1.1 	A bill for an act
1.2 	relating to education; providing for general education, education excellence, 
1.3 	special education, and other programs; appropriating money;amending 
1.4 	Minnesota Statutes 2010, sections 120A.20, subdivision 2; 120A.22, subdivisions 
1.5 	2, 11; 120B.024; 120B.13, subdivisions 1, 4; 122A.40, subdivision 13; 
1.6 	122A.415, subdivision 3; 123B.04; 123B.92, subdivision 3; 124D.08, by adding 
1.7 	a subdivision; 124D.09, subdivisions 9, 12, 22, 24, by adding a subdivision; 
1.8 	124D.4531, subdivision 3, by adding a subdivision; 125A.14; 125A.19; 
1.9 	125A.515, subdivision 1; 126C.10, subdivision 28; 126C.19, subdivision 2; 
1.10 	127A.47, subdivision 1; 135A.101, subdivision 1; 471.975; Minnesota Statutes 
1.11 	2011 Supplement, sections 120A.24, subdivisions 1, 2; 120B.023, subdivision 
1.12 	2; 120B.07; 120B.08; 120B.09; 120B.12, subdivision 2; 120B.30, subdivision 
1.13 	1; 122A.40, subdivision 5; 123B.147, subdivision 3; 124D.09, subdivision 
1.14 	7; 124D.10, subdivisions 3, 4, 6, 8, 13, 15, 17a, by adding a subdivision; 
1.15 	124D.4531, subdivision 1; 124D.98, subdivisions 2, 3; 126C.126; 126C.40, 
1.16 	subdivision 1; 127A.45, subdivision 6a; Laws 2011, First Special Session chapter 
1.17 	11, article 2, section 50, subdivision 16; article 5, section 11; article 7, section 2, 
1.18 	subdivision 8; repealing Minnesota Statutes 2010, sections 120A.28; 120B.019; 
1.19 	120B.31, subdivision 3; 121A.60, subdivisions 3, 4; 121A.62; 121A.63; 
1.20 	122A.18, subdivision 9; 124D.09, subdivision 23; 124D.135, subdivisions 8, 9; 
1.21 	124D.16, subdivisions 6, 7; 124D.20, subdivisions 11, 12; 125A.16; 125A.80; 
1.22 	127A.47, subdivision 2; 475.53, subdivision 5.
1.23 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.24 	ARTICLE 1
1.25 	GENERAL EDUCATION

1.26 	Section 1. Minnesota Statutes 2010, section 120A.20, subdivision 2, is amended to 
1.27 	read:
1.28 		Subd. 2.Education and, residence, and transportation of homeless. (a) 
1.29 	Notwithstanding subdivision 1, a district must not deny free admission to a homeless 
1.30 	person of school age pupil solely because the district cannot determine that the person
1.31 	pupil is a resident of the district.
2.1 	(b) The school district of residence for a homeless person of school age pupil
2.2 	shall be the school district in which the homeless shelter or other program, center, or 
2.3 	facility assisting the homeless person is located. The educational services a school 
2.4 	district provides to a homeless person must allow the person to work toward meeting the 
2.5 	graduation standards under section 120B.02. parent or legal guardian resides, unless: (1) 
2.6 	parental rights have been terminated by court order; (2) the parent or guardian is not 
2.7 	living within the state; or (3) the parent or guardian having legal custody of the child is 
2.8 	an inmate of a Minnesota correctional facility or is a resident of a halfway house under 
2.9 	the supervision of the commissioner of corrections. If any of clauses (1) to (3) apply, the 
2.10 	school district of residence shall be the school district in which the pupil resided when the 
2.11 	qualifying event occurred. If no other district of residence can be established, the school 
2.12 	district of residence shall be the school district in which the pupil currently resides. If 
2.13 	there is a dispute between school districts regarding residency, the district of residence is 
2.14 	the district designated by the commissioner of education.
2.15 	(c) The serving district is responsible for transporting a homeless pupil to and from 
2.16 	the pupil's district of residence. The district may transport from a permanent home in 
2.17 	another district but only through the end of the academic school year. When a pupil is 
2.18 	enrolled in a charter school, the district or school that provides transportation for other 
2.19 	pupils enrolled in the charter school is responsible for providing transportation. When a 
2.20 	homeless student with or without an individualized education program attends a public 
2.21 	school other than an independent or special school district or charter school, the district of 
2.22 	residence is responsible for transportation.

2.23 	Sec. 2. Minnesota Statutes 2010, section 120A.22, subdivision 11, is amended to read:
2.24 		Subd. 11.Assessment of performance. (a) Each year the performance of every 
2.25 	child ages seven through 16 who is not enrolled in a public school must be assessed using 
2.26 	a nationally norm-referenced standardized achievement examination. The superintendent 
2.27 	of the district in which the child receives instruction and the person in charge of the child's 
2.28 	instruction must agree about the specific examination to be used and the administration 
2.29 	and location of the examination.
2.30 	(b) To the extent the examination in paragraph (a) does not provide assessment in 
2.31 	all of the subject areas in subdivision 9, the parent must assess the child's performance 
2.32 	in the applicable subject area. This requirement applies only to a parent who provides 
2.33 	instruction and does not meet the requirements of subdivision 10, clause (1), (2), or (3).
2.34 	(c) If the results of the assessments in paragraphs (a) and (b) indicate that the 
2.35 	child's performance on the total battery score is at or below the 30th percentile or one 
3.1 	grade level below the performance level for children of the same age, the parent must 
3.2 	obtain additional evaluation of the child's abilities and performance for the purpose of 
3.3 	determining whether the child has learning problems.
3.4 	(d) A child receiving instruction from a nonpublic school, person, or institution that 
3.5 	is accredited by an accrediting agency, recognized according to section 123B.445, or 
3.6 	recognized by the commissioner, is exempt from the requirements of this subdivision.

3.7 	Sec. 3. Minnesota Statutes 2011 Supplement, section 120A.24, subdivision 1, is 
3.8 	amended to read:
3.9 		Subdivision 1.Reports to superintendent. (a) The person or nonpublic school in 
3.10 	charge of providing instruction to a child must submit to the superintendent of the district 
3.11 	in which the child resides the name, birth date, and address of the child; the annual tests 
3.12 	intended to be used under section 120A.22, subdivision 11, if required; the name of each 
3.13 	instructor; and evidence of compliance with one of the requirements specified in section 
3.14 	120A.22, subdivision 10:
3.15 	(1) by October 1 of the first school year the child receives instruction after reaching 
3.16 	the age of seven;
3.17 	(2) within 15 days of when a parent withdraws a child from public school after age 
3.18 	seven to homeschool provide instruction in a nonpublic school that is not accredited 
3.19 	by a state-recognized accredited agency;
3.20 	(3) within 15 days of moving out of a district; and
3.21 	(4) by October 1 after a new resident district is established.
3.22 	(b) The person or nonpublic school in charge of providing instruction to a child 
3.23 	between the ages of seven and 16 must submit, by October 1 of each school year, a letter 
3.24 	of intent to continue to provide instruction under this section for all students under the 
3.25 	person's or school's supervision and any changes to the information required in paragraph 
3.26 	(a) for each student.
3.27 	(c) The superintendent may collect the required information under this section 
3.28 	through an electronic or Web-based format, but must not require electronic submission 
3.29 	of information under this section from the person in charge of reporting under this 
3.30 	subdivision.

3.31 	Sec. 4. Minnesota Statutes 2011 Supplement, section 120A.24, subdivision 2, is 
3.32 	amended to read:
3.33 		Subd. 2.Availability of documentation. (a) The person or nonpublic school in 
3.34 	charge of providing instruction to a child must maintain documentation indicating that the 
4.1 	subjects required in section 120A.22, subdivision 9, are being taught and proof that the 
4.2 	tests under section 120A.22, subdivision 11, have been administered. This documentation 
4.3 	must include class schedules, copies of materials used for instruction, and descriptions of 
4.4 	methods used to assess student achievement.
4.5 	(b) The parent of a child who enrolls full time in public school after having been 
4.6 	enrolled in a home school under section  120A.22, subdivision 6 nonpublic school that 
4.7 	is not accredited by a state-recognized accrediting agency, must provide the enrolling 
4.8 	public school or school district with the child's scores on any tests administered to the 
4.9 	child under section 120A.22, subdivision 11, and other education-related documents the 
4.10 	enrolling school or district requires to determine where the child is placed in school and 
4.11 	what course requirements apply. This paragraph does not apply to a shared time student 
4.12 	who does not seek a public school diploma.
4.13 	(c) The person or nonpublic school in charge of providing instruction to a child must 
4.14 	make the documentation in this subdivision available to the county attorney when a case 
4.15 	is commenced under section 120A.26, subdivision 5; chapter 260C; or when diverted 
4.16 	under chapter 260A.

4.17 	Sec. 5. Minnesota Statutes 2011 Supplement, section 120B.023, subdivision 2, is 
4.18 	amended to read:
4.19 		Subd. 2.Revisions and reviews required. (a) The commissioner of education must 
4.20 	revise and appropriately embed technology and information literacy standards consistent 
4.21 	with recommendations from school media specialists into the state's academic standards 
4.22 	and graduation requirements and implement a review cycle for state academic standards 
4.23 	and related benchmarks, consistent with this subdivision. During each review cycle, the 
4.24 	commissioner also must examine the alignment of each required academic standard and 
4.25 	related benchmark with the knowledge and skills students need for college readiness and 
4.26 	advanced work in the particular subject area.
4.27 	(b) The commissioner in the 2006-2007 school year must revise and align the state's 
4.28 	academic standards and high school graduation requirements in mathematics to require 
4.29 	that students satisfactorily complete the revised mathematics standards, beginning in the 
4.30 	2010-2011 school year. Under the revised standards:
4.31 	(1) students must satisfactorily complete an algebra I credit by the end of eighth 
4.32 	grade; and
4.33 	(2) students scheduled to graduate in the 2014-2015 school year or later must 
4.34 	satisfactorily complete an algebra II credit or its equivalent.
5.1 	The commissioner also must ensure that the statewide mathematics assessments 
5.2 	administered to students in grades 3 through 8 and 11 are aligned with the state academic 
5.3 	standards in mathematics, consistent with section 120B.30, subdivision 1, paragraph 
5.4 	(b). The commissioner must implement a review of the academic standards and related 
5.5 	benchmarks in mathematics beginning in the 2015-2016 school year.
5.6 	(c) The commissioner in the 2007-2008 school year must revise and align the state's 
5.7 	academic standards and high school graduation requirements in the arts to require that 
5.8 	students satisfactorily complete the revised arts standards beginning in the 2010-2011 
5.9 	school year. The commissioner must implement a review of the academic standards and 
5.10 	related benchmarks in arts beginning in the 2016-2017 school year.
5.11 	(d) The commissioner in the 2008-2009 school year must revise and align the state's 
5.12 	academic standards and high school graduation requirements in science to require that 
5.13 	students satisfactorily complete the revised science standards, beginning in the 2011-2012 
5.14 	school year. Under the revised standards, students scheduled to graduate in the 2014-2015 
5.15 	school year or later must satisfactorily complete a chemistry, or physics, credit or a career 
5.16 	and technical education credit that meets the standards underlying either the chemistry or,
5.17 	physics, or biology credit or a combination of those standards approved by the district. 
5.18 	The commissioner must implement a review of the academic standards and related 
5.19 	benchmarks in science beginning in the 2017-2018 school year.
5.20 	(e) The commissioner in the 2009-2010 school year must revise and align the state's 
5.21 	academic standards and high school graduation requirements in language arts to require 
5.22 	that students satisfactorily complete the revised language arts standards beginning in the 
5.23 	2012-2013 school year. The commissioner must implement a review of the academic 
5.24 	standards and related benchmarks in language arts beginning in the 2018-2019 school year.
5.25 	(f) The commissioner in the 2010-2011 school year must revise and align the state's 
5.26 	academic standards and high school graduation requirements in social studies to require 
5.27 	that students satisfactorily complete the revised social studies standards beginning in the 
5.28 	2013-2014 school year. The commissioner must implement a review of the academic 
5.29 	standards and related benchmarks in social studies beginning in the 2019-2020 school year.
5.30 	(g) School districts and charter schools must revise and align local academic 
5.31 	standards and high school graduation requirements in health, world languages, and career 
5.32 	and technical education to require students to complete the revised standards beginning 
5.33 	in a school year determined by the school district or charter school. School districts and 
5.34 	charter schools must formally establish a periodic review cycle for the academic standards 
5.35 	and related benchmarks in health, world languages, and career and technical education.

6.1 	Sec. 6. Minnesota Statutes 2010, section 120B.024, is amended to read:
6.2 	120B.024 GRADUATION REQUIREMENTS; COURSE CREDITS.
6.3 	(a) Students beginning 9th grade in the 2004-2005 2011-2012 school year and later 
6.4 	must successfully complete the following high school level course credits for graduation:
6.5 	(1) four credits of language arts;
6.6 	(2) three credits of mathematics, encompassing at least algebra, geometry, statistics, 
6.7 	and probability sufficient to satisfy the academic standard;
6.8 	(3) three credits of science, including at least: (i) one credit in biology; and (ii) one 
6.9 	chemistry or physics credit or a career and technical education credit that meets standards 
6.10 	underlying the chemistry, physics, or biology credit or a combination of those standards 
6.11 	approved by the district, but meeting biology standards under this item does not meet the 
6.12 	biology requirement under item (i);
6.13 	(4) three and one-half credits of social studies, encompassing at least United 
6.14 	States history, geography, government and citizenship, world history, and economics or 
6.15 	three credits of social studies encompassing at least United States history, geography, 
6.16 	government and citizenship, and world history, and one-half credit of economics taught in 
6.17 	a school's social studies, agriculture education, or business department;
6.18 	(5) one credit in the arts; and
6.19 	(6) a minimum of seven elective course credits.
6.20 	A course credit is equivalent to a student successfully completing an academic 
6.21 	year of study or a student mastering the applicable subject matter, as determined by the 
6.22 	local school district.
6.23 	(b) An agriculture science course may fulfill a science credit requirement in addition 
6.24 	to other than the specified science credits credit in biology and chemistry or physics
6.25 	under paragraph (a), clause (3).
6.26 	(c) A career and technical education course may fulfill a science, mathematics, or 
6.27 	arts credit requirement in addition to the specified science, mathematics, or arts credits
6.28 	or a science credit requirement other than the specified science credit in biology under 
6.29 	paragraph (a), clause (2), (3), or (5).

6.30 	Sec. 7. Minnesota Statutes 2011 Supplement, section 120B.07, is amended to read:
6.31 	120B.07 EARLY GRADUATION.
6.32 	(a) Notwithstanding any law to the contrary, any secondary school student who has 
6.33 	completed all required courses or standards may, with the approval of the student, the 
6.34 	student's parent or guardian, and local school officials, graduate before the completion 
6.35 	of the school year.
7.1 	(b) General education revenue attributable to the student must be paid as though 
7.2 	the student was in attendance for the entire year unless the student participates in the 
7.3 	early graduation achievement scholarship program under section 120B.08 or the early 
7.4 	graduation military service award program under section 120B.09.

7.5 	EFFECTIVE DATE. This section is effective for fiscal year 2012 and later.

7.6 	Sec. 8. Minnesota Statutes 2011 Supplement, section 120B.08, is amended to read:
7.7 	120B.08 EARLY GRADUATION ACHIEVEMENT SCHOLARSHIP 
7.8 	PROGRAM.
7.9 		Subdivision 1.Participation. A student who qualifies for early graduation under 
7.10 	section 120B.07, who meets the criteria in subdivision 1a and who has not participated in 
7.11 	the early graduation military service award program under section 120B.09, is eligible to 
7.12 	participate in the early graduation achievement scholarship program.
7.13 		Subd. 1a.Eligible student. For purposes of this section, an eligible student is a 
7.14 	secondary student enrolled in a Minnesota public school who, at the time of graduation, 
7.15 	generated Minnesota general education revenue and who graduates prior to the end of the 
7.16 	fourth school year after first enrolling in ninth grade.
7.17 		Subd. 2.Scholarship amounts. A student who participates in the early graduation 
7.18 	achievement scholarship program is eligible for a scholarship of $2,500 if the student 
7.19 	qualifies for graduation graduates one semester or two trimesters early, $5,000 if the 
7.20 	student qualifies for graduation graduates two semesters or three or four trimesters early, 
7.21 	or $7,500 if the student qualifies for graduation graduates three or more semesters or five 
7.22 	or more trimesters early. Participation in the optional summer term, extended day sessions, 
7.23 	and intersessions of a state-approved learning year program under section 124D.128 are 
7.24 	considered a quarter for purposes of computing scholarship amounts.
7.25 		Subd. 3.Scholarship uses. An early graduation achievement scholarship may be 
7.26 	used at any accredited institution of higher education accredited by an accrediting agency 
7.27 	recognized by the United States Department of Education.
7.28 		Subd. 4.Application. A qualifying student may apply to the commissioner of 
7.29 	education for an early graduation achievement scholarship. The application must be in the 
7.30 	form and manner specified by the commissioner and must be received at the department 
7.31 	within two calendar years of the date of graduation. Upon verification of the qualifying 
7.32 	student's course completion necessary for graduation, the department must issue the 
7.33 	student a certificate showing the student's scholarship amount.
8.1 		Subd. 5.Enrollment verification. A student who qualifies under this section 
8.2 	and enrolls in an accredited higher education institution must submit a form to the 
8.3 	commissioner verifying the student's enrollment in the higher education institution and the 
8.4 	tuition charges for that semester. Within 15 45 days of receipt of a student's enrollment 
8.5 	and tuition verification form, the commissioner must issue a scholarship check to the 
8.6 	student higher education institution in the lesser of the tuition amount for that semester 
8.7 	or the maximum amount of the student's early graduation achievement scholarship. A 
8.8 	student may continue to submit enrollment verification forms to the commissioner until 
8.9 	the student has used the full amount of the student's graduation achievement scholarship or 
8.10 	six years from the date of the student's graduation, whichever occurs first. The scholarship 
8.11 	cannot be renewed.
8.12 		Subd. 6.General education money transferred. The commissioner must transfer 
8.13 	the amounts necessary to fund the early graduation achievement scholarships from the 
8.14 	general education aid appropriation for that year.

8.15 	EFFECTIVE DATE. This section is effective for fiscal year 2012 and later.

8.16 	Sec. 9. Minnesota Statutes 2011 Supplement, section 120B.09, is amended to read:
8.17 	120B.09 EARLY GRADUATION MILITARY SERVICE AWARD PROGRAM.
8.18 		Subdivision 1.Eligibility. For purposes of this section, "eligible person" means a 
8.19 	secondary student enrolled in any Minnesota public school who, at the time of graduation, 
8.20 	generated Minnesota general education revenue, who qualifies for early graduation under 
8.21 	section 120B.07, who graduated prior to the end of the fourth school year after first 
8.22 	enrolling in ninth grade, who has not participated in the early graduation achievement 
8.23 	scholarship program under section 120B.08, and who, before the end of the calendar 
8.24 	year of the student's graduation, enters into active service in either the active or reserve 
8.25 	component of the United States armed forces and deploys for 60 days or longer to a 
8.26 	military base or installation outside Minnesota for the purpose of attending basic military 
8.27 	training or military school and, if required by the military, performing other military duty. 
8.28 	The active service may be in accordance with United States Code, title 10 or title 32.
8.29 		Subd. 2.Application. An eligible person may apply to the commissioner of 
8.30 	education for an early graduation military service bonus. The application must be in the 
8.31 	form and manner specified by the commissioner and must be received at the department 
8.32 	within two calendar years of the date of graduation.
8.33 		Subd. 3.Verification and award. The request for payment must be received at 
8.34 	the department by the end of the second fiscal year following the fiscal year in which 
9.1 	the student graduated. Upon verification of the qualifying student's course completion 
9.2 	necessary for graduation and eligibility for the military service bonus, the commissioner 
9.3 	must issue payment to that person. Payment amounts must be determined according to 
9.4 	section 120B.08, subdivision 2. Once the original amount of the award has been paid, it 
9.5 	cannot be renewed.

9.6 	EFFECTIVE DATE. This section is effective for fiscal year 2012 and later.

9.7 	Sec. 10. Minnesota Statutes 2010, section 120B.13, subdivision 4, is amended to read:
9.8 		Subd. 4.Rigorous course taking information; AP, IB, and PSEO. The 
9.9 	commissioner shall submit the following information on rigorous course taking to the 
9.10 	education committees of the legislature each year by February 1:
9.11 	(1) the number of pupils enrolled in postsecondary enrollment options under 
9.12 	section 124D.09, including concurrent enrollment, advanced placement, and international 
9.13 	baccalaureate courses in each school district;
9.14 	(2) the number of teachers in each district attending training programs offered by 
9.15 	the college board or, International Baccalaureate North America, Inc., or Minnesota 
9.16 	concurrent enrollment programs;
9.17 	(3) the number of teachers in each district participating in support programs;
9.18 	(4) recent trends in the field of postsecondary enrollment options under section 
9.19 	124D.09, including concurrent enrollment, advanced placement, and international 
9.20 	baccalaureate programs;
9.21 	(5) expenditures for each category in this section and under sections 124D.09 and 
9.22 	124D.091; and
9.23 	(6) other recommendations for the state program or the postsecondary enrollment 
9.24 	options under section 124D.09, including concurrent enrollment.

9.25 	EFFECTIVE DATE. This section is effective for the 2012-2013 school year and 
9.26 	later.

9.27 	Sec. 11. Minnesota Statutes 2010, section 122A.415, subdivision 3, is amended to read:
9.28 		Subd. 3.Revenue timing. (a) Districts, intermediate school districts, school sites, 
9.29 	or charter schools with approved applications must receive alternative compensation 
9.30 	revenue for each school year that the district, intermediate school district, school site, 
9.31 	or charter school implements an alternative teacher professional pay system under this 
9.32 	subdivision and section 122A.414. For fiscal year 2007 and later, a qualifying district, 
9.33 	intermediate school district, school site, or charter school that received alternative teacher 
10.1 	compensation aid for the previous fiscal year must receive at least an amount of alternative 
10.2 	teacher compensation revenue equal to the lesser of the amount it received for the previous 
10.3 	fiscal year or the amount it qualifies for under subdivision 1 for the current fiscal year if 
10.4 	the district, intermediate school district, school site, or charter school submits a timely 
10.5 	application and the commissioner determines that the district, intermediate school district, 
10.6 	school site, or charter school continues to implement an alternative teacher professional 
10.7 	pay system, consistent with its application under this section.
10.8 	(b) The commissioner shall approve applications that comply with subdivision 1, 
10.9 	and section 122A.414, subdivisions 2, paragraph (b), and 2a, if the applicant is a charter 
10.10 	school, in the order in which they are received, select applicants that qualify for this 
10.11 	program, notify school districts, intermediate school districts, school sites, and charter 
10.12 	schools about the program, develop and disseminate application materials, and carry out 
10.13 	other activities needed to implement this section.
10.14 	(c) For applications approved under this section before August 1 of the fiscal year for 
10.15 	which the aid is paid, the portion of the state total basic alternative teacher compensation 
10.16 	aid entitlement allocated to charter schools must not exceed $522,000 for fiscal year 2006 
10.17 	and $3,374,000 for fiscal year 2007. For fiscal year 2008 and later, the portion of the state 
10.18 	total basic alternative teacher compensation aid entitlement allocated to charter schools 
10.19 	must not exceed the product of $3,374,000 times the ratio of the state total charter school 
10.20 	enrollment for the previous fiscal year to the state total charter school enrollment for the 
10.21 	second previous fiscal year 2007. Additional basic alternative teacher compensation aid 
10.22 	may be approved for charter schools after August 1, not to exceed the charter school limit 
10.23 	for the following fiscal year, if the basic alternative teacher compensation aid entitlement 
10.24 	for school districts based on applications approved by August 1 does not expend the 
10.25 	remaining amount under the limit.

10.26 	Sec. 12. Minnesota Statutes 2010, section 123B.92, subdivision 3, is amended to read:
10.27 		Subd. 3.Alternative attendance programs. (a) A district that enrolls nonresident 
10.28 	pupils in programs under sections 123A.05 to 123A.08, 124D.03, 124D.08, and 124D.68, 
10.29 	must provide authorized transportation to the pupil within the attendance area for the 
10.30 	school that the pupil attends at the same level of service that is provided to resident pupils 
10.31 	within the attendance area. The resident district need not provide or pay for transportation 
10.32 	between the pupil's residence and the district's border.
10.33 	(b) A district may provide transportation to allow a student who attends a high-need 
10.34 	English language learner program and who resides within the transportation attendance 
11.1 	area of the program to continue in the program until the student completes the highest 
11.2 	grade level offered by the program.
11.3 	(c) A homeless nonresident pupil enrolled under section 124D.08, subdivision 2a, 
11.4 	must be provided transportation from the pupil's district of residence to and from the 
11.5 	school of enrollment.

11.6 	Sec. 13. Minnesota Statutes 2010, section 124D.08, is amended by adding a 
11.7 	subdivision to read:
11.8 		Subd. 2a.Continued enrollment for homeless students. Notwithstanding 
11.9 	subdivision 2, a pupil who has been enrolled in a district, who is identified as homeless, 
11.10 	and whose parent or legal guardian moves to another district, may continue to enroll in 
11.11 	the nonresident district without the approval of the board of the nonresident district. The 
11.12 	approval of the board of the pupil's resident district is not required.

11.13 	Sec. 14. Minnesota Statutes 2010, section 124D.09, is amended by adding a 
11.14 	subdivision to read:
11.15 		Subd. 5a.Authorization; career or technical education. A 10th, 11th, or 12th 
11.16 	grade pupil enrolled in a district or an American Indian-controlled tribal contract or grant 
11.17 	school eligible for aid under section 124D.83, except a foreign exchange pupil enrolled in 
11.18 	a district under a cultural exchange program, may enroll in a career or technical education 
11.19 	course offered by a Minnesota state college or university. A 10th grade pupil applying 
11.20 	for enrollment in a career or technical education course under this subdivision must 
11.21 	have received a passing score on the 8th grade Minnesota Comprehensive Assessment 
11.22 	in reading as a condition of enrollment. A secondary pupil may enroll in their first 
11.23 	postsecondary options enrollment course under this subdivision. A student who is refused 
11.24 	enrollment by a Minnesota state college or university under this subdivision, may apply to 
11.25 	an eligible institution offering a career or technical education course. The postsecondary 
11.26 	institution must give priority to its students according to subdivision 9. If a secondary 
11.27 	student receives a grade of "C" or better in the career or technical education course 
11.28 	taken under this subdivision, the postsecondary institution must allow the student to take 
11.29 	additional postsecondary courses for secondary credit at that institution, not to exceed the 
11.30 	limits in subdivision 8. A "career or technical course" is a course that is part of a career 
11.31 	and technical education program that provides individuals with coherent, rigorous content 
11.32 	aligned with academic standards and relevant technical knowledge and skills needed 
11.33 	to prepare for further education and careers in current and emerging professions and 
12.1 	provide technical skill proficiency, an industry recognized credential, and a certificate, 
12.2 	diploma, or an associate degree.

12.3 	Sec. 15. Minnesota Statutes 2011 Supplement, section 124D.09, subdivision 7, is 
12.4 	amended to read:
12.5 		Subd. 7.Dissemination of information; notification of intent to enroll. By March 
12.6 	1 of each year, a district must provide general information about the program to all pupils 
12.7 	in grades 8, 9, 10, and 11. To assist the district in planning, a pupil shall inform the district 
12.8 	by MarchMay 30 of each year of the pupil's intent to enroll in postsecondary courses 
12.9 	during the following school year. A pupil is not bound by notifying or not notifying the 
12.10 	district by MarchMay 30.

12.11 	Sec. 16. Minnesota Statutes 2010, section 124D.09, subdivision 9, is amended to read:
12.12 		Subd. 9.Enrollment priority. A postsecondary institution shall give priority to its 
12.13 	postsecondary students when enrolling 10th, 11th, and 12th grade pupils in its courses. 
12.14 	A postsecondary institution may provide information about its programs to a secondary 
12.15 	school or to a pupil or parent, but it may not advertise or otherwise recruit or solicit the 
12.16 	participation of secondary pupils to enroll in its programs on financial grounds and it may 
12.17 	advertise or otherwise recruit or solicit a secondary pupil to enroll in its programs on 
12.18 	educational and programmatic grounds only. An institution must not enroll secondary 
12.19 	pupils, for postsecondary enrollment options purposes, in remedial, developmental, or 
12.20 	other courses that are not college level. Once a pupil has been enrolled in a postsecondary 
12.21 	course under this section, the pupil shall not be displaced by another student.

12.22 	Sec. 17. Minnesota Statutes 2010, section 124D.09, subdivision 12, is amended to read:
12.23 		Subd. 12.Credits. A pupil may enroll in a course under this section for either 
12.24 	secondary credit or postsecondary credit. At the time a pupil enrolls in a course, the pupil 
12.25 	shall designate whether the course is for secondary or postsecondary credit. A pupil taking 
12.26 	several courses may designate some for secondary credit and some for postsecondary 
12.27 	credit. A pupil must not audit a course under this section.
12.28 	A district shall grant academic credit to a pupil enrolled in a course for secondary 
12.29 	credit if the pupil successfully completes the course. Seven quarter or four semester 
12.30 	college credits equal at least one full year of high school credit. Fewer college credits may 
12.31 	be prorated. A district must also grant academic credit to a pupil enrolled in a course for 
12.32 	postsecondary credit if secondary credit is requested by a pupil. If no comparable course is 
12.33 	offered by the district, the district must, as soon as possible, notify the commissioner, who 
13.1 	shall determine the number of credits that shall be granted to a pupil who successfully 
13.2 	completes a course. If a comparable course is offered by the district, the school board 
13.3 	shall grant a comparable number of credits to the pupil. If there is a dispute between the 
13.4 	district and the pupil regarding the number of credits granted for a particular course, the 
13.5 	pupil may appeal the board's decision to the commissioner. The commissioner's decision 
13.6 	regarding the number of credits shall be final.
13.7 	The secondary credits granted to a pupil must be counted toward the graduation 
13.8 	requirements and subject area requirements of the district. Evidence of successful 
13.9 	completion of each course and secondary credits granted must be included in the pupil's 
13.10 	secondary school record. A pupil shall provide the school with a copy of the pupil's grade 
13.11 	in each course taken for secondary credit under this section. Upon the request of a pupil, 
13.12 	the pupil's secondary school record must also include evidence of successful completion 
13.13 	and credits granted for a course taken for postsecondary credit. In either case, the record 
13.14 	must indicate that the credits were earned at a postsecondary institution.
13.15 	If a pupil enrolls in a postsecondary institution after leaving secondary school, the 
13.16 	postsecondary institution must award postsecondary credit for any course successfully 
13.17 	completed for secondary credit at that institution. Other postsecondary institutions may 
13.18 	award, after a pupil leaves secondary school, postsecondary credit for any courses 
13.19 	successfully completed under this section. An institution may not charge a pupil for 
13.20 	the award of credit.
13.21 	The Board of Trustees of the Minnesota State Colleges and Universities and 
13.22 	the Board of Regents of the University of Minnesota must, and private nonprofit and 
13.23 	proprietary postsecondary institutions should, award postsecondary credit for any 
13.24 	successfully completed courses in a program certified by the National Alliance of 
13.25 	Concurrent Enrollment Partnerships offered according to an agreement under subdivision 
13.26 	10.

13.27 	Sec. 18. Minnesota Statutes 2010, section 124D.09, subdivision 22, is amended to read:
13.28 		Subd. 22.Transportation. (a) A parent or guardian of a pupil enrolled in a course 
13.29 	for secondary credit may apply to the pupil's district of residence for reimbursement for 
13.30 	transporting the pupil between the secondary school in which the pupil is enrolled or the 
13.31 	pupil's home and the postsecondary institution that the pupil attends. The state shall 
13.32 	provide state aid to a district in an amount sufficient to reimburse the parent or guardian 
13.33 	for the necessary transportation costs when the family's or guardian's income is at or 
13.34 	below the poverty level, as determined by the federal government. The reimbursement 
13.35 	shall be the pupil's actual cost of transportation or 15 cents per mile traveled, whichever 
14.1 	is less. Reimbursement may not be paid for more than 250 miles per week. However, 
14.2 	if the nearest postsecondary institution is more than 25 miles from the pupil's resident 
14.3 	secondary school, the weekly reimbursement may not exceed the reimbursement rate per 
14.4 	mile times the actual distance between the secondary school or the pupil's home and the 
14.5 	nearest postsecondary institution times ten. The state must pay aid to the district according 
14.6 	to this subdivision.
14.7 	(b) A parent or guardian of an alternative pupil enrolled in a course for secondary 
14.8 	credit may apply to the pupil's postsecondary institution for reimbursement for 
14.9 	transporting the pupil between the secondary school in which the pupil is enrolled or the 
14.10 	pupil's home and the postsecondary institution in an amount sufficient to reimburse the 
14.11 	parent or guardian for the necessary transportation costs when the family's or guardian's 
14.12 	income is at or below the poverty level, as determined by the federal government. The 
14.13 	amount of the reimbursement shall be determined as in paragraph (a). The state must pay 
14.14 	aid to the postsecondary institution according to this subdivision.

14.15 	Sec. 19. Minnesota Statutes 2010, section 124D.09, subdivision 24, is amended to read:
14.16 		Subd. 24.Limit; state obligation. The provisions of subdivisions 13, 19, and 
14.17 	22, and 23 shall not apply for any postsecondary courses in which a pupil is enrolled in 
14.18 	addition to being enrolled full time in that pupil's district or for any postsecondary course 
14.19 	in which a pupil is enrolled for postsecondary credit. The pupil is enrolled full time if 
14.20 	the pupil attends credit-bearing classes in the high school or high school program for 
14.21 	all of the available hours of instruction.

14.22 	EFFECTIVE DATE. This section is effective for the 2012-2013 school year and 
14.23 	later.

14.24 	Sec. 20. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 8, is 
14.25 	amended to read:
14.26 		Subd. 8.Federal, state, and local requirements. (a) A charter school shall meet all 
14.27 	federal, state, and local health and safety requirements applicable to school districts.
14.28 	(b) A school must comply with statewide accountability requirements governing 
14.29 	standards and assessments in chapter 120B.
14.30 	(c) A school authorized by a school board may be located in any district, unless the 
14.31 	school board of the district of the proposed location disapproves by written resolution.
14.32 	(d) A charter school must be nonsectarian in its programs, admission policies, 
14.33 	employment practices, and all other operations. An authorizer may not authorize a charter 
14.34 	school or program that is affiliated with a nonpublic sectarian school or a religious 
15.1 	institution. A charter school student must be released for religious instruction, consistent 
15.2 	with section 120A.22, subdivision 12, clause (3).
15.3 	(e) Charter schools must not be used as a method of providing education or 
15.4 	generating revenue for students who are being home-schooled. This paragraph does not 
15.5 	apply to shared time aid, under section 126C.19.
15.6 	(f) The primary focus of a charter school must be to provide a comprehensive 
15.7 	program of instruction for at least one grade or age group from five through 18 years 
15.8 	of age. Instruction may be provided to people younger than five years and older than 
15.9 	18 years of age.
15.10 	(g) A charter school may not charge tuition.
15.11 	(h) A charter school is subject to and must comply with chapter 363A and section 
15.12 	121A.04.
15.13 	(i) A charter school is subject to and must comply with the Pupil Fair Dismissal 
15.14 	Act, sections 121A.40 to 121A.56, and the Minnesota Public School Fee Law, sections 
15.15 	123B.34 to 123B.39.
15.16 	(j) A charter school is subject to the same financial audits, audit procedures, and 
15.17 	audit requirements as a district. Audits must be conducted in compliance with generally 
15.18 	accepted governmental auditing standards, the federal Single Audit Act, if applicable, 
15.19 	and section 6.65. A charter school is subject to and must comply with sections 15.054; 
15.20 	118A.01; 118A.02; 118A.03; 118A.04; 118A.05; 118A.06; 471.38; 471.391; 471.392; and 
15.21 	471.425. The audit must comply with the requirements of sections 123B.75 to 123B.83, 
15.22 	except to the extent deviations are necessary because of the program at the school. 
15.23 	Deviations must be approved by the commissioner and authorizer. The Department of 
15.24 	Education, state auditor, legislative auditor, or authorizer may conduct financial, program, 
15.25 	or compliance audits. A charter school determined to be in statutory operating debt under 
15.26 	sections 123B.81 to 123B.83 must submit a plan under section 123B.81, subdivision 4.
15.27 	(k) A charter school is a district for the purposes of tort liability under chapter 466.
15.28 	(l) A charter school must comply with chapters 13 and 13D; and sections 120A.22, 
15.29 	subdivision 7; 121A.75; and 260B.171, subdivisions 3 and 5.
15.30 	(m) A charter school is subject to the Pledge of Allegiance requirement under 
15.31 	section 121A.11, subdivision 3.
15.32 	(n) A charter school offering online courses or programs must comply with section 
15.33 	124D.095.
15.34 	(o) A charter school and charter school board of directors are subject to chapter 181.
16.1 	(p) A charter school must comply with section 120A.22, subdivision 7, governing 
16.2 	the transfer of students' educational records and sections 138.163 and 138.17 governing 
16.3 	the management of local records.
16.4 	(q) A charter school that provides early childhood health and developmental 
16.5 	screening must comply with sections 121A.16 to 121A.19.
16.6 	(r) A charter school that provides school-sponsored youth athletic activities must 
16.7 	comply with section 121A.38.

16.8 	Sec. 21. Minnesota Statutes 2011 Supplement, section 124D.4531, subdivision 1, 
16.9 	is amended to read:
16.10 		Subdivision 1.Career and technical levy. (a) A district with a career and technical 
16.11 	program approved under this section for the fiscal year in which the levy is certified 
16.12 	may levy an amount equal to the greater of:
16.13 	(1) $80 times the district's average daily membership in grades 9 through 12 for the 
16.14 	fiscal year in which the levy is certified; or
16.15 	(2) 35 percent of approved expenditures in the fiscal year in which the levy is 
16.16 	certified for the following:
16.17 	(i) (1)  salaries paid to essential, licensed personnel providing direct instructional 
16.18 	services to students in that fiscal year, including extended contracts, for services rendered 
16.19 	in the district's approved career and technical education programs;
16.20 	(ii) (2)  contracted services provided by a public or private agency other than a 
16.21 	Minnesota school district or cooperative center under subdivision 7;
16.22 	(iii) (3)  necessary travel between instructional sites by licensed career and technical 
16.23 	education personnel;
16.24 	(iv) (4)  necessary travel by licensed career and technical education personnel for 
16.25 	vocational student organization activities held within the state for instructional purposes;
16.26 	(v) (5)  curriculum development activities that are part of a five-year plan for 
16.27 	improvement based on program assessment;
16.28 	(vi) (6)  necessary travel by licensed career and technical education personnel for 
16.29 	noncollegiate credit-bearing professional development; and
16.30 	(vii) (7)  specialized vocational instructional supplies.
16.31 	(b) Up to ten percent of a district's career and technical levy may be spent on 
16.32 	equipment purchases. Districts using the career and technical levy for equipment 
16.33 	purchases must report to the department on the improved learning opportunities for 
16.34 	students that result from the investment in equipment.
17.1 	(c) The district must recognize the full amount of this levy as revenue for the fiscal 
17.2 	year in which it is certified.
17.3 	(d) The amount of the levy certified under this subdivision may not exceed 
17.4 	$17,850,000 for taxes payable in 2012, $15,520,000 for taxes payable in 2013, and 
17.5 	$15,545,000 $15,393,000 for taxes payable in 2014.
17.6 	(e) If the estimated levy exceeds the amount in paragraph (d), the commissioner 
17.7 	must reduce the percentage in paragraph (a), clause (2), until the estimated levy no longer 
17.8 	exceeds the limit in paragraph (d).

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

17.10 	Sec. 22. Minnesota Statutes 2010, section 124D.4531, subdivision 3, is amended to 
17.11 	read:
17.12 		Subd. 3.Levy guarantee. Notwithstanding subdivision 1, paragraph (a), the career 
17.13 	and technical education levy for a district is not less than the lesser of:
17.14 	(1) the district's career and technical education levy authority for the previous 
17.15 	fiscal year; or
17.16 	(2) 100 percent of the approved expenditures for career and technical programs 
17.17 	included in subdivision 1, paragraph (b), for the fiscal year in which the levy is certified.

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

17.19 	Sec. 23. Minnesota Statutes 2010, section 124D.4531, is amended by adding a 
17.20 	subdivision to read:
17.21 		Subd. 3a.Levy, pay 2012-2014. Notwithstanding subdivisions 1 and 3, for taxes 
17.22 	payable in 2012 to 2014 only, the department must calculate the career and technical levy 
17.23 	authority for each district according to Minnesota Statutes 2010, section 124D.4531, and 
17.24 	adjust the levy authority for each district proportionately to meet the statewide levy target 
17.25 	under subdivision 1, paragraph (d). For purposes of calculating the levy guarantee under 
17.26 	subdivision 3, the career and technical education levy authority for the previous fiscal year 
17.27 	is the levy authority according to Minnesota Statutes 2010, section 124D.4531, before 
17.28 	adjustments to meet the statewide levy target.

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

17.30 	Sec. 24. Minnesota Statutes 2010, section 126C.10, subdivision 28, is amended to read:
17.31 		Subd. 28.Equity region. For the purposes of computing equity revenue under 
17.32 	subdivision 24, a district whosewith its administrative offices on July 1, 1999, is office
18.1 	located in Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington County on 
18.2 	January 1, 2012, is part of the metro equity region. Districts whose administrative offices 
18.3 	on July 1, 1999, are not located in Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or 
18.4 	Washington County All other districts are part of the rural equity region.

18.5 	EFFECTIVE DATE. This section is effective for revenue for fiscal years 2013 
18.6 	and later.

18.7 	Sec. 25. Minnesota Statutes 2011 Supplement, section 126C.126, is amended to read:
18.8 	126C.126 REALLOCATING GENERAL EDUCATION REVENUE FOR 
18.9 	ALL-DAY KINDERGARTEN AND PREKINDERGARTEN.
18.10 	(a) In order to provide additional revenue for an optional all-day kindergarten 
18.11 	program, a district may reallocate general education revenue attributable to 12th grade 
18.12 	students who have graduated early under section 120B.07 and who do not participate in 
18.13 	the early graduation achievement scholarship program under section 120B.08 or the early 
18.14 	graduation military service award program under section 120B.09.
18.15 	(b) A school district may spend general education revenue on extended time 
18.16 	kindergarten and prekindergarten programs.

18.17 	Sec. 26. Minnesota Statutes 2010, section 126C.19, subdivision 2, is amended to read:
18.18 		Subd. 2.Exception. Notwithstanding subdivision 1, the resident district of a shared 
18.19 	time pupil attending shared time classes in another district may or a charter school must 
18.20 	 grant the district or charter school of attendance, upon its request, permission to claim 
18.21 	the pupil as a resident for state aid purposes. In this case, state aid must be paid to the 
18.22 	district or charter school of attendance and, upon agreement. If the resident district agrees, 
18.23 	the district of attendance may bill the resident district for any unreimbursed education 
18.24 	costs, but not for unreimbursed transportation costs. The agreement may, however, 
18.25 	provideresident district and the district or charter school of attendance may negotiate an 
18.26 	agreement for the resident district to pay the cost of any of the particular transportation 
18.27 	categories specified in section 123B.92, subdivision 1, and in this case, aid for those 
18.28 	categories must be paid to the district of residence rather than to the district of attendance.

18.29 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 
18.30 	and later.

18.31 	Sec. 27. Minnesota Statutes 2011 Supplement, section 127A.45, subdivision 6a, 
18.32 	is amended to read:
19.1 		Subd. 6a.Cash flow adjustment. The board of directors of any charter school 
19.2 	serving fewer than 150 200 students where the percent of students eligible for special 
19.3 	education services equals at least 90 percent of the charter school's total enrollment may 
19.4 	request that the commissioner of education accelerate the school's cash flow under this 
19.5 	section. The commissioner must approve a properly submitted request within 30 days of 
19.6 	its receipt. The commissioner must accelerate the school's regular special education aid 
19.7 	payments according to the schedule in the school's request and modify the payments to the 
19.8 	school under subdivision 3 accordingly. A school must not receive current payments of 
19.9 	regular special education aid exceeding 90 percent of its estimated aid entitlement for the 
19.10 	fiscal year. The commissioner must delay the special education aid payments to all other 
19.11 	school districts and charter schools in proportion to each district or charter school's total 
19.12 	share of regular special education aid such that the overall aid payment savings from the 
19.13 	aid payment shift remains unchanged for any fiscal year.

19.14 	Sec. 28. Minnesota Statutes 2010, section 127A.47, subdivision 1, is amended to read:
19.15 		Subdivision 1.Aid to serving district. (a) Unless otherwise specifically provided 
19.16 	by law, general education aid must be paid according to this subdivision.
19.17 	(b) Except as provided in paragraph (c), general education aid must be paid to the 
19.18 	serving district.
19.19 	(c) If the resident district pays tuition for a pupil under section 123A.18, 123A.22, 
19.20 	123A.30, 123A.32, 123A.44, 123A.488, 123B.88, subdivision 4, 124D.04, 124D.05, 
19.21 	125A.03 to 125A.24, 125A.51, or 125A.65, general education aid, excluding basic skills 
19.22 	revenue under section 126C.10, subdivision 4, must be paid to the resident district. For 
19.23 	a student enrolled under section 124D.08, subdivision 2a, that is enrolled in other than 
19.24 	an independent or special school district or charter school, the general education revenue 
19.25 	shall be paid to the resident district.

19.26 	Sec. 29. Minnesota Statutes 2010, section 135A.101, subdivision 1, is amended to read:
19.27 		Subdivision 1.Requirements for participation. To participate in the postsecondary 
19.28 	enrollment options program, a college or university must abide by the provisions in this 
19.29 	section. The institution may provide information about its programs to a secondary school 
19.30 	or to a pupil or parent, but may not recruit or solicit participation on financial grounds and 
19.31 	may recruit or solicit participation on educational and programmatic grounds.

19.32 	Sec. 30. Minnesota Statutes 2010, section 471.975, is amended to read:
19.33 	471.975 MAY PAY DIFFERENTIAL OF RESERVE ON ACTIVE DUTY.
20.1 	(a) Except as provided in paragraph (b), a statutory or home rule charter city, county, 
20.2 	town, or other political subdivision may pay to each eligible member of the National 
20.3 	Guard or other reserve component of the armed forces of the United States an amount 
20.4 	equal to the difference between the member's base active duty military salary and the 
20.5 	salary the member would be paid as an active political subdivision employee, including 
20.6 	any adjustments the member would have received if not on leave of absence. This 
20.7 	payment may be made only to a person whose base active duty military salary is less than 
20.8 	the salary the person would be paid as an active political subdivision employee. Back pay 
20.9 	authorized by this section may be paid in a lump sum. Payment under this section must 
20.10 	not extend beyond four years from the date the employee reported for active service, plus 
20.11 	any additional time the employee may be legally required to serve.
20.12 	(b) Subject to the limits under paragraph (g), Each school district shall pay to each 
20.13 	eligible member of the National Guard or other reserve component of the armed forces 
20.14 	of the United States an amount equal to the difference between the member's base active 
20.15 	duty military salary and the salary the member would be paid as an active school district 
20.16 	employee, including any adjustments the member would have received if not on leave 
20.17 	of absence. The pay differential must be based on a comparison between the member's 
20.18 	daily base rate of active duty pay, calculated by dividing the member's base military 
20.19 	monthly salary by the number of paid days in the month, and the member's daily rate of 
20.20 	pay for the member's school district salary, calculated by dividing the member's total 
20.21 	school district salary by the number of contract days. The member's salary as a school 
20.22 	district employee must include the member's basic salary and any additional salary the 
20.23 	member earns from the school district for cocurricular and extracurricular activities. The 
20.24 	differential payment under this paragraph must be the difference between the daily base 
20.25 	rates of military pay times the number of school district contract days the member misses 
20.26 	because of military active duty. This payment may be made only to a person whose daily 
20.27 	base rate of active duty pay is less than the person's daily rate of pay as an active school 
20.28 	district employee. Payments may be made at the intervals at which the member received 
20.29 	pay as a school district employee. Payment under this section must not extend beyond 
20.30 	four years from the date the employee reported for active service, plus any additional time 
20.31 	the employee may be legally required to serve.
20.32 	(c) An eligible member of the reserve components of the armed forces of the United 
20.33 	States is a reservist or National Guard member who was an employee of a political 
20.34 	subdivision at the time the member reported for active service on or after May 29, 2003, 
20.35 	or who is on active service on May 29, 2003.
21.1 	(d) Except as provided in paragraph (e) and elsewhere in Minnesota Statutes, a 
21.2 	statutory or home rule charter city, county, town, or other political subdivision has total 
21.3 	discretion regarding employee benefit continuation for a member who reports for active 
21.4 	service and the terms and conditions of any benefit.
21.5 	(e) A school district must continue the employee's enrollment in health and dental 
21.6 	coverage, and the employer contribution toward that coverage, until the employee is 
21.7 	covered by health and dental coverage provided by the armed forces. If the employee had 
21.8 	elected dependent coverage for health or dental coverage as of the time that the employee 
21.9 	reported for active service, a school district must offer the employee the option to continue 
21.10 	the dependent coverage at the employee's own expense. A school district must permit 
21.11 	the employee to continue participating in any pretax account in which the employee 
21.12 	participated when the employee reported for active service, to the extent of employee pay 
21.13 	available for that purpose.
21.14 	(f) For purposes of this section, "active service" has the meaning given in section 
21.15 	190.05, subdivision 5, but excludes service performed exclusively for purposes of:
21.16 	(1) basic combat training, advanced individual training, annual training, and periodic 
21.17 	inactive duty training;
21.18 	(2) special training periodically made available to reserve members; and
21.19 	(3) service performed in accordance with section 190.08, subdivision 3.
21.20 	(g) A school district making payments under paragraph (b) shall place a sum equal 
21.21 	to any difference between the amount of salary that would have been paid to the employee 
21.22 	who is receiving the payments and the amount of salary being paid to substitutes for 
21.23 	that employee into a special fund that must be used to pay or partially pay the deployed 
21.24 	employee's payments under paragraph (b). A school district is required to pay only this 
21.25 	amount to the deployed school district employee. When an employee of a school district 
21.26 	who as a member of the National Guard or any other reserve unit of the United States 
21.27 	armed forces, reports for active service as defined in section 190.05, subdivision 5, the 
21.28 	district must place into a special service members' aggregate salary savings account the 
21.29 	amount of salary the district would have paid to the employee during the employee's leave 
21.30 	for military service. The district must use the combined proceeds in the account only to 
21.31 	fully pay the salary differentials of all eligible deployed employees in the district, as 
21.32 	determined under paragraph (b). Funds remaining in the account at the end of the fiscal 
21.33 	year after all obligations to employees under this statute have been satisfied may be used 
21.34 	to pay for substitutes for the deployed employees, and then for any other purpose.

21.35 	EFFECTIVE DATE. This section is effective July 1, 2012, for school district 
21.36 	employees serving in active military duty on or after that date.

22.1 	Sec. 31. Laws 2011, First Special Session chapter 11, article 5, section 11, is amended 
22.2 	to read:
22.3 	Sec. 11. FUND TRANSFER; FISCAL YEARS 2012 AND 2013 THROUGH 
22.4 	2015 ONLY.
 22.5 	(a) Notwithstanding Minnesota Statutes, section 123B.80, subdivision 3, for fiscal 
22.6 	years 2012 and 2013 through 2015 only, the commissioner must approve a request for a 
22.7 	fund transfer if the transfer does not increase state aid obligations to the district or result in 
22.8 	additional property tax authority for the district. This section does not permit transfers 
22.9 	from the community service fund or the food service fund.
22.10 	(b) A school board may approve a fund transfer under paragraph (a) only after 
22.11 	adopting a resolution stating the fund transfer will not diminish instructional opportunities 
22.12 	for students.

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

22.14 	Sec. 32. APPROPRIATION.
 22.15 		Subdivision 1.Department of Education. The sums shown are added to or, if 
22.16 	shown in parentheses, subtracted from, the appropriations in Laws 2011, First Special 
22.17 	Session chapter 11, or any appropriation that replaces those appropriations, to the 
22.18 	Department of Education for the purposes specified. The appropriations are from the 
22.19 	general fund, or another named fund, and are available for the fiscal years indicated for 
22.20 	each purpose. 
22.21 		Subd. 2.General education aid. For general education aid under Minnesota 
22.22 	Statutes, section 126C.13, subdivision 4:

22.23		$
	(311,000)
	.....
	2012
	
22.24		$
	(678,000)
	.....
	2013

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

22.26 	Sec. 33. REVISOR'S INSTRUCTION.
 22.27 	In Minnesota Statutes and Rules, the revisor of statutes shall substitute the terms 
22.28 	"English learner," "EL," or similar term for "limited English proficient," "English language 
22.29 	learner," "LEP," "ELL," or similar term when referring to early childhood through grade 12 
22.30 	education. The revisor shall also make grammatical changes related to the changes in term.

22.31 	Sec. 34.  REPEALER.
 23.1 	(a) Minnesota Statutes 2010, section 124D.09, subdivision 23, is repealed effective 
23.2 	for the 2012-2013 school year and later.
23.3 	(b) Minnesota Statutes 2010, section 127A.47, subdivision 2, is repealed.

23.4 	ARTICLE 2
23.5 	EDUCATION EXCELLENCE

23.6 	Section 1. Minnesota Statutes 2010, section 120A.22, subdivision 2, is amended to 
23.7 	read:
23.8 		Subd. 2.Applicability. This section and sections 120A.24; 120A.26; 120A.28;
23.9 	120A.30; 120A.32; and 120A.34 apply only to a child required to receive instruction 
23.10 	according to subdivision 5 and to instruction that is intended to fulfill that requirement.

23.11 	Sec. 2. Minnesota Statutes 2011 Supplement, section 120B.12, subdivision 2, is 
23.12 	amended to read:
23.13 		Subd. 2.Identification; report. For the 2011-2012 school year and later, each 
23.14 	school district shall identify before the end of kindergarten, grade 1, and grade 2 students 
23.15 	who are not reading at grade level before the end of the current school year. Reading 
23.16 	assessments must identify and evaluate students' areas of academic need related to 
23.17 	literacy. The district must use a locally adopted assessment and annually report summary 
23.18 	assessment results to the commissioner by JuneJuly 1.

23.19 	Sec. 3. Minnesota Statutes 2010, section 120B.13, subdivision 1, is amended to read:
23.20 		Subdivision 1.Program structure; training programs for teachers. (a) The 
23.21 	advanced placement and international baccalaureate programs are well-established 
23.22 	academic programs for mature, academically directed high school students. These 
23.23 	programs, in addition to providing academic rigor, offer sound curricular design, 
23.24 	accountability, comprehensive external assessment, feedback to students and teachers, 
23.25 	and the opportunity for high school students to compete academically on a global level. 
23.26 	Advanced placement and international baccalaureate programs allow students to leave 
23.27 	high school with the academic skills and self-confidence to succeed in college and 
23.28 	beyond. The advanced placement and international baccalaureate programs help provide 
23.29 	Minnesota students with world-class educational opportunity.
23.30 	(b) Critical to schools' educational success is ongoing advanced 
23.31 	placement/international baccalaureate-approved teacher training. A secondary teacher 
23.32 	assigned by a district to teach an advanced placement or international baccalaureate course 
23.33 	or other interested educator may participate in a training program offered by The College 
24.1 	Board or International Baccalaureate North America, Inc. The state may pay a portion 
24.2 	of the tuition, room, board, and out-of-state travel costs a teacher or other interested 
24.3 	educator incurs in participating in a training program. The commissioner shall determine 
24.4 	application procedures and deadlines, select teachers and other interested educators to 
24.5 	participate in the training program, and determine the payment process and amount of the 
24.6 	subsidy. The procedures determined by the commissioner shall, to the extent possible, 
24.7 	ensure that advanced placement and international baccalaureate courses become available 
24.8 	in all parts of the state and that a variety of course offerings are available in school districts. 
24.9 	This subdivision does not prevent teacher or other interested educator participation in 
24.10 	training programs offered by The College Board or International Baccalaureate North 
24.11 	America, Inc., when tuition is paid by a source other than the state.

24.12 	Sec. 4. Minnesota Statutes 2011 Supplement, section 120B.30, subdivision 1, is 
24.13 	amended to read:
24.14 		Subdivision 1.Statewide testing.  (a) The commissioner, with advice from experts 
24.15 	with appropriate technical qualifications and experience and stakeholders, consistent with 
24.16 	subdivision 1a, shall include in the comprehensive assessment system, for each grade 
24.17 	level to be tested, state-constructed tests developed from and aligned with the state's 
24.18 	required academic standards under section 120B.021, include multiple choice questions, 
24.19 	and be administered annually to all students in grades 3 through 8. State-developed high 
24.20 	school tests aligned with the state's required academic standards under section 120B.021 
24.21 	and administered to all high school students in a subject other than writing must include 
24.22 	multiple choice questions. The commissioner shall establish one or more months during 
24.23 	which schools shall administer the tests to students each school year. For students enrolled 
24.24 	in grade 8 before the 2005-2006 school year, Minnesota basic skills tests in reading, 
24.25 	mathematics, and writing shall fulfill students' basic skills testing requirements for a 
24.26 	passing state notation. The passing scores of basic skills tests in reading and mathematics 
24.27 	are the equivalent of 75 percent correct for students entering grade 9 based on the 
24.28 	first uniform test administered in February 1998. Students who have not successfully 
24.29 	passed a Minnesota basic skills test by the end of the 2011-2012 school year must pass 
24.30 	the graduation-required assessments for diploma under paragraph (c), except that for 
24.31 	the 2012-2013 and 2013-2014 school years only, these students may satisfy the state's 
24.32 	graduation test requirement for math by complying with paragraph (d), clauses (1) and (3).
24.33 	(b) The state assessment system must be aligned to the most recent revision of 
24.34 	academic standards as described in section 120B.023 in the following manner:
24.35 	(1) mathematics;
25.1 	(i) grades 3 through 8 beginning in the 2010-2011 school year; and
25.2 	(ii) high school level beginning in the 2013-2014 school year;
25.3 	(2) science; grades 5 and 8 and at the high school level beginning in the 2011-2012 
25.4 	school year; and
25.5 	(3) language arts and reading; grades 3 through 8 and high school level beginning in 
25.6 	the 2012-2013 school year.
25.7 	(c) For students enrolled in grade 8 in the 2005-2006 school year and later, only the 
25.8 	following options shall fulfill students' state graduation test requirements:
25.9 	(1) for reading and mathematics:
25.10 	(i) obtaining an achievement level equivalent to or greater than proficient as 
25.11 	determined through a standard setting process on the Minnesota comprehensive 
25.12 	assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing 
25.13 	score as determined through a standard setting process on the graduation-required 
25.14 	assessment for diploma in grade 10 for reading and grade 11 for mathematics or 
25.15 	subsequent retests;
25.16 	(ii) achieving a passing score as determined through a standard setting process on the 
25.17 	state-identified language proficiency test in reading and the mathematics test for English 
25.18 	language learners or the graduation-required assessment for diploma equivalent of those 
25.19 	assessments for students designated as English language learners;
25.20 	(iii) achieving an individual passing score on the graduation-required assessment for 
25.21 	diploma as determined by appropriate state guidelines for students with an individualized 
25.22 	education program or 504 plan;
25.23 	(iv) obtaining achievement level equivalent to or greater than proficient as 
25.24 	determined through a standard setting process on the state-identified alternate assessment 
25.25 	or assessments in grade 10 for reading and grade 11 for mathematics for students with 
25.26 	an individualized education program; or
25.27 	(v) achieving an individual passing score on the state-identified alternate assessment 
25.28 	or assessments as determined by appropriate state guidelines for students with an 
25.29 	individualized education program; and
25.30 	(2) for writing:
25.31 	(i) achieving a passing score on the graduation-required assessment for diploma;
25.32 	(ii) achieving a passing score as determined through a standard setting process on 
25.33 	the state-identified language proficiency test in writing for students designated as English 
25.34 	language learners;
26.1 	(iii) achieving an individual passing score on the graduation-required assessment for 
26.2 	diploma as determined by appropriate state guidelines for students with an individualized 
26.3 	education program or 504 plan; or
26.4 	(iv) achieving an individual passing score on the state-identified alternate assessment 
26.5 	or assessments as determined by appropriate state guidelines for students with an 
26.6 	individualized education program.
26.7 	(d) Students enrolled in grade 8 in any school year from the 2005-2006 school 
26.8 	year to the 2009-2010 school year who do not pass the mathematics graduation-required 
26.9 	assessment for diploma under paragraph (c) are eligible to receive a high school diploma 
26.10 	if they:
26.11 	(1) complete with a passing score or grade all state and local coursework and credits 
26.12 	required for graduation by the school board granting the students their diploma;
26.13 	(2) participate in district-prescribed academic remediation in mathematics; and
26.14 	(3) fully participate in at least two retests of the mathematics GRAD test or until 
26.15 	they pass the mathematics GRAD test, whichever comes first. A school, district, or charter 
26.16 	school must place on the high school transcript a student's current pass status for each 
26.17 	subject that has a required graduation assessment.
26.18 	In addition, the school board granting the students their diplomas may formally 
26.19 	decide to include a notation of high achievement on the high school diplomas of those 
26.20 	graduating seniors who, according to established school board criteria, demonstrate 
26.21 	exemplary academic achievement during high school.
26.22 	(e) The 3rd through 8th grade and high school test results shall be available to 
26.23 	districts for diagnostic purposes affecting student learning and district instruction and 
26.24 	curriculum, and for establishing educational accountability. The commissioner must 
26.25 	disseminate to the public the high school test results upon receiving those results.
26.26 	(f) The 3rd through 8th grade and high school tests must be aligned with state 
26.27 	academic standards. The commissioner shall determine the testing process and the order 
26.28 	of administration. The statewide results shall be aggregated at the site and district level, 
26.29 	consistent with subdivision 1a.
26.30 	(g) In addition to the testing and reporting requirements under this section, the 
26.31 	commissioner shall include the following components in the statewide public reporting 
26.32 	system:
26.33 	(1) uniform statewide testing of all students in grades 3 through 8 and at the high 
26.34 	school level that provides appropriate, technically sound accommodations or alternate 
26.35 	assessments;
27.1 	(2) educational indicators that can be aggregated and compared across school 
27.2 	districts and across time on a statewide basis, including average daily attendance, high 
27.3 	school graduation rates, and high school drop-out rates by age and grade level;
27.4 	(3) state results on the American College Test; and
27.5 	(4) state results from participation in the National Assessment of Educational 
27.6 	Progress so that the state can benchmark its performance against the nation and other 
27.7 	states, and, where possible, against other countries, and contribute to the national effort 
27.8 	to monitor achievement.

27.9 	Sec. 5. Minnesota Statutes 2011 Supplement, section 122A.40, subdivision 5, is 
27.10 	amended to read:
27.11 		Subd. 5.Probationary period. (a) The first three consecutive years of a teacher's 
27.12 	first teaching experience in Minnesota in a single district is deemed to be a probationary 
27.13 	period of employment, and, the probationary period in each district in which the teacher is 
27.14 	thereafter employed shall be one year. The school board must adopt a plan for written 
27.15 	evaluation of teachers during the probationary period that is consistent with subdivision 
27.16 	8. Evaluation must occur at least three times periodically throughout each school year 
27.17 	for a teacher performing services during that school year; the first evaluation must occur 
27.18 	within the first 90 days of teaching service. Days devoted to parent-teacher conferences, 
27.19 	teachers' workshops, and other staff development opportunities and days on which a 
27.20 	teacher is absent from school must not be included in determining the number of school 
27.21 	days on which a teacher performs services. Except as otherwise provided in paragraph (b), 
27.22 	during the probationary period any annual contract with any teacher may or may not be 
27.23 	renewed as the school board shall see fit. However, the board must give any such teacher 
27.24 	whose contract it declines to renew for the following school year written notice to that 
27.25 	effect before June July 1. If the teacher requests reasons for any nonrenewal of a teaching 
27.26 	contract, the board must give the teacher its reason in writing, including a statement 
27.27 	that appropriate supervision was furnished describing the nature and the extent of such 
27.28 	supervision furnished the teacher during the employment by the board, within ten days 
27.29 	after receiving such request. The school board may, after a hearing held upon due notice, 
27.30 	discharge a teacher during the probationary period for cause, effective immediately, 
27.31 	under section 122A.44.
27.32 	(b) A board must discharge a probationary teacher, effective immediately, upon 
27.33 	receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the teacher's 
27.34 	license has been revoked due to a conviction for child abuse or sexual abuse.
28.1 	(c) A probationary teacher whose first three years of consecutive employment are 
28.2 	interrupted for active military service and who promptly resumes teaching consistent with 
28.3 	federal reemployment timelines for uniformed service personnel under United States 
28.4 	Code, title 38, section 4312(e), is considered to have a consecutive teaching experience 
28.5 	for purposes of paragraph (a).
28.6 	(d) A probationary teacher must complete at least 120 days of teaching service each 
28.7 	year during the probationary period. Days devoted to parent-teacher conferences, teachers' 
28.8 	workshops, and other staff development opportunities and days on which a teacher is 
28.9 	absent from school do not count as days of teaching service under this paragraph.

28.10 	EFFECTIVE DATE. This section is effective for the 2012-2013 school year and 
28.11 	later.

28.12 	Sec. 6. Minnesota Statutes 2010, section 122A.40, subdivision 13, is amended to read:
28.13 		Subd. 13.Immediate discharge. (a) Except as otherwise provided in paragraph 
28.14 	(b), a board may discharge a continuing-contract teacher, effective immediately, upon any 
28.15 	of the following grounds:
28.16 	(1) immoral conduct, insubordination, or conviction of a felony;
28.17 	(2) conduct unbecoming a teacher which requires the immediate removal of the 
28.18 	teacher from classroom or other duties;
28.19 	(3) failure without justifiable cause to teach without first securing the written release 
28.20 	of the school board;
28.21 	(4) gross inefficiency which the teacher has failed to correct after reasonable written 
28.22 	notice;
28.23 	(5) willful neglect of duty; or
28.24 	(6) continuing physical or mental disability subsequent to a 12 months leave of 
28.25 	absence and inability to qualify for reinstatement in accordance with subdivision 12.
28.26 	For purposes of this paragraph, conduct unbecoming a teacher includes an unfair 
28.27 	discriminatory practice described in section 363A.13.
28.28 	Prior to discharging a teacher under this paragraph, the board must notify the 
28.29 	teacher in writing and state its ground for the proposed discharge in reasonable detail. 
28.30 	Within ten days after receipt of this notification the teacher may make a written request 
28.31 	for a hearing before the board and it shall be granted before final action is taken. The 
28.32 	board may, however, suspend a teacher with pay pending the conclusion of such the
28.33 	hearing and determination of the issues raised in the hearing after charges have been 
28.34 	filed which constitute ground for discharge. If a teacher has been charged with a felony 
28.35 	and the underlying conduct that is the subject of the felony charge is a ground for a 
29.1 	proposed immediate discharge, the suspension pending the conclusion of the hearing and 
29.2 	determination of the issues may be without pay. If a hearing under this paragraph is held, 
29.3 	the board must reimburse the teacher for any salary or compensation withheld if the 
29.4 	final decision of the board or the arbitrator does not result in a penalty to or suspension, 
29.5 	termination, or discharge of the teacher.
29.6 	(b) A board must discharge a continuing-contract teacher, effective immediately, 
29.7 	upon receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the 
29.8 	teacher's license has been revoked due to a conviction for child abuse or sexual abuse.

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

29.10 	Sec. 7. Minnesota Statutes 2010, section 123B.04, is amended to read:
29.11 	123B.04 SITE DECISION-MAKING; INDIVIDUALIZED LEARNING
29.12 	AGREEMENT; OTHER AGREEMENTS.
29.13 		Subdivision 1.Definition. "Education site" means a separate facility. A program 
29.14 	within a facility or within a district is an education site if the school board recognizes it 
29.15 	as a site.
29.16 		Subd. 1a.Individualized learning and instruction; improved student 
29.17 	achievement. To promote individualized learning and instruction and improve student 
29.18 	achievement under subdivisions 4 and 4a, a participating school board under this section 
29.19 	may consider how to:
29.20 	(1) assist a school site to adapt instruction to the needs and aptitudes of individual 
29.21 	students, and establish goals and standards for individual students in addition to the state 
29.22 	academic standards applicable to all students;
29.23 	(2) coordinate the pace of instruction and learning with the needs and aptitudes of 
29.24 	individual students at a school site;
29.25 	(3) provide useful data and assist with research in developing and improving 
29.26 	innovative, cost-effective, research-based individualized learning, instruction, and 
29.27 	assessment under this section and section 124D.10;
29.28 	(4) demonstrate and help evaluate instructional alternatives to age-based grade 
29.29 	progression;
29.30 	(5) more effectively motivate students and teachers; and
29.31 	(6) expand use of learning technology to support individualized learning, instruction, 
29.32 	assessment, and achievement.
30.1 		Subd. 2.Agreement. (a) The school board and a school site may enter into an 
30.2 	agreement under this section solely to develop and implement an individualized learning 
30.3 	and achievement contract under subdivision 4.
30.4 	(a)(b) Upon the request of 60 percent of the licensed employees of a site or a school 
30.5 	site decision-making team, the school board shall enter into discussions to reach an 
30.6 	agreement concerning the governance, management, or control of the school. A school 
30.7 	site decision-making team may include the school principal, teachers in the school or 
30.8 	their designee, other employees in the school, representatives of pupils in the school, or 
30.9 	other members in the community. A school site decision-making team must include at 
30.10 	least one parent of a pupil in the school. For purposes of formation of a new site, a school 
30.11 	site decision-making team may be a team of teachers that is recognized by the board as 
30.12 	a site. The school site decision-making team shall include the school principal or other 
30.13 	person having general control and supervision of the school. The site decision-making 
30.14 	team must reflect the diversity of the education site. At least one-half of the members 
30.15 	shall be employees of the district, unless an employee is the parent of a student enrolled 
30.16 	in the school site, in which case the employee may elect to serve as a parent member of 
30.17 	the site team.
30.18 	(b)(c) School site decision-making agreements must delegate powers, duties, and 
30.19 	broad management responsibilities to site teams and involve staff members, students as 
30.20 	appropriate, and parents in decision making.
30.21 	(c)(d) An agreement shall include a statement of powers, duties, responsibilities, 
30.22 	and authority to be delegated to and within the site.
30.23 	(d)(e) An agreement may include:
30.24 	(1) an achievement contract according to subdivision 4;
30.25 	(2) a mechanism to allow principals, a site leadership team, or other persons having 
30.26 	general control and supervision of the school, to make decisions regarding how financial 
30.27 	and personnel resources are best allocated at the site and from whom goods or services 
30.28 	are purchased;
30.29 	(3) a mechanism to implement parental involvement programs under section 
30.30 	124D.895 and to provide for effective parental communication and feedback on this 
30.31 	involvement at the site level;
30.32 	(4) a provision that would allow the team to determine who is hired into licensed 
30.33 	and nonlicensed positions;
30.34 	(5) a provision that would allow teachers to choose the principal or other person 
30.35 	having general control;
30.36 	(6) an amount of revenue allocated to the site under subdivision 3; and
31.1 	(7) any other powers and duties determined appropriate by the board.
31.2 	The school board of the district remains the legal employer under clauses (4) and (5). 
31.3 	(e)(f) Any powers or duties not delegated to the school site management team in the 
31.4 	school site management agreement shall remain with the school board.
31.5 	(f)(g) Approved agreements shall be filed with the commissioner. If a school board 
31.6 	denies a request or the school site and school board fail to reach an agreement to enter 
31.7 	into a school site management agreement, the school board shall provide a copy of the 
31.8 	request and the reasons for its denial to the commissioner.
31.9 	(g)(h) A site decision-making grant program is established, consistent with this 
31.10 	subdivision, to allow sites to implement an agreement that at least:
31.11 	(1) notwithstanding subdivision 3, allocates to the site all revenue that is attributable 
31.12 	to the students at that site;
31.13 	(2) includes a provision, consistent with current law and the collective bargaining 
31.14 	agreement in effect, that allows the site team to decide who is selected from within the 
31.15 	district for licensed and nonlicensed positions at the site and to make staff assignments 
31.16 	in the site; and
31.17 	(3) includes a completed performance agreement under subdivision 4.
31.18 	The commissioner shall establish the form and manner of the application for a grant 
31.19 	and annually, at the end of each fiscal year, report to the house of representatives and 
31.20 	senate committees having jurisdiction over education on the progress of the program.
31.21 		Subd. 3.Revenue and cost allocation. Revenue for a fiscal year received or 
31.22 	receivable by the district shall be allocated to education sites based on the agreement 
31.23 	between the school board and the site decision-making team. Revenue shall remain 
31.24 	allocated to each site until used by the site. The site teams and the board may enter an 
31.25 	agreement that permits the district to provide services and retain the revenue required to 
31.26 	pay for the services provided. The district remains responsible for legally entering into 
31.27 	contracts and expending funds. For the purposes of this subdivision, "allocation" means 
31.28 	that the determination of the use of the revenue shall be under the control of the site. The 
31.29 	district may charge the accounts of each site the actual costs of goods and services from 
31.30 	the general or capital funds attributable to the site.
31.31 		Subd. 4.Achievement contract. A school board may enter a written education 
31.32 	site achievement contract with each site decision-making team for the purpose of: (1)
31.33 	setting individualized learning performance expectations and achievement measures and 
31.34 	short- and long-term educational goals for each student at that site, including the goals 
31.35 	for improvement in each area of; (2) recognizing each student's educational needs and 
31.36 	aptitudes and levels of academic attainment, whether on grade level or above or below 
32.1 	grade level, so as to improve student performance  through such means as a cost-effective, 
32.2 	research-based formative assessment system designed to promote individualized learning 
32.3 	and assessment; (3) using student performance data to diagnose a student's academic 
32.4 	strengths and weaknesses and indicate to the student's teachers the specific skills and 
32.5 	concepts that need to be introduced to the student and developed through academic 
32.6 	instruction or applied learning, organized by strands within subject areas and linked to 
32.7 	state and local academic standards during the next year, a plan to assist consistent with 
32.8 	the student's short- and long-term educational goals; and (4) assisting the education site 
32.9 	if their progress in achieving student or contract goals are not achieved, and or other 
32.10 	performance expectations and or measures determined agreed to by the board and the site 
32.11 	decision-making team are not realized or implemented.
32.12 		Subd. 4a.Additional site agreements premised on successful achievement 
32.13 	contracts. A school board that enters into a written education achievement contract with a 
32.14 	school site under subdivision 4 where the student performance data at the site demonstrate 
32.15 	at least three consecutive school years of improved student achievement consistent with 
32.16 	the terms of the achievement contract may seek to establish a similar achievement contract 
32.17 	with other school sites in the district.
32.18 		Subd. 5.Commissioner's role. The commissioner of education, in consultation 
32.19 	with appropriate educational organizations, shall:
32.20 	(1) upon request, provide technical support for districts and sites with agreements 
32.21 	under this section;
32.22 	(2) conduct and compile research on the effectiveness of site decision making; and
32.23 	(3) periodically report on and evaluate the effectiveness of site management 
32.24 	agreements on a statewide basis.

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

32.26 	Sec. 8. Minnesota Statutes 2011 Supplement, section 123B.147, subdivision 3, is 
32.27 	amended to read:
32.28 		Subd. 3.Duties; evaluation. (a) The principal shall provide administrative, 
32.29 	supervisory, and instructional leadership services, under the supervision of the 
32.30 	superintendent of schools of the district and according to the policies, rules, and 
32.31 	regulations of the school board, for the planning, management, operation, and evaluation 
32.32 	of the education program of the building or buildings to which the principal is assigned.
32.33 	(b) To enhance a principal's leadership skills and support and improve teaching 
32.34 	practices, school performance, and student achievement, a district must develop and 
32.35 	implement a performance-based system for annually evaluating school principals assigned 
33.1 	to supervise a school building within the district. The evaluation must be designed 
33.2 	to improve teaching and learning by supporting the principal in shaping the school's 
33.3 	professional environment and developing teacher quality, performance, and effectiveness. 
33.4 	The annual evaluation must:
33.5 	(1) support and improve a principal's instructional leadership, organizational 
33.6 	management, and professional development, and strengthen the principal's capacity in the 
33.7 	areas of instruction, supervision, evaluation, and teacher development;
33.8 	(2) include formative and summative evaluations;
33.9 	(3) be consistent with a principal's job description, a district's long-term plans and 
33.10 	goals, and the principal's own professional multiyear growth plans and goals, all of which 
33.11 	must support the principal's leadership behaviors and practices, rigorous curriculum, 
33.12 	school performance, and high-quality instruction;
33.13 	(4) include on-the-job observations and previous evaluations;
33.14 	(5) allow surveys to help identify a principal's effectiveness, leadership skills and 
33.15 	processes, and strengths and weaknesses in exercising leadership in pursuit of school 
33.16 	success;
33.17 	(6) use longitudinal data on student academic growth as an 35 percent of the
33.18 	evaluation component and incorporate district achievement goals and targets;
33.19 	(7) be linked to professional development that emphasizes improved teaching and 
33.20 	learning, curriculum and instruction, student learning, and a collaborative professional 
33.21 	culture; and
33.22 	(8) for principals not meeting standards of professional practice or other criteria 
33.23 	under this subdivision, implement a plan to improve the principal's performance and 
33.24 	specify the procedure and consequence if the principal's performance is not improved.
33.25 	The provisions of this paragraph are intended to provide districts with sufficient 
33.26 	flexibility to accommodate district needs and goals related to developing, supporting, 
33.27 	and evaluating principals.

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

33.30 	Sec. 9. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 3, is 
33.31 	amended to read:
33.32 		Subd. 3.Authorizer. (a) For purposes of this section, the terms defined in this 
33.33 	subdivision have the meanings given them.
34.1 	"Application" to receive approval as an authorizer means the proposal an eligible 
34.2 	authorizer submits to the commissioner under paragraph (c) before that authorizer is able 
34.3 	to submit any affidavit to charter to a school.
34.4 	"Application" under subdivision 4 means the charter school business plan a 
34.5 	school developer submits to an authorizer for approval to establish a charter school that 
34.6 	documents the school developer's mission statement, school purposes, program design, 
34.7 	financial plan, governance and management structure, and background and experience, 
34.8 	plus any other information the authorizer requests. The application also shall include a 
34.9 	"statement of assurances" of legal compliance prescribed by the commissioner.
34.10 	"Affidavit" means a written statement the authorizer submits to the commissioner 
34.11 	for approval to establish a charter school under subdivision 4 attesting to its review and 
34.12 	approval process before chartering a school.
34.13 	(b) The following organizations may authorize one or more charter schools:
34.14 	(1) a school board; intermediate school district school board; education district 
34.15 	organized under sections 123A.15 to 123A.19;
34.16 	(2) a charitable organization under section 501(c)(3) of the Internal Revenue Code 
34.17 	of 1986, excluding a nonpublic sectarian or religious institution, any person other than a 
34.18 	natural person that directly or indirectly, through one or more intermediaries, controls, 
34.19 	is controlled by, or is under common control with the nonpublic sectarian or religious 
34.20 	institution, and any other charitable organization under this clause that in the federal IRS 
34.21 	Form 1023, Part IV, describes activities indicating a religious purpose, that:
34.22 	(i) is a member of the Minnesota Council of Nonprofits or the Minnesota Council on 
34.23 	Foundations;
34.24 	(ii) is registered with the attorney general's office; and
34.25 	(iii) is incorporated in the state of Minnesota and has been operating continuously 
34.26 	for at least five years but does not operate a charter school;
34.27 	(3) a Minnesota private college, notwithstanding clause (2), that grants two- or 
34.28 	four-year degrees and is registered with the Minnesota Office of Higher Education under 
34.29 	chapter 136A; community college, state university, or technical college governed by the 
34.30 	Board of Trustees of the Minnesota State Colleges and Universities; or the University 
34.31 	of Minnesota;
34.32 	(4) a nonprofit corporation subject to chapter 317A, described in section 317A.905, 
34.33 	and exempt from federal income tax under section 501(c)(6) of the Internal Revenue Code 
34.34 	of 1986, may authorize one or more charter schools if the charter school has operated 
34.35 	for at least three years under a different authorizer and if the nonprofit corporation has 
34.36 	existed for at least 25 years; or
35.1 	(5) single-purpose authorizers that are charitable, nonsectarian organizations formed 
35.2 	under section 501(c)(3) of the Internal Revenue Code of 1986 and incorporated in the state 
35.3 	of Minnesota whose sole purpose is to charter schools. Eligible organizations interested 
35.4 	in being approved as an authorizer under this paragraph must submit a proposal to the 
35.5 	commissioner that includes the provisions of paragraph (c) and a five-year financial plan. 
35.6 	Such authorizers shall consider and approve applications using the criteria provided in 
35.7 	subdivision 4 and shall not limit the applications it solicits, considers, or approves to any 
35.8 	single curriculum, learning program, or method.
35.9 	(c) An eligible authorizer under this subdivision must apply to the commissioner for 
35.10 	approval as an authorizer before submitting any affidavit to the commissioner to charter 
35.11 	a school. The application for approval as a charter school authorizer must demonstrate 
35.12 	the applicant's ability to implement the procedures and satisfy the criteria for chartering a 
35.13 	school under this section. The commissioner must approve or disapprove an application 
35.14 	within 45 business days of the application deadline. If the commissioner disapproves 
35.15 	the application, the commissioner must notify the applicant of the specific deficiencies 
35.16 	in writing and the applicant then has 20 business days to address the deficiencies to the 
35.17 	commissioner's satisfaction. After the 20 business days expire, the commissioner has 15 
35.18 	business days to make a final decision to approve or disapprove the application. Failing to 
35.19 	address the deficiencies to the commissioner's satisfaction makes an applicant ineligible to 
35.20 	be an authorizer. The commissioner, in establishing criteria for approval, must consider 
35.21 	the applicant's:
35.22 	(1) capacity and infrastructure;
35.23 	(2) application criteria and process;
35.24 	(3) contracting process;
35.25 	(4) ongoing oversight and evaluation processes; and
35.26 	(5) renewal criteria and processes.
35.27 	(d) An applicant must include in its application to the commissioner to be an 
35.28 	approved authorizer at least the following:
35.29 	(1) how chartering schools is a way for the organization to carry out its mission;
35.30 	(2) a description of the capacity of the organization to serve as an authorizer, 
35.31 	including the personnel who will perform the authorizing duties, their qualifications, the 
35.32 	amount of time they will be assigned to this responsibility, and the financial resources 
35.33 	allocated by the organization to this responsibility;
35.34 	(3) a description of the application and review process the authorizer will use to 
35.35 	make decisions regarding the granting of charters;
36.1 	(4) a description of the type of contract it will arrange with the schools it charters 
36.2 	that meets the provisions of subdivision 6;
36.3 	(5) the process to be used for providing ongoing oversight of the school consistent 
36.4 	with the contract expectations specified in clause (4) that assures that the schools chartered 
36.5 	are complying with both the provisions of applicable law and rules, and with the contract;
36.6 	(6) a description of the criteria and process the authorizer will use to grant expanded 
36.7 	applications under subdivision 4, paragraph (j);
36.8 	(7) the process for making decisions regarding the renewal or termination of 
36.9 	the school's charter based on evidence that demonstrates the academic, organizational, 
36.10 	and financial competency of the school, including its success in increasing student 
36.11 	achievement and meeting the goals of the charter school agreement; and
36.12 	(8) an assurance specifying that the organization is committed to serving as an 
36.13 	authorizer for the full five-year term.
36.14 	(e) A disapproved applicant under this section may resubmit an application during a 
36.15 	future application period.
36.16 	(f) If the governing board of an approved authorizer that has chartered multiple 
36.17 	schools votes to withdraw as an approved authorizer for a reason unrelated to any 
36.18 	cause under subdivision 23, the authorizer must notify all its chartered schools and the 
36.19 	commissioner in writing by July 15 of its intent to withdraw as an authorizer on June 30 in 
36.20 	the next calendar year. The commissioner may approve the transfer of a charter school 
36.21 	to a new authorizer under this paragraph after the new authorizer submits an affidavit to 
36.22 	the commissioner.
36.23 	(g) The authorizer must participate in department-approved training.
36.24 	(h) An authorizer that chartered a school before August 1, 2009, must apply by 
36.25 	June 30, 2012, to the commissioner for approval, under paragraph (c), to continue as an 
36.26 	authorizer under this section. For purposes of this paragraph, an authorizer that fails to 
36.27 	submit a timely application is ineligible to charter a school.
36.28 	(i) The commissioner shall review an authorizer's performance every five years in 
36.29 	a manner and form determined by the commissioner and may review an authorizer's 
36.30 	performance more frequently at the commissioner's own initiative or at the request of a 
36.31 	charter school operator, charter school board member, or other interested party. The 
36.32 	commissioner, after completing the review, shall transmit a report with findings to the 
36.33 	authorizer. If, consistent with this section, the commissioner finds that an authorizer has 
36.34 	not fulfilled the requirements of this section, the commissioner may subject the authorizer 
36.35 	to corrective action, which may include terminating the contract with the charter school 
36.36 	board of directors of a school it chartered. The commissioner must notify the authorizer 
37.1 	in writing of any findings that may subject the authorizer to corrective action and 
37.2 	the authorizer then has 15 business days to request an informal hearing before the 
37.3 	commissioner takes corrective action. If the commissioner terminates a contract between 
37.4 	an authorizer and a charter school under this paragraph, the commissioner may assist the 
37.5 	charter school in acquiring a new authorizer.
37.6 	(j) The commissioner may at any time take corrective action against an authorizer, 
37.7 	including terminating an authorizer's ability to charter a school for:
37.8 	(1) failing to demonstrate the criteria under paragraph (c) under which the 
37.9 	commissioner approved the authorizer;
37.10 	(2) violating a term of the chartering contract between the authorizer and the charter 
37.11 	school board of directors;
37.12 	(3) unsatisfactory performance as an approved authorizer; or
37.13 	(4) any good cause shown that provides the commissioner a legally sufficient reason 
37.14 	to take corrective action against an authorizer.

37.15 	Sec. 10. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 4, is 
37.16 	amended to read:
37.17 		Subd. 4.Formation of school. (a) An authorizer, after receiving an application from 
37.18 	a school developer, may charter a licensed teacher under section 122A.18, subdivision 
37.19 	1, or a group of individuals that includes one or more licensed teachers under section 
37.20 	122A.18, subdivision 1, to operate a school subject to the commissioner's approval of the 
37.21 	authorizer's affidavit under paragraph (b). The school must be organized and operated as a 
37.22 	nonprofit corporation under chapter 317A and the provisions under the applicable chapter 
37.23 	shall apply to the school except as provided in this section.
37.24 	Notwithstanding sections 465.717 and 465.719, a school district, subject to this 
37.25 	section and section 124D.11, may create a corporation for the purpose of establishing a 
37.26 	charter school.
37.27 	(b) Before the operators may establish and operate a school, the authorizer must file 
37.28 	an affidavit with the commissioner stating its intent to charter a school. An authorizer 
37.29 	must file a separate affidavit for each school it intends to charter. The affidavit must 
37.30 	state the terms and conditions under which the authorizer would charter a school and 
37.31 	how the authorizer intends to oversee the fiscal and student performance of the charter 
37.32 	school and to comply with the terms of the written contract between the authorizer 
37.33 	and the charter school board of directors under subdivision 6. The commissioner must 
37.34 	approve or disapprove the authorizer's affidavit within 60 business days of receipt of the 
37.35 	affidavit. If the commissioner disapproves the affidavit, the commissioner shall notify 
38.1 	the authorizer of the deficiencies in the affidavit and the authorizer then has 20 business 
38.2 	days to address the deficiencies. If the authorizer does not address deficiencies to the 
38.3 	commissioner's satisfaction, the commissioner's disapproval is final. Failure to obtain 
38.4 	commissioner approval precludes an authorizer from chartering the school that is the 
38.5 	subject of this affidavit.
38.6 	(c) The authorizer may prevent an approved charter school from opening for 
38.7 	operation if, among other grounds, the charter school violates this section or does not meet 
38.8 	the ready-to-open standards that are part of the authorizer's oversight and evaluation 
38.9 	process or are stipulated in the charter school contract.
38.10 	(d) The operators authorized to organize and operate a school, before entering into a 
38.11 	contract or other agreement for professional or other services, goods, or facilities, must 
38.12 	incorporate as a nonprofit corporation under chapter 317A and must establish a board of 
38.13 	directors composed of at least five members who are not related parties until a timely 
38.14 	election for members of the ongoing charter school board of directors is held according to 
38.15 	the school's articles and bylaws under paragraph (f). A charter school board of directors 
38.16 	must be composed of at least five members who are not related parties. Staff members 
38.17 	employed at the school, including teachers providing instruction under a contract with a 
38.18 	cooperative, and all parents or legal guardians of children enrolled in the school are the 
38.19 	voters eligible to elect the members of the school's board of directors. A charter school 
38.20 	must notify eligible voters of the school board election dates at least 30 days before the 
38.21 	election. Board of director meetings must comply with chapter 13D.
38.22 	(e) Upon the request of an individual, the charter school must make available 
38.23 	in a timely fashionA charter school shall publish and maintain on the school's official 
38.24 	Web site: (1) the minutes of meetings of the board of directors, and of members and 
38.25 	committees having any board-delegated authority;, for at least one calendar year from the 
38.26 	date of publication; (2) directory information for members of the board of directors and 
38.27 	committees having board-delegated authority; and (3) identifying and contact information 
38.28 	for the school's authorizer. Identifying and contact information for the school's authorizer 
38.29 	must be included in other school materials made available to the public. Upon request of 
38.30 	an individual, the charter school must also make available in a timely fashion financial 
38.31 	statements showing all operations and transactions affecting income, surplus, and deficit 
38.32 	during the school's last annual accounting period; and a balance sheet summarizing assets 
38.33 	and liabilities on the closing date of the accounting period. A charter school also must post 
38.34 	on its official Web site information identifying its authorizer and indicate how to contact 
38.35 	that authorizer and include that same information about its authorizer in other school 
38.36 	materials that it makes available to the public.
39.1 	(f) Every charter school board member shall attend department-approved ongoing 
39.2 	training throughout the member's term on board governance, including training on 
39.3 	the board's role and responsibilities, employment policies and practices, and financial 
39.4 	management. A board member who does not begin the required initial training within six 
39.5 	months after being seated and complete that training within 12 months of being seated on 
39.6 	the board is ineligible to continue to serve as a board member. The school shall include in 
39.7 	its annual report the training attended by each board member during the previous year.
39.8 	(g) The ongoing board must be elected before the school completes its third year of 
39.9 	operation. Board elections must be held during the school year but may not be conducted 
39.10 	on days when the school is closed for holidays or vacations. The charter school board of 
39.11 	directors shall be composed of at least five nonrelated members and include: (i) at least one 
39.12 	licensed teacher employed at the school or a licensed teacher providing instruction under 
39.13 	contract between the charter school and a cooperative; (ii) the parent or legal guardian 
39.14 	of a student enrolled in the charter school who is not an employee of the charter school; 
39.15 	and (iii) an interested community member who is not employed by the charter school and 
39.16 	does not have a child enrolled in the school. The board may be a teacher majority board 
39.17 	composed of teachers described in this paragraph. The chief financial officer and the chief 
39.18 	administrator may only serve as ex-officio nonvoting board members and may not serve 
39.19 	as a voting member of the board. Charter school employees shall not serve on the board 
39.20 	unless item (i) applies. Contractors providing facilities, goods, or services to a charter 
39.21 	school shall not serve on the board of directors of the charter school. Board bylaws shall 
39.22 	outline the process and procedures for changing the board's governance model, consistent 
39.23 	with chapter 317A. A board may change its governance model only:
39.24 	(1) by a majority vote of the board of directors and the licensed teachers employed 
39.25 	by the school, including licensed teachers providing instruction under a contract between 
39.26 	the school and a cooperative; and
39.27 	(2) with the authorizer's approval.
39.28 	Any change in board governance must conform with the board structure established 
39.29 	under this paragraph.
39.30 	(h) The granting or renewal of a charter by an authorizer must not be conditioned 
39.31 	upon the bargaining unit status of the employees of the school.
39.32 	(i) The granting or renewal of a charter school by an authorizer must not be 
39.33 	contingent on the charter school being required to contract, lease, or purchase services 
39.34 	from the authorizer. Any potential contract, lease, or purchase of service from an 
39.35 	authorizer must be disclosed to the commissioner, accepted through an open bidding 
39.36 	process, and be a separate contract from the charter contract. The school must document 
40.1 	the open bidding process. An authorizer must not enter into a contract to provide 
40.2 	management and financial services for a school that it authorizes, unless the school 
40.3 	documents that it received at least two competitive bids.
40.4 	(j) An authorizer may permit the board of directors of a charter school to expand 
40.5 	the operation of the charter school to additional sites or to add additional grades at the 
40.6 	school beyond those described in the authorizer's original affidavit as approved by 
40.7 	the commissioner only after submitting a supplemental affidavit for approval to the 
40.8 	commissioner in a form and manner prescribed by the commissioner. The supplemental 
40.9 	affidavit must document that:
40.10 	(1) the proposed expansion plan demonstrates need and projected enrollment;
40.11 	(2) the expansion is warranted, at a minimum, by longitudinal data demonstrating 
40.12 	students' improved academic performance and growth on statewide assessments under 
40.13 	chapter 120B;
40.14 	(3) the charter school is financially sound and the financing it needs to implement 
40.15 	the proposed expansion exists; and
40.16 	(4) the charter school has the governance structure and management capacity to 
40.17 	carry out its expansion.
40.18 	(k) The commissioner shall have 30 business days to review and comment on the 
40.19 	supplemental affidavit. The commissioner shall notify the authorizer of any deficiencies in 
40.20 	the supplemental affidavit and the authorizer then has 20 business days to address, to the 
40.21 	commissioner's satisfaction, any deficiencies in the supplemental affidavit. The school 
40.22 	may not expand grades or add sites until the commissioner has approved the supplemental 
40.23 	affidavit. The commissioner's approval or disapproval of a supplemental affidavit is final.

40.24 	Sec. 11. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 6, is 
40.25 	amended to read:
40.26 		Subd. 6.Charter contract. The authorization for a charter school must be in the 
40.27 	form of a written contract signed by the authorizer and the board of directors of the charter 
40.28 	school. The contract must be completed within 45 business days of the commissioner's 
40.29 	approval of the authorizer's affidavit. The authorizer shall submit to the commissioner a 
40.30 	copy of the signed charter contract within ten business days of its execution. The contract 
40.31 	for a charter school must be in writing and contain at least the following:
40.32 	(1) a declaration of the purposes in subdivision 1 that the school intends to carry out 
40.33 	and how the school will report its implementation of those purposes;
40.34 	(2) a description of the school program and the specific academic and nonacademic 
40.35 	outcomes that pupils must achieve;
41.1 	(3) a statement of admission policies and procedures;
41.2 	(4) a governance, management, and administration plan for the school;
41.3 	(5) signed agreements from charter school board members to comply with all 
41.4 	federal and state laws governing organizational, programmatic, and financial requirements 
41.5 	applicable to charter schools;
41.6 	(6) the criteria, processes, and procedures that the authorizer will use for ongoing 
41.7 	oversight of operational, financial, and academic performance;
41.8 	(7) the performance evaluation that is a prerequisite for reviewing a charter contract 
41.9 	under subdivision 15;
41.10 	(8) types and amounts of insurance liability coverage to be obtained by the charter 
41.11 	school;
41.12 	(9) consistent with subdivision 25, paragraph (d), a provision to indemnify and hold 
41.13 	harmless the authorizer and its officers, agents, and employees from any suit, claim, 
41.14 	or liability arising from any operation of the charter school, and the commissioner and 
41.15 	department officers, agents, and employees notwithstanding section 3.736;
41.16 	(10) the term of the initial contract, which may be up to three five years plus an 
41.17 	additional preoperational planning year, and up to five years for a renewed contract or a 
41.18 	contract with a new authorizer after a transfer of authorizers, if warranted by the school's 
41.19 	academic, financial, and operational performance;
41.20 	(11) how the board of directors or the operators of the charter school will provide 
41.21 	special instruction and services for children with a disability under sections 125A.03 
41.22 	to 125A.24, and 125A.65, a description of the financial parameters within which the 
41.23 	charter school will operate to provide the special instruction and services to children 
41.24 	with a disability;
41.25 	(12) the process and criteria the authorizer intends to use to monitor and evaluate the 
41.26 	fiscal and student performance of the charter school, consistent with subdivision 15; and
41.27 	(13) the plan for an orderly closing of the school under chapter 317A, if the closure 
41.28 	is a termination for cause, a voluntary termination, or a nonrenewal of the contract, and 
41.29 	that includes establishing the responsibilities of the school board of directors and the 
41.30 	authorizer and notifying the commissioner, authorizer, school district in which the charter 
41.31 	school is located, and parents of enrolled students about the closure, the transfer of student 
41.32 	records to students' resident districts, and procedures for closing financial operations.

41.33 	Sec. 12. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 13, 
41.34 	is amended to read:
42.1 		Subd. 13.Length of school year. A charter school must provide instruction each 
42.2 	year for at least the number of days hours required by section 120A.41. It may provide 
42.3 	instruction throughout the year according to sections 124D.12 to 124D.127 or 124D.128.

42.4 	Sec. 13. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 15, 
42.5 	is amended to read:
42.6 		Subd. 15.Review and comment. (a) The authorizer shall provide a formal written 
42.7 	evaluation of the school's performance before the authorizer renews the charter contract. 
42.8 	The department must review and comment on the authorizer's evaluation process at the 
42.9 	time the authorizer submits its application for approval and each time the authorizer 
42.10 	undergoes its five-year review under subdivision 3, paragraph (e).
42.11 	(b) An authorizer shall monitor and evaluate the fiscal, operational, and student 
42.12 	performance of the school, and may for this purpose annually assess a charter school 
42.13 	a fee according to paragraph (c). The agreed-upon fee structure must be stated in the 
42.14 	charter school contract.
42.15 	(c) The fee that each charter school pays to an authorizer each year is the greater of:
42.16 	(1) the basic formula allowance for that year; or
42.17 	(2) the lesser of:
42.18 	(i) the maximum fee factor times the basic formula allowance for that year; or
42.19 	(ii) the fee factor times the basic formula allowance for that year times the charter 
42.20 	school's adjusted marginal cost pupil units for that year. The fee factor equals .005 in fiscal 
42.21 	year 2010, .01 in fiscal year 2011, .013 in fiscal year 2012, and .015 in fiscal years 2013 
42.22 	and later. The maximum fee factor equals 1.5 in fiscal year 2010, 2.0 in fiscal year 2011, 
42.23 	3.0 in fiscal year 2012, and 4.0 in fiscal years 2013 and later.
42.24 	(d) The department and any charter school it charters must not assess or pay a fee 
42.25 	under paragraphs (b) and (c) An authorizer may not assess a fee for any required services 
42.26 	other than as provided in this subdivision.
42.27 	(e) For the preoperational planning period, the authorizer may assess a charter school 
42.28 	a fee equal to the basic formula allowance.
42.29 	(f) By September 30 of each year, an authorizer shall submit to the commissioner 
42.30 	a statement of expenditures related to chartering activities during the previous school 
42.31 	year ending June 30. A copy of the statement shall be given to all schools chartered by 
42.32 	the authorizer.

42.33 	Sec. 14. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 17a, 
42.34 	is amended to read:
43.1 		Subd. 17a.Affiliated nonprofit building corporation. (a) Before a charter school 
43.2 	may organize an affiliated nonprofit building corporation (i) to renovate or purchase an 
43.3 	existing facility to serve as a school or (ii) to construct a new school facility, an authorizer 
43.4 	must submit an affidavit to the commissioner for approval in the form and manner the 
43.5 	commissioner prescribes, and consistent with paragraphs (b) and (c) or (d).
43.6 	(b) An affiliated nonprofit building corporation under this subdivision must:
43.7 	(1) be incorporated under section 317A and comply with applicable Internal 
43.8 	Revenue Service regulations;
43.9 	(2) comply with applicable Internal Revenue Service regulations, including 
43.10 	regulations for "supporting organizations" as defined by the Internal Revenue Service;
43.11 	(2) (3) submit to the commissioner each fiscal year a list of current board members 
43.12 	and a copy of its annual audit; and
43.13 	(3) (4) comply with government data practices law under chapter 13.
43.14 	An affiliated nonprofit building corporation must not serve as the leasing agent for 
43.15 	property or facilities it does not own. A charter school that leases a facility from an 
43.16 	affiliated nonprofit building corporation that does not own the leased facility is ineligible 
43.17 	to receive charter school lease aid. The state is immune from liability resulting from a 
43.18 	contract between a charter school and an affiliated nonprofit building corporation.
43.19 	(c) A charter school may organize an affiliated nonprofit building corporation to 
43.20 	renovate or purchase an existing facility to serve as a school if the charter school:
43.21 	(1) has been operating for at least five consecutive school years;
43.22 	(2) has had a net positive unreserved general fund balance as of June 30 in the 
43.23 	preceding five fiscal years;
43.24 	(3) has a long-range strategic and financial plan;
43.25 	(4) completes a feasibility study of available buildings; and
43.26 	(5) documents enrollment projections and the need to use an affiliated building 
43.27 	corporation to renovate or purchase an existing facility to serve as a school; and
43.28 	(6) has a plan for the renovation or purchase, which describes the parameters and 
43.29 	budget for the project.
43.30 	(d) A charter school may organize an affiliated nonprofit building corporation to 
43.31 	expand an existing school facility or construct a new school facility if the charter school:
43.32 	(1) demonstrates the lack of facilities available to serve as a school;
43.33 	(2) has been operating for at least eight consecutive school years;
43.34 	(3) has had a net positive unreserved general fund balance as of June 30 in the 
43.35 	preceding eight five fiscal years;
43.36 	(4) completes a feasibility study of facility options;
44.1 	(5) has a long-range strategic and financial plan that includes enrollment projections 
44.2 	and demonstrates the need for constructing a new school facility; and
44.3 	(6) has a plan for the expansion or new school facility, which describes the 
44.4 	parameters and budget for the project.
44.5 	(e) A charter school or an affiliated nonprofit building corporation organized by a 
44.6 	charter school must not initiate an installment contract for purchase, or a lease agreement, 
44.7 	or solicit bids for new construction, expansion, or remodeling of an educational facility 
44.8 	that requires an expenditure in excess of $1,400,000, unless it meets the criteria in 
44.9 	paragraph (b) and paragraph (c) or (d), as applicable, and receives a positive review and 
44.10 	comment from the commissioner under section 123B.71.

44.11 	Sec. 15. Minnesota Statutes 2011 Supplement, section 124D.10, is amended by adding 
44.12 	a subdivision to read:
44.13 		Subd. 27.Collaboration between charter school and school district. (a) A charter 
44.14 	school board may voluntarily enter into a two-year, renewable agreement for collaboration 
44.15 	to enhance student achievement with a school district within whose geographic boundary 
44.16 	it operates.
44.17 	(b) A school district need not be an approved authorizer to enter into a collaboration 
44.18 	agreement with a charter school. A charter school need not be authorized by the school 
44.19 	district with which it seeks to collaborate.
44.20 	(c) A charter school authorizer is prohibited from requiring a collaboration agreement 
44.21 	as a condition of entering into or renewing a charter contract as defined in subdivision 6.
44.22 	(d) Nothing in this subdivision or in the collaboration agreement may impact in any 
44.23 	way, the authority or autonomy of the charter school.
44.24 	(e) Nothing in this subdivision or in the collaboration agreement shall cause the state 
44.25 	to pay twice for the same student, service or facility or otherwise impact state funding, or 
44.26 	the flow thereof, to the school district or the charter school.
44.27 	(f) The collaboration agreement may include, but need not be limited to, 
44.28 	collaboration regarding facilities, transportation, training, student achievement, 
44.29 	assessments, mutual performance standards and other areas of mutual agreement.
44.30 	(g) The school district may include the academic performance of the students of a 
44.31 	collaborative charter school site operating within the geographic boundaries of the school 
44.32 	district, for purposes of student assessment and reporting to the state.
44.33 	(h) Districts, authorizers, or charter schools entering into a collaborative agreement 
44.34 	are equally and collectively subject to the same state and federal accountability measures 
44.35 	for student achievement, school performance outcomes, and school improvement 
45.1 	strategies. The collaborative agreement and all accountability measures must be posted on 
45.2 	the district, charter school, and authorizer Web site.

45.3 	Sec. 16. Minnesota Statutes 2011 Supplement, section 124D.98, subdivision 2, is 
45.4 	amended to read:
45.5 		Subd. 2.Proficiency aid. In fiscal year 2013 and later, the proficiency aid for each 
45.6 	school is equal to the product of the school's proficiency allowance times the number 
45.7 	of third grade pupils at the school on October 1 of the previous fiscal year. A school's 
45.8 	proficiency allowance is equal to the percentage of students in each building that meet 
45.9 	or exceed proficiency on the third grade reading Minnesota Comprehensive Assessment, 
45.10 	averaged across the previous three test administrations, times $85 $530.

45.11 	Sec. 17. Minnesota Statutes 2011 Supplement, section 124D.98, subdivision 3, is 
45.12 	amended to read:
45.13 		Subd. 3.Growth aid. In fiscal year 2013 and later, the growth aid for each school is 
45.14 	equal to the product of the school's growth allowance times the number of fourth grade 
45.15 	pupils enrolled at the school on October 1 of the previous fiscal year. A school's growth 
45.16 	allowance is equal to the percentage of students at that school making medium or high 
45.17 	growth, under section 120B.299, on the fourth grade reading Minnesota Comprehensive 
45.18 	Assessment, averaged across the previous three test administrations, times $85 $530.

45.19 	Sec. 18. Minnesota Statutes 2011 Supplement, section 126C.40, subdivision 1, is 
45.20 	amended to read:
45.21 		Subdivision 1.To lease building or land. (a) When an independent or a special 
45.22 	school district or a group of independent or special school districts finds it economically 
45.23 	advantageous to rent or lease a building or land for any instructional purposes or for 
45.24 	school storage or furniture repair, and it determines that the operating capital revenue 
45.25 	authorized under section 126C.10, subdivision 13, is insufficient for this purpose, it may 
45.26 	apply to the commissioner for permission to make an additional capital expenditure levy 
45.27 	for this purpose. An application for permission to levy under this subdivision must contain 
45.28 	financial justification for the proposed levy, the terms and conditions of the proposed 
45.29 	lease, and a description of the space to be leased and its proposed use.
45.30 	(b) The criteria for approval of applications to levy under this subdivision must 
45.31 	include: the reasonableness of the price, the appropriateness of the space to the proposed 
45.32 	activity, the feasibility of transporting pupils to the leased building or land, conformity 
45.33 	of the lease to the laws and rules of the state of Minnesota, and the appropriateness of 
46.1 	the proposed lease to the space needs and the financial condition of the district. The 
46.2 	commissioner must not authorize a levy under this subdivision in an amount greater than 
46.3 	the cost to the district of renting or leasing a building or land for approved purposes. 
46.4 	The proceeds of this levy must not be used for custodial or other maintenance services. 
46.5 	A district may not levy under this subdivision for the purpose of leasing or renting a 
46.6 	district-owned building or site to itself.
46.7 	(c) For agreements finalized after July 1, 1997, a district may not levy under this 
46.8 	subdivision for the purpose of leasing: (1) a newly constructed building used primarily 
46.9 	for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed 
46.10 	building addition or additions used primarily for regular kindergarten, elementary, or 
46.11 	secondary instruction that contains more than 20 percent of the square footage of the 
46.12 	previously existing building.
46.13 	(d) Notwithstanding paragraph (b), a district may levy under this subdivision for the 
46.14 	purpose of leasing or renting a district-owned building or site to itself only if the amount 
46.15 	is needed by the district to make payments required by a lease purchase agreement, 
46.16 	installment purchase agreement, or other deferred payments agreement authorized by law, 
46.17 	and the levy meets the requirements of paragraph (c). A levy authorized for a district by 
46.18 	the commissioner under this paragraph may be in the amount needed by the district to 
46.19 	make payments required by a lease purchase agreement, installment purchase agreement, 
46.20 	or other deferred payments agreement authorized by law, provided that any agreement 
46.21 	include a provision giving the school districts the right to terminate the agreement 
46.22 	annually without penalty.
46.23 	(e) The total levy under this subdivision for a district for any year must not exceed 
46.24 	$150 times the resident pupil units for the fiscal year to which the levy is attributable.
46.25 	(f) For agreements for which a review and comment have been submitted to the 
46.26 	Department of Education after April 1, 1998, the term "instructional purpose" as used in 
46.27 	this subdivision excludes expenditures on stadiums.
46.28 	(g) The commissioner of education may authorize a school district to exceed the 
46.29 	limit in paragraph (e) if the school district petitions the commissioner for approval. The 
46.30 	commissioner shall grant approval to a school district to exceed the limit in paragraph (e) 
46.31 	for not more than five years if the district meets the following criteria:
46.32 	(1) the school district has been experiencing pupil enrollment growth in the 
46.33 	preceding five years;
46.34 	(2) the purpose of the increased levy is in the long-term public interest;
46.35 	(3) the purpose of the increased levy promotes colocation of government services; 
46.36 	and
47.1 	(4) the purpose of the increased levy is in the long-term interest of the district by 
47.2 	avoiding over construction of school facilities.
47.3 	(h) A school district that is a member of an intermediate school district may include 
47.4 	in its authority under this section the costs associated with leases of administrative and 
47.5 	classroom space for intermediate school district programs. This authority must not exceed 
47.6 	$43 times the adjusted marginal cost pupil units of the member districts. This authority is 
47.7 	in addition to any other authority authorized under this section.
47.8 	(i) In addition to the allowable capital levies in paragraph (a), for taxes payable in 
47.9 	2012 to 2023, a district that is a member of the "Technology and Information Education 
47.10 	Systems" data processing joint board, that finds it economically advantageous to enter into 
47.11 	a lease agreement to finance improvements to a building and land for a group of school 
47.12 	districts or special school districts for staff development purposes, may levy for its portion 
47.13 	of lease costs attributed to the district within the total levy limit in paragraph (e). The total 
47.14 	levy authority under this paragraph shall not exceed $632,000.
47.15 	(j) Notwithstanding paragraph (a), a district may levy under this subdivision for the 
47.16 	purpose of leasing administrative space if the district can demonstrate to the satisfaction of 
47.17 	the commissioner that the lease cost for the administrative space is no greater than the 
47.18 	lease cost for instructional space that the district would otherwise lease. The commissioner 
47.19 	must deny this levy authority unless the district passes a resolution stating its intent to 
47.20 	lease instructional space under this section if the commissioner does not grant authority 
47.21 	under this paragraph. The resolution must also certify that the lease cost for administrative 
47.22 	space under this paragraph is no greater than the lease cost for the district's proposed 
47.23 	instructional lease.

47.24 	EFFECTIVE DATE. This section is effective for taxes payable in 2013 and later.

47.25 	Sec. 19. Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision 
47.26 	16, is amended to read:
47.27 		Subd. 16.Student organizations. For student organizations:

47.28		$
	725,000
	.....
	2012
	
47.29		$
	725,000
	.....
	2013
	
47.30 	$49,000 each year is for student organizations serving health occupations (HUSA)
47.31 	(HOSA).
47.32 	$46,000 each year is for student organizations serving service occupations (HERO).
47.33 	$106,000 each year is for student organizations serving trade and industry 
47.34 	occupations (SkillsUSA, secondary and postsecondary).
48.1 	$101,000 each year is for student organizations serving business occupations 
48.2 	(DECA, BPA, secondary and postsecondary).
48.3 	$158,000 each year is for student organizations serving agriculture occupations 
48.4 	(FFA, PAS).
48.5 	$150,000 each year is for student organizations serving family and consumer science 
48.6 	occupations (FCCLA).
48.7 	$115,000 each year is for student organizations serving marketing occupations 
48.8 	(DEX) (DECA, DECA Collegiate).
48.9 	Any balance in the first year does not cancel but is available in the second year.

48.10 	Sec. 20. ONE-YEAR LICENSES.
 48.11 	Notwithstanding Minnesota Statutes 2010, section 122A.18, subdivision 2, as 
48.12 	amended by Laws 2012, chapter 122, section 2, a person who has:
48.13 	(1) obtained a one-year license to teach; and
48.14 	(2) taught during the 2011-2012 school year;
48.15 	may be approved by the Board of Teaching to continue to teach through the end of the 
48.16 	2012-2013 school year.

48.17 	EFFECTIVE DATE. This section is effective retroactively from February 22, 2012.

48.18 	Sec. 21.  REPEALER.
 48.19 	Minnesota Statutes 2010, sections 120A.28; 120B.019; 120B.31, subdivision 3; 
48.20 	121A.60, subdivisions 3 and 4; 121A.62; 121A.63; and 122A.18, subdivision 9, are 
48.21 	repealed.

48.22 	ARTICLE 3
48.23 	SPECIAL EDUCATION AND OTHER PROGRAMS

48.24 	Section 1. Minnesota Statutes 2010, section 125A.14, is amended to read:
48.25 	125A.14 EXTENDED SCHOOL YEAR.
48.26 	A district may provide extended school year services for children with a disability 
48.27 	living within the district and nonresident children temporarily placed in the district 
48.28 	pursuant to section 125A.15or 125A.16. Prior to March 31 or 30 days after the child 
48.29 	with a disability is placed in the district, whichever is later, the providing district shall 
48.30 	give notice to the district of residence of any nonresident children temporarily placed in 
48.31 	the district pursuant to section 125A.15or 125A.16, of its intention to provide these 
48.32 	programs. Notwithstanding any contrary provisions in sections section125A.15and 
49.1 	125A.16, the district providing the special instruction and services must apply for special 
49.2 	education aid for the extended school year services. The unreimbursed actual cost of 
49.3 	providing the program for nonresident children with a disability, including the cost of 
49.4 	board and lodging, may be billed to the district of the child's residence and must be paid 
49.5 	by the resident district. Transportation costs must be paid by the district responsible 
49.6 	for providing transportation pursuant to section 125A.15or 125A.16 and transportation 
49.7 	aid must be paid to that district.

49.8 	Sec. 2. Minnesota Statutes 2010, section 125A.19, is amended to read:
49.9 	125A.19 NONRESIDENT EDUCATION; BILLING.
49.10 	All tuition billing for the education of nonresident children pursuant to sections 
49.11 	125A.03 to 125A.24, 125A.51, 125A.515, and 125A.65 must be done on uniform forms 
49.12 	prescribed by the commissioner. The billing shall contain an itemized statement of costs 
49.13 	that are being charged to the district of residence. One copy of each billing must be filed 
49.14 	with the commissioner.

49.15 	Sec. 3. Minnesota Statutes 2010, section 125A.515, subdivision 1, is amended to read:
49.16 		Subdivision 1.Approval of education programs. The commissioner shall approve 
49.17 	on-site education programs for placement of children and youth in residential facilities 
49.18 	including detention centers, before being licensed by the Department of Human Services 
49.19 	or the Department of Corrections. Education programs in these facilities shall conform to 
49.20 	state and federal education laws including the Individuals with Disabilities Education Act 
49.21 	(IDEA). This section applies only to placements in facilities licensed by the Department of 
49.22 	Human Services or the Department of Corrections. For purposes of this section, "on-site 
49.23 	education program" means the educational services provided directly on the grounds of 
49.24 	the care and treatment facility to children and youth placed for care and treatment.

49.25 	Sec. 4. Laws 2011, First Special Session chapter 11, article 7, section 2, subdivision 8, 
49.26 	is amended to read:
49.27 		Subd. 8.Early childhood education scholarships. For grants to early childhood 
49.28 	education scholarships for public or private early childhood preschool programs for 
49.29 	children ages 3 to 5:

49.30		$
	4,000,0002,000,000
	.....
	2013
	
49.31 	(a) All children whose parents or legal guardians meet the eligibility requirements 
49.32 	of paragraph (b) established by the commissioner are eligible to receive early childhood 
49.33 	education scholarships under this section.
50.1 	(b) A parent or legal guardian is eligible for an early childhood education scholarship 
50.2 	if the parent or legal guardian:
50.3 	(1) has a child three or four years of age on September 1, beginning in calendar 
50.4 	year 2012; and
50.5 	(2)(i) has income equal to or less than 47 percent of the state median income in the 
50.6 	current calendar year; or
50.7 	(ii) can document their child's identification through another public funding 
50.8 	eligibility process, including the Free and Reduced Price Lunch Program, National School 
50.9 	Lunch Act, United States Code, title 42, section 1751, part 210; Head Start under federal 
50.10 	Improving Head Start for School Readiness Act of 2007; Minnesota family investment 
50.11 	program under chapter 256J; and child care assistance programs under chapter 119B.
50.12 	Each year, if this appropriation is insufficient to provide early childhood education 
50.13 	scholarships to all eligible children, the Department of Education shall make scholarships 
50.14 	available on a first-come, first-served basis.
50.15 	The commissioner of education shall submit a written report to the education 
50.16 	committees of the legislature by January 15, 2012, describing its plan for implementation 
50.17 	of scholarships under this subdivision for the 2012-2013 school year.
50.18 	Any balance in the first year does not cancel but is available in the second year.
50.19 	The base for this program is $2,000,000$3,000,000 each year.

50.20 	Sec. 5. APPROPRIATIONS.
 50.21 		Subdivision 1.Department of Education. The sums indicated in this section are 
50.22 	appropriated from the general fund to the Department of Education for the fiscal years 
50.23 	designated.
50.24 		Subd. 2.Parent-child home program. For a grant to the evidence-based early 
50.25 	literacy parent-child home program:

50.26		$
	250,000
	.....
	2013
	
50.27 	This is a onetime appropriation.

50.28 	Sec. 6.  REPEALER.
 50.29 	(a) Minnesota Statutes 2010, sections 125A.16; 125A.80; and 475.53, subdivision 
50.30 	5, are repealed.
50.31 	(b) Minnesota Statutes 2010, sections 124D.135, subdivisions 8 and 9; 124D.16, 
50.32 	subdivisions 6 and 7; and 124D.20, subdivisions 11 and 12, are repealed for revenue for 
50.33 	fiscal year 2014 and later.