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Minnesota Legislature

Office of the Revisor of Statutes

HF 2431

2nd Engrossment - 86th Legislature (2009 - 2010) Posted on 05/05/2010 01:21pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 01/08/2010
1st Engrossment Posted on 05/04/2010
2nd Engrossment Posted on 05/05/2010
Committee Engrossments
1st Committee Engrossment Posted on 04/30/2010

Current Version - 2nd Engrossment

Line numbers 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 1.25 1.26 1.27 1.28 1.29 1.30 1.31 1.32 1.33 1.34 1.35 1.36 1.37 1.38 1.39 2.1 2.2 2.3
2.4 2.5
2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20
2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29
2.30
2.31 2.32 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27
3.28
3.29 3.30 3.31 3.32 3.33 3.34 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 4.31 4.32 4.33 4.34 4.35
5.1 5.2
5.3 5.4 5.5 5.6 5.7 5.8
5.9
5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21 5.22 5.23 5.24 5.25 5.26 5.27 5.28 5.29 5.30 5.31 5.32 5.33 6.1 6.2
6.3
6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13
6.14 6.15
6.16 6.17 6.18 6.19 6.20 6.21 6.22 6.23
6.24
6.25 6.26 6.27 6.28 6.29 6.30 6.31 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12 7.13 7.14 7.15 7.16 7.17 7.18 7.19 7.20 7.21 7.22 7.23 7.24 7.25 7.26 7.27 7.28 7.29 7.30 7.31 7.32 7.33 7.34 7.35 7.36 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 8.10 8.11 8.12
8.13
8.14 8.15 8.16 8.17 8.18 8.19 8.20 8.21 8.22
8.23
8.24 8.25 8.26 8.27 8.28 8.29 8.30 8.31 8.32 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 9.10
9.11
9.12 9.13 9.14 9.15 9.16 9.17 9.18
9.19
9.20 9.21 9.22 9.23 9.24 9.25 9.26 9.27 9.28 9.29 9.30 9.31 9.32 9.33 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 10.10 10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 10.20
10.21 10.22 10.23 10.24 10.25 10.26 10.27 10.28 10.29 10.30 10.31 10.32 10.33 10.34 10.35 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 11.9 11.10 11.11 11.12 11.13 11.14 11.15 11.16 11.17 11.18 11.19 11.20 11.21 11.22 11.23 11.24 11.25 11.26
11.27
11.28 11.29
11.30 11.31 11.32 11.33 11.34 12.1 12.2
12.3 12.4
12.5 12.6 12.7 12.8 12.9 12.10 12.11 12.12 12.13 12.14 12.15 12.16 12.17 12.18 12.19 12.20 12.21 12.22 12.23 12.24 12.25 12.26 12.27 12.28 12.29 12.30 12.31 12.32 12.33 12.34 13.1 13.2 13.3 13.4 13.5 13.6
13.7 13.8 13.9 13.10 13.11 13.12 13.13 13.14 13.15 13.16 13.17
13.18 13.19 13.20 13.21 13.22 13.23 13.24 13.25 13.26 13.27 13.28 13.29 13.30 13.31 13.32 13.33 13.34 13.35 14.1 14.2 14.3 14.4 14.5 14.6 14.7 14.8 14.9 14.10 14.11 14.12 14.13 14.14 14.15 14.16 14.17 14.18 14.19 14.20 14.21 14.22 14.23 14.24 14.25 14.26 14.27 14.28 14.29 14.30 14.31 14.32 14.33 14.34 14.35 14.36 15.1 15.2 15.3 15.4 15.5
15.6 15.7 15.8 15.9 15.10 15.11 15.12 15.13 15.14 15.15 15.16
15.17 15.18 15.19 15.20 15.21 15.22 15.23 15.24 15.25 15.26 15.27 15.28 15.29 15.30 15.31 15.32 15.33 15.34 16.1 16.2
16.3 16.4 16.5 16.6 16.7 16.8 16.9 16.10 16.11 16.12 16.13 16.14
16.15 16.16 16.17 16.18 16.19 16.20 16.21 16.22 16.23 16.24 16.25 16.26 16.27 16.28 16.29 16.30 16.31 16.32 16.33 16.34 17.1 17.2 17.3 17.4 17.5 17.6 17.7 17.8 17.9 17.10 17.11 17.12 17.13 17.14 17.15 17.16 17.17 17.18 17.19 17.20 17.21 17.22 17.23 17.24 17.25 17.26 17.27 17.28 17.29 17.30 17.31 17.32 17.33 17.34 18.1 18.2 18.3 18.4 18.5 18.6 18.7 18.8 18.9 18.10 18.11 18.12 18.13 18.14 18.15 18.16 18.17 18.18 18.19 18.20 18.21 18.22 18.23 18.24 18.25 18.26 18.27 18.28 18.29 18.30 18.31 18.32 18.33 18.34 18.35 18.36 19.1 19.2 19.3 19.4 19.5 19.6 19.7 19.8 19.9 19.10 19.11 19.12 19.13 19.14 19.15 19.16 19.17 19.18 19.19 19.20
19.21 19.22 19.23 19.24 19.25
19.26 19.27 19.28 19.29 19.30 19.31 19.32 19.33 20.1 20.2 20.3 20.4 20.5 20.6 20.7 20.8 20.9 20.10 20.11 20.12 20.13 20.14 20.15 20.16 20.17 20.18 20.19 20.20 20.21 20.22 20.23 20.24 20.25 20.26 20.27 20.28 20.29 20.30 20.31 20.32 20.33 20.34 20.35 21.1 21.2 21.3 21.4 21.5 21.6 21.7 21.8 21.9 21.10 21.11 21.12 21.13 21.14 21.15 21.16 21.17 21.18 21.19 21.20 21.21 21.22 21.23 21.24 21.25 21.26 21.27 21.28 21.29 21.30 21.31 21.32 21.33 21.34 21.35 22.1 22.2 22.3 22.4 22.5 22.6 22.7 22.8 22.9 22.10
22.11 22.12 22.13 22.14
22.15 22.16 22.17 22.18 22.19 22.20 22.21 22.22 22.23 22.24 22.25 22.26 22.27 22.28 22.29 22.30 22.31 22.32 22.33 22.34 22.35 23.1 23.2 23.3 23.4 23.5 23.6 23.7 23.8 23.9 23.10 23.11 23.12 23.13 23.14 23.15 23.16 23.17 23.18 23.19 23.20 23.21 23.22 23.23 23.24 23.25 23.26 23.27 23.28 23.29 23.30 23.31 23.32 23.33 23.34 23.35 23.36 24.1 24.2 24.3 24.4 24.5 24.6 24.7 24.8 24.9 24.10 24.11 24.12 24.13 24.14 24.15 24.16 24.17 24.18 24.19 24.20 24.21 24.22 24.23 24.24 24.25 24.26 24.27 24.28 24.29 24.30 24.31 24.32 24.33 24.34 24.35 25.1 25.2 25.3 25.4 25.5
25.6
25.7 25.8 25.9 25.10 25.11 25.12 25.13 25.14 25.15 25.16 25.17 25.18
25.19 25.20 25.21 25.22 25.23 25.24 25.25 25.26 25.27
25.28 25.29 25.30 25.31 25.32 26.1 26.2 26.3 26.4 26.5 26.6 26.7 26.8 26.9 26.10 26.11 26.12 26.13 26.14 26.15 26.16 26.17 26.18 26.19 26.20 26.21 26.22 26.23 26.24 26.25 26.26 26.27 26.28 26.29 26.30 26.31 26.32 26.33 26.34 26.35 27.1 27.2 27.3 27.4 27.5 27.6 27.7 27.8 27.9 27.10 27.11 27.12 27.13 27.14 27.15 27.16 27.17 27.18 27.19 27.20 27.21 27.22 27.23 27.24 27.25 27.26 27.27 27.28 27.29 27.30 27.31 27.32 27.33 27.34 27.35 28.1 28.2 28.3 28.4 28.5 28.6
28.7 28.8 28.9 28.10 28.11
28.12 28.13 28.14 28.15 28.16 28.17 28.18 28.19 28.20 28.21 28.22 28.23 28.24 28.25 28.26 28.27 28.28 28.29 28.30 28.31 28.32 28.33 28.34 28.35 29.1 29.2 29.3 29.4
29.5 29.6
29.7 29.8 29.9 29.10
29.11
29.12 29.13 29.14 29.15 29.16 29.17 29.18 29.19 29.20 29.21 29.22 29.23 29.24 29.25 29.26 29.27 29.28 29.29 29.30 29.31 29.32 29.33 30.1 30.2 30.3 30.4 30.5 30.6 30.7 30.8 30.9 30.10 30.11 30.12 30.13 30.14 30.15 30.16 30.17 30.18 30.19 30.20 30.21 30.22 30.23 30.24 30.25 30.26 30.27 30.28 30.29 30.30 30.31 30.32 30.33 30.34 30.35 31.1 31.2 31.3 31.4 31.5 31.6 31.7 31.8 31.9 31.10 31.11 31.12 31.13 31.14 31.15 31.16 31.17 31.18 31.19
31.20 31.21 31.22 31.23 31.24 31.25 31.26 31.27 31.28
31.29 31.30 31.31 31.32 31.33 31.34 32.1 32.2 32.3 32.4 32.5 32.6 32.7 32.8 32.9 32.10 32.11 32.12 32.13 32.14 32.15 32.16 32.17 32.18 32.19 32.20 32.21 32.22 32.23 32.24 32.25 32.26 32.27 32.28 32.29
32.30 32.31 32.32 32.33 32.34 32.35 33.1 33.2 33.3 33.4 33.5 33.6 33.7 33.8 33.9 33.10 33.11 33.12 33.13 33.14 33.15 33.16 33.17 33.18
33.19 33.20 33.21 33.22 33.23 33.24 33.25 33.26 33.27 33.28 33.29 33.30 33.31 33.32 33.33 33.34 33.35 34.1 34.2 34.3 34.4 34.5 34.6 34.7 34.8 34.9 34.10 34.11 34.12 34.13 34.14 34.15 34.16 34.17 34.18 34.19 34.20 34.21 34.22 34.23 34.24 34.25 34.26 34.27 34.28 34.29 34.30 34.31 34.32 34.33 34.34 34.35 35.1 35.2 35.3 35.4 35.5 35.6
35.7 35.8 35.9 35.10 35.11 35.12 35.13 35.14 35.15 35.16 35.17 35.18 35.19 35.20 35.21 35.22 35.23 35.24 35.25 35.26 35.27 35.28 35.29 35.30 35.31 35.32 35.33 35.34 35.35 36.1 36.2 36.3 36.4 36.5 36.6 36.7 36.8 36.9 36.10 36.11 36.12 36.13 36.14 36.15 36.16
36.17 36.18 36.19 36.20 36.21 36.22 36.23 36.24 36.25 36.26 36.27 36.28 36.29 36.30 36.31 36.32 36.33 36.34 36.35 37.1 37.2 37.3 37.4 37.5 37.6 37.7 37.8 37.9 37.10 37.11 37.12 37.13 37.14 37.15 37.16 37.17 37.18 37.19 37.20 37.21 37.22 37.23 37.24 37.25 37.26 37.27 37.28 37.29 37.30 37.31 37.32 37.33 37.34 37.35 37.36 38.1 38.2 38.3 38.4 38.5 38.6 38.7 38.8 38.9 38.10 38.11 38.12 38.13
38.14 38.15
38.16 38.17 38.18 38.19 38.20 38.21 38.22 38.23 38.24 38.25 38.26 38.27 38.28 38.29 38.30 38.31 38.32 38.33 38.34 38.35 39.1 39.2 39.3 39.4 39.5 39.6 39.7 39.8 39.9 39.10 39.11 39.12 39.13 39.14 39.15 39.16 39.17 39.18 39.19 39.20 39.21 39.22 39.23 39.24 39.25 39.26 39.27 39.28 39.29 39.30 39.31 39.32 39.33 39.34 39.35 40.1 40.2 40.3 40.4 40.5 40.6 40.7 40.8 40.9 40.10 40.11 40.12 40.13 40.14 40.15 40.16 40.17 40.18 40.19 40.20 40.21 40.22 40.23 40.24 40.25 40.26 40.27 40.28 40.29
40.30 40.31 40.32 40.33 40.34 40.35 41.1 41.2 41.3 41.4 41.5 41.6 41.7 41.8 41.9 41.10 41.11 41.12 41.13 41.14 41.15 41.16 41.17 41.18 41.19 41.20 41.21 41.22 41.23 41.24 41.25 41.26 41.27 41.28 41.29
41.30 41.31 41.32
41.33 41.34 42.1 42.2 42.3 42.4 42.5 42.6 42.7 42.8 42.9 42.10 42.11 42.12 42.13 42.14 42.15 42.16 42.17 42.18 42.19 42.20 42.21 42.22 42.23 42.24 42.25 42.26 42.27 42.28 42.29 42.30 42.31 42.32
42.33 42.34 42.35
43.1 43.2 43.3 43.4 43.5 43.6 43.7 43.8 43.9 43.10 43.11 43.12 43.13 43.14 43.15 43.16 43.17 43.18 43.19 43.20 43.21 43.22 43.23 43.24 43.25 43.26 43.27 43.28 43.29 43.30 43.31 43.32 43.33 43.34 43.35 43.36 44.1 44.2 44.3 44.4 44.5 44.6 44.7 44.8 44.9 44.10 44.11 44.12 44.13 44.14 44.15 44.16 44.17 44.18 44.19 44.20 44.21 44.22 44.23 44.24 44.25 44.26 44.27 44.28 44.29 44.30 44.31
44.32 44.33 44.34 44.35 45.1 45.2 45.3 45.4 45.5 45.6 45.7 45.8 45.9 45.10 45.11 45.12 45.13 45.14 45.15 45.16 45.17 45.18 45.19 45.20 45.21 45.22 45.23 45.24 45.25 45.26 45.27 45.28 45.29 45.30 45.31 45.32 45.33 45.34
46.1 46.2 46.3
46.4 46.5 46.6 46.7 46.8 46.9 46.10 46.11 46.12 46.13 46.14 46.15 46.16 46.17 46.18 46.19 46.20 46.21 46.22 46.23 46.24 46.25 46.26 46.27 46.28
46.29 46.30 46.31
46.32 46.33 47.1 47.2 47.3 47.4 47.5 47.6 47.7 47.8 47.9 47.10 47.11 47.12 47.13 47.14 47.15 47.16 47.17 47.18 47.19 47.20 47.21 47.22 47.23 47.24 47.25 47.26 47.27 47.28 47.29 47.30 47.31 47.32 47.33 47.34 47.35 48.1 48.2 48.3 48.4 48.5 48.6 48.7 48.8 48.9 48.10 48.11 48.12 48.13 48.14 48.15 48.16 48.17 48.18 48.19 48.20 48.21 48.22 48.23 48.24 48.25 48.26 48.27 48.28 48.29 48.30 48.31 48.32 48.33 48.34 48.35 48.36 49.1 49.2 49.3 49.4 49.5 49.6 49.7 49.8 49.9 49.10 49.11 49.12 49.13 49.14 49.15 49.16 49.17 49.18 49.19 49.20 49.21 49.22 49.23 49.24 49.25 49.26 49.27 49.28 49.29 49.30 49.31 49.32 49.33 49.34 49.35 49.36 50.1 50.2 50.3 50.4 50.5 50.6 50.7 50.8 50.9 50.10 50.11 50.12 50.13 50.14
50.15 50.16 50.17 50.18 50.19 50.20 50.21 50.22 50.23 50.24 50.25 50.26 50.27 50.28 50.29 50.30 50.31 50.32 50.33 50.34 50.35 51.1 51.2 51.3 51.4 51.5 51.6 51.7 51.8 51.9 51.10 51.11 51.12 51.13 51.14 51.15 51.16 51.17 51.18 51.19 51.20 51.21 51.22 51.23 51.24 51.25 51.26 51.27 51.28 51.29 51.30 51.31 51.32 51.33 51.34 51.35 52.1 52.2 52.3 52.4 52.5 52.6 52.7 52.8 52.9 52.10 52.11 52.12 52.13 52.14 52.15 52.16 52.17 52.18 52.19 52.20 52.21 52.22 52.23 52.24 52.25 52.26 52.27 52.28 52.29 52.30 52.31 52.32 52.33 52.34 52.35 52.36 53.1 53.2 53.3 53.4 53.5 53.6 53.7 53.8 53.9 53.10 53.11 53.12 53.13 53.14 53.15 53.16 53.17 53.18 53.19
53.20 53.21 53.22 53.23 53.24 53.25 53.26 53.27 53.28 53.29 53.30 53.31 53.32 53.33 53.34 53.35 54.1 54.2 54.3 54.4 54.5 54.6 54.7 54.8 54.9 54.10 54.11 54.12 54.13 54.14 54.15 54.16 54.17 54.18 54.19 54.20 54.21 54.22
54.23
54.24 54.25 54.26 54.27 54.28 54.29 54.30 54.31 54.32 54.33 55.1 55.2 55.3 55.4 55.5 55.6
55.7 55.8 55.9 55.10 55.11 55.12 55.13 55.14 55.15 55.16 55.17 55.18 55.19 55.20 55.21 55.22 55.23 55.24 55.25 55.26 55.27 55.28 55.29 55.30 55.31 55.32 55.33 55.34 55.35 56.1 56.2 56.3 56.4
56.5 56.6
56.7 56.8 56.9 56.10 56.11 56.12 56.13 56.14 56.15 56.16 56.17 56.18 56.19 56.20 56.21 56.22 56.23 56.24 56.25 56.26 56.27 56.28 56.29 56.30 56.31 56.32 56.33 56.34 56.35 57.1 57.2 57.3 57.4 57.5 57.6 57.7 57.8 57.9 57.10 57.11 57.12 57.13 57.14 57.15 57.16 57.17 57.18 57.19 57.20 57.21
57.22 57.23 57.24 57.25 57.26 57.27 57.28 57.29 57.30 57.31
57.32
57.33 58.1 58.2 58.3 58.4 58.5 58.6 58.7 58.8 58.9
58.10 58.11 58.12 58.13 58.14 58.15 58.16 58.17 58.18 58.19 58.20 58.21
58.22
58.23 58.24 58.25 58.26 58.27 58.28 58.29 58.30
58.31
59.1 59.2 59.3 59.4 59.5 59.6 59.7 59.8 59.9 59.10 59.11 59.12 59.13 59.14 59.15 59.16 59.17 59.18 59.19 59.20 59.21 59.22 59.23 59.24 59.25 59.26 59.27 59.28 59.29 59.30 59.31 59.32 59.33 59.34 59.35 59.36 60.1 60.2 60.3 60.4 60.5 60.6 60.7 60.8 60.9 60.10 60.11 60.12 60.13 60.14 60.15 60.16 60.17 60.18
60.19 60.20
60.21 60.22 60.23 60.24 60.25 60.26 60.27 60.28 60.29 60.30 60.31 60.32 60.33 60.34 60.35
61.1 61.2 61.3 61.4 61.5 61.6 61.7 61.8 61.9 61.10 61.11 61.12 61.13 61.14
61.15
61.16 61.17 61.18 61.19 61.20 61.21 61.22 61.23 61.24 61.25 61.26 61.27 61.28 61.29 61.30
61.31 61.32
62.1 62.2 62.3 62.4 62.5 62.6 62.7 62.8 62.9 62.10 62.11 62.12 62.13 62.14 62.15 62.16 62.17 62.18 62.19 62.20 62.21 62.22 62.23 62.24 62.25 62.26 62.27 62.28 62.29 62.30 62.31 62.32 62.33 62.34 62.35 62.36 63.1 63.2 63.3 63.4 63.5 63.6 63.7 63.8 63.9 63.10 63.11 63.12 63.13 63.14 63.15 63.16 63.17 63.18 63.19 63.20 63.21 63.22 63.23 63.24 63.25 63.26 63.27 63.28 63.29 63.30 63.31 63.32 63.33 63.34 63.35 63.36 64.1 64.2 64.3
64.4
64.5 64.6 64.7 64.8 64.9 64.10 64.11 64.12 64.13 64.14 64.15 64.16 64.17 64.18 64.19 64.20 64.21 64.22 64.23 64.24 64.25 64.26 64.27 64.28 64.29 64.30 64.31 64.32 64.33 65.1 65.2 65.3 65.4 65.5 65.6 65.7
65.8
65.9 65.10 65.11 65.12 65.13 65.14 65.15 65.16 65.17 65.18 65.19 65.20 65.21 65.22
65.23 65.24
65.25 65.26
65.27
65.28 65.29
65.30 65.31 66.1 66.2 66.3 66.4 66.5 66.6 66.7 66.8 66.9 66.10 66.11 66.12
66.13
66.14 66.15 66.16 66.17 66.18 66.19 66.20 66.21 66.22 66.23 66.24 66.25 66.26 66.27 66.28 66.29 66.30 66.31 66.32 66.33 66.34 67.1 67.2 67.3 67.4 67.5 67.6 67.7 67.8 67.9 67.10 67.11
67.12
67.13 67.14 67.15 67.16 67.17 67.18 67.19 67.20
67.21 67.22 67.23 67.24 67.25 67.26 67.27 67.28 67.29 67.30 67.31 67.32 67.33 67.34
68.1 68.2
68.3 68.4 68.5 68.6 68.7 68.8 68.9 68.10 68.11 68.12 68.13 68.14 68.15 68.16 68.17 68.18 68.19 68.20 68.21 68.22 68.23 68.24 68.25 68.26 68.27 68.28 68.29 68.30 68.31 68.32 68.33 68.34 68.35 69.1 69.2 69.3 69.4 69.5 69.6 69.7 69.8 69.9 69.10 69.11 69.12 69.13 69.14 69.15 69.16 69.17 69.18 69.19 69.20 69.21 69.22 69.23 69.24 69.25
69.26
69.27 69.28 69.29 69.30 69.31 69.32 69.33 69.34 69.35 70.1 70.2
70.3 70.4 70.5 70.6 70.7 70.8 70.9 70.10 70.11 70.12 70.13 70.14 70.15
70.16 70.17 70.18 70.19 70.20 70.21 70.22 70.23 70.24 70.25
70.26 70.27 70.28 70.29 70.30 70.31
70.32 70.33
71.1 71.2 71.3 71.4 71.5 71.6 71.7 71.8 71.9 71.10
71.11 71.12 71.13 71.14 71.15 71.16 71.17 71.18 71.19 71.20 71.21 71.22 71.23 71.24 71.25 71.26 71.27 71.28 71.29 71.30 71.31 71.32 71.33
72.1 72.2 72.3 72.4 72.5 72.6 72.7 72.8 72.9 72.10 72.11 72.12 72.13 72.14 72.15 72.16 72.17 72.18 72.19 72.20 72.21 72.22 72.23 72.24 72.25 72.26 72.27 72.28 72.29 72.30 72.31 72.32 72.33 72.34 72.35
72.36
73.1 73.2 73.3 73.4 73.5 73.6 73.7 73.8 73.9 73.10 73.11 73.12 73.13 73.14 73.15 73.16 73.17 73.18 73.19 73.20 73.21 73.22 73.23 73.24 73.25 73.26 73.27 73.28 73.29 73.30 73.31 73.32 73.33 73.34 73.35 73.36
74.1 74.2
74.3 74.4 74.5 74.6 74.7 74.8 74.9 74.10 74.11 74.12 74.13 74.14 74.15 74.16 74.17 74.18 74.19 74.20 74.21 74.22 74.23 74.24 74.25 74.26 74.27 74.28 74.29 74.30 74.31 74.32 74.33 74.34 74.35 75.1 75.2 75.3 75.4 75.5 75.6 75.7 75.8 75.9 75.10 75.11 75.12 75.13 75.14 75.15 75.16 75.17 75.18 75.19 75.20 75.21 75.22 75.23 75.24 75.25 75.26 75.27 75.28 75.29 75.30 75.31 75.32
75.33 75.34 75.35 76.1 76.2 76.3 76.4 76.5 76.6 76.7 76.8 76.9 76.10 76.11 76.12 76.13 76.14 76.15 76.16 76.17 76.18 76.19 76.20 76.21 76.22 76.23 76.24 76.25 76.26 76.27 76.28 76.29 76.30 76.31 76.32 76.33 76.34 76.35 76.36 77.1 77.2 77.3 77.4 77.5 77.6 77.7 77.8 77.9
77.10 77.11
77.12 77.13 77.14 77.15 77.16 77.17 77.18 77.19 77.20
77.21
77.22 77.23 77.24 77.25 77.26 77.27 77.28 77.29 77.30 77.31 77.32
78.1 78.2 78.3 78.4 78.5 78.6
78.7 78.8
78.9 78.10
78.11 78.12 78.13 78.14 78.15 78.16 78.17 78.18 78.19 78.20 78.21 78.22 78.23 78.24 78.25 78.26 78.27 78.28 78.29 78.30 78.31 78.32 78.33 79.1 79.2 79.3 79.4 79.5 79.6 79.7 79.8 79.9 79.10 79.11 79.12 79.13 79.14 79.15 79.16 79.17 79.18 79.19 79.20 79.21 79.22 79.23 79.24 79.25 79.26 79.27 79.28 79.29 79.30 79.31 79.32 79.33 79.34 79.35 80.1 80.2 80.3 80.4 80.5 80.6 80.7 80.8 80.9 80.10 80.11 80.12 80.13 80.14 80.15 80.16 80.17 80.18 80.19 80.20 80.21 80.22 80.23 80.24 80.25 80.26 80.27 80.28 80.29 80.30 80.31 80.32 80.33 80.34 80.35 80.36 81.1 81.2 81.3 81.4 81.5 81.6 81.7 81.8 81.9 81.10 81.11 81.12 81.13 81.14 81.15 81.16 81.17 81.18 81.19 81.20 81.21 81.22 81.23 81.24 81.25 81.26 81.27 81.28 81.29 81.30 81.31 81.32 81.33 81.34 81.35 81.36 82.1 82.2 82.3 82.4 82.5 82.6 82.7 82.8 82.9 82.10 82.11 82.12 82.13 82.14 82.15 82.16 82.17 82.18 82.19 82.20 82.21 82.22 82.23 82.24 82.25 82.26 82.27 82.28 82.29 82.30 82.31 82.32 82.33 82.34 82.35 82.36 83.1 83.2 83.3 83.4 83.5 83.6 83.7 83.8 83.9 83.10 83.11 83.12 83.13 83.14 83.15 83.16 83.17 83.18 83.19 83.20 83.21 83.22 83.23 83.24 83.25 83.26 83.27 83.28 83.29
83.30
83.31 83.32 83.33 83.34 83.35 84.1 84.2 84.3 84.4 84.5 84.6 84.7 84.8 84.9 84.10 84.11 84.12 84.13 84.14 84.15 84.16 84.17 84.18 84.19 84.20 84.21 84.22 84.23 84.24 84.25 84.26 84.27 84.28 84.29 84.30 84.31 84.32 84.33 84.34 85.1 85.2 85.3 85.4 85.5 85.6 85.7 85.8 85.9 85.10 85.11 85.12 85.13 85.14 85.15 85.16 85.17 85.18 85.19 85.20 85.21 85.22 85.23 85.24 85.25
85.26
85.27 85.28 85.29 85.30 85.31
85.32
86.1 86.2
86.3 86.4 86.5 86.6 86.7 86.8 86.9 86.10 86.11 86.12 86.13 86.14 86.15 86.16 86.17 86.18 86.19 86.20 86.21 86.22 86.23 86.24 86.25 86.26 86.27 86.28 86.29 86.30 86.31 86.32 86.33 86.34 87.1 87.2
87.3
87.4 87.5 87.6 87.7 87.8 87.9 87.10 87.11 87.12 87.13 87.14 87.15 87.16 87.17 87.18 87.19 87.20 87.21 87.22 87.23
87.24
87.25 87.26 87.27 87.28 87.29
87.30 87.31
88.1 88.2 88.3 88.4 88.5 88.6 88.7 88.8 88.9 88.10 88.11 88.12 88.13 88.14 88.15 88.16 88.17 88.18 88.19 88.20 88.21 88.22 88.23 88.24 88.25 88.26 88.27 88.28 88.29 88.30 88.31 88.32 88.33 88.34 88.35 89.1 89.2 89.3 89.4 89.5 89.6 89.7
89.8 89.9 89.10 89.11 89.12 89.13 89.14 89.15 89.16 89.17 89.18 89.19 89.20 89.21 89.22 89.23 89.24 89.25 89.26 89.27 89.28
89.29 89.30 89.31 89.32 89.33 89.34 90.1 90.2 90.3 90.4 90.5 90.6 90.7 90.8 90.9 90.10 90.11 90.12 90.13 90.14 90.15 90.16 90.17 90.18 90.19 90.20 90.21
90.22
90.23 90.24 90.25 90.26 90.27 90.28 90.29 90.30
90.31
91.1 91.2 91.3 91.4 91.5 91.6 91.7 91.8 91.9 91.10 91.11 91.12 91.13 91.14 91.15 91.16
91.17 91.18
91.19 91.20 91.21 91.22 91.23 91.24 91.25 91.26 91.27 91.28 91.29 91.30 91.31 91.32 91.33 91.34 92.1 92.2 92.3 92.4 92.5
92.6 92.7
92.8 92.9 92.10 92.11 92.12 92.13 92.14 92.15 92.16 92.17 92.18 92.19 92.20 92.21 92.22 92.23 92.24 92.25 92.26 92.27 92.28 92.29 92.30 92.31 92.32 92.33 92.34 92.35 92.36 92.37 92.38 93.1 93.2 93.3 93.4 93.5 93.6 93.7 93.8 93.9 93.10 93.11 93.12 93.13 93.14 93.15 93.16 93.17 93.18 93.19 93.20 93.21
93.22 93.23
93.24 93.25 93.26 93.27 93.28 93.29 93.30 93.31 93.32 93.33 93.34 93.35 93.36 93.37 93.38
94.1 94.2
94.3 94.4 94.5 94.6 94.7 94.8 94.9 94.10 94.11 94.12 94.13 94.14 94.15 94.16 94.17 94.18 94.19
94.20 94.21
94.22 94.23 94.24 94.25 94.26 94.27 94.28 94.29 94.30 94.31 94.32 94.33 94.34
95.1 95.2 95.3 95.4 95.5 95.6
95.7 95.8 95.9 95.10 95.11 95.12 95.13 95.14 95.15 95.16 95.17 95.18 95.19
95.20
95.21 95.22
95.23
95.24 95.25
95.26 95.27 95.28 95.29 95.30 95.31 95.32 96.1 96.2 96.3 96.4 96.5 96.6 96.7 96.8 96.9 96.10 96.11 96.12
96.13
96.14 96.15 96.16 96.17 96.18 96.19 96.20 96.21 96.22 96.23 96.24 96.25 96.26 96.27 96.28 96.29 96.30 96.31 96.32 96.33 96.34 96.35 97.1 97.2 97.3 97.4
97.5
97.6 97.7 97.8 97.9 97.10 97.11 97.12 97.13 97.14 97.15 97.16 97.17 97.18 97.19 97.20 97.21 97.22 97.23 97.24
97.25
97.26 97.27 97.28 97.29 97.30 97.31 97.32 97.33 98.1 98.2 98.3
98.4
98.5 98.6 98.7
98.8
98.9 98.10
98.11 98.12 98.13 98.14 98.15 98.16 98.17 98.18
98.19 98.20 98.21 98.22 98.23
98.24
98.25 98.26 98.27 98.28 98.29 98.30 99.1 99.2 99.3 99.4 99.5 99.6 99.7 99.8 99.9 99.10 99.11 99.12 99.13 99.14 99.15 99.16 99.17 99.18 99.19 99.20 99.21 99.22 99.23 99.24 99.25 99.26 99.27 99.28 99.29 99.30 99.31 99.32 99.33 99.34 99.35 99.36 100.1 100.2 100.3 100.4 100.5 100.6 100.7 100.8 100.9 100.10 100.11 100.12 100.13 100.14 100.15 100.16 100.17 100.18 100.19 100.20 100.21 100.22 100.23 100.24 100.25 100.26 100.27 100.28 100.29 100.30 100.31 100.32 100.33 100.34 100.35 100.36 101.1 101.2 101.3 101.4 101.5 101.6 101.7 101.8 101.9 101.10 101.11 101.12 101.13 101.14 101.15 101.16 101.17 101.18 101.19 101.20 101.21 101.22 101.23 101.24 101.25 101.26 101.27 101.28 101.29 101.30 101.31 101.32 101.33 101.34
101.35 101.36
102.1 102.2 102.3 102.4 102.5 102.6 102.7 102.8 102.9 102.10 102.11 102.12 102.13 102.14 102.15 102.16 102.17 102.18 102.19 102.20 102.21 102.22 102.23 102.24 102.25 102.26 102.27 102.28 102.29 102.30 102.31 102.32 102.33 102.34 102.35 102.36 103.1 103.2 103.3 103.4
103.5 103.6
103.7 103.8 103.9 103.10 103.11 103.12 103.13 103.14 103.15 103.16 103.17 103.18 103.19 103.20 103.21 103.22 103.23 103.24 103.25 103.26 103.27 103.28 103.29 103.30 103.31 103.32 103.33 103.34 103.35 104.1 104.2 104.3 104.4 104.5 104.6 104.7 104.8 104.9 104.10 104.11 104.12
104.13
104.14 104.15 104.16 104.17 104.18 104.19
104.20 104.21 104.22 104.23 104.24 104.25 104.26 104.27 104.28 104.29 104.30 104.31 104.32 104.33 104.34 105.1 105.2 105.3 105.4 105.5 105.6 105.7 105.8 105.9 105.10 105.11 105.12 105.13 105.14 105.15 105.16 105.17 105.18 105.19 105.20 105.21 105.22 105.23 105.24 105.25 105.26 105.27 105.28 105.29 105.30 105.31 105.32 105.33 105.34 105.35 106.1 106.2 106.3 106.4 106.5 106.6 106.7 106.8 106.9 106.10 106.11 106.12 106.13 106.14 106.15 106.16 106.17 106.18 106.19 106.20 106.21 106.22 106.23 106.24 106.25 106.26 106.27 106.28 106.29
106.30
106.31 106.32 106.33 106.34 107.1 107.2 107.3 107.4 107.5 107.6 107.7 107.8 107.9 107.10 107.11 107.12 107.13 107.14 107.15 107.16 107.17 107.18 107.19 107.20 107.21 107.22 107.23 107.24
107.25 107.26
107.27 107.28 107.29 107.30 107.31 107.32 107.33 107.34 107.35 108.1 108.2 108.3 108.4 108.5 108.6 108.7
108.8
108.9 108.10 108.11 108.12 108.13 108.14 108.15 108.16 108.17 108.18 108.19 108.20 108.21 108.22 108.23 108.24 108.25 108.26 108.27 108.28
108.29
108.30 108.31 108.32 109.1 109.2 109.3 109.4 109.5 109.6 109.7 109.8 109.9 109.10 109.11 109.12 109.13 109.14 109.15 109.16 109.17 109.18 109.19 109.20 109.21 109.22 109.23 109.24 109.25 109.26 109.27 109.28 109.29 109.30 109.31 109.32 109.33 109.34 109.35 110.1 110.2 110.3 110.4 110.5 110.6 110.7 110.8 110.9 110.10 110.11
110.12 110.13
110.14 110.15 110.16 110.17 110.18 110.19 110.20 110.21 110.22 110.23 110.24 110.25 110.26 110.27 110.28 110.29 110.30 110.31 110.32 110.33 110.34 110.35 111.1 111.2 111.3 111.4 111.5 111.6 111.7
111.8 111.9
111.10 111.11 111.12 111.13 111.14 111.15 111.16 111.17 111.18
111.19 111.20
111.21 111.22 111.23 111.24
111.25 111.26
111.27 111.28 111.29 111.30 111.31
112.1 112.2
112.3 112.4 112.5 112.6 112.7 112.8
112.9
112.10 112.11 112.12 112.13 112.14 112.15
112.16
112.17 112.18 112.19 112.20 112.21 112.22 112.23 112.24 112.25 112.26 112.27 112.28 112.29 112.30
112.31 112.32
113.1 113.2 113.3 113.4 113.5 113.6 113.7 113.8 113.9 113.10 113.11 113.12 113.13 113.14 113.15 113.16 113.17 113.18 113.19 113.20 113.21 113.22 113.23 113.24 113.25 113.26 113.27 113.28
113.29 113.30
113.31 113.32 113.33 113.34 113.35 114.1 114.2 114.3 114.4 114.5 114.6 114.7 114.8 114.9 114.10 114.11 114.12 114.13 114.14 114.15 114.16 114.17 114.18 114.19 114.20 114.21 114.22 114.23
114.24 114.25
114.26 114.27 114.28 114.29 114.30 114.31 114.32 114.33 115.1 115.2 115.3 115.4 115.5 115.6 115.7 115.8
115.9 115.10
115.11 115.12 115.13 115.14 115.15 115.16 115.17 115.18
115.19 115.20
115.21 115.22 115.23 115.24 115.25 115.26 115.27 115.28 115.29 115.30 115.31 115.32 115.33 116.1 116.2 116.3 116.4 116.5 116.6 116.7 116.8 116.9 116.10 116.11 116.12 116.13
116.14 116.15
116.16 116.17 116.18 116.19 116.20 116.21 116.22 116.23 116.24
116.25 116.26
116.27 116.28 116.29 116.30 116.31 116.32 116.33 117.1 117.2 117.3 117.4 117.5 117.6 117.7 117.8 117.9 117.10 117.11 117.12
117.13 117.14
117.15 117.16 117.17 117.18 117.19 117.20 117.21 117.22 117.23 117.24 117.25
117.26 117.27
117.28 117.29 117.30 117.31 117.32 118.1 118.2 118.3 118.4 118.5 118.6 118.7
118.8 118.9
118.10 118.11 118.12 118.13 118.14 118.15 118.16 118.17 118.18 118.19 118.20
118.21 118.22
118.23 118.24 118.25 118.26 118.27 118.28 118.29 118.30
118.31 118.32
119.1 119.2 119.3 119.4 119.5 119.6
119.7 119.8
119.9 119.10 119.11 119.12 119.13 119.14 119.15 119.16
119.17 119.18
119.19 119.20 119.21 119.22
119.23 119.24
119.25 119.26 119.27 119.28 119.29 119.30 119.31 119.32 120.1 120.2 120.3 120.4 120.5 120.6 120.7 120.8
120.9 120.10
120.11 120.12 120.13 120.14 120.15 120.16 120.17
120.18 120.19
120.20 120.21 120.22 120.23 120.24 120.25 120.26 120.27 120.28 120.29 120.30 120.31 120.32 120.33 121.1 121.2 121.3 121.4 121.5 121.6 121.7 121.8 121.9 121.10 121.11 121.12 121.13 121.14 121.15 121.16 121.17 121.18 121.19 121.20 121.21 121.22
121.23 121.24
121.25 121.26 121.27 121.28 121.29 121.30 121.31 121.32 121.33 121.34 121.35 122.1 122.2 122.3
122.4 122.5
122.6 122.7 122.8 122.9 122.10 122.11 122.12 122.13 122.14 122.15 122.16 122.17 122.18 122.19 122.20 122.21 122.22 122.23 122.24 122.25 122.26 122.27 122.28 122.29 122.30 122.31 122.32 122.33 122.34 122.35 123.1 123.2 123.3 123.4 123.5 123.6 123.7 123.8 123.9 123.10 123.11 123.12 123.13 123.14 123.15 123.16 123.17 123.18 123.19 123.20 123.21 123.22 123.23 123.24
123.25
123.26 123.27 123.28 123.29 123.30 123.31 123.32 123.33 123.34 123.35 124.1 124.2 124.3
124.4
124.5 124.6 124.7 124.8 124.9 124.10 124.11 124.12 124.13 124.14 124.15 124.16 124.17 124.18 124.19 124.20 124.21 124.22
124.23 124.24
124.25 124.26 124.27 124.28 124.29 124.30 124.31 124.32 124.33 125.1 125.2 125.3 125.4 125.5 125.6 125.7 125.8 125.9 125.10 125.11 125.12 125.13 125.14 125.15 125.16 125.17 125.18 125.19 125.20 125.21 125.22
125.23 125.24
125.25 125.26 125.27 125.28 125.29 125.30 125.31 125.32 125.33 125.34 125.35 126.1
126.2 126.3
126.4 126.5 126.6 126.7 126.8 126.9 126.10 126.11 126.12 126.13 126.14 126.15 126.16
126.17 126.18
126.19 126.20 126.21 126.22 126.23 126.24 126.25 126.26 126.27 126.28 126.29 126.30 126.31 126.32 127.1 127.2 127.3 127.4 127.5 127.6 127.7 127.8 127.9 127.10
127.11 127.12
127.13 127.14 127.15 127.16 127.17 127.18 127.19 127.20 127.21 127.22 127.23 127.24 127.25 127.26 127.27 127.28 127.29 127.30 127.31 127.32 127.33 127.34 128.1 128.2 128.3 128.4 128.5 128.6 128.7
128.8
128.9 128.10 128.11 128.12 128.13 128.14 128.15 128.16 128.17 128.18 128.19 128.20
128.21
128.22 128.23 128.24 128.25 128.26 128.27 128.28
128.29 128.30
128.31 129.1 129.2 129.3 129.4 129.5 129.6 129.7 129.8 129.9 129.10 129.11 129.12 129.13 129.14 129.15 129.16 129.17 129.18 129.19 129.20 129.21 129.22 129.23 129.24 129.25 129.26 129.27 129.28 129.29 129.30 129.31 129.32 129.33 129.34 129.35 129.36 130.1 130.2 130.3 130.4 130.5 130.6 130.7 130.8 130.9 130.10 130.11 130.12 130.13 130.14 130.15 130.16 130.17 130.18 130.19 130.20 130.21 130.22 130.23 130.24 130.25 130.26 130.27
130.28 130.29
130.30 130.31 130.32 130.33 130.34 131.1 131.2 131.3 131.4 131.5 131.6 131.7 131.8 131.9 131.10 131.11 131.12 131.13 131.14 131.15 131.16 131.17 131.18
131.19
131.20 131.21 131.22 131.23 131.24 131.25 131.26 131.27 131.28 131.29 131.30 131.31 131.32 131.33 131.34 132.1 132.2 132.3 132.4 132.5 132.6
132.7
132.8 132.9 132.10 132.11
132.12
132.13 132.14 132.15 132.16 132.17 132.18 132.19
132.20
132.21 132.22
132.23 132.24 132.25 132.26 132.27 132.28 132.29 132.30 132.31
133.1
133.2 133.3 133.4 133.5 133.6 133.7 133.8 133.9 133.10 133.11 133.12
133.13
133.14 133.15 133.16 133.17 133.18 133.19 133.20
133.21 133.22 133.23
133.24 133.25 133.26 133.27 133.28 133.29 133.30 133.31 133.32 133.33
134.1 134.2 134.3 134.4 134.5 134.6 134.7 134.8 134.9 134.10 134.11 134.12 134.13 134.14 134.15 134.16
134.17 134.18 134.19 134.20 134.21 134.22 134.23 134.24 134.25 134.26 134.27 134.28 134.29 134.30 134.31 134.32 134.33 134.34 134.35 135.1 135.2 135.3 135.4 135.5 135.6 135.7 135.8 135.9 135.10 135.11 135.12 135.13 135.14 135.15 135.16 135.17 135.18 135.19 135.20 135.21 135.22 135.23 135.24 135.25 135.26 135.27 135.28 135.29 135.30
135.31 135.32 135.33 135.34 135.35 136.1 136.2 136.3 136.4
136.5 136.6 136.7 136.8 136.9 136.10 136.11 136.12 136.13 136.14 136.15 136.16 136.17 136.18 136.19 136.20 136.21 136.22 136.23 136.24 136.25 136.26 136.27 136.28 136.29 136.30 136.31 136.32 136.33 137.1 137.2 137.3 137.4 137.5 137.6 137.7 137.8 137.9 137.10 137.11 137.12 137.13 137.14 137.15 137.16 137.17 137.18 137.19 137.20 137.21 137.22 137.23 137.24 137.25 137.26 137.27 137.28 137.29 137.30 137.31 137.32 137.33 137.34 137.35 137.36 138.1 138.2 138.3 138.4 138.5 138.6 138.7 138.8 138.9 138.10 138.11 138.12 138.13 138.14 138.15 138.16 138.17 138.18 138.19 138.20 138.21 138.22 138.23 138.24 138.25 138.26 138.27 138.28 138.29 138.30 138.31 138.32 138.33 138.34 138.35 138.36 139.1 139.2 139.3 139.4 139.5 139.6 139.7 139.8 139.9 139.10 139.11
139.12 139.13 139.14 139.15 139.16 139.17 139.18 139.19 139.20 139.21 139.22 139.23 139.24 139.25 139.26 139.27 139.28 139.29 139.30 139.31 139.32 139.33
139.34 140.1 140.2 140.3 140.4
140.5 140.6 140.7 140.8 140.9 140.10 140.11 140.12 140.13 140.14 140.15 140.16 140.17 140.18 140.19 140.20
140.21 140.22 140.23 140.24 140.25 140.26 140.27 140.28 140.29 140.30 140.31 140.32 140.33 141.1 141.2 141.3 141.4 141.5 141.6 141.7 141.8 141.9 141.10

A bill for an act
relating to education; providing for policy and funding for early childhood
through grade 12 education including general education, education excellence,
special programs, facilities and technology, accounting, state agencies, pupil
transportation, education finance reform, forecast adjustments, early childhood
education, prevention, self-sufficiency, and lifelong learning; authorizing
rulemaking; requiring reports; appropriating money; amending Minnesota
Statutes 2008, sections 3.303, by adding a subdivision; 11A.16, subdivision 5;
16A.125, subdivision 5; 120A.41; 120B.021, subdivision 1; 120B.07; 120B.15;
121A.16; 121A.17, subdivision 5; 122A.16; 122A.18, subdivisions 1, 2;
122A.23, subdivision 2; 123B.12; 123B.147, subdivision 3; 123B.53, subdivision
5; 123B.57, as amended; 123B.63, subdivision 3; 123B.75, subdivision 5,
by adding a subdivision; 123B.88, subdivision 13; 123B.90, subdivision 3;
123B.92, subdivision 5; 124D.09, subdivision 20; 124D.141, subdivisions 1,
2; 124D.15, subdivision 12, by adding a subdivision; 124D.20, subdivision
8; 124D.4531, as amended; 124D.59, subdivision 2; 124D.65, subdivision 5;
125A.03; 125A.21, subdivisions 2, 3, 5, 7; 125A.515, by adding a subdivision;
125A.69, subdivision 1; 125A.76, subdivision 5; 125A.79, subdivisions 1, 7;
126C.01, by adding subdivisions; 126C.05, subdivisions 1, 3, 5, 6, 8, 16, 17;
126C.10, subdivisions 1, 2, 2a, 3, 4, 6, 13, 13a, 14, 18, by adding subdivisions;
126C.126; 126C.13, subdivisions 4, 5; 126C.17, subdivisions 1, 5, 6, by adding a
subdivision; 126C.20; 126C.40, subdivision 1; 126C.54; 127A.30, subdivision 2;
127A.42, subdivision 2; 127A.43; 127A.441; 127A.45, subdivisions 2, 3, 13,
by adding subdivisions; 127A.51; 169.447, subdivision 2a; 169.4503, by adding
a subdivision; 171.321, subdivision 2; Minnesota Statutes 2009 Supplement,
sections 16A.152, subdivision 2, as amended; 120B.023, subdivision 2; 120B.30,
subdivisions 1, 1a, 3, 4, by adding a subdivision; 120B.35, subdivision 3;
120B.36, subdivision 1; 122A.09, subdivision 4; 122A.40, subdivision 8;
122A.41, subdivision 5; 123B.143, subdivision 1; 123B.54; 123B.92, subdivision
1; 124D.10, subdivisions 3, 4, 4a, 6a, 8, 11, 23; 124D.15, subdivision 3; 125A.02,
subdivision 1; 125A.091, subdivision 7; 125A.63, subdivisions 2, 4, 5; 126C.41,
subdivision 2; 126C.44; 171.02, subdivision 2b; 256B.0625, subdivision 26;
Laws 2009, chapter 79, article 5, section 60; Laws 2009, chapter 96, article 2,
sections 64; 67, subdivisions 14, 17; article 4, section 12, subdivision 3; article 5,
section 13, subdivision 4; proposing coding for new law in Minnesota Statutes,
chapters 120B; 121A; 122A; 123A; 123B; 124D; 125A; 126C; repealing
Minnesota Statutes 2008, sections 122A.24; 123B.57, subdivisions 3, 4, 5;
123B.591; 125A.54; 125A.76, subdivision 4; 125A.79, subdivision 6; 126C.10,
subdivisions 2b, 13a, 13b, 25, 26, 27, 28, 29, 30, 31, 31a, 31b, 32, 33, 35, 36;
126C.12; 126C.126; 126C.17, subdivision 9a; 127A.46; 127A.50; Minnesota
Statutes 2009 Supplement, sections 123B.54; 126C.10, subdivisions 24, 34.

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 endnew 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 Education
new 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 120B.07, is amended to read:


120B.07 EARLY GRADUATION.

new text begin (a) new text endNotwithstanding any law to the contrary, any secondary school student who has
completed all required courses or standards may, with the approval of the student, the
student's parent or guardian, and local school officials, graduate before the completion
of the school year.

new text begin (b) new text endGeneral education revenue attributable to the student must be paid as though the
student was in attendance for the entire yearnew text begin unless the student participates in the early
graduation achievement scholarship program under section 120B.08
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. 3.

new text begin [120B.08] EARLY GRADUATION ACHIEVEMENT SCHOLARSHIP
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Participation. new text end

new text begin A student who qualifies for early graduation under
section 120B.07 is eligible to participate in the early graduation achievement scholarship
program.
new text end

new text begin Subd. 2. new text end

new text begin Scholarship amounts. new text end

new text begin A student who participates in the early graduation
achievement scholarship program is eligible for a scholarship of $2,500 if the student
qualifies for graduation one semester early, $5,000 if the student qualifies for graduation
two semesters early, or $7,500 if the student qualifies for graduation three or more
semesters early.
new text end

new text begin Subd. 3. new text end

new text begin Scholarship uses. new text end

new text begin An early graduation achievement scholarship may be
used at any accredited institution of higher education.
new text end

new text begin Subd. 4. new text end

new text begin Application. new text end

new text begin A qualifying student may apply to the commissioner of
education for an early graduation achievement scholarship. The application must be in
the form and manner specified by the commissioner. Upon verification of the qualifying
student's course completion necessary for graduation, the department must issue the
student a certificate showing the student's scholarship amount.
new text end

new text begin Subd. 5. new text end

new text begin Enrollment verification. new text end

new text begin A student who qualifies under this section
and enrolls in an accredited higher education institution must submit a form to the
commissioner verifying the student's enrollment in the higher education institution and the
tuition charges for that semester. Within 15 days of receipt of a student's enrollment and
tuition verification form, the commissioner must issue a scholarship check to the student in
the lesser of the tuition amount for that semester or the maximum amount of the student's
early graduation achievement scholarship. A student may continue to submit enrollment
verification forms to the commissioner until the student has used the full amount of the
student's graduation achievement scholarship.
new text end

new text begin Subd. 6. new text end

new text begin General education money transferred. new text end

new text begin The commissioner must transfer
the amounts necessary to fund the early graduation achievement scholarships from the
general education aid appropriation for that year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal years 2011 and later.
new text end

Sec. 4.

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


Subd. 3.

Capital project levy referendum.

new text begin(a) new text endA 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 endThe 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 endThe 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 endIn 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 endThe 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. 5.

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. 6.

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 beginplus 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

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

(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. 7.

Minnesota Statutes 2008, section 126C.10, subdivision 2a, is amended to read:


Subd. 2a.

Extended time revenue.

(a) A school district's extended time revenue
is equal to the product of deleted text begin$4,601deleted text endnew text begin (1) the formula allowance for that year minus $523,new text end
andnew text begin (2)new text end the sum of the adjusted marginal cost pupil units of the district for each pupil in
average daily membership in excess of 1.0 and less than 1.2 according to section 126C.05,
subdivision 8
new text begin, if the district has extended time average daily membership in the current
year
new text end.

(b) A school district's extended time revenue may be used for extended day
programs, extended week programs, summer school, and other programming authorized
under the learning year program.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal years 2011
and later.
new text end

Sec. 8.

Minnesota Statutes 2008, section 126C.10, subdivision 13a, is amended to read:


Subd. 13a.

Operating capital levy.

To obtain operating capital revenue deleted text beginfor fiscal
year 2007 and later
deleted text end, a district may levy an amount not more than the product of its
operating capital revenue for the fiscal year times the lesser of one or the ratio of its
adjusted net tax capacity per adjusted marginal cost pupil unit to the operating capital
equalizing factor. The operating capital equalizing factor equals deleted text begin$22,222 for fiscal year
2006, and
deleted text end $10,700 for fiscal deleted text beginyeardeleted text endnew text begin years new text end 2007new text begin through 2011, $10,961 for fiscal year 2012,
and $11,075 for fiscal years 2013
new text end and later.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal years 2012 and later.
new text end

Sec. 9.

Minnesota Statutes 2008, section 126C.10, subdivision 14, is amended to read:


Subd. 14.

Uses of total operating capital revenue.

Total operating capital revenue
may be used only for the following purposes:

(1) to acquire land for school purposes;

(2) to acquire or construct buildings for school purposes;

(3) to rent or lease buildings, including the costs of building repair or improvement
that are part of a lease agreement;

(4) to improve and repair school sites and buildings, and equip or reequip school
buildings with permanent attached fixtures, including library media centers;

(5) for a surplus school building that is used substantially for a public nonschool
purpose;

(6) to eliminate barriers or increase access to school buildings by individuals with a
disability;

(7) to bring school buildings into compliance with the State Fire Code adopted
according to chapter 299F;

(8) to remove asbestos from school buildings, encapsulate asbestos, or make
asbestos-related repairs;

(9) to clean up and dispose of polychlorinated biphenyls found in school buildings;

(10) to clean up, remove, dispose of, and make repairs related to storing heating fuel
or transportation fuels such as alcohol, gasoline, fuel oil, and special fuel, as defined
in section 296A.01;

(11) for energy audits for school buildings and to modify buildings if the audit
indicates the cost of the modification can be recovered within ten years;

(12) to improve buildings that are leased according to section 123B.51, subdivision 4;

(13) to pay special assessments levied against school property but not to pay
assessments for service charges;

(14) to pay principal and interest on state loans for energy conservation according to
section 216C.37 or loans made under the Douglas J. Johnson Economic Protection Trust
Fund Act according to sections 298.292 to 298.298;

(15) to purchase or lease interactive telecommunications equipment;

(16) by board resolution, to transfer money into the debt redemption fund to: (i)
pay the amounts needed to meet, when due, principal and interest payments on certain
obligations issued according to chapter 475; or (ii) pay principal and interest on debt
service loans or capital loans according to section 126C.70;

(17) to pay operating capital-related assessments of any entity formed under a
cooperative agreement between two or more districts;

(18) to purchase or lease computers and related materials, copying machines,
telecommunications equipment, and other noninstructional equipment;

(19) to purchase or lease assistive technology or equipment for instructional
programs;

(20) to purchase textbooks;

(21) to purchase new and replacement library media resources or technology;

(22) to purchase vehicles;

(23) to purchase or lease telecommunications equipment, computers, and related
equipment for integrated information management systems for:

(i) managing and reporting learner outcome information for all students under a
results-oriented graduation rule;

(ii) managing student assessment, services, and achievement information required
for students with individual education plans; and

(iii) other classroom information management needs; deleted text beginand
deleted text end

(24) to pay personnel costs directly related to the acquisition, operation, and
maintenance of telecommunications systems, computers, related equipment, and network
and applications softwarenew text begin; and
new text end

new text begin (25) to pay the costs directly associated with closing a school facility, 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

Sec. 10.

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


126C.126 REALLOCATING GENERAL EDUCATION REVENUE FOR
ALL-DAY KINDERGARTEN AND PREKINDERGARTEN.

(a) In order to provide additional revenue for an optional all-day kindergarten
program, a district may reallocate general education revenue attributable to 12th grade
students who have graduated early under section 120B.07new text begin and who do not participate in
the early graduation achievement scholarship program under section 120B.08
new text end.

(b) A school district may spend general education revenue on extended time
kindergarten and prekindergarten programs.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal years 2011 and later.
new text end

Sec. 11.

Minnesota Statutes 2008, section 126C.17, is amended by adding a subdivision
to read:


new text begin Subd. 9a. new text end

new text begin Renewal by school board. new text end

new text begin (a) Notwithstanding the election requirements
of subdivision 9, a school board may renew an expiring referendum by board action if:
new text end

new text begin (1) the per pupil amount of the referendum is the same as the amount expiring;
new text end

new text begin (2) the term of the renewed referendum is no longer than the initial term approved
by the voters; and
new text end

new text begin (3) the school board has adopted a written resolution authorizing the renewal after
holding a meeting and allowing public testimony on the proposed renewal.
new text end

new text begin (b) The resolution must be adopted by the school board by June 15 of any calendar
year and becomes effective 60 days after its adoption unless a petition to revoke the
referendum authority, signed by a number of qualified voters in excess of 30 percent of
the registered voters of the district on the day of the petition, is filed with the board. A
referendum revocation invoked by petition must be held on the first Tuesday after the first
Monday in November of the calendar year the resolution is adopted.
new text end

new text begin (c) The board of directors of a school district where more than 60 percent of the
district's enrollment is eligible for free or reduced price meals may renew a referendum
that expired between January 1, 2004, and January 1, 2010, if that referendum has not yet
been renewed, according to the provisions of this subdivision.
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. 12.

Minnesota Statutes 2008, section 126C.20, is amended to read:


126C.20 ANNUAL GENERAL EDUCATION AID APPROPRIATION.

There is annually appropriated from the general fund to the department the amount
necessary for general education aidnew text begin under section 126C.13new text endnew text begin and the early graduation
achievement scholarship program under section 120B.08
new text end. This amount must be reduced
by the amount of any money specifically appropriated for the same purpose in any year
from any state fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal years 2011 and later.
new text end

Sec. 13.

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 year
new 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

(c) The maximum levy authority under paragraph (b) must not exceed the following
amounts:

(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. 14.

Minnesota Statutes 2009 Supplement, section 126C.44, is amended to read:


126C.44 SAFE SCHOOLS LEVY.

(a) Each district may make a levy on all taxable property located within the district
for the purposes specified in this section. The maximum amount which may be levied
for all costs under this section shall be equal to $30 multiplied by the district's adjusted
marginal cost pupil units for the school year. The proceeds of the levy must be reserved and
used for directly funding the following purposes or for reimbursing the cities and counties
who contract with the district for the following purposes: (1) to pay the costs incurred for
the salaries, benefits, and transportation costs of peace officers and sheriffs for liaison in
services in the district's schools; (2) to pay the costs for a drug abuse prevention program
as defined in section 609.101, subdivision 3, paragraph (e), in the elementary schools;
(3) to pay the costs for a gang resistance education training curriculum in the district's
schools; (4) to pay the costs for security in the district's schools and on school property; (5)
to pay the costs for other crime prevention, drug abuse, student and staff safety, voluntary
opt-in suicide prevention tools, and violence prevention measures taken by the school
district; or (6) to pay costs for licensed school counselors, licensed school nurses, licensed
school social workers, licensed school psychologists, and licensed alcohol and chemical
dependency counselors to help provide early responses to problems. For expenditures
under clause (1), the district must initially attempt to contract for services to be provided
by peace officers or sheriffs with the police department of each city or the sheriff's
department of the county within the district containing the school receiving the services. If
a local police department or a county sheriff's department does not wish to provide the
necessary services, the district may contract for these services with any other police or
sheriff's department located entirely or partially within the school district's boundaries.

(b) A school district that is a member of an intermediate school district may
include in its authority under this section the costs associated with safe schools activities
authorized under paragraph (a) for intermediate school district programs. This authority
must not exceed $10 times the adjusted marginal cost pupil units of the member districts.
This authority is in addition to any other authority authorized under this section. Revenue
raised under this paragraph must be transferred to the intermediate school district.

(c) A school district must set aside at least $3 per adjusted marginal cost pupil
unit of the safe schools levy proceeds for the purposes authorized under paragraph (a),
clause (6). The district must annually certify either that: (1) its total spending on services
provided by the employees listed in paragraph (a), clause (6), is not less than the sum of
its expenditures for these purposes, excluding amounts spent under this section, in the
previous year plus the amount spent under this section; deleted text beginordeleted text end (2) that the district's full-time
equivalent number of employees listed in paragraph (a), clause (6), is not less than the
number for the previous yearnew text begin; or (3) that the district's full-time equivalent number of
employees listed in paragraph (a), clause (6), including those provided through a special
education cooperative, intermediate school district, or education district, is not less than
the number for the previous year
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 2

EDUCATION EXCELLENCE

Section 1.

Minnesota Statutes 2008, section 120A.41, is amended to read:


120A.41 LENGTH OF SCHOOL YEAR; DAYS OF INSTRUCTION.

A school board's annual school calendar must include at least deleted text beginthe number of daysdeleted text end
deleted text begin of student instruction the board formally adopted as its school calendar at the beginning of
deleted text enddeleted text beginthe 1996-1997 school yeardeleted text endnew text begin 425 hours of instruction for a kindergarten student without a
disability, 935 hours of instruction for a student in grades 1 through 6, and 1,020 hours of
instruction for a student in grades 7 through 12, not including summer school
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. 2.

Minnesota Statutes 2008, section 120B.021, subdivision 1, is amended to read:


Subdivision 1.

Required academic standards.

The following subject areas are
required for statewide accountability:

(1) language arts;

(2) mathematics;

(3) science;

(4) social studies, including history, geography, economics, and government and
citizenship;

(5) new text beginphysical education;
new text end

new text begin (6)new text end health deleted text beginand physical educationdeleted text end, for which locally developed academic standards
apply; and

deleted text begin (6)deleted text end new text begin(7) new text endthe arts, for which statewide or locally developed academic standards apply,
as determined by the school district. Public elementary and middle schools must offer at
least three and require at least two of the following four arts areas: dance; music; theater;
and visual arts. Public high schools must offer at least three and require at least one of the
following five arts areas: media arts; dance; music; theater; and visual arts.

The commissioner must submit proposed standards in science and social studies to
the legislature by February 1, 2004.

For purposes of applicable federal law, the academic standards for language arts,
mathematics, and science apply to all public school students, except the very few students
with extreme cognitive or physical impairments for whom an individualized education
plan team has determined that the required academic standards are inappropriate.
An individualized education plan team that makes this determination must establish
alternative standards.

A school district, no later than the 2007-2008 school year, must adopt graduation
requirements that meet or exceed state graduation requirements established in law or
rule. A school district that incorporates these state graduation requirements before the
2007-2008 school year must provide students who enter the 9th grade in or before
the 2003-2004 school year the opportunity to earn a diploma based on existing locally
established graduation requirements in effect when the students entered the 9th grade.
District efforts to develop, implement, or improve instruction or curriculum as a result
of the provisions of this section must be consistent with sections 120B.10, 120B.11,
and 120B.20.

The commissioner must include the contributions of Minnesota American Indian
tribes and communities as they relate to the academic standards during the review and
revision of the required academic standards.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to all school districts and charter schools beginning in the 2012-2013 school
year and later. A school district or charter school is strongly encouraged to implement
state physical education standards in an earlier school year than the 2012-2013 school
year if it has adopted physical education standards equivalent to the standards developed
by the National Association for Sport and Physical Education under section 38 on the
effective date of this act, or if it is scheduled to undertake the periodic review of its local
physical education standards under Minnesota Statutes, section 120B.023, subdivision 2,
paragraph (g), in a school year before the 2012-2013 school year, it is strongly encouraged
to implement state physical education standards consistent with section 38 in an earlier
school year.
new text end

Sec. 3.

Minnesota Statutes 2009 Supplement, section 120B.023, subdivision 2, is
amended to read:


Subd. 2.

Revisions and reviews required.

(a) The commissioner of education must
revise and appropriately embed technology and information literacy standards consistent
with recommendations from school media specialists into the state's academic standards
and graduation requirements and implement a review cycle for state academic standards
and related benchmarks, consistent with this subdivision. During each review cycle, the
commissioner also must examine the alignment of each required academic standard and
related benchmark with the knowledge and skills students need for college readiness and
advanced work in the particular subject area.

(b) The commissioner in the 2006-2007 school year must revise and align the state's
academic standards and high school graduation requirements in mathematics to require
that students satisfactorily complete the revised mathematics standards, beginning in the
2010-2011 school year. Under the revised standards:

(1) students must satisfactorily complete an algebra I credit by the end of eighth
grade; and

(2) students scheduled to graduate in the 2014-2015 school year or later must
satisfactorily complete an algebra II credit or its equivalent.

The commissioner also must ensure that the statewide mathematics assessments
administered to students in grades 3 through 8 and 11 are aligned with the state academic
standards in mathematics, consistent with section 120B.30, subdivision 1, paragraph
(b). The commissioner must implement a review of the academic standards and related
benchmarks in mathematics beginning in the 2015-2016 school year.

(c) The commissioner in the 2007-2008 school year must revise and align the state's
academic standards and high school graduation requirements in the arts to require that
students satisfactorily complete the revised arts standards beginning in the 2010-2011
school year. The commissioner must implement a review of the academic standards and
related benchmarks in arts beginning in the 2016-2017 school year.

(d) The commissioner in the 2008-2009 school year must revise and align the state's
academic standards and high school graduation requirements in science to require that
students satisfactorily complete the revised science standards, beginning in the 2011-2012
school year. Under the revised standards, students scheduled to graduate in the 2014-2015
school year or later must satisfactorily complete a chemistry or physics credit. The
commissioner must implement a review of the academic standards and related benchmarks
in science beginning in the 2017-2018 school year.

(e) The commissioner in the 2009-2010 school year must revise and align the state's
academic standards and high school graduation requirements in language arts to require
that students satisfactorily complete the revised language arts standards beginning in the
2012-2013 school year. The commissioner must implement a review of the academic
standards and related benchmarks in language arts beginning in the 2018-2019 school year.

(f) The commissioner in the 2010-2011 school year must revise and align the state's
academic standards and high school graduation requirements in social studies to require
that students satisfactorily complete the revised social studies standards beginning in the
2013-2014 school year. The commissioner must implement a review of the academic
standards and related benchmarks in social studies beginning in the 2019-2020 school year.

(g) School districts and charter schools must revise and align local academic
standards and high school graduation requirements in health, deleted text beginphysical education,deleted text end world
languages, and career and technical education to require students to complete the revised
standards beginning in a school year determined by the school district or charter school.
School districts and charter schools must formally establish a periodic review cycle for
the academic standards and related benchmarks in health, deleted text beginphysical education,deleted text end world
languages, and career and technical education.

new text begin (h) The commissioner in the 2013-2014 school year and later must use the good
cause exemption under section 14.388, subdivision 1, clause (3), to amend the rules
governing state physical education standards to conform the state standards to changes in
the standards developed by the National Association for Sport and Physical Education.
Directions to the commissioner to embed technology and information literacy standards
under paragraph (a) and other requirements related to state academic standards under
this chapter do not apply.
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 all school districts and charter schools beginning in the 2012-2013 school
year and later, except that paragraph (h) applies beginning in the 2013-2014 school year
and later. A school district or charter school is strongly encouraged to implement state
physical education standards in an earlier school year than the 2012-2013 school year if it
has adopted physical education standards equivalent to the standards developed by the
National Association for Sport and Physical Education under section 38 on the effective
date of this act, or if it is scheduled to undertake the periodic review of its local physical
education standards under paragraph (g) in a school year before the 2012-2013 school
year, it is strongly encouraged to implement state physical education standards consistent
with section 38 in an earlier school year.
new text end

Sec. 4.

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


120B.15 GIFTED AND TALENTED STUDENTS PROGRAMS.

(a) School districts new text beginand charter schools new text endmay 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 beginand appropriate
new text endeducational programs.

(b) School districts new text beginand charter schools new text endmay 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 learners
new text end.

(c) School districts new text beginand charter schools new text endmust 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. 5.

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. 6.

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 deleted text beginfrom anddeleted text endnew text begin to be computer-adaptive
reading and mathematics assessments for general education students that are
new text end 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 begin2013-2014deleted text endnew 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 beginon the high school transcript new text enda student's deleted text beginhighestdeleted text end new text begincurrent pass
status for each subject that has a required graduation
new text endassessment deleted text beginscore 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 Diploma
deleted 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 new text begincomputer-adaptive assessmentsnew text end 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 new text begincomputer-adaptive assessments andnew text end high
school test results upon receiving those results.

(f) The 3rd through 8th grade new text begincomputer-adaptive assessmentsnew text end 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.

new text begin (h) Notwithstanding other law to the contrary, the commissioner must not sign a
memorandum of understanding, agree to participate in a consortium or partnership, or
enter into any other agreement with any other state to develop shared common assessments
of K-12 academic standards without first receiving specific legislative authorization.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (h) is effective the day following final enactment,
and applies to agreements entered into after the effective date of this act. Requirements for
using computer-adaptive mathematics assessments for grades 3 through 8 apply in the
2011-2012 school year and later and requirements for using computer-adaptive reading
assessments for grades 3 through 8 apply in the 2013-2014 school year and later.
new text end

Sec. 7.

Minnesota Statutes 2009 Supplement, section 120B.30, subdivision 1a, is
amended to read:


Subd. 1a.

Statewide and local assessments; results.

(a) new text beginFor purposes of this
section, the following definitions have the meanings given them.
new text end

new text begin (1) "Computer-adaptive assessments" means fully adaptive assessments or partially
adaptive assessments.
new text end

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

new text begin (3) "Partially adaptive assessments" include two portions of test items, where one
portion is limited to on-grade level test items and a second portion includes test items that
are on-grade level or above or below a student's grade level.
new text end

new text begin (4) "On-grade level" test items contain subject area content that is aligned to state
academic standards for the grade level of the student taking the assessment.
new text end

new text begin (5) "Above-grade level" test items contain subject area content that is above the grade
level of the student taking the assessment and are considered aligned with state academic
standards to the extent they are aligned with content represented in state academic
standards above the grade level of the student taking the assessment. Notwithstanding
the student's grade level, administering above-grade level test items to a student does not
violate the requirement that state assessments must be aligned with state standards.
new text end

new text begin (6) "Below-grade level" test items contain subject area content that is below
the grade level of the student taking the test and are considered aligned with state
academic standards to the extent they are aligned with content represented in state
academic standards below the student's current grade level. Notwithstanding the student's
grade level, administering below-grade level test items to a student does not violate the
requirement that state assessments must be aligned with state standards.
new text end

new text begin (b) The commissioner must use fully adaptive assessments to the extent no net loss
of federal and state funds occurs as a result of using these assessments. If a net loss of
federal and state funds were to occur under this subdivision, then the commissioner must
use partially adaptive assessments to meet existing federal educational accountability
requirements.
new text end

new text begin (c) new text endFor purposes of conforming with existing federal educational accountability
requirements, the commissioner must develop new text beginand implement computer-adaptive new text endreading
and mathematics assessments for grades 3 through 8, state-developed high school
reading and mathematics tests aligned with state academic standards, and science
assessments under clause (2) that districts and sites must use to monitor student growth
toward achieving those standards. new text beginIn developing and implementing computer-adaptive
assessments, the commissioner must allow for paper-and-pencil tests that are the
equivalent of computer-adaptive assessments under this section to the extent these tests
are needed to accommodate the technology capacity of individual school districts.
new text endThe
commissioner must not develop statewide assessments for academic standards in social
studies, health and physical education, and the arts. The commissioner must require:

(1) annual new text begincomputer-adaptive new text endreading and mathematics assessments in grades 3
through 8, and high school reading and mathematics tests; and

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

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

new text begin (1) individual student performance data and achievement and summary reports are
available to all schools within three school days of when students take an assessment;
new text end

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

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

new text begin (4) teachers and school administrators are able to use formative information about
students' academic strengths and weaknesses, to the extent it is available, to improve
student instruction and indicate specific skills and knowledge that should be introduced
and developed for students at given score levels, organized by strands within subject areas,
and aligned to state academic standards; and
new text end

new text begin (5) the maximum number of school districts have the opportunity to replace
district-purchased computer-adaptive assessments with state-developed and state-funded
computer-adaptive assessments.
new text end

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

deleted text begin (c)deleted text endnew text begin (f)new text end Reporting of assessment results must:

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

(2) include a value-added growth indicator of student achievement under section
120B.35, subdivision 3, paragraph (b); and

(3)(i) for students enrolled in grade 8 before the 2005-2006 school year, determine
whether students have met the state's basic skills requirements; and

(ii) for students enrolled in grade 8 in the 2005-2006 school year and later, determine
whether students have met the state's academic standards.

deleted text begin (d)deleted text endnew text begin (g)new text end Consistent with applicable federal law and subdivision 1, paragraph (d),
clause (1), the commissioner must include appropriate, technically sound accommodations
or alternative assessments for the very few students with disabilities for whom statewide
assessments are inappropriate and for students with limited English proficiency.

deleted text begin (e)deleted text endnew text begin (h)new text end A school, school district, and charter school must administer statewide
assessments under this section, as the assessments become available, to evaluate student
proficiency in the context of the state's grade level academic standards. If a state
assessment is not available, a school, school district, and charter school must determine
locally if a student has met the required academic standards. A school, school district,
or charter school may use a student's performance on a statewide assessment as one of
multiple criteria to determine grade promotion or retention. A school, school district, or
charter school may use a high school student's performance on a statewide assessment
as a percentage of the student's final grade in a course, or place a student's assessment
score on the student's transcript.

new text begin EFFECTIVE DATE. new text end

new text begin Requirements for using computer-adaptive mathematics
assessments for grades 3 through 8 apply in the 2011-2012 school year and later and
requirements for using computer-adaptive reading assessments for grades 3 through 8
apply in the 2013-2014 school year and later.
new text end

Sec. 8.

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. 9.

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


Subd. 3.

Reporting.

The commissioner shall report test deleted text begindatadeleted text endnew 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. 10.

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


Subd. 4.

Access to tests.

new text beginConsistent with section 13.34, new text endthe 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 process
new 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. 11.

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. 12.

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 beginthe 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 endtwo 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.

(c) The commissioner must make available performance report cards by the
beginning of each school year.

(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. 13.

new text begin [121A.215] LOCAL SCHOOL DISTRICT WELLNESS POLICIES;
WEB SITE.
new text end

new text begin Where available, a school district must post its current local school wellness policy
on its Web site.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 14.

Minnesota Statutes 2009 Supplement, section 122A.09, subdivision 4, is
amended to read:


Subd. 4.

License and rules.

(a) The board deleted text beginmustdeleted text end new text beginmay new text endadopt new text beginnew rules and amend
any existing
new text endrules to license public school teachers and interns deleted text beginsubject todeleted text end new text beginonly under
specific legislative authority and consistent with the requirements of
new text endchapter 14.new text begin This
paragraph does not prohibit the board from making technical changes or corrections to
rules or repealing rules adopted by the board.
new text end

(b) The board must adopt rules requiring a person to successfully complete a skills
examination in reading, writing, and mathematics as a requirement for initial teacher
licensure. Such rules must require college and universities offering a board-approved
teacher preparation program to provide remedial assistance to persons who did not
achieve a qualifying score on the skills examination, including those for whom English is
a second language.

(c) The board must adopt rules to approve teacher preparation programs. The board,
upon the request of a postsecondary student preparing for teacher licensure or a licensed
graduate of a teacher preparation program, shall assist in resolving a dispute between the
person and a postsecondary institution providing a teacher preparation program when the
dispute involves an institution's recommendation for licensure affecting the person or the
person's credentials. At the board's discretion, assistance may include the application
of chapter 14.

(d) The board must provide the leadership and shall adopt rules for the redesign of
teacher education programs to implement a research based, results-oriented curriculum
that focuses on the skills teachers need in order to be effective. The board shall implement
new systems of teacher preparation program evaluation to assure program effectiveness
based on proficiency of graduates in demonstrating attainment of program outcomes.

(e) The board must adopt rules requiring candidates for initial licenses to
deleted text begin successfully completedeleted text endnew text begin passnew text end an examination of general pedagogical knowledge and
examinations of licensure-specific teaching skills. The rules shall be effective by
September 1, 2001. The rules under this paragraph also must require candidates for
initial licenses to teach prekindergarten or elementary students to successfully complete,
as part of the examination of licensure-specific teaching skills, test items assessing the
candidates' knowledge, skill, and ability in comprehensive, scientifically based reading
instruction under section 122A.06, subdivision 4, and their knowledge and understanding
of the foundations of reading development, the development of reading comprehension,
and reading assessment and instruction, and their ability to integrate that knowledge
and understanding.new text begin The rules under this paragraph also must require general education
candidates for initial licenses to teach prekindergarten or elementary students to pass,
as part of the examination of licensure-specific teaching skills, test items assessing the
candidates' knowledge, skill, and ability in mathematics.
new text end

(f) The board must adopt rules requiring teacher educators to work directly with
elementary or secondary school teachers in elementary or secondary schools to obtain
periodic exposure to the elementary or secondary teaching environment.

(g) The board must grant licenses to interns and to candidates for initial licenses.

(h) The board must design and implement an assessment system which requires a
candidate for an initial license and first continuing license to demonstrate the abilities
necessary to perform selected, representative teaching tasks at appropriate levels.

(i) The board must receive recommendations from local committees as established
by the board for the renewal of teaching licenses.new text begin Committee recommendations must be
consistent with section 122A.18, subdivision 4, paragraph (b).
new text end

(j) The board must grant life licenses to those who qualify according to requirements
established by the board, and suspend or revoke licenses pursuant to sections 122A.20 and
214.10. The board must not establish any expiration date for application for life licenses.

(k) The board must adopt rules that require all licensed teachers who are renewing
their continuing license to include in their renewal requirements further preparation in
the areas of using positive behavior interventions and in accommodating, modifying, and
adapting curricula, materials, and strategies to appropriately meet the needs of individual
students and ensure adequate progress toward the state's graduation rule.

(l) In adopting rules to license public school teachers who provide health-related
services for disabled children, the board shall adopt rules consistent with license or
registration requirements of the commissioner of health and the health-related boards who
license personnel who perform similar services outside of the school.

(m) The board must adopt rules that require all licensed teachers who are renewing
their continuing license to include in their renewal requirements further reading
preparation, consistent with section 122A.06, subdivision 4. The rules do not take effect
until they are approved by law. Teachers who do not provide direct instruction including, at
least, counselors, school psychologists, school nurses, school social workers, audiovisual
directors and coordinators, and recreation personnel are exempt from this section.

(n) The board must adopt rules that require all licensed teachers who are renewing
their continuing license to include in their renewal requirements further preparation
in understanding the key warning signs of early-onset mental illness in children and
adolescents.

new text begin (o) The board, consistent with section 122A.18, subdivision 4, paragraph (b), must
amend its licensure renewal rules to include professional reflection and growth in best
teaching practices in the preparation requirements for relicensure under this paragraph
and paragraphs (i), (k), (m), and (n), and any other preparation requirements applicable to
teachers seeking to renew their continuing license from the board.
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 all new and amended rules proposed by the Board of Teaching, including all
new and amended rules that are not yet formally adopted, except that the amendments
to paragraphs (i) and (o) apply to licensees seeking relicensure beginning June 30, 2012.
This section does not affect the requirement that the Board of Teaching continue to finally
adopt rules initially proposed before the effective date of this section, to implement the
requirement of Laws 2003, chapter 129, article 1, section 10, and Laws 2007, chapter
146, article 2, section 34, that the board adopt rules relating to credentials for education
paraprofessionals.
new text end

Sec. 15.

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 beginPraxis IIdeleted text end new text beginsubject area new text endcontent 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. 16.

Minnesota Statutes 2008, section 122A.18, subdivision 1, is amended to read:


Subdivision 1.

Authority to license.

(a) The Board of Teaching must license
teachers, as defined in section 122A.15, subdivision 1, except for supervisory personnel,
as defined in section 122A.15, subdivision 2.

(b) The Board of School Administrators must license supervisory personnel as
defined in section 122A.15, subdivision 2, except for athletic coaches.

(c) Licenses under the jurisdiction of the Board of Teaching, the Board of School
Administrators, and the commissioner of education must be issued through the licensing
section of the department.

new text begin (d) The Board of Teaching may approve only those teacher preparation programs that
target and address identified concerns affecting students in kindergarten through grade 12.
The Board of Teaching and the Department of Education, consistent with the requirements
of chapter 13, must enter into an agreement to share kindergarten through grade 12
educational data solely for approving and improving teacher education programs. The
Board of Teaching must ensure that this information remains confidential and is used only
for this purpose. Any unauthorized disclosure is subject to a penalty under section 13.09.
new text end

new text begin (e) The Board of School Administrators may approve only those administrator
preparation programs that target and address identified concerns affecting students in
kindergarten through grade 12. The Board of School Administrators and the Department
of Education, consistent with the requirements of chapter 13, must enter into an agreement
to share kindergarten through grade 12 educational data solely for approving and
improving education administration programs. The Board of School Administrators must
ensure that this information remains confidential and is used only for this purpose. Any
unauthorized disclosure is subject to a penalty under section 13.09.
new text end

Sec. 17.

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 beginsuccessfully completedeleted text endnew 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 endThe 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 beginsuccessfully
completing
deleted text endnew 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 endAll 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. 18.

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 beginsuccessfully completeddeleted text endnew text begin passednew text end all exams and new text beginsuccessfully completed new text endhuman
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 beginsuccessfully completeddeleted text endnew text begin passednew text end all exams and new text beginsuccessfully completed new text endhuman
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:

(1) deleted text beginsuccessfully completeddeleted text endnew text begin passednew text end all exams and new text beginsuccessfully completed new text endhuman
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, 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:

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

(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. 19.

new text begin [122A.245] ALTERNATIVE TEACHER PREPARATION PROGRAM
AND LIMITED-TERM TEACHER LICENSE.
new text end

new text begin Subdivision 1. new text end

new text begin Requirements. new text end

new text begin (a) The Board of Teaching must approve qualified
teacher preparation programs under this section that are a means to acquire a two-year
limited-term license and to prepare for acquiring a standard entrance license. Partnerships
composed of school districts or charter schools and either:
new text end

new text begin (1) a college or university with a board-approved alternative teacher preparation
program; or
new text end

new text begin (2) a nonprofit corporation formed for an education-related purpose and subject
to chapter 317A and a college or university with a board-approved alternative teacher
preparation program may offer this program if:
new text end

new text begin (i) a need for teachers exists based on the determination by a participating school
district or charter school that in the previous school year too few qualified candidates
applied for its posted, available teaching positions;
new text end

new text begin (ii) the teaching staff does not reflect the racial and cultural diversity of the student
population of the district or charter school; or
new text end

new text begin (iii) the school district or charter school identifies a need to reduce or eliminate a
student achievement gap based on school performance report card data under section
120B.36.
new text end

new text begin (b) To participate in this program, a candidate must:
new text end

new text begin (1) have a bachelor's degree with a minimum 3.0 grade point average, or have a
bachelor's degree and meet other board-adopted criteria;
new text end

new text begin (2) pass the reading, writing, and mathematics skills examination under section
122A.18; and
new text end

new text begin (3) pass the board-approved content area and pedagogy tests.
new text end

new text begin Subd. 2. new text end

new text begin Characteristics. new text end

new text begin An alternative teacher preparation program under this
section must include:
new text end

new text begin (1) a minimum 200-hour instructional phase that provides intensive preparation
before that person assumes classroom responsibilities;
new text end

new text begin (2) a research-based and results-oriented approach focused on best teaching practices
to increase student proficiency and growth measured against state academic standards;
new text end

new text begin (3) strategies to combine pedagogy and best teaching practices to better inform
teachers' classroom instruction;
new text end

new text begin (4) assessment, supervision, and evaluation of the program participant to determine
the participant's specific needs throughout the program and to support the participant
in successfully completing the program;
new text end

new text begin (5) formal instruction and intensive peer coaching throughout the school year that
provide structured guidance and regular ongoing support;
new text end

new text begin (6) high quality, sustained, intensive, and classroom-embedded staff development
opportunities conducted by a mentor or by a mentorship team that may include school
administrators, teachers, and postsecondary faculty members and are directed at improving
student learning and achievement; and
new text end

new text begin (7) a requirement that program participants demonstrate to the local site team under
subdivision 5 that they are making satisfactory progress toward acquiring a standard
entrance license from the Board of Teaching.
new text end

new text begin Subd. 3. new text end

new text begin Program approval. new text end

new text begin The Board of Teaching must approve alternative
teacher preparation programs under this section based on board-adopted criteria that reflect
best practices for alternative teacher preparation programs consistent with this section.
The board must permit licensure candidates to demonstrate licensure competencies in
school-based settings and through other nontraditional means.
new text end

new text begin Subd. 4. new text end

new text begin Employment conditions. new text end

new text begin Where applicable, teachers with a limited-term
license under this section are subject to the terms of the local collective bargaining
agreement between the local representative of the teachers and the school board.
new text end

new text begin Subd. 5. new text end

new text begin Approval for standard entrance license. new text end

new text begin A local site team that may
include teachers, school administrators, postsecondary faculty, and nonprofit staff must
evaluate the performance of the teacher candidate using the Minnesota State Standards of
Effective Practice for Teachers established in rule and submit to the board an evaluation
report recommending whether or not to issue the teacher candidate a standard entrance
license.
new text end

new text begin Subd. 6. new text end

new text begin Standard entrance license. new text end

new text begin The Board of Teaching must issue a standard
entrance license to a teacher candidate under this section who successfully performs
throughout the program and is recommended for licensure under subdivision 5.
new text end

new text begin Subd. 7. new text end

new text begin Qualified teacher. new text end

new text begin A person with a valid limited-term license under this
section is the teacher of record and a qualified teacher within the meaning of section
122A.16.
new text end

new text begin Subd. 8. new text end

new text begin Reports. new text end

new text begin The Board of Teaching must submit an interim report on the
efficacy of this program to the K-12 Education Policy and Finance committees of the
legislature by February 15, 2012, and a final report by February 15, 2014.
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. 20.

new text begin [122A.246] ALTERNATIVE TEACHER PREPARATION
PROGRAM AND LIMITED-TERM TEACHER LICENSE FOR MID-CAREER
PROFESSIONALS.
new text end

new text begin Subdivision 1. new text end

new text begin Requirements. new text end

new text begin (a) The Board of Teaching annually must approve
qualified teacher preparation programs under this section that are a means for mid-career
professionals to acquire a two-year limited-term license and to prepare for acquiring a
standard entrance license. Partnerships composed of school districts or charter schools
and either:
new text end

new text begin (1) a college or university with a board-approved alternative teacher preparation
program; or
new text end

new text begin (2) a nonprofit corporation formed for an education-related purpose and subject
to chapter 317A and a college or university with a board-approved alternative teacher
preparation program may offer this program if:
new text end

new text begin (i) a need for teachers exists in a subject area identified by the department as a
shortage area;
new text end

new text begin (ii) the teaching staff does not reflect the racial and cultural diversity of the student
population of the district or charter school; and
new text end

new text begin (iii) the district or charter school identifies a need to reduce or eliminate a student
achievement gap based on school performance report card data under section 120B.36.
new text end

new text begin (b) To participate in this program, a candidate must:
new text end

new text begin (1) have a bachelor's degree and at least ten years of professional experience in a
field related to the license being sought; or
new text end

new text begin (2) hold a valid teaching license and have at least five years of classroom teaching
experience.
new text end

new text begin (c) A candidate under paragraph (b), clause (1), must:
new text end

new text begin (1) pass the reading, writing, and mathematics skills examination under section
122A.18;
new text end

new text begin (2) obtain qualifying scores on board-approved content area and pedagogy tests; and
new text end

new text begin (3) before receiving a limited term license under this section, complete a minimum
200-hour instructional phase that provides intensive preparation and a full-time student
teaching experience that places the candidate in the classroom under the direct supervision
of a fully licensed classroom teacher for at least 12 weeks. A candidate under paragraph
(b), clause (1), is declared to have met the requirements of this paragraph through the
licensing process and previous classroom experience.
new text end

new text begin Subd. 2. new text end

new text begin Characteristics. new text end

new text begin An alternative teacher preparation program under this
section must include:
new text end

new text begin (1) a research-based and results-oriented approach focused on best teaching practices
to increase student proficiency and growth measured against state academic standards;
new text end

new text begin (2) strategies to combine pedagogy and best teaching practices to better inform
teachers' classroom instruction;
new text end

new text begin (3) assessment, supervision, and evaluation of the program participant to determine
the participant's specific needs throughout the program and to support the participant
in successfully completing the program;
new text end

new text begin (4) formal instruction and intensive peer coaching throughout the school year that
provide structured guidance and regular ongoing support;
new text end

new text begin (5) high quality, sustained, intensive, and classroom-embedded staff development
opportunities conducted by a mentor or by a mentorship team that may include school
administrators, teachers, and postsecondary faculty members and are directed at improving
student learning and achievement; and
new text end

new text begin (6) a requirement that program participants demonstrate to the local site team under
subdivision 5 that they are making satisfactory progress toward acquiring a standard
entrance license from the Board of Teaching.
new text end

new text begin Subd. 3. new text end

new text begin Program approval. new text end

new text begin The Board of Teaching must approve alternative
teacher preparation programs under this section based on board-adopted criteria that reflect
best practices for alternative teacher preparation programs consistent with this section.
The board must permit licensure candidates to demonstrate licensure competencies in
school-based settings and through other nontraditional means.
new text end

new text begin Subd. 4. new text end

new text begin Employment conditions. new text end

new text begin (a) Each full school year that a teacher with
a limited-term license teaches in a Minnesota school is one year of the teacher's first
probationary employment period.
new text end

new text begin (b) Where applicable, teachers with a limited-term license under this section
are subject to the terms of the local collective bargaining agreement between the local
representative of the teachers and the school board.
new text end

new text begin (c) A school district or charter school must not prospectively promise to employ a
teacher candidate who receives a standard entrance license under this section.
new text end

new text begin Subd. 5. new text end

new text begin Approval for standard entrance license. new text end

new text begin Postsecondary faculty, the
supervising teacher, and other qualified staff must evaluate the performance of the teacher
candidate using the Minnesota state standards of effective practice for teachers and content
standards by licensure area established in rule and submit to the board an evaluation report
recommending whether or not to issue the teacher candidate a standard entrance license.
new text end

new text begin Subd. 6. new text end

new text begin Standard entrance license. new text end

new text begin The Board of Teaching may issue a standard
entrance license to a teacher candidate under this section who successfully performs under
the two-year limited license and is recommended for licensure under subdivision 5.
new text end

new text begin Subd. 7. new text end

new text begin Qualified teacher. new text end

new text begin A person with a valid limited-term license under this
section is the teacher of record and a qualified teacher within the meaning of section
122A.16.
new text end

new text begin Subd. 8. new text end

new text begin Reports. new text end

new text begin (a) The Board of Teaching annually must collect and report to
the K-12 Education Policy and Finance Committees of the legislature alternative teacher
preparation program provider data on cumulative teacher retention rates, number of
licenses issued by licensure area, the locations where teachers are placed, the number of
programs approved, and the demographic characteristics of the teacher candidates, among
other data. The board may use these data to approve program providers under this section.
new text end

new text begin (b) The Board of Teaching must submit a report on the efficacy of this program to the
K-12 Education Policy and Finance committees of the legislature by February 15, 2014.
new text end

Sec. 21.

Minnesota Statutes 2009 Supplement, section 122A.40, subdivision 8, is
amended to read:


Subd. 8.

new text beginAnnual evaluations and new text endpeer coaching for continuing contract
teachers.

new text begin(a) To improve student learning and success, new text enda school board and an exclusive
representative of the teachers in the districtnew text begin, consistent with paragraph (b),new text end shall develop
deleted text begin adeleted text endnew text begin an annual teacher evaluation andnew text end peer review process for continuing contract teachers
through joint agreement. The new text beginpeer review new text endprocess deleted text beginmaydeleted text endnew text begin mustnew text end include having trained
observers serve as peer coaches or having teachers participate in professional learning
communities.

new text begin (b) To develop, improve, and support qualified teachers and effective teaching
practices and improve student learning and success, the annual evaluation process for
continuing contract teachers must:
new text end

new text begin (1) be a collaborative effort between teachers and school administrators to develop
and implement a teacher evaluation process that is based on professional teaching
standards and includes both formative assessments to improve instruction through
identifying teachers' strengths and weaknesses and summative assessments conducted at
least once every three school years and used to make personnel decisions, consistent
with clause (2);
new text end

new text begin (2) coordinate staff development activities under section 122A.60 with this
evaluation process and teachers' evaluation outcomes and give teachers not meeting
standards of effective practice sufficient support to improve;
new text end

new text begin (3) include in-class observations by both licensed mentor teachers and school
administrators who are trained evaluators, use a valid observation framework or protocol,
and periodically undergo a reliability review;
new text end

new text begin (4) provide peer coaching or have teachers participate in professional learning
communities, consistent with paragraph (a);
new text end

new text begin (5) require teachers to develop and present a portfolio demonstrating evidence
of reflection and professional growth, consistent with section 122A.18, subdivision
4, paragraph (b), using criteria developed by the Board of Teaching to reliably assess
portfolio content, and include teachers' own performance assessment based on student
work samples, student and family surveys, and videotapes of teachers' work, among
other activities;
new text end

new text begin (6) demonstrate teachers' content knowledge and teaching skills; and
new text end

new text begin (7) use longitudinal data on student academic growth, student attendance, student
engagement and connection, and other outcome measures as evaluation components.
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 beginning when a district next enters into or modifies a collective bargaining
agreement or by the 2011-2012 school year, whichever comes first.
new text end

Sec. 22.

Minnesota Statutes 2009 Supplement, section 122A.41, subdivision 5, is
amended to read:


Subd. 5.

new text beginAnnual evaluations and new text endpeer coaching for continuing contract
teachers.

new text begin(a) To improve student learning and success, new text enda school board and an exclusive
representative of the teachers in the districtnew text begin, consistent with paragraph (b),new text end must develop deleted text beginadeleted text endnew text begin
an annual teacher evaluation and
new text end peer review process for nonprobationary teachers through
joint agreement. The new text beginpeer review new text endprocess deleted text beginmaydeleted text endnew text begin mustnew text end include having trained observers
serve as peer coaches or having teachers participate in professional learning communities.

new text begin (b) To develop, improve, and support qualified teachers and effective teaching
practices and improve student learning and success, the annual evaluation process for
continuing contract teachers must:
new text end

new text begin (1) be a collaborative effort between teachers and school administrators to develop
and implement a teacher evaluation process that is based on professional teaching
standards and includes both formative assessments to improve instruction through
identifying teachers' strengths and weaknesses and summative assessments conducted at
least once every three school years and used to make personnel decisions, consistent
with clause (2);
new text end

new text begin (2) coordinate staff development activities under section 122A.60 with this
evaluation process and teachers' evaluation outcomes and give teachers not meeting
standards of effective practice sufficient support to improve;
new text end

new text begin (3) include in-class observations by both licensed mentor teachers and school
administrators who are trained evaluators, use a valid observation framework or protocol,
and periodically undergo a reliability review;
new text end

new text begin (4) provide peer coaching or have teachers participate in professional learning
communities, consistent with paragraph (a);
new text end

new text begin (5) require teachers to develop and present a portfolio demonstrating evidence
of reflection and professional growth, consistent with section 122A.18, subdivision
4, paragraph (b), using criteria developed by the Board of Teaching to reliably assess
portfolio content, and include teachers' own performance assessment based on student
work samples, student and family surveys, and videotapes of teachers' work, among
other activities;
new text end

new text begin (6) demonstrate teachers' content knowledge and teaching skills; and
new text end

new text begin (7) use longitudinal data on student academic growth, student attendance, student
engagement and connection, and other outcome measures as evaluation components.
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 beginning when a district next enters into or modifies a collective bargaining
agreement or by the 2011-2012 school year, whichever comes first.
new text end

Sec. 23.

new text begin [123A.29] EFFICIENCY PLUS ACCESS TASK FORCES.
new text end

new text begin Subdivision 1. new text end

new text begin Purpose. new text end

new text begin The purpose of the efficiency plus access task forces
is to facilitate greater efficiency and reduce education costs through collaboration and
cooperation across school districts and other governmental agencies while maintaining
or improving the learning results for students. The legislative intent is to reduce the
administrative costs of education without resorting to a policy of required consolidation
that reduces the number of districts or school boards and without creating fewer larger
schools that require longer bus rides for students.
new text end

new text begin Subd. 2. new text end

new text begin Required district participation. new text end

new text begin Each district with an enrollment of
fewer than 5,000 pupils in K-12 for fiscal year 2010 shall participate in an efficiency
plus access task force.
new text end

new text begin Subd. 3. new text end

new text begin Optional district and other public entity participation. new text end

new text begin School districts
with more than 5,000 pupils, charter schools, cities, townships, counties, public higher
education institutions, Head Start agencies, public libraries, and other public entities are
encouraged to participate in the efficiency plus access task forces.
new text end

new text begin Subd. 4. new text end

new text begin Task force membership. new text end

new text begin (a) Participating districts may organize the task
forces using an existing education district, intermediate district, or other cooperative
model. Districts may request that a service cooperative assist in establishing task forces
for their service area. Districts do not need to be contiguous to form an efficiency plus
access task force. Each task force shall consist of one member appointed by each district
board included in the task force and one member from each entity defined in subdivision
3 that choose to participate. Districts and other public entities may decide to become
members of more than one efficiency plus access task force. These appointments shall be
made by August 15, 2010.
new text end

new text begin (b) Each school board shall develop a process within the district allowing teachers,
students, parents, and the community to have access and opportunities to review and make
recommendations to be brought forward to the efficiency plus access task force.
new text end

new text begin (c) The initial meeting of each task force shall not be later than September 30, 2010.
At the initial meeting, each task force shall elect a chair and other officers it considers
necessary to coordinate the work of the task force.
new text end

new text begin Subd. 5. new text end

new text begin Task force; powers. new text end

new text begin (a) Each task force shall review and make
recommendations to the boards of the participating districts and public entities regarding
how the purpose of this section can be met in the following areas:
new text end

new text begin (1) administrative services including but not limited to superintendent services,
principal services, financial management, human services, facilities and grounds
maintenance, food and nutrition services, research and evaluation services, transportation
services, health services, information technology services, and other administrative
services. Cooperation with other public agencies for the provision of administrative
services should be considered;
new text end

new text begin (2) instructional and learning services including but not limited to creating a
common calendar; low-attendance elective secondary courses; use of technology to
replace or supplement courses currently being provided; use of technology to provide
new learning opportunities through technology with an emphasis on using low-cost or
no-cost learning opportunities available online; coordination with higher education so
that advanced courses are provided college credit to avoid duplication between high
school and postsecondary; determine how certain students can complete select high school
credit requirements while in middle school; and exploring ways to utilize the learning
opportunities in the community through programs such as parks and recreation, arts,
libraries, and other community providers; and
new text end

new text begin (3) cooperative arrangements for shared extracurricular activities, including having
the activities become the responsibility of the community recreational program.
new text end

new text begin (b) The task force shall consider creating new models of schools including
project-based learning schools, online learning schools in cooperation with other education
districts, service cooperatives or chartered schools, new grade 11 postsecondary models
in partnership with colleges and universities, prekindergarten through primary grades in
partnership with early childhood providers, and other models of schooling.
new text end

new text begin Subd. 6. new text end

new text begin Reporting. new text end

new text begin Each efficiency plus access task force shall file its initial
planning report with the commissioner no later than October 15, 2010. The report shall
include the basic information about the composition of the task force, including how input
to the task force will be obtained consistent with subdivision 4, paragraph (b). Each task
force shall complete its recommendations and file its report with the member school
boards and commissioner no later than December 1, 2011. The report shall include
recommendations pursuant to subdivision 5 and identify the financial impact of those
recommendations for at least fiscal years 2013 and 2014. Each school board shall file a
report with the commissioner regarding the actions it will take in response to the report
no later than March 15, 2012. The report shall also include the impact on other agencies
included in the task force planning.
new text end

Sec. 24.

Minnesota Statutes 2009 Supplement, section 123B.143, subdivision 1,
is amended to read:


Subdivision 1.

Contract; duties.

All districts maintaining a classified secondary
school must employ a superintendent who shall be an ex officio nonvoting member of the
school board. The authority for selection and employment of a superintendent must be
vested in the board in all cases. An individual employed by a board as a superintendent
shall have an initial employment contract for a period of time no longer than three years
from the date of employment. Any subsequent employment contract must not exceed a
period of three years. A board, at its discretion, may or may not renew an employment
contract. A board must not, by action or inaction, extend the duration of an existing
employment contract. Beginning 365 days prior to the expiration date of an existing
employment contract, a board may negotiate and enter into a subsequent employment
contract to take effect upon the expiration of the existing contract. A subsequent contract
must be contingent upon the employee completing the terms of an existing contract. If a
contract between a board and a superintendent is terminated prior to the date specified in
the contract, the board may not enter into another superintendent contract with that same
individual that has a term that extends beyond the date specified in the terminated contract.
A board may terminate a superintendent during the term of an employment contract for any
of the grounds specified in section 122A.40, subdivision 9 or 13. A superintendent shall
not rely upon an employment contract with a board to assert any other continuing contract
rights in the position of superintendent under section 122A.40. Notwithstanding the
provisions of sections 122A.40, subdivision 10 or 11, 123A.32, 123A.75, or any other law
to the contrary, no individual shall have a right to employment as a superintendent based
on order of employment in any district. If two or more districts enter into an agreement for
the purchase or sharing of the services of a superintendent, the contracting districts have
the absolute right to select one of the individuals employed to serve as superintendent
in one of the contracting districts and no individual has a right to employment as the
superintendent to provide all or part of the services based on order of employment in a
contracting district. The superintendent of a district shall perform the following:

(1) visit and supervise the schools in the district, report and make recommendations
about their condition when advisable or on request by the board;

(2) recommend to the board employment and dismissal of teachers;

(3) new text beginannually evaluate each school principal and assistant principal assigned
responsibility for supervising a school building within the district, consistent with section
123B.147, subdivision 3, paragraph (b);
new text end

new text begin (4) new text endsuperintend school grading practices and examinations for promotions;

deleted text begin (4)deleted text endnew text begin (5)new text end make reports required by the commissioner; and

deleted text begin (5)deleted text endnew text begin (6)new text end perform other duties prescribed by the board.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies beginning when a district next enters into or modifies a collective bargaining
agreement or by the 2011-2012 school year, whichever comes first.
new text end

Sec. 25.

Minnesota Statutes 2008, section 123B.147, subdivision 3, is amended to read:


Subd. 3.

Dutiesnew text begin; evaluationnew text end.

new text begin(a) new text endThe principal shall provide administrative,
supervisory, and instructional leadership services, under the supervision of the
superintendent of schools of the district and deleted text beginin accordance withdeleted text endnew text begin according tonew text end the policies,
rules, and regulations of the new text beginschool new text endboard deleted text beginof educationdeleted text end, for the planning, management,
operation, and evaluation of the education program of the building or buildings to which
the principal is assigned.

new text begin (b) To enhance principals' leadership skills and support and improve teachers'
teaching practices, the school board and the exclusive representative of the school
principals of the district must negotiate a plan for an annual evaluation of the school
principals and assistant principals assigned responsibility for supervising a school building
within the district. The annual evaluation process must:
new text end

new text begin (1) be designed to support and improve principals' instructional leadership
defined in the plan, organizational management, and professional development, and
strengthen principals' capacity in the areas of instruction, supervision, evaluation, and the
development of teachers and highly effective school organizations;
new text end

new text begin (2) include formative and summative evaluations;
new text end

new text begin (3) be consistent with the principals' job description, district long-term plans and
goals, and principals' own professional multiyear growth plans and goals;
new text end

new text begin (4) include on-the-job observations, team assessments and evaluations, and verbal
and written feedback on performance;
new text end

new text begin (5) require feedback from teachers, support staff, students, and parents;
new text end

new text begin (6) use longitudinal data on student academic growth as an evaluation component;
and
new text end

new text begin (7) be linked to professional development.
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 beginning when a district next enters into or modifies a collective bargaining
agreement or by the 2011-2012 school year, whichever comes first.
new text end

Sec. 26.

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 endnew text begin without an
approved affidavit by the commissioner prior to July 1, 2009, and
new 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 beginaffidavitdeleted text endnew 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. 27.

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 begincontactdeleted text endnew 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 beginaredeleted text endnew text begin may
only serve as
new 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 school
new 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. 28.

Minnesota Statutes 2009 Supplement, section 124D.10, subdivision 4a,
is amended to read:


Subd. 4a.

Conflict of interest.

(a) An individual deleted text beginis prohibited from servingdeleted text endnew text begin must
not serve
new text end as a member of the charter school board of directors if deleted text beginthedeleted text endnew text begin thatnew text end individual, an
immediate family member, or the individual's partner is an owner, new text beginan new text endemployee or agent
of, or a contractornew text begin who contractsnew text end with a for-profit or nonprofit entitynew text begin, or an individual, andnew text end
with whom the charter school contracts, directly or indirectly, for professional services,
goods, or facilities. A violation of this prohibition renders a contract voidable at the option
of the commissioner or the charter school board of directors. A member of a charter
school board of directors who violates this prohibition is individually liable to the charter
school for any damage caused by the violation.

(b) No member of the board of directors, employee, officer, or agent of a charter
school shall participate in selecting, awarding, or administering a contract if a conflict
of interest exists. A conflict exists when:

(1) the board member, employee, officer, or agent;

(2) the immediate family of the board member, employee, officer, or agent;

(3) the partner of the board member, employee, officer, or agent; or

(4) an organization that employs, or is about to employ any individual in clauses
(1) to (3),

has a financial or other interest in the entity with which the charter school is contracting.
A violation of this prohibition renders the contract void.

(c) Any employee, agent, or board member of the authorizer who participates
in the initial review, approval, ongoing oversight, evaluation, or the charter renewal or
nonrenewal process or decision is ineligible to serve on the board of directors of a school
chartered by that authorizer.

(d) An individual may serve as a member of the board of directors if no conflict of
interest under paragraph (a) exists.

(e) new text beginA charter school board member or employee may receive remuneration such as
a fee-for-service as part of a financial transaction involving a charter school only if the
remuneration is payment for services rendered that are in addition to the services the board
member or employee already agreed to provide to the charter school and the board of
directors formally approves the remuneration.
new text end

new text begin (f) new text endThe conflict of interest provisions under this subdivision do not apply to
compensation paid to a teacher employed by the charter school who also serves as a
member of the board of directors.

deleted text begin (f)deleted text end new text begin(g) new text endThe conflict of interest provisions under this subdivision do not apply to a
teacher who provides services to a charter school through a cooperative formed under
chapter 308A when the teacher also serves on the charter school board of directors.

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.

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 beginAn 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. 30.

Minnesota Statutes 2009 Supplement, section 124D.10, subdivision 11,
is amended to read:


Subd. 11.

Employment and other operating matters.

(a) A charter school must
employ or contract with necessary teachers, as defined by section 122A.15, subdivision
1
, who hold valid licenses to perform the particular service for which they are employed
in the school. The charter school's state aid may be reduced under section 127A.43
if the school employs a teacher who is not appropriately licensed or approved by the
board of teaching. The school may employ necessary employees who are not required to
hold teaching licenses to perform duties other than teaching and may contract for other
services. The school may discharge teachers and nonlicensed employees. The charter
school board is subject to section 181.932. When offering employment to a prospective
employee, a charter school must give that employee a written description of the terms and
conditions of employment and the school's personnel policies.new text begin The terms and conditions
of employment must include an annual teacher evaluation that is substantively consistent
with section 122A.40, subdivision 8, paragraph (b). Teacher evaluations do not create
an expectation of continuing employment.
new text end

(b) A person, without holding a valid administrator's license, may perform
administrative, supervisory, or instructional leadership duties. The board of directors shall
establish qualifications for persons that hold administrative, supervisory, or instructional
leadership roles. The qualifications shall include at least the following areas: instruction
and assessment; human resource and personnel management; financial management;
legal and compliance management; effective communication; and board, authorizer, and
community relationships. The board of directors shall use those qualifications as the
basis for job descriptions, hiring, and performance evaluationsnew text begin, substantively consistent
with section 123B.147, subdivision 3, paragraph (b),
new text end of those who hold administrative,
supervisory, or instructional leadership roles. new text beginPerformance evaluations do not create
an expectation of continuing employment.
new text endThe board of directors and an individual
who does not hold a valid administrative license and who serves in an administrative,
supervisory, or instructional leadership position shall develop a professional development
plan. Documentation of the implementation of the professional development plan of these
persons shall be included in the school's annual report.

(c) The board of directors also shall decide matters related to the operation of the
school, including budgeting, curriculum and operating procedures.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2011-2012 school year and
later.
new text end

Sec. 31.

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 beginunder 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 begincontained in the contractdeleted text endnew text begin
consistent with state law
new text end;

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

(3) deleted text beginrepeated 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. 32.

new text begin [124D.101] VACANT BUILDING INVENTORY.
new text end

new text begin The Department of Administration and the Department of Education annually shall
publish a list of state and district-owned buildings and parts of buildings that are vacant
and unused and that may be suitable for operating a charter school. The Department of
Education shall make the list available to charter school applicants and operators. The
list shall include the building address, a brief building description, and building name.
Nothing in this section requires a building owner to sell or lease a listed building or a part
of a building to a charter school, any other school, or any other prospective buyer or
tenant. School districts, upon request, must provide the Department of Education with the
information it needs to compile the vacant building list under this section.
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. 33.

Laws 2009, chapter 96, article 2, section 64, is amended to read:


Sec. 64. RESERVED REVENUE FOR STAFF DEVELOPMENT;
TEMPORARY SUSPENSION.

new text begin (a) new text endNotwithstanding Minnesota Statutes, section 122A.61, subdivision 1, for fiscal
years 2010 and 2011 only, a school district or charter school may use revenue reserved for
staff development under Minnesota Statutes, section 122A.61, subdivision 1, according
to the requirements of general education revenue under Minnesota Statutes, section
126C.13, subdivision 5.

new text begin (b) On June 30, 2010, a school district may permanently transfer any balance from
the reserved account for staff development to the undesignated general fund balance.
new text end

Sec. 34.

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 endAny 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. 35.

Laws 2009, chapter 96, article 2, section 67, subdivision 17, is amended to
read:


Subd. 17.

Education Planning and Assessment System (EPAS) program.

For
the Educational Planning and Assessment System (EPAS) program under Minnesota
Statutes, section 120B.128:

$
829,000
.....
2010
$
deleted text begin 829,000 deleted text end new text begin 638,000
new text end
.....
2011

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 July 1, 2010.
new text end

Sec. 36. new text beginIMPLEMENTING 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. 37. new text beginRULEMAKING 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. 38. new text beginDEPARTMENT OF EDUCATION.
new text end

new text begin Subdivision 1. new text end

new text begin Recess guidelines. new text end

new text begin The department is encouraged to develop
voluntary school district guidelines that promote high quality recess practices and foster
student behaviors that lead students to increase their activity levels, improve their social
skills, and misbehave less.
new text end

new text begin Subd. 2. new text end

new text begin Common course catalogue. new text end

new text begin The department is encouraged to include
in the Minnesota common course catalogue all district physical education classes and
physical education graduation requirements.
new text end

new text begin Subd. 3. new text end

new text begin Standards adoption. new text end

new text begin Notwithstanding Minnesota Statutes, sections
120B.021, subdivision 2, and 120B.023, any statutory criteria required when reviewing or
revising standards and benchmarks, any requirements governing the content of statewide
standards, and any other law to the contrary, the commissioner of education shall initially
adopt the most recent standards developed by the National Association for Sport and
Physical Education for physical education in kindergarten through grade 12.
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. 39. new text beginHEALTHY KIDS AWARDS PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Recognition. new text end

new text begin The healthy kids awards program rewards kindergarten
through grade 12 students for their nutritional well-being and physical activity. In addition
to the physical and nutritional education students receive in physical education classes,
the program is intended to integrate physical activity and nutritional education into
nonphysical education classes, recess, and extracurricular activities throughout the day.
Interested schools must agree to participate from October through May of each school year.
new text end

new text begin Subd. 2. new text end

new text begin School district participation. new text end

new text begin School districts annually by September
15 may submit to the commissioner of education a letter of intent to participate in a
healthy kids awards program from October to May during the current school year. The
commissioner must recognize on the school performance report card under Minnesota
Statutes, section 120B.36, those schools and districts that affirm to the commissioner, as
prescribed by the commissioner, that at least 75 percent of students in the school or district
are physically active for at least 60 minutes each school day. The time students spend
participating in a physical education class counts toward the daily 60-minute requirement.
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 beginning in the 2010-2011 school year and later.
new text end

Sec. 40. new text beginADVISORY TASK FORCE ON SCHOOL DESEGREGATION AND
INTEGRATION.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment; purpose; membership. new text end

new text begin (a) An advisory task force
on school desegregation and integration is established to develop recommendations and
legislation for the legislature on: (i) addressing the findings and recommendations in the
2005 Minnesota legislative auditor's report on school district integration revenue, (ii)
amending Minnesota's school desegregation rule, and (iii) specifying the purpose, use, and
allocation of integration revenue under Minnesota Statutes, section 124D.86. The task
force shall consist of education stakeholders interested in addressing school desegregation
and integration policies, integration revenue uses, and the academic achievement gap
among groups of students. The 17-member task force consists of the commissioner of
education or the commissioner's designee and the following:
new text end

new text begin (1) one member appointed by and serving at the pleasure of the Minnesota Indian
Affairs Council;
new text end

new text begin (2) one member appointed by and serving at the pleasure of the Council on
Asian-Pacific Minnesotans;
new text end

new text begin (3) one member appointed by and serving at the pleasure of the Council on Black
Minnesotans;
new text end

new text begin (4) one member appointed by and serving at the pleasure of the Chicano Latino
Affairs Council;
new text end

new text begin (5) three public members appointed by the speaker of the house who are currently
serving as school district superintendents, collaborative coordinators, or school board
members, with one public member from each of the following: an urban school district, a
suburban school district, and a rural school district, and where at least one of the three
public members is also from a metropolitan integration district;
new text end

new text begin (6) four current members of the house of representatives appointed by the speaker
of the house, with two from each political party, and where two members are from the
seven-county metropolitan area and two members are from rural Minnesota;
new text end

new text begin (7) three public members appointed by the senate Subcommittee on Committees of
the Committee on Rules and Administration who are currently serving as school district
superintendents, collaborative coordinators, or school board members, with one public
member from each of the following: an urban school district, a suburban school district,
and a rural school district, and where at least one of the three public members is also from
a rural integration collaborative district; and
new text end

new text begin (8) two current members of the senate appointed by the senate Subcommittee on
Committees of the Committee on Rules and Administration, with one from each political
party, and where one member is from the seven-county metropolitan area and the second
member is from rural Minnesota.
new text end

new text begin (b) Task force members shall be appointed by July 1, 2010. Task force members
shall be represented by the designated appointee of each named organization. The task
force shall seek input from nonmember organizations such as the Institute on Race and
Poverty, the Minneapolis Urban League, the Minnesota Minority Education Partnership,
the National Association for the Advancement of Colored People, and the Office of the
State Demographer, among other organizations whose expertise can help inform the
work of the task force.
new text end

new text begin (c) The commissioner of education shall convene the first meeting of the task force
by September 15, 2010. Task force members shall elect one member to serve as the
task force chair. The task force may invite representatives of other interested education
stakeholders and organizations to participate in task force meetings. The task force must
meet at least monthly.
new text end

new text begin (d) Upon request, the commissioner of education shall provide assistance to the
task force.
new text end

new text begin (e) Task force members do not receive compensation or reimbursement of expenses
from the task force for service on the task force.
new text end

new text begin Subd. 2. new text end

new text begin Duties; report. new text end

new text begin (a) The task force shall develop recommendations and
legislation for addressing the findings and recommendations in the 2005 Minnesota
legislative auditor's report on school district integration revenue, amending Minnesota's
school desegregation rule, and Minnesota Statutes, section 124D.86, governing the use
and allocation of integration revenue. These recommendations and legislation may
address but are not limited to:
new text end

new text begin (1) access to integrated and equitable learning environments that enhance
achievement and opportunities for all students;
new text end

new text begin (2) changing demographics among Minnesota students reflected in the increasing
numbers of students of color, new immigrants, and English language learners;
new text end

new text begin (3) cultural proficiency training for teachers;
new text end

new text begin (4) the impact of school choice laws on state and local school desegregation and
integration efforts; and
new text end

new text begin (5) financial and other resources that enable schools and school districts to provide
staff development training, magnet schools, and other interdistrict collaborative initiatives
that enhance student achievement.
new text end

new text begin (b) By January 15, 2011, the task force shall submit to the legislative committees
and divisions with jurisdiction over early childhood through grade 12 education policy
and finance a report and accompanying legislation that reflect the substance of the
recommendation of the task force.
new text end

new text begin Subd. 3. new text end

new text begin Expiration. new text end

new text begin The task force expires on January 16, 2011.
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. 41. new text beginASSESSMENT 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. 42. new text beginPERSISTENTLY LOWEST-ACHIEVING SCHOOL DESIGNATION;
FEDERAL SCHOOL IMPROVEMENT GRANTS.
new text end

new text begin For purposes of federal school improvement grants under the American Recovery
and Reinvestment Act, and unless the chief administrator of a school voluntarily agrees to
the designation in writing, the department must not use a school's high school graduation
rate as a basis to designate a high school chartered under Minnesota Statutes, section
124D.10, or an alternative learning program established under Minnesota Statutes, section
123A.05, to serve and reengage students who were expelled, dropped out, or are otherwise
not enrolled in school, among other students, as a persistently lowest-achieving school
if on December 15 at least 70 percent of the students who, at the time they enroll in the
school, are two or more years older than the average statewide age of other students
enrolled in the same grade, lack a sufficient number of high school credits to graduate on
time, or are otherwise eligible to participate in the graduation incentives 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
and applies retroactively from January 1, 2010.
new text end

Sec. 43. new text beginREPEALER.
new text end

new text begin Minnesota Statutes 2008, section 122A.24, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2010.
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 beginhaving a hearing impairment,
blindness, visual disability,
deleted text endnew text begin deaf or hard-of-hearing, blind or visually impaired, deafblind,
or having a
new text end speech or language impairment, new text begina new text endphysical deleted text begindisabilitydeleted text endnew text begin impairmentnew text end, other health
deleted text begin impairmentdeleted text endnew text begin disabilitynew text end, deleted text beginmentaldeleted text endnew text begin developmental cognitivenew text end disability, deleted text beginemotional/behavioraldeleted text endnew text begin an
emotional or behavioral
new text end disorder, specific learning disability, autismnew text begin spectrum disordernew text end,
traumatic brain injury, new text beginor severe new text endmultiple deleted text begindisabilitiesdeleted text endnew text begin impairmentsnew text end, deleted text beginor deafblind disabilitydeleted text endnew text begin
and
new 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 beginAs defineddeleted text endnew text begin Except as providednew text end in paragraph (b), every district must provide new text beginor
make available
new text endspecial deleted text begininstructiondeleted text endnew text begin educationnew text end and new text beginrelated new text endservices, either within the district
or in another district, for deleted text beginall childrendeleted text endnew 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 beginare residentsdeleted text endnew text begin is a residentnew text end of the district deleted text beginand who are disabled as
set forth in section 125A.02
deleted text endnew text begin from birth until that child becomes 21 years old or receives
a regular high school diploma, whichever comes first
new text end. deleted text beginFor purposes of state and federal
special education laws,
deleted text end The phrase "special deleted text begininstructiondeleted text endnew text begin educationnew text end and new text beginrelated new text endservices"
deleted text begin in the state Education Codedeleted text end means a free deleted text beginanddeleted text end appropriate public education provided to an
eligible child with deleted text begindisabilities and includes special education and related services defined
in the Individuals with Disabilities Education Act, subpart A, section 300.24
deleted text endnew text begin a disabilitynew text end.

(b) deleted text beginNotwithstanding 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 endnew 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 begininstructiondeleted text endnew text begin educationnew text end and new text beginrelated new text endservices to the school
district. deleted text beginDistricts 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 endhold a conciliation conference within new text begintwo 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 endten calendar days from the date the district receives deleted text beginadeleted text endnew text begin thenew text end
parent's objection deleted text beginto 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

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

(1) the district's intent to seek reimbursement from medical assistance or
MinnesotaCare for 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 1
new 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 begindetermine
which services are reimbursable and to seek timely reimbursement in a cost-effective
manner
deleted text endnew text begin access third-party payments for individualized education program health-related
services
new text end; or

(3) reallocate reimbursements for the benefit of students with deleted text beginspecial needsdeleted text endnew text begin
individualized education programs or individual family service plans
new 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 endnew 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 2008, section 125A.515, is amended by adding a
subdivision to read:


new text begin Subd. 3a. new text end

new text begin Students without a disability from other states. new text end

new text begin A school district need
not provide education services under this section to an out-of-state student without an
individualized education program who lacks a tuition agreement or other agreement by the
placing authority to pay for the services.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010, for fiscal years 2011
and later.
new text end

Sec. 10.

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


Subd. 2.

Programs.

new text beginThe Department of Education, through new text endthe 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. 11.

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 beginanddeleted text end the school performance report
cards under section 120B.36, subdivision 1new text begin, and relevant IDEA Parts B and C mandated
reporting data
new text end; deleted text beginand
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 endnew 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. 12.

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 beginwith hearing loss new text endwho 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. 13.

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


Subdivision 1.

deleted text beginTwo kindsdeleted text endnew text begin Admissionsnew text end.

deleted text beginThere 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. 14.

Minnesota Statutes 2009 Supplement, section 256B.0625, subdivision 26,
is amended to read:


Subd. 26.

Special education services.

(a) Medical assistance covers medical
services identified in a recipient's individualized education plan and covered under the
medical assistance state plan. Covered services include occupational therapy, physical
therapy, speech-language therapy, clinical psychological services, nursing services,
school psychological services, school social work services, personal care assistants
serving as management aides, assistive technology devices, transportation services,
health assessments, and other services covered under the medical assistance state plan.
Mental health services eligible for medical assistance reimbursement must be provided or
coordinated through a children's mental health collaborative where a collaborative exists if
the child is included in the collaborative operational target population. The provision or
coordination of services does not require that the individual education plan be developed
by the collaborative.

The services may be provided by a Minnesota school district that is enrolled as a
medical assistance provider or its subcontractor, and only if the services meet all the
requirements otherwise applicable if the service had been provided by a provider other
than a school district, in the following areas: medical necessity, physician's orders,
documentation, personnel qualifications, and prior authorization requirements. The
nonfederal share of costs for services provided under this subdivision is the responsibility
of the local school district as provided in section 125A.74. Services listed in a child's
individual education plan are eligible for medical assistance reimbursement only if those
services meet criteria for federal financial participation under the Medicaid program.

(b) Approval of health-related services for inclusion in the individual education plan
does not require prior authorization for purposes of reimbursement under this chapter.
The commissioner may require physician review and approval of the plan not more than
once annually or upon any modification of the individual education plan that reflects a
change in health-related services.

(c) Services of a speech-language pathologist provided under this section are covered
notwithstanding Minnesota Rules, part 9505.0390, subpart 1, item L, if the person:

(1) holds a masters degree in speech-language pathology;

(2) is licensed by the Minnesota Board of Teaching as an educational
speech-language pathologist; and

(3) either has a certificate of clinical competence from the American Speech and
Hearing Association, has completed the equivalent educational requirements and work
experience necessary for the certificate or has completed the academic program and is
acquiring supervised work experience to qualify for the certificate.

(d) Medical assistance coverage for medically necessary services provided under
other subdivisions in this section may not be denied solely on the basis that the same or
similar services are covered under this subdivision.

(e) The commissioner shall develop and implement package rates, bundled rates, or
per diem rates for special education services under which separately covered services are
grouped together and billed as a unit in order to reduce administrative complexity.

(f) The commissioner shall develop a cost-based payment structure for payment of
these services. new text beginOnly costs reported through designated Department of Education data
systems in distinct service categories may be included in the cost-based payment structure.
new text endThe commissioner shall reimburse claims submitted based on an interim rate, and shall
settle at a final rate once the department has determined it. The commissioner shall
notify the school district of the final rate. The school district has 60 days to appeal the
final rate. To appeal the final rate, the school district shall file a written appeal request
to the commissioner within 60 days of the date the final rate determination was mailed.
The appeal request shall specify (1) the disputed items and (2) the name and address of
the person to contact regarding the appeal.

(g) Effective July 1, 2000, medical assistance services provided under an individual
education plan or an individual family service plan by local school districts shall not count
against medical assistance authorization thresholds for that child.

(h) Nursing services as defined in section 148.171, subdivision 15, and provided
as an individual education plan health-related service, are eligible for medical assistance
payment if they are otherwise a covered service under the medical assistance program.
Medical assistance covers the administration of prescription medications by a licensed
nurse who is employed by or under contract with a school district when the administration
of medications is identified in the child's individualized education plan. The simple
administration of medications alone is not covered under medical assistance when
administered by a provider other than a school district or when it is not identified in the
child's individualized education plan.

Sec. 15.

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. 16. new text beginSPECIAL EDUCATION REPORT.
new text end

new text begin As the agency charged with administering and enforcing federal and state special
education laws and making special education aid payments, the Department of Education
must identify and report by February 15, 2011, to the committees of the house of
representatives and senate with primary jurisdiction over kindergarten through grade
12 education the specific circumstances under which a school district or other entity,
consistent with federal and state law, must provide special education and related services
to a child with a disability and thereby receives payment for providing the special
education and related services.
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. 17. new text beginTHIRD-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. 18. new text beginREVISOR'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. 19. 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 beginprogramdeleted text endnew 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 endnew text begin a capital expenditure health and safety revenuenew text end application deleted text beginfor aid and levydeleted text end by the
date determined by the commissioner. deleted text beginThe 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 beginprogramdeleted text endnew text begin
budget
new text end adopted new text beginand confirmed new text endby the school district boardnew text begin as being consistent with the
district's health and safety policy under subdivision 2
new text end. The deleted text beginprogramdeleted text endnew text begin budgetnew text end must include
the estimated costdeleted text begin, per building,deleted text end of the program new text beginper Uniform Financial Accounting and
Reporting Standards (UFARS) finance code,
new text endby 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 beginContents of programdeleted text endnew text begin Health and safety policynew text end.

new text beginTo qualify for health
and safety revenue,
new text enda deleted text begindistrictdeleted text endnew text begin school boardnew text end must adopt a health and safety deleted text beginprogramdeleted text endnew text begin policynew text end.
The deleted text beginprogramdeleted text endnew text begin policynew text end must include deleted text beginplans, where applicable, for hazardous substance
removal, fire and life safety code repairs, regulated facility and equipment violations,
and
deleted text endnew text begin provisions for implementing a health and safety program that complies withnew text end health,
safety, and environmental deleted text beginmanagement,deleted text endnew 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 the
deleted text endnew 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 beginasbestos from school
buildings or property owned or being acquired by the district, asbestos-related repairs,
deleted text endnew 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 endnew 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 endnew text begin; correction ofnew text end occupational
safety and health administration regulated deleted text beginfacility and equipmentdeleted text end hazardsdeleted text begin,deleted text endnew text begin;new text end indoor air
quality new text begininspections, investigations, and testing; new text endmold abatementdeleted text begin,deleted text endnew 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 endnew text begin; design, materials,
and installation of local exhaust ventilation systems, including required make up air for
controlling regulated hazardous substances; correction of
new text end Department of Health Food
Code deleted text beginanddeleted text endnew text begin violations; correction ofnew text end swimming pool hazards excluding depth correctiondeleted text begin,deleted text endnew 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 district
new text end. Testing and calibration activities are permitted for existing mechanical
ventilation systems at intervals no less than every five years. deleted text beginHealth 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 endnew text begin subdivision 6new text end, health and safety revenue must not be used new text beginto 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 endfor 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 endbuilding 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 endA 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 endnew 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 begindepartmentdeleted text endnew text begin commissionernew text end shall not new text beginmandate management assistance or new text endexclude
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.

new text begin [126C.75] FIBER OPTIC INFRASTRUCTURE GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Creation of accounts. new text end

new text begin Two public school fiber optic infrastructure
accounts are created, one in the general fund and one in the bond proceeds fund. Money
in these accounts may only be used for capital costs of fiber optic infrastructure for
eligible public school projects.
new text end

new text begin Subd. 2. new text end

new text begin Program purpose. new text end

new text begin The fiber optic infrastructure grant program is
established to provide the capital investment needed to bridge the gap between the federal
Schools and Libraries Program of the Universal Service Fund, commonly known as
"E-Rate," and the total cost of fiber optic infrastructure that will better public school
buildings to support 21st century learning capacity at each district school.
new text end

new text begin Subd. 3. new text end

new text begin General eligibility; state general obligation bond funds. new text end

new text begin Article XI,
section 5, clause (a), of the Minnesota Constitution requires that state general obligation
bonds be issued to finance only the acquisition or betterment of public land, buildings, and
other public improvements of a capital nature. The legislature has determined that many
fiber optic infrastructure projects will constitute betterments and capital improvements
within the meaning of the Minnesota Constitution and capital expenditures under generally
accepted accounting principles, and will be financed more efficiently and economically
under this section than by direct appropriations for specific projects.
new text end

new text begin Subd. 4. new text end

new text begin Definitions. new text end

new text begin For purposes of this section:
new text end

new text begin (1) "school district" means an independent, common, special, or intermediate school
district or a charter school.
new text end

new text begin (2) "fiber optic infrastructure" means the land, buildings, fiber optic connection
cable, and end point hardware, including routers and switches. It does not include
computers, telephones, or cameras.
new text end

new text begin Subd. 5. new text end

new text begin Grant program established. new text end

new text begin The commissioner shall make grants to
school districts for fiber optic infrastructure projects.
new text end

new text begin Subd. 6. new text end

new text begin Eligible costs for grants. new text end

new text begin (a) "Eligible cost" for use of state general
obligation bond fund money means the acquisition of land or permanent easements;
preparation of land on which the fiber optic infrastructure will be located, including
demolition of structures and remediation of any hazardous conditions on the land; and
predesign, design, acquisition, and installation of publicly owned fiber optic infrastructure
in this state with a useful life of at least ten years that supports public school district
facility operation, administration, and instruction; the unpaid principal on debt issued by
the school district for a fiber optic infrastructure project, or the amount necessary to pay in
a lump sum all lease payments due if payment results in the school district owning the fiber
optic infrastructure. All uses under this paragraph must be for publicly owned property.
new text end

new text begin (b) "Eligible cost" for use of any other source of money will be determined by
limitations imposed on that source, but may include the costs of leases and reimbursement
of the costs of purchase and installation of fiber optic infrastructure.
new text end

new text begin Subd. 7. new text end

new text begin Application. new text end

new text begin The commissioner must develop forms and procedures for
soliciting and reviewing applications for grants under this section. At a minimum, a school
district must include the following information in its application:
new text end

new text begin (1) a resolution adopted by its school board certifying that the money required to be
supplied by the school district to complete the project is available and committed;
new text end

new text begin (2) a detailed and specific description of the project and an estimate, along with
necessary supporting evidence, of the total costs for the project;
new text end

new text begin (3) an assessment of the need for and benefits of the project;
new text end

new text begin (4) a timeline indicating the major milestones of the project and their anticipated
completion dates; and
new text end

new text begin (5) any additional information or material the commissioner prescribes.
new text end

new text begin Subd. 8. new text end

new text begin Criteria for grants. new text end

new text begin The commissioner must develop the criteria that will
be used to award grants if grant applications exceed available resources.
new text end

new text begin Subd. 9. new text end

new text begin Cancellation of grant. new text end

new text begin If, five years after execution of a grant agreement,
the commissioner determines that the grantee has not proceeded in a timely manner with
implementation of the project funded, the commissioner must cancel the grant and the
grantee must repay to the commissioner all grant money paid to the grantee. Section
16A.642 applies to any appropriations made to the commissioner under this section that
have not been awarded to grantees.
new text end

new text begin Subd. 10. new text end

new text begin Report. new text end

new text begin By January 15 of each year, the commissioner must submit to
the commissioner of management and budget and the chairs of the legislative committees
or divisions with jurisdiction over education policy, education finance, and capital
investment, a list of the projects that have been funded with money under this program
during the preceding calendar year, as well as a list of those priority projects for which state
bond proceeds fund appropriations will be sought during that year's legislative session.
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. 3. new text beginHEALTH 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 beginparagraph (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 beginadeleted text endnew text begin an unsecurednew text end line of credit
agreement with a financial institution. The amount of credit available must not exceed deleted text begin95deleted text endnew text begin
380
new 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 begin45deleted text endnew 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 123B.75, is amended by adding a subdivision
to read:


new text begin Subd. 1a. new text end

new text begin Definition. new text end

new text begin For the purpose of this section, "school district tax settlement
revenue" means the current, delinquent, and manufactured home property tax receipts
collected by the county and distributed to the school district.
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 fiscal years 2010 and later.
new text end

Sec. 4.

Minnesota Statutes 2008, section 123B.75, subdivision 5, is amended to read:


Subd. 5.

Levy recognition.

(a) deleted text begin"School district tax settlement revenue" means the
current, delinquent, and manufactured home property tax receipts collected by the county
and distributed to the school district.
deleted text end

deleted text begin (b)deleted text end For fiscal deleted text beginyear 2004 and laterdeleted text end yearsnew text begin 2009 and 2010new text end, in June of each year, the
school district must recognize as revenue, in the fund for which the levy was made, the
lesser of:

(1) the sum of May, June, and July school district tax settlement revenue received in
that calendar year, plus general education aid according to section 126C.13, subdivision
4
, received in July and August of that calendar year; or

(2) the sum of:

(i) 31 percent of the referendum levy certified according to section 126C.17, in
calendar year 2000; and

(ii) the entire amount of the levy certified in the prior calendar year according to
section 124D.86, subdivision 4, for school districts receiving revenue under sections
124D.86, subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, new text beginparagraph
(a),
new text endand 3
, paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48,
subdivision 6
new text begin; plus
new text end

new text begin (iii) zero percent of the amount of the levy certified in the prior calendar year for the
school district's general and community service funds, plus or minus auditor's adjustments,
not including the levy portions that are assumed by the state, that remains after subtracting
the referendum levy certified according to section 126C.17 and the amount recognized
according to item (ii).
new text end

new text begin (b) For fiscal year 2011 and later years, in June of each year, the school district must
recognize as revenue, in the fund for which the levy was made, the lesser of:
new text end

new text begin (1) the sum of May, June, and July school district tax settlement revenue received in
that calendar year, plus general education aid according to section 126C.13, subdivision
4, received in July and August of that calendar year; or
new text end

new text begin (2) the sum of:
new text end

new text begin (i) the greater of 47.8 percent of the referendum levy certified according to section
126C.17, in the prior calendar year or 31 percent of the referendum levy certified
according to section 126C.17, in calendar year 2000; plus
new text end

new text begin (ii) the entire amount of the levy certified in the prior calendar year according to
section 124D.86, subdivision 4, for school districts receiving revenue under sections
124D.86, subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, and 3,
paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48, subdivision
6; plus
new text end

new text begin (iii) 47.8 percent of the amount of the levy certified in the prior calendar year for the
school district's general and community service funds, plus or minus auditor's adjustments,
not including the levy portions that are assumed by the state, that remains after subtracting
the referendum levy certified according to section 126C.17 and the amount recognized
according to clause (ii)
new text end.

Sec. 5.

Minnesota Statutes 2008, section 126C.54, is amended to read:


126C.54 REPAYMENT; MATURITY DATE OF CERTIFICATES; INTEREST.

new text begin (a) new text endThe proceeds of the current tax levies and future state aid receipts or other school
funds which may become available must be applied to the extent necessary to repay
such certificates and the full faith and credit of the district shall be pledged to payment
of the certificates. Certificates issued in anticipation of receipt of aids shall mature not
later than the anticipated date of receipt of the aids as estimated by the commissioner, but
in no event later than three months after the close of the school year in which issued.
Certificates issued in anticipation of receipt of taxes shall mature not later than the
anticipated date of receipt in full of the taxes, but in no event later than three months after
the close of the calendar year in which issued. The certificates must be sold at not less
than par. The certificates must bear interest after maturity until paid at the rate they bore
before maturity and any interest accruing before or after maturity must be paid from
any available school funds.

new text begin (b) Notwithstanding any contrary provision in paragraph (a), if the certificates are
issued as taxable obligations on which the interest is includable in gross income for federal
income tax purposes, certificates issued in anticipation of receipt of aids shall mature not
later than 12 months after the close of the school year in which issued and certificates
issued in anticipation of receipt of taxes shall mature not later than 12 months after the
close of the calendar year in which issued. Any certificate issued under this section with a
maturity in excess of 12 months must be repaid with money from the general fund.
new text end

Sec. 6.

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.43
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. 7.

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 beginwithhelddeleted text endnew 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. 8.

Minnesota Statutes 2008, section 127A.441, is amended to read:


127A.441 AID REDUCTION; LEVY REVENUE RECOGNITION CHANGE.

Each year, the state aids payable to any school district for that fiscal year that are
recognized as revenue in the school district's general and community service funds shall
be adjusted by an amount equal to (1) the amount the district recognized as revenue for the
prior fiscal year pursuant to section 123B.75, subdivision 5, paragraph new text begin(a) or new text end(b), minus (2)
the amount the district recognized as revenue for the current fiscal year pursuant to section
123B.75, subdivision 5, paragraph new text begin(a) or new text end(b). For purposes of making the aid adjustments
under this section, the amount the district recognizes as revenue for either the prior fiscal
year or the current fiscal year pursuant to section 123B.75, subdivision 5, paragraph (b),
shall not include any amount levied pursuant to section 124D.86, subdivision 4, for school
districts receiving revenue under sections 124D.86, subdivision 3, clauses (1), (2), and (3);
126C.41, subdivisions 1, 2, and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2;
126C.457; and 126C.48, subdivision 6. Payment from the permanent school fund shall not
be adjusted pursuant to this section. The school district shall be notified of the amount of
the adjustment made to each payment pursuant to this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to fiscal years 2010 and later.
new text end

Sec. 9.

Minnesota Statutes 2008, section 127A.45, subdivision 2, is amended to read:


Subd. 2.

Definitions.

(a) deleted text beginThe termdeleted text end "Other district receipts" means payments by
county treasurers pursuant to section 276.10, apportionments from the school endowment
fund pursuant to section 127A.33, apportionments by the county auditor pursuant to
section 127A.34, subdivision 2, and payments to school districts by the commissioner of
revenue pursuant to chapter 298.

(b) deleted text beginThe termdeleted text end "Cumulative amount guaranteed" means the product of

(1) the cumulative disbursement percentage shown in subdivision 3; times

(2) the sum of

(i) the current year aid payment percentage of the estimated aid and credit
entitlements paid according to subdivision 13; plus

(ii) 100 percent of the entitlements paid according to subdivisions 11 and 12; plus

(iii) the other district receipts.

(c) deleted text beginThe termdeleted text end "Payment date" means the date on which state payments to districts
are made by the electronic funds transfer method. If a payment date falls on a Saturday,
a Sunday, or a weekday which is a legal holiday, the payment shall be made on the
immediately preceding business day. The commissioner may make payments on dates
other than those listed in subdivision 3, but only for portions of payments from any
preceding payment dates which could not be processed by the electronic funds transfer
method due to documented extenuating circumstances.

(d) The current year aid payment percentage equals deleted text begin90deleted text endnew text begin 73new 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 fiscal years 2010 and later.
new text end

Sec. 10.

Minnesota Statutes 2008, section 127A.45, subdivision 3, is amended to read:


Subd. 3.

Payment dates and percentages.

(a) deleted text beginFor fiscal year 2004 and later,deleted text end The
commissioner shall pay to a district on the dates indicated an amount computed as follows:
the cumulative amount guaranteed minus the sum of deleted text begin(a)deleted text end new text begin(1) new text endthe district's other district
receipts through the current payment, and deleted text begin(b)deleted text end new text begin(2) new text endthe aid and credit payments through the
immediately preceding payment. For purposes of this computation, the payment dates and
the cumulative disbursement percentages are as follows:

Payment date
Percentage
Payment 1
July 15:
5.5
Payment 2
July 30:
8.0
Payment 3
August 15:
17.5
Payment 4
August 30:
20.0
Payment 5
September 15:
22.5
Payment 6
September 30:
25.0
Payment 7
October 15:
27.0
Payment 8
October 30:
30.0
Payment 9
November 15:
32.5
Payment 10
November 30:
36.5
Payment 11
December 15:
42.0
Payment 12
December 30:
45.0
Payment 13
January 15:
50.0
Payment 14
January 30:
54.0
Payment 15
February 15:
58.0
Payment 16
February 28:
63.0
Payment 17
March 15:
68.0
Payment 18
March 30:
74.0
Payment 19
April 15:
78.0
Payment 20
April 30:
85.0
Payment 21
May 15:
90.0
Payment 22
May 30:
95.0
Payment 23
June 20:
100.0

deleted text begin (b) In addition to the amounts paid under paragraph (a), for fiscal year 2004, the
commissioner shall pay to a district on the dates indicated an amount computed as follows:
deleted text end

deleted text begin Payment 3
deleted text end
deleted text begin August 15: the final adjustment for the prior fiscal year for the state paid
property tax credits established in section 273.1392
deleted text end
deleted text begin Payment 4
deleted text end
deleted text begin August 30: one-third of the final adjustment for the prior fiscal year for
all aid entitlements except state paid property tax credits
deleted text end
deleted text begin Payment 6
deleted text end
deleted text begin September 30: one-third of the final adjustment for the prior fiscal year
for all aid entitlements except state paid property tax credits
deleted text end
deleted text begin Payment 8
deleted text end
deleted text begin October 30: one-third of the final adjustment for the prior fiscal year for
all aid entitlements except state paid property tax credits
deleted text end

deleted text begin (c)deleted text endnew text begin (b)new text end In addition to the amounts paid under paragraph (a), deleted text beginfor fiscal year 2005 and
later,
deleted text end the commissioner shall pay to a district on the dates indicated an amount computed
as follows:

Payment 3
August 15: the final adjustment for the prior fiscal year for the state paid
property tax credits established in section 273.1392
Payment 4
August 30: 30 percent of the final adjustment for the prior fiscal year for
all aid entitlements except state paid property tax credits
Payment 6
September 30: 40 percent of the final adjustment for the prior fiscal year
for all aid entitlements except state paid property tax credits
Payment 8
October 30: 30 percent of the final adjustment for the prior fiscal year
for all aid entitlements except state paid property tax credits

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to fiscal years 2010 and later.
new text end

Sec. 11.

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


new text begin Subd. 6a. new text end

new text begin Cash flow adjustment. new text end

new text begin The board of directors of any charter school
serving fewer than 150 students where the percentage of students eligible for special
education services equals 100 percent of the charter school's total enrollment may request
that the commissioner of education accelerate the school's cash flow under this section.
The commissioner must approve a properly submitted request within 30 days of its receipt.
The commissioner must accelerate the school's regular special education aid payments
according to the schedule in the school's request and modify the payments to the school
under subdivision 3 accordingly. A school must not receive current payments of regular
special education aid exceeding 90 percent of its estimated aid entitlement for the fiscal
year. The commissioner must delay the special education aid payments to all other school
districts and charter schools in proportion to each district or charter school's total share
of regular special education aid such that the overall aid payment savings from the aid
payment shift remains unchanged for any fiscal year.
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 district or charter school payments made on or after that date.
new text end

Sec. 12.

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


new text begin Subd. 7b. new text end

new text begin Advance final payment. new text end

new text begin (a) Notwithstanding subdivisions 3 and 7,
a school district or charter school exceeding its expenditure limitations under section
123B.83 as of June 30 of the prior fiscal year may receive a portion of its final payment
for the current fiscal year on June 20, if requested by the district or charter school. The
amount paid under this subdivision must not exceed the lesser of:
new text end

new text begin (1) the difference between 90 percent and the current year payment percentage in
subdivision 2, paragraph (d), in the current fiscal year times the sum of the district or
charter school's general education aid plus the aid adjustment in section 127A.50 for
the current fiscal year; or
new text end

new text begin (2) the amount by which the district's or charter school's net negative unreserved
general fund balance as of June 30 of the prior fiscal year exceeds 2.5 percent of the
district or charter school's expenditures for that fiscal year.
new text end

new text begin (b) The state total advance final payment under this subdivision for any year must
not exceed $7,500,000. If the amount request exceeds $7,500,000, the advance final
payment for each eligible district must be reduced proportionately.
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 fiscal years 2010 and later.
new text end

Sec. 13.

Minnesota Statutes 2008, section 127A.45, subdivision 13, is amended to read:


Subd. 13.

Aid payment percentage.

Except as provided in subdivisions 11, 12, 12a,
and 14, each fiscal year, all education aids and credits in this chapter and chapters 120A,
120B, 121A, 122A, 123A, 123B, 124D, 125A, 125B, 126C, 134, and section 273.1392,
shall be paid at the current year aid payment percentage of the estimated entitlement during
the fiscal year of the entitlement. deleted text beginFor the purposes of this subdivision, a district's estimated
entitlement for special education excess cost aid under section 125A.79 for fiscal year
2005 equals 70 percent of the district's entitlement for the second prior fiscal year.
deleted text end For the
purposes of this subdivision, a district's estimated entitlement for special education excess
cost aid under section 125A.79 for fiscal year 2006 and later equals 74.0 percent of the
district's entitlement for the current fiscal year. The final adjustment payment, according
to subdivision 9, must be the amount of the actual entitlement, after adjustment for actual
data, minus the payments made during the fiscal year of the entitlement.

Sec. 14.

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. 15. new text beginFUND TRANSFERS.
new text end

new text begin Subdivision 1. new text end

new text begin Fiscal years 2010 and 2011 only. new text end

new text begin (a) Notwithstanding Minnesota
Statutes, section 123B.80, subdivision 3, for fiscal years 2010 and 2011 only, the
commissioner must approve a request for a fund transfer if the transfer does not increase
state aid obligations to the district or result in additional property tax authority for the
district. This section does not permit transfers from the community service fund.
new text end

new text begin (b) A school board may approve a fund transfer under paragraph (a) only after
adopting a resolution stating the fund transfer will not diminish instructional opportunities
for students.
new text end

new text begin Subd. 2. 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.
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. 16. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, section 127A.46, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 6

STATE AGENCIES

Section 1.

Minnesota Statutes 2008, section 3.303, is amended by adding a subdivision
to read:


new text begin Subd. 11. new text end

new text begin Permanent school fund land management analyst. new text end

new text begin The commission
shall undertake activities that are necessary to advise the legislature and to monitor the
executive branch on issues related to the management of permanent school fund lands.
The commission may hire a lead analyst and other staff as necessary for this purpose. The
commission shall:
new text end

new text begin (1) monitor management of permanent school fund lands;
new text end

new text begin (2) analyze the benefits derived from the fund;
new text end

new text begin (3) actively participate in the work of the permanent school fund advisory committee
under section 127A.30;
new text end

new text begin (4) provide oversight to ensure that the state fulfills its fiduciary responsibilities to
the permanent school fund as specified by the Minnesota Constitution and Minnesota
Statutes; and
new text end

new text begin (5) make effective recommendations to the permanent school fund advisory
committee and the finance divisions and committees of the house of representatives and
the senate.
new text end

new text begin The purpose of this function is to maximize the long-term economic returns to the
school trust lands consistent with the goals of section 127A.31.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

Sec. 2.

Minnesota Statutes 2008, section 16A.125, subdivision 5, is amended to read:


Subd. 5.

Forest trust lands.

(a) The term "state forest trust fund lands" as used
in this subdivision, means public land in trust under the Constitution set apart as "forest
lands under the authority of the commissioner" of natural resources as defined by section
89.001, subdivision 13.

(b) The commissioner of management and budget shall credit the revenue from the
forest trust fund lands to the forest suspense account. The account must specify the trust
funds interested in the lands and the respective receipts of the lands.

(c) After a fiscal year, the commissioner of management and budget shall certify the
total costs incurred for forestry during that year under appropriations for the protection,
improvement, administration, and management of state forest trust fund lands and
construction and improvement of forest roads to enhance the forest value of the lands.
The certificate must specify the trust funds interested in the lands. The commissioner of
natural resources shall supply the commissioner of management and budget with the
information needed for the certificate.

(d) After a fiscal year, the commissioner shall distribute the receipts credited to the
suspense account during that fiscal year as follows:

(1) the amount of the certified costs incurred by the state for forest management,
forest improvement, and road improvement during the fiscal year shall be transferred to
the forest management investment account established under section 89.039new text begin, including
the costs associated with the Legislative Coordinating Commission's permanent school
fund land management activities
new text end;

(2) the balance of the certified costs incurred by the state during the fiscal year
shall be transferred to the general fund; and

(3) the balance of the receipts shall then be returned prorated to the trust funds in
proportion to their respective interests in the lands which produced the receipts.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

Sec. 3.

Minnesota Statutes 2008, section 127A.30, subdivision 2, is amended to read:


Subd. 2.

Duties.

The advisory committeenew text begin, in conjunction with the Legislative
Coordinating Commission,
new text end shall review the policies of the Department of Natural
Resources and current statutes on management of school trust fund lands at least annually
and shall recommend necessary changes in statutes, policy, and implementation in order to
ensure provident utilization of the permanent school fund lands. By January 15 of each
year, the advisory committee shall submit a report to the legislature with recommendations
for the new text beginoversight and new text endmanagement of school trust lands to secure long-term economic
return for the permanent school fund, consistent with sections 92.121 and 127A.31. The
committee's annual report may include recommendations to:

(1) manage the school trust lands efficiently;

(2) reduce the management expenditures of school trust lands and maximize the
revenues deposited in the permanent school trust fund;

(3) manage the sale, exchange, and commercial leasing of school trust lands to
maximize the revenues deposited in the permanent school trust fund and retain the value
from the long-term appreciation of the school trust lands; and

(4) manage the school trust lands to maximize the long-term economic return for the
permanent school trust fund while maintaining sound natural resource conservation and
management principles.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

Sec. 4. new text beginDEPARTMENT OF EDUCATION; APPROPRIATIONS.
new text end

new text begin (a) The appropriation to the Department of Education under Laws 2009, chapter
96, article 7, section 3, subdivision 2, is reduced by $250,000 in fiscal year 2010 and
by $487,000 in fiscal year 2011.
new text end

new text begin (b) $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 (c) The base appropriation for the Department of Education for fiscal year 2012
and later is $18,583,000.
new text end

new text begin (d) The appropriations for fiscal year 2011 under Laws 2009, chapter 96, article 7,
section 3, subdivision 2, paragraphs (b) and (g), are reduced by $4,000 for the Minnesota
Children's Museum and by $1,000 for the Duluth Children's Museum respectively.
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. 5. new text beginPERPICH 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

ARTICLE 7

PUPIL TRANSPORTATION

Section 1.

Minnesota Statutes 2008, section 123B.88, subdivision 13, is amended to
read:


Subd. 13.

Area learning center pupilsnew text begin; transport between buildingsnew text end.

Districts
may provide bus transportationnew text begin between buildingsnew text end along school bus routes when space is
available, for pupils attending programs at an area learning center. The transportation is
deleted text begin onlydeleted text end permitted between schools deleted text beginanddeleted text end if it does not increase the district's expenditures for
transportation. The cost of these services shall be considered part of the authorized cost
deleted text begin for nonregular transportationdeleted text end for the purpose of section 123B.92.

Sec. 2.

Minnesota Statutes 2008, section 123B.90, subdivision 3, is amended to read:


Subd. 3.

Model training program.

The commissioner shall develop new text beginand maintain new text enda
comprehensive deleted text beginmodeldeleted text endnew text begin list ofnew text end school bus safety training deleted text beginprogramdeleted text end new text begininstructional materials
new text endfor pupils who ride the bus that includes bus safety curriculum for both classroom and
practical instruction deleted text beginand age-appropriate instructional materialsdeleted 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.

Minnesota Statutes 2009 Supplement, section 123B.92, subdivision 1, is
amended to read:


Subdivision 1.

Definitions.

For purposes of this section and section 125A.76, the
terms defined in this subdivision have the meanings given to them.

(a) "Actual expenditure per pupil transported in the regular and excess transportation
categories" means the quotient obtained by dividing:

(1) the sum of:

(i) all expenditures for transportation in the regular category, as defined in paragraph
(b), clause (1), and the excess category, as defined in paragraph (b), clause (2), plus

(ii) an amount equal to one year's depreciation on the district's school bus fleet
and mobile units computed on a straight line basis at the rate of 15 percent per year for
districts operating a program under section 124D.128 for grades 1 to 12 for all students in
the district and 12-1/2 percent per year for other districts of the cost of the fleet, plus

(iii) an amount equal to one year's depreciation on the district's type III vehicles, as
defined in section 169.011, subdivision 71, which must be used a majority of the time for
pupil transportation purposes, computed on a straight line basis at the rate of 20 percent
per year of the cost of the type three school buses by:

(2) the number of pupils eligible for transportation in the regular category, as defined
in paragraph (b), clause (1), and the excess category, as defined in paragraph (b), clause (2).

(b) "Transportation category" means a category of transportation service provided to
pupils as follows:

(1) Regular transportation is:

(i) transportation to and from school during the regular school year for resident
elementary pupils residing one mile or more from the public or nonpublic school they
attend, and resident secondary pupils residing two miles or more from the public
or nonpublic school they attend, excluding desegregation transportation and noon
kindergarten transportation; but with respect to transportation of pupils to and from
nonpublic schools, only to the extent permitted by sections 123B.84 to 123B.87;

(ii) transportation of resident pupils to and from language immersion programs;

(iii) transportation of a pupil who is a custodial parent and that pupil's child between
the pupil's home and the child care provider and between the provider and the school, if
the home and provider are within the attendance area of the school;

(iv) transportation to and from or board and lodging in another district, of resident
pupils of a district without a secondary school; and

(v) transportation to and from school during the regular school year required under
subdivision 3 for nonresident elementary pupils when the distance from the attendance
area border to the public school is one mile or more, and for nonresident secondary pupils
when the distance from the attendance area border to the public school is two miles or
more, excluding desegregation transportation and noon kindergarten transportation.

For the purposes of this paragraph, a district may designate a licensed day care
facility, school day care facility, respite care facility, the residence of a relative, deleted text beginordeleted text end the
residence of a person chosen by the pupil's parent or guardiannew text begin, or an after-school program
for children operated by a political subdivision of the state,
new text end as the home of a pupil for part
or all of the day, if requested by the pupil's parent or guardian, and if that facility deleted text beginordeleted text endnew text begin,new text end
residencenew text begin, or programnew text end is within the attendance area of the school the pupil attends.

(2) Excess transportation is:

(i) transportation to and from school during the regular school year for resident
secondary pupils residing at least one mile but less than two miles from the public or
nonpublic school they attend, and transportation to and from school for resident pupils
residing less than one mile from school who are transported because of extraordinary
traffic, drug, or crime hazards; and

(ii) transportation to and from school during the regular school year required under
subdivision 3 for nonresident secondary pupils when the distance from the attendance area
border to the school is at least one mile but less than two miles from the public school
they attend, and for nonresident pupils when the distance from the attendance area border
to the school is less than one mile from the school and who are transported because of
extraordinary traffic, drug, or crime hazards.

(3) Desegregation transportation is transportation within and outside of the district
during the regular school year of pupils to and from schools located outside their normal
attendance areas under a plan for desegregation mandated by the commissioner or under
court order.

(4) "Transportation services for pupils with disabilities" is:

(i) transportation of pupils with disabilities who cannot be transported on a regular
school bus between home or a respite care facility and school;

(ii) necessary transportation of pupils with disabilities from home or from school to
other buildings, including centers such as developmental achievement centers, hospitals,
and treatment centers where special instruction or services required by sections 125A.03
to 125A.24, 125A.26 to 125A.48, and 125A.65 are provided, within or outside the district
where services are provided;

(iii) necessary transportation for resident pupils with disabilities required by sections
125A.12, and 125A.26 to 125A.48;

(iv) board and lodging for pupils with disabilities in a district maintaining special
classes;

(v) transportation from one educational facility to another within the district for
resident pupils enrolled on a shared-time basis in educational programs, and necessary
transportation required by sections 125A.18, and 125A.26 to 125A.48, for resident pupils
with disabilities who are provided special instruction and services on a shared-time basis
or if resident pupils are not transported, the costs of necessary travel between public
and private schools or neutral instructional sites by essential personnel employed by the
district's program for children with a disability;

(vi) transportation for resident pupils with disabilities to and from board and lodging
facilities when the pupil is boarded and lodged for educational purposes; deleted text beginand
deleted text end

(vii)new text begin transportation of pupils for a curricular field trip activity on a school bus
equipped with a power lift when the power lift is required by a student's disability or
section 504 plan; and
new text end

new text begin (viii) new text end services described in clauses (i) to deleted text begin(vi)deleted text endnew text begin (vii)new text end, when provided for pupils with
disabilities in conjunction with a summer instructional program that relates to the pupil's
individual education plan or in conjunction with a learning year program established
under section 124D.128.

For purposes of computing special education initial aid under section 125A.76,
subdivision 2
, the cost of providing transportation for children with disabilities includes
(A) the additional cost of transporting a homeless student from a temporary nonshelter
home in another district to the school of origin, or a formerly homeless student from a
permanent home in another district to the school of origin but only through the end of the
academic year; and (B) depreciation on district-owned school buses purchased after July 1,
2005, and used primarily for transportation of pupils with disabilities, calculated according
to paragraph (a), clauses (ii) and (iii). Depreciation costs included in the disabled
transportation category must be excluded in calculating the actual expenditure per pupil
transported in the regular and excess transportation categories according to paragraph (a).

(5) "Nonpublic nonregular transportation" is:

(i) transportation from one educational facility to another within the district for
resident pupils enrolled on a shared-time basis in educational programs, excluding
transportation for nonpublic pupils with disabilities under clause (4);

(ii) transportation within district boundaries between a nonpublic school and a
public school or a neutral site for nonpublic school pupils who are provided pupil support
services pursuant to section 123B.44; and

(iii) late transportation home from school or between schools within a district for
nonpublic school pupils involved in after-school activities.

(c) "Mobile unit" means a vehicle or trailer designed to provide facilities for
educational programs and services, including diagnostic testing, guidance and counseling
services, and health services. A mobile unit located off nonpublic school premises is a
neutral site as defined in section 123B.41, subdivision 13.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal years 2011
and later.
new text end

Sec. 4.

Minnesota Statutes 2008, section 123B.92, subdivision 5, is amended to read:


Subd. 5.

District reports.

(a) Each district must report data to the department as
required by the department to account for transportation expenditures.

(b) Salaries and fringe benefits of district employees whose primary duties are
other than transportation, including central office administrators and staff, building
administrators and staff, teachers, social workers, school nurses, and instructional aides,
must not be included in a district's transportation expenditures, except that a district may
include salaries and benefits according to paragraph (c) for (1) an employee designated
as the district transportation director, (2) an employee providing direct support to the
transportation director, or (3) an employee providing direct transportation services such as
a bus driver or bus aide.

(c) Salaries and fringe benefits of the district employees listed in paragraph (b),
clauses (1), (2), and (3), who work part time in transportation and part time in other areas
must not be included in a district's transportation expenditures unless the district maintains
documentation of the employee's time spent on pupil transportation matters in the form
and manner prescribed by the department.

(d) Pupil transportation expenditures, excluding expenditures for capital outlay,
leased buses, student board and lodging, crossing guards, and aides on buses, must
be allocated among transportation categories based on cost-per-mile, cost-per-student,
cost-per-hour, or cost-per-route, regardless of whether the transportation services are
provided on district-owned or contractor-owned school buses. Expenditures for school
bus driver salaries and fringe benefits may either be directly charged to the appropriate
transportation category or may be allocated among transportation categories based
on cost-per-mile, cost-per-student, cost-per-hour, or cost-per-route. Expenditures
by private contractors or individuals who provide transportation exclusively in one
transportation category must be charged directly to the appropriate transportation category.
Transportation services provided by contractor-owned school bus companies incorporated
under different names but owned by the same individual or group of individuals must be
treated as the same company for cost allocation purposes.

new text begin (e) Notwithstanding paragraph (d), districts contracting for transportation services
are exempt from the standard cost allocation method for authorized and nonauthorized
transportation categories if: (1) the district bids its contracts separately for authorized
and nonauthorized transportation categories and for special transportation separate from
regular and excess transportation; (2) the district receives bids or quotes from more
than one vendor for these transportation categories; and (3) the district's cost-per-mile,
cost-per-hour, or cost-per-route does not vary more than ten percent among categories,
excluding salaries and fringe benefits of bus aides. If the costs reported by the district
for contractor-owned operations vary by more than ten percent among categories, the
department shall require the district to reallocate its transportation costs, excluding salaries
and fringe benefits of bus aides, among all categories.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal years 2011
and later.
new text end

Sec. 5.

Minnesota Statutes 2008, section 169.447, subdivision 2a, is amended to read:


Subd. 2a.

Passenger lap and shoulder belts.

(a) In addition to the requirements in
section 169.4501, subdivision 1deleted text begin,deleted text endnew text begin:
new text end

new text begin (1)new text end a school bus may be equipped with an approved lap belt or an approved lap and
shoulder belt installed for each passenger-seating position on the busnew text begin; and
new text end

new text begin (2) a school motor coach manufactured after July 1, 2012, must be equipped with an
approved lap belt or an approved lap and shoulder belt installed for each passenger-seating
position
new text end.

new text begin (b) new text endThe design and installation of lap belts and lap and shoulder belts required
under deleted text beginthisdeleted text end paragraph new text begin(a) new text endmust meet the standards of the commissioner established undernew text begin
this
new text end paragraph deleted text begin(b)deleted text end.

deleted text begin (b)deleted text end The commissioner shall consider all concerns necessary to properly integrate
lap belts or lap and shoulder belts into the current compartmentalization safety system
and prescribe standards for the design and installation of lap and shoulder belts required
under paragraph (a). The standards are not subject to chapter 14 and are specifically not
subject to section 14.386.

(c) This subdivision does not apply to specially equipped school buses under section
169.4504.

(d) A passenger on a school busnew text begin or school motor coachnew text end equipped with lap belts
or lap and shoulder belts must use these lap belts or lap and shoulder belts unless the
passenger, or if the passenger is a minor, the passenger's parent or guardian, has notified
the school district in writing that the passenger does not intend to wear the lap belt or lap
and shoulder belt.

(e) In an action for personal injury or wrongful death against a school district, a
school busnew text begin or school motor coachnew text end operator under contract with a school district, or any
agent or employee of a school district or operator, or against a volunteer, no such person or
entity shall be held liable solely because the injured party was not wearing a safety belt;
provided, however, that nothing contained herein shall be construed to grant immunity
from liability for failure to:

(1) maintain in operating order any equipment required by statute, rule, or school
district policy; or

(2) comply with an applicable statute, rule, or school district policy.

(f) In an action for personal injury or wrongful death, a school district, a school
busnew text begin or school motor coachnew text end contract operator, any agent or employee of a school district or
operator, or a volunteer is not liable for failing to assist any child with the adjustment,
fastening, unfastening, or other use of the lap belt or lap and shoulder belt.

new text begin (g) For purposes of this subdivision, "school motor coach" means a bus that has an
elevated passenger deck located over a baggage compartment, when the vehicle is used
to transport pupils to or from school-related activities, by (1) the school or (2) someone
under an agreement with the school or a school district, including operation under charter
carrier authority.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end

Sec. 6.

Minnesota Statutes 2008, section 169.4503, is amended by adding a subdivision
to read:


new text begin Subd. 28. new text end

new text begin Crossing control arm. new text end

new text begin All buses manufactured for use in Minnesota after
January 1, 2013, shall be equipped with a crossing control arm mounted at the right front
corner of the bumper. The crossing control arm shall be automatically activated whenever
the bus is stopped with the flashing red signals in use.
new text end

Sec. 7.

Minnesota Statutes 2009 Supplement, section 171.02, subdivision 2b, is
amended to read:


Subd. 2b.

Exception for type III vehicle drivers.

(a) Notwithstanding subdivision
2, the holder of a class A, B, C, or D driver's license, without a school bus endorsement,
may operate a type III vehicle described in section 169.011, subdivision 71, paragraph (h),
under the conditions in paragraphs (b) through (o).

(b) The operator is an employee of the entity that owns, leases, or contracts for
the school bus.

(c) The operator's employer has adopted and implemented a policy that provides for
annual training and certification of the operator in:

(1) safe operation of a type III vehicle;

(2) understanding student behavior, including issues relating to students with
disabilities;

(3) encouraging orderly conduct of students on the bus and handling incidents of
misconduct appropriately;

(4) knowing and understanding relevant laws, rules of the road, and local school
bus safety policies;

(5) handling emergency situations;

(6) proper use of seat belts and child safety restraints;

(7) performance of pretrip vehicle inspections;

(8) safe loading and unloading of students, including, but not limited to:

(i) utilizing a safe location for loading and unloading students at the curb, on the
nontraffic side of the roadway, or at off-street loading areas, driveways, yards, and other
areas to enable the student to avoid hazardous conditions;

(ii) refraining from loading and unloading students in a vehicular traffic lane, on the
shoulder, in a designated turn lane, or a lane adjacent to a designated turn lane;

(iii) avoiding a loading or unloading location that would require a pupil to cross a
road, or ensuring that the driver or an aide personally escort the pupil across the road if
it is not reasonably feasible to avoid such a location; deleted text beginand
deleted text end

(iv) placing the type III vehicle in "park" during loading and unloading; and

new text begin (v) escorting a pupil across the road under clause (iii) only after the motor is
stopped, the ignition key is removed, the brakes are set, and the vehicle is otherwise
rendered immobile; and
new text end

(9) compliance with paragraph (k), concerning reporting certain convictions to the
employer within ten days of the date of conviction.

(d) A background check or background investigation of the operator has been
conducted that meets the requirements under section 122A.18, subdivision 8, or 123B.03
for school district employees; section 144.057 or chapter 245C for day care employees;
or section 171.321, subdivision 3, for all other persons operating a deleted text begintype A ordeleted text end type III
vehicle under this subdivision.

(e) Operators shall submit to a physical examination as required by section 171.321,
subdivision 2
.

(f) The operator's employer requires preemployment drug deleted text beginand alcoholdeleted text end testing of
applicants for operator positions. Current operators must comply with the employer's
policy under section 181.951, subdivisions 2, 4, and 5.new text begin Notwithstanding any law to the
contrary, the operator's employer may use a Breathalyzer or similar device to fulfill
random or reasonable suspicion alcohol testing requirements.
new text end

(g) The operator's driver's license is verified annually by the entity that owns,
leases, or contracts for the deleted text beginschool busdeleted text endnew text begin type III vehicle as required under section 171.321,
subdivision 5
new text end.

(h) A person who sustains a conviction, as defined under section 609.02, of violating
section 169A.25, 169A.26, 169A.27, or 169A.31, or whose driver's license is revoked
under sections 169A.50 to 169A.53 of the implied consent law, or who is convicted of
violating or whose driver's license is revoked under a similar statute or ordinance of
another state, is precluded from operating a type III vehicle for five years from the date
of conviction.

(i) A person who has ever been convicted of a disqualifying offense as defined in
section 171.3215, subdivision 1, paragraph (c), may not operate a type III vehicle under
this subdivision.

(j) A person who sustains a conviction, as defined under section 609.02, of a moving
offense in violation of chapter 169 within three years of the first of three other moving
offenses is precluded from operating a type III vehicle for one year from the date of
the last conviction.

(k) An operator who sustains a conviction as described in paragraph (h), (i), or (j)
while employed by the entity that owns, leases, or contracts for the school bus, shall report
the conviction to the employer within ten days of the date of the conviction.

(l) Students riding the type III vehicle must have training required under section
123B.90, subdivision 2.

(m) Documentation of meeting the requirements listed in this subdivision must be
maintained under separate file at the business location for each type III vehicle operator.
The business manager, school board, governing body of a nonpublic school, or any
other entity that owns, leases, or contracts for the type III vehicle operating under this
subdivision is responsible for maintaining these files for inspection.

(n) The type III vehicle must bear a current certificate of inspection issued under
section 169.451.

(o) An employee of a school or of a school district, who is not employed for the sole
purpose of operating a type III vehicle, is exempt from paragraphs (e) and (f).

new text begin (p) Notwithstanding any law to the contrary, any person who conducts testing under
paragraph (f) is exempt from section 181.953, subdivisions 9 and 10, paragraph (b).
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. 8.

Minnesota Statutes 2008, section 171.321, subdivision 2, is amended to read:


Subd. 2.

Rules.

(a) The commissioner of public safety shall prescribe rules
governing new text begin(1) new text endthe physical qualifications of school bus drivers and tests required to obtain
a school bus endorsementnew text begin and (2) the physical qualifications of type III vehicle driversnew text end.
new text begin The rules for physical qualifications of type III vehicle drivers are not subject to chapter
14 and section 14.386 does not apply.
new text end

new text begin (b) new text endThe rules new text beginunder paragraph (a) new text endmust provide that an applicant for a school
bus endorsement or renewal is exempt from the physical qualifications and medical
examination required to operate a school bus upon providing evidence of being medically
examined and certified within the preceding 24 months as physically qualified to operate a
commercial motor vehicle, pursuant to Code of Federal Regulations, title 49, part 391,
subpart E, or rules of the commissioner of transportation incorporating those federal
regulations. The commissioner shall accept physical examinations for school bus drivers
conducted by medical examiners authorized as provided by Code of Federal Regulations,
title 49, chapter 3, part 391, subpart E.

deleted text begin (b)deleted text endnew text begin (c)new text end The commissioner of public safety, in conjunction with the commissioner
of education, shall adopt rules prescribing a training program for Head Start bus drivers.
The program must provide for initial classroom and behind-the-wheel training, and annual
in-service training. The program must provide training in defensive driving, human
relations, emergency and accident procedures, vehicle maintenance, traffic laws, and use
of safety equipment. The program must provide that the training will be conducted by the
contract operator for a Head Start agency, the Head Start grantee, a licensed driver training
school, or by another person or entity approved by both commissioners.

new text begin (d) The commissioner may exempt a type III vehicle driver from the physical
qualifications required to operate a type III vehicle upon receiving evidence of the
driver having been medically examined and certified within the preceding 24 months as
physically qualified to operate a commercial motor vehicle as provided for applicants for a
school bus endorsement under paragraph (b).
new text end

ARTICLE 8

EDUCATION FINANCE REFORM

Section 1.

Minnesota Statutes 2008, section 123B.53, subdivision 5, is amended to read:


Subd. 5.

Equalized debt service levy.

(a) The equalized debt service levy of a
district equals the sum of the first tier equalized debt service levy and the second tier
equalized debt service levy.

(b) A district's first tier equalized debt service levy equals the district's first tier debt
service equalization revenue times the lesser of one or the ratio of:

(1) the quotient derived by dividing the adjusted net tax capacity of the district for
the year before the year the levy is certified by the adjusted pupil units in the district for
the school year ending in the year prior to the year the levy is certified; to

(2) deleted text begin$3,200deleted text endnew text begin 100 percent of the statewide adjusted net tax capacity equalizing factornew text end.

(c) A district's second tier equalized debt service levy equals the district's second tier
debt service equalization revenue times the lesser of one or the ratio of:

(1) the quotient derived by dividing the adjusted net tax capacity of the district for
the year before the year the levy is certified by the adjusted pupil units in the district for
the school year ending in the year prior to the year the levy is certified; to

(2) deleted text begin$8,000deleted text endnew text begin 200 percent of the statewide adjusted net tax capacity equalizing factornew text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2013 and later.
new text end

Sec. 2.

new text begin [123B.555] SCHOOL BOND AGRICULTURAL CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Eligibility. new text end

new text begin All class 2a, 2b, and 2c property under section 273.13,
subdivision 23, except for property consisting of the house, garage, and immediately
surrounding one acre of land of an agricultural homestead, is eligible to receive the credit
under this section.
new text end

new text begin Subd. 2. new text end

new text begin Credit amount. new text end

new text begin For each qualifying property, the school bond agricultural
credit is equal to 66 percent of the property's eligible net tax capacity multiplied by the
school debt tax rate determined under section 275.08, subdivision 1b.
new text end

new text begin Subd. 3. new text end

new text begin Credit reimbursements. new text end

new text begin The county auditor shall determine the tax
reductions allowed under this section within the county for each taxes payable year and
shall certify that amount to the commissioner of revenue as a part of the abstracts of tax
lists submitted under section 275.29. Any prior year adjustments shall also be certified on
the abstracts of tax lists. The commissioner shall review the certifications for accuracy,
and may make such changes as are deemed necessary, or return the certification to the
county auditor for correction. The credit under this section must be used to reduce the
school district net tax capacity-based property tax as provided in section 273.1393.
new text end

new text begin Subd. 4. new text end

new text begin Payment. new text end

new text begin The commissioner of revenue shall certify the total of the tax
reductions granted under this section for each taxes payable year within each school
district to the commissioner of education, who shall pay the reimbursement amounts to
each school district as provided in section 273.1392.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2013 and later.
new text end

Sec. 3.

Minnesota Statutes 2008, section 124D.4531, as amended by Laws 2009,
chapter 88, article 2, section 1, is amended to read:


124D.4531 CAREER AND TECHNICAL deleted text beginLEVYdeleted text endnew text begin AIDnew text end.

Subdivision 1.

Career and technical deleted text beginlevydeleted text endnew text begin aidnew text end.

(a) A district with a career and
technical program approved under this section deleted text beginfor the fiscal year in which the levy is
certified may levy an amount
deleted text end new text beginis eligible for aid new text endequal to the lesser of:

(1) deleted text begin$80deleted text end new text begin$240 new text endtimes the district's average daily membership in grades 10 through 12
for the new text begincurrent new text endfiscal year deleted text beginin which the levy is certifieddeleted text end; or

(2) 25 percent of approved expenditures in the new text beginprevious new text endfiscal year deleted text beginin which the
levy is certified
deleted text end for the following:

(i) salaries paid to essential, licensed personnel providing direct instructional
services to students in that fiscal year for services rendered in the district's approved
career and technical education programs;

(ii) contracted services provided by a public or private agency other than a Minnesota
school district or cooperative center under subdivision 7;

(iii) necessary travel between instructional sites by licensed career and technical
education personnel;

(iv) necessary travel by licensed career and technical education personnel for
vocational student organization activities held within the state for instructional purposes;

(v) curriculum development activities that are part of a five-year plan for
improvement based on program assessment;

(vi) necessary travel by licensed career and technical education personnel for
noncollegiate credit-bearing professional development; and

(vii) specialized vocational instructional supplies.

(b) Up to ten percent of a district's career and technical deleted text beginlevydeleted text end new text beginaid new text endmay be spent on
equipment purchases. Districts using the career and technical deleted text beginlevydeleted text end new text beginaid new text endfor equipment
purchases must report to the department on the improved learning opportunities for
students that result from the investment in equipment.

deleted text begin (c) The district must recognize the full amount of this levy as revenue for the fiscal
year in which it is certified.
deleted text end

Subd. 2.

Allocation from cooperative centers and intermediate districts.

For
purposes of this section, a cooperative center or an intermediate district must allocate its
approved expenditures for career and technical education programs among participating
districts.

Subd. 3.

deleted text beginLevydeleted text end new text beginAid new text endguarantee.

Notwithstanding subdivision 1, the career and
technical education deleted text beginlevydeleted text end new text beginaid new text endfor a district is not less than the lesser of:

(1) the district's career and technical education deleted text beginlevy authoritydeleted text end new text beginrevenue new text endfor the
previous fiscal year; or

(2) 100 percent of the approved expenditures for career and technical programs
included in subdivision 1, paragraph (b), for the new text beginprior new text endfiscal year deleted text beginin which the levy is
certified
deleted text end.

Subd. 4.

District reports.

Each district or cooperative center must report data to the
department for all career and technical education programs as required by the department
deleted text begin to implement the career and technical levy formuladeleted text end.

Subd. 5.

Allocation from districts participating in agreements for secondary
education or interdistrict cooperation.

For purposes of this section, a district with a
career and technical program approved under this section that participates in an agreement
under section 123A.30 or 123A.32 must allocate its levy authority under this section
among participating districts.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aid payments for fiscal year
2014 and thereafter.
new text end

Sec. 4.

Minnesota Statutes 2008, section 124D.59, subdivision 2, is amended to read:


Subd. 2.

Pupil of limited English proficiency.

(a) "Pupil of limited English
proficiency" means a pupil in kindergarten through grade 12 who meets the following
requirements:

(1) the pupil, as declared by a parent or guardian first learned a language other than
English, comes from a home where the language usually spoken is other than English, or
usually speaks a language other than English; and

(2) the pupil is determined by developmentally appropriate measures, which might
include observations, teacher judgment, parent recommendations, or developmentally
appropriate assessment instruments, to lack the necessary English skills to participate
fully in classes taught in English.

(b) Notwithstanding paragraph (a), a pupil in grades 4 through 12 who was enrolled
in a Minnesota public school on the dates during the previous school year when a
commissioner provided assessment that measures the pupil's emerging academic English
was administered, shall not be counted as a pupil of limited English proficiency in
calculating limited English proficiency pupil units under section 126C.05, subdivision
17
, and shall not generate state limited English proficiency aid under section 124D.65,
subdivision 5
, unless the pupil scored below the state cutoff score on an assessment
measuring emerging academic English provided by the commissioner during the previous
school year.

(c) Notwithstanding paragraphs (a) and (b), a pupil in kindergarten through grade 12
shall not be counted as a pupil of limited English proficiency in calculating limited English
proficiency pupil units under section 126C.05, subdivision 17, and shall not generate state
limited English proficiency aid under section 124D.65, subdivision 5, ifdeleted text begin:deleted text end

deleted text begin (1)deleted text end the pupil is not enrolled during the current fiscal year in an educational program
for pupils of limited English proficiency in accordance with sections 124D.58 to 124D.64deleted text begin;
or
deleted text endnew text begin.new text end

deleted text begin (2) the pupil has generated five or more years of average daily membership in
Minnesota public schools since July 1, 1996.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
new text end

Sec. 5.

Minnesota Statutes 2008, section 124D.65, subdivision 5, is amended to read:


Subd. 5.

School district LEP revenue.

(a) A district's limited English proficiency
programs revenue equals the product ofnew text begin:new text end (1) deleted text begin$700 in fiscal year 2004 and later timesdeleted text endnew text begin .2;new text end
(2) new text begin the basic formula allowance for that year; and (3) new text endthe greater of 20 or the adjusted
marginal cost average daily membership of eligible pupils of limited English proficiency
enrolled in the district during the current fiscal year.

(b) A pupil ceases to generate state limited English proficiency aid in the school
year following the school year in which the pupil attains the state cutoff score on a
commissioner-provided assessment that measures the pupil's emerging academic English.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
new text end

Sec. 6.

Minnesota Statutes 2008, section 125A.76, subdivision 5, is amended to read:


Subd. 5.

School district special education aid.

A school district's special education
aid deleted text beginfor fiscal year 2008 and laterdeleted text end equals deleted text beginthe state total special education aid times the ratio
of the district's
deleted text end new text beginits new text endinitial special education aid deleted text beginto the state total initial special education aiddeleted text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
new text end

Sec. 7.

Minnesota Statutes 2008, section 125A.79, subdivision 7, is amended to read:


Subd. 7.

District special education excess cost aid.

A district's special education
excess cost aid deleted text beginfor fiscal year 2002 and laterdeleted text end equals deleted text beginthe state total special education excess
cost aid times the ratio of the district's
deleted text endnew text begin itsnew text end initial excess cost aid deleted text beginto the state total initial
excess cost aid
deleted text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
new text end

Sec. 8.

Minnesota Statutes 2008, section 126C.01, is amended by adding a subdivision
to read:


new text begin Subd. 2a. new text end

new text begin Adjusted net tax capacity equalizing factor. new text end

new text begin The adjusted net tax
capacity equalizing factor equals the quotient derived by dividing the total adjusted net tax
capacity of all school districts in the state for the year before the year the levy is certified
by the total number of adjusted pupil units in the state for the current school year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2013 and later.
new text end

Sec. 9.

Minnesota Statutes 2008, section 126C.01, is amended by adding a subdivision
to read:


new text begin Subd. 3a. new text end

new text begin Referendum market value equalizing factor. new text end

new text begin The referendum market
value equalizing factor equals the quotient derived by dividing the total referendum
market value of all school districts in the state for the year before the year the levy is
certified by the total number of resident pupil units in the state for the current school year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2013.
new text end

Sec. 10.

Minnesota Statutes 2008, section 126C.01, is amended by adding a
subdivision to read:


new text begin Subd. 5a. new text end

new text begin Location equity index. new text end

new text begin (a) A school district's location equity index
equals each district's composite wage level divided by the statewide average wage for the
same period. The composite wage level for a school district equals the sum of 50 percent
of the district's county wage level and 50 percent of the district's economic development
region composite wage level. The composite wage level is computed by using the most
recent three-year weighted wage data.
new text end

new text begin (b) A school district's location equity index must not be less than .9 or greater than
1.05.
new text end

new text begin (c) The commissioner of education annually must recalculate the indexes in this
section. For purposes of this subdivision, the commissioner must locate a school district
with boundaries that cross county borders in the county that generates the highest location
equity index for that district.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
new text end

Sec. 11.

Minnesota Statutes 2008, section 126C.05, subdivision 1, is amended to read:


Subdivision 1.

Pupil unit.

Pupil units for each Minnesota resident pupil under the
age of 21 or who meets the requirements of section 120A.20, subdivision 1, paragraph (c),
in average daily membership enrolled in the district of residence, in another district under
sections 123A.05 to 123A.08, 124D.03, 124D.08, or 124D.68; in a charter school under
section 124D.10; or for whom the resident district pays tuition under section 123A.18,
123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, subdivision 4, 124D.04,
124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65, shall be counted according to this
subdivision.

(a) A prekindergarten pupil with a disability who is enrolled in a program approved
by the commissioner and has an individual education plan is counted as the ratio of the
number of hours of assessment and education service to 825 times 1.25 with a minimum
average daily membership of 0.28, but not more than 1.25 pupil units.

(b) A prekindergarten pupil who is assessed but determined not to be disabled is
counted as the ratio of the number of hours of assessment service to 825 times 1.25.

(c) A kindergarten pupil with a disability who is enrolled in a program approved
by the commissioner is counted as the ratio of the number of hours of assessment and
education services required in the fiscal year by the pupil's individual education program
plan to 875, but not more than one.

(d) A kindergarten pupil who is not included in paragraph (c) is counted as deleted text begin.612deleted text endnew text begin 1.0new text end
pupil units.

(e) A pupil who is in any of grades 1 to 3 is counted as deleted text begin1.115deleted text endnew text begin 1.0new text end pupil units for
fiscal year 2000 and thereafter.

(f) A pupil who is any of grades 4 to 6 is counted as deleted text begin1.06deleted text endnew text begin 1.0new text end pupil units for fiscal
year 1995 and thereafter.

(g) A pupil who is in any of grades 7 to 12 is counted as deleted text begin1.3deleted text endnew text begin 1.0new text end pupil units.

(h) A pupil who is in the postsecondary enrollment options program is counted as
deleted text begin 1.3deleted text endnew text begin 1.0new text end pupil units.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
new text end

Sec. 12.

Minnesota Statutes 2008, section 126C.05, subdivision 3, is amended to read:


Subd. 3.

Compensation revenue pupil units.

Compensation revenue pupil units
deleted text begin for fiscal year 1998 and thereafterdeleted text end must be computed according to this subdivision.

(a) The compensation revenue concentration percentage for each deleted text beginbuilding in adeleted text end
district equals the product of 100 times the ratio of:

(1) deleted text beginthe sum ofdeleted text end the number of pupils enrolled in the deleted text beginbuildingdeleted text endnew text begin districtnew text end eligible to receive
free deleted text beginlunch plus one-half of the pupils eligible to receive reduced priceddeleted text end new text beginor reduced-price
new text endlunch on October 1 of the previous fiscal year; to

(2) the number of pupils enrolled in the deleted text beginbuildingdeleted text endnew text begin districtnew text end on October 1 of the
previous fiscal year.

(b) The compensation revenue pupil weighting factor deleted text beginfor a buildingdeleted text end equals the
deleted text begin lesser of one or the quotient obtained by dividing the building'sdeleted text end compensation revenue
concentration percentage deleted text beginby 80.0deleted text end.

(c) The compensation revenue pupil units for a deleted text beginbuildingdeleted text endnew text begin districtnew text end equals the product of:

(1) deleted text beginthe sum ofdeleted text end the number of pupils enrolled in the deleted text beginbuildingdeleted text endnew text begin districtnew text end eligible to receive
free deleted text beginlunch and one-half of the pupils eligible to receive reduced priceddeleted text end new text beginor reduced-price
new text endlunch on October 1 of the previous fiscal year; times

(2) the compensation revenue pupil weighting factor for the deleted text beginbuilding; times
deleted text end

deleted text begin (3) .60deleted text endnew text begin districtnew text end.

(d) Notwithstanding paragraphs (a) to (c), for charter schools and contracted
alternative programs in the first year of operation, compensation revenue pupil units shall
be computed using data for the current fiscal year. If the charter school or contracted
alternative program begins operation after October 1, compensatory revenue pupil units
shall be computed based on pupils enrolled on an alternate date determined by the
commissioner, and the compensation revenue pupil units shall be prorated based on the
ratio of the number of days of student instruction to 170 days.

(e) The percentages in this subdivision must be based on the count of individual
pupils and not on a building average or minimum.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
new text end

Sec. 13.

Minnesota Statutes 2008, section 126C.05, subdivision 5, is amended to read:


Subd. 5.

Adjusted pupil units.

deleted text begin(a)deleted text end Adjusted pupil units for a district or charter
school means the sum of:

(1) the number of pupil units served, according to subdivision 7, plus

(2) pupil units according to subdivision 1 for whom the district or charter school
pays tuition under section 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488,
123B.88, subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65,
minus

(3) pupil units according to subdivision 1 for whom the district or charter school
receives tuition under section 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488,
123B.88, subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65.

deleted text begin (b) Adjusted marginal cost pupil units means the greater of:
deleted text end

deleted text begin (1) the sum of .77 times the pupil units defined in paragraph (a) for the current school
year and .23 times the pupil units defined in paragraph (a) for the previous school year; or
deleted text end

deleted text begin (2) the number of adjusted pupil units defined in paragraph (a) for the current school
year.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
new text end

Sec. 14.

Minnesota Statutes 2008, section 126C.05, subdivision 6, is amended to read:


Subd. 6.

Resident pupil units.

deleted text begin(a)deleted text end Resident pupil units for a district means the
number of pupil units according to subdivision 1 residing in the district.

deleted text begin (b) Resident marginal cost pupil units means the greater of:
deleted text end

deleted text begin (1) the sum of .77 times the pupil units defined in paragraph (a) for the current year
and .23 times the pupil units defined in paragraph (a) for the previous school year; or
deleted text end

deleted text begin (2) the number of resident pupil units defined in paragraph (a) for the current school
year.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
new text end

Sec. 15.

Minnesota Statutes 2008, section 126C.05, subdivision 8, is amended to read:


Subd. 8.

Average daily membership.

(a) Membership for pupils in grades
kindergarten through 12 and for prekindergarten pupils with disabilities shall mean the
number of pupils on the current roll of the school, counted from the date of entry until
withdrawal. The date of withdrawal shall mean the day the pupil permanently leaves
the school or the date it is officially known that the pupil has left or has been legally
excused. However, a pupil, regardless of age, who has been absent from school for 15
consecutive school days during the regular school year or for five consecutive school days
during summer school or intersession classes of flexible school year programs without
receiving instruction in the home or hospital shall be dropped from the roll and classified
as withdrawn. Nothing in this section shall be construed as waiving the compulsory
attendance provisions cited in section 120A.22. Average daily membership equals the
sum for all pupils of the number of days of the school year each pupil is enrolled in the
district's schools divided by the number of days the schools are in session. Days of
summer school or intersession classes of flexible school year programs are only included
in the computation of membership for pupils with a disability not appropriately served
primarily in the regular classroom. A student must not be counted as more than 1.2 pupils
in average daily membership under this section. When the initial total average daily
membership exceeds 1.2 for a pupil enrolled in more than one school district during the
fiscal year, each district's average daily membership must be reduced proportionately.

(b) A student must not be counted as more than one pupil in average daily
membership except for purposes of section 126C.10, subdivision 2a.

new text begin (c) For purposes of section 126C.10, subdivision 2a, only, a pupil's average daily
membership is counted as 1.0 once a kindergarten or elementary pupil has received 960
hours of instruction during the school year and as 1.0 once a secondary student has
received 1,050 hours of instruction during the school year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
new text end

Sec. 16.

Minnesota Statutes 2008, section 126C.05, subdivision 16, is amended to read:


Subd. 16.

Free and reduced-price lunches.

The commissioner shall determine the
number of children eligible to receive either a free or reduced-price lunch on October 1
each year. Children enrolled deleted text beginin a buildingdeleted text end on October 1 and determined to be eligible to
receive free or reduced-price lunch by December 15 of that school year shall be counted
as eligible on October 1 for purposes of subdivision 3. The commissioner may use
federal definitions for these purposes and may adjust these definitions as appropriate.
The commissioner may adopt reporting guidelines to assure accuracy of data counts and
eligibility. Districts shall use any guidelines adopted by the commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
new text end

Sec. 17.

Minnesota Statutes 2008, section 126C.05, subdivision 17, is amended to read:


Subd. 17.

LEP pupil units.

(a) Limited English proficiency pupil units deleted text beginfor fiscal
year 2004 and thereafter shall be determined according to this subdivision.
deleted text end

deleted text begin (b) The limited English proficiency concentration percentage for a district equals the
product of 100 times the ratio of:
deleted text end

deleted text begin (1)deleted text endnew text begin meansnew text end the number of eligible pupils of limited English proficiency in average
daily membership enrolled in the district during the current fiscal yeardeleted text begin; todeleted text endnew text begin.
new text end

deleted text begin (2) the number of pupils in average daily membership enrolled in the district.
deleted text end

deleted text begin (c) The limited English proficiency pupil units for each eligible pupil of limited
English proficiency in average daily membership equals the lesser of one or the quotient
obtained by dividing the limited English proficiency concentration percentage for the
pupil's district of enrollment by 11.5.
deleted text end

deleted text begin (d)deleted text endnew text begin (b)new text end Limited English proficiency pupil units shall be counted by the district of
enrollment.

deleted text begin (e)deleted text endnew text begin (c)new text end Notwithstanding paragraph deleted text begin(d)deleted text endnew text begin (b)new text end, for the purposes of this subdivision,
pupils enrolled in a cooperative or intermediate school district shall be counted by the
district of residence.

deleted text begin (f)deleted text endnew text begin (d)new text end For the purposes of this subdivision, the terms defined in section 124D.59
have the same meaning.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
new text end

Sec. 18.

new text begin [126C.09] EDUCATION FUNDING FRAMEWORK.
new text end

new text begin Subdivision 1. new text end

new text begin Basic formula framework; general classroom funding. new text end

new text begin The
general classroom funding for each school district equals the sum of the district's general
education basic revenue, extended time revenue, compensatory revenue, LEP revenue,
referendum replacement revenue, and special education revenue.
new text end

new text begin Subd. 2. new text end

new text begin District instructional services. new text end

new text begin A school district's instructional services
revenue equals the sum of its operating sparsity revenue, location equity revenue, and
declining enrollment revenue.
new text end

new text begin Subd. 3. new text end

new text begin District support services. new text end

new text begin A school district's support services revenue
equals the sum of its operating capital revenue, alternative facilities revenue, integration
revenue, and transportation revenue.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
new text end

Sec. 19.

Minnesota Statutes 2008, section 126C.10, subdivision 1, is amended to read:


Subdivision 1.

General education revenue.

new text begin(a) new text endFor fiscal year 2006 deleted text beginand laterdeleted text endnew text begin
through 2013
new text end, the general education revenue for each district equals the sum of the
district's basic revenue, extended time revenue, gifted and talented revenue, basic skills
revenue, training and experience revenue, secondary sparsity revenue, elementary sparsity
revenue, transportation sparsity revenue, total operating capital revenue, equity revenue,
alternative teacher compensation revenue, and transition revenue.

new text begin (b) For fiscal years 2014 and later, a school district's general education revenue
equals the sum of its basic revenue, extended time revenue, declining enrollment revenue,
basic skills revenue, location equity revenue, referendum replacement revenue, secondary
sparsity revenue, elementary sparsity revenue, transportation revenue, and total operating
capital revenue.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
new text end

Sec. 20.

Minnesota Statutes 2008, section 126C.10, subdivision 2, is amended to read:


Subd. 2.

Basic revenue.

new text begin(a) new text endThe basic revenue for each district equals the formula
allowance times the adjusted deleted text beginmarginal costdeleted text end pupil units for the school year.

new text begin (b) new text endThe formula allowance for fiscal year 2007 is $4,974. The formula allowance for
fiscal year 2008 is $5,074 and the formula allowance for fiscal year 2009 deleted text beginand subsequent
years
deleted text end is $5,124.

new text begin (c) The formula allowance for fiscal year 2014 is $7,500. The formula allowance
for fiscal year 2015 and later equals the formula allowance for the previous year times
the sum of 1.0 and the greater of zero or the ratio of implicit price deflator, as defined in
section 275.70, subdivision 2, for the most recent year to the implicit price deflator for
the previous year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
new text end

Sec. 21.

Minnesota Statutes 2008, section 126C.10, subdivision 2a, is amended to read:


Subd. 2a.

Extended time revenue.

(a) A school district's extended time revenue
is equal to the product of deleted text begin$4,601deleted text endnew text begin the formula allowance for that yearnew text end and the sum of
the adjusted deleted text beginmarginal costdeleted text end pupil units of the district for each pupil in average daily
membership in excess of 1.0 and less than 1.2 according to section 126C.05, subdivision 8.

(b) A school district's extended time revenue may be used for extended day
programs, extended week programs, summer school, and other programming authorized
under the learning year program.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
new text end

Sec. 22.

Minnesota Statutes 2008, section 126C.10, is amended by adding a
subdivision to read:


new text begin Subd. 2c. new text end

new text begin Declining enrollment revenue. new text end

new text begin A school district's declining enrollment
revenue equals the greater of zero or the product of: (1) the basic formula allowance for
that year; and (2) the difference between the mean average adjusted pupil units for the
three preceding years and the adjusted pupil units for the current year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
new text end

Sec. 23.

Minnesota Statutes 2008, section 126C.10, is amended by adding a
subdivision to read:


new text begin Subd. 2d. new text end

new text begin Location equity revenue. new text end

new text begin A school district's location equity revenue
equals the product of:
new text end

new text begin (1) .50;
new text end

new text begin (2) the basic formula allowance for that year;
new text end

new text begin (3) the district's adjusted pupil units for that year; and
new text end

new text begin (4) the district's location equity index minus .9.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
new text end

Sec. 24.

Minnesota Statutes 2008, section 126C.10, is amended by adding a
subdivision to read:


new text begin Subd. 2e. new text end

new text begin Referendum replacement revenue. new text end

new text begin A school district's referendum
replacement revenue equals $500 times the district's adjusted pupil units for that year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
new text end

Sec. 25.

Minnesota Statutes 2008, section 126C.10, subdivision 3, is amended to read:


Subd. 3.

Compensatory education revenue.

(a) The compensatory education
revenue for each deleted text beginbuilding in thedeleted text end district equals new text begin the greater of: (1) $2,500 times the district's
enrollment of students eligible for free or reduced-price meals under section 126C.05,
subdivision 3, paragraph (a), clause (1); or (2) 40 percent of
new text endthe formula allowance deleted text beginminus
$415
deleted text end times the compensation revenue pupil units computed according to section 126C.05,
subdivision 3
. Revenue shall be paid to the district and must be allocated according to
section 126C.15, subdivision 2.

(b) When the district contracting with an alternative program under section 124D.69
changes prior to the start of a school year, the compensatory revenue generated by pupils
attending the program shall be paid to the district contracting with the alternative program
for the current school year, and shall not be paid to the district contracting with the
alternative program for the prior school year.

(c) When the fiscal agent district for an area learning center changes prior to the start
of a school year, the compensatory revenue shall be paid to the fiscal agent district for the
current school year, and shall not be paid to the fiscal agent district for the prior school year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
new text end

Sec. 26.

Minnesota Statutes 2008, section 126C.10, subdivision 4, is amended to read:


Subd. 4.

Basic skills revenue.

A school district's basic skills revenue equals the
sum of:

(1) compensatory revenue under subdivision 3; plus

(2) limited English proficiency revenue under section 124D.65, subdivision 5deleted text begin; plusdeleted text endnew text begin.new text end

deleted text begin (3) $250 times the limited English proficiency pupil units under section 126C.05,
subdivision 17
.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
new text end

Sec. 27.

Minnesota Statutes 2008, section 126C.10, subdivision 6, is amended to read:


Subd. 6.

Definitions.

The definitions in this subdivision apply only to subdivisions
7 and 8.

(a) "High school" means a public secondary school, except a charter school under
section 124D.10, that has pupils enrolled in at least the 10th, 11th, and 12th grades. If
there is no high school in the district and the school is at least deleted text begin19deleted text endnew text begin 15new text end miles from the next
nearest school, the commissioner must designate one school in the district as a high school
for the purposes of this section.

(b) "Secondary average daily membership" means, for a district that has only one
high school, the average daily membership of pupils served in grades 7 through 12. For a
district that has more than one high school, "secondary average daily membership" for
each high school means the product of the average daily membership of pupils served in
grades 7 through 12 in the high school, times the ratio of six to the number of grades
in the high school.

(c) "Attendance area" means the total surface area of the district, in square miles,
divided by the number of high schools in the district. For a district that does not operate
a high school and is less than deleted text begin19deleted text endnew text begin 15new text end miles from the nearest operating high school, the
attendance area equals zero.

(d) "Isolation index" for a high school means the square root of 55 percent of the
attendance area plus the distance in miles, according to the usually traveled routes,
between the high school and the nearest high school. For a district in which there is located
land defined in section 84A.01, 84A.20, or 84A.31, the distance in miles is the sum of:

(1) the square root of one-half of the attendance area; and

(2) the distance from the border of the district to the nearest high school.

(e) "Qualifying high school" means a high school that has an isolation index greater
than 23 and that has secondary average daily membership of less than 400.

(f) "Qualifying elementary school" means a public elementary school, except a
charter school under section 124D.10, that is located deleted text begin19deleted text endnew text begin 15new text end miles or more from the nearest
elementary school or from the nearest elementary school within the district and, in either
case, has an elementary average daily membership of an average of 20 or fewer per grade.

(g) "Elementary average daily membership" means, for a district that has only
one elementary school, the average daily membership of pupils served in kindergarten
through grade 6. For a district that has more than one elementary school, "average daily
membership" for each school means the average daily membership of pupils served in
kindergarten through grade 6 multiplied by the ratio of seven to the number of grades
in the elementary school.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
new text end

Sec. 28.

Minnesota Statutes 2008, section 126C.10, subdivision 13, is amended to read:


Subd. 13.

Total operating capitalnew text begin and technologynew text end revenue.

(a) Total operating
capital revenue for a district equalsnew text begin: (1) $50 times the adjusted pupil units for the school
year for technology purposes; (2) for any district not participating in the alternative
facilities program under section 123B.59, $600 times the adjusted pupil units for deferred
maintenance and health and safety purposes under sections 123B.57 and 123B.59; (3)
new text end the
amount determined under paragraph (b) or (c)deleted text begin, plus $73deleted text endnew text begin; and (4) $100new text end times the adjusted
deleted text begin marginal costdeleted text end pupil units for the school year. The revenue must be placed in a reserved
account in the general fund and may only be used according to subdivision 14.

(b) Capital revenue for a district equals $100 times the district's maintenance cost
index times its adjusted deleted text beginmarginal costdeleted text end pupil units for the school year.

(c) The revenue for a district that operates a program under section 124D.128, is
increased by an amount equal to $30 times the number of deleted text beginmarginal costdeleted text endnew text begin adjustednew text end pupil
units served at the site where the program is implemented.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
new text end

Sec. 29.

Minnesota Statutes 2008, section 126C.10, subdivision 14, is amended to read:


Subd. 14.

Uses of total operating capital revenue.

new text beginTechnology revenue may only
be used for purposes in clauses (18), (19), (21), (23), and (24).
new text endTotal operating capital
revenue may be used only for the following purposes:

(1) to acquire land for school purposes;

(2) to acquire or construct buildings for school purposes;

(3) to rent or lease buildings, including the costs of building repair or improvement
that are part of a lease agreement;

(4) to improve and repair school sites and buildings, and equip or reequip school
buildings with permanent attached fixtures, including library media centers;

(5) for a surplus school building that is used substantially for a public nonschool
purpose;

(6) to eliminate barriers or increase access to school buildings by individuals with a
disability;

(7) to bring school buildings into compliance with the State Fire Code adopted
according to chapter 299F;

(8) to remove asbestos from school buildings, encapsulate asbestos, or make
asbestos-related repairs;

(9) to clean up and dispose of polychlorinated biphenyls found in school buildings;

(10) to clean up, remove, dispose of, and make repairs related to storing heating fuel
or transportation fuels such as alcohol, gasoline, fuel oil, and special fuel, as defined
in section 296A.01;

(11) for energy audits for school buildings and to modify buildings if the audit
indicates the cost of the modification can be recovered within ten years;

(12) to improve buildings that are leased according to section 123B.51, subdivision 4;

(13) to pay special assessments levied against school property but not to pay
assessments for service charges;

(14) to pay principal and interest on state loans for energy conservation according to
section 216C.37 or loans made under the Douglas J. Johnson Economic Protection Trust
Fund Act according to sections 298.292 to 298.298;

(15) to purchase or lease interactive telecommunications equipment;

(16) by board resolution, to transfer money into the debt redemption fund to: (i)
pay the amounts needed to meet, when due, principal and interest payments on certain
obligations issued according to chapter 475; or (ii) pay principal and interest on debt
service loans or capital loans according to section 126C.70;

(17) to pay operating capital-related assessments of any entity formed under a
cooperative agreement between two or more districts;

(18) to purchase or lease computers and related materials, copying machines,
telecommunications equipment, and other noninstructional equipment;

(19) to purchase or lease assistive technology or equipment for instructional
programs;

(20) to purchase textbooks;

(21) to purchase new and replacement library media resources or technology;

(22) to purchase vehicles;

(23) to purchase or lease telecommunications equipment, computers, and related
equipment for integrated information management systems for:

(i) managing and reporting learner outcome information for all students under a
results-oriented graduation rule;

(ii) managing student assessment, services, and achievement information required
for students with individual education plans; and

(iii) other classroom information management needs; and

(24) to pay personnel costs directly related to the acquisition, operation, and
maintenance of telecommunications systems, computers, related equipment, and network
and applications software.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014.
new text end

Sec. 30.

Minnesota Statutes 2008, section 126C.10, subdivision 18, is amended to read:


Subd. 18.

Transportation sparsity revenue allowance.

deleted text begin(a)deleted text end A district's
transportation sparsity allowance equals the greater of zero or the result of the following
computation:

(i) Multiply the formula allowance according to subdivision 2, by .1469.

(ii) Multiply the result in clause (i) by the district's sparsity index raised to the
26/100 power.

(iii) Multiply the result in clause (ii) by the district's density index raised to the
13/100 power.

(iv) Multiply the formula allowance according to subdivision 2, by .0485.

(v) Subtract the result in clause (iv) from the result in clause (iii).

deleted text begin (b) Transportation sparsity revenue is equal to the transportation sparsity allowance
times the adjusted marginal cost pupil units.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal year 2014 and later.
new text end

Sec. 31.

Minnesota Statutes 2008, section 126C.10, is amended by adding a
subdivision to read:


new text begin Subd. 18a. new text end

new text begin Transportation revenue. new text end

new text begin (a) A school district's transportation revenue
equals the sum of its transportation sparsity revenue, hazardous transportation revenue,
and bus purchase revenue.
new text end

new text begin (b) A school district's transportation sparsity revenue equals its transportation
sparsity allowance times its adjusted pupil units for that year.
new text end

new text begin (c) A school district's hazardous transportation aid equals the amount necessary to
provide transportation services to students facing hazardous transportation conditions. A
district's hazardous transportation aid must not exceed 20 percent of the district's total
regular to and from school transportation costs for that year. For any year, a school
district may receive aid under this paragraph only after the school board has considered
the comprehensive plan for hazardous transportation submitted by the district's pupil
transportation safety committee at a regularly scheduled meeting of the school board. The
comprehensive plan may not be adopted until after the board has allowed the public
reasonable time to testify on the plan.
new text end

new text begin (d) A school district's bus purchase revenue equals five percent of the district's
spending on transportation services for the previous fiscal year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
new text end

Sec. 32.

new text begin [126C.115] INNOVATION REVENUE.
new text end

new text begin (a) A school district must use its innovation revenue to implement evidence-based
innovation premised on research-based curriculum and instruction and other education
programs and practices, including best teaching practices, that are known to improve
academic performance for diverse groups of students. If a school district demonstrates
low growth and needs to improve students' current achievement and educational growth,
as measured by a growth-based value-added system under section 120B.35, the school
district must submit a plan to the commissioner, developed in consultation with interested
parents, that describes how the district proposes to use its innovation revenue to
supplement state reading requirements under section 120B.12, subdivision 1, and state
math and science requirements under section 120B.023, subdivision 2, paragraphs (b) and
(d), and improve student outcomes. The plan must:
new text end

new text begin (1) identify specific education goals, consistent with this section, and the indicators
to demonstrate progress toward achieving those goals, which may include a value-added
assessment model under sections 120B.35 and 120B.362;
new text end

new text begin (2) supplement current district initiatives that may transform district programs,
practices, and processes sufficient to significantly improve student outcomes, which
may include, among other initiatives, an organizational assessment and performance
improvement process under section 120B.3625; and
new text end

new text begin (3) demonstrate how innovation revenue helps narrow and eliminate differences in
student academic achievement in reading, math, and science based on student measures of
mobility, attendance, race and ethnicity, gender, English language learner status, eligibility
for free or reduced price lunch, and special education, among other outcomes.
new text end

new text begin (b) After transmitting its plan to the commissioner, a district must spend its
innovation revenue effectively and efficiently, consistent with its plan. A school district
that submits an innovation revenue plan under paragraph (a) must report annually by June
30 to the commissioner and post on the district's official Web site reliable and accessible
information and supporting longitudinal data showing the amount of progress the district
made in the immediately preceding school year and previous school years in realizing its
innovation revenue goals. The commissioner must analyze the data from the annual
district reports and post the analysis on the department's official Web site.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
new text end

Sec. 33.

Minnesota Statutes 2008, section 126C.13, subdivision 4, is amended to read:


Subd. 4.

General education aid.

deleted text beginFor fiscal years 2007 and later,deleted text end A district's general
education aid deleted text beginis the sum of the following amountsdeleted text endnew text begin equals itsnew text end:

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

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

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

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

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

deleted text begin (6)deleted text endnew text begin (2)new text end shared time aid under section 126C.01, subdivision 7;

deleted text begin (7)deleted text endnew text begin (3)new text end referendum aid under section 126C.17, subdivisions 7 and 7a; and

deleted text begin (8)deleted text endnew text begin (4)new text end online learning aid according to section 124D.096.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
new text end

Sec. 34.

Minnesota Statutes 2008, section 126C.13, subdivision 5, is amended to read:


Subd. 5.

Uses of revenue.

deleted text beginExcept as provided in sections 126C.10, subdivision
14
; 126C.12; and 126C.15,
deleted text endnew text begin (a)new text end General education revenue may be used during the
regular school year and the summer for general and special school purposesnew text begin and for
prekindergarten programs except as limited by paragraph (b)
new text end.

new text begin (b) General education revenue set-asides include:
new text end

new text begin (1) 1.0 percent of basic revenue must be used only for gifted and talented activities
consistent with section 120B.15;
new text end

new text begin (2) 5.0 percent of basic revenue must be used only to implement a district's
innovative revenue program activities under section 126C.115;
new text end

new text begin (3) basic skills revenue must be used according to section 126C.15; and
new text end

new text begin (4) operating capital revenue must be spent according to section 126C.10,
subdivision 14.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
new text end

Sec. 35.

Minnesota Statutes 2008, section 126C.17, subdivision 1, is amended to read:


Subdivision 1.

Referendum allowance.

deleted text begin (a) For fiscal year 2003 and later, a district's
initial referendum revenue allowance equals the sum of the allowance under section
126C.16, subdivision 2, plus any additional allowance per resident marginal cost pupil
unit authorized under subdivision 9 before May 1, 2001, for fiscal year 2002 and later,
plus the referendum conversion allowance approved under subdivision 13, minus $415.
For districts with more than one referendum authority, the reduction must be computed
separately for each authority. The reduction must be applied first to the referendum
conversion allowance and next to the authority with the earliest expiration date. A
district's initial referendum revenue allowance may not be less than zero.
deleted text end

deleted text begin (b) For fiscal year 2003, a district's referendum revenue allowance equals the initial
referendum allowance plus any additional allowance per resident marginal cost pupil unit
authorized under subdivision 9 between April 30, 2001, and December 30, 2001, for
fiscal year 2003 and later.
deleted text end

deleted text begin (c) For fiscal year 2004 and later,deleted text end A district's referendum revenue allowance equals
the sum of:

(1) the deleted text beginproduct of (i) the ratio of the resident marginal cost pupil units the district
would have counted for fiscal year 2004 under Minnesota Statutes 2002, section 126C.05,
to the district's resident marginal cost pupil units for fiscal year 2004, times (ii) the
deleted text endnew text begin greater
of zero or the district's
new text end initial referendum allowance deleted text beginplus any additional allowance per
resident marginal cost pupil unit authorized under subdivision 9 between April 30, 2001,
and May 30, 2003,
deleted text end for fiscal year deleted text begin2003 and laterdeleted text endnew text begin 2014 less $500new text end, plus

(2) any additional allowance per resident deleted text beginmarginal costdeleted text end pupil unit authorized under
subdivision 9 after May 30, deleted text begin2003deleted text endnew text begin 2012new text end, for fiscal year deleted text begin2005deleted text endnew text begin 2014new text end and later.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
new text end

Sec. 36.

Minnesota Statutes 2008, section 126C.17, subdivision 5, is amended to read:


Subd. 5.

Referendum equalization revenue.

(a) deleted text beginFor fiscal year 2003 and later,deleted text end
A district's referendum equalization revenue equals the sum of the first tier referendum
equalization revenue and the second tier referendum equalization revenue.

deleted text begin (b) A district's first tier referendum equalization revenue equals the district's first
tier referendum equalization allowance times the district's resident marginal cost pupil
units for that year.
deleted text end

deleted text begin (c) For fiscal year 2006, a district's first tier referendum equalization allowance
equals the lesser of the district's referendum allowance under subdivision 1 or $500. For
fiscal year 2007, a district's first tier referendum equalization allowance equals the lesser
of the district's referendum allowance under subdivision 1 or $600.
deleted text end

deleted text begin For fiscal year 2008 and later,deleted text endnew text begin (b) new text end A district's first tier referendum equalization
allowance equals the lesser of the district's referendum allowance under subdivision 1
or $700.

deleted text begin (d)deleted text endnew text begin (c)new text end A district's second tier referendum equalization revenue equals the district's
second tier referendum equalization allowance times the district's resident marginal cost
pupil units for that year.

deleted text begin (e) For fiscal year 2006, a district's second tier referendum equalization allowance
equals the lesser of the district's referendum allowance under subdivision 1 or 18.6 percent
of the formula allowance, minus the district's first tier referendum equalization allowance.
For fiscal year 2007 and later,
deleted text endnew text begin (d)new text end A district's second tier referendum equalization
allowance equals the lesser of the district's referendum allowance under subdivision 1 or
26 percent of the formula allowance, minus the district's first tier referendum equalization
allowance.

deleted text begin (f) deleted text endnew text begin (e) new text endNotwithstanding paragraph deleted text begin(e)deleted text endnew text begin (d)new text end, the second tier referendum allowance for a
district qualifying for secondary sparsity revenue under section 126C.10, subdivision 7, or
elementary sparsity revenue under section 126C.10, subdivision 8, equals the district's
referendum allowance under subdivision 1 minus the district's first tier referendum
equalization allowance.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014.
new text end

Sec. 37.

Minnesota Statutes 2008, section 126C.17, subdivision 6, is amended to read:


Subd. 6.

Referendum equalization levy.

(a) deleted text beginFor fiscal year 2003 and later,deleted text end
A district's referendum equalization levy equals the sum of the first tier referendum
equalization levy and the second tier referendum equalization levy.

(b) A district's first tier referendum equalization levy equals the district's first tier
referendum equalization revenue times the lesser of one or the ratio of the district's
referendum market value per resident marginal cost pupil unit to deleted text begin$476,000deleted text endnew text begin 100 percent of
the statewide referendum market value equalizing factor
new text end.

(c) A district's second tier referendum equalization levy equals the district's second
tier referendum equalization revenue times the lesser of one or the ratio of the district's
referendum market value per resident marginal cost pupil unit to deleted text begin$270,000deleted text endnew text begin 60 percent of
the statewide referendum market value equalizing factor
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014.
new text end

Sec. 38.

Minnesota Statutes 2008, section 126C.20, is amended to read:


126C.20 ANNUAL GENERAL EDUCATION AID APPROPRIATION.

There is annually appropriated from the general fund to the department the deleted text beginamountdeleted text endnew text begin
amounts
new text end necessary fornew text begin: (1)new text end general education aidnew text begin; (2) special education aid; (3) debt
service aid; and (4) the school bond agricultural credit
new text end. deleted text beginThis amountdeleted text endnew text begin These amountsnew text end must
be reduced by the amount of any money specifically appropriated for the same purpose
in any year from any state fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
new text end

Sec. 39.

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 deleted text beginpurposesdeleted text endnew text begin or
administrative purpose,
new text end 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 deleted text begin$43deleted text endnew text begin $50new text end 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), 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 purchase agreement for
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 EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
new text end

Sec. 40.

Minnesota Statutes 2008, section 127A.51, is amended to read:


127A.51 STATEWIDE AVERAGE REVENUE.

By October 1 of each year the commissioner must estimate the statewide average
adjusted general revenue per adjusted marginal cost pupil unit and the disparity in adjusted
general revenue among pupils and districts by computing the ratio of the 95th percentile
to the fifth percentile of adjusted general revenue. The