1.1 	A bill for an act
1.2 	relating to education; providing for early childhood and prekindergarten through 
1.3 	grade 12 education, including general education, education excellence, charter 
1.4 	schools, special education, facilities and technology, and self-sufficiency 
1.5 	and lifelong learning;amending Minnesota Statutes 2014, sections 120B.11, 
1.6 	subdivisions 1a, 2, 5; 120B.15; 120B.35, subdivisions 1, 2, 3, 4; 120B.36, 
1.7 	as amended; 122A.16; 122A.245, subdivision 8; 122A.31, subdivision 3; 
1.8 	122A.4144; 122A.416; 122A.72, subdivision 5; 122A.74, subdivision 1; 
1.9 	123A.24, subdivision 2; 123B.571, subdivision 2; 123B.60, subdivision 1; 
1.10 	123B.71, subdivision 8; 123B.79, subdivisions 5, 8, 9; 124D.15, subdivision 15; 
1.11 	124D.52, subdivisions 1, 2; 125A.091, subdivision 11; 125A.0942, subdivision 4; 
1.12 	126C.40, subdivision 5; 126C.63, subdivision 7; 127A.095; 127A.51; Minnesota 
1.13 	Statutes 2015 Supplement, sections 120B.125; 122A.30; 122A.414, subdivisions 
1.14 	1, 2, 2b; 122A.60, subdivision 4; 123B.53, subdivision 1; 123B.595, subdivisions 
1.15 	4, 7, 8, 9, 10, 11, by adding a subdivision; 124D.231, subdivision 2; 124D.73, 
1.16 	subdivision 4; 124E.05, subdivision 7; 124E.10, subdivisions 1, 5; 124E.16, 
1.17 	subdivision 2; 125A.08; 125A.0942, subdivision 3; 126C.48, subdivision 8; 
1.18 	repealing Minnesota Statutes 2014, sections 120B.299, subdivision 5; 122A.413, 
1.19 	subdivision 3; 123B.60, subdivision 2; 123B.79, subdivisions 2, 6; Minnesota 
1.20 	Statutes 2015 Supplement, section 122A.413, subdivisions 1, 2.
1.21 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.22 	ARTICLE 1
1.23 	GENERAL EDUCATION

1.24 	Section 1. Minnesota Statutes 2014, section 123A.24, subdivision 2, is amended to read:
1.25 		Subd. 2.Cooperative unit defined. For the purposes of this section, a cooperative 
1.26 	unit is:
1.27 	(1) an education district organized under sections 123A.15 to 123A.19;
1.28 	(2) a cooperative vocational center organized under section 123A.22;
1.29 	(3) an intermediate district organized under chapter 136D;
1.30 	(4) a service cooperative organized under section 123A.21; or
2.1 	(5) a regional management information center organized under section 123A.23 or 
2.2 	as a joint powers district according to section 471.59.; or
2.3 	(6) a special education cooperative organized under section 471.59.

2.4 	Sec. 2. Minnesota Statutes 2014, section 127A.51, is amended to read:
2.5 	127A.51 STATEWIDE AVERAGE REVENUE.
2.6 	By October December 1 of each year the commissioner must estimate the statewide 
2.7 	average adjusted general revenue per adjusted pupil unit and the disparity in adjusted 
2.8 	general revenue among pupils and districts by computing the ratio of the 95th percentile 
2.9 	to the fifth percentile of adjusted general revenue. The commissioner must provide that 
2.10 	information to all districts.
2.11 	If the disparity in adjusted general revenue as measured by the ratio of the 95th 
2.12 	percentile to the fifth percentile increases in any year, the commissioner shall recommend 
2.13 	to the legislature options for change in the general education formula that will limit the 
2.14 	disparity in adjusted general revenue to no more than the disparity for the previous 
2.15 	school year. The commissioner must submit the recommended options to the education 
2.16 	committees of the legislature by January 15 February 1.
2.17 	For purposes of this section and section 126C.10, adjusted general revenue means 
2.18 	the sum of basic revenue under section 126C.10, subdivision 2; referendum revenue under 
2.19 	section 126C.17; local optional revenue under section 126C.10, subdivision 2e; and equity 
2.20 	revenue under section 126C.10, subdivisions 24a and 24b.

2.21 	ARTICLE 2
2.22 	EDUCATION EXCELLENCE

2.23 	Section 1. Minnesota Statutes 2014, section 120B.11, subdivision 1a, is amended to 
2.24 	read:
2.25 		Subd. 1a.Performance measures. Measures to determine school district and 
2.26 	school site progress in striving to create the world's best workforce must include at least:
2.27 	(1) student performance on the National Assessment of Education Progress where 
2.28 	applicable;
2.29 	(2)(1) the size of the academic achievement gap, rigorous course taking under 
2.30 	section 120B.35, subdivision 3, paragraph (c), clause (2), and enrichment experiences by 
2.31 	student subgroup;
2.32 	(3) (2) student performance on the Minnesota Comprehensive Assessments;
2.33 	(4) (3) high school graduation rates; and
3.1 	(5) (4) career and college readiness under section 120B.30, subdivision 1.

3.2 	Sec. 2. Minnesota Statutes 2014, section 120B.11, subdivision 2, is amended to read:
3.3 		Subd. 2.Adopting plans and budgets.  A school board, at a public meeting, shall 
3.4 	adopt a comprehensive, long-term strategic plan to support and improve teaching and 
3.5 	learning that is aligned with creating the world's best workforce and includes:
3.6 	(1) clearly defined district and school site goals and benchmarks for instruction and 
3.7 	student achievement for all student subgroups identified in section 120B.35, subdivision 3, 
3.8 	paragraph (b), clause (2);
3.9 	(2) a process for assessing and evaluating each student's progress toward meeting 
3.10 	state and local academic standards, assessing and identifying students for participation in 
3.11 	gifted and talented programs and acceleration and early-admission procedures consistent 
3.12 	with section 120B.15, and identifying the strengths and weaknesses of instruction in 
3.13 	pursuit of student and school success and curriculum affecting students' progress and 
3.14 	growth toward career and college readiness and leading to the world's best workforce;
3.15 	(3) a system to periodically review and evaluate the effectiveness of all instruction 
3.16 	and curriculum, taking into account strategies and best practices, student outcomes, school 
3.17 	principal evaluations under section 123B.147, subdivision 3, and teacher evaluations 
3.18 	under section 122A.40, subdivision 8, or 122A.41, subdivision 5;
3.19 	(4) strategies for improving instruction, curriculum, and student achievement, 
3.20 	including the English and, where practicable, the native language development and the 
3.21 	academic achievement of English learners;
3.22 	(5) a process to examine the equitable distribution of teachers and strategies to 
3.23 	ensure that low-income and minority children are not taught at higher rates than other 
3.24 	children by inexperienced, ineffective, or out-of-field teachers, consistent with section 
3.25 	1111(b)(8)(C) of the Elementary and Secondary Education Act;
3.26 	(5) (6) education effectiveness practices that integrate high-quality instruction, 
3.27 	rigorous curriculum, technology, and a collaborative professional culture that develops 
3.28 	and supports teacher quality, performance, and effectiveness; and
3.29 	(6) (7) an annual budget for continuing to implement the district plan.

3.30 	Sec. 3. Minnesota Statutes 2014, section 120B.11, subdivision 5, is amended to read:
3.31 		Subd. 5.Report. Consistent with requirements for school performance reports 
3.32 	under section 120B.36, subdivision 1, the school board shall publish a report in the local 
3.33 	newspaper with the largest circulation in the district, by mail, or by electronic means on 
3.34 	the district Web site. The school board shall hold an annual public meeting to review, 
4.1 	and revise where appropriate, student achievement goals, local assessment outcomes, 
4.2 	plans, strategies, and practices for improving curriculum and instruction and cultural 
4.3 	competency, the process to examine equitable distribution of effective, experienced, and 
4.4 	in-field teachers, and to review district success in realizing the previously adopted student 
4.5 	achievement goals and related benchmarks and the improvement plans leading to the 
4.6 	world's best workforce. The school board must transmit an electronic summary of its 
4.7 	report to the commissioner in the form and manner the commissioner determines.

4.8 	Sec. 4. Minnesota Statutes 2014, section 120B.15, is amended to read:
4.9 	120B.15 GIFTED AND TALENTED STUDENTS PROGRAMS.
4.10 	(a) School districts may identify students, locally develop programs addressing 
4.11 	instructional and affective needs, provide staff development, and evaluate programs to 
4.12 	provide gifted and talented students with challenging and appropriate educational programs.
4.13 	(b) School districts must adopt guidelines for assessing and identifying students for 
4.14 	participation in gifted and talented programs consistent with section 120B.11, subdivision 
4.15 	2, clause (2). The guidelines should include the use of:
4.16 	(1) multiple and objective criteria; and
4.17 	(2) assessments and procedures that are valid and reliable, fair, and based on current 
4.18 	theory and research. Assessments and procedures should be sensitive to underrepresented 
4.19 	groups, including, but not limited to, low-income, minority, twice-exceptional, and 
4.20 	English learners.
4.21 	(c) School districts must adopt procedures for the academic acceleration of gifted 
4.22 	and talented students consistent with section 120B.11, subdivision 2, clause (2). These 
4.23 	procedures must include how the district will:
4.24 	(1) assess a student's readiness and motivation for acceleration; and
4.25 	(2) match the level, complexity, and pace of the curriculum to a student to achieve 
4.26 	the best type of academic acceleration for that student.
4.27 	(d) School districts must adopt procedures consistent with section 124D.02, 
4.28 	subdivision 1, for early admission to kindergarten or first grade of gifted and talented 
4.29 	learners consistent with section 120B.11, subdivision 2, clause (2). The procedures must 
4.30 	be sensitive to underrepresented groups.

4.31 	Sec. 5. Minnesota Statutes 2014, section 120B.35, subdivision 1, is amended to read:
4.32 		Subdivision 1.School and student indicators of growth and achievement.
 4.33 	The commissioner must develop and implement a system for measuring and reporting 
4.34 	academic achievement and individual student growth, consistent with the statewide 
5.1 	educational accountability and reporting system. The system components must measure 
5.2 	and separately report the adequate yearly progress federal expectations of schools and the 
5.3 	growth of individual students: students' current achievement in schools under subdivision 
5.4 	2; and individual students' educational growth over time under subdivision 3. The 
5.5 	system also must include statewide measures of student academic growth that identify 
5.6 	schools with high levels of growth, and also schools with low levels of growth that need 
5.7 	improvement. When determining a school's effect, the data must include both statewide 
5.8 	measures of student achievement and, to the extent annual tests are administered, 
5.9 	indicators of achievement growth that take into account a student's prior achievement. 
5.10 	Indicators of achievement and prior achievement must be based on highly reliable 
5.11 	statewide or districtwide assessments. Indicators that take into account a student's prior 
5.12 	achievement must not be used to disregard a school's low achievement or to exclude a 
5.13 	school from a program to improve low achievement levels.

5.14 	Sec. 6. Minnesota Statutes 2014, section 120B.35, subdivision 2, is amended to read:
5.15 		Subd. 2.Federal expectations for student academic achievement. (a) Each 
5.16 	school year, a school district must determine if the student achievement levels at each 
5.17 	school site meet federal expectations. If student achievement levels at a school site do 
5.18 	not meet federal expectations and the site has not made adequate yearly progress for two 
5.19 	consecutive school years, beginning with the 2001-2002 school year, the district must 
5.20 	work with the school site to adopt a plan to raise student achievement levels to meet 
5.21 	federal expectations. The commissioner of education shall establish student academic 
5.22 	achievement levels to comply with this paragraph.
5.23 	(b) School sites identified as not meeting federal expectations must develop 
5.24 	continuous improvement plans in order to meet federal expectations for student academic 
5.25 	achievement. The department, at a district's request, must assist the district and the school 
5.26 	site in developing a plan to improve student achievement. The plan must include parental 
5.27 	involvement components.
5.28 	(c) The commissioner must:
5.29 	(1) assist school sites and districts identified as not meeting federal expectations; and
5.30 	(2) provide technical assistance to schools that integrate student achievement 
5.31 	measures into the school continuous improvement plan.
5.32 	(d) The commissioner shall establish and maintain a continuous improvement Web 
5.33 	site designed to make data on every school and district available to parents, teachers, 
5.34 	administrators, community members, and the general public.

6.1 	Sec. 7. Minnesota Statutes 2014, section 120B.35, subdivision 3, is amended to read:
6.2 		Subd. 3.State growth target; other state measures. (a) The state's educational 
6.3 	assessment system measuring individual students' educational growth is based on 
6.4 	indicators of achievement growth that show an individual student's prior achievement. 
6.5 	Indicators of achievement and prior achievement must be based on highly reliable 
6.6 	statewide or districtwide assessments.
6.7 	(b) The commissioner, in consultation with a stakeholder group that includes 
6.8 	assessment and evaluation directors, district staff, experts in culturally responsive teaching, 
6.9 	and researchers, must implement a model that uses a value-added growth indicator and 
6.10 	includes criteria for identifying schools and school districts that demonstrate medium and 
6.11 	high growth under section 120B.299, subdivisions 8 and 9, and may recommend other 
6.12 	value-added measures under section 120B.299, subdivision 3. The model may be used 
6.13 	to advance educators' professional development and replicate programs that succeed in 
6.14 	meeting students' diverse learning needs. Data on individual teachers generated under the 
6.15 	model are personnel data under section 13.43. The model must allow users to:
6.16 	(1) report student growth consistent with this paragraph; and
6.17 	(2) for all student categories, report and compare aggregated and disaggregated 
6.18 	state growth data using the nine student categories identified under the federal 2001 No 
6.19 	Child Left Behind Act the student categories identified under the federal Elementary 
6.20 	and Secondary Education Act and two student gender categories of male and female, 
6.21 	respectively, following appropriate reporting practices to protect nonpublic student data.
6.22 	The commissioner must report measures of student growth, consistent with this 
6.23 	paragraph, including the English language development, academic progress, and oral 
6.24 	academic development of English learners and their native language development if the 
6.25 	native language is used as a language of instruction.
6.26 	(c) When reporting student performance under section 120B.36, subdivision 1, the 
6.27 	commissioner annually, beginning July 1, 2011, must report two core measures indicating 
6.28 	the extent to which current high school graduates are being prepared for postsecondary 
6.29 	academic and career opportunities:
6.30 	(1) a preparation measure indicating the number and percentage of high school 
6.31 	graduates in the most recent school year who completed course work important to 
6.32 	preparing them for postsecondary academic and career opportunities, consistent with 
6.33 	the core academic subjects required for admission to Minnesota's public colleges and 
6.34 	universities as determined by the Office of Higher Education under chapter 136A; and
6.35 	(2) a rigorous coursework measure indicating the number and percentage of high 
6.36 	school graduates in the most recent school year who successfully completed one or more 
7.1 	college-level advanced placement, international baccalaureate, postsecondary enrollment 
7.2 	options including concurrent enrollment, other rigorous courses of study under section 
7.3 	120B.021, subdivision 1a, or industry certification courses or programs.
7.4 	When reporting the core measures under clauses (1) and (2), the commissioner must also 
7.5 	analyze and report separate categories of information using the nine student categories 
7.6 	identified under the federal 2001 No Child Left Behind Act the student categories 
7.7 	identified under the federal Elementary and Secondary Education Act and two student 
7.8 	gender categories of male and female, respectively, following appropriate reporting 
7.9 	practices to protect nonpublic student data.
7.10 	(d) When reporting student performance under section 120B.36, subdivision 1, the 
7.11 	commissioner annually, beginning July 1, 2014, must report summary data on school 
7.12 	safety and students' engagement and connection at school. The summary data under this 
7.13 	paragraph are separate from and must not be used for any purpose related to measuring 
7.14 	or evaluating the performance of classroom teachers. The commissioner, in consultation 
7.15 	with qualified experts on student engagement and connection and classroom teachers, 
7.16 	must identify highly reliable variables that generate summary data under this paragraph. 
7.17 	The summary data may be used at school, district, and state levels only. Any data on 
7.18 	individuals received, collected, or created that are used to generate the summary data 
7.19 	under this paragraph are nonpublic data under section 13.02, subdivision 9.
7.20 	(e) For purposes of statewide educational accountability, the commissioner must 
7.21 	identify and report measures that demonstrate the success of learning year program 
7.22 	providers under sections 123A.05 and 124D.68, among other such providers, in improving 
7.23 	students' graduation outcomes. The commissioner, beginning July 1, 2015, must annually 
7.24 	report summary data on:
7.25 	(1) the four- and six-year graduation rates of students under this paragraph;
7.26 	(2) the percent of students under this paragraph whose progress and performance 
7.27 	levels are meeting career and college readiness benchmarks under section 120B.30, 
7.28 	subdivision 1; and
7.29 	(3) the success that learning year program providers experience in:
7.30 	(i) identifying at-risk and off-track student populations by grade;
7.31 	(ii) providing successful prevention and intervention strategies for at-risk students;
7.32 	(iii) providing successful recuperative and recovery or reenrollment strategies for 
7.33 	off-track students; and
7.34 	(iv) improving the graduation outcomes of at-risk and off-track students.
7.35 	The commissioner may include in the annual report summary data on other education 
7.36 	providers serving a majority of students eligible to participate in a learning year program.
8.1 	(f) The commissioner, in consultation with recognized experts with knowledge and 
8.2 	experience in assessing the language proficiency and academic performance of English 
8.3 	learners, must identify and report appropriate and effective measures to improve current 
8.4 	categories of language difficulty and assessments, and monitor and report data on students' 
8.5 	English proficiency levels, program placement, and academic language development, 
8.6 	including oral academic language.

8.7 	Sec. 8. Minnesota Statutes 2014, section 120B.35, subdivision 4, is amended to read:
8.8 		Subd. 4.Improving schools. Consistent with the requirements of this section, 
8.9 	beginning June 20, 2012, the commissioner of education must annually report to the 
8.10 	public and the legislature best practices implemented in those schools that demonstrate 
8.11 	high growth compared to the state growth target are identified as high performing under 
8.12 	federal expectations.

8.13 	Sec. 9. Minnesota Statutes 2014, section 120B.36, as amended by Laws 2015, First 
8.14 	Special Session chapter 3, article 2, section 8, is amended to read:
8.15 	120B.36 SCHOOL ACCOUNTABILITY; APPEALS PROCESS.
8.16 		Subdivision 1.School performance reports. (a) The commissioner shall report 
8.17 	student academic performance under section 120B.35, subdivision 2; the percentages of 
8.18 	students showing low, medium, and high growth under section 120B.35, subdivision 
8.19 	3, paragraph (b); school safety and student engagement and connection under section 
8.20 	120B.35, subdivision 3, paragraph (d); rigorous coursework under section 120B.35, 
8.21 	subdivision 3, paragraph (c); the percentage of students under section 120B.35, 
8.22 	subdivision 3, paragraph (b), clause (2), whose progress and performance levels are 
8.23 	meeting career and college readiness benchmarks under sections 120B.30, subdivision 1, 
8.24 	and 120B.35, subdivision 3, paragraph (e); longitudinal data on the progress of eligible 
8.25 	districts in reducing disparities in students' academic achievement and realizing racial 
8.26 	and economic integration under section 124D.861; the acquisition of English, and 
8.27 	where practicable, native language academic literacy, including oral academic language, 
8.28 	and the academic progress of English learners under section 124D.59, subdivisions 
8.29 	2 and 2a; two separate student-to-teacher ratios that clearly indicate the definition of 
8.30 	teacher consistent with sections 122A.06 and 122A.15 for purposes of determining these 
8.31 	ratios; staff characteristics excluding salaries; student enrollment demographics; student 
8.32 	homelessness and district mobility; and extracurricular activities. The report also must 
8.33 	indicate a school's adequate yearly progress status under applicable federal law, and must 
9.1 	not set any designations applicable to high- and low-performing schools due solely to 
9.2 	adequate yearly progress status.
9.3 	(b) The commissioner shall develop, annually update, and post on the department 
9.4 	Web site school performance reports.
9.5 	(c) The commissioner must make available performance reports by the beginning 
9.6 	of each school year.
9.7 	(d) A school or district may appeal its adequate yearly progress status in writing 
9.8 	to the commissioner within 30 days of receiving the notice of its status results in a form 
9.9 	and manner determined by the commissioner and consistent with federal law. The 
9.10 	commissioner's decision to uphold or deny an appeal is final.
9.11 	(e) School performance data are nonpublic data under section 13.02, subdivision 9, 
9.12 	until the commissioner publicly releases the data. The commissioner shall annually post 
9.13 	school performance reports to the department's public Web site no later than September 1, 
9.14 	except that in years when the reports reflect new performance standards, the commissioner 
9.15 	shall post the school performance reports no later than October 1.
9.16 		Subd. 2.Adequate yearly progress Federal expectations and other data. All data 
9.17 	the department receives, collects, or creates to determine adequate yearly progress status 
9.18 	federal expectations under Public Law 107-110, section 1116, set state growth targets, 
9.19 	and determine student growth are nonpublic data under section 13.02, subdivision 9, until 
9.20 	the commissioner publicly releases the data. Districts must provide parents sufficiently 
9.21 	detailed summary data to permit parents to appeal under Public Law 107-110, section 
9.22 	1116(b)(2). The commissioner shall annually post federal adequate yearly progress data 
9.23 	on federal expectations and state student growth data to the department's public Web site 
9.24 	no later than September 1, except that in years when adequate yearly progress data on 
9.25 	federal expectations reflects new performance standards, the commissioner shall post 
9.26 	federal adequate yearly progress data on federal expectations and state student growth 
9.27 	data no later than October 1.

9.28 	Sec. 10. Minnesota Statutes 2014, section 122A.16, is amended to read:
9.29 	122A.16 HIGHLY QUALIFIED TEACHER DEFINED.
9.30 	(a) A qualified teacher is one holding a valid license, under this chapter, to perform 
9.31 	the particular service for which the teacher is employed in a public school.
9.32 	(b) For the purposes of the federal No Child Left Behind Act, a highly qualified 
9.33 	teacher is one who holds a valid license under this chapter, including under section 
9.34 	122A.245, among other sections and is determined by local administrators as having 
9.35 	highly qualified status according to the approved Minnesota highly qualified plan. 
10.1 	Teachers delivering core content instruction must be deemed highly qualified at the local 
10.2 	level and reported to the state via the staff automated reporting system.

10.3 	Sec. 11. Minnesota Statutes 2014, section 122A.245, subdivision 8, is amended to read:
10.4 		Subd. 8.Highly Qualified teacher. A person holding a valid limited-term license 
10.5 	under this section is a highly qualified teacher and the teacher of record under section 
10.6 	122A.16.

10.7 	Sec. 12. Minnesota Statutes 2015 Supplement, section 122A.30, is amended to read:
10.8 	122A.30 EXEMPTION FOR TECHNICAL EDUCATION INSTRUCTORS.
10.9 	(a) Notwithstanding section 122A.15, subdivision 1, and upon approval of the local 
10.10 	employer school board, a person who teaches in as a part-time vocational or career and 
10.11 	technical education program teacher is exempt from a license requirement. Nothing in 
10.12 	this section shall exclude licensed career and technical educators from the definition of 
10.13 	"teacher" in section 122A.40, 122A.41, or 179A.03.
10.14 	(b) This section expires June 30, 2020.

10.15 	Sec. 13. Minnesota Statutes 2015 Supplement, section 122A.414, subdivision 1, 
10.16 	is amended to read:
10.17 		Subdivision 1.Restructured pay system. A restructured alternative teacher 
10.18 	professional pay system is established under subdivision 2 to provide incentives to 
10.19 	encourage teachers to improve their knowledge and instructional skills in order to improve 
10.20 	student learning and for school districts, intermediate school districts, cooperative units, 
10.21 	as defined in section 123A.24, subdivision 2, and charter schools to recruit and retain 
10.22 	highly qualified teachers, encourage highly qualified teachers to undertake challenging 
10.23 	assignments, and support teachers' roles in improving students' educational achievement.

10.24 	Sec. 14. Minnesota Statutes 2015 Supplement, section 122A.414, subdivision 2, 
10.25 	is amended to read:
10.26 		Subd. 2.Alternative teacher professional pay system. (a) To participate in this 
10.27 	program, a school district, intermediate school district, school site, or charter school must 
10.28 	have an educational improvement plan under section 122A.413 a World's Best Workforce 
10.29 	plan under section 120B.11 and an alternative teacher professional pay system agreement 
10.30 	under paragraph (b). A charter school participant also must comply with subdivision 2a.
10.31 	(b) The alternative teacher professional pay system agreement must:
11.1 	(1) describe how teachers can achieve career advancement and additional 
11.2 	compensation;
11.3 	(2) describe how the school district, intermediate school district, school site, or 
11.4 	charter school will provide teachers with career advancement options that allow teachers 
11.5 	to retain primary roles in student instruction and facilitate site-focused professional 
11.6 	development that helps other teachers improve their skills;
11.7 	(3) reform the "steps and lanes" salary schedule, prevent any teacher's compensation 
11.8 	paid before implementing the pay system from being reduced as a result of participating in 
11.9 	this system, base at least 60 percent of any compensation increase on teacher performance 
11.10 	using:
11.11 	(i) schoolwide student achievement gains under section 120B.35 or locally selected 
11.12 	standardized assessment outcomes, or both;
11.13 	(ii) measures of student growth and literacy that may include value-added models 
11.14 	or student learning goals, consistent with section 122A.40, subdivision 8, paragraph 
11.15 	(b), clause (9), or 122A.41, subdivision 5, paragraph (b), clause (9), and other measures 
11.16 	that include the academic literacy, oral academic language, and achievement of English 
11.17 	learners under section 122A.40, subdivision 8, paragraph (b), clause (10), or 122A.41, 
11.18 	subdivision 5, paragraph (b), clause (10); and
11.19 	(iii) an objective evaluation program under section 122A.40, subdivision 8, 
11.20 	paragraph (b), clause (2), or 122A.41, subdivision 5, paragraph (b), clause (2);
11.21 	(4) provide for participation in job-embedded learning opportunities such as 
11.22 	professional learning communities to improve instructional skills and learning that are 
11.23 	aligned with student needs under section 122A.413 120B.11, consistent with the staff 
11.24 	development plan under section 122A.60 and led during the school day by trained teacher 
11.25 	leaders such as master or mentor teachers;
11.26 	(5) allow any teacher in a participating school district, intermediate school district, 
11.27 	school site, or charter school that implements an alternative pay system to participate in 
11.28 	that system without any quota or other limit; and
11.29 	(6) encourage collaboration rather than competition among teachers.
11.30 	(c) The alternative teacher professional pay system may:
11.31 	(1) include a hiring bonus or other added compensation for teachers who are 
11.32 	identified as effective or highly effective under the local teacher professional review 
11.33 	cycle and work in a hard-to-fill position or in a hard-to-staff school such as a school with 
11.34 	a majority of students whose families meet federal poverty guidelines, a geographically 
11.35 	isolated school, or a school identified by the state as eligible for targeted programs or 
11.36 	services for its students; and
12.1 	(2) include incentives for teachers to obtain a master's degree or other advanced 
12.2 	certification in their content field of licensure, pursue the training or education necessary 
12.3 	to obtain an additional licensure in shortage areas identified by the district or charter 
12.4 	school, or help fund a "grow your own" new teacher initiative.

12.5 	Sec. 15. Minnesota Statutes 2015 Supplement, section 122A.414, subdivision 2b, 
12.6 	is amended to read:
12.7 		Subd. 2b.Approval process. (a) Consistent with the requirements of this section 
12.8 	and sections 122A.413 and section122A.415, the department must prepare and transmit 
12.9 	to interested school districts, intermediate school districts, cooperatives, school sites, 
12.10 	and charter schools a standard form for applying to participate in the alternative teacher 
12.11 	professional pay system. The commissioner annually must establish three dates as 
12.12 	deadlines by which interested applicants must submit an application to the commissioner 
12.13 	under this section. An interested school district, intermediate school district, cooperative, 
12.14 	school site, or charter school must submit to the commissioner a completed application 
12.15 	executed by the district superintendent and the exclusive bargaining representative of the 
12.16 	teachers if the applicant is a school district, intermediate school district, or school site, or 
12.17 	executed by the charter school board of directors if the applicant is a charter school or 
12.18 	executed by the governing board if the applicant is a cooperative unit. The application 
12.19 	must include the proposed alternative teacher professional pay system agreement under 
12.20 	subdivision 2. The department must review a completed application within 30 days of 
12.21 	the most recent application deadline and recommend to the commissioner whether to 
12.22 	approve or disapprove the application. The commissioner must approve applications 
12.23 	on a first-come, first-served basis. The applicant's alternative teacher professional pay 
12.24 	system agreement must be legally binding on the applicant and the collective bargaining 
12.25 	representative before the applicant receives alternative compensation revenue. The 
12.26 	commissioner must approve or disapprove an application based on the requirements 
12.27 	under subdivisions 2 and 2a.
12.28 	(b) If the commissioner disapproves an application, the commissioner must give the 
12.29 	applicant timely notice of the specific reasons in detail for disapproving the application. 
12.30 	The applicant may revise and resubmit its application and related documents to the 
12.31 	commissioner within 30 days of receiving notice of the commissioner's disapproval and 
12.32 	the commissioner must approve or disapprove the revised application, consistent with this 
12.33 	subdivision. Applications that are revised and then approved are considered submitted on 
12.34 	the date the applicant initially submitted the application.

13.1 	Sec. 16. Minnesota Statutes 2014, section 122A.4144, is amended to read:
13.2 	122A.4144 SUPPLEMENTAL AGREEMENTS; ALTERNATIVE TEACHER 
13.3 	PAY.
13.4 	Notwithstanding section 179A.20 or other law to the contrary, a school board and 
13.5 	the exclusive representative of the teachers may agree to reopen a collective bargaining 
13.6 	agreement for the purpose of entering into an alternative teacher professional pay system 
13.7 	agreement under sections 122A.413,122A.414, and 122A.415. Negotiations for a contract 
13.8 	reopened under this section must be limited to issues related to the alternative teacher 
13.9 	professional pay system.

13.10 	Sec. 17. Minnesota Statutes 2014, section 122A.416, is amended to read:
13.11 	122A.416 ALTERNATIVE TEACHER COMPENSATION REVENUE 
13.12 	FOR PERPICH CENTER FOR ARTS EDUCATION AND MULTIDISTRICT 
13.13 	INTEGRATION COLLABORATIVES.
13.14 	Notwithstanding sections 122A.413,122A.414, 122A.415, and 126C.10, 
13.15 	multidistrict integration collaboratives and the Perpich Center for Arts Education are 
13.16 	eligible to receive alternative teacher compensation revenue as if they were intermediate 
13.17 	school districts. To qualify for alternative teacher compensation revenue, a multidistrict 
13.18 	integration collaborative or the Perpich Center for Arts Education must meet all of the 
13.19 	requirements of sections 122A.413,122A.414, and 122A.415 that apply to intermediate 
13.20 	school districts, must report its enrollment as of October 1 of each year to the department, 
13.21 	and must annually report its expenditures for the alternative teacher professional pay 
13.22 	system consistent with the uniform financial accounting and reporting standards to the 
13.23 	department by November 30 of each year.

13.24 	Sec. 18. Minnesota Statutes 2015 Supplement, section 122A.60, subdivision 4, is 
13.25 	amended to read:
13.26 		Subd. 4.Staff development report. (a) By October 15 of each year, The district 
13.27 	and site staff development committees shall write and submit a report of staff development 
13.28 	activities and expenditures for the previous year, in the form and manner determined by 
13.29 	the commissioner. The report, signed by the district superintendent and staff development 
13.30 	chair, must include assessment and evaluation data indicating progress toward district and 
13.31 	site staff development goals based on teaching and learning outcomes, including the 
13.32 	percentage of teachers and other staff involved in instruction who participate in effective 
13.33 	staff development activities under subdivision 3 as part of the district's world's best 
13.34 	workforce report under section 120B.11, subdivision 5.
14.1 	(b) The report must break down expenditures for:
14.2 	(1) curriculum development and curriculum training programs; and
14.3 	(2) staff development training models, workshops, and conferences, and the cost of 
14.4 	releasing teachers or providing substitute teachers for staff development purposes.
14.5 	The report also must indicate whether the expenditures were incurred at the district 
14.6 	level or the school site level, and whether the school site expenditures were made possible 
14.7 	by grants to school sites that demonstrate exemplary use of allocated staff development 
14.8 	revenue. These expenditures must be reported using the uniform financial and accounting 
14.9 	and reporting standards.
14.10 	(c) The commissioner shall report the staff development progress and expenditure 
14.11 	data to the house of representatives and senate committees having jurisdiction over 
14.12 	education by February 15 each year.

14.13 	Sec. 19. Minnesota Statutes 2014, section 122A.72, subdivision 5, is amended to read:
14.14 		Subd. 5.Center functions. (a) A teacher center shall perform functions according 
14.15 	to this subdivision. The center shall assist teachers, diagnose learning needs, experiment 
14.16 	with the use of multiple instructional approaches, assess pupil outcomes, assess staff 
14.17 	development needs and plans, and teach school personnel about effective pedagogical 
14.18 	approaches. The center shall develop and produce curricula and curricular materials 
14.19 	designed to meet the educational needs of pupils being served, by applying educational 
14.20 	research and new and improved methods, practices, and techniques. The center shall 
14.21 	provide programs to improve the skills of teachers to meet the special educational needs of 
14.22 	pupils. The center shall provide programs to familiarize teachers with developments in 
14.23 	curriculum formulation and educational research, including how research can be used to 
14.24 	improve teaching skills. The center shall facilitate sharing of resources, ideas, methods, 
14.25 	and approaches directly related to classroom instruction and improve teachers' familiarity 
14.26 	with current teaching materials and products for use in their classrooms. The center shall 
14.27 	provide in-service programs.
14.28 	(b) Each teacher center must provide a professional development program to train 
14.29 	interested and highly qualified elementary, middle, and secondary teachers, selected by the 
14.30 	employing school district, to assist other teachers in that district with mathematics and 
14.31 	science curriculum, standards, and instruction so that all teachers have access to:
14.32 	(1) high quality professional development programs in mathematics and science that 
14.33 	address curriculum, instructional methods, alignment of standards, and performance 
14.34 	measurements, enhance teacher and student learning, and support state mathematics and 
14.35 	science standards; and
15.1 	(2) research-based mathematics and science programs and instructional models 
15.2 	premised on best practices that inspire teachers and students and have practical classroom 
15.3 	application.

15.4 	Sec. 20. Minnesota Statutes 2014, section 122A.74, subdivision 1, is amended to read:
15.5 		Subdivision 1.Establishment. (a) The commissioner of education may contract 
15.6 	with the Minnesota State University Mankato or the regents of the University of Minnesota 
15.7 	to establish a Principals' Leadership Institute to provide professional development to 
15.8 	school principals by:
15.9 	(1) creating a network of leaders in the educational and business communities to 
15.10 	communicate current and future trends in leadership techniques;
15.11 	(2) helping to create a vision for the school that is aligned with the community 
15.12 	and district priorities;
15.13 	(3) developing strategies to retain highly qualified teachers and ensure that diverse 
15.14 	student populations, including at-risk students, children with disabilities, English learners, 
15.15 	and gifted students, among others, have equal access to these highly qualified teachers; and
15.16 	(4) providing training to analyze data using culturally competent tools.
15.17 	(b) The University of Minnesota must cooperate with participating members of the 
15.18 	business community to provide funding and content for the institute.
15.19 	(c) Participants must agree to attend the Principals' Leadership Institute for four 
15.20 	weeks during the academic summer.
15.21 	(d) The Principals' Leadership Institute must incorporate program elements offered 
15.22 	by leadership programs at the University of Minnesota and program elements used by 
15.23 	the participating members of the business community to enhance leadership within their 
15.24 	businesses.

15.25 	Sec. 21. Minnesota Statutes 2015 Supplement, section 124D.231, subdivision 2, 
15.26 	is amended to read:
15.27 		Subd. 2.Full-service community school program. (a) The commissioner shall 
15.28 	provide funding to eligible school sites to plan, implement, and improve full-service 
15.29 	community schools. Eligible school sites must meet one of the following criteria:
15.30 	(1) the school is on a development plan for continuous improvement under section 
15.31 	120B.35, subdivision 2; or
15.32 	(2) the school is in a district that has an achievement and integration plan approved 
15.33 	by the commissioner of education under sections 124D.861 and 124D.862.
16.1 	(b) An eligible school site may receive up to $100,000 annually. School sites 
16.2 	receiving funding under this section shall hire or contract with a partner agency to hire a 
16.3 	site coordinator to coordinate services at each covered school site.
16.4 	(c) Implementation funding of up to $20,000 must be available for up to one year for 
16.5 	planning for school sites. At the end of this period, the school must submit a full-service 
16.6 	community school plan, pursuant to paragraph (g).
16.7 	(d) The commissioner shall dispense the funds to schools with significant populations 
16.8 	of students receiving free or reduced-price lunches. Schools with significant homeless and 
16.9 	highly mobile students shall also be a priority. The commissioner must also dispense the 
16.10 	funds in a manner to ensure equity among urban, suburban, and greater Minnesota schools.
16.11 	(e) A school site must establish a school leadership team responsible for developing 
16.12 	school-specific programming goals, assessing program needs, and overseeing the process 
16.13 	of implementing expanded programming at each covered site. The school leadership team 
16.14 	shall have between 12 to 15 members and shall meet the following requirements:
16.15 	(1) at least 30 percent of the members are parents and 30 percent of the members 
16.16 	are teachers at the school site and must include the school principal and representatives 
16.17 	from partner agencies; and
16.18 	(2) the school leadership team must be responsible for overseeing the baseline 
16.19 	analyses under paragraph (f). A school leadership team must have ongoing responsibility 
16.20 	for monitoring the development and implementation of full-service community school 
16.21 	operations and programming at the school site and shall issue recommendations to schools 
16.22 	on a regular basis and summarized in an annual report. These reports shall also be made 
16.23 	available to the public at the school site and on school and district Web sites.
16.24 	(f) School sites must complete a baseline analysis prior to beginning programming 
16.25 	as a full-service community school. The analysis shall include:
16.26 	(1) a baseline analysis of needs at the school site, led by the school leadership team, 
16.27 	which shall include the following elements:
16.28 	(i) identification of challenges facing the school;
16.29 	(ii) analysis of the student body, including:
16.30 	(A) number and percentage of students with disabilities and needs of these students;
16.31 	(B) number and percentage of students who are English learners and the needs of 
16.32 	these students;
16.33 	(C) number of students who are homeless or highly mobile; and
16.34 	(D) number and percentage of students receiving free or reduced-price lunch and the 
16.35 	needs of these students;
17.1 	(iii) analysis of enrollment and retention rates for students with disabilities, 
17.2 	English learners, homeless and highly mobile students, and students receiving free or 
17.3 	reduced-price lunch;
17.4 	(iv) analysis of suspension and expulsion data, including the justification for such 
17.5 	disciplinary actions and the degree to which particular populations, including, but not 
17.6 	limited to, students of color, students with disabilities, students who are English learners, 
17.7 	and students receiving free or reduced-price lunch are represented among students subject 
17.8 	to such actions;
17.9 	(v) analysis of school achievement data disaggregated by major demographic 
17.10 	categories, including, but not limited to, race, ethnicity, English learner status, disability 
17.11 	status, and free or reduced-price lunch status;
17.12 	(vi) analysis of current parent engagement strategies and their success; and
17.13 	(vii) evaluation of the need for and availability of wraparound services, including, 
17.14 	but not limited to:
17.15 	(A) mechanisms for meeting students' social, emotional, and physical health needs, 
17.16 	which may include coordination of existing services as well as the development of new 
17.17 	services based on student needs; and
17.18 	(B) strategies to create a safe and secure school environment and improve school 
17.19 	climate and discipline, such as implementing a system of positive behavioral supports, and 
17.20 	taking additional steps to eliminate bullying;
17.21 	(2) a baseline analysis of community assets and a strategic plan for utilizing 
17.22 	and aligning identified assets. This analysis should include, but is not limited to, a 
17.23 	documentation of individuals in the community, faith-based organizations, community and 
17.24 	neighborhood associations, colleges, hospitals, libraries, businesses, and social service 
17.25 	agencies who may be able to provide support and resources; and
17.26 	(3) a baseline analysis of needs in the community surrounding the school, led by 
17.27 	the school leadership team, including, but not limited to:
17.28 	(i) the need for high-quality, full-day child care and early childhood education 
17.29 	programs;
17.30 	(ii) the need for physical and mental health care services for children and adults; and
17.31 	(iii) the need for job training and other adult education programming.
17.32 	(g) Each school site receiving funding under this section must establish at least two 
17.33 	of the following types of programming:
17.34 	(1) early childhood:
17.35 	(i) early childhood education; and
17.36 	(ii) child care services;
18.1 	(2) academic:
18.2 	(i) academic support and enrichment activities, including expanded learning time;
18.3 	(ii) summer or after-school enrichment and learning experiences;
18.4 	(iii) job training, internship opportunities, and career counseling services;
18.5 	(iv) programs that provide assistance to students who have been truant, suspended, 
18.6 	or expelled; and
18.7 	(v) specialized instructional support services;
18.8 	(3) parental involvement:
18.9 	(i) programs that promote parental involvement and family literacy, including the 
18.10 	Reading First and Early Reading First programs authorized under part B of title I of the 
18.11 	Elementary and Secondary Education Act of 1965, United States Code, title 20, section 
18.12 	6361, et seq.;
18.13 	(ii) parent leadership development activities; and
18.14 	(iii) parenting education activities;
18.15 	(4) mental and physical health:
18.16 	(i) mentoring and other youth development programs, including peer mentoring and 
18.17 	conflict mediation;
18.18 	(ii) juvenile crime prevention and rehabilitation programs;
18.19 	(iii) home visitation services by teachers and other professionals;
18.20 	(iv) developmentally appropriate physical education;
18.21 	(v) nutrition services;
18.22 	(vi) primary health and dental care; and
18.23 	(vii) mental health counseling services;
18.24 	(5) community involvement:
18.25 	(i) service and service-learning opportunities;
18.26 	(ii) adult education, including instruction in English as a second language; and
18.27 	(iii) homeless prevention services;
18.28 	(6) positive discipline practices; and
18.29 	(7) other programming designed to meet school and community needs identified in 
18.30 	the baseline analysis and reflected in the full-service community school plan.
18.31 	(h) The school leadership team at each school site must develop a full-service 
18.32 	community school plan detailing the steps the school leadership team will take, including:
18.33 	(1) timely establishment and consistent operation of the school leadership team;
18.34 	(2) maintenance of attendance records in all programming components;
18.35 	(3) maintenance of measurable data showing annual participation and the impact 
18.36 	of programming on the participating children and adults;
19.1 	(4) documentation of meaningful and sustained collaboration between the school 
19.2 	and community stakeholders, including local governmental units, civic engagement 
19.3 	organizations, businesses, and social service providers;
19.4 	(5) establishment and maintenance of partnerships with institutions, such as 
19.5 	universities, hospitals, museums, or not-for-profit community organizations to further the 
19.6 	development and implementation of community school programming;
19.7 	(6) ensuring compliance with the district nondiscrimination policy; and
19.8 	(7) plan for school leadership team development.

19.9 	Sec. 22. Minnesota Statutes 2015 Supplement, section 124D.73, subdivision 4, is 
19.10 	amended to read:
19.11 		Subd. 4.Participating school; American Indian school. "Participating school" 
19.12 	and "American Indian school" mean a school that:
19.13 	(1) is not operated by a school district; and
19.14 	(2) is eligible for a grant under federal Title VII VI of the Elementary and Secondary 
19.15 	Education Act for the education of American Indian children.

19.16 	Sec. 23. Minnesota Statutes 2014, section 127A.095, is amended to read:
19.17 	127A.095 IMPLEMENTATION OF NO CHILD LEFT BEHIND ACT 
19.18 	ELEMENTARY AND SECONDARY EDUCATION ACT.
19.19 		Subdivision 1.Continued implementation. The Department of Education shall 
19.20 	continue to implement the federal No Child Left Behind Act, Public Law 107-110, 
19.21 	Elementary and Secondary Education Act without interruption.
19.22 		Subd. 2.No Child Left Behind review. (a) The legislature intends to require 
19.23 	the Department of Education to conduct a comprehensive review of the consolidated 
19.24 	state plan the state submitted to the federal Department of Education to implement the 
19.25 	No Child Left Behind Act. The Minnesota Department of Education shall seek waivers 
19.26 	under paragraph (b). If the Department of Education is unable to obtain waivers under 
19.27 	paragraph (b), it should recommend in its report under paragraph (b) whether the state 
19.28 	should opt out of the No Child Left Behind Act.
19.29 	(b) The commissioner, by January 15, 2008, shall report to the house of 
19.30 	representatives and senate committees having jurisdiction over kindergarten through grade 
19.31 	12 education policy and finance whether the department has received approval from 
19.32 	the federal Department of Education to:
19.33 	(1) participate in the growth model pilot program;
20.1 	(2) exclude from sanctions schools that have not made adequate yearly progress due 
20.2 	solely to a subgroup of students with disabilities not testing at a proficient level;
20.3 	(3) identify a school as not making adequate yearly progress only after the school has 
20.4 	missed the adequate yearly progress targets in the same subgroup for two consecutive years;
20.5 	(4) determine when to hold schools accountable for including an English learner 
20.6 	in adequate yearly progress calculations;
20.7 	(5) allow a district not making adequate yearly progress to offer supplemental 
20.8 	educational services as an option before offering school choice;
20.9 	(6) allow a district not making adequate yearly progress to also be the supplemental 
20.10 	educational services provider;
20.11 	(7) allow the state to maintain a subgroup size to 40 for the purposes of calculating 
20.12 	adequate yearly progress for subgroups of English learners and subgroups of students 
20.13 	with disabilities; and
20.14 	(8) create flexibility to enable the state to define and identify highly qualified teachers.
20.15 		Subd. 3.Department of Management and Budget certification. If the federal 
20.16 	Department of Education does not transmit to the commissioner of education its approval 
20.17 	of the conditions in subdivision 2, paragraph (b), The commissioner of management and 
20.18 	budget shall certify and report to the legislature annually beginning January 1, 2008, the 
20.19 	amount of federal revenue, if any, that the federal government may withhold as a result 
20.20 	of a potential state decision to discontinue implementation of the No Child Left Behind 
20.21 	Act Elementary and Secondary Education Act. The report shall also specify the intended 
20.22 	purpose of the federal revenue and the amount of revenue that the federal government may 
20.23 	withhold from the state, each school district, and each charter school in each fiscal year.

20.24 	Sec. 24.  REPEALER.
 20.25 	(a) Minnesota Statutes 2014, sections 120B.299, subdivision 5; and 122A.413, 
20.26 	subdivision 3, are repealed.
20.27 	(b) Minnesota Statutes 2015 Supplement, section 122A.413, subdivisions 1 and 
20.28 	2, are repealed.

20.29 	ARTICLE 3
20.30 	CHARTER SCHOOLS

20.31 	Section 1. Minnesota Statutes 2015 Supplement, section 124E.05, subdivision 7, is 
20.32 	amended to read:
20.33 		Subd. 7.Withdrawal. If the governing board of an approved authorizer votes to 
20.34 	withdraw as an approved authorizer for a reason unrelated to any cause under section 
21.1 	124E.10, subdivision 4, the authorizer must notify all its chartered schools and the 
21.2 	commissioner in writing by July 15 of its intent to withdraw as an authorizer on June 30 
21.3 	in the next calendar year, regardless of when the authorizer's five-year term of approval 
21.4 	ends. The commissioner may approve the transfer of a charter school to a new authorizer 
21.5 	under this subdivision after the new authorizer submits an affidavit to the commissioner 
21.6 	section 124E.10, subdivision 5.

21.7 	Sec. 2. Minnesota Statutes 2015 Supplement, section 124E.10, subdivision 1, is 
21.8 	amended to read:
21.9 		Subdivision 1.Contents. (a) The authorization for a charter school must be in the 
21.10 	form of a written contract signed by the authorizer and the board of directors of the charter 
21.11 	school. The contract must be completed within 45 business days of the commissioner's 
21.12 	approval of the authorizer's affidavit. The authorizer shall submit to the commissioner a 
21.13 	copy of the signed charter contract within ten business days of its execution. The contract 
21.14 	for a charter school must be in writing and contain at least the following:
21.15 	(1) a declaration that the charter school will carry out the primary purpose in section 
21.16 	124E.01, subdivision 1, and how the school will report its implementation of the primary 
21.17 	purpose;
21.18 	(2) a declaration of the additional purpose or purposes in section 124E.01, 
21.19 	subdivision 1, that the school intends to carry out and how the school will report its 
21.20 	implementation of those purposes;
21.21 	(3) a description of the school program and the specific academic and nonacademic 
21.22 	outcomes that pupils must achieve;
21.23 	(4) a statement of admission policies and procedures;
21.24 	(5) a governance, management, and administration plan for the school;
21.25 	(6) signed agreements from charter school board members to comply with all 
21.26 	federal and state laws governing organizational, programmatic, and financial requirements 
21.27 	applicable to charter schools;
21.28 	(7) the criteria, processes, and procedures that the authorizer will use to monitor and 
21.29 	evaluate the fiscal, operational, and academic performance consistent with subdivision 
21.30 	3, paragraphs (a) and (b);
21.31 	(8) for contract renewal, the formal written performance evaluation of the school 
21.32 	that is a prerequisite for reviewing a charter contract under subdivision 3;
21.33 	(9) types and amounts of insurance liability coverage to be obtained by the charter 
21.34 	school, consistent with section 124E.03, subdivision 2, paragraph (d);
22.1 	(10) consistent with section 124E.09, paragraph (d), a provision to indemnify and 
22.2 	hold harmless the authorizer and its officers, agents, and employees from any suit, claim, 
22.3 	or liability arising from any operation of the charter school, and the commissioner and 
22.4 	department officers, agents, and employees notwithstanding section 3.736;
22.5 	(11) the term of the initial contract, which may be up to five years plus an additional 
22.6 	a preoperational planning year period, and up to five years for a renewed contract or a 
22.7 	contract with a new authorizer after a transfer of authorizers, if warranted by the school's 
22.8 	academic, financial, and operational performance;
22.9 	(12) how the board of directors or the operators of the charter school will provide 
22.10 	special instruction and services for children with a disability under sections 125A.03 
22.11 	to 125A.24, and 125A.65, a description of the financial parameters within which the 
22.12 	charter school will operate to provide the special instruction and services to children 
22.13 	with a disability;
22.14 	(13) the specific conditions for contract renewal that identify performance of all 
22.15 	students under the primary purpose of section 124E.01, subdivision 1, as the most 
22.16 	important factor in determining contract renewal;
22.17 	(14) the additional purposes under section 124E.01, subdivision 1, and related 
22.18 	performance obligations under clause (7) contained in the charter contract as additional 
22.19 	factors in determining contract renewal; and
22.20 	(15) the plan for an orderly closing of the school under chapter 317A, whether 
22.21 	the closure is a termination for cause, a voluntary termination, or a nonrenewal of the 
22.22 	contract, that includes establishing the responsibilities of the school board of directors 
22.23 	and the authorizer and notifying the commissioner, authorizer, school district in which the 
22.24 	charter school is located, and parents of enrolled students about the closure, information 
22.25 	and assistance sufficient to enable the student to re-enroll in another school, the transfer 
22.26 	of student records under section 124E.03, subdivision 5, paragraph (b), and procedures 
22.27 	for closing financial operations.
22.28 	(b) A charter school must design its programs to at least meet the outcomes adopted 
22.29 	by the commissioner for public school students, including world's best workforce goal 
22.30 	under section 120B.11, subdivision 1. In the absence of the commissioner's requirements, 
22.31 	the school must meet the outcomes contained in the contract with the authorizer. The 
22.32 	achievement levels of the outcomes contained in the contract may exceed the achievement 
22.33 	levels of any outcomes adopted by the commissioner for public school students.

22.34 	Sec. 3. Minnesota Statutes 2015 Supplement, section 124E.10, subdivision 5, is 
22.35 	amended to read:
23.1 		Subd. 5.Mutual nonrenewal. If the authorizer and the charter school board of 
23.2 	directors mutually agree not to renew the contract, or if the governing board of an approved 
23.3 	authorizer votes to withdraw as an approved authorizer for a reason unrelated to any cause 
23.4 	under subdivision 4, a change in authorizers is allowed. The authorizer and the school 
23.5 	board must jointly submit a written and signed letter of their intent to the commissioner to 
23.6 	mutually not renew the contract. The authorizer that is a party to the existing contract must 
23.7 	inform the proposed authorizer about the fiscal, operational, and student performance status 
23.8 	of the school, as well as any including unmet contract outcomes and other outstanding 
23.9 	contractual obligations that exist. The charter contract between the proposed authorizer 
23.10 	and the school must identify and provide a plan to address any outstanding obligations from 
23.11 	the previous contract. The proposed contract must be submitted at least 105 business days 
23.12 	before the end of the existing charter contract. The commissioner shall have 30 business 
23.13 	days to review and make a determination. The proposed authorizer and the school shall 
23.14 	have 15 business days to respond to the determination and address any issues identified by 
23.15 	the commissioner. A final determination by the commissioner shall be made no later than 
23.16 	45 business days before the end of the current charter contract. If no change in authorizer 
23.17 	is approved, the school and the current authorizer may withdraw their letter of nonrenewal 
23.18 	and enter into a new contract. If the transfer of authorizers is not approved and the current 
23.19 	authorizer and the school do not withdraw their letter and enter into a new contract, the 
23.20 	school must be dissolved according to applicable law and the terms of the contract.

23.21 	Sec. 4. Minnesota Statutes 2015 Supplement, section 124E.16, subdivision 2, is 
23.22 	amended to read:
23.23 		Subd. 2.Annual public reports. (a) A charter school must publish an annual report 
23.24 	approved by the board of directors. The annual report must at least include information 
23.25 	on school enrollment, student attrition, governance and management, staffing, finances, 
23.26 	academic performance, innovative practices and implementation, and future plans. A 
23.27 	charter school may combine this report with the reporting required under section 120B.11. 
23.28 	A charter school must post the annual report on the school's official Web site. A charter 
23.29 	school must also distribute the annual report by publication, mail, or electronic means to 
23.30 	its authorizer, school employees, and parents and legal guardians of students enrolled in 
23.31 	the charter school. The reports are public data under chapter 13.
23.32 	(b) The commissioner shall establish specifications for An authorizer must submit an 
23.33 	authorizer's annual public report that in a manner specified by the commissioner by January 
23.34 	15 for the previous school year ending June 30 that shall at least include key indicators of 
23.35 	school academic, operational, and financial performance. The report is part of the system 
24.1 	to evaluate authorizer performance under section 124E.05, subdivision 5. The report shall 
24.2 	at least include key indicators of school academic, operational, and financial performance.

24.3 	ARTICLE 4
24.4 	SPECIAL EDUCATION

24.5 	Section 1. Minnesota Statutes 2015 Supplement, section 120B.125, is amended to read:
24.6 	120B.125 PLANNING FOR STUDENTS' SUCCESSFUL TRANSITION 
24.7 	TO POSTSECONDARY EDUCATION AND EMPLOYMENT; PERSONAL 
24.8 	LEARNING PLANS.
24.9 	(a) Consistent with sections 120B.13, 120B.131, 120B.132, 120B.14, 120B.15, 
24.10 	120B.30, subdivision 1, paragraph (c), 125A.08, and other related sections, school 
24.11 	districts, beginning in the 2013-2014 school year, must assist all students by no later 
24.12 	than grade 9 to explore their educational, college, and career interests, aptitudes, and 
24.13 	aspirations and develop a plan for a smooth and successful transition to postsecondary 
24.14 	education or employment. All students' plans must:
24.15 	(1) provide a comprehensive plan to prepare for and complete a career and college 
24.16 	ready curriculum by meeting state and local academic standards and developing career and 
24.17 	employment-related skills such as team work, collaboration, creativity, communication, 
24.18 	critical thinking, and good work habits;
24.19 	(2) emphasize academic rigor and high expectations;
24.20 	(3) help students identify interests, aptitudes, aspirations, and personal learning 
24.21 	styles that may affect their career and college ready goals and postsecondary education 
24.22 	and employment choices;
24.23 	(4) set appropriate career and college ready goals with timelines that identify 
24.24 	effective means for achieving those goals;
24.25 	(5) help students access education and career options;
24.26 	(6) integrate strong academic content into career-focused courses and applied and 
24.27 	experiential learning opportunities and integrate relevant career-focused courses and 
24.28 	applied and experiential learning opportunities into strong academic content;
24.29 	(7) help identify and access appropriate counseling and other supports and assistance 
24.30 	that enable students to complete required coursework, prepare for postsecondary education 
24.31 	and careers, and obtain information about postsecondary education costs and eligibility 
24.32 	for financial aid and scholarship;
24.33 	(8) help identify collaborative partnerships among prekindergarten through grade 
24.34 	12 schools, postsecondary institutions, economic development agencies, and local and 
25.1 	regional employers that support students' transition to postsecondary education and 
25.2 	employment and provide students with applied and experiential learning opportunities; and
25.3 	(9) be reviewed and revised at least annually by the student, the student's parent or 
25.4 	guardian, and the school or district to ensure that the student's course-taking schedule keeps 
25.5 	the student making adequate progress to meet state and local academic standards and high 
25.6 	school graduation requirements and with a reasonable chance to succeed with employment 
25.7 	or postsecondary education without the need to first complete remedial course work.
25.8 	(b) A school district may develop grade-level curricula or provide instruction that 
25.9 	introduces students to various careers, but must not require any curriculum, instruction, 
25.10 	or employment-related activity that obligates an elementary or secondary student to 
25.11 	involuntarily select or pursue a career, career interest, employment goals, or related job 
25.12 	training.
25.13 	(c) Educators must possess the knowledge and skills to effectively teach all English 
25.14 	learners in their classrooms. School districts must provide appropriate curriculum, 
25.15 	targeted materials, professional development opportunities for educators, and sufficient 
25.16 	resources to enable English learners to become career and college ready.
25.17 	(d) When assisting students in developing a plan for a smooth and successful 
25.18 	transition to postsecondary education and employment, districts must recognize the unique 
25.19 	possibilities of each student and ensure that the contents of each student's plan reflect the 
25.20 	student's unique talents, skills, and abilities as the student grows, develops, and learns.
25.21 	(e) If a student with a disability has an individualized education program (IEP) or 
25.22 	standardized written plan that meets the plan components of this section, the IEP satisfies 
25.23 	the requirement and no additional plan is needed.

25.24 	Sec. 2. Minnesota Statutes 2014, section 122A.31, subdivision 3, is amended to read:
25.25 		Subd. 3.Qualified interpreters. The Department of Education and the resource 
25.26 	center: state specialist for deaf and hard of hearing hard-of-hearing shall work with 
25.27 	existing interpreter/transliterator training programs, other training/educational institutions, 
25.28 	and the regional service centers to ensure that ongoing staff development training for 
25.29 	educational interpreters/transliterators is provided throughout the state.

25.30 	Sec. 3. Minnesota Statutes 2014, section 124D.15, subdivision 15, is amended to read:
25.31 		Subd. 15.Eligibility. A child is eligible to participate in a school readiness program 
25.32 	if the child:
25.33 	(1) is at least three years old on September 1;
26.1 	(2) has completed health and developmental screening within 90 days of program 
26.2 	enrollment under sections 121A.16 to 121A.19; and
26.3 	(3) has one or more of the following risk factors:
26.4 	(i) qualifies for free or reduced-price lunch;
26.5 	(ii) is an English learner;
26.6 	(iii) is homeless;
26.7 	(iv) has an individualized education program (IEP) or an individual interagency 
26.8 	intervention plan (IIIP) standardized written plan;
26.9 	(v) is identified, through health and developmental screenings under sections 
26.10 	121A.16 to 121A.19, with a potential risk factor that may influence learning; or
26.11 	(vi) is defined as at-risk at risk by the school district.

26.12 	Sec. 4. Minnesota Statutes 2015 Supplement, section 125A.08, is amended to read:
26.13 	125A.08 INDIVIDUALIZED EDUCATION PROGRAMS.
26.14 	(a) At the beginning of each school year, each school district shall have in effect, for 
26.15 	each child with a disability, an individualized education program.
26.16 	(b) As defined in this section, every district must ensure the following:
26.17 	(1) all students with disabilities are provided the special instruction and services 
26.18 	which are appropriate to their needs. Where the individualized education program team 
26.19 	has determined appropriate goals and objectives based on the student's needs, including the 
26.20 	extent to which the student can be included in the least restrictive environment, and where 
26.21 	there are essentially equivalent and effective instruction, related services, or assistive 
26.22 	technology devices available to meet the student's needs, cost to the district may be among 
26.23 	the factors considered by the team in choosing how to provide the appropriate services, 
26.24 	instruction, or devices that are to be made part of the student's individualized education 
26.25 	program. The individualized education program team shall consider and may authorize 
26.26 	services covered by medical assistance according to section 256B.0625, subdivision 26. 
26.27 	The student's needs and the special education instruction and services to be provided must 
26.28 	be agreed upon through the development of an individualized education program. The 
26.29 	program must address the student's need to develop skills to live and work as independently 
26.30 	as possible within the community. The individualized education program team must 
26.31 	consider positive behavioral interventions, strategies, and supports that address behavior 
26.32 	needs for children. During grade 9, the program must address the student's needs for 
26.33 	transition from secondary services to postsecondary education and training, employment, 
26.34 	community participation, recreation, and leisure and home living. In developing the 
26.35 	program, districts must inform parents of the full range of transitional goals and related 
27.1 	services that should be considered. The program must include a statement of the needed 
27.2 	transition services, including a statement of the interagency responsibilities or linkages or 
27.3 	both before secondary services are concluded. If the IEP meets the plan components in 
27.4 	section 120B.125, the IEP satisfies the requirement and no additional plan is needed;
27.5 	(2) children with a disability under age five and their families are provided special 
27.6 	instruction and services appropriate to the child's level of functioning and needs;
27.7 	(3) children with a disability and their parents or guardians are guaranteed procedural 
27.8 	safeguards and the right to participate in decisions involving identification, assessment 
27.9 	including assistive technology assessment, and educational placement of children with a 
27.10 	disability;
27.11 	(4) eligibility and needs of children with a disability are determined by an initial 
27.12 	evaluation or reevaluation, which may be completed using existing data under United 
27.13 	States Code, title 20, section 33, et seq.;
27.14 	(5) to the maximum extent appropriate, children with a disability, including those 
27.15 	in public or private institutions or other care facilities, are educated with children who 
27.16 	are not disabled, and that special classes, separate schooling, or other removal of children 
27.17 	with a disability from the regular educational environment occurs only when and to the 
27.18 	extent that the nature or severity of the disability is such that education in regular classes 
27.19 	with the use of supplementary services cannot be achieved satisfactorily;
27.20 	(6) in accordance with recognized professional standards, testing and evaluation 
27.21 	materials, and procedures used for the purposes of classification and placement of children 
27.22 	with a disability are selected and administered so as not to be racially or culturally 
27.23 	discriminatory; and
27.24 	(7) the rights of the child are protected when the parents or guardians are not known 
27.25 	or not available, or the child is a ward of the state.
27.26 	(c) For all paraprofessionals employed to work in programs whose role in part is 
27.27 	to provide direct support to students with disabilities, the school board in each district 
27.28 	shall ensure that:
27.29 	(1) before or beginning at the time of employment, each paraprofessional must 
27.30 	develop sufficient knowledge and skills in emergency procedures, building orientation, 
27.31 	roles and responsibilities, confidentiality, vulnerability, and reportability, among other 
27.32 	things, to begin meeting the needs, especially disability-specific and behavioral needs, of 
27.33 	the students with whom the paraprofessional works;
27.34 	(2) annual training opportunities are required to enable the paraprofessional to 
27.35 	continue to further develop the knowledge and skills that are specific to the students with 
27.36 	whom the paraprofessional works, including understanding disabilities, the unique and 
28.1 	individual needs of each student according to the student's disability and how the disability 
28.2 	affects the student's education and behavior, following lesson plans, and implementing 
28.3 	follow-up instructional procedures and activities; and
28.4 	(3) a districtwide process obligates each paraprofessional to work under the ongoing 
28.5 	direction of a licensed teacher and, where appropriate and possible, the supervision of a 
28.6 	school nurse.

28.7 	Sec. 5. Minnesota Statutes 2014, section 125A.091, subdivision 11, is amended to read:
28.8 		Subd. 11.Facilitated team meeting. A facilitated team meeting is an IEP, IFSP, or 
28.9 	IIIPmultiagency team meeting led by an impartial state-provided facilitator to promote 
28.10 	effective communication and assist a team in developing an individualized education 
28.11 	program.

28.12 	Sec. 6. Minnesota Statutes 2015 Supplement, section 125A.0942, subdivision 3, 
28.13 	is amended to read:
28.14 		Subd. 3.Physical holding or seclusion. (a) Physical holding or seclusion may be 
28.15 	used only in an emergency. A school that uses physical holding or seclusion shall meet the 
28.16 	following requirements:
28.17 	(1) before using seclusion, review and document in a student's individualized 
28.18 	educational program whether there are any known medical or psychological limitations 
28.19 	that contraindicate the use of seclusion;
28.20 	(2) physical holding or seclusion is the least intrusive intervention that effectively 
28.21 	responds to the emergency;
28.22 	(2) (3) physical holding or seclusion is not used to discipline a noncompliant child;
28.23 	(3) (4) physical holding or seclusion ends when the threat of harm ends and the staff 
28.24 	determines the child can safely return to the classroom or activity;
28.25 	(4) (5) staff directly observes the child while physical holding or seclusion is being 
28.26 	used;
28.27 	(5) (6) each time physical holding or seclusion is used, the staff person who 
28.28 	implements or oversees the physical holding or seclusion documents, as soon as possible 
28.29 	after the incident concludes, the following information:
28.30 	(i) a description of the incident that led to the physical holding or seclusion;
28.31 	(ii) why a less restrictive measure failed or was determined by staff to be 
28.32 	inappropriate or impractical;
28.33 	(iii) the time the physical holding or seclusion began and the time the child was 
28.34 	released; and
29.1 	(iv) a brief record of the child's behavioral and physical status;
29.2 	(6) (7) the room used for seclusion must:
29.3 	(i) be at least six feet by five feet;
29.4 	(ii) be well lit, well ventilated, adequately heated, and clean;
29.5 	(iii) have a window that allows staff to directly observe a child in seclusion;
29.6 	(iv) have tamperproof fixtures, electrical switches located immediately outside the 
29.7 	door, and secure ceilings;
29.8 	(v) have doors that open out and are unlocked, locked with keyless locks that 
29.9 	have immediate release mechanisms, or locked with locks that have immediate release 
29.10 	mechanisms connected with a fire and emergency system; and
29.11 	(vi) not contain objects that a child may use to injure the child or others; and
29.12 	(7) (8) before using a room for seclusion, a school must:
29.13 	(i) receive written notice from local authorities that the room and the locking 
29.14 	mechanisms comply with applicable building, fire, and safety codes; and
29.15 	(ii) register the room with the commissioner, who may view that room; and.
29.16 	(8) until August 1, 2015, a school district may use prone restraints with children 
29.17 	age five or older if:
29.18 	(i) the district has provided to the department a list of staff who have had specific 
29.19 	training on the use of prone restraints;
29.20 	(ii) the district provides information on the type of training that was provided and 
29.21 	by whom;
29.22 	(iii) only staff who received specific training use prone restraints;
29.23 	(iv) each incident of the use of prone restraints is reported to the department within 
29.24 	five working days on a form provided by the department; and
29.25 	(v) the district, before using prone restraints, must review any known medical or 
29.26 	psychological limitations that contraindicate the use of prone restraints.
29.27 	(b) A school district must provide the department with seclusion data related to 
29.28 	incidents of seclusion and individual students who experience the use of seclusion in the 
29.29 	form and manner determined by the commissioner. The department must collect data on 
29.30 	districts' use of prone restraints seclusion and publish the data in a readily accessible format 
29.31 	on the department's Web site on a quarterly basis. The department shall contact and provide 
29.32 	targeted technical assistance to the district after reviewing the submitted seclusion data.
29.33 	(b) (c) By February 1, 2015, and annually thereafter, stakeholders may, as necessary, 
29.34 	recommend to the commissioner specific and measurable implementation and outcome 
29.35 	goals for reducing the use of restrictive procedures and the commissioner must submit to 
29.36 	the legislature a report on districts' progress in reducing the use of restrictive procedures 
30.1 	that recommends how to further reduce these procedures and eliminate the use of prone 
30.2 	restraints seclusion. The statewide plan includes the following components: measurable 
30.3 	goals; the resources, training, technical assistance, mental health services, and collaborative 
30.4 	efforts needed to significantly reduce districts' use of prone restraints seclusion; and 
30.5 	recommendations to clarify and improve the law governing districts' use of restrictive 
30.6 	procedures. The commissioner must consult with interested stakeholders when preparing 
30.7 	the report, including representatives of advocacy organizations, special education directors, 
30.8 	teachers, paraprofessionals, intermediate school districts, school boards, day treatment 
30.9 	providers, county social services, state human services department staff, mental health 
30.10 	professionals, and autism experts. By June 30 each year, districts must report summary 
30.11 	data on their use of restrictive procedures to the department, in a form and manner 
30.12 	determined by the commissioner. The summary data must include information about the 
30.13 	use of restrictive procedures, including use of reasonable force under section 121A.582.

30.14 	EFFECTIVE DATE. This section is effective for the 2016-2017 school year and 
30.15 	later.

30.16 	Sec. 7. Minnesota Statutes 2014, section 125A.0942, subdivision 4, is amended to read:
30.17 		Subd. 4.Prohibitions. The following actions or procedures are prohibited:
30.18 	(1) engaging in conduct prohibited under section 121A.58;
30.19 	(2) requiring a child to assume and maintain a specified physical position, activity, 
30.20 	or posture that induces physical pain;
30.21 	(3) totally or partially restricting a child's senses as punishment;
30.22 	(4) presenting an intense sound, light, or other sensory stimuli using smell, taste, 
30.23 	substance, or spray as punishment;
30.24 	(5) denying or restricting a child's access to equipment and devices such as walkers, 
30.25 	wheelchairs, hearing aids, and communication boards that facilitate the child's functioning, 
30.26 	except when temporarily removing the equipment or device is needed to prevent injury 
30.27 	to the child or others or serious damage to the equipment or device, in which case the 
30.28 	equipment or device shall be returned to the child as soon as possible;
30.29 	(6) interacting with a child in a manner that constitutes sexual abuse, neglect, or 
30.30 	physical abuse under section 626.556;
30.31 	(7) withholding regularly scheduled meals or water;
30.32 	(8) denying access to bathroom facilities; and
30.33 	(9) physical holding that restricts or impairs a child's ability to breathe, restricts or 
30.34 	impairs a child's ability to communicate distress, places pressure or weight on a child's 
31.1 	head, throat, neck, chest, lungs, sternum, diaphragm, back, or abdomen, or results in 
31.2 	straddling a child's torso.; and
31.3 	(10) prone restraint.

31.4 	EFFECTIVE DATE. The section is effective the day following final enactment.

31.5 	ARTICLE 5
31.6 	FACILITIES AND TECHNOLOGY

31.7 	Section 1. Minnesota Statutes 2015 Supplement, section 123B.53, subdivision 1, is 
31.8 	amended to read:
31.9 		Subdivision 1.Definitions. (a) For purposes of this section, the eligible debt service 
31.10 	revenue of a district is defined as follows:
31.11 	(1) the amount needed to produce between five and six percent in excess of the 
31.12 	amount needed to meet when due the principal and interest payments on the obligations 
31.13 	of the district for eligible projects according to subdivision 2, including the amounts 
31.14 	necessary for repayment of energy loans according to section 216C.37 or sections 298.292 
31.15 	to 298.298, debt service loans, capital loans, and lease purchase payments under section 
31.16 	126C.40, subdivision 2, excluding long-term facilities maintenance levies under section 
31.17 	123B.595, minus
31.18 	(2) the amount of debt service excess levy reduction for that school year calculated 
31.19 	according to the procedure established by the commissioner.
31.20 	(b) The obligations in this paragraph are excluded from eligible debt service revenue:
31.21 	(1) obligations under section 123B.61;
31.22 	(2) the part of debt service principal and interest paid from the taconite environmental 
31.23 	protection fund or Douglas J. Johnson economic protection trust, excluding the portion of 
31.24 	taconite payments from the Iron Range school consolidation and cooperatively operated 
31.25 	school account under section 298.28, subdivision 7a;
31.26 	(3) obligations issued under Laws 1991, chapter 265, article 5, section 18, as 
31.27 	amended by Laws 1992, chapter 499, article 5, section 24;
31.28 	(4) obligations under section 123B.62; and
31.29 	(5) obligations equalized under section 123B.535.
31.30 	(c) For purposes of this section, if a preexisting school district reorganized under 
31.31 	sections 123A.35 to 123A.43, 123A.46, and 123A.48 is solely responsible for retirement 
31.32 	of the preexisting district's bonded indebtedness, capital loans or debt service loans, debt 
31.33 	service equalization aid must be computed separately for each of the preexisting districts.
32.1 	(d) For purposes of this section, the adjusted net tax capacity determined according 
32.2 	to sections 127A.48 and 273.1325 shall be adjusted to include the tax capacity of property 
32.3 	generally exempted from ad valorem taxes under section 272.02, subdivision 64.

32.4 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
32.5 	later.

32.6 	Sec. 2. Minnesota Statutes 2014, section 123B.571, subdivision 2, is amended to read:
32.7 		Subd. 2.Radon testing. A school district may include radon testing as a part of 
32.8 	its health and safety ten-year facility plan under section 123B.595, subdivision 4. If a 
32.9 	school district receives authority to use health and safety long-term facilities maintenance 
32.10 	revenue to conduct radon testing, the district shall conduct the testing according to the 
32.11 	radon testing plan developed by the commissioners of health and education.

32.12 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
32.13 	later.

32.14 	Sec. 3. Minnesota Statutes 2015 Supplement, section 123B.595, subdivision 4, is 
32.15 	amended to read:
32.16 		Subd. 4.Facilities plans. (a) To qualify for revenue under this section, a school 
32.17 	district or intermediate district, not including a charter school, must have a ten-year facility 
32.18 	plan adopted by the school board and approved by the commissioner. The plan must include 
32.19 	provisions for implementing a health and safety program that complies with health, safety, 
32.20 	and environmental regulations and best practices, including indoor air quality management.
32.21 	(b) The district must annually update the plan, biennially submit a facility 
32.22 	maintenance the plan to the commissioner for approval by July 31, and indicate whether 
32.23 	the district will issue bonds to finance the plan or levy for the costs.
32.24 	(c) For school districts issuing bonds to finance the plan, the plan must include a 
32.25 	debt service schedule demonstrating that the debt service revenue required to pay the 
32.26 	principal and interest on the bonds each year will not exceed the projected long-term 
32.27 	facilities revenue for that year.

32.28 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
32.29 	later.

32.30 	Sec. 4. Minnesota Statutes 2015 Supplement, section 123B.595, subdivision 7, is 
32.31 	amended to read:
33.1 		Subd. 7.Long-term facilities maintenance equalization revenue. (a) For fiscal 
33.2 	year 2017 only, a district's long-term facilities maintenance equalization revenue equals 
33.3 	the lesser of (1) $193 times the adjusted pupil units or (2) the district's revenue under 
33.4 	subdivision 1.
33.5 	(b) For fiscal year 2018 only, a district's long-term facilities maintenance 
33.6 	equalization revenue equals the lesser of (1) $292 times the adjusted pupil units or (2) 
33.7 	the district's revenue under subdivision 1.
33.8 	(c) For fiscal year 2019 and later, a district's long-term facilities maintenance 
33.9 	equalization revenue equals the lesser of (1) $380 times the adjusted pupil units or (2) 
33.10 	the district's revenue under subdivision 1.
33.11 	(d) Notwithstanding paragraphs (a) to (c), a district's long-term facilities maintenance 
33.12 	equalization revenue must not be less than the lesser of the district's long-term facilities 
33.13 	maintenance revenue or the amount of aid the district received for fiscal year 2015 under 
33.14 	Minnesota Statutes 2014, section 123B.59, subdivision 6.

33.15 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
33.16 	later.

33.17 	Sec. 5. Minnesota Statutes 2015 Supplement, section 123B.595, subdivision 8, is 
33.18 	amended to read:
33.19 		Subd. 8.Long-term facilities maintenance equalized levy. For fiscal year 2017 
33.20 	and later, a district's long-term facilities maintenance equalized levy equals the district's 
33.21 	long-term facilities maintenance equalization revenue minus the greater of:
33.22 	(1) the lesser of the district's long-term facilities maintenance equalization revenue 
33.23 	or the amount of aid the district received for fiscal year 2015 under Minnesota Statutes 
33.24 	2014, section 123B.59, subdivision 6; or
33.25 	(2) the district's long-term facilities maintenance equalization revenue times the 
33.26 	greater of (i) zero or (ii) one minus the ratio of its adjusted net tax capacity per adjusted 
33.27 	pupil unit in the year preceding the year the levy is certified to 123 percent of the state 
33.28 	average adjusted net tax capacity per adjusted pupil unit for all school districts in the 
33.29 	year preceding the year the levy is certified.

33.30 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
33.31 	later.

33.32 	Sec. 6. Minnesota Statutes 2015 Supplement, section 123B.595, is amended by adding 
33.33 	a subdivision to read:
34.1 		Subd. 8a.Long-term facilities maintenance unequalized levy. For fiscal year 
34.2 	2017 and later, a district's long-term facilities maintenance unequalized levy equals the 
34.3 	difference between the district's revenue under subdivision 1 and the district's equalization 
34.4 	revenue under subdivision 7.

34.5 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
34.6 	later.

34.7 	Sec. 7. Minnesota Statutes 2015 Supplement, section 123B.595, subdivision 9, is 
34.8 	amended to read:
34.9 		Subd. 9.Long-term facilities maintenance equalized aid. For fiscal year 2017 
34.10 	and later, a district's long-term facilities maintenance equalized aid equals its long-term 
34.11 	facilities maintenance equalization revenue minus its long-term facilities maintenance 
34.12 	equalized levy times the ratio of the actual equalized amount levied to the permitted 
34.13 	equalized levy.

34.14 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
34.15 	later.

34.16 	Sec. 8. Minnesota Statutes 2015 Supplement, section 123B.595, subdivision 10, 
34.17 	is amended to read:
34.18 		Subd. 10.Allowed uses for long-term facilities maintenance revenue. (a) A 
34.19 	district may use revenue under this section for any of the following:
34.20 	(1) deferred capital expenditures and maintenance projects necessary to prevent 
34.21 	further erosion of facilities;
34.22 	(2) increasing accessibility of school facilities; or
34.23 	(3) health and safety capital projects under section 123B.57.; or
34.24 	(4) by board resolution, to transfer money from the general fund reserve for long-term 
34.25 	facilities maintenance to the debt redemption fund to pay the amounts needed to meet, 
34.26 	when due, principal and interest on general obligation bonds issued under subdivision 5.
34.27 	(b) A charter school may use revenue under this section for any purpose related 
34.28 	to the school.

34.29 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
34.30 	later.

34.31 	Sec. 9. Minnesota Statutes 2015 Supplement, section 123B.595, subdivision 11, 
34.32 	is amended to read:
35.1 		Subd. 11.Restrictions on long-term facilities maintenance revenue.
 35.2 	Notwithstanding subdivision 11 10, long-term facilities maintenance revenue may not 
35.3 	be used:
35.4 	(1) for the construction of new facilities, remodeling of existing facilities, or the 
35.5 	purchase of portable classrooms;
35.6 	(2) to finance a lease purchase agreement, installment purchase agreement, or other 
35.7 	deferred payments agreement;
35.8 	(3) for energy-efficiency projects under section 123B.65, for a building or property 
35.9 	or part of a building or property used for postsecondary instruction or administration, or 
35.10 	for a purpose unrelated to elementary and secondary education; or
35.11 	(4) for violence prevention and facility security, ergonomics, or emergency 
35.12 	communication devices.

35.13 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
35.14 	later.

35.15 	Sec. 10. Minnesota Statutes 2014, section 123B.60, subdivision 1, is amended to read:
35.16 		Subdivision 1.Bonds. When a building owned by a district is substantially damaged 
35.17 	by an act of God or other means beyond the control of the district, the district may issue 
35.18 	general obligation bonds without an election to provide money immediately to carry 
35.19 	out its adopted health and safety long-term facilities maintenance program. Each year 
35.20 	the district must pledge an attributable share of its health and safety long-term facilities 
35.21 	maintenance revenue to the repayment of principal and interest on the bonds. The pledged 
35.22 	revenue must be transferred to recognized in the debt redemption fund of the district. The 
35.23 	district must submit to the department the repayment schedule for any bonds issued under 
35.24 	this section. The district must deposit in the debt redemption fund all proceeds received 
35.25 	for specific costs for which the bonds were issued, including but not limited to:
35.26 	(1) insurance proceeds;
35.27 	(2) restitution proceeds; and
35.28 	(3) proceeds of litigation or settlement of a lawsuit.
35.29 	Before bonds are issued, the district must submit a combined an amended 
35.30 	application to the commissioner for health and safety long-term facilities maintenance 
35.31 	revenue, according to section 123B.57, and requesting review and comment, according 
35.32 	to section 123B.71, subdivisions 8, 9, 11, and 12 123B.595. The commissioner shall 
35.33 	complete all procedures concerning the combined application within 20 days of receiving 
35.34 	the application. The publication provisions of section 123B.71, subdivision 12, do not 
35.35 	apply to bonds issued under this section.

36.1 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
36.2 	later.

36.3 	Sec. 11. Minnesota Statutes 2014, section 123B.71, subdivision 8, is amended to read:
36.4 		Subd. 8.Review and comment. A school district, a special education cooperative, 
36.5 	or a cooperative unit of government, as defined in section 123A.24, subdivision 2, 
36.6 	must not initiate an installment contract for purchase or a lease agreement, hold a 
36.7 	referendum for bonds, nor solicit bids for new construction, expansion, or remodeling of 
36.8 	an educational facility that requires an expenditure in excess of $500,000 per school site if 
36.9 	it has a capital loan outstanding, or $2,000,000 per school site if it does not have a capital 
36.10 	loan outstanding, prior to review and comment by the commissioner. A facility addition, 
36.11 	maintenance project, or remodeling project funded only with general education revenue, 
36.12 	deferred maintenance revenue, alternative facilities bonding and levy program revenue, 
36.13 	lease levy proceeds, capital facilities bond proceeds, or health and safety long-term 
36.14 	facilities maintenance revenue is exempt from this provision. A capital project under 
36.15 	section 123B.63 addressing only technology is exempt from this provision if the district 
36.16 	submits a school board resolution stating that funds approved by the voters will be used 
36.17 	only as authorized in section 126C.10, subdivision 14. A school board shall not separate 
36.18 	portions of a single project into components to avoid the requirements of this subdivision.

36.19 	EFFECTIVE DATE. This section is effective the day following final enactment 
36.20 	and applies to review and comments for projects funded with revenue for fiscal year 
36.21 	2017 and later.

36.22 	Sec. 12. Minnesota Statutes 2014, section 123B.79, subdivision 5, is amended to read:
36.23 		Subd. 5.Deficits; exception. For the purposes of this section, a permanent transfer 
36.24 	includes creating a deficit in a nonoperating fund for a period past the end of the current 
36.25 	fiscal year which is covered by moneys in an operating fund. However, A deficit in the 
36.26 	capital expenditure fund reserve for operating capital account pursuant to section 123B.78, 
36.27 	subdivision 5, does not constitute a permanent transfer.

36.28 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
36.29 	later.

36.30 	Sec. 13. Minnesota Statutes 2014, section 123B.79, subdivision 8, is amended to read:
36.31 		Subd. 8.Account transfer for reorganizing districts. A district that has 
36.32 	reorganized according to sections 123A.35 to 123A.43, 123A.46, or 123A.48, or has 
37.1 	conducted a successful referendum on the question of combination under section 
37.2 	123A.37, subdivision 2, or consolidation under section 123A.48, subdivision 15, or has 
37.3 	been assigned an identification number by the commissioner under section 123A.48, 
37.4 	subdivision 16, may make permanent transfers between any of the funds or accounts in 
37.5 	the newly created or enlarged district with the exception of the debt redemption fund, 
37.6 	building construction fund, food service fund, and health and safety long-term facilities 
37.7 	maintenance account of the capital expenditure general fund. Fund transfers under this 
37.8 	section may be made for up to one year prior to the effective date of combination or 
37.9 	consolidation by the consolidating boards and during the year following the effective date 
37.10 	of reorganization by the consolidated board. The newly formed board of the combined 
37.11 	district may adopt a resolution on or before August 30 of the year of the reorganization 
37.12 	authorizing a transfer among accounts or funds of the previous independent school 
37.13 	districts which transfer or transfers shall be reported in the affected districts' audited 
37.14 	financial statements for the year immediately preceding the consolidation.

37.15 	EFFECTIVE DATE. This section is effective July 1, 2016, for fiscal year 2017 
37.16 	and later.

37.17 	Sec. 14. Minnesota Statutes 2014, section 123B.79, subdivision 9, is amended to read:
37.18 		Subd. 9.Elimination of reserve accounts. A school board shall eliminate all 
37.19 	reserve accounts established in the school district's general fund under Minnesota Statutes 
37.20 	before July 1, 2006, for which no specific authority remains in statute as of June 30, 2007. 
37.21 	Any balance in the district's reserved for bus purchases account for deferred maintenance 
37.22 	as of June 30, 2007 2016, shall be transferred to the reserved account for operating capital 
37.23 	long-term facilities maintenance in the school district's general fund. Any balance in 
37.24 	other reserved accounts established in the school district's general fund under Minnesota 
37.25 	Statutes before July 1, 2006, for which no specific authority remains in statute as of June 
37.26 	30, 2007, shall be transferred to the school district's unreserved general fund balance. 
37.27 	A school board may, upon adoption of a resolution by the school board, establish a 
37.28 	designated account for any program for which a reserved account has been eliminated. 
37.29 	Any balance in the district's reserved account for health and safety as of June 30, 2019, 
37.30 	shall be transferred to the unassigned fund balance account in the district's general fund. 
37.31 	Any balance in the district's reserved account for alternative facilities as of June 30, 2016, 
37.32 	shall be transferred to the reserved account for long-term facilities maintenance in the 
37.33 	district's building construction fund.

38.1 	EFFECTIVE DATE. This section is effective July 1, 2016, for fiscal year 2017 
38.2 	and later.

38.3 	Sec. 15. Minnesota Statutes 2014, section 126C.40, subdivision 5, is amended to read:
38.4 		Subd. 5.Energy conservation. For loans approved before March 1, 1998, the 
38.5 	district may annually include as revenue under section 123B.53, without the approval of a 
38.6 	majority of the voters in the district, an amount sufficient to repay the annual principal and 
38.7 	interest of the loan made pursuant to sections 216C.37 and 298.292 to 298.298. For energy 
38.8 	loans approved after March 1, 1998, under sections 216C.37 and 298.292 to 298.298, 
38.9 	school districts must annually transfer from the general fund to the debt redemption fund 
38.10 	the amount sufficient to pay interest and principal on the loans.

38.11 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
38.12 	later.

38.13 	Sec. 16. Minnesota Statutes 2015 Supplement, section 126C.48, subdivision 8, is 
38.14 	amended to read:
38.15 		Subd. 8.Taconite payment and other reductions. (1) Reductions in levies 
38.16 	pursuant to subdivision 1 must be made prior to the reductions in clause (2).
38.17 	(2) Notwithstanding any other law to the contrary, districts that have revenue 
38.18 	pursuant to sections 298.018; 298.225; 298.24 to 298.28, except an amount distributed 
38.19 	under sections 298.26; 298.28, subdivision 4, paragraphs (c), clause (ii), and (d); 298.34 to 
38.20 	298.39; 298.391 to 298.396; 298.405; 477A.15; and any law imposing a tax upon severed 
38.21 	mineral values must reduce the levies authorized by this chapter and chapters 120B, 122A, 
38.22 	123A, 123B, 124A, 124D, 125A, and 127A, excluding the student achievement levy 
38.23 	under section 126C.13, subdivision 3b, by 95 percent of the sum of the previous year's 
38.24 	revenue specified under this clause and the amount attributable to the same production 
38.25 	year distributed to the cities and townships within the school district under section 298.28, 
38.26 	subdivision 2, paragraph (c).
38.27 	(3) The amount of any voter approved referendum, facilities down payment, and 
38.28 	debt levies shall not be reduced by more than 50 percent under this subdivision, except 
38.29 	that payments under section 298.28, subdivision 7a, may reduce the debt service levy by 
38.30 	more than 50 percent. In administering this paragraph, the commissioner shall first reduce 
38.31 	the nonvoter approved levies of a district; then, if any payments, severed mineral value 
38.32 	tax revenue or recognized revenue under paragraph (2) remains, the commissioner shall 
38.33 	reduce any voter approved referendum levies authorized under section 126C.17; then, if 
38.34 	any payments, severed mineral value tax revenue or recognized revenue under paragraph 
39.1 	(2) remains, the commissioner shall reduce any voter approved facilities down payment 
39.2 	levies authorized under section 123B.63 and then, if any payments, severed mineral value 
39.3 	tax revenue or recognized revenue under paragraph (2) remains, the commissioner shall 
39.4 	reduce any voter approved debt levies.
39.5 	(4) Before computing the reduction pursuant to this subdivision of the health and 
39.6 	safety long-term facilities maintenance levy authorized by sections 123B.57 and 126C.40, 
39.7 	subdivision 5 section 123B.595, the commissioner shall ascertain from each affected 
39.8 	school district the amount it proposes to levy under each section or subdivision. The 
39.9 	reduction shall be computed on the basis of the amount so ascertained.
39.10 	(5) To the extent the levy reduction calculated under paragraph (2) exceeds the 
39.11 	limitation in paragraph (3), an amount equal to the excess must be distributed from the 
39.12 	school district's distribution under sections 298.225, 298.28, and 477A.15 in the following 
39.13 	year to the cities and townships within the school district in the proportion that their 
39.14 	taxable net tax capacity within the school district bears to the taxable net tax capacity of 
39.15 	the school district for property taxes payable in the year prior to distribution. No city or 
39.16 	township shall receive a distribution greater than its levy for taxes payable in the year prior 
39.17 	to distribution. The commissioner of revenue shall certify the distributions of cities and 
39.18 	towns under this paragraph to the county auditor by September 30 of the year preceding 
39.19 	distribution. The county auditor shall reduce the proposed and final levies of cities and 
39.20 	towns receiving distributions by the amount of their distribution. Distributions to the cities 
39.21 	and towns shall be made at the times provided under section 298.27.

39.22 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
39.23 	later.

39.24 	Sec. 17. Minnesota Statutes 2014, section 126C.63, subdivision 7, is amended to read:
39.25 		Subd. 7.Required debt service levy. "Required debt service levy" means the total 
39.26 	dollar amount needed to be included in the taxes levied by the district in any year for 
39.27 	payment of interest and principal falling due on its debts prior to collection of the next 
39.28 	ensuing year's debt service levy excluding the debt service levy for obligations under 
39.29 	sections 123B.595, 123B.61, and 123B.62.

39.30 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
39.31 	later.

39.32 	Sec. 18.  REPEALER.
 40.1 	Minnesota Statutes 2014, sections 123B.60, subdivision 2; and 123B.79, 
40.2 	subdivisions 2 and 6, are repealed for fiscal year 2017 and later.

40.3 	ARTICLE 6
40.4 	SELF-SUFFICIENCY AND LIFELONG LEARNING

40.5 	Section 1. Minnesota Statutes 2014, section 124D.52, subdivision 1, is amended to read:
40.6 		Subdivision 1.Program requirements. (a) An adult basic education program is 
40.7 	a day or evening program offered by a district that is for people over 16 years of age
40.8 	who do not attend an elementary or secondary school and are not subject to compulsory 
40.9 	attendance. The program offers academic and English language instruction necessary to 
40.10 	earn a high school diploma or equivalency certificate.
40.11 	(b) Notwithstanding any law to the contrary, a school board or the governing body of 
40.12 	a consortium offering an adult basic education program may adopt a sliding fee schedule 
40.13 	based on a family's income, but must waive the fee for participants who are under the age 
40.14 	of 21 or unable to pay. The fees charged must be designed to enable individuals of all 
40.15 	socioeconomic levels to participate in the program. A program may charge a security 
40.16 	deposit to assure return of materials, supplies, and equipment.
40.17 	(c) Each approved adult basic education program must develop a memorandum of 
40.18 	understanding with the local workforce development centers located in the approved 
40.19 	program's service delivery area. The memorandum of understanding must describe how 
40.20 	the adult basic education program and the workforce development centers will cooperate 
40.21 	and coordinate services to provide unduplicated, efficient, and effective services to clients.
40.22 	(d) Adult basic education aid must be spent for adult basic education purposes as 
40.23 	specified in sections 124D.518 to 124D.531.
40.24 	(e) A state-approved adult basic education program must count and submit student 
40.25 	contact hours for a program that offers high school credit toward an adult high school 
40.26 	diploma according to student eligibility requirements and measures of student progress 
40.27 	toward work-based competency and, where appropriate, English language proficiency 
40.28 	requirements established by the commissioner and posted on the department Web site in 
40.29 	a readily accessible location and format.

40.30 	Sec. 2. Minnesota Statutes 2014, section 124D.52, subdivision 2, is amended to read:
40.31 		Subd. 2.Program approval. (a) To receive aid under this section, a district, a 
40.32 	consortium of districts, the Department of Corrections, or a private nonprofit organization, 
40.33 	or a consortium including districts, nonprofit organizations, or both must submit an 
41.1 	application by June 1 describing the program, on a form provided by the department. The 
41.2 	program must be approved by the commissioner according to the following criteria:
41.3 	(1) how the needs of different levels of learning and English language proficiency 
41.4 	will be met;
41.5 	(2) for continuing programs, an evaluation of results;
41.6 	(3) anticipated number and education level of participants;
41.7 	(4) coordination with other resources and services;
41.8 	(5) participation in a consortium, if any, and money available from other participants;
41.9 	(6) management and program design;
41.10 	(7) volunteer training and use of volunteers;
41.11 	(8) staff development services;
41.12 	(9) program sites and schedules;
41.13 	(10) program expenditures that qualify for aid;
41.14 	(11) program ability to provide data related to learner outcomes as required by 
41.15 	law; and
41.16 	(12) a copy of the memorandum of understanding described in subdivision 1 
41.17 	submitted to the commissioner.
41.18 	(b) Adult basic education programs may be approved under this subdivision for 
41.19 	up to five years. Five-year program approval must be granted to an applicant who has 
41.20 	demonstrated the capacity to:
41.21 	(1) offer comprehensive learning opportunities and support service choices 
41.22 	appropriate for and accessible to adults at all basic skill and English language levels of need;
41.23 	(2) provide a participatory and experiential learning approach based on the strengths, 
41.24 	interests, and needs of each adult, that enables adults with basic skill needs to:
41.25 	(i) identify, plan for, and evaluate their own progress toward achieving their defined 
41.26 	educational and occupational goals;
41.27 	(ii) master the basic academic reading, writing, and computational skills, as well 
41.28 	as the problem-solving, decision making, interpersonal effectiveness, and other life and 
41.29 	learning skills they need to function effectively in a changing society;
41.30 	(iii) locate and be able to use the health, governmental, and social services and 
41.31 	resources they need to improve their own and their families' lives; and
41.32 	(iv) continue their education, if they desire, to at least the level of secondary school 
41.33 	completion, with the ability to secure and benefit from continuing education that will 
41.34 	enable them to become more employable, productive, and responsible citizens;
42.1 	(3) plan, coordinate, and develop cooperative agreements with community resources 
42.2 	to address the needs that the adults have for support services, such as transportation, English 
42.3 	language learning, flexible course scheduling, convenient class locations, and child care;
42.4 	(4) collaborate with business, industry, labor unions, and employment-training 
42.5 	agencies, as well as with family and occupational education providers, to arrange for 
42.6 	resources and services through which adults can attain economic self-sufficiency;
42.7 	(5) provide sensitive and well trained adult education personnel who participate in 
42.8 	local, regional, and statewide adult basic education staff development events to master 
42.9 	effective adult learning and teaching techniques;
42.10 	(6) participate in regional adult basic education peer program reviews and evaluations;
42.11 	(7) submit accurate and timely performance and fiscal reports;
42.12 	(8) submit accurate and timely reports related to program outcomes and learner 
42.13 	follow-up information; and
42.14 	(9) spend adult basic education aid on adult basic education purposes only, which 
42.15 	are specified in sections 124D.518 to 124D.531.
42.16 	(c) The commissioner shall require each district to provide notification by February 
42.17 	1, 2001, of its intent to apply for funds under this section as a single district or as part of 
42.18 	an identified consortium of districts. A district receiving funds under this section must 
42.19 	notify the commissioner by February 1 of its intent to change its application status for 
42.20 	applications due the following June 1.