Engrossments
Introduction		Posted on 05/17/2010

A bill for an act
relating to education; providing for policy and funding for kindergarten through
grade 12 education including general education, education excellence, special
programs, facilities and technology, accounting, and state agencies; authorizing
rulemaking; requiring reports; appropriating money; amending Minnesota
Statutes 2008, sections 11A.16, subdivision 5; 120A.22, subdivision 11;
120A.24; 120B.15; 121A.15, subdivision 8; 122A.16; 122A.18, subdivision 2;
122A.23, subdivision 2; 123B.12; 123B.42, subdivision 1; 123B.44, subdivision
1; 123B.57, as amended; 123B.63, subdivision 3; 124D.09, subdivision 20;
125A.03; 125A.21, subdivisions 2, 3, 5, 7; 125A.69, subdivision 1; 125A.79,
subdivision 1; 126C.40, subdivision 1; 127A.42, subdivision 2; 127A.43;
127A.45, by adding a subdivision; 171.05, subdivision 2; 171.17, subdivision
1; 171.22, subdivision 1; 181A.05, subdivision 1; Minnesota Statutes 2009
Supplement, sections 16A.152, subdivision 2, as amended; 120B.30, subdivisions
1, 3, 4, by adding a subdivision; 120B.35, subdivision 3; 120B.36, subdivision
1; 124D.10, subdivisions 3, 4, 6a, 23; 125A.02, subdivision 1; 125A.091,
subdivision 7; 125A.63, subdivisions 2, 4, 5; 126C.41, subdivision 2; Laws 1999,
chapter 241, article 4, section 25; Laws 2009, chapter 79, article 5, section 60;
Laws 2009, chapter 96, article 2, section 67, subdivision 14; proposing coding
for new law in Minnesota Statutes, chapters 120B; 125A; repealing Minnesota
Statutes 2008, sections 120A.26, subdivisions 1, 2; 125A.54.

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

ARTICLE 1

GENERAL EDUCATION

Section 1.

Minnesota Statutes 2008, section 11A.16, subdivision 5, is amended to read:

Subd. 5.

Calculation of income.

As of the end of each fiscal year, the state
board shall calculate the investment income earned by the permanent school fund. The
investment income earned by the fund shall equal the amount of interest on debt securities
deleted text begin anddeleted text end new text begin ,new text end dividends on equity securitiesnew text begin , and interest earned on certified monthly earnings prior
to the transfer to the Department of Educationnew text end . Gains and losses arising from the sale of
securities shall be apportioned as follows:

(a) If the sale of securities results in a net gain during a fiscal year, the gain shall
be apportioned in equal installments over the next ten fiscal years to offset net losses in
those years. If any portion of an installment is not needed to recover subsequent losses
identified in paragraph (b) it shall be added to the principal of the fund.

(b) If the sale of securities results in a net loss during a fiscal year, the net loss shall
be recovered first from the gains in paragraph (a) apportioned to that fiscal year. If these
gains are insufficient, any remaining net loss shall be recovered from interest and dividend
income in equal installments over the following ten fiscal years.

Sec. 2.

Minnesota Statutes 2008, section 123B.63, subdivision 3, is amended to read:

Subd. 3.

Capital project levy referendum.

new text begin (a) new text end A district may levy the local tax
rate approved by a majority of the electors voting on the question to provide funds for
an approved project. The election must take place no more than five years before the
estimated date of commencement of the project. The referendum must be held on a date
set by the board. A referendum for a project not receiving a positive review and comment
by the commissioner under section 123B.71 must be approved by at least 60 percent of
the voters at the election.

new text begin (b) new text end The referendum may be called by the school board and may be held:

(1) separately, before an election for the issuance of obligations for the project
under chapter 475; or

(2) in conjunction with an election for the issuance of obligations for the project
under chapter 475; or

(3) notwithstanding section 475.59, as a conjunctive question authorizing both the
capital project levy and the issuance of obligations for the project under chapter 475. Any
obligations authorized for a project may be issued within five years of the date of the
election.

new text begin (c) new text end The ballot must provide a general description of the proposed project, state the
estimated total cost of the project, state whether the project has received a positive or
negative review and comment from the commissioner, state the maximum amount of the
capital project levy as a percentage of net tax capacity, state the amount that will be raised
by that local tax rate in the first year it is to be levied, and state the maximum number of
years that the levy authorization will apply.

The ballot must contain a textual portion with the information required in this
section and a question stating substantially the following:

"Shall the capital project levy proposed by the board of .......... School District
No. .......... be approved?"

If approved, the amount provided by the approved local tax rate applied to the net
tax capacity for the year preceding the year the levy is certified may be certified for the
number of years, not to exceed ten, approved.

new text begin (d) If the authority for an existing project is expiring and the district is proposing
a new project at the same maximum tax rate, the general description on the ballot may
state that the capital project levy is being renewed and that the tax rate is not being
increased from the previous year's rate and the notice required under section 276.60, may
be modified to read: "BY VOTING YES ON THIS BALLOT QUESTION, YOU ARE
VOTING TO EXTEND THE AUTHORITY FOR AN EXPIRING CAPITAL PROJECT
AT THE SAME TAX RATE."
new text end

new text begin (e) new text end In the event a conjunctive question proposes to authorize both the capital project
levy and the issuance of obligations for the project, appropriate language authorizing the
issuance of obligations must also be included in the question.

new text begin (f) new text end The district must notify the commissioner of the results of the referendum.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for referenda conducted on or after
July 1, 2010.
new text end

Sec. 3.

Minnesota Statutes 2008, section 124D.09, subdivision 20, is amended to read:

Subd. 20.

Textbooks; materials.

All textbooks and equipment provided to a pupil,
and paid for under subdivision 13, are the property of the pupil's postsecondary institution.
Each pupil is required to return all textbooks and equipment to the postsecondary
institution after the course has ended.new text begin The postsecondary institution may bill the pupil for
any textbooks and equipment that are not promptly returned by the student.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010.
new text end

Sec. 4.

Minnesota Statutes 2008, section 125A.79, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

For the purposes of this section, the definitions in this
subdivision apply.

(a) "Unreimbursed special education cost" means the sum of the following:

(1) expenditures for teachers' salaries, contracted services, supplies, equipment, and
transportation services eligible for revenue under section 125A.76; plus

(2) expenditures for tuition bills received under sections 125A.03 to 125A.24 and
125A.65 for services eligible for revenue under section 125A.76, subdivision 2; minus

(3) revenue for teachers' salaries, contracted services, supplies, equipment, and
transportation services under section 125A.76; minus

(4) tuition receipts under sections 125A.03 to 125A.24 and 125A.65 for services
eligible for revenue under section 125A.76, subdivision 2.

(b) "General revenue"new text begin for a school districtnew text end means the sum of the general education
revenue according to section 126C.10, subdivision 1, excluding alternative teacher
compensation revenue, deleted text begin plus the total qualifying referendum revenue specified in paragraph
(e)deleted text end minus transportation sparsity revenue minus total operating capital revenue.new text begin "General
revenue" for a charter school means the sum of the general education revenue according to
section 124D.11, subdivision 1, and transportation revenue according to section 124D.11,
subdivision 2, excluding alternative teacher compensation revenue, minus referendum
equalization aid minus transportation sparsity revenue minus operating capital revenue.
new text end

(d) "Program growth factor" means 1.02 for fiscal year 2012 and later.

deleted text begin (e) "Total qualifying referendum revenue" means two-thirds of the district's total
referendum revenue as adjusted according to section 127A.47, subdivision 7, paragraphs
(a) to (c), for fiscal year 2006, one-third of the district's total referendum revenue for fiscal
year 2007, and none of the district's total referendum revenue for fiscal year 2008 and later.
deleted text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2009 Supplement, section 126C.41, subdivision 2, is
amended to read:

Subd. 2.

Retired employee health benefits.

(a) A district may levy an amount up
to the amount the district is required by the collective bargaining agreement in effect
on March 30, 1992, to pay for health insurance or unreimbursed medical expenses for
licensed and nonlicensed employees who have terminated services in the employing
district and withdrawn from active teaching service or other active service, as applicable,
before July 1, 1992, and to pay for health insurance or unreimbursed medical expenses
for licensed and nonlicensed employees who have terminated services in the employing
district and withdrawn from active teaching service or other active service, as applicable
before July 1, 1998, only if a sunset clause is in effect for the current collective bargaining
agreement. The total amount of the levy each year may not exceed $600,000.

(b) In addition to the levy authority granted under paragraph (a), a school district
may levy for other postemployment benefits expensesnew text begin actually paid during the previous
fiscal yearnew text end . For purposes of this subdivision, "postemployment benefits" means benefits
giving rise to a liability under Statement No. 45 of the Government Accounting Standards
Board. A district seeking levy authority under this subdivision must:

(1) create or have created an actuarial liability to pay postemployment benefits to
employees or officers after their termination of service;

(2) have a sunset clause in effect for the current collective bargaining agreement as
required by paragraph (a); and

(3) apply for the authority in the form and manner required by the commissioner
of education.

If the total levy authority requested under this paragraph exceeds the amount established
in paragraph (c), the commissioner must proportionately reduce each district's maximum
levy authority under this subdivision.new text begin The commissioner may subsequently adjust each
district's levy authority under this subdivision so long as the total levy authority does not
exceed the maximum levy authority for that year.
new text end

(1) $9,242,000 for taxes payable in 2010;

(2) $29,863,000 for taxes payable in 2011; and

(3) for taxes payable in 2012 and later, the maximum levy authority must not exceed
the sum of the previous year's authority and $14,000,000.

Sec. 6. new text begin NONPUBLIC PUPIL AID.
new text end

new text begin The fiscal year 2011 appropriation for nonpublic pupil aid under Laws 2009, chapter
96, article 1, section 24, subdivision 6, is reduced by $458,000.
new text end

ARTICLE 2

EDUCATION EXCELLENCE

Section 1.

Minnesota Statutes 2008, section 120A.22, subdivision 11, is amended to
read:

Subd. 11.

Assessment of performance.

(a) Each year the performance of
every child who is not enrolled in a public school must be assessed using a nationally
norm-referenced standardized achievement examinationdeleted text begin . The superintendent of the
district in which the child receives instruction and the person in charge of the child's
instruction must agree about the specific examination to be used and the administration
and location of the examinationdeleted text end new text begin or a nationally recognized college entrance examnew text end .

deleted text begin (b) To the extent the examination in paragraph (a) does not provide assessment in
all of the subject areas in subdivision 9, the parent must assess the child's performance
in the applicable subject area. This requirement applies only to a parent who provides
instruction and does not meet the requirements of subdivision 10, clause (1), (2), or (3).
deleted text end

deleted text begin (c) If the results of the assessments in paragraphs (a) and (b) indicate that the
child's performance on the total battery score is at or below the 30th percentile or one
grade level below the performance level for children of the same age, the parent must
obtain additional evaluation of the child's abilities and performance for the purpose of
determining whether the child has learning problems.
deleted text end

deleted text begin (d)deleted text end new text begin (b) new text end A child receiving instruction from a nonpublic school, person, or institution
that is accredited by an accrediting agency, recognized according to section 123B.445, or
recognized by the commissioner, is exempt from the requirements of this subdivision.

Sec. 2.

Minnesota Statutes 2008, section 120A.24, is amended to read:

120A.24 REPORTING.

Subdivision 1.

Reports to superintendent.

new text begin (a) new text end The person in charge of providing
instruction to a child must submit deleted text begin the following informationdeleted text end to the superintendent of the
district in which the child residesnew text begin the name, birth date, and address of the child; the annual
tests intended to be used under section 120A.22, subdivision 11, if required; the name of
each instructor; and evidence of compliance with one of the requirements specified in
section 120A.22, subdivision 10new text end :

(1) by October 1 of deleted text begin eachdeleted text end new text begin the firstnew text end school yeardeleted text begin , the name, birth date, and address
of each child receiving instructiondeleted text end new text begin the child receives instruction after reaching the age
of sevennew text end ;

deleted text begin (2) the name of each instructor and evidence of compliance with one of the
requirements specified in section 120A.22, subdivision 10;
deleted text end

deleted text begin (3) an annual instructional calendar; and
deleted text end

deleted text begin (4) for each child instructed by a parent who meets only the requirement of section
120A.22, subdivision 10, clause (6), a quarterly report card on the achievement of the
child in each subject area required in section 120A.22, subdivision 9
deleted text end

new text begin (2) within 15 days of when a parent withdraws a child from public school after
age seven to homeschool;
new text end

new text begin (3) within 15 days of moving out of a district; and
new text end

new text begin (4) by October 1 after a new resident district is establishednew text end .

new text begin (b) The person in charge of providing instruction to a child between the ages of
seven and 16 must submit, by October 1 of each school year, a letter of intent to continue
to provide instruction under this section for all students under their supervision and any
changes to the information required in paragraph (a) for each student.
new text end

new text begin (c) The superintendent may collect the required information under this section
through electronic or Web-based format, but must not require electronic submission of
information of the person in charge of reporting under this subdivision.
new text end

Subd. 2.

Availability of documentation.

new text begin (a)new text end The person in charge of providing
instruction to a child must deleted text begin make availabledeleted text end new text begin maintainnew text end documentation indicating that the
subjects required in section 120A.22, subdivision 9, are being taughtnew text begin and proof that the
tests under section 120A.22, subdivision 11, have been administerednew text end . This documentation
must include class schedules, copies of materials used for instruction, and descriptions of
methods used to assess student achievement.

new text begin (b) The parent of a child who enrolls full-time in public school after having been
enrolled in a home school under section 120A.22, subdivision 6, must provide the
enrolling public school or school district with the child's scores on any tests administered
to the child under section 120A.22, subdivision 11, and other education-related documents
the enrolling school or district requires to determine where the child is placed in school
and what course requirements apply. This paragraph does not apply to a shared time
student who does not seek a public school diploma.
new text end

new text begin (c) The person in charge of providing instruction to a child must make the
documentation in this subdivision available to the county attorney when a case is
commenced under section 120A.26, subdivision 5; chapter 260C; or when diverted under
chapter 260A.
new text end

Subd. 3.

Exemptions.

A nonpublic school, person, or other institution that is
accredited by an accrediting agency, recognized according to section 123B.445, or
recognized by the commissioner, is exempt from the requirements in deleted text begin subdivisions 1 anddeleted text end new text begin
subdivisionnew text end 2deleted text begin , except for the requirement in subdivision 1, clause (1)deleted text end .

Subd. 4.

Reports to the state.

A superintendent must make an annual report to the
commissioner of educationnew text begin by December 1 of the total number of nonpublic children
reported as residing in the districtnew text end . deleted text begin The report must include the following information:
deleted text end

deleted text begin (1) the number of children residing in the district attending nonpublic schools or
receiving instruction from persons or institutions other than a public school;
deleted text end

deleted text begin (2) the number of children in clause (1) who are in compliance with section 120A.22
and this section; and
deleted text end

deleted text begin (3) the number of children in clause (1) who the superintendent has determined are
not in compliance with section 120A.22 and this section.
deleted text end

new text begin Subd. 5. new text end

new text begin Obligations. new text end

new text begin Nothing in this section alleviates the obligations under
section 120A.22.
new text end

Sec. 3.

Minnesota Statutes 2008, section 120B.15, is amended to read:

120B.15 GIFTED AND TALENTED STUDENTS PROGRAMS.

(a) School districts new text begin and charter schools new text end may identify students, locally develop
programsnew text begin addressing instructional and affective needsnew text end , provide staff development, and
evaluate programs to provide gifted and talented students with challenging new text begin and appropriate
new text end educational programs.

(b) School districts new text begin and charter schools new text end may adopt guidelines for assessing and
identifying students for participation in gifted and talented programs. The guidelines
should include the use of:

(1) multiple and objective criteria; and

(2) assessments and procedures that are valid and reliable, fair, and based on
current theory and researchnew text begin addressing the use of tools and methods that are sensitive to
underrepresented groups, including, but not limited to, students who are low income,
minority, gifted and learning disabled, and English language learnersnew text end .

(c) School districts new text begin and charter schools new text end must adopt procedures for the academic
acceleration of gifted and talented students. These procedures must include how the
district will:

(1) assess a student's readiness and motivation for acceleration; and

(2) match the level, complexity, and pace of the curriculum to a student to achieve
the best type of academic acceleration for that student.

Sec. 4.

new text begin [120B.21] MENTAL HEALTH EDUCATION.
new text end

new text begin The legislature encourages districts to provide instruction in mental health for
students in grades 7 through 12. Instruction must be aligned with local health standards
and integrated into a district's existing programs, curriculum, or the general school
environment. The commissioner of education, in consultation with mental health
organizations, shall provide assistance to districts including:
new text end

new text begin (1) age-appropriate model learning activities for grades 7 through 12 that address
mental health components of the National Health Education Standards and the benchmarks
developed by the department's quality teaching network in health and best practices in
mental health education; and
new text end

new text begin (2) a directory of resources for planning and implementing age-appropriate mental
health curriculum and instruction in grades 7 through 12.
new text end

Sec. 5.

Minnesota Statutes 2009 Supplement, 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 developed from and aligned with the state's
required academic standards under section 120B.021, include multiple choice questions,
and be administered annually to all students in grades 3 through 8. 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. The commissioner shall establish one or more months during
which schools shall administer the tests to students each school year. For students enrolled
in grade 8 before the 2005-2006 school year, Minnesota basic skills tests in reading,
mathematics, and writing shall fulfill students' basic skills testing requirements for a
passing state notation. The passing scores of basic skills tests in reading and mathematics
are the equivalent of 75 percent correct for students entering grade 9 based on the first
uniform test administered in February 1998. Students who have not successfully passed
a Minnesota basic skills test by the end of the 2011-2012 school year must pass the
graduation-required assessments for diploma under paragraph (b).

(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:

(1) mathematics;

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

(ii) high school level beginning in the deleted text begin 2013-2014deleted text end new text begin 2014-2015new text end school year;

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

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

(c) For students enrolled in grade 8 in the 2005-2006 school year and later, only the
following options shall fulfill students' state graduation test requirements:

(1) for reading and mathematics:

(i) obtaining an achievement level equivalent to or greater than proficient as
determined through a standard setting process on the Minnesota comprehensive
assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing
score as determined through a standard setting process on the graduation-required
assessment for diploma in grade 10 for reading and grade 11 for mathematics or
subsequent retests;

(ii) achieving a passing score as determined through a standard setting process on the
state-identified language proficiency test in reading and the mathematics test for English
language learners or the graduation-required assessment for diploma equivalent of those
assessments for students designated as English language learners;

(iii) achieving an individual passing score on the graduation-required assessment
for diploma as determined by appropriate state guidelines for students with an individual
education plan or 504 plan;

(iv) obtaining achievement level equivalent to or greater than proficient as
determined through a standard setting process on the state-identified alternate assessment
or assessments in grade 10 for reading and grade 11 for mathematics for students with
an individual education plan; or

(v) achieving an individual passing score on the state-identified alternate assessment
or assessments as determined by appropriate state guidelines for students with an
individual education plan; and

(2) for writing:

(i) achieving a passing score on the graduation-required assessment for diploma;

(ii) achieving a passing score as determined through a standard setting process on
the state-identified language proficiency test in writing for students designated as English
language learners;

(iii) achieving an individual passing score on the graduation-required assessment
for diploma as determined by appropriate state guidelines for students with an individual
education plan or 504 plan; or

(iv) achieving an individual passing score on the state-identified alternate assessment
or assessments as determined by appropriate state guidelines for students with an
individual education plan.

(d) Students enrolled in grade 8 in any school year from the 2005-2006 school
year to the 2009-2010 school year who do not pass the mathematics graduation-required
assessment for diploma under paragraph (b) are eligible to receive a high school diploma
deleted text begin with a passing state notationdeleted text end if they:

(1) complete with a passing score or grade all state and local coursework and credits
required for graduation by the school board granting the students their diploma;

(2) participate in district-prescribed academic remediation in mathematics; and

(3) fully participate in at least two retests of the mathematics GRAD test or until
they pass the mathematics GRAD test, whichever comes first. A school, district, or
charter school must place new text begin on the high school transcript new text end a student's deleted text begin highestdeleted text end new text begin current pass
status for each subject that has a required graduation new text end assessment deleted text begin score for each of the
following assessments on the student's high school transcript: the mathematics Minnesota
Comprehensive Assessment, reading Minnesota Comprehensive Assessment, and writing
Graduation-Required Assessment for Diploma, and when applicable, the mathematics
Graduation-Required Assessment for Diploma and reading Graduation-Required
Assessment for Diplomadeleted text end .

In addition, the school board granting the 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.

(e) The 3rd through 8th grade 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
disseminate to the public the high school test results upon receiving those results.

(f) The 3rd through 8th grade 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.

(g) In addition to the testing and reporting requirements under this section, the
commissioner shall include the following components in the statewide public reporting
system:

(1) uniform statewide testing of all students in grades 3 through 8 and at the high
school level that provides appropriate, technically sound accommodations or alternate
assessments;

(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;

(3) state results on the American College Test; and

(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.

Sec. 6.

Minnesota Statutes 2009 Supplement, section 120B.30, is amended by adding a
subdivision to read:

new text begin Subd. 1b. new text end

new text begin High school algebra end-of-course assessment. new text end

new text begin (a) Notwithstanding
subdivision 1, the commissioner shall establish a statewide high school algebra
end-of-course assessment for students entering grade 8 in the 2010-2011 school year
and later that provides information on the college and career readiness of Minnesota
students and fulfills federal accountability requirements, consistent with this subdivision
and related rules. For purposes of this subdivision, "college and career readiness" means
the knowledge and skills that a high school graduate needs to do either credit-bearing
coursework at a two-year or four-year college or university or career-track employment
that pays a living wage, provides employment benefits, and offers clear pathways for
advancement through further education and training.
new text end

new text begin (b) This statewide high school algebra end-of-course assessment must conform
with the following:
new text end

new text begin (1) align with the most recently revised academic content standards under section
120B.023, subdivision 2;
new text end

new text begin (2) include both multiple-choice and open-ended items that assess the appropriate
algebra knowledge and skills contained in the state's academic content standards;
new text end

new text begin (3) be designed for computer administration and scoring so that, beginning the
second year a computerized test is administered and as soon as practicable during the
first year a computerized test is administered, the exam results of students who take
computerized tests are available to the school or district within three full school days after
the exam is administered, among other design characteristics;
new text end

new text begin (4) be administered at regular intervals that align with the most common high school
schedules in Minnesota;
new text end

new text begin (5) generate achievement levels established through a professionally recognized
methodology;
new text end

new text begin (6) use achievement level descriptors that define a student's college and career
readiness;
new text end

new text begin (7) comprise 20 percent of the student's overall course grade in the corresponding
course;
new text end

new text begin (8) require a student who does not pass a high school algebra course to (i)
retake the course or complete a district-authorized credit recovery class, (ii) opt, at the
student's election, to retake the end-of-course assessment within a regularly scheduled
administration window, and (iii) have the student select the exam score on the initial test
or the retest to count as the equivalent of 20 percent of the student's overall course grade;
new text end

new text begin (9) allow an eligible student to meet this requirement through an alternative method
that demonstrates the student's college and career readiness:
new text end

new text begin (i) for high school students who transfer into Minnesota from another state where
the algebra course content, as applicable, is of equal or greater rigor, pass that state's high
school course and graduation requirements in algebra, as applicable;
new text end

new text begin (ii) allow a student who has an active individualized education program to achieve a
passing status at an individual level as prescribed by the commissioner;
new text end

new text begin (iii) waive the required exam for a high school student who is an English language
learner under section 124D.59 and who has been enrolled for four or fewer years in a
school in which English is the primary language of instruction; or
new text end

new text begin (iv) other alternative methods recommended by the Assessment Advisory
Committee, if subsequently specifically authorized by law to allow other alternative
methods;
new text end

new text begin (10) use three consecutive school years of research and analysis through the
2014-2015 school year, as prescribed by the commissioner, to calculate and report an
alignment index that compares students' final grades in this course with their end-of-course
assessment scores;
new text end

new text begin (11) subsequent to calculating and reporting the alignment index under clause (10),
require schools that are highly misaligned for two or more consecutive school years to
transmit written notice of the misalignment to all parents of students enrolled in the school,
as prescribed by the commissioner; and
new text end

new text begin (12) when schools are highly misaligned for two or more consecutive years under
clause (11), use school district funds under section 122A.60, subdivision 1a, paragraph
(a), to correct the misalignment.
new text end

new text begin (c) The requirements of this subdivision apply to students in public schools,
including charter schools, who enter grade 8 in the 2010-2011 school year or later. The
commissioner may establish a transition period where students who enter grade 8 in the
2010-2011 or 2011-2012 school year graduate either under the Graduation-Required
Assessment for Diploma requirements under section 120B.30, subdivision 1, or this
subdivision. The commissioner may seek authority from the legislature to adjust the
time line under this paragraph if circumstances such as changes in federal law governing
educational accountability and assessment warrant such an adjustment.
new text end

new text begin (d) To fully implement this subdivision and enable school districts to provide
intervention and support to struggling students and improve instruction for all students,
the commissioner must provide districts with (1) a benchmark assessment aligned with
the high school algebra end-of-course assessment, and as funding allows, may provide
districts with (2) an item bank available to teachers for creating formative assessments to
help students prepare for the high school algebra end-of-course assessment.
new text end

new text begin (e) The commissioner shall expand the membership and purpose of the Assessment
Advisory Committee established under section 120B.365 to include assessment experts
and practitioners from both secondary and postsecondary education systems and other
appropriate stakeholders to monitor the implementation of and student outcomes based
on the algebra end-of-course assessment and policies and the state support available
to districts, including small or rural districts, under this subdivision. This committee
shall report annually by February 15 to the commissioner and the legislature on the
implementation of and student outcomes based on the assessment and policies under this
subdivision. Notwithstanding section 15.059, subdivision 3, committee members shall not
receive compensation, per diem payments, or reimbursement for expenses.
new text end

new text begin (f) Using a solicitation process that includes a "request for proposal" process and
multiple responses, the commissioner shall contract for at least two independent studies
at two-year intervals to evaluate (1) the implementation of the requirements and (2) the
availability and efficacy of resources to support and improve student outcomes based on
student achievement data under this subdivision. The commissioner must submit the
results of the first study to the education policy and finance committees of the legislature
by February 15, 2015. The commissioner must submit the results of the second study
to the legislature by February 15, 2017.
new text end

new text begin (g) The commissioner must not begin to develop additional statewide end-of-course
exams in geometry, chemistry, or physics until specifically authorized in law to do so.
new text end

new text begin (h) A district or charter school must indicate on a student's transcript the student's
level of college and career readiness in algebra under this subdivision after the levels have
been established through a professionally recognized methodology.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

Minnesota Statutes 2009 Supplement, section 120B.30, subdivision 3, is
amended to read:

Subd. 3.

Reporting.

The commissioner shall report test deleted text begin datadeleted text end new text begin resultsnew text end 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.new text begin The test results must not include personally
identifiable information as defined in Code of Federal Regulations, title 34, section 99.3.new text end
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.

Sec. 8.

Minnesota Statutes 2009 Supplement, section 120B.30, subdivision 4, is
amended to read:

Subd. 4.

Access to tests.

new text begin Consistent with section 13.34, new text end the commissioner must
adopt and publish a policy to provide public and parental access for review of basic skills
tests, Minnesota Comprehensive Assessments, or any other such statewide test and
assessmentnew text begin which would not compromise the objectivity or fairness of the testing or
examination processnew text end . 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. 9.

Minnesota Statutes 2009 Supplement, section 120B.35, subdivision 3, is
amended to read:

Subd. 3.

State growth target; other state measures.

(a) The state's educational
assessment system measuring individual students' educational growth is based on
indicators of achievement growth that show an individual student's prior achievement.
Indicators of achievement and prior achievement must be based on highly reliable
statewide or districtwide assessments.

(b) The commissioner, in consultation with a stakeholder group that includes
assessment and evaluation directors and staff and researchers must implement a model
that uses a value-added growth indicator and includes criteria for identifying schools
and school districts that demonstrate medium and high growth under section 120B.299,
subdivisions 8 and 9, and may recommend other value-added measures under section
120B.299, subdivision 3. The model may be used to advance educators' professional
development and replicate programs that succeed in meeting students' diverse learning
needs. Data on individual teachers generated under the model are personnel data under
section 13.43. The model must allow users to:

(1) report student growth consistent with this paragraph; and

(2) for all student categories, report and compare aggregated and disaggregated state
growth data using the nine student categories identified under the federal 2001 No Child
Left Behind Act and two student gender categories of male and female, respectively,
following appropriate reporting practices to protect nonpublic student data.

The commissioner must report separate measures of student growth and proficiency,
consistent with this paragraph.

(c) When reporting student performance under section 120B.36, subdivision 1, the
commissioner annually, beginning July 1, 2011, must report two core measures indicating
the extent to which current high school graduates are being prepared for postsecondary
academic and career opportunities:

(1) a preparation measure indicating the number and percentage of high school
graduates in the most recent school year who completed course work important to
preparing them for postsecondary academic and career opportunities, consistent with
the core academic subjects required for admission to Minnesota's public colleges and
universities as determined by the Office of Higher Education under chapter 136A; and

(2) a rigorous coursework measure indicating the number and percentage of high
school graduates in the most recent school year who successfully completed one or more
college-level advanced placement, international baccalaureate, postsecondary enrollment
options including concurrent enrollment, other rigorous courses of study under section
120B.021, subdivision 1a, or industry certification courses or programs.

When reporting the core measures under clauses (1) and (2), the commissioner must also
analyze and report separate categories of information using the nine student categories
identified under the federal 2001 No Child Left Behind Act and two student gender
categories of male and female, respectively, following appropriate reporting practices to
protect nonpublic student data.

(d) When reporting student performance under section 120B.36, subdivision 1, the
commissioner annually, beginning July 1, 2014, must report summary data on school
safety and students' engagement and connection at school. The summary data under this
paragraph are separate from and must not be used for any purpose related to measuring
or evaluating the performance of classroom teachers. The commissioner, in consultation
with qualified experts on student engagement and connection and classroom teachers,
must identify highly reliable variables that generate summary data under this paragraph.
The summary data may be used at school, district, and state levels only. Any data on
individuals received, collected, or created that are used to generate the summary data
under this paragraph are nonpublic data under section 13.02, subdivision 9.

new text begin (e) For purposes of statewide educational accountability, the commissioner must
identify and report measures that demonstrate the success of school districts, school sites,
charter schools, and alternative program providers in improving the graduation outcomes
of students under this paragraph. When reporting student performance under section
120B.36, subdivision 1, the commissioner, beginning July 1, 2013, must annually report
summary data on (i) the four- and six-year graduation rates of students throughout the state
who are identified as at risk of not graduating or off track to graduate, including students
who are eligible to participate in a program under section 123A.05 or 124D.68, among
other students, and (ii) the success that school districts, school sites, charter schools, and
alternative program providers experience in:
new text end

new text begin (1) identifying at-risk and off-track student populations by grade;
new text end

new text begin (2) providing successful prevention and intervention strategies for at-risk students;
new text end

new text begin (3) providing successful recuperative and recovery or reenrollment strategies for
off-track students; and
new text end

new text begin (4) improving the graduation outcomes of at-risk and off-track students.
new text end

new text begin For purposes of this paragraph, a student who is at risk of not graduating is a student
in eighth or ninth grade who meets one or more of the following criteria: first enrolled
in an English language learners program in eighth or ninth grade and may be older than
other students enrolled in the same grade; as an eighth grader, is absent from school for at
least 20 percent of the days of instruction during the school year, is two or more years
older than other students enrolled in the same grade, or fails multiple core academic
courses; or as a ninth grader, fails multiple ninth grade core academic courses in English
language arts, math, science, or social studies.
new text end

new text begin For purposes of this paragraph, a student who is off track to graduate is a student
who meets one or more of the following criteria: first enrolled in an English language
learners program in high school and is older than other students enrolled in the same grade;
is a returning dropout; is 16 or 17 years old and two or more academic years off track to
graduate; is 18 years or older and two or more academic years off track to graduate; or is
18 years or older and may graduate within one school year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (e) applies to data that are collected in the
2012-2013 school year and later and reported annually beginning July 1, 2013, consistent
with the recommendations the commissioner receives from recognized and qualified
experts on improving differentiated graduation rates, and establishing alternative routes to
a standard high school diploma for at-risk and off-track students.
new text end

Sec. 10.

Minnesota Statutes 2009 Supplement, section 120B.36, subdivision 1, is
amended to read:

Subdivision 1.

School performance report cards.

(a) The commissioner
shall report student academic performance under section 120B.35, subdivision 2; the
percentages of students showing low, medium, and high growth under section 120B.35,
subdivision 3, paragraph (b); school safety and student engagement and connection
under section 120B.35, subdivision 3, paragraph (d); rigorous coursework under section
120B.35, subdivision 3, paragraph (c); new text begin the four- and six-year graduation rates of at-risk and
off-track students throughout the state under section 120B.35, subdivision 3, paragraph
(e), and the success that school districts, school sites, charter schools, and alternative
program providers experience in their efforts to improve the graduation outcomes of
those students; new text end two separate student-to-teacher ratios that clearly indicate the definition
of teacher consistent with sections 122A.06 and 122A.15 for purposes of determining
these ratios; staff characteristics excluding salaries; student enrollment demographics;
district mobility; and extracurricular activities. The report also must indicate a school's
adequate yearly progress status, and must not set any designations applicable to high- and
low-performing schools due solely to adequate yearly progress status.

(b) The commissioner shall develop, annually update, and post on the department
Web site school performance report cards.

(d) A school or district may appeal its adequate yearly progress status in writing to
the commissioner within 30 days of receiving the notice of its status. The commissioner's
decision to uphold or deny an appeal is final.

(e) School performance report card data are nonpublic data under section 13.02,
subdivision 9, until not later than ten days after the appeal procedure described in
paragraph (d) concludes. The department shall annually post school performance report
cards to its public Web site no later than September 1.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to annual reports beginning July 1, 2013.
new text end

Sec. 11.

Minnesota Statutes 2008, section 121A.15, subdivision 8, is amended to read:

Subd. 8.

Report.

The administrator or other person having general control and
supervision of the elementary or secondary school shall file a report with the commissioner
on all persons enrolled in the school. The superintendent of each district shall file a report
with the commissioner for all persons within the district receiving instruction in a home
school in compliance with sections 120A.22 and 120A.24. The parent of persons receiving
instruction in a home school shall submit the statements as required by subdivisions 1, 2,
3, and 4 to the superintendent of the district in which the person resides by October 1 of
deleted text begin each school yeardeleted text end new text begin the first year of their homeschooling and the 7th grade yearnew text end . The school
report must be prepared on forms developed jointly by the commissioner of health and the
commissioner of education and be distributed to the local districts by the commissioner
of health. The school report must state the number of persons attending the school, the
number of persons who have not been immunized according to subdivision 1 or 2, and
the number of persons who received an exemption under subdivision 3, clause (c) or (d).
The school report must be filed with the commissioner of education within 60 days of the
commencement of each new school term. Upon request, a district must be given a 60-day
extension for filing the school report. The commissioner of education shall forward the
report, or a copy thereof, to the commissioner of health who shall provide summary
reports to boards of health as defined in section 145A.02, subdivision 2. The administrator
or other person having general control and supervision of the child care facility shall file a
report with the commissioner of human services on all persons enrolled in the child care
facility. The child care facility report must be prepared on forms developed jointly by
the commissioner of health and the commissioner of human services and be distributed
to child care facilities by the commissioner of health. The child care facility report
must state the number of persons enrolled in the facility, the number of persons with no
immunizations, the number of persons who received an exemption under subdivision 3,
clause (c) or (d), and the number of persons with partial or full immunization histories.
The child care facility report must be filed with the commissioner of human services by
November 1 of each year. The commissioner of human services shall forward the report,
or a copy thereof, to the commissioner of health who shall provide summary reports to
boards of health as defined in section 145A.02, subdivision 2. The report required by this
subdivision is not required of a family child care or group family child care facility, for
prekindergarten children enrolled in any elementary or secondary school provided services
according to sections 125A.05 and 125A.06, nor for child care facilities in which at least
75 percent of children in the facility participate on a onetime only or occasional basis to a
maximum of 45 hours per child, per month.

Sec. 12.

Minnesota Statutes 2008, section 122A.16, is amended to read:

122A.16 HIGHLY QUALIFIED TEACHER DEFINED.

(a) A qualified teacher is one holding a valid license, under this chapter, to perform
the particular service for which the teacher is employed in a public school.

(b) For the purposes of the federal No Child Left Behind Act, a highly qualified
teacher is one who holds a valid license under this chapter to perform the particular service
for which the teacher is employed in a public school or who meets the requirements of a
highly objective uniform state standard of evaluation (HOUSSE).

All Minnesota teachers teaching in a core academic subject area, as defined by the
federal No Child Left Behind Act, in which they are not fully licensed may complete the
following HOUSSE process in the core subject area for which the teacher is requesting
highly qualified status by completing an application, in the form and manner described by
the commissioner, that includes:

(1) documentation of student achievement as evidenced by norm-referenced test
results that are objective and psychometrically valid and reliable;

(2) evidence of local, state, or national activities, recognition, or awards for
professional contribution to achievement;

(3) description of teaching experience in the teachers' core subject area in a public
school under a waiver, variance, limited license or other exception; nonpublic school; and
postsecondary institution;

(4) test results from the deleted text begin Praxis IIdeleted text end new text begin subject area new text end content test;

(5) evidence of advanced certification from the National Board for Professional
Teaching Standards;

(6) evidence of the successful completion of course work or pedagogy courses; and

(7) evidence of the successful completion of high quality professional development
activities.

Districts must assign a school administrator to serve as a HOUSSE reviewer to
meet with teachers under this paragraph and, where appropriate, certify the teachers'
applications. Teachers satisfy the definition of highly qualified when the teachers receive
at least 100 of the total number of points used to measure the teachers' content expertise
under clauses (1) to (7). Teachers may acquire up to 50 points only in any one clause (1)
to (7). Teachers may use the HOUSSE process to satisfy the definition of highly qualified
for more than one subject area.

(c) Achievement of the HOUSSE criteria is not equivalent to a license. A teacher
must obtain permission from the Board of Teaching in order to teach in a public school.

Sec. 13.

Minnesota Statutes 2008, section 122A.18, subdivision 2, is amended to read:

Subd. 2.

Teacher and support personnel qualifications.

(a) The Board of
Teaching must issue licenses under its jurisdiction to persons the board finds to be
qualified and competent for their respective positions.

(b) The board must require a person to deleted text begin successfully completedeleted text end new text begin passnew text end an examination of
skills in reading, writing, and mathematics before being granted an initial teaching license
to provide direct instruction to pupils in prekindergarten, elementary, secondary, or special
education programs. The board must require colleges and universities offering a board
approved teacher preparation program to provide remedial assistance that includes a
formal diagnostic component to persons enrolled in their institution who did not achieve a
qualifying score on the skills examination, including those for whom English is a second
language. The colleges and universities must provide assistance in the specific academic
areas of deficiency in which the person did not achieve a qualifying score. School
districts must provide similar, appropriate, and timely remedial assistance that includes a
formal diagnostic component and mentoring to those persons employed by the district
who completed their teacher education program outside the state of Minnesota, received
a one-year license to teach in Minnesota and did not achieve a qualifying score on the
skills examination, including those persons for whom English is a second language. The
Board of Teaching shall report annually to the education committees of the legislature
on the total number of teacher candidates during the most recent school year taking the
skills examination, the number who achieve a qualifying score on the examination, the
number who do not achieve a qualifying score on the examination, the distribution of all
candidates' scores, the number of candidates who have taken the examination at least once
before, and the number of candidates who have taken the examination at least once before
and achieve a qualifying score.

deleted text begin (c) A person who has completed an approved teacher preparation program and
obtained a one-year license to teach, but has not successfully completed the skills
examination, may renew the one-year license for two additional one-year periods. Each
renewal of the one-year license is contingent upon the licensee:
deleted text end

deleted text begin (1) providing evidence of participating in an approved remedial assistance program
provided by a school district or postsecondary institution that includes a formal diagnostic
component in the specific areas in which the licensee did not obtain qualifying scores; and
deleted text end

deleted text begin (2) attempting to successfully complete the skills examination during the period
of each one-year license.
deleted text end

deleted text begin (d)deleted text end new text begin (c) new text end The Board of Teaching must grant continuing licenses only to those persons
who have met board criteria for granting a continuing license, which includes deleted text begin successfully
completingdeleted text end new text begin passingnew text end the skills examination in reading, writing, and mathematics.

deleted text begin (e)deleted text end new text begin (d) new text end All colleges and universities approved by the board of teaching to prepare
persons for teacher licensure must include in their teacher preparation programs a common
core of teaching knowledge and skills to be acquired by all persons recommended
for teacher licensure. This common core shall meet the standards developed by the
interstate new teacher assessment and support consortium in its 1992 "model standards for
beginning teacher licensing and development." Amendments to standards adopted under
this paragraph are covered by chapter 14. The board of teaching shall report annually to
the education committees of the legislature on the performance of teacher candidates
on common core assessments of knowledge and skills under this paragraph during the
most recent school year.

new text begin (e) The Board of Teaching must:
new text end

new text begin (1) ensure that kindergarten through grade 12 teacher licensing standards are highly
aligned with the state's kindergarten through grade 12 academic standards;
new text end

new text begin (2) adopt a review cycle that is consistent with the kindergarten through grade 12
academic standards review cycle under section 120B.023, subdivision 2; and
new text end

new text begin (3) review and align the teacher licensure standards with the kindergarten through
grade 12 academic standards within one school year after the commissioner reviews and
adopts revised kindergarten through grade 12 academic standards in a particular subject
area.
new text end

new text begin (f) All teacher preparation programs approved by the Board of Teaching must
require teacher candidates to complete at least one online course.
new text end

Sec. 14.

Minnesota Statutes 2008, section 122A.23, subdivision 2, is amended to read:

Subd. 2.

Applicants licensed in other states.

(a) Subject to the requirements
of sections 122A.18, subdivision 8, and 123B.03, the Board of Teaching must issue
a teaching license or a temporary teaching license under paragraphs (b) to (e) to an
applicant who holds at least a baccalaureate degree from a regionally accredited college
or university and holds or held a similar out-of-state teaching license that requires the
applicant to successfully complete a teacher preparation program approved by the issuing
state, which includes field-specific teaching methods and student teaching or essentially
equivalent experience.

(b) The Board of Teaching must issue a teaching license to an applicant who:

(1) deleted text begin successfully completeddeleted text end new text begin passednew text end all exams and new text begin successfully completed new text end human
relations preparation components required by the Board of Teaching; and

(2) holds or held an out-of-state teaching license to teach the same content field and
grade levels if the scope of the out-of-state license is no more than one grade level less
than a similar Minnesota license.

(c) The Board of Teaching, consistent with board rules, must issue up to three
one-year temporary teaching licenses to an applicant who holds or held an out-of-state
teaching license to teach the same content field and grade levels, where the scope of the
out-of-state license is no more than one grade level less than a similar Minnesota license,
but has not deleted text begin successfully completeddeleted text end new text begin passednew text end all exams and new text begin successfully completed new text end human
relations preparation components required by the Board of Teaching.

(d) The Board of Teaching, consistent with board rules, must issue up to three
one-year temporary teaching licenses to an applicant who:

(2) holds or held an out-of-state teaching license to teach the same content field
and grade levels, where the scope of the out-of-state license is no more than one grade
level less than a similar Minnesota license, but has not completed field-specific teaching
methods or student teaching or equivalent experience.

The applicant may complete field-specific teaching methods and student teaching
or equivalent experience by successfully participating in a one-year school district
mentorship program consistent with board-adopted standards of effective practice and
Minnesota graduation requirements.

(e) The Board of Teaching must issue a temporary teaching license for a term of
up to three years only in the content field or grade levels specified in the out-of-state
license to an applicant who:

(2) holds or held an out-of-state teaching license where the out-of-state license is
more limited in the content field or grade levels than a similar Minnesota license.

(f) The Board of Teaching must not issue to an applicant more than three one-year
temporary teaching licenses under this subdivision.

(g) The Board of Teaching must not issue a license under this subdivision if the
applicant has not attained the additional degrees, credentials, or licenses required in a
particular licensure field.

Sec. 15.

Minnesota Statutes 2008, section 123B.42, subdivision 1, is amended to read:

Subdivision 1.

Providing education materials and tests.

The commissioner of
education shall promulgate rules under the provisions of chapter 14 requiring that in
each school year, based upon formal requests by or on behalf of nonpublic school pupils
in a nonpublic schoolnew text begin with enrollment that exceeds 15 studentsnew text end , the local districts or
intermediary service areas must purchase or otherwise acquire textbooks, individualized
instructional or cooperative learning materials, and standardized tests and loan or provide
them for use by children enrolled in that nonpublic school. These textbooks, individualized
instructional or cooperative learning materials, and standardized tests must be loaned or
provided free to the children for the school year for which requested. The loan or provision
of the textbooks, individualized instructional or cooperative learning materials, and
standardized tests shall be subject to rules prescribed by the commissioner of education.

Sec. 16.

Minnesota Statutes 2008, section 123B.44, subdivision 1, is amended to read:

Subdivision 1.

Provided services.

The commissioner of education shall promulgate
rules under the provisions of chapter 14 requiring each district or other intermediary
service area: (a) to provide each year upon formal request by a specific date by or on
behalf of a nonpublic school pupil enrolled in a nonpublic school located in that district
or areanew text begin with a total enrollment of more than 15 pupilsnew text end , the same specific health services
as are provided for public school pupils by the district where the nonpublic school is
located; and (b) to provide each year upon formal request by a specific date by or on
behalf of a nonpublic school secondary pupil enrolled in a nonpublic school located in that
district or area, the same specific guidance and counseling services as are provided for
public school secondary pupils by the district where the nonpublic school is located. The
district where the nonpublic school is located must provide the necessary transportation
within the district boundaries between the nonpublic school and a public school or
neutral site for nonpublic school pupils who are provided pupil support services under
this section if the district elects to provide pupil support services at a site other than the
nonpublic school. Each request for pupil support services must set forth the guidance and
counseling or health services requested by or on behalf of all eligible nonpublic school
pupils enrolled in a given nonpublic school. No district or intermediary service area
must not expend an amount for these pupil support services which exceeds the amount
allotted to it under this section.

Sec. 17.

Minnesota Statutes 2009 Supplement, 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.

"Affidavit" means the form an authorizer submits to the commissioner that is a
precondition to a charter school organizing an affiliated nonprofit building corporation
under subdivision 17a.

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

(1) a school board; intermediate school district school board; 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 institutiondeleted text begin ,deleted text end new text begin without an
approved affidavit by the commissioner prior to July 1, 2009, andnew text end 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;

(iii) reports an end-of-year fund balance of at least $2,000,000; and

(iv) is incorporated in the state of Minnesota;

(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; or

(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.

(5) no more than three single-purpose sponsors that are charitable, nonsectarian
organizations formed under section 501(c)(3) of the Internal Revenue Code of 1986 and
incorporated in the state of Minnesota whose sole purpose is to charter schools. Eligible
organizations interested in being approved as a sponsor 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 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 60 business days of the application deadline. If the commissioner disapproves
the application, the commissioner must notify the applicant of the deficiencies and the
applicant then has 20 business days to address the deficiencies to the commissioner's
satisfaction. 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) The deleted text begin affidavitdeleted text end new text begin application for approvalnew text end to be submitted to and evaluated by the
commissioner must include 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 a sponsor, including
the personnel who will perform the sponsoring 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, which will include at least the following:

(i) how the statutory purposes defined in subdivision 1 are addressed;

(ii) the mission, goals, program model, and student performance expectations;

(iii) an evaluation plan for the school that includes criteria for evaluating educational,
organizational, and fiscal plans;

(iv) the school's governance plan;

(v) the financial management plan; and

(vi) the administration and operations plan;

(4) a description of the type of contract it will arrange with the schools it charters
that meets the provisions of subdivision 6 and defines the rights and responsibilities of the
charter school for governing its educational program, controlling its funds, and making
school management decisions;

(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) 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

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

A disapproved applicant under this paragraph may resubmit an application during a
future application period.

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

(f) An authorizer that chartered a school before August 1, 2009, must apply by
June 30, 2011, to the commissioner for approval, under paragraph (c), to continue as an
authorizer under this section. For purposes of this paragraph, an authorizer that fails to
submit a timely application is ineligible to charter a school.

(g) 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.

(h) 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; or

(3) unsatisfactory performance as an approved authorizer.

Sec. 18.

Minnesota Statutes 2009 Supplement, 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 cooperative under chapter 308A or 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. 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. 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 cooperative under chapter 308A or 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, 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) Upon the request of an individual, the charter school must make available in
a timely fashion the minutes of meetings of the board of directors, and of members
and committees having any board-delegated authority; 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 post on its official Web
site information identifying its authorizer and indicate how to contact that authorizer and
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 department-approved training
on board governance, the board's role and responsibilities, employment policies and
practices, and financial management. A board member who does not begin the required
training within six months of being seated and complete the required training within 12
months of being seated on the board is ineligible to continue to serve as a board member.

(g) The ongoing board must be elected before the school completes its third year
of operation. Board elections must be held during a time when school is in session. The
charter school board of directors shall be composed of at least five nonrelated members
and include: (i) at least one licensed teacher employednew text begin and serving as a teachernew text end at the
school or a licensed teacher providing instruction under a deleted text begin contactdeleted text end new text begin contractnew text end between the
charter school and a cooperative; (ii) the parent or legal guardian of a student enrolled
in the charter schoolnew text begin who is not employed by the charter schoolnew text end ; and (iii) an interested
community member who is not employed by the charter school and does not have a child
enrolled in the school. The board may be a teacher majority board composed of teachers
described in this paragraph. The chief financial officer and the chief administrator deleted text begin aredeleted text end new text begin may
only serve asnew text end ex-officio nonvoting board membersnew text begin and shall not serve as a voting member
of the board. Charter school employees shall not serve on the board unless item (i) applies.
Contractors providing facilities, goods, or services to a charter school shall not serve on
the board of directors of the charter schoolnew text end . Board bylaws shall outline the process and
procedures for changing the board's governance model, consistent with chapter 317A. A
board may change its governance model only:

(1) by a majority vote of the board of directors and the licensed teachers employed
by the school, 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 must conform with the board structure 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) An authorizer may permit the board of directors of a charter school to expand
the operation of the charter school to additional sites or to add additional grades at the
school beyond those described in the authorizer's original affidavit as approved by
the commissioner only after submitting a supplemental affidavit for approval to the
commissioner in a form and manner prescribed by the commissioner. The supplemental
affidavit must show that:

(1) the expansion proposed by the charter school is supported by need and projected
enrollment;

(2) the charter school expansion is warranted, at a minimum, by longitudinal data
demonstrating students' improved academic performance and growth on statewide
assessments under chapter 120B;

(3) the charter school is fiscally sound and has the financial capacity to implement
the proposed expansion; and

(4) the authorizer finds that the charter school has the management capacity to
carry out its expansion.

(k) The commissioner shall have 30 business days to review and comment on the
supplemental affidavit. The commissioner shall notify the authorizer of any deficiencies in
the supplemental affidavit and the authorizer then has 30 business days to address, to the
commissioner's satisfaction, any deficiencies in the supplemental 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. 19.

Minnesota Statutes 2009 Supplement, section 124D.10, subdivision 6a,
is amended to read:

Subd. 6a.

Audit report.

(a) The charter school must submit an audit report to the
commissioner and its authorizer by December 31 each year.

(b) The charter school, with the assistance of the auditor conducting the audit, must
include with the report a copy of all charter school agreements for corporate management
services. If the entity that provides the professional services to the charter school is
exempt from taxation under section 501 of the Internal Revenue Code of 1986, that entity
must file with the commissioner by February 15 a copy of the annual return required under
section 6033 of the Internal Revenue Code of 1986.

(c) If the commissioner receives an audit report indicating that a material weakness
exists in the financial reporting systems of a charter school, the charter school must
submit a written report to the commissioner explaining how the material weakness will
be resolved. new text begin An entity, as a condition of providing financial services to a charter school,
must agree to make available information about a charter school's financial audit to the
commissioner upon request.
new text end

Sec. 20.

Minnesota Statutes 2009 Supplement, section 124D.10, subdivision 23,
is amended to read:

Subd. 23.

Causes for nonrenewal or termination of charter school contract.

(a)
The duration of the contract with an authorizer must be for the term contained in the
contract according to subdivision 6. The authorizer may or may not renew a contract at
the end of the term for any ground listed in paragraph (b). An authorizer may unilaterally
terminate a contract during the term of the contract for any ground listed in paragraph
(b). At least 60 days before not renewing or terminating a contract, the authorizer shall
notify the board of directors of the charter school of the proposed action in writing. The
notice shall state the grounds for the proposed action in reasonable detail and that the
charter school's board of directors may request in writing an informal hearing before the
authorizer within 15 business days of receiving notice of nonrenewal or termination of the
contract. Failure by the board of directors to make a written request for a hearing within
the 15-business-day period shall be treated as acquiescence to the proposed action. Upon
receiving a timely written request for a hearing, the authorizer shall give ten business days'
notice to the charter school's board of directors of the hearing date. The authorizer shall
conduct an informal hearing before taking final action. The authorizer shall take final
action to renew or not renew a contract no later than 20 business days before the proposed
date for terminating the contract or the end date of the contract.

(b) A contract may be terminated or not renewed upon any of the following grounds:

(1) failure to meet the requirements for pupil performance contained in the contract;

(2) failure to meet generally accepted standards of fiscal management;

(3) violations of law; or

(4) other good cause shown.

If a contract is terminated or not renewed under this paragraph, the school must be
dissolved according to the applicable provisions of chapter 308A or 317A.

(c) If the sponsor and the charter school board of directors mutually agree to
terminate or not renew the contract, a change in sponsors is allowed if the commissioner
approves the transfer to a different eligible authorizer to authorize the charter school.
Both parties must jointly submit their intent in writing to the commissioner to mutually
terminate the contract. The sponsor that is a party to the existing contract at least must
inform the approved different eligible sponsor about the fiscal and operational status
and student performance of the school. Before the commissioner determines whether
to approve a transfer of authorizer, the commissioner first must determine whether the
charter school and prospective new authorizer can identify and effectively resolve those
circumstances causing the previous authorizer and the charter school to mutually agree to
terminate the contract. If no transfer of sponsor is approved, the school must be dissolved
according to applicable law and the terms of the contract.

(d) The commissioner, after providing reasonable notice to the board of directors of
a charter school and the existing authorizer, and after providing an opportunity for a public
hearing new text begin under chapter 14new text end , may terminate the existing contract between the authorizer and
the charter school board if the charter school has a history of:

(1) failure to meet pupil performance requirements deleted text begin contained in the contractdeleted text end new text begin
consistent with state lawnew text end ;

(2) financial mismanagement or failure to meet generally accepted standards of
fiscal management; or

(3) deleted text begin repeated or majordeleted text end violations of the law.

(e) If the commissioner terminates a charter school contract under subdivision 3,
paragraph (g), the commissioner shall provide the charter school with information about
other eligible authorizers.

Sec. 21.

Minnesota Statutes 2008, section 171.05, subdivision 2, is amended to read:

Subd. 2.

Person less than 18 years of age.

(a) Notwithstanding any provision
in subdivision 1 to the contrary, the department may issue an instruction permit to an
applicant who is 15, 16, or 17 years of age and who:

(1) has completed a course of driver education in another state, has a previously
issued valid license from another state, or is enrolled in either:

(i) a public, private, or commercial driver education program that is approved by
the commissioner of public safety and that includes classroom and behind-the-wheel
training; or

(ii) an approved behind-the-wheel driver education program when the student is
receiving full-time instruction in a home school within the meaning of sections 120A.22
and 120A.24, the student is working toward a homeschool diploma, deleted text begin the student's status
as a homeschool student has been certified by the superintendent of the school district in
which the student resides, anddeleted text end the student is taking home-classroom driver training with
classroom materials approved by the commissioner of public safetynew text begin , and the student's
parent has certified the student's homeschool and home-classroom driver training status on
the form approved by the commissionernew text end ;

(2) has completed the classroom phase of instruction in the driver education program;

(3) has passed a test of the applicant's eyesight;

(4) has passed a department-administered test of the applicant's knowledge of traffic
laws;

(5) has completed the required application, which must be approved by (i) either
parent when both reside in the same household as the minor applicant or, if otherwise, then
(ii) the parent or spouse of the parent having custody or, in the event there is no court order
for custody, then (iii) the parent or spouse of the parent with whom the minor is living
or, if items (i) to (iii) do not apply, then (iv) the guardian having custody of the minor or,
in the event a person under the age of 18 has no living father, mother, or guardian, or is
married or otherwise legally emancipated, then (v) the applicant's adult spouse, adult close
family member, or adult employer; provided, that the approval required by this clause
contains a verification of the age of the applicant and the identity of the parent, guardian,
adult spouse, adult close family member, or adult employer; and

(6) has paid the fee required in section 171.06, subdivision 2.

(b) new text begin For the purposes of determining compliance with the certification of paragraph
(a), clause (1), item (ii), the commissioner may request verification of a student's
homeschool status from the superintendent of the school district in which the student
resides and the superintendent shall provide that verification.
new text end

new text begin (c) new text end The instruction permit is valid for two years from the date of application and
may be renewed upon payment of a fee equal to the fee for issuance of an instruction
permit under section 171.06, subdivision 2.

Sec. 22.

Minnesota Statutes 2008, section 171.17, subdivision 1, is amended to read:

Subdivision 1.

Offenses.

(a) The department shall immediately revoke the license
of a driver upon receiving a record of the driver's conviction of:

(1) manslaughter resulting from the operation of a motor vehicle or criminal
vehicular homicide or injury under section 609.21;

(2) a violation of section 169A.20 or 609.487;

(3) a felony in the commission of which a motor vehicle was used;

(4) failure to stop and disclose identity and render aid, as required under section
169.09, in the event of a motor vehicle accident, resulting in the death or personal injury
of another;

(5) perjury or the making of a false affidavit or statement to the department under
any law relating to the new text begin application, new text end ownership or operation of a motor vehiclenew text begin , including
on the certification required under section 171.05, subdivision 2, clause (1), item (ii), to
issue an instruction permit to a homeschool studentnew text end ;

(6) except as this section otherwise provides, three charges of violating within a
period of 12 months any of the provisions of chapter 169 or of the rules or municipal
ordinances enacted in conformance with chapter 169, for which the accused may be
punished upon conviction by imprisonment;

(7) two or more violations, within five years, of the misdemeanor offense described
in section 169.444, subdivision 2, paragraph (a);

(8) the gross misdemeanor offense described in section 169.444, subdivision 2,
paragraph (b);

(9) an offense in another state that, if committed in this state, would be grounds for
revoking the driver's license; or

(10) a violation of an applicable speed limit by a person driving in excess of 100
miles per hour. The person's license must be revoked for six months for a violation of
this clause, or for a longer minimum period of time applicable under section 169A.53,
169A.54, or 171.174.

(b) The department shall immediately revoke the school bus endorsement of a driver
upon receiving a record of the driver's conviction of the misdemeanor offense described in
section 169.443, subdivision 7.

Sec. 23.

Minnesota Statutes 2008, section 171.22, subdivision 1, is amended to read:

Subdivision 1.

Violations.

With regard to any driver's license, including a
commercial driver's license, it shall be unlawful for any person:

(1) to display, cause or permit to be displayed, or have in possession, any fictitious
or fraudulently altered driver's license or Minnesota identification card;

(2) to lend the person's driver's license or Minnesota identification card to any other
person or knowingly permit the use thereof by another;

(3) to display or represent as one's own any driver's license or Minnesota
identification card not issued to that person;

(4) to use a fictitious name or date of birth to any police officer or in any application
for a driver's license or Minnesota identification card, or to knowingly make a false
statement, or to knowingly conceal a material fact, or otherwise commit a fraud in any
such application;

(5) to alter any driver's license or Minnesota identification card;

(6) to take any part of the driver's license examination for another or to permit
another to take the examination for that person;

(7) to make a counterfeit driver's license or Minnesota identification card;

(8) to use the name and date of birth of another person to any police officer for the
purpose of falsely identifying oneself to the police officer; deleted text begin or
deleted text end

(9) to display as a valid driver's license any canceled, revoked, or suspended driver's
license. A person whose driving privileges have been withdrawn may display a driver's
license only for identification purposesnew text begin ; or
new text end

new text begin (10) to submit a false affidavit or statement to the department on the certification
required under section 171.05, subdivision 2, clause (1), item (ii), to issue an instruction
permit to a homeschool studentnew text end .

Sec. 24.

Minnesota Statutes 2008, section 181A.05, subdivision 1, is amended to read:

Subdivision 1.

When issued.

Any minor 14 or 15 years of age who wishes to work
on school days during school hours shall first secure an employment certificate. The
certificate shall be issued only by the school district superintendent, the superintendent's
agent, deleted text begin ordeleted text end some other person designated by the Board of Educationnew text begin , or by the person in
charge of providing instruction for students enrolled in nonpublic schools as defined in
section 120A.22, subdivision 4new text end . The employment certificate shall be issued only for
a specific position with a designated employer and shall be issued only in the following
circumstances:

(1) if a minor is to be employed in an occupation not prohibited by rules promulgated
under section 181A.09 and as evidence thereof presents a signed statement from the
prospective employer; and

(2) if the parent or guardian of the minor consents to the employment; and

(3) if the issuing officer believes the minor is physically capable of handling the job
in question and further believes the best interests of the minor will be served by permitting
the minor to work.

Sec. 25.

Laws 2009, chapter 96, article 2, section 67, subdivision 14, is amended to
read:

Subd. 14.

Collaborative urban educator.

For the collaborative urban educator
grant program:

	$	528,000	.....	2010
	$	528,000	.....	2011

new text begin $210,000 each year is for the Southeast Asian teacher program at Concordia
University, St. Paul; $159,000 each year is for the collaborative urban educator program at
the University of St. Thomas; and $159,000 each year is for the Center for Excellence in
Urban Teaching at Hamline University. Grant recipients must collaborate with urban and
nonurban school districts. new text end Any balance in the first year does not cancel but is available
in the second year.

new text begin EFFECTIVE DATE. new text end

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

Sec. 26. new text begin IMPLEMENTING DIFFERENTIATED GRADUATION RATE
MEASURES AND EXPLORING ALTERNATIVE ROUTES TO A STANDARD
DIPLOMA FOR AT-RISK AND OFF-TRACK STUDENTS.
new text end

new text begin (a) To implement the requirements of Minnesota Statutes, section 120B.35,
subdivision 3, paragraph (e), the commissioner of education must convene a group
of recognized and qualified experts on improving differentiated graduation rates and
establishing alternative routes to a standard high school diploma for at-risk and off-track
students throughout the state. The commissioner must assist the group, as requested,
to explore and recommend to the commissioner and the legislature (i) research-based
measures that demonstrate the relative success of school districts, school sites, charter
schools, and alternative program providers in improving the graduation outcomes of
at-risk and off-track students, and (ii) state options for establishing alternative routes to a
standard diploma consistent with the educational accountability system under Minnesota
Statutes, chapter 120B. When proposing alternative routes to a standard diploma, the
group also must identify highly reliable variables that generate summary data to comply
with Minnesota Statutes, section 120B.35, subdivision 3, paragraph (e), including: who
initiates the request for an alternative route; who approves the request for an alternative
route; the parameters of the alternative route process, including whether a student first
must fail a regular, state-mandated exam; and the comparability of the academic and
achievement criteria reflected in the alternative route and the standard route for a standard
diploma. The group is also encouraged to identify the data, time lines, and methods
needed to evaluate and report on the alternative routes to a standard diploma once they are
implemented and the student outcomes that result from those routes.
new text end

new text begin (b) The commissioner must convene the first meeting of this group by September
15, 2010. Group members must include: one administrator of, one teacher from, and
one parent of a student currently enrolled in a state-approved alternative program
selected by the Minnesota Association of Alternative Programs; one representative
selected by the Minnesota Online Learning Alliance; one representative selected by
the Metropolitan Federation of Alternative Schools; one representative selected by the
Minnesota Association of Charter Schools; one representative selected by the Minnesota
School Board Association; one representative selected by Education Minnesota; one
representative selected by the Association of Metropolitan School Districts; one
representative selected by the Minnesota Rural Education Association; two faculty
members selected by the dean of the college of education at the University of Minnesota
with expertise in serving and assessing at-risk and off-track students; two Minnesota State
Colleges and Universities faculty members selected by the Minnesota State Colleges
and Universities chancellor with expertise in serving and assessing at-risk and off-track
students; one currently serving superintendent from a school district selected by the
Minnesota Association of School Administrators; one currently serving high school
principal selected by the Minnesota Association of Secondary School Principals; and
two public members selected by the commissioner. The group may seek input from
representatives of other interested stakeholders and organizations with expertise to help
inform the group's work. The group must meet at least quarterly. Group members do not
receive compensation or reimbursement of expenses for participating in this group. The
group expires February 16, 2012.
new text end

new text begin (c) The group, by February 15, 2012, must develop and submit to the commissioner
and the education policy and finance committees of the legislature recommendations
and legislation, consistent with this section and Minnesota Statutes, section 120B.35,
subdivision 3, paragraph (e), for:
new text end

new text begin (1) measuring and reporting differentiated graduation rates for at-risk and off-track
students throughout the state and the success and costs that school districts, school sites,
charter schools, and alternative program providers experience in identifying and serving
at-risk or off-track student populations; and
new text end

new text begin (2) establishing alternative routes to a standard diploma.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to school report cards beginning July 1, 2013.
new text end

Sec. 27. new text begin RULEMAKING AUTHORITY.
new text end

new text begin The commissioner of education shall adopt rules consistent with chapter 14 that
provide English language proficiency standards for instruction of students identified
as limited English proficient under Minnesota Statutes, sections 124D.58 to 124D.64.
The English language proficiency standards must encompass the language domains of
listening, speaking, reading, and writing. The English language proficiency standards must
reflect social and academic dimensions of acquiring a second language that are accepted
of English language learners in prekindergarten through grade 12. The English language
proficiency standards must address the specific contexts for language acquisition in the
areas of social and instructional settings as well as academic language encountered in
language arts, mathematics, science, and social studies. The English language proficiency
standards must express the progression of language development through language
proficiency levels. The English language proficiency standards must be implemented
for all limited English proficient students beginning in the 2011-2012 school year and
assessed beginning in the 2012-2013 school year.
new text end

Sec. 28. new text begin ASSESSMENT ADVISORY COMMITTEE; RECOMMENDATIONS.
new text end

new text begin (a) The Assessment Advisory Committee must develop recommendations for
alternative methods by which students satisfy the high school algebra end-of-course
requirements under Minnesota Statutes, section 120B.30, subdivision 1b, paragraph (b),
clause (9), and demonstrate their college and career readiness. The Assessment Advisory
Committee, among other alternative methods and if consistent with federal educational
accountability law, must consider allowing students to:
new text end

new text begin (1) achieve the mathematics college readiness score on the American College Test
(ACT) or Scholastic Aptitude Test (SAT) exam;
new text end

new text begin (2) achieve a college-credit score on a College-Level Examination Program (CLEP)
for algebra;
new text end

new text begin (3) achieve a score on an equivalent Advanced Placement or International
Baccalaureate exam that would earn credit at a four-year college or university; or
new text end

new text begin (4) pass a credit-bearing course in college algebra or a more advanced course in that
subject with a grade of C or better under Minnesota Statutes, section 124D.09, including
Minnesota Statutes, section 124D.09, subdivision 10.
new text end

new text begin (b) The Assessment Advisory Committee, in the context of the high school algebra
end-of-course assessment under Minnesota Statutes, section 120B.30, subdivision 1b, may
develop recommendations on integrating universal design principles to improve access
to learning and assessments for all students, more accurately understand what students
know and can do, provide Minnesota with more cost-effective assessments, and provide
educators with more valid inferences about students' achievement levels.
new text end

new text begin (c) The Assessment Advisory Committee, for purposes of fully implementing the
high school algebra end-of-course assessment under Minnesota Statutes, section 120B.30,
subdivision 1b, also must develop recommendations for:
new text end

new text begin (1) calculating the alignment index, including how questions about validity and
reliability are resolved; and
new text end

new text begin (2) defining "misaligned" and "highly misaligned" and when and under what specific
circumstances misalignments occur.
new text end

new text begin (d) By February 15, 2011, the Assessment Advisory Committee must submit its
recommendations under this section to the education commissioner and the education
policy and finance committees of the legislature.
new text end

new text begin (e) The commissioner must not implement any element of any recommendation
under paragraphs (a) to (d) related to the high school algebra end-of-course assessment
under Minnesota Statutes, section 120B.30, subdivision 1b, without first receiving specific
legislative authority to do so.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 29. new text begin PERSISTENTLY LOWEST-ACHIEVING SCHOOL DESIGNATION;
FEDERAL SCHOOL IMPROVEMENT GRANTS.
new text end

new text begin Upon request of a traditional public or charter school, the commissioner shall seek
an exception from the United States Department of Education, to the extent it is permitted
under the school improvement grant requirements, from the designation as a persistently
lowest-achieving school if the school has shown student growth in proficiency from 2007
through 2010 of over 50 percent in the high-growth category under the Minnesota growth
model under Minnesota Statutes, section 120B.299. A traditional public or charter school
may only request this exemption if it is identified as a persistently lowest-achieving
school under the graduation rate definition or if the school has an approved program
under Minnesota Statutes, section 124D.68.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 30. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, section 120A.26, subdivisions 1 and 2, new text end new text begin are repealed.
new text end

ARTICLE 3

SPECIAL PROGRAMS

Section 1.

Minnesota Statutes 2009 Supplement, section 125A.02, subdivision 1,
is amended to read:

Subdivision 1.

Child with a disability.

"Child with a disability" means a child
identified under federal and state special education law as deleted text begin having a hearing impairment,
blindness, visual disability,deleted text end new text begin deaf or hard-of-hearing, blind or visually impaired, deafblind,
or having anew text end speech or language impairment, new text begin a new text end physical deleted text begin disabilitydeleted text end new text begin impairmentnew text end , other health
deleted text begin impairmentdeleted text end new text begin disabilitynew text end , deleted text begin mentaldeleted text end new text begin developmental cognitivenew text end disability, deleted text begin emotional/behavioraldeleted text end new text begin an
emotional or behavioralnew text end disorder, specific learning disability, autismnew text begin spectrum disordernew text end ,
traumatic brain injury, new text begin or severe new text end multiple deleted text begin disabilitiesdeleted text end new text begin impairmentsnew text end , deleted text begin or deafblind disabilitydeleted text end new text begin
andnew text end who needs special education and related services, as determined by the rules of the
commissionerdeleted text begin , is a child with a disabilitydeleted text end . A licensed physician, an advanced practice
nurse, or a licensed psychologist is qualified to make a diagnosis and determination
of attention deficit disorder or attention deficit hyperactivity disorder for purposes of
identifying a child with a disability.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010.
new text end

Sec. 2.

Minnesota Statutes 2008, section 125A.03, is amended to read:

125A.03 SPECIAL INSTRUCTION FOR CHILDREN WITH A DISABILITY.

(a) deleted text begin As defineddeleted text end new text begin Except as providednew text end in paragraph (b), every district must provide new text begin or
make available new text end special deleted text begin instructiondeleted text end new text begin educationnew text end and new text begin related new text end services, either within the district
or in another district, for deleted text begin all childrendeleted text end new text begin every childnew text end with a disabilitydeleted text begin , including providing
required services under Code of Federal Regulations, title 34, section 300.121, paragraph
(d), to those children suspended or expelled from school for more than ten school days
in that school year,deleted text end who deleted text begin are residentsdeleted text end new text begin is a residentnew text end of the district deleted text begin and who are disabled as
set forth in section 125A.02deleted text end new text begin from birth until that child becomes 21 years old or receives
a regular high school diploma, whichever comes firstnew text end . deleted text begin For purposes of state and federal
special education laws,deleted text end The phrase "special deleted text begin instructiondeleted text end new text begin educationnew text end and new text begin related new text end services"
deleted text begin in the state Education Codedeleted text end means a free deleted text begin anddeleted text end appropriate public education provided to an
eligible child with deleted text begin disabilities and includes special education and related services defined
in the Individuals with Disabilities Education Act, subpart A, section 300.24deleted text end new text begin a disabilitynew text end .

(b) deleted text begin Notwithstanding any age limits in laws to the contrary, special instruction and
services must be provided from birth until July 1 after the child with a disability becomes
21 years old but shall not extend beyond secondary school or its equivalent, except as
provided in section 124D.68, subdivision 2.deleted text end new text begin If a child with a disability becomes 21 years
old during the school year, the district shall continue to make available special education
and related services until the last day of the school year, or until the day the child receives
a regular high school diploma, whichever comes first.
new text end

new text begin (c) For purposes of this section and section 121A.41, subdivision 7, paragraph (a),
clause (2), "school year" means the days of student instruction designated by the school
board as the regular school year in the annual calendar adopted under section 120A.41.
new text end

new text begin (d) A district shall identify, locate, and evaluate children with a disability in the
district who are in need of special education and related services.new text end Local health, education,
and social service agencies must refer children under age five who are known to need or
suspected of needing special deleted text begin instructiondeleted text end new text begin educationnew text end and new text begin related new text end services to the school
district. deleted text begin Districts with less than the minimum number of eligible children with a disability
as determined by the commissioner must cooperate with other districts to maintain a full
range of programs for education and services for children with a disability. This section
does not alter the compulsory attendance requirements of section 120A.22.deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010.
new text end

Sec. 3.

new text begin [125A.031] RESOLVING DISPUTES AMONG DISTRICTS.
new text end

new text begin If districts dispute which district is responsible for providing or making available
special education and related services to a child with a disability who is not currently
enrolled in a district because the child's district of residence is disputed, the district in
which that child first tries to enroll shall provide or make available special education
and related services to the child until the commissioner is notified and expeditiously
resolves the dispute. For purposes of this section, "district" means a school district or a
charter school.
new text end

Sec. 4.

Minnesota Statutes 2009 Supplement, section 125A.091, subdivision 7, is
amended to read:

Subd. 7.

Conciliation conference.

A parent must have an opportunity to meet with
appropriate district staff in at least one conciliation conference if the parent objects to
any proposal of which the parent receives notice under subdivision 3a. A district must
new text begin offer to new text end hold a conciliation conference within new text begin two business days after receiving a parent's
objection to a proposal or refusal in the prior written notice. The district must hold the
conciliation conference within new text end ten calendar days from the date the district receives deleted text begin adeleted text end new text begin thenew text end
parent's objection deleted text begin to a proposal or refusal in the prior written noticedeleted text end . Except as provided
in this section, all discussions held during a conciliation conference are confidential
and are not admissible in a due process hearing. Within five school days after the final
conciliation conference, the district must prepare and provide to the parent a conciliation
conference memorandum that describes the district's final proposed offer of service. This
memorandum is admissible in evidence in any subsequent proceeding.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to all conciliation conferences required after that date.
new text end

Sec. 5.

Minnesota Statutes 2008, section 125A.21, subdivision 2, is amended to read:

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
written notice to the enrolled child's parent or legal representative of its intent to seek
reimbursement from medical assistance or MinnesotaCare for the individual education
plan health-related services provided by the district.new text begin The notice shall include:
new text end

new text begin (1) the right of the parent or legal representative to request a copy of all records
concerning individualized education program health-related services disclosed by the
district to any third party;
new text end

new text begin (2) the right of the parent or legal representative to withdraw consent for disclosing a
child's records at any time without consequence, including consent that was initially
given as part of the application process for MinnesotaCare or medical assistance under
section 256B.08, subdivision 1; and
new text end

new text begin (3) a decision to revoke consent for schools to share information from education
records does not impact a parent's eligibility for MinnesotaCare or medical assistance.
new text end

(1) the district's intent to seek reimbursement from medical assistance or
MinnesotaCare for individual education plan health-related services provided by the
district;

(2) the right of the parent or legal representative to request a copy of all records
concerning individual education plan 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 consequencenew text begin , including consent that was initially
given as part of the application process for MinnesotaCare or medical assistance under
section 256B.08, subdivision 1new text end .

The written notice shall be provided as part of the written notice required by Code of
Federal Regulations, title 34, section 300.504.

(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 individual education plan 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 individual education plan 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.

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 2008, section 125A.21, subdivision 3, is amended to read:

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 deleted text begin determine
which services are reimbursable and to seek timely reimbursement in a cost-effective
mannerdeleted text end new text begin access third-party payments for individualized education program health-related
servicesnew text end ; or

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

Sec. 7.

Minnesota Statutes 2008, section 125A.21, subdivision 5, is amended to read:

Subd. 5.

Informed consent.

When obtaining informed consent, consistent with
sections 13.05, subdivision 4, paragraph (d)deleted text begin ; anddeleted text end new text begin ,new text end 256B.77, subdivision 2, paragraph
(p)new text begin , and Code of Federal Regulations, title 34, parts 99 and 300new 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 individual 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.

Sec. 8.

Minnesota Statutes 2008, section 125A.21, subdivision 7, is amended to read:

Subd. 7.

District disclosure of information.

A school district may disclose
information contained in a student's individual education plan, consistent with section
13.32, subdivision 3, paragraph (a),new text begin and Code of Federal Regulations, title 34, part 99;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. 9.

Minnesota Statutes 2009 Supplement, section 125A.63, subdivision 2, is
amended to read:

Subd. 2.

Programs.

new text begin The Department of Education, through new text end the resource centers
must offer summer institutes or other training programsnew text begin and other educational strategiesnew text end
throughout the state for deaf or hard-of-hearing, blind or visually impaired, and multiply
disabled pupils. The resource centers must also offer workshops for teachers, and
leadership development for teachers.

A program offered through the resource centers must promote and develop education
programs offered by school districts or other organizations. The program must assist
school districts or other organizations to develop innovative programs.

Sec. 10.

Minnesota Statutes 2009 Supplement, section 125A.63, subdivision 4, is
amended to read:

Subd. 4.

Advisory committees.

(a) The commissioner shall establish an
advisory committee for each resource center. The advisory committees shall develop
recommendations regarding the resource centers and submit an annual report to the
commissioner on the form and in the manner prescribed by the commissioner.

(b) The advisory committee for the Resource Center 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 Hard of Hearing 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, deleted text begin anddeleted text end the school performance report
cards under section 120B.36, subdivision 1new text begin , and relevant IDEA Parts B and C mandated
reporting datanew text end ; deleted text begin and
deleted text end

(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 plandeleted text begin .deleted text end new text begin ; andnew text end

new text begin (3) include the recommendations for improving the developmental outcomes of
children birth to age 3 and the data underlying those recommendations that the coordinator
identifies under subdivision 5.
new text end

Sec. 11.

Minnesota Statutes 2009 Supplement, 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, the director of the Department of Education Resource Center for
Deaf and Hard-of-Hearing, 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 of the Minnesota Department of Education Resource Center for the Deaf and
Hard-of-Hearing.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 12.

Minnesota Statutes 2008, section 125A.69, subdivision 1, is amended to read:

Subdivision 1.

deleted text begin Two kindsdeleted text end new text begin Admissionsnew text end .

deleted text begin There are two kinds ofdeleted text end Admission to the
Minnesota State Academiesnew text begin is described in this sectionnew text end .

(a) A pupil who is deaf, hard of hearing, or blind-deaf, may be admitted to the
Academy for the Deaf. A pupil who is blind or visually impaired, blind-deaf, or multiply
disabled may be admitted to the Academy for the Blind. For a pupil to be admitted, two
decisions must be made under sections 125A.03 to 125A.24 and 125A.65.

(1) It must be decided by the individual education planning team that education in
regular or special education classes in the pupil's district of residence cannot be achieved
satisfactorily because of the nature and severity of the deafness or blindness or visual
impairment respectively.

(2) It must be decided by the individual education planning team that the academy
provides the most appropriate placement within the least restrictive alternative for the
pupil.

(b) A deaf or hard of hearing child or a visually impaired pupil may be admitted to
get socialization skills or on a short-term basis for skills development.

new text begin (c) A parent of a child who resides in Minnesota and who meets the disability criteria
for being deaf or hard-of-hearing, blind or visually impaired, or multiply disabled may
apply to place the child in the Minnesota State Academies. Academy staff must review
the application to determine whether the Minnesota State Academies is an appropriate
placement for the child. If academy staff determine that the Minnesota State Academies
is an appropriate placement, the staff must invite the individualized education program
team at the child's resident school district to participate in a meeting to arrange a trial
placement of between 60 and 90 calendar days at the Minnesota State Academies. If
the child's parent consents to the trial placement, the Minnesota State Academies is the
responsible serving school district and incur all due process obligations under law and the
child's resident school district is responsible for any transportation included in the child's
individualized education program during the trial placement. Before the trial placement
ends, academy staff must convene an individualized education program team meeting to
determine whether to continue the child's placement at the Minnesota State Academies or
that another placement is appropriate. If the individualized education program team and
the parent are unable to agree on the child's placement, the child's placement reverts to the
placement in the child's individualized education program that immediately preceded the
trial placement. If the parent and individualized education program team agree to continue
the placement beyond the trial period, the transportation and due process responsibilities
are the same as those described for the trial placement under this paragraph.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2010-2011 school year and
later.
new text end

Sec. 13.

Laws 2009, chapter 79, article 5, section 60, is amended to read:

Sec. 60.

Minnesota Statutes 2008, section 256L.05, is amended by adding a
subdivision to read:

Subd. 1c.

Open enrollment and streamlined application and enrollment
process.

(a) The commissioner and local agencies working in partnership must develop a
streamlined and efficient application and enrollment process for medical assistance and
MinnesotaCare enrollees that meets the criteria specified in this subdivision.

(b) The commissioners of human services and education shall provide
recommendations to the legislature by January 15, 2010, on the creation of an open
enrollment process for medical assistance and MinnesotaCare that is coordinated with
the public education system. The recommendations must:

(1) be developed in consultation with medical assistance and MinnesotaCare
enrollees and representatives from organizations that advocate on behalf of children and
families, low-income persons and minority populations, counties, school administrators
and nurses, health plans, and health care providers;

(2) be based on enrollment and renewal procedures best practices, including express
lane eligibility as required under subdivision 1d;

(3) simplify the enrollment and renewal processes wherever possible; and

(4) establish a process:

(i) to disseminate information on medical assistance and MinnesotaCare to all
children in the public education system, including prekindergarten programs; and

(ii) for the commissioner of human services to enroll children and other household
members who are eligible.

The commissioner of human services in coordination with the commissioner of
education shall implement an open enrollment process by August 1, 2010, to be effective
beginning with the 2010-2011 school year.

(c) The commissioner and local agencies shall develop an online application process
for medical assistance and MinnesotaCare.

(d) The commissioner shall develop an application that is easily understandable
and does not exceed four pages in length.

(e) The commissioner of human services shall present to the legislature, by January
15, 2010, an implementation plan for the open enrollment period and online application
process.

new text begin (f) To ensure parity between all providers of medical services in the ability to seek
reimbursement from MinnesotaCare or medical assistance, the commissioner of human
services, in consultation with the commissioner of education, shall include on new or
revised enrollment forms consent authorization language for all providers of medical
services to the parent's child or children, including schools, by incorporating language on
the enrollment form that is consistent with federal data practices laws requiring consent
before a school may release information from individual educational records. The consent
language shall include a statement that the medical services providers may share with the
commissioner of human services medical or other information in the possession of the
provider that is necessary for the provider to be reimbursed by MinnesotaCare or medical
assistance. The consent language also shall state that information may be shared from
a child's individual educational records and that the parent may revoke the consent for
schools to share information from educational records at any time. The commissioner
shall include substantially similar consent authorization language on each of its other
enrollment forms as they are scheduled for review, revision, or replacement.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010, or upon federal
approval, which must be requested by the commissioner, whichever is later.
new text end

Sec. 14. new text begin THIRD-PARTY BILLING.
new text end

new text begin To allow the cost effective billing of medical assistance for covered services that
are not reimbursed by other legally liable third parties, the commissioner of human
services must:
new text end

new text begin (1) summarize and document school district efforts to secure reimbursement from
legally liable third parties; and
new text end

new text begin (2) request permission from the Centers for Medicare and Medicaid Services to
allow school districts to bill Medicaid alone, without first billing private payers, when:
new text end

new text begin (i) a child has both public and private coverage; and
new text end

new text begin (ii) documentation demonstrates that the private payer involved does not reimburse
for individualized education program health-related services.
new text end

Sec. 15. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes shall substitute the term "individualized education program"
or similar terms for "individual education plan" or similar terms wherever they appear
in Minnesota Statutes and Minnesota Rules referring to the requirements relating to
the federal Individuals with Disabilities Education Act. The revisor shall also make
grammatical changes related to the changes in terms.
new text end

Sec. 16. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, section 125A.54, new text end new text begin is repealed.
new text end

ARTICLE 4

FACILITIES AND TECHNOLOGY

Section 1.

Minnesota Statutes 2008, section 123B.57, as amended by Laws 2009
chapter 96, article 4, section 2, is amended to read:

123B.57 CAPITAL EXPENDITURE; HEALTH AND SAFETY.

Subdivision 1.

Health and safety deleted text begin programdeleted text end new text begin revenue applicationnew text end .

(a) To receive
health and safety revenue for any fiscal year a district must submit to the commissioner
deleted text begin andeleted text end new text begin a capital expenditure health and safety revenuenew text end application deleted text begin for aid and levydeleted text end by the
date determined by the commissioner. deleted text begin The application may be for hazardous substance
removal, fire and life safety code repairs, labor and industry regulated facility and
equipment violations, and health, safety, and environmental management, including
indoor air quality management.deleted text end The application must include a health and safety deleted text begin programdeleted text end new text begin
budgetnew text end adopted new text begin and confirmed new text end by the school district boardnew text begin as being consistent with the
district's health and safety policy under subdivision 2new text end . The deleted text begin programdeleted text end new text begin budgetnew text end must include
the estimated costdeleted text begin , per building,deleted text end of the program new text begin per Uniform Financial Accounting and
Reporting Standards (UFARS) finance code, new text end by fiscal year. Upon approval through the
adoption of a resolution by each of an intermediate district's member school district
boards and the approval of the Department of Education, a school district may include
its proportionate share of the costs of health and safety projects for an intermediate
district in its application.

(b) Health and safety projects with an estimated cost of $500,000 or more per
site are not eligible for health and safety revenue. Health and safety projects with an
estimated cost of $500,000 or more per site that meet all other requirements for health and
safety funding, are eligible for alternative facilities bonding and levy revenue according
to section 123B.59. A school board shall not separate portions of a single project into
components to qualify for health and safety revenue, and shall not combine unrelated
projects into a single project to qualify for alternative facilities bonding and levy revenue.

new text begin (c) The commissioner of education shall not make eligibility for health and safety
revenue contingent on a district's compliance status, level of program development, or
training. The commissioner shall not mandate additional performance criteria such as
training, certifications, or compliance evaluations as a prerequisite for levy approval.
new text end

Subd. 2.

deleted text begin Contents of programdeleted text end new text begin Health and safety policynew text end .

new text begin To qualify for health
and safety revenue, new text end a deleted text begin districtdeleted text end new text begin school boardnew text end must adopt a health and safety deleted text begin programdeleted text end new text begin policynew text end .
The deleted text begin programdeleted text end new text begin policynew text end must include deleted text begin plans, where applicable, for hazardous substance
removal, fire and life safety code repairs, regulated facility and equipment violations,
anddeleted text end new text begin provisions for implementing a health and safety program that complies withnew text end health,
safety, and environmental deleted text begin management,deleted text end new text begin regulations and best practicesnew text end including indoor
air quality management.

deleted text begin (a) A hazardous substance plan must contain provisions for the removal or
encapsulation of asbestos from school buildings or property, asbestos-related repairs,
cleanup and disposal of polychlorinated biphenyls found in school buildings or property,
and cleanup, removal, disposal, and repairs related to storing heating fuel or transportation
fuels such as alcohol, gasoline, fuel, oil, and special fuel, as defined in section 296A.01.
If a district has already developed a plan for the removal or encapsulation of asbestos as
required by the federal Asbestos Hazard Emergency Response Act of 1986, the district
may use a summary of that plan, which includes a description and schedule of response
actions, for purposes of this section. The plan must also contain provisions to make
modifications to existing facilities and equipment necessary to limit personal exposure
to hazardous substances, as regulated by the federal Occupational Safety and Health
Administration under Code of Federal Regulations, title 29, part 1910, subpart Z; or is
determined by the commissioner to present a significant risk to district staff or student
health and safety as a result of foreseeable use, handling, accidental spill, exposure, or
contamination.
deleted text end

deleted text begin (b) A fire and life safety plan must contain a description of the current fire and life
safety code violations, a plan for the removal or repair of the fire and life safety hazard,
and a description of safety preparation and awareness procedures to be followed until the
hazard is fully corrected.
deleted text end

deleted text begin (c) A facilities and equipment violation plan must contain provisions to correct
health and safety hazards as provided in Department of Labor and Industry standards
pursuant to section 182.655.
deleted text end

deleted text begin (d) A health, safety, and environmental management plan must contain a description
of training, record keeping, hazard assessment, and program management as defined
in section 123B.56.
deleted text end

deleted text begin (e) A plan to test for and mitigate radon produced hazards.
deleted text end

deleted text begin (f) A plan to monitor and improve indoor air quality.
deleted text end

Subd. 3.

Health and safety revenue.

A district's health and safety revenue
for a fiscal year equals the district's alternative facilities levy under section 123B.59,
subdivision 5, paragraph (b), plus the greater of zero or:

(1) the sum of (a) the total approved cost of the district's hazardous substance
plan for fiscal years 1985 through 1989, plus (b) the total approved cost of the district's
health and safety program for fiscal year 1990 through the fiscal year to which the levy
is attributable, excluding expenditures funded with bonds issued under section 123B.59
or 123B.62, or chapter 475; certificates of indebtedness or capital notes under section
123B.61; levies under section 123B.58, 123B.59, 123B.63, or 126C.40, subdivision 1 or
6; and other federal, state, or local revenues, minus

(2) the sum of (a) the district's total hazardous substance aid and levy for fiscal years
1985 through 1989 under sections 124.245 and 275.125, subdivision 11c, plus (b) the
district's health and safety revenue under this subdivision, for years before the fiscal year
to which the levy is attributable.

Subd. 4.

Health and safety levy.

To receive health and safety revenue, a district
may levy an amount equal to the district's health and safety revenue as defined in
subdivision 3 multiplied by the lesser of one, or the ratio of the quotient derived by
dividing the adjusted net tax capacity of the district for the year preceding the year the
levy is certified by the adjusted marginal cost pupil units in the district for the school year
to which the levy is attributable, to $2,935.

Subd. 5.

Health and safety aid.

A district's health and safety aid is the difference
between its health and safety revenue and its health and safety levy. If a district does not
levy the entire amount permitted, health and safety aid must be reduced in proportion to
the actual amount levied. Health and safety aid may not be reduced as a result of reducing
a district's health and safety levy according to section 123B.79.

Subd. 6.

Uses of health and safety revenue.

deleted text begin (a)deleted text end Health and safety revenue may
be used only for approved expenditures necessary to correct fire and life safety hazardsdeleted text begin ,
or for thedeleted text end new text begin ; design, purchase, installation, maintenance, and inspection of fire protection
and alarm equipment; purchase or construction of appropriate facilities for the storage of
combustible and flammable materials; inventories and facility modifications not related
to a remodeling project to comply with lab safety requirements under section 121A.31;
inspection, testing, repair,new text end removal or encapsulationnew text begin , and disposalnew text end of deleted text begin asbestos from school
buildings or property owned or being acquired by the district, asbestos-related repairs,deleted text end new text begin
asbestos-containing building materials;new text end cleanup and disposal of polychlorinated biphenyls
deleted text begin found in school buildings or property owned or being acquired by the district, or thedeleted text end new text begin ;
cleanup and disposal of hazardous and infectious wastes;new text end cleanup, removal, disposal, and
repairs related to storing heating fuel or transportation fuels such as alcohol, gasoline, fuel
oil, and special fuel, as defined in section 296A.01deleted text begin , Minnesotadeleted text end new text begin ; correction ofnew text end occupational
safety and health administration regulated deleted text begin facility and equipmentdeleted text end hazardsdeleted text begin ,deleted text end new text begin ;new text end indoor air
quality new text begin inspections, investigations, and testing; new text end mold abatementdeleted text begin ,deleted text end new text begin ;new text end upgrades or replacement
of mechanical ventilation systems to meet American Society of Heating, Refrigerating
and Air Conditioning Engineers standards and State Mechanical Codedeleted text begin ,deleted text end new text begin ; design, materials,
and installation of local exhaust ventilation systems, including required make up air for
controlling regulated hazardous substances; correction ofnew text end Department of Health Food
Code deleted text begin anddeleted text end new text begin violations; correction ofnew text end swimming pool hazards excluding depth correctiondeleted text begin ,deleted text end new text begin ;
playground safety inspections and the installation of impact surfacing materials; bleacher
repair or rebuilding to comply with the order of a building code inspector under section
326B.112; testing and mitigation of elevated radon hazards; lead in water, paint, soil,
and toys testing; copper in water testing; cleanup after major weather-related disasters
or flooding; reduction of excessive organic and inorganic levels in wells and well
capping of abandoned wells; installation and testing of boiler backflow valves to prevent
contamination of potable water; vaccinations, titers, and preventative supplies for
bloodborne pathogen compliance; costs to comply with the Janet B. Johnson Parents'
Right To Know Act;new text end and health, safety, and environmental managementnew text begin costs associated
with implementing the district's health and safety program including costs to establish
and operate safety committees, in school buildings or property owned or being acquired
by the districtnew text end . Testing and calibration activities are permitted for existing mechanical
ventilation systems at intervals no less than every five years. deleted text begin Health and safety revenue
must not be used to finance a lease purchase agreement, installment purchase agreement,
or other deferred payments agreement. Health and safety revenue must not be used for
the construction of new facilities or the purchase of portable classrooms, for interest or
other financing expenses, or for energy efficiency projects under section 123B.65. The
revenue may not be used for a building or property or part of a building or property used
for postsecondary instruction or administration or for a purpose unrelated to elementary
and secondary education.deleted text end

new text begin Subd. 6a. new text end

new text begin Restrictions on health and safety revenue. new text end

deleted text begin (b)deleted text end Notwithstanding
deleted text begin paragraph (a)deleted text end new text begin subdivision 6new text end , health and safety revenue must not be used new text begin to finance a
lease purchase agreement, installment purchase agreement, or other deferred payments
agreement, for the construction of new facilities, remodeling of existing facilities, or
the purchase of portable classrooms, for interest or other financing expenses, or for
energy efficiency projects under section 123B.65, for a building or property or part of a
building or property used for postsecondary instruction or administration or for a purpose
unrelated to elementary and secondary education, new text end for replacement of building materials
or facilities including roof, walls, windows, internal fixtures and flooring, nonhealth and
safety costs associated with demolition of facilities, structural repair or replacement of
facilities due to unsafe conditions, violence prevention and facility security, ergonomics,
new text begin or for new text end building and heating, ventilating and air conditioning supplies, maintenance, and
cleaning activities. All assessments, investigations, inventories, and support equipment
not leading to the engineering or construction of a project shall be included in the health,
safety, and environmental management costs in subdivision 8, paragraph (a).

new text begin Subd. 6b. new text end

new text begin Health and safety projects. new text end

new text begin (a) Health and safety revenue applications
defined in subdivision 1 must be accompanied by a description of each project for which
funding is being requested. Project descriptions must provide enough detail for an auditor
to determine if the work qualifies for revenue. For projects other than fire and life
safety projects, playground projects, and health, safety, and environmental management
activities, a project description does not need to include itemized details such as material
types, room locations, square feet, names, or license numbers. The commissioner shall
approve only projects that comply with subdivisions 6 and 8, as defined by the Department
of Education.
new text end

new text begin (b) Districts may request funding for allowable projects based on self-assessments,
safety committee recommendations, insurance inspections, management assistance
reports, fire marshal orders, or other mandates. Notwithstanding subdivision 1, paragraph
(b), and subdivision 8, paragraph (b), for projects under $500,000, individual project
size for projects authorized by this subdivision is not limited and may include related
work in multiple facilities. Health and safety management costs from subdivision 8 may
be reported as a single project.
new text end

new text begin (c) All costs directly related to a project shall be reported in the appropriate Uniform
Financial Accounting and Reporting Standards (UFARS) finance code.
new text end

new text begin (d) For fire and life safety egress and all other projects exceeding $20,000, cited
under Minnesota Fire Code, a fire marshal plan review is required.
new text end

new text begin (e) Districts shall update project estimates with actual expenditures for each
fiscal year. If a project's final cost is significantly higher than originally approved, the
commissioner may request additional supporting information.
new text end

new text begin Subd. 6c. new text end

new text begin Appeals process. new text end

new text begin In the event a district is denied funding approval for
a project the district believes complies with subdivisions 6 and 8, and is not otherwise
excluded, a district may appeal the decision. All such requests must be in writing. The
commissioner shall respond in writing. A written request must contain the following:
project number; description and amount; reason for denial; unresolved questions for
consideration; reasons for reconsideration; and a specific statement of what action the
district is requesting.
new text end

Subd. 7.

Proration.

In the event that the health and safety aid available for any year
is prorated, a district having its aid prorated may levy an additional amount equal to the
amount not paid by the state due to proration.

Subd. 8.

Health, safety, and environmental management cost.

(a) new text begin "Health, safety,
and environmental management" is defined in section 123B.56.
new text end

new text begin (b) new text end A district's cost for health, safety, and environmental management is limited to
the lesser of:

(1) actual cost to implement their plan; or

(2) an amount determined by the commissioner, based on enrollment, building
age, and size.

deleted text begin (b)deleted text end new text begin (c)new text end The department may contract with regional service organizations, private
contractors, Minnesota Safety Council, or state agencies to provide management
assistance to school districts for health and safety capital projects. Management assistance
is the development of written programs for the identification, recognition and control of
hazards, and prioritization and scheduling of district health and safety capital projects.
The deleted text begin departmentdeleted text end new text begin commissionernew text end shall not new text begin mandate management assistance or new text end exclude
private contractors from the opportunity to provide any health and safety services to
school districts.

deleted text begin (c) Notwithstanding paragraph (b), the department may approve revenue, up to
the limit defined in paragraph (a) for districts having an approved health, safety, and
environmental management plan that uses district staff to accomplish coordination and
provided services.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010.
new text end

Sec. 2.

Minnesota Statutes 2008, section 126C.40, subdivision 1, is amended to read:

Subdivision 1.

To lease building or land.

(a) When an independent or a special
school district or a group of independent or special school districts finds it economically
advantageous to rent or lease a building or land for any instructional purposes or for
school storage or furniture repair, and it determines that the operating capital revenue
authorized under section 126C.10, subdivision 13, is insufficient for this purpose, it may
apply to the commissioner for permission to make an additional capital expenditure levy
for this purpose. An application for permission to levy under this subdivision must contain
financial justification for the proposed levy, the terms and conditions of the proposed
lease, and a description of the space to be leased and its proposed use.

(b) The criteria for approval of applications to levy under this subdivision must
include: the reasonableness of the price, the appropriateness of the space to the proposed
activity, the feasibility of transporting pupils to the leased building or land, conformity
of the lease to the laws and rules of the state of Minnesota, and the appropriateness of
the proposed lease to the space needs and the financial condition of the district. The
commissioner must not authorize a levy under this subdivision in an amount greater than
the cost to the district of renting or leasing a building or land for approved purposes.
The proceeds of this levy must not be used for custodial or other maintenance services.
A district may not levy under this subdivision for the purpose of leasing or renting a
district-owned building or site to itself.

(c) For agreements finalized after July 1, 1997, a district may not levy under this
subdivision for the purpose of leasing: (1) a newly constructed building used primarily
for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed
building addition or additions used primarily for regular kindergarten, elementary, or
secondary instruction that contains more than 20 percent of the square footage of the
previously existing building.

(d) Notwithstanding paragraph (b), a district may levy under this subdivision for the
purpose of leasing or renting a district-owned building or site to itself only if the amount
is needed by the district to make payments required by a lease purchase agreement,
installment purchase agreement, or other deferred payments agreement authorized by law,
and the levy meets the requirements of paragraph (c). A levy authorized for a district by
the commissioner under this paragraph may be in the amount needed by the district to
make payments required by a lease purchase agreement, installment purchase agreement,
or other deferred payments agreement authorized by law, provided that any agreement
include a provision giving the school districts the right to terminate the agreement
annually without penalty.

(e) The total levy under this subdivision for a district for any year must not exceed
$150 times the resident pupil units for the fiscal year to which the levy is attributable.

(f) For agreements for which a review and comment have been submitted to the
Department of Education after April 1, 1998, the term "instructional purpose" as used in
this subdivision excludes expenditures on stadiums.

(g) The commissioner of education may authorize a school district to exceed the
limit in paragraph (e) if the school district petitions the commissioner for approval. The
commissioner shall grant approval to a school district to exceed the limit in paragraph (e)
for not more than five years if the district meets the following criteria:

(1) the school district has been experiencing pupil enrollment growth in the
preceding five years;

(2) the purpose of the increased levy is in the long-term public interest;

(3) the purpose of the increased levy promotes colocation of government services;
and

(4) the purpose of the increased levy is in the long-term interest of the district by
avoiding over construction of school facilities.

(h) A school district that is a member of an intermediate school district may include
in its authority under this section the costs associated with leases of administrative and
classroom space for intermediate school district programs. This authority must not exceed
$43 times the adjusted marginal cost pupil units of the member districts. This authority is
in addition to any other authority authorized under this section.

(i) In addition to the allowable capital levies in paragraph (a), new text begin for taxes payable in
2011 to 2021, new text end a district that is a member of the "Technology and Information Education
Systems" data processing joint board, that finds it economically advantageous to enter
into a lease deleted text begin purchasedeleted text end agreement deleted text begin fordeleted text end new text begin to finance improvements tonew text end a building for a group of
school districts or special school districts for staff development purposes, may levy for
its portion of lease costs attributed to the district within the total levy limit in paragraph
(e).new text begin The total levy authority under this paragraph shall not exceed $632,000 each year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2011 and later.
new text end

Sec. 3.

Laws 1999, chapter 241, article 4, section 25, is amended to read:

Sec. 25. ALTERNATIVE FACILITIES REVENUE PROGRAM.

Subdivision 1.

[INDEPENDENT SCHOOL DISTRICT NO. 622, NORTH ST.
PAUL-MAPLEWOOD-OAKDALE.]

Independent school district No. 622, North St.
Paul-Maplewood-Oakdale, is eligible for the alternative facilities revenue program under
Minnesota Statutes, section 123B.59, for the purposes of financing school facilities
in the district.

Subd. 2.

Stillwater.

Independent school district No. 834, Stillwater, is eligible for
the alternative facilities revenue program under Minnesota Statutes, section 123B.59, for
the purposes of financing school facilities in the district.

new text begin Subd. 3. new text end

new text begin Independent School District No. 284, Wayzata. new text end

new text begin Independent School
District No. 284, Wayzata, is eligible for the alternative facilities revenue program under
Minnesota Statutes, section 123B.59, for the purposes of financing school facilities
in the district.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2013
and later.
new text end

Sec. 4. new text begin HEALTH AND SAFETY POLICY.
new text end

new text begin Notwithstanding Minnesota Statutes, section 123B.57, subdivision 2, a school board
that has not yet adopted a health and safety policy by September 30, 2010, may submit an
application for health and safety revenue for taxes payable in 2011 in the form and manner
specified by the commissioner of education.
new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 5

ACCOUNTING

Section 1.

Minnesota Statutes 2009 Supplement, section 16A.152, subdivision 2, as
amended by Laws 2010, chapter 215, article 11, section 15, is amended to read:

Subd. 2.

Additional revenues; priority.

(a) If on the basis of a forecast of general
fund revenues and expenditures, the commissioner of management and budget determines
that there will be a positive unrestricted budgetary general fund balance at the close of
the biennium, the commissioner of management and budget must allocate money to the
following accounts and purposes in priority order:

(1) the cash flow account established in subdivision 1 until that account reaches
$350,000,000;

(2) the budget reserve account established in subdivision 1a until that account
reaches $653,000,000;

(3) the amount necessary to increase the aid payment schedule for school district
aids and credits payments in section 127A.45 to not more than 90 percent rounded to the
nearest tenth of a percent without exceeding the amount available and with any remaining
funds deposited in the budget reserve;

(4) the amount necessary to restore all or a portion of the net aid reductions under
section 127A.441 and to reduce the property tax revenue recognition shift under section
123B.75, subdivision 5, deleted text begin paragraph (b), and Laws 2003, First Special Session chapter 9,
article 5, section 34, as amended by Laws 2003, First Special Session chapter 23, section
20,deleted text end by the same amount;

(5) to the state airports fund, the amount necessary to restore the amount transferred
from the state airports fund under Laws 2008, chapter 363, article 11, section 3,
subdivision 5; and

(6) to the fire safety account in the special revenue fund, the amount necessary to
restore transfers from the account to the general fund made in Laws 2010.

(b) The amounts necessary to meet the requirements of this section are appropriated
from the general fund within two weeks after the forecast is released or, in the case of
transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations
schedules otherwise established in statute.

(c) The commissioner of management and budget shall certify the total dollar
amount of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of
education. The commissioner of education shall increase the aid payment percentage and
reduce the property tax shift percentage by these amounts and apply those reductions to
the current fiscal year and thereafter.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2008, section 123B.12, is amended to read:

123B.12 INSUFFICIENT FUNDS TO PAY ORDERS.

(a) In the event that a district or a cooperative unit defined in section 123A.24,
subdivision 2, has insufficient funds to pay its usual lawful current obligations, subject to
section 471.69, the board may enter into agreements with banks or any person to take its
orders. Any order drawn, after having been presented to the treasurer for payment and not
paid for want of funds shall be endorsed by the treasurer by putting on the back thereof
the words "not paid for want of funds," giving the date of endorsement and signed by the
treasurer. A record of such presentment, nonpayment and endorsement shall be made by
the treasurer. The treasurer shall serve a written notice upon the payee or the payee's
assignee, personally, or by mail, when the treasurer is prepared to pay such orders. The
notice may be directed to the payee or the payee's assignee at the address given in writing
by such payee or assignee to such treasurer, at any time prior to the service of such notice.
No order shall draw any interest if such address is not given when the same is unknown to
the treasurer, and no order shall draw any interest after the service of such notice.

(b) A district may enter, subject to section 471.69, into deleted text begin adeleted text end new text begin an unsecurednew text end line of credit
agreement with a financial institution. The amount of credit available must not exceed deleted text begin 95deleted text end new text begin
380new text end percent of average expenditure per month of operating expenditures in the previous
fiscal year. Any amount advanced must be repaid no later than deleted text begin 45deleted text end new text begin 120new text end days after the
day of advancement.

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 2008, section 127A.42, subdivision 2, is amended to read:

Subd. 2.

Violations of law.

The commissioner may reduce or withhold the district's
state aid for any school year whenever the board of the district authorizes or permits
violations of law within the district by:

(1) employing a teacher who does not hold a valid teaching license or permit in a
public school;

(2) noncompliance with a mandatory rule of general application promulgated by the
commissioner in accordance with statute, unless special circumstances make enforcement
inequitable, impose an extraordinary hardship on the district, or the rule is contrary to
the district's best interests;

(3) the district's continued performance of a contract made for the rental of rooms
or buildings for school purposes or for the rental of any facility owned or operated by or
under the direction of any private organization, if the contract has been disapproved, the
time for review of the determination of disapproval has expired, and no proceeding for
review is pending;

(4) any practice which is a violation of sections 1 and 2 of article 13 of the
Constitution of the state of Minnesota;

(5) failure to reasonably provide for a resident pupil's school attendance under
Minnesota Statutes;

(6) noncompliance with state laws prohibiting discrimination because of race,
color, creed, religion, national origin, sex, age, marital status, status with regard to
public assistance or disability, as defined in sections 363A.08 to 363A.19 and 363A.28,
subdivision 10; or

(7) using funds contrary to the statutory purpose of the funds.

The reduction or withholding must be made in the amount and upon the procedure
provided in this sectionnew text begin , or, in the case of the violation stated in clause (1), upon the
procedure provided in section 127A.43new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010.
new text end

Sec. 4.

Minnesota Statutes 2008, section 127A.43, is amended to read:

127A.43 DISTRICT EMPLOYMENT OF UNLICENSED TEACHERS; AID
REDUCTION.

When a district employs one or more teachers who do not hold a valid teaching
license, state aid shall be deleted text begin withhelddeleted text end new text begin reducednew text end in the proportion that the number of such
teachers is to the total number of teachers employed by the district, multiplied by 60
percent of the basic revenue, as defined in section 126C.10, subdivision 2, of the district
for the year in which the employment occurred.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010.
new text end

Sec. 5.

Minnesota Statutes 2008, section 127A.45, is amended by adding a subdivision
to read:

new text begin Subd. 17. new text end

new text begin Payment to creditors. new text end

new text begin Except where otherwise specifically authorized,
state education aid payments shall be made only to the school district, charter school, or
other education organization earning state aid revenues as a result of providing education
services.
new text end

Sec. 6. new text begin FUND TRANSFERS.
new text end

new text begin Subdivision 1. new text end

new text begin Aitkin. new text end

new text begin Notwithstanding Minnesota Statutes, sections 123B.79;
123B.80; and 475.61, subdivision 4, on June 30, 2010, Independent School District No.
1, Aitkin, may permanently transfer up to $70,000 from its debt redemption fund to its
undesignated general fund balance without making a levy reduction.
new text end

new text begin Subd. 2. new text end

new text begin Anoka-Hennepin. new text end

new text begin Notwithstanding Minnesota Statutes, sections 123B.79,
123B.80, and 475.61, subdivision 4, on June 30, 2010, Independent School District No.
11, Anoka-Hennepin, may permanently transfer up to $400,000 from its debt redemption
fund to its undesignated general fund balance without making a levy reduction.
new text end

new text begin Subd. 3. new text end

new text begin Elk River. new text end

new text begin Notwithstanding Minnesota Statutes, sections 123B.79,
123B.80, and 475.61, subdivision 4, on June 30, 2010, Independent School District No.
728, Elk River, may permanently transfer up to $500,000 from its debt redemption fund to
its undesignated general fund balance without making a levy reduction.
new text end

new text begin Subd. 4. new text end

new text begin Hayfield. new text end

new text begin Notwithstanding Minnesota Statutes, section 123B.79 or
123B.80, on June 30, 2010, Independent School District No. 203, Hayfield, may
permanently transfer up to $75,000 from its reserved for operating capital account to its
undesignated general fund balance without making a levy reduction.
new text end

new text begin Subd. 5. new text end

new text begin Kenyon-Wanamingo. new text end

new text begin Notwithstanding Minnesota Statutes, sections
123B.79, 123B.80, and 475.61, subdivision 4, on June 30, 2010, Independent School
District No. 2172, Kenyon-Wanamingo, may permanently transfer up to $55,000 from
its debt redemption fund to its undesignated general fund balance without making a levy
reduction.
new text end

new text begin Subd. 6. new text end

new text begin Madelia. new text end

new text begin Notwithstanding Minnesota Statutes, sections 123B.79, 123B.80,
and 475.61, subdivision 4, on June 30, 2010, Independent School District No. 837,
Madelia, may permanently transfer up to $350,000 from its debt redemption fund to its
reserved for operating capital account without making a levy reduction.
new text end

new text begin Subd. 7. new text end

new text begin Rochester. new text end

new text begin Notwithstanding Minnesota Statutes, sections 123B.79,
123B.80, and 475.61, subdivision 4, on June 30, 2010, Independent School District No.
535, Rochester, may permanently transfer up to $400,000 from its debt redemption fund to
its undesignated general fund balance without making a levy reduction.
new text end

new text begin Subd. 8. new text end

new text begin St. Louis Park. new text end

new text begin Notwithstanding Minnesota Statutes, sections 123B.79,
123B.80, and 475.61, subdivision 4, on June 30, 2010, Independent School District
No. 283, St. Louis Park, may permanently transfer up to $225,000 from its reserved
for operating capital account to its undesignated general fund balance without making
a levy reduction. Any funds transferred under this subdivision must be used to pay for
the costs directly associated with closing the Cedar Manor Elementary School, including
moving and storage costs.
new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 6

STATE AGENCIES

Section 1. new text begin DEPARTMENT OF EDUCATION; APPROPRIATIONS.
new text end

new text begin $24,000 in fiscal year 2010 and $23,000 in fiscal year 2011 are transferred from the
department's special revenue fund to the general fund.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 2. new text begin PERPICH CENTER FOR ARTS EDUCATION; APPROPRIATION.
new text end

new text begin $19,000 in fiscal year 2010 and $11,000 in fiscal year 2011 are transferred from the
Perpich Center's special revenue fund to the general fund.
new text end

new text begin EFFECTIVE DATE. new text end

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

HF 2

Bill Text Versions

ARTICLE 1

GENERAL EDUCATION

Section 1.

Subd. 5.

Calculation of income.

Sec. 2.

Subd. 3.

Capital project levy referendum.

new text begin EFFECTIVE DATE. new text end

Sec. 3.

Subd. 20.

Textbooks; materials.

new text begin EFFECTIVE DATE. new text end

Sec. 4.

Subdivision 1.

Definitions.

new text begin EFFECTIVE DATE. new text end

Sec. 5.

Subd. 2.

Retired employee health benefits.

Sec. 6. new text begin NONPUBLIC PUPIL AID.new text end

ARTICLE 2

EDUCATION EXCELLENCE

Section 1.

Subd. 11.

Assessment of performance.

Sec. 2.

120A.24 REPORTING.

Subdivision 1.

Reports to superintendent.

Subd. 2.

Availability of documentation.

Subd. 3.

Exemptions.

Subd. 4.

Reports to the state.

new text begin Subd. 5. new text end

new text begin Obligations. new text end

Sec. 3.

120B.15 GIFTED AND TALENTED STUDENTS PROGRAMS.

Sec. 4.

new text begin [120B.21] MENTAL HEALTH EDUCATION. new text end

Sec. 5.

Subdivision 1.

Statewide testing.

Sec. 6.

new text begin Subd. 1b. new text end

new text begin High school algebra end-of-course assessment. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 7.

Subd. 3.

Reporting.

Sec. 8.

Subd. 4.

Access to tests.

Sec. 9.

Subd. 3.

State growth target; other state measures.

new text begin EFFECTIVE DATE. new text end

Sec. 10.

Subdivision 1.

School performance report cards.

new text begin EFFECTIVE DATE. new text end

Sec. 11.

Subd. 8.

Report.

Sec. 12.

122A.16 HIGHLY QUALIFIED TEACHER DEFINED.

Sec. 13.

Subd. 2.

Teacher and support personnel qualifications.

Sec. 14.

Subd. 2.

Applicants licensed in other states.

Sec. 15.

Subdivision 1.

Providing education materials and tests.

Sec. 16.

Sec. 6. new text begin NONPUBLIC PUPIL AID.
new text end

new text begin [120B.21] MENTAL HEALTH EDUCATION.
new text end

Sec. 26. new text begin IMPLEMENTING DIFFERENTIATED GRADUATION RATE
MEASURES AND EXPLORING ALTERNATIVE ROUTES TO A STANDARD
DIPLOMA FOR AT-RISK AND OFF-TRACK STUDENTS.
new text end

Sec. 27. new text begin RULEMAKING AUTHORITY.
new text end

Sec. 28. new text begin ASSESSMENT ADVISORY COMMITTEE; RECOMMENDATIONS.
new text end

Sec. 29. new text begin PERSISTENTLY LOWEST-ACHIEVING SCHOOL DESIGNATION;
FEDERAL SCHOOL IMPROVEMENT GRANTS.
new text end

Sec. 30. new text begin REPEALER.
new text end

new text begin [125A.031] RESOLVING DISPUTES AMONG DISTRICTS.
new text end