1.1 	A bill for an act
1.2 	relating to state government; conforming buyback level for the budget reserve 
1.3 	with the most recent forecast; eliminating obsolete language; providing policy 
1.4 	and finance for the Office of Higher Education, the Minnesota State Colleges 
1.5 	and Universities, and the University of Minnesota, including programs for 
1.6 	student loans, students with disabilities, fetal tissue research, psychiatric drug 
1.7 	trials, and collegiate recovery; providing funding and policy for early childhood 
1.8 	and family, prekindergarten through grade 12, and adult education, including 
1.9 	general education, education excellence, charter schools, special education, early 
1.10 	childhood education, self-sufficiency, lifelong learning, and state agencies; 
1.11 	appropriating money; requiring reports;amending Minnesota Statutes 2014, 
1.12 	sections 120A.22, subdivision 12; 120A.42; 120B.02, by adding a subdivision; 
1.13 	120B.021, subdivisions 1, 3; 120B.11, subdivisions 1a, 2, 3, 4, 5; 120B.15; 
1.14 	120B.31, by adding subdivisions; 120B.35; 120B.36, as amended; 121A.53; 
1.15 	121A.61, subdivision 1; 121A.64; 122A.07, subdivision 2; 122A.09, subdivision 
1.16 	10, by adding a subdivision; 122A.14, subdivision 9; 122A.16; 122A.18, 
1.17 	subdivisions 7c, 8; 122A.21, subdivision 1, by adding a subdivision; 122A.245, 
1.18 	subdivision 8; 122A.31, subdivision 3; 122A.40, subdivision 10; 122A.41, by 
1.19 	adding a subdivision; 122A.4144; 122A.416; 122A.42; 122A.72, subdivision 
1.20 	5; 123A.24, subdivision 2; 123B.147, subdivision 3; 123B.49, subdivision 
1.21 	4; 123B.571, subdivision 2; 123B.60, subdivision 1; 123B.71, subdivision 8; 
1.22 	123B.79, subdivisions 5, 8, 9; 124D.111, by adding a subdivision; 124D.13, 
1.23 	subdivisions 1, 5, 9; 124D.135, subdivisions 5, 7; 124D.15, subdivisions 1, 3a, 
1.24 	15; 124D.16, subdivisions 3, 5; 124D.165, as amended; 124D.52, subdivisions 
1.25 	1, 2; 124D.55; 124D.59, by adding a subdivision; 124D.861, as amended; 
1.26 	124D.896; 125A.091, subdivision 11; 125A.0942, subdivision 4; 126C.10, 
1.27 	subdivisions 2e, 24; 126C.15, subdivision 3; 126C.17, subdivision 9a; 126C.40, 
1.28 	subdivision 5; 126C.63, subdivision 7; 127A.095; 127A.353, subdivision 4; 
1.29 	127A.41, subdivision 2; 127A.45, subdivision 6a; 127A.51; 129C.10, subdivision 
1.30 	1; 136A.01, by adding a subdivision; 136A.101, subdivision 10; 245.92; 245.94; 
1.31 	245.945; 245.95, subdivision 1; 245.97, subdivision 5; Minnesota Statutes 
1.32 	2015 Supplement, sections 16A.152, subdivision 2; 120B.021, subdivision 4; 
1.33 	120B.125; 120B.30, subdivisions 1, 1a; 120B.301; 120B.31, subdivision 4; 
1.34 	122A.09, subdivision 4; 122A.21, subdivision 2; 122A.30; 122A.40, subdivision 
1.35 	8; 122A.41, subdivision 5; 122A.414, subdivisions 1, 2, 2b; 122A.415, 
1.36 	subdivision 3; 122A.60, subdivision 4; 123B.53, subdivision 1; 123B.595, 
1.37 	subdivisions 4, 7, 8, 9, 10, 11, by adding a subdivision; 124D.16, subdivision 
1.38 	2; 124D.231, subdivision 2; 124D.73, subdivision 4; 124E.05, subdivisions 4, 
1.39 	5, 7; 124E.10, subdivisions 1, 5; 124E.16, subdivision 2; 125A.08; 125A.083; 
2.1 	125A.0942, subdivision 3; 125A.11, subdivision 1; 125A.21, subdivision 3; 
2.2 	125A.63, subdivision 4; 125A.76, subdivision 2c; 125A.79, subdivision 1; 
2.3 	126C.10, subdivisions 1, 13a; 126C.15, subdivisions 1, 2; 126C.48, subdivision 
2.4 	8; 127A.05, subdivision 6; 127A.47, subdivision 7; 136A.121, subdivision 
2.5 	7a; 136A.125, subdivisions 2, 4; 136A.1791, subdivisions 4, 5, 6; 136A.87; 
2.6 	136F.302, subdivision 1; Laws 2010, chapter 396, section 7; Laws 2011, First 
2.7 	Special Session chapter 11, article 4, section 8; Laws 2012, chapter 263, section 
2.8 	1, as amended; Laws 2013, chapter 116, article 7, section 19, as amended; Laws 
2.9 	2015, chapter 69, article 1, sections 3, subdivisions 19, 28; 5, subdivision 2; 
2.10 	article 3, sections 20, subdivision 15; 24, subdivision 1; Laws 2015, First Special 
2.11 	Session chapter 3, article 1, section 27, subdivisions 2, 4, 5, 6, 7, 9; article 2, 
2.12 	section 70, subdivisions 2, 3, 4, 5, 6, 7, 11, 12; article 3, section 15, subdivision 
2.13 	3; article 4, sections 4; 9, subdivision 2; article 5, section 30, subdivisions 2, 3, 5; 
2.14 	article 6, section 13, subdivisions 2, 3, 6, 7; article 7, section 7, subdivisions 2, 3, 
2.15 	4; article 9, section 8, subdivisions 5, 6, 7, 9; article 10, section 3, subdivision 2; 
2.16 	article 11, section 3, subdivisions 2, 3; article 12, section 4; proposing coding 
2.17 	for new law in Minnesota Statutes, chapters 119A; 120B; 121A; 122A; 124D; 
2.18 	125B; 127A; 129C; 136A; 136F; 137; 181; repealing Minnesota Statutes 
2.19 	2014, sections 120B.299, subdivision 5; 122A.40, subdivision 11; 122A.41, 
2.20 	subdivision 14; 122A.413, subdivision 3; 122A.74; 123B.60, subdivision 2; 
2.21 	123B.79, subdivisions 2, 6; Minnesota Statutes 2015 Supplement, section 
2.22 	122A.413, subdivisions 1, 2; Minnesota Rules, part 3535.0110, subparts 6, 7, 8.
2.23 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.24 	ARTICLE 1
2.25 	STATE FINANCES

2.26 	Section 1. Minnesota Statutes 2015 Supplement, section 16A.152, subdivision 2, 
2.27 	is amended to read:
2.28 		Subd. 2.Additional revenues; priority. (a) If on the basis of a forecast of general 
2.29 	fund revenues and expenditures, the commissioner of management and budget determines 
2.30 	that there will be a positive unrestricted budgetary general fund balance at the close of 
2.31 	the biennium, the commissioner of management and budget must allocate money to the 
2.32 	following accounts and purposes in priority order:
2.33 	(1) the cash flow account established in subdivision 1 until that account reaches 
2.34 	$350,000,000;
2.35 	(2) the budget reserve account established in subdivision 1a until that account 
2.36 	reaches $810,992,000 $1,596,522,000;
2.37 	(3) the amount necessary to increase the aid payment schedule for school district 
2.38 	aids and credits payments in section 127A.45 to not more than 90 percent rounded to the 
2.39 	nearest tenth of a percent without exceeding the amount available and with any remaining 
2.40 	funds deposited in the budget reserve; and
2.41 	(4) the amount necessary to restore all or a portion of the net aid reductions under 
2.42 	section 127A.441 and to reduce the property tax revenue recognition shift under section 
2.43 	123B.75, subdivision 5, by the same amount;.
3.1 	(5) the closed landfill investment fund established in section 115B.421 until 
3.2 	$63,215,000 has been transferred into the account. This clause expires after the entire 
3.3 	amount of the transfer has been made; and
3.4 	(6) the metropolitan landfill contingency action trust account established in section 
3.5 	473.845 until $8,100,000 has been transferred into the account. This clause expires after 
3.6 	the entire amount of the transfer has been made.
3.7 	(b) The amounts necessary to meet the requirements of this section are appropriated 
3.8 	from the general fund within two weeks after the forecast is released or, in the case of 
3.9 	transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations 
3.10 	schedules otherwise established in statute.
3.11 	(c) The commissioner of management and budget shall certify the total dollar 
3.12 	amount of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of 
3.13 	education. The commissioner of education shall increase the aid payment percentage and 
3.14 	reduce the property tax shift percentage by these amounts and apply those reductions to 
3.15 	the current fiscal year and thereafter.

3.16 	ARTICLE 2
3.17 	OFFICE OF HIGHER EDUCATION

3.18 	Section 1. Minnesota Statutes 2014, section 136A.01, is amended by adding a 
3.19 	subdivision to read:
3.20 		Subd. 4.Management of programs. (a) The commissioner may retain up to five 
3.21 	percent of the amount appropriated to the office for a program or pass-through grant if:
3.22 	(1) the program or grant is first established on or after January 1, 2016; and
3.23 	(2) the appropriation does not specify an amount for administrative costs.
3.24 	(b) The amount retained under paragraph (a) is appropriated to the commissioner and 
3.25 	must be used for the costs of administering and monitoring programs and pass-through 
3.26 	grants established on or after January 1, 2016.

3.27 	Sec. 2. [136A.0412] RECEIPT OF DONATIONS; MONEY; GRANTS.
3.28 	The commissioner may accept donations, grants, bequests, and other funds to carry 
3.29 	out the purposes of section 136A.01. A donation, nonfederal grant, bequest, or other fund 
3.30 	received by the commissioner is deposited in an account in the special revenue fund. 
3.31 	Funds in the account are appropriated to the commissioner for the purpose for which they 
3.32 	were granted and are available until expended.

4.1 	Sec. 3. Minnesota Statutes 2015 Supplement, section 136A.121, subdivision 7a, 
4.2 	is amended to read:
4.3 		Subd. 7a.Surplus appropriation. If the amount appropriated is determined by the 
4.4 	office to be more than sufficient to fund projected grant demand in the second year of the 
4.5 	biennium, the office may increase the living and miscellaneous expense allowance or the 
4.6 	tuition and fee maximums in the second year of the biennium by up to an amount that 
4.7 	retains sufficient appropriations to fund the projected grant demand. The adjustment may 
4.8 	be made one or more times. In making the determination that there are more than sufficient 
4.9 	funds, the office shall balance the need for sufficient resources to meet the projected 
4.10 	demand for grants with the goal of fully allocating the appropriation for state grants. An 
4.11 	increase in the living and miscellaneous expense allowance under this subdivision does 
4.12 	not carry forward into a subsequent biennium.

4.13 	Sec. 4. Minnesota Statutes 2015 Supplement, section 136A.125, subdivision 2, is 
4.14 	amended to read:
4.15 		Subd. 2.Eligible students. (a) An applicant is eligible for a child care grant if 
4.16 	the applicant:
4.17 	(1) is a resident of the state of Minnesota or the applicant's spouse is a resident 
4.18 	of the state of Minnesota;
4.19 	(2) has a child 12 years of age or younger, or 14 years of age or younger who is 
4.20 	disabled as defined in section 125A.02, and who is receiving or will receive care on a 
4.21 	regular basis from a licensed or legal, nonlicensed caregiver;
4.22 	(3) is income eligible as determined by the office's policies and rules, but is not a 
4.23 	recipient of assistance from the Minnesota family investment program;
4.24 	(4) either has not earned a baccalaureate degree and has been enrolled full time less 
4.25 	than eight semesters or the equivalent, or has earned a baccalaureate degree and has been 
4.26 	enrolled full time less than eight semesters or the equivalent in a graduate or professional 
4.27 	degree program;
4.28 	(5) is pursuing a nonsectarian program or course of study that applies to an 
4.29 	undergraduate, graduate, or professional degree, diploma, or certificate;
4.30 	(6) is enrolled in at least half time six credits in an undergraduate program or one 
4.31 	credit in a graduate or professional program in an eligible institution; and
4.32 	(7) is in good academic standing and making satisfactory academic progress.
4.33 	(b) A student who withdraws from enrollment for active military service after 
4.34 	December 31, 2002, because the student was ordered to active military service as defined 
4.35 	in section 190.05, subdivision 5b or 5c, or for a major illness, while under the care of a 
5.1 	medical professional, that substantially limits the student's ability to complete the term 
5.2 	is entitled to an additional semester or the equivalent of grant eligibility and will be 
5.3 	considered to be in continuing enrollment status upon return.

5.4 	Sec. 5. Minnesota Statutes 2015 Supplement, section 136A.125, subdivision 4, is 
5.5 	amended to read:
5.6 		Subd. 4.Amount and length of grants. (a) The amount of a child care grant 
5.7 	must be based on:
5.8 	(1) the income of the applicant and the applicant's spouse;
5.9 	(2) the number in the applicant's family, as defined by the office; and
5.10 	(3) the number of eligible children in the applicant's family.
5.11 	(b) The maximum award to the applicant shall be $2,800 for each eligible child per 
5.12 	academic year, except that the campus financial aid officer may apply to the office for 
5.13 	approval to increase grants by up to ten percent to compensate for higher market charges 
5.14 	for infant care in a community. The office shall develop policies to determine community 
5.15 	market costs and review institutional requests for compensatory grant increases to ensure 
5.16 	need and equal treatment. The office shall prepare a chart to show the amount of a grant 
5.17 	that will be awarded per child based on the factors in this subdivision. The chart shall 
5.18 	include a range of income and family size.
5.19 	(c) Applicants with family incomes at or below a percentage of the federal poverty 
5.20 	level, as determined by the commissioner, will qualify for the maximum award. The 
5.21 	commissioner shall attempt to set the percentage at a level estimated to fully expend the 
5.22 	available appropriation for child care grants. Applicants with family incomes exceeding 
5.23 	that threshold will receive the maximum award minus ten percent of their income 
5.24 	exceeding that threshold. If the result is less than zero, the grant is zero.
5.25 	(d) The academic year award amount must be disbursed by academic term using the 
5.26 	following formula:
5.27 	(1) the academic year amount described in paragraph (b);
5.28 	(2) divided by the number of terms in the academic year;
5.29 	(3) divided by 15 for undergraduate students and six for graduate and professional 
5.30 	students; and
5.31 	(4) multiplied by the number of credits for which the student is enrolled that 
5.32 	academic term, up to 15 credits for undergraduate students and six for graduate and 
5.33 	professional students.
6.1 	(e) Payments shall be made each academic term to the student or to the child care 
6.2 	provider, as determined by the institution. Institutions may make payments more than 
6.3 	once within the academic term.

6.4 	Sec. 6. Minnesota Statutes 2015 Supplement, section 136A.1791, subdivision 4, 
6.5 	is amended to read:
6.6 		Subd. 4.Application for loan forgiveness. Each applicant for loan forgiveness, 
6.7 	according to rules adopted by the commissioner, shall:
6.8 	(1) apply for teacher shortage loan forgiveness and promptly submit any additional 
6.9 	information required by the commissioner; and
6.10 	(2) annually reapply for up to five consecutive school years and submit information 
6.11 	the commissioner requires to determine the applicant's continued eligibility for loan 
6.12 	forgiveness; and
6.13 	(3) (2) submit to the commissioner a completed affidavit, prescribed by the 
6.14 	commissioner, affirming the teacher is teaching in: (i) a licensure field and in identified by 
6.15 	the commissioner as experiencing a teacher shortage; or (ii) an economic development 
6.16 	region identified by the commissioner as experiencing a teacher shortage.

6.17 	Sec. 7. Minnesota Statutes 2015 Supplement, section 136A.1791, subdivision 5, 
6.18 	is amended to read:
6.19 		Subd. 5.Amount of loan forgiveness. (a) To the extent funding is available, the 
6.20 	annual amount of teacher shortage loan forgiveness for an approved applicant shall not 
6.21 	exceed $1,000 or the cumulative balance of the applicant's qualified educational loans, 
6.22 	including principal and interest, whichever amount is less.
6.23 	(b) Recipients must secure their own qualified educational loans. Teachers who 
6.24 	graduate from an approved teacher preparation program or teachers who add a licensure 
6.25 	field, consistent with the teacher shortage requirements of this section, are eligible to 
6.26 	apply for the loan forgiveness program.
6.27 	(c) No teacher shall receive more than five annual awards.

6.28 	Sec. 8. Minnesota Statutes 2015 Supplement, section 136A.1791, subdivision 6, 
6.29 	is amended to read:
6.30 		Subd. 6.Disbursement. (a) The commissioner must make annual disbursements 
6.31 	directly to the participant of the amount for which a participant is eligible, for each year 
6.32 	that a participant is eligible.
7.1 	(b) Within 60 days of receipt of athe disbursement date, the participant must provide 
7.2 	the commissioner with verification that the full amount of loan repayment disbursement 
7.3 	has been applied toward the designated loans. A participant that previously received 
7.4 	funds under this section but has not provided the commissioner with such verification 
7.5 	is not eligible to receive additional funds.

7.6 	Sec. 9. [136A.1792] PROMOTION OF FEDERAL LOAN FORGIVENESS 
7.7 	PROGRAMS.
7.8 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms 
7.9 	have the meanings given.
7.10 	(b) "Federal loan forgiveness program" means a loan forgiveness program offered 
7.11 	under Code of Federal Regulations, title 34, part 685.
7.12 	(c) "Public service loan forgiveness program" means the loan forgiveness program 
7.13 	offered under Code of Federal Regulations, title 34, part 685, section 219.
7.14 	(d) "Public service organization" means a public service organization under Code of 
7.15 	Federal Regulations, title 34, part 685, section 219.
7.16 		Subd. 2.Promotion of federal loan forgiveness programs. (a) The commissioner 
7.17 	must develop and distribute informational materials designed to increase awareness of 
7.18 	federal loan forgiveness programs among Minnesota residents who are eligible for such 
7.19 	programs. At a minimum, the commissioner must develop and distribute informational 
7.20 	materials that public service organizations may use to promote awareness of the federal 
7.21 	public service loan forgiveness program, including:
7.22 	(1) a one-page letter addressed to individuals who may be eligible for the public 
7.23 	service loan forgiveness program that briefly summarizes the program, provides 
7.24 	information on what an eligible individual must do in order to participate, and recommends 
7.25 	that they contact their student loan servicer or servicers for additional information;
7.26 	(2) a detailed fact sheet describing the public service loan forgiveness program; and
7.27 	(3) a document containing answers to frequently asked questions about the public 
7.28 	service loan forgiveness program.
7.29 	(b) In place of developing and publishing an informational document required under 
7.30 	paragraph (a), the commissioner may distribute a document published by a federal agency 
7.31 	that meets the requirements of paragraph (a).
7.32 		Subd. 3.Publication of informational materials. The commissioner must make 
7.33 	the informational materials required under subdivision 2 available on the office's Web 
7.34 	site and must verify each biennium that the informational materials contain current 
8.1 	information. The commissioner must update and correct any informational materials that 
8.2 	the commissioner finds to be inaccurate or outdated.

8.3 	Sec. 10. Minnesota Statutes 2015 Supplement, section 136A.87, is amended to read:
8.4 	136A.87 PLANNING INFORMATION FOR POSTSECONDARY 
8.5 	EDUCATION.
8.6 	(a) The office shall make available to all residents beginning in 7th grade through 
8.7 	adulthood information about planning and preparing for postsecondary opportunities. 
8.8 	Information must be provided to all 7th grade students and their parents annually 
8.9 	by September 30 about planning for their postsecondary education. The office may 
8.10 	also provide information to high school students and their parents, to adults, and to 
8.11 	out-of-school youth.
8.12 	(b) The office shall gather and share information with students and parents about 
8.13 	the dual credit acceptance policies of each Minnesota public and private college and 
8.14 	university. The office shall gather and share information related to the acceptance policies 
8.15 	for concurrent enrollment courses, postsecondary enrollment options courses, advanced 
8.16 	placement courses, and international baccalaureate courses. This information must be 
8.17 	shared on the office's Web site and included in the information under paragraph (a).
8.18 	(c) The information provided under paragraph (a) may include the following:
8.19 	(1) the need to start planning early;
8.20 	(2) the availability of assistance in educational planning from educational institutions 
8.21 	and other organizations;
8.22 	(3) suggestions for studying effectively during high school;
8.23 	(4) high school courses necessary to be adequately prepared for postsecondary 
8.24 	education;
8.25 	(5) encouragement to involve parents actively in planning for all phases of education;
8.26 	(6) information about postsecondary education and training opportunities existing 
8.27 	in the state, their respective missions and expectations for students, their preparation 
8.28 	requirements, admission requirements, and student placement;
8.29 	(7) ways to evaluate and select postsecondary institutions;
8.30 	(8) the process of transferring credits among Minnesota postsecondary institutions 
8.31 	and systems;
8.32 	(9) the costs of postsecondary education and the availability of financial assistance 
8.33 	in meeting these costs, including specific information about the Minnesota Promise;
8.34 	(10) the interrelationship of assistance from student financial aid, public assistance, 
8.35 	and job training programs; and
9.1 	(11) financial planning for postsecondary education.

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

9.4 	Sec. 11. [181.987] DISCLOSURE OF ELIGIBILITY FOR STUDENT LOAN 
9.5 	FORGIVENESS.
9.6 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms 
9.7 	have the meanings given.
9.8 	(b) "Employer" means an organization, agency, or entity that is a public service 
9.9 	organization under Code of Federal Regulations, title 34, part 685, section 219, provided 
9.10 	that the following are not employers:
9.11 	(1) a federal or tribal government organization, agency, or entity; and
9.12 	(2) a tribal college or university.
9.13 	(c) "Employment certification form" means the form used by the United States 
9.14 	Department of Education to certify an individual's employment at a public service 
9.15 	organization for the purposes of the federal public service loan forgiveness program.
9.16 	(d) "Federal public service loan forgiveness program" means the program offered 
9.17 	under Code of Federal Regulations, title 34, part 685, section 219.
9.18 		Subd. 2.Disclosure of eligibility for student loan forgiveness. (a) An employer 
9.19 	must provide an employee with information about the employee's potential eligibility 
9.20 	for the federal public service loan forgiveness program. An employer must annually 
9.21 	provide to each employee in written or electronic form the one-page letter, fact sheet, 
9.22 	and frequently asked questions required under section 136A.1792, subdivision 2. An 
9.23 	employer must provide a newly hired employee with that information  within two weeks of 
9.24 	the employee's first day of employment.
9.25 	(b) At an employee's request, an employer must provide the employee with a copy 
9.26 	of the employment certification form.

9.27 	EFFECTIVE DATE. This section is effective January 1, 2017. An employer must 
9.28 	provide information to current employees, as required by subdivision 2, by January 15, 
9.29 	2017.

9.30 	Sec. 12. Laws 2015, chapter 69, article 1, section 3, subdivision 19, is amended to read:

9.31	Subd. 19.College Possible
 		250,000
		250,000
	
9.32 	(a) This appropriation is for immediate 
9.33 	transfer to College Possible to support 
10.1 	programs of college admission and college 
10.2 	graduation for low-income students through 
10.3 	an intensive curriculum of coaching 
10.4 	and support at both the high school and 
10.5 	postsecondary level.
10.6 	(b) This appropriation must, to the extent 
10.7 	possible, be proportionately allocated 
10.8 	between students from greater Minnesota and 
10.9 	students in the seven-county metropolitan 
10.10 	area.
10.11 	(c) This appropriation must be used 
10.12 	by College Possible only for programs 
10.13 	supporting students who are residents 
10.14 	of Minnesota and attending colleges or 
10.15 	universities within Minnesota.
10.16 	(d) By February 1 of each year, College 
10.17 	Possible must report to the chairs and 
10.18 	ranking minority members of the legislative 
10.19 	committees and divisions with jurisdiction 
10.20 	over higher education and E-12 education on 
10.21 	activities funded by this appropriation. The 
10.22 	report must include, but is not limited to, 
10.23 	information about the expansion of College 
10.24 	Possible in Minnesota, the number of College 
10.25 	Possible coaches hired, the expansion within 
10.26 	existing partner high schools, the expansion 
10.27 	of high school partnerships, the number of 
10.28 	high school and college students served, the 
10.29 	total hours of community service by high 
10.30 	school and college students, and a list of 
10.31 	communities and organizations benefitting 
10.32 	from student service hours.
10.33 	(e) To the extent possible, College Possible 
10.34 	must use the funds appropriated under this 
10.35 	subdivision to:
11.1 	(1) hire coaches with similar racial, ethnic, 
11.2 	and socioeconomic characteristics as the 
11.3 	school in which the coaches will work; and
11.4 	(2) provide extensive racial equity and 
11.5 	cultural competency training to College 
11.6 	Possible coaches and staff.

11.7 	Sec. 13. Laws 2015, chapter 69, article 3, section 20, subdivision 15, is amended to read:
11.8 		Subd. 15.Reporting. (a) A college must report to the commissioner the following 
11.9 	information:
11.10 	(1) the number of grantees and their race, gender, and ethnicity;
11.11 	(2) grantee persistence and completion;
11.12 	(3) employment outcomes; and
11.13 	(4) other information requested by the commissioner.
11.14 	(b) The commissioner shall report annually by January 15, 2017, and January 15, 
11.15 	2018, to the chairs and ranking minority members of the legislative committees with 
11.16 	jurisdiction over higher education finance by college and in aggregate on the information 
11.17 	submitted to the commissioner under paragraph (a). The commissioner may include in the 
11.18 	report recommendations for changes in the grant program.

11.19 	Sec. 14. Laws 2015, chapter 69, article 3, section 24, subdivision 1, is amended to read:
11.20 		Subdivision 1.Pilot program created. The commissioner of the Office of Higher 
11.21 	Education shall make a grant to a nonprofit qualified debt counseling organization to 
11.22 	provide individual student loan debt repayment counseling to borrowers who are Minnesota 
11.23 	residents concerning loans obtained to attend a Minnesota postsecondary institution. The 
11.24 	counseling shall be provided to borrowers who are 30 to 60 days delinquent when they 
11.25 	are referred to or otherwise identified by the organization as candidates for counseling.
11.26 	The number of individuals receiving counseling may be limited to those capable of being 
11.27 	served with available appropriations for that purpose. A goal of the counseling program is 
11.28 	to provide two counseling sessions to at least 75 percent of borrowers receiving counseling.
11.29 	The purpose of the counseling is to assist borrowers to:
11.30 	(1) understand their loan and repayment options; 
11.31 	(2) manage loan repayment; and
11.32 	(3) develop a workable budget based on the borrower's full financial situation 
11.33 	regarding income, expenses, and other debt.

12.1 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2015.

12.2 	Sec. 15. MNSCU TWO-YEAR COLLEGE PROGRAM; ADMINISTRATIVE 
12.3 	COSTS.
 12.4 	The appropriation made by Laws 2015, chapter 69, article 1, section 3, subdivision 
12.5 	18, paragraph (c), for fiscal year 2017 for information technology and administrative costs 
12.6 	is available on the effective date of this section and until June 30, 2017.

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

12.8 	Sec. 16. EQUITY IN POSTSECONDARY ATTAINMENT.
 12.9 		Subdivision 1.Programs required. The commissioner of the Office of Higher 
12.10 	Education, the Board of Regents of the University of Minnesota, and the Board of 
12.11 	Trustees of the Minnesota State Colleges and Universities must develop and implement 
12.12 	programs, utilizing research-based best practices, to support equity in postsecondary 
12.13 	student retention and completion.
12.14 		Subd. 2.Documentation of program development required. At a minimum, the 
12.15 	following information must be documented in developing a program under this section:
12.16 	(1) a description of the characteristics of the students to be served and documentation 
12.17 	of the campus need for services;
12.18 	(2) a description of the services to be provided and a timeline for implementation 
12.19 	of the services;
12.20 	(3) the research-based best practices proven effective in closing attainment gaps for 
12.21 	the students identified under clause (1) to be implemented;
12.22 	(4) a description of how the services will advance postsecondary retention and 
12.23 	postsecondary completion and be aligned with preparing postsecondary students for state 
12.24 	workforce needs;
12.25 	(5) a description of how the services will be evaluated to determine whether the 
12.26 	program objectives and goals are met; and
12.27 	(6) a plan for sustaining the program, including a three-year proposed budget for all 
12.28 	program services and activities.
12.29 		Subd. 3.Outcomes report to legislature. (a) No later than January 1 of each 
12.30 	year, the commissioner of higher education, the Board of Regents of the University of 
12.31 	Minnesota, and the Board of Trustees of the Minnesota State Colleges and Universities 
12.32 	must each submit a report to the legislative committees with jurisdiction over higher 
12.33 	education policy and finance regarding the programs developed and implemented as 
12.34 	provided by this section.
13.1 	(b) The report must include, but is not limited to, the following information for 
13.2 	each program:
13.3 	(1) the documentation required by subdivision 2;
13.4 	(2) for programs that have been implemented, information on:
13.5 	(i) demographic characteristics of students served;
13.6 	(ii) course taking and grade point averages of participating students;
13.7 	(iii) persistence and retention rates of participating students; and
13.8 	(iv) graduation rates of participating students;
13.9 	(3) identification of any institutions and organizations providing program services; 
13.10 	and
13.11 	(4) program revenue sources and total program funding levels.
13.12 	To the extent possible, the information required by clause (2) must break down outcomes 
13.13 	by race and ethnicity.

13.14 	ARTICLE 3
13.15 	MNSCU PILOT PROGRAM; STUDENTS WITH DISABILITIES

13.16 	Section 1. Minnesota Statutes 2014, section 136A.101, subdivision 10, is amended to 
13.17 	read:
13.18 		Subd. 10.Satisfactory academic progress. "Satisfactory academic progress" 
13.19 	means satisfactory academic progress as defined under Code of Federal Regulations, title 
13.20 	34, sections 668.16(e), 668.32(f), and 668.34, except that a student with an intellectual 
13.21 	disability as defined in Code of Federal Regulations, title 34, section 668.231, enrolled 
13.22 	in an approved comprehensive transition and postsecondary program under that section 
13.23 	is subject to the institution's published satisfactory academic process standards for that 
13.24 	program as approved by the Office of Higher Education.

13.25 	Sec. 2. MNSCU PROGRAM FOR STUDENTS WITH INTELLECTUAL AND 
13.26 	DEVELOPMENTAL DISABILITIES; PLAN REQUIRED.
 13.27 		Subdivision 1.Development of plan required. The Board of Trustees of the 
13.28 	Minnesota State Colleges and Universities must develop a plan for offering an academic 
13.29 	program for students with intellectual and developmental disabilities, consistent with the 
13.30 	principles established in subdivisions 2 to 4. 
13.31 		Subd. 2.Program locations. The plan developed must assume the program will be 
13.32 	offered at up to four college or university campuses chosen based on (1) their ability to 
14.1 	offer a robust program using existing facilities and resources and (2) a goal to provide the 
14.2 	program in diverse geographic regions of the state.
14.3 		Subd. 3.Enrollment and admission. The plan developed must assume an 
14.4 	enrollment goal for each campus's program of at least ten incoming students per academic 
14.5 	year. The plan may allow for students to be admitted based on an application process 
14.6 	that includes an in-person interview; an independent assessment of an applicant's 
14.7 	interest, motivation, and likelihood of success in the program; and any other eligibility 
14.8 	requirements established by the board. Upon successful completion, a student must be 
14.9 	awarded a certificate, diploma, or other appropriate academic credential.
14.10 		Subd. 4.Curriculum and activities. (a) The plan developed must assume a 
14.11 	program that provides an inclusive, two-year full-time residential college experience 
14.12 	for students with intellectual and developmental disabilities. The required curriculum 
14.13 	must include core courses that develop life skills, financial literacy, and the ability to 
14.14 	live independently; rigorous academic work in a student's chosen field of study; and an 
14.15 	internship, apprenticeship, or other skills-based experience to prepare for meaningful 
14.16 	employment upon completion of the program.
14.17 	(b) In addition to academic requirements, the plan developed must allow 
14.18 	participating students the opportunity to engage fully in campus life. Program activities 
14.19 	must include but are not limited to (1) the establishment of on-campus mentoring and 
14.20 	peer support communities and (2) opportunities for personal growth through leadership 
14.21 	development and other community engagement activities.
14.22 	(c) A participating campus may tailor its program curriculum and activities to 
14.23 	highlight academic programs, student and community life experiences, and employment 
14.24 	opportunities unique to that campus or the region of the state where the campus is located.
14.25 		Subd. 5.Report to legislature. The board must submit a report on the plan required 
14.26 	to be developed by this section to the chairs and ranking minority members of the 
14.27 	committees of the legislature with jurisdiction over higher education finance and policy and 
14.28 	human services finance and policy no later than January 15, 2017. The report must describe 
14.29 	program plans, including strategies for recruitment of applicants, and strategies to address 
14.30 	anticipated program needs that cannot be filled using existing campus or system resources.

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

14.32 	ARTICLE 4
14.33 	FETAL TISSUE RESEARCH

14.34 	Section 1. [137.45] FETAL TISSUE RESEARCH PRACTICES.
15.1 		Subdivision 1.Institutional review board; approval of research. An individual 
15.2 	conducting research at the University of Minnesota must obtain approval from the 
15.3 	university's institutional review board or stem cell oversight committee before conducting 
15.4 	research using fetal tissue. The institutional review board or oversight committee must, in 
15.5 	its approval process, consider whether nonhuman tissue would be sufficient for the study.
15.6 		Subd. 2.Identification of fetal tissue available due to natural death. The dean 
15.7 	of the university's medical school shall attempt to identify sources for procurement of 
15.8 	fetal tissues that are available due to the natural death of the fetus and are suitable for 
15.9 	use in academic research. The dean shall consider engaging an outside consultant to 
15.10 	attempt to identify such sources. When appropriate sources are identified, the dean must 
15.11 	make recommendations to the Board of Regents for updates to university policies and 
15.12 	procedures to encourage use of these sources in all university research activities where 
15.13 	fetal tissue is requested to be used. Sources that are identified shall be submitted to the 
15.14 	Association of American Medical Colleges.
15.15 		Subd. 3.Legislative report. (a) No later than January 15, 2017, the Board of 
15.16 	Regents must submit a report to the legislature. The report must be submitted to the chairs 
15.17 	and ranking minority members of the committees of the legislature with jurisdiction over 
15.18 	higher education policy and finance and health and human services policy and finance 
15.19 	and must describe:
15.20 	(1) all suitable sources for procurement of fetal tissue that are identified under 
15.21 	subdivision 2;
15.22 	(2) any recommended updates to university policies and procedures after 
15.23 	identification of suitable sources under subdivision 2, and if so, whether those 
15.24 	recommended updates were adopted by the Board of Regents; and
15.25 	(3) a list of:
15.26 	(i) all approvals made in the previous year by an institutional review board or stem 
15.27 	cell oversight committee for the use of fetal tissue; and
15.28 	(ii) all research continuing on fetal tissue from research that began in a previous year.
15.29 	(b) The list provided under paragraph (a), clause (3), must identify, for each research 
15.30 	activity, the source of funding for the research; the goal or purpose of the research; 
15.31 	the source of the fetal tissue used in the research; references to any publicly available 
15.32 	information about the research, including but not limited to grant award information from 
15.33 	the National Institutes of Health; and references to any publications resulting from the 
15.34 	research.
15.35 		Subd. 4.Definition. As used in this section and section 137.46, "fetal tissue" means 
15.36 	any part of an unborn child or fetus, including a body part, cell, tissue, or organ.

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

16.2 	Sec. 2. [137.46] INSTITUTIONAL REVIEW BOARD OVERSIGHT 
16.3 	ACTIVITIES.
16.4 	The Board of Regents shall:
16.5 	(1) further develop and clarify existing university policies and procedures related 
16.6 	to the lawful and ethical treatment of human subjects and fetal tissue in research 
16.7 	activities, including enhancement of applicable penalties for violation of these policies 
16.8 	and procedures;
16.9 	(2) institute a system of frequent, random, unannounced inspections and audits of 
16.10 	research activities involving fetal tissue to verify compliance with applicable federal and 
16.11 	state laws, university policies and procedures, and other professional standards related to 
16.12 	purchasing, handling, and disposing of fetal tissue;
16.13 	(3) conduct education and outreach programs, including instituting a required 
16.14 	comprehensive training program, on applicable federal and state laws, university policies 
16.15 	and procedures, and other professional standards related to the respectful, humane, and 
16.16 	ethical treatment of human subjects and fetal tissue in research, for all students and 
16.17 	employees engaged in these activities; and
16.18 	(4) establish an anonymous reporting system to receive complaints of activities that 
16.19 	may violate applicable federal and state laws, university policies and procedures, and 
16.20 	other professional standards in research involving human subjects and fetal tissue by the 
16.21 	university, university students or employees, or any other person engaged in research 
16.22 	activities in university facilities.

16.23 	Sec. 3. UNIVERSITY OF MINNESOTA FETAL TISSUE RESEARCH; 
16.24 	LEGISLATIVE AUDITOR REVIEW.
 16.25 	(a) The legislative auditor is requested to complete a comprehensive review of 
16.26 	the use of fetal tissue in research activities at the University of Minnesota. The review 
16.27 	must include:
16.28 	(1) the total number of research activities in which fetal tissue is currently or has been 
16.29 	previously used, including those that are in progress and those that have been completed;
16.30 	(2) the cost of acquiring fetal tissues for use in research activities, itemized by the 
16.31 	source of funds used for procurement, including funds from federal, state, and other public 
16.32 	sources, and funds derived from student tuition and fees;
17.1 	(3) the extent to which the conduct of the research activities complies with 
17.2 	applicable federal and state laws related to acquisition, sale, handling, and disposition 
17.3 	of human tissues, including fetal tissues;
17.4 	(4) the extent to which the conduct of the research activities complies with 
17.5 	applicable Board of Regents policies and procedures related to acquisition, sale, handling, 
17.6 	and disposition of human tissues, including fetal tissues; and
17.7 	(5) whether applicable Board of Regents policies include provisions to ensure fetal 
17.8 	tissue is used in research activities only when necessary, and to ensure that the research 
17.9 	activities are conducted in an ethical manner, including whether procedures and protocols 
17.10 	for oversight have been implemented to verify compliance with these policies.
17.11 	(b) As used in this section, "research activities" include any academic fetal tissue 
17.12 	research or fetal tissue transplantation research activity or program conducted in a 
17.13 	University of Minnesota facility, or that is supported, directly or indirectly, by University 
17.14 	of Minnesota funds.

17.15 	EFFECTIVE DATE. This section is effective the day following final enactment. 
17.16 	The legislative auditor is requested to complete the review no later than 60 days following 
17.17 	final enactment.

17.18 	ARTICLE 5
17.19 	MONITORING OF PSYCHIATRIC DRUG TRIALS

17.20 	Section 1. Minnesota Statutes 2014, section 245.92, is amended to read:
17.21 	245.92 OFFICE OF OMBUDSMAN; CREATION; QUALIFICATIONS; 
17.22 	FUNCTION.
17.23 	The ombudsman for persons receiving services or treatment for mental illness, 
17.24 	developmental disabilities, chemical dependency, or emotional disturbance shall promote 
17.25 	the highest attainable standards of treatment, competence, efficiency, and justice. The 
17.26 	ombudsman may gather information and data about decisions, acts, and other matters of an 
17.27 	agency, facility, or program, and shall monitor the treatment of individuals participating in 
17.28 	a University of Minnesota Department of Psychiatry clinical drug trial. The ombudsman 
17.29 	is appointed by the governor, serves in the unclassified service, and may be removed only 
17.30 	for just cause. The ombudsman must be selected without regard to political affiliation and 
17.31 	must be a person who has knowledge and experience concerning the treatment, needs, 
17.32 	and rights of clients, and who is highly competent and qualified. No person may serve as 
17.33 	ombudsman while holding another public office.

18.1 	Sec. 2. Minnesota Statutes 2014, section 245.94, is amended to read:
18.2 	245.94 POWERS OF OMBUDSMAN; REVIEWS AND EVALUATIONS; 
18.3 	RECOMMENDATIONS.
18.4 		Subdivision 1.Powers. (a) The ombudsman may prescribe the methods by which 
18.5 	complaints to the office are to be made, reviewed, and acted upon. The ombudsman may 
18.6 	not levy a complaint fee.
18.7 	(b) The ombudsman may mediate or advocate on behalf of a client.
18.8 	(c) The ombudsman may investigate the quality of services provided to clients and 
18.9 	determine the extent to which quality assurance mechanisms within state and county 
18.10 	government work to promote the health, safety, and welfare of clients, other than clients 
18.11 	in acute care facilities who are receiving services not paid for by public funds. The 
18.12 	ombudsman is a health oversight agency as defined in Code of Federal Regulations, 
18.13 	title 45, section 164.501.
18.14 	(d) At the request of a client, or upon receiving a complaint or other information 
18.15 	affording reasonable grounds to believe that the rights of a client who is not capable 
18.16 	of requesting assistance have been adversely affected, the ombudsman may gather 
18.17 	information and data about and analyze, on behalf of the client, the actions of an agency, 
18.18 	facility, or program.
18.19 	(e) The ombudsman may gather, on behalf of a client, records of an agency, facility, 
18.20 	or program, or records related to clinical drug trials from the University of Minnesota 
18.21 	Department of Psychiatry, if the records relate to a matter that is within the scope of the 
18.22 	ombudsman's authority. If the records are private and the client is capable of providing 
18.23 	consent, the ombudsman shall first obtain the client's consent. The ombudsman is 
18.24 	not required to obtain consent for access to private data on clients with developmental 
18.25 	disabilities. The ombudsman is not required to obtain consent for access to private data 
18.26 	on decedents who were receiving services for mental illness, developmental disabilities, 
18.27 	or emotional disturbance. All data collected, created, received, or maintained by the 
18.28 	ombudsman are governed by chapter 13 and other applicable law.
18.29 	(f) Notwithstanding any law to the contrary, the ombudsman may subpoena a person 
18.30 	to appear, give testimony, or produce documents or other evidence that the ombudsman 
18.31 	considers relevant to a matter under inquiry. The ombudsman may petition the appropriate 
18.32 	court in Ramsey County to enforce the subpoena. A witness who is at a hearing or is part 
18.33 	of an investigation possesses the same privileges that a witness possesses in the courts or 
18.34 	under the law of this state. Data obtained from a person under this paragraph are private 
18.35 	data as defined in section 13.02, subdivision 12.
19.1 	(g) The ombudsman may, at reasonable times in the course of conducting a review, 
19.2 	enter and view premises within the control of an agency, facility, or program.
19.3 	(h) The ombudsman may attend Department of Human Services Review Board 
19.4 	and Special Review Board proceedings; proceedings regarding the transfer of patients 
19.5 	or residents, as defined in section 246.50, subdivisions 4 and 4a, between institutions 
19.6 	operated by the Department of Human Services; and, subject to the consent of the affected 
19.7 	client, other proceedings affecting the rights of clients. The ombudsman is not required to 
19.8 	obtain consent to attend meetings or proceedings and have access to private data on clients 
19.9 	with developmental disabilities.
19.10 	(i) The ombudsman shall gather data of agencies, facilities, or programs classified 
19.11 	as private or confidential as defined in section 13.02, subdivisions 3 and 12, regarding 
19.12 	services provided to clients with developmental disabilities.
19.13 	(j) To avoid duplication and preserve evidence, the ombudsman shall inform 
19.14 	relevant licensing or regulatory officials before undertaking a review of an action of 
19.15 	the facility or program.
19.16 	(k) The ombudsman shall monitor the treatment of individuals participating in 
19.17 	a University of Minnesota Department of Psychiatry clinical drug trial and ensure that 
19.18 	all protections for human subjects required by federal law and the Institutional Review 
19.19 	Board are provided.
19.20 	(l) Sections 245.91 to 245.97 are in addition to other provisions of law under which 
19.21 	any other remedy or right is provided.
19.22 		Subd. 2.Matters appropriate for review. (a) In selecting matters for review by the 
19.23 	office, the ombudsman shall give particular attention to unusual deaths or injuries of a 
19.24 	client or reports of emergency use of manual restraint as identified in section 245D.061, 
19.25 	served by an agency, facility, or program, or actions of an agency, facility, or program that:
19.26 	(1) may be contrary to law or rule;
19.27 	(2) may be unreasonable, unfair, oppressive, or inconsistent with a policy or order of 
19.28 	an agency, facility, or program;
19.29 	(3) may be mistaken in law or arbitrary in the ascertainment of facts;
19.30 	(4) may be unclear or inadequately explained, when reasons should have been 
19.31 	revealed;
19.32 	(5) may result in abuse or neglect of a person receiving treatment;
19.33 	(6) may disregard the rights of a client or other individual served by an agency 
19.34 	or facility;
19.35 	(7) may impede or promote independence, community integration, and productivity 
19.36 	for clients; or
20.1 	(8) may impede or improve the monitoring or evaluation of services provided to 
20.2 	clients.
20.3 	(b) The ombudsman shall, in selecting matters for review and in the course of the 
20.4 	review, avoid duplicating other investigations or regulatory efforts.
20.5 	(c) The ombudsman shall give particular attention to the death or unusual injury of 
20.6 	any individual who is participating in a University of Minnesota Department of Psychiatry 
20.7 	clinical drug trial.
20.8 		Subd. 2a.Mandatory reporting. Within 24 hours after a client suffers death or 
20.9 	serious injury, the agency, facility, or program director, or lead investigator of a clinical 
20.10 	drug trial at the University of Minnesota Department of Psychiatry shall notify the 
20.11 	ombudsman of the death or serious injury. The emergency use of manual restraint must 
20.12 	be reported to the ombudsman as required under section 245D.061, subdivision 8. The 
20.13 	ombudsman is authorized to receive identifying information about a deceased client 
20.14 	according to Code of Federal Regulations, title 42, section 2.15, paragraph (b).
20.15 		Subd. 3.Complaints. (a) The ombudsman may receive a complaint from any 
20.16 	source concerning an action of an agency, facility, or program. After completing a review, 
20.17 	the ombudsman shall inform the complainant and the agency, facility, or program. 
20.18 	No client may be punished nor may the general condition of the client's treatment be 
20.19 	unfavorably altered as a result of an investigation, a complaint by the client, or by another 
20.20 	person on the client's behalf. An agency, facility, or program shall not retaliate or take 
20.21 	adverse action against a client or other person, who in good faith makes a complaint or 
20.22 	assists in an investigation. The ombudsman may classify as confidential, the identity of a 
20.23 	complainant, upon request of the complainant.
20.24 	(b) The ombudsman shall receive a complaint from any source concerning an 
20.25 	action or inaction of the University of Minnesota Department of Psychiatry related 
20.26 	to an individual who is enrolled in a department-approved clinical drug trial. No 
20.27 	individual participating in the trial may be punished, nor may the general condition of 
20.28 	the individual's treatment be unfavorably altered, as a result of an investigation or a 
20.29 	complaint by the individual or the individual's advocate. The university shall not retaliate 
20.30 	or take adverse action against any person who in good faith makes a complaint or assists 
20.31 	in an investigation. The ombudsman may classify the identity of the complainant as 
20.32 	confidential, upon request of the complainant.
20.33 		Subd. 4.Recommendations to agency. (a) If, after reviewing a complaint or 
20.34 	conducting an investigation and considering the response of an agency, facility, or 
20.35 	program and any other pertinent material, the ombudsman determines that the complaint 
21.1 	has merit or the investigation reveals a problem, the ombudsman may recommend that 
21.2 	the agency, facility, or program:
21.3 	(1) consider the matter further;
21.4 	(2) modify or cancel its actions;
21.5 	(3) alter a rule, order, or internal policy;
21.6 	(4) explain more fully the action in question; or
21.7 	(5) take other action.
21.8 	(b) At the ombudsman's request, the agency, facility, or program shall, within a 
21.9 	reasonable time, inform the ombudsman about the action taken on the recommendation 
21.10 	or the reasons for not complying with it.
21.11 		Subd. 5.Recommendations to University of Minnesota. If, after reviewing a 
21.12 	complaint or conducting an investigation and considering the response of the clinical drug 
21.13 	trial's primary investigator or the Department of Psychiatry, the ombudsman determines 
21.14 	that the complaint has merit or the investigation reveals noncompliance with the federal 
21.15 	protection of human subjects requirements or the requirements of the Institutional Review 
21.16 	Board, the ombudsman shall recommend that the Board of Regents of the University of 
21.17 	Minnesota take corrective action to remedy the violations.

21.18 	Sec. 3. Minnesota Statutes 2014, section 245.945, is amended to read:
21.19 	245.945 REIMBURSEMENT TO OMBUDSMAN FOR MENTAL HEALTH 
21.20 	AND DEVELOPMENTAL DISABILITIES.
21.21 	(a) The commissioner shall obtain federal financial participation for eligible activity 
21.22 	by the ombudsman for mental health and developmental disabilities. The ombudsman 
21.23 	shall maintain and transmit to the Department of Human Services documentation that is 
21.24 	necessary in order to obtain federal funds.
21.25 	(b) The Board of Regents of the University of Minnesota shall reimburse the Office 
21.26 	of the Ombudsman for Mental Health and Developmental Disabilities for the oversight 
21.27 	costs incurred in monitoring participants in Department of Psychiatry clinical drug trials. 
21.28 	The ombudsman shall maintain and transmit documentation of costs incurred to the Board 
21.29 	of Regents of the University of Minnesota.

21.30 	Sec. 4. Minnesota Statutes 2014, section 245.95, subdivision 1, is amended to read:
21.31 		Subdivision 1.Specific reports. The ombudsman may send conclusions and 
21.32 	suggestions concerning any matter reviewed to the governor. Before making public a 
21.33 	conclusion or recommendation that expressly or implicitly criticizes an agency, facility, 
21.34 	program, or any person, the ombudsman shall consult with the governor and the agency, 
22.1 	facility, program, or person concerning the conclusion or recommendation. When sending 
22.2 	a conclusion or recommendation to the governor that is adverse to an agency, facility, 
22.3 	program, or any person, the ombudsman shall include any statement of reasonable length 
22.4 	made by that agency, facility, program, or person in defense or mitigation of the office's 
22.5 	conclusion or recommendation. For purposes of this subdivision, "agency, facility, 
22.6 	program, or any person" includes the University of Minnesota Department of Psychiatry 
22.7 	and its employees working in clinical drug trials.

22.8 	Sec. 5. Minnesota Statutes 2014, section 245.97, subdivision 5, is amended to read:
22.9 		Subd. 5.Medical Review Subcommittee. At least five members of the committee, 
22.10 	including at least three physicians, one of whom is a psychiatrist, must be designated by 
22.11 	the governor to serve as a Medical Review Subcommittee. Terms of service, vacancies, 
22.12 	and compensation are governed by subdivision 2. The governor shall designate one of 
22.13 	the members to serve as chair of the subcommittee. The Medical Review Subcommittee 
22.14 	may have access to private and confidential data collected or created by the ombudsman 
22.15 	that are necessary to fulfill the duties of the Medical Review Subcommittee under this 
22.16 	section and may:
22.17 	(1) make a preliminary determination of whether the death of a client that has been 
22.18 	brought to its attention is unusual or reasonably appears to have resulted from causes other 
22.19 	than natural causes and warrants investigation;
22.20 	(2) review the causes of and circumstances surrounding the death;
22.21 	(3) request the county coroner or medical examiner to conduct an autopsy;
22.22 	(4) assist an agency in its investigations of unusual deaths and deaths from causes 
22.23 	other than natural causes; and
22.24 	(5) make a preliminary determination of whether the death of a participant in a 
22.25 	clinical drug trial conducted by the University of Minnesota Department of Psychiatry 
22.26 	appears to have resulted from causes other than natural causes and warrants investigation 
22.27 	and reporting as required by federal laws on the protection of human subjects; and
22.28 	(6) submit a report regarding the death of a client to the committee, the ombudsman, 
22.29 	the client's next-of-kin, and the facility where the death occurred and, where appropriate, 
22.30 	make recommendations to prevent recurrence of similar deaths to the head of each affected 
22.31 	agency or facility, or the Board of Regents of the University of Minnesota.

23.1 	ARTICLE 6
23.2 	COLLEGIATE RECOVERY PROGRAM

23.3 	Section 1. [137.175] ROCHESTER CAMPUS; COLLEGIATE RECOVERY 
23.4 	PROGRAM.
23.5 	(a) The Board of Regents is requested to establish a collegiate recovery program 
23.6 	on its Rochester campus. The purpose of the program must be to provide structured 
23.7 	support for students in recovery from alcohol or chemical addiction or other addictive 
23.8 	behaviors. Program activities may include, but are not limited to, specialized professional 
23.9 	support through academic, career, and financial advising; establishment of on-campus or 
23.10 	residential peer support communities; and opportunities for personal growth through 
23.11 	leadership development and other community engagement activities.
23.12 	(b) No later than January 1, 2020, the Board of Regents must submit a report to the 
23.13 	chairs and ranking minority members of the legislative committees with jurisdiction over 
23.14 	higher education finance and policy on campus recovery program outcomes, if the program 
23.15 	is established. Based on available data, the report must describe, in summary form, the 
23.16 	number of students participating in the program and the success rate of participants, 
23.17 	including retention and graduation rates and long-term recovery and relapse rates.

23.18 	Sec. 2. Laws 2015, chapter 69, article 1, section 5, subdivision 2, is amended to read:

23.19	Subd. 2.Operations and Maintenance
 		559,111,000
		559,111,000
	
23.20 	This appropriation includes funding for 
23.21 	operation and maintenance of the system. Of 
23.22 	the amount appropriated in this subdivision:
23.23 	$11,100,000 in fiscal year 2016 and 
23.24 	$11,100,000 in fiscal year 2017 are to 
23.25 	minimize any increase in a student's cost 
23.26 	of attendance; for research to solve the 
23.27 	challenges facing our state, nation, and 
23.28 	world; to educate a diverse population of 
23.29 	Minnesotans from every community who 
23.30 	show the greatest promise; and for public 
23.31 	service that builds lasting partnerships with 
23.32 	communities across the state to address our 
24.1 	most complex and pressing issues. The 
24.2 	Board of Regents is requested to:
24.3 	(1) maintain a low cost of mission and 
24.4 	advance operational excellence;
24.5 	(2) increase the diversity of the university's 
24.6 	students, faculty, and staff; and
24.7 	(3) strengthen the university's relationships 
24.8 	with the agriculture industry and the 
24.9 	communities of greater Minnesota.
24.10 	$15,000,000 in fiscal year 2016 and 
24.11 	$15,000,000 in fiscal year 2017 are to:
24.12 	(1) increase the medical school's research 
24.13 	capacity;
24.14 	(2) improve the medical school's ranking in 
24.15 	National Institutes of Health funding;
24.16 	(3) ensure the medical school's national 
24.17 	prominence by attracting and retaining 
24.18 	world-class faculty, staff, and students;
24.19 	(4) invest in physician training programs in 
24.20 	rural and underserved communities; and
24.21 	(5) translate the medical school's research 
24.22 	discoveries into new treatments and cures to 
24.23 	improve the health of Minnesotans.
24.24 	The Board of Regents is requested to 
24.25 	consider hiring additional faculty to conduct 
24.26 	research related to regenerative medicine. 
24.27 	$257,200 in fiscal year 2017 is for design 
24.28 	and implementation of a collegiate recovery 
24.29 	program on the University of Minnesota, 
24.30 	Rochester campus consistent with Minnesota 
24.31 	Statutes, section 137.175. This is a onetime 
24.32 	appropriation and is available until June 
24.33 	30, 2019. Beginning in fiscal year 2020, 
25.1 	$179,000 is added to the base to support 
25.2 	operation and growth of the program.
25.3 	Five percent of the fiscal year 2017 
25.4 	appropriation specified in this subdivision 
25.5 	is available according to the schedule in 
25.6 	clauses (1) to (5) in fiscal year 2017 when 
25.7 	the Board of Regents of the University of 
25.8 	Minnesota demonstrates to the commissioner 
25.9 	of management and budget that the board 
25.10 	has met the following specified number of 
25.11 	performance goals:
25.12 	(1) 100 percent if the board meets three, four, 
25.13 	or five goals;
25.14 	(2) 67 percent if two of the goals are met;
25.15 	(3) 33 percent if one of the goals are met; and
25.16 	(4) zero percent if none of the goals are met.
25.17 	The performance goals are:
25.18 	(1) increase by at least one percent 
25.19 	the four-year, five-year, or six-year 
25.20 	undergraduate graduation rates, averaged 
25.21 	over three years, for students of color 
25.22 	systemwide at the University of Minnesota 
25.23 	reported in fall 2016 over fall 2014. The 
25.24 	average rate for fall 2014 is calculated with 
25.25 	the graduation rates reported in fall 2012, 
25.26 	2013, and 2014;
25.27 	(2) increase by at least two percent the 
25.28 	total number of undergraduate STEM 
25.29 	degrees, averaged over three years, conferred 
25.30 	systemwide by the University of Minnesota 
25.31 	reported in fiscal year 2016 over fiscal year 
25.32 	2014. The averaged number for fiscal year 
25.33 	2014 is calculated with the fiscal year 2012, 
25.34 	2013, and 2014 numbers;
26.1 	(3) increase by at least one percent the 
26.2 	four-year undergraduate graduation rate at 
26.3 	the University of Minnesota reported in fall 
26.4 	2016 over fall 2014. The average rate for 
26.5 	fall 2014 is calculated with the graduation 
26.6 	rates reported in fall 2012, 2013, and 2014. 
26.7 	The averaged number for fiscal year 2014 is 
26.8 	calculated with the fiscal year 2012, 2013, 
26.9 	and 2014 numbers;
26.10 	(4) for fiscal year 2016, reallocate 
26.11 	$15,000,000 of administrative costs. The 
26.12 	Board of Regents is requested to redirect 
26.13 	those funds to invest in direct mission 
26.14 	activities, stem growth in cost of attendance, 
26.15 	and to programs that benefit students; and
26.16 	(5) increase licensing disclosures by three 
26.17 	percent for fiscal year 2016 over fiscal year 
26.18 	2015.
26.19 	By August 1, 2015, the Board of Regents and 
26.20 	the Office of Higher Education must agree on 
26.21 	specific numerical indicators and definitions 
26.22 	for each of the five goals that will be used to 
26.23 	demonstrate the University of Minnesota's 
26.24 	attainment of each goal. On or before April 
26.25 	1, 2016, the Board of Regents must report 
26.26 	to the legislative committees with primary 
26.27 	jurisdiction over higher education finance 
26.28 	and policy the progress of the University of 
26.29 	Minnesota toward attaining the goals. The 
26.30 	appropriation base for the next biennium shall 
26.31 	include appropriations not made available 
26.32 	under this subdivision for failure to meet 
26.33 	performance goals. All of the appropriation 
26.34 	that is not available due to failure to meet 
26.35 	performance goals is appropriated to the 
27.1 	commissioner of the Office of Higher 
27.2 	Education for fiscal year 2017 for the purpose 
27.3 	of the state grant program under Minnesota 
27.4 	Statutes, section 136A.121.
27.5 	Performance metrics are intended to facilitate 
27.6 	progress towards the attainment goal under 
27.7 	Minnesota Statutes, section 135A.012.
27.8 	Beginning in fiscal year 2018, the operations 
27.9 	and maintenance base appropriation is 
27.10 	$559,111,000.

27.11 	ARTICLE 7
27.12 	GENERAL EDUCATION

27.13 	Section 1. Minnesota Statutes 2014, section 123A.24, subdivision 2, is amended to read:
27.14 		Subd. 2.Cooperative unit defined. For the purposes of this section, a cooperative 
27.15 	unit is:
27.16 	(1) an education district organized under sections 123A.15 to 123A.19;
27.17 	(2) a cooperative vocational center organized under section 123A.22;
27.18 	(3) an intermediate district organized under chapter 136D;
27.19 	(4) a service cooperative organized under section 123A.21; or
27.20 	(5) a regional management information center organized under section 123A.23 or 
27.21 	as a joint powers district according to section 471.59.; or
27.22 	(6) a special education cooperative organized under section 471.59.

27.23 	Sec. 2. Minnesota Statutes 2014, section 124D.111, is amended by adding a 
27.24 	subdivision to read:
27.25 		Subd. 2a.Federal child and adult care food program; financial viability. (a) A 
27.26 	nonprofit organization with fewer than three years of experience and performance data 
27.27 	that is applying for approval as a multisite sponsoring organization under the federal child 
27.28 	and adult care food program may demonstrate its financial viability by submitting to the 
27.29 	commissioner a written statement from a certified public accountant indicating, based on 
27.30 	generally accepted accounting principles, that the nonprofit organization has the financial 
27.31 	resources needed to sponsor the program on a daily basis and to withstand temporary 
27.32 	interruptions in program payments. The statement from a certified public accountant 
27.33 	satisfies the requirement for a nonprofit organization to demonstrate its financial viability 
28.1 	under the federal child and adult care food program in Minnesota. Consistent with 
28.2 	this paragraph, the commissioner must post on the department's Web site criteria for 
28.3 	interested nonprofit organizations, those with fewer than three years of experience and 
28.4 	performance data, and those with three or more years of experience and performance data, 
28.5 	to demonstrate financial viability for the Minnesota program.
28.6 	(b) The commissioner must use an expedited process to reconsider any application 
28.7 	by a nonprofit organization under paragraph (a) applying for approval as a multisite 
28.8 	sponsoring organization under the federal child and adult care food program submitted to 
28.9 	the commissioner after July 1, 2015, if the commissioner denied the application, in whole 
28.10 	or in part, based upon the applicant's inability to demonstrate financial viability.

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

28.12 	Sec. 3. Minnesota Statutes 2015 Supplement, section 126C.10, subdivision 1, is 
28.13 	amended to read:
28.14 		Subdivision 1.General education revenue. (a) Notwithstanding any law to the 
28.15 	contrary, a school board in any school year may adopt a resolution declaring an urgent 
28.16 	educational need for that school year and resolve to reallocate the district's general 
28.17 	education revenue under this section to provide more effective education programs and 
28.18 	services designed to improve the educational outcomes of all students enrolled in the 
28.19 	district. A board action under this paragraph must not increase state aid obligations to 
28.20 	the district, result in additional property tax authority for the district, or interfere with 
28.21 	federally mandated laws or state or federal court orders.
28.22 	(b) The general education revenue for each district equals the sum of the district's 
28.23 	basic revenue, extended time revenue, gifted and talented revenue, declining enrollment 
28.24 	revenue, local optional revenue, small schools revenue, basic skills revenue, secondary 
28.25 	sparsity revenue, elementary sparsity revenue, transportation sparsity revenue, total 
28.26 	operating capital revenue, equity revenue, pension adjustment revenue, and transition 
28.27 	revenue.

28.28 	EFFECTIVE DATE. This section is effective July 1, 2016.

28.29 	Sec. 4. Minnesota Statutes 2014, section 126C.10, subdivision 2e, is amended to read:
28.30 		Subd. 2e.Local optional revenue. (a) Local optional revenue for a school district 
28.31 	with a board-approved plan equals $424 times the adjusted pupil units of the district 
28.32 	for that school year.
29.1 	(b) A district's local optional levy equals its local optional revenue times the lesser 
29.2 	of one or the ratio of its referendum market value per resident pupil unit to $510,000. 
29.3 	The local optional revenue levy must be spread on referendum market value. A district 
29.4 	may levy less than the permitted amount.
29.5 	(c) A district's local optional aid equals its local optional revenue less its local 
29.6 	optional levy, times the ratio of the actual amount levied to the permitted levy.
29.7 	(d) Beginning with revenue for the 2017-2018 school year, a school district is 
29.8 	eligible for local optional revenue under this subdivision only after the school board has 
29.9 	asked for public testimony and adopted a written plan describing the proposed uses of 
29.10 	the local optional revenue. A board-approved plan may be in place for no more than five 
29.11 	fiscal years, after which time a new plan must be adopted.

29.12 	Sec. 5. Minnesota Statutes 2015 Supplement, section 126C.10, subdivision 13a, 
29.13 	is amended to read:
29.14 		Subd. 13a.Operating capital levy. To obtain operating capital revenue, a district 
29.15 	may levy an amount not more than the product of its operating capital revenue for the 
29.16 	fiscal year times the lesser of one or the ratio of its adjusted net tax capacity per adjusted 
29.17 	pupil unit to the operating capital equalizing factor. The operating capital equalizing factor 
29.18 	equals $14,500 for fiscal years 2015 and 2016, $14,740 for fiscal year 2017, $17,473
29.19 	$17,495 for fiscal year 2018, and $20,510 $20,532 for fiscal year 2019 and later.

29.20 	Sec. 6. Minnesota Statutes 2014, section 126C.10, subdivision 24, is amended to read:
29.21 		Subd. 24.Equity revenue. (a) A school district qualifies for equity revenue if:
29.22 	(1) the school district's adjusted pupil unit amount of basic revenue, transition 
29.23 	revenue, and referendum revenue is less than the value of the school district at or 
29.24 	immediately above the 95th percentile of school districts in its equity region for those 
29.25 	revenue categories; and
29.26 	(2) the school district's administrative offices are not located in a city of the first 
29.27 	class on July 1, 1999.
29.28 	(b) Equity revenue for a qualifying district that receives referendum revenue under 
29.29 	section 126C.17, subdivision 4, equals the product of (1) the district's adjusted pupil 
29.30 	units for that year; times (2) the sum of (i) $14, plus (ii) $80, times the school district's 
29.31 	equity index computed under subdivision 27.
29.32 	(c) Equity revenue for a qualifying district that does not receive referendum revenue 
29.33 	under section 126C.17, subdivision 4, equals the product of the district's adjusted pupil 
29.34 	units for that year times $14.
30.1 	(d) A school district's equity revenue is increased by the greater of zero or an amount 
30.2 	equal to the district's adjusted pupil units times the difference between ten percent of the 
30.3 	statewide average amount of referendum revenue per adjusted pupil unit for that year and 
30.4 	the district's referendum revenue per adjusted pupil unit. A school district's revenue under 
30.5 	this paragraph must not exceed $100,000 for that year.
30.6 	(e) A school district's equity revenue for a school district located in the metro equity 
30.7 	region equals the amount computed in paragraphs (b), (c), and (d) multiplied by 1.25. 
30.8 	Beginning in fiscal year 2018, a district's equity revenue adjustment under this paragraph 
30.9 	is available only after the school board has adopted a written resolution authorizing the 
30.10 	equity revenue adjustment. The resolution must be adopted at a board meeting after the 
30.11 	public has been given an opportunity to speak on the resolution. A resolution adopted 
30.12 	under this subdivision may authorize the revenue adjustment for up to five years, and the 
30.13 	board may subsequently reauthorize the revenue in increments of up to five years.
30.14 	(f) A school district's additional equity revenue equals $50 times its adjusted pupil 
30.15 	units.

30.16 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2017 
30.17 	and later.

30.18 	Sec. 7. Minnesota Statutes 2015 Supplement, section 126C.15, subdivision 1, is 
30.19 	amended to read:
30.20 		Subdivision 1.Use of revenue. The basic skills revenue under section 126C.10, 
30.21 	subdivision 4, must be reserved and used to meet the educational needs of pupils who 
30.22 	enroll under-prepared to learn and whose progress toward meeting state or local content 
30.23 	or performance standards is below the level that is appropriate for learners of their age. 
30.24 	Basic skills revenue may also be used for programs designed to prepare children and their 
30.25 	families for entry into school whether the student first enrolls in kindergarten or first grade. 
30.26 	Any of the following may be provided to meet these learners' needs:
30.27 	(1) direct instructional services under the assurance of mastery program according 
30.28 	to section 124D.66;
30.29 	(2) remedial instruction in reading, language arts, mathematics, other content areas, 
30.30 	or study skills to improve the achievement level of these learners;
30.31 	(3) additional teachers and teacher aides to provide more individualized instruction 
30.32 	to these learners through individual tutoring, lower instructor-to-learner ratios, or team 
30.33 	teaching;
31.1 	(4) a longer school day or week during the regular school year or through a summer 
31.2 	program that may be offered directly by the site or under a performance-based contract 
31.3 	with a community-based organization;
31.4 	(5) recruitment and new teacher development activities through quality mentor-led 
31.5 	induction or "grow your own" initiatives;
31.6 	(6) a hiring bonus or other added compensation for a teacher identified as effective 
31.7 	or highly effective under the local teacher professional review cycle who agrees to work 
31.8 	in a hard-to-fill position or hard-to-staff school setting such as a school with a majority 
31.9 	of students whose families meet federal poverty guidelines, a geographically isolated 
31.10 	school, or a school identified by the state as eligible for targeted programs or services 
31.11 	for its students;
31.12 	(5) (7) comprehensive and ongoing staff development consistent with district and 
31.13 	site plans according to section 122A.60 and to implement plans under section 120B.12, 
31.14 	subdivision 4a, for teachers, teacher aides, principals, and other personnel to improve 
31.15 	their ability to identify the needs of these learners and provide appropriate remediation, 
31.16 	intervention, accommodations, or modifications;
31.17 	(6) (8) instructional materials, digital learning, and technology appropriate for 
31.18 	meeting the individual needs of these learners;
31.19 	(7) (9) programs to reduce truancy, encourage completion of high school, enhance 
31.20 	self-concept, provide health services, provide nutrition services, provide a safe and secure 
31.21 	learning environment, provide coordination for pupils receiving services from other 
31.22 	governmental agencies, provide psychological services to determine the level of social, 
31.23 	emotional, cognitive, and intellectual development, and provide counseling services, 
31.24 	guidance services, and social work services;
31.25 	(8) (10) bilingual programs, bicultural programs, and programs for English learners;
31.26 	(9) all-day kindergarten;
31.27 	(10) (11) early education programs, parent-training programs, school readiness 
31.28 	programs, kindergarten programs for four-year-olds, voluntary home visits under section 
31.29 	124D.13, subdivision 4, and other outreach efforts designed to prepare children for 
31.30 	kindergarten;
31.31 	(11) (12) extended school day and extended school year programs, including 
31.32 	summer academies; and
31.33 	(12) (13) substantial parent involvement in developing and implementing remedial 
31.34 	education or intervention plans for a learner, including learning contracts between the 
31.35 	school, the learner, and the parent that establish achievement goals and responsibilities of 
31.36 	the learner and the learner's parent or guardian.

32.1 	EFFECTIVE DATE. This section is effective for fiscal year 2017 and later.

32.2 	Sec. 8. Minnesota Statutes 2015 Supplement, section 126C.15, subdivision 2, is 
32.3 	amended to read:
32.4 		Subd. 2.Building allocation. (a) Unless a plan has been adopted according to 
32.5 	paragraph (b), a district or cooperative must allocate its compensatory revenue to each 
32.6 	school building in the district or cooperative where the children who have generated the 
32.7 	revenue are served unless the school district or cooperative has received permission under 
32.8 	Laws 2005, First Special Session chapter 5, article 1, section 50, to allocate compensatory 
32.9 	revenue according to student performance measures developed by the school board.
32.10 	(b) Notwithstanding paragraph (a), the board of a district or cooperative may allocate 
32.11 	up to 50 percent of the amount ofreallocate any or all of its compensatory revenue that 
32.12 	the district receives to school sites according to a plan adopted by the school board. 
32.13 	The money reallocated under this paragraph must be spent for the purposes listed in 
32.14 	subdivision 1, but may be spent on students in any grade, including students attending 
32.15 	school readiness or other prekindergarten programs.
32.16 	(c) For the purposes of this section and section 126C.05, subdivision 3, "building" 
32.17 	means education site as defined in section 123B.04, subdivision 1.
32.18 	(d) Notwithstanding section 123A.26, subdivision 1, compensatory revenue 
32.19 	generated by students served at a cooperative unit shall be paid to the cooperative unit.
32.20 	(e) A district or cooperative with school building openings, school building 
32.21 	closings, changes in attendance area boundaries, or other changes in programs or student 
32.22 	demographics between the prior year and the current year may reallocate compensatory 
32.23 	revenue among sites to reflect these changes. A district or cooperative must report to the 
32.24 	department any adjustments it makes according to this paragraph and the department must 
32.25 	use the adjusted compensatory revenue allocations in preparing the report required under 
32.26 	section 123B.76, subdivision 3, paragraph (c).

32.27 	EFFECTIVE DATE. This section is effective for fiscal year 2017 and later.

32.28 	Sec. 9. Minnesota Statutes 2014, section 126C.15, subdivision 3, is amended to read:
32.29 		Subd. 3.Recommendation. A school site decision-making team, as defined in 
32.30 	section 123B.04, subdivision 2, paragraph (a), or the instruction and curriculum advisory 
32.31 	committee under section 120B.11, if the school has no school site decision team, shall may
32.32 	recommend to the school board how the compensatory education revenue will be used to 
32.33 	carry out the purpose of this section. A school district that has received permission under 
32.34 	Laws 2005, First Special Session chapter 5, article 1, section 50, to allocate compensatory 
33.1 	revenue according to school performance measures shall share its plan for the distribution 
33.2 	of compensatory revenue with the school site decision team.

33.3 	EFFECTIVE DATE. This section is effective July 1, 2016.

33.4 	Sec. 10. Minnesota Statutes 2014, section 126C.17, subdivision 9a, is amended to read:
33.5 		Subd. 9a.Board-approved referendum allowance. Notwithstanding subdivision 
33.6 	9, a school district may convert up to $300 per adjusted pupil unit of referendum authority 
33.7 	from voter approved to board approved by a board vote. A district with less than $300 per 
33.8 	adjusted pupil unit of referendum authority after the local optional revenue subtraction 
33.9 	under subdivision 1 may authorize new referendum authority up to the difference between 
33.10 	$300 per adjusted pupil unit and the district's referendum authority. The board may 
33.11 	authorize this levy for up to five years and. The board may subsequently reauthorize that 
33.12 	authority in increments of up toonly after allowing public testimony on the authority and 
33.13 	adopting a written resolution extending the authority for a specified number of years, 
33.14 	not to exceed five years.

33.15 	EFFECTIVE DATE. This section is effective for authority approved by the board 
33.16 	on or after July 1, 2016.

33.17 	Sec. 11. Minnesota Statutes 2014, section 127A.353, subdivision 4, is amended to read:
33.18 		Subd. 4.Duties; powers. (a) The school trust lands director shall:
33.19 	(1) take an oath of office before assuming any duties as the director;
33.20 	(2) evaluate the school trust land asset position;
33.21 	(3) determine the estimated current and potential market value of school trust lands;
33.22 	(4) advise the governor, Executive Council, commissioner of natural resources, 
33.23 	and the Legislative Permanent School Fund Commission on the management of school 
33.24 	trust lands, including:
33.25 	(i) Department of Natural Resources school trust land management plans;
33.26 	(ii) leases of school trust lands;
33.27 	(iii) royalty agreements on school trust lands;
33.28 	(iv) land sales and exchanges;
33.29 	(v) cost certification; and
33.30 	(vi) revenue generating options;
33.31 	(5) propose to the Legislative Permanent School Fund Commission legislative 
33.32 	changes that will improve the asset allocation of the school trust lands;
34.1 	(6) develop a ten-year strategic plan and a 25-year framework for management of 
34.2 	school trust lands, in conjunction with the commissioner of natural resources, that is 
34.3 	updated every five years and implemented by the commissioner, with goals to:
34.4 	(i) retain core real estate assets;
34.5 	(ii) increase the value of the real estate assets and the cash flow from those assets;
34.6 	(iii) rebalance the portfolio in assets with high performance potential and the 
34.7 	strategic disposal of selected assets;
34.8 	(iv) establish priorities for management actions; and
34.9 	(v) balance revenue enhancement and resource stewardship;
34.10 	(7) submit to the Legislative Permanent School Fund Commission for review an 
34.11 	annual budget and management plan for the director; and
34.12 	(8) keep the beneficiaries, governor, legislature, and the public informed about the 
34.13 	work of the director by reporting to the Legislative Permanent School Fund Commission 
34.14 	in a public meeting at least once during each calendar quarter.
34.15 	(b) In carrying out the duties under paragraph (a), the school trust lands director 
34.16 	shall have the authority to:
34.17 	(1) direct and control money appropriated to the director;
34.18 	(2) establish job descriptions and employ up to five employees in the unclassified 
34.19 	service, within the limitations of money appropriated to the director;
34.20 	(3) enter into interdepartmental agreements with any other state agency; and
34.21 	(4) enter into joint powers agreements under chapter 471;
34.22 	(5) evaluate and initiate real estate development projects on school trust lands with 
34.23 	the advice of the Legislative Permanent School Fund Commission in order to generate 
34.24 	long-term economic return to the permanent school fund; and
34.25 	(4) (6) submit recommendations on strategies for school trust land leases, sales, or 
34.26 	exchanges to the commissioner of natural resources and the Legislative Permanent School 
34.27 	Fund Commission.

34.28 	EFFECTIVE DATE. This section is effective July 1, 2016.

34.29 	Sec. 12. Minnesota Statutes 2014, section 127A.51, is amended to read:
34.30 	127A.51 STATEWIDE AVERAGE REVENUE.
34.31 	By October December 1 of each year the commissioner must estimate the statewide 
34.32 	average adjusted general revenue per adjusted pupil unit and the disparity in adjusted 
34.33 	general revenue among pupils and districts by computing the ratio of the 95th percentile 
35.1 	to the fifth percentile of adjusted general revenue. The commissioner must provide that 
35.2 	information to all districts.
35.3 	If the disparity in adjusted general revenue as measured by the ratio of the 95th 
35.4 	percentile to the fifth percentile increases in any year, the commissioner shall recommend 
35.5 	to the legislature options for change in the general education formula that will limit the 
35.6 	disparity in adjusted general revenue to no more than the disparity for the previous 
35.7 	school year. The commissioner must submit the recommended options to the education 
35.8 	committees of the legislature by January 15 February 1.
35.9 	For purposes of this section and section 126C.10, adjusted general revenue means 
35.10 	the sum of basic revenue under section 126C.10, subdivision 2; referendum revenue under 
35.11 	section 126C.17; local optional revenue under section 126C.10, subdivision 2e; and equity 
35.12 	revenue under section 126C.10, subdivisions 24a and 24b.

35.13 	Sec. 13. Laws 2013, chapter 116, article 7, section 19, as amended by Laws 2015, First 
35.14 	Special Session chapter 3, article 7, section 6, is amended to read:
35.15 	Sec. 19. FUND OR ACCOUNT TRANSFER; FISCAL YEAR 2014 THROUGH 
35.16 	FISCAL YEAR 2017 ONLY.
 35.17 	(a) Notwithstanding Minnesota Statutes, section 123B.80, subdivision 3, for fiscal 
35.18 	year 2014 through fiscal year 2017 only and later, the commissioner must approve a 
35.19 	request for a fund or account transfer if the transfer does not increase state aid obligations 
35.20 	to the district or result in additional property tax authority for the district. This section 
35.21 	does not permit transfers from the community service fund, the food service fund, or the 
35.22 	reserved account for staff development under section 122A.61.
35.23 	(b) A school board may approve a fund or account transfer under paragraph (a) 
35.24 	only after adopting a resolution stating the fund or account transfer will not diminish 
35.25 	instructional opportunities for students.

35.26 	EFFECTIVE DATE. This section is effective July 1, 2016.

35.27 	Sec. 14. Laws 2015, First Special Session chapter 3, article 1, section 27, subdivision 
35.28 	2, is amended to read:
35.29 		Subd. 2.General education aid. For general education aid under Minnesota 
35.30 	Statutes, section 126C.13, subdivision 4:

35.31
35.32		$  
	6,624,310,000
6,649,435,000
	.....
	2016
	
35.33
35.34		$ 
	6,761,574,000
6,794,192,000
	.....
	2017
	
36.1 	The 2016 appropriation includes $622,908,000 for 2015 and $6,001,405,000
36.2 	$6,026,527,000 for 2016.
36.3 	The 2017 appropriation includes $638,812,000 $641,412,000 for 2016 and 
36.4 	$6,122,762,000 $6,152,780,000 for 2017.

36.5 	Sec. 15. VOLUNTARY BOUNDARY ALIGNMENT; MOORHEAD AND 
36.6 	DILWORTH-GLYNDON-FELTON.
 36.7 		Subdivision 1.Boundary realignment allowed. The school boards of Independent 
36.8 	School Districts Nos. 152, Moorhead, and 2164, Dilworth-Glyndon-Felton, may realign 
36.9 	their shared district boundaries according to the provisions of this section.
36.10 		Subd. 2.Plan to establish new boundaries. (a) The school boards of Independent 
36.11 	School Districts Nos. 152, Moorhead, and 2164, Dilworth-Glyndon-Felton, may jointly 
36.12 	develop a plan to realign their shared school district boundaries over a period of years. 
36.13 	(b) The plan must specify and identify each group of parcels that will be transferred 
36.14 	and the method used to determine the year during which each set of parcels is transferred. 
36.15 	The method of transfer may include an analysis of the relative tax base of the parcels to 
36.16 	be transferred and may make the transfers of parcels effective upon the relationship in 
36.17 	relative tax bases.
36.18 	(c) The written plan must be adopted by each school board after the board has 
36.19 	allowed public testimony on the plan.
36.20 	(d) The plan must be filed with both the county auditor and the commissioner of 
36.21 	education.
36.22 	(e) After adopting the plan, each school board must publish notice of the plan 
36.23 	realigning district boundaries. The notice must include a general description of the area 
36.24 	that will be affected by the proposed boundary alignment and the method by which the 
36.25 	boundaries will be realigned. The notice must also be mailed to each property owner of 
36.26 	record in the area proposed for realignment. 
36.27 		Subd. 3.Bonded debt. As of the effective date of each exchange of parcels between 
36.28 	the two school districts, for the next and subsequent tax years, the taxable property in the 
36.29 	newly aligned parcel is taxable for a portion of the bonded debt of the school district to 
36.30 	which the property is attached and is not taxable for the bonded debt from the school 
36.31 	district from which the property is detached.
36.32 		Subd. 4.County auditor notified. After adoption of the plan, each school board 
36.33 	must provide a copy of the plan to the county auditor. The county auditor may request 
36.34 	any other necessary information from the school districts to affect the transfer of parcels 
36.35 	between the school districts. Each year, the school districts must notify the county auditor 
37.1 	of what block of parcels, if any, will be transferred between the two school districts. The 
37.2 	county auditor must notify each affected property owner of the boundary change.
37.3 		Subd. 5.Report to Department of Education. Upon adoption of the plan, the 
37.4 	school boards must submit a copy of the plan to the Department of Education. The districts 
37.5 	must also provide any additional information necessary for computing school aids and 
37.6 	levies to the Department of Education in the form and manner requested by the department.

37.7 	EFFECTIVE DATE. This section is effective the day after the school boards of 
37.8 	Independent School Districts Nos. 152, Moorhead, and 2164, Dilworth-Glyndon-Felton, 
37.9 	and their respective chief clerical officers timely comply with Minnesota Statutes, section 
37.10 	645.021, subdivisions 2 and 3.

37.11 	Sec. 16. GLENVILLE-EMMONS SCHOOL DISTRICT; OPERATING 
37.12 	REFERENDUM ADJUSTMENT.
 37.13 		Subdivision 1.Year first effective. Notwithstanding any law to the contrary, the 
37.14 	operating referendum approved by the voters of Independent School District No. 2886, 
37.15 	Glenville-Emmons, in April 2015, is first effective for fiscal year 2017 and may run for 
37.16 	the number of years stated on the ballot. The total referendum authority for fiscal year 
37.17 	2017, including any board-approved authority, may not exceed the amount approved 
37.18 	by the voters.
37.19 		Subd. 2.Documentation and process. The board of Independent School District 
37.20 	No. 2886, Glenville-Emmons, must submit to the commissioner of education the following:
37.21 	(1) a unanimously adopted written resolution of the board at a public meeting 
37.22 	authorizing the operating referendum to begin in fiscal year 2017;
37.23 	(2) documentation showing that the district's approved plan to eliminate its statutory 
37.24 	operating debt is being followed; and
37.25 	(3) any other information requested by the commissioner.
37.26 		Subd. 3.Levy adjustment. Independent School District No. 2886, 
37.27 	Glenville-Emmons, may certify the levy to accompany the fiscal year 2017 operating 
37.28 	referendum over a three-year period beginning with taxes payable in 2017.

37.29 	Sec. 17. EQUITY AID; FISCAL YEAR 2017.
 37.30 	For fiscal year 2017 only, the entire amount of the equity revenue adjustment under 
37.31 	section 6 is paid through state aid.

37.32 	Sec. 18. REPORT ON POSTSECONDARY ENROLLMENT OPTIONS 
37.33 	PROGRAM.
 38.1 	The commissioner of education must include in its 2017 report to the legislature 
38.2 	on dual credit programs the number of students participating in early middle college 
38.3 	programs and the number of English language learners participating in each type of dual 
38.4 	enrollment program. The commissioner must also include recommendations about how to 
38.5 	expand participation in early middle college programs for English language learners.

38.6 	Sec. 19. REVISOR'S INSTRUCTION.
 38.7 	The revisor of statutes shall codify section 13 in Minnesota Statutes, section 
38.8 	123B.79, consistent with other limitations on school district fund and account transfers 
38.9 	and appropriately revise any statutory cross-reference consistent with that recoding.

38.10 	ARTICLE 8
38.11 	EDUCATION EXCELLENCE

38.12 	Section 1. [119A.035] SCHOOL CRISIS RESPONSE TEAMS.
38.13 		Subdivision 1.Commissioner's duties. To ensure timely responses to school crises, 
38.14 	the commissioner must work in cooperation with the Minnesota School Safety Center to 
38.15 	collect, maintain, and make available to schools contact information for crisis response 
38.16 	teams throughout the state.
38.17 		Subd. 2.Crisis response teams. In regions of Minnesota where an existing crisis 
38.18 	response team has not been formed by a school district, county, or city, the commissioner, 
38.19 	in cooperation with the Minnesota School Safety Center, must convene a working group 
38.20 	in each region to develop a plan to form a crisis response team for that region. Team 
38.21 	members from the public and private sectors may represent various disciplines, including 
38.22 	school administrators, guidance counselors, psychologists, social workers, teachers, 
38.23 	nurses, security experts, media relations professionals, and other related areas.

38.24 	Sec. 2. Minnesota Statutes 2014, section 120A.22, subdivision 12, is amended to read:
38.25 		Subd. 12.Legitimate exemptions. (a) A parent, guardian, or other person having 
38.26 	control of a child may apply to a school district to have the child excused from attendance
38.27 	attending for the whole or any part of the time school is in session or participating in a 
38.28 	physical education class during any school year. Application may be made to any member 
38.29 	of the board, a truant officer, a principal, or the superintendent. The school district may 
38.30 	state in its school attendance policy that it may ask the student's parent or legal guardian to 
38.31 	verify in writing the reason for the child's absence from school or not participating in a 
38.32 	physical education class. A note from a physician or a licensed mental health professional 
38.33 	stating that the child cannot attend school or participate in a physical education class 
39.1 	is a valid excuse. The board of the district in which the child resides may approve the 
39.2 	application upon the following being demonstrated to the satisfaction of that board:
39.3 	(1) that the child's physical or mental health is such as to prevent attendance at
39.4 	attending  school or participating in a physical education class or application applying to 
39.5 	study for the period required, which includes:
39.6 	(i) child illness, medical, dental, orthodontic, or counseling appointments;
39.7 	(ii) family emergencies;
39.8 	(iii) the death or serious illness or funeral of an immediate family member;
39.9 	(iv) active duty in any military branch of the United States;
39.10 	(v) the child has a condition that requires ongoing treatment for a mental health 
39.11 	diagnosis; or
39.12 	(vi) other exemptions included in the district's school attendance policy;
39.13 	(2) that the child has already completed state and district standards required for 
39.14 	graduation from high school; or
39.15 	(3) that it is the wish of the parent, guardian, or other person having control of the 
39.16 	child, that the child attend for a period or periods not exceeding in the aggregate three 
39.17 	hours in any week, a school for religious instruction conducted and maintained by some 
39.18 	church, or association of churches, or any Sunday school association incorporated under 
39.19 	the laws of this state, or any auxiliary thereof. This school for religious instruction must 
39.20 	be conducted and maintained in a place other than a public school building, and it must 
39.21 	not, in whole or in part, be conducted and maintained at public expense. However, a child 
39.22 	may be absent from school on such days as the child attends upon instruction according to 
39.23 	the ordinances of some church.
39.24 	(b) Notwithstanding subdivision 6, paragraph (a), a parent may withdraw a child 
39.25 	from an all-day, every day kindergarten program and put their child in a half-day program, 
39.26 	if offered, or an alternate-day program without being truant. A school board must excuse a 
39.27 	kindergarten child from a part of a school day at the request of the child's parent.

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

39.29 	Sec. 3. Minnesota Statutes 2014, section 120A.42, is amended to read:
39.30 	120A.42 CONDUCT OF SCHOOL ON CERTAIN HOLIDAYS.
39.31 	(a) The governing body of any district may contract with any of the teachers of the 
39.32 	district for the conduct of schools, and may conduct schools, on either, or any, of the 
39.33 	following holidays, provided that a clause to this effect is inserted in the teacher's contract: 
39.34 	Martin Luther King's birthday, Lincoln's and Washington's birthdays, Columbus Day 
40.1 	and Veterans' Day. On Martin Luther King's birthday, Washington's birthday, Lincoln's 
40.2 	birthday, and Veterans' Day at least one hour of the school program must be devoted to a 
40.3 	patriotic observance of the day.
40.4 	(b) A district may conduct a school program to honor Constitution Day and 
40.5 	Citizenship Day by providing opportunities for students to learn about the principles of 
40.6 	American democracy, the American system of government, American citizens' rights and 
40.7 	responsibilities, American history, and American geography, symbols, and holidays. 
40.8 	Among other activities under this paragraph, districts may administer to students the test 
40.9 	questions United States Citizenship and Immigration Services officers pose to applicants 
40.10 	for naturalization and may formally recognize students who are able to answer 80 or 
40.11 	more of the 100 questions correctly.

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

40.14 	Sec. 4. Minnesota Statutes 2014, section 120B.02, is amended by adding a subdivision 
40.15 	to read:
40.16 		Subd. 3.Required knowledge and understanding of civics. (a) For purposes of 
40.17 	this subdivision, "civics test questions" means 50 of the 100 questions that, as of January 1, 
40.18 	2015, United States citizenship and immigration services officers use to select the questions 
40.19 	they pose to applicants for naturalization so the applicants can demonstrate their knowledge 
40.20 	and understanding of the fundamentals of United States history and government, as 
40.21 	required by United States Code, title 8, section 1423. The Learning Law and Democracy 
40.22 	Foundation, in consultation with Minnesota civics teachers, must select by July 1 each year 
40.23 	50 of the 100 questions under this paragraph to serve as the state's civics test questions for 
40.24 	the proximate school year and immediately transmit the 50 selected civics test questions to 
40.25 	the department and to the Legislative Coordinating Commission, which must post the 50 
40.26 	questions it receives on the Minnesota's Legacy Web site by August 1 of that year.
40.27 	(b) A student enrolled in a public school must correctly answer at least 30 of the 50 
40.28 	civics test questions. A school or district must record on a student's transcript whether 
40.29 	and when the student answered at least 30 of 50 civics test questions correctly. A school 
40.30 	or district may exempt a student with disabilities from this requirement if the student's 
40.31 	individualized education program team determines the requirement is inappropriate and 
40.32 	establishes an alternative requirement. A school or district may administer the civics test 
40.33 	questions in a language other than English to students who qualify for English learner 
40.34 	services.
41.1 	(c) Schools and districts may administer civics test questions as part of the social 
41.2 	studies curriculum. A district must not prevent a student from graduating or deny a student 
41.3 	a high school diploma for failing to correctly answer at least 30 of 50 civics test questions.
41.4 	(d) The commissioner and public schools and school districts must not charge 
41.5 	students any fees related to this subdivision.

41.6 	EFFECTIVE DATE. This section is effective for students enrolling in grade 9 in 
41.7 	the 2017-2018 school year or later.

41.8 	Sec. 5. Minnesota Statutes 2014, section 120B.021, subdivision 1, is amended to read:
41.9 		Subdivision 1.Required academic standards. (a) The following subject areas 
41.10 	are required for statewide accountability:
41.11 	(1) language arts;
41.12 	(2) mathematics;
41.13 	(3) science;
41.14 	(4) social studies, including history, geography, economics, and government and 
41.15 	citizenship that includes civics consistent with section 120B.02, subdivision 3;
41.16 	(5) physical education;
41.17 	(6) health, for which locally developed academic standards apply; and
41.18 	(7) the arts, for which statewide or locally developed academic standards apply, as 
41.19 	determined by the school district. Public elementary and middle schools must offer at least 
41.20 	three and require at least two of the following four arts areas: dance; music; theater; and 
41.21 	visual arts. Public high schools must offer at least three and require at least one of the 
41.22 	following five arts areas: media arts; dance; music; theater; and visual arts.
41.23 	(b) For purposes of applicable federal law, the academic standards for language arts, 
41.24 	mathematics, and science apply to all public school students, except the very few students 
41.25 	with extreme cognitive or physical impairments for whom an individualized education 
41.26 	program team has determined that the required academic standards are inappropriate. An 
41.27 	individualized education program team that makes this determination must establish 
41.28 	alternative standards.
41.29 	(c) Consistent with section 120B.021, subdivision 4, paragraph (g), the department 
41.30 	must adopt the most recent Society of Health and Physical Education (SHAPE) America 
41.31 	or other nationally recognized kindergarten through grade 12 physical education standards 
41.32 	and benchmarks as the required Minnesota physical education academic standards. The 
41.33 	department may modify and adapt the national standards and benchmarks to accommodate 
41.34 	state interest so long as it maintains the purpose and integrity of the national standards. The 
42.1 	department must post on its Web site existing assessments available in the public domain 
42.2 	for school districts to use in assessing students' mastery of the physical education standards.
42.3 	(c)(d) District efforts to develop, implement, or improve instruction or curriculum 
42.4 	as a result of the provisions of this section must be consistent with sections 120B.10, 
42.5 	120B.11, and 120B.20.

42.6 	EFFECTIVE DATE. Paragraph (c) is effective for the 2020-2021 school year 
42.7 	and later.

42.8 	Sec. 6. Minnesota Statutes 2014, section 120B.021, subdivision 3, is amended to read:
42.9 		Subd. 3.Rulemaking. The commissioner, consistent with the requirements of 
42.10 	this section and section 120B.022, must adopt statewide rules under section 14.389 for 
42.11 	implementing statewide rigorous core academic standards in language arts, mathematics, 
42.12 	science, social studies, physical education, and the arts. After the rules authorized under 
42.13 	this subdivision are initially adopted, the commissioner may not amend or repeal these 
42.14 	rules nor adopt new rules on the same topic without specific legislative authorization. The 
42.15 	academic standards for language arts, mathematics, and the arts must be implemented for 
42.16 	all students beginning in the 2003-2004 school year. The academic standards for science 
42.17 	and social studies must be implemented for all students beginning in the 2005-2006 school 
42.18 	year.

42.19 	Sec. 7. Minnesota Statutes 2015 Supplement, section 120B.021, subdivision 4, is 
42.20 	amended to read:
42.21 		Subd. 4.Revisions and reviews required. (a) The commissioner of education must 
42.22 	revise and appropriately embed technology and information literacy standards consistent 
42.23 	with recommendations from school media specialists into the state's academic standards 
42.24 	and graduation requirements and implement a ten-year cycle to review and, consistent 
42.25 	with the review, revise state academic standards and related benchmarks, consistent with 
42.26 	this subdivision. During each ten-year review and revision cycle, the commissioner also 
42.27 	must examine the alignment of each required academic standard and related benchmark 
42.28 	with the knowledge and skills students need for career and college readiness and advanced 
42.29 	work in the particular subject area. The commissioner must include the contributions of 
42.30 	Minnesota American Indian tribes and communities as related to the academic standards 
42.31 	during the review and revision of the required academic standards.
42.32 	(b) The commissioner must ensure that the statewide mathematics assessments 
42.33 	administered to students in grades 3 through 8 and 11 are aligned with the state academic 
42.34 	standards in mathematics, consistent with section 120B.30, subdivision 1, paragraph 
43.1 	(b). The commissioner must implement a review of the academic standards and related 
43.2 	benchmarks in mathematics beginning in the 2020-2021 school year and every ten years 
43.3 	thereafter.
43.4 	(c) The commissioner must implement a review of the academic standards and related 
43.5 	benchmarks in arts beginning in the 2016-2017 school year and every ten years thereafter.
43.6 	(d) The commissioner must implement a review of the academic standards and 
43.7 	related benchmarks in science beginning in the 2017-2018 school year and every ten 
43.8 	years thereafter.
43.9 	(e) The commissioner must implement a review of the academic standards and 
43.10 	related benchmarks in language arts beginning in the 2018-2019 school year and every 
43.11 	ten years thereafter.
43.12 	(f) The commissioner must implement a review of the academic standards and 
43.13 	related benchmarks in social studies beginning in the 2019-2020 school year and every 
43.14 	ten years thereafter.
43.15 	(g) The commissioner must adopt the most recent kindergarten through grade 12 
43.16 	physical education standards developed by the Society of Health and Physical Education 
43.17 	(SHAPE) America or other nationally recognized physical education association and 
43.18 	implement a review of the physical education standards and related benchmarks, consistent 
43.19 	with section 120B.021, subdivision 1, paragraph (c), beginning in the 2020-2021 school 
43.20 	year and every ten years thereafter.
43.21 	(g)(h) School districts and charter schools must revise and align local academic 
43.22 	standards and high school graduation requirements in health, world languages, and career 
43.23 	and technical education to require students to complete the revised standards beginning 
43.24 	in a school year determined by the school district or charter school. School districts and 
43.25 	charter schools must formally establish a periodic review cycle for the academic standards 
43.26 	and related benchmarks in health, world languages, and career and technical education.

43.27 	Sec. 8. Minnesota Statutes 2014, section 120B.11, subdivision 1a, is amended to read:
43.28 		Subd. 1a.Performance measures. Measures to determine school district and 
43.29 	school site progress in striving to create the world's best workforce must include at least:
43.30 	(1) student performance on the National Assessment of Education Progress where 
43.31 	applicable;
43.32 	(2)(1) the size of the academic achievement gap, rigorous course taking under 
43.33 	section 120B.35, subdivision 3, paragraph (c), clause (2), and enrichment experiences by 
43.34 	student subgroup;
43.35 	(3) (2) student performance on the Minnesota Comprehensive Assessments;
44.1 	(4) (3) high school graduation rates; and
44.2 	(5) (4) career and college readiness under section 120B.30, subdivision 1.

44.3 	Sec. 9. Minnesota Statutes 2014, section 120B.11, subdivision 2, is amended to read:
44.4 		Subd. 2.Adopting plans and budgets.  A school board, at a public meeting, shall 
44.5 	adopt a comprehensive, long-term strategic plan to support and improve teaching and 
44.6 	learning that is aligned with creating the world's best workforce and includes:
44.7 	(1) clearly defined district and school site goals and benchmarks for instruction and 
44.8 	student achievement for all student subgroups identified in section 120B.35, subdivision 3, 
44.9 	paragraph (b), clause (2);
44.10 	(2) a process for assessing and evaluating to assess and evaluate each student's 
44.11 	progress toward meeting state and local academic standards, assess and identify students 
44.12 	to participate in gifted and talented programs and accelerate their instruction, and adopt 
44.13 	early-admission procedures consistent with section 120B.15, and identifying the strengths 
44.14 	and weaknesses of instruction in pursuit of student and school success and curriculum 
44.15 	affecting students' progress and growth toward career and college readiness and leading to 
44.16 	the world's best workforce;
44.17 	(3) a system to periodically review and evaluate the effectiveness of all instruction 
44.18 	and curriculum, taking into account strategies and best practices, student outcomes, school 
44.19 	principal evaluations under section 123B.147, subdivision 3, students' access to effective 
44.20 	teachers who are members of populations underrepresented among the licensed teachers 
44.21 	in the district or school and who reflect the diversity of enrolled students under section 
44.22 	120B.35, subdivision 3, paragraph (b), clause (2), and teacher evaluations under section 
44.23 	122A.40, subdivision 8, or 122A.41, subdivision 5;
44.24 	(4) strategies for improving instruction, curriculum, and student achievement, 
44.25 	including the English and, where practicable, the native language development and the 
44.26 	academic achievement of English learners;
44.27 	(5) a process to examine the equitable distribution of teachers and strategies to 
44.28 	ensure low-income and minority children are not taught at higher rates than other children 
44.29 	by inexperienced, ineffective, or out-of-field teachers;
44.30 	(5) (6) education effectiveness practices that integrate high-quality instruction, 
44.31 	rigorous curriculum, technology, and a collaborative professional culture that develops 
44.32 	and supports teacher quality, performance, and effectiveness; and
44.33 	(6) (7) an annual budget for continuing to implement the district plan.

44.34 	Sec. 10. Minnesota Statutes 2014, section 120B.11, subdivision 3, is amended to read:
45.1 		Subd. 3.District advisory committee. Each school board shall establish an 
45.2 	advisory committee to ensure active community participation in all phases of planning 
45.3 	and improving the instruction and curriculum affecting state and district academic 
45.4 	standards, consistent with subdivision 2. A district advisory committee, to the extent 
45.5 	possible, shall reflect the diversity of the district and its school sites, include teachers, 
45.6 	parents, support staff, students, and other community residents, and provide translation 
45.7 	to the extent appropriate and practicable. The district advisory committee shall pursue 
45.8 	community support to accelerate the academic and native literacy and achievement of 
45.9 	English learners with varied needs, from young children to adults, consistent with section 
45.10 	124D.59, subdivisions 2 and 2a. The district may establish site teams as subcommittees 
45.11 	of the district advisory committee under subdivision 4. The district advisory committee 
45.12 	shall recommend to the school board rigorous academic standards, student achievement 
45.13 	goals and measures consistent with subdivision 1a and sections 120B.022, subdivisions 1a 
45.14 	and 1b, and 120B.35, district assessments, means to improve students' equitable access to 
45.15 	effective and more diverse teachers, and program evaluations. School sites may expand 
45.16 	upon district evaluations of instruction, curriculum, assessments, or programs. Whenever 
45.17 	possible, parents and other community residents shall comprise at least two-thirds of 
45.18 	advisory committee members.

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

45.21 	Sec. 11. Minnesota Statutes 2014, section 120B.11, subdivision 4, is amended to read:
45.22 		Subd. 4.Site team. A school may must establish a site team to develop and 
45.23 	implement strategies and education effectiveness practices to improve instruction, 
45.24 	curriculum, cultural competencies, including cultural awareness and cross-cultural 
45.25 	communication, and student achievement at the school site, consistent with subdivision 2.
45.26 	The site team must include an equal number of teachers and administrators and at least 
45.27 	one parent. The site team advises the board and the advisory committee about developing 
45.28 	the annual budget and revising creates an instruction and curriculum improvement plan 
45.29 	that aligns to align curriculum, assessment of student progress, and growth in meeting 
45.30 	state and district academic standards and instruction.

45.31 	Sec. 12. Minnesota Statutes 2014, section 120B.11, subdivision 5, is amended to read:
45.32 		Subd. 5.Report. Consistent with requirements for school performance reports 
45.33 	under section 120B.36, subdivision 1, the school board shall publish a report in the 
45.34 	local newspaper with the largest circulation in the district, by mail, or by electronic 
46.1 	means on the district Web site. The school board shall hold an annual public meeting 
46.2 	to review, and revise where appropriate, student achievement goals, local assessment 
46.3 	outcomes, plans, strategies, and practices for improving curriculum and instruction and 
46.4 	cultural competency, and efforts to equitably distribute diverse, effective, experienced, 
46.5 	and in-field teachers, and to review district success in realizing the previously adopted 
46.6 	student achievement goals and related benchmarks and the improvement plans leading to 
46.7 	the world's best workforce. The school board must transmit an electronic summary of its 
46.8 	report to the commissioner in the form and manner the commissioner determines.

46.9 	Sec. 13. Minnesota Statutes 2014, section 120B.15, is amended to read:
46.10 	120B.15 GIFTED AND TALENTED STUDENTS PROGRAMS.
46.11 	(a) School districts may identify students, locally develop programs addressing 
46.12 	instructional and affective needs, provide staff development, and evaluate programs to 
46.13 	provide gifted and talented students with challenging and appropriate educational programs.
46.14 	(b) School districts must adopt guidelines for assessing and identifying students for 
46.15 	participation in gifted and talented programs consistent with section 120B.11, subdivision 
46.16 	2, clause (2). The guidelines should include the use of:
46.17 	(1) multiple and objective criteria; and
46.18 	(2) assessments and procedures that are valid and reliable, fair, and based on current 
46.19 	theory and research. Assessments and procedures should be sensitive to underrepresented 
46.20 	groups, including, but not limited to, low-income, minority, twice-exceptional, and 
46.21 	English learners.
46.22 	(c) School districts must adopt procedures for the academic acceleration of gifted 
46.23 	and talented students consistent with section 120B.11, subdivision 2, clause (2). These 
46.24 	procedures must include how the district will:
46.25 	(1) assess a student's readiness and motivation for acceleration; and
46.26 	(2) match the level, complexity, and pace of the curriculum to a student to achieve 
46.27 	the best type of academic acceleration for that student.
46.28 	(d) School districts must adopt procedures consistent with section 124D.02, 
46.29 	subdivision 1, for early admission to kindergarten or first grade of gifted and talented 
46.30 	learners consistent with section 120B.11, subdivision 2, clause (2). The procedures must 
46.31 	be sensitive to underrepresented groups.

46.32 	Sec. 14. Minnesota Statutes 2015 Supplement, section 120B.30, subdivision 1, is 
46.33 	amended to read:
47.1 		Subdivision 1.Statewide testing.  (a) The commissioner, with advice from experts 
47.2 	with appropriate technical qualifications and experience and stakeholders, consistent with 
47.3 	subdivision 1a, shall include in the comprehensive assessment system, for each grade 
47.4 	level to be tested, state-constructed tests developed as computer-adaptive reading and 
47.5 	mathematics assessments for students that are aligned with the state's required academic 
47.6 	standards under section 120B.021, include multiple choice questions, and are administered 
47.7 	annually to all students in grades 3 through 8. State-developed high school tests aligned 
47.8 	with the state's required academic standards under section 120B.021 and administered 
47.9 	to all high school students in a subject other than writing must include multiple choice 
47.10 	questions. The commissioner shall establish one or more months during which schools 
47.11 	shall administer the tests to students each school year.
47.12 	(1) Students enrolled in grade 8 through the 2009-2010 school year are eligible 
47.13 	to be assessed under (i) the graduation-required assessment for diploma in reading, 
47.14 	mathematics, or writing under Minnesota Statutes 2012, section 120B.30, subdivision 1, 
47.15 	paragraphs (c), clauses (1) and (2), and (d), (ii) the WorkKeys job skills assessment, (iii) 
47.16 	the Compass college placement test, (iv) the ACT assessment for college admission, (v) a 
47.17 	nationally recognized armed services vocational aptitude test.
47.18 	(2) Students enrolled in grade 8 in the 2010-2011 or 2011-2012 school year are 
47.19 	eligible to be assessed under (i) the graduation-required assessment for diploma in reading, 
47.20 	mathematics, or writing under Minnesota Statutes 2012, section 120B.30, subdivision 
47.21 	1, paragraph (c), clauses (1) and (2), (ii) the WorkKeys job skills assessment, (iii) the 
47.22 	Compass college placement test, (iv) the ACT assessment for college admission, (v) a 
47.23 	nationally recognized armed services vocational aptitude test.
47.24 	(3) For students under clause (1) or (2), a school district may substitute a score from 
47.25 	an alternative, equivalent assessment to satisfy the requirements of this paragraph.
47.26 	(b) The state assessment system must be aligned to the most recent revision of 
47.27 	academic standards as described in section 120B.023 in the following manner:
47.28 	(1) mathematics;
47.29 	(i) grades 3 through 8 beginning in the 2010-2011 school year; and
47.30 	(ii) high school level beginning in the 2013-2014 school year;
47.31 	(2) science; grades 5 and 8 and at the high school level beginning in the 2011-2012 
47.32 	school year; and
47.33 	(3) language arts and reading; grades 3 through 8 and high school level beginning in 
47.34 	the 2012-2013 school year.
47.35 	(c) For students enrolled in grade 8 in the 2012-2013 school year and later, students' 
47.36 	state graduation requirements, based on a longitudinal, systematic approach to student 
48.1 	education and career planning, assessment, instructional support, and evaluation, include 
48.2 	the following:
48.3 	(1) an opportunity to participate on a nationally normed college entrance exam, 
48.4 	in grade 11 or grade 12;
48.5 	(2) achievement and career and college readiness in mathematics, reading, and 
48.6 	writing, consistent with paragraph (j) (k) and to the extent available, to monitor students' 
48.7 	continuous development of and growth in requisite knowledge and skills; analyze 
48.8 	students' progress and performance levels, identifying students' academic strengths and 
48.9 	diagnosing areas where students require curriculum or instructional adjustments, targeted 
48.10 	interventions, or remediation; and, based on analysis of students' progress and performance 
48.11 	data, determine students' learning and instructional needs and the instructional tools and 
48.12 	best practices that support academic rigor for the student; and
48.13 	(3) consistent with this paragraph and section 120B.125, age-appropriate exploration 
48.14 	and planning activities and career assessments to encourage students to identify personally 
48.15 	relevant career interests and aptitudes and help students and their families develop a 
48.16 	regularly reexamined transition plan for postsecondary education or employment without 
48.17 	need for postsecondary remediation.
48.18 	Based on appropriate state guidelines, students with an individualized education program 
48.19 	may satisfy state graduation requirements by achieving an individual score on the 
48.20 	state-identified alternative assessments.
48.21 	(d) Expectations of schools, districts, and the state for career or college readiness 
48.22 	under this subdivision must be comparable in rigor, clarity of purpose, and rates of 
48.23 	student completion. 
48.24 	A student under paragraph (c), clause (2), must receive targeted, relevant, 
48.25 	academically rigorous, and resourced instruction, which may include a targeted instruction 
48.26 	and intervention plan focused on improving the student's knowledge and skills in core 
48.27 	subjects so that the student has a reasonable chance to succeed in a career or college 
48.28 	without need for postsecondary remediation. Consistent with sections 120B.13, 124D.09, 
48.29 	124D.091, 124D.49, and related sections, an enrolling school or district must actively 
48.30 	encourage a student in grade 11 or 12 who is identified as academically ready for a career 
48.31 	or college to participate in courses and programs awarding college credit to high school 
48.32 	students. Students are not required to achieve a specified score or level of proficiency on 
48.33 	an assessment under this subdivision to graduate from high school.
48.34 	(e) Though not a high school graduation requirement, students are encouraged to 
48.35 	participate in a nationally recognized college entrance exam. With funding provided by 
48.36 	the To the extent state funding for college entrance exam fees is available, a district must 
49.1 	pay the cost, one time, for an interested student in grade 11 or 12 to take a nationally 
49.2 	recognized college entrance exam before graduating. A student must be able to take the 
49.3 	exam under this paragraph at the student's high school during the school day and at any 
49.4 	one of the multiple exam administrations available to students in the district.
49.5 	(f) The commissioner and the chancellor of the Minnesota State Colleges and 
49.6 	Universities must collaborate in aligning instruction and assessments for adult basic 
49.7 	education students and English learners to provide the students with diagnostic information 
49.8 	about any targeted interventions, accommodations, modifications, and supports they 
49.9 	need so that assessments and other performance measures are accessible to them and 
49.10 	they may seek postsecondary education or employment without need for postsecondary 
49.11 	remediation. When administering formative or summative assessments used to measure 
49.12 	the academic progress, including the oral academic development, of English learners 
49.13 	and inform their instruction, schools must ensure that the assessments are accessible to 
49.14 	the students and students have the modifications and supports they need to sufficiently 
49.15 	understand the assessments.
49.16 	(g) Districts and schools, on an annual basis, must use career exploration elements 
49.17 	to help students, beginning no later than grade 9, and their families explore and plan 
49.18 	for postsecondary education or careers based on the students' interests, aptitudes, and 
49.19 	aspirations. Districts and schools must use timely regional labor market information and 
49.20 	partnerships, among other resources, to help students and their families successfully 
49.21 	develop, pursue, review, and revise an individualized plan for postsecondary education or a 
49.22 	career. This process must help increase students' engagement in and connection to school, 
49.23 	improve students' knowledge and skills, and deepen students' understanding of career 
49.24 	pathways as a sequence of academic and career courses that lead to an industry-recognized 
49.25 	credential, an associate's degree, or a bachelor's degree and are available to all students, 
49.26 	whatever their interests and career goals.
49.27 	(h) A student who demonstrates attainment of required state academic standards, 
49.28 	which include career and college readiness benchmarks, on high school assessments 
49.29 	under subdivision 1a is academically ready for a career or college and is encouraged to 
49.30 	participate in courses awarding college credit to high school students. Such courses and 
49.31 	programs may include sequential courses of study within broad career areas and technical 
49.32 	skill assessments that extend beyond course grades.
49.33 	(i) As appropriate, students through grade 12 must continue to participate in targeted 
49.34 	instruction, intervention, or remediation and be encouraged to participate in courses 
49.35 	awarding college credit to high school students.
50.1 	(j) In developing, supporting, and improving students' academic readiness for a 
50.2 	career or college, schools, districts, and the state must have a continuum of empirically 
50.3 	derived, clearly defined benchmarks focused on students' attainment of knowledge and 
50.4 	skills so that students, their parents, and teachers know how well students must perform to 
50.5 	have a reasonable chance to succeed in a career or college without need for postsecondary 
50.6 	remediation. The commissioner, in consultation with local school officials and educators, 
50.7 	and Minnesota's public postsecondary institutions must ensure that the foundational 
50.8 	knowledge and skills for students' successful performance in postsecondary employment 
50.9 	or education and an articulated series of possible targeted interventions are clearly 
50.10 	identified and satisfy Minnesota's postsecondary admissions requirements.
50.11 	(k) For students in grade 8 in the 2012-2013 school year and later, a school, district, 
50.12 	or charter school must record on the high school transcript a student's progress toward 
50.13 	career and college readiness, and for other students as soon as practicable.
50.14 	(l) The school board granting students their diplomas may formally decide to include 
50.15 	a notation of high achievement on the high school diplomas of those graduating seniors 
50.16 	who, according to established school board criteria, demonstrate exemplary academic 
50.17 	achievement during high school.
50.18 	(m) The 3rd through 8th grade computer-adaptive assessment results and high 
50.19 	school test results shall be available to districts for diagnostic purposes affecting student 
50.20 	learning and district instruction and curriculum, and for establishing educational 
50.21 	accountability. The commissioner must establish empirically derived benchmarks on 
50.22 	adaptive assessments in grades 3 through 8. The commissioner and the chancellor of the 
50.23 	Minnesota State Colleges and Universities must establish empirically derived benchmarks 
50.24 	on the high school tests that reveal a trajectory toward career and college readiness. The 
50.25 	chancellor of the Minnesota State Colleges and Universities must review and confirm 
50.26 	the benchmarks show that students are able to successfully complete credit-bearing 
50.27 	coursework at a Minnesota state college or university, consistent with paragraph (p). The 
50.28 	commissioner must disseminate to the public the computer-adaptive assessments and high 
50.29 	school test results upon receiving those results.
50.30 	(n) The grades 3 through 8 computer-adaptive assessments and high school tests 
50.31 	must be aligned with state academic standards. The commissioner shall determine the 
50.32 	testing process and the order of administration. The statewide results shall be aggregated 
50.33 	at the site and district level, consistent with subdivision 1a.
50.34 	(o) The commissioner shall include the following components in the statewide 
50.35 	public reporting system:
51.1 	(1) uniform statewide computer-adaptive assessments of all students in grades 3 
51.2 	through 8 and testing at the high school levels that provides appropriate, technically sound 
51.3 	accommodations or alternate assessments;
51.4 	(2) educational indicators that can be aggregated and compared across school 
51.5 	districts and across time on a statewide basis, including average daily attendance, high 
51.6 	school graduation rates, and high school drop-out rates by age and grade level;
51.7 	(3) state results on the American College Test; and
51.8 	(4) state results from participation in the National Assessment of Educational 
51.9 	Progress so that the state can benchmark its performance against the nation and other 
51.10 	states, and, where possible, against other countries, and contribute to the national effort 
51.11 	to monitor achievement.
51.12 	(p) For purposes of statewide accountability, "career and college ready" means a 
51.13 	high school graduate has the knowledge, skills, and competencies to successfully pursue a 
51.14 	career pathway, including postsecondary credit leading to a degree, diploma, certificate, or 
51.15 	industry-recognized credential and employment. Students who are career and college ready 
51.16 	are able to successfully complete credit-bearing coursework at a two- or four-year college 
51.17 	or university or other credit-bearing postsecondary program without need for remediation.
51.18 	(q) For purposes of statewide accountability, "cultural competence," "cultural 
51.19 	competency," or "culturally competent" means the ability and will to interact effectively 
51.20 	with people of different cultures, native languages, and socioeconomic backgrounds.

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

51.23 	Sec. 15. Minnesota Statutes 2015 Supplement, section 120B.30, subdivision 1a, 
51.24 	is amended to read:
51.25 		Subd. 1a.Statewide and local assessments; results. (a) For purposes of this 
51.26 	section, the following definitions have the meanings given them.
51.27 	(1) "Computer-adaptive assessments" means fully adaptive assessments.
51.28 	(2) "Fully adaptive assessments" include test items that are on-grade level and items 
51.29 	that may be above or below a student's grade level.
51.30 	(3) "On-grade level" test items contain subject area content that is aligned to state 
51.31 	academic standards for the grade level of the student taking the assessment.
51.32 	(4) "Above-grade level" test items contain subject area content that is above the 
51.33 	grade level of the student taking the assessment and is considered aligned with state 
51.34 	academic standards to the extent it is aligned with content represented in state academic 
51.35 	standards above the grade level of the student taking the assessment. Notwithstanding 
52.1 	the student's grade level, administering above-grade level test items to a student does not 
52.2 	violate the requirement that state assessments must be aligned with state standards.
52.3 	(5) "Below-grade level" test items contain subject area content that is below the 
52.4 	grade level of the student taking the test and is considered aligned with state academic 
52.5 	standards to the extent it is aligned with content represented in state academic standards 
52.6 	below the student's current grade level. Notwithstanding the student's grade level, 
52.7 	administering below-grade level test items to a student does not violate the requirement 
52.8 	that state assessments must be aligned with state standards.
52.9 	(b) The commissioner must use fully adaptive mathematics and reading assessments 
52.10 	for grades 3 through 8.
52.11 	(c) For purposes of conforming with existing federal educational accountability 
52.12 	requirements, the commissioner must develop and implement computer-adaptive reading 
52.13 	and mathematics assessments for grades 3 through 8, state-developed high school reading 
52.14 	and mathematics tests aligned with state academic standards, a high school writing 
52.15 	test aligned with state standards when it becomes available, and science assessments 
52.16 	under clause (2) that districts and sites must use to monitor student growth toward 
52.17 	achieving those standards. The commissioner must not develop statewide assessments for 
52.18 	academic standards in social studies, except a civics test consistent with section 120B.02, 
52.19 	subdivision 3, health and physical education, and the arts. The commissioner must require:
52.20 	(1) annual computer-adaptive reading and mathematics assessments in grades 3 
52.21 	through 8, and high school reading, writing, and mathematics tests; and
52.22 	(2) annual science assessments in one grade in the grades 3 through 5 span, the 
52.23 	grades 6 through 8 span, and a life sciences assessment in the grades 9 through 12 span, 
52.24 	and the commissioner must not require students to achieve a passing score on high school 
52.25 	science assessments as a condition of receiving a high school diploma.
52.26 	(d) The commissioner must ensure that for annual computer-adaptive assessments:
52.27 	(1) individual student performance data and achievement reports are available 
52.28 	within three school days of when students take an assessment except in a year when an 
52.29 	assessment reflects new performance standards;
52.30 	(2) growth information is available for each student from the student's first 
52.31 	assessment to each proximate assessment using a constant measurement scale;
52.32 	(3) parents, teachers, and school administrators are able to use elementary and 
52.33 	middle school student performance data to project students' secondary and postsecondary 
52.34 	achievement; and
52.35 	(4) useful diagnostic information about areas of students' academic strengths and 
52.36 	weaknesses is available to teachers and school administrators for improving student 
53.1 	instruction and indicating the specific skills and concepts that should be introduced and 
53.2 	developed for students at given performance levels, organized by strands within subject 
53.3 	areas, and aligned to state academic standards.
53.4 	(e) The commissioner must ensure that all state tests administered to elementary and 
53.5 	secondary students measure students' academic knowledge and skills and not students' 
53.6 	values, attitudes, and beliefs.
53.7 	(f) Reporting of state assessment results must:
53.8 	(1) provide timely, useful, and understandable information on the performance of 
53.9 	individual students, schools, school districts, and the state;
53.10 	(2) include a growth indicator of student achievement; and
53.11 	(3) determine whether students have met the state's academic standards.
53.12 	(g) Consistent with applicable federal law, the commissioner must include 
53.13 	appropriate, technically sound accommodations or alternative assessments for the very 
53.14 	few students with disabilities for whom statewide assessments are inappropriate and 
53.15 	for English learners.
53.16 	(h) A school, school district, and charter school must administer statewide 
53.17 	assessments under this section, as the assessments become available, to evaluate student 
53.18 	progress toward career and college readiness in the context of the state's academic 
53.19 	standards. A school, school district, or charter school may use a student's performance 
53.20 	on a statewide assessment as one of multiple criteria to determine grade promotion or 
53.21 	retention. A school, school district, or charter school may use a high school student's 
53.22 	performance on a statewide assessment as a percentage of the student's final grade in a 
53.23 	course, or place a student's assessment score on the student's transcript.

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

53.25 	Sec. 16. Minnesota Statutes 2015 Supplement, section 120B.301, is amended to read:
53.26 	120B.301 LIMITS ON LOCAL TESTING.
53.27 	(a) For students in grades 1 through 6, the cumulative total amount of time spent 
53.28 	taking locally adopted districtwide or schoolwide assessments must not exceed ten hours 
53.29 	per school year. For students in grades 7 through 12, the cumulative total amount of time 
53.30 	spent taking locally adopted districtwide or schoolwide assessments must not exceed 11 
53.31 	hours per school year. For purposes of this paragraph, International Baccalaureate and 
53.32 	Advanced Placement exams are not considered locally adopted assessments.
53.33 	(b) A district or charter school is exempt from the requirements of paragraph (a), 
53.34 	if the district or charter school, in consultation with the exclusive representative of the 
54.1 	teachers or other teachers if there is no exclusive representative of the teachers, decides 
54.2 	to exceed a time limit in paragraph (a) and includes in the report required under section 
54.3 	120B.11, subdivision 5.
54.4 	(c) A district or charter school, before the first day of each school year, must publish 
54.5 	on its Web site a comprehensive calendar of standardized tests to be administered in the 
54.6 	district or charter school during that school year. The calendar must provide the rationale 
54.7 	for administering each assessment and indicate whether the assessment is a local option or 
54.8 	required by state or federal law.

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

54.11 	Sec. 17. [120B.304] SCHOOL DISTRICT ASSESSMENT COMMITTEE.
54.12 	(a) A school district that does not have an agreement between the school board and 
54.13 	the exclusive representative of the teachers about selecting assessments must establish a 
54.14 	district assessment committee to advise the school board on administering standardized 
54.15 	assessments to students in addition to the assessments required under section 120B.30 and 
54.16 	applicable federal law unless paragraph (b) applies. The committee must include an equal 
54.17 	number of teachers and administrators and at least one parent of a student in the district 
54.18 	and may include at least one representative from each school site in the district.
54.19 	(b) A school district may seek this assessment advice from the district advisory 
54.20 	committee under section 120B.11, subdivision 3, instead of establishing a committee 
54.21 	under this section.

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

54.24 	Sec. 18. Minnesota Statutes 2015 Supplement, section 120B.31, subdivision 4, is 
54.25 	amended to read:
54.26 		Subd. 4. Student performance data. In developing policies and assessment 
54.27 	processes to hold schools and districts accountable for high levels of academic standards 
54.28 	under section 120B.021, the commissioner shall aggregate and disaggregate student 
54.29 	data over time to report summary student performance and growth levels and, under 
54.30 	section 120B.11, subdivision 2, clause (2), student learning and outcome data measured 
54.31 	at the school, school district, and statewide level. When collecting and reporting the 
54.32 	performance data, The commissioner shall use the student categories identified under the 
54.33 	federal Elementary and Secondary Education Act, as most recently reauthorized, and 
55.1 	student categories of homelessness, ethnicity, race, home language, immigrant, refugee 
55.2 	status, English language learners under section 124D.59, free or reduced-price lunch, 
55.3 	and other categories designated by federal law to organize and report the data so that 
55.4 	state and local policy makers can understand the educational implications of changes in 
55.5 	districts' demographic profiles over time, including student homelessness, as data are 
55.6 	available, among other demographic factors. Any report the commissioner disseminates 
55.7 	containing summary data on student performance must integrate student performance and 
55.8 	the demographic factors that strongly correlate with that performance.

55.9 	EFFECTIVE DATE. This section is effective for the 2017-2018 school year and 
55.10 	later.

55.11 	Sec. 19. Minnesota Statutes 2014, section 120B.31, is amended by adding a 
55.12 	subdivision to read:
55.13 		Subd. 4a.Student participation. The commissioner shall create and publish a form 
55.14 	for parents and guardians to complete if they refuse to have their student participate in 
55.15 	state or locally required standardized testing. The form must state why there are state 
55.16 	academic standards, indicate which tests are aligned with state standards, and what 
55.17 	consequences, if any, the school or student may face if a student does not participate in 
55.18 	state or locally required standardized testing. This form must ask parents to indicate a 
55.19 	reason for their refusal.

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

55.22 	Sec. 20. Minnesota Statutes 2014, section 120B.31, is amended by adding a 
55.23 	subdivision to read:
55.24 		Subd. 6.Retaliation prohibited. An employee who discloses information to the 
55.25 	commissioner or a parent or guardian about service disruptions or technical interruptions 
55.26 	related to administering assessments under this section is protected under section 181.932, 
55.27 	governing disclosure of information by employees.

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

55.30 	Sec. 21. Minnesota Statutes 2014, section 120B.31, is amended by adding a 
55.31 	subdivision to read:
56.1 		Subd. 7.Shared settlements and reimbursements. If a state testing contractor fails 
56.2 	to perform or otherwise violates a state testing contract, any payment the commissioner 
56.3 	receives from the testing contractor for failure to perform or other contract violation or 
56.4 	other contractual settlement must be distributed to affected schools. The commissioner 
56.5 	must allocate to each affected school that portion of the contractor's payment equal 
56.6 	to the number of pupils enrolled in that school compared to the total number of pupils 
56.7 	enrolled in all affected schools.

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

56.10 	Sec. 22. Minnesota Statutes 2014, section 120B.35, is amended to read:
56.11 	120B.35 STUDENT ACADEMIC ACHIEVEMENT AND GROWTH.
56.12 		Subdivision 1.School and Student indicators of growth and achievement.
 56.13 	The commissioner must develop and implement a system for measuring and reporting 
56.14 	academic achievement and individual student growth, consistent with the statewide 
56.15 	educational accountability and reporting system. The system components must measure 
56.16 	and separately report the adequate yearly progress federal expectations of schools and 
56.17 	the growth of individual students: students' current achievement in schools under 
56.18 	subdivision 2; and individual students' educational growth over time under subdivision 
56.19 	3. The system also must include statewide measures of student academic growth that 
56.20 	identify schools with high levels of growth, and also schools with low levels of growth 
56.21 	that need improvement. When determining a school's effect, The data must include 
56.22 	both statewide measures of student achievement and, to the extent annual tests are 
56.23 	administered, indicators of achievement growth that take into account a student's prior 
56.24 	achievement. Indicators of achievement and prior achievement must be based on highly 
56.25 	reliable statewide or districtwide assessments. Indicators that take into account a student's 
56.26 	prior achievement must not be used to disregard a school's low achievement or to exclude 
56.27 	a school from a program to improve low achievement levels.
56.28 		Subd. 2.Federal Expectations for student academic achievement. (a) Each 
56.29 	school year, a school district must determine if the student achievement levels at each 
56.30 	school site meet federal expectations. If student achievement levels at a school site do 
56.31 	not meet federal expectations and the site has not made adequate yearly progress for two 
56.32 	consecutive school years, beginning with the 2001-2002 school year, the district must 
56.33 	work with the school site to adopt a plan to raise student achievement levels to meet 
57.1 	federal expectations. The commissioner of education shall establish student academic 
57.2 	achievement levels to comply with this paragraph.
57.3 	(b) School sites identified as not meeting federal expectations must develop 
57.4 	continuous improvement plans in order to meet federal expectations for student academic 
57.5 	achievement. The department, at a district's request, must assist the district and the school 
57.6 	site sites in developing a plan to improve student achievement. The plan must include 
57.7 	parental involvement components.
57.8 	(c) The commissioner must:
57.9 	(1) assist school sites and districts identified as not meeting federal expectations; and
57.10 	(2) provide technical assistance to schools that integrate student achievement 
57.11 	measures into the school continuous improvement plan.
57.12 	(d) The commissioner shall establish and maintain a continuous improvement Web 
57.13 	site designed to make aggregated and disaggregated student growth and, under section 
57.14 	120B.11, subdivision 2, clause (2), student learning and outcome data on every school 
57.15 	and district available to parents, teachers, administrators, community members, and the 
57.16 	general public, consistent with this section.
57.17 		Subd. 3.State growth target; other state measures. (a)(1) The state's educational 
57.18 	assessment system measuring individual students' educational growth is based on 
57.19 	indicators of achievement growth that show an individual student's prior achievement. 
57.20 	Indicators of achievement and prior achievement must be based on highly reliable 
57.21 	statewide or districtwide assessments.
57.22 	(2) For purposes of paragraphs (b), (c), and (d), the commissioner must analyze and 
57.23 	report separate categories of information using the student categories identified under the 
57.24 	federal Elementary and Secondary Education Act, as most recently reauthorized and, in 
57.25 	addition to the Karen community, other student categories as determined by the total 
57.26 	Minnesota population at or above the 1,000-person threshold based on the most recent 
57.27 	decennial census, including ethnicity; race; refugee status; English language learners 
57.28 	under section 124D.59; home language; free or reduced-price lunch; immigrant; and all 
57.29 	students enrolled in a Minnesota public school who are currently or were previously in 
57.30 	foster care, except that such disaggregation and cross tabulation is not required if the 
57.31 	number of students in a category is insufficient to yield statistically reliable information or 
57.32 	the results would reveal personally identifiable information about an individual student.
57.33 	(b) The commissioner, in consultation with a stakeholder group that includes 
57.34 	assessment and evaluation directors, district staff, experts in culturally responsive teaching, 
57.35 	and researchers, must implement a model that uses a value-added growth indicator and 
57.36 	includes criteria for identifying schools and school districts that demonstrate medium and 
58.1 	high growth under section 120B.299, subdivisions 8 and 9, and may recommend other 
58.2 	value-added measures under section 120B.299, subdivision 3. The model may be used 
58.3 	to advance educators' professional development and replicate programs that succeed in 
58.4 	meeting students' diverse learning needs. Data on individual teachers generated under the 
58.5 	model are personnel data under section 13.43. The model must allow users to:
58.6 	(1) report student growth consistent with this paragraph; and
58.7 	(2) for all student categories, report and compare aggregated and disaggregated state 
58.8 	student growth and, under section 120B.11, subdivision 2, clause (2), student learning 
58.9 	and outcome data using the nine student categories identified under the federal 2001 No 
58.10 	Child Left Behind Act and two student gender categories of male and female, respectively, 
58.11 	following appropriate reporting practices to protect nonpublic student data Elementary 
58.12 	and Secondary Education Act, as most recently reauthorized, and other student categories 
58.13 	under paragraph (a), clause (2).
58.14 	The commissioner must report measures of student growth and, under section 
58.15 	120B.11, subdivision 2, clause (2), student learning and outcome data, consistent with 
58.16 	this paragraph, including the English language development, academic progress, and oral 
58.17 	academic development of English learners and their native language development if the 
58.18 	native language is used as a language of instruction, and include data on all pupils enrolled 
58.19 	in a Minnesota public school course or program who are currently or were previously 
58.20 	counted as an English learner under section 124D.59.
58.21 	(c) When reporting student performance under section 120B.36, subdivision 1, the 
58.22 	commissioner annually, beginning July 1, 2011, must report two core measures indicating 
58.23 	the extent to which current high school graduates are being prepared for postsecondary 
58.24 	academic and career opportunities:
58.25 	(1) a preparation measure indicating the number and percentage of high school 
58.26 	graduates in the most recent school year who completed course work important to 
58.27 	preparing them for postsecondary academic and career opportunities, consistent with 
58.28 	the core academic subjects required for admission to Minnesota's public colleges and 
58.29 	universities as determined by the Office of Higher Education under chapter 136A; and
58.30 	(2) a rigorous coursework measure indicating the number and percentage of high 
58.31 	school graduates in the most recent school year who successfully completed one or more 
58.32 	college-level advanced placement, international baccalaureate, postsecondary enrollment 
58.33 	options including concurrent enrollment, other rigorous courses of study under section 
58.34 	120B.021, subdivision 1a, or industry certification courses or programs.
58.35 	When reporting the core measures under clauses (1) and (2), the commissioner must also 
58.36 	analyze and report separate categories of information using the nine student categories 
59.1 	identified under the federal 2001 No Child Left Behind Act and two student gender 
59.2 	categories of male and female, respectively, following appropriate reporting practices to 
59.3 	protect nonpublic student data Elementary and Secondary Education Act, as most recently 
59.4 	reauthorized, and other student categories under paragraph (a), clause (2).
59.5 	(d) When reporting student performance under section 120B.36, subdivision 1, the 
59.6 	commissioner annually, beginning July 1, 2014, must report summary data on school 
59.7 	safety and students' engagement and connection at school, consistent with the student 
59.8 	categories identified under paragraph (a), clause (2). The summary data under this 
59.9 	paragraph are separate from and must not be used for any purpose related to measuring 
59.10 	or evaluating the performance of classroom teachers. The commissioner, in consultation 
59.11 	with qualified experts on student engagement and connection and classroom teachers, 
59.12 	must identify highly reliable variables that generate summary data under this paragraph. 
59.13 	The summary data may be used at school, district, and state levels only. Any data on 
59.14 	individuals received, collected, or created that are used to generate the summary data 
59.15 	under this paragraph are nonpublic data under section 13.02, subdivision 9.
59.16 	(e) For purposes of statewide educational accountability, the commissioner must 
59.17 	identify and report measures that demonstrate the success of learning year program 
59.18 	providers under sections 123A.05 and 124D.68, among other such providers, in improving 
59.19 	students' graduation outcomes. The commissioner, beginning July 1, 2015, must annually 
59.20 	report summary data on:
59.21 	(1) the four- and six-year graduation rates of students under this paragraph;
59.22 	(2) the percent of students under this paragraph whose progress and performance 
59.23 	levels are meeting career and college readiness benchmarks under section 120B.30, 
59.24 	subdivision 1; and
59.25 	(3) the success that learning year program providers experience in:
59.26 	(i) identifying at-risk and off-track student populations by grade;
59.27 	(ii) providing successful prevention and intervention strategies for at-risk students;
59.28 	(iii) providing successful recuperative and recovery or reenrollment strategies for 
59.29 	off-track students; and
59.30 	(iv) improving the graduation outcomes of at-risk and off-track students.
59.31 	The commissioner may include in the annual report summary data on other education 
59.32 	providers serving a majority of students eligible to participate in a learning year program.
59.33 	(f) The commissioner, in consultation with recognized experts with knowledge and 
59.34 	experience in assessing the language proficiency and academic performance of all English 
59.35 	learners enrolled in a Minnesota public school course or program who are currently or were 
59.36 	previously counted as an English learner under section 124D.59, must identify and report 
60.1 	appropriate and effective measures to improve current categories of language difficulty and 
60.2 	assessments, and monitor and report data on students' English proficiency levels, program 
60.3 	placement, and academic language development, including oral academic language.
60.4 		Subd. 4.Improving schools. Consistent with the requirements of this section, 
60.5 	beginning June 20, 2012, the commissioner of education must annually report to the 
60.6 	public and the legislature best practices implemented in those schools that demonstrate 
60.7 	high growth compared to the state growth target are identified as high performing under 
60.8 	federal expectations.
60.9 		Subd. 5.Improving graduation rates for students with emotional or behavioral 
60.10 	disorders. (a) A district must develop strategies in conjunction with parents of students 
60.11 	with emotional or behavioral disorders and the county board responsible for implementing 
60.12 	sections 245.487 to 245.4889 to keep students with emotional or behavioral disorders in 
60.13 	school, when the district has a drop-out rate for students with an emotional or behavioral 
60.14 	disorder in grades 9 through 12 exceeding 25 percent.
60.15 	(b) A district must develop a plan in conjunction with parents of students with 
60.16 	emotional or behavioral disorders and the local mental health authority to increase the 
60.17 	graduation rates of students with emotional or behavioral disorders. A district with a 
60.18 	drop-out rate for children with an emotional or behavioral disturbance in grades 9 through 
60.19 	12 that is in the top 25 percent of all districts shall submit a plan for review and oversight 
60.20 	to the commissioner.

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

60.23 	Sec. 23. Minnesota Statutes 2014, section 120B.36, as amended by Laws 2015, First 
60.24 	Special Session chapter 3, article 2, section 8, is amended to read:
60.25 	120B.36 SCHOOL ACCOUNTABILITY; APPEALS PROCESS.
60.26 		Subdivision 1.School performance reports. (a) The commissioner shall report 
60.27 	student academic performance data under section 120B.35, subdivision subdivisions
60.28 	2 and 3; the percentages of students showing low, medium, and high growth under 
60.29 	section 120B.35, subdivision 3, paragraph (b); school safety and student engagement and 
60.30 	connection under section 120B.35, subdivision 3, paragraph (d); rigorous coursework 
60.31 	under section 120B.35, subdivision 3, paragraph (c); the percentage of students under 
60.32 	section 120B.35, subdivision 3, paragraph (b), clause (2), whose progress and performance 
60.33 	levels are meeting career and college readiness benchmarks under sections 120B.30, 
60.34 	subdivision 1, and 120B.35, subdivision 3, paragraph (e); longitudinal data on the progress 
61.1 	of eligible districts in reducing disparities in students' academic achievement and realizing 
61.2 	racial and economic integration under section 124D.861; the acquisition of English, and 
61.3 	where practicable, native language academic literacy, including oral academic language, 
61.4 	and the academic progress of all English learners under section 124D.59, subdivisions 
61.5 	2 and 2a enrolled in a Minnesota public school course or program who are currently or 
61.6 	were previously counted as English learners under section 124D.59; the total number of 
61.7 	students by grade who correctly answered at least 30 of 50 civics test questions under 
61.8 	section 120B.02, subdivision 3; two separate student-to-teacher ratios that clearly indicate 
61.9 	the definition of teacher consistent with sections 122A.06 and 122A.15 for purposes 
61.10 	of determining these ratios; staff characteristics excluding salaries; student enrollment 
61.11 	demographics; foster care status, including all students enrolled in a Minnesota public 
61.12 	school course or program who are currently or were previously in foster care, student 
61.13 	homelessness, and district mobility; and extracurricular activities. The report also must 
61.14 	indicate a school's adequate yearly progress status under applicable federal law, and must 
61.15 	not set any designations applicable to high- and low-performing schools due solely to 
61.16 	adequate yearly progress status.
61.17 	(b) The commissioner shall develop, annually update, and post on the department 
61.18 	Web site school performance reports.
61.19 	(c) The commissioner must make available performance reports by the beginning 
61.20 	of each school year.
61.21 	(d) A school or district may appeal its adequate yearly progress status in writing 
61.22 	to the commissioner within 30 days of receiving the notice of its status results in a form 
61.23 	and manner determined by the commissioner and consistent with federal law. The 
61.24 	commissioner's decision to uphold or deny an appeal is final.
61.25 	(e) School performance data are nonpublic data under section 13.02, subdivision 9, 
61.26 	until the commissioner publicly releases the data. The commissioner shall annually post 
61.27 	school performance reports to the department's public Web site no later than September 1, 
61.28 	except that in years when the reports reflect new performance standards, the commissioner 
61.29 	shall post the school performance reports no later than October 1.
61.30 		Subd. 2.Adequate yearly Student progress and other data. (a) All data the 
61.31 	department receives, collects, or creates under section 120B.11, governing the world's 
61.32 	best workforce or to determine adequate yearly progress status under Public Law 107-110, 
61.33 	section 1116 federal expectations under the most recently reauthorized Elementary and 
61.34 	Secondary Education Act, set state growth targets, and determine student growth, learning, 
61.35 	and outcomes under section 120B.35 are nonpublic data under section 13.02, subdivision 
61.36 	9, until the commissioner publicly releases the data.
62.1 	(b) Districts must provide parents sufficiently detailed summary data to permit 
62.2 	parents to appeal under Public Law 107-110, section 1116(b)(2) the most recently 
62.3 	reauthorized federal Elementary and Secondary Education Act. The commissioner shall 
62.4 	annually post federal adequate yearly progress data expectations and state student growth, 
62.5 	learning, and outcome data to the department's public Web site no later than September 1, 
62.6 	except that in years when adequate yearly progress reflects data or federal expectations 
62.7 	reflect new performance standards, the commissioner shall post federal adequate yearly 
62.8 	progress data on federal expectations and state student growth data no later than October 1.

62.9 	EFFECTIVE DATE. This section is effective for the 2016-2017 school year and 
62.10 	later, except the requirement to report civics test data is effective for the 2018-2019 school 
62.11 	year and later.

62.12 	Sec. 24. [121A.3951] STUDENT SUPPORT SERVICES PERSONNEL GRANT 
62.13 	PROGRAM.
62.14 		Subdivision 1.Definitions. For the purposes of sections 121A.395 to 121A.3952, 
62.15 	the following terms have the meanings given them:
62.16 	(1) "student support services personnel" includes individuals licensed as a 
62.17 	school counselor, school psychologist, school social worker, school nurse, or chemical 
62.18 	dependency counselor in Minnesota; and
62.19 	(2) "new position" means a full-time or part-time student support services personnel 
62.20 	position not under contract by a school at the start of the school year preceding the first 
62.21 	year of funding under this section.
62.22 		Subd. 2.Purpose. The student support services personnel grant program must:
62.23 	(1) address shortages of student support services personnel within Minnesota schools;
62.24 	(2) decrease caseloads for existing student support services personnel to ensure 
62.25 	effective services;
62.26 	(3) ensure K-12 students receive effective academic guidance and integrated and 
62.27 	comprehensive services to improve student and school outcomes and students' career and 
62.28 	college readiness;
62.29 	(4) ensure student support services personnel serve within the scope and practice of 
62.30 	their training and licensure;
62.31 	(5) fully integrate learning supports, instruction, and school management within a 
62.32 	comprehensive approach that facilitates interdisciplinary collaboration; and
62.33 	(6) improve school safety and school climate to support academic success and 
62.34 	career and college readiness.
63.1 		Subd. 3.Grant eligibility and application. (a) To the extent funds are available, a 
63.2 	school district, charter school, intermediate school district, or other cooperative unit may 
63.3 	apply for a six-year grant under this section.
63.4 	(b) The commissioner of education shall specify the form and manner of the grant 
63.5 	application. In awarding grants, the commissioner must give priority to schools where 
63.6 	student support services personnel positions do not currently exist. The commissioner also 
63.7 	must consider at least the following when awarding grants:
63.8 	(1) existing student support services personnel caseloads;
63.9 	(2) school demographics;
63.10 	(3) Title 1 revenue;
63.11 	(4) Minnesota student survey data;
63.12 	(5) graduation rates; and
63.13 	(6) postsecondary completion rates.
63.14 		Subd. 4.Allowed uses; match requirements. Grant recipients must use the grant 
63.15 	under this section to hire a new position. A school that receives a grant must match the 
63.16 	grant with local funds in each year of the grant. In each of the first four years of the grant, 
63.17 	the local match equals $1 for every $1 awarded in the same year. In years five and six 
63.18 	of the grant, the local match equals $3 for every $1 awarded in the same year. The local 
63.19 	match may not include federal reimbursements attributable to the new position.
63.20 		Subd. 5.Report required.  By February 1 following any fiscal year in which a 
63.21 	recipient receives a grant, it must submit a written report to the commissioner indicating 
63.22 	how the new positions affected two or more of the following measures:
63.23 	(1) school climate;
63.24 	(2) attendance rates;
63.25 	(3) academic achievement;
63.26 	(4) career and college readiness; and
63.27 	(5) postsecondary completion rates.
63.28 		Subd. 6.Appropriation. Any amounts appropriated from the general fund to the 
63.29 	commissioner of education for support services grants under this section must be used 
63.30 	for the purposes of this section. Notwithstanding section 16A.28, any appropriation for 
63.31 	this purpose is available until June 30, 2024. Any balance remaining after June 30, 2024, 
63.32 	cancels to the general fund.
63.33 		Subd. 7.Report. By February 15, 2017, the commissioner must report to the 
63.34 	education committees of the legislature about:
63.35 	(1) the expected use of this program by school districts;
63.36 	(2) the estimated annual funding necessary to implement this section; and
64.1 	(3) the potential unfunded costs imposed on school districts by this section.

64.2 	EFFECTIVE DATE. This section is effective for fiscal year 2018 and later.

64.3 	Sec. 25. [121A.3952] STUDENT SUPPORT SERVICES PERSONNEL 
64.4 	TRAINING GRANTS.
64.5 		Subdivision 1.Purpose. Student support services personnel training grants are to 
64.6 	increase the number of postsecondary graduates qualified to serve as student support 
64.7 	services personnel in Minnesota schools.
64.8 		Subd. 2.Eligible institutions; application. (a) Any Minnesota institution of higher 
64.9 	education offering a preparation program that meets the requirements for licensure of 
64.10 	student support services personnel is eligible to apply for a six-year grant in the form 
64.11 	and manner specified by the commissioner.
64.12 	(b) The commissioner of education shall develop criteria for awarding grants 
64.13 	consistent with this section.
64.14 		Subd. 3.Allowed uses; match requirements. An institution that receives a grant 
64.15 	under this section must use the grant to hire staff as necessary to meet the purposes of 
64.16 	this section, and must match the grant with local funds in each year of the grant. In each 
64.17 	of the first four years of the grant, the local match equals $1 for every $1 awarded in 
64.18 	the same year. In years five and six of the grant, the local match equals $3 for every $1 
64.19 	awarded in the same year. A recipient must use the grant to supplement, not supplant, 
64.20 	existing funding for the uses described under this subdivision.
64.21 		Subd. 4.Report required. By February 1 following any fiscal year in which it 
64.22 	received a grant, an institution must submit a written report to the commissioner indicating 
64.23 	how the new positions affected:
64.24 	(1) the number of students enrolled in programs leading to licensure of student 
64.25 	support services personnel;
64.26 	(2) the number of graduates of programs leading to licensure of student support 
64.27 	services personnel; and
64.28 	(3) employment outcomes for graduates of programs leading to licensure of student 
64.29 	support services personnel, including employment in Minnesota schools.
64.30 		Subd. 5.Appropriation. Any amounts annually appropriated from the general fund 
64.31 	to the commissioner of education for grants received under this section must be used 
64.32 	for the purposes of this section.

65.1 	Sec. 26. Minnesota Statutes 2014, section 121A.53, is amended to read:
65.2 	121A.53 REPORT TO COMMISSIONER OF EDUCATION.
65.3 		Subdivision 1.Exclusions and expulsions; physical assaults. The school board 
65.4 	must report through the department electronic reporting system each exclusion or 
65.5 	expulsion and each physical assault of a district employee by a student within 30 days 
65.6 	of the effective date of the dismissal action or assault to the commissioner of education. 
65.7 	This report must include a statement of alternative educational services, or other sanction, 
65.8 	intervention, or resolution in response to the assault given the pupil and the reason for, 
65.9 	the effective date, and the duration of the exclusion or expulsion or other sanction, 
65.10 	intervention, or resolution. The report must also include the student's age, grade, gender, 
65.11 	race, and special education status.
65.12 		Subd. 2.Report. (a) The school board must include state student identification 
65.13 	numbers of affected pupils on all dismissal and other disciplinary reports required by the 
65.14 	department. The department must report annually to the commissioner summary data on the 
65.15 	number of dismissals and physical assaults of district employees by a student by age, grade, 
65.16 	gender, race, and special education status of the affected pupils. All dismissal and other 
65.17 	disciplinary reports must be submitted through the department electronic reporting system.
65.18 	(b) The commissioner must aggregate the district data reported under this section and 
65.19 	include the aggregated data, including aggregated data on physical assaults of a district 
65.20 	employee by a student, in the annual school performance reports under section 120B.36.

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

65.23 	Sec. 27. Minnesota Statutes 2014, section 121A.61, subdivision 1, is amended to read:
65.24 		Subdivision 1.Required policy. Each school board must adopt a written 
65.25 	districtwide school discipline policy which includes written rules of conduct for 
65.26 	students, minimum consequences for violations of the rules, and grounds and procedures 
65.27 	for removal of a student from class. The policy must be developed in consultation 
65.28 	with administrators, teachers, employees, pupils, parents, community members, law 
65.29 	enforcement agencies, county attorney offices, social service agencies, and such other 
65.30 	individuals or organizations as the board determines appropriate. The policy must be 
65.31 	consistent with a teacher's authority for controlling and managing student behavior in the 
65.32 	classroom under section 122A.42. A school site council may adopt additional provisions 
65.33 	to the policy subject to the approval of the school board.

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

66.3 	Sec. 28. Minnesota Statutes 2014, section 121A.64, is amended to read:
66.4 	121A.64 NOTIFICATION; TEACHERS' LEGITIMATE EDUCATIONAL 
66.5 	INTEREST.
66.6 	(a) A classroom teacher has a legitimate educational interest in knowing which 
66.7 	students placed in the teacher's classroom have a history of violent behavior, including any 
66.8 	documented physical assault of a district employee by the student, and must be notified 
66.9 	before such students are placed in the teacher's classroom.
66.10 	(b) Representatives of the school board and the exclusive representative of the 
66.11 	teachers shall discuss issues related to the model policy on student records adopted under 
66.12 	Laws 1999, chapter 241, article 9, section 50, and any modifications adopted under Laws 
66.13 	2003, First Special Session chapter 9, for notifying classroom teachers and other school 
66.14 	district employees having a legitimate educational interest in knowing about students with 
66.15 	a history of violent behavior, including any documented physical assault of a district 
66.16 	employee by students placed in classrooms. The representatives of the school board and 
66.17 	the exclusive representative of the teachers also may discuss the need for intervention 
66.18 	services or conflict resolution or training for staff related to placing students with a history 
66.19 	of violent behavior in teachers' classrooms.

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

66.22 	Sec. 29. Minnesota Statutes 2014, section 122A.07, subdivision 2, is amended to read:
66.23 		Subd. 2.Eligibility; board composition. Except for the representatives of higher 
66.24 	education, school administrators, and the public, to be eligible for appointment to the 
66.25 	Board of Teaching a person must be a teacher currently teaching in a Minnesota school 
66.26 	and fully licensed for the position held and have at least five years teaching experience in 
66.27 	Minnesota, including the two years immediately preceding nomination and appointment. 
66.28 	Each nominee, other than a public nominee, must be selected on the basis of professional 
66.29 	experience and knowledge of teacher education, accreditation, and licensure. The board 
66.30 	must be composed of:
66.31 	(1) six teachers who are currently teaching in a Minnesota school or who were 
66.32 	teaching at the time of the appointment and who do not qualify under clause (2) or (3), at 
66.33 	least four of whom must be teaching in a public school;
67.1 	(2) one higher education representative, who must be a faculty member preparing 
67.2 	teachers;
67.3 	(3) one school administrator; and
67.4 	(4) three members of the public, two of whom must be present or former members 
67.5 	of school boards.

67.6 	EFFECTIVE DATE. This section is effective the day following final enactment 
67.7 	and applies to all board appointments made after that date.

67.8 	Sec. 30. Minnesota Statutes 2014, section 122A.09, is amended by adding a 
67.9 	subdivision to read:
67.10 		Subd. 3a.Board of Teaching; duties and responsibilities clarified. Consistent 
67.11 	with sections 15.039 and 16B.37, the Board of Teaching is responsible for licensing 
67.12 	teachers and issuing special permissions to teach and must perform all licensure-related 
67.13 	duties and meet all licensure-related responsibilities under this section, among other 
67.14 	statutory licensure-related requirements. At the direction of the board, the department 
67.15 	may perform administrative functions related to issuing teacher licenses. To the extent a 
67.16 	conflict exists between this section and another section governing teacher licensing, the 
67.17 	provisions of this section prevail.

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

67.19 	Sec. 31. Minnesota Statutes 2015 Supplement, section 122A.09, subdivision 4, is 
67.20 	amended to read:
67.21 		Subd. 4.License and rules. (a) The board must adopt rules to license public school 
67.22 	teachers and interns subject to chapter 14.
67.23 	(b) The board must require all candidates for teacher licensure to demonstrate a 
67.24 	passing score on a board-adopted skills examination in reading, writing, and mathematics, 
67.25 	as a requirement for initial teacher licensure, except that the board may issue up to four 
67.26 	temporary, one-year teaching licenses to an otherwise qualified candidate who has not yet 
67.27 	passed the board-adopted skills exam. The board must require colleges and universities 
67.28 	offering a board-approved teacher preparation program to provide remedial assistance to 
67.29 	persons who did not achieve a qualifying score on the board-adopted skills examination, 
67.30 	including those for whom English is a second language. The requirement to pass a 
67.31 	board-adopted reading, writing, and mathematics skills examination does not apply to 
67.32 	nonnative English speakers, as verified by qualified Minnesota school district personnel 
67.33 	or Minnesota higher education faculty, who, after meeting the content and pedagogy 
68.1 	requirements under this subdivision, apply for a teaching license to provide direct 
68.2 	instruction in their native language or world language instruction under section 120B.022, 
68.3 	subdivision 1. The Board of Teaching and the entity administering the content, pedagogy, 
68.4 	and skills examinations must allow any individual who produces documentation of a 
68.5 	disability in the form of an evaluation, 504 plan, or individual education program (IEP) to 
68.6 	receive the same testing accommodations on the content, pedagogy, and skills examinations 
68.7 	that the applicant received during their secondary or postsecondary education.
68.8 	(c) The board must adopt rules to approve teacher preparation programs. The board, 
68.9 	upon the request of a postsecondary student preparing for teacher licensure or a licensed 
68.10 	graduate of a teacher preparation program, shall assist in resolving a dispute between the 
68.11 	person and a postsecondary institution providing a teacher preparation program when the 
68.12 	dispute involves an institution's recommendation for licensure affecting the person or the 
68.13 	person's credentials. At the board's discretion, assistance may include the application 
68.14 	of chapter 14.
68.15 	(d) The board must provide the leadership and adopt rules for the redesign of teacher 
68.16 	education programs to implement a research based, results-oriented curriculum that 
68.17 	focuses on the skills teachers need in order to be effective. Among other components, 
68.18 	teacher preparation programs may use the Minnesota State Colleges and Universities 
68.19 	program model to provide a school-year-long student teaching program that combines 
68.20 	clinical opportunities with academic coursework and in-depth student teaching 
68.21 	experiences to offer students ongoing mentorship, coaching, and assessment, help to 
68.22 	prepare a professional development plan, and structured learning experiences. The board 
68.23 	shall implement new systems of teacher preparation program evaluation to assure program 
68.24 	effectiveness based on proficiency of graduates in demonstrating attainment of program 
68.25 	outcomes. Teacher preparation programs including alternative teacher preparation 
68.26 	programs under section 122A.245, among other programs, must include a content-specific, 
68.27 	board-approved, performance-based assessment that measures teacher candidates in three 
68.28 	areas: planning for instruction and assessment; engaging students and supporting learning; 
68.29 	and assessing student learning. The board's redesign rules must include creating flexible, 
68.30 	specialized teaching licenses, credentials, and other endorsement forms to increase 
68.31 	students' participation in language immersion programs, world language instruction, 
68.32 	career development opportunities, work-based learning, early college courses and careers, 
68.33 	career and technical programs, Montessori schools, and project and place-based learning, 
68.34 	among other career and college ready learning offerings.
68.35 	(e) The board must adopt rules requiring candidates for initial licenses to pass an 
68.36 	examination of general pedagogical knowledge and examinations of licensure-specific 
69.1 	teaching skills. The rules shall be effective by September 1, 2001. The rules under this 
69.2 	paragraph also must require candidates for initial licenses to teach prekindergarten or 
69.3 	elementary students to pass, as part of the examination of licensure-specific teaching 
69.4 	skills, test items assessing the candidates' knowledge, skill, and ability in comprehensive, 
69.5 	scientifically based reading instruction under section 122A.06, subdivision 4, and their 
69.6 	knowledge and understanding of the foundations of reading development, the development 
69.7 	of reading comprehension, and reading assessment and instruction, and their ability to 
69.8 	integrate that knowledge and understanding.
69.9 	(f) The board must adopt rules requiring teacher educators to work directly with 
69.10 	elementary or secondary school teachers in elementary or secondary schools to obtain 
69.11 	periodic exposure to the elementary or secondary teaching environment.
69.12 	(g) The board must grant licenses to interns and to candidates for initial licenses 
69.13 	based on appropriate professional competencies that are aligned with the board's licensing 
69.14 	system and students' diverse learning needs. All teacher candidates must have preparation 
69.15 	in English language development and content instruction for English learners in order to be 
69.16 	able to effectively instruct the English learners in their classrooms. The board must include 
69.17 	these licenses in a statewide differentiated licensing system that creates new leadership 
69.18 	roles for successful experienced teachers premised on a collaborative professional culture 
69.19 	dedicated to meeting students' diverse learning needs in the 21st century, recognizes the 
69.20 	importance of cultural and linguistic competencies, including the ability to teach and 
69.21 	communicate in culturally competent and aware ways, and formalizes mentoring and 
69.22 	induction for newly licensed teachers provided through a teacher support framework.
69.23 	(h) The board must design and implement an assessment system which requires a 
69.24 	candidate for an initial license and first continuing license to demonstrate the abilities 
69.25 	necessary to perform selected, representative teaching tasks at appropriate levels.
69.26 	(i) The board must receive recommendations from local committees as established 
69.27 	by the board for the renewal of teaching licenses. The board must require licensed teachers 
69.28 	who are renewing a continuing license to include in the renewal requirements further 
69.29 	preparation in English language development and specially designed content instruction 
69.30 	in English for English learners.
69.31 	(j) The board must grant life licenses to those who qualify according to requirements 
69.32 	established by the board, and suspend or revoke licenses pursuant to sections 122A.20 and 
69.33 	214.10. The board must not establish any expiration date for application for life licenses.
69.34 	(k) The board must adopt rules that require all licensed teachers who are renewing 
69.35 	their continuing license to include in their renewal requirements further preparation in 
69.36 	the areas of using positive behavior interventions and in accommodating, modifying, and 
70.1 	adapting curricula, materials, and strategies to appropriately meet the needs of individual 
70.2 	students and ensure adequate progress toward the state's graduation rule.
70.3 	(l) In adopting rules to license public school teachers who provide health-related 
70.4 	services for disabled children, the board shall adopt rules consistent with license or 
70.5 	registration requirements of the commissioner of health and the health-related boards who 
70.6 	license personnel who perform similar services outside of the school.
70.7 	(m) The board must adopt rules that require all licensed teachers who are renewing 
70.8 	their continuing license to include in their renewal requirements further reading 
70.9 	preparation, consistent with section 122A.06, subdivision 4. The rules do not take effect 
70.10 	until they are approved by law. Teachers who do not provide direct instruction including, at 
70.11 	least, counselors, school psychologists, school nurses, school social workers, audiovisual 
70.12 	directors and coordinators, and recreation personnel are exempt from this section.
70.13 	(n) The board must adopt rules that require all licensed teachers who are renewing 
70.14 	their continuing license to include in their renewal requirements at least one hour of 
70.15 	suicide prevention best practices in each licensure renewal period that are based on 
70.16 	nationally recognized evidence-based programs and practices, among the continuing 
70.17 	education credits required to renew a license under this paragraph, and further preparation, 
70.18 	first, in understanding the key warning signs of early-onset mental illness in children 
70.19 	and adolescents and then, during subsequent licensure renewal periods, preparation may 
70.20 	include providing a more in-depth understanding of students' mental illness trauma, 
70.21 	accommodations for students' mental illness, parents' role in addressing students' mental 
70.22 	illness, Fetal Alcohol Spectrum Disorders, autism, the requirements of section 125A.0942 
70.23 	governing restrictive procedures, and de-escalation methods, among other similar topics.
70.24 	(o) The board must adopt rules by January 1, 2016, to license applicants under 
70.25 	sections 122A.23 and 122A.245. The rules must permit applicants to demonstrate their 
70.26 	qualifications through the board's recognition of a teaching license from another state 
70.27 	in a similar content field, completion of a state-approved teacher preparation program, 
70.28 	teaching experience as the teacher of record in a similar licensure field, depth of content 
70.29 	knowledge, depth of content methods or general pedagogy, subject-specific professional 
70.30 	development and contribution to the field, or classroom performance as determined by 
70.31 	documented student growth on normed assessments or documented effectiveness on 
70.32 	evaluations. The rules must adopt criteria for determining a "similar content field" and 
70.33 	"similar licensure area."

70.34 	EFFECTIVE DATE. This section is effective the day following final enactment 
70.35 	and applies to teachers renewing their teaching licenses beginning August 1, 2017.

71.1 	Sec. 32. Minnesota Statutes 2014, section 122A.09, subdivision 10, is amended to read:
71.2 		Subd. 10.Variances Permissions. (a) Notwithstanding subdivision 9 and 
71.3 	section 14.05, subdivision 4, the Board of Teaching may grant a variance to its rules 
71.4 	upon application by a school district or a charter school for purposes of implementing 
71.5 	experimental programs in learning or management.
71.6 	(b) To enable a school district or a charter school to meet the needs of students 
71.7 	enrolled in an alternative education program and to enable licensed teachers instructing 
71.8 	those students to satisfy content area licensure requirements, the Board of Teaching 
71.9 	annually may permit a licensed teacher teaching in an alternative education program to 
71.10 	instruct students in a content area for which the teacher is not licensed, consistent with 
71.11 	paragraph (a).
71.12 	(c) A special education license variance issued by the Board of Teaching for a 
71.13 	primary employer's low-incidence region shall be is valid in all low-incidence regions.
71.14 	(d) The Board of Teaching may issue a one-year professional license under 
71.15 	paragraph (a), which the board may renew two times, to allow a person holding a full 
71.16 	credential from the American Montessori Society, a diploma from Association Montessori 
71.17 	Internationale, or a certificate of completion from a program accredited by the Montessori 
71.18 	Accreditation Council for Teacher Education to teach in a Montessori program operated 
71.19 	by a school district or charter school.
71.20 	(e) The Board of Teaching may grant a one-year waiver, renewable two times, 
71.21 	to allow individuals who hold a bachelor's degree from an accredited postsecondary 
71.22 	institution, demonstrate occupational competency based on at least three years of full-time 
71.23 	work experience in business or industry, and enroll and make satisfactory progress in 
71.24 	an alternative preparation program leading to certification or licensure as a career and 
71.25 	technical education instructor or teacher to teach career and technical education courses 
71.26 	offered by a school district or charter school. Consistent with this paragraph and section 
71.27 	136F.361, the Board of Teaching must strongly encourage teacher preparation programs 
71.28 	and institutions throughout Minnesota to develop alternative pathways for certifying and 
71.29 	licensing high school career and technical education instructors and teachers, allowing 
71.30 	such candidates to meet certification and licensure standards that demonstrate their content 
71.31 	knowledge, classroom experience, and pedagogical practices and their qualifications 
71.32 	based on a combination of occupational testing, professional certification or licensure, and 
71.33 	long-standing work experience.

71.34 	EFFECTIVE DATE. Paragraphs (d) and (e) are effective for the 2016-2017 
71.35 	through 2018-2019 school years.

72.1 	Sec. 33. Minnesota Statutes 2014, section 122A.16, is amended to read:
72.2 	122A.16 HIGHLY QUALIFIED TEACHER DEFINED.
72.3 	(a) A qualified teacher is one holding a valid license, under this chapter, to perform 
72.4 	the particular service for which the teacher is employed in a public school.
72.5 	(b) For the purposes of the federal No Child Left Behind Act, a highly qualified 
72.6 	teacher is one who holds a valid license under this chapter, including under section 
72.7 	122A.245, among other sections and is determined by local administrators as having 
72.8 	highly qualified status according to the approved Minnesota highly qualified plan. 
72.9 	Teachers delivering core content instruction must be deemed highly qualified at the local 
72.10 	level and reported to the state via the staff automated reporting system.

72.11 	Sec. 34. Minnesota Statutes 2014, section 122A.245, subdivision 8, is amended to read:
72.12 		Subd. 8.Highly Qualified teacher. A person holding a valid limited-term license 
72.13 	under this section is a highly qualified teacher and the teacher of record under section 
72.14 	122A.16.

72.15 	Sec. 35. Minnesota Statutes 2015 Supplement, section 122A.30, is amended to read:
72.16 	122A.30 EXEMPTION FOR TECHNICAL EDUCATION INSTRUCTORS.
72.17 	(a) Notwithstanding section 122A.15, subdivision 1, and upon approval of the local 
72.18 	employer school board, a person who teaches in as a part-time vocational or career and 
72.19 	technical education program teacher is exempt from a license requirement. Nothing in 
72.20 	this section shall exclude licensed career and technical educators from the definition of 
72.21 	"teacher" in section 122A.40, 122A.41, or 179A.03.
72.22 	(b) This section expires June 30, 2020.

72.23 	Sec. 36. Minnesota Statutes 2015 Supplement, section 122A.40, subdivision 8, is 
72.24 	amended to read:
72.25 		Subd. 8.Development, evaluation, and peer coaching for continuing contract 
72.26 	teachers. (a) To improve student learning and success, a school board and an exclusive 
72.27 	representative of the teachers in the district, consistent with paragraph (b), may develop 
72.28 	a teacher evaluation and peer review process for probationary and continuing contract 
72.29 	teachers through joint agreement. If a school board and the exclusive representative of the 
72.30 	teachers do not agree to an annual teacher evaluation and peer review process, then the 
72.31 	school board and the exclusive representative of the teachers must implement the state 
72.32 	teacher evaluation plan under paragraph (c). The process must include having trained 
73.1 	observers serve as peer coaches or having teachers participate in professional learning 
73.2 	communities, consistent with paragraph (b).
73.3 	(b) To develop, improve, and support qualified teachers and effective teaching 
73.4 	practices and, improve student learning and success, and provide all enrolled students in 
73.5 	a district or school with improved and equitable access to more effective and diverse 
73.6 	teachers, the annual evaluation process for teachers:
73.7 	(1) must, for probationary teachers, provide for all evaluations required under 
73.8 	subdivision 5;
73.9 	(2) must establish a three-year professional review cycle for each teacher that 
73.10 	includes an individual growth and development plan, a peer review process, and at least 
73.11 	one summative evaluation performed by a qualified and trained evaluator such as a school 
73.12 	administrator. For the years when a tenured teacher is not evaluated by a qualified and 
73.13 	trained evaluator, the teacher must be evaluated by a peer review;
73.14 	(3) must be based on professional teaching standards established in rule;
73.15 	(4) must coordinate staff development activities under sections 122A.60 and 
73.16 	122A.61 with this evaluation process and teachers' evaluation outcomes;
73.17 	(5) may provide time during the school day and school year for peer coaching and 
73.18 	teacher collaboration;
73.19 	(6) may include job-embedded learning opportunities such as professional learning 
73.20 	communities;
73.21 	(7) may include mentoring and induction programs for teachers, including teachers 
73.22 	who are members of populations underrepresented among the licensed teachers in 
73.23 	the district or school and who reflect the diversity of students under section 120B.35, 
73.24 	subdivision 3, paragraph (b), clause (2), who are enrolled in the district or school;
73.25 	(8) must include an option for teachers to develop and present a portfolio 
73.26 	demonstrating evidence of reflection and professional growth, consistent with section 
73.27 	122A.18, subdivision 4, paragraph (b), and include teachers' own performance assessment 
73.28 	based on student work samples and examples of teachers' work, which may include video 
73.29 	among other activities for the summative evaluation;
73.30 	(9) must use data from valid and reliable assessments aligned to state and local 
73.31 	academic standards and must use state and local measures of student growth and literacy 
73.32 	that may include value-added models or student learning goals to determine 35 percent of 
73.33 	teacher evaluation results;
73.34 	(10) must use longitudinal data on student engagement and connection, and other 
73.35 	student outcome measures explicitly aligned with the elements of curriculum for which 
74.1 	teachers are responsible, including academic literacy, oral academic language, and 
74.2 	achievement of content areas of English learners;
74.3 	(11) must require qualified and trained evaluators such as school administrators to 
74.4 	perform summative evaluations and ensure school districts and charter schools provide for 
74.5 	effective evaluator training specific to teacher development and evaluation;
74.6 	(12) must give teachers not meeting professional teaching standards under clauses 
74.7 	(3) through (11) support to improve through a teacher improvement process that includes 
74.8 	established goals and timelines; and
74.9 	(13) must discipline a teacher for not making adequate progress in the teacher 
74.10 	improvement process under clause (12) that may include a last chance warning, 
74.11 	termination, discharge, nonrenewal, transfer to a different position, a leave of absence, or 
74.12 	other discipline a school administrator determines is appropriate.
74.13 	Data on individual teachers generated under this subdivision are personnel data 
74.14 	under section 13.43. The observation and interview notes of peer coaches may only be 
74.15 	disclosed to other school officials with the consent of the teacher being coached.
74.16 	(c) The department, in consultation with parents who may represent parent 
74.17 	organizations and teacher and administrator representatives appointed by their respective 
74.18 	organizations, representing the Board of Teaching, the Minnesota Association of School 
74.19 	Administrators, the Minnesota School Boards Association, the Minnesota Elementary 
74.20 	and Secondary Principals Associations, Education Minnesota, and representatives of 
74.21 	the Minnesota Assessment Group, the Minnesota Business Partnership, the Minnesota 
74.22 	Chamber of Commerce, and Minnesota postsecondary institutions with research expertise 
74.23 	in teacher evaluation, must create and publish a teacher evaluation process that complies 
74.24 	with the requirements in paragraph (b) and applies to all teachers under this section and 
74.25 	section 122A.41 for whom no agreement exists under paragraph (a) for an annual teacher 
74.26 	evaluation and peer review process. The teacher evaluation process created under this 
74.27 	subdivision does not create additional due process rights for probationary teachers under 
74.28 	subdivision 5.
74.29 	(d) Consistent with the measures of teacher effectiveness under this subdivision:
74.30 	(1) for students in kindergarten through grade 4, a school administrator must not 
74.31 	place or approve the placement of a student in the classroom of a teacher who is in the 
74.32 	improvement process referenced in paragraph (b), clause (12), or has not had a summative 
74.33 	evaluation if, in the prior year, that student was in the classroom of a teacher who received 
74.34 	discipline pursuant to paragraph (b), clause (13), unless no other teacher at the school 
74.35 	teaches that grade; and
75.1 	(2) for students in grades 5 through 12, a school administrator must not place 
75.2 	or approve the placement of a student in the classroom of a teacher who is in the 
75.3 	improvement process referenced in paragraph (b), clause (12), or has not had a summative 
75.4 	evaluation if, in the prior year, that student was in the classroom of a teacher who received 
75.5 	discipline pursuant to paragraph (b), clause (13), unless no other teacher at the school 
75.6 	teaches that subject area and grade.
75.7 	All data created and used under this paragraph retains its classification under chapter 13.

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

75.10 	Sec. 37. Minnesota Statutes 2014, section 122A.40, subdivision 10, is amended to read:
75.11 		Subd. 10.Negotiated unrequested leave of absence. The school board and the 
75.12 	exclusive bargaining representative of the teachers may must negotiate a plan providing for 
75.13 	unrequested leave of absence without pay or fringe benefits for as many teachers as may 
75.14 	be necessary because of discontinuance of position, lack of pupils, financial limitations, or 
75.15 	merger of classes caused by consolidation of districts. Failing to successfully negotiate such 
75.16 	a plan, the provisions of subdivision 11 shall apply. The negotiated plan must not include 
75.17 	provisions which would result in the exercise of seniority by a teacher holding a provisional 
75.18 	license, other than a vocational education license, contrary to the provisions of subdivision 
75.19 	11, paragraph (c), or the reinstatement of a teacher holding a provisional license, other 
75.20 	than a vocational education license, contrary to the provisions of subdivision 11, paragraph 
75.21 	(e). The provisions of section 179A.16 do not apply for the purposes of this subdivision.

75.22 	EFFECTIVE DATE. This section is effective July 1, 2017.

75.23 	Sec. 38. Minnesota Statutes 2015 Supplement, section 122A.41, subdivision 5, is 
75.24 	amended to read:
75.25 		Subd. 5.Development, evaluation, and peer coaching for continuing contract 
75.26 	teachers. (a) To improve student learning and success, a school board and an exclusive 
75.27 	representative of the teachers in the district, consistent with paragraph (b), may develop an 
75.28 	annual teacher evaluation and peer review process for probationary and nonprobationary 
75.29 	teachers through joint agreement. If a school board and the exclusive representative of 
75.30 	the teachers in the district do not agree to an annual teacher evaluation and peer review 
75.31 	process, then the school board and the exclusive representative of the teachers must 
75.32 	implement the state teacher evaluation plan developed under paragraph (c). The process 
76.1 	must include having trained observers serve as peer coaches or having teachers participate 
76.2 	in professional learning communities, consistent with paragraph (b).
76.3 	(b) To develop, improve, and support qualified teachers and effective teaching 
76.4 	practices and improve student learning and success, and provide all enrolled students in 
76.5 	a district or school with improved and equitable access to more effective and diverse 
76.6 	teachers, the annual evaluation process for teachers:
76.7 	(1) must, for probationary teachers, provide for all evaluations required under 
76.8 	subdivision 2;
76.9 	(2) must establish a three-year professional review cycle for each teacher that 
76.10 	includes an individual growth and development plan, a peer review process, and at least 
76.11 	one summative evaluation performed by a qualified and trained evaluator such as a school 
76.12 	administrator;
76.13 	(3) must be based on professional teaching standards established in rule;
76.14 	(4) must coordinate staff development activities under sections 122A.60 and 
76.15 	122A.61 with this evaluation process and teachers' evaluation outcomes;
76.16 	(5) may provide time during the school day and school year for peer coaching and 
76.17 	teacher collaboration;
76.18 	(6) may include job-embedded learning opportunities such as professional learning 
76.19 	communities;
76.20 	(7) may include mentoring and induction programs for teachers, including teachers 
76.21 	who are members of populations underrepresented among the licensed teachers in 
76.22 	the district or school and who reflect the diversity of students under section 120B.35, 
76.23 	subdivision 3, paragraph (b), clause (2), who are enrolled in the district or school;
76.24 	(8) must include an option for teachers to develop and present a portfolio 
76.25 	demonstrating evidence of reflection and professional growth, consistent with section 
76.26 	122A.18, subdivision 4, paragraph (b), and include teachers' own performance assessment 
76.27 	based on student work samples and examples of teachers' work, which may include video 
76.28 	among other activities for the summative evaluation;
76.29 	(9) must use data from valid and reliable assessments aligned to state and local 
76.30 	academic standards and must use state and local measures of student growth and literacy 
76.31 	that may include value-added models or student learning goals to determine 35 percent of 
76.32 	teacher evaluation results;
76.33 	(10) must use longitudinal data on student engagement and connection and other 
76.34 	student outcome measures explicitly aligned with the elements of curriculum for which 
76.35 	teachers are responsible, including academic literacy, oral academic language, and 
76.36 	achievement of English learners;
77.1 	(11) must require qualified and trained evaluators such as school administrators to 
77.2 	perform summative evaluations and ensure school districts and charter schools provide for 
77.3 	effective evaluator training specific to teacher development and evaluation;
77.4 	(12) must give teachers not meeting professional teaching standards under clauses 
77.5 	(3) through (11) support to improve through a teacher improvement process that includes 
77.6 	established goals and timelines; and
77.7 	(13) must discipline a teacher for not making adequate progress in the teacher 
77.8 	improvement process under clause (12) that may include a last chance warning, 
77.9 	termination, discharge, nonrenewal, transfer to a different position, a leave of absence, or 
77.10 	other discipline a school administrator determines is appropriate.
77.11 	Data on individual teachers generated under this subdivision are personnel data 
77.12 	under section 13.43. The observation and interview notes of peer coaches may only be 
77.13 	disclosed to other school officials with the consent of the teacher being coached.
77.14 	(c) The department, in consultation with parents who may represent parent 
77.15 	organizations and teacher and administrator representatives appointed by their respective 
77.16 	organizations, representing the Board of Teaching, the Minnesota Association of School 
77.17 	Administrators, the Minnesota School Boards Association, the Minnesota Elementary 
77.18 	and Secondary Principals Associations, Education Minnesota, and representatives of 
77.19 	the Minnesota Assessment Group, the Minnesota Business Partnership, the Minnesota 
77.20 	Chamber of Commerce, and Minnesota postsecondary institutions with research expertise 
77.21 	in teacher evaluation, must create and publish a teacher evaluation process that complies 
77.22 	with the requirements in paragraph (b) and applies to all teachers under this section and 
77.23 	section 122A.40 for whom no agreement exists under paragraph (a) for an annual teacher 
77.24 	evaluation and peer review process. The teacher evaluation process created under this 
77.25 	subdivision does not create additional due process rights for probationary teachers under 
77.26 	subdivision 2.
77.27 	(d) Consistent with the measures of teacher effectiveness under this subdivision:
77.28 	(1) for students in kindergarten through grade 4, a school administrator must not 
77.29 	place or approve the placement of a student in the classroom of a teacher who is in the 
77.30 	improvement process referenced in paragraph (b), clause (12), or has not had a summative 
77.31 	evaluation if, in the prior year, that student was in the classroom of a teacher who received 
77.32 	discipline pursuant to paragraph (b), clause (13), unless no other teacher at the school 
77.33 	teaches that grade; and
77.34 	(2) for students in grades 5 through 12, a school administrator must not place 
77.35 	or approve the placement of a student in the classroom of a teacher who is in the 
77.36 	improvement process referenced in paragraph (b), clause (12), or has not had a summative 
78.1 	evaluation if, in the prior year, that student was in the classroom of a teacher who received 
78.2 	discipline pursuant to paragraph (b), clause (13), unless no other teacher at the school 
78.3 	teaches that subject area and grade.
78.4 	All data created and used under this paragraph retains its classification under chapter 13.

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

78.7 	Sec. 39. Minnesota Statutes 2014, section 122A.41, is amended by adding a 
78.8 	subdivision to read:
78.9 		Subd. 14a.Negotiated unrequested leave of absence. The school board and the 
78.10 	exclusive bargaining representative of the teachers must negotiate a plan providing for 
78.11 	unrequested leave of absence without pay or fringe benefits for as many teachers as may 
78.12 	be necessary because of discontinuance of position, lack of pupils, financial limitations, 
78.13 	or merger of classes caused by consolidation of districts.

78.14 	EFFECTIVE DATE. This section is effective July 1, 2017.

78.15 	Sec. 40. Minnesota Statutes 2015 Supplement, section 122A.414, subdivision 1, 
78.16 	is amended to read:
78.17 		Subdivision 1.Restructured pay system. A restructured alternative teacher 
78.18 	professional pay system is established under subdivision 2 to provide incentives to 
78.19 	encourage teachers to improve their knowledge and instructional skills in order to improve 
78.20 	student learning and for school districts, intermediate school districts, cooperative units, 
78.21 	as defined in section 123A.24, subdivision 2, and charter schools to recruit and retain 
78.22 	highly qualified teachers, encourage highly qualified teachers to undertake challenging 
78.23 	assignments, and support teachers' roles in improving students' educational achievement.

78.24 	Sec. 41. Minnesota Statutes 2015 Supplement, section 122A.414, subdivision 2, 
78.25 	is amended to read:
78.26 		Subd. 2.Alternative teacher professional pay system. (a) To participate in this 
78.27 	program, a school district, intermediate school district, school site, or charter school must 
78.28 	have an educational improvement plan under section 122A.413 a world's best workforce 
78.29 	plan under section 120B.11 and an alternative teacher professional pay system agreement 
78.30 	under paragraph (b). A charter school participant also must comply with subdivision 2a.
78.31 	(b) The alternative teacher professional pay system agreement must:
79.1 	(1) describe how teachers can achieve career advancement and additional 
79.2 	compensation;
79.3 	(2) describe how the school district, intermediate school district, school site, or 
79.4 	charter school will provide teachers with career advancement options that allow teachers 
79.5 	to retain primary roles in student instruction and facilitate site-focused professional 
79.6 	development that helps other teachers improve their skills;
79.7 	(3) reform the "steps and lanes" salary schedule, prevent any teacher's compensation 
79.8 	paid before implementing the pay system from being reduced as a result of participating in 
79.9 	this system, base at least 60 percent of any compensation increase on teacher performance 
79.10 	using:
79.11 	(i) schoolwide student achievement gains under section 120B.35 or locally selected 
79.12 	standardized assessment outcomes, or both;
79.13 	(ii) measures of student growth and literacy that may include value-added models 
79.14 	or student learning goals, consistent with section 122A.40, subdivision 8, paragraph 
79.15 	(b), clause (9), or 122A.41, subdivision 5, paragraph (b), clause (9), and other measures 
79.16 	that include the academic literacy, oral academic language, and achievement of English 
79.17 	learners under section 122A.40, subdivision 8, paragraph (b), clause (10), or 122A.41, 
79.18 	subdivision 5, paragraph (b), clause (10); and
79.19 	(iii) an objective evaluation program under section 122A.40, subdivision 8, 
79.20 	paragraph (b), clause (2), or 122A.41, subdivision 5, paragraph (b), clause (2);
79.21 	(4) provide for participation in job-embedded learning opportunities such as 
79.22 	professional learning communities to improve instructional skills and learning that are 
79.23 	aligned with student needs under section 122A.413 120B.11, consistent with the staff 
79.24 	development plan under section 122A.60 and led during the school day by trained teacher 
79.25 	leaders such as master or mentor teachers;
79.26 	(5) allow any teacher in a participating school district, intermediate school district, 
79.27 	school site, or charter school that implements an alternative pay system to participate in 
79.28 	that system without any quota or other limit; and
79.29 	(6) encourage collaboration rather than competition among teachers.
79.30 	(c) The alternative teacher professional pay system may:
79.31 	(1) include a hiring bonus or other added compensation for teachers who are 
79.32 	identified as effective or highly effective under the local teacher professional review 
79.33 	cycle and work in a hard-to-fill position or in a hard-to-staff school such as a school with 
79.34 	a majority of students whose families meet federal poverty guidelines, a geographically 
79.35 	isolated school, or a school identified by the state as eligible for targeted programs or 
79.36 	services for its students; and
80.1 	(2) include incentives for teachers to obtain a master's degree or other advanced 
80.2 	certification in their content field of licensure, pursue the training or education necessary 
80.3 	to obtain an additional licensure in shortage areas identified by the district or charter 
80.4 	school, or help fund a "grow your own" new teacher initiative.

80.5 	Sec. 42. Minnesota Statutes 2015 Supplement, section 122A.414, subdivision 2b, 
80.6 	is amended to read:
80.7 		Subd. 2b.Approval process. (a) Consistent with the requirements of this section 
80.8 	and sections 122A.413 and section122A.415, the department must prepare and transmit 
80.9 	to interested school districts, intermediate school districts, cooperatives, school sites, 
80.10 	and charter schools a standard form for applying to participate in the alternative teacher 
80.11 	professional pay system. The commissioner annually must establish three dates as 
80.12 	deadlines by which interested applicants must submit an application to the commissioner 
80.13 	under this section. An interested school district, intermediate school district, cooperative, 
80.14 	school site, or charter school must submit to the commissioner a completed application 
80.15 	executed by the district superintendent and the exclusive bargaining representative of the 
80.16 	teachers if the applicant is a school district, intermediate school district, or school site, or 
80.17 	executed by the charter school board of directors if the applicant is a charter school or 
80.18 	executed by the governing board if the applicant is a cooperative unit. The application 
80.19 	must include the proposed alternative teacher professional pay system agreement under 
80.20 	subdivision 2. The department must review a completed application within 30 days of 
80.21 	the most recent application deadline and recommend to the commissioner whether to 
80.22 	approve or disapprove the application. The commissioner must approve applications 
80.23 	on a first-come, first-served basis. The applicant's alternative teacher professional pay 
80.24 	system agreement must be legally binding on the applicant and the collective bargaining 
80.25 	representative before the applicant receives alternative compensation revenue. The 
80.26 	commissioner must approve or disapprove an application based on the requirements 
80.27 	under subdivisions 2 and 2a.
80.28 	(b) If the commissioner disapproves an application, the commissioner must give the 
80.29 	applicant timely notice of the specific reasons in detail for disapproving the application. 
80.30 	The applicant may revise and resubmit its application and related documents to the 
80.31 	commissioner within 30 days of receiving notice of the commissioner's disapproval and 
80.32 	the commissioner must approve or disapprove the revised application, consistent with this 
80.33 	subdivision. Applications that are revised and then approved are considered submitted on 
80.34 	the date the applicant initially submitted the application.

81.1 	Sec. 43. Minnesota Statutes 2014, section 122A.4144, is amended to read:
81.2 	122A.4144 SUPPLEMENTAL AGREEMENTS; ALTERNATIVE TEACHER 
81.3 	PAY.
81.4 	Notwithstanding section 179A.20 or other law to the contrary, a school board and 
81.5 	the exclusive representative of the teachers may agree to reopen a collective bargaining 
81.6 	agreement for the purpose of entering into an alternative teacher professional pay system 
81.7 	agreement under sections 122A.413,122A.414, and 122A.415. Negotiations for a contract 
81.8 	reopened under this section must be limited to issues related to the alternative teacher 
81.9 	professional pay system.

81.10 	Sec. 44. Minnesota Statutes 2014, section 122A.416, is amended to read:
81.11 	122A.416 ALTERNATIVE TEACHER COMPENSATION REVENUE 
81.12 	FOR PERPICH CENTER FOR ARTS EDUCATION AND MULTIDISTRICT 
81.13 	INTEGRATION COLLABORATIVES.
81.14 	Notwithstanding sections 122A.413,122A.414, 122A.415, and 126C.10, 
81.15 	multidistrict integration collaboratives and the Perpich Center for Arts Education are 
81.16 	eligible to receive alternative teacher compensation revenue as if they were intermediate 
81.17 	school districts. To qualify for alternative teacher compensation revenue, a multidistrict 
81.18 	integration collaborative or the Perpich Center for Arts Education must meet all of the 
81.19 	requirements of sections 122A.413,122A.414, and 122A.415 that apply to intermediate 
81.20 	school districts, must report its enrollment as of October 1 of each year to the department, 
81.21 	and must annually report its expenditures for the alternative teacher professional pay 
81.22 	system consistent with the uniform financial accounting and reporting standards to the 
81.23 	department by November 30 of each year.

81.24 	Sec. 45. Minnesota Statutes 2014, section 122A.42, is amended to read:
81.25 	122A.42 GENERAL CONTROL OF SCHOOLS.
81.26 	(a) The teacher of record shall have the general control and government of the 
81.27 	school and classroom. When more than one teacher is employed in any district, one of the 
81.28 	teachers may be designated by the board as principal and shall have the general control 
81.29 	and supervision of the schools of the district, subject to the general supervisory control 
81.30 	of the board and other officers.
81.31 	(b) Consistent with paragraph (a), the teacher may remove students from class under 
81.32 	section 121A.61, subdivision 2, for violent or disruptive conduct or other misconduct.

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

82.3 	Sec. 46. [122A.421] SCHOOL CLIMATE AND SAFETY.
82.4 	Beginning with agreements effective July 1, 2017, and thereafter, all collective 
82.5 	bargaining agreements for teachers under chapter 179A may include school climate 
82.6 	and student and staff safety provisions related to establishing and maintaining safe and 
82.7 	supportive classrooms and school sites and a districtwide educational climate that is 
82.8 	conducive to student learning and a supportive working environment for teachers and 
82.9 	other staff.

82.10 	EFFECTIVE DATE. This section is effective July 1, 2017.

82.11 	Sec. 47. Minnesota Statutes 2015 Supplement, section 122A.60, subdivision 4, is 
82.12 	amended to read:
82.13 		Subd. 4.Staff development report. (a) By October 15 of each year, The district 
82.14 	and site staff development committees shall write and submit a report of staff development 
82.15 	activities and expenditures for the previous year, in the form and manner determined by 
82.16 	the commissioner. The report, signed by the district superintendent and staff development 
82.17 	chair, must include assessment and evaluation data indicating progress toward district and 
82.18 	site staff development goals based on teaching and learning outcomes, including the 
82.19 	percentage of teachers and other staff involved in instruction who participate in effective 
82.20 	staff development activities under subdivision 3 as part of the district's world's best 
82.21 	workforce report under section 120B.11, subdivision 5.
82.22 	(b) The report must break down expenditures for:
82.23 	(1) curriculum development and curriculum training programs; and
82.24 	(2) staff development training models, workshops, and conferences, and the cost of 
82.25 	releasing teachers or providing substitute teachers for staff development purposes.
82.26 	The report also must indicate whether the expenditures were incurred at the district 
82.27 	level or the school site level, and whether the school site expenditures were made possible 
82.28 	by grants to school sites that demonstrate exemplary use of allocated staff development 
82.29 	revenue. These expenditures must be reported using the uniform financial and accounting 
82.30 	and reporting standards.
82.31 	(c) The commissioner shall report the staff development progress and expenditure 
82.32 	data to the house of representatives and senate committees having jurisdiction over 
82.33 	education by February 15 each year.

83.1 	Sec. 48. Minnesota Statutes 2014, section 122A.72, subdivision 5, is amended to read:
83.2 		Subd. 5.Center functions. (a) A teacher center shall perform functions according 
83.3 	to this subdivision. The center shall assist teachers, diagnose learning needs, experiment 
83.4 	with the use of multiple instructional approaches, assess pupil outcomes, assess staff 
83.5 	development needs and plans, and teach school personnel about effective pedagogical 
83.6 	approaches. The center shall develop and produce curricula and curricular materials 
83.7 	designed to meet the educational needs of pupils being served, by applying educational 
83.8 	research and new and improved methods, practices, and techniques. The center shall 
83.9 	provide programs to improve the skills of teachers to meet the special educational needs of 
83.10 	pupils. The center shall provide programs to familiarize teachers with developments in 
83.11 	curriculum formulation and educational research, including how research can be used to 
83.12 	improve teaching skills. The center shall facilitate sharing of resources, ideas, methods, 
83.13 	and approaches directly related to classroom instruction and improve teachers' familiarity 
83.14 	with current teaching materials and products for use in their classrooms. The center shall 
83.15 	provide in-service programs.
83.16 	(b) Each teacher center must provide a professional development program to train 
83.17 	interested and highly qualified elementary, middle, and secondary teachers, selected by the 
83.18 	employing school district, to assist other teachers in that district with mathematics and 
83.19 	science curriculum, standards, and instruction so that all teachers have access to:
83.20 	(1) high quality professional development programs in mathematics and science that 
83.21 	address curriculum, instructional methods, alignment of standards, and performance 
83.22 	measurements, enhance teacher and student learning, and support state mathematics and 
83.23 	science standards; and
83.24 	(2) research-based mathematics and science programs and instructional models 
83.25 	premised on best practices that inspire teachers and students and have practical classroom 
83.26 	application.

83.27 	Sec. 49. Minnesota Statutes 2014, section 123B.147, subdivision 3, is amended to read:
83.28 		Subd. 3.Duties; evaluation. (a) The principal shall provide administrative, 
83.29 	supervisory, and instructional leadership services, under the supervision of the 
83.30 	superintendent of schools of the district and according to the policies, rules, and 
83.31 	regulations of the school board, for the planning, management, operation, and evaluation 
83.32 	of the education program of the building or buildings to which the principal is assigned.
83.33 	(b) To enhance a principal's leadership skills and support and improve teaching 
83.34 	practices, school performance, and student achievement for diverse student populations, 
83.35 	including at-risk students, children with disabilities, English learners, and gifted students, 
84.1 	among others, a district must develop and implement a performance-based system for 
84.2 	annually evaluating school principals assigned to supervise a school building within the 
84.3 	district. The evaluation must be designed to improve teaching and learning by supporting 
84.4 	the principal in shaping the school's professional environment and developing teacher 
84.5 	quality, performance, and effectiveness. The annual evaluation must:
84.6 	(1) support and improve a principal's instructional leadership, organizational 
84.7 	management, and professional development, and strengthen the principal's capacity in the 
84.8 	areas of instruction, supervision, evaluation, and teacher development by, among other 
84.9 	things, hiring, supporting, and retaining a diverse teaching staff that reflects the diversity 
84.10 	of students under section 120B.35, subdivision 3, paragraph (b), clause (2), who are 
84.11 	enrolled in the district or school;
84.12 	(2) include formative and summative evaluations based on multiple measures of 
84.13 	student progress toward career and college readiness;
84.14 	(3) be consistent with a principal's job description, a district's long-term plans and 
84.15 	goals, and the principal's own professional multiyear growth plans and goals, all of which 
84.16 	must support the principal's leadership behaviors and practices, rigorous curriculum, 
84.17 	school performance, students' improved and equitable access to effective and more diverse 
84.18 	teachers, and high-quality instruction;
84.19 	(4) include on-the-job observations and previous evaluations;
84.20 	(5) allow surveys to help identify a principal's effectiveness, leadership skills and 
84.21 	processes, and strengths and weaknesses in exercising leadership in pursuit of school 
84.22 	success;
84.23 	(6) use longitudinal data on student academic growth as 35 percent of the evaluation 
84.24 	and incorporate district achievement goals and targets;
84.25 	(7) be linked to professional development that emphasizes improved teaching and 
84.26 	learning, curriculum and instruction, student learning, and a collaborative professional 
84.27 	culture, and students' increased and equitable access to effective and more diverse 
84.28 	teachers, consistent with attaining the world's best workforce under section 120B.11, 
84.29 	subdivision 1, paragraph (c); and
84.30 	(8) for principals not meeting standards of professional practice or other criteria 
84.31 	under this subdivision, implement a plan to improve the principal's performance and 
84.32 	specify the procedure and consequence if the principal's performance is not improved.
84.33 	The provisions of this paragraph are intended to provide districts with sufficient 
84.34 	flexibility to accommodate district needs and goals related to developing, supporting, 
84.35 	and evaluating principals.

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

85.3 	Sec. 50. Minnesota Statutes 2014, section 123B.49, subdivision 4, is amended to read:
85.4 		Subd. 4.Board control of extracurricular activities. (a) The board may take 
85.5 	charge of and control all extracurricular activities of the teachers and children of the public 
85.6 	schools in the district. Extracurricular activities means all direct and personal services for 
85.7 	pupils for their enjoyment that are managed and operated under the guidance of an adult 
85.8 	or staff member. The board shall allow all resident pupils receiving instruction in a home 
85.9 	school as defined in section 123B.36, subdivision 1, paragraph (a), and all resident pupils 
85.10 	enrolled full-time in an online public school program to be eligible to fully participate in 
85.11 	extracurricular activities on the same basis as public school students.
85.12 	(b) Extracurricular activities have all of the following characteristics:
85.13 	(1) they are not offered for school credit nor required for graduation;
85.14 	(2) they are generally conducted outside school hours, or if partly during school 
85.15 	hours, at times agreed by the participants, and approved by school authorities;
85.16 	(3) the content of the activities is determined primarily by the pupil participants 
85.17 	under the guidance of a staff member or other adult.
85.18 	(c) If the board does not take charge of and control extracurricular activities, these 
85.19 	activities shall be self-sustaining with all expenses, except direct salary costs and indirect 
85.20 	costs of the use of school facilities, met by dues, admissions, or other student fund-raising 
85.21 	events. The general fund must reflect only those salaries directly related to and readily 
85.22 	identified with the activity and paid by public funds. Other revenues and expenditures for 
85.23 	extra curricular activities must be recorded according to the Manual for Activity Fund 
85.24 	Accounting. Extracurricular activities not under board control must have an annual 
85.25 	financial audit and must also be audited annually for compliance with this section.
85.26 	(d) If the board takes charge of and controls extracurricular activities, any or all 
85.27 	costs of these activities may be provided from school revenues and all revenues and 
85.28 	expenditures for these activities shall be recorded in the same manner as other revenues 
85.29 	and expenditures of the district.
85.30 	(e) If the board takes charge of and controls extracurricular activities, the teachers or 
85.31 	pupils in the district must not participate in such activity, nor shall the school name or any 
85.32 	allied name be used in connection therewith, except by consent and direction of the board.

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

86.1 	Sec. 51. Minnesota Statutes 2015 Supplement, section 124D.231, subdivision 2, 
86.2 	is amended to read:
86.3 		Subd. 2.Full-service community school program. (a) The commissioner shall 
86.4 	provide funding to eligible school sites to plan, implement, and improve full-service 
86.5 	community schools. Eligible school sites must meet one of the following criteria:
86.6 	(1) the school is on a development plan for continuous improvement under section 
86.7 	120B.35, subdivision 2; or
86.8 	(2) the school is in a district that has an achievement and integration plan approved 
86.9 	by the commissioner of education under sections 124D.861 and 124D.862.
86.10 	(b) An eligible school site may receive up to $100,000 annually. School sites 
86.11 	receiving funding under this section shall hire or contract with a partner agency to hire a 
86.12 	site coordinator to coordinate services at each covered school site.
86.13 	(c) Implementation funding of up to $20,000 must be available for up to one year for 
86.14 	planning for school sites. At the end of this period, the school must submit a full-service 
86.15 	community school plan, pursuant to paragraph (g).
86.16 	(d) The commissioner shall dispense the funds to schools with significant populations 
86.17 	of students receiving free or reduced-price lunches. Schools with significant homeless and 
86.18 	highly mobile students shall also be a priority. The commissioner must also dispense the 
86.19 	funds in a manner to ensure equity among urban, suburban, and greater Minnesota schools.
86.20 	(e) A school site must establish a school leadership team responsible for developing 
86.21 	school-specific programming goals, assessing program needs, and overseeing the process 
86.22 	of implementing expanded programming at each covered site. The school leadership team 
86.23 	shall have between 12 to 15 members and shall meet the following requirements:
86.24 	(1) at least 30 percent of the members are parents and 30 percent of the members 
86.25 	are teachers at the school site and must include the school principal and representatives 
86.26 	from partner agencies; and
86.27 	(2) the school leadership team must be responsible for overseeing the baseline 
86.28 	analyses under paragraph (f). A school leadership team must have ongoing responsibility 
86.29 	for monitoring the development and implementation of full-service community school 
86.30 	operations and programming at the school site and shall issue recommendations to schools 
86.31 	on a regular basis and summarized in an annual report. These reports shall also be made 
86.32 	available to the public at the school site and on school and district Web sites.
86.33 	(f) School sites must complete a baseline analysis prior to beginning programming 
86.34 	as a full-service community school. The analysis shall include:
86.35 	(1) a baseline analysis of needs at the school site, led by the school leadership team, 
86.36 	which shall include the following elements:
87.1 	(i) identification of challenges facing the school;
87.2 	(ii) analysis of the student body, including:
87.3 	(A) number and percentage of students with disabilities and needs of these students;
87.4 	(B) number and percentage of students who are English learners and the needs of 
87.5 	these students;
87.6 	(C) number of students who are homeless or highly mobile; and
87.7 	(D) number and percentage of students receiving free or reduced-price lunch and the 
87.8 	needs of these students;
87.9 	(iii) analysis of enrollment and retention rates for students with disabilities, 
87.10 	English learners, homeless and highly mobile students, and students receiving free or 
87.11 	reduced-price lunch;
87.12 	(iv) analysis of suspension and expulsion data, including the justification for such 
87.13 	disciplinary actions and the degree to which particular populations, including, but not 
87.14 	limited to, students of color, students with disabilities, students who are English learners, 
87.15 	and students receiving free or reduced-price lunch are represented among students subject 
87.16 	to such actions;
87.17 	(v) analysis of school achievement data disaggregated by major demographic 
87.18 	categories, including, but not limited to, race, ethnicity, English learner status, disability 
87.19 	status, and free or reduced-price lunch status;
87.20 	(vi) analysis of current parent engagement strategies and their success; and
87.21 	(vii) evaluation of the need for and availability of wraparound services, including, 
87.22 	but not limited to:
87.23 	(A) mechanisms for meeting students' social, emotional, and physical health needs, 
87.24 	which may include coordination of existing services as well as the development of new 
87.25 	services based on student needs; and
87.26 	(B) strategies to create a safe and secure school environment and improve school 
87.27 	climate and discipline, such as implementing a system of positive behavioral supports, and 
87.28 	taking additional steps to eliminate bullying;
87.29 	(2) a baseline analysis of community assets and a strategic plan for utilizing 
87.30 	and aligning identified assets. This analysis should include, but is not limited to, a 
87.31 	documentation of individuals in the community, faith-based organizations, community and 
87.32 	neighborhood associations, colleges, hospitals, libraries, businesses, and social service 
87.33 	agencies who may be able to provide support and resources; and
87.34 	(3) a baseline analysis of needs in the community surrounding the school, led by 
87.35 	the school leadership team, including, but not limited to:
88.1 	(i) the need for high-quality, full-day child care and early childhood education 
88.2 	programs;
88.3 	(ii) the need for physical and mental health care services for children and adults; and
88.4 	(iii) the need for job training and other adult education programming.
88.5 	(g) Each school site receiving funding under this section must establish at least two 
88.6 	of the following types of programming:
88.7 	(1) early childhood:
88.8 	(i) early childhood education; and
88.9 	(ii) child care services;
88.10 	(2) academic:
88.11 	(i) academic support and enrichment activities, including expanded learning time;
88.12 	(ii) summer or after-school enrichment and learning experiences;
88.13 	(iii) job training, internship opportunities, and career counseling services;
88.14 	(iv) programs that provide assistance to students who have been truant, suspended, 
88.15 	or expelled; and
88.16 	(v) specialized instructional support services;
88.17 	(3) parental involvement:
88.18 	(i) programs that promote parental involvement and family literacy, including the 
88.19 	Reading First and Early Reading First programs authorized under part B of title I of the 
88.20 	Elementary and Secondary Education Act of 1965, United States Code, title 20, section 
88.21 	6361, et seq.;
88.22 	(ii) parent leadership development activities; and
88.23 	(iii) parenting education activities;
88.24 	(4) mental and physical health:
88.25 	(i) mentoring and other youth development programs, including peer mentoring and 
88.26 	conflict mediation;
88.27 	(ii) juvenile crime prevention and rehabilitation programs;
88.28 	(iii) home visitation services by teachers and other professionals;
88.29 	(iv) developmentally appropriate physical education;
88.30 	(v) nutrition services;
88.31 	(vi) primary health and dental care; and
88.32 	(vii) mental health counseling services;
88.33 	(5) community involvement:
88.34 	(i) service and service-learning opportunities;
88.35 	(ii) adult education, including instruction in English as a second language; and
88.36 	(iii) homeless prevention services;
89.1 	(6) positive discipline practices; and
89.2 	(7) other programming designed to meet school and community needs identified in 
89.3 	the baseline analysis and reflected in the full-service community school plan.
89.4 	(h) The school leadership team at each school site must develop a full-service 
89.5 	community school plan detailing the steps the school leadership team will take, including:
89.6 	(1) timely establishment and consistent operation of the school leadership team;
89.7 	(2) maintenance of attendance records in all programming components;
89.8 	(3) maintenance of measurable data showing annual participation and the impact 
89.9 	of programming on the participating children and adults;
89.10 	(4) documentation of meaningful and sustained collaboration between the school 
89.11 	and community stakeholders, including local governmental units, civic engagement 
89.12 	organizations, businesses, and social service providers;
89.13 	(5) establishment and maintenance of partnerships with institutions, such as 
89.14 	universities, hospitals, museums, or not-for-profit community organizations to further the 
89.15 	development and implementation of community school programming;
89.16 	(6) ensuring compliance with the district nondiscrimination policy; and
89.17 	(7) plan for school leadership team development.

89.18 	Sec. 52. Minnesota Statutes 2014, section 124D.59, is amended by adding a 
89.19 	subdivision to read:
89.20 		Subd. 9.English learner data. When data on English learners are reported for 
89.21 	purposes of educational accountability, English learner data must include all pupils 
89.22 	enrolled in a Minnesota public school course or program who are currently or were 
89.23 	previously counted as English learners under this section.

89.24 	EFFECTIVE DATE. This section is effective for the 2017-2018 school year and 
89.25 	later.

89.26 	Sec. 53. Minnesota Statutes 2015 Supplement, section 124D.73, subdivision 4, is 
89.27 	amended to read:
89.28 		Subd. 4.Participating school; American Indian school. "Participating school" 
89.29 	and "American Indian school" mean a school that:
89.30 	(1) is not operated by a school district; and
89.31 	(2) is eligible for a grant under federal Title VII VI of the Elementary and Secondary 
89.32 	Education Act for the education of American Indian children.

89.33 	Sec. 54. Minnesota Statutes 2014, section 124D.861, subdivision 1, is amended to read:
90.1 		Subdivision 1.Program to close the academic achievement and opportunity gap; 
90.2 	revenue uses. (a) The "Achievement and Integration for Minnesota" program is established 
90.3 	to pursue racial and economic integration and increase student academic achievement, 
90.4 	create equitable educational opportunities, and reduce academic disparities based on 
90.5 	students' diverse racial, ethnic, and economic backgrounds in Minnesota public schools.
90.6 	(b) For purposes of this section and section 124D.862, "eligible district" means a 
90.7 	district required to submit a plan to the commissioner under Minnesota Rules governing 
90.8 	school desegregation and integration, or be a member of a multidistrict integration 
90.9 	collaborative that files a plan with the commissioner has the meaning given in subdivision 
90.10 	1a.
90.11 	(c) Eligible districts must use the revenue under section 124D.862 to pursue 
90.12 	academic achievement and racial and economic integration through: (1) integrated 
90.13 	learning environments that prepare all students to be effective citizens and enhance 
90.14 	social cohesion; (2) policies and curricula and trained instructors, administrators, school 
90.15 	counselors, and other advocates to support and enhance integrated learning environments 
90.16 	under this section, including through magnet schools, innovative, research-based 
90.17 	instruction, differentiated instruction, and targeted interventions to improve achievement; 
90.18 	and (3) rigorous career and college readiness programs for underserved student 
90.19 	populations, consistent with section 120B.30, subdivision 1; integrated learning 
90.20 	environments to increase student academic achievement; cultural fluency, competency, 
90.21 	and interaction; graduation and educational attainment rates; and parent involvement.

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

90.23 	Sec. 55. Minnesota Statutes 2014, section 124D.861, is amended by adding a 
90.24 	subdivision to read:
90.25 		Subd. 1a.Definitions. (a) "Racially identifiable school within a district" means a 
90.26 	school where the enrollment of protected students at the school within a district is more 
90.27 	than 20 percentage points above the enrollment of protected students in the entire district 
90.28 	for the grade levels served by that school.
90.29 	(b) "Racially isolated school district" means a district where the districtwide 
90.30 	enrollment of protected students exceeds the enrollment of protected students of any 
90.31 	adjoining district by more than 20 percentage points.
90.32 	(c) "School" means a site in a public school district serving any of kindergarten 
90.33 	through grade 12. For purposes of this section and section 124D.862, school does not mean:
90.34 	(1) a charter school under chapter 124E;
90.35 	(2) an area learning center under section 123A.05;
91.1 	(3) a public alternative program under section 126C.05, subdivision 15;
91.2 	(4) a contracted alternative program under section 124D.69;
91.3 	(5) a school site specifically designed to address limited English proficiency;
91.4 	(6) a school site specifically designed to address the needs of students with an 
91.5 	individualized education program (IEP); or
91.6 	(7) a secure or nonsecure treatment facility licensed by the Department of Human 
91.7 	Services or the Department of Corrections.
91.8 	(d) "Eligible district" means:
91.9 	(1) a racially isolated independent, common, or special school district; 
91.10 	(2) an adjoining, independent, common, or special school district that files a plan 
91.11 	with the commissioner; or 
91.12 	(3) an independent, common, or special school district that is a member of a 
91.13 	multidistrict integration collaborative that files a plan with the commissioner.

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

91.15 	Sec. 56. Minnesota Statutes 2014, section 124D.861, as amended by Laws 2015, 
91.16 	chapter 21, article 1, section 20, is amended to read:
91.17 	124D.861 ACHIEVEMENT AND INTEGRATION FOR MINNESOTA.
91.18 		Subdivision 1.Program to close the academic achievement and opportunity gap; 
91.19 	revenue uses. (a) The "Achievement and Integration for Minnesota" program is established 
91.20 	to pursue racial and economic integration and increase student academic achievement, 
91.21 	create equitable educational opportunities, and reduce academic disparities based on 
91.22 	students' diverse racial, ethnic, and economic backgrounds in Minnesota public schools.
91.23 	(b) For purposes of this section and section 124D.862, "eligible district" means a 
91.24 	district required to submit a plan to the commissioner under Minnesota Rules governing 
91.25 	school desegregation and integration, or be a member of a multidistrict integration 
91.26 	collaborative that files a plan with the commissioner.
91.27 	(c) Eligible districts must use the revenue under section 124D.862 to pursue 
91.28 	academic achievement and racial and economic integration through: 
91.29 	(1) integrated learning environments that give students improved and equitable 
91.30 	access to effective and more diverse teachers, prepare all students to be effective citizens,
91.31 	and enhance social cohesion; 
91.32 	(2) policies and curricula and trained instructors, administrators, school counselors, 
91.33 	and other advocates to support and enhance integrated learning environments under 
91.34 	this section, including through magnet schools, innovative, research-based instruction, 
92.1 	differentiated instruction, improved and equitable access to effective and diverse teachers, 
92.2 	and targeted interventions to improve achievement; and 
92.3 	(3) rigorous career and college readiness programs and effective and more diverse 
92.4 	instructors for underserved student populations, consistent with section 120B.30, 
92.5 	subdivision 1; integrated learning environments to increase student academic achievement; 
92.6 	cultural fluency, competency, and interaction; graduation and educational attainment rates; 
92.7 	and parent involvement.
92.8 	(d) Consistent with paragraph (c), eligible districts may adopt policies to increase the 
92.9 	diversity of district teachers and administrators using the revenue under section 124D.862 
92.10 	for recruitment, retention, and hiring incentives or additional compensation.
92.11 		Subd. 2.Plan implementation; components. (a) The school board of each eligible 
92.12 	district must formally develop and implement a long-term plan under this section. The plan 
92.13 	must be incorporated into the district's comprehensive strategic plan under section 120B.11. 
92.14 	Plan components may include: innovative and integrated prekindergarten through grade 12 
92.15 	learning environments that offer students school enrollment choices; family engagement 
92.16 	initiatives that involve families in their students' academic life and success; professional 
92.17 	development opportunities for teachers and administrators focused on improving the 
92.18 	academic achievement of all students, including teachers and administrators who are 
92.19 	members of populations underrepresented among the licensed teachers or administrators 
92.20 	in the district or school and who reflect the diversity of students under section 120B.35, 
92.21 	subdivision 3, paragraph (b), clause (2), who are enrolled in the district or school; 
92.22 	increased programmatic opportunities and effective and more diverse instructors focused 
92.23 	on rigor and college and career readiness for underserved students, including students 
92.24 	enrolled in alternative learning centers under section 123A.05, public alternative programs 
92.25 	under section 126C.05, subdivision 15, and contract alternative programs under section 
92.26 	124D.69, among other underserved students; or recruitment and retention of teachers and 
92.27 	administrators with diverse racial and ethnic backgrounds. The plan must contain goals for: 
92.28 	(1) reducing the disparities in academic achievement and in equitable access to 
92.29 	effective and more diverse teachers among all students and specific categories of students 
92.30 	under section 120B.35, subdivision 3, paragraph (b), excluding the student categories of 
92.31 	gender, disability, and English learners; and 
92.32 	(2) increasing racial and economic diversity and integration in schools and districts.
92.33 	(b) Among other requirements, an eligible district must implement effective, 
92.34 	research-based interventions that include formative assessment practices to reduce the 
92.35 	disparities in student academic performance among the specific categories of students as 
93.1 	measured by student progress and growth on state reading and math assessments and 
93.2 	as aligned with section 120B.11.
93.3 	(c) Eligible districts must create efficiencies and eliminate duplicative programs 
93.4 	and services under this section, which may include forming collaborations or a single, 
93.5 	seven-county metropolitan areawide partnership of eligible districts for this purpose.
93.6 		Subd. 3.Public engagement; progress report and budget process. (a) To 
93.7 	receive revenue under section 124D.862, the school board of an eligible district must 
93.8 	incorporate school and district plan components under section 120B.11 into the district's 
93.9 	comprehensive integration plan.
93.10 	(b) A school board must hold at least one formal annual hearing to publicly report 
93.11 	its progress in realizing the goals identified in its plan. At the hearing, the board must 
93.12 	provide the public with longitudinal data demonstrating district and school progress in 
93.13 	reducing the disparities in student academic performance among the specified categories 
93.14 	of students, in improving students' equitable access to effective and more diverse teachers,
93.15 	and in realizing racial and economic diversity and integration, consistent with the district 
93.16 	plan and the measures in paragraph (a). At least 30 days before the formal hearing under 
93.17 	this paragraph, the board must post its plan, its preliminary analysis, relevant student 
93.18 	performance data, and other longitudinal data on the district's Web site. A district must 
93.19 	hold one hearing to meet the hearing requirements of both this section and section 120B.11.
93.20 	(c) The district must submit a detailed budget to the commissioner by March 15 in 
93.21 	the year before it implements its plan. The commissioner must review, and approve or 
93.22 	disapprove the district's budget by June 1 of that year.
93.23 	(d) The longitudinal data required under paragraph (b) must be based on student 
93.24 	growth and progress in reading and mathematics, as defined under section 120B.30, 
93.25 	subdivision 1, and student performance data and achievement reports from fully adaptive 
93.26 	reading and mathematics assessments for grades 3 through 7 beginning in the 2015-2016 
93.27 	school year under section 120B.30, subdivision 1a, and either (i) school enrollment 
93.28 	choices, (ii) the number of world language proficiency or high achievement certificates 
93.29 	awarded under section 120B.022, subdivision 1a, or the number of state bilingual and 
93.30 	multilingual seals issued under section 120B.022, subdivision 1b, or (iii) school safety 
93.31 	and students' engagement and connection at school under section 120B.35, subdivision 3, 
93.32 	paragraph (d). Additional longitudinal data may be based on: students' progress toward 
93.33 	career and college readiness under section 120B.30, subdivision 1; or rigorous coursework 
93.34 	completed under section 120B.35, subdivision 3, paragraph (c), clause (2).
93.35 		Subd. 4.Timeline and implementation. A board must approve its plan and submit 
93.36 	it to the department by March 15. If a district that is part of a multidistrict council applies 
94.1 	for revenue for a plan, the individual district shall not receive revenue unless it ratifies 
94.2 	the plan adopted by the multidistrict council. Each plan has a term of three years. For 
94.3 	the 2014-2015 school year, an eligible district under this section must submit its plan to 
94.4 	the commissioner for review by March 15, 2014. For the 2013-2014 school year only, 
94.5 	an eligible district may continue to implement its current plan until the commissioner 
94.6 	approves a new plan under this section.
94.7 		Subd. 5.Evaluation. The commissioner must evaluate the efficacy of district 
94.8 	plans in reducing the disparities in student academic performance among the specified 
94.9 	categories of students within the district, improving students' equitable access to effective 
94.10 	and diverse teachers, and in realizing racial and economic diversity and integration. 
94.11 	The commissioner shall report evaluation results to the kindergarten through grade 12 
94.12 	education committees of the legislature by February 1 of every odd-numbered year.

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

94.15 	Sec. 57. [124D.8957] PREKINDERGARTEN THROUGH GRADE 12 
94.16 	PARENTAL RIGHTS CODED ELSEWHERE.
94.17 		Subdivision 1.Scope. The sections referred to in subdivisions 2 to 30 are codified 
94.18 	outside this section. Those sections include many but not all the sections governing 
94.19 	parental rights related to topics in prekindergarten through grade 12 education.
94.20 		Subd. 2.Compulsory instruction. Parental rights related to compulsory instruction, 
94.21 	including the right to withdraw a child from school; to receive notice related to transfer of 
94.22 	disciplinary records; to excuse a child from school for illnesses, appointments, or religious 
94.23 	events; and the right of noncustodial parents to access school records and conferences, 
94.24 	among other rights, are governed by section 120A.22.
94.25 		Subd. 3.Longitudinal data. The parental right to annual summary longitudinal 
94.26 	performance and progress data is governed by section 120B.31.
94.27 		Subd. 4.Antibullying. Parental rights related to school district antibullying 
94.28 	policies, including the right to be involved in developing the policies, the right to be 
94.29 	notified of incidents of prohibited conduct, and the right to be informed of data practices 
94.30 	laws, are governed by section 121A.031.
94.31 		Subd. 5.Student discipline policies. The parental right to notice in student 
94.32 	discipline policies of rights under the Safe and Supportive Minnesota Schools Act is 
94.33 	governed by section 121A.0311.
94.34 		Subd. 6.Early childhood development screening. Parental rights to certain notice 
94.35 	requirements related to early childhood development screening and to receive results of 
95.1 	early childhood development screening are governed by section 121A.17. The parental 
95.2 	right to provide consent before individual screening data may be disclosed to a school 
95.3 	district is governed by section 121A.18.
95.4 		Subd. 7.Chemical abuse. The parental right to be informed of a reported case of 
95.5 	chemical abuse by a minor student is governed by section 121A.26.
95.6 		Subd. 8.Pesticides. The parental right to be notified regarding the use of pesticides 
95.7 	at a school is governed by the Janet B. Johnson Parents' Right-to-Know Act under section 
95.8 	121A.30.
95.9 		Subd. 9.Student dismissal. The parental right to notice and a meeting regarding 
95.10 	the removal of a student for more than ten days is governed by section 121A.45.
95.11 		Subd. 10.Exclusion and expulsion. The parental right to be included in exclusion 
95.12 	or expulsion hearing procedures, including access to records, ability to testify and present 
95.13 	evidence, and inclusion in the student's readmission plan, is governed by section 121A.47.
95.14 		Subd. 11.Exclusion and expulsion appeal. The parental right to notice of the right 
95.15 	to appeal an exclusion or expulsion decision is governed by section 121A.49.
95.16 		Subd. 12.Reinstatement after termination of dismissal. The parental right to 
95.17 	notice of a student's right to be reinstated after the termination of dismissal is governed 
95.18 	by section 121A.54.
95.19 		Subd. 13.Interdistrict cooperation. The parental right to notice of an 
95.20 	informational school board meeting relating to discontinuing interdistrict cooperation 
95.21 	is governed by section 123A.32.
95.22 		Subd. 14.Background checks. The parental right to notice of a school's 
95.23 	background check policy for hiring teachers is governed by section 123B.03.
95.24 		Subd. 15.Textbook fees. The parental right to notice of a school board's policy to 
95.25 	charge fees for textbooks lost or destroyed by students is governed by section 123B.37.
95.26 		Subd. 16.Transportation privileges. The parental right to surrender a student's 
95.27 	privilege to receive transportation services from a school district is governed by section 
95.28 	123B.88.
95.29 		Subd. 17.Nonresident district policies. The parental right to receive notice of: a 
95.30 	decision on an application by a student to attend school in a nonresident district; the 
95.31 	transportation policies of the nonresident district; and the right to be reimbursed for costs 
95.32 	of transportation to the nonresident district's border are governed by section 124D.03.
95.33 		Subd. 18.Out-of-state districts. Under section 124D.04, the parental rights related 
95.34 	to a student attending a nonresident district under section 124D.03 apply to a student 
95.35 	attending an out-of-state district.
96.1 		Subd. 19.Free or reduced-price lunch eligibility. The parental right to opt a child 
96.2 	out of disclosing a child's eligibility for free or reduced-price lunch to the Department of 
96.3 	Education and the Department of Human Services is governed by section 124D.1115.
96.4 		Subd. 20.Learning year programs. The parental right to notice of optional 
96.5 	learning year programs is governed by section 124D.128.
96.6 		Subd. 21.English learners programs. Parental rights related to student enrollment 
96.7 	in programs for English learners, including notice, withdrawal, and parental involvement, 
96.8 	are governed by section 124D.60.
96.9 		Subd. 22.Charter school transportation. The parental right to receive 
96.10 	pupil transportation information from the charter school or school district providing 
96.11 	transportation services to a charter school student is governed by section 123B.88.
96.12 		Subd. 23.Services for children with disabilities. The parental right to be included 
96.13 	in determining the appropriate and necessary services for students with disabilities is 
96.14 	governed by section 125A.027.
96.15 		Subd. 24.Data on children with disabilities. The parental right to notice and 
96.16 	involvement regarding online reporting of data related to children with disabilities is 
96.17 	governed by section 125A.085.
96.18 		Subd. 25.Special education alternative dispute resolution. Parental rights 
96.19 	regarding notice, participation, and due process related to special education alternative 
96.20 	dispute resolution procedures are governed by section 125A.091.
96.21 		Subd. 26.Third-party reimbursement for children with disabilities. The 
96.22 	parental right to notice of a school district seeking reimbursement from medical assistance 
96.23 	or MinnesotaCare for services rendered to a student with a disability is governed by 
96.24 	section 125A.21.
96.25 		Subd. 27.Services provided to children with disabilities. Parental rights 
96.26 	related to services provided to students eligible for Part C services under the Individuals 
96.27 	with Disabilities Education Act and the right to receive written materials regarding the 
96.28 	implementation of Part C services are governed by sections 125A.42 and 125A.48. The 
96.29 	parental right to use mediation to resolve disputes under section 125A.42 is governed 
96.30 	by section 125A.43.
96.31 		Subd. 28.Minnesota State Academies discharge. The parental right to notice of a 
96.32 	student's discharge from the Minnesota State Academies is governed by section 125A.68.
96.33 		Subd. 29.Education records for military children. The parental right to education 
96.34 	records under the Interstate Compact on Educational Opportunity for Military Children 
96.35 	is governed by section 127A.85.
97.1 		Subd. 30.Appeal adverse school board decision. The parental right to appeal a 
97.2 	school board decision adversely affecting an academic program of an enrolled student is 
97.3 	governed by section 129C.10, subdivision 36.

97.4 	Sec. 58. Minnesota Statutes 2014, section 124D.896, is amended to read:
97.5 	124D.896 DESEGREGATION/INTEGRATION AND INCLUSIVE 
97.6 	EDUCATION RULES.
97.7 	(a) The commissioner shall propose rules relating to desegregation/integration and 
97.8 	inclusive education, consistent with sections 124D.861 and 124D.862.
97.9 	(b) In adopting a rule related to school desegregation/integration, the commissioner 
97.10 	shall address the need for equal educational opportunities for all students and racial 
97.11 	balance as defined by the commissioner.
97.12 	(c) The commissioner must not adopt or enforce by rule a definition of "eligible 
97.13 	district" that expands or conflicts with the statutory definition of eligible district.

97.14 	EFFECTIVE DATE. This section is effective the day following enactment.

97.15 	Sec. 59. [125B.27] STUDENT-USER PRIVACY IN EDUCATION RIGHTS.
97.16 		Subdivision 1.Definitions. (a) The definitions in this subdivision and section 13.32, 
97.17 	subdivision 1, apply to this section.
97.18 	(b) "Online educational service" means a Web site, online service or application, 
97.19 	or mobile application accessible to a student or the student's parent or legal guardian 
97.20 	via the Internet for school purposes. An online educational service includes a cloud 
97.21 	computing service.
97.22 	(c) "Operator" means a person, to the extent a person operates in this capacity, who 
97.23 	operates an online educational service with actual knowledge that it is used primarily for 
97.24 	school purposes and is designed and marketed for these purposes. An operator includes 
97.25 	a vendor.
97.26 	(d) "Protected information" means personally identifiable information or materials 
97.27 	or information that is linked to personally identifiable information or materials, in any 
97.28 	media or format that is not publicly available, and:
97.29 	(1) is created or provided by a student or the student's parent or legal guardian to 
97.30 	an operator in the course of using the operator's site, service, or application for school 
97.31 	purposes;
97.32 	(2) is created or provided by an employee or agent of the school to an operator in the 
97.33 	course of using the operator's site, service, or application for school purposes; or
98.1 	(3) is gathered by an operator through operating an online educational service 
98.2 	and personally identifies a student, including but not limited to such information in the 
98.3 	student's educational record or e-mail as first and last name, home address, telephone 
98.4 	number, e-mail address, other information that allows physical or online contact, discipline 
98.5 	records, test results, special education data, juvenile records, grades, evaluations, criminal 
98.6 	records, health records, Social Security number, biometric information, disabilities, 
98.7 	socioeconomic information, food purchases, political affiliations, religious information, 
98.8 	text messages, documents, student identifiers, search activity, photos, voice recordings, or 
98.9 	geolocation information.
98.10 	(e) "School purposes" means purposes that (1) are directed by or customarily take 
98.11 	place at the direction of the school, teacher, or school district or help administer school 
98.12 	activities, including instruction in the classroom or at home, administrative activities, and 
98.13 	collaboration between students, school personnel, or parents or legal guardians, or (2) 
98.14 	are for the use and benefit of the school.
98.15 	(f) "Student" means a student in prekindergarten through grade 12.
98.16 	(g) "Vendor" means a person who enters into a contract with a school to provide an 
98.17 	online educational service.
98.18 	(h) "Targeted advertising" means presenting advertisements to a student where 
98.19 	the advertisement is selected based on information obtained or inferred over time from 
98.20 	that student's online behavior, use of applications, or covered information. It does not 
98.21 	include advertising to a student at an online location based upon that student's current 
98.22 	visit to that location, or in response to that student's request for information or feedback, 
98.23 	without retaining that student's online activities or requests over time for the purpose of 
98.24 	targeting subsequent ads.
98.25 		Subd. 2.Prohibited activities; targeted advertising; creating student profiles; 
98.26 	sale or unauthorized disclosure of information.  (a) An operator must not engage in 
98.27 	any of the following activities:
98.28 	(1)(i) targeted advertising on the operator's online educational service; or
98.29 	(ii) targeted advertising on any other site, service, or application when the targeted 
98.30 	advertising is based upon information, including protected information and unique 
98.31 	identifiers, that the operator acquired or created because a student used that operator's 
98.32 	online educational service;
98.33 	(2) gather, use, or share information, including persistent unique identifiers, acquired 
98.34 	or created by the operator's online educational service, to create a profile about a student, 
98.35 	except to further school purposes. "Create a profile" does not include collecting or 
99.1 	retaining account information that remains under the control of the student, the student's 
99.2 	parent or guardian, or a school offering any grades kindergarten through grade 12;
99.3 	(3) sell a student's information, including protected information. This prohibition 
99.4 	does not apply to the purchase, merger, or other type of acquisition of an operator by 
99.5 	another person, if the operator or successor remains subject to this section with respect to 
99.6 	previously acquired student information or to national assessment providers if the provider 
99.7 	obtains the express written consent of the parent or student, given in response to clear and 
99.8 	conspicuous notice, solely to provide access to employment, educational scholarships or 
99.9 	financial aid, or postsecondary educational opportunities; or
99.10 	(4) disclose protected information, unless the disclosure:
99.11 	(i) is made to further the educational purpose of the site, service, or application, 
99.12 	provided the recipient of the protected information must not further disclose the 
99.13 	information unless to allow or improve operability or functionality of the operator's online 
99.14 	educational service;
99.15 	(ii) is legally required to comply with subdivision 3;
99.16 	(iii) is made to ensure legal and regulatory compliance, to respond to or participate 
99.17 	in a judicial process, or to protect the safety of users or others or the security or integrity 
99.18 	of the site;
99.19 	(iv) is for a school, educational, or employment purpose and at the request of the 
99.20 	student or the student's parent or guardian, provided the information is not used or further 
99.21 	disclosed for any other purposes; or
99.22 	(v) is made under a contract between the operator and a service provider. A contract 
99.23 	must prohibit the service provider from using protected information for any purpose 
99.24 	other than providing the contracted service to, or on behalf of, the operator; prohibit the 
99.25 	service provider from disclosing protected information provided by the operator to third 
99.26 	parties; and require the service provider to implement and maintain reasonable security 
99.27 	procedures and practices under subdivision 3.
99.28 	(b) This subdivision does not prohibit the operator from using information to 
99.29 	maintain, develop, support, improve, or diagnose the operator's site, service, or application.
99.30 		Subd. 3.Security procedures and practices. An operator shall:
99.31 	(1) implement and maintain reasonable security procedures and practices appropriate 
99.32 	to the nature of the protected information and designed to protect that information from 
99.33 	unauthorized access, destruction, use, modification, or disclosure; and
99.34 	(2) delete a student's protected information within a reasonable period of time and in 
99.35 	any case within 60 days if the school asks to delete the data under the control of the school.
100.1 		Subd. 4.Permissible disclosures. Notwithstanding subdivision 2, paragraph (a), 
100.2 	clause (4), an operator may use or disclose a student's protected information under the 
100.3 	following circumstances:
100.4 	(1) if other provisions of federal or state law require the operator to disclose the 
100.5 	information and the operator complies with the requirements of federal or state law in 
100.6 	protecting and disclosing that information;
100.7 	(2) as long as no covered information is used for advertising or to create a profile on 
100.8 	the student for purposes other than educational purposes or for legitimate research purposes:
100.9 	(i) as required by state or federal law and subject to the restrictions under that law; or
100.10 	(ii) as allowed by state or federal law and to further educational purposes or 
100.11 	postsecondary educational purposes; and
100.12 	(3) to a state or local educational agency, including schools and school districts, for 
100.13 	school purposes as permitted by state or federal law.
100.14 		Subd. 5.Use of information by operator. This section does not prohibit an 
100.15 	operator from:
100.16 	(1) using protected information within the operator's site, service, or application or 
100.17 	other sites, services, or applications owned by the operator to improve educational products;
100.18 	(2) using protected information that is not associated with an identified student to 
100.19 	demonstrate the effectiveness of the operator's products or services, including marketing;
100.20 	(3) sharing aggregate information that does not directly, indirectly, or in combination 
100.21 	with other information identify a student in order to develop or improve educational 
100.22 	sites, services, or applications;
100.23 	(4) using recommendation engines to recommend to a student either of the following:
100.24 	(i) additional content relating to an educational, other learning, or employment 
100.25 	opportunity purpose within an online site, service, or application if the recommendation is 
100.26 	not determined in whole or in part by payment or other consideration from a third party; or
100.27 	(ii) additional services relating to an educational, other learning, or employment 
100.28 	opportunity purpose within an online site, service, or application if the recommendation is 
100.29 	not determined in whole or in part by payment or other consideration from a third party; or
100.30 	(5) responding to a student's request for information or for feedback without the 
100.31 	information or response being determined in whole or in part by payment or other 
100.32 	consideration from a third party.
100.33 		Subd. 6.Certain activities not affected. (a) This section does not limit the 
100.34 	authority of a law enforcement agency to obtain information from an operator as 
100.35 	authorized by law or under a court order.
101.1 	(b) This section does not limit the ability of an operator to use student information, 
101.2 	including protected information, for adaptive learning or customized student learning 
101.3 	purposes.
101.4 	(c) This section does not apply to general audience Web sites, general audience 
101.5 	online services, general audience online applications, or general audience mobile 
101.6 	applications, even if log-in credentials created for an operator's online educational service 
101.7 	may be used to access those general audience Web sites, services, or applications.
101.8 	(d) This section does not limit Internet service providers from providing Internet 
101.9 	connectivity to schools or students and their families.
101.10 	(e) This section does not prohibit an operator of a Web site, online service, online 
101.11 	application, or mobile application from the general marketing of educational products to 
101.12 	parents or legal guardians so long as the marketing is not based on the use of protected 
101.13 	information obtained by the operator through the provision of services governed by this 
101.14 	section.
101.15 	(f) This section does not impose a duty upon a provider of an electronic store, gateway, 
101.16 	marketplace, or other means of purchasing or downloading software or applications to 
101.17 	review or enforce compliance with this section on those applications or software.
101.18 	(g) This section does not impose a duty on a provider of an interactive computer 
101.19 	service, as defined in United States Code, title 47, section 230, to review or enforce 
101.20 	compliance with this section by third-party content providers.
101.21 	(h) This section does not impede the ability of students to download, transfer, export, 
101.22 	or otherwise save or maintain their own data or documents.

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

101.25 	Sec. 60. Minnesota Statutes 2015 Supplement, section 127A.05, subdivision 6, is 
101.26 	amended to read:
101.27 		Subd. 6.Survey of districts. The commissioner of education shall survey the state's 
101.28 	school districts and teacher preparation programs and report to the education committees 
101.29 	of the legislature by February 1 of each odd-numbered year on the status of teacher early 
101.30 	retirement patterns, the access to effective and more diverse teachers who reflect the 
101.31 	students under section 120B.35, subdivision 3, paragraph (b), clause (2), enrolled in 
101.32 	a district or school, the teacher shortage, and the substitute teacher shortage, including 
101.33 	patterns and shortages in subject areas and the economic development regions of the state. 
101.34 	The report must also include: aggregate data on teachers' self-reported race and ethnicity; 
101.35 	data on how districts are making progress in hiring teachers and substitutes in the areas 
102.1 	of shortage; and a five-year projection of teacher demand for each district, taking into 
102.2 	account the students under section 120B.35, subdivision 3, paragraph (b), clause (2), 
102.3 	expected to enroll in the district during that five-year period.

102.4 	Sec. 61. [127A.053] STATE ADMINISTRATION OF STUDENT SURVEY 
102.5 	INSTRUMENTS GENERALLY PROHIBITED.
102.6 	Notwithstanding other law to the contrary, and with the exception of section 
102.7 	120B.35, subdivision 3, paragraph (d), the commissioner must not develop, coordinate, 
102.8 	assist with, or use a statewide student survey seeking information about a student's 
102.9 	activities, opinions, behaviors, or experiences related to substance abuse, tobacco use, 
102.10 	connections with family, healthy eating, high school students' gambling and sexual 
102.11 	activities, or out-of-school activities, among other topics.

102.12 	Sec. 62. Minnesota Statutes 2014, section 127A.095, is amended to read:
102.13 	127A.095 IMPLEMENTATION OF NO CHILD LEFT BEHIND ACT
102.14 	ELEMENTARY AND SECONDARY EDUCATION ACT.
102.15 		Subdivision 1.Continued implementation. The Department of Education shall 
102.16 	continue to implement the federal No Child Left Behind Act, Public Law 107-110, 
102.17 	Elementary and Secondary Education Act without interruption.
102.18 		Subd. 2.No Child Left Behind review. (a) The legislature intends to require 
102.19 	the Department of Education to conduct a comprehensive review of the consolidated 
102.20 	state plan the state submitted to the federal Department of Education to implement the 
102.21 	No Child Left Behind Act. The Minnesota Department of Education shall seek waivers 
102.22 	under paragraph (b). If the Department of Education is unable to obtain waivers under 
102.23 	paragraph (b), it should recommend in its report under paragraph (b) whether the state 
102.24 	should opt out of the No Child Left Behind Act.
102.25 	(b) The commissioner, by January 15, 2008, shall report to the house of 
102.26 	representatives and senate committees having jurisdiction over kindergarten through grade 
102.27 	12 education policy and finance whether the department has received approval from 
102.28 	the federal Department of Education to:
102.29 	(1) participate in the growth model pilot program;
102.30 	(2) exclude from sanctions schools that have not made adequate yearly progress due 
102.31 	solely to a subgroup of students with disabilities not testing at a proficient level;
102.32 	(3) identify a school as not making adequate yearly progress only after the school has 
102.33 	missed the adequate yearly progress targets in the same subgroup for two consecutive years;
103.1 	(4) determine when to hold schools accountable for including an English learner 
103.2 	in adequate yearly progress calculations;
103.3 	(5) allow a district not making adequate yearly progress to offer supplemental 
103.4 	educational services as an option before offering school choice;
103.5 	(6) allow a district not making adequate yearly progress to also be the supplemental 
103.6 	educational services provider;
103.7 	(7) allow the state to maintain a subgroup size to 40 for the purposes of calculating 
103.8 	adequate yearly progress for subgroups of English learners and subgroups of students 
103.9 	with disabilities; and
103.10 	(8) create flexibility to enable the state to define and identify highly qualified teachers.
103.11 		Subd. 3.Department of Management and Budget certification. If the federal 
103.12 	Department of Education does not transmit to the commissioner of education its approval 
103.13 	of the conditions in subdivision 2, paragraph (b), The commissioner of management and 
103.14 	budget shall certify and report to the legislature annually beginning January 1, 2008, the 
103.15 	amount of federal revenue, if any, that the federal government may withhold as a result 
103.16 	of a potential state decision to discontinue implementation of the No Child Left Behind 
103.17 	Act Elementary and Secondary Education Act. The report shall also specify the intended 
103.18 	purpose of the federal revenue and the amount of revenue that the federal government may 
103.19 	withhold from the state, each school district, and each charter school in each fiscal year.

103.20 	Sec. 63. Minnesota Statutes 2014, section 129C.10, subdivision 1, is amended to read:
103.21 		Subdivision 1.Governance. (a) The board of the Perpich Center for Arts Education 
103.22 	shall consist of 15 13 persons, one of whom must have served as a school administrator or 
103.23 	as an elected school board member, one of whom is a locally or regionally recognized 
103.24 	professional artist, one of whom is a secondary or postsecondary arts educator, and a 
103.25 	licensed secondary arts teacher and a licensed secondary teacher teaching a core academic 
103.26 	subject area, one of whom is a Crosswinds school employee, and one of whom is a Perpich 
103.27 	Center for Arts Education employee. The members of the board shall be appointed by 
103.28 	the governor with the advice and consent of the senate. At least one member must be 
103.29 	appointed from each congressional district.
103.30 	(b) A seven-member nominating committee composed of one member appointed 
103.31 	by the Minnesota Association of School Administrators, one member appointed by the 
103.32 	Minnesota State Arts Board, one member appointed by the Minnesota School Boards 
103.33 	Association, one member appointed by the Minnesota Music Educators Association, one 
103.34 	member appointed by the Arts Educators of Minnesota, one member appointed jointly by 
103.35 	the exclusive representatives of the employees of the Perpich Center for Arts Education, 
104.1 	all six appointees of whom are subject to the governor's approval, and one member 
104.2 	appointed by the governor shall meet at least 60 days before the date on which the next 
104.3 	expiring board member's term is set to expire or within 15 days of receiving notice of a 
104.4 	board vacancy occurring at a time other than at the end of a board member's term to 
104.5 	prepare and submit a list of recommended candidates to the governor for the governor 
104.6 	to consider when appointing members of the Perpich Center for Arts Education Board. 
104.7 	Board members' terms must be staggered, consistent with section 15.0575, subdivision 2.
104.8 	(c) All board members must complete board training requirements consistent with 
104.9 	section 127A.19.
104.10 	(d) The terms of existing board members expire on September 1, 2016, but board 
104.11 	members may continue to serve until the governor appoints their successors.

104.12 	EFFECTIVE DATE. This section is effective the day following final enactment 
104.13 	and applies to board member terms and appointments made after that date.

104.14 	Sec. 64. [129C.12] PUBLIC INFORMATION.
104.15 		Subdivision 1.Board minutes. The board must post the minutes of its meetings on 
104.16 	its official Web site and supplemental board materials, information, and budget documents 
104.17 	consistent with Minnesota Management and Budget financial management and reporting 
104.18 	requirements.
104.19 		Subd. 2.Annual report. Consistent with section 123B.10, requiring school boards 
104.20 	to annually publish financial information on the district's official Web site, the board 
104.21 	must prepare and post on its official Web site an annual report summarizing Perpich 
104.22 	Center finances and, consistent with section 120B.36, subdivision 1, requiring school 
104.23 	and district accountability data, also post on its official Web site longitudinal data on 
104.24 	student enrollment and students' congressional districts of residence, graduation rates, and 
104.25 	postgraduation student placements.
104.26 		Subd. 3.World's best workforce. Consistent with section 120B.11, governing the 
104.27 	world's best workforce, the board must prepare and post a comprehensive, long-term 
104.28 	strategic improvement plan and report plan strategies, activities, practices, and outcomes 
104.29 	on its official Web site.
104.30 		Subd. 4.Audit report. (a) The Perpich Center for Arts Education is subject to an 
104.31 	annual independent audit. The audit must be conducted in compliance with generally 
104.32 	accepted governmental auditing standards and the federal Single Audit Act, if applicable. 
104.33 	The legislative auditor or Department of Education may conduct financial, program, or 
104.34 	compliance audits, and may direct the Perpich Center for Arts Education to include any 
104.35 	additional items in its annual independent audit.
105.1 	(b) Upon approval from the Department of Education, the Perpich Center for Arts 
105.2 	Education may combine this audit with its required annual audit of the Crosswinds Arts 
105.3 	and Science School.
105.4 	(c) The Perpich Center for Arts Education must post its most recent audit on its 
105.5 	Web site.

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

105.7 	Sec. 65. Minnesota Statutes 2015 Supplement, section 136F.302, subdivision 1, 
105.8 	is amended to read:
105.9 		Subdivision 1.ACT college ready score; Minnesota Comprehensive Assessment 
105.10 	career and college-ready benchmarks. A state college or university maymust not 
105.11 	require an individual to take a remedial, noncredit course in a subject area if the individual 
105.12 	has received a college ready ACT score or met a career and college-ready Minnesota 
105.13 	Comprehensive Assessment benchmark in that subject area. Only the ACT scores an 
105.14 	individual received and the Minnesota Comprehensive Assessment benchmarks an 
105.15 	individual met in the previous five years are valid for purposes of this section. Each state 
105.16 	college and university must post notice of the exemption from remedial course taking on 
105.17 	its Web page explaining student course placement requirements.

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

105.20 	Sec. 66. [136F.3025] MINNESOTA COMPREHENSIVE ASSESSMENTS; 
105.21 	CAREER AND COLLEGE-READY BENCHMARKS.
105.22 	A state college or university must not require an individual to take a remedial, 
105.23 	noncredit course in a subject area if the individual met a career and college-ready Minnesota 
105.24 	Comprehensive Assessment benchmark in that subject area, consistent with section 
105.25 	120B.30, subdivision 1, paragraph (m). When notifying students and their families about 
105.26 	test results under section 120B.30, subdivision 1, paragraph (m), the commissioner shall 
105.27 	include a statement indicating that students who meet a career and college-ready Minnesota 
105.28 	Comprehensive Assessment benchmark are not required to take a remedial, noncredit 
105.29 	course at a Minnesota state college or university in the corresponding subject area.

105.30 	EFFECTIVE DATE. This section is effective for the 2018-2019 school year and 
105.31 	later.

106.1 	Sec. 67. [136F.361] CAREER AND TECHNICAL EDUCATION 
106.2 	CERTIFICATION AND LICENSURE.
106.3 	The Board of Trustees of the Minnesota State Colleges and Universities System, 
106.4 	consistent with section 122A.09, subdivision 10, paragraph (e), must provide an 
106.5 	alternative preparation program allowing individuals to be certified or licensed as a career 
106.6 	and technical education instructor or teacher able to teach career and technical education 
106.7 	courses offered by a school district or charter school. The Board of Trustees may locate 
106.8 	the first program in the seven county metropolitan area.

106.9 	EFFECTIVE DATE. This section is effective for the 2016-2017 academic year 
106.10 	and later.

106.11 	Sec. 68. Laws 2010, chapter 396, section 7, the effective date, is amended to read:

106.12 	EFFECTIVE DATE. This section is effective the day following final enactment, 
106.13 	including subdivision 3 which is effective through the 2020-2021 school year.

106.14 	Sec. 69. Laws 2012, chapter 263, section 1, as amended by Laws 2014, chapter 312, 
106.15 	article 15, section 24, is amended to read:
106.16 	Section 1. INNOVATIVE DELIVERY OF CAREER AND TECHNICAL 
106.17 	EDUCATION PROGRAMS AND SERVICES AND SHARING OF DISTRICT 
106.18 	RESOURCES; PILOT PROJECT.
 106.19 		Subdivision 1.Establishment; requirements for participation. (a) A pilot project
106.20 	program is established to improve student, career and college readiness, and school 
106.21 	outcomes by allowing groups of school districts to work together in partnership with local 
106.22 	and regional postsecondary institutions and programs, community institutions, and other 
106.23 	private, public, for-profit, and nonprofit workplace partners to:
106.24 	(1) provide innovative education programs and activities that integrate core 
106.25 	academic and career and technical subjects in students' programs of study through 
106.26 	coordinated secondary and postsecondary career and technical programs leading to an 
106.27 	industry certification or other credential;
106.28 	(2) provide embedded professional development for program participants;
106.29 	(3) use performance assessments in authentic settings to measure students' technical 
106.30 	skills and progress toward attaining an industry certification or other credential; and 
106.31 	(4) efficiently share district, institution, and workplace resources. The pilot project 
106.32 	may last until June 30, 2018, or for up to five years, whichever is less, except that 
107.1 	innovation partnerships formed during the period of the pilot project may continue past 
107.2 	June 30, 2018, with the agreement of the partnership members.
107.3 	(b) To participate in this pilot project program to improve student, career and college 
107.4 	readiness, and school outcomes, a group of two or more school districts must collaborate 
107.5 	with school staff and project partners and receive formal school board approval to form a 
107.6 	partnership. The partnership must develop a plan to provide challenging programmatic 
107.7 	options for students under paragraph (a), create professional development opportunities 
107.8 	for educators and other program participants, increase student engagement and connection 
107.9 	and challenging learning opportunities for diverse populations of students that are focused 
107.10 	on employability skills and technical, job-specific skills related to a specific career 
107.11 	pathway, or demonstrate efficiencies in delivering financial and other services needed to 
107.12 	realize plan goals and objectives. The plan must establish include:
107.13 	(1) collaborative educational goals and objectives;
107.14 	(2) strategies and processes to implement those goals and objectives, including a 
107.15 	budget process with periodic expenditure reviews;
107.16 	(3) valid and reliable measures, including performance assessments in authentic 
107.17 	settings and progress toward attaining an industry certification or other credential, among 
107.18 	other measures, to evaluate progress in realizing the goals and objectives;
107.19 	(4) an implementation timeline; and
107.20 	(5) other applicable conditions, regulations, responsibilities, duties, provisions, fee 
107.21 	schedules, and legal considerations needed to fully implement the plan.
107.22 	A partnership may invite additional districts or other participants under paragraph 
107.23 	(a) to join the partnership during the pilot project term after notifying the commissioner.
107.24 	(c) A partnership of interested districts must apply by February 1 of any year submit 
107.25 	an application to the education commissioner in the form and manner the commissioner 
107.26 	determines, consistent with the requirements of this section. The application must contain 
107.27 	the formal approval adopted by the school board in each district to participate in the plan.
107.28 	(d) Notwithstanding other law to the contrary, a participating school district under 
107.29 	this section continues to: receive revenue and maintain its taxation authority; be organized 
107.30 	and governed by an elected school board with general powers under Minnesota Statutes, 
107.31 	section 123B.02; and be subject to employment agreements under Minnesota Statutes, 
107.32 	chapter 122A, and Minnesota Statutes, section 179A.20; and district employees continue 
107.33 	to remain employees of the employing school district.
107.34 	(e) Participating districts must submit a biennial report by February 1 of each 
107.35 	odd-numbered year to the committees of the legislature with jurisdiction over kindergarten 
107.36 	through grade 12 education and the commissioner of education that includes performance 
108.1 	assessment, high school graduation, and career and technical certification data to show the 
108.2 	success of the partnership in preparing diverse populations of students for careers and jobs.
108.3 		Subd. 2.Commissioner's role. Interested groups of school districts must submit 
108.4 	a completed application to the commissioner by March 1 of in any year in the form and 
108.5 	manner determined by the commissioner. The education commissioner must convene 
108.6 	an advisory panel composed of a teacher appointed by Education Minnesota, a school 
108.7 	principal appointed by the Minnesota Association of Secondary School Principals, a 
108.8 	school board member appointed by the Minnesota School Boards Association, and a 
108.9 	school superintendent appointed by the Minnesota Association of School Administrators
108.10 	to advise the commissioner on applicants' qualifications to participate in this pilot project
108.11 	program. The commissioner may select up to six qualified applicants under subdivision 1 
108.12 	by April 1 of any year to participate in this pilot project, ensuring must ensure an equitable 
108.13 	geographical distribution of project program participants to the extent practicable. The 
108.14 	commissioner must select only those applicants that fully comply with the requirements in 
108.15 	subdivision 1. The commissioner must may terminate a project program participant that 
108.16 	fails to effectively implement the goals and objectives contained in its application and 
108.17 	according to its stated timeline.
108.18 		Subd. 3.Pilot project evaluation. Participating school districts must submit pilot 
108.19 	project data to the commissioner in the form and manner determined by the commissioner. 
108.20 	The education commissioner must analyze participating districts' progress in realizing 
108.21 	their educational goals and objectives to work together in providing innovative education 
108.22 	programs and activities and sharing resources. The commissioner must include the 
108.23 	analysis of best practices in a report to the legislative committees with jurisdiction over 
108.24 	kindergarten through grade 12 education finance and policy on the efficacy of this pilot 
108.25 	project. The commissioner shall submit an interim project report by February 1, 2016, and 
108.26 	must submit a final report to the legislature by February 1, 2019, recommending whether 
108.27 	or not to continue or expand the pilot project.

108.28 	EFFECTIVE DATE. (a) This section is effective the day following final enactment 
108.29 	and applies to applications submitted after that date.
108.30 	(b) Districts already approved for an innovation zone pilot project may continue to 
108.31 	operate under Laws 2012, chapter 263, section 1, as amended by Laws 2014, chapter 
108.32 	312, article 15, section 24.

108.33 	Sec. 70. Laws 2015, chapter 69, article 1, section 3, subdivision 28, is amended to read:

108.34
108.35	Subd. 28.Teacher Shortage Loan Forgiveness
 		200,000
		200,000
2,200,000
	
109.1 	For the loan forgiveness program under 
109.2 	Minnesota Statutes, section 136A.1791.
109.3 	The commissioner may use no more 
109.4 	than three percent of this appropriation 
109.5 	to administer the program under this 
109.6 	subdivision. The base for the program for 
109.7 	fiscal year 2018 and later is $200,000.

109.8 	EFFECTIVE DATE. This section is effective the day following final enactment, 
109.9 	and any unexpended funds in fiscal year 2017 do not cancel and remain available until 
109.10 	June 30, 2019.

109.11 	Sec. 71. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 
109.12 	2, is amended to read:
109.13 		Subd. 2.Alternative compensation. For alternative teacher compensation aid 
109.14 	under Minnesota Statutes, section 122A.415, subdivision 4:

109.15
109.16		$
	78,331,000
78,667,000
	.....
	2016
	
109.17
109.18		$
	87,147,000
89,049,000
	.....
	2017
	
109.19 	The 2016 appropriation includes $7,766,000 for 2015 and $70,565,000 $70,901,000
109.20 	for 2016.
109.21 	The 2017 appropriation includes $7,840,000 $7,876,000 for 2016 and $79,307,000
109.22 	$81,173,000 for 2017.

109.23 	Sec. 72. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 
109.24 	6, is amended to read:
109.25 		Subd. 6.Reading Corps. For grants to ServeMinnesota for the Minnesota Reading 
109.26 	Corps under Minnesota Statutes, section 124D.42, subdivision 8:

109.27		$
	6,125,000
	.....
	2016
	
109.28
109.29		$
	6,125,000
7,625,000
	.....
	2017
	
109.30 	Any balance in the first year does not cancel but is available in the second year through 
109.31 	June 30, 2019. The base appropriation for fiscal year 2018 and later years is $5,625,000.

109.32 	Sec. 73. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 
109.33 	12, is amended to read:
110.1 		Subd. 12.Collaborative urban educator. (a) For the collaborative urban educator 
110.2 	grant program:

110.3		$
	780,000
	.....
	2016
	
110.4
110.5		$
	780,000
2,780,000
	.....
	2017
	
110.6 	(b) Grants shall be awarded in equal amounts: $195,000 each year is for the Southeast 
110.7 	Asian teacher program at Concordia University, St. Paul; $195,000 each year is for the 
110.8 	collaborative urban educator program at the University of St. Thomas; $195,000 each year 
110.9 	is for the Center for Excellence in Urban Teaching at Hamline University; and $195,00
110.10 	$195,000 each year is for the East Africa Student to Teacher program at Augsburg College.
110.11 	In fiscal year 2017 only, in addition to the amounts awarded under this paragraph, the 
110.12 	institutions identified in this paragraph may receive additional funding under paragraph (c).
110.13 	Any balance in the first year does not cancel but is available in the second year.
110.14 	Each institution shall prepare for the legislature, by January 15 of each year, a 
110.15 	detailed report regarding the funds used. The report must include the number of teachers 
110.16 	prepared as well as the diversity for each cohort of teachers produced.
110.17 	(c) A Minnesota teacher preparation program, a district Grow Your Own teacher 
110.18 	program, a nonconventional teacher preparation program under Minnesota Rules, part 
110.19 	8705.2300, or an alternative teacher preparation program under Minnesota Statutes, 
110.20 	section 122A.245, may apply to the commissioner of education for a grant in the form and 
110.21 	manner determined by the commissioner. The commissioner may award grants of up to 
110.22 	two years to the extent funds are available. The commissioner annually must award at 
110.23 	least 50 percent of grant funds to nonconventional and alternative preparation programs, 
110.24 	giving priority to funding programs that: 
110.25 	(1) recruit, retain, graduate, and place teacher candidates who reflect the 
110.26 	demographic diversity of the students enrolled in the district where the teacher candidate 
110.27 	is placed and provide the teachers with well-qualified mentor teachers; or 
110.28 	(2) train and place teacher candidates in subject areas or regions of the state 
110.29 	identified by the commissioner as shortage areas under Minnesota Statutes, section 
110.30 	127A.05, subdivision 6.
110.31 	(d) A grant recipient under this subdivision, annually by January 15, must prepare a 
110.32 	report for the commissioner of education and the kindergarten through grade 12 and 
110.33 	higher education committees of the legislature in the form and manner determined by the 
110.34 	commissioner. At a minimum, the report must detail grant expenditures for the previous 
110.35 	year and summarize program outcomes based on teacher preparation and performance 
111.1 	data consistent with paragraph (c) and Minnesota Statutes, section 122A.09, subdivision 
111.2 	4a, paragraph (b).
111.3 	(e) This appropriation is available until June 30, 2019. The base appropriation 
111.4 	for fiscal year 2018 and later is $780,000.

111.5 	Sec. 74. Laws 2015, First Special Session chapter 3, article 3, section 15, subdivision 
111.6 	3, is amended to read:
111.7 		Subd. 3.ACT testCollege entrance examination reimbursement. To reimburse 
111.8 	districts for students who qualify under Minnesota Statutes, section 120B.30, subdivision 
111.9 	1, paragraph (e), for onetime payment of their ACTcollege entrance examination fee:

111.10		$
	3,011,000
	.....
	2016
	
111.11		$
	3,011,000
	.....
	2017
	
111.12 	The Department of Education must reimburse districts for their onetime payments 
111.13 	on behalf of students.

111.14 	EFFECTIVE DATE. This section applies to college entrance exams administered 
111.15 	after July 1, 2016.

111.16 	Sec. 75. CONCURRENT ENROLLMENT TEACHER TRAINING GRANTS.
 111.17 	For fiscal years 2017, 2018, and 2019 only, a high school teacher required to obtain 
111.18 	additional training to meet the partnering college's or university's academic requirements 
111.19 	to teach a concurrent enrollment course in a high school under Minnesota Statutes, section 
111.20 	124D.09, may be reimbursed for tuition for up to 18 graduate credits in furthering this 
111.21 	training. The commissioner shall establish application procedures and deadlines for 
111.22 	receiving grant payments under this subdivision.

111.23 	EFFECTIVE DATE. This section is effective July 1, 2016.

111.24 	Sec. 76. MINNESOTA'S FUTURE TEACHERS; GRANT PROGRAM.
 111.25 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms 
111.26 	have the meanings given them.
111.27 	(b) "Eligible institution" means a Minnesota public or nonpublic postsecondary 
111.28 	institution under Minnesota Statutes, section 136A.101, subdivision 4, providing a Board 
111.29 	of Teaching-approved teacher preparation program.
111.30 	(c) "High needs area" means a shortage of teachers teaching in particular subject 
111.31 	areas and, or in particular regions of the state, identified in the commissioner of education's 
112.1 	biennial survey of districts under Minnesota Statutes, section 127A.05, subdivision 6, or 
112.2 	in another Department of Education survey on teacher shortages.
112.3 	(d) "High needs school" means a school:
112.4 	(1) designated as a low performing school under the most recently reauthorized 
112.5 	federal Elementary and Secondary Education Act; or
112.6 	(2) above the state average in the concentration of students qualifying for free and 
112.7 	reduced-price lunch.
112.8 	(e) "Qualified candidate" means a student enrolled in a Board of Teaching-approved 
112.9 	teacher preparation program at an eligible institution meeting the criteria in subdivision 3.
112.10 		Subd. 2.Account. An account is established under the control of the commissioner 
112.11 	of the Office of Higher Education for grants to eligible institutions to provide financial 
112.12 	and other support to qualified candidates interested in teaching in a high needs area or 
112.13 	school. Unused funds appropriated to the Department of Education and transferred to the 
112.14 	Office of Higher Education in any fiscal year do not cancel and are available for the 
112.15 	purposes of this section.
112.16 		Subd. 3.Program requirements. (a) The commissioner of the Office of Higher 
112.17 	Education, beginning in the 2017-2018 school year, shall award grants to eligible 
112.18 	institutions to help defray costs for qualified undergraduate and graduate candidates to 
112.19 	become licensed teachers. The commissioner shall determine the maximum grant award 
112.20 	available to each eligible institution, including the amount available for administrative and 
112.21 	support services, and other terms and conditions related to administering the grant program.
112.22 	(b) The eligible institution must provide grant funding to its teacher preparation 
112.23 	programs for:
112.24 	(1) reducing tuition, fees, and related education costs of qualified candidates;
112.25 	(2) actively encouraging historically underserved students, students of color, and 
112.26 	students to pursue teaching in a high needs area or school;
112.27 	(3) supporting qualified candidates to persist in and complete their teacher 
112.28 	preparation program and receive a full professional teaching license; and
112.29 	(4) providing qualified candidates with experiential teaching opportunities.
112.30 	(c) A qualified candidate under this section must submit to the teacher preparation 
112.31 	program a written statement indicating the qualified candidate's intent to teach in a high 
112.32 	needs school or area after completing the teacher preparation program and receiving 
112.33 	a teaching license.
112.34 	(d) The teaching preparation program must provide mentoring to its qualified 
112.35 	candidates that includes at least:
112.36 	(1) good communication with the qualified candidate throughout the program;
113.1 	(2) a personalized learning plan for the qualified candidate that describes the 
113.2 	requirements for completing the program and obtaining a teaching position and the 
113.3 	resources available for overcoming obstacles to completing the program;
113.4 	(3) connections to campus resources and professional and personal development 
113.5 	opportunities; and
113.6 	(4) financial planning. 

113.7 	Sec. 77. GRANTS TO STUDENT TEACHERS IN SHORTAGE AREAS.
 113.8 		Subdivision 1.Establishment. The commissioner of the Office of Higher Education 
113.9 	must establish a grant program for student teaching stipends for low-income students 
113.10 	enrolled in a Board of Teaching-approved teacher preparation program who are interested 
113.11 	in teaching in a high needs subject area or region after graduating and receiving their 
113.12 	teaching license. For purposes of this section, "high needs subject area or region" means a 
113.13 	shortage of teachers teaching in particular subject areas or a shortage of teachers teaching 
113.14 	in particular regions of the state identified in the commissioner of education's biennial 
113.15 	survey of districts under Minnesota Statutes, section 127A.05, subdivision 6, or in another 
113.16 	Department of Education survey on teacher shortages.
113.17 		Subd. 2.Eligibility To be eligible for a grant under this section, a teacher candidate 
113.18 	must:
113.19 	(1) be enrolled in a Board of Teaching-approved teacher preparation program that 
113.20 	requires at least 12 weeks of student teaching and results in the teacher candidate receiving 
113.21 	a full professional teaching license enabling the licensee to teach in a high needs subject 
113.22 	area or region; and
113.23 	(2) demonstrate financial need based on criteria established by the commissioner 
113.24 	under subdivision 3.
113.25 		Subd. 3.Administration; repayment. (a) The commissioner must establish an 
113.26 	application process and other guidelines for implementing this program.
113.27 	(b) The commissioner must determine each academic year the stipend amount based 
113.28 	on the amount of available funding and the number of eligible applicants.

113.29 	EFFECTIVE DATE. This section is effective July 1, 2016.

113.30 	Sec. 78. LEGISLATIVE STUDY GROUP ON EDUCATOR LICENSURE.
 113.31 	(a) A 12-member legislative study group on educator licensure is created to review 
113.32 	the 2016 Minnesota Teacher Licensure report prepared by the Office of the Legislative 
113.33 	Auditor on teacher licensing and submit a written report by February 1, 2017, to the 
113.34 	legislature recommending how to restructure Minnesota's teacher licensure system by 
114.1 	consolidating all teacher licensure activities into a single state entity to ensure transparency 
114.2 	and consistency or, at a minimum, by clarifying existing teacher licensure responsibilities 
114.3 	to provide transparency and consistency. In developing its recommendations, the study 
114.4 	group is encouraged to consider the tiered licensure system recommended in the legislative 
114.5 	auditor's report, among other recommendations. The study group is encouraged to begin 
114.6 	its work by consulting with teachers currently teaching in Minnesota school districts, 
114.7 	charter schools, and nonpublic schools and with out-of-state teachers currently licensed or 
114.8 	seeking a license in Minnesota. The study group is encouraged to identify and include in 
114.9 	its report any statutory changes needed to implement the study group recommendations.
114.10 	(b) The legislative study group on educator licensure includes:
114.11 	(1) six duly elected and currently serving members of the house of representatives, 
114.12 	three appointed by the speaker of the house and three appointed by the house minority 
114.13 	leader, and one of whom must be the current chair of the house of representatives 
114.14 	Education Innovation Policy Committee; and
114.15 	(2) six duly elected and currently serving senators, three appointed by the senate 
114.16 	majority leader and three appointed by the senate minority leader, one of whom must be 
114.17 	the current chair of the senate Education Committee.
114.18 	Only duly elected and currently serving members of the house of representatives or senate 
114.19 	may be study group members.
114.20 	(c) The appointments must be made by June 1, 2016, and expire February 2, 2017. 
114.21 	If a vacancy occurs, the leader of the caucus in the house of representatives or senate to 
114.22 	which the vacating study group member belonged must fill the vacancy. The chair of the 
114.23 	house Education Innovation Policy Committee shall convene the first meeting of the study 
114.24 	group. The study group shall elect a chair or cochairs from among the members at the 
114.25 	first meeting. The study group must meet periodically. The Legislative Coordinating 
114.26 	Commission shall provide technical and administrative assistance upon request.
114.27 	(d) In reviewing the legislative auditor's report and developing its recommendations, 
114.28 	the study group must consult with the Board of Teaching, the licensing division of the 
114.29 	Department of Education, the Minnesota Board of School Administrators, and interested 
114.30 	and affected stakeholders.
114.31 	(e) The study group expires on February 2, 2017, unless extended by law.

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

114.33 	Sec. 79. BOARD OF TEACHING REPORT.
 115.1 	The Board of Teaching must prepare and submit a written report to the committees 
115.2 	of the legislature with jurisdiction over kindergarten through grade 12 education by 
115.3 	February 1, 2017, listing all the statutory and rule requirements on teacher preparation, 
115.4 	examinations, and training applicable to candidates for teacher licensure by type of license 
115.5 	and all the statutory and rule requirements on continuing education applicable to teachers 
115.6 	seeking to renew a full professional teaching license.

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

115.8 	Sec. 80. TEACHER LICENSING; PROCESS AND PROCEDURES.
 115.9 	(a) The Board of Teaching must maintain an easily accessible, user-friendly online 
115.10 	teacher licensure application system to enable all teacher licensure candidates to upload 
115.11 	their teacher licensure applications electronically and to select the field and grade level for 
115.12 	which they seek to be licensed. The online application system must list all types of teacher 
115.13 	licenses and special permissions available, outline the specific requirements for each type 
115.14 	of license and special permission, allow candidates to submit applications for all types 
115.15 	of licenses and special permissions, and be clear and complete. The online application 
115.16 	form must accommodate Minnesota and out-of-state candidates who completed a teacher 
115.17 	preparation and training program at either an accredited college or university or a 
115.18 	nontraditional teacher preparation and training program.
115.19 	(b) When completely or partially denying a candidate a teaching license by issuing 
115.20 	a license that is more limited than the license the candidate seeks, including a restricted 
115.21 	license, the Board of Teaching, after consulting with the Department of Education if 
115.22 	appropriate, must notify the candidate in writing clearly explaining: the reason for denying 
115.23 	or partially denying the candidate a teaching license, including the specific deficiencies 
115.24 	identified in the candidate's preparation or qualifications; the options available to the 
115.25 	candidate to pursue the license the candidate seeks; and the candidate's right to appeal a 
115.26 	denial. Under the two-step appeal process, a candidate may appeal a licensure decision 
115.27 	to the Board of Teaching for review and, if the board does not find for the candidate, 
115.28 	the candidate may submit a second appeal, requesting a contested case hearing under 
115.29 	Minnesota Statutes, chapter 14.
115.30 	(c) The Board of Teaching must grant a one-year full professional teaching license 
115.31 	to otherwise qualified teacher licensure candidates who have satisfactorily completed 
115.32 	a board-approved teacher preparation program in Minnesota, an accredited teacher 
115.33 	preparation program in another state, or all the licensure-specific coursework and other 
115.34 	requirements of a Board of Teaching-approved alternative teacher preparation and training 
115.35 	program but have not yet successfully completed the content, pedagogy, and skills exams 
116.1 	required for licensure. The board may renew a candidate's one-year full professional 
116.2 	teaching license under this paragraph up to three times. Teacher candidates who receive 
116.3 	a one-year full professional teaching license under this paragraph, while holding this 
116.4 	license, must continue to work to complete or pass the content, pedagogy, or skills exam 
116.5 	requirements they have not yet met.

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

116.7 	Sec. 81. DATA SECURITY PLAN.
 116.8 		Subdivision 1.Plan components. To protect education and related workforce 
116.9 	data on individual students maintained by public schools, school districts, and state 
116.10 	agencies, and consistent with Minnesota Statutes, chapter 13, and sections 116J.401, 
116.11 	120B.11, 120B.12, 120B.30, 120B.31, 120B.35, 120B.36, 124D.49, 124D.52, 124D.861, 
116.12 	125A.085, and 127A.70, subdivision 2, among other student data-related provisions, the 
116.13 	commissioner of education must develop, publish, and oversee a detailed data security 
116.14 	plan combining administrative, physical, and technical safeguards that includes:
116.15 	(1) requirements for:
116.16 	(i) authorizing access to the kindergarten through grade 12 data systems containing 
116.17 	personally identifiable information on students;
116.18 	(ii) authorizing data and system access for other agencies participating in the 
116.19 	Statewide Longitudinal Education Data System and the Early Childhood Longitudinal 
116.20 	Data System;
116.21 	(iii) authenticating authorized access to and the processing of personally identifiable 
116.22 	information on students;
116.23 	(iv) protecting data that describes a student or otherwise identifies a student gathered 
116.24 	by an operator of a Web site, online service, online application, or mobile application 
116.25 	that operates a site, service, or application for kindergarten through grade 12 school 
116.26 	purposes; and
116.27 	(v) sanctions for employees, contractors, grantees, researchers, and vendors who 
116.28 	fail to comply with the guidelines;
116.29 	(2) minimum privacy compliance standards based on reasonable and enforceable 
116.30 	security measures and practices, including background checks, training opportunities 
116.31 	and resources, physical and technical safeguards, and privacy and security agreements 
116.32 	for employees, contractors, grantees, researchers, and vendors with access to personally 
116.33 	identifiable information on students, among other privacy and security measures and 
116.34 	practices;
117.1 	(3) regular privacy and security compliance audits of the Statewide Longitudinal 
117.2 	Education Data System and other data systems; and
117.3 	(4) data retention, storage, disposal, and security policies and protocols that include:
117.4 	(i) safeguards for protecting, managing, accessing, and destroying students' 
117.5 	personally identifiable data; and
117.6 	(ii) plans, notices, and mitigation procedures for responding to data breaches, among 
117.7 	other policies and protocols.
117.8 		Subd. 2.Plan report. The commissioner of education must submit a report by 
117.9 	January 10, 2017, to the committees of the legislature with jurisdiction over education 
117.10 	and data practices on the Department of Education's progress in developing the data 
117.11 	security plan and must include in the report estimates of the costs for further developing 
117.12 	and implementing the plan, including audit, background check, and training costs, among 
117.13 	other costs.
117.14 		Subd. 3.Plan costs. The commissioner of education must proceed in developing the 
117.15 	data security plan under subdivision 1 using existing Department of Education resources.
117.16 		Subd. 4.Plan implementation. The commissioner of education may not proceed to 
117.17 	implement the data security plan under this section until July 1, 2017.

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

117.19 	Sec. 82. STAFF DEVELOPMENT GRANTS FOR INTERMEDIATE SCHOOL 
117.20 	DISTRICTS AND OTHER COOPERATIVE UNITS.
 117.21 	(a) For fiscal years 2017, 2018, and 2019 only, an intermediate school district or 
117.22 	other cooperative unit providing instruction to students in federal instructional settings 
117.23 	of level 4 or higher qualifies for staff development grants equal to $1,000 times the 
117.24 	full-time equivalent number of licensed instructional staff and nonlicensed classroom 
117.25 	aides employed by the intermediate school district or other cooperative unit during the 
117.26 	previous fiscal year.
117.27 	(b) Staff development grants received under this section must be used for activities 
117.28 	related to enhancing services to students who may have challenging behaviors or mental 
117.29 	health issues or be suffering from trauma. Specific qualifying staff development activities 
117.30 	include but are not limited to:
117.31 	(1) proactive behavior management;
117.32 	(2) personal safety training;
117.33 	(3) de-escalation techniques; and
117.34 	(4) adaptation of published curriculum and pedagogy for students with complex 
117.35 	learning and behavioral needs.
118.1 	(c) The grants received under this section must be reserved and spent only on the 
118.2 	activities specified in this section. If funding for purposes of this section is insufficient, 
118.3 	the commissioner must prorate the grants.

118.4 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2017 
118.5 	and later.

118.6 	Sec. 83. STUDENT DISCIPLINE WORKING GROUP.
 118.7 	(a) A student discipline working group is created to review the substance, 
118.8 	application, and effect of Minnesota's Pupil Fair Dismissal Act under Minnesota Statutes, 
118.9 	sections 121A.40 to 121A.56, and related student discipline provisions in Minnesota 
118.10 	Statutes, chapter 121A, and submit written recommendations to the legislature by 
118.11 	February 1, 2017, on improving disciplinary policies, practices, and procedures as they 
118.12 	affect students and school officials and the effects on student outcomes.
118.13 	(b) Consistent with paragraph (a), the working group must analyze:
118.14 	(1) available summary data on elementary and secondary students' removal from 
118.15 	class, suspensions, exclusions, expulsions, and other disciplinary measures, disaggregated 
118.16 	by categories of race, ethnicity, poverty, disability, homelessness, English language 
118.17 	proficiency, gender, age, and foster care status;
118.18 	(2) the meaning and effect of "willful" in establishing grounds for dismissal under 
118.19 	Minnesota Statutes, section 121A.45;
118.20 	(3) the impact of positive behavioral interventions and supports and restorative 
118.21 	practices on student behavior, student outcomes, and the school climate, including student 
118.22 	engagement and connection, among other school climate measures;
118.23 	(4) due process rights of students facing dismissal, including changes needed to 
118.24 	ensure students' due process rights are fully observed and protected;
118.25 	(5) students' need for and access to professional support service providers such 
118.26 	as school counselors, school social workers, school psychologists, and mental health 
118.27 	professionals;
118.28 	(6) the presence of school resource officers in school buildings, their role in affecting 
118.29 	student discipline, and their impact on teacher safety and student outcomes;
118.30 	(7) policies for retaining and destroying student disciplinary data; and
118.31 	(8) other related school discipline matters that are of concern to working group 
118.32 	members.
118.33 	(c) By June 1, 2016, the executive director of each of the following organizations 
118.34 	shall appoint one representative to serve as a member of the working group: the Minnesota 
118.35 	School Boards Association; the Minnesota Association of School Administrators; 
119.1 	Education Minnesota; the Minnesota Board of Peace Officer Standards and Training; the 
119.2 	Minnesota Disability Law Center; the National Alliance of Mental Illness Minnesota; 
119.3 	the Parent Advocacy Coalition for Educational Rights (PACER) Center; the Minnesota 
119.4 	Association of Secondary School Principals; the Minnesota Elementary School Principals' 
119.5 	Association; the Association of Metropolitan School Districts; the Minnesota Rural 
119.6 	Education Association; the Minnesota School Counselors Association; the Minnesota 
119.7 	School Psychologists Association; the School Nurse Organization of Minnesota; the St. 
119.8 	Paul Special Education Advisory Council; the Solutions Not Suspensions Coalition; the 
119.9 	Minnesota Education Equity Partnership; MinnCAN; Students for Education Reform; the 
119.10 	Minnesota Youth Council; Educators 4 Excellence; the African American Leadership 
119.11 	Forum; the American Indian Opportunities Industrialization Center; the Minnesota 
119.12 	Association of Charter Schools; the Minnesota Indian Affairs Council; and the Minnesota 
119.13 	School Social Workers Association. Six legislators shall also be appointed by June 
119.14 	1, 2016, and serve as members of the working group: three duly elected and currently 
119.15 	serving senators, two appointed by the senate majority leader and one appointed by the 
119.16 	senate minority leader; and three duly elected and currently serving members of the 
119.17 	house of representatives, two appointed by the speaker of the house and one appointed 
119.18 	by the house of representatives minority leader. Only duly elected and currently serving 
119.19 	members of the senate or house of representatives may be working group members. If a 
119.20 	vacancy occurs, the leader of the caucus in the senate or house of representatives to which 
119.21 	the vacating member belonged must fill the vacancy. Working group members must seek 
119.22 	advice from experts and stakeholders in developing their recommendations.
119.23 	(d) The commissioner of education, or the commissioner's designee, must convene 
119.24 	the first meeting of the working group. The working group must select a chair or cochairs 
119.25 	from among its members at the first meeting. The working group must meet periodically. 
119.26 	The commissioner must provide technical and administrative assistance to the working 
119.27 	group upon request. Working group members are not eligible to receive expenses or per 
119.28 	diem payments for serving on the working group.
119.29 	(e) The working group expires February 2, 2017.

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

119.31 	Sec. 84. NORTHWEST REGIONAL PARTNERSHIP CONCURRENT 
119.32 	ENROLLMENT PROGRAM.
 119.33 		Subdivision 1.Definition. "Northwest Regional Partnership" means a voluntary 
119.34 	association of the Lakes Country Service Cooperative, the Northwest Service Cooperative, 
120.1 	and Minnesota State University-Moorhead that works together to provide coordinated 
120.2 	higher learning opportunities for teachers.
120.3 		Subd. 2.Establishment. Lakes Country Service Cooperative, in consultation with 
120.4 	the Northwest Service Cooperative, may develop a continuing education program to allow 
120.5 	eligible teachers to attain the requisite graduate credits necessary to be qualified to teach 
120.6 	secondary school courses for postsecondary credit.
120.7 		Subd. 3.Curriculum development. Minnesota State University-Moorhead may 
120.8 	develop an online education curriculum to allow eligible secondary school teachers to 
120.9 	attain graduate credit at a reduced credit rate.
120.10 		Subd. 4.Funding for course development; scholarships; stipends. Lakes 
120.11 	Country Service Cooperative, in consultation with the other members of the Northwest 
120.12 	Regional Partnership, shall:
120.13 	(1) provide funding for course development for up to 18 credits in applicable 
120.14 	postsecondary subject areas;
120.15 	(2) provide scholarships for eligible teachers to enroll in the continuing education 
120.16 	program; and
120.17 	(3) develop criteria for awarding educator stipends on a per-credit basis to 
120.18 	incentivize participation in the continuing education program.
120.19 		Subd. 5.Participant eligibility. Participation in the continuing education program 
120.20 	is reserved for teachers of secondary school courses for postsecondary credit. Priority 
120.21 	must be given to teachers employed by a school district that is a member of the Lakes 
120.22 	Country Service Cooperative or Northwest Service Cooperative. Teachers employed 
120.23 	by a school district that is not a member of the Lakes Country Service Cooperative or 
120.24 	Northwest Service Cooperative may participate in the continuing education program as 
120.25 	space allows. A teacher participating in this program is ineligible to participate in other 
120.26 	concurrent enrollment teacher training grant programs.
120.27 		Subd. 6.Private funding. The partnership may receive private resources to 
120.28 	supplement the available public money. All money received shall be administered by 
120.29 	the Lakes Country Service Cooperative.
120.30 		Subd. 7.Report required. Northwest Regional Partnership must submit an annual 
120.31 	report by January 15 of each year on the progress of its activities to the legislature, 
120.32 	commissioner of education, and Board of Trustees of the Minnesota State Colleges and 
120.33 	Universities. The annual report shall contain a financial report for the preceding year. The 
120.34 	first report is due no later than January 15, 2018.

120.35 	EFFECTIVE DATE. This section is effective July 1, 2016.

121.1 	Sec. 85. GROW YOUR OWN TEACHER RESIDENCY PILOT PROGRAM.
 121.2 	(a) For fiscal years 2017, 2018, and 2019 only, a nonconventional teacher residency 
121.3 	pilot program under Minnesota Statutes, section 122A.09, subdivision 10, paragraph (a), 
121.4 	is established to provide tuition scholarships or stipends to enable education or teaching 
121.5 	assistants or other nonlicensed district employees who hold a bachelor's degree from an 
121.6 	accredited college or university and who seek an elementary education license or a license 
121.7 	in a subject area for which a shortage exists under Minnesota Statutes, section 127A.05, 
121.8 	subdivision 6, to participate in a Board of Teaching-approved nonconventional teacher 
121.9 	residency program under this section.
121.10 	(b) School districts or charter schools not participating under paragraph (a) may 
121.11 	use funds under this section to pay for tuition scholarships or stipends on behalf of 
121.12 	paraprofessionals employed in the school or district who are enrolled in a Board of 
121.13 	Teaching-approved teacher preparation program and who are making satisfactory progress 
121.14 	toward attaining teacher licensure.
121.15 	(c) The commissioner of education and the commissioner of the Office of Higher 
121.16 	Education must evaluate the outcomes and efficacy of the program and, by February 1, 
121.17 	2017, submit written program recommendations to the committees of the legislature with 
121.18 	jurisdiction over kindergarten through grade 12 education and higher education, including 
121.19 	how to continue and expand the program throughout Minnesota.

121.20 	Sec. 86. PILOT PROJECT TO HELP STRUGGLING STUDENTS READ AT 
121.21 	GRADE LEVEL.
 121.22 	(a) A pilot project for fiscal year 2017 is established to help struggling, 
121.23 	underperforming students in grades 3 through 5 read at grade level and close the academic 
121.24 	achievement gap. Under this pilot project, the commissioner of education shall make a 
121.25 	grant to a qualified and experienced nonprofit organization to provide three Minnesota 
121.26 	public schools with: a research-based intervention software program demonstrated to 
121.27 	effectively use singing to improve students' reading ability; technical training and staff to 
121.28 	install project software; on-site professional development and instructional monitoring 
121.29 	and support for school staff and students; preproject and postproject online reading 
121.30 	assessments developed by the University of Minnesota; and other project management 
121.31 	services. A participating school must identify a trained supervisor and other school staff 
121.32 	to work with students using the software in the computer lab and coordinate and review 
121.33 	students' weekly lab use.
122.1 	(b) The commissioner, in consultation with the nonprofit organization receiving the 
122.2 	grant, must select three public elementary schools, located in an urban, suburban, and 
122.3 	greater Minnesota school district, respectively, to participate in the project based on:
122.4 	(1) the number and percent of enrolled students in grades 3 through 5 whose 
122.5 	proficiency on the Minnesota Comprehensive Assessment in reading is below grade level 
122.6 	and who are eligible for free or reduced-price lunch;
122.7 	(2) the interest of the school principal, teachers, and other school staff in 
122.8 	participating in the project; and
122.9 	(3) the availability of a computer lab for the project and its software.
122.10 	(c) The nonprofit organization receiving the grant must submit a 
122.11 	commissioner-reviewed report to the committees of the legislature with jurisdiction over 
122.12 	kindergarten through grade 12 education by February 1, 2017, using summary data to 
122.13 	compare and evaluate the reading gains of the third to fifth grade students in the three 
122.14 	schools that participated in the project and third to fifth grade students in schools that did 
122.15 	not participate in the project and recommend whether to continue or expand the project.

122.16 	EFFECTIVE DATE. This section is effective July 1, 2016.

122.17 	Sec. 87. LEGISLATIVE AUDITOR.
 122.18 	The legislative auditor is requested to perform a financial audit of the Perpich Center 
122.19 	for Arts Education in calendar year 2016, and at least every four calendar years thereafter.

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

122.21 	Sec. 88. STATEWIDE SCHOOL TEACHER AND ADMINISTRATOR JOB 
122.22 	BOARD.
 122.23 	For fiscal years 2017, 2018, and 2019 only, the Board of Teaching must contract for 
122.24 	an electronic statewide school teacher and administrator job board. The job board must 
122.25 	allow school districts to post job openings for prekindergarten through grade 12 teaching 
122.26 	and administrative positions.

122.27 	EFFECTIVE DATE. This section is effective July 1, 2016.

122.28 	Sec. 89. CERTIFICATION INCENTIVE REVENUE.
 122.29 		Subdivision 1.Qualifying certificates. As soon as practicable, the commissioner 
122.30 	of education, in consultation with the Governor's Workforce Development Council 
122.31 	established under Minnesota Statutes, section 116L.665, and the P-20 education 
123.1 	partnership operating under Minnesota Statutes, section 127A.70, must establish the list of 
123.2 	qualifying career and technical certificates and post the names of those certificates on the 
123.3 	Department of Education's Web site. The certificates must be in fields where occupational 
123.4 	opportunities exist.
123.5 		Subd. 2.School district participation. (a) A school board may adopt a policy 
123.6 	authorizing its students in grades 9 through 12, including its students enrolled in 
123.7 	postsecondary enrollment options courses under Minnesota Statutes, section 124D.09, the 
123.8 	opportunity to complete a qualifying certificate. The certificate may be completed as part 
123.9 	of a regularly scheduled course.
123.10 	(b) A school district may register a student for any assessment necessary to complete 
123.11 	a qualifying certificate and pay any associated registration fees for its students.
123.12 		Subd. 3.Incentive funding. (a) A school district's career and technical certification 
123.13 	aid equals $500 times the district's number of students enrolled during the current fiscal 
123.14 	year who have obtained one or more qualifying certificates during the current fiscal year.
123.15 	(b) The statewide total certificate revenue must not exceed $1,000,000. The 
123.16 	commissioner must proportionately reduce the initial aid provided under this subdivision 
123.17 	so that the statewide aid cap is not exceeded.
123.18 		Subd. 4.Reports to the legislature. (a) The commissioner of education must 
123.19 	report to the committees of the legislature with jurisdiction over kindergarten through 
123.20 	grade 12 education and higher education by February 1, 2017, on the number and types 
123.21 	of certificates authorized for the 2016-2017 school year. The commissioner must also 
123.22 	recommend whether the pilot program should be continued.
123.23 	(b) By February 1, 2018, the commissioner of education must report to the 
123.24 	committees of the legislature with jurisdiction over kindergarten through grade 12 
123.25 	education and higher education about the number and types of certificates earned by 
123.26 	Minnesota's students during the 2016-2017 school year.

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

123.28 	Sec. 90. APPROPRIATIONS.
 123.29 		Subdivision 1.Department of Education. The sums indicated in this section 
123.30 	are appropriated from the general fund to the Department of Education for the fiscal 
123.31 	year designated.
124.1 		Subd. 2.Staff development grants for cooperative units. For payment of staff 
124.2 	development grants to intermediate school districts and other cooperative units providing 
124.3 	instruction to students in federal instructional settings of level 4 or higher:

124.4		$
	6,000,000
	.....
	2017
	
124.5 	This is a onetime appropriation. This appropriation is available until June 30, 
124.6 	2019. To the extent practicable, this appropriation should fund staff development grants 
124.7 	for intermediate school districts and other cooperative units for fiscal years 2017, 2018, 
124.8 	and 2019.
124.9 		Subd. 3.Northwest Regional Partnership concurrent enrollment program. For a 
124.10 	grant to the Lakes Country Service Cooperative to operate a continuing education program:

124.11		$
	3,000,000
	.....
	2017
	
124.12 	This is a onetime appropriation. This appropriation is available until June 30, 2019.
124.13 		Subd. 4.Grow Your Own tuition scholarships and stipends. For a school district 
124.14 	to provide tuition scholarships and stipends to eligible employees under the Grow Your 
124.15 	Own teacher residency pilot program:

124.16		$
	1,500,000
	.....
	2017
	
124.17 	This is a onetime appropriation. This appropriation is available until June 30, 2019.
124.18 		Subd. 5.Sanneh Foundation. For a grant to the Sanneh Foundation:

124.19		$
	1,500,000
	.....
	2017
	
124.20 	Funds appropriated in this section are to provide all-day, in-school, and after-school 
124.21 	academic and behavioral interventions for low-performing and chronically absent students 
124.22 	with a focus on low-income students and students of color throughout the school year and 
124.23 	during the summer to decrease absenteeism, encourage school engagement, and improve 
124.24 	grades and graduation rates. Funds appropriated in this section may be used to hire and 
124.25 	train staff in areas of youth mentorship, behavior support, and academic tutoring in group 
124.26 	and individual settings and to promote pathways for teachers of color.
124.27 	This is a onetime appropriation. This appropriation is available until June 30, 2019.
124.28 		Subd. 6.Western Minnesota mobile manufacturing lab. For a transfer to the 
124.29 	Pine to Prairie Cooperative Center:

124.30		$
	900,000
	.....
	2017
	
124.31 	The funds in this subdivision must be used to establish a western Minnesota mobile 
124.32 	labs program, including manufacturing and welding labs to create interest in these careers 
124.33 	for secondary students. The program must be operated by Pine to Prairie Cooperative 
125.1 	Center in collaboration with Northland Community and Technical College, Lakes Country 
125.2 	Service Cooperative, and Minnesota State Community and Technical College.
125.3 	This is a onetime appropriation. This appropriation is available until June 30, 2019.
125.4 		Subd. 7.Music pilot project appropriation. For a grant to a qualified nonprofit 
125.5 	organization to provide three Minnesota public elementary schools with a research-based 
125.6 	intervention software program that effectively uses singing to improve students' reading 
125.7 	ability:

125.8		$
	100,000
	.....
	2017
	
125.9 	This is a onetime appropriation.
125.10 		Subd. 8.School crisis response teams. For school crisis response teams under 
125.11 	Minnesota Statutes, section 119A.035:

125.12		$
	100,000
	.....
	2017
	
125.13 	This is a onetime appropriation. This appropriation is available until June 30, 2019.
125.14 		Subd. 9.Positive Behavioral Interventions and Supports (PBIS). For 
125.15 	implementation of schoolwide Positive Behavioral Interventions and Supports (PBIS) in 
125.16 	schools and districts throughout Minnesota to reduce the use of restrictive procedures and 
125.17 	increase use of positive practices:

125.18		$
	2,750,000
	.....
	2017
	
125.19 	This is a onetime appropriation.
125.20 		Subd. 10.Girls in Action grant. For a grant to the Girls in Action program to 
125.21 	enable Girls in Action to continue to provide and to expand Twin Cities metropolitan area 
125.22 	school and community-based programs that encourage and support low-income girls, 
125.23 	including low-income girls of color, to graduate from high school on time, complete a 
125.24 	postsecondary preparation program, become community leaders, and participate in service 
125.25 	learning opportunities in their communities. Girls in Action must expend $500,000 of this 
125.26 	appropriation for community-based programs located in the Twin Cities metropolitan area:

125.27		$
	1,500,000
	.....
	2017
	
125.28 	This is a onetime appropriation. This appropriation is available until June 30, 2019.
125.29 		Subd. 11.Concurrent enrollment teacher training grants. For concurrent 
125.30 	enrollment teacher training grants under Minnesota Statutes, section 124D.091, 
125.31 	subdivision 4:

125.32		$
	750,000
	.....
	2017
	
126.1 	This is a onetime appropriation. This appropriation is available until June 30, 2019.
126.2 		Subd. 12.Minnesota Council on Economic Education. For a grant to the 
126.3 	Minnesota Council on Economic Education to provide staff development to teachers 
126.4 	for implementing the state graduation standards in learning areas relating to economic 
126.5 	education:

126.6		$
	250,000
	.....
	2017
	
126.7 	The commissioner, in consultation with the council, shall develop expectations for 
126.8 	staff development outcomes, eligibility criteria for participants, an evaluation procedure, 
126.9 	and guidelines for direct and in-kind contributions by the council.
126.10 	This is a onetime appropriation. This appropriation is available until June 30, 2019.
126.11 		Subd. 13.Certificate incentive funding. For the certificate incentive program:

126.12		$
	1,000,000
	.....
	2017
	
126.13 	This is a onetime appropriation. This appropriation is available until June 30, 2019.
126.14 		Subd. 14.Southwest Minnesota State University special education teacher 
126.15 	education program. The following sums are appropriated in the fiscal years designated 
126.16 	from the general fund to the commissioner of education for the Southwest Minnesota State 
126.17 	University special education teacher education program to support special education 
126.18 	paraprofessionals working toward licensure in an online program:

126.19		$
	385,000
	.....
	2017
	
126.20 	The base for this program in fiscal year 2018 is $0.

126.21 	Sec. 91. APPROPRIATION; JOB BOARD.
 126.22 	$239,000 in fiscal year 2017 is appropriated from the general fund to the Board of 
126.23 	Teaching for an electronic statewide job board. The board may expend $79,000 of this 
126.24 	appropriation in fiscal year 2017, and the remaining unexpended funds are available 
126.25 	until June 30, 2019.

126.26 	Sec. 92. APPROPRIATION; FUTURE TEACHERS GRANT PROGRAM.
 126.27 	$4,500,000 in fiscal year 2017 is appropriated from the general fund to the 
126.28 	commissioner of the Office of Higher Education for the Minnesota future teachers grant 
126.29 	program. This is a onetime appropriation. This appropriation is available until June 30, 
126.30 	2019.

127.1 	Sec. 93. APPROPRIATION; STUDENT TEACHERS IN SHORTAGE AREAS; 
127.2 	GRANTS.
 127.3 	$1,000,000 in fiscal year 2017 is appropriated from the general fund to the 
127.4 	commissioner of the Office of Higher Education for grants to student teachers in shortage 
127.5 	areas. This is a onetime appropriation. This appropriation is available until June 30, 2019.

127.6 	Sec. 94. APPROPRIATION; SCHOOL-LINKED MENTAL HEALTH 
127.7 	SERVICES.
 127.8 	$5,000,000 in fiscal year 2017 is appropriated from the general fund to the 
127.9 	commissioner of human services for children's mental health grants under Minnesota 
127.10 	Statutes, section 245.4889, subdivision 1, paragraph (b), clause (8), for current grantees to 
127.11 	expand access to school-linked mental health services and to provide training to grantees 
127.12 	on the use of evidence-based practices. This appropriation is available until June 30, 2019. 
127.13 	To the extent practicable, the commissioner of human services is encouraged to expend 
127.14 	the fiscal year 2017 appropriation equally over fiscal years 2017, 2018, and 2019.

127.15 	Sec. 95. REVISOR'S INSTRUCTION.
 127.16 	In the next and subsequent editions of Minnesota Statutes, the revisor of statutes 
127.17 	shall renumber the section on innovative delivery of career and technical education 
127.18 	programs as Minnesota Statutes, section 124D.339.

127.19 	Sec. 96.  REPEALER.
 127.20 	(a) Minnesota Statutes 2014, sections 120B.299, subdivision 5; 122A.413, 
127.21 	subdivision 3; and 122A.74, are repealed.
127.22 	(b) Minnesota Statutes 2015 Supplement, section 122A.413, subdivisions 1 and 
127.23 	2, are repealed.
127.24 	(c) Minnesota Statutes 2014, sections 122A.40, subdivision 11; and 122A.41, 
127.25 	subdivision 14, are repealed effective July 1, 2017.
127.26 	(d) Minnesota Rules, part 3535.0110, subparts 6, 7, and 8, are repealed.

127.27 	EFFECTIVE DATE. Paragraph (d) is effective the day following final enactment.

127.28 	ARTICLE 9
127.29 	CHARTER SCHOOLS

127.30 	Section 1. Minnesota Statutes 2015 Supplement, section 124E.05, subdivision 4, is 
127.31 	amended to read:
128.1 		Subd. 4.Application content. (a) An applicant must include in its application to 
128.2 	the commissioner to be an approved authorizer at least the following:
128.3 	(1) how chartering schools is a way for the organization to carry out its mission;
128.4 	(2) a description of the capacity of the organization to serve as an authorizer, 
128.5 	including the personnel who will perform the authorizing duties, their qualifications, the 
128.6 	amount of time they will be assigned to this responsibility, and the financial resources 
128.7 	allocated by the organization to this responsibility;
128.8 	(2) a description of the capacity of the organization to serve as an authorizer, 
128.9 	including the positions allocated to authorizing duties, the qualifications for those 
128.10 	positions, the full-time equivalencies of those positions, and the financial resources 
128.11 	available to fund the positions. The commissioner may use information about specific 
128.12 	individuals expected to perform the authorizing duties in deciding whether to approve 
128.13 	or disapprove an organization's application to be approved as an authorizer. The 
128.14 	commissioner may not use information about specific individuals performing the 
128.15 	authorizing duties in reviewing an approved authorizer's performance;
128.16 	(3) a description of the application and review process the authorizer will use to 
128.17 	make decisions regarding the granting of charters;
128.18 	(4) a description of the type of contract it will arrange with the schools it charters 
128.19 	that meets the provisions of section 124E.10;
128.20 	(5) the process to be used for providing ongoing oversight of the school consistent 
128.21 	with the contract expectations specified in clause (4) that assures that the schools chartered 
128.22 	are complying with both the provisions of applicable law and rules, and with the contract;
128.23 	(6) a description of the criteria and process the authorizer will use to grant expanded 
128.24 	applications under section 124E.06, subdivision 5;
128.25 	(7) the process for making decisions regarding the renewal or termination of 
128.26 	the school's charter based on evidence that demonstrates the academic, organizational, 
128.27 	and financial competency of the school, including its success in increasing student 
128.28 	achievement and meeting the goals of the charter school agreement; and
128.29 	(8) an assurance specifying that the organization is committed to serving as an 
128.30 	authorizer for the full five-year term.
128.31 	(b) Notwithstanding paragraph (a), an authorizer that is a school district may satisfy 
128.32 	the requirements of paragraph (a), clauses (1) and (2), and any requirement governing a 
128.33 	conflict of interest between an authorizer and its charter schools or ongoing evaluation and 
128.34 	continuing education of an administrator or other professional support staff by submitting 
128.35 	to the commissioner a written promise to comply with the requirements.

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

129.1 	Sec. 2. Minnesota Statutes 2015 Supplement, section 124E.05, subdivision 5, is 
129.2 	amended to read:
129.3 		Subd. 5.Review by commissioner. (a) The commissioner shall review an 
129.4 	authorizer's performance every five years in a manner and form determined by the 
129.5 	commissioner, subject to paragraphs (b) and (c), and may review an authorizer's 
129.6 	performance more frequently at the commissioner's own initiative or at the request of a 
129.7 	charter school operator, charter school board member, or other interested party. The 
129.8 	commissioner, after completing the review, shall transmit a report with findings to the 
129.9 	authorizer.
129.10 	(b) Consistent with this subdivision, the commissioner must:
129.11 	(1) use criteria appropriate to the authorizer and the schools it charters to review 
129.12 	the authorizer's performance; and
129.13 	(2) consult with authorizers, charter school operators, and other charter school 
129.14 	stakeholders in developing review criteria under this paragraph.
129.15 	(c) The commissioner's form must use existing department data on the authorizer to 
129.16 	minimize duplicate reporting to the extent practicable. When reviewing an authorizer's 
129.17 	performance under this subdivision, the commissioner must not:
129.18 	(1) fail to credit;
129.19 	(2) withhold points; or
129.20 	(3) otherwise penalize an authorizer for failing to charter additional schools or for 
129.21 	the absence of complaints against the authorizer's current portfolio of charter schools.

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

129.23 	Sec. 3. Minnesota Statutes 2015 Supplement, section 124E.05, subdivision 7, is 
129.24 	amended to read:
129.25 		Subd. 7.Withdrawal. If the governing board of an approved authorizer votes to 
129.26 	withdraw as an approved authorizer for a reason unrelated to any cause under section 
129.27 	124E.10, subdivision 4, the authorizer must notify all its chartered schools and the 
129.28 	commissioner in writing by July 15 of its intent to withdraw as an authorizer on June 30 
129.29 	in the next calendar year, regardless of when the authorizer's five-year term of approval 
129.30 	ends. The commissioner may approve the transfer of a charter school to a new authorizer 
129.31 	under this subdivision after the new authorizer submits an affidavit to the commissioner
129.32 	section 124E.10, subdivision 5.

129.33 	Sec. 4. Minnesota Statutes 2015 Supplement, section 124E.10, subdivision 1, is 
129.34 	amended to read:
130.1 		Subdivision 1.Contents. (a) The authorization for a charter school must be in the 
130.2 	form of a written contract signed by the authorizer and the board of directors of the charter 
130.3 	school. The contract must be completed within 45 business days of the commissioner's 
130.4 	approval of the authorizer's affidavit. The authorizer shall submit to the commissioner a 
130.5 	copy of the signed charter contract within ten business days of its execution. The contract 
130.6 	for a charter school must be in writing and contain at least the following:
130.7 	(1) a declaration that the charter school will carry out the primary purpose in section 
130.8 	124E.01, subdivision 1, and how the school will report its implementation of the primary 
130.9 	purpose;
130.10 	(2) a declaration of the additional purpose or purposes in section 124E.01, 
130.11 	subdivision 1, that the school intends to carry out and how the school will report its 
130.12 	implementation of those purposes;
130.13 	(3) a description of the school program and the specific academic and nonacademic 
130.14 	outcomes that pupils must achieve;
130.15 	(4) a statement of admission policies and procedures;
130.16 	(5) a governance, management, and administration plan for the school;
130.17 	(6) signed agreements from charter school board members to comply with all 
130.18 	federal and state laws governing organizational, programmatic, and financial requirements 
130.19 	applicable to charter schools;
130.20 	(7) the criteria, processes, and procedures that the authorizer will use to monitor and 
130.21 	evaluate the fiscal, operational, and academic performance consistent with subdivision 
130.22 	3, paragraphs (a) and (b);
130.23 	(8) for contract renewal, the formal written performance evaluation of the school 
130.24 	that is a prerequisite for reviewing a charter contract under subdivision 3;
130.25 	(9) types and amounts of insurance liability coverage to be obtained by the charter 
130.26 	school, consistent with section 124E.03, subdivision 2, paragraph (d);
130.27 	(10) consistent with section 124E.09, paragraph (d), a provision to indemnify and 
130.28 	hold harmless the authorizer and its officers, agents, and employees from any suit, claim, 
130.29 	or liability arising from any operation of the charter school, and the commissioner and 
130.30 	department officers, agents, and employees notwithstanding section 3.736;
130.31 	(11) the term of the initial contract, which may be up to five years plus an additional 
130.32 	a preoperational planning year period, and up to five years for a renewed contract or a 
130.33 	contract with a new authorizer after a transfer of authorizers, if warranted by the school's 
130.34 	academic, financial, and operational performance;
130.35 	(12) how the board of directors or the operators of the charter school will provide 
130.36 	special instruction and services for children with a disability under sections 125A.03 
131.1 	to 125A.24, and 125A.65, a description of the financial parameters within which the 
131.2 	charter school will operate to provide the special instruction and services to children 
131.3 	with a disability;
131.4 	(13) the specific conditions for contract renewal that identify performance of all 
131.5 	students under the primary purpose of section 124E.01, subdivision 1, as the most 
131.6 	important factor in determining contract renewal;
131.7 	(14) the additional purposes under section 124E.01, subdivision 1, and related 
131.8 	performance obligations under clause (7) contained in the charter contract as additional 
131.9 	factors in determining contract renewal; and
131.10 	(15) the plan for an orderly closing of the school under chapter 317A, whether 
131.11 	the closure is a termination for cause, a voluntary termination, or a nonrenewal of the 
131.12 	contract, that includes establishing the responsibilities of the school board of directors 
131.13 	and the authorizer and notifying the commissioner, authorizer, school district in which the 
131.14 	charter school is located, and parents of enrolled students about the closure, information 
131.15 	and assistance sufficient to enable the student to re-enroll in another school, the transfer 
131.16 	of student records under section 124E.03, subdivision 5, paragraph (b), and procedures 
131.17 	for closing financial operations.
131.18 	(b) A charter school must design its programs to at least meet the outcomes adopted 
131.19 	by the commissioner for public school students, including world's best workforce goals 
131.20 	under section 120B.11, subdivision 1. In the absence of the commissioner's requirements, 
131.21 	the school must meet the outcomes contained in the contract with the authorizer. The 
131.22 	achievement levels of the outcomes contained in the contract may exceed the achievement 
131.23 	levels of any outcomes adopted by the commissioner for public school students.

131.24 	Sec. 5. Minnesota Statutes 2015 Supplement, section 124E.10, subdivision 5, is 
131.25 	amended to read:
131.26 		Subd. 5.Mutual nonrenewal. If the authorizer and the charter school board of 
131.27 	directors mutually agree not to renew the contract, or if the governing board of an approved 
131.28 	authorizer votes to withdraw as an approved authorizer for a reason unrelated to any cause 
131.29 	under subdivision 4, a change in authorizers is allowed. The authorizer and the school 
131.30 	board must jointly submit a written and signed letter of their intent to the commissioner to 
131.31 	mutually not renew the contract. The authorizer that is a party to the existing contract must 
131.32 	inform the proposed authorizer about the fiscal, operational, and student performance status 
131.33 	of the school, as well as any including unmet contract outcomes and other outstanding 
131.34 	contractual obligations that exist. The charter contract between the proposed authorizer 
131.35 	and the school must identify and provide a plan to address any outstanding obligations from 
132.1 	the previous contract. The proposed contract must be submitted at least 105 business days 
132.2 	before the end of the existing charter contract. The commissioner shall have 30 business 
132.3 	days to review and make a determination. The proposed authorizer and the school shall 
132.4 	have 15 business days to respond to the determination and address any issues identified by 
132.5 	the commissioner. A final determination by the commissioner shall be made no later than 
132.6 	45 business days before the end of the current charter contract. If no change in authorizer 
132.7 	is approved, the school and the current authorizer may withdraw their letter of nonrenewal 
132.8 	and enter into a new contract. If the transfer of authorizers is not approved and the current 
132.9 	authorizer and the school do not withdraw their letter and enter into a new contract, the 
132.10 	school must be dissolved according to applicable law and the terms of the contract.

132.11 	Sec. 6. Minnesota Statutes 2015 Supplement, section 124E.16, subdivision 2, is 
132.12 	amended to read:
132.13 		Subd. 2.Annual public reports. (a) A charter school must publish an annual report 
132.14 	approved by the board of directors. The annual report must at least include information 
132.15 	on school enrollment, student attrition, governance and management, staffing, finances, 
132.16 	academic performance, innovative practices and implementation, and future plans. A 
132.17 	charter school may combine this report with the reporting required under section 120B.11. 
132.18 	A charter school must post the annual report on the school's official Web site. A charter 
132.19 	school must also distribute the annual report by publication, mail, or electronic means to 
132.20 	its authorizer, school employees, and parents and legal guardians of students enrolled in 
132.21 	the charter school. The reports are public data under chapter 13.
132.22 	(b) The commissioner shall establish specifications for An authorizer must submit an 
132.23 	authorizer's annual public report that in a manner specified by the commissioner by January 
132.24 	15 for the previous school year ending June 30 that shall at least include key indicators of 
132.25 	school academic, operational, and financial performance. The report is part of the system 
132.26 	to evaluate authorizer performance under section 124E.05, subdivision 5. The report shall 
132.27 	at least include key indicators of school academic, operational, and financial performance.

132.28 	Sec. 7. Minnesota Statutes 2014, section 127A.45, subdivision 6a, is amended to read:
132.29 		Subd. 6a.Cash flow adjustment. The board of directors of any charter school 
132.30 	serving fewer than 200 students where the percent of students eligible for special 
132.31 	education services equals at least 90 percent of the charter school's total enrollment 
132.32 	eligible special education charter school under section 124E.21, subdivision 2, may 
132.33 	request that the commissioner of education accelerate the school's cash flow under this 
132.34 	section. The commissioner must approve a properly submitted request within 30 days of 
133.1 	its receipt. The commissioner must accelerate the school's regular special education aid 
133.2 	payments according to the schedule in the school's request and modify the payments to the 
133.3 	school under subdivision 3 accordingly. A school must not receive current payments of 
133.4 	regular special education aid exceeding 90 percent of its estimated aid entitlement for the 
133.5 	fiscal year. The commissioner must delay the special education aid payments to all other 
133.6 	school districts and charter schools in proportion to each district or charter school's total 
133.7 	share of regular special education aid such that the overall aid payment savings from the 
133.8 	aid payment shift remains unchanged for any fiscal year.

133.9 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
133.10 	later.

133.11 	Sec. 8. Laws 2015, First Special Session chapter 3, article 4, section 4, the effective 
133.12 	date, is amended to read:

133.13 	EFFECTIVE DATE. This section is effective the day following final enactment 
133.14 	except the provision under paragraph (g) allowing prekindergarten deaf or hard-of-hearing 
133.15 	pupils to enroll in a charter school is effective only if the commissioner of education 
133.16 	determines there is no added cost attributable to the pupil for the 2016-2017 school year 
133.17 	and later.

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

133.19 	ARTICLE 10
133.20 	SPECIAL EDUCATION

133.21 	Section 1. Minnesota Statutes 2015 Supplement, section 120B.125, is amended to read:
133.22 	120B.125 PLANNING FOR STUDENTS' SUCCESSFUL TRANSITION 
133.23 	TO POSTSECONDARY EDUCATION AND EMPLOYMENT; PERSONAL 
133.24 	LEARNING PLANS.
133.25 	(a) Consistent with sections 120B.13, 120B.131, 120B.132, 120B.14, 120B.15, 
133.26 	120B.30, subdivision 1, paragraph (c), 125A.08, and other related sections, school 
133.27 	districts, beginning in the 2013-2014 school year, must assist all students by no later 
133.28 	than grade 9 to explore their educational, college, and career interests, aptitudes, and 
133.29 	aspirations and develop a plan for a smooth and successful transition to postsecondary 
133.30 	education or employment. All students' plans must:
133.31 	(1) provide a comprehensive plan to prepare for and complete a career and college 
133.32 	ready curriculum by meeting state and local academic standards and developing career and 
134.1 	employment-related skills such as team work, collaboration, creativity, communication, 
134.2 	critical thinking, and good work habits;
134.3 	(2) emphasize academic rigor and high expectations;
134.4 	(3) help students identify interests, aptitudes, aspirations, and personal learning 
134.5 	styles that may affect their career and college ready goals and postsecondary education 
134.6 	and employment choices;
134.7 	(4) set appropriate career and college ready goals with timelines that identify 
134.8 	effective means for achieving those goals;
134.9 	(5) help students access education and career options;
134.10 	(6) integrate strong academic content into career-focused courses and applied and 
134.11 	experiential learning opportunities and integrate relevant career-focused courses and 
134.12 	applied and experiential learning opportunities into strong academic content;
134.13 	(7) help identify and access appropriate counseling and other supports and assistance 
134.14 	that enable students to complete required coursework, prepare for postsecondary education 
134.15 	and careers, and obtain information about postsecondary education costs and eligibility 
134.16 	for financial aid and scholarship;
134.17 	(8) help identify collaborative partnerships among prekindergarten through grade 
134.18 	12 schools, postsecondary institutions, economic development agencies, and local and 
134.19 	regional employers that support students' transition to postsecondary education and 
134.20 	employment and provide students with applied and experiential learning opportunities; and
134.21 	(9) be reviewed and revised at least annually by the student, the student's parent or 
134.22 	guardian, and the school or district to ensure that the student's course-taking schedule keeps 
134.23 	the student making adequate progress to meet state and local academic standards and high 
134.24 	school graduation requirements and with a reasonable chance to succeed with employment 
134.25 	or postsecondary education without the need to first complete remedial course work.
134.26 	(b) A school district may develop grade-level curricula or provide instruction that 
134.27 	introduces students to various careers, but must not require any curriculum, instruction, 
134.28 	or employment-related activity that obligates an elementary or secondary student to 
134.29 	involuntarily select or pursue a career, career interest, employment goals, or related job 
134.30 	training.
134.31 	(c) Educators must possess the knowledge and skills to effectively teach all English 
134.32 	learners in their classrooms. School districts must provide appropriate curriculum, 
134.33 	targeted materials, professional development opportunities for educators, and sufficient 
134.34 	resources to enable English learners to become career and college ready.
134.35 	(d) When assisting students in developing a plan for a smooth and successful 
134.36 	transition to postsecondary education and employment, districts must recognize the unique 
135.1 	possibilities of each student and ensure that the contents of each student's plan reflect the 
135.2 	student's unique talents, skills, and abilities as the student grows, develops, and learns.
135.3 	(e) If a student with a disability has an individualized education program (IEP) or 
135.4 	standardized written plan that meets the plan components of this section, the IEP satisfies 
135.5 	the requirement and no additional transition plan is needed.

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

135.12 	Sec. 3. Minnesota Statutes 2014, section 124D.15, subdivision 15, is amended to read:
135.13 		Subd. 15.Eligibility. A child is eligible to participate in a school readiness program 
135.14 	if the child:
135.15 	(1) is at least three years old on September 1;
135.16 	(2) has completed health and developmental screening within 90 days of program 
135.17 	enrollment under sections 121A.16 to 121A.19; and
135.18 	(3) has one or more of the following risk factors:
135.19 	(i) qualifies for free or reduced-price lunch;
135.20 	(ii) is an English learner;
135.21 	(iii) is homeless;
135.22 	(iv) has an individualized education program (IEP) or an individual interagency 
135.23 	intervention plan (IIIP) standardized written plan;
135.24 	(v) is identified, through health and developmental screenings under sections 
135.25 	121A.16 to 121A.19, with a potential risk factor that may influence learning; or
135.26 	(vi) is defined as at-risk at risk by the school district.

135.27 	Sec. 4. Minnesota Statutes 2015 Supplement, section 125A.08, is amended to read:
135.28 	125A.08 INDIVIDUALIZED EDUCATION PROGRAMS.
135.29 	(a) At the beginning of each school year, each school district shall have in effect, for 
135.30 	each child with a disability, an individualized education program.
135.31 	(b) As defined in this section, every district must ensure the following:
135.32 	(1) all students with disabilities are provided the special instruction and services 
135.33 	which are appropriate to their needs. Where the individualized education program team 
136.1 	has determined appropriate goals and objectives based on the student's needs, including 
136.2 	the extent to which the student can be included in the least restrictive environment, 
136.3 	and where there are essentially equivalent and effective instruction, related services, or 
136.4 	assistive technology devices available to meet the student's needs, cost to the district may 
136.5 	be among the factors considered by the team in choosing how to provide the appropriate 
136.6 	services, instruction, or devices that are to be made part of the student's individualized 
136.7 	education program. The individualized education program team shall consider and 
136.8 	may authorize services covered by medical assistance according to section 256B.0625, 
136.9 	subdivision 26. The student's needs and the special education instruction and services to 
136.10 	be provided must be agreed upon through the development of an individualized education 
136.11 	program. The program must address the student's need to develop skills to live and work 
136.12 	as independently as possible within the community. The individualized education program 
136.13 	team must consider positive behavioral interventions, strategies, and supports that address 
136.14 	behavior needs for children. During grade 9, the program must address the student's 
136.15 	needs for transition from secondary services to postsecondary education and training, 
136.16 	employment, community participation, recreation, and leisure and home living. In 
136.17 	developing the program, districts must inform parents of the full range of transitional goals 
136.18 	and related services that should be considered. The program must include a statement of 
136.19 	the needed transition services, including a statement of the interagency responsibilities 
136.20 	or linkages or both before secondary services are concluded. If the IEP meets the plan 
136.21 	components in section 120B.125, the IEP satisfies the requirement and no additional 
136.22 	transition plan is needed;
136.23 	(2) children with a disability under age five and their families are provided special 
136.24 	instruction and services appropriate to the child's level of functioning and needs;
136.25 	(3) children with a disability and their parents or guardians are guaranteed procedural 
136.26 	safeguards and the right to participate in decisions involving identification, assessment 
136.27 	including assistive technology assessment, and educational placement of children with a 
136.28 	disability;
136.29 	(4) eligibility and needs of children with a disability are determined by an initial 
136.30 	evaluation or reevaluation, which may be completed using existing data under United 
136.31 	States Code, title 20, section 33, et seq.;
136.32 	(5) to the maximum extent appropriate, children with a disability, including those 
136.33 	in public or private institutions or other care facilities, are educated with children who 
136.34 	are not disabled, and that special classes, separate schooling, or other removal of children 
136.35 	with a disability from the regular educational environment occurs only when and to the 
137.1 	extent that the nature or severity of the disability is such that education in regular classes 
137.2 	with the use of supplementary services cannot be achieved satisfactorily;
137.3 	(6) in accordance with recognized professional standards, testing and evaluation 
137.4 	materials, and procedures used for the purposes of classification and placement of children 
137.5 	with a disability are selected and administered so as not to be racially or culturally 
137.6 	discriminatory; and
137.7 	(7) the rights of the child are protected when the parents or guardians are not known 
137.8 	or not available, or the child is a ward of the state.
137.9 	(c) For all paraprofessionals employed to work in programs whose role in part is 
137.10 	to provide direct support to students with disabilities, the school board in each district 
137.11 	shall ensure that:
137.12 	(1) before or beginning at the time of employment, each paraprofessional must 
137.13 	develop sufficient knowledge and skills in emergency procedures, building orientation, 
137.14 	roles and responsibilities, confidentiality, vulnerability, and reportability, among other 
137.15 	things, to begin meeting the needs, especially disability-specific and behavioral needs, of 
137.16 	the students with whom the paraprofessional works;
137.17 	(2) annual training opportunities are required to enable the paraprofessional to 
137.18 	continue to further develop the knowledge and skills that are specific to the students with 
137.19 	whom the paraprofessional works, including understanding disabilities, the unique and 
137.20 	individual needs of each student according to the student's disability and how the disability 
137.21 	affects the student's education and behavior, following lesson plans, and implementing 
137.22 	follow-up instructional procedures and activities; and
137.23 	(3) a districtwide process obligates each paraprofessional to work under the ongoing 
137.24 	direction of a licensed teacher and, where appropriate and possible, the supervision of a 
137.25 	school nurse.

137.26 	Sec. 5. Minnesota Statutes 2015 Supplement, section 125A.083, is amended to read:
137.27 	125A.083 STUDENT INFORMATION SYSTEMS; TRANSFERRING 
137.28 	RECORDS.
137.29 	(a) To efficiently and effectively meet federal and state compliance and 
137.30 	accountability requirements using an online case management reporting system, beginning 
137.31 	July 1, 2018, a school districts district may contract only for a student information system 
137.32 	that is Schools Interoperability Framework compliant and compatible with the.
137.33 	(b) Beginning on July 1 of the fiscal year following the year that the commissioner 
137.34 	of education certifies to the legislature under paragraph (c) that a compatible compliant 
137.35 	system exists, a school district must use an online system for compliance reporting 
138.1 	under section 125A.085beginning in the 2018-2019 school year and later. A district's 
138.2 	information system under this section must facilitate the seamless transfer of student 
138.3 	records for a student with disabilities who transfers between school districts, including 
138.4 	records containing the student's evaluation report, service plan, and other due process 
138.5 	forms and information, regardless of what information system any one district uses.
138.6 	(c) As a part of the annual report required under section 125A.085, paragraph (f), the 
138.7 	commissioner must specify whether a compatible compliant system exists and if so, list 
138.8 	each vendor's systems that meet the criteria in paragraph (b).

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

138.10 	Sec. 6. Minnesota Statutes 2014, section 125A.091, subdivision 11, is amended to read:
138.11 		Subd. 11.Facilitated team meeting. A facilitated team meeting is an IEP, IFSP, or 
138.12 	IIIPmultiagency team meeting led by an impartial state-provided facilitator to promote 
138.13 	effective communication and assist a team in developing an individualized education 
138.14 	program.

138.15 	Sec. 7. Minnesota Statutes 2015 Supplement, section 125A.0942, subdivision 3, 
138.16 	is amended to read:
138.17 		Subd. 3.Physical holding or seclusion. (a) Physical holding or seclusion may be 
138.18 	used only in an emergency. A school that uses physical holding or seclusion shall meet the 
138.19 	following requirements:
138.20 	(1) physical holding or seclusion is the least intrusive intervention that effectively 
138.21 	responds to the emergency;
138.22 	(2) physical holding or seclusion is not used to discipline a noncompliant child;
138.23 	(3) physical holding or seclusion ends when the threat of harm ends and the staff 
138.24 	determines the child can safely return to the classroom or activity;
138.25 	(4) staff directly observes the child while physical holding or seclusion is being used;
138.26 	(5) each time physical holding or seclusion is used, the staff person who implements 
138.27 	or oversees the physical holding or seclusion documents, as soon as possible after the 
138.28 	incident concludes, the following information:
138.29 	(i) a description of the incident that led to the physical holding or seclusion;
138.30 	(ii) why a less restrictive measure failed or was determined by staff to be 
138.31 	inappropriate or impractical;
138.32 	(iii) the time the physical holding or seclusion began and the time the child was 
138.33 	released; and
138.34 	(iv) a brief record of the child's behavioral and physical status;
139.1 	(6) the room used for seclusion must:
139.2 	(i) be at least six feet by five feet;
139.3 	(ii) be well lit, well ventilated, adequately heated, and clean;
139.4 	(iii) have a window that allows staff to directly observe a child in seclusion;
139.5 	(iv) have tamperproof fixtures, electrical switches located immediately outside the 
139.6 	door, and secure ceilings;
139.7 	(v) have doors that open out and are unlocked, locked with keyless locks that 
139.8 	have immediate release mechanisms, or locked with locks that have immediate release 
139.9 	mechanisms connected with a fire and emergency system; and
139.10 	(vi) not contain objects that a child may use to injure the child or others; and
139.11 	(7) before using a room for seclusion, a school must:
139.12 	(i) receive written notice from local authorities that the room and the locking 
139.13 	mechanisms comply with applicable building, fire, and safety codes; and
139.14 	(ii) register the room with the commissioner, who may view that room; and.
139.15 	(8) until August 1, 2015, a school district may use prone restraints with children 
139.16 	age five or older if:
139.17 	(i) the district has provided to the department a list of staff who have had specific 
139.18 	training on the use of prone restraints;
139.19 	(ii) the district provides information on the type of training that was provided and 
139.20 	by whom;
139.21 	(iii) only staff who received specific training use prone restraints;
139.22 	(iv) each incident of the use of prone restraints is reported to the department within 
139.23 	five working days on a form provided by the department; and
139.24 	(v) the district, before using prone restraints, must review any known medical or 
139.25 	psychological limitations that contraindicate the use of prone restraints.
139.26 	The department must collect data on districts' use of prone restraints and publish the 
139.27 	data in a readily accessible format on the department's Web site on a quarterly basis.
139.28 	(b) By February 1, 2015, and annually thereafter, stakeholders may, as necessary, 
139.29 	recommend to the commissioner specific and measurable implementation and outcome 
139.30 	goals for reducing the use of restrictive procedures and the commissioner must submit to 
139.31 	the legislature a report on districts' progress in reducing the use of restrictive procedures 
139.32 	that recommends how to further reduce these procedures and eliminate the use of 
139.33 	prone restraints seclusion. The statewide plan includes the following components: 
139.34 	measurable goals; the resources, training, technical assistance, mental health services, 
139.35 	and collaborative efforts needed to significantly reduce districts' use of prone restraints
139.36 	seclusion; and recommendations to clarify and improve the law governing districts' use 
140.1 	of restrictive procedures. The commissioner must consult with interested stakeholders 
140.2 	when preparing the report, including representatives of advocacy organizations, special 
140.3 	education directors, teachers, paraprofessionals, intermediate school districts, school 
140.4 	boards, day treatment providers, county social services, state human services department 
140.5 	staff, mental health professionals, and autism experts. By June 30Beginning with the 
140.6 	2016-2017 school year, in a form and manner determined by the commissioner, districts 
140.7 	must report data quarterly to the department by January 15, April 15, July 15, and October 
140.8 	15 about individual students who have been secluded. By July 15 each year, districts 
140.9 	must report summary data on their use of restrictive procedures to the department for 
140.10 	the prior school year, July 1 through June 30, in a form and manner determined by the 
140.11 	commissioner. The summary data must include information about the use of restrictive 
140.12 	procedures, including use of reasonable force under section 121A.582.

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

140.15 	Sec. 8. Minnesota Statutes 2014, section 125A.0942, subdivision 4, is amended to read:
140.16 		Subd. 4.Prohibitions. The following actions or procedures are prohibited:
140.17 	(1) engaging in conduct prohibited under section 121A.58;
140.18 	(2) requiring a child to assume and maintain a specified physical position, activity, 
140.19 	or posture that induces physical pain;
140.20 	(3) totally or partially restricting a child's senses as punishment;
140.21 	(4) presenting an intense sound, light, or other sensory stimuli using smell, taste, 
140.22 	substance, or spray as punishment;
140.23 	(5) denying or restricting a child's access to equipment and devices such as walkers, 
140.24 	wheelchairs, hearing aids, and communication boards that facilitate the child's functioning, 
140.25 	except when temporarily removing the equipment or device is needed to prevent injury 
140.26 	to the child or others or serious damage to the equipment or device, in which case the 
140.27 	equipment or device shall be returned to the child as soon as possible;
140.28 	(6) interacting with a child in a manner that constitutes sexual abuse, neglect, or 
140.29 	physical abuse under section 626.556;
140.30 	(7) withholding regularly scheduled meals or water;
140.31 	(8) denying access to bathroom facilities; and
140.32 	(9) physical holding that restricts or impairs a child's ability to breathe, restricts or 
140.33 	impairs a child's ability to communicate distress, places pressure or weight on a child's 
140.34 	head, throat, neck, chest, lungs, sternum, diaphragm, back, or abdomen, or results in 
140.35 	straddling a child's torso.; and
141.1 	(10) prone restraint.

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

141.3 	Sec. 9. Minnesota Statutes 2015 Supplement, section 125A.11, subdivision 1, is 
141.4 	amended to read:
141.5 		Subdivision 1.Nonresident tuition rate; other costs. (a) For fiscal year 2015 and 
141.6 	later, when a school district provides special instruction and services for a pupil with 
141.7 	a disability as defined in section 125A.02 outside the district of residence, excluding 
141.8 	a pupil for whom an adjustment to special education aid is calculated according to 
141.9 	section 127A.47, subdivision 7, paragraphs (b) to (d), special education aid paid to the 
141.10 	resident district must be reduced by an amount equal to (1) the actual cost of providing 
141.11 	special instruction and services to the pupil, including a proportionate amount for special 
141.12 	transportation and unreimbursed building lease and debt service costs for facilities 
141.13 	used primarily for special education, plus (2) the amount of general education revenue, 
141.14 	excluding local optional revenue, plus local optional aid and referendum equalization aid 
141.15 	attributable to that pupil, calculated using the resident district's average general education 
141.16 	revenue and referendum equalization aid per adjusted pupil unit excluding basic skills 
141.17 	revenue, elementary sparsity revenue and secondary sparsity revenue, minus (3) the 
141.18 	amount of special education aid for children with a disability under section 125A.76 
141.19 	received on behalf of that child, minus (4) if the pupil receives special instruction and 
141.20 	services outside the regular classroom for more than 60 percent of the school day, the 
141.21 	amount of general education revenue and referendum equalization aid, excluding portions 
141.22 	attributable to district and school administration, district support services, operations and 
141.23 	maintenance, capital expenditures, and pupil transportation, attributable to that pupil 
141.24 	for the portion of time the pupil receives special instruction and services outside of the 
141.25 	regular classroom, calculated using the resident district's average general education 
141.26 	revenue and referendum equalization aid per adjusted pupil unit excluding basic skills 
141.27 	revenue, elementary sparsity revenue and secondary sparsity revenue and the serving 
141.28 	district's basic skills revenue, elementary sparsity revenue and secondary sparsity revenue 
141.29 	per adjusted pupil unit. Notwithstanding clauses (1) and (4), for pupils served by a 
141.30 	cooperative unit without a fiscal agent school district, the general education revenue and 
141.31 	referendum equalization aid attributable to a pupil must be calculated using the resident 
141.32 	district's average general education revenue and referendum equalization aid excluding 
141.33 	compensatory revenue, elementary sparsity revenue, and secondary sparsity revenue. 
141.34 	Special education aid paid to the district or cooperative providing special instruction and 
141.35 	services for the pupil must be increased by the amount of the reduction in the aid paid 
142.1 	to the resident district. Amounts paid to cooperatives under this subdivision and section 
142.2 	127A.47, subdivision 7, shall be recognized and reported as revenues and expenditures on 
142.3 	the resident school district's books of account under sections 123B.75 and 123B.76. If 
142.4 	the resident district's special education aid is insufficient to make the full adjustment, the 
142.5 	remaining adjustment shall be made to other state aid due to the district.
142.6 	(b) Notwithstanding paragraph (a), when a charter school receiving special education 
142.7 	aid under section 124E.21, subdivision 3, provides special instruction and services for 
142.8 	a pupil with a disability as defined in section 125A.02, excluding a pupil for whom an 
142.9 	adjustment to special education aid is calculated according to section 127A.46, subdivision 
142.10 	7, paragraphs (b) to (e), special education aid paid to the resident district must be reduced 
142.11 	by an amount equal to that calculated under paragraph (a) as if the charter school received 
142.12 	aid under section 124E.21, subdivision 1. Notwithstanding paragraph (a), special education 
142.13 	aid paid to the charter school providing special instruction and services for the pupil must 
142.14 	not be increased by the amount of the reduction in the aid paid to the resident district.
142.15 	(c) Notwithstanding paragraph (a) and section 127A.47, subdivision 7, paragraphs 
142.16 	(b) to (d),:
142.17 	(1) an intermediate district or a special education cooperative may recover 
142.18 	unreimbursed costs of serving pupils with a disability, including building lease, debt 
142.19 	service, and indirect costs necessary for the general operation of the organization, by 
142.20 	billing membership fees and nonmember access fees to the resident district;
142.21 	(2) a charter school where more than 30 percent of enrolled students receive special 
142.22 	education and related services, a site approved under section 125A.515, an intermediate 
142.23 	district, or a special education cooperative, or a school district that served as the applicant 
142.24 	agency for a group of school districts for federal special education aids for fiscal year 2006
142.25 	may apply to the commissioner for authority to charge the resident district an additional 
142.26 	amount to recover any remaining unreimbursed costs of serving pupils with a disability.;
142.27 	(3) the billing under clause (1) or application under clause (2) must include a 
142.28 	description of the costs and the calculations used to determine the unreimbursed portion to 
142.29 	be charged to the resident district. Amounts approved by the commissioner under this 
142.30 	paragraph clause (2) must be included in the tuition billings or aid adjustments under 
142.31 	paragraph (a), or section 127A.47, subdivision 7, paragraphs (b) to (d), as applicable.
142.32 	(d) For purposes of this subdivision and section 127A.47, subdivision 7, paragraph 
142.33 	(b), "general education revenue and referendum equalization aid" means the sum of the 
142.34 	general education revenue according to section 126C.10, subdivision 1, excluding the 
142.35 	local optional levy according to section 126C.10, subdivision 2e, paragraph (c), plus the 
142.36 	referendum equalization aid according to section 126C.17, subdivision 7.

143.1 	Sec. 10. Minnesota Statutes 2015 Supplement, section 125A.21, subdivision 3, is 
143.2 	amended to read:
143.3 		Subd. 3.Use of reimbursements. Of the reimbursements received, districts may
143.4 	School districts must reserve third-party revenue and must spend the reimbursements 
143.5 	received only to:
143.6 	(1) retain an amount sufficient to compensate the district for its administrative costs 
143.7 	of obtaining reimbursements;
143.8 	(2) regularly obtain from education- and health-related entities training and other 
143.9 	appropriate technical assistance designed to improve the district's ability to access 
143.10 	third-party payments for individualized education program or individualized family 
143.11 	service plan health-related services; or
143.12 	(3) reallocate reimbursements for the benefit of students with individualized 
143.13 	education programs or individualized family service plans in the district.

143.14 	Sec. 11. Minnesota Statutes 2015 Supplement, section 125A.63, subdivision 4, is 
143.15 	amended to read:
143.16 		Subd. 4.Advisory committees. (a) The commissioner shall establish advisory 
143.17 	committees for the deaf and hard-of-hearing and for the blind and visually impaired. The 
143.18 	advisory committees shall develop recommendations and submit an annual report to the 
143.19 	commissioner on the form and in the manner prescribed by the commissioner.
143.20 	(b) The advisory committees for the deaf and hard of hearing and for the blind and 
143.21 	visually impaired shall meet periodically at least four times per year and. The committees 
143.22 	must  each review, approve, and submit an annual a biennial report to the commissioner, 
143.23 	the education policy and finance committees of the legislature, and the Commission of 
143.24 	Deaf, DeafBlind, and Hard-of-Hearing Minnesotans. The reports must, at least:
143.25 	(1) identify and report the aggregate, data-based education outcomes for children 
143.26 	with the primary disability classification of deaf and hard of hearing or of blind and 
143.27 	visually impaired, consistent with the commissioner's child count reporting practices, the 
143.28 	commissioner's state and local outcome data reporting system by district and region, and 
143.29 	the school performance report cards under section 120B.36, subdivision 1; and
143.30 	(2) describe the implementation of a data-based plan for improving the education 
143.31 	outcomes of deaf and hard of hearing or blind and visually impaired children that is 
143.32 	premised on evidence-based best practices, and provide a cost estimate for ongoing 
143.33 	implementation of the plan.

144.1 	Sec. 12. Minnesota Statutes 2015 Supplement, section 125A.76, subdivision 2c, 
144.2 	is amended to read:
144.3 		Subd. 2c.Special education aid. (a) For fiscal year 2014 and fiscal year 2015, a 
144.4 	district's special education aid equals the sum of the district's special education aid under 
144.5 	subdivision 5, the district's cross subsidy reduction aid under subdivision 2b, and the 
144.6 	district's excess cost aid under section 125A.79, subdivision 7.
144.7 	(b) For fiscal year 2016 and later, a district's special education aid equals the sum of 
144.8 	the district's special education initial aid under subdivision 2a and the district's excess cost 
144.9 	aid under section 125A.79, subdivision 5.
144.10 	(c) Notwithstanding paragraph (b), for fiscal year 2016, the special education aid for 
144.11 	a school district must not exceed the sum of the special education aid the district would 
144.12 	have received for fiscal year 2016 under Minnesota Statutes 2012, sections 125A.76 
144.13 	and 125A.79, as adjusted according to Minnesota Statutes 2012, sections 125A.11 and 
144.14 	127A.47, subdivision 7, and the product of the district's average daily membership served 
144.15 	and the special education aid increase limit.
144.16 	(d) Notwithstanding paragraph (b), for fiscal year 2017 and later, the special education 
144.17 	aid for a school district must not exceed the sum of: (i) the product of the district's average 
144.18 	daily membership served and the special education aid increase limit and (ii) the product 
144.19 	of the sum of the special education aid the district would have received for fiscal year 2016 
144.20 	under Minnesota Statutes 2012, sections 125A.76 and 125A.79, as adjusted according 
144.21 	to Minnesota Statutes 2012, sections 125A.11 and 127A.47, subdivision 7, the ratio of 
144.22 	the district's average daily membership served for the current fiscal year to the district's 
144.23 	average daily membership served for fiscal year 2016, and the program growth factor.
144.24 	(e) Notwithstanding paragraph (b), for fiscal year 2016 and later the special 
144.25 	education aid for a school district, not including a charter school or cooperative unit as 
144.26 	defined in section 123A.24, must not be less than the lesser of (1) the district's nonfederal 
144.27 	special education expenditures for that fiscal year or (2) the product of the sum of the 
144.28 	special education aid the district would have received for fiscal year 2016 under Minnesota 
144.29 	Statutes 2012, sections 125A.76 and 125A.79, as adjusted according to Minnesota Statutes 
144.30 	2012, sections 125A.11 and 127A.47, subdivision 7, the ratio of the district's adjusted 
144.31 	daily membership for the current fiscal year to the district's average daily membership for 
144.32 	fiscal year 2016, and the program growth factor.
144.33 	(f) Notwithstanding subdivision 2a and section 125A.79, a charter school in its first 
144.34 	year of operation shall generate special education aid based on current year data. A newly 
144.35 	formed cooperative unit as defined in section 123A.24 may apply to the commissioner 
144.36 	for approval to generate special education aid for its first year of operation based on 
145.1 	current year data, with an offsetting adjustment to the prior year data used to calculate aid 
145.2 	for programs at participating school districts or previous cooperatives that were replaced 
145.3 	by the new cooperative.
145.4 	(g) The department shall establish procedures through the uniform financial 
145.5 	accounting and reporting system to identify and track all revenues generated from 
145.6 	third-party billings as special education revenue at the school district level; include revenue 
145.7 	generated from third-party billings as special education revenue in the annual cross-subsidy 
145.8 	report; and exclude third-party revenue from calculation of excess cost aid to the districts.

145.9 	Sec. 13. Minnesota Statutes 2015 Supplement, section 125A.79, subdivision 1, is 
145.10 	amended to read:
145.11 		Subdivision 1.Definitions. For the purposes of this section, the definitions in this 
145.12 	subdivision apply.
145.13 	(a) "Unreimbursed old formula special education expenditures" means:
145.14 	(1) old formula special education expenditures for the prior fiscal year; minus
145.15 	(2) for fiscal years 2014 and 2015, the sum of the special education aid under section 
145.16 	125A.76, subdivision 5, for the prior fiscal year and the cross subsidy reduction aid under 
145.17 	section 125A.76, subdivision 2b, and for fiscal year 2016 and later, the special education 
145.18 	initial aid under section 125A.76, subdivision 2a; minus
145.19 	(3) for fiscal year 2016 and later, the amount of general education revenue, excluding 
145.20 	local optional revenue, plus local optional aid and referendum equalization aid for the 
145.21 	prior fiscal year attributable to pupils receiving special instruction and services outside the 
145.22 	regular classroom for more than 60 percent of the school day for the portion of time the 
145.23 	pupils receive special instruction and services outside the regular classroom, excluding 
145.24 	portions attributable to district and school administration, district support services, 
145.25 	operations and maintenance, capital expenditures, and pupil transportation.
145.26 	(b) "Unreimbursed nonfederal special education expenditures" means:
145.27 	(1) nonfederal special education expenditures for the prior fiscal year; minus
145.28 	(2) special education initial aid under section 125A.76, subdivision 2a; minus
145.29 	(3) the amount of general education revenue, excluding local optional revenue, plus 
145.30 	local optional aid, and referendum equalization aid for the prior fiscal year attributable 
145.31 	to pupils receiving special instruction and services outside the regular classroom for 
145.32 	more than 60 percent of the school day for the portion of time the pupils receive special 
145.33 	instruction and services outside of the regular classroom, excluding portions attributable to 
145.34 	district and school administration, district support services, operations and maintenance, 
145.35 	capital expenditures, and pupil transportation.
146.1 	(c) "General revenue" for a school district means the sum of the general education 
146.2 	revenue according to section 126C.10, subdivision 1, excluding transportation sparsity 
146.3 	revenue, local optional revenue, and total operating capital revenue. "General revenue" 
146.4 	for a charter school means the sum of the general education revenue according to section 
146.5 	124E.20, subdivision 1, and transportation revenue according to section 124E.23, 
146.6 	excluding referendum equalization aid, transportation sparsity revenue, and operating 
146.7 	capital revenue.

146.8 	Sec. 14. Minnesota Statutes 2015 Supplement, section 127A.47, subdivision 7, is 
146.9 	amended to read:
146.10 		Subd. 7.Alternative attendance programs. (a) The general education aid and 
146.11 	special education aid for districts must be adjusted for each pupil attending a nonresident 
146.12 	district under sections 123A.05 to 123A.08, 124D.03, 124D.08, and 124D.68. The 
146.13 	adjustments must be made according to this subdivision.
146.14 	(b) For purposes of this subdivision, the "unreimbursed cost of providing special 
146.15 	education and services" means the difference between: (1) the actual cost of providing 
146.16 	special instruction and services, including special transportation and unreimbursed 
146.17 	building lease and debt service costs for facilities used primarily for special education, for 
146.18 	a pupil with a disability, as defined in section 125A.02, or a pupil, as defined in section 
146.19 	125A.51, who is enrolled in a program listed in this subdivision, minus (2) if the pupil 
146.20 	receives special instruction and services outside the regular classroom for more than 
146.21 	60 percent of the school day, the amount of general education revenue, excluding local 
146.22 	optional revenue, plus local optional aid and referendum equalization aid as defined in 
146.23 	section 125A.11, subdivision 1, paragraph (d), attributable to that pupil for the portion of 
146.24 	time the pupil receives special instruction and services outside of the regular classroom, 
146.25 	excluding portions attributable to district and school administration, district support 
146.26 	services, operations and maintenance, capital expenditures, and pupil transportation, 
146.27 	minus (3) special education aid under section 125A.76 attributable to that pupil, that is 
146.28 	received by the district providing special instruction and services. For purposes of this 
146.29 	paragraph, general education revenue and referendum equalization aid attributable to a 
146.30 	pupil must be calculated using the serving district's average general education revenue 
146.31 	and referendum equalization aid per adjusted pupil unit.
146.32 	(c) For fiscal year 2015 and later, special education aid paid to a resident district 
146.33 	must be reduced by an amount equal to 90 percent of the unreimbursed cost of providing 
146.34 	special education and services.
147.1 	(d) Notwithstanding paragraph (c), special education aid paid to a resident district 
147.2 	must be reduced by an amount equal to 100 percent of the unreimbursed cost of special 
147.3 	education and services provided to students at an intermediate district, cooperative, or 
147.4 	charter school where the percent of students eligible for special education services is at 
147.5 	least 70 percent of the charter school's total enrollment.
147.6 	(e) Notwithstanding paragraph (c), special education aid paid to a resident district 
147.7 	must be reduced under paragraph (d) for students at a charter school receiving special 
147.8 	education aid under section 124E.21, subdivision 3, calculated as if the charter school 
147.9 	received special education aid under section 124E.21, subdivision 1.
147.10 	(f) Special education aid paid to the district or cooperative providing special 
147.11 	instruction and services for the pupil, or to the fiscal agent district for a cooperative, must 
147.12 	be increased by the amount of the reduction in the aid paid to the resident district under 
147.13 	paragraphs (c) and (d). If the resident district's special education aid is insufficient to make 
147.14 	the full adjustment under paragraphs (c), (d), and (e), the remaining adjustment shall be 
147.15 	made to other state aids due to the district.
147.16 	(g) Notwithstanding paragraph (a), general education aid paid to the resident district 
147.17 	of a nonspecial education student for whom an eligible special education charter school 
147.18 	receives general education aid under section 124E.20, subdivision 1, paragraph (c), must 
147.19 	be reduced by an amount equal to the difference between the general education aid 
147.20 	attributable to the student under section 124E.20, subdivision 1, paragraph (c), and the 
147.21 	general education aid that the student would have generated for the charter school under 
147.22 	section 124E.20, subdivision 1, paragraph (a). For purposes of this paragraph, "nonspecial 
147.23 	education student" means a student who does not meet the definition of pupil with a 
147.24 	disability as defined in section 125A.02 or the definition of a pupil in section 125A.51.
147.25 	(h) An area learning center operated by a service cooperative, intermediate district, 
147.26 	education district, or a joint powers cooperative may elect through the action of the 
147.27 	constituent boards to charge the resident district tuition for pupils rather than to have the 
147.28 	general education revenue paid to a fiscal agent school district. Except as provided in 
147.29 	paragraph (f), the district of residence must pay tuition equal to at least 90 and no more 
147.30 	than 100 percent of the district average general education revenue per pupil unit minus 
147.31 	an amount equal to the product of the formula allowance according to section 126C.10, 
147.32 	subdivision 2, times .0466, calculated without compensatory revenue, local optional 
147.33 	revenue, and transportation sparsity revenue, times the number of pupil units for pupils 
147.34 	attending the area learning center.

148.1 	Sec. 15. Laws 2015, First Special Session chapter 3, article 5, section 30, subdivision 
148.2 	2, is amended to read:
148.3 		Subd. 2.Special education; regular. For special education aid under Minnesota 
148.4 	Statutes, section 125A.75:

148.5
148.6		$ 
	1,170,929,000
1,183,619,000
	.....
	2016
	
148.7
148.8		$ 
	1,229,706,000
1,246,997,000
	.....
	2017
	
148.9 	The 2016 appropriation includes $137,932,000 for 2015 and $1,032,997,000
148.10 	$1,045,687,000 for 2016.
148.11 	The 2017 appropriation includes $145,355,000 $147,202,000 for 2016 and 
148.12 	$1,084,351,000 $1,099,795,000 for 2017.

148.13 	Sec. 16. REDUCING STATE-GENERATED SPECIAL EDUCATION 
148.14 	PAPERWORK.
 148.15 	Notwithstanding other law to the contrary in fiscal years 2017 and 2018, the 
148.16 	commissioner of education must use existing budgetary resources to identify and remove 
148.17 	25 percent of the paperwork burden on Minnesota special education teachers that results 
148.18 	from state but not federally mandated special education compliance reporting requirements.

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

148.20 	Sec. 17. APPROPRIATION CANCELED.
 148.21 	$1,686,000 on June 30, 2016, is transferred from the information and 
148.22 	telecommunications technology systems and services account under Minnesota Statutes, 
148.23 	section 16E.21, to the general fund. This represents the amount the Department of 
148.24 	Education transferred to that account in fiscal year 2015 after determining that the special 
148.25 	education paperwork reduction activities authorized in an appropriation under Laws 2013, 
148.26 	chapter 116, article 5, section 31, subdivision 8, were not feasible based on a onetime 
148.27 	appropriation.

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

148.29 	ARTICLE 11
148.30 	FACILITIES AND TECHNOLOGY

148.31 	Section 1. Minnesota Statutes 2015 Supplement, section 123B.53, subdivision 1, is 
148.32 	amended to read:
149.1 		Subdivision 1.Definitions. (a) For purposes of this section, the eligible debt service 
149.2 	revenue of a district is defined as follows:
149.3 	(1) the amount needed to produce between five and six percent in excess of the 
149.4 	amount needed to meet when due the principal and interest payments on the obligations 
149.5 	of the district for eligible projects according to subdivision 2, including the amounts 
149.6 	necessary for repayment of energy loans according to section 216C.37 or sections 298.292 
149.7 	to 298.298, debt service loans, capital loans, and lease purchase payments under section 
149.8 	126C.40, subdivision 2, excluding long-term facilities maintenance levies under section 
149.9 	123B.595, minus
149.10 	(2) the amount of debt service excess levy reduction for that school year calculated 
149.11 	according to the procedure established by the commissioner.
149.12 	(b) The obligations in this paragraph are excluded from eligible debt service revenue:
149.13 	(1) obligations under section 123B.61;
149.14 	(2) the part of debt service principal and interest paid from the taconite environmental 
149.15 	protection fund or Douglas J. Johnson economic protection trust, excluding the portion of 
149.16 	taconite payments from the Iron Range school consolidation and cooperatively operated 
149.17 	school account under section 298.28, subdivision 7a;
149.18 	(3) obligations issued under Laws 1991, chapter 265, article 5, section 18, as 
149.19 	amended by Laws 1992, chapter 499, article 5, section 24;
149.20 	(4) obligations under section 123B.62; and
149.21 	(5) obligations equalized under section 123B.535.
149.22 	(c) For purposes of this section, if a preexisting school district reorganized under 
149.23 	sections 123A.35 to 123A.43, 123A.46, and 123A.48 is solely responsible for retirement 
149.24 	of the preexisting district's bonded indebtedness, capital loans or debt service loans, debt 
149.25 	service equalization aid must be computed separately for each of the preexisting districts.
149.26 	(d) For purposes of this section, the adjusted net tax capacity determined according 
149.27 	to sections 127A.48 and 273.1325 shall be adjusted to include the tax capacity of property 
149.28 	generally exempted from ad valorem taxes under section 272.02, subdivision 64.

149.29 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
149.30 	later.

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

150.3 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
150.4 	later.

150.5 	Sec. 3. Minnesota Statutes 2015 Supplement, section 123B.595, subdivision 4, is 
150.6 	amended to read:
150.7 		Subd. 4.Facilities plans. (a) To qualify for revenue under this section, a school 
150.8 	district or intermediate district, not including a charter school, must have a ten-year facility 
150.9 	plan adopted by the school board and approved by the commissioner. The plan must include 
150.10 	provisions for implementing a health and safety program that complies with health, safety, 
150.11 	and environmental regulations and best practices, including indoor air quality management.
150.12 	(b) The district must annually update the plan, biennially submit a facility 
150.13 	maintenance the plan to the commissioner for approval by July 31, and indicate whether 
150.14 	the district will issue bonds to finance the plan or levy for the costs.
150.15 	(c) For school districts issuing bonds to finance the plan, the plan must include a 
150.16 	debt service schedule demonstrating that the debt service revenue required to pay the 
150.17 	principal and interest on the bonds each year will not exceed the projected long-term 
150.18 	facilities revenue for that year.

150.19 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
150.20 	later.

150.21 	Sec. 4. Minnesota Statutes 2015 Supplement, section 123B.595, subdivision 7, is 
150.22 	amended to read:
150.23 		Subd. 7.Long-term facilities maintenance equalization revenue. (a) For fiscal 
150.24 	year 2017 only, a district's long-term facilities maintenance equalization revenue equals 
150.25 	the lesser of (1) $193 times the adjusted pupil units or (2) the district's revenue under 
150.26 	subdivision 1.
150.27 	(b) For fiscal year 2018 only, a district's long-term facilities maintenance 
150.28 	equalization revenue equals the lesser of (1) $292 times the adjusted pupil units or (2) 
150.29 	the district's revenue under subdivision 1.
150.30 	(c) For fiscal year 2019 and later, a district's long-term facilities maintenance 
150.31 	equalization revenue equals the lesser of (1) $380 times the adjusted pupil units or (2) 
150.32 	the district's revenue under subdivision 1.
151.1 	(d) Notwithstanding paragraphs (a) to (c), a district's long-term facilities maintenance 
151.2 	equalization revenue must not be less than the lesser of the district's long-term facilities 
151.3 	maintenance revenue or the amount of aid the district received for fiscal year 2015 under 
151.4 	section 123B.59, subdivision 6.

151.5 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
151.6 	later.

151.7 	Sec. 5. Minnesota Statutes 2015 Supplement, section 123B.595, subdivision 8, is 
151.8 	amended to read:
151.9 		Subd. 8.Long-term facilities maintenance equalized levy. (a) For fiscal year 2017 
151.10 	and later, a district's long-term facilities maintenance equalized levy equals the district's 
151.11 	long-term facilities maintenance equalization revenue minus the greater of:
151.12 	(1) the lesser of the district's long-term facilities maintenance equalization revenue 
151.13 	or the amount of aid the district received for fiscal year 2015 under Minnesota Statutes 
151.14 	2014, section 123B.59, subdivision 6; or
151.15 	(2) the district's long-term facilities maintenance equalization revenue times the 
151.16 	greater of (i) zero or (ii) one minus the ratio of its adjusted net tax capacity per adjusted 
151.17 	pupil unit in the year preceding the year the levy is certified to 123 percent of the state 
151.18 	average adjusted net tax capacity per adjusted pupil unit for all school districts in the 
151.19 	year preceding the year the levy is certified.
151.20 	(b) For purposes of this subdivision, "adjusted net tax capacity" means the value 
151.21 	described in section 126C.01, subdivision 2, paragraph (b).

151.22 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
151.23 	later.

151.24 	Sec. 6. Minnesota Statutes 2015 Supplement, section 123B.595, is amended by adding 
151.25 	a subdivision to read:
151.26 		Subd. 8a.Long-term facilities maintenance unequalized levy. For fiscal year 
151.27 	2017 and later, a district's long-term facilities maintenance unequalized levy equals the 
151.28 	difference between the district's revenue under subdivision 1 and the district's equalization 
151.29 	revenue under subdivision 7.

151.30 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
151.31 	later.

152.1 	Sec. 7. Minnesota Statutes 2015 Supplement, section 123B.595, subdivision 9, is 
152.2 	amended to read:
152.3 		Subd. 9.Long-term facilities maintenance equalized aid. For fiscal year 2017 
152.4 	and later, a district's long-term facilities maintenance equalized aid equals its long-term 
152.5 	facilities maintenance equalization revenue minus its long-term facilities maintenance 
152.6 	equalized levy times the ratio of the actual equalized amount levied to the permitted 
152.7 	equalized levy.

152.8 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
152.9 	later.

152.10 	Sec. 8. Minnesota Statutes 2015 Supplement, section 123B.595, subdivision 10, 
152.11 	is amended to read:
152.12 		Subd. 10.Allowed uses for long-term facilities maintenance revenue. (a) A 
152.13 	district may use revenue under this section for any of the following:
152.14 	(1) deferred capital expenditures and maintenance projects necessary to prevent 
152.15 	further erosion of facilities;
152.16 	(2) increasing accessibility of school facilities; or
152.17 	(3) health and safety capital projects under section 123B.57.; or
152.18 	(4) by board resolution, to transfer money from the general fund reserve for long-term 
152.19 	facilities maintenance to the debt redemption fund to pay the amounts needed to meet, 
152.20 	when due, principal and interest on general obligation bonds issued under subdivision 5.
152.21 	(b) A charter school may use revenue under this section for any purpose related 
152.22 	to the school.

152.23 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
152.24 	later.

152.25 	Sec. 9. Minnesota Statutes 2015 Supplement, section 123B.595, subdivision 11, 
152.26 	is amended to read:
152.27 		Subd. 11.Restrictions on long-term facilities maintenance revenue.
 152.28 	Notwithstanding subdivision 11 10, long-term facilities maintenance revenue may not 
152.29 	be used:
152.30 	(1) for the construction of new facilities, remodeling of existing facilities, or the 
152.31 	purchase of portable classrooms;
152.32 	(2) to finance a lease purchase agreement, installment purchase agreement, or other 
152.33 	deferred payments agreement;
153.1 	(3) for energy-efficiency projects under section 123B.65, for a building or property 
153.2 	or part of a building or property used for postsecondary instruction or administration, or 
153.3 	for a purpose unrelated to elementary and secondary education; or
153.4 	(4) for violence prevention and facility security, ergonomics, or emergency 
153.5 	communication devices.

153.6 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
153.7 	later.

153.8 	Sec. 10. Minnesota Statutes 2014, section 123B.60, subdivision 1, is amended to read:
153.9 		Subdivision 1.Bonds. When a building owned by a district is substantially damaged 
153.10 	by an act of God or other means beyond the control of the district, the district may issue 
153.11 	general obligation bonds without an election to provide money immediately to carry 
153.12 	out its adopted health and safety long-term facilities maintenance program. Each year 
153.13 	the district must pledge an attributable share of its health and safety long-term facilities 
153.14 	maintenance revenue to the repayment of principal and interest on the bonds. The pledged 
153.15 	revenue must be transferred to recognized in the debt redemption fund of the district. The 
153.16 	district must submit to the department the repayment schedule for any bonds issued under 
153.17 	this section. The district must deposit in the debt redemption fund all proceeds received 
153.18 	for specific costs for which the bonds were issued, including but not limited to:
153.19 	(1) insurance proceeds;
153.20 	(2) restitution proceeds; and
153.21 	(3) proceeds of litigation or settlement of a lawsuit.
153.22 	Before bonds are issued, the district must submit a combined an amended
153.23 	application to the commissioner for health and safety long-term facilities maintenance
153.24 	revenue, according to section 123B.57, and requesting review and comment, according 
153.25 	to section 123B.71, subdivisions 8, 9, 11, and 12 123B.595. The commissioner shall 
153.26 	complete all procedures concerning the combined application within 20 days of receiving 
153.27 	the application. The publication provisions of section 123B.71, subdivision 12, do not 
153.28 	apply to bonds issued under this section.

153.29 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
153.30 	later.

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

154.14 	EFFECTIVE DATE. This section is effective the day following final enactment 
154.15 	and applies to review and comments for projects funded with revenue for fiscal year 
154.16 	2017 and later.

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

154.23 	Sec. 13. Minnesota Statutes 2014, section 123B.79, subdivision 8, is amended to read:
154.24 		Subd. 8.Account transfer for reorganizing districts. A district that has 
154.25 	reorganized according to sections 123A.35 to 123A.43, 123A.46, or 123A.48, or has 
154.26 	conducted a successful referendum on the question of combination under section 
154.27 	123A.37, subdivision 2, or consolidation under section 123A.48, subdivision 15, or has 
154.28 	been assigned an identification number by the commissioner under section 123A.48, 
154.29 	subdivision 16, may make permanent transfers between any of the funds or accounts in 
154.30 	the newly created or enlarged district with the exception of the debt redemption fund, 
154.31 	building construction fund, food service fund, and health and safety long-term facilities 
154.32 	maintenance account of the capital expenditure general fund. Fund transfers under this 
154.33 	section may be made for up to one year prior to the effective date of combination or 
154.34 	consolidation by the consolidating boards and during the year following the effective date 
155.1 	of reorganization by the consolidated board. The newly formed board of the combined 
155.2 	district may adopt a resolution on or before August 30 of the year of the reorganization 
155.3 	authorizing a transfer among accounts or funds of the previous independent school 
155.4 	districts which transfer or transfers shall be reported in the affected districts' audited 
155.5 	financial statements for the year immediately preceding the consolidation.

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

155.8 	Sec. 14. Minnesota Statutes 2014, section 123B.79, subdivision 9, is amended to read:
155.9 		Subd. 9.Elimination of reserve accounts. A school board shall eliminate all 
155.10 	reserve accounts established in the school district's general fund under Minnesota Statutes 
155.11 	before July 1, 2006, for which no specific authority remains in statute as of June 30, 2007. 
155.12 	Any balance in the district's reserved for bus purchases account for deferred maintenance
155.13 	as of June 30, 2007 2016, shall be transferred to the reserved account for operating capital 
155.14 	long-term facilities maintenance in the school district's general fund. Any balance in 
155.15 	other reserved accounts established in the school district's general fund under Minnesota 
155.16 	Statutes before July 1, 2006, for which no specific authority remains in statute as of June 
155.17 	30, 2007, shall be transferred to the school district's unreserved general fund balance. 
155.18 	A school board may, upon adoption of a resolution by the school board, establish a 
155.19 	designated account for any program for which a reserved account has been eliminated. 
155.20 	Any balance in the district's reserved account for health and safety as of June 30, 2019, 
155.21 	shall be transferred to the unassigned fund balance account in the district's general fund. 
155.22 	Any balance in the district's reserved account for alternative facilities as of June 30, 2016, 
155.23 	shall be transferred to the reserved account for long-term facilities maintenance in the 
155.24 	district's building construction fund.

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

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

156.3 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
156.4 	later.

156.5 	Sec. 16. Minnesota Statutes 2015 Supplement, section 126C.48, subdivision 8, is 
156.6 	amended to read:
156.7 		Subd. 8.Taconite payment and other reductions. (1) Reductions in levies 
156.8 	pursuant to subdivision 1 must be made prior to the reductions in clause (2).
156.9 	(2) Notwithstanding any other law to the contrary, districts that have revenue 
156.10 	pursuant to sections 298.018; 298.225; 298.24 to 298.28, except an amount distributed 
156.11 	under sections 298.26; 298.28, subdivision 4, paragraphs (c), clause (ii), and (d); 298.34 to 
156.12 	298.39; 298.391 to 298.396; 298.405; 477A.15; and any law imposing a tax upon severed 
156.13 	mineral values must reduce the levies authorized by this chapter and chapters 120B, 122A, 
156.14 	123A, 123B, 124A, 124D, 125A, and 127A, excluding the student achievement levy 
156.15 	under section 126C.13, subdivision 3b, by 95 percent of the sum of the previous year's 
156.16 	revenue specified under this clause and the amount attributable to the same production 
156.17 	year distributed to the cities and townships within the school district under section 298.28, 
156.18 	subdivision 2, paragraph (c).
156.19 	(3) The amount of any voter approved referendum, facilities down payment, and 
156.20 	debt levies shall not be reduced by more than 50 percent under this subdivision, except 
156.21 	that payments under section 298.28, subdivision 7a, may reduce the debt service levy by 
156.22 	more than 50 percent. In administering this paragraph, the commissioner shall first reduce 
156.23 	the nonvoter approved levies of a district; then, if any payments, severed mineral value 
156.24 	tax revenue or recognized revenue under paragraph (2) remains, the commissioner shall 
156.25 	reduce any voter approved referendum levies authorized under section 126C.17; then, if 
156.26 	any payments, severed mineral value tax revenue or recognized revenue under paragraph 
156.27 	(2) remains, the commissioner shall reduce any voter approved facilities down payment 
156.28 	levies authorized under section 123B.63 and then, if any payments, severed mineral value 
156.29 	tax revenue or recognized revenue under paragraph (2) remains, the commissioner shall 
156.30 	reduce any voter approved debt levies.
156.31 	(4) Before computing the reduction pursuant to this subdivision of the health and 
156.32 	safety long-term facilities maintenance levy authorized by sections 123B.57 and 126C.40, 
156.33 	subdivision 5 section 123B.595, the commissioner shall ascertain from each affected 
156.34 	school district the amount it proposes to levy under each section or subdivision. The 
156.35 	reduction shall be computed on the basis of the amount so ascertained.
157.1 	(5) To the extent the levy reduction calculated under paragraph (2) exceeds the 
157.2 	limitation in paragraph (3), an amount equal to the excess must be distributed from the 
157.3 	school district's distribution under sections 298.225, 298.28, and 477A.15 in the following 
157.4 	year to the cities and townships within the school district in the proportion that their 
157.5 	taxable net tax capacity within the school district bears to the taxable net tax capacity of 
157.6 	the school district for property taxes payable in the year prior to distribution. No city or 
157.7 	township shall receive a distribution greater than its levy for taxes payable in the year prior 
157.8 	to distribution. The commissioner of revenue shall certify the distributions of cities and 
157.9 	towns under this paragraph to the county auditor by September 30 of the year preceding 
157.10 	distribution. The county auditor shall reduce the proposed and final levies of cities and 
157.11 	towns receiving distributions by the amount of their distribution. Distributions to the cities 
157.12 	and towns shall be made at the times provided under section 298.27.

157.13 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
157.14 	later.

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

157.21 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
157.22 	later.

157.23 	Sec. 18. Laws 2011, First Special Session chapter 11, article 4, section 8, is amended to 
157.24 	read:
157.25 	Sec. 8. EARLY REPAYMENT.
 157.26 	(a) A school district that received a maximum effort capital loan prior to January 
157.27 	1, 1997, may repay the full outstanding original principal on its capital loan prior to 
157.28 	July 1, 2012, and the liability of the district on the loan is satisfied and discharged and 
157.29 	interest on the loan ceases.
157.30 	(b) A school district with an outstanding capital loan balance that received a 
157.31 	maximum effort capital loan prior to January 1, 2007, may repay to the commissioner of 
157.32 	education by November 30, 2016, the full outstanding original principal on its capital 
158.1 	loan and the liability of the district on the loan is satisfied and discharged and interest 
158.2 	on the loan ceases.

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

158.4 	Sec. 19. INTERNET BROADBAND EXPANSION FOR STUDENTS; 
158.5 	INNOVATIVE GRANTS.
 158.6 		Subdivision 1.Broadband Wi-Fi hot spots. (a) A school district is eligible for a 
158.7 	broadband hot spot grant not to exceed $100,000 to support wireless off-campus learning 
158.8 	through a student's use of a data card, USB modem, or other mobile broadband device 
158.9 	that enables the student to access learning materials available on the Internet through a 
158.10 	mobile broadband connection. A district's application for a grant under this subdivision 
158.11 	must describe its approach for identifying and prioritizing access for low-income students 
158.12 	and others otherwise unable to access the Internet and may include a description of 
158.13 	local or private matching grants or in-kind contributions. When evaluating applications, 
158.14 	the commissioner may give priority to grant applications that include local in-kind 
158.15 	contributions.
158.16 	(b) A school district may develop its application in cooperation with its community 
158.17 	education department, its adult basic education program provider, a public library, or other 
158.18 	community partner. A cooperative grant award under this paragraph may not exceed 
158.19 	$200,000.
158.20 	(c) A school district that qualifies for general education transportation sparsity 
158.21 	revenue under Minnesota Statutes, section 126C.10, may apply to the commissioner of 
158.22 	education for a school bus Internet access grant as a part of its grant application under 
158.23 	paragraph (a). The commissioner of education must prioritize grants to districts with the 
158.24 	longest bus routes. A school district that receives a grant under this subdivision may use 
158.25 	the grant to purchase or lease equipment designed to make Internet access available on 
158.26 	school buses, including routers and mobile Wi-Fi hot spots to connect to the Internet, and 
158.27 	may also purchase or lease one-to-one devices for students. The one-to-one devices may 
158.28 	be connected to the Internet through the Wi-Fi hot spot or otherwise contain content 
158.29 	for age-appropriate, self-directed learning.
158.30 		Subd. 2.Capacity-building grants. A school district that is a member of 
158.31 	a telecommunications access cluster may submit an application approved by its 
158.32 	telecommunications access cluster to the commissioner of education for a broadband 
158.33 	access grant. The grant application may include a description of local or private matching 
158.34 	grants or in-kind contributions. When evaluating applications, the commissioner may give 
159.1 	priority to grant applications that include local in-kind contributions. The maximum 
159.2 	amount of each grant may not exceed $100,000. The grant may be used in any manner and 
159.3 	with any community partners that allow the school district to expand telecommunications 
159.4 	access to its students, teachers, and community members.
159.5 		Subd. 3.Internet access for students. Consistent with Minnesota Statutes, section 
159.6 	125B.15, all grant applications submitted under this section must demonstrate to the 
159.7 	commissioner's satisfaction that the Internet access provided through the grant proceeds 
159.8 	will include filtering technology or other effective methods to limit student access to 
159.9 	material that is reasonably believed to be obscene, child pornography, or material harmful 
159.10 	to minors under federal or state law.

159.11 	Sec. 20. APPROPRIATIONS.
 159.12 		Subdivision 1.Department of Education. The sums indicated in this section are 
159.13 	appropriated from the general fund to the commissioner of education for the fiscal years 
159.14 	designated.
159.15 		Subd. 2.Broadband expansion grants. For broadband expansion grants:

159.16		$
	7,000,000
	.....
	2017
	
159.17 	Of this amount, $5,000,000 is for broadband Wi-Fi hot spots under section 19, 
159.18 	subdivision 1, and $2,000,000 is for capacity-building grants under section 19, subdivision 
159.19 	2. This is a onetime appropriation. This appropriation is available until June 30, 2019.

159.20 	Sec. 21.  REPEALER.
 159.21 	Minnesota Statutes 2014, sections 123B.60, subdivision 2; and 123B.79, 
159.22 	subdivisions 2 and 6, are repealed for fiscal year 2017 and later.

159.23 	ARTICLE 12
159.24 	EARLY CHILDHOOD EDUCATION

159.25 	Section 1. [124D.1295] EARLY LEARNING PROGRAM COORDINATION.
159.26 		Subdivision 1.Early learning program coordination. A school board, after 
159.27 	receiving written comments from its early childhood advisory council or its community 
159.28 	education council, may adopt a resolution allowing the district to offer an integrated early 
159.29 	learning program. An integrated early learning program may provide for early childhood 
159.30 	family education services, school readiness services, and other early learning programs 
159.31 	providing services to parents and children. A school district's integrated early learning 
160.1 	program must continue to contain components of parent education, opportunities for early 
160.2 	learning activities for families with young children, and school readiness activities.
160.3 		Subd. 2.Early learning program revenue sources. A school district's early 
160.4 	learning program revenue includes its early childhood family education revenue under 
160.5 	section 124D.135, school readiness program revenue under section 124D.16, and any 
160.6 	other revenues set aside for early learning activities.
160.7 		Subd. 3.Reserve account. A district that offers an integrated early learning 
160.8 	program must place all of the revenue it receives under subdivision 2 in an early learning 
160.9 	program reserve account established in the community service fund.

160.10 	EFFECTIVE DATE. This section is effective for fiscal year 2017 and later.

160.11 	Sec. 2. Minnesota Statutes 2014, section 124D.13, subdivision 1, is amended to read:
160.12 		Subdivision 1.Establishment; purpose. A district that provides a community 
160.13 	education program under sections 124D.18 and 124D.19 may establish an early childhood 
160.14 	family education program as an individual program or as a part of an early learning 
160.15 	program under section 124D.1295. Two or more districts, each of which provides a 
160.16 	community education program, may cooperate to jointly provide an early childhood 
160.17 	family education program. The purpose of the early childhood family education program 
160.18 	is to provide parenting education to support children's learning and development.

160.19 	EFFECTIVE DATE. This section is effective July 1, 2016.

160.20 	Sec. 3. Minnesota Statutes 2014, section 124D.13, subdivision 5, is amended to read:
160.21 		Subd. 5.Separate accounts. The A district operating an early childhood family 
160.22 	education program independent of an early learning program under section 124D.1295
160.23 	must maintain a separate account within the community education fund for money for 
160.24 	early childhood family education programs.

160.25 	EFFECTIVE DATE. This section is effective for fiscal year 2017 and later.

160.26 	Sec. 4. Minnesota Statutes 2014, section 124D.13, subdivision 9, is amended to read:
160.27 		Subd. 9.District advisory councils. The board must appoint an advisory council 
160.28 	from the area in which the program is provided. A majority of the council must be parents 
160.29 	participating in the program, who represent the demographics of the community. The 
160.30 	district must ensure, to the extent possible, that the council includes representation of 
160.31 	families who are racially, culturally, linguistically, and economically diverse. The council 
160.32 	must assist the board in developing, planning, and monitoring the early childhood family 
161.1 	education program and the early learning program under section 124D.1295. The council 
161.2 	must report to the board and the community education advisory council.

161.3 	EFFECTIVE DATE. This section is effective July 1, 2016.

161.4 	Sec. 5. Minnesota Statutes 2014, section 124D.135, subdivision 5, is amended to read:
161.5 		Subd. 5.Use of revenue restricted. (a) Early childhood family education revenue 
161.6 	may be used only for early learning programs, including early childhood family education 
161.7 	programs.
161.8 	(b) Not more than five percent of early childhood family education revenue, as defined 
161.9 	in subdivision 7, may be used to administer early childhood family education programs.
161.10 	(c) An early childhood family education program may use up to ten percent of its 
161.11 	early childhood family education revenue as defined in subdivision 1, including revenue 
161.12 	from participant fees, for equipment that is used in the early childhood family education 
161.13 	program. This revenue may only be used for the following purposes:
161.14 	(1) to purchase or lease computers and related materials; and
161.15 	(2) to purchase or lease equipment for instruction for participating children and 
161.16 	their families.
161.17 	If a district anticipates an unusual circumstance requiring its early childhood family 
161.18 	education program capital expenditures to exceed the ten percent limitation, prior approval 
161.19 	to exceed the limit must be obtained in writing from the commissioner.

161.20 	EFFECTIVE DATE. This section is effective for fiscal year 2017 and later.

161.21 	Sec. 6. Minnesota Statutes 2014, section 124D.135, subdivision 7, is amended to read:
161.22 		Subd. 7.Reserve account. Early childhood family education revenue, which 
161.23 	includes aids, levies, fees, grants, and all other revenues received by the district for early 
161.24 	childhood family education programs, must be maintained in either an early learning 
161.25 	program reserve account or a separate early childhood family education reserve account 
161.26 	within the community service fund.

161.27 	EFFECTIVE DATE. This section is effective for fiscal year 2017 and later.

161.28 	Sec. 7. Minnesota Statutes 2014, section 124D.15, subdivision 1, is amended to read:
161.29 		Subdivision 1.Establishment; purpose. A district, charter school, or a group of 
161.30 	districts or charter schools may establish a school readiness program for children age 
161.31 	three to kindergarten entrance. The purpose of a school readiness program is to prepare 
161.32 	children to enter kindergarten.

162.1 	Sec. 8. Minnesota Statutes 2014, section 124D.15, subdivision 3a, is amended to read:
162.2 		Subd. 3a.Application and reporting requirements. (a) A school readiness 
162.3 	program provider must submit a biennial plan for approval by the commissioner before 
162.4 	receiving aid under section 124D.16. The plan must describe how the program meets the 
162.5 	program requirements under subdivision 3. A school district by April 1or charter school 
162.6 	must submit the plan for approval by the commissioner in the form and manner and by the 
162.7 	date prescribed by the commissioner. One-half the districts must first submit the plan by 
162.8 	April 1, 2006, and one-half the districts must first submit the plan by April 1, 2007, as 
162.9 	determined by the commissioner.
162.10 	(b) Programs receiving school readiness funds annually must submit a report to 
162.11 	the department.

162.12 	Sec. 9. Minnesota Statutes 2015 Supplement, section 124D.16, subdivision 2, is 
162.13 	amended to read:
162.14 		Subd. 2.Amount of aid. (a) A district or charter school is eligible to receive school 
162.15 	readiness aid for eligible prekindergarten pupils enrolled in a school readiness program 
162.16 	under section 124D.15 if the biennial plan required by section 124D.15, subdivision 3a, 
162.17 	has been approved by the commissioner.
162.18 	(b) A school district must receive school readiness aid equal to:
162.19 	(1) the number of four-year-old children in the district on October 1 for the previous 
162.20 	school year times the ratio of 50 percent of the total school readiness aid for that year to 
162.21 	the total number of four-year-old children reported to the commissioner for the previous 
162.22 	school year; plus
162.23 	(2) the number of pupils enrolled in the school district from families eligible for the 
162.24 	free or reduced-price school lunch program for the previous school year times the ratio 
162.25 	of 50 percent of the total school readiness aid for that year to the total number of pupils 
162.26 	in the state from families eligible for the free or reduced-price school lunch program for 
162.27 	the previous school year.
162.28 	(c) The total school readiness aid entitlement equals $23,558,000 for fiscal year 2016 
162.29 	and $33,683,000 for fiscal year 2017 and later.
162.30 	(d) If the aid entitlement in paragraph (c) is increased above $33,683,000 for any 
162.31 	year, the commissioner must calculate the school readiness aid entitlement for charter 
162.32 	schools equal to the aid entitlement in the current year less $33,683,000. A charter 
162.33 	school's school readiness aid equals:
162.34 	(1) the number of kindergarten pupils enrolled in the charter school on October 1 for 
162.35 	the previous school year times the ratio of 50 percent of the total charter school readiness 
163.1 	aid for that year to the total number of charter school kindergarten pupils reported to the 
163.2 	commissioner for the previous school year; plus
163.3 	(2) the number of pupils enrolled in the charter school from families eligible for the 
163.4 	free or reduced-price school lunch program for the previous school year times the ratio 
163.5 	of 50 percent of the total charter school readiness aid for that year to the total number of 
163.6 	pupils in all charter schools from families eligible for the free or reduced-price school 
163.7 	lunch program for the previous school year.
163.8 	(e) If the aid entitlement under paragraph (c) is increased above $36,683,000, the 
163.9 	commissioner must combine the counts for school districts and charter schools under 
163.10 	paragraphs (b) and (c) and compute aid amounts accordingly.

163.11 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2018 
163.12 	and later.

163.13 	Sec. 10. Minnesota Statutes 2014, section 124D.16, subdivision 3, is amended to read:
163.14 		Subd. 3.Use of aid. School readiness aid shall be used only to provide a school 
163.15 	readiness program or an early learning program and may be used to provide transportation. 
163.16 	Not more than five percent of program revenue, as defined in subdivision 5, may be used 
163.17 	for the cost of administering the program. Aid must be used to supplement and not supplant 
163.18 	local, state, and federal funding. Aid may not be used for instruction and services required 
163.19 	under sections 125A.03 to 125A.24 and 125A.65. Aid may not be used to purchase land 
163.20 	or construct buildings, but may be used to lease or renovate existing buildings.

163.21 	EFFECTIVE DATE. This section is effective for fiscal year 2017 and later.

163.22 	Sec. 11. Minnesota Statutes 2014, section 124D.16, subdivision 5, is amended to read:
163.23 		Subd. 5.Reserve account. School readiness revenue, which includes aids, fees, 
163.24 	grants, and all other revenues received by the district school readiness programs, must 
163.25 	be maintained in either an early learning program reserve account or a school readiness
163.26 	reserve account within the community service fund.

163.27 	EFFECTIVE DATE. This section is effective for fiscal year 2017 and later.

163.28 	Sec. 12. Minnesota Statutes 2014, section 124D.165, as amended by Laws 2015, First 
163.29 	Special Session chapter 3, article 9, section 6, is amended to read:
163.30 	124D.165 EARLY LEARNING SCHOLARSHIPS.
164.1 		Subdivision 1.Establishment; purpose. There is established an early learning 
164.2 	scholarships program in order to increase access to high-quality early childhood programs 
164.3 	for children ages three to five.
164.4 		Subd. 2.Family eligibility. (a) For a family to receive an early learning scholarship, 
164.5 	parents or guardians must meet the following eligibility requirements:
164.6 	(1) have a child three or four years of age on September 1 of the current school year, 
164.7 	who has not yet started kindergarten; and
164.8 	(2) have income equal to or less than 185 percent of federal poverty level income 
164.9 	in the current calendar year, or be able to document their child's current participation in 
164.10 	the free and reduced-price lunch program or child and adult care food program, National 
164.11 	School Lunch Act, United States Code, title 42, sections 1751 and 1766; the Food 
164.12 	Distribution Program on Indian Reservations, Food and Nutrition Act, United States 
164.13 	Code, title 7, sections 2011-2036; Head Start under the federal Improving Head Start for 
164.14 	School Readiness Act of 2007; Minnesota family investment program under chapter 256J; 
164.15 	child care assistance programs under chapter 119B; the supplemental nutrition assistance 
164.16 	program; or placement in foster care under section 260C.212.
164.17 	(b) Notwithstanding the other provisions of this section, a child from birth to age five 
164.18 	and not yet enrolled in kindergarten is eligible for an early learning scholarship if the child's 
164.19 	family meets the income eligibility standard established in paragraph (a), clause (2), and:
164.20 	(1) the child's parent is under age 21 who and is pursuing a high school or general 
164.21 	education equivalency diploma is eligible for an early learning scholarship if the parent 
164.22 	has a child age zero to five years old and meets the income eligibility guidelines in this 
164.23 	subdivision.;
164.24 	(2) the child is in foster care or otherwise a child in need of protection or services; or
164.25 	(3) the child's family has experienced homelessness in the last 24 months.
164.26 	(c) Any siblings between the ages zero to five years old of a child who has been 
164.27 	awarded a scholarship under this section must be awarded a scholarship upon request, 
164.28 	provided the sibling attends the same program as long as funds are available.
164.29 	(d) A child who has received a scholarship under this section must continue to 
164.30 	receive a scholarship each year until that child is eligible for kindergarten under section 
164.31 	120A.20 and as long as funds are available.
164.32 	(e) Early learning scholarships may not be counted as earned income for the 
164.33 	purposes of medical assistance under chapter 256B, MinnesotaCare under chapter 256L, 
164.34 	Minnesota family investment program under chapter 256J, child care assistance programs 
164.35 	under chapter 119B, or Head Start under the federal Improving Head Start for School 
164.36 	Readiness Act of 2007.
165.1 	(f) A child from an adjoining state whose family resides at a Minnesota address as 
165.2 	assigned by the United States Postal Service, who has received developmental screening 
165.3 	under sections 121A.16 to 121A.19, who intends to enroll in a Minnesota school district, 
165.4 	and whose family meets the criteria of paragraph (a) is eligible for an early learning 
165.5 	scholarship under this section.
165.6 		Subd. 3.Administration. (a) The commissioner shall establish application 
165.7 	timelines and determine the schedule for awarding scholarships that meets operational 
165.8 	needs of eligible families and programs. The commissioner may prioritize applications 
165.9 	on factors including:
165.10 	(1) family income,;
165.11 	(2) geographic location, and;
165.12 	(3) whether the child's family is on a waiting list for a publicly funded program 
165.13 	providing early education or child care services.;
165.14 	(4) whether the child is in foster care or otherwise a child in need of protection or 
165.15 	services; and
165.16 	(5) whether the child's family has experienced homelessness in the last 24 months.
165.17 	(b) For fiscal years 2014 and 2015 only, scholarships may not exceed $5,000 per year 
165.18 	for each eligible child. For fiscal year 2016 and later, the commissioner shall establish 
165.19 	a target for the average scholarship amount per child based on the results of the rate 
165.20 	survey conducted under section 119B.02. The commissioner may award a scholarship 
165.21 	in excess of this amount to a child who qualifies for priority enrollment under paragraph 
165.22 	(a), clause (4) or (5).
165.23 	(c) A four-star rated program that has children eligible for a scholarship enrolled 
165.24 	in or on a waiting list for a program beginning in July, August, or September may notify 
165.25 	the commissioner, in the form and manner prescribed by the commissioner, each year of 
165.26 	the program's desire to enhance program services or and to serve more children than 
165.27 	current funding provides. The commissioner may designate a predetermined number of 
165.28 	scholarship slots for that program and notify the program of that number. Beginning July 
165.29 	1, 2016, a school district or Head Start program qualifying under this paragraph, a licensed 
165.30 	child care center, or a family child care provider may use its established registration 
165.31 	process to enroll scholarship recipients and may verify a scholarship recipient's family 
165.32 	income in the same manner as for other program participants. Scholarships awarded under 
165.33 	this section must be paid to the eligible program provider designated by the award recipient 
165.34 	and must be transferred to another eligible program provider at the recipient's request.
165.35 	(d) A scholarship is awarded for a 12-month period. If the scholarship recipient has 
165.36 	not been accepted and subsequently enrolled in a rated program within ten months of the 
166.1 	awarding of the scholarship, the scholarship cancels and the recipient must reapply in 
166.2 	order to be eligible for another scholarship. A child may not be awarded more than one 
166.3 	scholarship in a 12-month period.
166.4 	(e) A child who receives a scholarship who has not completed development 
166.5 	screening under sections 121A.16 to 121A.19 must complete that screening within 90 
166.6 	days of first attending an eligible program.
166.7 	(f) For fiscal year 20172018 and later, a school district or Head Start program 
166.8 	enrolling scholarship recipients under paragraph (c) may apply to the commissioner, in 
166.9 	the form and manner prescribed by the commissioner, for direct payment of state aid. 
166.10 	Upon receipt of the application, the commissioner must pay each program directly for 
166.11 	each approved scholarship recipient enrolled under paragraph (c) according to the metered 
166.12 	payment system or another schedule established by the commissioner. the total amount of 
166.13 	funding directly allocated to a program under paragraph (c) must not exceed the amount 
166.14 	directly awarded to that program in fiscal year 2017.
166.15 		Subd. 4.Early childhood program eligibility. (a) In order to be eligible to accept 
166.16 	an early learning scholarship, a program must:
166.17 	(1) participate in the quality rating and improvement system under section 
166.18 	124D.142; and
166.19 	(2) beginning July 1, 2016 2020, have a three- or four-star rating in the quality 
166.20 	rating and improvement system.
166.21 	(b) Any program accepting scholarships must use the revenue to supplement and not 
166.22 	supplant federal funding.
166.23 	(c) Notwithstanding paragraph (a), all Minnesota early learning foundation 
166.24 	scholarship program pilot sites are eligible to accept an early learning scholarship under 
166.25 	this section.
166.26 	(d) Notwithstanding paragraph (a), beginning September 1, 2016, a qualifying newly 
166.27 	opened program carries the rating of its affiliated program for its first two years of operation.
166.28 	(e) For purposes of this subdivision, "qualifying newly opened program" means 
166.29 	a program in its first two years of operation actively pursuing a rating whose on-site 
166.30 	director has experience operating a three- or four-star rated program, and "affiliated 
166.31 	program" means a program with which the newly opened program shares an ownership or 
166.32 	management interest or is otherwise structurally linked.
166.33 		Subd. 5.Report required. The commissioner shall contract with an independent 
166.34 	contractor to evaluate the early learning scholarship program. The evaluation must 
166.35 	include recommendations regarding the appropriate scholarship amount, efficiency, and 
166.36 	effectiveness of the administration, and impact on kindergarten readiness. By January 
167.1 	15, 2016, the commissioner shall submit a written copy of the evaluation to the chairs 
167.2 	and ranking minority members of the legislative committees and divisions with primary 
167.3 	jurisdiction over kindergarten through grade 12 education.

167.4 	EFFECTIVE DATE.  This section is effective July 1, 2016.

167.5 	Sec. 13. Laws 2015, First Special Session chapter 3, article 9, section 8, subdivision 7, 
167.6 	is amended to read:
167.7 		Subd. 7.Parent-child home program. For a grant to the parent-child home 
167.8 	program:

167.9		$
	350,000
	.....
	2016
	
167.10
167.11		$
	350,000
2,350,000
	.....
	2017
	
167.12 	The grant must be used for an evidence-based and research-validated early childhood 
167.13 	literacy and school readiness program for children ages 16 months to four years at its 
167.14 	existing suburban program location. The program must include urban and rural program 
167.15 	locations for fiscal years 2016 and 2017. 
167.16 	The base appropriation for this program for fiscal year 2018 and later is $350,000. 
167.17 	The 2017 appropriation is available until June 30, 2019.
167.18 	To the extent practicable, the parent-child home program is encouraged to expend 
167.19 	the fiscal year 2017 appropriation equally over fiscal years 2017, 2018, and 2019.

167.20 	Sec. 14. Laws 2015, First Special Session chapter 3, article 9, section 8, subdivision 9, 
167.21 	is amended to read:
167.22 		Subd. 9.Quality Rating System. For transfer to the commissioner of human 
167.23 	services for the purposes of expanding the Quality Rating and Improvement System under 
167.24 	Minnesota Statutes, section 124D.142, in greater Minnesota and increasing supports for 
167.25 	providers participating in the Quality Rating and Improvement System:

167.26		$
	1,200,000
	.....
	2016
	
167.27
167.28		$
	2,300,000
4,300,000
	.....
	2017
	
167.29 	To the extent possible, the commissioner must direct at least $2,000,000 of the 2017 
167.30 	appropriation toward increasing access and providing training assistance to providers who 
167.31 	are located in underserved or low-income neighborhoods.
167.32 	Any balance in the first year does not cancel but is available in the second year. The 
167.33 	base for this program in fiscal year 2018 and later is $1,750,000.

167.34 	EFFECTIVE DATE.  This section is effective July 1, 2016.

168.1 	Sec. 15. REPORT ON EARLY CHILDHOOD PROGRAM PROVIDERS.
 168.2 	The Department of Education, in coordination with the Department of Human 
168.3 	Services, must provide a report to the legislature by February 15, 2017, summarizing 
168.4 	available data collected on the demographics of early childhood providers and other early 
168.5 	childhood program staff, administrators, and board members.

168.6 	Sec. 16. APPROPRIATION.
 168.7 		Subdivision 1.Department of Education. The sums indicated in this section are 
168.8 	appropriated from the general fund to the commissioner of education for the fiscal year 
168.9 	designated.
168.10 		Subd. 2.St. Cloud preschool pilot program. For a grant to Independent School 
168.11 	District No. 742, St. Cloud, to establish a preschool pilot program targeting low-income 
168.12 	students and English language learners.

168.13		$
	430,000
	.....
	2017
	
168.14 	Funds appropriated in this section are to be used to create morning and afternoon 
168.15 	preschool sections, serving at least 90 students from families with low income or 
168.16 	from families where English is not the primary language spoken in the child's home 
168.17 	environment. The funds appropriated under this section may be used to purchase 
168.18 	developmentally appropriate furniture and materials, instructional materials, and 
168.19 	curriculum materials; hire and train teachers and staff; and offset transportation costs.
168.20 	Independent School District No. 742, St. Cloud, must submit an annual report by 
168.21 	January 15 of 2017, 2018, and 2019, describing the activities undertaken and outcomes 
168.22 	achieved with this grant. The 2019 report must contain recommendations for other 
168.23 	districts interested in similar prekindergarten programs.
168.24 	This is a onetime appropriation. The fiscal year 2017 appropriation is available 
168.25 	until June 30, 2019.

168.26 	ARTICLE 13
168.27 	SELF-SUFFICIENCY AND LIFELONG LEARNING

168.28 	Section 1. Minnesota Statutes 2014, section 124D.52, subdivision 1, is amended to read:
168.29 		Subdivision 1.Program requirements. (a) An adult basic education program is 
168.30 	a day or evening program offered by a district that is for people over 16 years of age
168.31 	who do not attend an elementary or secondary school and are not subject to compulsory 
168.32 	attendance. The program offers academic and English language instruction necessary to 
168.33 	earn a high school diploma or equivalency certificate.
169.1 	(b) Notwithstanding any law to the contrary, a school board or the governing body of 
169.2 	a consortium offering an adult basic education program may adopt a sliding fee schedule 
169.3 	based on a family's income, but must waive the fee for participants who are under the age 
169.4 	of 21 or unable to pay. The fees charged must be designed to enable individuals of all 
169.5 	socioeconomic levels to participate in the program. A program may charge a security 
169.6 	deposit to assure return of materials, supplies, and equipment.
169.7 	(c) Each approved adult basic education program must develop a memorandum of 
169.8 	understanding with the local workforce development centers located in the approved 
169.9 	program's service delivery area. The memorandum of understanding must describe how 
169.10 	the adult basic education program and the workforce development centers will cooperate 
169.11 	and coordinate services to provide unduplicated, efficient, and effective services to clients.
169.12 	(d) Adult basic education aid must be spent for adult basic education purposes as 
169.13 	specified in sections 124D.518 to 124D.531.
169.14 	(e) A state-approved adult basic education program must count and submit student 
169.15 	contact hours for a program that offers high school credit toward an adult high school 
169.16 	diploma according to student eligibility requirements and measures of student progress 
169.17 	toward work-based competency and, where appropriate, English language proficiency 
169.18 	requirements established by the commissioner and posted on the department Web site in 
169.19 	a readily accessible location and format.

169.20 	Sec. 2. Minnesota Statutes 2014, section 124D.52, subdivision 2, is amended to read:
169.21 		Subd. 2.Program approval. (a) To receive aid under this section, a district, a 
169.22 	consortium of districts, the Department of Corrections, or a private nonprofit organization, 
169.23 	or a consortium including districts, nonprofit organizations, or both must submit an 
169.24 	application by June 1 describing the program, on a form provided by the department. The 
169.25 	program must be approved by the commissioner according to the following criteria:
169.26 	(1) how the needs of different levels of learning and English language proficiency 
169.27 	will be met;
169.28 	(2) for continuing programs, an evaluation of results;
169.29 	(3) anticipated number and education level of participants;
169.30 	(4) coordination with other resources and services;
169.31 	(5) participation in a consortium, if any, and money available from other participants;
169.32 	(6) management and program design;
169.33 	(7) volunteer training and use of volunteers;
169.34 	(8) staff development services;
169.35 	(9) program sites and schedules;
170.1 	(10) program expenditures that qualify for aid;
170.2 	(11) program ability to provide data related to learner outcomes as required by 
170.3 	law; and
170.4 	(12) a copy of the memorandum of understanding described in subdivision 1 
170.5 	submitted to the commissioner.
170.6 	(b) Adult basic education programs may be approved under this subdivision for 
170.7 	up to five years. Five-year program approval must be granted to an applicant who has 
170.8 	demonstrated the capacity to:
170.9 	(1) offer comprehensive learning opportunities and support service choices 
170.10 	appropriate for and accessible to adults at all basic skill and English language levels of need;
170.11 	(2) provide a participatory and experiential learning approach based on the strengths, 
170.12 	interests, and needs of each adult, that enables adults with basic skill needs to:
170.13 	(i) identify, plan for, and evaluate their own progress toward achieving their defined 
170.14 	educational and occupational goals;
170.15 	(ii) master the basic academic reading, writing, and computational skills, as well 
170.16 	as the problem-solving, decision making, interpersonal effectiveness, and other life and 
170.17 	learning skills they need to function effectively in a changing society;
170.18 	(iii) locate and be able to use the health, governmental, and social services and 
170.19 	resources they need to improve their own and their families' lives; and
170.20 	(iv) continue their education, if they desire, to at least the level of secondary school 
170.21 	completion, with the ability to secure and benefit from continuing education that will 
170.22 	enable them to become more employable, productive, and responsible citizens;
170.23 	(3) plan, coordinate, and develop cooperative agreements with community resources 
170.24 	to address the needs that the adults have for support services, such as transportation, English 
170.25 	language learning, flexible course scheduling, convenient class locations, and child care;
170.26 	(4) collaborate with business, industry, labor unions, and employment-training 
170.27 	agencies, as well as with family and occupational education providers, to arrange for 
170.28 	resources and services through which adults can attain economic self-sufficiency;
170.29 	(5) provide sensitive and well trained adult education personnel who participate in 
170.30 	local, regional, and statewide adult basic education staff development events to master 
170.31 	effective adult learning and teaching techniques;
170.32 	(6) participate in regional adult basic education peer program reviews and evaluations;
170.33 	(7) submit accurate and timely performance and fiscal reports;
170.34 	(8) submit accurate and timely reports related to program outcomes and learner 
170.35 	follow-up information; and
171.1 	(9) spend adult basic education aid on adult basic education purposes only, which 
171.2 	are specified in sections 124D.518 to 124D.531.
171.3 	(c) The commissioner shall require each district to provide notification by February 
171.4 	1, 2001, of its intent to apply for funds under this section as a single district or as part of 
171.5 	an identified consortium of districts. A district receiving funds under this section must 
171.6 	notify the commissioner by February 1 of its intent to change its application status for 
171.7 	applications due the following June 1.

171.8 	Sec. 3. Minnesota Statutes 2014, section 124D.55, is amended to read:
171.9 	124D.55 GENERAL EDUCATION DEVELOPMENT (GED) TEST FEES.
171.10 	The commissioner shall pay 60 percent of the fee that is charged to an eligible 
171.11 	individual for the full battery of a general education development (GED) test tests, but not 
171.12 	more than $40 for an eligible individual.
171.13 	For fiscal year 2017 only, the commissioner shall pay 100 percent of the fee charged 
171.14 	to an eligible individual for the full battery of general education development (GED) tests, 
171.15 	but not more than the cost of one full battery of tests per year for any individual.

171.16 	Sec. 4. Laws 2015, First Special Session chapter 3, article 11, section 3, subdivision 3, 
171.17 	is amended to read:
171.18 		Subd. 3.GED tests. For payment of 60 percent of the costs of GED tests under 
171.19 	Minnesota Statutes, section 124D.55:

171.20		$
	125,000
	.....
	2016
	
171.21
171.22		$
	125,000
245,000
	.....
	2017
	
171.23 	The base appropriation for fiscal year 2018 and later is $125,000.

171.24 	Sec. 5. APPROPRIATIONS.
 171.25 		Subdivision 1.Department of Education. The sums indicated in this section are 
171.26 	appropriated from the general fund to the commissioner of education for the fiscal years 
171.27 	designated.
171.28 		Subd. 2.Adult basic education. For a grant for additional adult basic aid:

171.29		$
	400,000
	.....
	2017
	
171.30 	The International Education Center, the American Indian Opportunities 
171.31 	Industrialization Center, and the Minnesota Office of Communication Service for the Deaf 
171.32 	are eligible for additional adult basic education aid for innovative programs for fiscal year 
172.1 	2017 only. The onetime aid for each organization equals $400,000 times the ratio of the 
172.2 	organization's number of students served for the previous fiscal year to the sum of the 
172.3 	three organizations' number of students served for the previous fiscal year.
172.4 	This is a onetime appropriation.

172.5 	ARTICLE 14
172.6 	STATE AGENCIES

172.7 	Section 1. Minnesota Statutes 2014, section 122A.14, subdivision 9, is amended to read:
172.8 		Subd. 9. Fee. Each person licensed by the Board of School Administrators shall pay 
172.9 	the board a fee of $75, collected each fiscal year. When transmitting notice of the license 
172.10 	fee, the board also must notify the licensee of the penalty for failing to pay the fee within 
172.11 	the time specified by the board. The board may provide a lower fee for persons on retired 
172.12 	or inactive status. After receiving notice from the board, any licensed school administrator 
172.13 	who does not pay the fee in the given fiscal year shall have all administrative licenses held 
172.14 	by the person automatically suspended, without the right to a hearing, until the fee has been 
172.15 	paid to the board. If the board suspends a licensed school administrator for failing to pay 
172.16 	the fee, it must immediately notify the district currently employing the school administrator 
172.17 	of the school administrator's suspension. The executive secretary shall deposit the fees in 
172.18 	the educator licensure account in the special revenue fund in the state treasury.

172.19 	EFFECTIVE DATE. This section is effective July 1, 2016.

172.20 	Sec. 2. Minnesota Statutes 2014, section 122A.18, subdivision 7c, is amended to read:
172.21 		Subd. 7c.Temporary military license. The Board of Teaching shall establish 
172.22 	a temporary license in accordance with section 197.4552 for teaching. The fee for a 
172.23 	temporary license under this subdivision shall be $87.90 for an online application or 
172.24 	$86.40 for a paper application. The board must deposit the fees received from applicants 
172.25 	in the educator licensure account in the special revenue fund.

172.26 	EFFECTIVE DATE. This section is effective July 1, 2016.

172.27 	Sec. 3. Minnesota Statutes 2014, section 122A.18, subdivision 8, is amended to read:
172.28 		Subd. 8.Background checks. (a) The Board of Teaching and the commissioner 
172.29 	of education must request a criminal history background check from the superintendent 
172.30 	of the Bureau of Criminal Apprehension on all applicants for initial licenses under their 
172.31 	jurisdiction. An application for a license under this section must be accompanied by:
172.32 	(1) an executed criminal history consent form, including fingerprints; and
173.1 	(2) a money order or cashier's check payable to the Bureau of Criminal Apprehension 
173.2 	for the fee for conducting payment to conduct the criminal history background check. The 
173.3 	Board of Teaching and the commissioner of education must deposit payments received 
173.4 	under this subdivision in the educator licensure background check account in the special 
173.5 	revenue fund.
173.6 	(b) The superintendent of the Bureau of Criminal Apprehension shall perform the 
173.7 	background check required under paragraph (a) by retrieving criminal history data as 
173.8 	defined in section 13.87 and shall also conduct a search of the national criminal records 
173.9 	repository. The superintendent is authorized to exchange fingerprints with the Federal 
173.10 	Bureau of Investigation for purposes of the criminal history check. The superintendent 
173.11 	shall recover the cost to the bureau of a background check through the fee charged to 
173.12 	the applicant under paragraph (a).
173.13 	(c) The Board of Teaching or the commissioner of education may issue a license 
173.14 	pending completion of a background check under this subdivision, but must notify 
173.15 	the individual that the individual's license may be revoked based on the result of the 
173.16 	background check.

173.17 	EFFECTIVE DATE. This section is effective July 1, 2016.

173.18 	Sec. 4. [122A.185] SPECIAL REVENUE FUND ACCOUNTS; EDUCATOR 
173.19 	LICENSURE AND BACKGROUND CHECKS.
173.20 		Subdivision 1.Educator licensure account. An educator licensure account is 
173.21 	created in the special revenue fund. Applicant licensure fees received by the Department 
173.22 	of Education, the Board of Teaching, or the Board of School Administrators must be 
173.23 	deposited in the educator licensure account. Any funds appropriated from this account 
173.24 	that remain unexpended at the end of the biennium cancel to the educator licensure 
173.25 	account in the special revenue fund.
173.26 		Subd. 2.Background check account. An educator licensure background check 
173.27 	account is created in the special revenue fund. The Department of Education, the Board of 
173.28 	Teaching, and the Board of School Administrators must deposit all payments submitted by 
173.29 	license applicants for criminal background checks conducted by the Bureau of Criminal 
173.30 	Apprehension in the educator licensure background check account. Amounts in the 
173.31 	account are annually appropriated to the commissioner of education for payment to the 
173.32 	superintendent of the Bureau of Criminal Apprehension for the costs of background 
173.33 	checks on applicants for licensure.

173.34 	EFFECTIVE DATE. This section is effective July 1, 2016.

174.1 	Sec. 5. Minnesota Statutes 2014, section 122A.21, subdivision 1, is amended to read:
174.2 		Subdivision 1.Licensure applications. Each applicant submitting an application 
174.3 	for the issuance, renewal, or extension of to the Board of Teaching to issue, renew, or 
174.4 	extend a teaching license to teach, including applications for licensure via portfolio under 
174.5 	subdivision 2, must be accompanied by include a processing fee of $57. Each application 
174.6 	for issuing, renewing, or extending the license of a school administrator or supervisor 
174.7 	must be accompanied by a processing fee in the amount set by the Board of Teaching. The 
174.8 	processing fee for a teacher's license and for the licenses of supervisory personnel must 
174.9 	be paid to the executive secretary of the appropriate board and deposited in the educator 
174.10 	licensure account in the special revenue fund. The executive secretary of the board shall 
174.11 	deposit the fees with the commissioner of management and budget. The fees as set by the 
174.12 	board are nonrefundable for applicants not qualifying for a license. However, a fee must 
174.13 	be refunded by the commissioner of management and budget must refund a fee in any 
174.14 	case in which the applicant already holds a valid unexpired license. The board may waive 
174.15 	or reduce fees for applicants who apply at the same time for more than one license.

174.16 	EFFECTIVE DATE. This section is effective July 1, 2016.

174.17 	Sec. 6. Minnesota Statutes 2015 Supplement, section 122A.21, subdivision 2, is 
174.18 	amended to read:
174.19 		Subd. 2.Licensure via portfolio. (a) An eligible candidate may use licensure via 
174.20 	portfolio to obtain an initial licensure or to add a licensure field, consistent with applicable 
174.21 	Board of Teaching licensure rules.
174.22 	(b) A candidate for initial licensure must submit to the Educator Licensing Division 
174.23 	at the department one portfolio demonstrating pedagogical competence and one portfolio 
174.24 	demonstrating content competence.
174.25 	(c) A candidate seeking to add a licensure field must submit to the Educator 
174.26 	Licensing Division at the department one portfolio demonstrating content competence.
174.27 	(d) The Board of Teaching must notify a candidate who submits a portfolio under 
174.28 	paragraph (b) or (c) within 90 calendar days after the portfolio is received whether or not 
174.29 	the portfolio was approved. If the portfolio was not approved, the board must immediately 
174.30 	inform the candidate how to revise the portfolio to successfully demonstrate the requisite 
174.31 	competence. The candidate may resubmit a revised portfolio at any time and the Educator 
174.32 	Licensing Division at the department must approve or disapprove the portfolio within 
174.33 	60 calendar days of receiving it.
174.34 	(e) A candidate must pay to the executive secretary of the Board of Teaching a $300 
174.35 	fee for the first portfolio submitted for review and a $200 fee for any portfolio submitted 
175.1 	subsequently. The candidate must pay the fees must be paid to the executive secretary 
175.2 	of the Board of Teaching. The revenue generated from Board of Teaching executive 
175.3 	secretary must deposit the fee must be deposited in an education the educator licensure 
175.4 	portfolio account in the special revenue fund. The fees set by the Board of Teaching are 
175.5 	nonrefundable for applicants not qualifying for a license. The Board of Teaching may 
175.6 	waive or reduce fees for candidates based on financial need.

175.7 	EFFECTIVE DATE. This section is effective July 1, 2016.

175.8 	Sec. 7. Minnesota Statutes 2014, section 122A.21, is amended by adding a subdivision 
175.9 	to read:
175.10 		Subd. 3.Annual appropriations. The amounts collected under subdivision 2 
175.11 	and deposited in the educator licensure account in the special revenue fund are annually 
175.12 	appropriated to the Board of Teaching.

175.13 	EFFECTIVE DATE. This section is effective July 1, 2016.

175.14 	Sec. 8. Minnesota Statutes 2015 Supplement, section 122A.415, subdivision 3, is 
175.15 	amended to read:
175.16 		Subd. 3.Revenue timing. (a) Districts, intermediate school districts, cooperatives, 
175.17 	school sites, or charter schools with approved applications must receive alternative 
175.18 	compensation revenue for each school year that the district, intermediate school district, 
175.19 	cooperative, school site, or charter school implements an alternative teacher professional 
175.20 	pay system under this subdivision and section 122A.414. A qualifying district, intermediate 
175.21 	school district, cooperative, school site, or charter school that received alternative teacher 
175.22 	compensation aid for the previous fiscal year must receive at least an amount of alternative 
175.23 	teacher compensation revenue equal to the lesser of the amount it received for the previous 
175.24 	fiscal year or the amount it qualifies for under subdivision 1 for the current fiscal year if 
175.25 	the district, intermediate school district, cooperative, school site, or charter school submits 
175.26 	a timely application and the commissioner determines that the district, intermediate school 
175.27 	district, cooperative, school site, or charter school continues to implement an alternative 
175.28 	teacher professional pay system, consistent with its application under this section.
175.29 	(b) The commissioner shall approve applications that comply with subdivision 1, 
175.30 	and section 122A.414, subdivisions 2, paragraph (b), and 2a, if the applicant is a charter 
175.31 	school or cooperative, in the order in which they are received, select applicants that 
175.32 	qualify for this program, notify school districts, intermediate school districts, cooperatives, 
176.1 	school sites, and charter schools about the program, develop and disseminate application 
176.2 	materials, and carry out other activities needed to implement this section.
176.3 	(c) A school district, intermediate school district, cooperative, school site, or charter 
176.4 	school with an approved application and a written notice from the commissioner that the 
176.5 	district qualifies for its first year of alternative compensation revenue must receive revenue 
176.6 	for that year according to section 127A.41, subdivision 2.

176.7 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2016 
176.8 	and later.

176.9 	Sec. 9. Minnesota Statutes 2014, section 127A.41, subdivision 2, is amended to read:
176.10 		Subd. 2.Errors in distribution. (a) On determining that the amount of state aid 
176.11 	distributed to a school district is in error, the commissioner is authorized to adjust the 
176.12 	amount of aid consistent with this subdivision. On determining that the amount of aid is 
176.13 	in excess of the school district's entitlement, the commissioner is authorized to recover 
176.14 	the amount of the excess by any appropriate means. Notwithstanding the fiscal years 
176.15 	designated by the appropriation, the excess may be recovered by reducing future aid 
176.16 	payments to the district. Notwithstanding any law to the contrary, if the aid reduced is not 
176.17 	of the same type as that overpaid, the district must adjust all necessary financial accounts 
176.18 	to properly reflect all revenues earned in accordance with the uniform financial accounting 
176.19 	and reporting standards pursuant to sections 123B.75 to 123B.83. Notwithstanding the 
176.20 	fiscal years designated by the appropriation, on determining that the amount of an aid paid 
176.21 	is less than the school district's entitlement, the commissioner is authorized to increase 
176.22 	such aid from the current appropriation. If the aid program has been discontinued and has 
176.23 	no appropriation, the appropriation for general education shall be used for recovery or 
176.24 	payment of the aid decrease or increase. Any excess of aid recovery over aid payment 
176.25 	shall be canceled to the state general fund.
176.26 	(b) If the commissioner determines that an error in aid payments to a school under 
176.27 	section 122A.415, subdivision 3, paragraph (c), cannot be corrected under this section, 
176.28 	the commissioner must transfer the necessary funds and make those payments from the 
176.29 	Department of Education's annual operating budget.

176.30 	EFFECTIVE DATE. This section is effective the day following final enactment for 
176.31 	aid adjustments for fiscal year 2016 and later.

176.32 	Sec. 10. Laws 2015, First Special Session chapter 3, article 12, section 4, is amended 
176.33 	to read:
177.1 	Sec. 4. APPROPRIATIONS; DEPARTMENT OF EDUCATION.
 177.2 		Subdivision 1.Department of Education. Unless otherwise indicated, the sums 
177.3 	indicated in this section are appropriated from the general fund to the Department of 
177.4 	Education for the fiscal years designated.
177.5 		Subd. 2.Department. (a) For the Department of Education:

177.6		$  
	21,246,000
	.....
	2016
	
177.7
177.8		$  
	21,973,000
20,075,000
	.....
	2017
	
177.9 	(b) The fiscal year 2017 appropriation includes $19,173,000 from the general fund 
177.10 	and $916,000 is from the educator licensure account in the special revenue fund.
177.11 	Of these amounts: 
177.12 	(1) $718,000 each in fiscal year 2016 is for the Board of Teaching;
177.13 	(2) $228,000 in fiscal year 2016 and $231,000 in fiscal year 2017 are is for the 
177.14 	Board of School Administrators;
177.15 	(3) $1,000,000 each in fiscal year 2016 only is for Regional Centers of Excellence 
177.16 	under Minnesota Statutes, section 120B.115;
177.17 	(4) $500,000 each year is for the School Safety Technical Assistance Center under 
177.18 	Minnesota Statutes, section 127A.052; 
177.19 	(5) $250,000 each year is for the School Finance Division to enhance financial 
177.20 	data analysis; and
177.21 	(6) $441,000 in fiscal year 2016 and $720,000 in fiscal year 2017 is for implementing 
177.22 	Laws 2014, chapter 272, article 1, Minnesota's Learning for English Academic Proficiency 
177.23 	and Success Act, as amended.
177.24 	(b)
177.25 	(c) Any balance in the first year does not cancel but is available in the second year. 
177.26 	(c) (d) None of the amounts appropriated under this subdivision may be used for 
177.27 	Minnesota's Washington, D.C. office.
177.28 	(d) (e) The expenditures of federal grants and aids as shown in the biennial budget 
177.29 	document and its supplements are approved and appropriated and shall be spent as 
177.30 	indicated.
177.31 	(e) (f) This appropriation includes funds for information technology project services 
177.32 	and support subject to the provisions of Minnesota Statutes, section 16E.0466. Any 
177.33 	ongoing information technology costs will be incorporated into the service level agreement 
177.34 	and will be paid to the Office of MN.IT Services by the Department of Education under 
177.35 	the rates and mechanism specified in that agreement.
178.1 	(f) (g) If a school qualifying for aid under Minnesota Statutes, section 122A.415, 
178.2 	subdivision 3, paragraph (c), does not receive aid under that section or Minnesota Statutes, 
178.3 	section 127A.41, subdivision 2, paragraph (b), the commissioner must transfer the 
178.4 	amounts necessary to make these payments from the agency appropriation in paragraph 
178.5 	(a) to the appropriation for alternative compensation revenue.
178.6 	(h) $51,000 in fiscal year 2017 is for agency compliance.
178.7 	(i) The agency's base budget in fiscal year 2018 is $21,973,000 $20,024,000. The 
178.8 	agency's base budget in fiscal year 2019 is $21,948,000 $19,999,000.

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

178.10 	Sec. 11. TRANSFERS.
 178.11 		Subdivision 1.Portfolio account. On July 1, 2016, the commissioner of management 
178.12 	and budget shall transfer any balances in the educator licensure portfolio account in the 
178.13 	special revenue fund to the educator licensure account in the special revenue fund.
178.14 		Subd. 2.Background check. Any balance in an account that holds fees collected 
178.15 	under Minnesota Statutes, section 122A.18, subdivision 8, is transferred to the educator 
178.16 	licensure background check account in the special revenue fund under Minnesota Statutes, 
178.17 	section 122A.185, subdivision 2. On July 2, 2016, $80,000 is transferred from the 
178.18 	education licensure background check account in the special revenue fund to the educator 
178.19 	licensure account in the special revenue fund.

178.20 	Sec. 12. APPROPRIATION; BOARD OF TEACHING.
 178.21 	$718,000 in fiscal year 2017 is appropriated from the educator licensure account in 
178.22 	the special revenue fund to the Board of Teaching. 

178.23 	Sec. 13. APPROPRIATION; BOARD OF SCHOOL ADMINISTRATORS.
 178.24 	$231,000 in fiscal year 2017 is appropriated from the educator licensure account in 
178.25 	the special revenue fund to the Board of School Administrators.

178.26 	ARTICLE 15
178.27 	FORECAST ADJUSTMENTS

178.28 	Section 1. Laws 2015, First Special Session chapter 3, article 1, section 27, subdivision 
178.29 	4, is amended to read:
178.30 		Subd. 4.Abatement revenue. For abatement aid under Minnesota Statutes, section 
178.31 	127A.49:

179.1
179.2		$
	2,740,000
3,051,000
	.....
	2016
	
179.3
179.4		$
	2,932,000
3,425,000
	.....
	2017
	
179.5 	The 2016 appropriation includes $278,000 for 2015 and $2,462,000 $2,773,000
179.6 	for 2016.
179.7 	The 2017 appropriation includes $273,000 $308,000 for 2016 and $2,659,000
179.8 	$3,117,000 for 2017.

179.9 	Sec. 2. Laws 2015, First Special Session chapter 3, article 1, section 27, subdivision 5, 
179.10 	is amended to read:
179.11 		Subd. 5.Consolidation transition. For districts consolidating under Minnesota 
179.12 	Statutes, section 123A.485:

179.13
179.14		$
	292,000
22,000
	.....
	2016
	
179.15
179.16		$
	165,000
0
	.....
	2017
	
179.17 	The 2016 appropriation includes $22,000 for 2015 and $270,000 $0 for 2016.
179.18 	The 2017 appropriation includes $30,000 $0 for 2016 and $135,000 $0 for 2017.

179.19 	Sec. 3. Laws 2015, First Special Session chapter 3, article 1, section 27, subdivision 6, 
179.20 	is amended to read:
179.21 		Subd. 6.Nonpublic pupil education aid. For nonpublic pupil education aid under 
179.22 	Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:

179.23
179.24		$ 
	16,881,000
16,759,000
	.....
	2016
	
179.25
179.26		$ 
	17,460,000
17,235,000
	.....
	2017
	
179.27 	The 2016 appropriation includes $1,575,000 for 2015 and $15,306,000 $15,184,000
179.28 	for 2016.
179.29 	The 2017 appropriation includes $1,700,000 $1,687,000 for 2016 and $15,760,000
179.30 	$15,548,000 for 2017.

179.31 	Sec. 4. Laws 2015, First Special Session chapter 3, article 1, section 27, subdivision 7, 
179.32 	is amended to read:
179.33 		Subd. 7.Nonpublic pupil transportation. For nonpublic pupil transportation aid 
179.34 	under Minnesota Statutes, section 123B.92, subdivision 9:

180.1
180.2		$ 
	17,654,000
17,673,000
	.....
	2016
	
180.3
180.4		$ 
	17,792,000
18,103,000
	.....
	2017
	
180.5 	The 2016 appropriation includes $1,816,000 for 2015 and $15,838,000 $15,857,000
180.6 	for 2016.
180.7 	The 2017 appropriation includes $1,759,000 $1,761,000 for 2016 and $16,033,000
180.8 	$16,342,000 for 2017.

180.9 	Sec. 5. Laws 2015, First Special Session chapter 3, article 1, section 27, subdivision 9, 
180.10 	is amended to read:
180.11 		Subd. 9.Career and technical aid. For career and technical aid under Minnesota 
180.12 	Statutes, section 124D.4531, subdivision 1b:

180.13
180.14		$
	5,420,000
5,922,000
	.....
	2016
	
180.15
180.16		$
	4,405,000
4,262,000
	.....
	2017
	
180.17 	The 2016 appropriation includes $574,000 for 2015 and $4,846,000 $5,348,000
180.18 	for 2016.
180.19 	The 2017 appropriation includes $538,000 $517,000 for 2016 and $3,867,000
180.20 	$3,745,000 for 2017.

180.21 	Sec. 6. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 3, 
180.22 	is amended to read:
180.23 		Subd. 3.Achievement and integration aid. For achievement and integration aid 
180.24 	under Minnesota Statutes, section 124D.862:

180.25
180.26		$
	65,539,000
65,439,000
	.....
	2016
	
180.27
180.28		$
	68,745,000
69,255,000
	.....
	2017
	
180.29 	The 2016 appropriation includes $6,382,000 for 2015 and $59,157,000 $59,057,000
180.30 	for 2016.
180.31 	The 2017 appropriation includes $6,573,000 $6,561,000 for 2016 and $62,172,000
180.32 	$62,694,000 for 2017.

180.33 	Sec. 7. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 4, 
180.34 	is amended to read:
181.1 		Subd. 4.Literacy incentive aid. For literacy incentive aid under Minnesota 
181.2 	Statutes, section 124D.98:

181.3
181.4		$
	44,552,000
44,538,000
	.....
	2016
	
181.5
181.6		$
	45,508,000
45,855,000
	.....
	2017
	
181.7 	The 2016 appropriation includes $4,683,000 for 2015 and $39,869,000 $39,855,000
181.8 	for 2016.
181.9 	The 2017 appropriation includes $4,429,000 $4,428,000 for 2016 and $41,079,000
181.10 	$41,427,000 for 2017.

181.11 	Sec. 8. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 5, 
181.12 	is amended to read:
181.13 		Subd. 5.Interdistrict desegregation or integration transportation grants. For 
181.14 	interdistrict desegregation or integration transportation grants under Minnesota Statutes, 
181.15 	section 124D.87:

181.16
181.17		$
	15,023,000
14,423,000
	.....
	2016
	
181.18
181.19		$
	15,825,000
15,193,000
	.....
	2017

181.20 	Sec. 9. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 7, 
181.21 	is amended to read:
181.22 		Subd. 7.Tribal contract schools. For tribal contract school aid under Minnesota 
181.23 	Statutes, section 124D.83:

181.24
181.25		$ 
	4,340,000
3,539,000
	.....
	2016
	
181.26
181.27		$ 
	5,090,000
3,715,000
	.....
	2017
	
181.28 	The 2016 appropriation includes $204,000 for 2015 and $4,136,000 $3,335,000
181.29 	for 2016.
181.30 	The 2017 appropriation includes $459,000 $370,000 for 2016 and $4,631,000
181.31 	$3,345,000 for 2017.

181.32 	Sec. 10. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 
181.33 	11, is amended to read:
181.34 		Subd. 11.American Indian education aid. For American Indian education aid 
181.35 	under Minnesota Statutes, section 124D.81, subdivision 2a:

182.1
182.2		$ 
	7,868,000
7,740,000
	.....
	2016
	
182.3
182.4		$ 
	8,875,000
8,878,000
	.....
	2017
	
182.5 	The 2016 appropriation includes $0 for 2015 and $7,868,000 $7,740,000 for 2016.
182.6 	The 2017 appropriation includes $874,000 $860,000 for 2016 and $8,001,000
182.7 	$8,018,000 for 2017.

182.8 	Sec. 11. Laws 2015, First Special Session chapter 3, article 4, section 9, subdivision 2, 
182.9 	is amended to read:
182.10 		Subd. 2.Charter school building lease aid. For building lease aid under Minnesota 
182.11 	Statutes, section 124D.11, subdivision 4 124E.22: 

182.12
182.13		$
	66,787,000
63,540,000
	.....
	2016
	
182.14
182.15		$
	73,603,000
69,962,000
	.....
	2017
	
182.16 	The 2016 appropriation includes $6,032,000 for 2015 and $60,755,000 $57,508,000
182.17 	for 2016.
182.18 	The 2017 appropriation includes $6,750,000 $6,389,000 for 2016 and $66,853,000
182.19 	$63,573,000 for 2017.

182.20 	Sec. 12. Laws 2015, First Special Session chapter 3, article 5, section 30, subdivision 
182.21 	3, is amended to read:
182.22 		Subd. 3.Travel for home-based services. For aid for teacher travel for home-based 
182.23 	services under Minnesota Statutes, section 125A.75, subdivision 1:

182.24
182.25		$
	361,000
416,000
	.....
	2016
	
182.26
182.27		$
	371,000
435,000
	.....
	2017
	
182.28 	The 2016 appropriation includes $35,000 for 2015 and $326,000 $381,000 for 2016.
182.29 	The 2017 appropriation includes $36,000 $42,000 for 2016 and $335,000 $393,000
182.30 	for 2017.

182.31 	Sec. 13. Laws 2015, First Special Session chapter 3, article 5, section 30, subdivision 
182.32 	5, is amended to read:
182.33 		Subd. 5.Aid for children with disabilities. For aid under Minnesota Statutes, 
182.34 	section 125A.75, subdivision 3, for children with disabilities placed in residential facilities 
182.35 	within the district boundaries for whom no district of residence can be determined:

183.1
183.2		$
	1,406,000
1,307,000
	.....
	2016
	
183.3
183.4		$
	1,629,000
1,516,000
	.....
	2017
	
183.5 	If the appropriation for either year is insufficient, the appropriation for the other 
183.6 	year is available.

183.7 	Sec. 14. Laws 2015, First Special Session chapter 3, article 6, section 13, subdivision 
183.8 	2, is amended to read:
183.9 		Subd. 2.Long-term maintenance equalization aid. For long-term maintenance 
183.10 	equalization aid under Minnesota Statutes, section 123B.595:

183.11		$
	0
	.....
	2016
	
183.12
183.13		$ 
	52,088,000
52,553,000
	.....
	2017
	
183.14 	The 2017 appropriation includes $0 for 2016 and $52,088,000 $52,553,000 for 2017.

183.15 	Sec. 15. Laws 2015, First Special Session chapter 3, article 6, section 13, subdivision 
183.16 	3, is amended to read:
183.17 		Subd. 3.Debt service equalization. For debt service aid according to Minnesota 
183.18 	Statutes, section 123B.53, subdivision 6:

183.19		$
	20,349,000
	.....
	2016
	
183.20
183.21		$
	22,171,000
22,926,000
	.....
	2017
	
183.22 	The 2016 appropriation includes $2,295,000 for 2015 and $18,054,000 for 2016.
183.23 	The 2017 appropriation includes $2,005,000 for 2016 and $20,166,000 $20,921,000
183.24 	for 2017.

183.25 	Sec. 16. Laws 2015, First Special Session chapter 3, article 6, section 13, subdivision 
183.26 	6, is amended to read:
183.27 		Subd. 6.Deferred maintenance aid. For deferred maintenance aid, according to 
183.28 	Minnesota Statutes, section 123B.591, subdivision 4:

183.29
183.30		$
	3,520,000
3,523,000
	.....
	2016
	
183.31		$
	345,000
	.....
	2017
	
183.32 	The 2016 appropriation includes $409,000 for 2015 and $3,111,000 $3,114,000
183.33 	for 2016.
183.34 	The 2017 appropriation includes $345,000 for 2016 and $0 for 2017.

184.1 	Sec. 17. Laws 2015, First Special Session chapter 3, article 6, section 13, subdivision 
184.2 	7, is amended to read:
184.3 		Subd. 7.Health and safety revenue. For health and safety aid according to 
184.4 	Minnesota Statutes, section 123B.57, subdivision 5:

184.5
184.6		$
	501,000
588,000
	.....
	2016
	
184.7
184.8		$
	48,000
57,000
	.....
	2017
	
184.9 	The 2016 appropriation includes $66,000 for 2015 and $435,000 $522,000 for 2016.
184.10 	The 2017 appropriation includes $48,000 $57,000 for 2016 and $0 for 2017.

184.11 	Sec. 18. Laws 2015, First Special Session chapter 3, article 7, section 7, subdivision 2, 
184.12 	is amended to read:
184.13 		Subd. 2.School lunch. For school lunch aid according to Minnesota Statutes, 
184.14 	section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

184.15
184.16		$
	15,661,000
16,251,000
	.....
	2016
	
184.17
184.18		$
	15,818,000
16,739,000
	.....
	2017

184.19 	Sec. 19. Laws 2015, First Special Session chapter 3, article 7, section 7, subdivision 3, 
184.20 	is amended to read:
184.21 		Subd. 3.School breakfast. For traditional school breakfast aid under Minnesota 
184.22 	Statutes, section 124D.1158:

184.23
184.24		$
	9,731,000
9,457,000
	.....
	2016
	
184.25
184.26		$
	10,361,000
10,149,000
	.....
	2017

184.27 	Sec. 20. Laws 2015, First Special Session chapter 3, article 7, section 7, subdivision 4, 
184.28 	is amended to read:
184.29 		Subd. 4.Kindergarten milk. For kindergarten milk aid under Minnesota Statutes, 
184.30 	section 124D.118:

184.31
184.32		$
	942,000
788,000
	.....
	2016
	
184.33
184.34		$
	942,000
788,000
	.....
	2017

185.1 	Sec. 21. Laws 2015, First Special Session chapter 3, article 9, section 8, subdivision 5, 
185.2 	is amended to read:
185.3 		Subd. 5.Early childhood family education aid. For early childhood family 
185.4 	education aid under Minnesota Statutes, section 124D.135:

185.5
185.6		$ 
	28,444,000
27,948,000
	.....
	2016
	
185.7
185.8		$ 
	29,939,000
29,336,000
	.....
	2017
	
185.9 	The 2016 appropriation includes $2,713,000 for 2015 and $25,731,000 $25,235,000
185.10 	for 2016.
185.11 	The 2017 appropriation includes $2,858,000 $2,803,000 for 2016 and $27,081,000
185.12 	$26,533,000 for 2017.

185.13 	Sec. 22. Laws 2015, First Special Session chapter 3, article 9, section 8, subdivision 6, 
185.14 	is amended to read:
185.15 		Subd. 6.Developmental screening aid. For developmental screening aid under 
185.16 	Minnesota Statutes, sections 121A.17 and 121A.19:

185.17
185.18		$
	3,363,000
3,477,000
	.....
	2016
	
185.19
185.20		$
	3,369,000
3,488,000
	.....
	2017
	
185.21 	The 2016 appropriation includes $338,000 for 2015 and $3,025,000 $3,139,000
185.22 	for 2016.
185.23 	The 2017 appropriation includes $336,000 $348,000 for 2016 and $3,033,000
185.24 	$3,140,000 for 2017.

185.25 	Sec. 23. Laws 2015, First Special Session chapter 3, article 10, section 3, subdivision 
185.26 	2, is amended to read:
185.27 		Subd. 2.Community education aid. For community education aid under 
185.28 	Minnesota Statutes, section 124D.20:

185.29
185.30		$
	788,000
790,000
	.....
	2016
	
185.31
185.32		$
	554,000
553,000
	.....
	2017
	
185.33 	The 2016 appropriation includes $107,000 for 2015 and $681,000 $683,000 for 2016.
185.34 	The 2017 appropriation includes $75,000 for 2016 and $479,000 $478,000 for 2017.

186.1 	Sec. 24. Laws 2015, First Special Session chapter 3, article 11, section 3, subdivision 
186.2 	2, is amended to read:
186.3 		Subd. 2.Adult basic education aid. For adult basic education aid under Minnesota 
186.4 	Statutes, section 124D.531:

186.5
186.6		$
	49,118,000
48,231,000
	.....
	2016
	
186.7
186.8		$
	50,592,000
49,683,000
	.....
	2017
	
186.9 	The 2016 appropriation includes $4,782,000 for 2015 and $44,336,000 $43,449,000
186.10 	for 2016.
186.11 	The 2017 appropriation includes $4,926,000 $4,827,000 for 2016 and $45,666,000
186.12 	$44,856,000 for 2017.