HF 1591

as introduced - 89th Legislature (2015 - 2016) Posted on 03/09/2015 01:57pm

A bill for an act
relating to education; providing for policy for early childhood and kindergarten
through grade 12 education, including general education, education excellence,
special education, facilities and technology, early childhood education, libraries,
and state agencies; amending Minnesota Statutes 2014, sections 16A.103,
subdivision 1c; 120B.022, subdivisions 1, 1b; 120B.024, subdivision 2;
120B.12, subdivision 2; 120B.125; 120B.30, subdivisions 1, 1a, 3, 4, by adding
subdivisions; 120B.31, subdivision 2; 122A.31, subdivisions 1, 2; 122A.414,
subdivision 3; 122A.60, subdivision 4; 123A.24, subdivision 1; 123B.77,
subdivision 3; 123B.88, subdivision 1; 124D.09, subdivisions 5a, 9; 124D.10,
subdivisions 3, 4, 8, 9, 12, 14, by adding a subdivision; 124D.128, subdivision
1; 124D.165, subdivisions 2, 3, 4, by adding subdivisions; 124D.72; 124D.73,
subdivisions 3, 4; 124D.74, subdivisions 1, 3, 6; 124D.75, subdivisions 1, 2,
3, 9; 124D.76; 124D.78; 124D.79, subdivisions 1, 2; 124D.791, subdivision
4; 125A.023, subdivisions 3, 4; 125A.027; 125A.21; 125A.28; 125A.63,
subdivisions 4, 5; 125A.75, subdivision 9; 125A.76, subdivisions 1, 2c;
125B.26, subdivision 2; 126C.10, subdivision 13a; 126C.13, subdivisions 3a,
4; 126C.17, subdivisions 1, 2; 126C.48, subdivision 8; 127A.05, subdivision
6, by adding a subdivision; 127A.49, subdivision 1; 127A.70, subdivision 1;
134.20, subdivision 2; Laws 2014, chapter 312, article 16, section 15; repealing
Minnesota Statutes 2014, sections 120B.128; 120B.35, subdivision 5; 125A.63,
subdivisions 1, 2, 3; 126C.12, subdivision 6; 126C.41, subdivision 1.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

GENERAL EDUCATION

Section 1.

Minnesota Statutes 2014, section 126C.10, subdivision 13a, is amended to
read:

Subd. 13a.

Operating capital levy.

To obtain operating capital revenue for fiscal
year 2015 and later, a district may levy an amount not more than the product of its
operating capital revenue for the fiscal year times the lesser of one or the ratio of its
adjusted net tax capacity per adjusted deleted text begin marginal cost deleted text end pupil unit to the operating capital
equalizing factor. The operating capital equalizing factor equals $14,500.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment for
fiscal year 2015 and later.
new text end

Sec. 2.

Minnesota Statutes 2014, section 126C.13, subdivision 3a, is amended to read:

Subd. 3a.

Student achievement rate.

The commissioner must establish the student
achievement rate by deleted text begin July 1 deleted text end new text begin September 30 new text end of each year for levies payable in the following
year. The student achievement rate must be a rate, rounded up to the nearest hundredth of
a percent, that, when applied to the adjusted net tax capacity for all districts, raises the
amount specified in this subdivision. The student achievement rate must be the rate that
raises $20,000,000 for fiscal year 2015 and later years. The student achievement rate may
not be changed due to changes or corrections made to a district's adjusted net tax capacity
after the rate has been established.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2014, section 126C.13, subdivision 4, is amended to read:

Subd. 4.

General education aid.

deleted text begin (a) For fiscal years 2013 and 2014 only, a district's
general education aid is the sum of the following amounts:
deleted text end

deleted text begin (1) general education revenue, excluding equity revenue, total operating capital
revenue, alternative teacher compensation revenue, and transition revenue;
deleted text end

deleted text begin (2) operating capital aid under section 126C.10, subdivision 13b;
deleted text end

deleted text begin (3) equity aid under section 126C.10, subdivision 30;
deleted text end

deleted text begin (4) alternative teacher compensation aid under section 126C.10, subdivision 36;
deleted text end

deleted text begin (5) transition aid under section 126C.10, subdivision 33;
deleted text end

deleted text begin (6) shared time aid under section 126C.01, subdivision 7;
deleted text end

deleted text begin (7) referendum aid under section 126C.17, subdivisions 7 and 7a; and
deleted text end

deleted text begin (8) online learning aid according to section 124D.096.
deleted text end

deleted text begin (b) deleted text end For fiscal year 2015 and later, a district's general education aid equals:

(1) general education revenue, excluding operating capital revenue, equity revenue,
local optional revenue, and transition revenue, minus the student achievement levy,
multiplied times the ratio of the actual amount of student achievement levy levied to the
permitted student achievement levy; plus

new text begin (2) operating capital aid under section 126C.10, subdivision 13b;
new text end

deleted text begin (2) deleted text end new text begin (3) new text end equity aid under section 126C.10, subdivision 30; plus

deleted text begin (3) deleted text end new text begin (4) new text end transition aid under section 126C.10, subdivision 33; plus

deleted text begin (4) deleted text end new text begin (5) new text end shared time aid under section 126C.10, subdivision 7; plus

deleted text begin (5) deleted text end new text begin (6) new text end referendum aid under section 126C.17, subdivisions 7 and 7a; plus

deleted text begin (6) deleted text end new text begin (7) new text end online learning aid under section 124D.096; plus

deleted text begin (7) deleted text end new text begin (8) new text end local optional aid according to section 126C.10, subdivision 2d, paragraph (d).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal year 2015 and later.
new text end

Sec. 4.

Minnesota Statutes 2014, section 126C.17, subdivision 1, is amended to read:

Subdivision 1.

Referendum allowance.

(a) A district's initial referendum allowance
equals the result of the following calculations:

(1) multiply the referendum allowance the district would have received for fiscal
year 2015 under Minnesota Statutes 2012, section 126C.17, subdivision 1, based on
elections held before July 1, 2013, by the resident marginal cost pupil units the district
would have counted for fiscal year 2015 under Minnesota Statutes 2012, section 126C.05;

(2) add to the result of clause (1) the adjustment the district would have received
under Minnesota Statutes 2012, section 127A.47, subdivision 7, paragraphs (a), (b), and
(c), based on elections held before July 1, 2013;

(3) divide the result of clause (2) by the district's adjusted pupil units for fiscal
year 2015;

(4) add to the result of clause (3) any additional referendum allowance per adjusted
pupil unit authorized by elections held between July 1, 2013, and December 31, 2013;

(5) add to the result in clause (4) any additional referendum allowance resulting from
inflation adjustments approved by the voters prior to January 1, 2014;

(6) subtract from the result of clause (5), the sum of a district's actual local optional
levy and local optional aid under section 126C.10, subdivision 2e, divided by the adjusted
pupil units of the district for that school year; and

(7) if the result of clause (6) is less than zero, set the allowance to zero.

(b) A district's referendum allowance equals the sum of the district's initial
referendum allowance, new text begin plus any new referendum allowance authorized between July 1,
2013, and December 31, 2013, under subdivision 9a, new text end plus any additional referendum
allowance per adjusted pupil unit authorized after December 31, 2013, minus any
allowances expiring in fiscal year 2016 or later, provided that the allowance may not be
less than zero. For a district with more than one referendum allowance for fiscal year
2015 under Minnesota Statutes 2012, section 126C.17, the allowance calculated under
paragraph (a), clause (3), must be divided into components such that the same percentage
of the district's allowance expires at the same time as the old allowances would have
expired under Minnesota Statutes 2012, section 126C.17. For a district with more than one
allowance for fiscal year 2015 that expires in the same year, the reduction under paragraph
(a), clause (6), to offset local optional revenue shall be made first from any allowances that
do not have an inflation adjustment approved by the voters.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment for
fiscal year 2015 and later.
new text end

Sec. 5.

Minnesota Statutes 2014, section 126C.17, subdivision 2, is amended to read:

Subd. 2.

Referendum allowance limit.

(a) Notwithstanding subdivision 1, for
fiscal year 2015 and later, a district's referendum allowance must not exceed the annual
inflationary increase as calculated under paragraph (b) times the greatest of:

(1) $1,845;

(2) the sum of the referendum revenue the district would have received for fiscal
year 2015 under Minnesota Statutes 2012, section 126C.17, subdivision 4, based on
elections held before July 1, 2013, and the adjustment the district would have received
under Minnesota Statutes 2012, section 127A.47, subdivision 7, paragraphs (a), (b), and
(c), based on elections held before July 1, 2013, divided by the district's adjusted pupil
units for fiscal year 2015;

(3) the product of the referendum allowance limit the district would have received
for fiscal year 2015 under Minnesota Statutes 2012, section 126C.17, subdivision 2, and
the resident marginal cost pupil units the district would have received for fiscal year 2015
under Minnesota Statutes 2012, section 126C.05, subdivision 6, plus the adjustment the
district would have received under Minnesota Statutes 2012, section 127A.47, subdivision
7, paragraphs (a), (b), and (c), based on elections held before July 1, 2013, divided by
the district's adjusted pupil units for fiscal year 2015; minus $424 deleted text begin for a district receiving
local optional revenue under section 126C.10, subdivision 2d, paragraph (a), minus
$212 for a district receiving local optional revenue under section 126C.10, subdivision
2d, paragraph (b) deleted text end ; or

(4) for a newly reorganized district created after July 1, 2013, the referendum
revenue authority for each reorganizing district in the year preceding reorganization
divided by its adjusted pupil units for the year preceding reorganization.

(b) For purposes of this subdivision, for fiscal year 2016 and later, "inflationary
increase" means one plus the percentage change in the Consumer Price Index for urban
consumers, as prepared by the United States Bureau of Labor Standards, for the current
fiscal year to fiscal year 2015. For fiscal year 2016 and later, for purposes of paragraph (a),
clause (3), the inflationary increase equals one-fourth of the percentage increase in the
formula allowance for that year compared with the formula allowance for fiscal year 2015.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment for
fiscal year 2015 and later.
new text end

Sec. 6.

Minnesota Statutes 2014, section 126C.48, subdivision 8, is amended to read:

Subd. 8.

Taconite payment and other reductions.

(1) Reductions in levies
pursuant to subdivision 1 must be made prior to the reductions in clause (2).

(2) Notwithstanding any other law to the contrary, districts that have revenue
pursuant to sections 298.018; 298.225; 298.24 to 298.28, except an amount distributed
under sections 298.26; 298.28, subdivision 4, paragraphs (c), clause (ii), and (d); 298.34 to
298.39; 298.391 to 298.396; 298.405; 477A.15; and any law imposing a tax upon severed
mineral values must reduce the levies authorized by this chapter and chapters 120B, 122A,
123A, 123B, 124A, 124D, 125A, and 127A new text begin , excluding the student achievement levy
under section 126C.13, subdivision 3b, new text end by 95 percent of the sum of the previous year's
revenue specified under this clause and the amount attributable to the same production
year distributed to the cities and townships within the school district under section 298.28,
subdivision 2, paragraph (c).

(3) The amount of any voter approved referendum, facilities down payment, and
debt levies shall not be reduced by more than 50 percent under this subdivision, except
that payments under section 298.28, subdivision 7a, may reduce the debt service levy by
more than 50 percent. In administering this paragraph, the commissioner shall first reduce
the nonvoter approved levies of a district; then, if any payments, severed mineral value
tax revenue or recognized revenue under paragraph (2) remains, the commissioner shall
reduce any voter approved referendum levies authorized under section 126C.17; then, if
any payments, severed mineral value tax revenue or recognized revenue under paragraph
(2) remains, the commissioner shall reduce any voter approved facilities down payment
levies authorized under section 123B.63 and then, if any payments, severed mineral value
tax revenue or recognized revenue under paragraph (2) remains, the commissioner shall
reduce any voter approved debt levies.

(4) Before computing the reduction pursuant to this subdivision of the health and
safety levy authorized by sections 123B.57 and 126C.40, subdivision 5, the commissioner
shall ascertain from each affected school district the amount it proposes to levy under
each section or subdivision. The reduction shall be computed on the basis of the amount
so ascertained.

(5) To the extent the levy reduction calculated under paragraph (2) exceeds the
limitation in paragraph (3), an amount equal to the excess must be distributed from the
school district's distribution under sections 298.225, 298.28, and 477A.15 in the following
year to the cities and townships within the school district in the proportion that their
taxable net tax capacity within the school district bears to the taxable net tax capacity of
the school district for property taxes payable in the year prior to distribution. No city or
township shall receive a distribution greater than its levy for taxes payable in the year prior
to distribution. The commissioner of revenue shall certify the distributions of cities and
towns under this paragraph to the county auditor by September 30 of the year preceding
distribution. The county auditor shall reduce the proposed and final levies of cities and
towns receiving distributions by the amount of their distribution. Distributions to the cities
and towns shall be made at the times provided under section 298.27.

Sec. 7. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2014, section 126C.41, subdivision 1, new text end new text begin is repealed.
new text end

ARTICLE 2

EDUCATION EXCELLENCE

Section 1.

Minnesota Statutes 2014, section 120B.022, subdivision 1, is amended to
read:

Subdivision 1.

Elective standards.

A district must establish its own standards in deleted text begin the
following subject areas:
deleted text end

deleted text begin (1) deleted text end career and technical education deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (2) deleted text end new text begin A district must use the current new text end world languages new text begin standards developed by the
American Council on the Teaching of Foreign Languages new text end .

A school district must offer courses in all elective subject areas.

Sec. 2.

Minnesota Statutes 2014, section 120B.022, subdivision 1b, is amended to read:

Subd. 1b.

State bilingual and multilingual seals.

(a) Consistent with efforts to
strive for the world's best workforce under sections 120B.11 and 124D.10, subdivision 8,
paragraph (u), and close the academic achievement and opportunity gap under sections
124D.861 and 124D.862, voluntary state bilingual and multilingual seals are established to
recognize high school graduates who demonstrate deleted text begin level 3 functional native proficiency in
listening, speaking, reading, and writing on either the Foreign Services Institute language
proficiency tests deleted text end new text begin intermediate-high listening, speaking, reading, and writing on a validated
assessment based on the American Council for the Teaching of Foreign Languages
proficiency scale new text end or on equivalent valid and reliable assessments in one or more languages
in addition to English. American Sign Language is a language other than English for
purposes of this subdivision and a world language for purposes of subdivision 1a.

(b) In addition to paragraph (a), to be eligible to receive a seal deleted text begin :
deleted text end

deleted text begin (1) deleted text end students must satisfactorily complete all required English language arts credits deleted text begin ;
and deleted text end new text begin .
new text end

deleted text begin (2) students whose primary language is other than English must demonstrate mastery
of Minnesota's English language proficiency standards.
deleted text end

(c) Consistent with this subdivision, a high school graduate who demonstrates
functional native proficiency in one language in addition to English is eligible to receive
the state bilingual seal. A high school graduate who demonstrates functional native
proficiency in more than one language in addition to English is eligible to receive the
state multilingual seal.

(d) School districts and charter schools, in consultation with regional centers
of excellence under section 120B.115, must give students periodic opportunities to
demonstrate their level of proficiency in listening, speaking, reading, and writing in a
language in addition to English. Where valid and reliable assessments are unavailable, a
school district or charter school may rely on a licensed foreign language immersion teacher
or a nonlicensed community expert under section 122A.25 to assess a student's level of
foreign, heritage, or indigenous language proficiency under this section. School districts
and charter schools must maintain appropriate records to identify high school graduates
eligible to receive the state bilingual or multilingual seal. The school district or charter
school must affix the appropriate seal to the transcript of each high school graduate who
meets the requirements of this subdivision and may affix the seal to the student's diploma. A
school district or charter school must not charge the high school graduate a fee for this seal.

(e) A school district or charter school may award elective course credits in world
languages to a student who demonstrates the requisite proficiency in a language other
than English under this section.

(f) A school district or charter school may award community service credit to a
student who demonstrates level 3 functional native proficiency in listening, speaking,
reading, and writing in a language other than English and who participates in community
service activities that are integrated into the curriculum, involve the participation of
teachers, and support biliteracy in the school or local community.

(g) The commissioner must develop a Web page for the electronic delivery of these
seals. The commissioner must list on the Web page those assessments that are equivalent
to the Foreign Services Institute language proficiency tests.

(h) The colleges and universities of the Minnesota State Colleges and Universities
system must award foreign language credits to a student who receives a state bilingual seal
or a state multilingual seal under this subdivision and may award foreign language credits to
a student who receives a Minnesota World Language Proficiency Certificate or a Minnesota
World Language Proficiency High Achievement Certificate under subdivision 1a.

Sec. 3.

Minnesota Statutes 2014, section 120B.024, subdivision 2, is amended to read:

Subd. 2.

Credit equivalencies.

(a) A one-half credit of economics taught in a
school's agriculture education or business department may fulfill a one-half credit in
social studies under subdivision 1, clause (5), if the credit is sufficient to satisfy all of the
academic standards in economics.

(b) An agriculture science or career and technical education credit may fulfill deleted text begin the
credit in chemistry or physics or deleted text end the elective science credit required under subdivision 1,
clause (4), if the credit meets the state deleted text begin chemistry or physics, or district biology deleted text end new text begin physical
science, life science, earth and space science, chemistry, or physics new text end academic standards or
a combination of these academic standards as approved by the district. new text begin An agriculture or
career and technical education credit may fulfill the credit in chemistry or physics required
under subdivision 1, clause (4), if the credit meets the state chemistry or physics academic
standards as approved by the district. new text end A student must satisfy either all of the chemistry
academic standards or all of the physics academic standards prior to graduation. An
agriculture science or career and technical education credit may not fulfill the required
biology credit under subdivision 1, clause (4).

(c) A career and technical education credit may fulfill a mathematics or arts credit
requirement under subdivision 1, clause (2) or (6).

(d) An agriculture education teacher is not required to meet the requirements of
Minnesota Rules, part 3505.1150, subpart 1, item B, to meet the credit equivalency
requirements of paragraph (b) above.

Sec. 4.

Minnesota Statutes 2014, section 120B.125, is amended to read:

120B.125 PLANNING FOR STUDENTS' SUCCESSFUL TRANSITION
TO POSTSECONDARY EDUCATION AND EMPLOYMENT; PERSONAL
LEARNING PLANS.

(a) Consistent with sections deleted text begin 120B.128, deleted text end 120B.13, 120B.131, 120B.132, 120B.14,
120B.15, 120B.30, subdivision 1, paragraph (c), 125A.08, and other related sections,
school districts, beginning in the 2013-2014 school year, must assist all students by no
later than grade 9 to explore their educational, college, and career interests, aptitudes, and
aspirations and develop a plan for a smooth and successful transition to postsecondary
education or employment. All students' plans must:

(1) provide a comprehensive plan to prepare for and complete a career and college
ready curriculum by meeting state and local academic standards and developing career and
employment-related skills such as team work, collaboration, creativity, communication,
critical thinking, and good work habits;

(2) emphasize academic rigor and high expectations;

(3) help students identify interests, aptitudes, aspirations, and personal learning
styles that may affect their career and college ready goals and postsecondary education
and employment choices;

(4) set appropriate career and college ready goals with timelines that identify
effective means for achieving those goals;

(5) help students access education and career options;

(6) integrate strong academic content into career-focused courses and applied and
experiential learning opportunities and integrate relevant career-focused courses and
applied and experiential learning opportunities into strong academic content;

(7) help identify and access appropriate counseling and other supports and assistance
that enable students to complete required coursework, prepare for postsecondary education
and careers, and obtain information about postsecondary education costs and eligibility
for financial aid and scholarship;

(8) help identify collaborative partnerships among prekindergarten through grade
12 schools, postsecondary institutions, economic development agencies, and local and
regional employers that support students' transition to postsecondary education and
employment and provide students with applied and experiential learning opportunities; and

(9) be reviewed and revised at least annually by the student, the student's parent or
guardian, and the school or district to ensure that the student's course-taking schedule keeps
the student making adequate progress to meet state and local academic standards and high
school graduation requirements and with a reasonable chance to succeed with employment
or postsecondary education without the need to first complete remedial course work.

(b) A school district may develop grade-level curricula or provide instruction that
introduces students to various careers, but must not require any curriculum, instruction,
or employment-related activity that obligates an elementary or secondary student to
involuntarily select or pursue a career, career interest, employment goals, or related job
training.

(c) Educators must possess the knowledge and skills to effectively teach all English
learners in their classrooms. School districts must provide appropriate curriculum,
targeted materials, professional development opportunities for educators, and sufficient
resources to enable English learners to become career and college ready.

(d) When assisting students in developing a plan for a smooth and successful
transition to postsecondary education and employment, districts must recognize the unique
possibilities of each student and ensure that the contents of each student's plan reflect the
student's unique talents, skills, and abilities as the student grows, develops, and learns.

Sec. 5.

Minnesota Statutes 2014, section 120B.30, subdivision 1, is amended to read:

Subdivision 1.

Statewide testing.

(a) The commissioner, with advice from experts
with appropriate technical qualifications and experience and stakeholders, consistent with
subdivision 1a, shall include in the comprehensive assessment system, for each grade
level to be tested, state-constructed tests deleted text begin developed as computer-adaptive reading and
mathematics assessments for students that are deleted text end aligned with the state's required academic
standards under section 120B.021, include multiple choice questions, and are administered
annually to all students new text begin :
new text end

new text begin (1) new text end in new text begin mathematics new text end grades deleted text begin 3 deleted text end new text begin 5 new text end through deleted text begin 7. deleted text end new text begin 8 and 11;
new text end

new text begin (2) in reading, grades 3 through 5, 8, and 10; and
new text end

new text begin (3) in science, grades 5, 8, and once in high school. The high school test shall
assess the life science standards.
new text end

new text begin Assessments under this section must comply with the requirements under the federal No
Child Left Behind flexibility waiver. Before any change to state standardized assessment
is effective, the Department of Education must attain a corresponding amendment to its
federal flexibility waiver. new text end

new text begin (b) new text end deleted text begin Reading and mathematics assessments for all students in grade 8 must be aligned
with the state's required reading and mathematics standards, be administered annually,
and include multiple choice questions. State-developed high school tests aligned with the
state's required academic standards under section 120B.021 and administered to all high
school students in a subject other than writing must include multiple choice questions. deleted text end The
commissioner shall establish one or more months during which schools shall administer
the tests to students each school year. new text begin The commissioner shall determine the testing
process and order of administration.
new text end

new text begin (c) The state assessment system must be aligned to the most recent version of
academic standards as described in section 120B.023 three school years from the effective
date of the academic standards rule. The commissioner must not develop statewide
assessments for academic standards in social studies, health and physical education, and
the arts.
new text end

new text begin (d) For purposes of conforming with existing federal educational accountability
requirements, the commissioner must develop and implement computer-adaptive reading
and mathematics assessments for grades 3 through 8 and high school reading and
mathematics tests aligned with state academic standards, and science assessments under
paragraph (a), clause (2), that districts and sites must use to monitor student growth
toward achieving those standards.
new text end

new text begin (e) The commissioner must ensure that for annual computer-adaptive assessments:
new text end

new text begin (1) individual student performance data and achievement reports are available
within three school days of when students take an assessment except in a year when an
assessment reflects new performance standards;
new text end

new text begin (2) growth information is available for each student from the student's first
assessment to each proximate assessment using a constant measurement scale;
new text end

new text begin (3) parents, teachers, and school administrators are able to use elementary and
middle school student performance data to project students' secondary and postsecondary
achievement; and
new text end

new text begin (4) useful diagnostic information about areas of students' academic strengths and
weaknesses is available to teachers and school administrators for improving student
instruction and indicating the specific skills and concepts that should be introduced and
developed for students at given performance levels, organized by strands within subject
areas, and aligned to state academic standards.
new text end

new text begin Subd. 1c. new text end

new text begin Assessment graduation requirements. new text end

deleted text begin (1) deleted text end new text begin (a) new text end Students enrolled in
grade 8 through the 2009-2010 school year are eligible to be assessed under deleted text begin (i) deleted text end new text begin (1) new text end the
graduation-required assessment for diploma in reading, mathematics, or writing under
Minnesota Statutes 2012, section 120B.30, subdivision 1, paragraphs (c), clauses (1) and
(2), and (d), deleted text begin (ii) deleted text end new text begin (2) new text end the WorkKeys job skills assessment, deleted text begin (iii) deleted text end new text begin (3) new text end the Compass college
placement test, deleted text begin (iv) deleted text end new text begin (4) new text end the ACT assessment for college admission, or deleted text begin (v) deleted text end new text begin (5) new text end a nationally
recognized armed services vocational aptitude test.

deleted text begin (2) deleted text end new text begin (b) new text end Students enrolled in grade 8 in the 2010-2011 or 2011-2012 school year
are eligible to be assessed under deleted text begin (i) deleted text end new text begin (1) new text end the graduation-required assessment for diploma
in reading, mathematics, or writing under Minnesota Statutes 2012, section 120B.30,
subdivision 1, paragraph (c), clauses (1) and (2), deleted text begin (ii) deleted text end new text begin (2) new text end the WorkKeys job skills
assessment, deleted text begin (iii) deleted text end new text begin (3) new text end the Compass college placement test, deleted text begin (iv) deleted text end new text begin (4) new text end the ACT assessment for
college admission, or deleted text begin (v) deleted text end new text begin (5) new text end a nationally recognized armed services vocational aptitude test.

deleted text begin (3) deleted text end new text begin (c) new text end For students under deleted text begin clause (1) or (2) deleted text end new text begin paragraph (a) or (b) new text end , a school district may
substitute a score from an alternative, equivalent assessment to satisfy the requirements of
this paragraph.

deleted text begin (b) The state assessment system must be aligned to the most recent revision of
academic standards as described in section 120B.023 in the following manner:
deleted text end

deleted text begin (1) mathematics;
deleted text end

deleted text begin (i) grades 3 through 8 beginning in the 2010-2011 school year; and
deleted text end

deleted text begin (ii) high school level beginning in the 2013-2014 school year;
deleted text end

deleted text begin (2) science; grades 5 and 8 and at the high school level beginning in the 2011-2012
school year; and
deleted text end

deleted text begin (3) language arts and reading; grades 3 through 8 and high school level beginning in
the 2012-2013 school year.
deleted text end

deleted text begin (c) deleted text end new text begin (d) new text end For students enrolled in grade 8 in the 2012-2013 school year and later,
students' state graduation requirements, based on a longitudinal, systematic approach to
student education and career planning, assessment, instructional support, and evaluation,
include the following:

(1) deleted text begin demonstrate understanding of required academic standards deleted text end new text begin participation new text end on a
nationally normed college entrance exam new text begin , in grade 11 or 12 new text end ;

deleted text begin (2) achievement and career and college readiness tests in mathematics, reading, and
writing, consistent with paragraph (e) and to the extent available, to monitor students'
continuous development of and growth in requisite knowledge and skills; analyze
students' progress and performance levels, identifying students' academic strengths and
diagnosing areas where students require curriculum or instructional adjustments, targeted
interventions, or remediation; and, based on analysis of students' progress and performance
data, determine students' learning and instructional needs and the instructional tools and
best practices that support academic rigor for the student; and
deleted text end

deleted text begin (3) deleted text end new text begin (2) new text end consistent with this paragraph and section 120B.125, age-appropriate
exploration and planning activities and career assessments to encourage students to identify
personally relevant career interests and aptitudes and help students and their families
develop a regularly reexamined transition plan for postsecondary education or employment
without need for postsecondary remediation. new text begin Districts and schools, on an annual basis,
must use the career exploration elements to help students, beginning no later than grade 9,
and their families explore and plan for postsecondary education or careers based on the
students' interests, aptitudes, and aspirations. Districts and schools must use timely regional
labor market information and partnerships, among other resources, to help students and
their families successfully develop, pursue, review, and revise an individualized plan for
postsecondary education or a career. This process must help increase students' engagement
in and connection to school, improve students' knowledge and skills, and deepen students'
understanding of career pathways as a sequence of academic and career courses that lead
to an industry-recognized credential, an associate's degree, or a bachelor's degree and are
available to all students, whatever their interests and career goals.
new text end

new text begin (e) new text end Based on appropriate state guidelines, students with an individualized education
program may satisfy state graduation requirements by achieving an individual score on
the state-identified alternative assessments.

deleted text begin Expectations of schools, districts, and the state for career or college readiness under this
subdivision must be comparable in rigor, clarity of purpose, and rates of student completion.
deleted text end

new text begin (f) new text end A new text begin high school new text end student deleted text begin under clause (2) deleted text end new text begin not yet ready for career and college new text end must
receive targeted, relevant, academically rigorous, and resourced instruction, which may
include a targeted instruction and intervention plan focused on improving the student's
knowledge and skills in core subjects so that the student has a reasonable chance to succeed
in a career or college without need for postsecondary remediation. Consistent with sections
120B.13, 124D.09, 124D.091, 124D.49, and related sections, an enrolling school or district
must actively encourage a student in grade 11 or 12 who is identified as academically
ready for a career or college to participate in courses and programs awarding college credit
to high school students. deleted text begin Students are not required to achieve a specified score or level of
proficiency on an assessment under this subdivision to graduate from high school.
deleted text end

deleted text begin (d) deleted text end new text begin (g) new text end To improve the secondary and postsecondary outcomes of all students, the
alignment between secondary and postsecondary education programs and Minnesota's
workforce needs, and the efficiency and cost-effectiveness of secondary and postsecondary
programs, the commissioner, after consulting with the chancellor of the Minnesota State
Colleges and Universities and using a request for proposal process, shall contract for
deleted text begin a series of deleted text end assessments that are consistent with this subdivision deleted text begin , aligned with state
academic standards, deleted text end and include career and college readiness benchmarks. deleted text begin Mathematics,
reading, and writing assessments for students in grades 8 and 10 must be predictive of a
nationally normed assessment for career and college readiness. This nationally recognized
assessment must be a college entrance exam and given to students in grade 11. This
series of assessments must include a college placement diagnostic exam and contain
career exploration elements. deleted text end The commissioner and the chancellor of the Minnesota
State Colleges and Universities must collaborate in aligning instruction and assessments
for adult basic education students and English learners to provide the students with
diagnostic information about any targeted interventions, accommodations, modifications,
and supports they need so that assessments and other performance measures are accessible
to them and they may seek postsecondary education or employment without need for
postsecondary remediation. When administering formative or summative assessments
used to measure the academic progress, including the oral academic development, of
English learners and inform their instruction, schools must ensure that the assessments are
accessible to the students and students have the modifications and supports they need to
sufficiently understand the assessments.

deleted text begin (l) Districts and schools, on an annual basis, must use the career exploration
elements in these assessments to help students, beginning no later than grade 9, and their
families explore and plan for postsecondary education or careers based on the students'
interests, aptitudes, and aspirations. Districts and schools must use timely regional labor
market information and partnerships, among other resources, to help students and their
families successfully develop, pursue, review, and revise an individualized plan for
postsecondary education or a career. This process must help increase students' engagement
in and connection to school, improve students' knowledge and skills, and deepen students'
understanding of career pathways as a sequence of academic and career courses that lead
to an industry-recognized credential, an associate's degree, or a bachelor's degree and are
available to all students, whatever their interests and career goals.
deleted text end

deleted text begin (2) Students in grade 10 or 11 not yet academically ready for a career or college based
on their growth in academic achievement between grades 8 and 10 must take the college
placement diagnostic exam before taking the college entrance exam under clause (3).
Students, their families, the school, and the district can then use the results of the college
placement diagnostic exam for targeted instruction, intervention, or remediation and
improve students' knowledge and skills in core subjects sufficient for a student to graduate
and have a reasonable chance to succeed in a career or college without remediation.
deleted text end

deleted text begin (3) All students except those eligible for alternative assessments must be given the
college entrance part of these assessments in grade 11. A student under this clause who
demonstrates attainment of required state academic standards, which include career and
college readiness benchmarks, on these assessments is academically ready for a career or
college and is encouraged to participate in courses awarding college credit to high school
students. Such courses and programs may include sequential courses of study within
broad career areas and technical skill assessments that extend beyond course grades.
deleted text end

deleted text begin (4) deleted text end new text begin (h) new text end As appropriate, students through grade 12 must continue to participate in
targeted instruction, intervention, or remediation and be encouraged to participate in
courses awarding college credit to high school students.

deleted text begin (5) A study to determine the alignment between these assessments and state
academic standards under this chapter must be conducted. Where alignment exists, the
commissioner must seek federal approval to, and immediately upon receiving approval,
replace the federally required assessments referenced under subdivision 1a and section
120B.35, subdivision 2, with assessments under this paragraph.
deleted text end

deleted text begin (e) In developing, supporting, and improving students' academic readiness for a
career or college, schools, districts, and the state must have a continuum of empirically
derived, clearly defined benchmarks focused on students' attainment of knowledge and
skills so that students, their parents, and teachers know how well students must perform to
have a reasonable chance to succeed in a career or college without need for postsecondary
remediation. The commissioner, in consultation with local school officials and educators,
and Minnesota's public postsecondary institutions must ensure that the foundational
knowledge and skills for students' successful performance in postsecondary employment
or education and an articulated series of possible targeted interventions are clearly
identified and satisfy Minnesota's postsecondary admissions requirements.
deleted text end

deleted text begin (f) deleted text end new text begin (i) new text end For students in grade 8 in the 2012-2013 school year and later, a school,
district, or charter school must record on the high school transcript a student's progress
toward career and college readiness, and for other students as soon as practicable.

deleted text begin (g) deleted text end new text begin (j) new text end The school board granting students their diplomas may formally decide to
include a notation of high achievement on the high school diplomas of those graduating
seniors who, according to established school board criteria, demonstrate exemplary
academic achievement during high school.

deleted text begin (h) The 3rd through 7th grade computer-adaptive assessment results and grade 8
and high school test results shall be available to districts for diagnostic purposes affecting
student learning and district instruction and curriculum, and for establishing educational
accountability. The commissioner must establish empirically derived benchmarks on
adaptive assessments in grades 3 through 7 that reveal a trajectory toward career and
college readiness. The commissioner must disseminate to the public the computer-adaptive
assessments, grade 8, and high school test results upon receiving those results.
deleted text end

deleted text begin (i) The grades 3 through 7 computer-adaptive assessments and grade 8 and high
school tests must be aligned with state academic standards. The commissioner shall
determine the testing process and the order of administration. The statewide results shall
be aggregated at the site and district level, consistent with subdivision 1a.
deleted text end

deleted text begin (j) The commissioner shall include the following components in the statewide
public reporting system:
deleted text end

deleted text begin (1) uniform statewide computer-adaptive assessments of all students in grades 3
through 7 and testing at the grade 8 and high school levels that provides appropriate,
technically sound accommodations or alternate assessments;
deleted text end

deleted text begin (2) educational indicators that can be aggregated and compared across school
districts and across time on a statewide basis, including average daily attendance, high
school graduation rates, and high school drop-out rates by age and grade level;
deleted text end

deleted text begin (3) state results on the American College Test; and
deleted text end

deleted text begin (4) state results from participation in the National Assessment of Educational
Progress so that the state can benchmark its performance against the nation and other
states, and, where possible, against other countries, and contribute to the national effort
to monitor achievement.
deleted text end

(k) For purposes of statewide accountability, "career and college ready" means a
high school graduate has the knowledge, skills, and competencies to successfully pursue a
career pathway, including postsecondary credit leading to a degree, diploma, certificate, or
industry-recognized credential and employment. Students who are career and college ready
are able to successfully complete credit-bearing coursework at a two- or four-year college
or university or other credit-bearing postsecondary program without need for remediation.

deleted text begin (l) For purposes of statewide accountability, "cultural competence," "cultural
competency," or "culturally competent" means the ability and will to interact effectively
with people of different cultures, native languages, and socioeconomic backgrounds.
deleted text end

new text begin (l) Students are not required to achieve a specific score or level of proficiency on an
assessment under this subdivision to graduate from high school.
new text end

Sec. 6.

Minnesota Statutes 2014, section 120B.30, subdivision 1a, is amended to read:

Subd. 1a.

Statewide and local assessments; results.

(a) For purposes of this
section, the following definitions have the meanings given them.

(1) "Computer-adaptive assessments" means fully adaptive assessments.

(2) "Fully adaptive assessments" include test items that are on-grade level and items
that may be above or below a student's grade level.

(3) "On-grade level" test items contain subject area content that is aligned to state
academic standards for the grade level of the student taking the assessment.

(4) "Above-grade level" test items contain subject area content that is above the
grade level of the student taking the assessment and is considered aligned with state
academic standards to the extent it is aligned with content represented in state academic
standards above the grade level of the student taking the assessment. Notwithstanding
the student's grade level, administering above-grade level test items to a student does not
violate the requirement that state assessments must be aligned with state standards.

(5) "Below-grade level" test items contain subject area content that is below the
grade level of the student taking the test and is considered aligned with state academic
standards to the extent it is aligned with content represented in state academic standards
below the student's current grade level. Notwithstanding the student's grade level,
administering below-grade level test items to a student does not violate the requirement
that state assessments must be aligned with state standards.

new text begin (6) For purposes of statewide accountability, "cultural competence," "cultural
competency," or "culturally competent" means the ability and will to interact effectively
with people of different cultures, native languages, and socioeconomic backgrounds.
new text end

deleted text begin (b) The commissioner must use fully adaptive mathematics and reading assessments
for grades 3 through 7 beginning in the 2015-2016 school year and later.
deleted text end

deleted text begin (c) For purposes of conforming with existing federal educational accountability
requirements, the commissioner must develop and implement computer-adaptive reading
and mathematics assessments for grades 3 through 7, state-developed grade 8 and high
school reading and mathematics tests aligned with state academic standards, and science
assessments under clause (2) that districts and sites must use to monitor student growth
toward achieving those standards. The commissioner must not develop statewide
assessments for academic standards in social studies, health and physical education, and
the arts. The commissioner must require:
deleted text end

deleted text begin (1) annual computer-adaptive reading and mathematics assessments in grades 3
through 7, and grade 8 and high school reading and mathematics tests; and
deleted text end

deleted text begin (2) annual science assessments in one grade in the grades 3 through 5 span, the
grades 6 through 8 span, and a life sciences assessment in the grades 9 through 12 span,
and the commissioner must not require students to achieve a passing score on high school
science assessments as a condition of receiving a high school diploma.
deleted text end

deleted text begin (d) The commissioner must ensure that for annual computer-adaptive assessments:
deleted text end

deleted text begin (1) individual student performance data and achievement reports are available
within three school days of when students take an assessment except in a year when an
assessment reflects new performance standards;
deleted text end

deleted text begin (2) growth information is available for each student from the student's first
assessment to each proximate assessment using a constant measurement scale;
deleted text end

deleted text begin (3) parents, teachers, and school administrators are able to use elementary and
middle school student performance data to project students' secondary and postsecondary
achievement; and
deleted text end

deleted text begin (4) useful diagnostic information about areas of students' academic strengths and
weaknesses is available to teachers and school administrators for improving student
instruction and indicating the specific skills and concepts that should be introduced and
developed for students at given performance levels, organized by strands within subject
areas, and aligned to state academic standards.
deleted text end

deleted text begin (e) deleted text end new text begin (b) new text end The commissioner must ensure that all state tests administered to elementary
and secondary students measure students' academic knowledge and skills and not students'
values, attitudes, and beliefs.

deleted text begin (f) Reporting of state assessment results must:
deleted text end

deleted text begin (1) provide timely, useful, and understandable information on the performance of
individual students, schools, school districts, and the state;
deleted text end

deleted text begin (2) include a growth indicator of student achievement; and
deleted text end

deleted text begin (3) determine whether students have met the state's academic standards.
deleted text end

deleted text begin (g) deleted text end new text begin (c) new text end Consistent with applicable federal law, the commissioner must include
appropriate, technically sound accommodations or alternative assessments for the very
few students with disabilities for whom statewide assessments are inappropriate and
for English learners.

deleted text begin (h) A school, school district, and charter school must administer statewide
assessments under this section, as the assessments become available, to evaluate student
progress toward career and college readiness in the context of the state's academic
standards. A school, school district, or charter school may use a student's performance
on a statewide assessment as one of multiple criteria to determine grade promotion or
retention. A school, school district, or charter school may use a high school student's
performance on a statewide assessment as a percentage of the student's final grade in a
course, or place a student's assessment score on the student's transcript.
deleted text end

Sec. 7.

Minnesota Statutes 2014, section 120B.30, is amended by adding a subdivision
to read:

new text begin Subd. 1b. new text end

new text begin Special and extenuating circumstances. new text end

new text begin The Department of Education
shall develop a list of circumstances in which a student may be unable to test. The list
shall include but not be limited to: students transferring to Minnesota from another state,
students transferring from nonpublic to public school, students hospitalized, and parental
opting out of the student's testing. Students unable to participate in statewide assessment
due to a circumstance on the list authorized under this subdivision shall not be penalized
for missing the opportunity to take a test.
new text end

Sec. 8.

Minnesota Statutes 2014, section 120B.30, subdivision 3, is amended to read:

Subd. 3.

Reporting.

new text begin (a) new text end The commissioner shall report test results publicly and
to stakeholders, including the performance achievement levels developed from students'
unweighted test scores in each tested subject and a listing of demographic factors that
strongly correlate with student performance. The test results must not include personally
identifiable information as defined in Code of Federal Regulations, title 34, section 99.3.
The commissioner shall also report data that compares performance results among school
sites, school districts, Minnesota and other states, and Minnesota and other nations. The
commissioner shall disseminate to schools and school districts a more comprehensive
report containing testing information that meets local needs for evaluating instruction and
curriculum. The commissioner shall disseminate to charter school authorizers a more
comprehensive report containing testing information that contains anonymized data where
cell count data are sufficient to protect student identity and that meets the authorizer's
needs in fulfilling its obligations under section 124D.10.

new text begin (b) Reporting of state assessment results must:
new text end

new text begin (1) provide timely, useful, and understandable information on the performance of
individual students, schools, school districts, and the state;
new text end

new text begin (2) include a growth indicator of student achievement; and
new text end

new text begin (3) determine whether students have met the state's academic standards.
new text end

new text begin (c) The grade 3 through 7 computer-adaptive assessment results and grade 8 and
high school test results shall be available to districts for diagnostic purposes affecting
student learning and district instruction and curriculum, and for establishing educational
accountability. The commissioner must establish empirically derived benchmarks on
adaptive assessments in grades 3 through 7 that reveal a trajectory toward career and
college readiness. The commissioner shall establish composite career and college-ready
scores in grades 5, 8, and high school. The composite scores shall predict performance on
a college entrance exam. The commissioner must disseminate to the public test results
upon receiving those results.
new text end

new text begin (d) The commissioner shall include the following components in the statewide
public reporting system:
new text end

new text begin (1) uniform statewide computer-adaptive assessments of all students in grades
3 through 8 and high school levels that provide appropriate, technically sound
accommodations or alternate assessments;
new text end

new text begin (2) educational indicators that can be aggregated and compared across school
districts and across time on a statewide basis, including average daily attendance, high
school graduation rates, and high school drop-out rates by age and grade level;
new text end

new text begin (3) state results on the ACT; and
new text end

new text begin (4) state results from participation in the National Assessment of Educational
Progress so that the state can benchmark its performance against the nation and other
states, and, where possible, against other countries, and contribute to the national effort
to monitor achievement.
new text end

Sec. 9.

Minnesota Statutes 2014, section 120B.30, is amended by adding a subdivision
to read:

new text begin Subd. 3a. new text end

new text begin Administration and usage. new text end

new text begin A school, school district, and charter school
must administer statewide assessments under this section, as the assessments become
available, to evaluate student progress toward career and college readiness in the context
of the state's academic standards. A school, school district, or charter school may use a
student's performance on a statewide assessment as one of multiple criteria to determine
grade promotion or retention. A school, school district, or charter school may use a high
school student's performance on a statewide assessment as a percentage of the student's
final grade in a course, or place a student's assessment score on the student's transcript.
new text end

Sec. 10.

Minnesota Statutes 2014, section 120B.30, subdivision 4, is amended to read:

Subd. 4.

Access to tests.

Consistent with section 13.34, the commissioner must
adopt and publish a policy to provide public and parental access for review of deleted text begin basic
skills tests, deleted text end Minnesota deleted text begin Comprehensive Assessments, or any other such statewide test
and assessment deleted text end new text begin developed assessments new text end which would not compromise the objectivity or
fairness of the testing or examination process. Upon receiving a written request, the
commissioner must make available to parents or guardians a copy of their student's actual
responses to the test questions for their review.

Sec. 11.

Minnesota Statutes 2014, section 120B.31, subdivision 2, is amended to read:

Subd. 2.

Statewide testing.

Each school year, all school districts shall give a
uniform statewide test to students at specified grades to provide information on the status,
needs and performance of Minnesota students new text begin , consistent with section 120B.30 new text end .

Sec. 12.

Minnesota Statutes 2014, section 124D.09, subdivision 5a, is amended to read:

Subd. 5a.

Authorization; career or technical education.

A 10th, 11th, or 12th
grade pupil enrolled in a district or an American Indian-controlled tribal contract or grant
school eligible for aid under section 124D.83, except a foreign exchange pupil enrolled in
a district under a cultural exchange program, may enroll in a career or technical education
course offered by a Minnesota state college or university. A 10th grade pupil applying
for enrollment in a career or technical education course under this subdivision must have
received a passing score on the 8th grade Minnesota Comprehensive Assessment in
reading as a condition of enrollment. new text begin A current 10th grade pupil who did not take the 8th
grade Minnesota Comprehensive Assessment in reading may substitute another reading
assessment accepted by the enrolling postsecondary institution. new text end A secondary pupil may
enroll in the pupil's first postsecondary options enrollment course under this subdivision.
A student who is refused enrollment by a Minnesota state college or university under this
subdivision may apply to an eligible institution offering a career or technical education
course. The postsecondary institution must give priority to its students according to
subdivision 9. If a secondary student receives a grade of "C" or better in the career or
technical education course taken under this subdivision, the postsecondary institution
must allow the student to take additional postsecondary courses for secondary credit at
that institution, not to exceed the limits in subdivision 8. A "career or technical course" is
a course that is part of a career and technical education program that provides individuals
with coherent, rigorous content aligned with academic standards and relevant technical
knowledge and skills needed to prepare for further education and careers in current and
emerging professions and provide technical skill proficiency, an industry recognized
credential, and a certificate, a diploma, or an associate degree.

Sec. 13.

Minnesota Statutes 2014, section 124D.09, subdivision 9, is amended to read:

Subd. 9.

Enrollment priority.

(a) A postsecondary institution shall give priority to
its postsecondary students when enrolling 10th, 11th, and 12th grade pupils in its courses.
A postsecondary institution may provide information about its programs to a secondary
school or to a pupil or parent and it may advertise or otherwise recruit or solicit a secondary
pupil to enroll in its programs on educational and programmatic grounds only except,
notwithstanding other law to the contrary, and for the 2014-2015 through 2019-2020
school years only, an eligible postsecondary institution may advertise or otherwise recruit
or solicit a secondary pupil residing in a school district with 700 students or more in grades
10, 11, and 12, to enroll in its programs on educational, programmatic, or financial grounds.

new text begin (b) new text end An institution must not enroll secondary pupils, for postsecondary enrollment
options purposes, in remedial, developmental, or other courses that are not college level
except when a student eligible to participate new text begin and enrolled new text end in the graduation incentives
program under section 124D.68 enrolls full time in a middle or early college program new text begin . A
middle or early college program must be new text end specifically designed to allow the student to earn
dual high school and college credit new text begin with a well-defined pathway to allow the student to earn
a postsecondary degree or credential new text end . In this case, the student shall receive developmental
college credit and not college credit for completing remedial or developmental courses.

new text begin (c) new text end Once a pupil has been enrolled in any postsecondary course under this section,
the pupil shall not be displaced by another student.

deleted text begin (b) deleted text end new text begin (d) new text end If a postsecondary institution enrolls a secondary school pupil in a course
under this section, the postsecondary institution also must enroll in the same course an
otherwise enrolled and qualified postsecondary student who qualifies as a veteran under
section 197.447, and demonstrates to the postsecondary institution's satisfaction that the
institution's established enrollment timelines were not practicable for that student.

Sec. 14.

Minnesota Statutes 2014, section 124D.10, subdivision 3, is amended to read:

Subd. 3.

Authorizer.

(a) For purposes of this section, the terms defined in this
subdivision have the meanings given them.

"Application" to receive approval as an authorizer means the proposal an eligible
authorizer submits to the commissioner under paragraph (c) before that authorizer is able
to submit any affidavit to charter to a school.

"Application" under subdivision 4 means the charter school business plan a
school developer submits to an authorizer for approval to establish a charter school that
documents the school developer's mission statement, school purposes, program design,
financial plan, governance and management structure, and background and experience,
plus any other information the authorizer requests. The application also shall include a
"statement of assurances" of legal compliance prescribed by the commissioner.

"Affidavit" means a written statement the authorizer submits to the commissioner
for approval to establish a charter school under subdivision 4 attesting to its review and
approval process before chartering a school.

(b) The following organizations may authorize one or more charter schools:

(1) a school board, intermediate school district school board, or education district
organized under sections 123A.15 to 123A.19;

(2) a charitable organization under section 501(c)(3) of the Internal Revenue Code
of 1986, excluding a nonpublic sectarian or religious institution; any person other than a
natural person that directly or indirectly, through one or more intermediaries, controls,
is controlled by, or is under common control with the nonpublic sectarian or religious
institution; and any other charitable organization under this clause that in the federal IRS
Form 1023, Part IV, describes activities indicating a religious purpose, that:

(i) is a member of the Minnesota Council of Nonprofits or the Minnesota Council on
Foundations;

(ii) is registered with the attorney general's office; and

(iii) is incorporated in the state of Minnesota and has been operating continuously
for at least five years but does not operate a charter school;

(3) a Minnesota private college, notwithstanding clause (2), that grants two- or
four-year degrees and is registered with the Minnesota Office of Higher Education under
chapter 136A; community college, state university, or technical college governed by the
Board of Trustees of the Minnesota State Colleges and Universities; or the University
of Minnesota;

(4) a nonprofit corporation subject to chapter 317A, described in section 317A.905,
and exempt from federal income tax under section 501(c)(6) of the Internal Revenue Code
of 1986, may authorize one or more charter schools if the charter school has operated
for at least three years under a different authorizer and if the nonprofit corporation has
existed for at least 25 years; or

(5) single-purpose authorizers formed as charitable, nonsectarian organizations
under section 501(c)(3) of the Internal Revenue Code of 1986 and incorporated in the state
of Minnesota under chapter 317A as a corporation with no members or under section
322B.975 as a nonprofit limited liability company for the sole purpose of chartering schools.
Eligible organizations interested in being approved as an authorizer under this paragraph
must submit a proposal to the commissioner that includes the provisions of paragraph (c)
and a five-year financial plan. Such authorizers shall consider and approve charter school
applications using the criteria provided in subdivision 4 and shall not limit the applications
it solicits, considers, or approves to any single curriculum, learning program, or method.

(c) An eligible authorizer under this subdivision must apply to the commissioner for
approval as an authorizer before submitting any affidavit to the commissioner to charter
a school. The application for approval as a charter school authorizer must demonstrate
the applicant's ability to implement the procedures and satisfy the criteria for chartering a
school under this section. The commissioner must approve or disapprove an application
within 45 business days of the application deadline. If the commissioner disapproves
the application, the commissioner must notify the applicant of the specific deficiencies
in writing and the applicant then has 20 business days to address the deficiencies to the
commissioner's satisfaction. After the 20 business days expire, the commissioner has 15
business days to make a final decision to approve or disapprove the application. Failing to
address the deficiencies to the commissioner's satisfaction makes an applicant ineligible to
be an authorizer. The commissioner, in establishing criteria for approval, must consider
the applicant's:

(1) capacity and infrastructure;

(2) application criteria and process;

(3) contracting process;

(4) ongoing oversight and evaluation processes; and

(5) renewal criteria and processes.

(d) An applicant must include in its application to the commissioner to be an
approved authorizer at least the following:

(1) how chartering schools is a way for the organization to carry out its mission;

(2) a description of the capacity of the organization to serve as an authorizer,
including the personnel who will perform the authorizing duties, their qualifications, the
amount of time they will be assigned to this responsibility, and the financial resources
allocated by the organization to this responsibility;

(3) a description of the application and review process the authorizer will use to
make decisions regarding the granting of charters;

(4) a description of the type of contract it will arrange with the schools it charters
that meets the provisions of subdivision 6;

(5) the process to be used for providing ongoing oversight of the school consistent
with the contract expectations specified in clause (4) that assures that the schools chartered
are complying with both the provisions of applicable law and rules, and with the contract;

(6) a description of the criteria and process the authorizer will use to grant expanded
applications under subdivision 4, paragraph (j);

(7) the process for making decisions regarding the renewal or termination of
the school's charter based on evidence that demonstrates the academic, organizational,
and financial competency of the school, including its success in increasing student
achievement and meeting the goals of the charter school agreement; and

(8) an assurance specifying that the organization is committed to serving as an
authorizer for the full five-year term.

(e) A disapproved applicant under this section may resubmit an application during a
future application period.

(f) If the governing board of an approved authorizer votes to withdraw as an
approved authorizer for a reason unrelated to any cause under subdivision 23, the
authorizer must notify all its chartered schools and the commissioner in writing by July 15
of its intent to withdraw as an authorizer on June 30 in the next calendar year new text begin , regardless
of when the authorizer's five-year term of approval ends new text end . The commissioner may approve
the transfer of a charter school to a new authorizer under this paragraph after the new
authorizer submits an affidavit to the commissioner.

(g) The authorizer must participate in department-approved training.

(h) The commissioner shall review an authorizer's performance every five years in
a manner and form determined by the commissioner and may review an authorizer's
performance more frequently at the commissioner's own initiative or at the request of a
charter school operator, charter school board member, or other interested party. The
commissioner, after completing the review, shall transmit a report with findings to the
authorizer. If, consistent with this section, the commissioner finds that an authorizer has
not fulfilled the requirements of this section, the commissioner may subject the authorizer
to corrective action, which may include terminating the contract with the charter school
board of directors of a school it chartered. The commissioner must notify the authorizer
in writing of any findings that may subject the authorizer to corrective action and
the authorizer then has 15 business days to request an informal hearing before the
commissioner takes corrective action. If the commissioner terminates a contract between
an authorizer and a charter school under this paragraph, the commissioner may assist the
charter school in acquiring a new authorizer.

(i) The commissioner may at any time take corrective action against an authorizer,
including terminating an authorizer's ability to charter a school for:

(1) failing to demonstrate the criteria under paragraph (c) under which the
commissioner approved the authorizer;

(2) violating a term of the chartering contract between the authorizer and the charter
school board of directors;

(3) unsatisfactory performance as an approved authorizer; or

(4) any good cause shown that provides the commissioner a legally sufficient reason
to take corrective action against an authorizer.

Sec. 15.

Minnesota Statutes 2014, section 124D.10, subdivision 4, is amended to read:

Subd. 4.

Formation of school.

(a) An authorizer, after receiving an application from
a school developer, may charter a licensed teacher under section 122A.18, subdivision
1, or a group of individuals that includes one or more licensed teachers under section
122A.18, subdivision 1, to operate a school subject to the commissioner's approval of the
authorizer's affidavit under paragraph (b). The school must be organized and operated as a
nonprofit corporation under chapter 317A and the provisions under the applicable chapter
shall apply to the school except as provided in this section.

Notwithstanding sections 465.717 and 465.719, a school district, subject to this
section and section 124D.11, may create a corporation for the purpose of establishing a
charter school.

(b) Before the operators may establish and operate a school, the authorizer must file
an affidavit with the commissioner stating its intent to charter a school. An authorizer
must file a separate affidavit for each school it intends to charter. An authorizer must file
an affidavit deleted text begin by May 1 to be able to charter a new school in the next school year after the
commissioner approves the authorizer's affidavit deleted text end new text begin at least 14 months before July 1 of the
year the new charter school plans to serve students new text end . The affidavit must state the terms and
conditions under which the authorizer would charter a school and how the authorizer
intends to oversee the fiscal and student performance of the charter school and to comply
with the terms of the written contract between the authorizer and the charter school
board of directors under subdivision 6. The commissioner must approve or disapprove
the authorizer's affidavit within 60 business days of receipt of the affidavit. If the
commissioner disapproves the affidavit, the commissioner shall notify the authorizer of
the deficiencies in the affidavit and the authorizer then has 20 business days to address the
deficiencies. The commissioner must notify the authorizer of final approval or disapproval
within 15 business days after receiving the authorizer's response to the deficiencies in the
affidavit. If the authorizer does not address deficiencies to the commissioner's satisfaction,
the commissioner's disapproval is final. Failure to obtain commissioner approval precludes
an authorizer from chartering the school that is the subject of this affidavit.

(c) The authorizer may prevent an approved charter school from opening for
operation if, among other grounds, the charter school violates this section or does not meet
the ready-to-open standards that are part of the authorizer's oversight and evaluation
process or are stipulated in the charter school contract.

(d) The operators authorized to organize and operate a school, before entering into
a contract or other agreement for professional or other services, goods, or facilities,
must incorporate as a nonprofit corporation under chapter 317A and must establish a
board of directors composed of at least five members who are not related parties until a
timely election for members of the ongoing charter school board of directors is held
according to the school's articles and bylaws under paragraph (f). A charter school board
of directors must be composed of at least five members who are not related parties.
Staff members employed at the school, including teachers providing instruction under a
contract with a cooperative, members of the board of directors, and all parents or legal
guardians of children enrolled in the school are the voters eligible to elect the members
of the school's board of directors. A charter school must notify eligible voters of the
school board election dates at least 30 days before the election. Board of director meetings
must comply with chapter 13D.

(e) A charter school shall publish and maintain on the school's official Web site: (1)
the minutes of meetings of the board of directors, and of members and committees having
any board-delegated authority, for at least one calendar year from the date of publication;
(2) directory information for members of the board of directors and committees having
board-delegated authority; and (3) identifying and contact information for the school's
authorizer. Identifying and contact information for the school's authorizer must be
included in other school materials made available to the public. Upon request of an
individual, the charter school must also make available in a timely fashion financial
statements showing all operations and transactions affecting income, surplus, and deficit
during the school's last annual accounting period; and a balance sheet summarizing assets
and liabilities on the closing date of the accounting period. A charter school also must
include that same information about its authorizer in other school materials that it makes
available to the public.

(f) Every charter school board member shall attend annual training throughout the
member's term on the board. All new board members shall attend initial training on
the board's role and responsibilities, employment policies and practices, and financial
management. A new board member who does not begin the required initial training within
six months after being seated and complete that training within 12 months of being seated
on the board is automatically ineligible to continue to serve as a board member. The
school shall include in its annual report the training attended by each board member
during the previous year.

(g) The ongoing board must be elected before the school completes its third year of
operation. Board elections must be held during the school year but may not be conducted
on days when the school is closed for holidays, breaks, or vacations. The charter school
board of directors shall be composed of at least five nonrelated members and include: (i)
at least one licensed teacher employed as a teacher at the school or providing instruction
under contract between the charter school and a cooperative; (ii) at least one parent or
legal guardian of a student enrolled in the charter school who is not an employee of
the charter school; and (iii) at least one interested community member who resides in
Minnesota and is not employed by the charter school and does not have a child enrolled
in the school. The board may include a majority of teachers described in this paragraph
or parents or community members, or it may have no clear majority. The chief financial
officer and the chief administrator may only serve as ex-officio nonvoting board members.
No charter school employees shall serve on the board other than teachers under item (i).
Contractors providing facilities, goods, or services to a charter school shall not serve on
the board of directors of the charter school. Board bylaws shall outline the process and
procedures for changing the board's governance structure, consistent with chapter 317A.
A board may change its governance structure only:

(1) by a majority vote of the board of directors and a majority vote of the licensed
teachers employed by the school as teachers, including licensed teachers providing
instruction under a contract between the school and a cooperative; and

(2) with the authorizer's approval.

Any change in board governance structure must conform with the composition of
the board established under this paragraph.

(h) The granting or renewal of a charter by an authorizer must not be conditioned
upon the bargaining unit status of the employees of the school.

(i) The granting or renewal of a charter school by an authorizer must not be
contingent on the charter school being required to contract, lease, or purchase services
from the authorizer. Any potential contract, lease, or purchase of service from an
authorizer must be disclosed to the commissioner, accepted through an open bidding
process, and be a separate contract from the charter contract. The school must document
the open bidding process. An authorizer must not enter into a contract to provide
management and financial services for a school that it authorizes, unless the school
documents that it received at least two competitive bids.

(j) A charter school may apply to the authorizer to amend the school charter to
expand the operation of the school to additional grades or sites that would be students'
primary enrollment site beyond those defined in the original affidavit approved by the
commissioner. After approving the school's application, the authorizer shall submit a
supplementary affidavit in the form and manner prescribed by the commissioner. The
authorizer must file a supplement affidavit by October 1 to be eligible to expand in the next
school year. The supplementary affidavit must document that the school has demonstrated
to the satisfaction of the authorizer the following:

(1) the need for the expansion with supporting long-range enrollment projections;

(2) a longitudinal record of demonstrated student academic performance and growth
on statewide assessments under chapter 120B or on other academic assessments that
measure longitudinal student performance and growth approved by the charter school's
board of directors and agreed upon with the authorizer;

(3) a history of sound school finances and a finance plan to implement the expansion
in a manner to promote the school's financial sustainability; and

(4) board capacity and an administrative and management plan to implement its
expansion.

(k) The commissioner shall have 30 business days to review and comment on the
supplemental affidavit. The commissioner shall notify the authorizer in writing of any
deficiencies in the supplemental affidavit and the authorizer then has 20 business days to
address, to the commissioner's satisfaction, any deficiencies in the supplemental affidavit.
The commissioner must notify the authorizer of final approval or disapproval within 15
business days after receiving the authorizer's response to the deficiencies in the affidavit.
The school may not expand grades or add sites until the commissioner has approved the
supplemental affidavit. The commissioner's approval or disapproval of a supplemental
affidavit is final.

Sec. 16.

Minnesota Statutes 2014, section 124D.10, subdivision 8, is amended to read:

Subd. 8.

Federal, state, and local requirements.

(a) A charter school shall meet all
federal, state, and local health and safety requirements applicable to school districts.

(b) A school must comply with statewide accountability requirements governing
standards and assessments in chapter 120B.

(c) A school authorized by a school board may be located in any district, unless the
school board of the district of the proposed location disapproves by written resolution.

(d) A charter school must be nonsectarian in its programs, admission policies,
employment practices, and all other operations. An authorizer may not authorize a charter
school or program that is affiliated with a nonpublic sectarian school or a religious
institution. A charter school student must be released for religious instruction, consistent
with section 120A.22, subdivision 12, clause (3).

(e) Charter schools must not be used as a method of providing education or
generating revenue for students who are being home-schooled. This paragraph does not
apply to shared time aid under section 126C.19.

(f) The primary focus of a charter school must be to provide a comprehensive
program of instruction for at least one grade or age group from five through 18 years of
age. Instruction may be provided to people older than 18 years of age. A charter school
may offer a free new text begin or fee-based new text end preschool or prekindergarten that meets high-quality early
learning instructional program standards that are aligned with Minnesota's early learning
standards for children.

(g) new text begin Except as provided in paragraph (f), new text end a charter school may not charge tuition.

(h) A charter school is subject to and must comply with chapter 363A and section
121A.04.

(i) Once a student is enrolled in the school, the student is considered enrolled in the
school until the student formally withdraws or is expelled under the Pupil Fair Dismissal
Act in sections 121A.40 to 121A.56. A charter school is subject to and must comply with
the Pupil Fair Dismissal Act, sections 121A.40 to 121A.56, and the Minnesota Public
School Fee Law, sections 123B.34 to 123B.39.

(j) A charter school is subject to the same financial audits, audit procedures, and
audit requirements as a district, except as required under subdivision 6a. Audits must be
conducted in compliance with generally accepted governmental auditing standards, the
federal Single Audit Act, if applicable, and section 6.65. A charter school is subject
to and must comply with sections 15.054; 118A.01; 118A.02; 118A.03; 118A.04;
118A.05; 118A.06; 471.38; 471.391; 471.392; and 471.425. The audit must comply with
the requirements of sections 123B.75 to 123B.83, except to the extent deviations are
necessary because of the program at the school. Deviations must be approved by the
commissioner and authorizer. The Department of Education, state auditor, legislative
auditor, or authorizer may conduct financial, program, or compliance audits. A charter
school determined to be in statutory operating debt under sections 123B.81 to 123B.83
must submit a plan under section 123B.81, subdivision 4.

(k) A charter school is a district for the purposes of tort liability under chapter 466.

(l) A charter school must comply with chapters 13 and 13D; and sections 120A.22,
subdivision 7; 121A.75; and 260B.171, subdivisions 3 and 5.

(m) A charter school is subject to the Pledge of Allegiance requirement under
section 121A.11, subdivision 3.

(n) A charter school offering online courses or programs must comply with section
124D.095.

(o) A charter school and charter school board of directors are subject to chapter 181.

(p) A charter school must comply with section 120A.22, subdivision 7, governing
the transfer of students' educational records and sections 138.163 and 138.17 governing
the management of local records.

(q) A charter school that provides early childhood health and developmental
screening must comply with sections 121A.16 to 121A.19.

(r) A charter school that provides school-sponsored youth athletic activities must
comply with section 121A.38.

(s) A charter school is subject to and must comply with continuing truant notification
under section 260A.03.

(t) A charter school must develop and implement a teacher evaluation and peer
review process under section 122A.40, subdivision 8, paragraph (b), clauses (2) to
(13). The teacher evaluation process in this paragraph does not create any additional
employment rights for teachers.

(u) A charter school must adopt a policy, plan, budget, and process, consistent with
section 120B.11, to review curriculum, instruction, and student achievement and strive
for the world's best workforce.

(v) A charter school must comply with section 121A.031 governing policies on
prohibited conduct.

(w) A charter school must comply with all pupil transportation requirements in
section 123B.88, subdivision 1. A charter school must not require parents to surrender
their rights to pupil transportation under section 123B.88, subdivision 2.

Sec. 17.

Minnesota Statutes 2014, section 124D.10, subdivision 9, is amended to read:

Subd. 9.

Admission requirements.

(a) A charter school may limit admission to:

(1) pupils within an age group or grade level;

(2) pupils who are eligible to participate in the graduation incentives program under
section 124D.68; or

(3) residents of a specific geographic area in which the school is located when the
majority of students served by the school are members of underserved populations.

(b) A charter school shall enroll an eligible pupil who submits a timely application,
unless the number of applications exceeds the capacity of a program, class, grade level, or
building. In this case, pupils must be accepted by lot. The charter school must develop
and publish, including on its Web site, a lottery policy and process that it must use when
accepting pupils by lot.

(c) A charter school shall give enrollment preference to a sibling of an enrolled pupil
and to a foster child of that pupil's parents and may give preference for enrolling children
of the school's staff before accepting other pupils by lot. A charter school that is located in
Duluth township in St. Louis County and admits students in kindergarten through grade
6 must give enrollment preference to students residing within a five-mile radius of the
school and to the siblings of enrolled children. deleted text begin A deleted text end new text begin If a charter school has a preschool or
prekindergarten program under subdivision 8, paragraph (f), that is free to all participants,
the new text end charter school may give enrollment preference to children currently enrolled in the
school's deleted text begin free deleted text end preschool or prekindergarten program deleted text begin under subdivision 8, paragraph (f), deleted text end
who are eligible to enroll in kindergarten in the next school year.

(d) A person shall not be admitted to a charter school (1) as a kindergarten pupil,
unless the pupil is at least five years of age on September 1 of the calendar year in which
the school year for which the pupil seeks admission commences; or (2) as a first grade
student, unless the pupil is at least six years of age on September 1 of the calendar year in
which the school year for which the pupil seeks admission commences or has completed
kindergarten; except that a charter school may establish deleted text begin and publish on its Web site deleted text end a policy
for admission of selected pupils at an earlier age, consistent with the enrollment process
in paragraphs (b) and (c). new text begin If established, an early admissions policy must describe the
process and procedures for comprehensive evaluation in cognitive, social, and emotional
developmental domains to help determine the child's ability to meet kindergarten grade
expectations and progress to first grade in the subsequent year. The comprehensive
evaluation must use valid and reliable instrumentation, be aligned with state kindergarten
expectations, and include a parent report and teacher observations of the child's
knowledge, skills, and abilities. The early admissions policy must be made available to
parents in an accessible format and is subject to review by the commissioner of education.
new text end

(e) Except as permitted in paragraph (d), a charter school may not limit admission
to pupils on the basis of intellectual ability, measures of achievement or aptitude, or
athletic ability and may not establish any criteria or requirements for admission that are
inconsistent with this subdivision.

(f) The charter school shall not distribute any services or goods of value to students,
parents, or guardians as an inducement, term, or condition of enrolling a student in a
charter school.

Sec. 18.

Minnesota Statutes 2014, section 124D.10, subdivision 12, is amended to read:

Subd. 12.

Pupils with a disability.

A charter school must comply with sections
125A.02, 125A.03 to 125A.24, deleted text begin and deleted text end 125A.65 new text begin , and 125A.75 new text end and rules relating to the
education of pupils with a disability as though it were a district.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal year 2016 and later.
new text end

Sec. 19.

Minnesota Statutes 2014, section 124D.10, subdivision 14, is amended to read:

Subd. 14.

Annual public reports.

(a) A charter school must publish an annual
report approved by the board of directors. The annual report must at least include
information on school enrollment, student attrition, governance and management, staffing,
finances, academic performance, innovative practices and implementation, and future
plans. new text begin A charter school may combine this report with the reporting required under section
120B.11. new text end A charter school must post the annual report on the school's official Web site. A
charter school must also distribute the annual report by publication, mail, or electronic
means to its authorizer, school employees, and parents and legal guardians of students
enrolled in the charter school. The reports are public data under chapter 13.

(b) The commissioner shall establish specifications for an authorizer's annual public
report that is part of the system to evaluate authorizer performance under subdivision
3, paragraph (h). The report shall at least include key indicators of school academic,
operational, and financial performance.

Sec. 20.

Minnesota Statutes 2014, section 124D.10, is amended by adding a
subdivision to read:

new text begin Subd. 24a. new text end

new text begin Merger. new text end

new text begin (a) Two or more charter schools may merge under chapter
317A. The effective date of a merger must be July 1. The merged school must continue
under the identity of one of the merging schools. A new charter contract under subdivision
6 must be executed by July 1. The authorizer must submit to the commissioner a copy of
the new signed charter contract within ten business days of its execution.
new text end

new text begin (b) Each merging school must submit a separate year-end report for the previous year
for that school only. After the final fiscal year of the premerger schools is closed out, the
fund balances and debts from the merging schools must be transferred to the merged school.
new text end

new text begin (c) The merged school is eligible to receive aid from programs requiring approved
applications equal to the sum of the aid of all of the merging schools. The merged school
is eligible to receive aid from programs based on previous years' enrollments equal to the
sum of the applicable enrollment of all of the merging schools.
new text end

Sec. 21.

Minnesota Statutes 2014, section 124D.128, subdivision 1, is amended to read:

Subdivision 1.

Program established.

A learning year program provides instruction
throughout the year on an extended year calendar, extended school day calendar, or
both. deleted text begin A pupil may participate in the program and accelerate attainment of grade level
requirements or graduation requirements. deleted text end A learning year program may begin after the
close of the regular school year in June. The program may be for students in one or more
grade levels from kindergarten through grade 12.

Sec. 22.

Minnesota Statutes 2014, section 124D.72, is amended to read:

124D.72 POLICY.

The legislature finds that a more adequate new text begin and relevant new text end education is needed for
American Indian people in the state of Minnesota. The legislature recognizes the
unique educational and culturally related academic needs of American Indian people.
The legislature also is concerned about the lack of American Indian teachers new text begin as well as
other professionals new text end in the state. Therefore, pursuant to the policy of the state to ensure
equal educational opportunity to every individual, it is the purpose of sections 124D.71
to 124D.82 to provide for American Indian education programs deleted text begin specially deleted text end new text begin specifically new text end
designed to meet these unique educational or culturally related academic needs or both.

Sec. 23.

Minnesota Statutes 2014, section 124D.73, subdivision 3, is amended to read:

Subd. 3.

deleted text begin Advisory task force deleted text end new text begin Tribal Nations Education Committee new text end .

deleted text begin "Advisory
task force" deleted text end new text begin "Tribal Nations Education Committee" new text end means the deleted text begin state advisory task force deleted text end new text begin
committee established through tribal directive that the commissioner seeks consultation
with new text end on American Indian education programs new text begin , policy, and all matters pertaining to the
education of Minnesota's American Indian students new text end .

Sec. 24.

Minnesota Statutes 2014, section 124D.73, subdivision 4, is amended to read:

Subd. 4.

Participating school; American Indian school.

"Participating school"
and "American Indian school" mean a school that:

(1) is not operated by a school district; deleted text begin and
deleted text end

(2) is eligible for a grant under new text begin federal new text end Title deleted text begin IV of the Indian deleted text end new text begin VII of the Elementary
and Secondary new text end Education Act for the education of American Indian children deleted text begin . deleted text end new text begin ; and
new text end

new text begin (3) is eligible for and receives any source of state aid.
new text end

Sec. 25.

Minnesota Statutes 2014, section 124D.74, subdivision 1, is amended to read:

Subdivision 1.

Program described.

American Indian education programs are
programs in public elementary and secondary schools, nonsectarian nonpublic, community,
tribal, charter, or alternative schools enrolling American Indian children designed to:

(1) support postsecondary preparation for pupils;

(2) support the academic achievement of American Indian students deleted text begin with identified
focus to improve reading and mathematic skills deleted text end ;

(3) make the curriculum deleted text begin more deleted text end relevant to the needs, interests, new text begin indigenous language,
new text end and cultural heritage of American Indian pupils;

(4) provide positive reinforcement of the self-image of American Indian pupils;

(5) develop intercultural awareness among pupils, parents, and staff; and

(6) supplement, not supplant, state and federal educational and cocurricular programs.

Program deleted text begin components may include: development of support components for students deleted text end new text begin
services designed to increase completion and graduation rates of American Indian
students must include emphasis new text end in the areas of academic achievement, retention, and
attendance; development of support deleted text begin components deleted text end new text begin services new text end for staff, including in-service
training and technical assistance in methods of teaching American Indian pupils; research
projects, including deleted text begin experimentation with deleted text end new text begin innovative teaching approaches new text end and evaluation
of methods of relating to American Indian pupils; provision of deleted text begin personal and vocational deleted text end new text begin
career new text end counseling to American Indian pupils; modification of curriculum, instructional
methods, and administrative procedures to meet the needs of American Indian pupils; and
supplemental instruction in American Indian language, literature, history, and culture.
Districts offering programs may make contracts for the provision of program deleted text begin components deleted text end new text begin
services new text end by establishing cooperative liaisons with tribal programs and American Indian
social service agencies. These programs may also be provided as components of early
childhood and family education programs.

Sec. 26.

Minnesota Statutes 2014, section 124D.74, subdivision 3, is amended to read:

Subd. 3.

Enrollment of other children; shared time enrollment.

To the extent
it is economically feasible, a district or participating school may make provision for the
voluntary enrollment of non-American Indian children in the instructional components of
an American Indian education program in order that they may acquire an understanding of
the cultural heritage of the American Indian children for whom that particular program is
designed. However, in determining eligibility to participate in a program, priority must be
given to American Indian children. American Indian children and other children enrolled
in an existing nonpublic school system may be enrolled on a shared time basis in new text begin all
academic, targeted services, and new text end American Indian education programs.

Sec. 27.

Minnesota Statutes 2014, section 124D.74, subdivision 6, is amended to read:

Subd. 6.

Nonverbal courses and extracurricular activities.

In predominantly
nonverbal subjects, such as art, music, and physical education, American Indian children
shall participate fully and on an equal basis with their deleted text begin contemporaries deleted text end new text begin peers new text end in school
classes provided for these subjects. Every school district or participating school shall
ensure to children enrolled in American Indian education programs an equal and
meaningful opportunity to participate fully with other children in all extracurricular
activities. This subdivision shall not be construed to prohibit instruction in nonverbal
subjects or extracurricular activities which relate to the cultural heritage of the American
Indian children, or which are otherwise necessary to accomplish the objectives described
in sections 124D.71 to 124D.82.

Sec. 28.

Minnesota Statutes 2014, section 124D.75, subdivision 1, is amended to read:

Subdivision 1.

American Indian language and culture education licenses.

The
Board of Teaching new text begin , in consultation with the Tribal Nations Education Committee, new text end must
grant initial and continuing teaching licenses in American Indian language and culture
education that bear the same duration as other initial and continuing licenses. The board
must grant licenses to persons who present satisfactory evidence that they:

(1) possess competence in an American Indian language or possess unique
qualifications relative to or knowledge and understanding of American Indian history
and culture; or

(2) possess a bachelor's degree or other academic degree approved by the board or
meet such requirements as to course of study and training as the board may prescribe, or
possess such relevant experience as the board may prescribe.

This evidence may be presented by affidavits, new text begin tribal new text end resolutions, or by such other
methods as the board may prescribe. Individuals may present applications for licensure on
their own behalf or these applications may be submitted by the superintendent or other
authorized official of a school district, participating school, or an American Indian school.

Sec. 29.

Minnesota Statutes 2014, section 124D.75, subdivision 2, is amended to read:

Subd. 2.

Persons holding general teaching licenses.

A person holding a general
teaching license who presents the board with satisfactory evidence of competence in an
American Indian language, or new text begin deep new text end knowledge and understanding of American Indian
history and culture may be licensed under this section.

Sec. 30.

Minnesota Statutes 2014, section 124D.75, subdivision 3, is amended to read:

Subd. 3.

Resolution or letter.

All persons applying for a license under this section
must submit to the board a resolution or letter of support signed by an American Indian
tribal government deleted text begin or its designee deleted text end . All persons holding a license under this section deleted text begin on July
1, 1995, deleted text end must have on file or file with the board a resolution or letter of support signed by
a tribal government deleted text begin or its designee by January 1, 1996, or the next renewal date of the
license thereafter deleted text end .

Sec. 31.

Minnesota Statutes 2014, section 124D.75, subdivision 9, is amended to read:

Subd. 9.

Affirmative efforts in hiring.

In hiring for all positions in these programs,
school districts and participating schools shall give preference to and make affirmative
efforts to seek, recruit, and employ persons who share the culture of the American Indian
children who are enrolled in the program. The district or participating school deleted text begin shall deleted text end new text begin must new text end
provide procedures for the involvement of the parent advisory committees in deleted text begin designing
the procedures for deleted text end the recruitment, screening and selection of applicants. This subdivision
shall not be construed to limit the school board's authority to hire and discharge personnel.

Sec. 32.

Minnesota Statutes 2014, section 124D.76, is amended to read:

124D.76 deleted text begin TEACHERS AIDES; deleted text end COMMUNITY COORDINATORS new text begin , INDIAN
HOME/SCHOOL LIAISONS, PARAPROFESSIONALS new text end .

In addition to employing American Indian language and culture education teachers,
each district or participating school providing programs pursuant to sections 124D.71 to
124D.82 may employ deleted text begin teachers' aides deleted text end new text begin paraprofessionals new text end . deleted text begin Teachers' aides deleted text end new text begin Paraprofessionals new text end
must not be employed for the purpose of supplanting American Indian language and
culture education teachers.

Any district or participating school which conducts American Indian education
programs pursuant to sections 124D.71 to 124D.82 must employ one or more full-time
or part-time community coordinators new text begin or Indian home/school liaisons new text end if there are 100 or
more students enrolled in the deleted text begin program deleted text end new text begin district new text end . Community coordinators shall promote
communication understanding, and cooperation between the schools and the community
and shall visit the homes of children who are to be enrolled in an American Indian
education program in order to convey information about the program.

Sec. 33.

Minnesota Statutes 2014, section 124D.78, is amended to read:

124D.78 PARENT AND COMMUNITY PARTICIPATION.

Subdivision 1.

Parent committee.

School boards and American Indian schools
must provide for the maximum involvement of parents of children enrolled in education
programs, programs for elementary and secondary grades, special education programs,
and support services. Accordingly, the board of a school district in which there are ten
or more American Indian deleted text begin children deleted text end new text begin students new text end enrolled and each American Indian school
must establish deleted text begin a deleted text end new text begin an American Indian education new text end parent new text begin advisory new text end committee. If a committee
whose membership consists of a majority of parents of American Indian children has been
or is established according to federal, tribal, or other state law, that committee may serve
as the committee required by this section and is subject to, at least, the requirements of
this subdivision and subdivision 2.

The new text begin American Indian education new text end parent new text begin advisory new text end committee must develop its
recommendations in consultation with the curriculum advisory committee required by
section 120B.11, subdivision 3. This committee must afford parents the necessary
information and the opportunity effectively to express their views concerning all aspects
of American Indian education and the educational needs of the American Indian children
enrolled in the school or program. deleted text begin The committee must also address the need for adult
education programs for American Indian people in the community. deleted text end The new text begin school new text end board or
American Indian school must ensure that programs are planned, operated, and evaluated
with the involvement of and in consultation with parents of deleted text begin children deleted text end new text begin students new text end served by
the programs.

Subd. 2.

Resolution of concurrence.

Prior to deleted text begin December deleted text end new text begin March new text end 1, the new text begin school
new text end board or American Indian school must submit to the department a copy of a resolution
adopted by the new text begin American Indian education new text end parent new text begin advisory new text end committee. The copy must be
signed by the chair of the committee and must state whether the committee concurs with
the educational programs for American Indian deleted text begin children deleted text end new text begin students new text end offered by the school
board or American Indian school. If the committee does not concur with the educational
programs, the reasons for nonconcurrence and recommendations shall be submitted with
the resolution. By resolution, the board must respond new text begin in writing within 60 days new text end , in cases
of nonconcurrence, to each recommendation made by the committee and state its reasons
for not implementing the recommendations.

Subd. 3.

Membership.

The new text begin American Indian education parent advisory new text end committee
must be composed of parents of children eligible to be enrolled in American Indian
education programs; secondary students eligible to be served; American Indian language
and culture education teachers and deleted text begin aides deleted text end new text begin paraprofessionals new text end ; American Indian teachers;
counselors; adult American Indian people enrolled in educational programs; and
representatives from community groups. A majority of each committee must be parents
of children enrolled or eligible to be enrolled in the programs. The number of parents
of American Indian and non-American Indian children shall reflect approximately the
proportion of children of those groups enrolled in the programs.

Subd. 4.

Alternate committee.

If the organizational membership or the board
of directors of an American Indian school consists of parents of children attending the
school, that membership or board may serve also as the new text begin American Indian education new text end parent
new text begin advisory new text end committee.

Sec. 34.

Minnesota Statutes 2014, section 124D.79, subdivision 1, is amended to read:

Subdivision 1.

new text begin American Indian new text end community involvement.

The commissioner
must provide for the maximum involvement of the deleted text begin state committees on American Indian
education deleted text end new text begin Tribal Nations Education Committee new text end , parents of American Indian children,
secondary students eligible to be served, American Indian language and culture education
teachers, American Indian teachers, deleted text begin teachers' aides deleted text end new text begin paraprofessionals new text end , representatives of
community groups, and persons knowledgeable in the field of American Indian education,
in the formulation of policy and procedures relating to the administration of sections
124D.71 to 124D.82. The commissioner must annually hold a field hearing on Indian
education to gather input from American Indian educators, parents, and students on the
state of American Indian education in Minnesota. Results of the hearing must be made
available to all 11 tribal nations for review and comment.

Sec. 35.

Minnesota Statutes 2014, section 124D.79, subdivision 2, is amended to read:

Subd. 2.

Technical assistance.

The commissioner shall provide technical assistance
to districts, schools and postsecondary institutions for preservice and in-service training
for new text begin teachers, new text end American Indian education teachers and deleted text begin teacher's aides, deleted text end new text begin paraprofessionals
specifically designed to implement culturally responsive new text end teaching methods, new text begin culturally
based new text end curriculum development, testing and testing mechanisms, and the development of
materials for American Indian education programs.

Sec. 36.

Minnesota Statutes 2014, section 124D.791, subdivision 4, is amended to read:

Subd. 4.

Duties; powers.

The Indian education director shall:

(1) serve as the liaison for the department with the Tribal Nations Education
Committee, the 11 deleted text begin reservations deleted text end new text begin tribal communities in Minnesota new text end , the Minnesota Chippewa
tribe, new text begin and new text end the Minnesota Indian Affairs Council deleted text begin , and the Urban Advisory Council deleted text end ;

(2) evaluate the state of American Indian education in Minnesota;

(3) engage the tribal bodies, community groups, parents of children eligible to be
served by American Indian education programs, American Indian administrators and
teachers, persons experienced in the training of teachers for American Indian education
programs, the tribally controlled schools, and other persons knowledgeable in the field of
American Indian education and seek their advice on policies that can improve the quality
of American Indian education;

(4) advise the commissioner on American Indian education issues, including:

(i) issues facing American Indian students;

(ii) policies for American Indian education;

(iii) awarding scholarships to eligible American Indian students and in administering
the commissioner's duties regarding awarding of American Indian deleted text begin postsecondary
preparation deleted text end grants to school districts; and

(iv) administration of the commissioner's duties under sections 124D.71 to 124D.82
and other programs for the education of American Indian people;

(5) propose to the commissioner legislative changes that will improve the quality
of American Indian education;

(6) develop a strategic plan and a long-term framework for American Indian
education, in conjunction with the Minnesota Indian Affairs Council, that is updated every
five years and implemented by the commissioner, with goals to:

(i) increase American Indian student achievement, including increased levels of
proficiency and growth on statewide accountability assessments;

(ii) increase the number of American Indian teachers in public schools;

(iii) close the achievement gap between American Indian students and their more
advantaged peers;

(iv) increase the statewide graduation rate for American Indian students; and

(v) increase American Indian student placement in postsecondary programs and
the workforce; and

(7) keep the American Indian community informed about the work of the department
by reporting to the Tribal Nations Education Committee at each committee meeting.

Sec. 37.

Laws 2014, chapter 312, article 16, section 15, is amended to read:

Sec. 15. TEACHER DEVELOPMENT AND EVALUATION REVENUE.

(a) For fiscal year 2015 only, teacher development and evaluation revenue for a
school district, intermediate school district, or charter school new text begin with any school new text end that does
not have an alternative professional pay system agreement under Minnesota Statutes,
section 122A.414, subdivision 2, equals $302 times the number of full-time equivalent
teachers employed on October 1 of the previous school year new text begin in each school without
an alternative professional pay system under Minnesota Statutes, section 122A.414,
subdivision 2 new text end . new text begin Except for charter schools, new text end revenue under this section must be reserved for
teacher development and evaluation activities consistent with Minnesota Statutes, section
122A.40, subdivision 8, or Minnesota Statutes, section 122A.41, subdivision 5. For the
purposes of this section, "teacher" has the meaning given it in Minnesota Statutes, section
122A.40, subdivision 1, or Minnesota Statutes, section 122A.41, subdivision 1.

(b) Notwithstanding paragraph (a), the state total teacher development and evaluation
revenue entitlement must not exceed $10,000,000 for fiscal year 2015. The commissioner
must limit the amount of revenue under this section so as not to exceed this limit.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal year 2015.
new text end

Sec. 38. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2014, sections 120B.128; 120B.35, subdivision 5; and 126C.12,
subdivision 6, new text end new text begin are repealed.
new text end

ARTICLE 3

SPECIAL PROGRAMS

Section 1.

Minnesota Statutes 2014, section 122A.31, subdivision 1, is amended to read:

Subdivision 1.

Requirements for American sign language/English interpreters.

(a) In addition to any other requirements that a school district establishes, any person
employed to provide American sign language/English interpreting or sign transliterating
services on a full-time or part-time basis for a school district after July 1, 2000, must:

(1) hold current interpreter and transliterator certificates awarded by the Registry
of Interpreters for the Deaf (RID), or the general level interpreter proficiency certificate
awarded by the National Association of the Deaf (NAD), or a comparable state
certification from the commissioner of education; and

(2) satisfactorily complete an interpreter/transliterator training program affiliated
with an accredited educational institution.

(b) New graduates of an interpreter/transliterator program affiliated with an
accredited education institution shall be granted a two-year provisional certificate by
the commissioner. During the two-year provisional period, the interpreter/transliterator
must develop and implement an education plan in collaboration with a mentor under
paragraph (c).

(c) A mentor of a provisionally certified interpreter/transliterator must be an
interpreter/transliterator who has either NAD level IV or V certification or RID
certified interpreter and certified transliterator certification and have at least three
years interpreting/transliterating experience in any educational setting. The mentor, in
collaboration with the provisionally certified interpreter/transliterator, shall develop and
implement an education plan designed to meet the requirements of paragraph (a), clause
(1), and include a weekly on-site mentoring process.

(d) Consistent with the requirements of this paragraph, a person holding a
provisional certificate may apply to the commissioner for one time-limited extension.
The commissioner, in consultation with the Commission of Deaf, DeafBlind and
Hard-of-Hearing Minnesotans, must grant the person a time-limited extension of the
provisional certificate based on the following documentation:

(1) letters of support from the person's mentor, a parent of a pupil the person serves,
the special education director of the district in which the person is employed, and a
representative from the regional service center of the deaf and hard-of-hearing;

(2) records of the person's formal education, training, experience, and progress on
the person's education plan; and

(3) an explanation of why the extension is needed.

As a condition of receiving the extension, the person must comply with a plan
and the accompanying time line for meeting the requirements of this subdivision. A
committee composed of the deleted text begin director of the Minnesota Resource Center Serving Deaf
and Hard-of-Hearing, or the director's designee deleted text end new text begin representative of the commissioner new text end , a
representative of the Minnesota Association of Deaf Citizens, a representative of the
Minnesota Registry of Interpreters of the Deaf, and other appropriate persons selected
by the commissioner must develop the plan and time line for the person receiving the
extension.

(e) A school district may employ only an interpreter/transliterator who has been
certified under paragraph (a) or (b), or for whom a time-limited extension has been
granted under paragraph (d).

Sec. 2.

Minnesota Statutes 2014, section 122A.31, subdivision 2, is amended to read:

Subd. 2.

Oral or cued speech transliterators.

(a) In addition to any other
requirements that a school district establishes, any person employed to provide oral
transliterating or cued speech transliterating services on a full-time or part-time basis for a
school district after July 1, 2000, must hold a current applicable transliterator certificate
awarded by the national certifying association or comparable state certification from
the commissioner of education.

(b) To provide oral or cued speech transliterator services on a full-time or part-time
basis, a person employed in a school district must comply with paragraph (a). The
commissioner shall grant a nonrenewable, two-year certificate to a school district on behalf
of a person who has not yet attained a current applicable transliterator certificate under
paragraph (a). A person for whom a nonrenewable, two-year certificate is issued must
work under the direction of a licensed teacher who is skilled in language development
of individuals who are deaf or hard-of-hearing. A person for whom a nonrenewable,
two-year certificate is issued also must enroll in a state-approved training program and
demonstrate progress towards the certification required under paragraph (a) sufficient for
the person to be certified at the end of the two-year period.

(c) Consistent with the requirements of this paragraph, a person holding a
provisional certificate may apply to the commissioner for one time-limited extension. The
commissioner, in consultation with the Commission Serving Deaf and Hard-of-Hearing
People, must grant the person a time-limited extension of the provisional certificate based
on the following documentation:

(1) letters of support from the person's mentor, a parent of a pupil the person serves,
the special education director of the district in which the person is employed, and a
representative from the regional service center of the deaf and hard-of-hearing;

(2) records of the person's formal education, training, experience, and progress on
the person's education plan; and

(3) an explanation of why the extension is needed.

As a condition of receiving the extension, the person must comply with a plan
and the accompanying time line for meeting the requirements of this subdivision. A
committee composed of the deleted text begin director of the Minnesota Resource Center Serving Deaf
and Hard-of-Hearing, or the director's designee deleted text end new text begin representative of the commissioner new text end , a
representative of the Minnesota Association of Deaf Citizens, a representative of the
Minnesota Registry of Interpreters of the Deaf, and other appropriate persons selected
by the commissioner must develop the plan and time line for the person receiving the
extension.

Sec. 3.

Minnesota Statutes 2014, section 123B.88, subdivision 1, is amended to read:

Subdivision 1.

Providing transportation.

The board may provide for the
transportation of pupils to and from school and for any other purpose. The board may
also provide for the transportation of pupils to schools in other districts for grades and
departments not maintained in the district, including high school, at the expense of the
district, when funds are available therefor and if agreeable to the district to which it is
proposed to transport the pupils, for the whole or a part of the school year, as it may
deem advisable, and subject to its rules. In any district, the board must arrange for the
attendance of all pupils living two miles or more from the school, except pupils whose
transportation privileges have been voluntarily surrendered under subdivision 2, or
whose privileges have been revoked under section 123B.91, subdivision 1, clause (6), or
123B.90, subdivision 2. The district may provide for the transportation of or the boarding
and rooming of the pupils who may be more economically and conveniently provided for
by that means. Arrangements for attendance may include a requirement that parents or
guardians request transportation before it is provided. The board must provide new text begin necessary
new text end transportation deleted text begin to and from the home of deleted text end new text begin consistent with section 123B.92, subdivision 1,
paragraph (b), clause (4), for new text end a child with a disability not yet enrolled in kindergarten
deleted text begin when deleted text end new text begin for the provision of new text end special instruction and services under sections 125A.03 to
125A.24, 125A.26 to 125A.48, and 125A.65 deleted text begin are provided in a location other than in
the child's home deleted text end . new text begin Special instruction and services for a child with a disability not yet
enrolled in kindergarten include an individualized education program team placement
in an early childhood program when that placement is necessary to address the child's
level of functioning and needs. new text end When transportation is provided, scheduling of routes,
establishment of the location of bus stops, manner and method of transportation, control
and discipline of school children, the determination of fees, and any other matter relating
thereto must be within the sole discretion, control, and management of the board. The
district may provide for the transportation of pupils or expend a reasonable amount
for room and board of pupils whose attendance at school can more economically and
conveniently be provided for by that means or who attend school in a building rented or
leased by a district within the confines of an adjacent district.

Sec. 4.

Minnesota Statutes 2014, section 125A.023, subdivision 3, is amended to read:

Subd. 3.

Definitions.

For purposes of this section and section 125A.027, the
following terms have the meanings given them:

(a) "Health plan" means:

(1) a health plan under section 62Q.01, subdivision 3;

(2) a county-based purchasing plan under section 256B.692;

(3) a self-insured health plan established by a local government under section
471.617; or

(4) self-insured health coverage provided by the state to its employees or retirees.

(b) For purposes of this section, "health plan company" means an entity that issues
a health plan as defined in paragraph (a).

(c) "Interagency intervention service system" means a system that coordinates
services and programs required in state and federal law to meet the needs of eligible
children with disabilities ages birth through 21, including:

(1) services provided under the following programs or initiatives administered
by state or local agencies:

(i) the maternal and child health program under title V of the Social Security Act;

(ii) the Minnesota children with special health needs program under sections 144.05
and 144.07;

(iii) the Individuals with Disabilities Education Act, Part B, section 619, and Part
C as amended;

(iv) medical assistance under title 42, chapter 7, of the Social Security Act;

(v) developmental disabilities services under chapter 256B;

(vi) the Head Start Act under title 42, chapter 105, of the Social Security Act;

(vii) vocational rehabilitation services provided under chapters 248 and 268A and
the Rehabilitation Act of 1973;

(viii) Juvenile Court Act services provided under sections 260.011 to 260.91;
260B.001 to 260B.446; and 260C.001 to 260C.451;

(ix) Minnesota Comprehensive Children's Mental Health Act under section 245.487;

(x) the community health services grants under sections 145.88 to 145.9266;

(xi) the Local Public Health Act under chapter 145A; and

(xii) the Vulnerable Children and Adults Act, sections 256M.60 to 256M.80;

(2) service provision and funding that can be coordinated through:

(i) the children's mental health collaborative under section 245.493;

(ii) the family services collaborative under section 124D.23;

(iii) the community transition interagency committees under section 125A.22; and

(iv) the interagency early intervention committees under section 125A.259;

(3) financial and other funding programs to be coordinated including medical
assistance under title 42, chapter 7, of the Social Security Act, the MinnesotaCare program
under chapter 256L, Supplemental Social Security Income, Developmental Disabilities
Assistance, and any other employment-related activities associated with the Social
Security Administration; and services provided under a health plan in conformity with an
individual family service plan or an individualized education program or an individual
interagency intervention plan; and

(4) additional appropriate services that local agencies and counties provide on
an individual need basis upon determining eligibility and receiving a request from new text begin (i)
new text end the deleted text begin interagency early intervention committee deleted text end new text begin school board or county board new text end and new text begin (ii) new text end the
child's parent.

(d) "Children with disabilities" has the meaning given in section 125A.02.

(e) A "standardized written plan" means those individual services or programs, with
accompanying funding sources, available through the interagency intervention service
system to an eligible child other than the services or programs described in the child's
individualized education program or the child's individual family service plan.

Sec. 5.

Minnesota Statutes 2014, section 125A.023, subdivision 4, is amended to read:

Subd. 4.

State Interagency Committee.

(a) The commissioner of education, on
behalf of the governor, shall convene an interagency committee to develop and implement
a coordinated, multidisciplinary, interagency intervention service system for children ages
three to 21 with disabilities. The commissioners of commerce, education, health, human
rights, human services, employment and economic development, and corrections shall
each appoint two committee members from their departments; and the Association of
Minnesota Counties, Minnesota School Boards Association, the Minnesota Administrators
of Special Education, and the School Nurse Association of Minnesota shall each appoint
one committee member. The committee shall select a chair from among its members.

(b) The committee shall:

(1) identify and assist in removing state and federal barriers to local coordination of
services provided to children with disabilities;

(2) identify adequate, equitable, and flexible funding sources to streamline these
services;

(3) develop guidelines for implementing policies that ensure a comprehensive and
coordinated system of all state and local agency services, including multidisciplinary
assessment practices for children with disabilities ages three to 21, including:

(i) develop, consistent with federal law, a standardized written plan for providing
services to a child with disabilities;

(ii) identify how current systems for dispute resolution can be coordinated;

(iii) develop an evaluation process to measure the success of state and local
interagency efforts in improving the quality and coordination of services to children with
disabilities ages three to 21; and

(iv) develop guidelines to assist the governing boards of the interagency early
intervention committees in carrying out the duties assigned in section 125A.027,
subdivision 1, paragraph (b); and

(4) carry out other duties necessary to develop and implement within communities
a coordinated, multidisciplinary, interagency intervention service system for children
with disabilities.

(c) The committee shall consult on an ongoing basis with the state Special Education
Advisory Panel and the governor's Interagency Coordinating Council in carrying out
its duties under this section, including assisting the deleted text begin governing deleted text end new text begin school new text end boards deleted text begin of the
interagency early intervention committees deleted text end new text begin and county boards new text end .

Sec. 6.

Minnesota Statutes 2014, section 125A.027, is amended to read:

125A.027 deleted text begin INTERAGENCY EARLY INTERVENTION COMMITTEE
RESPONSIBILITIES deleted text end new text begin LOCAL AGENCY COORDINATION RESPONSIBILITIES new text end .

Subdivision 1.

deleted text begin Additional duties deleted text end new text begin School board and county board responsibilities new text end .

new text begin (a) It is the joint responsibility of school and county boards to coordinate, provide, and
pay for appropriate services and to facilitate payment for services from public and private
sources. Appropriate services for children eligible under section 125A.02 and receiving
services from two or more public agencies of which one is the public school must be
determined in consultation with parents, physicians, and other education, medical health,
and human services providers. The services provided must conform with a standardized
written plan for each eligible child ages three to 21.
new text end

new text begin (b) Appropriate services include those services listed on a child's standardized
written plan. These services are those that are required to be documented on a plan under
federal and state law or rule.
new text end

new text begin (c) School and county boards shall coordinate interagency services. Service
responsibilities for eligible children, ages three to 21, may be established in interagency
agreements or joint powers board agreements. In addition, interagency agreements or
joint powers board agreements may be developed to establish agency responsibility that
ensures that coordinated interagency services are coordinated, provided, and paid for and
that payment is facilitated from public and private sources. School boards must provide,
pay for, and facilitate payment for special education services as required under sections
125A.03 and 125A.06. County boards must provide, pay for, and facilitate payment for
those programs over which they have service and fiscal responsibility as referenced in
section 125A.023, subdivision 3, paragraph (c), clause (1).
new text end

new text begin Subd. 1a. new text end

new text begin Local governance structure. new text end

deleted text begin (a) deleted text end The deleted text begin governing deleted text end new text begin school new text end boards deleted text begin of
the interagency early intervention committees deleted text end new text begin and county boards new text end are responsible for
developing and implementing interagency policies and procedures to coordinate services
at the local level for children with disabilities ages three to 21 under guidelines established
by the state interagency committee under section 125A.023, subdivision 4. Consistent
with the requirements in this section and section 125A.023, the deleted text begin governing deleted text end new text begin school new text end boards
deleted text begin of the interagency early intervention committees deleted text end new text begin and county boards new text end may organize as a
joint powers board under section 471.59 or enter into an interagency agreement that
establishes a governance structure.

deleted text begin (b) The governing board of each interagency early intervention committee as defined
in section 125A.30, paragraph (a), which may include a juvenile justice professional, shall:
deleted text end

deleted text begin (1) identify state and federal barriers to local coordination of services provided to
children with disabilities;
deleted text end

deleted text begin (2) implement policies that ensure a comprehensive and coordinated system of all
state and local agency services, including practices on multidisciplinary assessment,
standardized written plans, dispute resolution, and system evaluation for children with
disabilities ages three to 21;
deleted text end

deleted text begin (3) coordinate services and facilitate payment for services from public and private
institutions, agencies, and health plan companies; and
deleted text end

deleted text begin (4) share needed information consistent with state and federal data practices
requirements.
deleted text end

Subd. 2.

Appropriate and necessary services.

(a) Parents, physicians, other health
care professionals including school nurses, and education and human services providers
jointly must determine appropriate and necessary services for eligible children with
disabilities ages three to 21. The services provided to the child under this section must
conform with the child's standardized written plan. The deleted text begin governing deleted text end new text begin school new text end board deleted text begin of an
interagency early intervention committee deleted text end new text begin or county board new text end must provide those services
contained in a child's individualized education program and those services for which
a legal obligation exists.

(b) Nothing in this section or section 125A.023 increases or decreases the obligation
of the state, county, regional agency, local school district, or local agency or organization
to pay for education, health care, or social services.

(c) A health plan may not exclude any medically necessary covered service solely
because the service is or could be identified in a child's individual family service plan,
individualized education program, a plan established under section 504 of the federal
Rehabilitation Act of 1973, or a student's individual health plan. This paragraph reaffirms
the obligation of a health plan company to provide or pay for certain medically necessary
covered services, and encourages a health plan company to coordinate this care with any
other providers of similar services. Also, a health plan company may not exclude from a
health plan any medically necessary covered service such as an assessment or physical
examination solely because the resulting information may be used for an individualized
education program or a standardized written plan.

deleted text begin Subd. 4. deleted text end

deleted text begin Responsibilities of school and county boards. deleted text end

deleted text begin (a) It is the joint
responsibility of school and county boards to coordinate, provide, and pay for appropriate
services, and to facilitate payment for services from public and private sources.
Appropriate service for children eligible under section 125A.02 and receiving service
from two or more public agencies of which one is the public school must be determined in
consultation with parents, physicians, and other education, medical health, and human
services providers. The services provided must be in conformity with a standardized
written plan for each eligible child ages 3 to 21.
deleted text end

deleted text begin (b) Appropriate services include those services listed on a child's standardized
written plan. These services are those that are required to be documented on a plan under
federal and state law or rule.
deleted text end

deleted text begin (c) School and county boards shall coordinate interagency services. Service
responsibilities for eligible children, ages 3 to 21, may be established in interagency
agreements or joint powers board agreements. In addition, interagency agreements or joint
powers board agreements may be developed to establish agency responsibility that assures
that coordinated interagency services are coordinated, provided, and paid for, and that
payment is facilitated from public and private sources. School boards must provide,
pay for, and facilitate payment for special education services as required under sections
125A.03 and 125A.06. County boards must provide, pay for, and facilitate payment for
those programs over which they have service and fiscal responsibility as referenced in
section 125A.023, subdivision 3, paragraph (c), clause (1).
deleted text end

Sec. 7.

Minnesota Statutes 2014, section 125A.21, is amended to read:

125A.21 THIRD-PARTY PAYMENT.

Subdivision 1.

Obligation to pay.

Nothing in sections 125A.03 to 125A.24 and
125A.65 relieves an insurer or similar third party from an otherwise valid obligation to
pay, or changes the validity of an obligation to pay, for services rendered to a child with
a disability, and the child's family. A school district shall pay the nonfederal share of
medical assistance services provided according to section 256B.0625, subdivision 26.
Eligible expenditures must not be made from federal funds or funds used to match other
federal funds. Any federal disallowances are the responsibility of the school district. A
school district may pay or reimburse co-payments, coinsurance, deductibles, and other
enrollee cost-sharing amounts, on behalf of the student or family, in connection with
health and related services provided under an individual educational plan new text begin or individualized
family service plan new text end .

Subd. 2.

Third-party reimbursement.

(a) Beginning July 1, 2000, districts
shall seek reimbursement from insurers and similar third parties for the cost of services
provided by the district whenever the services provided by the district are otherwise
covered by the child's health coverage. Districts shall request, but may not require, the
child's family to provide information about the child's health coverage when a child with a
disability begins to receive services from the district of a type that may be reimbursable,
and shall request, but may not require, updated information after that as needed.

(b) For children enrolled in medical assistance under chapter 256B or MinnesotaCare
under chapter 256L who have no other health coverage, a district shall provide an initial
and annual written notice to the enrolled child's parent or legal representative of its intent
to seek reimbursement from medical assistance or MinnesotaCare for the individualized
education program new text begin or individualized family service plan new text end health-related services provided
by the district. The initial notice must give the child's parent or legal representative the
right to request a copy of the child's education records on the health-related services that
the district provided to the child and disclosed to a third-party payer.

(c) The district shall give the parent or legal representative annual written notice of:

(1) the district's intent to seek reimbursement from medical assistance or
MinnesotaCare for individualized education program new text begin or individualized family service plan
new text end health-related services provided by the district;

(2) the right of the parent or legal representative to request a copy of all records
concerning individualized education program new text begin or individualized family service plan
new text end health-related services disclosed by the district to any third party; and

(3) the right of the parent or legal representative to withdraw consent for disclosure
of a child's records at any time without consequence.

The written notice shall be provided as part of the written notice required by Code of
Federal Regulations, title 34, section 300.504 new text begin or 303.520 new text end . The district must ensure that the
parent of a child with a disability is given notice, in understandable language, of federal and
state procedural safeguards available to the parent under this paragraph and paragraph (b).

(d) In order to access the private health care coverage of a child who is covered by
private health care coverage in whole or in part, a district must:

(1) obtain annual written informed consent from the parent or legal representative, in
compliance with subdivision 5; and

(2) inform the parent or legal representative that a refusal to permit the district
or state Medicaid agency to access their private health care coverage does not relieve
the district of its responsibility to provide all services necessary to provide free and
appropriate public education at no cost to the parent or legal representative.

(e) If the commissioner of human services obtains federal approval to exempt
covered individualized education program new text begin or individualized family service plan
new text end health-related services from the requirement that private health care coverage refuse
payment before medical assistance may be billed, paragraphs (b), (c), and (d) shall also
apply to students with a combination of private health care coverage and health care
coverage through medical assistance or MinnesotaCare.

(f) In the event that Congress or any federal agency or the Minnesota legislature
or any state agency establishes lifetime limits, limits for any health care services,
cost-sharing provisions, or otherwise provides that individualized education program new text begin or
individualized family service plan new text end health-related services impact benefits for persons
enrolled in medical assistance or MinnesotaCare, the amendments to this subdivision
adopted in 2002 are repealed on the effective date of any federal or state law or regulation
that imposes the limits. In that event, districts must obtain informed consent consistent
with this subdivision as it existed prior to the 2002 amendments and subdivision 5, before
seeking reimbursement for children enrolled in medical assistance under chapter 256B or
MinnesotaCare under chapter 256L who have no other health care coverage.

Subd. 3.

Use of reimbursements.

Of the reimbursements received, districts may:

(1) retain an amount sufficient to compensate the district for its administrative costs
of obtaining reimbursements;

(2) regularly obtain from education- and health-related entities training and other
appropriate technical assistance designed to improve the district's ability to access
third-party payments for individualized education program new text begin or individualized family
service plan new text end health-related services; or

(3) reallocate reimbursements for the benefit of students with individualized
education programs or deleted text begin individual deleted text end new text begin individualized new text end family service plans in the district.

Subd. 4.

Parents not obligated to use health coverage.

To the extent required by
federal law, a school district may not require parents of children with disabilities, if they
would incur a financial cost, to use private or public health coverage to pay for the services
that must be provided under an individualized education program new text begin or individualized
family service plan new text end .

Subd. 5.

Informed consent.

When obtaining informed consent, consistent with
sections 13.05, subdivision 4a; 256B.77, subdivision 2, paragraph (p); and Code of
Federal Regulations, title 34, parts 99 deleted text begin and deleted text end new text begin , new text end 300 new text begin , and 303 new text end , to bill health plans for covered
services, the school district must notify the legal representative (1) that the cost of the
person's private health insurance premium may increase due to providing the covered
service in the school setting, (2) that the school district may pay certain enrollee health
plan costs, including but not limited to, co-payments, coinsurance, deductibles, premium
increases or other enrollee cost-sharing amounts for health and related services required
by an individual service plan, or deleted text begin individual deleted text end new text begin individualized new text end family service plan, and (3) that
the school's billing for each type of covered service may affect service limits and prior
authorization thresholds. The informed consent may be revoked in writing at any time
by the person authorizing the billing of the health plan.

Subd. 6.

District obligation to provide service.

To the extent required by federal
law, no school district may deny, withhold, or delay any service that must be provided
under an individualized education program new text begin or individualized family service plan new text end because
a family has refused to provide informed consent to bill a health plan for services or a
health plan company has refused to pay any, all, or a portion of the cost of services billed.

Subd. 7.

District disclosure of information.

A school district may disclose
information contained in a student's individualized education program, consistent with
section 13.32, subdivision 3, paragraph (a), and Code of Federal Regulations, title 34,
parts 99 deleted text begin and deleted text end new text begin , new text end 300 new text begin , and 303 new text end ; including records of the student's diagnosis and treatment, to a
health plan company only with the signed and dated consent of the student's parent, or
other legally authorized individual. The school district shall disclose only that information
necessary for the health plan company to decide matters of coverage and payment. A
health plan company may use the information only for making decisions regarding
coverage and payment, and for any other use permitted by law.

Sec. 8.

Minnesota Statutes 2014, section 125A.28, is amended to read:

125A.28 STATE INTERAGENCY COORDINATING COUNCIL.

An Interagency Coordinating Council of at least 17, but not more than 25 members is
established, in compliance with Public Law 108-446, section 641. The members must be
appointed by the governor and reasonably represent the population of Minnesota. Council
members must elect the council chair, who may not be a representative of the Department
of Education. The council must be composed of at least five parents, including persons
of color, of children with disabilities under age 12, including at least three parents of a
child with a disability under age seven, five representatives of public or private providers
of services for children with disabilities under age five, including a special education
director, county social service director, local Head Start director, and a community health
services or public health nursing administrator, one member of the senate, one member of
the house of representatives, one representative of teacher preparation programs in early
childhood-special education or other preparation programs in early childhood intervention,
at least one representative of advocacy organizations for children with disabilities under
age five, one physician who cares for young children with special health care needs, one
representative each from the commissioners of commerce, education, health, human
services, a representative from the state agency responsible for child care, foster care,
mental health, homeless coordinator of education of homeless children and youth, and a
representative from Indian health services or a tribal council. Section 15.059, subdivisions
2 to 4, apply to the council. The council must meet at least quarterly.

The council must address methods of implementing the state policy of developing
and implementing comprehensive, coordinated, multidisciplinary interagency programs of
early intervention services for children with disabilities and their families.

The duties of the council include recommending policies to ensure a comprehensive
and coordinated system of all state and local agency services for children under age five
with disabilities and their families. The policies must address how to incorporate each
agency's services into a unified state and local system of multidisciplinary assessment
practices, individual intervention plans, comprehensive systems to find children in need of
services, methods to improve public awareness, and assistance in determining the role of
interagency early intervention committees.

deleted text begin On the date that Minnesota Part C Annual Performance Report is submitted to deleted text end new text begin
Within 30 days of receiving the annual determination from new text end the federal Office of Special
Education new text begin on the Minnesota Part C Annual Performance Report new text end , the council must
recommend to the governor and the commissioners of education, health, human services,
commerce, and employment and economic development policies for a comprehensive
and coordinated system.

Annually, the council must prepare and submit a report to the governor and the
secretary of the federal Department of Education on the status of early intervention
services and programs for infants and toddlers with disabilities and their families under
the Individuals with Disabilities Education Act, United States Code, title 20, sections
1471 to 1485 (Part C, Public Law 102-119), as operated in Minnesota. The Minnesota
Part C annual performance report may serve as the report.

Notwithstanding any other law to the contrary, the State Interagency Coordinating
Council does not expire unless federal law no longer requires the existence of the council
or committee.

Sec. 9.

Minnesota Statutes 2014, section 125A.63, subdivision 4, is amended to read:

Subd. 4.

Advisory committees.

(a) The commissioner shall establish an advisory
committee for deleted text begin each resource center deleted text end new text begin the deaf and hard-of-hearing and the blind and
visually impaired new text end . The advisory committees shall develop recommendations deleted text begin regarding the
resource centers deleted text end and submit an annual report to the commissioner on the form and in the
manner prescribed by the commissioner.

(b) The advisory committee deleted text begin for the Resource Center deleted text end for the deaf and hard of hearing
shall meet periodically at least four times per year and submit an annual report to the
commissioner, the education policy and finance committees of the legislature, and the
Commission of Deaf, DeafBlind, and deleted text begin Hard of Hearing deleted text end new text begin Hard-of-Hearing new text end Minnesotans.
The report must, at least:

(1) identify and report the aggregate, data-based education outcomes for children
with the primary disability classification of deaf and hard of hearing, consistent with
the commissioner's child count reporting practices, the commissioner's state and local
outcome data reporting system by district and region, and the school performance report
cards under section 120B.36, subdivision 1; and

(2) describe the implementation of a data-based plan for improving the education
outcomes of deaf and hard of hearing children that is premised on evidence-based best
practices, and provide a cost estimate for ongoing implementation of the plan.

Sec. 10.

Minnesota Statutes 2014, section 125A.63, subdivision 5, is amended to read:

Subd. 5.

Statewide hearing loss early education intervention coordinator.

(a)
The coordinator shall:

(1) collaborate with the early hearing detection and intervention coordinator for the
Department of Health, deleted text begin the director of the Department of Education Resource Center for
Deaf and Hard-of-Hearing deleted text end new text begin the commissioner of education's designee new text end , and the Department
of Health Early Hearing Detection and Intervention Advisory Council;

(2) coordinate and support Department of Education early hearing detection and
intervention teams;

(3) leverage resources by serving as a liaison between interagency early intervention
committees; part C coordinators from the Departments of Education, Health, and
Human Services; Department of Education regional low-incidence facilitators; service
coordinators from school districts; Minnesota children with special health needs in the
Department of Health; public health nurses; child find; Department of Human Services
Deaf and Hard-of-Hearing Services Division; and others as appropriate;

(4) identify, support, and promote culturally appropriate and evidence-based early
intervention practices for infants with hearing loss, and provide training, outreach, and use
of technology to increase consistency in statewide service provision;

(5) identify culturally appropriate specialized reliable and valid instruments to assess
and track the progress of children with hearing loss and promote their use;

(6) ensure that early childhood providers, parents, and members of the individual
family service and intervention plan are provided with child progress data resulting from
specialized assessments;

(7) educate early childhood providers and teachers of the deaf and hard-of-hearing
to use developmental data from specialized assessments to plan and adjust individual
family service plans; and

(8) make recommendations that would improve educational outcomes to the early
hearing detection and intervention committee, the commissioners of education and health,
the Commission of Deaf, DeafBlind and Hard-of-Hearing Minnesotans, and the advisory
council deleted text begin of the Minnesota Department of Education Resource Center deleted text end for the deaf and
hard-of-hearing.

(b) The Department of Education must provide aggregate data regarding outcomes
of deaf and hard-of-hearing children who receive early intervention services within the
state in accordance with the state performance plan.

Sec. 11.

Minnesota Statutes 2014, section 125A.76, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For the purposes of this section and section 125A.79,
the definitions in this subdivision apply.

(b) "Basic revenue" has the meaning given it in section 126C.10, subdivision 2.
For the purposes of computing basic revenue pursuant to this section, each child with a
disability shall be counted as prescribed in section 126C.05, subdivision 1.

(c) "Essential personnel" means teachers, cultural liaisons, related services, and
support services staff providing services to students. Essential personnel may also include
special education paraprofessionals or clericals providing support to teachers and students
by preparing paperwork and making arrangements related to special education compliance
requirements, including parent meetings and individualized education programs. Essential
personnel does not include administrators and supervisors.

(d) "Average daily membership" has the meaning given it in section 126C.05.

(e) "Program growth factor" means 1.046 for fiscal years 2012 through 2015, 1.0
for fiscal year 2016, 1.046 for fiscal year 2017, and the product of 1.046 and the program
growth factor for the previous year for fiscal year 2018 and later.

(f) "Nonfederal special education expenditure" means all direct expenditures that
are necessary and essential to meet the district's obligation to provide special instruction
and services to children with a disability according to sections 124D.454, 125A.03 to
125A.24, 125A.259 to 125A.48, and 125A.65 as submitted by the district and approved by
the department under section 125A.75, subdivision 4, excluding expenditures:

(1) reimbursed with federal funds;

(2) reimbursed with other state aids under this chapter;

(3) for general education costs of serving students with a disability;

(4) for facilities;

(5) for pupil transportation; and

(6) for postemployment benefits.

(g) "Old formula special education expenditures" means expenditures eligible for
revenue under Minnesota Statutes 2012, section 125A.76, subdivision 2.

(h) For the Minnesota State Academy for the Deaf and the Minnesota State Academy
for the Blind, expenditures under paragraphs (f) and (g) are limited to the salary and
fringe benefits of one-to-one instructional and behavior management aides and one-to-one
licensed, certified professionals assigned to a child attending the academy, if the aides or
professionals are required by the child's individualized education program.

(i) "Cross subsidy reduction aid percentage" means 1.0 percent for fiscal year 2014
and 2.27 percent for fiscal year 2015.

(j) "Cross subsidy reduction aid limit" means $20 for fiscal year 2014 and $48
for fiscal year 2015.

(k) "Special education aid increase limit" means $80 for fiscal year 2016, $100 for
fiscal year 2017, and, for fiscal year 2018 and later, the sum of the special education aid
increase limit for the previous fiscal year and $40.

new text begin (l) "District" means a school district, a charter school, or a cooperative unit as
defined in section 123A.24, subdivision 2. Notwithstanding section 123A.26, cooperative
units as defined in section 123A.24, subdivision 2, are eligible to receive special education
aid under this section and section 125A.79.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal year 2016 and later.
new text end

Sec. 12.

Minnesota Statutes 2014, section 125A.76, subdivision 2c, is amended to read:

Subd. 2c.

Special education aid.

(a) For fiscal year 2014 and fiscal year 2015, a
district's special education aid equals the sum of the district's special education aid under
subdivision 5, the district's cross subsidy reduction aid under subdivision 2b, and the
district's excess cost aid under section 125A.79, subdivision 7.

(b) For fiscal year 2016 and later, a district's special education aid equals the sum of
the district's special education initial aid under subdivision 2a and the district's excess cost
aid under section 125A.79, subdivision 5.

(c) Notwithstanding paragraph (b), for fiscal year 2016, the special education aid for
a school district must not exceed the sum of the special education aid the district would
have received for fiscal year 2016 under Minnesota Statutes 2012, sections 125A.76
and 125A.79, as adjusted according to Minnesota Statutes 2012, sections 125A.11 and
127A.47, subdivision 7, and the product of the district's average daily membership served
and the special education aid increase limit.

(d) Notwithstanding paragraph (b), for fiscal year 2017 and later, the special education
aid for a school district must not exceed the sum of: (i) the product of the district's average
daily membership served and the special education aid increase limit and (ii) the product
of the sum of the special education aid the district would have received for fiscal year 2016
under Minnesota Statutes 2012, sections 125A.76 and 125A.79, as adjusted according
to Minnesota Statutes 2012, sections 125A.11 and 127A.47, subdivision 7, the ratio of
the district's average daily membership served for the current fiscal year to the district's
average daily membership served for fiscal year 2016, and the program growth factor.

(e) Notwithstanding paragraph (b), for fiscal year 2016 and later the special
education aid for a school district, not including a charter school new text begin or cooperative unit as
defined in section 123A.24 new text end , must not be less than the lesser of (1) the district's nonfederal
special education expenditures for that fiscal year or (2) the product of the sum of the
special education aid the district would have received for fiscal year 2016 under Minnesota
Statutes 2012, sections 125A.76 and 125A.79, as adjusted according to Minnesota Statutes
2012, sections 125A.11 and 127A.47, subdivision 7, the ratio of the district's adjusted
daily membership for the current fiscal year to the district's average daily membership for
fiscal year 2016, and the program growth factor.

new text begin (f) Notwithstanding subdivision 2a and section 125A.79, a charter school in its first
year of operation shall generate special education aid based on current year data. A newly
formed cooperative unit as defined in section 123A.24 may apply to the commissioner
for approval to generate special education aid for its first year of operation based on
current year data, with an offsetting adjustment to the prior year data used to calculate aid
for programs at participating school districts or previous cooperatives that were replaced
by the new cooperative.
new text end

Sec. 13. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2014, section 125A.63, subdivisions 1, 2, and 3, new text end new text begin are repealed.
new text end

ARTICLE 4

FACILITIES AND TECHNOLOGY

Section 1.

Minnesota Statutes 2014, section 125B.26, subdivision 2, is amended to read:

Subd. 2.

E-rates.

To be eligible for aid under this section, a district, charter school,
or intermediate school district is required to file an e-rate application either separately or
through its telecommunications access cluster deleted text begin and have a current technology plan on file
with the department deleted text end . Discounts received on telecommunications expenditures shall be
reflected in the costs submitted to the department for aid under this section.

ARTICLE 5

EARLY CHILDHOOD EDUCATION

Section 1.

Minnesota Statutes 2014, section 124D.165, subdivision 2, is amended to
read:

Subd. 2.

Family eligibility.

(a) For a family to receive an early learning scholarship,
parents or guardians must meet the following eligibility requirements:

(1) have a child three or four years of age on September 1 of the current school year,
who has not yet started kindergarten; and

(2) have income equal to or less than 185 percent of federal poverty level income
in the current calendar year, or be able to document their child's current participation in
the free and reduced-price lunch program or child and adult care food program, National
School Lunch Act, United States Code, title 42, sections 1751 and 1766; the Food
Distribution Program on Indian Reservations, Food and Nutrition Act, United States
Code, title 7, sections 2011-2036; Head Start under the federal Improving Head Start for
School Readiness Act of 2007; Minnesota family investment program under chapter 256J;
child care assistance programs under chapter 119B; the supplemental nutrition assistance
program; or placement in foster care under section 260C.212.

(b) Notwithstanding the other provisions of this section, a parent under age 21 who
is pursuing a high school or general education equivalency diploma new text begin or a college degree new text end is
eligible for an early learning scholarship if the parent has a child age zero to five years old
and meets the income eligibility guidelines in this subdivision.

(c) Any siblings between the ages zero to five years old of a child who has been
awarded a scholarship under this section must be awarded a scholarship upon request,
provided the sibling attends the same program as long as funds are available.

new text begin (d) Beginning September 1, 2015, any child under the age of five years old on
September 1 of the current school year who has not started kindergarten and is a recipient
of an Early Learning Scholarship funded under the federal Race to the Top - Early Learning
Challenge Grant must receive a scholarship under this section at the end of the child's Race
to the Top - Early Learning Challenge Grant scholarship as long as funds are available.
new text end

deleted text begin (d) deleted text end new text begin (e) new text end A child who has received a scholarship under this section must continue to
receive a scholarship each year until that child is eligible for kindergarten under section
120A.20 and as long as funds are available.

deleted text begin (e) deleted text end new text begin (f) new text end Early learning scholarships may not be counted as earned income for the
purposes of medical assistance under chapter 256B, MinnesotaCare under chapter 256L,
Minnesota family investment program under chapter 256J, child care assistance programs
under chapter 119B, or Head Start under the federal Improving Head Start for School
Readiness Act of 2007.

Sec. 2.

Minnesota Statutes 2014, section 124D.165, subdivision 3, is amended to read:

Subd. 3.

Administration.

(a) The commissioner shall establish application
timelines and determine the schedule for awarding scholarships that meets operational
needs of eligible families and programs.

new text begin (b) new text end The commissioner may prioritize applications on factors including new text begin :
new text end

new text begin (1) new text end family income deleted text begin , deleted text end new text begin ;
new text end

new text begin (2) new text end geographic location deleted text begin , deleted text end new text begin ; new text end and

new text begin (3) new text end whether the deleted text begin child's family deleted text end new text begin child:
new text end

new text begin (i) new text end is new text begin in foster care;
new text end

new text begin (ii) is experiencing homelessness;
new text end

new text begin (iii) is new text end on a waiting list for a publicly funded program providing early education
or child care services new text begin ; or
new text end

new text begin (iv) has a parent under age 21 who is pursuing a high school or general education
equivalency diploma or a college degree new text end .

deleted text begin (b) deleted text end new text begin (c) new text end For fiscal years 2014 and 2015 only, scholarships may not exceed $5,000
per year for each eligible child. For fiscal year 2016 and later, the commissioner shall
establish a target for the average scholarship amount per child based on the results of the
rate survey conducted under section 119B.02.

deleted text begin (c) deleted text end new text begin (d) new text end A four-star rated program that has children eligible for a scholarship enrolled
in or on a waiting list for a program beginning in July, August, or September may notify
the commissioner, in the form and manner prescribed by the commissioner, each year
of the program's desire to enhance program services or to serve more children than
current funding provides. The commissioner may designate a predetermined number of
scholarship slots for that program and notify the program of that number. Beginning July
1, 2016, a school district or Head Start program qualifying under this paragraph may
use its established registration process to enroll scholarship recipients and may verify a
scholarship recipient's family income in the same manner as for other program participants.

deleted text begin (d) deleted text end new text begin (e) new text end A scholarship is awarded for a 12-month period. If the scholarship recipient
has not been accepted and subsequently enrolled in a rated program within ten months of
the awarding of the scholarship, the scholarship cancels and the recipient must reapply in
order to be eligible for another scholarship. A child may not be awarded more than one
scholarship in a 12-month period.

deleted text begin (e) deleted text end new text begin (f) new text end A child who receives a scholarship who has not completed development
screening under sections 121A.16 to 121A.19 must complete that screening within 90
days of first attending an eligible program.

deleted text begin (f) deleted text end new text begin (g) new text end For fiscal year 2017 and later, a school district or Head Start program enrolling
scholarship recipients under paragraph deleted text begin (c) deleted text end new text begin (d) new text end may apply to the commissioner, in the form
and manner prescribed by the commissioner, for direct payment of state aid. Upon receipt
of the application, the commissioner must pay each program directly for each approved
scholarship recipient enrolled under paragraph deleted text begin (c) deleted text end new text begin (d) new text end according to the metered payment
system or another schedule established by the commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal year 2016 and later.
new text end

Sec. 3.

Minnesota Statutes 2014, section 124D.165, subdivision 4, is amended to read:

Subd. 4.

Early childhood program eligibility.

(a) In order to be eligible to accept
an early learning scholarship, a program must:

(1) participate in the quality rating and improvement system under section
124D.142; and

(2) beginning July 1, 2016, have a three- or four-star rating in the quality rating
and improvement system.

deleted text begin (b) Any program accepting scholarships must use the revenue to supplement and not
supplant federal funding.
deleted text end

deleted text begin (c) deleted text end new text begin (b) new text end Notwithstanding paragraph (a), all Minnesota early learning foundation
scholarship program pilot sites are eligible to accept an early learning scholarship under
this section.

new text begin (c) A provider is not eligible to participate in the scholarship program under this
section if:
new text end

new text begin (1) the provider has been disqualified from receiving payment for child care services
from the child care assistance program under chapter 119B due to wrongfully obtaining
child care assistance under section 256.98, subdivision 8, paragraph (c);
new text end

new text begin (2) the program or individual is currently on the national disqualified list for the
Child and Adult Care Food Program; or
new text end

new text begin (3) the program or provider has been convicted of any activity that occurred during
the past seven years indicating a lack of business integrity, including fraud, making false
statements, receiving stolen property, making false claims, or obstruction of justice.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal year 2016 and later.
new text end

Sec. 4.

Minnesota Statutes 2014, section 124D.165, is amended by adding a
subdivision to read:

new text begin Subd. 4a. new text end

new text begin Record-keeping requirements. new text end

new text begin A program participating under this
section must maintain and make available upon request attendance records and records of
charges and payments for all children participating in this program, including payments
from sources other than this program.
new text end

Sec. 5.

Minnesota Statutes 2014, section 124D.165, is amended by adding a
subdivision to read:

new text begin Subd. 6. new text end

new text begin Use of funds. new text end

new text begin (a) Scholarships must be used to supplement and not
supplant federal funding.
new text end

new text begin (b) A scholarship must be used in a program that the child attends on a consistent
basis in order to ensure the child's access to the general curriculum of the program.
new text end

ARTICLE 6

LIBRARIES

Section 1.

Minnesota Statutes 2014, section 134.20, subdivision 2, is amended to read:

Subd. 2.

Library board new text begin and chief administrative officer new text end .

new text begin (a) new text end The agreement
establishing a regional public library system shall provide for a library board to govern the
organization having all the powers and duties of city and county library boards as provided
in sections 134.11, 134.12, and 134.13 and including exclusive determination of all library
services to be provided under terms of the agreement as defined in section 134.001, and
exclusive control of the expenditure of all funds for the services. The regional library
system board may consist of as many members as the contracting parties deem necessary,
appointed in a number from among the residents of the contracting parties and for terms
by each party to the contract as determined by the contracting parties, irrespective of
the existence of one or more city and county library boards already in existence in the
participating cities and counties. Not more than one member from each contracting party
shall be a member of the governing body of a contracting party and no member may be
appointed to serve more than three consecutive three-year terms. In the participating cities
and counties, the portion of the proceeds of the city and county library tax authorized
by section 134.07, shall be used to support the regional public library system as the
contracting agreement may provide.

new text begin (b) The governing board of a regional public library system must employ a full-time
chief administrative officer.
new text end

ARTICLE 7

STATE AGENCIES

Section 1.

Minnesota Statutes 2014, section 16A.103, subdivision 1c, is amended to
read:

Subd. 1c.

Expenditure data.

new text begin (a) new text end State agencies must submit any revisions
in expenditure data the commissioner determines necessary for the forecast to the
commissioner at least four weeks prior to the release of the forecast. The information
submitted by state agencies and any modifications to that information made by the
commissioner must be made available to legislative fiscal staff no later than three weeks
prior to the release of the forecast.

new text begin (b) Notwithstanding paragraph (a), the Department of Education must submit
any revisions in expenditure data to the commissioner at least three weeks prior to the
release of the November forecast, and the commissioner must make E-12 expenditure
data available to legislative fiscal staff no later than two weeks prior to the release of
the November forecast.
new text end

Sec. 2.

Minnesota Statutes 2014, section 120B.12, subdivision 2, is amended to read:

Subd. 2.

Identification; report.

For the 2011-2012 school year and later, each
school district shall identify before the end of kindergarten, grade 1, and grade 2 students
who are not reading at grade level before the end of the current school year. Reading
assessments in English, and in the predominant languages of district students where
practicable, must identify and evaluate students' areas of academic need related to literacy.
The district also must monitor the progress and provide reading instruction appropriate
to the specific needs of English learners. The district must use a locally adopted,
developmentally appropriate, and culturally responsive assessment deleted text begin and annually report
summary assessment results to the commissioner by July 1 deleted text end .

Sec. 3.

Minnesota Statutes 2014, section 122A.414, subdivision 3, is amended to read:

Subd. 3.

Report; continued funding.

(a) Participating districts, intermediate
school districts, school sites, and charter schools must report on the implementation and
effectiveness of the alternative teacher professional pay system, particularly addressing
each requirement under subdivision 2 and make annual recommendations by June 15
to their school boards. The school board or board of directors shall deleted text begin transmit deleted text end new text begin include new text end a
copy of the report with a summary of the findings and recommendations of the district,
intermediate school district, school site, or charter school deleted text begin to the commissioner deleted text end new text begin in the report
required under section 120B.11, subdivision 5 new text end .

(b) If the commissioner determines that a school district, intermediate school district,
school site, or charter school that receives alternative teacher compensation revenue is not
complying with the requirements of this section, the commissioner may withhold funding
from that participant. Before making the determination, the commissioner must notify the
participant of any deficiencies and provide the participant an opportunity to comply.

Sec. 4.

Minnesota Statutes 2014, section 122A.60, subdivision 4, is amended to read:

Subd. 4.

Staff development report.

(a) deleted text begin By October 15 of each year, deleted text end The district
and site staff development committees shall write deleted text begin and submit deleted text end a report of staff development
activities and expenditures for the previous year, in the form and manner determined by
the commissioner new text begin to be included in the report required under section 120B.11, subdivision
5 new text end . The report, signed by the district superintendent and staff development chair, must
include assessment and evaluation data indicating progress toward district and site staff
development goals based on teaching and learning outcomes, including the percentage
of teachers and other staff involved in instruction who participate in effective staff
development activities under subdivision 3.

(b) The report must break down expenditures for:

(1) curriculum development and curriculum training programs; and

(2) staff development training models, workshops, and conferences, and the cost of
releasing teachers or providing substitute teachers for staff development purposes.

The report also must indicate whether the expenditures were incurred at the district
level or the school site level, and whether the school site expenditures were made possible
by grants to school sites that demonstrate exemplary use of allocated staff development
revenue. These expenditures must be reported using the uniform financial and accounting
and reporting standards.

(c) The commissioner shall report the staff development progress and expenditure
data to the house of representatives and senate committees having jurisdiction over
education by February deleted text begin 15 deleted text end new text begin 1 new text end each year.

Sec. 5.

Minnesota Statutes 2014, section 123A.24, subdivision 1, is amended to read:

Subdivision 1.

Distribution of assets and liabilities.

(a) If a district withdraws
from a cooperative unit defined in subdivision 2, the distribution of assets and assignment
of liabilities to the withdrawing district shall be determined according to this subdivision.

(b) The withdrawing district remains responsible for its share of debt incurred by the
cooperative unit according to section 123B.02, subdivision 3. The district and cooperative
unit may mutually agree, through a board resolution by each, to terms and conditions of
the distribution of assets and the assignment of liabilities.

(c) If the cooperative unit and the district cannot agree on the terms and conditions,
the commissioner shall resolve the dispute by determining the district's proportionate share
of assets and liabilities based on the district's enrollment, financial contribution, usage, or
other factor or combination of factors determined appropriate by the commissioner. new text begin If the
dispute requires the commissioner to involve an administrative law judge, any fees due
to the Office of Administrative Hearings must be equally split between the district and
cooperative unit. new text end The assets must be disbursed to the withdrawing district in a manner
that minimizes financial disruption to the cooperative unit.

(d) Assets related to an insurance pool shall not be disbursed to a member district
under paragraph (c).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6.

Minnesota Statutes 2014, section 123B.77, subdivision 3, is amended to read:

Subd. 3.

Statement for comparison and correction.

(a) By November deleted text begin 30 deleted text end new text begin 15 new text end of the
calendar year of the submission of the unaudited financial data, the district must provide to
the commissioner audited financial data for the preceding fiscal year. The audit must be
conducted in compliance with generally accepted governmental auditing standards, the
federal Single Audit Act, and the Minnesota legal compliance guide issued by the Office
of the State Auditor. An audited financial statement prepared in a form which will allow
comparison with and correction of material differences in the unaudited financial data shall
be submitted to the commissioner and the state auditor by December deleted text begin 31 deleted text end new text begin 15 new text end . The audited
financial statement must also provide a statement of assurance pertaining to uniform
financial accounting and reporting standards compliance and a copy of the management
letter submitted to the district by the school district's auditor.

(b) By February deleted text begin 15 deleted text end new text begin (1) new text end of the calendar year following the submission of the
unaudited financial data, the commissioner shall convert the audited financial data
required by this subdivision into the consolidated financial statement format required
under subdivision 1a and publish the information on the department's Web site.

Sec. 7.

Minnesota Statutes 2014, section 125A.75, subdivision 9, is amended to read:

Subd. 9.

Litigation costs; annual report.

(a) By November 30 of each year,
a school district must annually report the district's special education litigation costs,
including attorney fees and costs of due process hearings, to the commissioner of
education, consistent with the Uniform Financial Accounting and Reporting Standards.

(b) By deleted text begin January 15 deleted text end new text begin February 1 new text end of each year, the commissioner shall report school
district special education litigation costs to the house of representatives and the senate
committees having jurisdiction over kindergarten through grade 12 education finance.

Sec. 8.

Minnesota Statutes 2014, section 127A.05, subdivision 6, is amended to read:

Subd. 6.

Survey of districts.

The commissioner of education shall survey the state's
school districts and teacher preparation programs and report to the education committees
of the legislature by deleted text begin January 15 deleted text end new text begin February 1 new text end of each odd-numbered year on the status of
teacher early retirement patterns, the teacher shortage, and the substitute teacher shortage,
including patterns and shortages in subject areas and regions of the state. The report must
also include how districts are making progress in hiring teachers and substitutes in the
areas of shortage and a five-year projection of teacher demand for each district.

Sec. 9.

Minnesota Statutes 2014, section 127A.05, is amended by adding a subdivision
to read:

new text begin Subd. 7. new text end

new text begin Annual reports. new text end

new text begin The commissioner of education may combine into
one report to be delivered annually by February 1 to the legislative committees with
jurisdiction over education policy and finance the following reports:
new text end

new text begin (1) dangerous weapons and disciplinary incidents under section 121A.06;
new text end

new text begin (2) staff development under section 122A.60, subdivision 4;
new text end

new text begin (3) achievement and integration plan evaluation under section 124D.861, subdivision
5;
new text end

new text begin (4) reducing the use of restrictive procedures under section 125A.0942, subdivision 3;
new text end

new text begin (5) students who are deaf or hard of hearing under section 125A.63, subdivision 4;
new text end

new text begin (6) special education litigation costs under section 125A.75, subdivision 9;
new text end

new text begin (7) teacher supply and demand under subdivision 6; and
new text end

new text begin (8) Minnesota High School League under section 128C.20.
new text end

Sec. 10.

Minnesota Statutes 2014, section 127A.49, subdivision 1, is amended to read:

Subdivision 1.

Omissions.

No adjustments to any aid payments made pursuant
to this chapter or chapters 120B, 122A, 123A, 123B, 124D, 125A, and 126C resulting
from omissions in district reports, except those adjustments determined by the legislative
auditor, shall be made for any school year after December deleted text begin 30 deleted text end new text begin 15 new text end of the next school year,
unless otherwise specifically provided by law.

Sec. 11.

Minnesota Statutes 2014, section 127A.70, subdivision 1, is amended to read:

Subdivision 1.

Establishment; membership.

(a) A P-20 education partnership is
established to create a seamless system of education that maximizes achievements of
all students, from early childhood through elementary, secondary, and postsecondary
education, while promoting the efficient use of financial and human resources. The
partnership shall consist of major statewide educational groups or constituencies or
noneducational statewide organizations with a stated interest in P-20 education. The initial
membership of the partnership includes the members serving on the Minnesota P-16
Education Partnership and four legislators appointed as follows:

(1) one senator from the majority party and one senator from the minority party,
appointed by the Subcommittee on Committees of the Committee on Rules and
Administration; and

(2) one member of the house of representatives appointed by the speaker of the
house and one member appointed by the minority leader of the house of representatives.

(b) The chair of the P-16 education partnership must convene the first meeting
of the P-20 partnership. Prospective members may be nominated by any partnership
member and new members will be added with the approval of a two-thirds majority of the
partnership. The partnership will also seek input from nonmember organizations whose
expertise can help inform the partnership's work.

(c) Partnership members shall be represented by the chief executives, presidents, or
other formally designated leaders of their respective organizations, or their designees. The
partnership shall meet at least three times during each calendar year.

(d) The P-20 education partnership shall be the state council for the Interstate
Compact on Educational Opportunity for Military Children under section 127A.85 with
the deleted text begin chair deleted text end new text begin commissioner or commissioner's designee new text end serving as the compact commissioner
responsible for the administration and management of the state's participation in the
compact. When conducting business required under section 127A.85, the P-20 partnership
shall include a representative from a military installation appointed by the adjutant general
of the Minnesota National Guard.