1.1 	A bill for an act
1.2 	relating to education; providing for prekindergarten through grade 12 education, 
1.3 	including general education, education excellence, special programs, libraries, 
1.4 	and self-sufficiency and lifelong learning; making technical corrections;
1.5 	amending Minnesota Statutes 2008, sections 16A.06, subdivision 11; 120A.40; 
1.6 	120B.02; 120B.021, subdivision 1; 120B.023, subdivision 2; 120B.024; 120B.13, 
1.7 	subdivision 1; 120B.30, subdivisions 1, 1a; 120B.31, subdivision 4; 122A.07, 
1.8 	subdivisions 2, 3; 122A.31, subdivision 4; 123A.05; 123A.06; 123A.08; 
1.9 	123B.14, subdivision 7; 123B.51, by adding a subdivision; 123B.77, subdivision 
1.10 	3; 123B.81, subdivisions 3, 4, 5; 123B.83, subdivision 3; 124D.095, subdivisions 
1.11 	3, 4, 7, 10; 124D.10; 124D.11, subdivision 9; 124D.128, subdivisions 2, 3; 
1.12 	124D.135, subdivision 3; 124D.15, subdivisions 1, 3, by adding subdivisions; 
1.13 	124D.19, subdivisions 10, 14; 124D.522; 124D.60, subdivision 1; 124D.68, 
1.14 	subdivisions 2, 3, 4, 5; 125A.11, subdivision 1; 125A.15; 125A.28; 125A.51; 
1.15 	125A.62, subdivision 8; 125A.69, by adding a subdivision; 125A.744, 
1.16 	subdivision 3; 125A.76, subdivision 1; 126C.05, subdivisions 2, 15, 20; 
1.17 	126C.10, subdivision 34; 126C.15, subdivisions 2, 4; 126C.40, subdivision 6; 
1.18 	126C.44; 127A.08, by adding a subdivision; 127A.47, subdivisions 5, 7; 134.31, 
1.19 	subdivision 4a, by adding a subdivision; 299A.297; proposing coding for new 
1.20 	law in Minnesota Statutes, chapters 120B; 124D; repealing Minnesota Statutes 
1.21 	2008, sections 121A.27; 124D.13, subdivision 13.
1.22 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.23 	ARTICLE 1
1.24 	GENERAL EDUCATION

1.25 	Section 1. Minnesota Statutes 2008, section 16A.06, subdivision 11, is amended to read:
1.26 		Subd. 11.Permanent school fund reporting. The commissioner shall biannually 
1.27 	report to the Permanent School Fund Advisory Committee and the legislature on the 
1.28 	management of the permanent school trust fund that shows how the commissioner the 
1.29 	amount of the permanent school fund transfer and information about the investment of the 
1.30 	permanent school fund provided by the State Board of Investment. The State Board of 
2.1 	Investment shall provide information about how they maximized the long-term economic 
2.2 	return of the permanent school trust fund.

2.3 	Sec. 2. Minnesota Statutes 2008, section 120A.40, is amended to read:
2.4 	120A.40 SCHOOL CALENDAR.
2.5 	(a) Except for learning programs during summer, flexible learning year programs 
2.6 	authorized under sections 124D.12 to 124D.127, and learning year programs under section 
2.7 	124D.128, a district must not commence an elementary or secondary school year before 
2.8 	Labor Day, except as provided under paragraph (b). Days devoted to teachers' workshops 
2.9 	may be held before Labor Day. Districts that enter into cooperative agreements are 
2.10 	encouraged to adopt similar school calendars.
2.11 	(b) A district may begin the school year on any day before Labor Day:
2.12 	(1) to accommodate a construction or remodeling project of $400,000 or more 
2.13 	affecting a district school facility.;
2.14 	(2) if the district has an agreement under section 123A.30, 123A.32, or 123A.35 
2.15 	with a district that qualifies under clause (1); or
2.16 	A school (3) if the district that agrees to the same schedule with a school district 
2.17 	in an adjoining state also may begin the school year before Labor Day as authorized 
2.18 	under this paragraph.

2.19 	Sec. 3. Minnesota Statutes 2008, section 123B.77, subdivision 3, is amended to read:
2.20 		Subd. 3.Statement for comparison and correction. (a) By November 30 of the 
2.21 	calendar year of the submission of the unaudited financial data, the district must provide to 
2.22 	the commissioner audited financial data for the preceding fiscal year. The audit must be 
2.23 	conducted in compliance with generally accepted governmental auditing standards, the 
2.24 	federal Single Audit Act, and the Minnesota legal compliance guide issued by the Office 
2.25 	of the State Auditor. An audited financial statement prepared in a form which will allow 
2.26 	comparison with and correction of material differences in the unaudited financial data 
2.27 	shall be submitted to the commissioner and the state auditor by December 31. The audited 
2.28 	financial statement must also provide a statement of assurance pertaining to uniform 
2.29 	financial accounting and reporting standards compliance and a copy of the management 
2.30 	letter submitted to the district by the school district's auditor.
2.31 	(b) By January February 15 of the calendar year following the submission of the 
2.32 	unaudited financial data, the commissioner shall convert the audited financial data 
2.33 	required by this subdivision into the consolidated financial statement format required 
2.34 	under subdivision 1a and publish the information on the department's Web site.

3.1 	Sec. 4. Minnesota Statutes 2008, section 123B.83, subdivision 3, is amended to read:
3.2 		Subd. 3.Failure to limit expenditures. If a district does not limit its expenditures in 
3.3 	accordance with this section, the commissioner may so notify the appropriate committees 
3.4 	of the legislature by no later than January 1 February 15 of the year following the end 
3.5 	of that fiscal year.

3.6 	Sec. 5. Minnesota Statutes 2008, section 125A.11, subdivision 1, is amended to read:
3.7 		Subdivision 1.Nonresident tuition rate; other costs. (a) For fiscal year 2006, 
3.8 	when a school district provides instruction and services outside the district of residence, 
3.9 	board and lodging, and any tuition to be paid, shall be paid by the district of residence. 
3.10 	The tuition rate to be charged for any child with a disability, excluding a pupil for whom 
3.11 	tuition is calculated according to section 127A.47, subdivision 7, paragraph (d), must be 
3.12 	the sum of (1) the actual cost of providing special instruction and services to the child 
3.13 	including a proportionate amount for special transportation and unreimbursed building 
3.14 	lease and debt service costs for facilities used primarily for special education, plus (2) 
3.15 	the amount of general education revenue and referendum aid attributable to the pupil, 
3.16 	minus (3) the amount of special education aid for children with a disability received 
3.17 	on behalf of that child, minus (4) if the pupil receives special instruction and services 
3.18 	outside the regular classroom for more than 60 percent of the school day, the amount of 
3.19 	general education revenue and referendum aid, excluding portions attributable to district 
3.20 	and school administration, district support services, operations and maintenance, capital 
3.21 	expenditures, and pupil transportation, attributable to that pupil for the portion of time 
3.22 	the pupil receives special instruction and services outside of the regular classroom. If 
3.23 	the boards involved do not agree upon the tuition rate, either board may apply to the 
3.24 	commissioner to fix the rate. Notwithstanding chapter 14, the commissioner must then set 
3.25 	a date for a hearing or request a written statement from each board, giving each board 
3.26 	at least ten days' notice, and after the hearing or review of the written statements the 
3.27 	commissioner must make an order fixing the tuition rate, which is binding on both school 
3.28 	districts. General education revenue and referendum equalization aid attributable to a 
3.29 	pupil must be calculated using the resident district's average general education revenue 
3.30 	and referendum equalization aid per adjusted pupil unit.
3.31 	(b) For fiscal year 2007 and later, when a school district provides special instruction 
3.32 	and services for a pupil with a disability as defined in section 125A.02 outside the district 
3.33 	of residence, excluding a pupil for whom an adjustment to special education aid is 
3.34 	calculated according to section 127A.47, subdivision 7, paragraph (e), special education 
3.35 	aid paid to the resident district must be reduced by an amount equal to (1) the actual 
4.1 	cost of providing special instruction and services to the pupil, including a proportionate 
4.2 	amount for special transportation and unreimbursed building lease and debt service costs 
4.3 	for facilities used primarily for special education, plus (2) the amount of general education 
4.4 	revenue and referendum equalization aid attributable to that pupil, calculated using the 
4.5 	resident district's average general education revenue and referendum equalization aid 
4.6 	per adjusted pupil unit excluding basic skills revenue, elementary sparsity revenue and 
4.7 	secondary sparsity revenue, minus (3) the amount of special education aid for children 
4.8 	with a disability received on behalf of that child, minus (4) if the pupil receives special 
4.9 	instruction and services outside the regular classroom for more than 60 percent of the 
4.10 	school day, the amount of general education revenue and referendum equalization aid, 
4.11 	excluding portions attributable to district and school administration, district support 
4.12 	services, operations and maintenance, capital expenditures, and pupil transportation, 
4.13 	attributable to that pupil for the portion of time the pupil receives special instruction 
4.14 	and services outside of the regular classroom, calculated using the resident district's 
4.15 	average general education revenue and referendum equalization aid per adjusted pupil unit 
4.16 	excluding basic skills revenue, elementary sparsity revenue and secondary sparsity revenue 
4.17 	and the serving district's basic skills revenue, elementary sparsity revenue and secondary 
4.18 	sparsity revenue per adjusted pupil unit. Notwithstanding clauses (1) and (4), for pupils 
4.19 	served by a cooperative unit without a fiscal agent school district, the general education 
4.20 	revenue and referendum equalization aid attributable to a pupil must be calculated using 
4.21 	the resident district's average general education revenue and referendum equalization aid 
4.22 	excluding compensatory revenue, elementary sparsity revenue, and secondary sparsity 
4.23 	revenue. Special education aid paid to the district or cooperative providing special 
4.24 	instruction and services for the pupil must be increased by the amount of the reduction in 
4.25 	the aid paid to the resident district. Amounts paid to cooperatives under this subdivision 
4.26 	and section 127A.47, subdivision 7, shall be recognized and reported as revenues and 
4.27 	expenditures on the resident school district's books of account under sections 123B.75
4.28 	and 123B.76. If the resident district's special education aid is insufficient to make the full 
4.29 	adjustment, the remaining adjustment shall be made to other state aid due to the district.
4.30 	(c) Notwithstanding paragraphs (a) and (b) and section 127A.47, subdivision 7, 
4.31 	paragraphs (d) and (e), a charter school where more than 30 percent of enrolled students 
4.32 	receive special education and related services, a  site approved under section 125A.515, 
4.33 	an intermediate district, a special education cooperative, or a school district that served 
4.34 	as the applicant agency for a group of school districts for federal special education aids 
4.35 	for fiscal year 2006 may apply to the commissioner for authority to charge the resident 
4.36 	district an additional amount to recover any remaining unreimbursed costs of serving 
5.1 	pupils with a disability. The application must include a description of the costs and the 
5.2 	calculations used to determine the unreimbursed portion to be charged to the resident 
5.3 	district. Amounts approved by the commissioner under this paragraph must be included 
5.4 	in the tuition billings or aid adjustments under paragraph (a) or (b), or section 127A.47, 
5.5 	subdivision 7, paragraph (d) or (e), as applicable.
5.6 	(d) For purposes of this subdivision and section 127A.47, subdivision 7, paragraphs 
5.7 	(d) and (e), "general education revenue and referendum equalization aid" means the sum 
5.8 	of the general education revenue according to section 126C.10, subdivision 1, excluding 
5.9 	alternative teacher compensation revenue, plus the referendum equalization aid according 
5.10 	to section 126C.17, subdivision 7, as adjusted according to section 127A.47, subdivision 
5.11 	7, paragraphs (a) to (c).

5.12 	Sec. 6. Minnesota Statutes 2008, section 126C.05, subdivision 2, is amended to read:
5.13 		Subd. 2.Foreign exchange pupils. Notwithstanding section 124D.02, subdivision 
5.14 	3, or any other law to the contrary, a foreign exchange pupil enrolled in a district under a 
5.15 	cultural exchange program registered with the Office of the Secretary of State under 
5.16 	section 5A.02 may be counted as a resident pupil for the purposes of this chapter 
5.17 	and chapters 120B, 122A, 123A, 123B, 124D, 125A, and 127A, even if the pupil has 
5.18 	graduated from high school or the equivalent. 

5.19 	Sec. 7. Minnesota Statutes 2008, section 126C.15, subdivision 2, is amended to read:
5.20 		Subd. 2.Building allocation. (a) A district must allocate its compensatory 
5.21 	revenue to each school building in the district where the children who have generated the 
5.22 	revenue are served unless the school district has received permission under Laws 2005, 
5.23 	First Special Session chapter 5, article 1, section 50, to allocate compensatory revenue 
5.24 	according to student performance measures developed by the school board.
5.25 	(b) Notwithstanding paragraph (a), a district may allocate up to five percent of the 
5.26 	amount of compensatory revenue that the district receives to school sites according to a 
5.27 	plan adopted by the school board. The money reallocated under this paragraph must be 
5.28 	spent for the purposes listed in subdivision 1, but may be spent on students in any grade, 
5.29 	including students attending school readiness or other prekindergarten programs.
5.30 	(c) For the purposes of this section and section 126C.05, subdivision 3, "building" 
5.31 	means education site as defined in section 123B.04, subdivision 1.
5.32 	(d) If the pupil is served at a site other than one owned and operated by the district, 
5.33 	the revenue shall be paid to the district and used for services for pupils who generate 
6.1 	the revenue Notwithstanding section 123A. 26, subdivision 1, compensatory revenue 
6.2 	generated by students served at a cooperative unit shall be paid to the cooperative unit.
6.3 	(e) A district with school building openings, school building closings, changes 
6.4 	in attendance area boundaries, or other changes in programs or student demographics 
6.5 	between the prior year and the current year may reallocate compensatory revenue among 
6.6 	sites to reflect these changes. A district must report to the department any adjustments it 
6.7 	makes according to this paragraph and the department must use the adjusted compensatory 
6.8 	revenue allocations in preparing the report required under section 123B.76, subdivision 3, 
6.9 	paragraph (c).

6.10 	Sec. 8. Minnesota Statutes 2008, section 126C.15, subdivision 4, is amended to read:
6.11 		Subd. 4.Separate accounts. Each district and cooperative unit that receives basic 
6.12 	skills revenue shall maintain separate accounts to identify expenditures for salaries and 
6.13 	programs related to basic skills revenue.

6.14 	Sec. 9. Minnesota Statutes 2008, section 126C.40, subdivision 6, is amended to read:
6.15 		Subd. 6.Lease purchase; installment buys. (a) Upon application to, and approval 
6.16 	by, the commissioner in accordance with the procedures and limits in subdivision 1, 
6.17 	paragraphs (a) and (b), a district, as defined in this subdivision, may:
6.18 	(1) purchase real or personal property under an installment contract or may lease 
6.19 	real or personal property with an option to purchase under a lease purchase agreement, by 
6.20 	which installment contract or lease purchase agreement title is kept by the seller or vendor 
6.21 	or assigned to a third party as security for the purchase price, including interest, if any; and
6.22 	(2) annually levy the amounts necessary to pay the district's obligations under the 
6.23 	installment contract or lease purchase agreement.
6.24 	(b) The obligation created by the installment contract or the lease purchase 
6.25 	agreement must not be included in the calculation of net debt for purposes of section 
6.26 	475.53, and does not constitute debt under other law. An election is not required in 
6.27 	connection with the execution of the installment contract or the lease purchase agreement.  
6.28 	(c) The proceeds of the levy authorized by this subdivision must not be used to 
6.29 	acquire a facility to be primarily used for athletic or school administration purposes.
6.30 	(d) For the purposes of this subdivision, "district" means:
6.31 	(1) a racially isolated school district or a school district with a racially identifiable 
6.32 	school required to have a comprehensivedesegregation or integration plan for the
6.33 	elimination of segregationwhich is eligible for revenue under section 124D.86, 
6.34 	subdivision 3, clause (1), (2), or (3), and whose plan has been determined by the 
7.1 	commissioner to be in compliance with Department of Education rules relating to equality 
7.2 	of educational opportunity and school desegregation and, for a district eligible for 
7.3 	revenue under section 124D.86, subdivision 3, clause (4) or (5), where the acquisition of 
7.4 	property under this subdivision is determined by the commissioner to contribute to the 
7.5 	implementation of the desegregation plan; or  
7.6 	(2) a school district that participates in a joint program for interdistrict desegregation 
7.7 	with a district defined in clause (1) if the facility acquired under this subdivision is to 
7.8 	be primarily used for the joint program and the commissioner determines that the joint 
7.9 	programs are being undertaken to implement the districts' desegregation plan.
7.10 	(e) Notwithstanding subdivision 1, the prohibition against a levy by a district to lease 
7.11 	or rent a district-owned building to itself does not apply to levies otherwise authorized 
7.12 	by this subdivision.
7.13 	(f) For the purposes of this subdivision, any references in subdivision 1 to building 
7.14 	or land shall include personal property.

7.15 	Sec. 10. Minnesota Statutes 2008, section 126C.44, is amended to read:
7.16 	126C.44 SAFE SCHOOLS LEVY.
7.17 	(a) Each district may make a levy on all taxable property located within the district 
7.18 	for the purposes specified in this section. The maximum amount which may be levied 
7.19 	for all costs under this section shall be equal to $30 multiplied by the district's adjusted 
7.20 	marginal cost pupil units for the school year. The proceeds of the levy must be reserved and 
7.21 	used for directly funding the following purposes or for reimbursing the cities and counties 
7.22 	who contract with the district for the following purposes: (1) to pay the costs incurred for 
7.23 	the salaries, benefits, and transportation costs of peace officers and sheriffs for liaison in 
7.24 	services in the district's schools; (2) to pay the costs for a drug abuse prevention program 
7.25 	as defined in section 609.101, subdivision 3, paragraph (e), in the elementary schools; 
7.26 	(3) to pay the costs for a gang resistance education training curriculum in the district's 
7.27 	schools; (4) to pay the costs for security in the district's schools and on school property; (5) 
7.28 	to pay the costs for other crime prevention, drug abuse, student and staff safety, voluntary 
7.29 	opt-in suicide prevention tools, and violence prevention measures taken by the school 
7.30 	district; or (6) to pay costs for licensed school counselors, licensed school nurses, licensed 
7.31 	school social workers, licensed school psychologists, and licensed alcohol and chemical 
7.32 	dependency counselors to help provide early responses to problems. For expenditures 
7.33 	under clause (1), the district must initially attempt to contract for services to be provided 
7.34 	by peace officers or sheriffs with the police department of each city or the sheriff's 
7.35 	department of the county within the district containing the school receiving the services. If 
8.1 	a local police department or a county sheriff's department does not wish to provide the 
8.2 	necessary services, the district may contract for these services with any other police or 
8.3 	sheriff's department located entirely or partially within the school district's boundaries. 
8.4 	(b) A school district that is a member of an intermediate school district may 
8.5 	include in its authority under this section the costs associated with safe schools activities 
8.6 	authorized under paragraph (a) for intermediate school district programs. This authority 
8.7 	must not exceed $10 times the adjusted marginal cost pupil units of the member districts. 
8.8 	This authority is in addition to any other authority authorized under this section. Revenue 
8.9 	raised under this paragraph must be transferred to the intermediate school district.
8.10 	(c) A school district must set aside at least $3 per adjusted marginal cost pupil unit 
8.11 	of the safe schools levy proceeds for the purposes authorized under paragraph (a), clause 
8.12 	(6). The district must annually certify that its total spending on services provided by the 
8.13 	employees listed in paragraph (a), clause (6), is not less than the sum of its expenditures 
8.14 	for these purposes, excluding amounts spent under this section, in the previous year plus 
8.15 	the amount spent under this section.

8.16 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2010 
8.17 	and later.

8.18 	Sec. 11. Minnesota Statutes 2008, section 127A.47, subdivision 7, is amended to read:
8.19 		Subd. 7.Alternative attendance programs. The general education aid and special 
8.20 	education aid for districts must be adjusted for each pupil attending a nonresident district 
8.21 	under sections 123A.05 to 123A.08, 124D.03, 124D.08, and 124D.68. The adjustments 
8.22 	must be made according to this subdivision.
8.23 	(a) General education aid paid to a resident district must be reduced by an amount 
8.24 	equal to the referendum equalization aid attributable to the pupil in the resident district.
8.25 	(b) General education aid paid to a district serving a pupil in programs listed in this 
8.26 	subdivision must be increased by an amount equal to the greater of (1) the referendum 
8.27 	equalization aid attributable to the pupil in the nonresident district; or (2) the product of 
8.28 	the district's open enrollment concentration index, the maximum amount of referendum 
8.29 	revenue in the first tier, and the district's net open enrollment pupil units for that year. A 
8.30 	district's open enrollment concentration index equals the greater of: (i) zero, or (ii) the 
8.31 	lesser of 1.0, or the difference between the district's ratio of open enrollment pupil units 
8.32 	served to its resident pupil units for that year and 0.2. This clause does not apply to a 
8.33 	school district where more than 50 percent of the open enrollment students are enrolled 
8.34 	solely in online learning courses.
9.1 	(c) If the amount of the reduction to be made from the general education aid of the 
9.2 	resident district is greater than the amount of general education aid otherwise due the 
9.3 	district, the excess reduction must be made from other state aids due the district.
9.4 	(d) For fiscal year 2006, the district of residence must pay tuition to a district or an 
9.5 	area learning center, operated according to paragraph (f), providing special instruction and 
9.6 	services to a pupil with a disability, as defined in section 125A.02, or a pupil, as defined in 
9.7 	section 125A.51, who is enrolled in a program listed in this subdivision. The tuition must 
9.8 	be equal to (1) the actual cost of providing special instruction and services to the pupil, 
9.9 	including a proportionate amount for special transportation and unreimbursed building 
9.10 	lease and debt service costs for facilities used primarily for special education, minus (2) 
9.11 	if the pupil receives special instruction and services outside the regular classroom for 
9.12 	more than 60 percent of the school day, the amount of general education revenue and 
9.13 	referendum aid attributable to that pupil for the portion of time the pupil receives special 
9.14 	instruction and services outside of the regular classroom, excluding portions attributable to 
9.15 	district and school administration, district support services, operations and maintenance, 
9.16 	capital expenditures, and pupil transportation, minus (3) special education aid attributable 
9.17 	to that pupil, that is received by the district providing special instruction and services. 
9.18 	For purposes of this paragraph, general education revenue and referendum equalization 
9.19 	aid attributable to a pupil must be calculated using the serving district's average general 
9.20 	education revenue and referendum equalization aid per adjusted pupil unit.
9.21 	(e) For fiscal year 2007 and later, special education aid paid to a resident district 
9.22 	must be reduced by an amount equal to (1) the actual cost of providing special instruction 
9.23 	and services, including special transportation and unreimbursed building lease and debt 
9.24 	service costs for facilities used primarily for special education, for a pupil with a disability, 
9.25 	as defined in section 125A.02, or a pupil, as defined in section 125A.51, who is enrolled 
9.26 	in a program listed in this subdivision, minus (2) if the pupil receives special instruction 
9.27 	and services outside the regular classroom for more than 60 percent of the school day, 
9.28 	the amount of general education revenue and referendum equalization aid attributable 
9.29 	to that pupil for the portion of time the pupil receives special instruction and services 
9.30 	outside of the regular classroom, excluding portions attributable to district and school 
9.31 	administration, district support services, operations and maintenance, capital expenditures, 
9.32 	and pupil transportation, minus (3) special education aid attributable to that pupil, that is 
9.33 	received by the district providing special instruction and services. For purposes of this 
9.34 	paragraph, general education revenue and referendum equalization aid attributable to a 
9.35 	pupil must be calculated using the serving district's average general education revenue 
9.36 	and referendum equalization aid per adjusted pupil unit. Special education aid paid to the 
10.1 	district or cooperative providing special instruction and services for the pupil, or to the 
10.2 	fiscal agent district for a cooperative, must be increased by the amount of the reduction 
10.3 	in the aid paid to the resident district. If the resident district's special education aid is 
10.4 	insufficient to make the full adjustment, the remaining adjustment shall be made to other 
10.5 	state aids due to the district.
10.6 	(f) An area learning center operated by a service cooperative, intermediate district, 
10.7 	education district, or a joint powers cooperative may elect through the action of the 
10.8 	constituent boards to charge the resident district tuition for pupils rather than to have the 
10.9 	general education revenue paid to a fiscal agent school district. Except as provided in 
10.10 	paragraph (d) or (e), the district of residence must pay tuition equal to at least 90 percent of 
10.11 	the district average general education revenue per pupil unit minus an amount equal to the 
10.12 	product of the formula allowance according to section 126C.10, subdivision 2, times .0485, 
10.13 	calculated without basic skills compensatory revenue and transportation sparsity revenue, 
10.14 	times the number of pupil units for pupils attending the area learning center, plus the 
10.15 	amount of compensatory revenue generated by pupils attending the area learning center.

10.16 	ARTICLE 2
10.17 	EDUCATION EXCELLENCE

10.18 	Section 1. Minnesota Statutes 2008, section 120B.023, subdivision 2, is amended to 
10.19 	read:
10.20 		Subd. 2.Revisions and reviews required. (a) The commissioner of education must 
10.21 	revise and appropriately embed technology and information literacy standards consistent 
10.22 	with recommendations from school media specialists into the state's academic standards 
10.23 	and graduation requirements and implement a review cycle for state academic standards 
10.24 	and related benchmarks, consistent with this subdivision. During each review cycle, the 
10.25 	commissioner also must examine the alignment of each required academic standard and 
10.26 	related benchmark with the knowledge and skills students need for college readiness and 
10.27 	advanced work in the particular subject area.
10.28 	(b) The commissioner in the 2006-2007 school year must revise and align the state's 
10.29 	academic standards and high school graduation requirements in mathematics to require 
10.30 	that students satisfactorily complete the revised mathematics standards, beginning in the 
10.31 	2010-2011 school year. Under the revised standards:
10.32 	(1) students must satisfactorily complete an algebra I credit by the end of eighth 
10.33 	grade; and
10.34 	(2) students scheduled to graduate in the 2014-2015 school year or later must 
10.35 	satisfactorily complete an algebra II credit or its equivalent.
11.1 	The commissioner also must ensure that the statewide mathematics assessments 
11.2 	administered to students in grades 3 through 8 and 11 beginning in the 2010-2011 
11.3 	school year are aligned with the state academic standards in mathematics. The statewide 
11.4 	11th grade mathematics test administered to students under clause (2) beginning in 
11.5 	the 2013-2014 school year must include algebra II test items that are aligned with 
11.6 	corresponding state academic standards in mathematics. The commissioner must 
11.7 	implement a review of the academic standards and related benchmarks in mathematics 
11.8 	beginning in the 2015-2016 school year.
11.9 	(c) The commissioner in the 2007-2008 school year must revise and align the state's 
11.10 	academic standards and high school graduation requirements in the arts to require that 
11.11 	students satisfactorily complete the revised arts standards beginning in the 2010-2011 
11.12 	school year. The commissioner must implement a review of the academic standards and 
11.13 	related benchmarks in arts beginning in the 2016-2017 school year.
11.14 	(d) The commissioner in the 2008-2009 school year must revise and align the state's 
11.15 	academic standards and high school graduation requirements in science to require that 
11.16 	students satisfactorily complete the revised science standards, beginning in the 2011-2012 
11.17 	school year. The commissioner also must ensure that the statewide science assessments 
11.18 	administered to students as described under section 120B.30, subdivision 1a, beginning 
11.19 	in the 2011-2012 school year are aligned with the state academic standards in science. 
11.20 	Under the revised standards, students scheduled to graduate in the 2014-2015 school year 
11.21 	or later must satisfactorily complete a chemistry or physics credit. The commissioner 
11.22 	must implement a review of the academic standards and related benchmarks in science 
11.23 	beginning in the 2017-2018 school year.
11.24 	(e) The commissioner in the 2009-2010 school year must revise and align the state's 
11.25 	academic standards and high school graduation requirements in language arts to require 
11.26 	that students satisfactorily complete the revised language arts standards beginning in the 
11.27 	2012-2013 school year. The commissioner also must ensure that the statewide language 
11.28 	arts assessments administered to students beginning in the 2012-2013 school year are 
11.29 	aligned with the state academic standards in language arts. The commissioner must 
11.30 	implement a review of the academic standards and related benchmarks in language arts 
11.31 	beginning in the 2018-2019 school year.
11.32 	(f) The commissioner in the 2010-2011 school year must revise and align the state's 
11.33 	academic standards and high school graduation requirements in social studies to require 
11.34 	that students satisfactorily complete the revised social studies standards beginning in the 
11.35 	2013-2014 school year. The commissioner must implement a review of the academic 
11.36 	standards and related benchmarks in social studies beginning in the 2019-2020 school year.
12.1 	(g) School districts and charter schools must revise and align local academic 
12.2 	standards and high school graduation requirements in health, physical education, world 
12.3 	languages, and career and technical education to require students to complete the revised 
12.4 	standards beginning in a school year determined by the school district or charter school. 
12.5 	School districts and charter schools must formally establish a periodic review cycle for 
12.6 	the academic standards and related benchmarks in health, physical education, world 
12.7 	languages, and career and technical education.

12.8 	Sec. 2. Minnesota Statutes 2008, section 120B.024, is amended to read:
12.9 	120B.024 GRADUATION REQUIREMENTS; COURSE CREDITS.
12.10 	(a) Students beginning 9th grade in the 2004-2005 school year and later must 
12.11 	successfully complete the following high school level course credits for graduation:
12.12 	(1) four credits of language arts;
12.13 	(2) three credits of mathematics, encompassing at least algebra, geometry, statistics, 
12.14 	and probability sufficient to satisfy the academic standard;
12.15 	(3) three credits of science, including at least one credit in biology;
12.16 	(4) three and one-half credits of social studies, encompassing at least United 
12.17 	States history, geography, government and citizenship, world history, and economics or 
12.18 	three credits of social studies encompassing at least United States history, geography, 
12.19 	government and citizenship, and world history, and one-half credit of economics taught in 
12.20 	a school's social studies, agriculture education, or business department;
12.21 	(5) one credit in the arts; and
12.22 	(6) a minimum of seven elective course credits.
12.23 	A course credit is equivalent to a student successfully completing an academic 
12.24 	year of study or a student mastering the applicable subject matter of the state academic 
12.25 	standards or local academic standards where state standards do not apply, as determined 
12.26 	by the local school district.
12.27 	(b) An agriculture science course may fulfill a science credit requirement in addition 
12.28 	to the specified science credits in biology and chemistry or physics under paragraph (a), 
12.29 	clause (3).
12.30 	(c) A career and technical education course may fulfill a science, mathematics, or 
12.31 	arts credit requirement in addition to the specified science, mathematics, or arts credits 
12.32 	under paragraph (a), clause (2), (3), or (5).

12.33 	Sec. 3. Minnesota Statutes 2008, section 120B.13, subdivision 1, is amended to read:
13.1 		Subdivision 1.Program structure; training programs for teachers. (a) The 
13.2 	advanced placement and international baccalaureate programs are well-established 
13.3 	academic programs for mature, academically directed high school students. These 
13.4 	programs, in addition to providing academic rigor, offer sound curricular design, 
13.5 	accountability, comprehensive external assessment, feedback to students and teachers, 
13.6 	and the opportunity for high school students to compete academically on a global level. 
13.7 	Advanced placement and international baccalaureate programs allow students to leave 
13.8 	high school with the academic skills and self-confidence to succeed in college and 
13.9 	beyond. The advanced placement and international baccalaureate programs help provide 
13.10 	Minnesota students with world-class educational opportunity.
13.11 	(b) Critical to schools' educational success is ongoing advanced 
13.12 	placement/international baccalaureate-approved teacher training. A secondary teacher 
13.13 	assigned by a district to teach an advanced placement or international baccalaureate course 
13.14 	or other interested educator may participate in a training program offered by The College 
13.15 	Board or International Baccalaureate North America, Inc. The state may pay a portion 
13.16 	of the tuition, room, board, and out-of-state travel costs a teacher or other interested 
13.17 	educator incurs in participating in a training program. The commissioner shall determine 
13.18 	application procedures and deadlines, select teachers and other interested educators to 
13.19 	participate in the training program, and determine the payment process and amount of the 
13.20 	subsidy. The procedures determined by the commissioner shall, to the extent possible, 
13.21 	ensure that advanced placement and international baccalaureate courses become available 
13.22 	in all parts of the state and that a variety of course offerings are available in school districts. 
13.23 	This subdivision does not prevent teacher or other interested educator participation in 
13.24 	training programs offered by The College Board or International Baccalaureate North 
13.25 	America, Inc., when tuition is paid by a source other than the state.
13.26 	(c) The commissioner may award state-funded competitive grants designed to create 
13.27 	advanced placement summer training institutes for secondary teachers. Two-year grants, 
13.28 	beginning and ending on October 1, may be awarded to Minnesota institutions of higher 
13.29 	education that comply with the training requirements outlined by The College Board. The 
13.30 	commissioner shall determine award criteria and the selection process.

13.31 	Sec. 4. [120B.17] WORLD LANGUAGE PROFICIENCY CERTIFICATES.
13.32 	(a) Any Minnesota public, charter, or private school may award Minnesota World 
13.33 	Language Proficiency Certificates or Minnesota World Language Proficiency High 
13.34 	Achievement Certificates.
14.1 	(b) The Minnesota World Language Proficiency Certificate recognizes students who 
14.2 	demonstrate both oral and written language skills at the American Council on the Teaching 
14.3 	of Foreign Languages' Intermediate-Low level on a valid and reliable assessment tool. For 
14.4 	languages listed as Category 3 by the United States Foreign Service Institute or Category 
14.5 	4 by the United States Defense Language Institute, the standard is Intermediate-Low for 
14.6 	listening and speaking and Novice-High for reading and writing.
14.7 	(c) The Minnesota World Language Proficiency High Achievement Certificate 
14.8 	recognizes students who demonstrated both oral and written language skills at the 
14.9 	American Council on the Teaching of Foreign Languages' Pre-Advanced level for 
14.10 	K-12 learners on a valid and reliable assessment tool. For languages listed as Category 
14.11 	3 by the United States Foreign Service Institute or Category 4 by the United States 
14.12 	Defense Language Institute, the standard is Pre-Advanced for listening and speaking and 
14.13 	Intermediate-Mid for reading and writing.

14.14 	Sec. 5. Minnesota Statutes 2008, section 120B.30, subdivision 1, is amended to read:
14.15 		Subdivision 1.Statewide testing. (a) The commissioner, with advice from experts 
14.16 	with appropriate technical qualifications and experience and stakeholders, consistent with 
14.17 	subdivision 1a, shall include in the comprehensive assessment system, for each grade 
14.18 	level to be tested, state-constructed tests developed from and aligned with the state's 
14.19 	required academic standards under section 120B.021 and administered annually to all 
14.20 	students in grades 3 through 8 and at the high school level in mathematics and reading. A 
14.21 	state-developed test in a subject other than writing, developed after the 2002-2003 school 
14.22 	year, must include both machine-scoreable multiple-choice and constructed response 
14.23 	questions. The commissioner shall establish one or more months during which schools 
14.24 	shall administer the tests to students each school year. Schools selected for stand-alone 
14.25 	state field testing or other national sampling by the department must participate as 
14.26 	requested. Superintendents or charter school directors may appeal in writing to the 
14.27 	commissioner of education or the commissioner's designee for exemption from a selected 
14.28 	field test if undue hardship is demonstrated. The commissioner's decision regarding the 
14.29 	appeal is final.
14.30 	(b) For students enrolled in grade 8 before the 2005-2006 school year, only
14.31 	Minnesota basic skills tests in reading, mathematics, and writing shall fulfill students' 
14.32 	basic skills testing requirements for a passing state notation. The passing scores of basic 
14.33 	skills tests in reading and mathematics are the equivalent of 75 percent correct for students 
14.34 	entering grade 9 in 1997 and thereafter, as based on the first uniform test administration 
14.35 	of February 1998. Students who have not successfully passed the basic skills test by the 
15.1 	end of the 2011-2012 school year must pass the graduation assessment requirements 
15.2 	for Minnesota students given at that time.
15.3 	(b) (c) For students enrolled in grade 8 in the 2005-2006 school year and later, only 
15.4 	the following options shall fulfill students' state graduation test requirements:
15.5 	(1) for reading and mathematics:
15.6 	(i) obtaining an achievement level equivalent to or greater than proficient as 
15.7 	determined through a standard setting process on the Minnesota comprehensive 
15.8 	assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing 
15.9 	score as determined through a standard setting process on the graduation-required 
15.10 	assessment for diploma in grade 10 for reading and grade 11 for mathematics or 
15.11 	subsequent retests;
15.12 	(ii) achieving a passing score as determined through a standard setting process on the 
15.13 	state-identified language proficiency test in reading and the mathematics test for English 
15.14 	language learners or the graduation-required assessment for diploma equivalent of those 
15.15 	assessments for students designated as English language learners;
15.16 	(iii) achieving an individual passing score on the graduation-required assessment 
15.17 	for diploma as determined by appropriate state guidelines for students with an individual 
15.18 	education plan or 504 plan;
15.19 	(iv) obtaining achievement level equivalent to or greater than proficient as 
15.20 	determined through a standard setting process on the state-identified alternate assessment 
15.21 	or assessments in grade 10 for reading and grade 11 for mathematics for students with 
15.22 	an individual education plan; or
15.23 	(v) achieving an individual passing score on the state-identified alternate assessment 
15.24 	or assessments as determined by appropriate state guidelines for students with an 
15.25 	individual education plan; and
15.26 	(2) for writing:
15.27 	(i) achieving a passing score on the graduation-required assessment for diploma;
15.28 	(ii) achieving a passing score as determined through a standard setting process on 
15.29 	the state-identified language proficiency test in writing for students designated as English 
15.30 	language learners;
15.31 	(iii) achieving an individual passing score on the graduation-required assessment 
15.32 	for diploma as determined by appropriate state guidelines for students with an individual 
15.33 	education plan or 504 plan; or
15.34 	(iv) achieving an individual passing score on the state-identified alternate assessment 
15.35 	or assessments as determined by appropriate state guidelines for students with an 
15.36 	individual education plan.
16.1 	(c) (d) The 3rd through 8th grade and high school level test results shall be available 
16.2 	to districts for diagnostic purposes affecting student learning and district instruction and 
16.3 	curriculum, and for establishing educational accountability. The commissioner must 
16.4 	disseminate to the public the test results upon receiving those results.
16.5 	(d) (e) State tests must be constructed and aligned with state academic standards. The 
16.6 	testing process and the order of administration shall be determined by the commissioner. 
16.7 	The statewide results shall be aggregated at the site and district level, consistent with 
16.8 	subdivision 1a.
16.9 	(e) (f) In addition to the testing and reporting requirements under this section, the 
16.10 	commissioner shall include the following components in the statewide public reporting 
16.11 	system:
16.12 	(1) uniform statewide testing of all students in grades 3 through 8 and at the high 
16.13 	school level that provides appropriate, technically sound accommodations, alternate 
16.14 	assessments, or exemptions consistent with applicable federal law, only with parent or 
16.15 	guardian approval, for those very few students for whom the student's individual education 
16.16 	plan team under sections 125A.05 and 125A.06 determines that the general statewide test 
16.17 	is inappropriate for a student, or for a limited English proficiency student under section 
16.18 	124D.59, subdivision 2;
16.19 	(2) educational indicators that can be aggregated and compared across school 
16.20 	districts and across time on a statewide basis, including average daily attendance, high 
16.21 	school graduation rates, and high school drop-out rates by age and grade level;
16.22 	(3) state results on the American College Test; and
16.23 	(4) state results from participation in the National Assessment of Educational 
16.24 	Progress so that the state can benchmark its performance against the nation and other 
16.25 	states, and, where possible, against other countries, and contribute to the national effort 
16.26 	to monitor achievement.

16.27 	Sec. 6. Minnesota Statutes 2008, section 120B.30, subdivision 1a, is amended to read:
16.28 		Subd. 1a.Statewide and local assessments; results. (a) The commissioner must 
16.29 	develop reading, mathematics, and science assessments aligned with state academic 
16.30 	standards that districts and sites must use to monitor student growth toward achieving 
16.31 	those standards. The commissioner must not develop statewide assessments for academic 
16.32 	standards in social studies, health and physical education, and the arts. The commissioner 
16.33 	must require:
16.34 	(1) annual reading and mathematics assessments in grades 3 through 8 and at the 
16.35 	high school level for the 2005-2006 school year and later; and
17.1 	(2) annual science assessments in one grade in the grades 3 through 5 span, the 
17.2 	grades 6 through 98 span, and a life sciences assessment in the grades 10 9 through 12 
17.3 	span for the 2007-2008 school year and later.
17.4 	(b) The commissioner must ensure that all statewide tests administered to elementary 
17.5 	and secondary students measure students' academic knowledge and skills and not students' 
17.6 	values, attitudes, and beliefs.
17.7 	(c) Reporting of assessment results must:
17.8 	(1) provide timely, useful, and understandable information on the performance of 
17.9 	individual students, schools, school districts, and the state;
17.10 	(2) include, by no later than the 2008-2009 school year, a value-added component 
17.11 	that is in addition to a measure for student achievement growth over time; and
17.12 	(3)(i) for students enrolled in grade 8 before the 2005-2006 school year, determine 
17.13 	whether students have met the state's basic skills requirements; and
17.14 	(ii) for students enrolled in grade 8 in the 2005-2006 school year and later, determine 
17.15 	whether students have met the state's academic standards.
17.16 	(d) Consistent with applicable federal law and subdivision 1, paragraph (d), clause 
17.17 	(1), the commissioner must include appropriate, technically sound accommodations or 
17.18 	alternative assessments for the very few students with disabilities for whom statewide 
17.19 	assessments are inappropriate and for students with limited English proficiency.
17.20 	(e) A school, school district, and charter school must administer statewide 
17.21 	assessments under this section, as the assessments become available, to evaluate student 
17.22 	progress in achieving the academic standards. If a state assessment is not available, a 
17.23 	school, school district, and charter school must determine locally if a student has met 
17.24 	the required academic standards. A school, school district, or charter school may use a 
17.25 	student's performance on a statewide assessment as one of multiple criteria to determine 
17.26 	grade promotion or retention. A school, school district, or charter school may use a high 
17.27 	school student's performance on a statewide assessment as a percentage of the student's 
17.28 	final grade in a course, or place a student's assessment score on the student's transcript.

17.29 	Sec. 7. Minnesota Statutes 2008, section 122A.07, subdivision 2, is amended to read:
17.30 		Subd. 2.Eligibility; board composition. Except for the representatives of higher 
17.31 	education and the public, to be eligible for appointment to the Board of Teaching a person 
17.32 	must be a teacher currently teaching in a Minnesota school and fully licensed for the 
17.33 	position held and have at least five years teaching experience in Minnesota, including the 
17.34 	two years immediately preceding nomination and appointment. Each nominee, other than 
18.1 	a public nominee, must be selected on the basis of professional experience and knowledge 
18.2 	of teacher education, accreditation, and licensure. The board must be composed of:
18.3 	(1) six teachers who are currently teaching in a Minnesota school or who were 
18.4 	teaching at the time of the appointment, at least four of whom must be teaching in a 
18.5 	public school;
18.6 	(2) one higher education representative, who must be a faculty member preparing 
18.7 	teachers;
18.8 	(3) one school administrator; and
18.9 	(4) three members of the public, two of whom must be present or former members 
18.10 	of school boards.

18.11 	Sec. 8. Minnesota Statutes 2008, section 122A.07, subdivision 3, is amended to read:
18.12 		Subd. 3.Vacant position. With the exception of a teacher who retires from teaching 
18.13 	during the course of completing a board term, the position of a member who leaves 
18.14 	Minnesota or whose employment status changes to a category different from that from 
18.15 	which appointed is deemed vacant.

18.16 	Sec. 9. Minnesota Statutes 2008, section 123A.05, is amended to read:
18.17 	123A.05 AREA LEARNING CENTER STATE-APPROVED ALTERNATIVE 
18.18 	PROGRAM ORGANIZATION.
18.19 		Subdivision 1.Governance. (a) A district may establish an area learning center 
18.20 	either by itself or in cooperation with other districts, alternative learning program, or 
18.21 	contract alternative in accordance with sections 124D.68, subdivision 3, paragraph (d), 
18.22 	and 124D.69.
18.23 	(b) An area learning center is encouraged to cooperate with a service cooperative, an 
18.24 	intermediate school district, a local education and employment transitions partnership, 
18.25 	public and private secondary and postsecondary institutions, public agencies, businesses, 
18.26 	and foundations. Except for a district located in a city of the first class, a an area 
18.27 	learning center must be established in cooperation with other districts and must serve 
18.28 	the geographic area of at least two districts. An area learning center must provide 
18.29 	comprehensive educational services to enrolled secondary students throughout the year, 
18.30 	including a daytime school within a school or separate site for both high school and 
18.31 	middle school level students.
18.32 	(c) An alternative learning program may serve the students of one or more districts, 
18.33 	may designate which grades are served, and may make program hours and a calendar 
18.34 	optional.
19.1 	(d) A contract alternative is an alternative learning program operated by a private 
19.2 	organization that has contracted with a school district to provide educational services for 
19.3 	students under section 124D.68, subdivision 2.
19.4 		Subd. 2.Reserve revenue. Each district that is a member of an area learning center 
19.5 	or alternative learning program must reserve revenue in an amount equal to the sum of (1) 
19.6 	at least 90 percent of the district average general education revenue per pupil unit minus 
19.7 	an amount equal to the product of the formula allowance according to section 126C.10, 
19.8 	subdivision 2, times .0485, calculated without basic skills revenue and transportation 
19.9 	sparsity revenue, times the number of pupil units attending an area learning center or 
19.10 	alternative learning program under this section, plus (2) the amount of basic skills revenue 
19.11 	generated by pupils attending the area learning center or alternative learning program. The 
19.12 	amount of reserved revenue under this subdivision may only be spent on program costs 
19.13 	associated with the area learning center or alternative learning program.
19.14 		Subd. 3.Access to services. A center state-approved alternative program shall have 
19.15 	access to the district's regular education programs, special education programs, technology 
19.16 	facilities, and staff. It may contract with individuals or postsecondary institutions. It shall 
19.17 	seek the involvement of community education programs, postsecondary institutions, 
19.18 	interagency collaboratives, culturally based organizations, mutual assistance associations, 
19.19 	and other community resources, businesses, and other federal, state, and local public 
19.20 	agencies.
19.21 		Subd. 4.Nonresident pupils. A pupil who does not reside in the district may 
19.22 	attend a center state-approved alternative program without consent of the school board of 
19.23 	the district of residence.

19.24 	Sec. 10. Minnesota Statutes 2008, section 123A.06, is amended to read:
19.25 	123A.06 CENTER STATE-APPROVED ALTERNATIVE PROGRAMS AND 
19.26 	SERVICES.
19.27 		Subdivision 1.Program focus. (a) The programs and services of a center
19.28 	state-approved alternative program must focus on academic and learning skills, applied 
19.29 	learning opportunities, trade and vocational skills, work-based learning opportunities, 
19.30 	work experience, youth service to the community, transition services, and English 
19.31 	language and literacy programs for children whose primary language is a language other 
19.32 	than English. Applied learning, work-based learning, and service learning may best be 
19.33 	developed in collaboration with a local education and transitions partnership, culturally 
19.34 	based organizations, mutual assistance associations, or other community resources. 
19.35 	In addition to offering programs, the center state-approved alternative program shall 
20.1 	coordinate the use of other available educational services, special education services, 
20.2 	social services, health services, and postsecondary institutions in the community and 
20.3 	services area.
20.4 	(b) Consistent with the requirements of sections 121A.40 to 121A.56, a school 
20.5 	district may provide an alternative education program for a student who is within the 
20.6 	compulsory attendance age under section 120A.20, and who is involved in severe or 
20.7 	repeated disciplinary action.  
20.8 		Subd. 2.People to be served. A center state-approved alternative program shall 
20.9 	provide programs for secondary pupils and adults. A center may also provide programs 
20.10 	and services for elementary and secondary pupils who are not attending the center
20.11 	state-approved alternative program to assist them in being successful in school. A center 
20.12 	shall use research-based best practices for serving limited English proficient students and 
20.13 	their parents. An individual education plan team may identify a center state-approved 
20.14 	alternative program as an appropriate placement to the extent a center state-approved 
20.15 	alternative program can provide the student with the appropriate special education services 
20.16 	described in the student's plan. Pupils eligible to be served are those who qualify under 
20.17 	the graduation incentives program in section 124D.68, subdivision 2, those enrolled 
20.18 	under section 124D.02, subdivision 2, or those pupils who are eligible to receive special 
20.19 	education services under sections 125A.03 to 125A.24, and 125A.65. 
20.20 		Subd. 3.Hours of instruction exemption. Notwithstanding any law to the contrary, 
20.21 	the area learning center programs must be available throughout the entire year. A center 
20.22 	may petition the state board under Minnesota Rules, part 3500.1000, for exemption from 
20.23 	other rules.
20.24 		Subd. 4.Granting a diploma. Upon successful completion of the area learning 
20.25 	center program, a pupil is entitled to receive a high school diploma. The pupil may elect 
20.26 	to receive a diploma from either the district of residence or the district in which the area 
20.27 	learning center is located.

20.28 	Sec. 11. Minnesota Statutes 2008, section 123A.08, is amended to read:
20.29 	123A.08 CENTER STATE-APPROVED ALTERNATIVE PROGRAM 
20.30 	 FUNDING.
20.31 		Subdivision 1.Outside sources for resources and services. A center
20.32 	state-approved alternative program may accept:
20.33 	(1) resources and services from postsecondary institutions serving center
20.34 	state-approved alternative program pupils;
21.1 	(2) resources from Job Training Partnership Act programs, including funding for 
21.2 	jobs skills training for various groups and the percentage reserved for education;
21.3 	(3) resources from the Department of Human Services and county welfare funding;
21.4 	(4) resources from a local education and employment transitions partnership; or
21.5 	(5) private resources, foundation grants, gifts, corporate contributions, and other 
21.6 	grants.
21.7 		Subd. 2.General education aid. Payment of general education aid for nonresident 
21.8 	pupils enrolled in the center area learning centers and alternative learning programs must 
21.9 	be made according to section 127A.47, subdivision 7.  
21.10 		Subd. 3.Special education revenue. Payment of special education revenue for 
21.11 	nonresident pupils enrolled in the center state-approved alternative program must be made 
21.12 	according to section 125A.15 127A.47, subdivision 7.  

21.13 	Sec. 12. Minnesota Statutes 2008, section 123B.51, is amended by adding a 
21.14 	subdivision to read:
21.15 		Subd. 5a.Temporary closing. A school district that proposes to temporarily close a 
21.16 	schoolhouse or that intends to lease the facility to another entity for use as a schoolhouse 
21.17 	for three or fewer years is not subject to subdivision 5 if the school board holds a public 
21.18 	meeting and allows public comment on the schoolhouse's future.

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

21.20 	Sec. 13. Minnesota Statutes 2008, section 124D.095, subdivision 3, is amended to read:
21.21 		Subd. 3.Authorization; notice; limitations on enrollment. (a) A student may 
21.22 	apply for full-time enrollment in an approved online learning program under section 
21.23 	124D.03, 124D.08 or 124D.10, or for supplemental online learning. Notwithstanding 
21.24 	sections 124D.03, 124D.08, and 124D.10, procedures for enrolling in supplemental online 
21.25 	learning shall be as provided in this subdivision. A student age 17 or younger must 
21.26 	have the written consent of a parent or guardian to apply. No school district or charter 
21.27 	school may prohibit a student from applying to enroll in online learning. In order that a 
21.28 	student may enroll in online learning, the student and the student's parents must submit an 
21.29 	application to the online learning provider and identify the reason for enrolling in online 
21.30 	learning. The online learning provider that accepts a student under this section must within 
21.31 	ten days notify the student and the enrolling district in writing if the enrolling district is 
21.32 	not the online learning provider. The student and family must notify the online learning 
21.33 	provider of their intent to enroll in online learning within ten days of acceptance, at which 
21.34 	time the student and parent must sign a statement of assurance that they have reviewed the 
22.1 	online course or program and understand the expectations of online learning enrollment. 
22.2 	The online learning provider must notify the enrolling district of the student's enrollment
22.3 	application to enroll in online learning in writing on a form provided by the department.
22.4 	(b) Supplemental online learning notification to the enrolling district upon student 
22.5 	enrollment in application to the online learning program provider will include the 
22.6 	courses or program, credits to be awarded, and the start date of online enrollment, and 
22.7 	confirmation that the courses will meet the student's graduation plan. An online learning 
22.8 	provider must make available to the enrolling district the course syllabus in a format 
22.9 	established by the commissioner that identifies the state standards met by the course, 
22.10 	content outline, assessment requirements, expectations for actual teacher contact time, 
22.11 	other student-to-teacher communication, and academic support for supplemental online 
22.12 	courses taken by students in the enrolling district. Within 15 days after the online learning 
22.13 	provider makes information in this paragraph available to the enrolling district, the 
22.14 	enrolling district must either confirm or deny to the online provider that the student, 
22.15 	parent, or guardian, and enrolling district have agreed the courses meet the enrolling 
22.16 	district's graduation requirements. An online learning course or program that meets 
22.17 	or exceeds a graduation standard or grade progression requirements at the enrolling 
22.18 	district as demonstrated on the online provider's syllabus must be considered to meet the 
22.19 	corresponding graduation requirements of the student in the enrolling district. A student 
22.20 	may enroll in supplemental online learning courses up to the midpoint of the enrolling 
22.21 	district's term. The enrolling district may waive this requirement for special circumstances 
22.22 	and upon acceptance by the online provider.
22.23 	 (c) An online learning provider must notify the commissioner that it is delivering 
22.24 	online learning and report the number of online learning students it is accepting and the 
22.25 	online learning courses and programs it is delivering.
22.26 	 (d) An online learning provider may limit enrollment if the provider's school board 
22.27 	or board of directors adopts by resolution specific standards for accepting and rejecting 
22.28 	students' applications.
22.29 	 (e) An enrolling district may reduce an online learning student's regular classroom 
22.30 	instructional membership in proportion to the student's membership in online learning 
22.31 	courses.
22.32 	(f) The online provider must report or make available individual student progress 
22.33 	and credit accumulation to the student, parent or guardian, and enrolling district in a 
22.34 	manner specified by the commissioner unless another manner is agreed upon by the 
22.35 	enrolling district and the online provider and submitted to the commissioner. The enrolling 
23.1 	district must designate a contact person to assist in the facilitation and monitoring of 
23.2 	student progress and credit accumulation towards graduation status.

23.3 	Sec. 14. Minnesota Statutes 2008, section 124D.095, subdivision 4, is amended to read:
23.4 		Subd. 4.Online learning parameters. (a) An online learning student must receive 
23.5 	academic credit for completing the requirements of an online learning course or program. 
23.6 	Secondary credits granted to an online learning student must be counted toward the 
23.7 	graduation and credit requirements of the enrolling district. An online learning provider 
23.8 	must make available to the enrolling district the course syllabus, standard alignment, 
23.9 	content outline, assessment requirements, and contact information for supplemental online 
23.10 	courses taken by students in the enrolling district. The enrolling district must apply the 
23.11 	same graduation requirements to all students, including online learning students, and 
23.12 	must continue to provide nonacademic services to online learning students. If a student 
23.13 	completes an online learning course or program that meets or exceeds a graduation 
23.14 	standard or grade progression requirement at the enrolling district, that standard or 
23.15 	requirement is met. The enrolling district must use the same criteria for accepting online 
23.16 	learning credits or courses as it does for accepting credits or courses for transfer students 
23.17 	under section 124D.03, subdivision 9. The enrolling district may reduce the course 
23.18 	schedule of an online learning student in proportion to the number of online learning 
23.19 	courses the student takes from an online learning provider that is not the enrolling district.
23.20 	(b) An online learning student may:
23.21 	(1) enroll in supplemental online learning courses during a single school year to a 
23.22 	maximum of 50 percent of the student's full schedule of courses per term. A student may 
23.23 	exceed the supplemental online learning registration limit if the enrolling district grants 
23.24 	permission for supplemental online learning enrollment above the limit, or if an agreement 
23.25 	is made between the enrolling district and the online learning provider for instructional 
23.26 	services;
23.27 	(2) complete course work at a grade level that is different from the student's current 
23.28 	grade level; and
23.29 	(3) enroll in additional courses with the online learning provider under a separate 
23.30 	agreement that includes terms for payment of any tuition or course fees.
23.31 	(c) An online learning student has the same access to the computer hardware and 
23.32 	education software available in a school as all other students in the enrolling district. An 
23.33 	online learning provider must assist an online learning student whose family qualifies 
23.34 	for the education tax credit under section 290.0674 to acquire computer hardware and 
23.35 	educational software for online learning purposes.
24.1 	(d) An enrolling district may offer online learning to its enrolled students. Such 
24.2 	online learning does not generate online learning funds under this section. An enrolling 
24.3 	district that offers online learning only to its enrolled students is not subject to the 
24.4 	reporting requirements or review criteria under subdivision 7. A teacher with a Minnesota 
24.5 	license must assemble and deliver instruction to enrolled students receiving online 
24.6 	learning from an enrolling district. The delivery of instruction occurs when the student 
24.7 	interacts with the computer or the teacher and receives ongoing assistance and assessment 
24.8 	of learning. The instruction may include curriculum developed by persons other than a 
24.9 	teacher with a Minnesota license.
24.10 	(e) An online learning provider that is not the enrolling district is subject to 
24.11 	the reporting requirements and review criteria under subdivision 7. A teacher with a 
24.12 	Minnesota license must assemble and deliver instruction to online learning students. The 
24.13 	delivery of instruction occurs when the student interacts with the computer or the teacher 
24.14 	and receives ongoing assistance and assessment of learning. The instruction may include 
24.15 	curriculum developed by persons other than a teacher with a Minnesota license. Unless 
24.16 	the commissioner grants a waiver, a teacher providing online learning instruction must not 
24.17 	instruct more than 40 students in any one online learning course or program.
24.18 	(f) To enroll in more than 50 percent of the student's full schedule of courses per term 
24.19 	in online learning, the student must qualify to exceed the supplemental online learning 
24.20 	registration limit under paragraph (b) or apply for enrollment to an approved full-time 
24.21 	online learning program following appropriate procedures in subdivision 3, paragraph (a). 
24.22 	Full-time online learning students may enroll in classes at a local school per contract for 
24.23 	instructional services between the online learning provider and the school district.

24.24 	Sec. 15. Minnesota Statutes 2008, section 124D.095, subdivision 7, is amended to read:
24.25 		Subd. 7.Department of Education. (a) The department must review and 
24.26 	certify online learning providers. The online learning courses and programs must be 
24.27 	rigorous, aligned with state academic standards, and contribute to grade progression 
24.28 	in a single subject. Online learning providers must demonstrate to the commissioner 
24.29 	that online learning courses have equivalent standards or instruction, curriculum, and 
24.30 	assessment requirements as other courses offered to enrolled students. The online 
24.31 	learning provider must also demonstrate expectations for actual teacher contact time 
24.32 	or other student-to-teacher communication. The online provider must provide written 
24.33 	assurance that: (1) all courses meet state academic standards; and (2) the online learning 
24.34 	curriculum, instruction, and assessment, expectations for actual teacher-contact time or 
24.35 	other student-to-teacher communication, and academic support meet nationally recognized 
25.1 	professional standards and are demonstrated as such in a syllabus provided according to 
25.2 	the commissioner's requirements. Once an online learning provider is approved under 
25.3 	this paragraph, all of its online learning course offerings are eligible for payment under 
25.4 	this section unless a course is successfully challenged by an enrolling district or the 
25.5 	department under paragraph (b).
25.6 	(b) An enrolling district may challenge the validity of a course offered by an online 
25.7 	learning provider. The department must review such challenges based on the certification 
25.8 	procedures under paragraph (a). The department may initiate its own review of the validity 
25.9 	of an online learning course offered by an online learning provider.
25.10 	(c) The department may collect a fee not to exceed $250 for certifying online 
25.11 	learning providers or $50 per course for reviewing a challenge by an enrolling district.
25.12 	(d) The department must develop, publish, and maintain a list of approved online 
25.13 	learning providers and online learning courses and programs that it has reviewed and 
25.14 	certified.

25.15 	Sec. 16. Minnesota Statutes 2008, section 124D.095, subdivision 10, is amended to 
25.16 	read:
25.17 		Subd. 10.Online Learning Advisory Council. (a) An Online Learning Advisory 
25.18 	Council is established under section 15.059, except that the term for each council member 
25.19 	shall be three years. The advisory council is composed of 12 members from throughout 
25.20 	the state who have demonstrated experience with or interest in online learning. The 
25.21 	members of the council shall be appointed by the commissioner. The advisory council 
25.22 	shall bring to the attention of the commissioner any matters related to online learning and 
25.23 	provide input to the department in matters related, but not restricted, to:
25.24 	(1) quality assurance;
25.25 	(2) teacher qualifications;
25.26 	(3) program approval;
25.27 	(4) special education;
25.28 	(5) attendance;
25.29 	(6) program design and requirements; and
25.30 	(7) fair and equal access to programs.
25.31 	(b) Notwithstanding section 15.059, subdivision 5, the Online Learning Advisory 
25.32 	Council under this subdivision expires June 30, 2008 2013.

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

26.1 	Sec. 17. Minnesota Statutes 2008, section 124D.10, is amended to read:
26.2 	124D.10 CHARTER SCHOOLS.
26.3 		Subdivision 1.Purposes. (a) The purpose of this section is to:
26.4 	(1) improve pupil learning;
26.5 	(2) increase learning opportunities for pupils;
26.6 	(3) encourage the use of different and innovative teaching methods;
26.7 	(4) require the measurement of learning outcomes and create different and 
26.8 	innovative forms of measuring outcomes;
26.9 	(5) establish new forms of accountability for schools; or
26.10 	(6) create new professional opportunities for teachers, including the opportunity to 
26.11 	be responsible for the learning program at the school site.
26.12 	(b) This section does not provide a means to keep open a school that otherwise 
26.13 	would be closed. Applicants in these circumstances bear the burden of proving that 
26.14 	conversion to a charter school fulfills a purpose specified in this subdivision, independent 
26.15 	of the school's closing.
26.16 		Subd. 2.Applicability. This section applies only to charter schools formed and 
26.17 	operated under this section.
26.18 		Subd. 2a.Charter School Advisory Council. (a) A Charter School Advisory 
26.19 	Council is established under section 15.059 except that. The term for each council 
26.20 	member shall be is three years. The advisory council is composed of seven nine members 
26.21 	from throughout the state who have demonstrated experience with or interest in charter 
26.22 	schools. The members of the council shall be appointed by the commissioner. The 
26.23 	advisory council shall bring to the attention of the commissioner any matters related to 
26.24 	charter schools that the council deems necessary and shall:. The members may include 
26.25 	charter school authorizers, charter school personnel, public kindergarten through grade 12 
26.26 	teachers, school board members, parents of currently enrolled kindergarten through grade 
26.27 	12 public school students, and school district representatives.
26.28 	(1) encourage school boards to make full use of charter school opportunities;
26.29 	(2) encourage the creation of innovative schools;
26.30 	(3) provide leadership and support for charter school sponsors to increase the 
26.31 	innovation in and the effectiveness, accountability, and fiscal soundness of charter schools;
26.32 	(4) serve an ombudsman function in facilitating the operations of new and existing 
26.33 	charter schools;
26.34 	(5) promote timely financial management training for newly elected members of 
26.35 	a charter school board of directors and ongoing training for other members of a charter 
26.36 	school board of directors; and
27.1 	(6) facilitate compliance with auditing and other reporting requirements. The 
27.2 	advisory council shall refer all its proposals to the commissioner who shall provide time 
27.3 	for reports from the council.
27.4 	The commissioner shall appoint the council members. The advisory council shall 
27.5 	advise and make recommendations to the commissioner on authorizing charter schools 
27.6 	and other charter school matters, including:
27.7 	(1) approving, reviewing, and disciplining authorizers consistent with this section;
27.8 	(2) supporting innovation, effectiveness, accountability, and fiscal soundness;
27.9 	(3) providing a management training program for administrators and board members;
27.10 	(4) complying with auditing and other financial reporting requirements; and
27.11 	(5) reviewing new applications and proposed grade and program expansions.
27.12 	(b) The Charter School Advisory Council under this subdivision expires June 30, 
27.13 	2007 2015.
27.14 		Subd. 3.Sponsor Authorizer. (a) The following organizations may authorize one 
27.15 	or more charter schools:
27.16 	(1) a school board; intermediate school district school board; education district 
27.17 	organized under sections 123A.15 to 123A.19;
27.18 	(2) a charitable organization under section 501(c)(3) of the Internal Revenue Code 
27.19 	of 1986, excluding a house of worship and any person other than a natural person that 
27.20 	directly or indirectly, through one or more intermediaries, controls, is controlled by, or is 
27.21 	under common control with the house of worship, that:
27.22 	(i)  is a member of the Minnesota Council of Nonprofits or the Minnesota Council on 
27.23 	Foundations,;
27.24 	(ii) is registered with the attorney general's office, and;
27.25 	(iii)  reports an end-of-year fund balance of at least $2,000,000; and 
27.26 	(iv) resides in the state of Minnesota;
27.27 	(3) a Minnesota private college that grants two- or four-year degrees and is registered 
27.28 	with the Minnesota Office of Higher Education under chapter 136A; community college, 
27.29 	state university, or technical college, governed by the Board of Trustees of the Minnesota 
27.30 	State Colleges and Universities; or the University of Minnesota may sponsor one or 
27.31 	more charter schools.; or
27.32 	(b) (4) a nonprofit corporation subject to chapter 317A, described in section 
27.33 	317A.905, and exempt from federal income tax under section 501(c)(6) of the Internal 
27.34 	Revenue Code of 1986, may sponsor authorize one or more charter schools if the charter 
27.35 	school has operated for at least three years under a different sponsor authorizer and if the 
27.36 	nonprofit corporation has existed for at least 25 years.
28.1 	(b) An eligible authorizer under this subdivision must apply to the commissioner for 
28.2 	approval as an authorizer before submitting an affidavit to the commissioner to charter 
28.3 	a school. The application for approval as a charter school authorizer must demonstrate 
28.4 	the applicant's ability to implement the procedures and satisfy the criteria for chartering a 
28.5 	school under this section. The commissioner must approve or disapprove an application 
28.6 	within 60 days of receiving the application. The commissioner, in establishing criteria for 
28.7 	approval, must consider the applicant's ability to:
28.8 	(1) establish an application process for a charter school board that includes timelines, 
28.9 	requirements, and expectations;
28.10 	(2) use precisely defined, rigorous criteria to evaluate the educational, organizational, 
28.11 	and fiscal plans of a charter school board;
28.12 	(3) define in the chartering agreement the rights and responsibilities of the charter 
28.13 	school board for governing the school's educational program, controlling funds, and 
28.14 	making school management decisions;
28.15 	(4) implement an accountability system that provides valid, reliable, timely, and 
28.16 	accessible data to the authorizer on the ability of the charter school board to satisfy its 
28.17 	academic, organizational, legal, and fiscal responsibilities;
28.18 	(5) follow a detailed process for renewing the chartering agreement that reflects the 
28.19 	agreed upon rights and responsibilities of the authorizer and the charter school board, and 
28.20 	is consistent with this section; and
28.21 	(6) base a decision to renew a chartering agreement on credible evidence that 
28.22 	demonstrates the academic, organizational, and financial competency of the charter school 
28.23 	and its board, including their success in increasing student achievement and meeting the 
28.24 	goals of the chartering agreement.
28.25 	(c) The authorizer must participate in ongoing department-approved training.
28.26 	(d) An authorizer that chartered a school before August 1, 2009, must apply by June 
28.27 	30, 2012, to the commissioner for approval to continue as an authorizer under this section. 
28.28 	An authorizer that fails to submit an application is unable to charter a school.
28.29 	(e) The commissioner shall review an authorizer's performance every five years in 
28.30 	a manner and form determined by the commissioner. The commissioner shall issue a 
28.31 	report to the authorizer upon completing the review. If, consistent with this section, the 
28.32 	commissioner finds that an authorizer has not performed satisfactorily, the commissioner 
28.33 	may subject the authorizer to corrective action, which may include terminating a 
28.34 	chartering agreement with the board of a school it authorized.
28.35 	(f) The commissioner may take corrective action against an authorizer or terminate 
28.36 	an authorizer's ability to charter a school for:
29.1 	(1) failing to satisfy the criteria under which the authorizer was approved;
29.2 	(2) failing to perform satisfactorily as an approved authorizer; or
29.3 	(3) violating an element of the chartering agreement between the authorizer and 
29.4 	charter school board.
29.5 		Subd. 4.Formation of school. (a) A sponsor An authorizer may authorize one or 
29.6 	more licensed teachers under section 122A.18, subdivision 1, to operate a charter school 
29.7 	subject to approval by the commissioner. A board must vote on charter school application 
29.8 	for sponsorship no later than 90 days after receiving the application. The school must be 
29.9 	organized and operated as a cooperative under chapter 308A or nonprofit corporation 
29.10 	under chapter 317A and the provisions under the applicable chapter shall apply to the 
29.11 	school except as provided in this section. Notwithstanding sections 465.717 and 465.719, 
29.12 	a school district may create a corporation for the purpose of creating a charter school.
29.13 	(b) Before the operators may form establish and operate a school, the sponsor
29.14 	authorizer must file an affidavit with the commissioner stating its intent to authorize a
29.15 	charter a school. The affidavit must state the terms and conditions under which the sponsor
29.16 	authorizer would authorize a charter a school and how the sponsor authorizer intends 
29.17 	to oversee the fiscal and student performance of the charter school and to comply with 
29.18 	the terms of the written contract between the sponsor authorizer and the charter school 
29.19 	board of directors under subdivision 6. The commissioner must approve or disapprove 
29.20 	the sponsor's proposed authorizationauthorizer's proposed affidavit within 9060 days of 
29.21 	receipt of the affidavit. Failure to obtain commissioner approval precludes a sponsor 
29.22 	an authorizer from authorizing chartering the charter school that was the subject of the 
29.23 	affidavit.
29.24 	(c) The operators authorized to organize and operate a school, before entering into a 
29.25 	contract or other agreement for professional or other services, goods, or facilities, must 
29.26 	incorporate as a cooperative under chapter 308A or as a nonprofit corporation under 
29.27 	chapter 317A and must establish a board of directors composed of at least five members
29.28 	who are not related parties as defined in this section until a timely election for members of 
29.29 	the charter school board of directors is held according to the school's articles and bylaws. 
29.30 	A charter school board of directors must be composed of at least five members who are 
29.31 	not related parties as defined in this section. Any staff members who are employed at the 
29.32 	school, including teachers providing instruction under a contract with a cooperative, and 
29.33 	all parents or legal guardians of children enrolled in the school may participate in the 
29.34 	election for members of the school's board of directors. Licensed teachers employed at the 
29.35 	school, including teachers providing instruction under a contract with a cooperative, must 
29.36 	be a majority of the members of the board of directors before the school completes its 
30.1 	third year of operation, unless the commissioner waives the requirement for a majority of 
30.2 	licensed teachers on the board. Board of director meetings must comply with chapter 13D.
30.3 	(d) Every charter school board member shall attend department-approved training on 
30.4 	board governance, the board's role and responsibilities, financial management standards 
30.5 	and practices, and employment policies and practices. A board member who does not 
30.6 	complete the required training within one year of being appointed to the board is ineligible 
30.7 	to continue serving on the board.
30.8 	(e) The granting or renewal of a charter by a sponsoring entity an authorizer must 
30.9 	not be conditioned upon the bargaining unit status of the employees of the school.
30.10 	(e) A sponsor (f) The granting or renewing of a charter by an authorizer must 
30.11 	not be contingent on a requirement that the charter school board contract, lease, or 
30.12 	purchase goods or services from the authorizer. A party to such an arrangement between 
30.13 	an authorizer and a board must disclose the arrangement to the commissioner. The 
30.14 	commissioner may terminate a contract for goods or services under this section if the 
30.15 	commissioner determines that an arrangement exists.
30.16 	(g) The charter school shall not offer any services or goods of value to students, 
30.17 	parents, or guardians as an inducement, term, or condition of enrolling a student in a 
30.18 	charter school.
30.19 	(h) The authorizer may prevent an approved charter school from opening for 
30.20 	operation if, among other grounds, the charter school violates this section.
30.21 	(i) An authorizer may authorize permit the operators board of directors of a charter 
30.22 	school to expand the operation of the charter school to additional sites or to add additional 
30.23 	grades at the school beyond those described in the sponsor's application authorizer's 
30.24 	affidavit as approved by the commissioner only after submitting a supplemental 
30.25 	application to the commissioner in a form and manner prescribed by the commissioner. 
30.26 	The supplemental application must provide evidence that:
30.27 	(1) the expansion of proposed by the charter school is supported by need and 
30.28 	projected enrollment;
30.29 	(2) the expansion of the charter school is supported, at a minimum, by improved 
30.30 	academic performance and growth on statewide assessments under chapter 120B;
30.31 	(2) (3) the charter school is fiscally sound;
30.32 	(3) (4) the sponsor supports the charter school has the physical and financial capacity 
30.33 	to implement the proposed expansion; and
30.34 	(4) (5) the building of the additional site meets all health and safety requirements to 
30.35 	be eligible for lease aid.
31.1 	(f) The commissioner annually must provide timely financial management training 
31.2 	to newly elected members of a charter school board of directors and ongoing training to 
31.3 	other members of a charter school board of directors. Training must address ways to:
31.4 	(1) proactively assess opportunities for a charter school to maximize all available 
31.5 	revenue sources;
31.6 	(2) establish and maintain complete, auditable records for the charter school;
31.7 	(3) establish proper filing techniques;
31.8 	(4) document formal actions of the charter school, including meetings of the charter 
31.9 	school board of directors;
31.10 	(5) properly manage and retain charter school and student records;
31.11 	(6) comply with state and federal payroll record-keeping requirements; and
31.12 	(7) address other similar factors that facilitate establishing and maintaining complete 
31.13 	records on the charter school's operations.
31.14 		Subd. 4a.Conflict of interest. (a) A member of a charter school board of directors
31.15 	An individual is prohibited from serving as a member of the board of directors or as an 
31.16 	employee or agent of or a contractor with a for-profit entity with whom the charter school 
31.17 	contracts, directly or indirectly, for professional services, goods, or facilities. A violation 
31.18 	of this prohibition renders a contract voidable at the option of the commissioner void. 
31.19 	A member of a charter school board of directors who violates this prohibition shall be 
31.20 	individually liable to the charter school for any damage caused by the violation.
31.21 	(b) An individual may serve as a member of the board of directors if no conflict of 
31.22 	interest under paragraph (a) exists.
31.23 	(c) A member of a charter school board of directors that serves as a member of the 
31.24 	board of directors or as an employee or agent of or a contractor with a nonprofit entity 
31.25 	with whom the charter school contracts, directly or indirectly, for professional services, 
31.26 	goods, or facilities, must disclose all potential conflicts to the commissioner.
31.27 	(d) The conflict of interest provisions under this subdivision do not apply to 
31.28 	compensation paid to a teacher employed by the charter school who also serves as a 
31.29 	member of the board of directors.
31.30 	(e) (d) The conflict of interest provisions under this subdivision do not apply to a 
31.31 	teacher who provides services to a charter school through a cooperative formed under 
31.32 	chapter 308A when the teacher also serves on the charter school board of directors.
31.33 	(e) The commissioner may reduce a charter school's aid under section 127A.42 or 
31.34 	127A.43 if the charter school fails to correct a violation under this subdivision.
31.35 		Subd. 5.Conversion of existing schools. A board of an independent or special 
31.36 	school district may convert one or more of its existing schools to charter schools under 
32.1 	this section if 60 percent of the full-time teachers at the school sign a petition seeking 
32.2 	conversion. The conversion must occur at the beginning of an academic year.
32.3 		Subd. 6.Charter contract. The sponsor's authorization for authorizer's chartering 
32.4 	of a charter school must be in the form of a written contract signed by the sponsor
32.5 	authorizer and the board of directors of the charter school. The contract must be 
32.6 	completed signed within 90 days of the commissioner's approval of the sponsor's proposed 
32.7 	authorization authorizer's proposed affidavit. The authorizer shall submit a copy of the 
32.8 	signed contract within ten days of its execution to the commissioner. The contract for a 
32.9 	charter school must be in writing and contain at least the following:
32.10 	(1) a description of a program that carries out one or more of the purposes in 
32.11 	subdivision 1;
32.12 	(2) specific outcomes pupils are to achieve under subdivision 10;
32.13 	(3) admission policies and procedures;
32.14 	(4) management and administration of the school;
32.15 	(5) requirements and procedures for program and financial audits;
32.16 	(6) how the school will comply with subdivisions 8, 13, 16, and 23;
32.17 	(7) assumption of liability by the charter school;
32.18 	(8) types and amounts of insurance coverage to be obtained by the charter school;
32.19 	(9) the term of the contract, which may be up to three years for the initial contract, 
32.20 	and up to five years for a renewed contract based on a demonstration of the school met the 
32.21 	academic, financial, and operational terms of the contract;
32.22 	(10) if how the board of directors or the operators of the charter school will provide 
32.23 	special instruction and services for children with a disability under sections 125A.03
32.24 	to 125A.24, and 125A.65, a description of the financial parameters within which the 
32.25 	charter school will operate to provide the special instruction and services to children 
32.26 	with a disability; and
32.27 	(11) the process and criteria the sponsor authorizer intends to use to monitor 
32.28 	and evaluate the fiscal and student performance of the charter school, consistent with 
32.29 	subdivision 15.; and
32.30 	(12) the plan for an orderly closing of the school under chapter 308A or 317A, if the 
32.31 	closure is a termination for cause, voluntary termination, or nonrenewal of the contract, 
32.32 	including: establishing the respective responsibilities of the school board of directors and 
32.33 	the authorizer; and providing for notice to the commissioner, authorizer, and parents of 
32.34 	enrolled students of the closure, the transfer of student records to the students' resident 
32.35 	districts, and procedures for closing financial operations.
33.1 		Subd. 6a.Audit report. (a) The charter school must submit an audit report to the 
33.2 	commissioner and its authorizer by December 31 each year.
33.3 	(b) The charter school, with the assistance of the auditor conducting the audit, must 
33.4 	include with the report a copy of all charter school agreements for corporate management 
33.5 	services. If the entity that provides the professional services to the charter school is 
33.6 	exempt from taxation under section 501 of the Internal Revenue Code of 1986, that entity 
33.7 	must file with the commissioner by February 15 a copy of the annual return required under 
33.8 	section 6033 of the Internal Revenue Code of 1986.
33.9 	(c) If the commissioner receives as part of the an audit report a management letter
33.10 	indicating that a material weakness exists in the financial reporting systems of a charter 
33.11 	school, the charter school must submit a written report to the commissioner explaining 
33.12 	how the material weakness will be resolved.
33.13 	(d) Upon the request of an individual, the charter school must make available in a 
33.14 	timely fashion the minutes of meetings of members, the board of directors, and committees 
33.15 	having any of the authority of the board of directors, and statements showing the financial 
33.16 	result of all operations and transactions affecting income and surplus during the school's 
33.17 	last annual accounting period and a balance sheet containing a summary of its assets and 
33.18 	liabilities as of the closing date of the accounting period.
33.19 		Subd. 7.Public status; exemption from statutes and rules. A charter school is a 
33.20 	public school and is part of the state's system of public education. Except as provided in 
33.21 	this section, a charter school is exempt from all statutes and rules applicable to a school, a 
33.22 	board, or a district, although it may elect to comply with one or more provisions of statutes 
33.23 	or rules. A charter school is exempt from all statutes and rules applicable to a school, 
33.24 	school board, or school district unless a statute or rule is made specifically applicable to a 
33.25 	charter school or is included in this section.
33.26 		Subd. 8.State and local requirements. (a) A charter school shall meet all 
33.27 	applicable federal, state, and local health and safety requirements applicable to school 
33.28 	districts.
33.29 	(b) A school must comply with statewide education accountability requirements 
33.30 	governing standards and assessments in chapter 120B.
33.31 	(c) A school sponsored authorized by a school board may be located in any district, 
33.32 	unless the school board of the district of the proposed location disapproves by written 
33.33 	resolution.
33.34 	(c) (d) A charter school must be nonsectarian in its programs, admission policies, 
33.35 	employment practices, and all other operations. A sponsor An authorizer may not 
33.36 	authorize a charter a school or program that is affiliated with a nonpublic sectarian 
34.1 	school or a religious institution. A charter school student must be released for religious 
34.2 	instruction, consistent with section 120A.22, subdivision 12, clause (3).
34.3 	(d) (e) Charter schools must not be used as a method of providing education or 
34.4 	generating revenue for students who are being home-schooled.
34.5 	(e) (f) The primary focus of a charter school must be to provide a comprehensive 
34.6 	program of instruction for at least one grade or age group from five through 18 years 
34.7 	of age. Instruction may be provided to people younger than five years and older than 
34.8 	18 years of age.
34.9 	(f) (g) A charter school may not charge tuition.
34.10 	(g) (h) A charter school is subject to and must comply with chapter 363A and 
34.11 	section 121A.04.
34.12 	(h) (i) A charter school is subject to and must comply with the Pupil Fair Dismissal 
34.13 	Act, sections 121A.40 to 121A.56, and the Minnesota Public School Fee Law, sections 
34.14 	123B.34 to 123B.39.
34.15 	(i) (j) A charter school is subject to the same financial audits, audit procedures, and 
34.16 	audit requirements as a district. Audits must be conducted in compliance with generally 
34.17 	accepted governmental auditing standards, the Federal Single Audit Act, if applicable, 
34.18 	and section 6.65. A charter school is subject to and must comply with sections 15.054; 
34.19 	118A.01; 118A.02; 118A.03; 118A.04; 118A.05; 118A.06; 123B.52, subdivision 5; 
34.20 	471.38; 471.391; 471.392; 471.425; 471.87; 471.88, subdivisions 1, 2, 3, 4, 5, 6, 12, 13, 
34.21 	and 15; 471.881; and 471.89. The audit must comply with the requirements of sections 
34.22 	123B.75 to 123B.83, except to the extent deviations are necessary because of the program 
34.23 	at the school. Deviations must be approved by the commissioner and authorizer. The 
34.24 	Department of Education, state auditor, or legislative auditor, or authorizer may conduct 
34.25 	financial, program, or compliance audits. A charter school determined to be in statutory 
34.26 	operating debt under sections 123B.81 to 123B.83 must submit a plan under section 
34.27 	123B.81, subdivision 4.
34.28 	(j) (k) A charter school is a district for the purposes of tort liability under chapter 466.
34.29 	(k) (l) A charter school must comply with chapters 13 and 13D; and sections 13.32;
34.30 	120A.22, subdivision 7; 121A.75; and 260B.171, subdivisions 3 and 5.
34.31 	(l) (m) A charter school is subject to the Pledge of Allegiance requirement under 
34.32 	section 121A.11, subdivision 3.
34.33 	(n) A school offering online courses or programs must comply with section 
34.34 	124D.095.
34.35 	(o) The commissioner may reduce a charter school's state aid under section 127A.42 
34.36 	or 127A.43 if the charter school board fails to correct a violation under this section.
35.1 		Subd. 9.Admission requirements. A charter school may limit admission to:
35.2 	(1) pupils within an age group or grade level;
35.3 	(2) people who are eligible to participate in the graduation incentives program 
35.4 	under section 124D.68; or
35.5 	(3) residents of a specific geographic area where the percentage of the population 
35.6 	of non-Caucasian people of that area is greater than the percentage of the non-Caucasian 
35.7 	population in the congressional district in which the geographic area is located, and as 
35.8 	long as the school reflects the racial and ethnic diversity of the specific area.
35.9 	A charter school shall enroll an eligible pupil who submits a timely application, 
35.10 	unless the number of applications exceeds the capacity of a program, class, grade level, 
35.11 	or building. In this case, pupils must be accepted by lot. If a charter school is the only 
35.12 	school located in a town municipality serving pupils within a particular grade level, then 
35.13 	pupils that are residents of the town municipality must be given preference for enrollment 
35.14 	before accepting pupils by lot. If a pupil lives within two miles of a charter school and 
35.15 	the next closest public school is more than five miles away, the charter school must give 
35.16 	those pupils preference for enrollment before accepting other pupils by lot. The charter 
35.17 	school must develop and publish a lottery policy and process that it must use when 
35.18 	accepting pupils by lot.
35.19 	A charter school shall give preference for enrollment to a sibling of an enrolled pupil 
35.20 	and to a foster child of that pupil's parents and may give preference for enrollment to 
35.21 	children of the school's employees before accepting other pupils by lot.
35.22 	A charter school may not limit admission to pupils on the basis of intellectual ability, 
35.23 	measures of achievement or aptitude, or athletic ability.
35.24 		Subd. 10.Pupil performance. A charter school must design its programs to at 
35.25 	least meet the outcomes adopted by the commissioner for public school students. In the 
35.26 	absence of the commissioner's requirements, the school must meet the outcomes contained 
35.27 	in the contract with the sponsor authorizer. The achievement levels of the outcomes 
35.28 	contained in the contract may exceed the achievement levels of any outcomes adopted by 
35.29 	the commissioner for public school students.
35.30 		Subd. 11.Employment and other operating matters. A charter school must 
35.31 	employ or contract with necessary teachers, as defined by section 122A.15, subdivision 1, 
35.32 	who hold valid licenses to perform the particular service for which they are employed in 
35.33 	the school. The charter school's state aid may be reduced under section 127A.42 127A.43
35.34 	if the school employs a teacher who is not appropriately licensed or approved by the 
35.35 	board of teaching. The school may employ necessary employees who are not required to 
35.36 	hold teaching licenses to perform duties other than teaching and may contract for other 
36.1 	services. The school may discharge teachers and nonlicensed employees. The charter 
36.2 	school board must comply with section 181.932. The charter school board must enter into 
36.3 	a written contract with each teacher that outlines the terms and conditions of employment. 
36.4 	A person, without holding a valid administrator's license, may perform administrative, 
36.5 	supervisory, or instructional leadership duties.
36.6 	The board of directors also shall decide matters related to the operation of the school, 
36.7 	including budgeting, curriculum and operating procedures.
36.8 		Subd. 12.Pupils with a disability. A charter school must comply with sections 
36.9 	125A.02, 125A.03 to 125A.24, and 125A.65 and rules relating to the education of pupils 
36.10 	with a disability as though it were a district.
36.11 		Subd. 13.Length of school year. A charter school must provide instruction 
36.12 	each year for at least the number of days required by section 120A.41. It may provide 
36.13 	instruction throughout the year according to sections 124D.12 to 124D.127 or 124D.128.
36.14 		Subd. 14.Annual public reports. A charter school must report at least annually 
36.15 	to its sponsor authorizer and the commissioner the information required by the sponsor
36.16 	authorizer or the commissioner. The reports are public data under chapter 13.
36.17 		Subd. 15.Review and comment. (a) The department must review and comment on 
36.18 	the evaluation, by the sponsor, of the performance of a charter school before the charter 
36.19 	school's contract is renewed for another contract term. The sponsor must submit to the 
36.20 	commissioner timely information for the review and comment. The authorizer shall 
36.21 	provide a formal, written evaluation of the school's performance before the authorizer 
36.22 	renews the charter contract. The department must review and comment on the authorizer's 
36.23 	evaluation process at the time the authorizer submits its application for approval and each 
36.24 	time the authorizer undergoes its five-year review under subdivision 3.
36.25 	(b) A sponsor An authorizer shall monitor and evaluate the fiscal and student 
36.26 	performance of the school, and may for this purpose annually assess a charter school:(1) 
36.27 	in its first, second, or third year of operation up to $30 per student up to a maximum of 
36.28 	$10,000; and (2) in its fourth or a subsequent year of operation up to $10 per student up to 
36.29 	a maximum of $3,500 the greater of (1) $5,000, or (2) the lesser of (i) $25,000 or (ii) the 
36.30 	product of 1.0 percent of the basic formula allowance for that year and the charter school's 
36.31 	pupil units for that year in fiscal years 2010 through 2014. The authorizer may assess a 
36.32 	charter school the greater of (1) $5,000, or (2) the lesser of (i) $25,000 or (ii) the product 
36.33 	of 1.5 percent of the basic formula allowance for that year and the charter school's pupil 
36.34 	units for that year beginning in fiscal year 2015.
36.35 		Subd. 16.Transportation. (a) A charter school after its first fiscal year of operation 
36.36 	by March 1 of each fiscal year and a charter school by July 1 of its first fiscal year of 
37.1 	operation must notify the district in which the school is located and the Department of 
37.2 	Education if it will provide its own transportation or use the transportation services of the 
37.3 	district in which it is located for the fiscal year.
37.4 	(b) If a charter school elects to provide transportation for pupils, the transportation 
37.5 	must be provided by the charter school within the district in which the charter school is 
37.6 	located. The state must pay transportation aid to the charter school according to section 
37.7 	124D.11, subdivision 2.
37.8 	For pupils who reside outside the district in which the charter school is located, the 
37.9 	charter school is not required to provide or pay for transportation between the pupil's 
37.10 	residence and the border of the district in which the charter school is located. A parent 
37.11 	may be reimbursed by the charter school for costs of transportation from the pupil's 
37.12 	residence to the border of the district in which the charter school is located if the pupil is 
37.13 	from a family whose income is at or below the poverty level, as determined by the federal 
37.14 	government. The reimbursement may not exceed the pupil's actual cost of transportation 
37.15 	or 15 cents per mile traveled, whichever is less. Reimbursement may not be paid for 
37.16 	more than 250 miles per week.
37.17 	At the time a pupil enrolls in a charter school, the charter school must provide the 
37.18 	parent or guardian with information regarding the transportation.
37.19 	(c) If a charter school does not elect to provide transportation, transportation for 
37.20 	pupils enrolled at the school must be provided by the district in which the school is 
37.21 	located, according to sections 123B.88, subdivision 6, and 124D.03, subdivision 8, for a 
37.22 	pupil residing in the same district in which the charter school is located. Transportation 
37.23 	may be provided by the district in which the school is located, according to sections 
37.24 	123B.88, subdivision 6, and 124D.03, subdivision 8, for a pupil residing in a different 
37.25 	district. If the district provides the transportation, the scheduling of routes, manner and 
37.26 	method of transportation, control and discipline of the pupils, and any other matter relating 
37.27 	to the transportation of pupils under this paragraph shall be within the sole discretion, 
37.28 	control, and management of the district.
37.29 		Subd. 17.Leased space. A charter school may lease space from a board eligible to 
37.30 	be a sponsor an authorizer or other public or private nonprofit nonsectarian organization. 
37.31 	If a charter school is unable to lease appropriate space from an eligible board or other 
37.32 	public or private nonprofit nonsectarian organization, the school may lease space from 
37.33 	another nonsectarian organization if the Department of Education, in consultation with 
37.34 	the Department of Administration, approves the lease. If the school is unable to lease 
37.35 	appropriate space from public or private nonsectarian organizations, the school may lease 
37.36 	space from a sectarian organization if the leased space is constructed as a school facility 
38.1 	and the Department of Education, in consultation with the Department of Administration, 
38.2 	approves the lease.
38.3 		Subd. 18.Authority to raise initial working capital. A sponsor An authorizer
38.4 	may authorize a charter a school before the applicant has secured its space, equipment, 
38.5 	facilities, and personnel if the applicant indicates the authority is necessary for it to raise 
38.6 	working capital. A sponsor An authorizer may not authorize charter a school before the 
38.7 	commissioner has approved the authorization.
38.8 		Subd. 19.Disseminate information. The sponsor authorizer, the operators, and the 
38.9 	Department of Education must disseminate information to the public on how to form and 
38.10 	operate a charter school and how to utilize the offerings of a charter school. Particular 
38.11 	groups to be targeted include low-income families and communities, and students of color.
38.12 		Subd. 20.Leave to teach in a charter school. If a teacher employed by a district 
38.13 	makes a written request for an extended leave of absence to teach at a charter school, 
38.14 	the district must grant the leave. The district must grant a leave not to exceed a total of 
38.15 	five years. Any request to extend the leave shall be granted only at the discretion of the 
38.16 	school board. The district may require that the request for a leave or extension of leave 
38.17 	be made up to 90 days before the teacher would otherwise have to report for duty before 
38.18 	February 1 in the school year preceding the school year in which the teacher intends 
38.19 	to return, or February 1 of the calendar year in which the teacher's leave is scheduled 
38.20 	to terminate. Except as otherwise provided in this subdivision and except for section 
38.21 	122A.46, subdivision 7, the leave is governed by section 122A.46, including, but not 
38.22 	limited to, reinstatement, notice of intention to return, seniority, salary, and insurance.
38.23 	During a leave, the teacher may continue to aggregate benefits and credits in the 
38.24 	Teachers' Retirement Association account by paying both the employer and employee 
38.25 	contributions based upon the annual salary of the teacher for the last full pay period before 
38.26 	the leave began. The retirement association may impose reasonable requirements to 
38.27 	efficiently administer this subdivision.
38.28 		Subd. 21.Collective bargaining. Employees of the board of directors of a charter 
38.29 	school may, if otherwise eligible, organize under chapter 179A and comply with its 
38.30 	provisions. The board of directors of a charter school is a public employer, for the 
38.31 	purposes of chapter 179A, upon formation of one or more bargaining units at the school. 
38.32 	Bargaining units at the school must be separate from any other units within the sponsoring
38.33 	an authorizing district, except that bargaining units may remain part of the appropriate 
38.34 	unit within the sponsoring an authorizing district, if the employees of the school, the 
38.35 	board of directors of the school, the exclusive representative of the appropriate unit in the 
39.1 	sponsoring authorizing district, and the board of the sponsoring authorizing district agree 
39.2 	to include the employees in the appropriate unit of the sponsoring authorizing district.
39.3 		Subd. 22.Teacher and other employee retirement. (a) Teachers in a charter 
39.4 	school must be public school teachers for the purposes of chapters 354 and 354a.
39.5 	(b) Except for teachers under paragraph (a), employees in a charter school must be 
39.6 	public employees for the purposes of chapter 353.
39.7 		Subd. 23.Causes for nonrenewal or termination of charter school contract. (a) 
39.8 	The duration of the contract with a sponsor an authorizer must be for the term contained in 
39.9 	the contract according to subdivision 6. The sponsor authorizer may or may not renew a 
39.10 	contract at the end of the term for any ground listed in paragraph (b). A sponsor An 
39.11 	authorizer may unilaterally terminate a contract during the term of the contract for any 
39.12 	ground listed in paragraph (b). At least 60 days before not renewing or terminating a 
39.13 	contract, the sponsor authorizer shall notify the board of directors of the charter school 
39.14 	of the proposed action in writing. The notice shall state the grounds for the proposed 
39.15 	action in reasonable detail and that the charter school's board of directors may request 
39.16 	in writing an informal hearing before the sponsor within 14 days of receiving notice of 
39.17 	nonrenewal or termination of the contract. Failure by the board of directors to make a 
39.18 	written request for a hearing within the 14-day period shall be treated as acquiescence to 
39.19 	the proposed action. Upon receiving a timely written request for a hearing, the sponsor 
39.20 	shall give reasonable notice to the charter school's board of directors of the hearing date. 
39.21 	The sponsor authorizer shall conduct an informal hearing before taking final action. The 
39.22 	sponsor authorizer shall take final action to renew or not renew a contract by the last day 
39.23 	of classes in the school year. If the sponsor is a local board, the school's board of directors 
39.24 	may appeal the sponsor's decision to the commissioner no later than 30 days before the 
39.25 	proposed date for terminating the contract or the end date of the contract.
39.26 	(b) A contract may be terminated or not renewed upon any of the following grounds:
39.27 	(1) failure to meet the requirements for pupil performance contained in the contract;
39.28 	(2) failure to meet generally accepted standards of fiscal management;
39.29 	(3) violations of law; or
39.30 	(4) other good cause shown.
39.31 	If a contract is terminated or not renewed under this paragraph, the school must 
39.32 	be dissolved according to the applicable provisions of chapter 308A or 317A, except 
39.33 	when the commissioner approves the decision of a different eligible sponsor authorizer to 
39.34 	authorize the charter the school.
39.35 	(c) If at the end of a contract term, either the sponsor or authorizer and the charter 
39.36 	school board of directors wants mutually agree to voluntarily terminate not renew the 
40.1 	contract, a change in sponsors authorizers is allowed if the commissioner approves the 
40.2 	decision of a different eligible sponsor authorizer to authorize the charter the school. The 
40.3 	party intending to terminate the contract must notify the other party and the commissioner 
40.4 	of its intent at least 90 days before the date on which the contract ends. The sponsor
40.5 	authorizer that is a party to the existing contract at least must inform the approved any
40.6 	different eligible sponsor authorizer about the fiscal and student performance of the 
40.7 	school. The parties seeking to not renew the contract jointly must submit their intent in 
40.8 	writing to the commissioner at least 90 days before the end date of the contract. Before the 
40.9 	commissioner determines whether to grant a change of authorizer, the commissioner must 
40.10 	first determine whether the charter school and prospective new authorizer can identify and 
40.11 	effectively resolve any circumstances that caused the current authorizer and the charter 
40.12 	school to not renew the contract. If no different eligible sponsor authorizer is approved, 
40.13 	the school must be dissolved according to applicable law and the terms of the contract.
40.14 	(d) The commissioner, after providing reasonable notice to the board of directors of 
40.15 	a charter school and the existing sponsor authorizer, and after providing an opportunity for 
40.16 	a public hearing, may terminate the existing sponsorial relationship contract between the 
40.17 	authorizer and the charter school board if the charter school has a history of:
40.18 	(1) failure to meet pupil performance requirements contained in the contract;
40.19 	(2) financial mismanagement; or
40.20 	(2) repeated (3) violations of the law.
40.21 		Subd. 23a.Related party lease costs. (a) A charter school is prohibited from 
40.22 	entering a lease of real property with a related party as defined in subdivision 26, unless 
40.23 	the lessor is a nonprofit corporation under chapter 317A or a cooperative under chapter 
40.24 	308A, and the lease cost is reasonable under section 124D.11, subdivision 4, clause (1).
40.25 	(b) For purposes of this section and section 124D.11:
40.26 	(1) "related party" means an affiliate or close relative of the other party in question, 
40.27 	an affiliate of a close relative, or a close relative of an affiliate;
40.28 	(2) "affiliate" means a person that directly or indirectly, through one or more 
40.29 	intermediaries, controls, is controlled by, or is under common control with another person;
40.30 	(3) "close relative" means an individual whose relationship by blood, marriage, or 
40.31 	adoption to another individual is no more remote than first cousin;
40.32 	(4) "person" means an individual or entity of any kind; and
40.33 	(5) "control" means the ability to affect the management, operations, or policy 
40.34 	actions or decisions of a person, whether through ownership of voting securities, by 
40.35 	contract, or otherwise.
41.1 	(c) A lease of real property to be used for a charter school, not excluded in paragraph 
41.2 	(a), must contain the following statement: "This lease is subject to Minnesota Statutes, 
41.3 	section 124D.10, subdivision 23a."
41.4 	(c) (d) If a charter school enters into as lessee a lease with a related party and the 
41.5 	charter school subsequently closes, the commissioner has the right to recover from the 
41.6 	lessor any lease payments in excess of those that are reasonable under section 124D.11, 
41.7 	subdivision 4, clause (1).
41.8 		Subd. 24.Pupil enrollment upon nonrenewal or termination of charter school 
41.9 	contract. If a contract is not renewed or is terminated according to subdivision 23, a 
41.10 	pupil who attended the school, siblings of the pupil, or another pupil who resides in the 
41.11 	same place as the pupil may enroll in the resident district or may submit an application 
41.12 	to a nonresident district according to section 124D.03 at any time. Applications and 
41.13 	notices required by section 124D.03 must be processed and provided in a prompt manner. 
41.14 	The application and notice deadlines in section 124D.03 do not apply under these 
41.15 	circumstances. The closed charter school must transfer the student's educational records 
41.16 	within ten business days of closure to the student's school district of residence where the 
41.17 	records must be retained or transferred under section 120A.22, subdivision 7.
41.18 		Subd. 25.Extent of specific legal authority. (a) The board of directors of a charter 
41.19 	school may sue and be sued.
41.20 	(b) The board may not levy taxes or issue bonds.
41.21 	(c) The commissioner, a sponsor an authorizer, members of the board of a sponsor
41.22 	an authorizer in their official capacity, and employees of a sponsor are immune from civil 
41.23 	or criminal liability with respect to all activities related to a charter school they approve or 
41.24 	sponsor authorize. The board of directors shall obtain at least the amount of and types of 
41.25 	insurance required by the contract, according to subdivision 6. up to the applicable tort 
41.26 	liability limits under chapter 466. The charter school board must submit a copy of the 
41.27 	insurance policy to its authorizer and the commissioner before starting operations. The 
41.28 	charter school board must submit changes in its insurance carrier or policy to its authorizer 
41.29 	and the commissioner within 30 days of the change.
41.30 		Subd. 26.Definitions. For purposes of this section and section 124D.11:
41.31 	(1) A "Related party" is an affiliate or close relative of the other party in question, an 
41.32 	affiliate of a close relative, or a close relative of an affiliate.
41.33 	(2) "Affiliate" means a person that directly, or indirectly through one or more 
41.34 	intermediaries, controls, or is controlled by, or is under common control with, another 
41.35 	person.
42.1 	(3) "Close relative" means an individual whose relationship by blood, marriage, or 
42.2 	adoption to another individual is no more remote than first cousin.
42.3 	(4) "Person" means an individual or entity of any kind.
42.4 	(5) "Control" includes the terms "controlling," "controlled by," and "under common 
42.5 	control with" and means the possession, direct or indirect, of the power to direct or cause 
42.6 	the direction of the management, operations, or policies of a person, whether through the 
42.7 	ownership of voting securities, by contract, or otherwise.

42.8 	Sec. 18. Minnesota Statutes 2008, section 124D.11, subdivision 9, is amended to read:
42.9 		Subd. 9.Payment of aids to charter schools. (a) Notwithstanding section 
42.10 	127A.45, subdivision 3, aid payments for the current fiscal year to a charter school not in 
42.11 	its first year of operation shall be of an equal amount on each of the 23 24 payment dates. 
42.12 	A charter school in its first year of operation shall receive, on its first payment date, ten 
42.13 	percent of its cumulative amount guaranteed for the year and 22 payments of an equal 
42.14 	amount thereafter the sum of which shall equal the current year aid payment percentage 
42.15 	multiplied by the cumulative amount guaranteed.
42.16 	(b) Notwithstanding paragraph (a) and section 127A.45, for a charter school ceasing 
42.17 	operation on or prior to the end of a school year, the current year aid payment percentage 
42.18 	multiplied by the amount due for the school year may be paid to the school after audit 
42.19 	of prior fiscal year and current fiscal year pupil counts. June 30 of a school year, for the 
42.20 	payment periods occurring after the school has ceased serving students, the commissioner 
42.21 	shall withhold state aid due to the school based on estimated state aid entitlements. The 
42.22 	charter school board of directors and authorizer must provide the commissioner with 
42.23 	a closure plan under chapter 308A or 317A, and financial information that details the 
42.24 	school's liabilities and assets. After receiving the closure plan, financial information, an 
42.25 	audit of pupil counts, documentation of lease expenditures, and monitoring of special 
42.26 	education expenditures, the commissioner may release cash withheld and may continue 
42.27 	regular payments up to the current year payment percentages if further amounts are 
42.28 	owed. If, based on audits and monitoring, the school received state aid in excess of the 
42.29 	amount owed, the commissioner shall retain cash withheld sufficient to eliminate the aid 
42.30 	overpayment. For a charter school ceasing operations prior to, or at the end of, a school 
42.31 	year, notwithstanding section 127A.45, subdivision 3, preliminary final payments may 
42.32 	be made after receiving the closure plan, audit of pupil counts, monitoring of special 
42.33 	education expenditures, and documentation of lease expenditures, and school submission 
42.34 	of Uniform Financial Accounting and Reporting Standards (UFARS) financial data for 
43.1 	the final year of operation. Final payment may be made upon receipt of audited financial 
43.2 	statements under section 123B.77, subdivision 3.
43.3 	(c) If a charter school fails to comply with the commissioner's directive to return, for 
43.4 	cause, federal grant funds administered by the department or, within the timeline under 
43.5 	section 471.425, fails to pay a school district or service cooperative after receiving an 
43.6 	undisputed invoice for goods and services, the commissioner may withhold an amount 
43.7 	of state aid sufficient to satisfy the claim and shall distribute the withheld aid to the 
43.8 	school district, intermediate school district, or service cooperative. A school district, 
43.9 	intermediate school district, or education cooperative shall notify the commissioner when 
43.10 	a charter school fails to pay an undisputed invoice within 90 days of when it received 
43.11 	the original invoice.
43.12 	(d) Notwithstanding section 127A.45, subdivision 3, and paragraph (a), 80 percent 
43.13 	of the start-up cost aid under subdivision 8 shall be paid within 45 days after the first day 
43.14 	of student attendance for that school year. 
43.15 	(d) (e) In order to receive state aid payments under this subdivision, a charter school 
43.16 	in its first three years of operation must submit a school calendar in the form and manner 
43.17 	requested by the department and a quarterly report to the Department of Education. The 
43.18 	report must list each student by grade, show the student's start and end dates, if any, 
43.19 	with the charter school, and for any student participating in a learning year program, 
43.20 	the report must list the hours and times of learning year activities. The report must be 
43.21 	submitted not more than two weeks after the end of the calendar quarter to the department. 
43.22 	The department must develop a Web-based reporting form for charter schools to use 
43.23 	when submitting enrollment reports. A charter school in its fourth and subsequent year of 
43.24 	operation must submit a school calendar and enrollment information to the department in 
43.25 	the form and manner requested by the department.
43.26 	(e) (f) Notwithstanding sections 317A.701 to 317A.791, upon closure of a charter 
43.27 	school and satisfaction of creditors, cash and investment balances remaining shall be 
43.28 	returned to the state.

43.29 	Sec. 19. Minnesota Statutes 2008, section 124D.128, subdivision 2, is amended to read:
43.30 		Subd. 2.Commissioner designation. (a) An area learning center A state-approved 
43.31 	alternative program designated by the state must be a site. An area learning center A 
43.32 	state-approved alternative program must provide services to students who meet the criteria 
43.33 	in section 124D.68 and who are enrolled in:
43.34 	(1) a district that is served by the center state-approved alternative program; or
44.1 	(2) a charter school located within the geographic boundaries of a district that is 
44.2 	served by the center state-approved alternative program.
44.3 	(b) A school district or charter school may be approved biennially by the state to 
44.4 	provide additional instructional programming that results in grade level acceleration. The 
44.5 	program must be designed so that students make grade progress during the school year 
44.6 	and graduate prior to the students' peers.
44.7 	(c) To be designated, a district, charter school, or center state-approved alternative 
44.8 	program must demonstrate to the commissioner that it will:
44.9 	(1) provide a program of instruction that permits pupils to receive instruction 
44.10 	throughout the entire year; and
44.11 	(2) develop and maintain a separate record system that, for purposes of section 
44.12 	126C.05, permits identification of membership attributable to pupils participating in the 
44.13 	program. The record system and identification must ensure that the program will not have 
44.14 	the effect of increasing the total average daily membership attributable to an individual 
44.15 	pupil as a result of a learning year program. The record system must include the date the 
44.16 	pupil originally enrolled in a learning year program, the pupil's grade level, the date of 
44.17 	each grade promotion, the average daily membership generated in each grade level, the 
44.18 	number of credits or standards earned, and the number needed to graduate. 
44.19 	(d) A student who has not completed a school district's graduation requirements 
44.20 	may continue to enroll in courses the student must complete in order to graduate until 
44.21 	the student satisfies the district's graduation requirements or the student is 21 years old, 
44.22 	whichever comes first.

44.23 	Sec. 20. Minnesota Statutes 2008, section 124D.128, subdivision 3, is amended to read:
44.24 		Subd. 3.Student planning. A district, charter school, or area learning center
44.25 	state-approved alternative program must inform all pupils and their parents about the 
44.26 	learning year program and that participation in the program is optional. A continual 
44.27 	learning plan must be developed at least annually for each pupil with the participation 
44.28 	of the pupil, parent or guardian, teachers, and other staff; each participant must sign and 
44.29 	date the plan. The plan must specify the learning experiences that must occur during the 
44.30 	entire fiscal year and are necessary for grade progression or, for secondary students, 
44.31 	graduation. The plan must include:
44.32 	(1) the pupil's learning objectives and experiences, including courses or credits the 
44.33 	pupil plans to complete each year and, for a secondary pupil, the graduation requirements 
44.34 	the student must complete;
44.35 	(2) the assessment measurements used to evaluate a pupil's objectives;
45.1 	(3) requirements for grade level or other appropriate progression; and
45.2 	(4) for pupils generating more than one average daily membership in a given grade, 
45.3 	an indication of which objectives were unmet.
45.4 	The plan may be modified to conform to district schedule changes. The district may 
45.5 	not modify the plan if the modification would result in delaying the student's time of 
45.6 	graduation.

45.7 	Sec. 21. Minnesota Statutes 2008, section 124D.68, subdivision 2, is amended to read:
45.8 		Subd. 2.Eligible pupils. A pupil under the age of 21 or who meets the requirements 
45.9 	of section 120A.20, subdivision 1, paragraph (c), is eligible to participate in the graduation 
45.10 	incentives program, if the pupil:
45.11 	(1) performs substantially below the performance level for pupils of the same age 
45.12 	in a locally determined achievement test;
45.13 	(2) is at least one year behind in satisfactorily completing coursework or obtaining 
45.14 	credits for graduation;
45.15 	(3) is pregnant or is a parent;
45.16 	(4) has been assessed as chemically dependent;
45.17 	(5) has been excluded or expelled according to sections 121A.40 to 121A.56;
45.18 	(6) has been appropriately referred in accordance with section 124D.68, subdivision 
45.19 	1, by a school district for enrollment in an eligible program or a program pursuant to 
45.20 	section 124D.69;
45.21 	(7) is a victim of physical or sexual abuse;
45.22 	(8) has experienced mental health problems;
45.23 	(9) has experienced homelessness sometime within six months before requesting a 
45.24 	transfer to an eligible program;
45.25 	(10) speaks English as a second language or has limited English proficiency; or
45.26 	(11) has withdrawn from school or has been chronically truant; or
45.27 	(12) is being treated in a hospital in the seven-county metropolitan area for cancer or 
45.28 	other life threatening illness or is the sibling of an eligible pupil who is being currently 
45.29 	treated, and resides with the pupil's family at least 60 miles beyond the outside boundary 
45.30 	of the seven-county metropolitan area.

45.31 	Sec. 22. Minnesota Statutes 2008, section 124D.68, subdivision 3, is amended to read:
45.32 		Subd. 3.Eligible programs. (a) A pupil who is eligible according to subdivision 2 
45.33 	may enroll in area learning centers a state-approved alternative program under sections 
45.34 	123A.05 to 123A.08. 
46.1 	(b) A pupil who is eligible according to subdivision 2 and who is between the ages 
46.2 	of 16 and 21 a high school junior or senior may enroll in postsecondary courses under 
46.3 	section 124D.09. 
46.4 	(c) A pupil who is eligible under subdivision 2, may enroll in any public elementary 
46.5 	or secondary education program. 
46.6 	(d) A pupil who is eligible under subdivision 2, may enroll in any nonpublic, 
46.7 	nonsectarian school that has contracted with the serving school district to provide 
46.8 	educational services. However, notwithstanding other provisions of this section, only a 
46.9 	pupil who is eligible under subdivision 2, clause (12), may enroll in a contract alternative 
46.10 	school that is specifically structured to provide educational services to such a pupil.
46.11 	(e) A pupil who is between the ages of 16 and 21 may enroll in any adult basic 
46.12 	education programs approved under section 124D.52 and operated under the community 
46.13 	education program contained in section 124D.19. 

46.14 	Sec. 23. Minnesota Statutes 2008, section 124D.68, subdivision 4, is amended to read:
46.15 		Subd. 4.Additional eligible program. A pupil who is at least 16 years of age, 
46.16 	who is eligible under subdivision 2, clause (a), and who has been enrolled only in a 
46.17 	public school, if the pupil has been enrolled in any school, during the year immediately 
46.18 	before transferring under this subdivision, may transfer to any nonpublic school that has 
46.19 	contracted with the serving school district to provide nonsectarian educational services. 
46.20 	The school must enroll every eligible pupil who seeks to transfer to the school under 
46.21 	this program subject to available space.

46.22 	Sec. 24. Minnesota Statutes 2008, section 124D.68, subdivision 5, is amended to read:
46.23 		Subd. 5.Pupil enrollment. Any eligible pupil may apply to enroll in an eligible 
46.24 	program. Approval of the resident district is not required for:
46.25 	(1) an eligible pupil to enroll in any eligible program in a nonresident district 
46.26 	under subdivision 3 or 4 or an area learning center a state-approved alternative program
46.27 	established under section 123A.05; or  
46.28 	(2) an eligible pupil under subdivision 2, to enroll in an adult basic education 
46.29 	program approved under section 124D.52.  

46.30 	Sec. 25. Minnesota Statutes 2008, section 125A.15, is amended to read:
46.31 	125A.15 PLACEMENT IN ANOTHER DISTRICT; RESPONSIBILITY.
47.1 	The responsibility for special instruction and services for a child with a disability 
47.2 	temporarily placed in another district for care and treatment shall be determined in the 
47.3 	following manner:
47.4 	(a) The district of residence of a child shall be the district in which the child's parent 
47.5 	resides, if living, or the child's guardian, or the district designated by the commissioner if 
47.6 	neither parent nor guardian is living within the state.
47.7 	(b) If a district other than the resident district places a pupil for care and treatment, 
47.8 	the district placing the pupil must notify and give the resident district an opportunity to 
47.9 	participate in the placement decision. When an immediate emergency placement of a 
47.10 	pupil is necessary and time constraints foreclose a resident district from participating in 
47.11 	the emergency placement decision, the district in which the pupil is temporarily placed 
47.12 	must notify the resident district of the emergency placement within 15 days. The resident 
47.13 	district has up to five business days after receiving notice of the emergency placement 
47.14 	to request an opportunity to participate in the placement decision, which the placing 
47.15 	district must then provide.
47.16 	(c) When a child is temporarily placed for care and treatment in a day program 
47.17 	located in another district and the child continues to live within the district of residence 
47.18 	during the care and treatment, the district of residence is responsible for providing 
47.19 	transportation to and from the care and treatment facilityprogram and an appropriate 
47.20 	educational program for the child. The resident district may establish reasonable 
47.21 	restrictions on transportation, except if a Minnesota court or agency orders the child 
47.22 	placed at a day care and treatment program and the resident district receives a copy of 
47.23 	the order, then the resident district must provide transportation to and from the program 
47.24 	unless the court or agency orders otherwise. Transportation shall only be provided by the 
47.25 	resident district during regular operating hours of the resident district. The resident district 
47.26 	may provide the educational program at a school within the district of residence, at the 
47.27 	child's residence, or in the district in which the day treatment center is located by paying 
47.28 	tuition to that district.
47.29 	(c) (d) When a child is temporarily placed in a residential program for care and 
47.30 	treatment, the nonresident district in which the child is placed is responsible for providing 
47.31 	an appropriate educational program for the child and necessary transportation while the 
47.32 	child is attending the educational program; and must bill the district of the child's residence 
47.33 	for the actual cost of providing the program, as outlined in section 125A.11, except as 
47.34 	provided in paragraph (d) (e). However, the board, lodging, and treatment costs incurred 
47.35 	in behalf of a child with a disability placed outside of the school district of residence by 
47.36 	the commissioner of human services or the commissioner of corrections or their agents, 
48.1 	for reasons other than providing for the child's special educational needs must not become 
48.2 	the responsibility of either the district providing the instruction or the district of the child's 
48.3 	residence. For the purposes of this section, the state correctional facilities operated on a 
48.4 	fee-for-service basis are considered to be residential programs for care and treatment.  
48.5 	(d) (e) A privately owned and operated residential facility may enter into a contract 
48.6 	to obtain appropriate educational programs for special education children and services 
48.7 	with a joint powers entity. The entity with which the private facility contracts for special 
48.8 	education services shall be the district responsible for providing students placed in that 
48.9 	facility an appropriate educational program in place of the district in which the facility is 
48.10 	located. If a privately owned and operated residential facility does not enter into a contract 
48.11 	under this paragraph, then paragraph (c) (d) applies.
48.12 	(e) (f) The district of residence shall pay tuition and other program costs, not 
48.13 	including transportation costs, to the district providing the instruction and services. 
48.14 	The district of residence may claim general education aid for the child as provided by 
48.15 	law. Transportation costs must be paid by the district responsible for providing the 
48.16 	transportation and the state must pay transportation aid to that district.

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

48.18 	Sec. 26. Minnesota Statutes 2008, section 125A.51, is amended to read:
48.19 	125A.51 PLACEMENT OF CHILDREN WITHOUT DISABILITIES; 
48.20 	EDUCATION AND TRANSPORTATION.
48.21 	The responsibility for providing instruction and transportation for a pupil without a 
48.22 	disability who has a short-term or temporary physical or emotional illness or disability, as 
48.23 	determined by the standards of the commissioner, and who is temporarily placed for care 
48.24 	and treatment for that illness or disability, must be determined as provided in this section.
48.25 	(a) The school district of residence of the pupil is the district in which the pupil's 
48.26 	parent or guardian resides.
48.27 	(b) When parental rights have been terminated by court order, the legal residence 
48.28 	of a child placed in a residential or foster facility for care and treatment is the district in 
48.29 	which the child resides.
48.30 	(c) Before the placement of a pupil for care and treatment, the district of residence 
48.31 	must be notified and provided an opportunity to participate in the placement decision. 
48.32 	When an immediate emergency placement is necessary and time does not permit 
48.33 	resident district participation in the placement decision, the district in which the pupil is 
48.34 	temporarily placed, if different from the district of residence, must notify the district 
49.1 	of residence of the emergency placement within 15 days of the placement. When a 
49.2 	nonresident district makes an emergency placement without first consulting with the 
49.3 	resident district, the resident district has up to five business days after receiving notice 
49.4 	of the emergency placement to request an opportunity to participate in the placement 
49.5 	decision, which the placing district must then provide.
49.6 	(d) When a pupil without a disability is temporarily placed for care and treatment 
49.7 	in a day program and the pupil continues to live within the district of residence during 
49.8 	the care and treatment, the district of residence must provide instruction and necessary 
49.9 	transportation to and from the care and treatment facilityprogram for the pupil. The 
49.10 	resident district may establish reasonable restrictions on transportation, except if a 
49.11 	Minnesota court or agency orders the child placed at a day care and treatment program 
49.12 	and the resident district receives a copy of the order, then the resident district must provide 
49.13 	transportation to and from the program unless the court or agency orders otherwise. 
49.14 	Transportation shall only be provided by the resident district during regular operating 
49.15 	hours of the resident district. The resident district may provide the instruction at a school 
49.16 	within the district of residence, at the pupil's residence, or in the case of a placement 
49.17 	outside of the resident district, in the district in which the day treatment program is located 
49.18 	by paying tuition to that district. The district of placement may contract with a facility to 
49.19 	provide instruction by teachers licensed by the state Board of Teaching.
49.20 	(e) When a pupil without a disability is temporarily placed in a residential program 
49.21 	for care and treatment, the district in which the pupil is placed must provide instruction 
49.22 	for the pupil and necessary transportation while the pupil is receiving instruction, and in 
49.23 	the case of a placement outside of the district of residence, the nonresident district must 
49.24 	bill the district of residence for the actual cost of providing the instruction for the regular 
49.25 	school year and for summer school, excluding transportation costs.
49.26 	(f) Notwithstanding paragraph (e), if the pupil is homeless and placed in a public or 
49.27 	private homeless shelter, then the district that enrolls the pupil under section 127A.47, 
49.28 	subdivision 2, shall provide the transportation, unless the district that enrolls the pupil 
49.29 	and the district in which the pupil is temporarily placed agree that the district in which 
49.30 	the pupil is temporarily placed shall provide transportation. When a pupil without a 
49.31 	disability is temporarily placed in a residential program outside the district of residence, 
49.32 	the administrator of the court placing the pupil must send timely written notice of the 
49.33 	placement to the district of residence. The district of placement may contract with a 
49.34 	residential facility to provide instruction by teachers licensed by the state Board of 
49.35 	Teaching. For purposes of this section, the state correctional facilities operated on a 
49.36 	fee-for-service basis are considered to be residential programs for care and treatment.
50.1 	(g) The district of residence must include the pupil in its residence count of pupil 
50.2 	units and pay tuition as provided in section 123A.488 to the district providing the 
50.3 	instruction. Transportation costs must be paid by the district providing the transportation 
50.4 	and the state must pay transportation aid to that district. For purposes of computing state 
50.5 	transportation aid, pupils governed by this subdivision must be included in the disabled 
50.6 	transportation category if the pupils cannot be transported on a regular school bus route 
50.7 	without special accommodations.

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

50.9 	Sec. 27. Minnesota Statutes 2008, section 126C.05, subdivision 15, is amended to read:
50.10 		Subd. 15.Learning year pupil units. (a) When a pupil is enrolled in a learning 
50.11 	year program under section 124D.128, an area learning center or an alternative learning 
50.12 	program approved by the commissioner under sections 123A.05 and 123A.06, an 
50.13 	alternative program approved by the commissioner, or a contract alternative program 
50.14 	under section 124D.68, subdivision 3, paragraph (d), or subdivision 3a, for more than 
50.15 	1,020 hours in a school year for a secondary student, more than 935 hours in a school year 
50.16 	for an elementary student, or more than 425 hours in a school year for a kindergarten 
50.17 	student without a disability, that pupil may be counted as more than one pupil in average 
50.18 	daily membership for purposes of section 126C.10, subdivision 2a. The amount in excess 
50.19 	of one pupil must be determined by the ratio of the number of hours of instruction 
50.20 	provided to that pupil in excess of: (i) the greater of 1,020 hours or the number of hours 
50.21 	required for a full-time secondary pupil in the district to 1,020 for a secondary pupil; (ii) 
50.22 	the greater of 935 hours or the number of hours required for a full-time elementary pupil 
50.23 	in the district to 935 for an elementary pupil in grades 1 through 6; and (iii) the greater of 
50.24 	425 hours or the number of hours required for a full-time kindergarten student without a 
50.25 	disability in the district to 425 for a kindergarten student without a disability. Hours that 
50.26 	occur after the close of the instructional year in June shall be attributable to the following 
50.27 	fiscal year. A kindergarten student must not be counted as more than 1.2 pupils in average 
50.28 	daily membership under this subdivision. A student in grades 1 through 12 must not be 
50.29 	counted as more than 1.2 pupils in average daily membership under this subdivision. 
50.30 	(b)(i) To receive general education revenue for a pupil in an area learning center 
50.31 	or alternative learning program that has an independent study component, a district 
50.32 	must meet the requirements in this paragraph. The district must develop, for the pupil, 
50.33 	a continual learning plan consistent with section 124D.128, subdivision 3. Each school 
50.34 	district that has a state-approved public an area learning center or alternative learning 
50.35 	program must reserve revenue in an amount equal to at least 90 percent of the district 
51.1 	average general education revenue per pupil unit less compensatory revenue per pupil 
51.2 	unit, minus an amount equal to the product of the formula allowance according to section 
51.3 	126C.10, subdivision 2, times .0485, calculated without basic skills and transportation 
51.4 	sparsity revenue, times the number of pupil units generated by students attending a 
51.5 	state-approved public an area learning center or alternative learning program. The amount 
51.6 	of reserved revenue available under this subdivision may only be spent for program costs 
51.7 	associated with the state-approved public area learning center or alternative learning 
51.8 	program. Compensatory revenue must be allocated according to section 126C.15, 
51.9 	subdivision 2.Basic skills revenue generated by pupils attending the eligible program 
51.10 	must be allocated according to section 126C.10, subdivision 4.
51.11 	(ii) General education revenue for a pupil in an approved a state-approved
51.12 	alternative program without an independent study component must be prorated for a 
51.13 	pupil participating for less than a full year, or its equivalent. The district must develop a 
51.14 	continual learning plan for the pupil, consistent with section 124D.128, subdivision 3. 
51.15 	Each school district that has a state-approved public an area learning center or alternative 
51.16 	learning program must reserve revenue in an amount equal to at least 90 percent of the 
51.17 	district average general education revenue per pupil unit less compensatory revenue per 
51.18 	pupil unit, minus an amount equal to the product of the formula allowance according 
51.19 	to section 126C.10, subdivision 2, times .0485, calculated without basic skills and 
51.20 	transportation sparsity revenue, times the number of pupil units generated by students 
51.21 	attending a state-approved public an area learning center or alternative learning program. 
51.22 	The amount of reserved revenue available under this subdivision may only be spent for 
51.23 	program costs associated with the state-approved public area learning center or alternative 
51.24 	learning program. Compensatory revenue must be allocated according to section 126C.15, 
51.25 	subdivision 2. Basic skills revenue generated by pupils attending the eligible program 
51.26 	must be allocated according to section 126C.10, subdivision 4.
51.27 	(iii) General education revenue for a pupil in ana state-approved alternative program 
51.28 	that has an independent study component must be paid for each hour of teacher contact 
51.29 	time and each hour of independent study time completed toward a credit or graduation 
51.30 	standards necessary for graduation. Average daily membership for a pupil shall equal the 
51.31 	number of hours of teacher contact time and independent study time divided by 1,020.
51.32 	(iv) For an a state-approved alternative program having an independent study 
51.33 	component, the commissioner shall require a description of the courses in the program, the 
51.34 	kinds of independent study involved, the expected learning outcomes of the courses, and 
51.35 	the means of measuring student performance against the expected outcomes.

52.1 	Sec. 28. Minnesota Statutes 2008, section 126C.05, subdivision 20, is amended to read:
52.2 		Subd. 20.Project-based average daily membership. (a) Project-based is an 
52.3 	instructional program where students complete coursework for credit at an individual pace 
52.4 	that is primarily student-led and may be completed on site, in the community, or online. 
52.5 	A project-based program may be made available to all or selected students and grades 
52.6 	in a school. To receive general education revenue for a pupil enrolled in a public school 
52.7 	with a project-based program, a school must meet the requirements in this paragraph. 
52.8 	The school must:
52.9 	(1) register with the commissioner as a project-based program by May 30 of the 
52.10 	preceding fiscal year apply and receive approval from the commissioner as a project-based 
52.11 	program at least 90 days prior to starting the program;
52.12 	(2) provide a minimum teacher contact of no less than one hour per week per 
52.13 	project-based credit for each pupil;
52.14 	(3) ensure that the program will not increase the total average daily membership 
52.15 	generated by the student and that there will be the expectation that the students will be 
52.16 	making typical progression towards high school graduation;
52.17 	(3) (4) maintain a record system that shows when each credit or portion thereof was 
52.18 	reported for membership for each pupil; and
52.19 	(4) (5) report pupil membership consistent with paragraph (b).
52.20 	(b) The commissioner must develop a formula for reporting pupil membership to 
52.21 	compute average daily membership for each registeredapproved project-based school
52.22 	program. Average daily membership for a pupil in a registeredan approved project-based 
52.23 	program is the lesser of:
52.24 	(1) 1.0; or
52.25 	(2) the ratio of (i) the number of membership hours generated by project-based 
52.26 	credits completed during the school year plus membership hours generated by credits 
52.27 	completed in a seat-based setting to (ii) the annual required instructional hours at that 
52.28 	grade level. Membership hours for a partially completed project-based credit must be 
52.29 	prorated. General education revenue for a pupil in a project-based program must be 
52.30 	prorated for a pupil participating for less than a full year, or its equivalent.
52.31 	(c) For a program that has not been approved by the commissioner for project-based 
52.32 	learning but an auditor or other site visit deems that any portion or credits awarded by the 
52.33 	school are project-based, student membership must be computed per paragraph (b).

52.34 	Sec. 29. REVIVAL AND REENACTMENT.
 53.1 	Minnesota Statutes, section 124D.095, subdivision 10, is revived and reenacted 
53.2 	effective retroactively and without interruption from June 30, 2008.

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

53.4 	Sec. 30. REVIVAL AND REENACTMENT.
 53.5 	Minnesota Statutes, section 124D.10, subdivision 2a, is revived and reenacted 
53.6 	effective retroactively and without interruption from June 30, 2007.

53.7 	ARTICLE 3
53.8 	SPECIAL PROGRAMS

53.9 	Section 1. Minnesota Statutes 2008, section 124D.60, subdivision 1, is amended to 
53.10 	read:
53.11 		Subdivision 1.Notice. Within ten30 days after the enrollment of any pupil in an 
53.12 	instructional program for limited English proficient students, the district in which the pupil 
53.13 	resides must notify the parent by mail. This notice must:
53.14 	(1) be in writing in English and in the primary language of the pupil's parents;
53.15 	(2) inform the parents that their child has been enrolled in an instructional program 
53.16 	for limited English proficient students;
53.17 	(3) contain a simple, nontechnical description of the purposes, method and content 
53.18 	of the program;
53.19 	(4) inform the parents that they have the right to visit the educational program for 
53.20 	limited English proficient students in which their child is enrolled;
53.21 	(5) inform the parents of the time and manner in which to request and receive a 
53.22 	conference for the purpose of explaining the nature and purpose of the program; and
53.23 	(6) inform the parents of their rights to withdraw their child from an educational 
53.24 	program for limited English proficient students and the time and manner in which to do so.
53.25 	The department shall, at the request of the district, prepare the notice in the primary 
53.26 	language of the parent.

53.27 	Sec. 2. Minnesota Statutes 2008, section 125A.28, is amended to read:
53.28 	125A.28 STATE INTERAGENCY COORDINATING COUNCIL.
53.29 	An Interagency Coordinating Council of at least 17, but not more than 25 members 
53.30 	is established, in compliance with Public Law  108-446, section  641. The members 
53.31 	must be appointed by the governor. Council members must elect the council chair. The 
53.32 	representative of the commissioner may not serve as the chair. The council must be 
54.1 	composed of at least five parents, including persons of color, of children with disabilities 
54.2 	under age 12, including at least three parents of a child with a disability under age seven, 
54.3 	five representatives of public or private providers of services for children with disabilities 
54.4 	under age five, including a special education director, county social service director, 
54.5 	local Head Start director, and a community health services or public health nursing 
54.6 	administrator, one member of the senate, one member of the house of representatives, one 
54.7 	representative of teacher preparation programs in early childhood-special education or 
54.8 	other preparation programs in early childhood intervention, at least one representative of 
54.9 	advocacy organizations for children with disabilities under age five, one physician who 
54.10 	cares for young children with special health care needs, one representative each from the 
54.11 	commissioners of commerce, education, health, human services, a representative from the 
54.12 	state agency responsible for child care, foster care, mental health, homeless coordinator 
54.13 	of education of homeless children and youth, and a representative from Indian health 
54.14 	services or a tribal council. Section 15.059, subdivisions 2 to 5, apply to the council. 
54.15 	The council must meet at least quarterly.
54.16 	The council must address methods of implementing the state policy of developing 
54.17 	and implementing comprehensive, coordinated, multidisciplinary interagency programs of 
54.18 	early intervention services for children with disabilities and their families.
54.19 	The duties of the council include recommending policies to ensure a comprehensive 
54.20 	and coordinated system of all state and local agency services for children under age five 
54.21 	with disabilities and their families. The policies must address how to incorporate each 
54.22 	agency's services into a unified state and local system of multidisciplinary assessment 
54.23 	practices, individual intervention plans, comprehensive systems to find children in need of 
54.24 	services, methods to improve public awareness, and assistance in determining the role of 
54.25 	interagency early intervention committees.
54.26 	On the date that Minnesota Part C Annual Performance Report is submitted to the 
54.27 	federal Office of Special Education, the council must recommend to the governor and the 
54.28 	commissioners of education, health, human services, commerce, and employment and 
54.29 	economic development policies for a comprehensive and coordinated system.
54.30 	Notwithstanding any other law to the contrary, the State Interagency Coordinating 
54.31 	Council expires on June 30, 2009 2014.

54.32 	Sec. 3. Minnesota Statutes 2008, section 125A.69, is amended by adding a subdivision 
54.33 	to read:
54.34 		Subd. 1a.Trial placement. A parent may apply for a child who meets state 
54.35 	disability entrance criteria for being deaf, hard of hearing, blind, or visually impaired and 
55.1 	resides within the state of Minnesota. Upon completion of the application process, the 
55.2 	child may attend the academies for a 60-day trial placement. At the conclusion of the trial 
55.3 	placement, a meeting with academies staff and the parent will occur to determine if the 
55.4 	academies are the appropriate placement.

55.5 	Sec. 4. Minnesota Statutes 2008, section 125A.744, subdivision 3, is amended to read:
55.6 		Subd. 3.Implementation. Consistent with section 256B.0625, subdivision 26, 
55.7 	school districts may enroll as medical assistance providers or subcontractors and bill 
55.8 	the Department of Human Services under the medical assistance fee for service claims 
55.9 	processing system for special education services which are covered services under chapter 
55.10 	256B, which are provided in the school setting for a medical assistance recipient, and for 
55.11 	whom the district has secured informed consent consistent with section 13.05, subdivision 
55.12 	4, paragraph (d), and section 256B.77, subdivision 2, paragraph (p), to bill for each type 
55.13 	of covered service. School districts shall be reimbursed by the commissioner of human 
55.14 	services for the federal share of individual education plan health-related services that 
55.15 	qualify for reimbursement by medical assistance, minus up to five percent retained by the 
55.16 	commissioner of human services for administrative costs, not to exceed $350,000 per 
55.17 	fiscal year. The commissioner may withhold up to five percent of each payment to a 
55.18 	school district. Following the end of each fiscal year, the commissioner shall settle up with 
55.19 	each school district in order to ensure that collections from each district for departmental 
55.20 	administrative costs are made on a pro rata basis according to federal earnings for these 
55.21 	services in each district. A school district is not eligible to enroll as a home care provider 
55.22 	or a personal care provider organization for purposes of billing home care services under 
55.23 	sections 256B.0651 and 256B.0653 to 256B.0656 until the commissioner of human 
55.24 	services issues a bulletin instructing county public health nurses on how to assess for the 
55.25 	needs of eligible recipients during school hours. To use private duty nursing services or 
55.26 	personal care services at school, the recipient or responsible party must provide written 
55.27 	authorization in the care plan identifying the chosen provider and the daily amount 
55.28 	of services to be used at school.

55.29 	ARTICLE 4
55.30 	LIBRARIES

55.31 	Section 1. Minnesota Statutes 2008, section 134.31, subdivision 4a, is amended to read:
55.32 		Subd. 4a.Services to the blind and physically handicapped people with visual 
55.33 	and physical disabilities. The Minnesota Department of Education shall provide 
55.34 	specialized services to the blind and physically handicapped people with visual and 
56.1 	physical disabilities through the Minnesota Braille and Talking Book Library for the Blind 
56.2 	and Physically Handicapped under a cooperative plan with the National Library Services 
56.3 	for the Blind and Physically Handicapped of the Library of Congress.

56.4 	Sec. 2. Minnesota Statutes 2008, section 134.31, is amended by adding a subdivision 
56.5 	to read:
56.6 		Subd. 7.Telephone or electronic meetings. (a) Notwithstanding section 13D.01, 
56.7 	the Advisory Committee for the Minnesota Braille and Talking Book Library may conduct 
56.8 	a meeting of its members by telephone or other electronic means so long as the following 
56.9 	conditions are met:
56.10 	(1) all members of the committee participating in the meeting, wherever their 
56.11 	physical locations, can hear one another and can hear all discussion and testimony;
56.12 	(2) members of the public present at the regular meeting location of the committee 
56.13 	can hear all discussion, testimony, and votes of the members of the committee;
56.14 	(3) at least one member of the committee is physically present at the regular meeting 
56.15 	location; and
56.16 	(4) all votes are conducted by roll call, so each member's vote on each issue can be 
56.17 	identified and recorded.
56.18 	(b) Each member of the committee participating in a meeting by telephone or other 
56.19 	electronic means is considered present at the meeting for purposes of determining quorum 
56.20 	and participating in all proceedings.
56.21 	(c) If telephone or other electronic means is used to conduct a meeting, to the extent 
56.22 	practical, the committee shall allow a person to monitor the meeting electronically from a 
56.23 	remote location. The committee may require the person making the connection to pay 
56.24 	for the documented additional costs that the committee incurs as a result of the additional 
56.25 	connection.
56.26 	(d) If telephone or other electronic means is used to conduct a regular, special, or 
56.27 	emergency meeting, the committee shall provide notice of the regular meeting location, 
56.28 	the fact that some members may participate by telephone or other electronic means, and 
56.29 	the provisions of paragraph (c). The timing and method of providing notice is governed 
56.30 	by section 13D.04.

56.31 	ARTICLE 5
56.32 	SELF-SUFFICIENCY AND LIFELONG LEARNING

56.33 	Section 1. Minnesota Statutes 2008, section 124D.135, subdivision 3, is amended to 
56.34 	read:
57.1 		Subd. 3.Early childhood family education levy. (a) By September 30 of each 
57.2 	year, the commissioner shall establish a tax rate for early childhood family education 
57.3 	revenue that raises $22,135,000 in each fiscal year. If the amount of the early childhood 
57.4 	family education levy would exceed the early childhood family education revenue, the 
57.5 	early childhood family education levy must equal the early childhood family education 
57.6 	revenue. Beginning with levies for fiscal year 2011, a district may not certify an early 
57.7 	childhood family education levy unless it has met the annual program data reporting and 
57.8 	biennial plan requirements under section 124D.13, subdivision 13.
57.9 	(b) Notwithstanding paragraph (a), for fiscal year 2009 only, the commissioner shall 
57.10 	establish a tax rate for early education revenue that raises $13,565,000.

57.11 	Sec. 2. [124D.145] EARLY LEARNING SYSTEM.
57.12 	The early learning system is defined to be the coherent structure of 
57.13 	research-based curriculum content, instructional practice, program and child assessment, 
57.14 	performance-based child and programmatic standards, professional development, 
57.15 	engagement and outreach, accountability, financing, and governance efforts that contribute 
57.16 	to all aspects of children's development and to prepare all children for kindergarten. This 
57.17 	includes children's readiness for success in meeting Minnesota's kindergarten academic 
57.18 	standards under section 120B.021. The system is delivered through a variety of public and 
57.19 	private child care, preschool, Head Start, and school-based programs and services.

57.20 	Sec. 3. Minnesota Statutes 2008, section 124D.15, subdivision 1, is amended to read:
57.21 		Subdivision 1.Establishment; purpose. A district or a group of districts may 
57.22 	establish a school readiness program for children age three to kindergarten entrance. 
57.23 	The purpose of a school readiness program is to prepare children to enter kindergarten, 
57.24 	especially children most at-risk for being unprepared for kindergarten.

57.25 	Sec. 4. Minnesota Statutes 2008, section 124D.15, subdivision 3, is amended to read:
57.26 		Subd. 3.Program requirements. A school readiness program provider must:
57.27 	(1) assess each child's cognitive skills with a comprehensive child assessment 
57.28 	instrument when the child enters and again before the child leaves the program to inform 
57.29 	program planning and parents and promote kindergarten readiness;
57.30 	(2) provide comprehensive program content and intentional instructional practice 
57.31 	aligned with the state early childhood learning guidelines and kindergarten standards and 
57.32 	based on early childhood research and professional practice that is focused on children's 
58.1 	cognitive, social, emotional, and physical skills and development and prepares children 
58.2 	for the transition to kindergarten, including early literacy skills;
58.3 	(3) coordinate appropriate kindergarten transition with parents and kindergarten 
58.4 	teachers;
58.5 	(3) (4) arrange for early childhood screening and appropriate referral;
58.6 	(4) (5) involve parents in program planning and decision making;
58.7 	(5) (6) coordinate with relevant community-based services; and
58.8 	(6) (7) cooperate with adult basic education programs and other adult literacy 
58.9 	programs.;
58.10 	(8) ensure staff-child ratios of one to ten and maximum group size of 20 children 
58.11 	with the first staff required to be a teacher; and
58.12 	(9) serve children a minimum of 12 hours per week.

58.13 	Sec. 5. Minnesota Statutes 2008, section 124D.15, is amended by adding a subdivision 
58.14 	to read:
58.15 		Subd. 10a.Teachers. A school board must employ necessary qualified teachers 
58.16 	trained in early childhood curriculum content, instruction, and competency as determined 
58.17 	by the commissioner. Areas of competency include early childhood development, child 
58.18 	observation and assessment, and curriculum planning.

58.19 	Sec. 6. Minnesota Statutes 2008, section 124D.15, is amended by adding a subdivision 
58.20 	to read:
58.21 		Subd. 15.Program rating. A district school readiness program receives a rating 
58.22 	of four stars in any publicly funded pilot early childhood quality rating system. Upon 
58.23 	completion of the quality rating system pilot evaluation, the commissioner shall review 
58.24 	the pilot evaluation and findings to determine if they are consistent with a four-star rating 
58.25 	for a district's school readiness program.

58.26 	Sec. 7. Minnesota Statutes 2008, section 124D.19, subdivision 10, is amended to read:
58.27 		Subd. 10.Youth service programs. (a) A school board may offer, as part of a 
58.28 	community education program with a youth development program, a youth service 
58.29 	program that provides young people with meaningful opportunities to become involved in 
58.30 	their community, develop individual capabilities, make career connections, seek support 
58.31 	networks and services, become active citizens, and address community needs through 
58.32 	youth service. The board may award up to one credit, or the equivalent, toward graduation 
58.33 	for a pupil who completes the youth service requirements of the district. The community 
59.1 	education advisory council, after considering the results of the commissioner's study 
59.2 	under section 124D.50, subdivision 1, must design the program in cooperation with the 
59.3 	district planning, evaluating and reporting committee and local organizations that train 
59.4 	volunteers or need volunteers' services.  
59.5 	(b) Programs must include:
59.6 	(1) preliminary training for pupil volunteers conducted, when possible, by 
59.7 	organizations experienced in such training;
59.8 	(2) supervision of the pupil volunteers to ensure appropriate placement and adequate 
59.9 	learning opportunity;
59.10 	(3) sufficient opportunity, in a positive setting for human development, for pupil 
59.11 	volunteers to develop general skills in preparation for employment, to enhance self-esteem 
59.12 	and self-worth, and to give genuine service to their community;
59.13 	(4) integration of academic learning with the service experience; and
59.14 	(5) integration of youth community service with elementary and secondary 
59.15 	curriculum.
59.16 	(c) Youth service projects include, but are not limited to, the following:
59.17 	(1) human services for the elderly, including home care and related services;
59.18 	(2) tutoring and mentoring;
59.19 	(3) training for and providing emergency services;
59.20 	(4) services at extended day programs;
59.21 	(5) environmental services; and
59.22 	(6) service-learning programs in which schools, including postsecondary schools, 
59.23 	and employers work together with young people to provide them with meaningful 
59.24 	opportunities for community service and with the academic and technical skills that 
59.25 	employers require.
59.26 	(d) The commissioner shall maintain a list of acceptable projects with a description 
59.27 	of each project. A project that is not on the list must be approved by the commissioner.
59.28 	(e) A youth service project must have a community sponsor that may be a 
59.29 	governmental unit or nonprofit organization. To assure that pupils provide additional 
59.30 	services, each sponsor must assure that pupil services do not displace employees or reduce 
59.31 	the workload of any employee.
59.32 	(f) (e) The commissioner shall assist districts in planning youth service programs, 
59.33 	implementing programs, and developing recommendations for obtaining community 
59.34 	sponsors.

59.35 	Sec. 8. Minnesota Statutes 2008, section 124D.19, subdivision 14, is amended to read:
60.1 		Subd. 14.Community education; annual report. Each district offering a 
60.2 	community education program under this section must annually report to the department 
60.3 	information regarding the cost per participant and cost per contact hour for each 
60.4 	community education program, including youth after-school enrichment programs, that 
60.5 	receives aid or levy. The department must include cost per participant and cost per contact 
60.6 	hour information by program in the community education annual report.

60.7 	Sec. 9. Minnesota Statutes 2008, section 124D.522, is amended to read:
60.8 	124D.522 ADULT BASIC EDUCATION SUPPLEMENTAL SERVICE 
60.9 	GRANTS.
60.10 	(a) The commissioner, in consultation with the policy review task force under 
60.11 	section 124D.521, may make grants to nonprofit organizations to provide services that 
60.12 	are not offered by a district adult basic education program or that are supplemental to 
60.13 	either the statewide adult basic education program, or a district's adult basic education 
60.14 	program. The commissioner may make grants for: staff development for adult basic 
60.15 	education teachers and administrators; training for volunteer tutors; training, services, and 
60.16 	materials for serving disabled students through adult basic education programs; statewide 
60.17 	promotion of adult basic education services and programs; development and dissemination 
60.18 	of instructional and administrative technology for adult basic education programs; 
60.19 	programs which primarily serve communities of color; adult basic education distance 
60.20 	learning projects, including television instruction programs; and other supplemental 
60.21 	services to support the mission of adult basic education and innovative delivery of adult 
60.22 	basic education services.  
60.23 	(b) The commissioner must establish eligibility criteria and grant application 
60.24 	procedures. Grants under this section must support services throughout the state, focus on 
60.25 	educational results for adult learners, and promote outcome-based achievement through 
60.26 	adult basic education programs. Beginning in fiscal year 2002, the commissioner may 
60.27 	make grants under this section from the state total adult basic education aid set aside for 
60.28 	supplemental service grants under section 124D.531. Up to one-fourth of the appropriation 
60.29 	for supplemental service grants must be used for grants for adult basic education programs 
60.30 	to encourage and support innovations in adult basic education instruction and service 
60.31 	delivery. A grant to a single organization cannot exceed $100,000 20 percent of the total 
60.32 	supplemental services aid. Nothing in this section prevents an approved adult basic 
60.33 	education program from using state or federal aid to purchase supplemental services.  

61.1 	Sec. 10. Minnesota Statutes 2008, section 299A.297, is amended to read:
61.2 	299A.297 OTHER DUTIES.
61.3 	The commissioner of public safety, in consultation with the Chemical Abuse and 
61.4 	Violence Prevention Council, shall:
61.5 	(1) provide information and assistance upon request to school preassessment teams 
61.6 	established under section 121A.26and school and community advisory teams established 
61.7 	under section 121A.27;  
61.8 	(2) provide information and assistance upon request to the State Board of Pharmacy 
61.9 	with respect to the board's enforcement of chapter 152;
61.10 	(3) cooperate with and provide information and assistance upon request to the 
61.11 	Alcohol and Other Drug Abuse Section in the Department of Human Services;
61.12 	(4) coordinate the policy of the office with that of the Narcotic Enforcement Unit in 
61.13 	the Bureau of Criminal Apprehension; and
61.14 	(5) coordinate the activities of the regional drug task forces, provide assistance and 
61.15 	information to them upon request, and assist in the formation of task forces in areas of 
61.16 	the state in which no task force operates.

61.17 	Sec. 11.  REPEALER.
 61.18 	Minnesota Statutes 2008, sections 121A.27; and 124D.13, subdivision 13, are 
61.19 	repealed.

61.20 	ARTICLE 6
61.21 	STATE AGENCIES

61.22 	Section 1. Minnesota Statutes 2008, section 127A.08, is amended by adding a 
61.23 	subdivision to read:
61.24 		Subd. 5.Grants and gifts. The commissioner may apply for and receive grants 
61.25 	and gifts administered by agencies of the state and other government or nongovernment 
61.26 	sources. Any money received is hereby appropriated and dedicated for the purpose for 
61.27 	which it is granted.

61.28 	ARTICLE 7
61.29 	TECHNICAL CORRECTIONS

61.30 	Section 1. Minnesota Statutes 2008, section 120B.02, is amended to read:
61.31 	120B.02 EDUCATIONAL EXPECTATIONS FOR MINNESOTA'S 
61.32 	STUDENTS.
62.1 	(a) The legislature is committed to establishing rigorous academic standards for 
62.2 	Minnesota's public school students. To that end, the commissioner shall adopt in rule 
62.3 	statewide academic standards. The commissioner shall not prescribe in rule or otherwise 
62.4 	the delivery system, classroom assessments, or form of instruction that school sites must 
62.5 	use. For purposes of this chapter, a school site is a separate facility, or a separate program 
62.6 	within a facility that a local school board recognizes as a school site for funding purposes.
62.7 	(b) All commissioner actions regarding the rule must be premised on the following:
62.8 	(1) the rule is intended to raise academic expectations for students, teachers, and 
62.9 	schools;
62.10 	(2) any state action regarding the rule must evidence consideration of school district 
62.11 	autonomy; and
62.12 	(3) the Department of Education, with the assistance of school districts, must make 
62.13 	available information about all state initiatives related to the rule to students and parents, 
62.14 	teachers, and the general public in a timely format that is appropriate, comprehensive, and 
62.15 	readily understandable.
62.16 	(c) When fully implemented, the requirements for high school graduation in 
62.17 	Minnesota must require students to satisfactorily complete, as determined by the school 
62.18 	district, the course credit requirements under section 120B.024 and: successfully pass 
62.19 	graduation examinations as required under section 120B.30.
62.20 	(1) for students enrolled in grade 8 before the 2005-2006 school year, to pass the 
62.21 	basic skills test requirements; and
62.22 	(2) for students enrolled in grade 8 in the 2005-2006 school year and later, to pass 
62.23 	the Minnesota Comprehensive Assessments Second Edition (MCA-IIs).
62.24 	(d) The commissioner shall periodically review and report on the state's assessment 
62.25 	process.
62.26 	(e) School districts are not required to adopt specific provisions of the federal 
62.27 	School-to-Work programs.

62.28 	Sec. 2. Minnesota Statutes 2008, section 120B.021, subdivision 1, is amended to read:
62.29 		Subdivision 1.Required academic standards. The following subject areas are 
62.30 	required for statewide accountability:
62.31 	(1) language arts;
62.32 	(2) mathematics;
62.33 	(3) science;
62.34 	(4) social studies, including history, geography, economics, and government and 
62.35 	citizenship;
63.1 	(5) health and physical education, for which locally developed academic standards 
63.2 	apply; and
63.3 	(6) the arts, for which statewide or locally developed academic standards apply, as 
63.4 	determined by the school district. Public elementary and middle schools must offer at least 
63.5 	three and require at least two of the following four arts areas: dance; music; theater; and 
63.6 	visual arts. Public high schools must offer at least three and require at least one of the 
63.7 	following five arts areas: media arts; dance; music; theater; and visual arts.
63.8 	The commissioner must submit proposed standards in science and social studies to 
63.9 	the legislature by February 1, 2004.
63.10 	For purposes of applicable federal law, the academic standards for language arts, 
63.11 	mathematics, and science apply to all public school students, except the very few students 
63.12 	with extreme cognitive or physical impairments for whom an individualized education 
63.13 	plan team has determined that the required academic standards are inappropriate. An 
63.14 	individualized education plan team that makes this determination must establish alternative 
63.15 	standards with appropriate alternate achievement standards based on these academic 
63.16 	standards for students with individualized education plans described under federal law.
63.17 	A school district, no later than the 2007-2008 school year, must adopt graduation 
63.18 	requirements that meet or exceed state graduation requirements established in law or 
63.19 	rule. A school district that incorporates these state graduation requirements before the 
63.20 	2007-2008 school year must provide students who enter the 9th grade in or before 
63.21 	the 2003-2004 school year the opportunity to earn a diploma based on existing locally 
63.22 	established graduation requirements in effect when the students entered the 9th grade. 
63.23 	District efforts to develop, implement, or improve instruction or curriculum as a result 
63.24 	of the provisions of this section must be consistent with sections 120B.10, 120B.11, 
63.25 	and 120B.20. 
63.26 	The commissioner must include the contributions of Minnesota American Indian 
63.27 	tribes and communities as they relate to the academic standards during the review and 
63.28 	revision of the required academic standards.

63.29 	Sec. 3. Minnesota Statutes 2008, section 120B.30, subdivision 1, is amended to read:
63.30 		Subdivision 1.Statewide testing. (a) The commissioner, with advice from experts 
63.31 	with appropriate technical qualifications and experience and stakeholders, consistent 
63.32 	with subdivision 1a, shall include in the comprehensive assessment system, for each 
63.33 	grade level to be tested, state-constructed tests developed from and aligned with the 
63.34 	state's required academic standards under section 120B.021 and administered annually 
63.35 	to all students in grades 3 through 8 and at the high school level. A state-developed 
64.1 	test in a subject other than writing, developed after the 2002-2003 school year, must 
64.2 	include both machine-scoreable and constructed response questions. The commissioner 
64.3 	shall establish one or more months during which schools shall administer the tests to 
64.4 	students each school year. For students enrolled in grade 8 before the 2005-2006 school 
64.5 	year, only Minnesota basic skills tests in reading, mathematics, and writing shall fulfill 
64.6 	students' basic skills testing requirements for a passing state notation. The passing scores 
64.7 	of basic skills tests in reading and mathematics are the equivalent of 75 percent correct 
64.8 	for students entering grade 9 in 1997 and thereafter, as based on the first uniform test 
64.9 	administration of February 1998.
64.10 	(b) For students enrolled in grade 8 in the 2005-2006 school year and later, only the 
64.11 	following options shall fulfill students' state graduation test requirements:
64.12 	(1) for reading and mathematics:
64.13 	(i) obtaining an achievement level equivalent to or greater than proficient as 
64.14 	determined through a standard setting process on the Minnesota comprehensive 
64.15 	assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing 
64.16 	score as determined through a standard setting process on the graduation-required 
64.17 	assessment for diploma in grade 10 for reading and grade 11 for mathematics or 
64.18 	subsequent retests;
64.19 	(ii) achieving a passing score as determined through a standard setting process on the 
64.20 	state-identified language proficiency test in reading and the mathematics test for English 
64.21 	language learners or the graduation-required assessment for diploma equivalent of those 
64.22 	assessments for students designated as English language learners;
64.23 	(iii) achieving an individual passing score on the graduation-required assessment 
64.24 	for diploma as determined by appropriate state guidelines for students with an individual 
64.25 	education plan or 504 plan;
64.26 	(iv) obtaining achievement level equivalent to or greater than proficient as 
64.27 	determined through a standard setting process on the state-identified alternate assessment 
64.28 	or assessments in grade 10 for reading and grade 11 for mathematics for students with 
64.29 	an individual education plan; or
64.30 	(v) achieving an individual passing score on the state-identified alternate assessment 
64.31 	or assessments as determined by appropriate state guidelines for students with an 
64.32 	individual education plan; and
64.33 	(2) for writing:
64.34 	(i) achieving a passing score on the graduation-required assessment for diploma;
65.1 	(ii) achieving a passing score as determined through a standard setting process on 
65.2 	the state-identified language proficiency test in writing for students designated as English 
65.3 	language learners;
65.4 	(iii) achieving an individual passing score on the graduation-required assessment 
65.5 	for diploma as determined by appropriate state guidelines for students with an individual 
65.6 	education plan or 504 plan; or
65.7 	(iv) achieving an individual passing score on the state-identified alternate assessment 
65.8 	or assessments as determined by appropriate state guidelines for students with an 
65.9 	individual education plan.
65.10 	 (c) The 3rd through 8th grade and high school level test results shall be available 
65.11 	to districts for diagnostic purposes affecting student learning and district instruction and 
65.12 	curriculum, and for establishing educational accountability. The commissioner must 
65.13 	disseminate to the public the test results upon receiving those results.
65.14 	 (d) State tests must be constructed and aligned with state academic standards. The 
65.15 	testing process and the order of administration shall be determined by the commissioner. 
65.16 	The statewide results shall be aggregated at the site and district level, consistent with 
65.17 	subdivision 1a.
65.18 	 (e) In addition to the testing and reporting requirements under this section, the 
65.19 	commissioner shall include the following components in the statewide public reporting 
65.20 	system:
65.21 	(1) uniform statewide testing of all students in grades 3 through 8 and at the high 
65.22 	school level that provides appropriate, technically sound accommodations,or alternate 
65.23 	assessments, or exemptions consistent with applicable federal law, only with parent or 
65.24 	guardian approval, for those very few students for whom the student's individual education 
65.25 	plan team under sections 125A.05 and 125A.06 determines that the general statewide test 
65.26 	is inappropriate for a student, or for a limited English proficiency student under section 
65.27 	124D.59, subdivision 2;
65.28 	(2) educational indicators that can be aggregated and compared across school 
65.29 	districts and across time on a statewide basis, including average daily attendance, high 
65.30 	school graduation rates, and high school drop-out rates by age and grade level;
65.31 	(3) state results on the American College Test; and
65.32 	(4) state results from participation in the National Assessment of Educational 
65.33 	Progress so that the state can benchmark its performance against the nation and other 
65.34 	states, and, where possible, against other countries, and contribute to the national effort 
65.35 	to monitor achievement.

66.1 	Sec. 4. Minnesota Statutes 2008, section 120B.31, subdivision 4, is amended to read:
66.2 		Subd. 4.Statistical adjustments. In developing policies and assessment processes 
66.3 	to hold schools and districts accountable for high levels of academic standards under 
66.4 	section 120B.021, the commissioner shall aggregate student data over time to report 
66.5 	student performance levels measured at the school district, regional, or statewide level. 
66.6 	When collecting and reporting the data, the commissioner shall: (1) acknowledge the 
66.7 	impact of significant demographic factors such as residential instability, the number of 
66.8 	single parent families, parents' level of education, and parents' income level on school 
66.9 	outcomes; and (2) organize and report the data so that state and local policy makers can 
66.10 	understand the educational implications of changes in districts' demographic profiles over 
66.11 	time. Any report the commissioner disseminates containing summary data on student 
66.12 	performance must integrate student performance and the demographic factors that strongly 
66.13 	correlate with that performance.

66.14 	Sec. 5. Minnesota Statutes 2008, section 122A.31, subdivision 4, is amended to read:
66.15 		Subd. 4.Reimbursement. (a) For purposes of revenue under section 125A.78
66.16 	125A.76, the Department of Education must only reimburse school districts for the 
66.17 	services of those interpreters/transliterators who satisfy the standards of competency 
66.18 	under this section.  
66.19 	(b) Notwithstanding paragraph (a), a district shall be reimbursed for the services 
66.20 	of interpreters with a nonrenewable provisional certificate, interpreters/transliterators 
66.21 	employed to mentor the provisional certified interpreters, and persons for whom a 
66.22 	time-limited extension has been granted under subdivision 1, paragraph (d), or subdivision 
66.23 	2, paragraph (c).

66.24 	Sec. 6. Minnesota Statutes 2008, section 123B.14, subdivision 7, is amended to read:
66.25 		Subd. 7.Clerk records. The clerk shall keep a record of all meetings of the 
66.26 	district and the board in books provided by the district for that purpose. The clerk shall, 
66.27 	within three days after an election, notify all persons elected of their election. By August
66.28 	September 15 of each year the clerk shall file with the board a report of the revenues, 
66.29 	expenditures and balances in each fund for the preceding fiscal year. The report together 
66.30 	with vouchers and supporting documents shall subsequently be examined by a public 
66.31 	accountant or the state auditor, either of whom shall be paid by the district, as provided 
66.32 	in section 123B.77, subdivision 3. The board shall by resolution approve the report or 
66.33 	require a further or amended report. By AugustSeptember 15 of each year, the clerk shall 
66.34 	make and transmit to the commissioner certified reports, showing:  
67.1 	(1) The condition and value of school property;
67.2 	(2) the revenues and expenditures in detail, and such other financial information 
67.3 	required by law, rule, or as may be called for by the commissioner;
67.4 	(3) (2) the length of school term and the enrollment and attendance by grades; and
67.5 	(4) (3) such other items of information as may be called for by the commissioner.
67.6 	The clerk shall enter in the clerk's record book copies of all reports and of the 
67.7 	teachers' term reports, as they appear in the registers, and of the proceedings of any 
67.8 	meeting as furnished by the clerk pro tem, and keep an itemized account of all the 
67.9 	expenses of the district. The clerk shall furnish to the auditor of the proper county, by 
67.10 	October 10September 30 of each year, an attested copy of the clerk's record, showing 
67.11 	the amount of moneyproposed property tax voted by the district or the board for school 
67.12 	purposes; draw and sign all orders upon the treasurer for the payment of money for bills 
67.13 	allowed by the board for salaries of officers and for teachers' wages and all claims, to be 
67.14 	countersigned by the chair. Such orders must state the consideration, payee, and the 
67.15 	fund and the clerk shall take a receipt therefor. Teachers' wages shall have preference in 
67.16 	the order in which they become due, and no money applicable for teachers' wages shall 
67.17 	be used for any other purpose, nor shall teachers' wages be paid from any fund except 
67.18 	that raised or apportioned for that purpose.

67.19 	Sec. 7. Minnesota Statutes 2008, section 123B.81, subdivision 3, is amended to read:
67.20 		Subd. 3.Debt verification. The commissioner shall establish a uniform auditing or 
67.21 	other verification procedure for districts to determine whether a statutory operating debt 
67.22 	exists in any Minnesota school district as of June 30, 1977. This procedure must identify 
67.23 	all interfund transfers made during fiscal year 1977 from a fund included in computing 
67.24 	statutory operating debt to a fund not included in computing statutory operating debt. 
67.25 	The standards for this uniform auditing or verification procedure must be promulgated 
67.26 	by the state board pursuant to chapter 14. If a district applies to the commissioner for 
67.27 	a statutory operating debt verification or if the unaudited financial statement for the 
67.28 	school year ending June 30, 1977 reveals that a statutory operating debt might exist, the 
67.29 	commissioner shall require a verification of the amount of the statutory operating debt 
67.30 	which actually does exist.

67.31 	Sec. 8. Minnesota Statutes 2008, section 123B.81, subdivision 4, is amended to read:
67.32 		Subd. 4.Debt elimination. If an audit or other verification procedure conducted 
67.33 	pursuant to subdivision 3 determines that a statutory operating debt exists, a district 
68.1 	must follow the procedures set forth in this section 123B.83 to eliminate this statutory 
68.2 	operating debt. 

68.3 	Sec. 9. Minnesota Statutes 2008, section 123B.81, subdivision 5, is amended to read:
68.4 		Subd. 5.Certification of debt. The commissioner shall certify the amount of 
68.5 	statutory operating debt for each district. Prior to June 30, 1979, the commissioner may, 
68.6 	on the basis of corrected figures, adjust the total amount of statutory operating debt 
68.7 	certified for any district.

68.8 	Sec. 10. Minnesota Statutes 2008, section 124D.095, subdivision 4, is amended to read:
68.9 		Subd. 4.Online learning parameters. (a) An online learning student must receive 
68.10 	academic credit for completing the requirements of an online learning course or program. 
68.11 	Secondary credits granted to an online learning student must be counted toward the 
68.12 	graduation and credit requirements of the enrolling district. An online learning provider 
68.13 	must make available to the enrolling district the course syllabus, standard alignment, 
68.14 	content outline, assessment requirements, and contact information for supplemental online 
68.15 	courses taken by students in the enrolling district. The enrolling district must apply the 
68.16 	same graduation requirements to all students, including online learning students, and 
68.17 	must continue to provide nonacademic services to online learning students. If a student 
68.18 	completes an online learning course or program that meets or exceeds a graduation 
68.19 	standard or grade progression requirement at the enrolling district, that standard or 
68.20 	requirement is met. The enrolling district must use the same criteria for accepting online 
68.21 	learning credits or courses as it does for accepting credits or courses for transfer students 
68.22 	under section 124D.03, subdivision 9. The enrolling district may reduce the course 
68.23 	schedule of an online learning student in proportion to the number of online learning 
68.24 	courses the student takes from an online learning provider that is not the enrolling district.
68.25 	(b) An online learning student may:
68.26 	(1) enroll in supplemental online learning courses during a single school year to a 
68.27 	maximum of 50 percent of the student's full schedule of courses per term. A student may 
68.28 	exceed the supplemental online learning registration limit if the enrolling district grants 
68.29 	permission for supplemental online learning enrollment above the limit, or if an agreement 
68.30 	is made between the enrolling district and the online learning provider for instructional 
68.31 	services;
68.32 	(2) complete course work at a grade level that is different from the student's current 
68.33 	grade level; and
69.1 	(3) enroll in additional courses with the online learning provider under a separate 
69.2 	agreement that includes terms for payment of any tuition or course fees.
69.3 	(c) An online learning student has the same access to the computer hardware and 
69.4 	education software available in a school as all other students in the enrolling district. An 
69.5 	online learning provider must assist an online learning student whose family qualifies 
69.6 	for the education tax credit under section 290.0674 to acquire computer hardware and 
69.7 	educational software for online learning purposes.
69.8 	(d) An enrolling district may offer online learning to its enrolled students. Such 
69.9 	online learning does not generate online learning funds under this section. An enrolling 
69.10 	district that offers online learning only to its enrolled students is not subject to the 
69.11 	reporting requirements or review criteria under subdivision 7, unless the enrolling district 
69.12 	is a full-time online provider. A teacher with a Minnesota license must assemble and 
69.13 	deliver instruction to enrolled students receiving online learning from an enrolling district. 
69.14 	The delivery of instruction occurs when the student interacts with the computer or the 
69.15 	teacher and receives ongoing assistance and assessment of learning. The instruction may 
69.16 	include curriculum developed by persons other than a teacher with a Minnesota license.
69.17 	(e) An A full-time or supplemental online learning provider that is not the enrolling 
69.18 	district is subject to the reporting requirements and review criteria under subdivision 
69.19 	7. A teacher with a Minnesota license must assemble and deliver instruction to online 
69.20 	learning students. The delivery of instruction occurs when the student interacts with the 
69.21 	computer or the teacher and receives ongoing assistance and assessment of learning. The 
69.22 	instruction may include curriculum developed by persons other than a teacher with a 
69.23 	Minnesota license. Unless the commissioner grants a waiver, a teacher providing online 
69.24 	learning instruction must not instruct more than 40 students in any one online learning 
69.25 	course or program.
69.26 	(f) To enroll in more than 50 percent of the student's full schedule of courses per term 
69.27 	in online learning, the student must qualify to exceed the supplemental online learning 
69.28 	registration limit under paragraph (b) or apply for enrollment to an approved full-time 
69.29 	online learning program following appropriate procedures in subdivision 3, paragraph (a). 
69.30 	Full-time online learning students may enroll in classes at a local school per contract for 
69.31 	instructional services between the online learning provider and the school district.

69.32 	Sec. 11. Minnesota Statutes 2008, section 124D.10, subdivision 6a, is amended to read:
69.33 		Subd. 6a.Audit report. (a) The charter school must submit an audit report to the 
69.34 	commissioner by December 31 each year. 
70.1 	(b) The charter school, with the assistance of the auditor conducting the audit, must 
70.2 	include with the report a copy of all charter school agreements for corporate management 
70.3 	services. If the entity that provides the professional services to the charter school is 
70.4 	exempt from taxation under section 501 of the Internal Revenue Code of 1986, that entity 
70.5 	must file with the commissioner by February 15 a copy of the annual return required under 
70.6 	section 6033 of the Internal Revenue Code of 1986. 
70.7 	(c) If the commissioner receives as part of thean audit report a management letter
70.8 	indicating that a material weakness exists in the financial reporting systems of a charter 
70.9 	school, the charter school must submit a written report to the commissioner explaining 
70.10 	how the material weakness will be resolved. 
70.11 	(d) Upon the request of an individual, the charter school must make available in a 
70.12 	timely fashion the minutes of meetings of members, the board of directors, and committees 
70.13 	having any of the authority of the board of directors, and statements showing the financial 
70.14 	result of all operations and transactions affecting income and surplus during the school's 
70.15 	last annual accounting period and a balance sheet containing a summary of its assets and 
70.16 	liabilities as of the closing date of the accounting period.

70.17 	Sec. 12. Minnesota Statutes 2008, section 125A.62, subdivision 8, is amended to read:
70.18 		Subd. 8.Grants and gifts. The board, through the chief administrators of the 
70.19 	academies, may apply for all competitive grants administered by agencies of the state and 
70.20 	other government or nongovernment sources. Application may not be made for grants 
70.21 	over which the board has discretion. Any money so received is hereby appropriated and 
70.22 	dedicated for the purpose for which it is granted.

70.23 	Sec. 13. Minnesota Statutes 2008, section 125A.76, subdivision 1, is amended to read:
70.24 		Subdivision 1.Definitions. For the purposes of this section, the definitions in this 
70.25 	subdivision apply.
70.26 	(a) "Basic revenue" has the meaning given it in section 126C.10, subdivision 2. 
70.27 	For the purposes of computing basic revenue pursuant to this section, each child with a 
70.28 	disability shall be counted as prescribed in section 126C.05, subdivision 1.
70.29 	(b) "Essential personnel" means teachers, cultural liaisons, related services, and 
70.30 	support services staff providing direct services to students. Essential personnel may also 
70.31 	include special education paraprofessionals or clericals providing support to teachers and 
70.32 	students by preparing paperwork and making arrangements related to special education 
70.33 	compliance requirements, including parent meetings and individual education plans.
70.34 	Essential personnel does not include administrators and supervisors.
71.1 	(c) "Average daily membership" has the meaning given it in section 126C.05.
71.2 	(d) "Program growth factor" means 1.046 for fiscal year 2012 and later.

71.3 	Sec. 14. Minnesota Statutes 2008, section 126C.10, subdivision 34, is amended to read:
71.4 		Subd. 34.Basic alternative teacher compensation aid. (a) For fiscal years 
71.5 	2007 and later 2008, and 2009, the basic alternative teacher compensation aid for a 
71.6 	school district with a plan approved under section 122A.414, subdivision 2b, equals 65
71.7 	73.1 percent of the alternative teacher compensation revenue under section 122A.415, 
71.8 	subdivision 1. The basic alternative teacher compensation aid for an intermediate school 
71.9 	district or charter school with a plan approved under section 122A.414, subdivisions 2a 
71.10 	and 2b, if the recipient is a charter school, equals $260 times the number of pupils enrolled 
71.11 	in the school on October 1 of the previous fiscal year, or on October 1 of the current fiscal 
71.12 	year for a charter school in the first year of operation, times the ratio of the sum of the 
71.13 	alternative teacher compensation aid and alternative teacher compensation levy for all 
71.14 	participating school districts to the maximum alternative teacher compensation revenue 
71.15 	for those districts under section 122A.415, subdivision 1.
71.16 	(b) For fiscal years 2010 and later, the basic alternative teacher compensation aid for 
71.17 	a school with a plan approved under section 122A.414, subdivision 2b, equals 65 percent 
71.18 	of the alternative teacher compensation revenue under section 122A.415, subdivision 1. 
71.19 	The basic alternative teacher compensation aid for an intermediate school district or 
71.20 	charter school with a plan approved under section 122A.414, subdivisions 2a and 2b, if 
71.21 	the recipient is a charter school, equals $260 times the number of pupils enrolled in the 
71.22 	school on October 1 of the previous year, or on October 1 of the current year for a charter 
71.23 	school in the first year of operation, times the ratio of the sum of the alternative teacher 
71.24 	compensation aid and alternative teacher compensation levy for all participating school 
71.25 	districts to the maximum alternative teacher compensation revenue for those districts 
71.26 	under section 122A.415, subdivision 1.
71.27 	(b) (c) Notwithstanding paragraphs (a) and (b) and section 122A.415, subdivision 
71.28 	1, the state total basic alternative teacher compensation aid entitlement must not exceed 
71.29 	$75,636,000 for fiscal year 2007 and later. The commissioner must limit the amount 
71.30 	of alternative teacher compensation aid approved under section 122A.415 so as not to 
71.31 	exceed these limits.

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

71.33 	Sec. 15. Minnesota Statutes 2008, section 127A.47, subdivision 5, is amended to read:
72.1 		Subd. 5.Notification of resident district. A district educating a pupil who is 
72.2 	a resident of another district must notify the district of residence within 60 days of the 
72.3 	date the pupil is determined by the district to be a nonresident, but not later than August 
72.4 	1 following the end of the school year in which the pupil is educated. If the district of 
72.5 	residence does not receive a notification from the providing district pursuant to this 
72.6 	subdivision, it is not liable to that district for any tuition billing received after August 1 
72.7 	of the next school year.