps members serving in the Minnesota Reading Corps program established by 
117.7 	ServeMinnesota, including costs associated with the training and teaching of early literacy 
117.8 	skills to children age three to grade 3 and the evaluation of the impact of the program 
117.9 	under Minnesota Statutes, sections 124D.38, subdivision 2, and 124D.42, subdivision 6.
117.10 	Any balance in the first year does not cancel but is available in the second year.
117.11 		Subd. 16.Minnesota math corps program. For the Minnesota math corps program 
117.12 	under Minnesota Statutes, section 124D.42, subdivision 9:

117.13		$
	250,000
	.....
	2014
	
117.14		$
	250,000
	.....
	2015
	
117.15 	Any unexpended balance in the first year does not cancel but is available in the 
117.16 	second year.
117.17 		Subd. 17.Regional centers of excellence. For regional centers of excellence under 
117.18 	Minnesota Statutes, section 120B.115, subdivision 4:

117.19		$
	1,000,000
	.....
	2014
	
117.20		$
	1,000,000
	.....
	2015
	
117.21 	The base for the regional centers of excellence in fiscal years 2016 and 2017 is 
117.22 	$1,000,000 each year.
117.23 		Subd. 18.School Climate Center. For the School Climate Center:

117.24		$
	500,000
	.....
	2014
	
117.25		$
	500,000
	.....
	2015
	
117.26 		Subd. 19.Site decision-making grant program. For site decision-making grants 
117.27 	under Minnesota Statutes, section 123B.04, subdivision 2, paragraph (f):

117.28		$
	200,000
	.....
	2014
	
117.29 	An education site having a written achievement contract under Minnesota Statutes, 
117.30 	section 123B.04, subdivision 4, agreed to by the school board and the education site, 
117.31 	may apply to the commissioner of education for a two-year grant not to exceed $10 per 
117.32 	resident pupil unit at the site in the 2012-2013 school year. Each participating education 
117.33 	site and its school board that are the parties to the achievement contract must report 
118.1 	annually to the commissioner, in the form and manner determined by the commissioner, 
118.2 	on the progress and success of the education site in achieving student or contract goals 
118.3 	or other performance expectations or measures contained in the achievement contract. 
118.4 	The commissioner must include the substance and an analysis of these reports in the 
118.5 	next statewide report under Minnesota Statutes, section 123B.04, subdivision 5, clause 
118.6 	(3), evaluating the effectiveness of site management agreements in redesigning learning 
118.7 	programs and broadening the definition of student achievement. Any unexpended funds 
118.8 	do not cancel but are available in fiscal year 2015.
118.9 		Subd. 20.Alternative compensation. For alternative teacher compensation aid 
118.10 	under Minnesota Statutes, section 122A.415, subdivision 4:

118.11		$
	60,340,000
	.....
	2015
	
118.12 	The 2015 appropriation includes $0 for 2014 and $59,711,000 for 2015.
118.13 		Subd. 21.Teacher development and evaluation pilot grant program. For 
118.14 	grants to school districts to participate in the teacher development and evaluation pilot 
118.15 	grant program:

118.16		$
	683,000
	.....
	2014
	
118.17 	This is a onetime appropriation.
118.18 		Subd. 22.Starbase MN. For a grant to Starbase MN for rigorous science, 
118.19 	technology, engineering, and math (STEM) program providing students in grades 4 to 
118.20 	6 with a multisensory learning experience and a hands-on curriculum in an aerospace 
118.21 	environment using state-of-the-art technology:

118.22		$
	500,000
	.....
	2014
	
118.23		$
	500,000
	.....
	2015
	
118.24 	Any balance in the first year does not cancel and is available in the second year.
118.25 		Subd. 23.Civic education grants. For grants to the Minnesota Civic Education 
118.26 	Coalition: Kids Voting St. Paul, Learning Law and Democracy Foundation, and YMCA 
118.27 	Youth in Government to provide civic education programs for Minnesota youth age 18 
118.28 	and under. Civic education is the study of constitutional principles and the democratic 
118.29 	foundation of our national, state, and local institutions and the study of political processes 
118.30 	and structures of government, grounded in the understanding of constitutional government 
118.31 	under the rule of law.

118.32		$
	125,000
	.....
	2014
	
118.33		$
	125,000
	.....
	2015
	
119.1 	Any balance in the first year does not cancel and is available in the second year.

119.2 	ARTICLE 4
119.3 	CHARTER SCHOOLS

119.4 	Section 1. Minnesota Statutes 2012, section 124D.10, is amended to read:
119.5 	124D.10 CHARTER SCHOOLS.
119.6 		Subdivision 1.Purposes. (a) The primary purpose of this section is to:
119.7 	(1) improve pupil learning and student achievement;. Additional purposes include to:
119.8 	(2) (1) increase learning opportunities for pupils;
119.9 	(3) (2) encourage the use of different and innovative teaching methods;
119.10 	(4) (3) measure learning outcomes and create different and innovative forms of 
119.11 	measuring outcomes;
119.12 	(5) (4) establish new forms of accountability for schools; and or
119.13 	(6) (5) create new professional opportunities for teachers, including the opportunity 
119.14 	to be responsible for the learning program at the school site.
119.15 	(b) This section does not provide a means to keep open a school that a school board 
119.16 	decides to close. However, a school board may endorse or authorize the establishing of 
119.17 	a charter school to replace the school the board decided to close. Applicants seeking a 
119.18 	charter under this circumstance must demonstrate to the authorizer that the charter sought 
119.19 	is substantially different in purpose and program from the school the board closed and 
119.20 	that the proposed charter satisfies the requirements of this subdivision. If the school 
119.21 	board that closed the school authorizes the charter, it must document in its affidavit to the 
119.22 	commissioner that the charter is substantially different in program and purpose from 
119.23 	the school it closed.
119.24 	An authorizer shall not approve an application submitted by a charter school 
119.25 	developer under subdivision 4, paragraph (a), if the application does not comply with this 
119.26 	subdivision. The commissioner shall not approve an affidavit submitted by an authorizer 
119.27 	under subdivision 4, paragraph (b), if the affidavit does not comply with this subdivision.
119.28 		Subd. 2.Applicability. This section applies only to charter schools formed and 
119.29 	operated under this section.
119.30 		Subd. 3.Authorizer. (a) For purposes of this section, the terms defined in this 
119.31 	subdivision have the meanings given them.
119.32 	"Application" to receive approval as an authorizer means the proposal an eligible 
119.33 	authorizer submits to the commissioner under paragraph (c) before that authorizer is able 
119.34 	to submit any affidavit to charter to a school.
120.1 	"Application" under subdivision 4 means the charter school business plan a 
120.2 	school developer submits to an authorizer for approval to establish a charter school that 
120.3 	documents the school developer's mission statement, school purposes, program design, 
120.4 	financial plan, governance and management structure, and background and experience, 
120.5 	plus any other information the authorizer requests. The application also shall include a 
120.6 	"statement of assurances" of legal compliance prescribed by the commissioner.
120.7 	"Affidavit" means a written statement the authorizer submits to the commissioner 
120.8 	for approval to establish a charter school under subdivision 4 attesting to its review and 
120.9 	approval process before chartering a school.
120.10 	(b) The following organizations may authorize one or more charter schools:
120.11 	(1) a school board, intermediate school district school board, or education district 
120.12 	organized under sections 123A.15 to 123A.19;
120.13 	(2) a charitable organization under section 501(c)(3) of the Internal Revenue Code 
120.14 	of 1986, excluding a nonpublic sectarian or religious institution; any person other than a 
120.15 	natural person that directly or indirectly, through one or more intermediaries, controls, 
120.16 	is controlled by, or is under common control with the nonpublic sectarian or religious 
120.17 	institution; and any other charitable organization under this clause that in the federal IRS 
120.18 	Form 1023, Part IV, describes activities indicating a religious purpose, that:
120.19 	(i) is a member of the Minnesota Council of Nonprofits or the Minnesota Council on 
120.20 	Foundations;
120.21 	(ii) is registered with the attorney general's office; and
120.22 	(iii) is incorporated in the state of Minnesota and has been operating continuously 
120.23 	for at least five years but does not operate a charter school;
120.24 	(3) a Minnesota private college, notwithstanding clause (2), that grants two- or 
120.25 	four-year degrees and is registered with the Minnesota Office of Higher Education under 
120.26 	chapter 136A; community college, state university, or technical college governed by the 
120.27 	Board of Trustees of the Minnesota State Colleges and Universities; or the University 
120.28 	of Minnesota;
120.29 	(4) a nonprofit corporation subject to chapter 317A, described in section 317A.905, 
120.30 	and exempt from federal income tax under section 501(c)(6) of the Internal Revenue Code 
120.31 	of 1986, may authorize one or more charter schools if the charter school has operated 
120.32 	for at least three years under a different authorizer and if the nonprofit corporation has 
120.33 	existed for at least 25 years; or
120.34 	(5) single-purpose authorizers that are charitable, nonsectarian organizations formed 
120.35 	under section 501(c)(3) of the Internal Revenue Code of 1986 and incorporated in the 
120.36 	state of Minnesota under chapter 317A as a corporation with no members whose sole 
121.1 	purpose is to charter schools. Eligible organizations interested in being approved as an 
121.2 	authorizer under this paragraph must submit a proposal to the commissioner that includes 
121.3 	the provisions of paragraph (c) and a five-year financial plan. Such authorizers shall 
121.4 	consider and approve charter school applications using the criteria provided in subdivision 
121.5 	4 and shall not limit the applications it solicits, considers, or approves to any single 
121.6 	curriculum, learning program, or method.
121.7 	(c) An eligible authorizer under this subdivision must apply to the commissioner for 
121.8 	approval as an authorizer before submitting any affidavit to the commissioner to charter 
121.9 	a school. The application for approval as a charter school authorizer must demonstrate 
121.10 	the applicant's ability to implement the procedures and satisfy the criteria for chartering a 
121.11 	school under this section. The commissioner must approve or disapprove an application 
121.12 	within 45 business days of the application deadline. If the commissioner disapproves 
121.13 	the application, the commissioner must notify the applicant of the specific deficiencies 
121.14 	in writing and the applicant then has 20 business days to address the deficiencies to the 
121.15 	commissioner's satisfaction. After the 20 business days expire, the commissioner has 15 
121.16 	business days to make a final decision to approve or disapprove the application. Failing to 
121.17 	address the deficiencies to the commissioner's satisfaction makes an applicant ineligible to 
121.18 	be an authorizer. The commissioner, in establishing criteria for approval, must consider 
121.19 	the applicant's:
121.20 	(1) capacity and infrastructure;
121.21 	(2) application criteria and process;
121.22 	(3) contracting process;
121.23 	(4) ongoing oversight and evaluation processes; and
121.24 	(5) renewal criteria and processes.
121.25 	(d) An applicant must include in its application to the commissioner to be an 
121.26 	approved authorizer at least the following:
121.27 	(1) how chartering schools is a way for the organization to carry out its mission;
121.28 	(2) a description of the capacity of the organization to serve as an authorizer, 
121.29 	including the personnel who will perform the authorizing duties, their qualifications, the 
121.30 	amount of time they will be assigned to this responsibility, and the financial resources 
121.31 	allocated by the organization to this responsibility;
121.32 	(3) a description of the application and review process the authorizer will use to 
121.33 	make decisions regarding the granting of charters;
121.34 	(4) a description of the type of contract it will arrange with the schools it charters 
121.35 	that meets the provisions of subdivision 6;
122.1 	(5) the process to be used for providing ongoing oversight of the school consistent 
122.2 	with the contract expectations specified in clause (4) that assures that the schools chartered 
122.3 	are complying with both the provisions of applicable law and rules, and with the contract;
122.4 	(6) a description of the criteria and process the authorizer will use to grant expanded 
122.5 	applications under subdivision 4, paragraph (j);
122.6 	(7) the process for making decisions regarding the renewal or termination of 
122.7 	the school's charter based on evidence that demonstrates the academic, organizational, 
122.8 	and financial competency of the school, including its success in increasing student 
122.9 	achievement and meeting the goals of the charter school agreement; and
122.10 	(8) an assurance specifying that the organization is committed to serving as an 
122.11 	authorizer for the full five-year term.
122.12 	(e) A disapproved applicant under this section may resubmit an application during a 
122.13 	future application period.
122.14 	(f) If the governing board of an approved authorizer votes to withdraw as an 
122.15 	approved authorizer for a reason unrelated to any cause under subdivision 23, the 
122.16 	authorizer must notify all its chartered schools and the commissioner in writing by July 
122.17 	15 of its intent to withdraw as an authorizer on June 30 in the next calendar year. The 
122.18 	commissioner may approve the transfer of a charter school to a new authorizer under this 
122.19 	paragraph after the new authorizer submits an affidavit to the commissioner.
122.20 	(g) The authorizer must participate in department-approved training.
122.21 	(h) An authorizer that chartered a school before August 1, 2009, must apply by 
122.22 	June 30, 2012, to the commissioner for approval, under paragraph (c), to continue as an 
122.23 	authorizer under this section. For purposes of this paragraph, an authorizer that fails to 
122.24 	submit a timely application is ineligible to charter a school.
122.25 	(i) (h) The commissioner shall review an authorizer's performance every five years 
122.26 	in a manner and form determined by the commissioner and may review an authorizer's 
122.27 	performance more frequently at the commissioner's own initiative or at the request of a 
122.28 	charter school operator, charter school board member, or other interested party. The 
122.29 	commissioner, after completing the review, shall transmit a report with findings to the 
122.30 	authorizer. If, consistent with this section, the commissioner finds that an authorizer has 
122.31 	not fulfilled the requirements of this section, the commissioner may subject the authorizer 
122.32 	to corrective action, which may include terminating the contract with the charter school 
122.33 	board of directors of a school it chartered. The commissioner must notify the authorizer 
122.34 	in writing of any findings that may subject the authorizer to corrective action and 
122.35 	the authorizer then has 15 business days to request an informal hearing before the 
122.36 	commissioner takes corrective action. If the commissioner terminates a contract between 
123.1 	an authorizer and a charter school under this paragraph, the commissioner may assist the 
123.2 	charter school in acquiring a new authorizer.
123.3 	(j) (i) The commissioner may at any time take corrective action against an authorizer, 
123.4 	including terminating an authorizer's ability to charter a school for:
123.5 	(1) failing to demonstrate the criteria under paragraph (c) under which the 
123.6 	commissioner approved the authorizer;
123.7 	(2) violating a term of the chartering contract between the authorizer and the charter 
123.8 	school board of directors;
123.9 	(3) unsatisfactory performance as an approved authorizer; or
123.10 	(4) any good cause shown that provides the commissioner a legally sufficient reason 
123.11 	to take corrective action against an authorizer.
123.12 		Subd. 4.Formation of school. (a) An authorizer, after receiving an application from 
123.13 	a school developer, may charter a licensed teacher under section 122A.18, subdivision 
123.14 	1, or a group of individuals that includes one or more licensed teachers under section 
123.15 	122A.18, subdivision 1, to operate a school subject to the commissioner's approval of the 
123.16 	authorizer's affidavit under paragraph (b). The school must be organized and operated as a 
123.17 	nonprofit corporation under chapter 317A and the provisions under the applicable chapter 
123.18 	shall apply to the school except as provided in this section.
123.19 	Notwithstanding sections 465.717 and 465.719, a school district, subject to this 
123.20 	section and section 124D.11, may create a corporation for the purpose of establishing a 
123.21 	charter school.
123.22 	(b) Before the operators may establish and operate a school, the authorizer must file 
123.23 	an affidavit with the commissioner stating its intent to charter a school. An authorizer 
123.24 	must file a separate affidavit for each school it intends to charter. The affidavit must state 
123.25 	the terms and conditions under which the authorizer would charter a school and how the 
123.26 	authorizer intends to oversee the fiscal and student performance of the charter school and to 
123.27 	comply with the terms of the written contract between the authorizer and the charter school 
123.28 	board of directors under subdivision 6. The commissioner must approve or disapprove the 
123.29 	authorizer's affidavit within 60 business days of receipt of the affidavit. If the commissioner 
123.30 	disapproves the affidavit, the commissioner shall notify the authorizer of the deficiencies 
123.31 	in the affidavit and the authorizer then has 20 business days to address the deficiencies. 
123.32 	If the authorizer does not address deficiencies to the commissioner's satisfaction, the 
123.33 	commissioner's disapproval is final. Failure to obtain commissioner approval precludes an 
123.34 	authorizer from chartering the school that is the subject of this affidavit.
123.35 	(c) The authorizer may prevent an approved charter school from opening for 
123.36 	operation if, among other grounds, the charter school violates this section or does not meet 
124.1 	the ready-to-open standards that are part of the authorizer's oversight and evaluation 
124.2 	process or are stipulated in the charter school contract.
124.3 	(d) The operators authorized to organize and operate a school, before entering into 
124.4 	a contract or other agreement for professional or other services, goods, or facilities, 
124.5 	must incorporate as a nonprofit corporation under chapter 317A and must establish a 
124.6 	board of directors composed of at least five members who are not related parties until a 
124.7 	timely election for members of the ongoing charter school board of directors is held 
124.8 	according to the school's articles and bylaws under paragraph (f). A charter school board 
124.9 	of directors must be composed of at least five members who are not related parties. 
124.10 	Staff members employed at the school, including teachers providing instruction under a 
124.11 	contract with a cooperative, members of the board of directors, and all parents or legal 
124.12 	guardians of children enrolled in the school are the voters eligible to elect the members 
124.13 	of the school's board of directors. A charter school must notify eligible voters of the 
124.14 	school board election dates at least 30 days before the election. Board of director meetings 
124.15 	must comply with chapter 13D.
124.16 	(e) A charter school shall publish and maintain on the school's official Web site: (1) 
124.17 	the minutes of meetings of the board of directors, and of members and committees having 
124.18 	any board-delegated authority, for at least one calendar year from the date of publication; 
124.19 	(2) directory information for members of the board of directors and committees having 
124.20 	board-delegated authority; and (3) identifying and contact information for the school's 
124.21 	authorizer. Identifying and contact information for the school's authorizer must be 
124.22 	included in other school materials made available to the public. Upon request of an 
124.23 	individual, the charter school must also make available in a timely fashion financial 
124.24 	statements showing all operations and transactions affecting income, surplus, and deficit 
124.25 	during the school's last annual accounting period; and a balance sheet summarizing assets 
124.26 	and liabilities on the closing date of the accounting period. A charter school also must post 
124.27 	on its official Web site information identifying its authorizer and indicate how to contact 
124.28 	that authorizer and include that same information about its authorizer in other school 
124.29 	materials that it makes available to the public.
124.30 	(f) Every charter school board member shall attend ongoing annual training 
124.31 	throughout the member's term on the board governance, including. All new board 
124.32 	members shall attend initial training on the board's role and responsibilities, employment 
124.33 	policies and practices, and financial management. A new board member who does not 
124.34 	begin the required initial training within six months after being seated and complete that 
124.35 	training within 12 months of being seated on the board is automatically ineligible to 
125.1 	continue to serve as a board member. The school shall include in its annual report the 
125.2 	training attended by each board member during the previous year.
125.3 	(g) The ongoing board must be elected before the school completes its third year of 
125.4 	operation. Board elections must be held during the school year but may not be conducted 
125.5 	on days when the school is closed for holidays, breaks, or vacations. The charter school 
125.6 	board of directors shall be composed of at least five nonrelated members and include: (i) 
125.7 	at least one licensed teacher employed as a teacher at the school or a licensed teacher
125.8 	 providing instruction under contract between the charter school and a cooperative; (ii) the
125.9 	at least one parent or legal guardian of a student enrolled in the charter school who is not an 
125.10 	employee of the charter school; and (iii) an at least one interested community member who
125.11 	 resides in Minnesota and is not employed by the charter school and does not have a child 
125.12 	enrolled in the school. The board may be a teacher majority board composed may include 
125.13 	a majority  of teachers described in this paragraph or parents or community members, or it 
125.14 	may have no clear majority. The chief financial officer and the chief administrator may only 
125.15 	serve as ex-officio nonvoting board members and may not serve as a voting member of the 
125.16 	board. No charter school employees shall not serve on the board unless other than teachers 
125.17 	under item (i) applies. Contractors providing facilities, goods, or services to a charter 
125.18 	school shall not serve on the board of directors of the charter school. Board bylaws shall 
125.19 	outline the process and procedures for changing the board's governance model structure, 
125.20 	consistent with chapter 317A. A board may change its governance model structure only:
125.21 	(1) by a majority vote of the board of directors and a majority vote of the licensed 
125.22 	teachers employed by the school as teachers, including licensed teachers providing 
125.23 	instruction under a contract between the school and a cooperative; and
125.24 	(2) with the authorizer's approval.
125.25 	Any change in board governance structure must conform with the composition of 
125.26 	the board structure established under this paragraph.
125.27 	(h) The granting or renewal of a charter by an authorizer must not be conditioned 
125.28 	upon the bargaining unit status of the employees of the school.
125.29 	(i) The granting or renewal of a charter school by an authorizer must not be 
125.30 	contingent on the charter school being required to contract, lease, or purchase services 
125.31 	from the authorizer. Any potential contract, lease, or purchase of service from an 
125.32 	authorizer must be disclosed to the commissioner, accepted through an open bidding 
125.33 	process, and be a separate contract from the charter contract. The school must document 
125.34 	the open bidding process. An authorizer must not enter into a contract to provide 
125.35 	management and financial services for a school that it authorizes, unless the school 
125.36 	documents that it received at least two competitive bids.
126.1 	(j) An authorizer may permit the board of directors of a charter school to expand 
126.2 	the operation of the charter school to additional sites or to add additional grades at the 
126.3 	school beyond those described in the authorizer's original affidavit as approved by 
126.4 	the commissioner only after submitting a supplemental affidavit for approval to the 
126.5 	commissioner in a form and manner prescribed by the commissioner. The supplemental 
126.6 	affidavit must document that:
126.7 	(1) the proposed expansion plan demonstrates need and projected enrollment;
126.8 	(2) the expansion is warranted, at a minimum, by longitudinal data demonstrating 
126.9 	students' improved academic performance and growth on statewide assessments under 
126.10 	chapter 120B;
126.11 	(3) the charter school is financially sound and the financing it needs to implement 
126.12 	the proposed expansion exists; and
126.13 	(4) the charter school has the governance structure and management capacity to 
126.14 	carry out its expansion.
126.15 	(k) The commissioner shall have 30 business days to review and comment on the 
126.16 	supplemental affidavit. The commissioner shall notify the authorizer of any deficiencies in 
126.17 	the supplemental affidavit and the authorizer then has 20 business days to address, to the 
126.18 	commissioner's satisfaction, any deficiencies in the supplemental affidavit. The school 
126.19 	may not expand grades or add sites until the commissioner has approved the supplemental 
126.20 	affidavit. The commissioner's approval or disapproval of a supplemental affidavit is final.
126.21 		Subd. 4a.Conflict of interest. (a) An individual is prohibited from serving as a 
126.22 	member of the charter school board of directors if the individual, an immediate family 
126.23 	member, or the individual's partner is an a full or part owner, employee or agent of, or 
126.24 	a contractor principal with a for-profit or nonprofit entity or individual independent 
126.25 	contractor with whom the charter school contracts, directly or indirectly, for professional 
126.26 	services, goods, or facilities. An individual is prohibited from serving as a board member if 
126.27 	an immediate family member is an employee of the school. A violation of this prohibition 
126.28 	renders a contract voidable at the option of the commissioner or the charter school board 
126.29 	of directors. A member of a charter school board of directors who violates this prohibition 
126.30 	is individually liable to the charter school for any damage caused by the violation.
126.31 	(b) No member of the board of directors, employee, officer, or agent of a charter 
126.32 	school shall participate in selecting, awarding, or administering a contract if a conflict 
126.33 	of interest exists. A conflict exists when:
126.34 	(1) the board member, employee, officer, or agent;
126.35 	(2) the immediate family of the board member, employee, officer, or agent;
126.36 	(3) the partner of the board member, employee, officer, or agent; or
127.1 	(4) an organization that employs, or is about to employ any individual in clauses 
127.2 	(1) to (3),
127.3 	has a financial or other interest in the entity with which the charter school is contracting. 
127.4 	A violation of this prohibition renders the contract void.
127.5 	(c) Any employee, agent, or board member of the authorizer who participates 
127.6 	in the initial review, approval, ongoing oversight, evaluation, or the charter renewal or 
127.7 	nonrenewal process or decision is ineligible to serve on the board of directors of a school 
127.8 	chartered by that authorizer.
127.9 	(d) An individual may serve as a member of the board of directors if no conflict of 
127.10 	interest under paragraph (a) exists.
127.11 	(e) The conflict of interest provisions under this subdivision do not apply to 
127.12 	compensation paid to a teacher employed as a teacher by the charter school who or a 
127.13 	teacher who provides instructional services to the charter school through a cooperative 
127.14 	formed under chapter 308A when the teacher also serves as a member of on the charter 
127.15 	school board of directors.
127.16 	(f) The conflict of interest provisions under this subdivision do not apply to a teacher 
127.17 	who provides services to a charter school through a cooperative formed under chapter 
127.18 	308A when the teacher also serves on the charter school board of directors.
127.19 		Subd. 5.Conversion of existing schools. A board of an independent or special 
127.20 	school district may convert one or more of its existing schools to charter schools under 
127.21 	this section if 60 percent of the full-time teachers at the school sign a petition seeking 
127.22 	conversion. The conversion must occur at the beginning of an academic year.
127.23 		Subd. 6.Charter contract. The authorization for a charter school must be in the 
127.24 	form of a written contract signed by the authorizer and the board of directors of the charter 
127.25 	school. The contract must be completed within 45 business days of the commissioner's 
127.26 	approval of the authorizer's affidavit. The authorizer shall submit to the commissioner a 
127.27 	copy of the signed charter contract within ten business days of its execution. The contract 
127.28 	for a charter school must be in writing and contain at least the following:
127.29 	(1) a declaration that the charter school will carry out the primary purpose in 
127.30 	subdivision 1 and how the school will report its implementation of the primary purpose;
127.31 	(1) (2) a declaration of the additional purpose or purposes in subdivision 1 that the 
127.32 	school intends to carry out and how the school will report its implementation of those 
127.33 	purposes;
127.34 	(2) (3) a description of the school program and the specific academic and 
127.35 	nonacademic outcomes that pupils must achieve;
127.36 	(3) (4) a statement of admission policies and procedures;
128.1 	(4) (5) a governance, management, and administration plan for the school;
128.2 	(5) (6) signed agreements from charter school board members to comply with all 
128.3 	federal and state laws governing organizational, programmatic, and financial requirements 
128.4 	applicable to charter schools;
128.5 	(6) (7) the criteria, processes, and procedures that the authorizer will use for 
128.6 	ongoing oversight of operational, financial, and academic performance to monitor and 
128.7 	evaluate the fiscal, operational, and academic performance consistent with subdivision 
128.8 	15, paragraphs (a) and (b);
128.9 	(7) (8) for contract renewal, the formal written performance evaluation of the school 
128.10 	that is a prerequisite for reviewing a charter contract under subdivision 15;
128.11 	(8) (9) types and amounts of insurance liability coverage to be obtained by the 
128.12 	charter school, consistent with subdivision 8, paragraph (k);
128.13 	(9) (10) consistent with subdivision 25, paragraph (d), a provision to indemnify and 
128.14 	hold harmless the authorizer and its officers, agents, and employees from any suit, claim, 
128.15 	or liability arising from any operation of the charter school, and the commissioner and 
128.16 	department officers, agents, and employees notwithstanding section 3.736;
128.17 	(10) (11) the term of the initial contract, which may be up to five years plus an 
128.18 	additional preoperational planning year, and up to five years for a renewed contract or a 
128.19 	contract with a new authorizer after a transfer of authorizers, if warranted by the school's 
128.20 	academic, financial, and operational performance;
128.21 	(11) (12) how the board of directors or the operators of the charter school will 
128.22 	provide special instruction and services for children with a disability under sections 
128.23 	125A.03 to 125A.24, and 125A.65, a description of the financial parameters within 
128.24 	which the charter school will operate to provide the special instruction and services to 
128.25 	children with a disability;
128.26 	(12) the process and criteria the authorizer intends to use to monitor and evaluate the 
128.27 	fiscal and student performance of the charter school, consistent with subdivision 15; and
128.28 	(13) the specific conditions for contract renewal that identify performance under the 
128.29 	primary purpose of subdivision 1 as the most important factor in determining contract 
128.30 	renewal;
128.31 	(14) the additional purposes under subdivision 1, paragraph (a), and related 
128.32 	performance obligations under clause (7) contained in the charter contract as additional 
128.33 	factors in determining contract renewal; and
128.34 	(13) (15) the plan for an orderly closing of the school under chapter 317A, if whether
128.35 	 the closure is a termination for cause, a voluntary termination, or a nonrenewal of the 
128.36 	contract, and that includes establishing the responsibilities of the school board of directors 
129.1 	and the authorizer and notifying the commissioner, authorizer, school district in which the 
129.2 	charter school is located, and parents of enrolled students about the closure, information 
129.3 	and assistance sufficient to enable the student to re-enroll in another school, the transfer 
129.4 	of student records to students' resident districts under subdivision 8, paragraph (p), and 
129.5 	procedures for closing financial operations.
129.6 		Subd. 6a.Audit report. (a) The charter school must submit an audit report to the 
129.7 	commissioner and its authorizer by December 31 each year.
129.8 	(b) The charter school, with the assistance of the auditor conducting the audit, 
129.9 	must include with the report, as supplemental information, a copy of all charter school 
129.10 	agreements for corporate management services, including parent company or other 
129.11 	administrative, financial, and staffing services. If the entity that provides the professional 
129.12 	services to the charter school is exempt from taxation under section 501 of the Internal 
129.13 	Revenue Code of 1986, that entity must file with the commissioner by February 15 a copy 
129.14 	of the annual return required under section 6033 of the Internal Revenue Code of 1986.
129.15 	(c) A charter school independent audit report shall include audited financial data of 
129.16 	an affiliated building corporation or other component unit.
129.17 	(c) (d) If the audit report finds that a material weakness exists in the financial 
129.18 	reporting systems of a charter school, the charter school must submit a written report to 
129.19 	the commissioner explaining how the material weakness will be resolved. An auditor, 
129.20 	as a condition of providing financial services to a charter school, must agree to make 
129.21 	available information about a charter school's financial audit to the commissioner and 
129.22 	authorizer upon request.
129.23 		Subd. 7.Public status; exemption from statutes and rules. A charter school is 
129.24 	a public school and is part of the state's system of public education. A charter school is 
129.25 	exempt from all statutes and rules applicable to a school, school board, or school district 
129.26 	unless a statute or rule is made specifically applicable to a charter school or is included 
129.27 	in this section.
129.28 		Subd. 8.Federal, state, and local requirements. (a) A charter school shall meet all 
129.29 	federal, state, and local health and safety requirements applicable to school districts.
129.30 	(b) A school must comply with statewide accountability requirements governing 
129.31 	standards and assessments in chapter 120B.
129.32 	(c) A school authorized by a school board may be located in any district, unless the 
129.33 	school board of the district of the proposed location disapproves by written resolution.
129.34 	(d) A charter school must be nonsectarian in its programs, admission policies, 
129.35 	employment practices, and all other operations. An authorizer may not authorize a charter 
129.36 	school or program that is affiliated with a nonpublic sectarian school or a religious 
130.1 	institution. A charter school student must be released for religious instruction, consistent 
130.2 	with section 120A.22, subdivision 12, clause (3).
130.3 	(e) Charter schools must not be used as a method of providing education or 
130.4 	generating revenue for students who are being home-schooled. This paragraph does not 
130.5 	apply to shared time aid under section 126C.19.
130.6 	(f) The primary focus of a charter school must be to provide a comprehensive 
130.7 	program of instruction for at least one grade or age group from five through 18 years 
130.8 	of age. Instruction may be provided to people younger than five years and older than 
130.9 	18 years of age.
130.10 	(g) A charter school may not charge tuition.
130.11 	(h) A charter school is subject to and must comply with chapter 363A and section 
130.12 	121A.04.
130.13 	(i) A charter school is subject to and must comply with the Pupil Fair Dismissal 
130.14 	Act, sections 121A.40 to 121A.56, and the Minnesota Public School Fee Law, sections 
130.15 	123B.34 to 123B.39.
130.16 	(j) A charter school is subject to the same financial audits, audit procedures, and 
130.17 	audit requirements as a district, except as required under subdivision 6a. Audits must be 
130.18 	conducted in compliance with generally accepted governmental auditing standards, the 
130.19 	federal Single Audit Act, if applicable, and section 6.65. A charter school is subject 
130.20 	to and must comply with sections 15.054; 118A.01; 118A.02; 118A.03; 118A.04; 
130.21 	118A.05; 118A.06; 471.38; 471.391; 471.392; and 471.425. The audit must comply with 
130.22 	the requirements of sections 123B.75 to 123B.83, except to the extent deviations are 
130.23 	necessary because of the program at the school. Deviations must be approved by the 
130.24 	commissioner and authorizer. The Department of Education, state auditor, legislative 
130.25 	auditor, or authorizer may conduct financial, program, or compliance audits. A charter 
130.26 	school determined to be in statutory operating debt under sections 123B.81 to 123B.83
130.27 	must submit a plan under section 123B.81, subdivision 4.
130.28 	(k) A charter school is a district for the purposes of tort liability under chapter 466.
130.29 	(l) A charter school must comply with chapters 13 and 13D; and sections 120A.22, 
130.30 	subdivision 7; 121A.75; and 260B.171, subdivisions 3 and 5.
130.31 	(m) A charter school is subject to the Pledge of Allegiance requirement under 
130.32 	section 121A.11, subdivision 3.
130.33 	(n) A charter school offering online courses or programs must comply with section 
130.34 	124D.095.
130.35 	(o) A charter school and charter school board of directors are subject to chapter 181.
131.1 	(p) A charter school must comply with section 120A.22, subdivision 7, governing 
131.2 	the transfer of students' educational records and sections 138.163 and 138.17 governing 
131.3 	the management of local records.
131.4 	(q) A charter school that provides early childhood health and developmental 
131.5 	screening must comply with sections 121A.16 to 121A.19.
131.6 	(r) A charter school that provides school-sponsored youth athletic activities must 
131.7 	comply with section 121A.38.
131.8 	(s) A charter school is subject to and must comply with continuing truant notification 
131.9 	under section 260A.03.
131.10 	(t) A charter school must develop and implement a teacher evaluation and peer 
131.11 	review process, under section 122A.40, subdivision 8, paragraph (b), clauses (2) to (12).
131.12 	(u) A charter school most adopt a policy, plan, budget, and process, consistent with 
131.13 	section 120B.11, to review curriculum, instruction, and student achievement and strive 
131.14 	for the world's best workforce.
131.15 		Subd. 8a.Aid reduction. The commissioner may reduce a charter school's state aid 
131.16 	under section 127A.42 or 127A.43 if the charter school board fails to correct a violation 
131.17 	under this section.
131.18 		Subd. 8b.Aid reduction for violations. The commissioner may reduce a charter 
131.19 	school's state aid by an amount not to exceed 60 percent of the charter school's basic 
131.20 	revenue for the period of time that a violation of law occurs.
131.21 		Subd. 9.Admission requirements. (a) A charter school may limit admission to:
131.22 	(1) pupils within an age group or grade level;
131.23 	(2) pupils who are eligible to participate in the graduation incentives program under 
131.24 	section 124D.68; or
131.25 	(3) residents of a specific geographic area in which the school is located when the 
131.26 	majority of students served by the school are members of underserved populations.
131.27 	(b) A charter school shall enroll an eligible pupil who submits a timely application, 
131.28 	unless the number of applications exceeds the capacity of a program, class, grade level, or 
131.29 	building. In this case, pupils must be accepted by lot. The charter school must develop 
131.30 	and publish, including on its Web site, a lottery policy and process that it must use when 
131.31 	accepting pupils by lot.
131.32 	(c) A charter school shall give enrollment preference to a sibling of an enrolled pupil 
131.33 	and to a foster child of that pupil's parents and may give preference for enrolling children 
131.34 	of the school's staff before accepting other pupils by lot.
131.35 	(d) A person shall not be admitted to a charter school (1) as a kindergarten pupil, 
131.36 	unless the pupil is at least five years of age on September 1 of the calendar year in which 
132.1 	the school year for which the pupil seeks admission commences; or (2) as a first grade 
132.2 	student, unless the pupil is at least six years of age on September 1 of the calendar year in 
132.3 	which the school year for which the pupil seeks admission commences or has completed 
132.4 	kindergarten; except that a charter school may establish and publish on its Web site a 
132.5 	policy for admission of selected pupils at an earlier age, consistent with the enrollment 
132.6 	process in paragraphs (b) and (c).
132.7 	(e) Except as permitted in paragraph (d), a charter school may not limit admission 
132.8 	to pupils on the basis of intellectual ability, measures of achievement or aptitude, or 
132.9 	athletic ability and may not establish any criteria or requirements for admission that are 
132.10 	inconsistent with this subdivision.
132.11 	(f) The charter school shall not distribute any services or goods of value to students, 
132.12 	parents, or guardians as an inducement, term, or condition of enrolling a student in a 
132.13 	charter school.
132.14 		Subd. 10.Pupil performance. A charter school must design its programs to at 
132.15 	least meet the outcomes adopted by the commissioner for public school students. In 
132.16 	the absence of the commissioner's requirements, the school must meet the outcomes 
132.17 	contained in the contract with the authorizer. The achievement levels of the outcomes 
132.18 	contained in the contract may exceed the achievement levels of any outcomes adopted by 
132.19 	the commissioner for public school students.
132.20 		Subd. 11.Employment and other operating matters. (a) A charter school must 
132.21 	employ or contract with necessary teachers, as defined by section 122A.15, subdivision 1, 
132.22 	who hold valid licenses to perform the particular service for which they are employed in 
132.23 	the school. The charter school's state aid may be reduced under section 127A.43 if the 
132.24 	school employs a teacher who is not appropriately licensed or approved by the board of 
132.25 	teaching. The school may employ necessary employees who are not required to hold 
132.26 	teaching licenses to perform duties other than teaching and may contract for other services. 
132.27 	The school may discharge teachers and nonlicensed employees. The charter school board 
132.28 	is subject to section 181.932. When offering employment to a prospective employee, a 
132.29 	charter school must give that employee a written description of the terms and conditions 
132.30 	of employment and the school's personnel policies.
132.31 	(b) A person, without holding a valid administrator's license, may perform 
132.32 	administrative, supervisory, or instructional leadership duties. The board of directors shall 
132.33 	establish qualifications for persons that hold administrative, supervisory, or instructional 
132.34 	leadership roles. The qualifications shall include at least the following areas: instruction 
132.35 	and assessment; human resource and personnel management; financial management; 
132.36 	legal and compliance management; effective communication; and board, authorizer, and 
133.1 	community relationships. The board of directors shall use those qualifications as the basis 
133.2 	for job descriptions, hiring, and performance evaluations of those who hold administrative, 
133.3 	supervisory, or instructional leadership roles. The board of directors and an individual 
133.4 	who does not hold a valid administrative license and who serves in an administrative, 
133.5 	supervisory, or instructional leadership position shall develop a professional development 
133.6 	plan. Documentation of the implementation of the professional development plan of these 
133.7 	persons shall be included in the school's annual report.
133.8 	(c) The board of directors also shall decide and be responsible for policy matters 
133.9 	related to the operation of the school, including budgeting, curriculum programming, 
133.10 	personnel,  and operating procedures. The board shall adopt a policy on nepotism in 
133.11 	employment. The board shall adopt personnel evaluation policies and practices that, 
133.12 	at a minimum:
133.13 	(1) carry out the school's mission and goals;
133.14 	(2) evaluate the execution of charter contract goals and commitments;
133.15 	(3) evaluate student achievement, postsecondary and workforce readiness, and 
133.16 	student engagement and connection goals;
133.17 	(4) establish a teacher evaluation process under subdivision 8, paragraph (t); and
133.18 	(5) provide professional development related to the individual's job responsibilities.
133.19 		Subd. 12.Pupils with a disability. A charter school must comply with sections 
133.20 	125A.02, 125A.03 to 125A.24, and 125A.65 and rules relating to the education of pupils 
133.21 	with a disability as though it were a district.
133.22 		Subd. 13.Length of school year. A charter school must provide instruction each 
133.23 	year for at least the number of hours required by section 120A.41. It may provide 
133.24 	instruction throughout the year according to sections 124D.12 to 124D.127 or 124D.128.
133.25 		Subd. 14.Annual public reports. (a) A charter school must publish an annual report 
133.26 	approved by the board of directors. The annual report must at least include information 
133.27 	on school enrollment, student attrition, governance and management, staffing, finances, 
133.28 	academic performance, operational performance, innovative practices and implementation, 
133.29 	and future plans. A charter school must post the annual report on the school's official 
133.30 	Web site. A charter school must also distribute the annual report by publication, mail, or 
133.31 	electronic means to the commissioner, its authorizer, school employees, and parents and 
133.32 	legal guardians of students enrolled in the charter school and must also post the report on 
133.33 	the charter school's official Web site. The reports are public data under chapter 13.
133.34 	(b) The commissioner shall establish specifications for an authorizer's annual public 
133.35 	report that is part of the system to evaluate authorizer performance under subdivision 
134.1 	3, paragraph (h). The report shall at least include key indicators of school academic, 
134.2 	operational, and financial performance.
134.3 		Subd. 15.Review and comment. (a) The authorizer shall provide a formal written 
134.4 	evaluation of the school's performance before the authorizer renews the charter contract. 
134.5 	The department must review and comment on the authorizer's evaluation process at the 
134.6 	time the authorizer submits its application for approval and each time the authorizer 
134.7 	undergoes its five-year review under subdivision 3, paragraph (i) (h).
134.8 	(b) An authorizer shall monitor and evaluate the fiscal, academic, financial,
134.9 	 operational, and student performance of the school, and may for this purpose annually 
134.10 	assess a charter school a fee according to paragraph (c). The agreed-upon fee structure 
134.11 	must be stated in the charter school contract.
134.12 	(c) The fee that each charter school pays to an authorizer each year an authorizer 
134.13 	may annually assess is the greater of:
134.14 	(1) the basic formula allowance for that year; or
134.15 	(2) the lesser of:
134.16 	(i) the maximum fee factor times the basic formula allowance for that year; or
134.17 	(ii) the fee factor times the basic formula allowance for that year times the charter 
134.18 	school's adjusted marginal cost pupil units for that year. The fee factor equals .005 in fiscal 
134.19 	year 2010, .01 in fiscal year 2011, .013 in fiscal year 2012, and .015 in fiscal years 2013 
134.20 	and later. The maximum fee factor equals 1.5 in fiscal year 2010, 2.0 in fiscal year 2011, 
134.21 	3.0 in fiscal year 2012, and 4.0 in fiscal years 2013 and later.
134.22 	(d) An authorizer may not assess a fee for any required services other than as 
134.23 	provided in this subdivision.
134.24 	(e) For the preoperational planning period, after a school is chartered, the authorizer 
134.25 	may assess a charter school a fee equal to the basic formula allowance.
134.26 	(f) By September 30 of each year, an authorizer shall submit to the commissioner a 
134.27 	statement of income and expenditures related to chartering activities during the previous 
134.28 	school year ending June 30. A copy of the statement shall be given to all schools chartered 
134.29 	by the authorizer.
134.30 		Subd. 16.Transportation. (a) A charter school after its first fiscal year of operation 
134.31 	by March 1 of each fiscal year and a charter school by July 1 of its first fiscal year of 
134.32 	operation must notify the district in which the school is located and the Department of 
134.33 	Education if it will provide its own transportation or use the transportation services of the 
134.34 	district in which it is located for the fiscal year.
134.35 	(b) If a charter school elects to provide transportation for pupils, the transportation 
134.36 	must be provided by the charter school within the district in which the charter school is 
135.1 	located. The state must pay transportation aid to the charter school according to section 
135.2 	124D.11, subdivision 2.
135.3 	For pupils who reside outside the district in which the charter school is located, the 
135.4 	charter school is not required to provide or pay for transportation between the pupil's 
135.5 	residence and the border of the district in which the charter school is located. A parent 
135.6 	may be reimbursed by the charter school for costs of transportation from the pupil's 
135.7 	residence to the border of the district in which the charter school is located if the pupil is 
135.8 	from a family whose income is at or below the poverty level, as determined by the federal 
135.9 	government. The reimbursement may not exceed the pupil's actual cost of transportation 
135.10 	or 15 cents per mile traveled, whichever is less. Reimbursement may not be paid for 
135.11 	more than 250 miles per week.
135.12 	At the time a pupil enrolls in a charter school, the charter school must provide the 
135.13 	parent or guardian with information regarding the transportation.
135.14 	(c) If a charter school does not elect to provide transportation, transportation for 
135.15 	pupils enrolled at the school must be provided by the district in which the school is 
135.16 	located, according to sections 123B.88, subdivision 6, and 124D.03, subdivision 8, for a 
135.17 	pupil residing in the same district in which the charter school is located. Transportation 
135.18 	may be provided by the district in which the school is located, according to sections 
135.19 	123B.88, subdivision 6, and 124D.03, subdivision 8, for a pupil residing in a different 
135.20 	district. If the district provides the transportation, the scheduling of routes, manner and 
135.21 	method of transportation, control and discipline of the pupils, and any other matter relating 
135.22 	to the transportation of pupils under this paragraph shall be within the sole discretion, 
135.23 	control, and management of the district.
135.24 		Subd. 17.Leased space. A charter school may lease space from an independent 
135.25 	or special school board eligible to be an authorizer, other public organization, private, 
135.26 	nonprofit nonsectarian organization, private property owner, or a sectarian organization 
135.27 	if the leased space is constructed as a school facility. The department must review and 
135.28 	approve or disapprove leases in a timely manner for purposes of determining eligibility for 
135.29 	lease aid under section 124D.11, subdivision 4.
135.30 		Subd. 17a.Affiliated nonprofit building corporation. (a) Before a charter school 
135.31 	may organize an affiliated nonprofit building corporation (i) to renovate or purchase an 
135.32 	existing facility to serve as a school or (ii) to expand an existing building or construct 
135.33 	a new school facility, an authorizer must submit an affidavit to the commissioner for 
135.34 	approval in the form and manner the commissioner prescribes, and consistent with 
135.35 	paragraphs (b) and (c) or (d).
135.36 	(b) An affiliated nonprofit building corporation under this subdivision must:
136.1 	(1) be incorporated under section 317A;
136.2 	(2) comply with applicable Internal Revenue Service regulations, including 
136.3 	regulations for "supporting organizations" as defined by the Internal Revenue Service;
136.4 	(3) submit to the commissioner each fiscal year a list of current board members 
136.5 	and a copy of its annual audit; and
136.6 	(4) comply with government data practices law under chapter 13.
136.7 	An affiliated nonprofit building corporation must not serve as the leasing agent for 
136.8 	property or facilities it does not own. A charter school that leases a facility from an 
136.9 	affiliated nonprofit building corporation that does not own the leased facility is ineligible 
136.10 	to receive charter school lease aid. The state is immune from liability resulting from a 
136.11 	contract between a charter school and an affiliated nonprofit building corporation.
136.12 	(c) A charter school may organize an affiliated nonprofit building corporation to 
136.13 	renovate or purchase an existing facility to serve as a school if the charter school:
136.14 	(1) has been operating for at least five consecutive school years;
136.15 	(2) has had a net positive unreserved general fund balance as of June 30 in the 
136.16 	preceding five fiscal years;
136.17 	(3) has a long-range strategic and financial plan;
136.18 	(4) completes a feasibility study of available buildings;
136.19 	(5) documents enrollment projections and the need to use an affiliated building 
136.20 	corporation to renovate or purchase an existing facility to serve as a school; and
136.21 	(6) has a plan for the renovation or purchase, which describes the parameters and 
136.22 	budget for the project.
136.23 	(d) A charter school may organize an affiliated nonprofit building corporation to 
136.24 	expand an existing school facility or construct a new school facility if the charter school:
136.25 	(1) demonstrates the lack of facilities available to serve as a school;
136.26 	(2) has been operating for at least eight consecutive school years;
136.27 	(3) has had a net positive unreserved general fund balance as of June 30 in the 
136.28 	preceding five fiscal years;
136.29 	(4) completes a feasibility study of facility options;
136.30 	(5) has a long-range strategic and financial plan that includes enrollment projections 
136.31 	and demonstrates the need for constructing a new school facility; and
136.32 	(6) has a plan for the expansion or new school facility, which describes the 
136.33 	parameters and budget for the project.
136.34 		Subd. 17b.Positive review and comment. (e) A charter school or an affiliated 
136.35 	nonprofit building corporation organized by a charter school must not initiate an 
136.36 	installment contract for purchase, or a lease agreement, or solicit bids for new construction, 
137.1 	expansion, or remodeling of an educational facility that requires an expenditure in 
137.2 	excess of $1,400,000, unless it meets the criteria in subdivision 17a, paragraph (b) and 
137.3 	paragraph (c) or (d), as applicable, and receives a positive review and comment from 
137.4 	the commissioner under section 123B.71.
137.5 		Subd. 19.Disseminate information. (a) The authorizer, the operators, Authorizers
137.6 	 and the department must disseminate information to the public on how to form and 
137.7 	operate a charter school. Charter schools must disseminate information about how to 
137.8 	use the offerings of a charter school. Targeted groups include low-income families and 
137.9 	communities, students of color, and students who are at risk of academic failure.
137.10 	(b) Authorizers, operators, and the department also may disseminate information 
137.11 	about the successful best practices in teaching and learning demonstrated by charter 
137.12 	schools.
137.13 		Subd. 20.Leave to teach in a charter school. If a teacher employed by a district 
137.14 	makes a written request for an extended leave of absence to teach at a charter school, 
137.15 	the district must grant the leave. The district must grant a leave not to exceed a total of 
137.16 	five years. Any request to extend the leave shall be granted only at the discretion of the 
137.17 	school board. The district may require that the request for a leave or extension of leave 
137.18 	be made before February 1 in the school year preceding the school year in which the 
137.19 	teacher intends to leave, or February 1 of the calendar year in which the teacher's leave is 
137.20 	scheduled to terminate. Except as otherwise provided in this subdivision and except for 
137.21 	section 122A.46, subdivision 7, the leave is governed by section 122A.46, including, but 
137.22 	not limited to, reinstatement, notice of intention to return, seniority, salary, and insurance.
137.23 	During a leave, the teacher may continue to aggregate benefits and credits in the 
137.24 	Teachers' Retirement Association account under chapters 354 and 354A, consistent with 
137.25 	subdivision 22.
137.26 		Subd. 21.Collective bargaining. Employees of the board of directors of a charter 
137.27 	school may, if otherwise eligible, organize under chapter 179A and comply with its 
137.28 	provisions. The board of directors of a charter school is a public employer, for the 
137.29 	purposes of chapter 179A, upon formation of one or more bargaining units at the school. 
137.30 	Bargaining units at the school must be separate from any other units within an authorizing 
137.31 	district, except that bargaining units may remain part of the appropriate unit within an 
137.32 	authorizing district, if the employees of the school, the board of directors of the school, 
137.33 	the exclusive representative of the appropriate unit in the authorizing district, and the 
137.34 	board of the authorizing district agree to include the employees in the appropriate unit of 
137.35 	the authorizing district.
138.1 		Subd. 22.Teacher and other employee retirement. (a) Teachers in a charter 
138.2 	school must be public school teachers for the purposes of chapters 354 and 354A.
138.3 	(b) Except for teachers under paragraph (a), employees in a charter school must be 
138.4 	public employees for the purposes of chapter 353.
138.5 		Subd. 23.Causes for nonrenewal or termination of charter school contract. (a) 
138.6 	The duration of the contract with an authorizer must be for the term contained in the 
138.7 	contract according to subdivision 6. The authorizer may or may not renew a contract at 
138.8 	the end of the term for any ground listed in paragraph (b). An authorizer may unilaterally 
138.9 	terminate a contract during the term of the contract for any ground listed in paragraph (b). 
138.10 	At least 60 business days before not renewing or terminating a contract, the authorizer 
138.11 	shall notify the board of directors of the charter school of the proposed action in writing. 
138.12 	The notice shall state the grounds for the proposed action in reasonable detail and that the 
138.13 	charter school's board of directors may request in writing an informal hearing before the 
138.14 	authorizer within 15 business days of receiving notice of nonrenewal or termination of 
138.15 	the contract. Failure by the board of directors to make a written request for an informal 
138.16 	hearing within the 15-business-day period shall be treated as acquiescence to the proposed 
138.17 	action. Upon receiving a timely written request for a hearing, the authorizer shall give ten 
138.18 	business days' notice to the charter school's board of directors of the hearing date. The 
138.19 	authorizer shall conduct an informal hearing before taking final action. The authorizer 
138.20 	shall take final action to renew or not renew a contract no later than 20 business days 
138.21 	before the proposed date for terminating the contract or the end date of the contract.
138.22 	(b) A contract may be terminated or not renewed upon any of the following grounds:
138.23 	(1) failure to meet demonstrate satisfactory academic achievement for all students, 
138.24 	including the requirements for pupil performance contained in the contract;
138.25 	(2) failure to meet generally accepted standards of fiscal management;
138.26 	(3) violations of law; or
138.27 	(4) other good cause shown.
138.28 	If a contract is terminated or not renewed under this paragraph, the school must be 
138.29 	dissolved according to the applicable provisions of chapter 317A.
138.30 	(c) If the authorizer and the charter school board of directors mutually agree to 
138.31 	terminate or not renew the contract, a change in authorizers is allowed if the commissioner 
138.32 	approves the change to a different eligible authorizer to authorize the charter school. 
138.33 	Both parties must jointly submit their intent in writing to the commissioner to mutually 
138.34 	terminate the contract. The authorizer that is a party to the existing contract must inform 
138.35 	the proposed authorizer about the fiscal and operational status and student performance 
138.36 	of the school. Before the commissioner determines whether to approve a change in 
139.1 	authorizer, the proposed authorizer must identify any outstanding issues in the proposed 
139.2 	charter contract that were unresolved in the previous charter contract and have the charter 
139.3 	school agree to resolve those issues. If no change in authorizer is approved, the school 
139.4 	must be dissolved according to applicable law and the terms of the contract.
139.5 	(c) If the authorizer and the charter school board of directors mutually agree not to 
139.6 	renew the contract, a change in authorizers is allowed. The authorizer and the school 
139.7 	board must jointly submit a written and signed letter of their intent to the commissioner 
139.8 	to mutually not renew the contract. The authorizer that is a party to the existing contract 
139.9 	must inform the proposed authorizer about the fiscal, operational, and student performance 
139.10 	status of the school, as well as any outstanding contractual obligations that exist. The 
139.11 	charter contract between the proposed authorizer and the school must identify and provide 
139.12 	a plan to address any outstanding obligations from the previous contract. The proposed 
139.13 	contract must be submitted at least 105 business days before the end of the existing 
139.14 	charter contract. The commissioner shall have 30 business days to review and make a 
139.15 	determination. The proposed authorizer and the school shall have 15 business days to 
139.16 	respond to the determination and address any issues identified by the commissioner. A 
139.17 	final determination by the commissioner shall be made no later than 45 business days 
139.18 	before the end of the current charter contract. If no change in authorizer is approved, the 
139.19 	school and the current authorizer may withdraw their letter of nonrenewal and enter into a 
139.20 	new contract. If the transfer of authorizers is not approved and the current authorizer and 
139.21 	the school do not withdraw their letter and enter into a new contract, the school must be 
139.22 	dissolved according to applicable law and the terms of the contract.
139.23 	(d) The commissioner, after providing reasonable notice to the board of directors of 
139.24 	a charter school and the existing authorizer, and after providing an opportunity for a public 
139.25 	hearing, may terminate the existing contract between the authorizer and the charter school 
139.26 	board if the charter school has a history of:
139.27 	(1) failure to meet pupil performance requirements consistent with state law;
139.28 	(2) financial mismanagement or failure to meet generally accepted standards of 
139.29 	fiscal management; or
139.30 	(3) repeated or major violations of the law.
139.31 		Subd. 23a.Related party lease costs. (a) A charter school is prohibited from 
139.32 	entering a lease of real property with a related party unless the lessor is a nonprofit 
139.33 	corporation under chapter 317A or a cooperative under chapter 308A, and the lease cost is 
139.34 	reasonable under section 124D.11, subdivision 4, clause (1).
139.35 	(b) For purposes of this section and section 124D.11:
140.1 	(1) "related party" means an affiliate or immediate relative of the other party in 
140.2 	question, an affiliate of an immediate relative, or an immediate relative of an affiliate;
140.3 	(2) "affiliate" means a person that directly or indirectly, through one or more 
140.4 	intermediaries, controls, is controlled by, or is under common control with another person;
140.5 	(3) "immediate family" means an individual whose relationship by blood, marriage, 
140.6 	adoption, or partnering is no more remote than first cousin;
140.7 	(4) "person" means an individual or entity of any kind; and
140.8 	(5) "control" means the ability to affect the management, operations, or policy 
140.9 	actions or decisions of a person, whether through ownership of voting securities, by 
140.10 	contract, or otherwise.
140.11 	(c) A lease of real property to be used for a charter school, not excluded in paragraph 
140.12 	(a), must contain the following statement: "This lease is subject to Minnesota Statutes, 
140.13 	section 124D.10, subdivision 23a."
140.14 	(d) If a charter school enters into as lessee a lease with a related party and the 
140.15 	charter school subsequently closes, the commissioner has the right to recover from the 
140.16 	lessor any lease payments in excess of those that are reasonable under section 124D.11, 
140.17 	subdivision 4, clause (1).
140.18 		Subd. 24.Pupil enrollment upon nonrenewal or termination of charter school 
140.19 	contract. If a contract is not renewed or is terminated according to subdivision 23, a 
140.20 	pupil who attended the school, siblings of the pupil, or another pupil who resides in the 
140.21 	same place as the pupil may enroll in the resident district or may submit an application 
140.22 	to a nonresident district according to section 124D.03 at any time. Applications and 
140.23 	notices required by section 124D.03 must be processed and provided in a prompt manner. 
140.24 	The application and notice deadlines in section 124D.03 do not apply under these 
140.25 	circumstances. The closed charter school must transfer the student's educational records 
140.26 	within ten business days of closure to the student's school district of residence where the 
140.27 	records must be retained or transferred under section 120A.22, subdivision 7.
140.28 		Subd. 25.Extent of specific legal authority. (a) The board of directors of a charter 
140.29 	school may sue and be sued.
140.30 	(b) The board may not levy taxes or issue bonds.
140.31 	(c) The commissioner, an authorizer, members of the board of an authorizer in 
140.32 	their official capacity, and employees of an authorizer are immune from civil or criminal 
140.33 	liability with respect to all activities related to a charter school they approve or authorize. 
140.34 	The board of directors shall obtain at least the amount of and types of insurance up to the 
140.35 	applicable tort liability limits under chapter 466. The charter school board must submit 
140.36 	a copy of the insurance policy to its authorizer and the commissioner before starting 
141.1 	operations. The charter school board must submit changes in its insurance carrier or policy 
141.2 	to its authorizer and the commissioner within 20 business days of the change.
141.3 	(d) Notwithstanding section 3.736, the charter school shall assume full liability for 
141.4 	its activities and indemnify and hold harmless the authorizer and its officers, agents, and 
141.5 	employees from any suit, claim, or liability arising from any operation of the charter school 
141.6 	and the commissioner and department officers, agents, and employees. A charter school 
141.7 	is not required to indemnify or hold harmless a state employee if the state would not be 
141.8 	required to indemnify and hold the employee harmless under section 3.736, subdivision 9.
141.9 		Subd. 27.Collaboration between charter school and school district. (a) A charter 
141.10 	school board may voluntarily enter into a two-year, renewable agreement for collaboration 
141.11 	to enhance student achievement with a school district within whose geographic boundary 
141.12 	it operates.
141.13 	(b) A school district need not be an approved authorizer to enter into a collaboration 
141.14 	agreement with a charter school. A charter school need not be authorized by the school 
141.15 	district with which it seeks to collaborate.
141.16 	(c) A charter school authorizer is prohibited from requiring a collaboration agreement 
141.17 	as a condition of entering into or renewing a charter contract as defined in subdivision 6.
141.18 	(d) Nothing in this subdivision or in the collaboration agreement may impact in any 
141.19 	way the authority or autonomy of the charter school.
141.20 	(e) Nothing in this subdivision or in the collaboration agreement shall cause the state 
141.21 	to pay twice for the same student, service, or facility or otherwise impact state funding, or 
141.22 	the flow thereof, to the school district or the charter school.
141.23 	(f) The collaboration agreement may include, but need not be limited to, 
141.24 	collaboration regarding facilities, transportation, training, student achievement, 
141.25 	assessments, mutual performance standards, and other areas of mutual agreement.
141.26 	(g) The school district may include the academic performance of the students of a 
141.27 	collaborative charter school site operating within the geographic boundaries of the school 
141.28 	district, for purposes of student assessment and reporting to the state.
141.29 	(h) Districts, authorizers, or charter schools entering into a collaborative agreement 
141.30 	are equally and collectively subject to the same state and federal accountability measures 
141.31 	for student achievement, school performance outcomes, and school improvement 
141.32 	strategies. The collaborative agreement and all accountability measures must be posted 
141.33 	on the district, charter school, and authorizer Web sites.

141.34 	EFFECTIVE DATE. This section is effective July 1, 2013, except subdivision 6 is 
141.35 	effective August 1, 2013.

142.1 	Sec. 2. Minnesota Statutes 2012, section 124D.11, subdivision 1, is amended to read:
142.2 		Subdivision 1.General education revenue. (a) General education revenue must 
142.3 	be paid to a charter school as though it were a district. The general education revenue 
142.4 	for each adjusted marginal cost pupil unit is the state average general education revenue 
142.5 	per pupil unit, plus the referendum equalization aid allowance in the pupil's district of 
142.6 	residence, minus an amount equal to the product of the formula allowance according to 
142.7 	section 126C.10, subdivision 2, times .0485 .0466, calculated without basic skills revenue, 
142.8 	extended time revenue, alternative teacher compensation revenue,pension adjustment 
142.9 	revenue, transition revenue, and transportation sparsity revenue, plus basic skills revenue, 
142.10 	extended time revenue, basic alternative teacher compensation aid according to section 
142.11 	126C.10, subdivision 34,pension adjustment revenue, and transition revenue as though 
142.12 	the school were a school district. The general education revenue for each extended time 
142.13 	marginal cost pupil unit equals $4,378 $4,794.
142.14 	(b) Notwithstanding paragraph (a), for charter schools in the first year of operation, 
142.15 	general education revenue shall be computed using the number of adjusted pupil units 
142.16 	in the current fiscal year.

142.17 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
142.18 	and later.

142.19 	Sec. 3. Minnesota Statutes 2012, section 124D.11, subdivision 2, is amended to read:
142.20 		Subd. 2.Transportation revenue. Transportation revenue must be paid to a charter 
142.21 	school that provides transportation services according to section 124D.10, subdivision 16, 
142.22 	according to this subdivision. Transportation aid shall equal transportation revenue.
142.23 	In addition to the revenue under subdivision 1, a charter school providing 
142.24 	transportation services must receive general education aid equal to the sum of the product 
142.25 	of (i) an amount equal to the product of the formula allowance according to section 
142.26 	126C.10, subdivision 2, times .0485 .0466, plus the transportation sparsity allowance for 
142.27 	the school district in which the charter school is located times (ii) the adjusted marginal 
142.28 	cost pupil units, plus the product of $223 times the extended time marginal cost pupil units.

142.29 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
142.30 	and later.

142.31 	Sec. 4. Minnesota Statutes 2012, section 124D.11, subdivision 4, is amended to read:
142.32 		Subd. 4.Building lease aid. (a) When a charter school finds it economically 
142.33 	advantageous to rent or lease a building or land for any instructional purposes and it 
143.1 	determines that the total operating capital revenue under section 126C.10, subdivision 13, 
143.2 	is insufficient for this purpose, it may apply to the commissioner for building lease aid 
143.3 	for this purpose. The commissioner must review and either approve or deny a lease aid 
143.4 	application using the following criteria:
143.5 	(1) the reasonableness of the price based on current market values;
143.6 	(2) the extent to which the lease conforms to applicable state laws and rules; and
143.7 	(3) the appropriateness of the proposed lease in the context of the space needs and 
143.8 	financial circumstances of the charter school. The commissioner must approve aid only 
143.9 	for a facility lease that has (i) a sum certain annual cost and (ii) an escape clause the 
143.10 	charter school may exercise if its charter contract is terminated or not renewed.
143.11 	A charter school must not use the building lease aid it receives for custodial, maintenance 
143.12 	service, utility, or other operating costs. 
143.13 	(b) The amount of annual building lease aid per pupil unit served for a charter school 
143.14 	for any year shall not exceed the lesser of (a) (1) 90 percent of the approved cost or (b) (2)
143.15 	 the product of the pupil units served for the current school year times $1,200 $1,314.

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

143.17 	Sec. 5. Minnesota Statutes 2012, section 260A.02, subdivision 3, is amended to read:
143.18 		Subd. 3.Continuing truant. "Continuing truant" means a child who is subject to the 
143.19 	compulsory instruction requirements of section 120A.22 and is absent from instruction in a 
143.20 	school, as defined in section 120A.05, without valid excuse within a single school year for:
143.21 	(1) three days if the child is in elementary school; or
143.22 	(2) three or more class periods on three days if the child is in middle school, junior 
143.23 	high school, or high school.
143.24 	Nothing in this section shall prevent a school district or charter school from notifying 
143.25 	a truant child's parent or legal guardian of the child's truancy or otherwise addressing a 
143.26 	child's attendance problems prior to the child becoming a continuing truant.

143.27 	Sec. 6. Minnesota Statutes 2012, section 260A.03, is amended to read:
143.28 	260A.03 NOTICE TO PARENT OR GUARDIAN WHEN CHILD IS A 
143.29 	CONTINUING TRUANT.
143.30 	Upon a child's initial classification as a continuing truant, the school attendance 
143.31 	officer or other designated school official shall notify the child's parent or legal guardian, 
143.32 	by first-class mail or other reasonable means, of the following:
143.33 	(1) that the child is truant;
144.1 	(2) that the parent or guardian should notify the school if there is a valid excuse 
144.2 	for the child's absences;
144.3 	(3) that the parent or guardian is obligated to compel the attendance of the child 
144.4 	at school pursuant to section 120A.22 and parents or guardians who fail to meet this 
144.5 	obligation may be subject to prosecution under section 120A.34;
144.6 	(4) that this notification serves as the notification required by section 120A.34;
144.7 	(5) that alternative educational programs and services may be available in the child's 
144.8 	enrolling or resident district;
144.9 	(6) that the parent or guardian has the right to meet with appropriate school personnel 
144.10 	to discuss solutions to the child's truancy;
144.11 	(7) that if the child continues to be truant, the parent and child may be subject to 
144.12 	juvenile court proceedings under chapter 260C;
144.13 	(8) that if the child is subject to juvenile court proceedings, the child may be subject 
144.14 	to suspension, restriction, or delay of the child's driving privilege pursuant to section 
144.15 	260C.201; and
144.16 	(9) that it is recommended that the parent or guardian accompany the child to school 
144.17 	and attend classes with the child for one day.

144.18 	Sec. 7. Minnesota Statutes 2012, section 260A.05, subdivision 1, is amended to read:
144.19 		Subdivision 1.Establishment. A school district or charter school may establish 
144.20 	one or more school attendance review boards to exercise the powers and duties in this 
144.21 	section. The school district or charter school board shall appoint the members of the 
144.22 	school attendance review board and designate the schools within the board's jurisdiction. 
144.23 	Members of a school attendance review board may include:
144.24 	(1) the superintendent of the school district or the superintendent's designee or 
144.25 	charter school director or the director's designee;
144.26 	(2) a principal and one or more other school officials from within the district or 
144.27 	charter school;
144.28 	(3) parent representatives;
144.29 	(4) representatives from community agencies that provide services for truant 
144.30 	students and their families;
144.31 	(5) a juvenile probation officer;
144.32 	(6) school counselors and attendance officers; and
144.33 	(7) law enforcement officers.

144.34 	Sec. 8. Minnesota Statutes 2012, section 260A.07, subdivision 1, is amended to read:
145.1 		Subdivision 1.Establishment; referrals. A county attorney may establish a truancy 
145.2 	mediation program for the purpose of resolving truancy problems without court action. If 
145.3 	a student is in a school district or charter school that has established a school attendance 
145.4 	review board, the student may be referred to the county attorney under section 260A.06, 
145.5 	subdivision 3. If the student's school district or charter school has not established a board, 
145.6 	the student may be referred to the county attorney by the school district or charter school 
145.7 	if the student continues to be truant after the parent or guardian has been sent or conveyed 
145.8 	the notice under section 260A.03.

145.9 	Sec. 9. APPROPRIATIONS.
 145.10 		Subdivision 1.Department. The sums indicated in this section are appropriated 
145.11 	from the general fund to the Department of Education for the fiscal years designated.
145.12 		Subd. 2.Charter school building lease aid. For building lease aid under Minnesota 
145.13 	Statutes, section 124D.11, subdivision 4: 

145.14		$
	54,484,000
	.....
	2014
	
145.15		$
	59,533,000
	.....
	2015
	
145.16 	The 2014 appropriation includes $6,819,000 for 2013 and $47,665,000 for 2014.
145.17 	The 2015 appropriation includes $7,502,000 for 2014 and $52,031,000 for 2015.

145.18 	Sec. 10. REVISOR'S INSTRUCTION; CHARTER SCHOOLS 
145.19 	RECODIFICATION.
 145.20 	The revisor of statutes, in consultation with K-12 education staff in House Research 
145.21 	and Senate Counsel and Research, shall prepare a recodification of Minnesota Statutes, 
145.22 	sections 124D.10 and 124D.11, including corresponding technical corrections and other 
145.23 	needed technical changes and shall submit the completed recodification to the chairs and 
145.24 	ranking minority members of the legislative committees having jurisdiction over K-12 
145.25 	education policy and finance.

145.26 	ARTICLE 5
145.27 	SPECIAL PROGRAMS

145.28 	Section 1. Minnesota Statutes 2012, section 15.059, subdivision 5b, is amended to read:
145.29 		Subd. 5b.Continuation dependent on federal law. Notwithstanding this section, 
145.30 	the following councils and committees do not expire unless federal law no longer requires 
145.31 	the existence of the council or committee:
145.32 	(1) Rehabilitation Council for the Blind, created in section 248.10;
146.1 	(2) Juvenile Justice Advisory Committee, created in section 299A.72;
146.2 	(3) Governor's Workforce Development Council, created in section 116L.665;
146.3 	(4) local workforce councils, created in section 116L.666, subdivision 2;
146.4 	(5) Rehabilitation Council, created in section 268A.02, subdivision 2; and
146.5 	(6) Statewide Independent Living Council, created in section 268A.02, subdivision 
146.6 	2; and
146.7 	(7) Interagency Coordinating Council, created in section 125A.28.

146.8 	Sec. 2. Minnesota Statutes 2012, section 124D.11, subdivision 5, is amended to read:
146.9 		Subd. 5.Special education aid. (a) Except as provided in subdivision 2, special 
146.10 	education aid must be paid to a charter school according to section 125A.76, as though 
146.11 	it were a school district.
146.12 	(b) For fiscal year 2006, the charter school may charge tuition to the district of 
146.13 	residence as follows:
146.14 	(1) if the charter school does not receive general education revenue on behalf of 
146.15 	the student according to subdivision 1, tuition shall be charged as provided in section 
146.16 	125A.11; or
146.17 	(2) if the charter school receives general education revenue on behalf of the student 
146.18 	according to subdivision 1, tuition shall be charged as provided in section 127A.47, 
146.19 	subdivision 7, paragraph (d).
146.20 	(c) (b) For fiscal year 2007 2015 and later, the special education aid paid to the 
146.21 	charter school shall be adjusted as follows:
146.22 	(1) if the charter school does not receive general education revenue on behalf of 
146.23 	the student according to subdivision 1, the aid shall be adjusted as provided in section 
146.24 	125A.11; or
146.25 	(2) if the charter school receives general education revenue on behalf of the student 
146.26 	according to subdivision 1, the aid shall be adjusted as provided in section 127A.47, 
146.27 	subdivision 7, paragraph paragraphs (b) to (d).

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

146.29 	Sec. 3. Minnesota Statutes 2012, section 125A.0941, is amended to read:
146.30 	125A.0941 DEFINITIONS.
146.31 	(a) The following terms have the meanings given them.
146.32 	(b) "Emergency" means a situation where immediate intervention is needed to 
146.33 	protect a child or other individual from physical injury or to prevent serious property 
147.1 	damage. Emergency does not mean circumstances such as: a child who does not respond 
147.2 	to a task or request and instead places his or her head on a desk or hides under a desk or 
147.3 	table; a child who does not respond to a staff person's request unless failing to respond 
147.4 	would result in physical injury to the child or other individual; or an emergency incident 
147.5 	has already occurred and no threat of physical injury currently exists.
147.6 	(c) "Physical holding" means physical intervention intended to hold a child immobile 
147.7 	or limit a child's movement, where body contact is the only source of physical restraint, 
147.8 	and where immobilization is used to effectively gain control of a child in order to protect 
147.9 	the a child or other person individual from physical injury. The term physical holding does 
147.10 	not mean physical contact that:
147.11 	(1) helps a child respond or complete a task;
147.12 	(2) assists a child without restricting the child's movement;
147.13 	(3) is needed to administer an authorized health-related service or procedure; or
147.14 	(4) is needed to physically escort a child when the child does not resist or the child's 
147.15 	resistance is minimal.
147.16 	(d) "Positive behavioral interventions and supports" means interventions and 
147.17 	strategies to improve the school environment and teach children the skills to behave 
147.18 	appropriately.
147.19 	(e) "Prone restraint" means placing a child in a face down position.
147.20 	(f) "Restrictive procedures" means the use of physical holding or seclusion in an 
147.21 	emergency. Restrictive procedures must not be used to punish or otherwise discipline a 
147.22 	child.
147.23 	(g) "Seclusion" means confining a child alone in a room from which egress is barred. 
147.24 	Egress may be barred by an adult locking or closing the door in the room or preventing the 
147.25 	child from leaving the room. Removing a child from an activity to a location where the 
147.26 	child cannot participate in or observe the activity is not seclusion.

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

147.28 	Sec. 4. Minnesota Statutes 2012, section 125A.0942, is amended to read:
147.29 	125A.0942 STANDARDS FOR RESTRICTIVE PROCEDURES.
147.30 		Subdivision 1.Restrictive procedures plan. (a) Schools that intend to use 
147.31 	restrictive procedures shall maintain and make publicly accessible in an electronic format 
147.32 	on a school or district Web site or make a paper copy available upon request describing a 
147.33 	restrictive procedures plan for children with disabilities that includes at least the following:
147.34 	(1) lists the list of restrictive procedures the school intends to use;
148.1 	(2) describes how the school will implement a range of positive behavior strategies 
148.2 	and provide links to mental health services;
148.3 	(3) describes how the school will monitor and review the use of restrictive 
148.4 	procedures, including:
148.5 	(i)  conducting post-use debriefings, consistent with subdivision 3, paragraph (a), 
148.6 	clause (5); and 
148.7 	(ii) convening an oversight committee to undertake a quarterly review of the use 
148.8 	of restrictive procedures based on patterns or problems indicated by similarities in the 
148.9 	time of day, day of the week, duration of the use of a procedure, the individuals involved, 
148.10 	or other factors associated with the use of restrictive procedures; the number of times a 
148.11 	restrictive procedure is used schoolwide and for individual children; the number and types 
148.12 	of injuries, if any, resulting from the use of restrictive procedures; whether restrictive 
148.13 	procedures are used in nonemergency situations; the need for additional staff training; and 
148.14 	proposed actions to minimize the use of restrictive procedures; and
148.15 	(3) (4) includes a written description and documentation of the training staff 
148.16 	completed under subdivision 5.
148.17 	(b) Schools annually must publicly identify oversight committee members who 
148.18 	must at least include: 
148.19 	(1) a mental health professional, school psychologist, or school social worker; 
148.20 	(2) an expert in positive behavior strategies; 
148.21 	(3) a special education administrator; and 
148.22 	(4) a general education administrator.
148.23 		Subd. 2.Restrictive procedures. (a) Restrictive procedures may be used only 
148.24 	by a licensed special education teacher, school social worker, school psychologist, 
148.25 	behavior analyst certified by the National Behavior Analyst Certification Board, a person 
148.26 	with a master's degree in behavior analysis, other licensed education professional, 
148.27 	paraprofessional under section 120B.363, or mental health professional under section 
148.28 	245.4871, subdivision 27, who has completed the training program under subdivision 5.
148.29 	(b) A school shall make reasonable efforts to notify the parent on the same day a 
148.30 	restrictive procedure is used on the child, or if the school is unable to provide same-day 
148.31 	notice, notice is sent within two days by written or electronic means or as otherwise 
148.32 	indicated by the child's parent under paragraph (d).
148.33 	(c) When restrictive procedures are used twice in 30 days or when a pattern emerges 
148.34 	and restrictive procedures are not included in a child's individualized education program 
148.35 	or behavior intervention plan, The district must hold a meeting of the individualized 
148.36 	education program team, conduct or review a functional behavioral analysis, review data, 
149.1 	consider developing additional or revised positive behavioral interventions and supports, 
149.2 	consider actions to reduce the use of restrictive procedures, and modify the individualized 
149.3 	education program or behavior intervention plan as appropriate. The district must hold 
149.4 	the meeting: within ten calendar days after district staff use restrictive procedures on two 
149.5 	separate school days within 30 calendar days or a pattern of use emerges and the child's 
149.6 	individualized education program or behavior intervention plan does not provide for using 
149.7 	restrictive procedures in an emergency; or at the request of a parent or the district after 
149.8 	restrictive procedures are used.  The district must review use of restrictive procedures at a 
149.9 	child's annual individualized education program meeting when the child's individualized 
149.10 	education program provides for using restrictive procedures in an emergency.
149.11 	(d) If the individualized education program team under paragraph (c) determines 
149.12 	that existing interventions and supports are ineffective in reducing the use of restrictive 
149.13 	procedures or the district uses restrictive procedures on a child on ten or more school days 
149.14 	during the same school year, the team, as appropriate, either must consult with other 
149.15 	professionals working with the child; consult with experts in behavior analysis, mental 
149.16 	health, communication, or autism; consult with culturally competent professionals; 
149.17 	review existing evaluations, resources, and successful strategies; or consider whether to 
149.18 	reevaluate the child.
149.19 	(e) At the individualized education program meeting under paragraph (c), the team 
149.20 	must review any known medical or psychological limitations, including any medical 
149.21 	information the parent provides voluntarily, that contraindicate the use of a restrictive 
149.22 	procedure, consider whether to prohibit that restrictive procedure, and document any 
149.23 	prohibition in the individualized education program or behavior intervention plan.
149.24 	(d) (f) An individualized education program team may plan for using restrictive 
149.25 	procedures and may include these procedures in a child's individualized education 
149.26 	program or behavior intervention plan; however, the restrictive procedures may be used 
149.27 	only in response to behavior that constitutes an emergency, consistent with this section. 
149.28 	The individualized education program or behavior intervention plan shall indicate how the 
149.29 	parent wants to be notified when a restrictive procedure is used.
149.30 		Subd. 3.Physical holding or seclusion. (a) Physical holding or seclusion may be 
149.31 	used only in an emergency. A school that uses physical holding or seclusion shall meet the 
149.32 	following requirements:
149.33 	(1) the physical holding or seclusion must be is the least intrusive intervention 
149.34 	that effectively responds to the emergency;
149.35 	(2) physical holding or seclusion is not used to discipline a noncompliant child;
150.1 	(3) physical holding or seclusion must endends when the threat of harm ends and 
150.2 	the staff determines that the child can safely return to the classroom or activity;
150.3 	(3) (4) staff must directly observe observes the child while physical holding or 
150.4 	seclusion is being used;
150.5 	(4) (5) each time physical holding or seclusion is used, the staff person who 
150.6 	implements or oversees the physical holding or seclusion shall document documents, as 
150.7 	soon as possible after the incident concludes, the following information:
150.8 	(i) a description of the incident that led to the physical holding or seclusion;
150.9 	(ii) why a less restrictive measure failed or was determined by staff to be 
150.10 	inappropriate or impractical;
150.11 	(iii) the time the physical holding or seclusion began and the time the child was 
150.12 	released; and
150.13 	(iv) a brief record of the child's behavioral and physical status;
150.14 	(5) (6) the room used for seclusion must:
150.15 	(i) be at least six feet by five feet;
150.16 	(ii) be well lit, well ventilated, adequately heated, and clean;
150.17 	(iii) have a window that allows staff to directly observe a child in seclusion;
150.18 	(iv) have tamperproof fixtures, electrical switches located immediately outside the 
150.19 	door, and secure ceilings;
150.20 	(v) have doors that open out and are unlocked, locked with keyless locks that 
150.21 	have immediate release mechanisms, or locked with locks that have immediate release 
150.22 	mechanisms connected with a fire and emergency system; and
150.23 	(vi) not contain objects that a child may use to injure the child or others;
150.24 	(6) (7) before using a room for seclusion, a school must:
150.25 	(i) receive written notice from local authorities that the room and the locking 
150.26 	mechanisms comply with applicable building, fire, and safety codes; and
150.27 	(ii) register the room with the commissioner, who may view that room; and
150.28 	(7) (8) until August 1, 2013 2015, a school district may use prone restraints with 
150.29 	children age five or older under the following conditions if:
150.30 	(i) a the district has provided to the department a list of staff who have had specific 
150.31 	training on the use of prone restraints;
150.32 	(ii) a the district provides information on the type of training that was provided 
150.33 	and by whom;
150.34 	(iii) prone restraints may only be used by staff who have received specific training
150.35 	 use prone restraints;
151.1 	(iv) each incident of the use of prone restraints is reported to the department within 
151.2 	five working days on a form provided by the department; and
151.3 	(v) a the district, prior to before using prone restraints, must review any known 
151.4 	medical or psychological limitations that contraindicate the use of prone restraints.
151.5 	The department will report back to the chairs and ranking minority members of the 
151.6 	legislative committees with primary jurisdiction over education policy by February 
151.7 	1, 2013, on the use of prone restraints in the schools. Consistent with item (iv), The 
151.8 	department must collect data on districts' use of prone restraints and publish the data in a 
151.9 	readily accessible format on the department's Web site on a quarterly basis.
151.10 	(b) The department must develop a statewide plan by February 1, 2013, to reduce 
151.11 	districts' use of restrictive procedures that includes By March 1, 2014, stakeholders must 
151.12 	recommend to the commissioner specific and measurable implementation and outcome 
151.13 	goals for reducing the use of restrictive procedures and the commissioner must submit to 
151.14 	the legislature a report on districts' progress in reducing the use of restrictive procedures 
151.15 	that recommends how to further reduce these procedures and eliminate the use of prone 
151.16 	restraints. The statewide plan includes the following components: measurable goals; the 
151.17 	resources, training, technical assistance, mental health services, and collaborative efforts 
151.18 	needed to significantly reduce districts' use of prone restraints; and recommendations 
151.19 	to clarify and improve the law governing districts' use of restrictive procedures. The 
151.20 	department must convene commissioner must consult with interested stakeholders to 
151.21 	develop the statewide plan and identify the need for technical assistance when preparing 
151.22 	the report, including representatives of advocacy organizations, special education directors, 
151.23 	teachers, paraprofessionals, intermediate school districts, school boards, day treatment 
151.24 	providers, county social services, state human services department staff, mental health 
151.25 	professionals, and autism experts. To assist the department and stakeholders under this 
151.26 	paragraph, school districts must report summary data to the department by July 1, 2012, 
151.27 	on districts' use of restrictive procedures during the 2011-2012 school year, including data 
151.28 	on the number of incidents involving restrictive procedures, the total number of students 
151.29 	on which restrictive procedures were used, the number of resulting injuries, relevant 
151.30 	demographic data on the students and school, and other relevant data collected by the 
151.31 	district. By June 30 each year, districts must report summary data on their use of restrictive 
151.32 	procedures to the department, in a form and manner determined by the commissioner.
151.33 		Subd. 4.Prohibitions. The following actions or procedures are prohibited:
151.34 	(1) engaging in conduct prohibited under section 121A.58;
151.35 	(2) requiring a child to assume and maintain a specified physical position, activity, 
151.36 	or posture that induces physical pain;
152.1 	(3) totally or partially restricting a child's senses as punishment;
152.2 	(4) presenting an intense sound, light, or other sensory stimuli using smell, taste, 
152.3 	substance, or spray as punishment;
152.4 	(5) denying or restricting a child's access to equipment and devices such as walkers, 
152.5 	wheelchairs, hearing aids, and communication boards that facilitate the child's functioning, 
152.6 	except when temporarily removing the equipment or device is needed to prevent injury 
152.7 	to the child or others or serious damage to the equipment or device, in which case the 
152.8 	equipment or device shall be returned to the child as soon as possible;
152.9 	(6) interacting with a child in a manner that constitutes sexual abuse, neglect, or 
152.10 	physical abuse under section 626.556;
152.11 	(7) withholding regularly scheduled meals or water;
152.12 	(8) denying access to bathroom facilities; and
152.13 	(9) physical holding that restricts or impairs a child's ability to breathe, restricts or 
152.14 	impairs a child's ability to communicate distress, places pressure or weight on a child's 
152.15 	head, throat, neck, chest, lungs, sternum, diaphragm, back, or abdomen, or results in 
152.16 	straddling a child's torso.
152.17 		Subd. 5.Training for staff. (a) To meet the requirements of subdivision 1, staff 
152.18 	who use restrictive procedures, including paraprofessionals, shall complete training in 
152.19 	the following skills and knowledge areas:
152.20 	(1) positive behavioral interventions;
152.21 	(2) communicative intent of behaviors;
152.22 	(3) relationship building;
152.23 	(4) alternatives to restrictive procedures, including techniques to identify events and 
152.24 	environmental factors that may escalate behavior;
152.25 	(5) de-escalation methods;
152.26 	(6) standards for using restrictive procedures only in an emergency;
152.27 	(7) obtaining emergency medical assistance;
152.28 	(8) the physiological and psychological impact of physical holding and seclusion;
152.29 	(9) monitoring and responding to a child's physical signs of distress when physical 
152.30 	holding is being used; and
152.31 	(10) recognizing the symptoms of and interventions that may cause positional 
152.32 	asphyxia when physical holding is used.;
152.33 	(11) district policies and procedures for timely reporting and documenting each 
152.34 	incident involving use of a restricted procedure; and
152.35 	(12) schoolwide programs on positive behavior strategies.
153.1 	(b) The commissioner, after consulting with the commissioner of human services, 
153.2 	must develop and maintain a list of training programs that satisfy the requirements of 
153.3 	paragraph (a). The commissioner also must develop and maintain a list of experts to 
153.4 	help individualized education program teams reduce the use of restrictive procedures. 
153.5 	The district shall maintain records of staff who have been trained and the organization 
153.6 	or professional that conducted the training. The district may collaborate with children's 
153.7 	community mental health providers to coordinate trainings.
153.8 		Subd. 6.Behavior supports. School districts are encouraged to establish effective 
153.9 	schoolwide systems of positive behavior interventions and supports. Nothing in this 
153.10 	section or section 125A.0941 precludes the use of reasonable force under sections 
153.11 	121A.582; 609.06, subdivision 1; and 609.379.

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

153.13 	Sec. 5. Minnesota Statutes 2012, section 125A.11, subdivision 1, is amended to read:
153.14 		Subdivision 1.Nonresident tuition rate; other costs. (a) For fiscal year 2006, 
153.15 	when a school district provides instruction and services outside the district of residence, 
153.16 	board and lodging, and any tuition to be paid, shall be paid by the district of residence. 
153.17 	The tuition rate to be charged for any child with a disability, excluding a pupil for whom 
153.18 	tuition is calculated according to section 127A.47, subdivision 7, paragraph (d), must be 
153.19 	the sum of (1) the actual cost of providing special instruction and services to the child 
153.20 	including a proportionate amount for special transportation and unreimbursed building 
153.21 	lease and debt service costs for facilities used primarily for special education, plus (2) 
153.22 	the amount of general education revenue and referendum aid attributable to the pupil, 
153.23 	minus (3) the amount of special education aid for children with a disability received 
153.24 	on behalf of that child, minus (4) if the pupil receives special instruction and services 
153.25 	outside the regular classroom for more than 60 percent of the school day, the amount of 
153.26 	general education revenue and referendum aid, excluding portions attributable to district 
153.27 	and school administration, district support services, operations and maintenance, capital 
153.28 	expenditures, and pupil transportation, attributable to that pupil for the portion of time 
153.29 	the pupil receives special instruction and services outside of the regular classroom. If 
153.30 	the boards involved do not agree upon the tuition rate, either board may apply to the 
153.31 	commissioner to fix the rate. Notwithstanding chapter 14, the commissioner must then set 
153.32 	a date for a hearing or request a written statement from each board, giving each board 
153.33 	at least ten days' notice, and after the hearing or review of the written statements the 
153.34 	commissioner must make an order fixing the tuition rate, which is binding on both school 
153.35 	districts. General education revenue and referendum equalization aid attributable to a 
154.1 	pupil must be calculated using the resident district's average general education revenue 
154.2 	and referendum equalization aid per adjusted pupil unit.
154.3 	(b) (a) For fiscal year 2007 2015 and later, when a school district provides special 
154.4 	instruction and services for a pupil with a disability as defined in section 125A.02 outside 
154.5 	the district of residence, excluding a pupil for whom an adjustment to special education 
154.6 	aid is calculated according to section 127A.47, subdivision 7, paragraph (e) paragraphs (b) 
154.7 	to (d), special education aid paid to the resident district must be reduced by an amount 
154.8 	equal to (1) the actual cost of providing special instruction and services to the pupil, 
154.9 	including a proportionate amount for special transportation and unreimbursed building 
154.10 	lease and debt service costs for facilities used primarily for special education, plus (2) 
154.11 	the amount of general education revenue and referendum equalization aid attributable 
154.12 	to that pupil, calculated using the resident district's average general education revenue 
154.13 	and referendum equalization aid per adjusted pupil unit excluding basic skills revenue, 
154.14 	elementary sparsity revenue and secondary sparsity revenue, minus (3) the amount of 
154.15 	special education aid for children with a disability under section 125A.76 received on 
154.16 	behalf of that child, minus (4) if the pupil receives special instruction and services outside 
154.17 	the regular classroom for more than 60 percent of the school day, the amount of general 
154.18 	education revenue and referendum equalization aid, excluding portions attributable to 
154.19 	district and school administration, district support services, operations and maintenance, 
154.20 	capital expenditures, and pupil transportation, attributable to that pupil for the portion of 
154.21 	time the pupil receives special instruction and services outside of the regular classroom, 
154.22 	calculated using the resident district's average general education revenue and referendum 
154.23 	equalization aid per adjusted pupil unit excluding basic skills revenue, elementary sparsity 
154.24 	revenue and secondary sparsity revenue and the serving district's basic skills revenue, 
154.25 	elementary sparsity revenue and secondary sparsity revenue per adjusted pupil unit. 
154.26 	Notwithstanding clauses (1) and (4), for pupils served by a cooperative unit without a 
154.27 	fiscal agent school district, the general education revenue and referendum equalization 
154.28 	aid attributable to a pupil must be calculated using the resident district's average general 
154.29 	education revenue and referendum equalization aid excluding compensatory revenue, 
154.30 	elementary sparsity revenue, and secondary sparsity revenue. Special education aid paid 
154.31 	to the district or cooperative providing special instruction and services for the pupil 
154.32 	must be increased by the amount of the reduction in the aid paid to the resident district. 
154.33 	Amounts paid to cooperatives under this subdivision and section 127A.47, subdivision 
154.34 	7, shall be recognized and reported as revenues and expenditures on the resident school 
154.35 	district's books of account under sections 123B.75 and 123B.76. If the resident district's 
155.1 	special education aid is insufficient to make the full adjustment, the remaining adjustment 
155.2 	shall be made to other state aid due to the district.
155.3 	(c) (b) Notwithstanding paragraphs paragraph (a) and (b) and section 127A.47, 
155.4 	subdivision 7, paragraphs (b) to (d) and (e), a charter school where more than 30 percent 
155.5 	of enrolled students receive special education and related services, a site approved under 
155.6 	section 125A.515, an intermediate district, a special education cooperative, or a school 
155.7 	district that served as the applicant agency for a group of school districts for federal 
155.8 	special education aids for fiscal year 2006 may apply to the commissioner for authority to 
155.9 	charge the resident district an additional amount to recover any remaining unreimbursed 
155.10 	costs of serving pupils with a disability. The application must include a description of the 
155.11 	costs and the calculations used to determine the unreimbursed portion to be charged to the 
155.12 	resident district. Amounts approved by the commissioner under this paragraph must be 
155.13 	included in the tuition billings or aid adjustments under paragraph (a) or (b), or section 
155.14 	127A.47, subdivision 7, paragraph (d) or (e) paragraphs (b) to (d), as applicable.
155.15 	(d) (c) For purposes of this subdivision and section 127A.47, subdivision 7, 
155.16 	paragraphs (d) and (e), "general education revenue and referendum equalization aid" 
155.17 	means the sum of the general education revenue according to section 126C.10, subdivision 
155.18 	1, excluding alternative teacher compensation revenue, plus the referendum equalization 
155.19 	aid according to section 126C.17, subdivision 7, as adjusted according to section 127A.47, 
155.20 	subdivision 7, paragraphs (a) to (c).

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

155.22 	Sec. 6. Minnesota Statutes 2012, section 125A.27, subdivision 8, is amended to read:
155.23 		Subd. 8.Eligibility for Part C. "Eligibility for Part C" means eligibility for 
155.24 	early childhood special education infant and toddler intervention services under section 
155.25 	125A.02 and Minnesota Rules.

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

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

156.11 	Sec. 9. Minnesota Statutes 2012, section 125A.28, is amended to read:
156.12 	125A.28 STATE INTERAGENCY COORDINATING COUNCIL.
156.13 	An Interagency Coordinating Council of at least 17, but not more than 25 members 
156.14 	is established, in compliance with Public Law 108-446, section 641. The members must 
156.15 	be appointed by the governor and reasonably represent the population of Minnesota. 
156.16 	Council members must elect the council chair, who may not be a representative of the 
156.17 	Department of Education. The representative of the commissioner may not serve as the 
156.18 	chair. The council must be composed of at least five parents, including persons of color, 
156.19 	of children with disabilities under age 12, including at least three parents of a child 
156.20 	with a disability under age seven, five representatives of public or private providers 
156.21 	of services for children with disabilities under age five, including a special education 
156.22 	director, county social service director, local Head Start director, and a community health 
156.23 	services or public health nursing administrator, one member of the senate, one member of 
156.24 	the house of representatives, one representative of teacher preparation programs in early 
156.25 	childhood-special education or other preparation programs in early childhood intervention, 
156.26 	at least one representative of advocacy organizations for children with disabilities under 
156.27 	age five, one physician who cares for young children with special health care needs, one 
156.28 	representative each from the commissioners of commerce, education, health, human 
156.29 	services, a representative from the state agency responsible for child care, foster care, 
156.30 	mental health, homeless coordinator of education of homeless children and youth, and a 
156.31 	representative from Indian health services or a tribal council. Section 15.059, subdivisions 
156.32 	2 to 5, apply to the council. The council must meet at least quarterly.
157.1 	The council must address methods of implementing the state policy of developing 
157.2 	and implementing comprehensive, coordinated, multidisciplinary interagency programs of 
157.3 	early intervention services for children with disabilities and their families.
157.4 	The duties of the council include recommending policies to ensure a comprehensive 
157.5 	and coordinated system of all state and local agency services for children under age five 
157.6 	with disabilities and their families. The policies must address how to incorporate each 
157.7 	agency's services into a unified state and local system of multidisciplinary assessment 
157.8 	practices, individual intervention plans, comprehensive systems to find children in need of 
157.9 	services, methods to improve public awareness, and assistance in determining the role of 
157.10 	interagency early intervention committees.
157.11 	On the date that Minnesota Part C Annual Performance Report is submitted to the 
157.12 	federal Office of Special Education, the council must recommend to the governor and the 
157.13 	commissioners of education, health, human services, commerce, and employment and 
157.14 	economic development policies for a comprehensive and coordinated system.
157.15 	Annually, the council must prepare and submit a report to the governor and the 
157.16 	secretary of the federal Department of Education on the status of early intervention 
157.17 	services and programs for infants and toddlers with disabilities and their families under 
157.18 	the Individuals with Disabilities Education Act, United States Code, title 20, sections 
157.19 	1471 to 1485 (Part C, Public Law 102-119), as operated in Minnesota. The Minnesota 
157.20 	Part C annual performance report may serve as the report.
157.21 	Notwithstanding any other law to the contrary, the State Interagency Coordinating 
157.22 	Council expires on June 30, 2014 does not expire unless federal law no longer requires 
157.23 	the existence of the council or committee.

157.24 	Sec. 10. Minnesota Statutes 2012, section 125A.29, is amended to read:
157.25 	125A.29 RESPONSIBILITIES OF COUNTY BOARDS AND SCHOOL 
157.26 	BOARDS.
157.27 	(a) It is the joint responsibility of county boards and school boards to coordinate, 
157.28 	provide, and pay for appropriate services, and to facilitate payment for services from public 
157.29 	and private sources. Appropriate services for children eligible under section 125A.02 must 
157.30 	be determined in consultation with parents, physicians, and other educational, medical, 
157.31 	health, and human services providers. The services provided must be in conformity with:
157.32 	(1) an IFSP for each eligible infant and toddler from birth through age two and 
157.33 	the infant's or toddler's family including:
157.34 	(i) American Indian infants and toddlers with disabilities and their families residing 
157.35 	on a reservation geographically located in the state;
158.1 	(ii) infants and toddlers with disabilities who are homeless children and their 
158.2 	families; and
158.3 	(iii) infants and toddlers with disabilities who are wards of the state; or
158.4 	(2) an individualized education program (IEP) or individual service plan (ISP) for 
158.5 	each eligible child ages three through four.
158.6 	(b) Appropriate early intervention services include family education and 
158.7 	counseling, home visits, occupational and physical therapy, speech pathology, audiology, 
158.8 	psychological services, special instruction, nursing, respite, nutrition, assistive technology, 
158.9 	transportation and related costs, social work, vision services, case management services 
158.10 	provided in conformity with an IFSP that are designed to meet the special developmental 
158.11 	needs of an eligible child and the needs of the child's family related to enhancing the 
158.12 	child's development and that are selected in collaboration with the parent. These services 
158.13 	include core early intervention services and additional early intervention services listed in 
158.14 	this section and infant and toddler intervention services defined under United States Code, 
158.15 	title 20, sections 1431 to 1444, and Code of Federal Regulations, title 34, section 303,
158.16 	 including service coordination under section 125A.33, medical services for diagnostic and 
158.17 	evaluation purposes, early identification, and screening, assessment, and health services 
158.18 	necessary to enable children with disabilities to benefit from early intervention services.
158.19 	(c) School and county boards shall coordinate early intervention services. In the 
158.20 	absence of agreements established according to section 125A.39, service responsibilities 
158.21 	for children birth through age two are as follows:
158.22 	(1) school boards must provide, pay for, and facilitate payment for special education 
158.23 	and related services required under sections 125A.03 and 125A.06;
158.24 	(2) county boards must provide, pay for, and facilitate payment for noneducational 
158.25 	services of social work, psychology, transportation and related costs, nursing, respite, and 
158.26 	nutrition services not required under clause (1).
158.27 	(d) School and county boards may develop an interagency agreement according 
158.28 	to section 125A.39 to establish agency responsibility that assures early intervention 
158.29 	services are coordinated, provided, paid for, and that payment is facilitated from public 
158.30 	and private sources.
158.31 	(e) County and school boards must jointly determine the primary agency in this 
158.32 	cooperative effort and must notify the commissioner of the state lead agency of their 
158.33 	decision.

158.34 	Sec. 11. Minnesota Statutes 2012, section 125A.30, is amended to read:
158.35 	125A.30 INTERAGENCY EARLY INTERVENTION COMMITTEES.
159.1 	(a) A school district, group of districts, or special education cooperative, in 
159.2 	cooperation with the health and human service agencies located in the county or counties 
159.3 	in which the district or cooperative is located, must establish an Interagency Early 
159.4 	Intervention Committee for children with disabilities under age five and their families 
159.5 	under this section, and for children with disabilities ages three to 22 consistent with 
159.6 	the requirements under sections 125A.023 and 125A.027. Committees must include 
159.7 	representatives of local health, education, and county human service agencies, county 
159.8 	boards, school boards, early childhood family education programs, Head Start, parents of 
159.9 	young children with disabilities under age 12, child care resource and referral agencies, 
159.10 	school readiness programs, current service providers, and agencies that serve families 
159.11 	experiencing homelessness, and may also include representatives from other private or 
159.12 	public agencies and school nurses. The committee must elect a chair from among its 
159.13 	members and must meet at least quarterly.
159.14 	(b) The committee must develop and implement interagency policies and procedures 
159.15 	concerning the following ongoing duties:
159.16 	(1) develop public awareness systems designed to inform potential recipient families, 
159.17 	especially parents with premature infants, or infants with other physical risk factors 
159.18 	associated with learning or development complications, of available programs and services;
159.19 	(2) to reduce families' need for future services, and especially parents with premature 
159.20 	infants, or infants with other physical risk factors associated with learning or development 
159.21 	complications, implement interagency child find systems designed to actively seek out, 
159.22 	identify, and refer infants and young children with, or at risk of, disabilities, including 
159.23 	a child under the age of three who: (i) is involved in the subject of a substantiated case 
159.24 	of abuse or neglect or (ii) is identified as directly affected by illegal substance abuse, or 
159.25 	withdrawal symptoms resulting from prenatal drug exposure;
159.26 	(3) establish and evaluate the identification, referral, child screening, evaluation, 
159.27 	child- and family-directed assessment systems, procedural safeguard process, 
159.28 	and community learning systems to recommend, where necessary, alterations and 
159.29 	improvements;
159.30 	(4) assure the development of individualized family service plans for all eligible 
159.31 	infants and toddlers with disabilities from birth through age two, and their families, 
159.32 	and individualized education programs and individual service plans when necessary to 
159.33 	appropriately serve children with disabilities, age three and older, and their families and 
159.34 	recommend assignment of financial responsibilities to the appropriate agencies;
159.35 	(5) implement a process for assuring that services involve cooperating agencies at all 
159.36 	steps leading to individualized programs;
160.1 	(6) facilitate the development of a transitional transition plan if a service provider is 
160.2 	not recommended to continue to provide services in the individual family service plan by 
160.3 	the time a child is two years and nine months old;
160.4 	(7) identify the current services and funding being provided within the community 
160.5 	for children with disabilities under age five and their families;
160.6 	(8) develop a plan for the allocation and expenditure of additional state and federal 
160.7 	early intervention funds under United States Code, title 20, section 1471 et seq. (Part C, 
160.8 	Public Law 108-446) and United States Code, title 20, section 631, et seq. (Chapter I, 
160.9 	Public Law 89-313); and
160.10 	(9) develop a policy that is consistent with section 13.05, subdivision 9, and federal 
160.11 	law to enable a member of an interagency early intervention committee to allow another 
160.12 	member access to data classified as not public.
160.13 	(c) The local committee shall also:
160.14 	(1) participate in needs assessments and program planning activities conducted by 
160.15 	local social service, health and education agencies for young children with disabilities 
160.16 	and their families; and.
160.17 	(2) review and comment on the early intervention section of the total special 
160.18 	education system for the district, the county social service plan, the section or sections of 
160.19 	the community health services plan that address needs of and service activities targeted 
160.20 	to children with special health care needs, the section on children with special needs in 
160.21 	the county child care fund plan, sections in Head Start plans on coordinated planning and 
160.22 	services for children with special needs, any relevant portions of early childhood education 
160.23 	plans, such as early childhood family education or school readiness, or other applicable 
160.24 	coordinated school and community plans for early childhood programs and services, and 
160.25 	the section of the maternal and child health special project grants that address needs of and 
160.26 	service activities targeted to children with chronic illness and disabilities.

160.27 	Sec. 12. Minnesota Statutes 2012, section 125A.32, is amended to read:
160.28 	125A.32 INDIVIDUALIZED FAMILY SERVICE PLAN (IFSP).
160.29 	(a) A team must participate in IFSP meetings to develop the IFSP. The team shall 
160.30 	include:
160.31 	(1) a parent or parents of the child, as defined in Code of Federal Regulations, 
160.32 	title 34, section 303.27;
160.33 	(2) other family members, as requested by the parent, if feasible to do so;
160.34 	(3) an advocate or person outside of the family, if the parent requests that the 
160.35 	person participate;
161.1 	(4) the service coordinator who has been working with the family since the 
161.2 	initial referral, or who has been designated by the public agency to be responsible for 
161.3 	implementation of the IFSP and coordination with other agencies including transition 
161.4 	services; and
161.5 	(5) a person or persons involved in conducting evaluations and assessments.; and
161.6 	(6) as appropriate, persons who will be providing early intervention services under 
161.7 	the plan to the child or family.
161.8 	(b) The IFSP must include:
161.9 	(1) information about the child's developmental status;
161.10 	(2) family information, with the consent of the family;
161.11 	(3) measurable results or major outcomes expected to be achieved by the child with 
161.12 	the family's assistance, that include developmentally appropriate preliteracy and language 
161.13 	skills for the child, and the criteria, procedures, and timelines;
161.14 	(4) specific early intervention services based on peer-reviewed research, to the 
161.15 	extent practicable, necessary to meet the unique needs of the child and the family to 
161.16 	achieve the outcomes;
161.17 	(5) payment arrangements, if any;
161.18 	(6) medical and other services that the child needs, but that are not required under 
161.19 	the Individual with Disabilities Education Act, United States Code, title 20, section 1471 
161.20 	et seq. (Part C, Public Law 108-446) including funding sources to be used in paying for 
161.21 	those services and the steps that will be taken to secure those services through public 
161.22 	or private sources;
161.23 	(7) dates and duration of early intervention services;
161.24 	(8) name of the service coordinator;
161.25 	(9) steps to be taken to support a child's transition from early infant and toddler
161.26 	 intervention services to other appropriate services, including convening a transition 
161.27 	conference at least 90 days or, at the discretion of all parties, not more than nine months 
161.28 	before the child is eligible for preschool services; and
161.29 	(10) signature of the parent and authorized signatures of the agencies responsible 
161.30 	for providing, paying for, or facilitating payment, or any combination of these, for early
161.31 	 infant and toddler intervention services.

161.32 	Sec. 13. Minnesota Statutes 2012, section 125A.33, is amended to read:
161.33 	125A.33 SERVICE COORDINATION.
161.34 	(a) The team responsible for the initial evaluation and the child- and family-directed 
161.35 	assessment and for developing the IFSP under section 125A.32, if appropriate, must 
162.1 	select a service coordinator to carry out service coordination activities on an interagency 
162.2 	basis. Service coordination must actively promote a family's capacity and competency 
162.3 	to identify, obtain, coordinate, monitor, and evaluate resources and services to meet the 
162.4 	family's needs. Service coordination activities include:
162.5 	(1) coordinating the performance of evaluations and assessments;
162.6 	(2) facilitating and participating in the development, review, and evaluation of 
162.7 	individualized family service plans;
162.8 	(3) assisting families in identifying available service providers;
162.9 	(4) coordinating and monitoring the delivery of available services;
162.10 	(5) informing families of the availability of advocacy services;
162.11 	(6) coordinating with medical, health, and other service providers;
162.12 	(7) facilitating the development of a transition plan to preschool, school, or if 
162.13 	appropriate, to other services, at least 90 days before the time the child is no longer 
162.14 	eligible for early infant and toddler intervention services or, at the discretion of all parties, 
162.15 	not more than nine months prior to the child's eligibility for preschool services third 
162.16 	birthday, if appropriate;
162.17 	(8) managing the early intervention record and submitting additional information to 
162.18 	the local primary agency at the time of periodic review and annual evaluations; and
162.19 	(9) notifying a local primary agency when disputes between agencies impact service 
162.20 	delivery required by an IFSP.
162.21 	(b) A service coordinator must be knowledgeable about children and families 
162.22 	receiving services under this section, requirements of state and federal law, and services 
162.23 	available in the interagency early childhood intervention system. The IFSP must include 
162.24 	the name of the services coordinator from the profession most relevant to the child's or 
162.25 	family's needs or who is otherwise qualified to carry out all applicable responsibilities 
162.26 	under the Individuals with Disabilities Education Act, United States Code, title 20, 
162.27 	sections 1471 to 1485 (Part C, Public Law 102-119), who will be responsible for 
162.28 	implementing the early intervention services identified in the child's IFSP, including 
162.29 	transition services, and coordination with other agencies and persons.

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

163.8 	Sec. 15. Minnesota Statutes 2012, section 125A.36, is amended to read:
163.9 	125A.36 PAYMENT FOR SERVICES.
163.10 	Core early intervention services must be provided at public expense with no cost to 
163.11 	parents. Parents must be requested to assist in the cost of additional early intervention 
163.12 	services by using third-party payment sources and applying for available resources. 
163.13 	Payment structures permitted under state law must be used to pay for additional early 
163.14 	intervention services. Parental financial responsibility must be clearly defined in the 
163.15 	IFSP. A parent's inability to pay must not prohibit a child from receiving needed early 
163.16 	intervention services.

163.17 	Sec. 16. Minnesota Statutes 2012, section 125A.43, is amended to read:
163.18 	125A.43 MEDIATION PROCEDURE.
163.19 	(a) The commissioner, or the commissioner's designee, of the state lead agency must 
163.20 	use federal funds to provide mediation for the activities in paragraphs (b) and (c).
163.21 	(b) A parent may resolve a dispute regarding issues in section 125A.42, paragraph 
163.22 	(b), clause (5), through mediation. If the parent chooses mediation, mediation must be 
163.23 	voluntary on the part of the parties. The parent and the public agencies must complete the 
163.24 	mediation process within 30 calendar days of the date the Office of Dispute Resolution
163.25 	 Department of Education receives a parent's written request for mediation unless a district 
163.26 	declines mediation. The mediation process may not be used to delay a parent's right 
163.27 	to a due process hearing. The resolution of thewritten, signed mediation agreement is 
163.28 	not binding on any party both parties and is enforceable in any state court of competent 
163.29 	jurisdiction or in a district court of the United States.
163.30 	(c) Resolution of a dispute through mediation, or other form of alternative dispute 
163.31 	resolution, is not limited to formal disputes arising from the objection of a parent or 
163.32 	guardian and is not limited to the period following a request for a due process hearing.
163.33 	(d) The commissioner shall provide training and resources to school districts to 
163.34 	facilitate early identification of disputes and access to mediation.
164.1 	(e) The local primary agency may request mediation on behalf of involved agencies 
164.2 	when there are disputes between agencies regarding responsibilities to coordinate, provide, 
164.3 	pay for, or facilitate payment for early intervention services.

164.4 	Sec. 17. Minnesota Statutes 2012, section 125A.76, subdivision 1, is amended to read:
164.5 		Subdivision 1.Definitions. (a) For the purposes of this section and section 125A.79, 
164.6 	the definitions in this subdivision apply.
164.7 	(a) (b) "Basic revenue" has the meaning given it in section 126C.10, subdivision 2. 
164.8 	For the purposes of computing basic revenue pursuant to this section, each child with a 
164.9 	disability shall be counted as prescribed in section 126C.05, subdivision 1.
164.10 	(b) (c) "Essential personnel" means teachers, cultural liaisons, related services, and 
164.11 	support services staff providing services to students. Essential personnel may also include 
164.12 	special education paraprofessionals or clericals providing support to teachers and students 
164.13 	by preparing paperwork and making arrangements related to special education compliance 
164.14 	requirements, including parent meetings and individualized education programs. Essential 
164.15 	personnel does not include administrators and supervisors.
164.16 	(c) (d) "Average daily membership" has the meaning given it in section 126C.05.
164.17 	(d) (e) "Program growth factor" means 1.046 for fiscal year years 2012 though 2015, 
164.18 	1.0 for fiscal year 2016, 1.046 for fiscal year 2017, and the product of 1.046 and the 
164.19 	program growth factor for the previous year for fiscal year 2018 and later.
164.20 	(f) "Nonfederal special education expenditure" means all direct expenditures that 
164.21 	are necessary and essential to meet the district's obligation to provide special instruction 
164.22 	and services to children with a disability according to sections 124D.454, 125A.03 to 
164.23 	125A.24, 125A.259 to 125A.48, and 125A.65 as submitted by the district and approved by 
164.24 	the department under section 125A.75, subdivision 4, excluding expenditures:
164.25 	(1) reimbursed with federal funds;
164.26 	(2) reimbursed with other state aids under this chapter;
164.27 	(3) for general education costs of serving students with a disability;
164.28 	(4) for facilities;
164.29 	(5) for pupil transportation; and
164.30 	(6) for postemployment benefits.
164.31 	(g) "Old formula special education expenditures" means expenditures eligible for 
164.32 	revenue under Minnesota Statutes 2012, section 125A.76, subdivision 2.
164.33 	For the Minnesota State Academy for the Deaf and the Minnesota State Academy for the 
164.34 	Blind, expenditures are limited to the salary and fringe benefits of one-to-one instructional 
165.1 	and behavior management aides assigned to a child attending the academy, if the aides are 
165.2 	required by the child's individualized education program.
165.3 	(h) "Cross subsidy reduction aid percentage" means 1.0 percent for fiscal year 2014 
165.4 	and 4.48 percent for fiscal year 2015.
165.5 	(i) "Cross subsidy reduction aid limit" means $20 for fiscal year 2014 and $48 
165.6 	for fiscal year 2015.
165.7 	(j) "Special education aid increase limit" means $80 for fiscal year 2016, $100 for 
165.8 	fiscal year 2017, and, for fiscal year 2018 and later, the sum of the special education aid 
165.9 	increase limit for the previous fiscal year and $40.

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

165.11 	Sec. 18. Minnesota Statutes 2012, section 125A.76, is amended by adding a 
165.12 	subdivision to read:
165.13 		Subd. 2a.Special education initial aid. For fiscal year 2016 and later, a district's 
165.14 	special education initial aid equals the sum of:
165.15 	(1) the lesser of 62 percent of the district's old formula special education 
165.16 	expenditures for the prior fiscal year, 50 percent of the district's nonfederal special 
165.17 	education expenditures for the prior year, or 56 percent of the product of the sum of the 
165.18 	following amounts, computed using prior fiscal year data, and the program growth factor:
165.19 	(i) the product of the district's average daily membership served and the sum of:
165.20 	(A) $450; plus
165.21 	(B) $400 times the ratio of the sum of the number of pupils enrolled on October 1 
165.22 	who are eligible to receive free lunch plus one-half of the pupils enrolled on October 1 
165.23 	who are eligible to receive reduced-price lunch to the total October 1 enrollment; plus 
165.24 	(C) .008 times the district' s average daily membership served; plus
165.25 	(ii) $10,400 times the December 1 child count for the primary disability areas of 
165.26 	autism spectrum disorders, developmental delay, and severely multiply impaired; plus
165.27 	(iii) $18,000 times the December 1 child count for the primary disability areas of 
165.28 	deaf and hard-of-hearing and emotional or behavioral disorders; plus
165.29 	(iv) $27,000 times the December 1 child count for the primary disability areas of 
165.30 	developmentally cognitive mild-moderate, developmentally cognitive severe-profound, 
165.31 	physically impaired, visually impaired, and deafblind; plus
165.32 	(2) the cost of providing transportation services for children with disabilities under 
165.33 	section 123B.92, subdivision 1, paragraph (b), clause (4).

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

166.1 	Sec. 19. Minnesota Statutes 2012, section 125A.76, is amended by adding a 
166.2 	subdivision to read:
166.3 		Subd. 2b.Cross subsidy reduction aid. For fiscal years 2014 and 2015, the cross 
166.4 	subsidy reduction aid for a school district, not including a charter school, equals the lesser 
166.5 	of (a) the product of the cross subsidy reduction aid limit and the district's average daily 
166.6 	membership served or (b) the product of the cross subsidy reduction aid percentage, the 
166.7 	district's average daily membership served and the sum of:
166.8 	(1) $450; plus
166.9 	(2) $400 times the ratio of the sum of the number of pupils enrolled on October 1 
166.10 	who are eligible to receive free lunch plus one-half of the pupils enrolled on October 1 
166.11 	who are eligible to receive reduced-price lunch to the total October 1 enrollment; plus
166.12 	(3) .008 times the district's average daily membership served; plus
166.13 	(i) $10,100 times the December 1 child count for the primary disability areas of 
166.14 	autism spectrum disorders, developmental delay, and severely multiply impaired; plus
166.15 	(ii) $17,500 times the December 1 child count for the primary disability areas of 
166.16 	deaf and hard-of-hearing and emotional or behavioral disorders; plus
166.17 	(iii) $26,000 times the December 1 child count for the primary disability areas of 
166.18 	developmentally cognitive mild-moderate, developmentally cognitive severe-profound, 
166.19 	physically impaired, visually impaired, and deafblind.

166.20 	Sec. 20. Minnesota Statutes 2012, section 125A.76, is amended by adding a 
166.21 	subdivision to read:
166.22 		Subd. 2c.Special education aid. (a) For fiscal year 2014 and fiscal year 2015, a 
166.23 	district's special education aid equals the sum of the district's special education initial aid 
166.24 	under subdivision 2a, the district's cross subsidy reduction aid under subdivision 2b, and 
166.25 	the district's excess cost aid under section 125A.79, subdivision 5.
166.26 	(b) For fiscal year 2016 and later, a district's special education aid equals the sum of 
166.27 	the district's special education initial aid under subdivision 2a and the district's excess cost 
166.28 	aid under section 125A.79, subdivision 5.
166.29 	(c) Notwithstanding paragraph (b), for fiscal year 2016, the special education aid for 
166.30 	a school district must not exceed the sum of the special education aid the district would 
166.31 	have received for fiscal year 2016 under Minnesota Statutes 2012, sections 125A.76 
166.32 	and 125A.79, as adjusted according to Minnesota Statutes 2012, sections 125A.11 and 
166.33 	127A.47, subdivision 7, and the product of the district's average daily membership served 
166.34 	and the special education aid increase limit.
167.1 	(d) Notwithstanding paragraph (b), for fiscal year 2017 and later, the special education 
167.2 	aid for a school district must not exceed the sum of: (i) the product of the district's average 
167.3 	daily membership served and the special education aid increase limit and (ii) the product 
167.4 	of the sum of the special education aid the district would have received for fiscal year 2016 
167.5 	under Minnesota Statutes 2012, sections 125A.76 and 125A.79, as adjusted according 
167.6 	to Minnesota Statutes 2012, sections 125A.11 and 127A.47, subdivision 7, the ratio of 
167.7 	the district's average daily membership served for the current fiscal year to the district's 
167.8 	average daily membership served for fiscal year 2016, and the program growth factor.
167.9 	(e) Notwithstanding paragraph (b), for fiscal year 2016 and later the special education 
167.10 	aid for a school district, not including a charter school, must not be less than the lesser of 
167.11 	(1) the district's nonfederal special education expenditures for that fiscal year or (2) the 
167.12 	product of the sum of the special education aid the district would have received for fiscal 
167.13 	year 2016 under Minnesota Statutes 2012, sections 125A.76 and 125A.79, as adjusted 
167.14 	according to Minnesota Statutes 2012, sections 125A.11 and 127A.47, subdivision 7, the 
167.15 	ratio of the district's adjusted daily membership for the current fiscal year to the district's 
167.16 	average daily membership for fiscal year 2016, and the program growth factor.

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

167.18 	Sec. 21. Minnesota Statutes 2012, section 125A.76, is amended by adding a 
167.19 	subdivision to read:
167.20 		Subd. 2d.Statewide average expenditure. By January 15 of each year, the 
167.21 	department must calculate the statewide average special education expenditure per 
167.22 	December 1 child count for the prior fiscal year by primary disability area and provide that 
167.23 	information to all districts. By January 15 of each odd-numbered year, the commissioner 
167.24 	must identify options for aligning the assignment of disability areas to the categories and 
167.25 	the rates for each category in subdivision 2a, clause (1), with the latest expenditure data and 
167.26 	submit these options to the legislative committees with jurisdiction over education finance.

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

167.28 	Sec. 22. Minnesota Statutes 2012, section 125A.76, subdivision 4a, is amended to read:
167.29 		Subd. 4a.Adjustments for tuition reciprocity with adjoining states. (a) If an 
167.30 	agreement is reached between the state of Minnesota and an adjoining state pursuant to 
167.31 	section 124D.041 that requires a special education tuition payment from the state of 
167.32 	Minnesota to the adjoining state, the tuition payment shall be made from the special 
168.1 	education aid appropriation for that year, and the state total special education aid under 
168.2 	subdivision 4 shall be reduced by the amount of the payment.
168.3 	(b) If an agreement is reached between the state of Minnesota and an adjoining state 
168.4 	pursuant to section 124D.041 that requires a special education tuition payment from 
168.5 	an adjoining state to the state of Minnesota, the special education aid appropriation for 
168.6 	that year and the state total special education aid under subdivision 4 shall be increased 
168.7 	by the amount of the payment.
168.8 	(c) (b) If an agreement is reached between the state of Minnesota and an adjoining 
168.9 	state pursuant to section 124D.041 that requires special education tuition payments to 
168.10 	be made between the two states and not between districts in the two states, the special 
168.11 	education aid for a Minnesota school district serving a student with a disability from the 
168.12 	adjoining state shall be calculated according to section 127A.47, subdivision 7, except that 
168.13 	no reduction shall be made in the special education aid paid to the resident district.

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

168.15 	Sec. 23. Minnesota Statutes 2012, section 125A.76, subdivision 8, is amended to read:
168.16 		Subd. 8.Special education forecast maintenance of effort. (a) If, on the basis of 
168.17 	a forecast of general fund revenues and expenditures under section 16A.103, the state's 
168.18 	expenditures for special education and related services for children with disabilities from 
168.19 	nonfederal sources for a fiscal year, including special education aid under section 125A.76; 
168.20 	special education excess cost aid under section 125A.76, subdivision 7 subdivision 2c; 
168.21 	travel for home-based services under section 125A.75, subdivision 1; aid for students with 
168.22 	disabilities under section 125A.75, subdivision 3; court-placed special education under 
168.23 	section 125A.79, subdivision 4; out-of-state tuition under section 125A.79, subdivision 8; 
168.24 	and direct expenditures by state agencies are projected to be less than the amount required 
168.25 	to meet federal special education maintenance of effort, the reimbursement percentages 
168.26 	for excess cost aid under section 125A.79, subdivision 5, must be increased as required to 
168.27 	ensure that the additional amount required to meet federal special education maintenance of 
168.28 	effort is added to the state total special education aid in section 125A.76, subdivision 4 2c.
168.29 	(b) If, on the basis of a forecast of general fund revenues and expenditures under 
168.30 	section 16A.103, expenditures in the programs in paragraph (a) are projected to be greater 
168.31 	than previously forecast for an enacted budget, and an addition to state total special 
168.32 	education aid has been made under paragraph (a), the state total special education aid 
168.33 	must be reduced by the lesser of the amount of the expenditure increase or the amount 
168.34 	previously added to state total special education aid in section 125A.76, subdivision 4 2c.
169.1 	(c) For the purpose of this section, "previously forecast for an enacted budget" means 
169.2 	the allocation of funding for these programs in the most recent forecast of general fund 
169.3 	revenues and expenditures or the act appropriating money for these programs, whichever 
169.4 	occurred most recently. It does not include planning estimates for a future biennium.
169.5 	(d) If the amount of special education aid is adjusted in accordance with this 
169.6 	subdivision, the commissioner of education shall notify the chairs of the legislative 
169.7 	committees having jurisdiction over kindergarten through grade 12 education regarding 
169.8 	the amount of the adjustment and provide an explanation of the federal maintenance of 
169.9 	effort requirements.

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

169.11 	Sec. 24. Minnesota Statutes 2012, section 125A.78, subdivision 2, is amended to read:
169.12 		Subd. 2.Initial aid adjustment. For the fiscal year after approval of a district's 
169.13 	application, and thereafter, the special education initial aid under section 125A.76, 
169.14 	subdivision 1, must be computed based on activities defined as reimbursable under 
169.15 	Department of Education rules for special education and nonspecial education students, 
169.16 	and additional activities as detailed and approved by the commissioner.

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

169.18 	Sec. 25. Minnesota Statutes 2012, section 125A.79, subdivision 1, is amended to read:
169.19 		Subdivision 1.Definitions. For the purposes of this section, the definitions in this 
169.20 	subdivision apply.
169.21 	(a) "Unreimbursed old formula special education cost expenditures" means the 
169.22 	sum of the following:
169.23 	(1) old formula special education expenditures for teachers' salaries, contracted 
169.24 	services, supplies, equipment, and transportation services eligible for revenue under 
169.25 	section 125A.76 the prior fiscal year; plus minus
169.26 	(2) expenditures for tuition bills received under sections 125A.03 to 125A.24 and 
169.27 	125A.65 for services eligible for revenue under section 125A.76, subdivision 2; minus
169.28 	(3) revenue for teachers' salaries, contracted services, supplies, equipment, and 
169.29 	transportation services (2) special education initial aid under section 125A.76;, subdivision 
169.30 	2a; minus
169.31 	(4) tuition receipts under sections 125A.03 to 125A.24 and 125A.65 for services 
169.32 	eligible for revenue under section 125A.76, subdivision 2.
170.1 	(3) the amount of general education revenue and referendum equalization aid for the 
170.2 	prior fiscal year attributable to pupils receiving special instruction and services outside the 
170.3 	regular classroom for more than 60 percent of the school day for the portion of time the 
170.4 	pupils receive special instruction and services outside the regular classroom, excluding 
170.5 	portions attributable to district and school administration, district support services, 
170.6 	operations and maintenance, capital expenditures, and pupil transportation.
170.7 	(b) "Unreimbursed nonfederal special education expenditures" means:
170.8 	(1) nonfederal special education expenditures for the prior fiscal year; minus
170.9 	(2) special education initial aid under section 125A.76, subdivision 2a; minus
170.10 	(3) the amount of general education revenue and referendum equalization aid for the 
170.11 	prior fiscal year attributable to pupils receiving special instruction and services outside the 
170.12 	regular classroom for more than 60 percent of the school day for the portion of time the 
170.13 	pupils receive special instruction and services outside of the regular classroom, excluding 
170.14 	portions attributable to district and school administration, district support services, 
170.15 	operations and maintenance, capital expenditures, and pupil transportation.
170.16 	(b) (c) "General revenue" for a school district means the sum of the general 
170.17 	education revenue according to section 126C.10, subdivision 1, excluding alternative 
170.18 	teacher compensation revenue, minus transportation sparsity revenue minus total operating 
170.19 	capital revenue. "General revenue" for a charter school means the sum of the general 
170.20 	education revenue according to section 124D.11, subdivision 1, and transportation revenue 
170.21 	according to section 124D.11, subdivision 2, excluding alternative teacher compensation 
170.22 	revenue, minus referendum equalization aid minus transportation sparsity revenue minus 
170.23 	operating capital revenue.
170.24 	(c) "Average daily membership" has the meaning given it in section 126C.05.
170.25 	(d) "Program growth factor" means 1.02 for fiscal year 2012 and later.

170.26 	Sec. 26. Minnesota Statutes 2012, section 125A.79, subdivision 5, is amended to read:
170.27 		Subd. 5.Initial excess cost aid. For fiscal years 2008 2016 and later, a district's 
170.28 	initial excess cost aid equals the greater of:
170.29 	(1) 75 56 percent of the difference between (i) the district's unreimbursed nonfederal
170.30 	 special education cost expenditures and (ii) 4.36 7.0 percent of the district's general 
170.31 	revenue; or
170.32 	(2) 62 percent of the difference between (i) the district's unreimbursed old formula 
170.33 	special education expenditures and (ii) 2.5 percent of the district's general revenue; or
170.34 	(2) (3) zero.

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

171.1 	Sec. 27. Minnesota Statutes 2012, section 125A.79, subdivision 8, is amended to read:
171.2 		Subd. 8.Out-of-state tuition. For children who are residents of the state, receive 
171.3 	services under section 125A.76, subdivisions 1 and 2, and are placed in a care and 
171.4 	treatment facility by court action in a state that does not have a reciprocity agreement with 
171.5 	the commissioner under section 125A.155, the resident school district shall submit the 
171.6 	balance of the tuition bills, minus the general education revenue, excluding basic skills 
171.7 	revenue and alternative teacher compensation revenue, and referendum equalization aid 
171.8 	attributable to the pupil, calculated using the resident district's average general education 
171.9 	revenue and referendum equalization aid per adjusted pupil unit minus the special 
171.10 	education contracted services initial revenue attributable to the pupil.

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

171.12 	Sec. 28. SPECIAL EDUCATION CASE LOADS TASK FORCE.
 171.13 		Subdivision 1.Members. The commissioner shall establish and appoint a special 
171.14 	education case loads task force consisting of at least ten members who will provide equal 
171.15 	representation from school districts, including special education teachers, and advocacy 
171.16 	organizations, including parents of children with disabilities.
171.17 		Subd. 2.Duties. The special education case loads task force shall develop 
171.18 	recommendations for the appropriate numbers of students with disabilities that may be 
171.19 	assigned to a teacher both with and without paraprofessional support in the classroom and 
171.20 	for cost-effective and efficient strategies and structures for improving student outcomes. 
171.21 	The task force must also identify state rules that should be revised to align with state statute.
171.22 		Subd. 3.Report. The task force must submit a report by February 15, 2014, to the 
171.23 	education policy and finance committees of the legislature recommending appropriate 
171.24 	case loads for teachers of school-age children in all federal settings, including educational 
171.25 	service alternatives and proposed state rule revisions.
171.26 		Subd. 4.Expiration. The task force expires February 16, 2014.

171.27 	Sec. 29. RULEMAKING AUTHORITY.
 171.28 	The commissioner of education shall use the expedited rulemaking process in 
171.29 	Minnesota Statutes, section 14.389, to amend Minnesota Rules related to providing 
171.30 	special education under Part C of the Individuals with Disabilities Education Act. The 
171.31 	commissioner shall amend the rules to conform to new federal regulations in Code 
171.32 	of Federal Regulations, title 34, part 303, including definitions of and procedures for 
171.33 	evaluation and assessment, including assessment of the child and family, initial evaluation 
171.34 	and assessment, the use of native language, the use of informed clinical opinion as an 
172.1 	independent basis to establish eligibility, and transition of a toddler from Part C consistent 
172.2 	with Code of Federal Regulations, title 34, sections 303.24, 303.25, and 303.321, only 
172.3 	to the extent necessary to avoid loss of federal funds. The authority to use the expedited 
172.4 	process to amend rules specified in this section expires July 1, 2014. Rule amendments 
172.5 	adopted under the expedited process before that date remain in effect unless further 
172.6 	amended under the rulemaking procedures in Minnesota Statutes, chapter 14.

172.7 	Sec. 30. REPORT ON HOMELESS CHILDREN SERVED.
 172.8 	The commissioner of education must collect statistics on the number of homeless 
172.9 	children who have received Part C services and must annually report those results to 
172.10 	the legislature by July 1.

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

172.12 	Sec. 31. APPROPRIATIONS.
 172.13 		Subdivision 1.Department of Education. The sums indicated in this section are 
172.14 	appropriated from the general fund to the Department of Education for the fiscal years 
172.15 	designated.
172.16 		Subd. 2.Special education; regular. For special education aid under Minnesota 
172.17 	Statutes, section 125A.75:

172.18		$
	997,725,000
	.....
	2014
	
172.19		$
	1,108,211,000
	.....
	2015
	
172.20 	The 2014 appropriation includes $118,232,000 for 2013 and $802,884,000 for 2014.
172.21 	The 2015 appropriation includes $169,929,000 for 2014 and $938,282,000 for 2015.
172.22 		Subd. 3.Aid for children with disabilities. For aid under Minnesota Statutes, 
172.23 	section 125A.75, subdivision 3, for children with disabilities placed in residential facilities 
172.24 	within the district boundaries for whom no district of residence can be determined:

172.25		$
	1,655,000
	.....
	2014
	
172.26		$
	1,752,000
	.....
	2015
	
172.27 	If the appropriation for either year is insufficient, the appropriation for the other 
172.28 	year is available.
172.29 		Subd. 4.Travel for home-based services. For aid for teacher travel for home-based 
172.30 	services under Minnesota Statutes, section 125A.75, subdivision 1:

172.31		$
	345,000
	.....
	2014
	
172.32		$
	355,000
	.....
	2015
	
173.1 	The 2014 appropriation includes $45,000 for 2013 and $300,000 for 2014.
173.2 	The 2015 appropriation includes $47,000 for 2014 and $308,000 for 2015.
173.3 		Subd. 5.Special education; excess costs. For excess cost aid under Minnesota 
173.4 	Statutes, section 125A.79, subdivision 7:

173.5		$
	42,030,000
	.....
	2014
	
173.6 	The 2014 appropriation includes $42,030,000 for 2013 and $0 for 2014.
173.7 		Subd. 6.Court-placed special education revenue. For reimbursing serving school 
173.8 	districts for unreimbursed eligible expenditures attributable to children placed in the serving 
173.9 	school district by court action under Minnesota Statutes, section 125A.79, subdivision 4:

173.10		$
	54,000
	.....
	2014
	
173.11		$
	55,000
	.....
	2015
	
173.12 		Subd. 7.Special education out-of-state tuition. For special education out-of-state 
173.13 	tuition according to Minnesota Statutes, section 125A.79, subdivision 8:

173.14		$
	250,000
	.....
	2014
	
173.15		$
	250,000
	.....
	2015
	
173.16 		Subd. 8.Special education paperwork cost savings. For special education 
173.17 	paperwork cost savings:

173.18		$
	1,763,000
	.....
	2014
	
173.19 	For a transfer to MNIT. This appropriation is available in fiscal year 2015 if not 
173.20 	expended.

173.21 	Sec. 32.  REPEALER.
 173.22 	Minnesota Statutes 2012, sections 124D.454, subdivisions 3, 10, and 11; 125A.35, 
173.23 	subdivisions 4 and 5; 125A.76, subdivisions 2, 4, 5, and 7; and 125A.79, subdivisions 6 
173.24 	and 7, are repealed for fiscal year 2016 and later.

173.25 	ARTICLE 6
173.26 	FACILITIES AND TECHNOLOGY

173.27 	Section 1. Minnesota Statutes 2012, section 123B.53, subdivision 5, is amended to read:
173.28 		Subd. 5.Equalized debt service levy. (a) The equalized debt service levy of a 
173.29 	district equals the sum of the first tier equalized debt service levy and the second tier 
173.30 	equalized debt service levy.
174.1 	(b) A district's first tier equalized debt service levy equals the district's first tier debt 
174.2 	service equalization revenue times the lesser of one or the ratio of:
174.3 	(1) the quotient derived by dividing the adjusted net tax capacity of the district for 
174.4 	the year before the year the levy is certified by the adjusted pupil units in the district for 
174.5 	the school year ending in the year prior to the year the levy is certified; to
174.6 	(2) $3,049 $3,550.
174.7 	(c) A district's second tier equalized debt service levy equals the district's second tier 
174.8 	debt service equalization revenue times the lesser of one or the ratio of:
174.9 	(1) the quotient derived by dividing the adjusted net tax capacity of the district for 
174.10 	the year before the year the levy is certified by the adjusted pupil units in the district for 
174.11 	the school year ending in the year prior to the year the levy is certified; to
174.12 	(2) $7,622 $7,900.

174.13 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2015 and 
174.14 	later.

174.15 	Sec. 2. Minnesota Statutes 2012, section 123B.54, is amended to read:
174.16 	123B.54 DEBT SERVICE APPROPRIATION.
174.17 	(a) $21,727,000 in fiscal year 2014 and $24,201,000 in fiscal year 2015 and later 
174.18 	are The amount necessary to make debt service equalization aid payments under section 
174.19 	123B.53 is annually appropriated from the general fund to the commissioner of education 
174.20 	for payment of debt service equalization aid under section 123B.53.
174.21 	(b) The appropriations in paragraph (a) must be reduced by the amount of any 
174.22 	money specifically appropriated for the same purpose in any year from any state fund.

174.23 	Sec. 3. Minnesota Statutes 2012, section 123B.57, subdivision 4, is amended to read:
174.24 		Subd. 4.Health and safety levy. To receive health and safety revenue, a district 
174.25 	may levy an amount equal to the district's health and safety revenue as defined in 
174.26 	subdivision 3 multiplied by the lesser of one, or the ratio of the quotient derived by 
174.27 	dividing the adjusted net tax capacity of the district for the year preceding the year the 
174.28 	levy is certified by the adjusted marginal cost pupil units in the district for the school year 
174.29 	to which the levy is attributable, to $2,796 $3,165.

174.30 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
174.31 	and later.

174.32 	Sec. 4. Minnesota Statutes 2012, section 123B.591, subdivision 2, is amended to read:
175.1 		Subd. 2.Deferred maintenance revenue. The deferred maintenance revenue for 
175.2 	an eligible school district equals the product of $60 $64 times the adjusted marginal cost
175.3 	 pupil units for the school year times the lesser of one or the ratio of the district's average 
175.4 	age of building space to 35 years.

175.5 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
175.6 	and later.

175.7 	Sec. 5. Minnesota Statutes 2012, section 123B.591, subdivision 3, is amended to read:
175.8 		Subd. 3.Deferred maintenance levy. To obtain deferred maintenance revenue for 
175.9 	fiscal year 2008 and later, a district may levy an amount not more than the product of its 
175.10 	deferred maintenance revenue for the fiscal year times the lesser of one or the ratio of its 
175.11 	adjusted net tax capacity per adjusted marginal cost pupil unit to $5,621 $5,965.

175.12 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
175.13 	and later.

175.14 	Sec. 6. Minnesota Statutes 2012, section 125B.26, subdivision 4, is amended to read:
175.15 		Subd. 4.District aid. For fiscal year 2006 and later, a district, charter school, 
175.16 	or intermediate school district's Internet access equity aid equals the district, charter 
175.17 	school, or intermediate school district's approved cost for the previous fiscal year 
175.18 	according to subdivision 1 exceeding $15 $16 times the district's adjusted marginal 
175.19 	cost pupil units for the previous fiscal year or no reduction if the district is part of an 
175.20 	organized telecommunications access cluster. Equity aid must be distributed to the 
175.21 	telecommunications access cluster for districts, charter schools, or intermediate school 
175.22 	districts that are members of the cluster or to individual districts, charter schools, or 
175.23 	intermediate school districts not part of a telecommunications access cluster.

175.24 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
175.25 	and later.

175.26 	Sec. 7. Minnesota Statutes 2012, section 128D.11, subdivision 3, is amended to read:
175.27 		Subd. 3.No election. Subject to the provisions of subdivisions 7 to 10, the school 
175.28 	district may also by a two-thirds majority vote of all the members of its board of education 
175.29 	and without any election by the voters of the district, issue and sell in each calendar year 
175.30 	general obligation bonds of the district in an amount not to exceed 5-1/10 per cent of the 
175.31 	net tax capacity of the taxable property in the district (plus, for calendar years 1990 to 
175.32 	2003, an amount not to exceed $7,500,000, and for calendar years year 2004 to 2016 and 
176.1 	later, an amount not to exceed $15,000,000; with an additional provision that any amount 
176.2 	of bonds so authorized for sale in a specific year and not sold can be carried forward and 
176.3 	sold in the year immediately following).

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

176.5 	Sec. 8. Laws 2007, chapter 146, article 4, section 12, is amended to read:
176.6 	Sec. 12. BONDING AUTHORIZATION.
 176.7 	To provide funds for the acquisition or betterment of school facilities, Independent 
176.8 	School District No. 625, St. Paul, may by two-thirds majority vote of all the members of 
176.9 	the board of directors issue general obligation bonds in one or more series for calendar 
176.10 	years 2008 through 2016, as provided in this section. The aggregate principal amount of 
176.11 	any bonds issued under this section for each calendar year must not exceed $15,000,000. 
176.12 	Issuance of the bonds is not subject to Minnesota Statutes, section 475.58 or 475.59. 
176.13 	The bonds must otherwise be issued as provided in Minnesota Statutes, chapter 475. 
176.14 	The authority to issue bonds under this section is in addition to any bonding authority 
176.15 	authorized by Minnesota Statutes, chapter 123B, or other law. The amount of bonding 
176.16 	authority authorized under this section must be disregarded in calculating the bonding 
176.17 	limit of Minnesota Statutes, chapter 123B, or any other law other than Minnesota Statutes, 
176.18 	section 475.53, subdivision 4.

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

176.20 	Sec. 9. SCHOOL FACILITIES FINANCING WORK GROUP.
 176.21 	The commissioner of education must convene a working group to develop 
176.22 	recommendations for reforming the financing of prekindergarten through grade 12 
176.23 	education facilities to create adequate, equitable, and sustainable financing of public 
176.24 	school facilities throughout the state. Membership on the working group must include 
176.25 	representatives of school superintendents, business managers, school facilities directors, 
176.26 	and school boards. The scope of the working group recommendations must include 
176.27 	funding options for facilities projects currently financed with debt service, alternative 
176.28 	facilities, deferred maintenance, health and safety, building lease, and operating capital 
176.29 	revenues. The commissioner, on behalf of the working group, must submit a report to the 
176.30 	chairs and ranking minority members of the legislative committees and divisions with 
176.31 	primary jurisdiction over kindergarten through grade 12 education finance by February 1, 
176.32 	2014, recommending how best to allocate funds for school facilities.

177.1 	Sec. 10. CYRUS AND MORRIS SCHOOL DISTRICT CONSOLIDATION.
 177.2 		Subdivision 1.Purpose. The legislature finds that an orderly, voluntary 
177.3 	consolidation of Independent School Districts Nos. 611, Cyrus, and 769, Morris, promotes 
177.4 	the well-being of the students and increases educational efficiency in those school districts.
177.5 		Subd. 2.Remediation costs. Independent School District No. 611, Cyrus, may 
177.6 	identify all health and safety remediation costs related to the demolition of the Cyrus 
177.7 	school building and submit those amounts to the commissioner of education for approval. 
177.8 	Any approved costs may be included either in the district's health and safety plan or in the 
177.9 	bonding authority authorized under subdivision 3.
177.10 		Subd. 3.Facility bonds. Independent School District No. 611, Cyrus, may issue 
177.11 	general obligation bonds without an election under Minnesota Statutes, chapter 475, after 
177.12 	a public meeting of the school board with notice given by mail according to Minnesota 
177.13 	Statutes, section 123B.09, subdivision 11, in an amount not to exceed $1,000,000 
177.14 	approved by the commissioner of education for the costs associated with demolishing the 
177.15 	Cyrus school building. The bonds must be repaid within ten years of issuance. Any excess 
177.16 	bond proceeds after bonds are repaid must be credited back to the taxpayers of the former 
177.17 	Independent School District No. 611, Cyrus.
177.18 		Subd. 4.Reorganization operating debt determined. Independent School District 
177.19 	No. 611, Cyrus, must estimate its reorganization operating debt according to Minnesota 
177.20 	Statutes, section 123B.82, and submit that amount to the commissioner of education 
177.21 	for approval.
177.22 		Subd. 5.Reorganization operating debt bonds. Independent School District No. 
177.23 	611, Cyrus, may issue general obligation bonds without an election under Minnesota 
177.24 	Statutes, chapter 475, after a public meeting of the school board with notice given by mail 
177.25 	according to Minnesota Statutes, section 123B.09, subdivision 11, in an amount not to 
177.26 	exceed the reorganization operating debt approved by the commissioner of education 
177.27 	under subdivision 4. The bonds must be repaid within six years of issuance.
177.28 		Subd. 6.Repayment. The bonded debt issued under this section remains payable 
177.29 	by the taxable property located within the boundaries of former Independent School  
177.30 	District No. 611, Cyrus.

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

177.32 	Sec. 11. ELEVATOR REPAIR LEVY; NORMAN COUNTY WEST SCHOOL 
177.33 	DISTRICT.
 177.34 	For taxes payable in 2015 and 2016, Independent School District No. 2527, 
177.35 	Norman County West, may levy for an amount not to exceed $27,500 in each year. The 
178.1 	proceeds of this levy must be used to refurbish an existing elevator with new electrical and 
178.2 	mechanical components.

178.3 	EFFECTIVE DATE. This section is effective for taxes payable in 2015 and 2016.

178.4 	Sec. 12. APPROPRIATIONS.
 178.5 		Subdivision 1.Department of Education. The sums indicated in this section are 
178.6 	appropriated from the general fund to the Department of Education for the fiscal years 
178.7 	designated.
178.8 		Subd. 2.Health and safety revenue. For health and safety aid according to 
178.9 	Minnesota Statutes, section 123B.57, subdivision 5:

178.10		$
	463,000
	.....
	2014
	
178.11		$
	434,000
	.....
	2015
	
178.12 	The 2014 appropriation includes $26,000 for 2013 and $437,000 for 2014.
178.13 	The 2015 appropriation includes $68,000 for 2014 and $366,000 for 2015.
178.14 		Subd. 3.Debt service equalization. For debt service aid according to Minnesota 
178.15 	Statutes, section 123B.53, subdivision 6:

178.16		$
	19,083,000
	.....
	2014
	
178.17		$
	25,060,000
	.....
	2015
	
178.18 	The 2014 appropriation includes $2,397,000 for 2013 and $16,686,000 for 2014.
178.19 	The 2015 appropriation includes $2,626,000 for 2014 and $22,434,000 for 2015.
178.20 		Subd. 4.Alternative facilities bonding aid. For alternative facilities bonding aid, 
178.21 	according to Minnesota Statutes, section 123B.59, subdivision 1:

178.22		$
	19,287,000
	.....
	2014
	
178.23		$
	19,287,000
	.....
	2015
	
178.24 	The 2014 appropriation includes $2,623,000 for 2013 and $16,664,000 for 2014.
178.25 	The 2015 appropriation includes $2,623,000 for 2014 and $16,664,000 for 2015.
178.26 		Subd. 5.Equity in telecommunications access. For equity in telecommunications 
178.27 	access:

178.28		$
	3,750,000
	.....
	2014
	
178.29		$
	3,750,000
	.....
	2015
	
178.30 	If the appropriation amount is insufficient, the commissioner shall reduce the 
178.31 	reimbursement rate in Minnesota Statutes, section 125B.26, subdivisions 4 and 5, and the 
178.32 	revenue for fiscal years 2014 and 2015 shall be prorated.
179.1 	Any balance in the first year does not cancel but is available in the second year.
179.2 		Subd. 6.Deferred maintenance aid. For deferred maintenance aid, according to 
179.3 	Minnesota Statutes, section 123B.591, subdivision 4:

179.4		$
	3,564,000
	.....
	2014
	
179.5		$
	3,730,000
	.....
	2015
	
179.6 	The 2014 appropriation includes $456,000 for 2013 and $3,108,000 for 2014.
179.7 	The 2015 appropriation includes $489,000 for 2014 and $3,241,000 for 2015.

179.8 	ARTICLE 7
179.9 	NUTRITION, LIBRARIES, AND ACCOUNTING

179.10 	Section 1. Minnesota Statutes 2012, section 123B.75, subdivision 5, is amended to read:
179.11 		Subd. 5.Levy recognition. (a) For fiscal years 2009 and 2010, in June of each 
179.12 	year, the school district must recognize as revenue, in the fund for which the levy was 
179.13 	made, the lesser of:
179.14 	(1) the sum of May, June, and July school district tax settlement revenue received in 
179.15 	that calendar year, plus general education aid according to section 126C.13, subdivision 
179.16 	4, received in July and August of that calendar year; or
179.17 	(2) the sum of:
179.18 	(i) 31 percent of the referendum levy certified according to section 126C.17, in 
179.19 	calendar year 2000; and
179.20 	(ii) the entire amount of the levy certified in the prior calendar year according to 
179.21 	section 124D.86, subdivision 4, for school districts receiving revenue under sections 
179.22 	124D.86, subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, paragraph (a), 
179.23 	and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; and 126C.48, subdivision 6; plus
179.24 	(iii) zero percent of the amount of the levy certified in the prior calendar year for the 
179.25 	school district's general and community service funds, plus or minus auditor's adjustments, 
179.26 	not including the levy portions that are assumed by the state, that remains after subtracting 
179.27 	the referendum levy certified according to section 126C.17 and the amount recognized 
179.28 	according to item (ii).
179.29 	(b) For fiscal year 2011 and later years, in June of each year, the school district must 
179.30 	recognize as revenue, in the fund for which the levy was made, the lesser of:
179.31 	(1) the sum of May, June, and July school district tax settlement revenue received in 
179.32 	that calendar year, plus general education aid according to section 126C.13, subdivision 
179.33 	4, received in July and August of that calendar year; or
179.34 	(2) the sum of:
180.1 	(i) the greater of 48.6 percent of the referendum levy certified according to section 
180.2 	126C.17 in the prior calendar year, or 31 percent of the referendum levy certified 
180.3 	according to section 126C.17 in calendar year 2000; plus
180.4 	(ii) the entire amount of the levy certified in the prior calendar year according 
180.5 	to section 124D.4531, 124D.86, subdivision 4, for school districts receiving revenue 
180.6 	under sections 124D.86, subdivision 3, clauses (1), (2), and (3); 124D.862, for Special 
180.7 	School District No. 1, Minneapolis, Independent School District No. 625, St. Paul, and 
180.8 	Independent School District No. 709, Duluth; 126C.41, subdivisions 1, 2, paragraph (a), 
180.9 	and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; and 126C.48, subdivision 6; plus
180.10 	(iii) 48.6 percent of the amount of the levy certified in the prior calendar year for the 
180.11 	school district's general and community service funds, plus or minus auditor's adjustments, 
180.12 	that remains after subtracting the referendum levy certified according to section 126C.17 
180.13 	and the amount recognized according to item (ii).

180.14 	Sec. 2. Minnesota Statutes 2012, section 124D.111, subdivision 1, is amended to read:
180.15 		Subdivision 1.School lunch aid computation. Each school year, the state must pay 
180.16 	participants in the national school lunch program the amount of 1212.5 cents for each full 
180.17 	paid, reduced reduced-price, and free student lunch served to students.

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

180.19 	Sec. 3. Minnesota Statutes 2012, section 124D.119, is amended to read:
180.20 	124D.119 SUMMER FOOD SERVICE REPLACEMENT AID.
180.21 	States funds are available to compensate department-approved summer food 
180.22 	program sponsors for reduced federal operating reimbursement rates under Public Law 
180.23 	104-193, the federal summer food service program. A sponsor is eligible for summer food 
180.24 	service replacement aid equal to the sum of the following amounts:. Reimbursement shall 
180.25 	be made on December 15 based on total meals served by each sponsor from the end of the 
180.26 	school year to the beginning of the next school year on a pro rata basis. 
180.27 	(1) for breakfast service, up to four cents per breakfast served by the sponsor during 
180.28 	the current program year;
180.29 	(2) for lunch or supper service, up to 14 cents per lunch or supper served by the 
180.30 	sponsor during the current program year; and
180.31 	(3) for supplement service, up to ten cents per supplement served by the sponsor 
180.32 	during the current program year.

181.1 	Sec. 4. Minnesota Statutes 2012, section 127A.45, subdivision 12a, is amended to read:
181.2 		Subd. 12a.Forward shifted aid payments. (a) Nineteen percent of the state aid 
181.3 	in fiscal year 1999, and 31 percent of the state aid in fiscal years 2000 and later received 
181.4 	under section 124D.86 must be paid by the state to the recipient school district on July 15 
181.5 	of that year. The recipient school district must recognize this aid in the same fiscal year 
181.6 	as the levy is recognized.
181.7 	(b) One hundred percent of the state aid in fiscal years 2003 and later received under 
181.8 	section 124D.87 must be paid by the state to the recipient school district on August 30 of 
181.9 	that year. The recipient school district must recognize this aid in the previous fiscal year.

181.10 	Sec. 5. Minnesota Statutes 2012, section 127A.45, subdivision 13, is amended to read:
181.11 		Subd. 13.Aid payment percentage. Except as provided in subdivisions 11, 12, 
181.12 	12a, and 14, each fiscal year, all education aids and credits in this chapter and chapters 
181.13 	120A, 120B, 121A, 122A, 123A, 123B, 124D, 125A, 125B, 126C, 134, and section 
181.14 	273.1392, shall be paid at the current year aid payment percentage of the estimated 
181.15 	entitlement during the fiscal year of the entitlement. For the purposes of this subdivision, 
181.16 	a district's estimated entitlement for special education excess cost aid under section 
181.17 	125A.79 125A.76 for fiscal year 2006 2014 and later equals 74.0 97.4 percent of the 
181.18 	district's entitlement for the current fiscal year. The final adjustment payment, according 
181.19 	to subdivision 9, must be the amount of the actual entitlement, after adjustment for actual 
181.20 	data, minus the payments made during the fiscal year of the entitlement.

181.21 	Sec. 6. Minnesota Statutes 2012, section 134.32, is amended to read:
181.22 	134.32 GRANT AUTHORIZATION; TYPES OF GRANTS AND AID.
181.23 		Subdivision 1.Provision of grants. The department shall provide the grants and aid 
181.24 	specified in this section from any available state, federal, or other funds.
181.25 		Subd. 3.Regional library basic system support grants aid. It shall provide 
181.26 	regional library basic system support grantsaid to regional public library systems which 
181.27 	meet the requirements of section 134.34, to assist those systems in providing basic system 
181.28 	services.
181.29 		Subd. 4.Special project grants. It may provide special project grants to assist 
181.30 	innovative and experimental library programs including, but not limited to, special 
181.31 	services for American Indians and the Spanish-speaking, delivery of library materials to 
181.32 	homebound persons, other extensions of library services to persons without access to 
181.33 	libraries and projects to strengthen and improve library services.
182.1 		Subd. 5.Interlibrary exchange grants. It may provide grants for interlibrary 
182.2 	exchange of books, periodicals, resource material, reference information and the expenses 
182.3 	incident to the sharing of library resources and materials, including planning, development 
182.4 	and operating grants to multicounty, multitype library systems.
182.5 		Subd. 6.Library service grants. It may provide grants for the improvement of 
182.6 	library services at welfare and corrections institutions and for library service for the blind 
182.7 	and physically disabled.
182.8 		Subd. 7.Construction or remodeling grants. It may provide grants for 
182.9 	construction or remodeling of library facilities from any state and federal funds specifically 
182.10 	appropriated for this purpose.
182.11 		Subd. 8.Rulemaking. (a) The commissioner shall promulgate rules consistent 
182.12 	with sections 134.32 to 134.355 governing:
182.13 	(1) applications for these grants and aid;
182.14 	(2) computation formulas for determining the amounts of establishment grants and 
182.15 	regional library basic system support grants aid; and
182.16 	(3) eligibility criteria for grants and aid.
182.17 	(b) To the extent allowed under federal law, a construction grant applicant, in 
182.18 	addition to the points received under Minnesota Rules, part 3530.2632, shall receive an 
182.19 	additional five points if the construction grant is for a project combining public library 
182.20 	services and school district library services at a single location.

182.21 	Sec. 7. Minnesota Statutes 2012, section 134.34, is amended to read:
182.22 	134.34 REGIONAL LIBRARY BASIC SYSTEM SUPPORT GRANTS AID; 
182.23 	REQUIREMENTS.
182.24 		Subdivision 1.Local support levels. (a) A Regional library basic system support 
182.25 	grantaid shall be madeprovided to any regional public library system where there are at 
182.26 	least three participating counties and where each participating city and county is providing 
182.27 	for public library service support the lesser of (a) an amount equivalent to .82 percent of 
182.28 	the average of the adjusted net tax capacity of the taxable property of that city or county, 
182.29 	as determined by the commissioner of revenue for the second, third, and fourth year 
182.30 	preceding that calendar year or (b) a per capita amount calculated under the provisions of 
182.31 	this subdivision. The per capita amount is established for calendar year 1993 as $7.62. 
182.32 	In succeeding calendar years, the per capita amount shall be increased by a percentage 
182.33 	equal to one-half of the percentage by which the total state adjusted net tax capacity of 
182.34 	property as determined by the commissioner of revenue for the second year preceding 
183.1 	that calendar year increases over that total adjusted net tax capacity for the third year 
183.2 	preceding that calendar year.
183.3 	(b) The minimum level of support specified under this subdivision or subdivision 4 
183.4 	shall be certified annually to the participating cities and counties by the Department of 
183.5 	Education. If a city or county chooses to reduce its local support in accordance with 
183.6 	subdivision 4, paragraph (b) or (c), it shall notify its regional public library system. The 
183.7 	regional public library system shall notify the Department of Education that a revised 
183.8 	certification is required. The revised minimum level of support shall be certified to the 
183.9 	city or county by the Department of Education.
183.10 	(c) A city which is a part of a regional public library system shall not be required to 
183.11 	provide this level of support if the property of that city is already taxable by the county for 
183.12 	the support of that regional public library system. In no event shall the Department of 
183.13 	Education require any city or county to provide a higher level of support than the level 
183.14 	of support specified in this section in order for a system to qualify for a regional library 
183.15 	basic system support grant aid. This section shall not be construed to prohibit a city or 
183.16 	county from providing a higher level of support for public libraries than the level of 
183.17 	support specified in this section.
183.18 		Subd. 3.Regional designation. Regional library basic system support grantsaid 
183.19 	shall be madeprovided only to those regional public library systems officially designated 
183.20 	by the commissioner of education as the appropriate agency to strengthen, improve and 
183.21 	promote public library services in the participating areas. The commissioner of education 
183.22 	shall designate no more than one such regional public library system located entirely within 
183.23 	any single development region existing under sections 462.381 to 462.398 or chapter 473.
183.24 		Subd. 4.Limitation. (a) For calendar year 2010 and later, a regional library basic 
183.25 	system support grantaid shall not be madeprovided to a regional public library system 
183.26 	for a participating city or county which decreases the dollar amount provided for support 
183.27 	for operating purposes of public library service below the amount provided by it for the 
183.28 	second, or third preceding year, whichever is less. For purposes of this subdivision and 
183.29 	subdivision 1, any funds provided under section 473.757, subdivision 2, for extending 
183.30 	library hours of operation shall not be considered amounts provided by a city or county for 
183.31 	support for operating purposes of public library service. This subdivision shall not apply 
183.32 	to participating cities or counties where the adjusted net tax capacity of that city or county 
183.33 	has decreased, if the dollar amount of the reduction in support is not greater than the dollar 
183.34 	amount by which support would be decreased if the reduction in support were made in 
183.35 	direct proportion to the decrease in adjusted net tax capacity.
184.1 	(b) For calendar year 2009 and later, in any calendar year in which a city's or 
184.2 	county's aid under sections 477A.011 to 477A.014 or credit reimbursement under section 
184.3 	273.1384 is reduced after the city or county has certified its levy payable in that year, it 
184.4 	may reduce its local support by the lesser of:
184.5 	(1) ten percent; or
184.6 	(2) a percent equal to the ratio of the aid and credit reimbursement reductions to the 
184.7 	city's or county's revenue base, based on aids certified for the current calendar year. For 
184.8 	calendar year 2009 only, the reduction under this paragraph shall be based on 2008 aid and 
184.9 	credit reimbursement reductions under the December 2008 unallotment, as well as any 
184.10 	aid and credit reimbursement reductions in calendar year 2009. For pay 2009 only, the 
184.11 	commissioner of revenue will calculate the reductions under this paragraph and certify 
184.12 	them to the commissioner of education within 15 days of May 17, 2009.
184.13 	(c) For taxes payable in 2010 and later, in any payable year in which the total 
184.14 	amounts certified for city or county aids under sections 477A.011 to 477A.014 are less 
184.15 	than the total amounts paid under those sections in the previous calendar year, a city or 
184.16 	county may reduce its local support by the lesser of:
184.17 	(1) ten percent; or
184.18 	(2) a percent equal to the ratio of:
184.19 	(i) the difference between (A) the sum of the aid it was paid under sections 
184.20 	477A.011 to 477A.014 and the credit reimbursement it received under section 273.1384 
184.21 	in the previous calendar year and (B) the sum of the aid it is certified to be paid in the 
184.22 	current calendar year under sections 477A.011 to 477A.014 and the credit reimbursement 
184.23 	estimated to be paid under section 273.1384; to
184.24 	(ii) its revenue base for the previous year, based on aids actually paid in the previous 
184.25 	calendar year. The commissioner of revenue shall calculate the percent aid cut for each 
184.26 	county and city under this paragraph and certify the percentage cuts to the commissioner 
184.27 	of education by August 1 of the year prior to the year in which the reduced aids and 
184.28 	credit reimbursements are to be paid. The percentage of reduction related to reductions 
184.29 	to credit reimbursements under section 273.1384 shall be based on the best estimation 
184.30 	available as of July 30.
184.31 	(d) Notwithstanding paragraph (a), (b), or (c), no city or county shall reduce its 
184.32 	support for public libraries below the minimum level specified in subdivision 1.
184.33 	(e) For purposes of this subdivision, "revenue base" means the sum of:
184.34 	(1) its levy for taxes payable in the current calendar year, including the levy on 
184.35 	the fiscal disparities distribution under section 276A.06, subdivision 3, paragraph (a), 
184.36 	or 473F.08, subdivision 3, paragraph (a);
185.1 	(2) its aid under sections 477A.011 to 477A.014 in the current calendar year; and
185.2 	(3) its taconite aid in the current calendar year under sections 298.28 and 298.282.
185.3 		Subd. 7.Proposed budget. In addition to the annual report required in section 
185.4 	134.13, a regional public system that receives a basic system support grantaid under this 
185.5 	section must provide each participating county and city with its proposed budget for 
185.6 	the next year.

185.7 	Sec. 8. Minnesota Statutes 2012, section 134.351, subdivision 3, is amended to read:
185.8 		Subd. 3.Agreement. In order for a multicounty, multitype library system to qualify 
185.9 	for a planning, development or operating grant aid pursuant to sections 134.353 and 
185.10 	134.354, each participating library in the system shall adopt an organizational agreement 
185.11 	providing for the following:
185.12 	(a) Sharing of resources among all participating libraries;
185.13 	(b) Long-range planning for cooperative programs;
185.14 	(c) The development of a delivery system for services and programs;
185.15 	(d) The development of a bibliographic database; and
185.16 	(e) A communications system among all cooperating libraries.

185.17 	Sec. 9. Minnesota Statutes 2012, section 134.351, subdivision 7, is amended to read:
185.18 		Subd. 7.Reports. Each multicounty, multitype system receiving a grant aid
185.19 	 pursuant to section 134.353 or 134.354 shall provide an annual progress report to the 
185.20 	Department of Education.

185.21 	Sec. 10. Minnesota Statutes 2012, section 134.353, is amended to read:
185.22 	134.353 MULTICOUNTY, MULTITYPE LIBRARY SYSTEM 
185.23 	DEVELOPMENT GRANT AID.
185.24 	The commissioner of education may provide development grants aid to multicounty, 
185.25 	multitype library systems. In awarding a development grant aid, the commissioner shall 
185.26 	consider the extra costs incurred in systems located in sparsely populated and large 
185.27 	geographic regions.

185.28 	Sec. 11. Minnesota Statutes 2012, section 134.354, is amended to read:
185.29 	134.354 MULTICOUNTY, MULTITYPE LIBRARY SYSTEM OPERATING 
185.30 	GRANT AID.
185.31 	The commissioner of education may provide operating grants aid to multicounty, 
185.32 	multitype library systems. In awarding an operating grant aid, the commissioner shall 
186.1 	consider the extra costs incurred in systems located in sparsely populated and large 
186.2 	geographic areas.

186.3 	Sec. 12. Minnesota Statutes 2012, section 134.355, subdivision 1, is amended to read:
186.4 		Subdivision 1.Appropriations. Basic system support grantsaid and regional library 
186.5 	telecommunications aid provide the appropriations for the basic regional library system.

186.6 	Sec. 13. Minnesota Statutes 2012, section 134.355, subdivision 2, is amended to read:
186.7 		Subd. 2.Grant application. Any regional public library system which qualifies 
186.8 	according to the provisions of section 134.34 may apply for an annual grantaid for 
186.9 	regional library basic system support. Regional public library districts under section 
186.10 	134.201 may not compensate board members using grantaid funds. The amount of each 
186.11 	grantaid for each fiscal year shall be calculated as provided in this section.

186.12 	Sec. 14. Minnesota Statutes 2012, section 134.355, subdivision 3, is amended to read:
186.13 		Subd. 3.Per capita distribution. Fifty-seven and one-half percent of the available 
186.14 	grantaid funds shall be distributed to provide all qualifying systems an equal amount 
186.15 	per capita. Each system's allocation pursuant to this subdivision shall be based on the 
186.16 	population it serves.

186.17 	Sec. 15. Minnesota Statutes 2012, section 134.355, subdivision 4, is amended to read:
186.18 		Subd. 4.Per square mile distribution. Twelve and one-half percent of the 
186.19 	available grantaid funds shall be distributed to provide all qualifying systems an equal 
186.20 	amount per square mile. Each system's allocation pursuant to this subdivision shall be 
186.21 	based on the area it serves.

186.22 	Sec. 16. Minnesota Statutes 2012, section 134.355, subdivision 5, is amended to read:
186.23 		Subd. 5.Base grantaid distribution. Five percent of the available grantaid funds 
186.24 	shall be paid to each system as a base grantaid for basic system services.

186.25 	Sec. 17. Minnesota Statutes 2012, section 134.355, subdivision 6, is amended to read:
186.26 		Subd. 6.Adjusted net tax capacity per capita distribution. Twenty-five percent 
186.27 	of the available grantaid funds shall be distributed to regional public library systems based 
186.28 	upon the adjusted net tax capacity per capita for each member county or participating 
186.29 	portion of a county as calculated for the second year preceding the fiscal year for which 
186.30 	the grantaid is made provided. Each system's entitlement shall be calculated as follows:
187.1 	(a) Multiply the adjusted net tax capacity per capita for each county or participating 
187.2 	portion of a county by .0082.
187.3 	(b) Add sufficient grantaid funds that are available under this subdivision to raise 
187.4 	the amount of the county or participating portion of a county with the lowest value 
187.5 	calculated according to paragraph (a) to the amount of the county or participating portion 
187.6 	of a county with the next highest value calculated according to paragraph (a). Multiply the 
187.7 	amount of the additional grantaid funds by the population of the county or participating 
187.8 	portion of a county.
187.9 	(c) Continue the process described in paragraph (b) by adding sufficient grantaid 
187.10 	funds that are available under this subdivision to the amount of a county or participating 
187.11 	portion of a county with the next highest value calculated in paragraph (a) to raise it and 
187.12 	the amount of counties and participating portions of counties with lower values calculated 
187.13 	in paragraph (a) up to the amount of the county or participating portion of a county 
187.14 	with the next highest value, until reaching an amount where funds available under this 
187.15 	subdivision are no longer sufficient to raise the amount of a county or participating portion 
187.16 	of a county and the amount of counties and participating portions of counties with lower 
187.17 	values up to the amount of the next highest county or participating portion of a county.
187.18 	(d) If the point is reached using the process in paragraphs (b) and (c) at which the 
187.19 	remaining grantaid funds under this subdivision are not adequate for raising the amount of 
187.20 	a county or participating portion of a county and all counties and participating portions of 
187.21 	counties with amounts of lower value to the amount of the county or participating portion 
187.22 	of a county with the next highest value, those funds are to be divided on a per capita basis 
187.23 	for all counties or participating portions of counties that received grantaid funds under 
187.24 	the calculation in paragraphs (b) and (c).

187.25 	Sec. 18. Minnesota Statutes 2012, section 134.36, is amended to read:
187.26 	134.36 RULES.
187.27 	The commissioner of education shall promulgate rules as necessary for 
187.28 	implementation of library grant and aid programs.

187.29 	Sec. 19. FUND TRANSFER; FISCAL YEARS 2014 AND 2015 ONLY.
 187.30 	(a) Notwithstanding Minnesota Statutes, section 123B.80, subdivision 3, for 
187.31 	fiscal years 2014 and 2015 only, the commissioner must approve a request for a fund 
187.32 	transfer if the transfer does not increase state aid obligations to the district or result in 
187.33 	additional property tax authority for the district. This section does not permit transfers 
188.1 	from the community service fund, the food service fund, or the reserved account for 
188.2 	staff development under section 122A.61.
188.3 	(b) A school board may approve a fund transfer under paragraph (a) only after 
188.4 	adopting a resolution stating the fund transfer will not diminish instructional opportunities 
188.5 	for students.

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

188.7 	Sec. 20. ACCELERATED REPAYMENT OF EDUCATION AIDS.
 188.8 	(a) No later than September 30, 2013, the commissioner of management and budget 
188.9 	must estimate the amount of any positive unrestricted budgetary general fund balance at 
188.10 	the close of the fiscal year ending June 30, 2013. The commissioner must allocate the 
188.11 	amount estimated to the purposes and in the manner specified in Minnesota Statutes, 
188.12 	section 16A.152, subdivision 2, paragraph (a), clauses (3) and (4), in that order.
188.13 	(b) The amounts necessary to meet the requirements of this section are appropriated 
188.14 	from the general fund as necessary to meet the appropriations schedules otherwise 
188.15 	established in statute.
188.16 	(c) The commissioner of management and budget shall certify the total dollar 
188.17 	amount of the reductions to the purposes specified in Minnesota Statutes, section 16A.152, 
188.18 	subdivision 2, paragraph (a), clauses (3) and (4), to the commissioner of education. The 
188.19 	commissioner of education shall increase the aid payment percentage and reduce the 
188.20 	property tax shift percentage by these amounts and apply those reductions to the current 
188.21 	fiscal year and thereafter.
188.22 	(d) No later than October 15, 2013, the commissioner of management and budget 
188.23 	must notify the chairs and ranking minority members of the senate committee on finance, 
188.24 	the house of representatives committee on ways and means, and the legislative committees 
188.25 	with jurisdiction over education of:
188.26 	(1) the amount of positive unrestricted budgetary general fund balance estimated 
188.27 	under paragraph (a); and
188.28 	(2) the dollar amount of reductions certified under paragraph (c) and the resulting 
188.29 	changes in the aid payment percentage and property tax shift percentage.

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

188.31 	Sec. 21. APPROPRIATIONS.
 189.1 		Subdivision 1.Department of Education. The sums indicated in this section are 
189.2 	appropriated from the general fund to the Department of Education for the fiscal years 
189.3 	designated.
189.4 		Subd. 2.School lunch. For school lunch aid according to Minnesota Statutes, 
189.5 	section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

189.6		$
	13,032,000
	.....
	2014
	
189.7		$
	13,293,000
	.....
	2015
	
189.8 		Subd. 3.School breakfast. For traditional school breakfast aid under Minnesota 
189.9 	Statutes, section 124D.1158:

189.10		$
	5,711,000
	.....
	2014
	
189.11		$
	6,022,000
	.....
	2015
	
189.12 		Subd. 4.Kindergarten milk. For kindergarten milk aid under Minnesota Statutes, 
189.13 	section 124D.118:

189.14		$
	1,039,000
	.....
	2014
	
189.15		$
	1,049,000
	.....
	2015
	
189.16 		Subd. 5.Summer food service replacement aid. For summer food service 
189.17 	replacement aid under Minnesota Statutes, section 124D.119:

189.18		$
	150,000
	.....
	2014
	
189.19		$
	150,000
	.....
	2015
	
189.20 		Subd. 6.Basic system support. For basic system support grants under Minnesota 
189.21 	Statutes, section 134.355:

189.22		$
	13,570,000
	.....
	2014
	
189.23		$
	13,570,000
	.....
	2015
	
189.24 	The 2014 appropriation includes $1,845,000 for 2013 and $11,725,000 for 2014.
189.25 	The 2015 appropriation includes $1,845,000 for 2014 and $11,725,000 for 2015.
189.26 		Subd. 7.Multicounty, multitype library systems. For grants under Minnesota 
189.27 	Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:

189.28		$
	1,300,000
	.....
	2014
	
189.29		$
	1,300,000
	.....
	2015
	
189.30 	The 2014 appropriation includes $176,000 for 2013 and $1,124,000 for 2014.
189.31 	The 2015 appropriation includes $176,000 for 2014 and $1,124,000 for 2015.
190.1 		Subd. 8.Electronic library for Minnesota. For statewide licenses to online 
190.2 	databases selected in cooperation with the Minnesota Office of Higher Education for 
190.3 	school media centers, public libraries, state government agency libraries, and public 
190.4 	or private college or university libraries:

190.5		$
	900,000
	.....
	2014
	
190.6		$
	900,000
	.....
	2015
	
190.7 	Any balance in the first year does not cancel but is available in the second year.
190.8 		Subd. 9.Regional library telecommunications aid. For regional library 
190.9 	telecommunications aid under Minnesota Statutes, section 134.355:

190.10		$
	2,300,000
	.....
	2014
	
190.11		$
	2,300,000
	.....
	2015
	
190.12 	The 2014 appropriation includes $312,000 for 2013 and $1,988,000 for 2014.
190.13 	The 2015 appropriation includes $312,000 for 2014 and $1,988,000 for 2015.

190.14 	Sec. 22. REVISOR'S INSTRUCTION.
 190.15 	In Minnesota Statutes and Minnesota Rules, the revisor of statutes shall substitute 
190.16 	the term "Division of State Library Services" for "Library Development and Services," 
190.17 	"Office of Library Development and Services," or "LDS" where "LDS" stands for "Library 
190.18 	Development and Services." The revisor shall also make grammatical changes related 
190.19 	to the changes in terms.

190.20 	Sec. 23. REPEALER.
 190.21 	Minnesota Statutes 2012, section 123B.75, subdivision 6a, is repealed.

190.22 	ARTICLE 8
190.23 	EARLY CHILDHOOD EDUCATION, SELF-SUFFICIENCY, AND 
190.24 	LIFELONG LEARNING

190.25 	Section 1. [16F.01] MINNESOTA YOUTH COUNCIL COMMITTEE.
190.26 		Subdivision 1.Establishment and membership. The Minnesota Youth Council 
190.27 	Committee is established within and under the auspices of the Minnesota Alliance With 
190.28 	Youth. The committee consists of four members from each congressional district in 
190.29 	Minnesota and four members selected at-large. Members must be selected through an 
190.30 	application and interview process conducted by the Minnesota Alliance With Youth. In 
190.31 	making its appointments, the Minnesota Alliance With Youth should strive to ensure 
190.32 	gender and ethnic diversity in the committee's membership. Members must be between 
191.1 	the ages of 13 and 19 and serve two-year terms, except that one-half of the initial members 
191.2 	must serve a one-year term. Members may serve a maximum of two terms.
191.3 		Subd. 2.Duties. The Minnesota Youth Council Committee shall:
191.4 	(1) provide advice and recommendations to the legislature and the governor on 
191.5 	issues affecting youth;
191.6 	(2) serve as a liaison for youth around the state to the legislature and the governor; and
191.7 	(3) submit an annual report of the council's activities and goals.
191.8 		Subd. 3.Partnerships. The Minnesota Youth Council Committee shall partner with 
191.9 	nonprofits, the private sector, and educational resources to fulfill its duties.
191.10 		Subd. 4.Youth Council Committee in the legislature. (a) The Minnesota Youth 
191.11 	Council Committee shall meet at least twice each year during the regular session of the 
191.12 	legislature.
191.13 	(b) The committee may:
191.14 	(1) select introduced bills in the house of representatives and senate for consideration 
191.15 	for a public hearing before the committee;
191.16 	(2) propose youth legislation;
191.17 	(3) provide advisory opinions to the legislature on bills heard before the committee; 
191.18 	and
191.19 	(4) prepare a youth omnibus bill.
191.20 	(c) The leaders of the majority and minority parties of the house of representatives 
191.21 	and senate shall each appoint one legislator to serve as a legislative liaison to the 
191.22 	committee. Leadership of the house of representatives and senate, on rotating years, may 
191.23 	appoint a staff member to staff the committee.

191.24 	Sec. 2. [124D.165] EARLY LEARNING SCHOLARSHIPS.
191.25 		Subdivision 1.Establishment; purpose. There is established an early learning 
191.26 	scholarships program in order to increase access to high-quality early childhood programs 
191.27 	for children ages three to five.
191.28 		Subd. 2.Family eligibility. (a) For a family to receive an early childhood education 
191.29 	scholarship, parents or guardians must meet the following eligibility requirements:
191.30 	(1) have a child three or four years of age on September 1 of the current year, who 
191.31 	has not yet started kindergarten; and
191.32 	(2) have income equal to or less than 185 percent of federal poverty level income 
191.33 	in the current calendar year, or be able to document their child's current participation in 
191.34 	the free and reduced-price lunch program or child and adult care food program, National 
191.35 	School Lunch Act, United States Code, title 42, sections 1751 and 1766; Head Start under 
192.1 	the federal Improving Head Start for School Readiness Act of 2007; Minnesota family 
192.2 	investment program under chapter 256J; child care assistance programs under chapter 
192.3 	119B; the supplemental nutrition assistance program; or placement in foster care under 
192.4 	section 260C.212.
192.5 	(b) Notwithstanding the other provisions of this section, a parent under age 21 who 
192.6 	is pursuing a high school or general education equivalency diploma is eligible for an early 
192.7 	learning scholarship if the parent has a child age zero to five years old and meets the 
192.8 	income eligibility guidelines in this subdivision.
192.9 	(c) Any siblings between the ages zero to five years old of a child who has been 
192.10 	awarded a scholarship under this section must be awarded a scholarship upon request, 
192.11 	provided the sibling attends the same program.
192.12 	(d) A child who has received a scholarship under this section must continue to receive 
192.13 	a scholarship each year until that child is eligible for kindergarten under section 120A.20.
192.14 	(e) Early learning scholarships may not be counted as earned income for the 
192.15 	purposes of medical assistance under chapter 256B, MinnesotaCare under chapter 256L, 
192.16 	Minnesota family investment program under chapter 256J, child care assistance programs 
192.17 	under chapter 119B, or Head Start under the federal Improving Head Start for School 
192.18 	Readiness Act of 2007.
192.19 		Subd. 3.Administration. (a) The commissioner shall establish application 
192.20 	timelines and determine the schedule for awarding scholarships that meets operational 
192.21 	needs of eligible families and programs. The commissioner may prioritize applications on 
192.22 	factors including family income, geographic location, and whether the child's family is on a 
192.23 	waiting list for a publicly funded program providing early education or child care services.
192.24 	(b) Scholarships may be awarded up to $5,000 for each eligible child per year.
192.25 	(c) A four-star rated program that has children eligible for a scholarship enrolled 
192.26 	in or on a waiting list for a program beginning in July, August, or September may notify 
192.27 	the commissioner, in the form and manner prescribed by the commissioner, each year 
192.28 	of the program's desire to enhance program services or to serve more children than 
192.29 	current funding provides. The commissioner may designate a predetermined number of 
192.30 	scholarship slots for that program and notify the program of that number.
192.31 	(d) A scholarship is awarded for a 12-month period. If the scholarship recipient has 
192.32 	not been accepted and subsequently enrolled in a rated program within ten months of the 
192.33 	awarding of the scholarship, the scholarship cancels and the recipient must reapply in 
192.34 	order to be eligible for another scholarship. A child may not be awarded more than one 
192.35 	scholarship in a 12-month period.
193.1 	(e) A child who receives a scholarship who has not completed development 
193.2 	screening under sections 121A.16 to 121A.19 must complete that screening within 90 
193.3 	days of first attending an eligible program.
193.4 		Subd. 4.Early childhood program eligibility. (a) In order to be eligible to accept 
193.5 	an early childhood education scholarship, a program must:
193.6 	(1) participate in the quality rating and improvement system under section 
193.7 	124D.142; and
193.8 	(2) beginning July 1, 2016, have a three- or four-star rating in the quality rating 
193.9 	and improvement system.
193.10 	(b) Any program accepting scholarships must use the revenue to supplement and not 
193.11 	supplant federal funding.
193.12 		Subd. 5.Report required. The commissioner shall contract with an independent 
193.13 	contractor to evaluate the early learning scholarship program. The evaluation must 
193.14 	include recommendations regarding the appropriate scholarship amount, efficiency, and 
193.15 	effectiveness of the administration, and impact on kindergarten readiness.

193.16 	Sec. 3. Minnesota Statutes 2012, section 124D.531, subdivision 1, is amended to read:
193.17 		Subdivision 1.State total adult basic education aid. (a) The state total adult basic 
193.18 	education aid for fiscal year 2011 equals $44,419,000, plus any amount that is not paid 
193.19 	during the previous fiscal year as a result of adjustments under subdivision 4, paragraph 
193.20 	(a), or section 124D.52, subdivision 3. The state total adult basic education aid for later 
193.21 	fiscal years equals:
193.22 	(1) the state total adult basic education aid for the preceding fiscal year plus any 
193.23 	amount that is not paid for during the previous fiscal year, as a result of adjustments under 
193.24 	subdivision 4, paragraph (a), or section 124D.52, subdivision 3; times
193.25 	(2) the lesser of:
193.26 	(i) 1.02 1.025; or
193.27 	(ii) the average growth in state total contact hours over the prior ten program years.
193.28 	Beginning in fiscal year 2002, two percent of the state total adult basic education 
193.29 	aid must be set aside for adult basic education supplemental service grants under section 
193.30 	124D.522.
193.31 	(b) The state total adult basic education aid, excluding basic population aid, equals 
193.32 	the difference between the amount computed in paragraph (a), and the state total basic 
193.33 	population aid under subdivision 2.

193.34 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
193.35 	and later.

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

194.6		$
	2,000,000
	.....
	2013
	
194.7 	(a) All children whose parents or legal guardians meet the eligibility requirements 
194.8 	of paragraph (b) established by the commissioner are eligible to receive early childhood 
194.9 	education scholarships under this section.
194.10 	(b) A parent or legal guardian is eligible for an early childhood education scholarship 
194.11 	if the parent or legal guardian:
194.12 	(1) has a child three or four years of age on September 1, beginning in calendar 
194.13 	year 2012; and
194.14 	(2)(i) has income equal to or less than 47 percent of the state median income in the 
194.15 	current calendar year; or
194.16 	(ii) can document their child's identification through another public funding 
194.17 	eligibility process, including the Free and Reduced Price Lunch Program, National School 
194.18 	Lunch Act, United States Code, title 42, section 1751, part 210; Head Start under federal 
194.19 	Improving Head Start for School Readiness Act of 2007; Minnesota family investment 
194.20 	program under chapter 256J; and child care assistance programs under chapter 119B.
194.21 	 Early childhood scholarships may not be counted as earned income for the purposes of 
194.22 	medical assistance, MinnesotaCare, Minnesota family investment program, child care 
194.23 	assistance, or Head Start programs.
194.24 	Each year, if this appropriation is insufficient to provide early childhood education 
194.25 	scholarships to all eligible children, the Department of Education shall make scholarships 
194.26 	available on a first-come, first-served basis.
194.27 	The commissioner of education shall submit a written report to the education 
194.28 	committees of the legislature by January 15, 2012, describing its plan for implementation 
194.29 	of scholarships under this subdivision for the 2012-2013 school year.
194.30 	Any balance in the first year does not cancel but is available in the second year.
194.31 	The base for this program is $3,000,000 each year.

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

194.34 	Sec. 5. APPROPRIATIONS.
 195.1 		Subdivision 1.Department of Education. The sums indicated in this section are 
195.2 	appropriated from the general fund to the Department of Education for the fiscal years 
195.3 	designated.
195.4 		Subd. 2.School readiness. For revenue for school readiness programs under 
195.5 	Minnesota Statutes, sections 124D.15 and 124D.16:

195.6		$
	10,095,000
	.....
	2014
	
195.7		$
	10,159,000
	.....
	2015
	
195.8 	The 2014 appropriation includes $1,372,000 for 2013 and $8,723,000 for 2014.
195.9 	The 2015 appropriation includes $1,372,000 for 2014 and $8,787,000 for 2015.
195.10 		Subd. 3.Early childhood family education aid. For early childhood family 
195.11 	education aid under Minnesota Statutes, section 124D.135:

195.12		$
	22,078,000
	.....
	2014
	
195.13		$
	22,425,000
	.....
	2015
	
195.14 	The 2014 appropriation includes $3,008,000 for 2013 and $19,070,000 for 2014.
195.15 	The 2015 appropriation includes $3,001,000 for 2014 and $19,424,000 for 2015.
195.16 		Subd. 4.Health and developmental screening aid. For health and developmental 
195.17 	screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

195.18		$
	3,421,000
	.....
	2014
	
195.19		$
	3,344,000
	.....
	2015
	
195.20 	The 2014 appropriation includes $474,000 for 2013 and $2,947,000 for 2014.
195.21 	The 2015 appropriation includes $463,000 for 2014 and $2,881,000 for 2015.
195.22 		Subd. 5.Head Start program. For Head Start programs under Minnesota Statutes, 
195.23 	section 119A.52:

195.24		$
	20,100,000
	.....
	2014
	
195.25		$
	20,100,000
	.....
	2015
	
195.26 		Subd. 6.Educate parents partnership. For the educate parents partnership under 
195.27 	Minnesota Statutes, section 124D.129:

195.28		$
	49,000
	.....
	2014
	
195.29		$
	49,000
	.....
	2015
	
195.30 		Subd. 7.Kindergarten entrance assessment initiative and intervention 
195.31 	program. For the kindergarten entrance assessment initiative and intervention program 
195.32 	under Minnesota Statutes, section 124D.162:

196.1		$
	281,000
	.....
	2014
	
196.2		$
	281,000
	.....
	2015
	
196.3 		Subd. 8.Early childhood education scholarships. For transfer to the Office of 
196.4 	Early Learning for early learning scholarships under Minnesota Statutes, section 124D.165:

196.5		$
	23,000,000
	.....
	2014
	
196.6		$
	23,000,000
	.....
	2015
	
196.7 	Up to $950,000 each year is for administration of this program.
196.8 	Any balance in the first year does not cancel but is available in the second year.
196.9 		Subd. 9.Parent-child home program. For a grant to the parent-child home 
196.10 	program:

196.11		$
	250,000
	.....
	2014
	
196.12		$
	250,000
	.....
	2015
	
196.13 	The grant must be used for an evidence-based and research-validated early childhood 
196.14 	literacy and school readiness program for children ages 16 months to four years at its 
196.15 	existing suburban program location. The program must expand to one additional urban 
196.16 	and one additional rural program location for fiscal years 2014 and 2015.
196.17 		Subd. 10.Community education aid. For community education aid under 
196.18 	Minnesota Statutes, section 124D.20:

196.19		$
	935,000
	.....
	2014
	
196.20		$
	1,056,000
	.....
	2015
	
196.21 	The 2014 appropriation includes $118,000 for 2013 and $817,000 for 2014.
196.22 	The 2015 appropriation includes $128,000 for 2014 and $928,000 for 2015.
196.23 		Subd. 11.Adults with disabilities program aid. For adults with disabilities 
196.24 	programs under Minnesota Statutes, section 124D.56:

196.25		$
	710,000
	.....
	2014
	
196.26		$
	710,000
	.....
	2015
	
196.27 	The 2014 appropriation includes $96,000 for 2013 and $614,000 for 2014.
196.28 	The 2015 appropriation includes $96,000 for 2014 and $614,000 for 2015.
196.29 		Subd. 12.Hearing-impaired adults. For programs for hearing-impaired adults 
196.30 	under Minnesota Statutes, section 124D.57:

196.31		$
	70,000
	.....
	2014
	
196.32		$
	70,000
	.....
	2015
	
197.1 		Subd. 13.School-age care revenue. For extended day aid under Minnesota 
197.2 	Statutes, section 124D.22:

197.3		$
	1,000
	.....
	2014
	
197.4		$
	1,000
	.....
	2015
	
197.5 	The 2014 appropriation includes $0 for 2013 and $1,000 for 2014.
197.6 	The 2015 appropriation includes $0 for 2014 and $1,000 for 2015.
197.7 		Subd. 14.Adult basic education aid. For adult basic education aid under 
197.8 	Minnesota Statutes, section 124D.531:

197.9		$
	47,005,000
	.....
	2014
	
197.10		$
	48,145,000
	.....
	2015
	
197.11 	The 2014 appropriation includes $6,284,000 for 2013 and $40,721,000 for 2014.
197.12 	The 2015 appropriation includes $6,409,000 for 2014 and $41,736,000 for 2015.
197.13 		Subd. 15.GED tests. For payment of 60 percent of the costs of GED tests under 
197.14 	Minnesota Statutes, section 124D.55:

197.15		$
	125,000
	.....
	2014
	
197.16		$
	125,000
	.....
	2015
	
197.17 		Subd. 16.Education and employment solution. For a grant to the Minneapolis 
197.18 	Urban League for education and employment solutions for young adults:

197.19		$
	600,000
	.....
	2014
	
197.20 	Any balance in fiscal year 2014 does not cancel and is available in fiscal year 2015. 
197.21 	This is a onetime appropriation.

197.22 	ARTICLE 9
197.23 	STATE AGENCIES

197.24 	Section 1. APPROPRIATIONS; DEPARTMENT OF EDUCATION.
 197.25 		Subdivision 1.Department of Education. Unless otherwise indicated, the sums 
197.26 	indicated in this section are appropriated from the general fund to the Department of 
197.27 	Education for the fiscal years designated.
197.28 		Subd. 2.Department. (a) For the Department of Education:

197.29		$
	20,058,000
	.....
	2014
	
197.30		$
	19,308,000
	.....
	2015
	
197.31 	Any balance in the first year does not cancel but is available in the second year.
198.1 	(b) $260,000 each year is for the Minnesota Children's Museum.
198.2 	(c) $41,000 each year is for the Minnesota Academy of Science.
198.3 	(d) $50,000 each year is for the Duluth Children's Museum.
198.4 	(e) $618,000 each year is for the Board of Teaching. Any balance in the first year 
198.5 	does not cancel but is available in the second year.
198.6 	(f) $167,000 each year is for the Board of School Administrators. Any balance in 
198.7 	the first year does not cancel but is available in the second year.
198.8 	(g) The expenditures of federal grants and aids as shown in the biennial budget 
198.9 	document and its supplements are approved and appropriated and shall be spent as 
198.10 	indicated.
198.11 	(h) None of the amounts appropriated under this subdivision may be used for 
198.12 	Minnesota's Washington, D.C. office.
198.13 	(i) $250,000 each year is for the School Finance Division to enhance financial data 
198.14 	analysis.
198.15 	(j) $750,000 in fiscal year 2014 only is for departmental costs associated with 
198.16 	teacher development and evaluation. Any balance in the first year does not cancel and 
198.17 	is available in the second year.
198.18 		Subd. 3.Licensure by portfolio. For licensure by portfolio:

198.19		$
	30,000
	.....
	2014
	
198.20		$
	30,000
	.....
	2015
	
198.21 	This appropriation is from the educator licensure portfolio account of the special 
198.22 	revenue fund.

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

198.26		$
	11,749,000
	.....
	2014
	
198.27		$
	11,664,000
	.....
	2015
	
198.28 	$85,000 of the fiscal year 2014 appropriation is for costs associated with upgrading 
198.29 	kitchen facilities. Any balance in the first year does not cancel but is available in the 
198.30 	second year.

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

199.1		$
	6,773,000
	.....
	2014
	
199.2		$
	6,773,000
	.....
	2015
	
199.3 	Any balance in the first year does not cancel but is available in the second year.

199.4 	ARTICLE 10
199.5 	FORECAST ADJUSTMENTS
199.6 	A. GENERAL EDUCATION

199.7 	Section 1. Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision 
199.8 	2, as amended by Laws 2012, chapter 292, article 2, section 1, is amended to read:
199.9 		Subd. 2.General education aid. For general education aid under Minnesota 
199.10 	Statutes, section 126C.13, subdivision 4:

199.11		$
	5,379,068,000
	.....
	2012
	
199.12
199.13		$
	5,844,995,000
7,153,701,000
	.....
	2013
	
199.14 	The 2012 appropriation includes $1,660,922,000 for 2011 and $3,718,146,000 
199.15 	for 2012.
199.16 	The 2013 appropriation includes $2,038,568,000 for 2012 and $3,806,427,000
199.17 	 $5,115,133,000 for 2013.

199.18 	Sec. 2. Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision 
199.19 	3, as amended by Laws 2012, chapter 292, article 2, section 2, is amended to read:
199.20 		Subd. 3.Enrollment options transportation. For transportation of pupils attending 
199.21 	postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation 
199.22 	of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

199.23		$
	42,000
	.....
	2012
	
199.24
199.25		$
	46,000
40,000
	.....
	2013

199.26 	Sec. 3. Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision 
199.27 	4, as amended by Laws 2012, chapter 292, article 2, section 3, is amended to read:
199.28 		Subd. 4.Abatement revenue. For abatement aid under Minnesota Statutes, section 
199.29 	127A.49:

199.30		$
	1,406,000
	.....
	2012
	
199.31
199.32		$
	2,072,000
2,503,000
	.....
	2013
	
199.33 	The 2012 appropriation includes $346,000 for 2011 and $1,060,000 for 2012.
200.1 	The 2013 appropriation includes $588,000 for 2012 and $1,484,000 $1,915,000
200.2 	 for 2013.

200.3 	Sec. 4. Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision 
200.4 	5, as amended by Laws 2012, chapter 292, article 2, section 4, is amended to read:
200.5 		Subd. 5.Consolidation transition. For districts consolidating under Minnesota 
200.6 	Statutes, section 123A.485:

200.7		$
	145,000
	.....
	2012
	
200.8
200.9		$
	193,000
260,000
	.....
	2013
	
200.10 	The 2012 appropriation includes $145,000 for 2011 and $0 for 2012.
200.11 	The 2013 appropriation includes $0 for 2012 and $193,000 $260,000 for 2013.

200.12 	Sec. 5. Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision 
200.13 	6, as amended by Laws 2012, chapter 292, article 2, section 5, is amended to read:
200.14 		Subd. 6.Nonpublic pupil education aid. For nonpublic pupil education aid under 
200.15 	Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:

200.16		$
	14,302,000
	.....
	2012
	
200.17
200.18		$
	15,594,000
18,969,000
	.....
	2013
	
200.19 	The 2012 appropriation includes $4,161,000 for 2011 and $10,141,000 for 2012.
200.20 	The 2013 appropriation includes $5,629,000 for 2012 and $9,965,000 $13,340,000
200.21 	 for 2013.

200.22 	Sec. 6. Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision 
200.23 	7, as amended by Laws 2012, chapter 292, article 2, section 6, is amended to read:
200.24 		Subd. 7.Nonpublic pupil transportation. For nonpublic pupil transportation aid 
200.25 	under Minnesota Statutes, section 123B.92, subdivision 9:

200.26		$
	17,757,000
	.....
	2012
	
200.27
200.28		$
	19,036,000
23,648,000
	.....
	2013
	
200.29 	The 2012 appropriation includes $5,700,000 for 2011 and $12,057,000 for 2012.
200.30 	The 2013 appropriation includes $6,694,000 for 2012 and $12,342,000 $16,954,000
200.31 	 for 2013.

200.32 	Sec. 7. Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision 
200.33 	10, as amended by Laws 2012, chapter 292, article 2, section 7, is amended to read:
201.1 		Subd. 10.Compensatory pilot project formula aid. For grants for compensatory 
201.2 	pilot project formula aid as calculated under this subdivision:

201.3
201.4		$
	9,368,000
13,403,000
	.....
	2013
	
201.5 	For fiscal year 2013 only, a district which has a pupil unit count that is in the top 20 
201.6 	largest pupil unit counts is eligible for the greater of zero or $1,400 times the number of 
201.7 	compensatory pupil units, minus the amount of compensatory education revenue received 
201.8 	by the district under Minnesota Statutes, section 126C.10, subdivision 3.
201.9 	The 2013 appropriation includes $0 for 2012 and $9,368,000 $13,403,000 for 2013.
201.10 	This is a onetime appropriation.
201.11 	B. EDUCATION EXCELLENCE

201.12 	Sec. 8. Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision 
201.13 	2, as amended by Laws 2012, chapter 292, article 2, section 8, is amended to read:
201.14 		Subd. 2.Charter school building lease aid. For building lease aid under Minnesota 
201.15 	Statutes, section 124D.11, subdivision 4:

201.16		$
	42,806,000
	.....
	2012
	
201.17
201.18		$
	48,978,000
60,067,000
	.....
	2013
	
201.19 	The 2012 appropriation includes $12,642,000 for 2011 and $30,164,000 for 2012.
201.20 	The 2013 appropriation includes $16,746,000 for 2012 and $32,232,000 $43,321,000
201.21 	 for 2013.

201.22 	Sec. 9. Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision 
201.23 	4, as amended by Laws 2012, chapter 292, article 2, section 10, is amended to read:
201.24 		Subd. 4.Integration aid. For integration aid under Minnesota Statutes, section 
201.25 	124D.86:

201.26		$
	61,181,000
	.....
	2012
	
201.27
201.28		$
	65,498,000
79,329,000
	.....
	2013
	
201.29 	The 2012 appropriation includes $19,272,000 for 2011 and $41,909,000 for 2012.
201.30 	The 2013 appropriation includes $23,268,000 for 2012 and $42,230,000 $56,061,000
201.31 	 for 2013.
201.32 	The base for the final payment in fiscal year 2014 for fiscal year 2013 is $31,668,000
201.33 	 $17,197,000.

202.1 	Sec. 10. Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision 
202.2 	5, as amended by Laws 2012, chapter 292, article 2, section 11, is amended to read:
202.3 		Subd. 5.Literacy incentive aid. For literacy incentive aid under Minnesota 
202.4 	Statutes, section 124D.98:

202.5
202.6		$
	31,241,000
41,978,000
	.....
	2013
	
202.7 	The 2013 appropriation includes $0 for 2012 and $31,241,000 $41,978,000 for 2013.

202.8 	Sec. 11. Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision 
202.9 	6, as amended by Laws 2012, chapter 292, article 2, section 12, is amended to read:
202.10 		Subd. 6.Interdistrict desegregation or integration transportation grants. For 
202.11 	interdistrict desegregation or integration transportation grants under Minnesota Statutes, 
202.12 	section 124D.87:

202.13		$
	13,262,000
	.....
	2012
	
202.14
202.15		$
	13,966,000
13,260,000
	.....
	2013

202.16 	Sec. 12. Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision 
202.17 	7, as amended by Laws 2012, chapter 292, article 2, section 13, is amended to read:
202.18 		Subd. 7.Success for the future. For American Indian success for the future grants 
202.19 	under Minnesota Statutes, section 124D.81:

202.20		$
	2,013,000
	.....
	2012
	
202.21
202.22		$
	2,137,000
2,609,000
	.....
	2013
	
202.23 	The 2012 appropriation includes $638,000 for 2011 and $1,375,000 for 2012.
202.24 	The 2013 appropriation includes $762,000 for 2012 and $1,375,000 $1,847,000
202.25 	 for 2013.

202.26 	Sec. 13. Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision 
202.27 	9, as amended by Laws 2012, chapter 292, article 2, section 14, is amended to read:
202.28 		Subd. 9.Tribal contract schools. For tribal contract school aid under Minnesota 
202.29 	Statutes, section 124D.83:

202.30		$
	1,791,000
	.....
	2012
	
202.31
202.32		$
	1,969,000
2,353,000
	.....
	2013
	
202.33 	The 2012 appropriation includes $600,000 for 2011 and $1,191,000 for 2012.
203.1 	The 2013 appropriation includes $660,000 for 2012 and $1,309,000 $1,693,000
203.2 	 for 2013.
203.3 	C. SPECIAL EDUCATION

203.4 	Sec. 14. Laws 2011, First Special Session chapter 11, article 3, section 11, subdivision 
203.5 	2, as amended by Laws 2012, chapter 292, article 2, section 15, is amended to read:
203.6 		Subd. 2.Special education; regular. For special education aid under Minnesota 
203.7 	Statutes, section 125A.75:

203.8		$
	767,845,000
	.....
	2012
	
203.9203.10
		$
	856,386,000
1,046,423,000
	.....
	2013
	
203.11 	The 2012 appropriation includes $235,975,000 for 2011 and $531,870,000 for 2012.
203.12 	The 2013 appropriation includes $295,299,000 for 2012 and $561,087,000
203.13 	 $751,124,000 for 2013.

203.14 	Sec. 15. Laws 2011, First Special Session chapter 11, article 3, section 11, subdivision 
203.15 	3, as amended by Laws 2012, chapter 292, article 2, section 16, is amended to read:
203.16 		Subd. 3.Aid for children with disabilities. For aid under Minnesota Statutes, 
203.17 	section 125A.75, subdivision 3, for children with disabilities placed in residential facilities 
203.18 	within the district boundaries for whom no district of residence can be determined:

203.19		$
	1,508,000
	.....
	2012
	
203.20
203.21		$
	1,593,000
1,570,000
	.....
	2013
	
203.22 	If the appropriation for either year is insufficient, the appropriation for the other 
203.23 	year is available.

203.24 	Sec. 16. Laws 2011, First Special Session chapter 11, article 3, section 11, subdivision 
203.25 	4, as amended by Laws 2012, chapter 292, article 2, section 17, is amended to read:
203.26 		Subd. 4.Travel for home-based services. For aid for teacher travel for home-based 
203.27 	services under Minnesota Statutes, section 125A.75, subdivision 1:

203.28		$
	314,000
	.....
	2012
	
203.29
203.30		$
	321,000
407,000
	.....
	2013
	
203.31 	The 2012 appropriation includes $107,000 for 2011 and $207,000 for 2012.
203.32 	The 2013 appropriation includes $114,000 for 2012 and $207,000 $293,000 for 2013.

204.1 	Sec. 17. Laws 2011, First Special Session chapter 11, article 3, section 11, subdivision 
204.2 	5, as amended by Laws 2012, chapter 292, article 2, section 18, is amended to read:
204.3 		Subd. 5.Special education; excess costs. For excess cost aid under Minnesota 
204.4 	Statutes, section 125A.79, subdivision 7:

204.5		$
	107,557,000
	.....
	2012
	
204.6
204.7		$
	115,269,000
134,121,000
	.....
	2013
	
204.8 	The 2012 appropriation includes $53,449,000 for 2011 and $54,108,000 for 2012.
204.9 	The 2013 appropriation includes $59,607,000 for 2012 and $55,662,000 $74,514,000
204.10 	 for 2013.
204.11 	D. FACILITIES AND TECHNOLOGY

204.12 	Sec. 18. Laws 2011, First Special Session chapter 11, article 4, section 10, subdivision 
204.13 	2, as amended by Laws 2012, chapter 292, article 2, section 19, is amended to read:
204.14 		Subd. 2.Health and safety revenue. For health and safety aid according to 
204.15 	Minnesota Statutes, section 123B.57, subdivision 5:

204.16		$
	98,000
	.....
	2012
	
204.17
204.18		$
	157,000
200,000
	.....
	2013
	
204.19 	The 2012 appropriation includes $39,000 for 2011 and $59,000 for 2012.
204.20 	The 2013 appropriation includes $32,000 for 2012 and $125,000 $168,000 for 2013.

204.21 	Sec. 19. Laws 2011, First Special Session chapter 11, article 4, section 10, subdivision 
204.22 	3, as amended by Laws 2012, chapter 292, article 2, section 20, is amended to read:
204.23 		Subd. 3.Debt service equalization. For debt service aid according to Minnesota 
204.24 	Statutes, section 123B.53, subdivision 6:

204.25		$
	11,625,000
	.....
	2012
	
204.26
204.27		$
	16,342,000
20,237,000
	.....
	2013
	
204.28 	The 2012 appropriation includes $2,604,000 for 2011 and $9,021,000 for 2012.
204.29 	The 2013 appropriation includes $5,008,000 for 2012 and $11,334,000 $15,229,000
204.30 	 for 2013.

204.31 	Sec. 20. Laws 2011, First Special Session chapter 11, article 4, section 10, subdivision 
204.32 	4, as amended by Laws 2012, chapter 292, article 2, section 21, is amended to read:
205.1 		Subd. 4.Alternative facilities bonding aid. For alternative facilities bonding aid, 
205.2 	according to Minnesota Statutes, section 123B.59, subdivision 1:

205.3		$
	18,187,000
	.....
	2012
	
205.4
205.5		$
	19,287,000
23,549,000
	.....
	2013
	
205.6 	The 2012 appropriation includes $5,785,000 for 2011 and $12,402,000 for 2012.
205.7 	The 2013 appropriation includes $6,885,000 for 2012 and $12,402,000 $16,664,000
205.8 	 for 2013.

205.9 	Sec. 21. Laws 2011, First Special Session chapter 11, article 4, section 10, subdivision 
205.10 	6, as amended by Laws 2012, chapter 292, article 2, section 22, is amended to read:
205.11 		Subd. 6.Deferred maintenance aid. For deferred maintenance aid, according to 
205.12 	Minnesota Statutes, section 123B.591, subdivision 4:

205.13		$
	2,331,000
	.....
	2012
	
205.14
205.15		$
	3,141,000
3,817,000
	.....
	2013
	
205.16 	The 2012 appropriation includes $676,000 for 2011 and $1,655,000 for 2012.
205.17 	The 2013 appropriation includes $918,000 for 2012 and $2,223,000 $2,899,000
205.18 	 for 2013.
205.19 	E. NUTRITION AND LIBRARIES

205.20 	Sec. 22. Laws 2011, First Special Session chapter 11, article 5, section 12, subdivision 
205.21 	2, as amended by Laws 2012, chapter 292, article 2, section 23, is amended to read:
205.22 		Subd. 2.School lunch. For school lunch aid according to Minnesota Statutes, 
205.23 	section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

205.24		$
	12,285,000
	.....
	2012
	
205.25
205.26		$
	12,524,000
12,266,000
	.....
	2013

205.27 	Sec. 23. Laws 2011, First Special Session chapter 11, article 5, section 12, subdivision 
205.28 	3, as amended by Laws 2012, chapter 292, article 2, section 24, is amended to read:
205.29 		Subd. 3.School breakfast. For traditional school breakfast aid under Minnesota 
205.30 	Statutes, section 124D.1158:

205.31		$
	5,247,000
	.....
	2012
	
205.32
205.33		$
	5,560,000
5,417,000
	.....
	2013

206.1 	Sec. 24. Laws 2011, First Special Session chapter 11, article 5, section 12, subdivision 
206.2 	4, as amended by Laws 2012, chapter 292, article 2, section 25, is amended to read:
206.3 		Subd. 4.Kindergarten milk. For kindergarten milk aid under Minnesota Statutes, 
206.4 	section 124D.118:

206.5		$
	1,025,000
	.....
	2012
	
206.6
206.7		$
	1,035,000
1,019,000
	.....
	2013

206.8 	Sec. 25. Laws 2011, First Special Session chapter 11, article 6, section 2, subdivision 
206.9 	2, as amended by Laws 2012, chapter 292, article 2, section 26, is amended to read:
206.10 		Subd. 2.Basic system support. For basic system support grants under Minnesota 
206.11 	Statutes, section 134.355:

206.12		$
	12,797,000
	.....
	2012
	
206.13
206.14		$
	13,570,000
16,569,000
	.....
	2013
	
206.15 	The 2012 appropriation includes $4,071,000 for 2011 and $8,726,000 for 2012.
206.16 	The 2013 appropriation includes $4,844,000 for 2012 and $8,726,000 $11,725,000
206.17 	 for 2013.

206.18 	Sec. 26. Laws 2011, First Special Session chapter 11, article 6, section 2, subdivision 
206.19 	3, as amended by Laws 2012, chapter 292, article 2, section 27, is amended to read:
206.20 		Subd. 3.Multicounty, multitype library systems. For grants under Minnesota 
206.21 	Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:

206.22		$
	1,226,000
	.....
	2012
	
206.23
206.24		$
	1,300,000
1,588,000
	.....
	2013
	
206.25 	The 2012 appropriation includes $390,000 for 2011 and $836,000 for 2012.
206.26 	The 2013 appropriation includes $464,000 for 2012 and $836,000 $1,124,000 for 
206.27 	2013.

206.28 	Sec. 27. Laws 2011, First Special Session chapter 11, article 6, section 2, subdivision 
206.29 	5, as amended by Laws 2012, chapter 292, article 2, section 28, is amended to read:
206.30 		Subd. 5.Regional library telecommunications aid. For regional library 
206.31 	telecommunications aid under Minnesota Statutes, section 134.355:

206.32		$
	2,169,000
	.....
	2012
	
206.33
206.34		$
	2,300,000
2,809,000
	.....
	2013
	
207.1 	The 2012 appropriation includes $690,000 for 2011 and $1,479,000 for 2012.
207.2 	The 2013 appropriation includes $821,000 for 2012 and $1,479,000 $1,988,000
207.3 	 for 2013.
207.4 	F. EARLY CHILDHOOD EDUCATION, PREVENTION, AND 
207.5 	LIFELONG LEARNING

207.6 	Sec. 28. Laws 2011, First Special Session chapter 11, article 7, section 2, subdivision 
207.7 	2, as amended by Laws 2012, chapter 292, article 2, section 29, is amended to read:
207.8 		Subd. 2.School readiness. For revenue for school readiness programs under 
207.9 	Minnesota Statutes, sections 124D.15 and 124D.16:

207.10		$
	9,444,000
	.....
	2012
	
207.11
207.12		$
	10,095,000
12,326,000
	.....
	2013
	
207.13 	The 2012 appropriation includes $2,952,000 for 2011 and $6,492,000 for 2012.
207.14 	The 2013 appropriation includes $3,603,000 for 2012 and $6,492,000 $8,723,000
207.15 	 for 2013.

207.16 	Sec. 29. Laws 2011, First Special Session chapter 11, article 7, section 2, subdivision 
207.17 	3, as amended by Laws 2012, chapter 292, article 2, section 30, is amended to read:
207.18 		Subd. 3.Early childhood family education aid. For early childhood family 
207.19 	education aid under Minnesota Statutes, section 124D.135:

207.20		$
	21,099,000
	.....
	2012
	
207.21
207.22		$
	22,358,000
27,197,000
	.....
	2013
	
207.23 	The 2012 appropriation includes $6,542,000 for 2011 and $14,557,000 for 2012.
207.24 	The 2013 appropriation includes $8,082,000 for 2012 and $14,276,000 $19,115,000
207.25 	 for 2013.

207.26 	Sec. 30. Laws 2011, First Special Session chapter 11, article 7, section 2, subdivision 
207.27 	4, as amended by Laws 2012, chapter 292, article 2, section 31, is amended to read:
207.28 		Subd. 4.Health and developmental screening aid. For health and developmental 
207.29 	screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

207.30		$
	3,359,000
	.....
	2012
	
207.31
207.32		$
	3,543,000
4,287,000
	.....
	2013
	
207.33 	The 2012 appropriation includes $1,066,000 for 2011 and $2,293,000 for 2012.
208.1 	The 2013 appropriation includes $1,273,000 for 2012 and $2,270,000 $3,014,000
208.2 	 for 2013.

208.3 	Sec. 31. Laws 2011, First Special Session chapter 11, article 8, section 2, subdivision 
208.4 	2, as amended by Laws 2012, chapter 292, article 2, section 32, is amended to read:
208.5 		Subd. 2.Community education aid. For community education aid under 
208.6 	Minnesota Statutes, section 124D.20:

208.7		$
	442,000
	.....
	2012
	
208.8
208.9		$
	746,000
926,000
	.....
	2013
	
208.10 	The 2012 appropriation includes $134,000 for 2011 and $308,000 for 2012.
208.11 	The 2013 appropriation includes $170,000 for 2012 and $576,000 $756,000 for 2013.

208.12 	Sec. 32. Laws 2011, First Special Session chapter 11, article 8, section 2, subdivision 
208.13 	3, as amended by Laws 2012, chapter 292, article 2, section 33, is amended to read:
208.14 		Subd. 3.Adults with disabilities program aid. For adults with disabilities 
208.15 	programs under Minnesota Statutes, section 124D.56:

208.16		$
	654,000
	.....
	2012
	
208.17
208.18		$
	710,000
867,000
	.....
	2013
	
208.19 	The 2012 appropriation includes $197,000 for 2011 and $457,000 for 2012.
208.20 	The 2013 appropriation includes $253,000 for 2012 and $457,000 $614,000 for 2013.

208.21 	Sec. 33. Laws 2011, First Special Session chapter 11, article 9, section 3, subdivision 
208.22 	2, as amended by Laws 2012, chapter 292, article 2, section 34, is amended to read:
208.23 		Subd. 2.Adult basic education aid. For adult basic education aid under Minnesota 
208.24 	Statutes, section 124D.531:

208.25		$
	42,526,000
	.....
	2012
	
208.26
208.27		$
	45,901,000
56,113,000
	.....
	2013
	
208.28 	The 2012 appropriation includes $13,364,000 for 2011 and $29,162,000 for 2012.
208.29 	The 2013 appropriation includes $16,190,000 for 2012 and $29,711,000 $39,923,000
208.30 	 for 2013.