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Minnesota Legislature

Office of the Revisor of Statutes

HF 26

as introduced - 87th Legislature, 2011 1st Special Session (2011 - 2012) Posted on 07/20/2011 02:12am

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

Current Version - as introduced

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 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 2.33 2.34 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 3.35 3.36 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
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 5.34 5.35 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 6.32 6.33 6.34 6.35 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
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 8.33 8.34 8.35 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 9.34 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 11.35 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 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 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 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 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 17.35 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 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 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 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 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 25.33
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 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 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 28.36 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 29.34 29.35 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 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 31.35 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 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 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 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 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 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 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 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 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 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 45.35 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 46.34 46.35 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 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 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 50.36 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 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 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 54.34 54.35 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 55.36 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 56.36 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 57.34 57.35 57.36 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 58.32 58.33 58.34 58.35 58.36 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 60.36 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 61.33 61.34 61.35 61.36 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 64.34 64.35 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 65.32 65.33 65.34 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 66.35 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 67.35 67.36 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 68.36 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 69.36 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 70.34 70.35 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 71.34 71.35 71.36 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 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 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 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
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 78.34 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 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 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 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
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 83.36 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 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 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 87.32 87.33 87.34 87.35 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 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 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 90.32 90.33 90.34 90.35 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 91.35 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 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 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 96.36 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 98.31 98.32 98.33 98.34 98.35 98.36
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 99.33 100.1 100.2 100.3 100.4 100.5 100.6
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
100.25 100.26 100.27 100.28 100.29 100.30 101.1 101.2 101.3 101.4 101.5 101.6 101.7 101.8 101.9 101.10 101.11 101.12 101.13 101.14 101.15 101.16 101.17 101.18 101.19 101.20 101.21 101.22 101.23 101.24 101.25 101.26 101.27 101.28 101.29 101.30 101.31 101.32 101.33 101.34 101.35 101.36 102.1 102.2 102.3 102.4 102.5 102.6 102.7 102.8 102.9 102.10 102.11 102.12 102.13 102.14 102.15 102.16 102.17 102.18 102.19 102.20 102.21 102.22 102.23 102.24 102.25 102.26 102.27 102.28 102.29 102.30 102.31 102.32 102.33 102.34 102.35 102.36 103.1 103.2 103.3 103.4 103.5 103.6 103.7 103.8 103.9 103.10 103.11 103.12 103.13 103.14 103.15 103.16 103.17 103.18 103.19 103.20 103.21 103.22 103.23 103.24 103.25 103.26 103.27 103.28 103.29 103.30 103.31 103.32 103.33 103.34 103.35 103.36 104.1 104.2 104.3 104.4 104.5 104.6 104.7 104.8 104.9 104.10 104.11 104.12 104.13 104.14 104.15 104.16 104.17 104.18 104.19 104.20 104.21 104.22 104.23 104.24 104.25 104.26 104.27 104.28 104.29 104.30 104.31 104.32 104.33 104.34 104.35 104.36 105.1 105.2 105.3 105.4 105.5 105.6 105.7 105.8 105.9 105.10 105.11 105.12 105.13 105.14 105.15 105.16 105.17 105.18 105.19 105.20 105.21 105.22 105.23 105.24 105.25 105.26 105.27 105.28 105.29 105.30 105.31 105.32 105.33 105.34 105.35 106.1 106.2 106.3 106.4 106.5 106.6 106.7 106.8 106.9 106.10 106.11 106.12 106.13 106.14
106.15 106.16 106.17 106.18 106.19 106.20 106.21 106.22 106.23 106.24 106.25 106.26 106.27 106.28 106.29 106.30 106.31 106.32 106.33 106.34 106.35 107.1 107.2 107.3 107.4 107.5 107.6 107.7 107.8 107.9 107.10 107.11 107.12 107.13 107.14 107.15 107.16 107.17 107.18 107.19 107.20 107.21 107.22
107.23 107.24
107.25 107.26 107.27 107.28 107.29 107.30 107.31 107.32
107.33 108.1 108.2 108.3 108.4 108.5 108.6 108.7 108.8 108.9 108.10
108.11 108.12 108.13 108.14 108.15 108.16 108.17 108.18 108.19 108.20 108.21 108.22 108.23 108.24 108.25 108.26 108.27 108.28 108.29 108.30 108.31 108.32 108.33 108.34 109.1 109.2 109.3 109.4 109.5 109.6 109.7 109.8 109.9 109.10 109.11 109.12 109.13 109.14 109.15 109.16 109.17 109.18 109.19 109.20 109.21 109.22 109.23 109.24 109.25 109.26 109.27 109.28 109.29 109.30 109.31 109.32 109.33 109.34 109.35 109.36 110.1 110.2 110.3 110.4
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
110.24 110.25 110.26 110.27 110.28 110.29 111.1 111.2 111.3 111.4 111.5 111.6 111.7 111.8 111.9 111.10 111.11 111.12 111.13 111.14 111.15 111.16 111.17 111.18 111.19 111.20 111.21 111.22 111.23 111.24 111.25 111.26 111.27 111.28 111.29 111.30
112.1 112.2
112.3 112.4 112.5 112.6 112.7 112.8 112.9 112.10 112.11 112.12 112.13 112.14 112.15 112.16 112.17 112.18 112.19 112.20 112.21 112.22 112.23 112.24 112.25 112.26 112.27 112.28 112.29 112.30 112.31 112.32 112.33 112.34 113.1 113.2
113.3 113.4 113.5 113.6 113.7 113.8 113.9 113.10 113.11 113.12 113.13 113.14 113.15 113.16 113.17 113.18 113.19 113.20 113.21 113.22 113.23 113.24 113.25 113.26 113.27 113.28 113.29 113.30 113.31 113.32 113.33 113.34 114.1 114.2 114.3 114.4 114.5 114.6 114.7
114.8
114.9 114.10 114.11 114.12 114.13 114.14 114.15 114.16 114.17 114.18 114.19 114.20 114.21 114.22 114.23 114.24 114.25 114.26 114.27 114.28 114.29 114.30 114.31 114.32 114.33 114.34 114.35 115.1 115.2 115.3 115.4 115.5 115.6 115.7 115.8 115.9 115.10 115.11 115.12 115.13 115.14 115.15 115.16 115.17 115.18 115.19 115.20 115.21 115.22 115.23 115.24 115.25 115.26 115.27 115.28
115.29 115.30 115.31 115.32 115.33 115.34 116.1 116.2 116.3 116.4 116.5 116.6 116.7 116.8 116.9 116.10 116.11 116.12 116.13 116.14 116.15 116.16 116.17 116.18 116.19 116.20 116.21
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
117.17 117.18 117.19 117.20 117.21 117.22 117.23 117.24 117.25 117.26 117.27 117.28 117.29 117.30 117.31 117.32 117.33 117.34 118.1 118.2 118.3 118.4
118.5 118.6 118.7 118.8 118.9 118.10 118.11 118.12 118.13 118.14 118.15 118.16 118.17 118.18 118.19 118.20 118.21 118.22 118.23 118.24 118.25 118.26 118.27 118.28 118.29 118.30 118.31 118.32 118.33 118.34 118.35 118.36 118.37 119.1 119.2 119.3 119.4 119.5 119.6 119.7 119.8 119.9 119.10 119.11 119.12 119.13 119.14
119.15 119.16 119.17 119.18 119.19 119.20
119.21 119.22 119.23 119.24 119.25 119.26
119.27 119.28 119.29 119.30 119.31 119.32 119.33 119.34 119.35
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
120.25 120.26 120.27 120.28 120.29 120.30 120.31 121.1 121.2
121.3 121.4
121.5 121.6 121.7 121.8 121.9 121.10 121.11 121.12 121.13 121.14 121.15 121.16 121.17 121.18 121.19 121.20 121.21 121.22 121.23 121.24 121.25 121.26 121.27 121.28 121.29 121.30 121.31 121.32 122.1
122.2 122.3
122.4 122.5 122.6 122.7 122.8 122.9 122.10 122.11 122.12 122.13 122.14 122.15 122.16 122.17 122.18 122.19 122.20 122.21 122.22 122.23 122.24 122.25 122.26 122.27 122.28 122.29 122.30 122.31 122.32 122.33 122.34 123.1 123.2 123.3 123.4 123.5 123.6 123.7 123.8 123.9 123.10 123.11 123.12 123.13 123.14 123.15 123.16 123.17 123.18 123.19
123.20 123.21 123.22 123.23 123.24 123.25 123.26 123.27 123.28 123.29 123.30 123.31 123.32 123.33 123.34 124.1 124.2 124.3 124.4 124.5 124.6 124.7 124.8 124.9 124.10 124.11 124.12 124.13 124.14 124.15 124.16 124.17 124.18 124.19 124.20 124.21 124.22 124.23 124.24 124.25 124.26 124.27 124.28 124.29 124.30 124.31 124.32 124.33 125.1 125.2 125.3 125.4 125.5 125.6 125.7 125.8 125.9 125.10 125.11 125.12 125.13
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
125.32 126.1 126.2 126.3 126.4 126.5 126.6 126.7 126.8 126.9 126.10 126.11 126.12 126.13 126.14 126.15 126.16 126.17 126.18 126.19 126.20 126.21 126.22 126.23 126.24 126.25
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
127.23 127.24 127.25 127.26 127.27 127.28 127.29 127.30 127.31 127.32 127.33 127.34 127.35 128.1 128.2 128.3 128.4 128.5 128.6 128.7 128.8 128.9 128.10
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
128.27 128.28 128.29 128.30 128.31 128.32 129.1 129.2
129.3 129.4 129.5 129.6 129.7 129.8 129.9 129.10 129.11 129.12 129.13 129.14 129.15 129.16 129.17 129.18 129.19 129.20 129.21 129.22 129.23 129.24 129.25 129.26 129.27 129.28 129.29 129.30 129.31 129.32 129.33 129.34 129.35 130.1 130.2 130.3 130.4 130.5 130.6 130.7 130.8 130.9 130.10 130.11 130.12 130.13 130.14 130.15 130.16 130.17 130.18 130.19 130.20 130.21 130.22 130.23 130.24 130.25 130.26 130.27 130.28 130.29 130.30 130.31 130.32 130.33 130.34 130.35 131.1 131.2 131.3 131.4 131.5 131.6 131.7 131.8 131.9 131.10 131.11 131.12 131.13 131.14 131.15 131.16 131.17 131.18 131.19 131.20 131.21 131.22 131.23 131.24 131.25 131.26 131.27 131.28 131.29 131.30 131.31 131.32 131.33 131.34 132.1 132.2 132.3 132.4 132.5 132.6 132.7 132.8 132.9
132.10 132.11
132.12 132.13 132.14 132.15 132.16 132.17 132.18 132.19 132.20 132.21 132.22 132.23 132.24 132.25 132.26 132.27 132.28 132.29 132.30 132.31 132.32 132.33 132.34 132.35 133.1 133.2 133.3 133.4 133.5 133.6 133.7 133.8 133.9 133.10 133.11 133.12 133.13 133.14 133.15 133.16
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
134.27 134.28 134.29 134.30 135.1 135.2 135.3 135.4 135.5 135.6 135.7
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
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
137.25 137.26 137.27 137.28 137.29 137.30 137.31 137.32 137.33 137.34 138.1
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
138.32 139.1 139.2 139.3 139.4 139.5
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
139.31 139.32 140.1 140.2 140.3 140.4 140.5 140.6 140.7 140.8
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
140.31 140.32 141.1 141.2 141.3

A bill for an act
relating to education; providing for policy and funding for family, adult, and
prekindergarten through grade 12 education, including general education,
academic excellence, special programs, facilities and technology, accounting
and nutrition, libraries, early childhood education, prevention, self-sufficiency
and lifelong learning, student transportation, state agencies, and forecast
adjustments; requiring reports; appropriating money; amending Minnesota
Statutes 2010, sections 11A.16, subdivision 5; 13D.02, by adding a subdivision;
16A.152, subdivision 2; 119A.50, subdivision 3; 120A.24; 120A.41; 120B.023,
subdivision 2; 120B.07; 120B.12; 120B.30, subdivisions 1, 3, 4; 120B.31,
subdivision 4; 120B.36, subdivisions 1, 2; 121A.15, subdivision 8, as amended;
122A.09, subdivision 4, as amended; 122A.16, as amended; 122A.40,
subdivisions 5, 6, 8, 9; 122A.41, subdivisions 1, 2, 3, 5, 6; 123A.55; 123B.143,
subdivision 1; 123B.147, subdivision 3; 123B.41, subdivisions 2, 5; 123B.54;
123B.57; 123B.63, subdivision 3; 123B.71, subdivision 5; 123B.72, subdivision
3; 123B.75, subdivision 5; 123B.88, subdivision 13, by adding a subdivision;
123B.92, subdivisions 1, as amended, 5; 124D.09, subdivisions 5, 7, 8;
124D.091, subdivision 2; 124D.10, as amended; 124D.11, subdivisions 4, 9;
124D.19, subdivision 3; 124D.36; 124D.37; 124D.38, subdivision 3; 124D.385,
subdivision 3; 124D.39; 124D.40; 124D.42; 124D.44; 124D.45, subdivision 2;
124D.4531, subdivision 1; 124D.531, subdivisions 1, 4; 124D.59, subdivision
2; 125A.02, subdivision 1; 125A.0942, subdivision 3; 125A.15; 125A.21,
subdivisions 2, 3, 5, 7; 125A.51; 125A.515, by adding a subdivision; 125A.69,
subdivision 1; 125A.79, subdivision 1; 126C.10, subdivisions 1, 2, 8a, 14, by
adding a subdivision; 126C.126; 126C.15, subdivision 2; 126C.20; 126C.40,
subdivision 1; 126C.41, subdivision 2; 126C.44; 126C.50; 127A.33; 127A.42,
subdivision 2; 127A.43; 127A.441; 127A.45, subdivisions 2, 3, 6a, by adding a
subdivision; 134.195, subdivision 8; 171.05, subdivision 2; 171.17, subdivision
1; 171.22, subdivision 1; Laws 1999, chapter 241, article 4, section 25, by adding
a subdivision; Laws 2009, chapter 96, article 1, section 24, subdivisions 2, as
amended, 3, 4, as amended, 5, as amended, 6, as amended, 7, as amended; article
2, section 67, subdivisions 2, as amended, 3, as amended, 4, as amended, 6, 9, as
amended; article 3, section 21, subdivisions 3, 4, as amended; article 4, section
12, subdivision 6, as amended; article 5, section 13, subdivisions 2, 3, 4, as
amended; article 6, section 11, subdivisions 3, as amended, 4, as amended, 8, as
amended, 12, as amended; proposing coding for new law in Minnesota Statutes,
chapters 120B; 124D; repealing Minnesota Statutes 2010, sections 120A.26,
subdivisions 1, 2; 123B.05; 124D.11, subdivision 8; 124D.38, subdivisions 4, 5,
6; 124D.86; 124D.871; 124D.88; 125A.54; 126C.10, subdivision 5; 126C.457;
127A.46.

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

ARTICLE 1

GENERAL EDUCATION

Section 1.

Minnesota Statutes 2010, 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 2010, section 120A.24, is amended to read:


120A.24 REPORTING.

Subdivision 1.

Reports to superintendent.

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

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

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

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

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

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

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

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

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

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

Subd. 2.

Availability of documentation.

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

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

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

Subd. 3.

Exemptions.

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

Subd. 4.

Reports to the state.

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

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

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

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

new text begin Subd. 5. new text end

new text begin Obligations. new text end

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

Sec. 3.

Minnesota Statutes 2010, section 120A.41, is amended to read:


120A.41 LENGTH OF SCHOOL YEAR; deleted text beginDAYSdeleted text endnew text begin HOURSnew text end OF INSTRUCTION.

A school board's annual school calendar must include at least deleted text beginthe number of days of
student instruction the board formally adopted as its school calendar at the beginning of
the 1996-1997 school year
deleted 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 though 6, and 1,020 hours of
instruction for a student in grades 7 though 12, not including summer school. Nothing in
this section permits a school district to adopt a four-day week schedule unless approved by
the commissioner under section 124D.126
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. 4.

Minnesota Statutes 2010, 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 or the early
graduation military service award program under section 120B.081
new text end.

Sec. 5.

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 or two trimesters early, $5,000 if the student qualifies
for graduation two semesters or three or four trimesters early, or $7,500 if the student
qualifies for graduation three or more semesters or five or more trimesters 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 year 2012 and later.
new text end

Sec. 6.

new text begin [120B.081] EARLY GRADUATION MILITARY SERVICE AWARD
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Eligibility. new text end

new text begin For purposes of this section, "eligible person" means
a secondary student enrolled in any Minnesota public school who qualifies for early
graduation under section 120B.07 and who, before the end of the calendar year of the
student's graduation, enters into active service in either the active or reserve component
of the United States armed forces and deploys for 60 days or longer to a military base or
installation outside Minnesota for the purpose of attending basic military training or
military school and, if required by the military, performing other military duty. The active
service may be in accordance with United States Code, title 10 or title 32.
new text end

new text begin Subd. 2. new text end

new text begin Application. new text end

new text begin An eligible person may apply to the commissioner of
education for an early graduation military service bonus. The application must be in the
form and manner specified by the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin Verification and award. new text end

new text begin Upon verification of the qualifying student's
course completion necessary for graduation and eligibility for the military service
bonus, the commissioner must issue payment to that person. Payment amounts must be
determined according to section 120B.08, subdivision 2.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

Minnesota Statutes 2010, section 121A.15, subdivision 8, as amended by Laws
2011, chapter 76, article 1, section 12, is amended to read:


Subd. 8.

Report.

The administrator or other person having general control and
supervision of the elementary or secondary school shall file a report with the commissioner
on all persons enrolled in the school. The superintendent of each district shall file a report
with the commissioner for all persons within the district receiving instruction in a home
school in compliance with sections 120A.22 and 120A.24. The parent of persons receiving
instruction in a home school shall submit the statements as required by subdivisions 1, 2,
3, deleted text beginanddeleted text end 4new text begin, and 12new text end to the superintendent of the district in which the person resides by October
1 of deleted text begineach school yeardeleted text endnew text begin the first year of their homeschooling in Minnesota and the grade 7
year
new text end. The school report must be prepared on forms developed jointly by the commissioner
of health and the commissioner of education and be distributed to the local districts by the
commissioner of health. The school report must state the number of persons attending the
school, the number of persons who have not been immunized according to subdivision 1 or
2, and the number of persons who received an exemption under subdivision 3, clause (c)
or (d). The school report must be filed with the commissioner of education within 60 days
of the commencement of each new school term. Upon request, a district must be given a
60-day extension for filing the school report. The commissioner of education shall forward
the report, or a copy thereof, to the commissioner of health who shall provide summary
reports to boards of health as defined in section 145A.02, subdivision 2. The administrator
or other person having general control and supervision of the child care facility shall file a
report with the commissioner of human services on all persons enrolled in the child care
facility. The child care facility report must be prepared on forms developed jointly by
the commissioner of health and the commissioner of human services and be distributed
to child care facilities by the commissioner of health. The child care facility report
must state the number of persons enrolled in the facility, the number of persons with no
immunizations, the number of persons who received an exemption under subdivision 3,
clause (c) or (d), and the number of persons with partial or full immunization histories.
The child care facility report must be filed with the commissioner of human services by
November 1 of each year. The commissioner of human services shall forward the report,
or a copy thereof, to the commissioner of health who shall provide summary reports to
boards of health as defined in section 145A.02, subdivision 2. The report required by this
subdivision is not required of a family child care or group family child care facility, for
prekindergarten children enrolled in any elementary or secondary school provided services
according to sections 125A.03 and 125A.06, nor for child care facilities in which at least
75 percent of children in the facility participate on a onetime only or occasional basis to a
maximum of 45 hours per child, per month.

Sec. 8.

Minnesota Statutes 2010, section 123A.55, is amended to read:


123A.55 CLASSES, NUMBER.

Districts shall be classified as common, independent, deleted text beginordeleted text end specialnew text begin, or charternew text end districtsdeleted text begin,deleted text endnew text begin.new text end
Each deleted text beginof whichdeleted text endnew text begin common, independent, and special districtnew text end is a public corporation. Each
district shall be known by its classification and assigned a number by the commissioner so
that its title will be .......... School District No. ......

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective March 1, 2012, and later.
new text end

Sec. 9.

Minnesota Statutes 2010, section 123B.41, subdivision 2, is amended to read:


Subd. 2.

Textbook.

"Textbook" means any book or book substitutenew text begin, including
electronic books as well as other printed materials delivered electronically,
new text end which a
pupil uses as a text or text substitute in a particular class or program in the school
regularly attended and a copy of which is expected to be available for the individual use
of each pupil in this class or program. The term shall be limited to books, workbooks,
or manuals, whether bound or in loose-leaf form, new text beginas well as electronic books and other
printed materials delivered electronically,
new text endintended for use as a principal source of study
material for a given class or a group of students. The term includes only such secular,
neutral and nonideological textbooks as are available, used by, or of benefit to Minnesota
public school pupils.

Sec. 10.

Minnesota Statutes 2010, section 123B.41, subdivision 5, is amended to read:


Subd. 5.

Individualized instructional or cooperative learning materials.

"Individualized instructional or cooperative learning materials" means educational
materials which:

(a) are designed primarily for individual pupil use or use by pupils in a cooperative
learning group in a particular class or program in the school the pupil regularly attends;

(b) are secular, neutral, nonideological and not capable of diversion for religious
use; and

(c) are available, used by, or of benefit to Minnesota public school pupils.

Subject to the requirements in clauses (a), (b), and (c), "individualized instructional
or cooperative learning materials" include, but are not limited to, the following if they
do not fall within the definition of "textbook" in subdivision 2: published materials;
periodicals; documents; pamphlets; photographs; reproductions; pictorial or graphic
works; prerecorded video programs; prerecorded tapes, cassettes and other sound
recordings; manipulative materials; desk charts; games; study prints and pictures; desk
maps; models; learning kits; blocks or cubes; flash cards; individualized multimedia
systems; prepared instructional computer software programs; choral and band sheet music;
new text begin electronic books and other printed materials delivered electronically; new text endand CD-Rom.

"Individualized instructional or cooperative learning materials" do not include
instructional equipment, instructional hardware, or ordinary daily consumable classroom
supplies.

Sec. 11.

Minnesota Statutes 2010, section 123B.63, subdivision 3, is amended to read:


Subd. 3.

Capital project levy referendum.

A district may levy the local tax
rate approved by a majority of the electors voting on the question to provide funds for
an approved project. The election must take place no more than five years before the
estimated date of commencement of the project. The referendum must be held on a date
set by the board. new text beginA district must meet the requirements of section 123B.71 for projects
funded under this section. If a review and comment is required under section 123B.71,
subdivision 8,
new text enda referendum for a project not receiving a positive review and comment by
the commissioner deleted text beginunder section 123B.71deleted text end must be approved by at least 60 percent of the
voters at the election. The referendum may be called by the school board and may be held:

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

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

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

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

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

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

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

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

The district must notify the commissioner of the results of the referendum.

Sec. 12.

Minnesota Statutes 2010, section 123B.75, subdivision 5, is amended to read:


Subd. 5.

Levy recognition.

(a) For fiscal years 2009 and 2010, 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, paragraph
(a), and 3
, paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48,
subdivision 6
; plus

(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).

(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:

(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) the greater of 48.6 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

(ii) the entire amount of the levy certified in the prior calendar year according to
section new text begin124D.4531, new text end124D.86, subdivision 4, for school districts receiving revenue under
sections 124D.86, subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 1, 2,
paragraph (a), and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; deleted text begin126C.457;deleted text end
and 126C.48, subdivision 6; plus

(iii) 48.6 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).

Sec. 13.

Minnesota Statutes 2010, 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 new text beginor is otherwise counted
as a nonproficient participant
new text endon 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, if:

(1) 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.64;
or

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

Sec. 14.

Minnesota Statutes 2010, 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 beginfor a school district new text endmeans 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

Sec. 15.

Minnesota Statutes 2010, section 126C.10, subdivision 1, is amended to read:


Subdivision 1.

General education revenue.

deleted text beginFor fiscal year 2006 and later,deleted 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, new text beginsmall schools revenue, new text endbasic 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 EFFECTIVE DATE. new text end

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

Sec. 16.

Minnesota Statutes 2010, section 126C.10, subdivision 2, is amended to read:


Subd. 2.

Basic revenue.

The basic revenue for each district equals the formula
allowance times the adjusted marginal cost pupil units for the school year. The formula
allowance for fiscal year deleted text begin2007 is $4,974deleted text endnew text begin 2011 is $5,124new text end. The formula allowance for fiscal
year deleted text begin2008 is $5,074 anddeleted text endnew text begin 2012 is $5,174. new text end The formula allowance for fiscal year deleted text begin2009deleted text endnew text begin
2013
new text end and subsequent years is deleted text begin$5,124deleted text endnew text begin $5,224new text end.

new text begin EFFECTIVE DATE. new text end

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

Sec. 17.

Minnesota Statutes 2010, section 126C.10, is amended by adding a
subdivision to read:


new text begin Subd. 2c. new text end

new text begin Small schools revenue. new text end

new text begin A school district, not including a charter school,
is eligible for small schools revenue equal to the product of:
new text end

new text begin (1) $5,224;
new text end

new text begin (2) the district's adjusted marginal cost pupil units for that year;
new text end

new text begin (3) the greater of zero or the ratio of (i) 1,000 less the district's adjusted marginal
cost pupil units for that year, to (ii) 1,000; and
new text end

new text begin (4) 0.10.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 18.

Minnesota Statutes 2010, section 126C.10, subdivision 8a, is amended to read:


Subd. 8a.

Sparsity revenue for school districts that close facilities.

A school
district that closes a school facility new text beginor whose sparsity revenue is reduced by a school
closure in another district
new text endis eligible for elementary and secondary sparsity revenue equal
to the greater of the amounts calculated under subdivisions 6, 7, and 8 or the total amount
of sparsity revenue for the previous fiscal year if the school board of the district has
adopted a written resolution stating that the district intends to close the school facility, but
cannot proceed with the closure without the adjustment to sparsity revenue authorized by
this subdivision. The written resolution must be new text beginapproved by the board and new text endfiled with the
commissioner of education deleted text beginat least 60 daysdeleted text end prior to the start of the fiscal year for which
aid under this subdivision is first requested.new text begin A school district whose sparsity revenue
is affected by a closure in another district is not required to adopt a written resolution
under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for board resolutions approved by
the school board in fiscal year 2011 and later for sparsity revenue calculations in fiscal
year 2012 and later.
new text end

Sec. 19.

Minnesota Statutes 2010, 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) tonew text begin lease ornew text end 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.

Sec. 20.

Minnesota Statutes 2010, 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 or the early
graduation military service award program under section 120B.081
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 year 2012 and later.
new text end

Sec. 21.

Minnesota Statutes 2010, section 126C.15, subdivision 2, is amended to read:


Subd. 2.

Building allocation.

(a) A district new text beginor cooperative new text endmust allocate its
compensatory revenue to each school building in the district new text beginor cooperative new text endwhere
the children who have generated the revenue are served unless the school district new text beginor
cooperative
new text endhas received permission under Laws 2005, First Special Session chapter 5,
article 1, section 50, to allocate compensatory revenue according to student performance
measures developed by the school board.

(b) Notwithstanding paragraph (a), a district new text beginor cooperative new text endmay allocate up to
five percent of the amount of compensatory revenue that the district receives to school
sites according to a plan adopted by the school board. The money reallocated under
this paragraph must be spent for the purposes listed in subdivision 1, but may be
spent on students in any grade, including students attending school readiness or other
prekindergarten programs.

(c) For the purposes of this section and section 126C.05, subdivision 3, "building"
means education site as defined in section 123B.04, subdivision 1.

(d) Notwithstanding section 123A.26, subdivision 1, compensatory revenue
generated by students served at a cooperative unit shall be paid to the cooperative unit.

(e) A district new text beginor cooperative new text endwith school building openings, school building
closings, changes in attendance area boundaries, or other changes in programs or student
demographics between the prior year and the current year may reallocate compensatory
revenue among sites to reflect these changes. A district new text beginor cooperative new text endmust report to the
department any adjustments it makes according to this paragraph and the department must
use the adjusted compensatory revenue allocations in preparing the report required under
section 123B.76, subdivision 3, paragraph (c).

Sec. 22.

Minnesota Statutes 2010, 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.13, the early graduation
achievement scholarship program under section 120B.08, and the early graduation
military service award program under section 120B.081
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 year 2012 and later.
new text end

Sec. 23.

Minnesota Statutes 2010, 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. 24.

Minnesota Statutes 2010, 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.

deleted text begin (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; or (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 year.
deleted text end

Sec. 25.

Minnesota Statutes 2010, section 126C.50, is amended to read:


126C.50 TAX AND AID ANTICIPATION BORROWING; DEFINITIONS.

School district as used in sections 126C.50 to 126C.56 means any new text begincommon,
independent, and special
new text endschool district in the state of Minnesota, however organized and
wherever located.

Sec. 26.

Minnesota Statutes 2010, section 127A.33, is amended to read:


127A.33 SCHOOL ENDOWMENT FUND; APPORTIONMENT.

The commissioner shall apportion the school endowment fund semiannually on the
first Monday in March and September in each year, to districts whose schools have been
in session at least nine months. The apportionment shall be in proportion to deleted text beginthe number
of pupils in
deleted text endnew text begin each district's adjustednew text end average daily membership during the preceding year.
The apportionment shall not be paid to a district for pupils for whom tuition is received
by the district.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective March 1, 2012, and later.
new text end

Sec. 27.

Minnesota Statutes 2010, section 127A.45, subdivision 6a, is amended to read:


Subd. 6a.

Cash flow adjustment.

The board of directors of any charter school
serving fewer than 150 students where the percent of students eligible for special
education services equals deleted text begin100deleted text endnew text begin at least 90new text end 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 deleted text begincash flow aid payments
for all state aid
deleted text endnew text begin regular special education aid payments new text end according to the schedule in the
school's request and modify the payments to the school under subdivision 3 accordingly.
new text begin A school must not receive current payments of regular special education aid exceeding 90
percent of its estimated aid entitlement for the fiscal year.
new text endThe 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.

Sec. 28.

Minnesota Statutes 2010, section 171.05, subdivision 2, is amended to read:


Subd. 2.

Person less than 18 years of age.

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

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

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

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

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

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

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

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

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

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

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

Sec. 29.

Minnesota Statutes 2010, section 171.17, subdivision 1, is amended to read:


Subdivision 1.

Offenses.

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

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

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

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

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

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

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

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

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

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

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

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

Sec. 30.

Minnesota Statutes 2010, section 171.22, subdivision 1, is amended to read:


Subdivision 1.

Violations.

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

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

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

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

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

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

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

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

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

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

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

Sec. 31. new text beginALTERNATIVE COMPENSATION FORECAST REVENUE
RECAPTURE.
new text end

new text begin Notwithstanding Minnesota Statutes, section 126C.10, subdivision 34, paragraph
(c), for fiscal year 2012 only, the revenue for basic alternative compensation is reduced by
$10,190,000 compared to the February 2011 forecast. Nothing in this section shall limit
the November 2011 forecast of alternative compensation revenue.
new text end

Sec. 32. new text beginKITTSON CENTRAL SCHOOL CLOSING.
new text end

new text begin Independent School District No. 356, Lancaster, is eligible for sparsity revenue
calculated under Minnesota Statutes, section 126C.10, subdivision 8a, for fiscal year 2012
and later, if the board has adopted a written resolution at any time prior to the start of
the 2011-2012 school year to notify the commissioner and request aid under Minnesota
Statutes, section 126C.10, subdivision 8a. For the purposes of this section, the school
district shall be eligible for aid under Minnesota Statutes, section 126C.10, subdivision
8a, as a result of the closure of the Kennedy Elementary School in Independent School
District No. 2171, Kittson Central.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 33. new text beginNORTHLAND COMMUNITY SCHOOL CLOSING.
new text end

new text begin (a) Independent School District No. 118, Northland Community Schools, is eligible
for sparsity revenue calculated under Minnesota Statutes, section 126C.10, subdivision 8a,
for fiscal year 2012 and later, if the board has adopted the required written resolution at
least 60 days prior to the start of fiscal year 2012.
new text end

new text begin (b) If the school district adopts a written resolution under paragraph (a), in fiscal
year 2012, the commissioner must provide sparsity aid to the district in an amount equal
to the amount that the district would have received under Minnesota Statutes, section
126C.10, subdivision 8a, in fiscal year 2011, if the provisions of paragraph (a) had been in
effect. The school district must recognize the sparsity aid provided under this paragraph as
revenue in fiscal year 2011.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2011.
new text end

Sec. 34. new text beginSCHOOL DISTRICT LEVY ADJUSTMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Tax rate adjustment. new text end

new text begin The commissioner of education must adjust
each school district tax rate established under Minnesota Statutes, chapters 120B to 127A,
by multiplying the rate by the ratio of the statewide total tax capacity for assessment
year 2010 as it existed prior to the passage of Regular Session 2011 House File 42, or a
similarly styled bill passed in a special session, to the statewide total tax capacity for
assessment year 2010.
new text end

new text begin Subd. 2. new text end

new text begin Equalizing factors. new text end

new text begin The commissioner of education must adjust each
school district equalizing factor established under Minnesota Statutes, chapters 120B to
127A, by dividing the equalizing factor by the ratio of the statewide total tax capacity for
assessment year 2010 as it existed prior to the passage of Regular Session 2011 House
File 42, or a similarly styled bill passed in a special session, to the statewide total tax
capacity for assessment year 2010.
new text end

Sec. 35. new text beginRESERVED REVENUE FOR STAFF DEVELOPMENT; TEMPORARY
SUSPENSION.
new text end

new text begin Notwithstanding Minnesota Statutes, section 122A.61, subdivision 1, for fiscal years
2012 and 2013 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 end

Sec. 36. new text beginAPPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are
appropriated from the general fund to the Department of Education for the fiscal years
designated.
new text end

new text begin Subd. 2. new text end

new text begin General education aid. new text end

new text begin For general education aid under Minnesota
Statutes, section 126C.13, subdivision 4:
new text end

new text begin $
new text end
new text begin 5,112,037,000
new text end
new text begin .....
new text end
new text begin 2012
new text end
new text begin $
new text end
new text begin 5,850,065,000
new text end
new text begin .....
new text end
new text begin 2013
new text end

new text begin The 2012 appropriation includes $1,678,539,000 for 2011 and $3,433,498,000
for 2012.
new text end

new text begin The 2013 appropriation includes $2,297,765,000 for 2012 and $3,552,300,000
for 2013.
new text end

new text begin Subd. 3. new text end

new text begin Enrollment options transportation. new text end

new text begin For transportation of pupils attending
postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation
of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:
new text end

new text begin $
new text end
new text begin 31,000
new text end
new text begin .....
new text end
new text begin 2012
new text end
new text begin $
new text end
new text begin 32,000
new text end
new text begin .....
new text end
new text begin 2013
new text end

new text begin Subd. 4. new text end

new text begin Abatement revenue. new text end

new text begin For abatement aid under Minnesota Statutes, section
127A.49:
new text end

new text begin $
new text end
new text begin 1,294,000
new text end
new text begin .....
new text end
new text begin 2012
new text end
new text begin $
new text end
new text begin 1,627,000
new text end
new text begin .....
new text end
new text begin 2013
new text end

new text begin The 2012 appropriation includes $346,000 for 2011 and $948,000 for 2012.
new text end

new text begin The 2013 appropriation includes $631,000 for 2012 and $996,000 for 2013.
new text end

new text begin Subd. 5. new text end

new text begin Consolidation transition. new text end

new text begin For districts consolidating under Minnesota
Statutes, section 123A.485:
new text end

new text begin $
new text end
new text begin 145,000
new text end
new text begin .....
new text end
new text begin 2012
new text end
new text begin $
new text end
new text begin 180,000
new text end
new text begin .....
new text end
new text begin 2013
new text end

new text begin The 2012 appropriation includes $145,000 for 2011 and $0 for 2012.
new text end

new text begin The 2013 appropriation includes $0 for 2012 and $180,000 for 2013.
new text end

new text begin Subd. 6. new text end

new text begin Nonpublic pupil education aid. new text end

new text begin For nonpublic pupil education aid under
Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:
new text end

new text begin $
new text end
new text begin 14,598,000
new text end
new text begin .....
new text end
new text begin 2012
new text end
new text begin $
new text end
new text begin 16,198,000
new text end
new text begin .....
new text end
new text begin 2013
new text end

new text begin The 2012 appropriation includes $5,078,000 for 2011 and $9,520,000 for 2012.
new text end

new text begin The 2013 appropriation includes $6,346,000 for 2012 and $9,852,000 for 2013.
new text end

new text begin Subd. 7. new text end

new text begin Nonpublic pupil transportation. new text end

new text begin For nonpublic pupil transportation aid
under Minnesota Statutes, section 123B.92, subdivision 9:
new text end

new text begin $
new text end
new text begin 17,178,000
new text end
new text begin .....
new text end
new text begin 2012
new text end
new text begin $
new text end
new text begin 19,056,000
new text end
new text begin .....
new text end
new text begin 2013
new text end

new text begin The 2012 appropriation includes $5,895,000 for 2011 and $11,283,000 for 2012.
new text end

new text begin The 2013 appropriation includes $7,521,000 for 2012 and $11,535,000 for 2013.
new text end

new text begin Subd. 8. new text end

new text begin One-room schoolhouse. new text end

new text begin For a grant to Independent School District No.
690, Warroad, to operate the Angle Inlet School:
new text end

new text begin $
new text end
new text begin 65,000
new text end
new text begin .....
new text end
new text begin 2012
new text end
new text begin $
new text end
new text begin 65,000
new text end
new text begin .....
new text end
new text begin 2013
new text end

new text begin Subd. 9. new text end

new text begin Compensatory revenue pilot project. new text end

new text begin For grants for participation in the
compensatory revenue pilot program under Laws 2005, First Special Session chapter 5,
article 1, section 50:
new text end

new text begin $
new text end
new text begin 2,325,000
new text end
new text begin .....
new text end
new text begin 2012
new text end
new text begin $
new text end
new text begin 2,325,000
new text end
new text begin .....
new text end
new text begin 2013
new text end

new text begin Of this amount, $1,500,000 in each year is for a grant to Independent School District
No. 11, Anoka-Hennepin; $75,000 in each year is for a grant to Independent School
District No. 286, Brooklyn Center; $210,000 in each year is for a grant to Independent
School District No. 279, Osseo; $160,000 in each year is for a grant to Independent
School District No. 281, Robbinsdale; $165,000 in each year is for a grant to Independent
School District No. 535, Rochester; and $65,000 in each year is for a grant to Independent
School District No. 833, South Washington; and $150,000 in each year is for a grant to
Independent School District No. 241, Albert Lea.
new text end

new text begin If a grant to a specific school district is not awarded, the commissioner may increase
the aid amounts to any of the remaining participating school districts.
new text end

new text begin This appropriation is part of the base budget for subsequent fiscal years.
new text end

new text begin Subd. 10. new text end

new text begin Compensatory pilot project formula aid. new text end

new text begin For grants for compensatory
pilot project formula aid as calculated under this subdivision:
new text end

new text begin $
new text end
new text begin 9,776,000
new text end
new text begin .....
new text end
new text begin 2013
new text end

new text begin For fiscal year 2013 only, a district which has a pupil unit count that is in the top 20
largest pupil unit counts is eligible for the greater of zero or $1,400 times the number of
compensatory pupil units, minus the amount of compensatory education revenue received
by the district under Minnesota Statutes, section 126C.10, subdivision 3.
new text end

new text begin The 2013 appropriation includes $0 for 2012 and $9,776,000 for 2013.
new text end

new text begin This is a onetime appropriation.
new text end

Sec. 37. new text beginREPEALER.
new text end

new text begin Minnesota Statutes 2010, sections 120A.26, subdivisions 1 and 2; 126C.10,
subdivision 5; and 126C.457,
new text end new text begin are repealed.
new text end

ARTICLE 2

ACADEMIC EXCELLENCE

Section 1.

Minnesota Statutes 2010, section 13D.02, is amended by adding a
subdivision to read:


new text begin Subd. 5. new text end

new text begin School boards; interactive technology with an audio and visual link.
new text end

new text begin A school board conducting a meeting under this section may use interactive technology
with an audio and visual link to conduct the meeting if the school board complies with
all other requirements under this section.
new text end

Sec. 2.

Minnesota Statutes 2010, 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 deleted text beginordeleted text endnew text begin,new text end physicsnew text begin, or career and
technical education
new text end creditnew text begin that meets the standards underlying either the chemistry or
physics credit
new text end. 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, 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, world languages, and career and technical education.

Sec. 3.

Minnesota Statutes 2010, section 120B.12, is amended to read:


120B.12 READING deleted text beginINTERVENTIONdeleted text endnew text begin PROFICIENTLY NO LATER THAN
THE END OF GRADE 3
new text end.

Subdivision 1.

Literacy goal.

The legislature seeks to have deleted text beginMinnesota's children
able to read no later than the end of second grade
deleted text endnew text begin every child reading at or above
grade level no later than the end of grade 3 and that teachers provide comprehensive,
scientifically based reading instruction consistent with section 122A.06, subdivision 4
new text end.

Subd. 2.

Identification; report.

For the deleted text begin2002-2003deleted text end new text begin2011-2012 new text endschool year and
later, each school district shall identify before the end of deleted text beginfirstdeleted text endnew text begin kindergarten,new text end gradenew text begin 1, and
grade 2
new text end students who are deleted text beginat risk of not learning to readdeleted text end new text beginnot reading at grade level new text endbefore
the end of deleted text beginsecond gradedeleted text endnew text begin the current school yearnew text end.new text begin Reading assessments must identify and
evaluate students' areas of academic need related to literacy.
new text end The district must use a
locally adopted assessment deleted text beginmethod. The district mustdeleted text endnew text begin andnew text end annually report deleted text beginthedeleted text end new text beginsummary
assessment
new text endresults deleted text beginof the assessmentdeleted text end to the commissioner by June 1.

new text begin Subd. 2a. new text end

new text begin Parent notification and involvement. new text end

new text begin Schools, at least annually,
must give the parent of each student who is not reading at or above grade level timely
information about:
new text end

new text begin (1) student's reading proficiency as measured by a locally adopted assessment;
new text end

new text begin (2) reading-related services currently being provided to the student; and
new text end

new text begin (3) strategies for parents to use in helping their student succeed in becoming
grade-level proficient in reading.
new text end

Subd. 3.

Intervention.

For each student identified under subdivision 2, the district
shall provide deleted text begina reading intervention method or program to assist the student in reachingdeleted text end
new text begin reading intervention to accelerate student growth in order to reach new text endthe goal of deleted text beginlearning to
read no later than
deleted text end new text beginreading at or above grade level by new text endthe end of deleted text beginseconddeleted text end new text beginthe current new text endgradenew text begin
and school year
new text end. District intervention methods shall encourage parental involvement
and, where possible, collaboration with appropriate school and community programs.
Intervention methods may include, but are not limited to, requiring attendance in summer
school deleted text beginanddeleted text endnew text begin,new text end intensified reading instruction that may require that the student be removed
from the regular classroom for part of the school daynew text begin or extended-day programsnew text end.

Subd. 4.

Staff development.

Each district shall new text beginuse the data under subdivision 2
to
new text endidentify the staff development needs deleted text beginto ensuredeleted text end new text beginso new text endthat:

(1) elementary teachers are able to implement comprehensive, scientifically
baseddeleted text begin, and balanceddeleted text end reading instruction deleted text beginprograms that have resulted in improved
student performance
deleted text endnew text begin in the five reading areas of phonemic awareness, phonics, fluency,
vocabulary, and comprehension as defined in section 122A.06, subdivision 4, until the
student achieves grade-level reading proficiency
new text end;

(2) elementary teachers deleted text beginwho are instructing students identified under subdivision
2 are prepared to teach
deleted text end new text beginhave sufficient training to provide comprehensive, scientifically
based reading instruction
new text endusing the intervention methods or programs selected by the
district for the identified students; deleted text beginand
deleted text end

(3) deleted text beginalldeleted text end licensed teachers employed by the district have regular opportunities to
improve reading instructionnew text begin; and
new text end

new text begin (4) licensed teachers recognize students' diverse needs in cross-cultural settings
and are able to serve the oral language and linguistic needs of students who are English
language learners
new text end.

new text begin Subd. 4a. new text end

new text begin Local literacy plan. new text end

new text begin Consistent with this section, a school district must
adopt a local literacy plan to have every child reading at or above grade level no later than
the end of grade 3. The plan must include a process to assess students' level of reading
proficiency, notify and involve parents, intervene with students who are not reading at
or above grade level, and identify and meet staff development needs. The district must
post its literacy plan on the official school district Web site.
new text end

Subd. 5.

Commissioner.

The commissioner shall recommend to districts multiple
assessment tools deleted text beginthat willdeleted text endnew text begin tonew text end assist districts and teachers with identifying students under
subdivision 2. The commissioner shall also make available deleted text beginto districtsdeleted text end examples of
nationally recognized and research-based instructional methods or programs deleted text beginthatdeleted text end new text beginto
new text enddistricts deleted text beginmay usedeleted text end to provide new text begincomprehensive, scientifically based new text endreading new text begininstruction and
new text endintervention deleted text beginaccording todeleted text endnew text begin undernew text end this section.

Sec. 4.

Minnesota Statutes 2010, section 120B.30, subdivision 1, is amended to read:


Subdivision 1.

Statewide testing.

(a) The commissioner, with advice from experts
with appropriate technical qualifications and experience and stakeholders, consistent with
subdivision 1a, shall include in the comprehensive assessment system, for each grade
level to be tested, state-constructed tests developed from and aligned with the state's
required academic standards under section 120B.021, include multiple choice questions,
and be administered annually to all students in grades 3 through 8. State-developed high
school tests aligned with the state's required academic standards under section 120B.021
and administered to all high school students in a subject other than writing must include
multiple choice questions. The commissioner shall establish one or more months during
which schools shall administer the tests to students each school year. For students enrolled
in grade 8 before the 2005-2006 school year, Minnesota basic skills tests in reading,
mathematics, and writing shall fulfill students' basic skills testing requirements for a
passing state notation. The passing scores of basic skills tests in reading and mathematics
are the equivalent of 75 percent correct for students entering grade 9 based on the first
uniform test administered in February 1998. Students who have not successfully passed
a Minnesota basic skills test by the end of the 2011-2012 school year must pass the
graduation-required assessments for diploma under paragraph (c).

(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 2013-2014 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 (c) are eligible to receive a high school diploma
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 placenew text begin on the high school transcriptnew text end a student's deleted text beginhighestdeleted text endnew text begin current pass
status for each subject that has a required graduation
new text end assessment 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 and high school test results shall be available to
districts for diagnostic purposes affecting student learning and district instruction and
curriculum, and for establishing educational accountability. The commissioner must
disseminate to the public the high school test results upon receiving those results.

(f) The 3rd through 8th grade and high school tests must be aligned with state
academic standards. The commissioner shall determine the testing process and the order
of administration. The statewide results shall be aggregated at the site and district level,
consistent with subdivision 1a.

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

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

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

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

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

Sec. 5.

Minnesota Statutes 2010, 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.new text begin The commissioner shall disseminate to charter school authorizers a more
comprehensive report containing testing information that contains anonymized data where
cell count data are sufficient to protect student identity and that meets the authorizer's
needs in fulfilling its obligations under section 124D.10.
new text end

Sec. 6.

Minnesota Statutes 2010, 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. 7.

Minnesota Statutes 2010, section 120B.31, subdivision 4, is amended to read:


Subd. 4.

deleted text beginStatistical adjustments;deleted text end Student performance data.

In developing
policies and assessment processes to hold schools and districts accountable for high levels
of academic standards under section 120B.021, the commissioner shall aggregate student
data over time to report student performance and growth levels measured at the school,
school district, and statewide level. When collecting and reporting the performance data,
the commissioner shalldeleted text begin: (1) acknowledge the impact of significant demographic factors
such as residential instability, the number of single parent families, parents' level of
education, and parents' income level on school outcomes; and (2)
deleted text end organize and report the
data so that state and local policy makers can understand the educational implications
of changes in districts' demographic profiles over time. Any report the commissioner
disseminates containing summary data on student performance must integrate student
performance and the demographic factors that strongly correlate with that performance.

Sec. 8.

Minnesota Statutes 2010, 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); two separate student-to-teacher ratios that clearly
indicate the definition of teacher consistent with sections 122A.06 and 122A.15 for
purposes of determining these ratios; staff characteristics excluding salaries; student
enrollment demographics; district mobility; and extracurricular activities. The report also
must indicate a school's adequate yearly progress status, and must not set any designations
applicable to high- and low-performing schools due solely to adequate yearly progress
status.

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

(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 deleted text beginnot later than ten days after the appeal procedure described in
paragraph (d) concludes
deleted text endnew text begin the commissioner publicly releases the datanew text end. The deleted text begindepartmentdeleted text endnew text begin
commissioner
new text end shall annually post school performance report cards to deleted text beginitsdeleted text endnew text begin the department'snew text end
public web site no later than September 1new text begin, except that in years when the report card
reflects new performance standards, the commissioner shall post the school performance
report cards no later than October 1
new text end.

Sec. 9.

Minnesota Statutes 2010, section 120B.36, subdivision 2, is amended to read:


Subd. 2.

Adequate yearly progress and other data.

All data the department
receives, collects, or creates to determine adequate yearly progress status under Public
Law 107-110, section 1116, set state growth targets, and determine student growth are
nonpublic data under section 13.02, subdivision 9, until deleted text beginnot later than ten days after the
appeal procedure described in subdivision 1, paragraph (d), concludes
deleted text endnew text begin the commissioner
publicly releases the data
new text end. Districts must provide parents sufficiently detailed summary
data to permit parents to appeal under Public Law 107-110, section 1116(b)(2). The
deleted text begin departmentdeleted text endnew text begin commissionernew text end shall annually post federal adequate yearly progress data and
state student growth data to deleted text beginitsdeleted text endnew text begin the department'snew text end public Web site no later than September
1new text begin, except that in years when adequate yearly progress reflects new performance standards,
the commissioner shall post federal adequate yearly progress data and state student growth
data no later than October 1
new text end.

Sec. 10.

Minnesota Statutes 2010, section 122A.09, subdivision 4, as amended by
Laws 2011, chapter 5, section 1, is amended to read:


Subd. 4.

License and rules.

(a) The board must adopt rules to license public school
teachers and interns subject to chapter 14.

(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 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. Teacher
preparation programs including alternative teacher preparation programs under section
122A.245, among other programs, must include a content-specific, board-approved,
performance-based assessment that measures teacher candidates in three areas: planning
for instruction and assessment; engaging students and supporting learning; and assessing
student learning.

(e) The board must adopt rules requiring candidates for initial licenses to successfully
complete 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.

(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 licensesnew text begin
based on appropriate professional competencies that are aligned with the board's licensing
system and students' diverse learning needs. The board must include these licenses in a
statewide differentiated licensing system that creates new leadership roles for successful
experienced teachers premised on a collaborative professional culture dedicated to meeting
students' diverse learning needs in the 21st century and formalizes mentoring and induction
for newly licensed teachers that is provided through a teacher support framework
new text end.

(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.

(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 EFFECTIVE DATE. new text end

new text begin This section is effective June 30, 2014.
new text end

Sec. 11.

Minnesota Statutes 2010, section 122A.16, as amended by Laws 2011, chapter
5, section 2, 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, including under section
122A.245, among other sectionsdeleted text begin, 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)
deleted text endnew text begin and is determined by local administrators as
having highly qualified status according to the approved Minnesota highly qualified plan.
Teachers delivering core content instruction must be deemed highly qualified at the local
level and reported to the state via the staff automated reporting system
new text end.

deleted text begin 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:
deleted text end

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

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

deleted text begin (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;
deleted text end

deleted text begin (4) test results from the Praxis II content test;
deleted text end

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

deleted text begin (6) evidence of the successful completion of course work or pedagogy courses; and
deleted text end

deleted text begin (7) evidence of the successful completion of high quality professional development
activities.
deleted text end

deleted text begin 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.
deleted text end

deleted text begin (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.
deleted text end

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. 12.

Minnesota Statutes 2010, section 122A.40, subdivision 5, is amended to read:


Subd. 5.

Probationary period.

(a) The first three consecutive years of a teacher's
first teaching experience in Minnesota in a single district is deemed to be a probationary
period of employment, and deleted text beginafter completion thereofdeleted text end, the probationary period in each
district in which the teacher is thereafter employed shall be one year. The school board
must adopt a plan for written evaluation of teachers during the probationary periodnew text begin that
is consistent with subdivision 8
new text end. Evaluation must occur at least three times new text beginperiodically
throughout
new text endeach new text beginschool new text endyear for a teacher performing services deleted text beginon 120 or more school days,
at least two times each year for a teacher performing services on 60 to 119 school days, and
at least one time each year for a teacher performing services on fewer than 60 school days
deleted text endnew text begin
during that school year; the first evaluation must occur within the first 90 days of teaching
service
new text end. Days devoted to parent-teacher conferences, teachers' workshops, and other
staff development opportunities and days on which a teacher is absent from school must
not be included in determining the number of school days on which a teacher performs
services. Except as otherwise provided in paragraph (b), during the probationary period
any annual contract with any teacher may or may not be renewed as the school board shall
see fit. However, the board must give any such teacher whose contract it declines to
renew for the following school year written notice to that effect before deleted text beginJulydeleted text endnew text begin Junenew text end 1. If the
teacher requests reasons for any nonrenewal of a teaching contract, the board must give
the teacher its reason in writing, including a statement that appropriate supervision was
furnished describing the nature and the extent of such supervision furnished the teacher
during the employment by the board, within ten days after receiving such request. The
school board may, after a hearing held upon due notice, discharge a teacher during the
probationary period for cause, effective immediately, under section 122A.44.

(b) A board must discharge a probationary teacher, effective immediately, upon
receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the teacher's
license has been revoked due to a conviction for child abuse or sexual abuse.

(c) A probationary teacher whose first three years of consecutive employment are
interrupted for active military service and who promptly resumes teaching consistent with
federal reemployment timelines for uniformed service personnel under United States
Code, title 38, section 4312(e), is considered to have a consecutive teaching experience
for purposes of paragraph (a).

(d) A probationary teacher must complete at least deleted text begin60deleted text endnew text begin 120new text end days of teaching service
each year during the probationary period. Days devoted to parent-teacher conferences,
teachers' workshops, and other staff development opportunities and days on which a
teacher is absent from school do not count as days of teaching service under this paragraph.

new text begin EFFECTIVE DATE. new text end

new text begin This section applies to all collective bargaining agreements
ratified after July 1, 2013.
new text end

Sec. 13.

Minnesota Statutes 2010, section 122A.40, subdivision 6, is amended to read:


Subd. 6.

Mentoring for probationary teachers.

A school board and an exclusive
representative of the teachers in the district must develop a probationary teacher peer
review process through joint agreementnew text begin that is consistent with subdivision 8new text end. The process
may include having trained observers serve as mentors or coaches or having teachers
participate in professional learning communities.

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 2014-2015 school year and later.
new text end

Sec. 14.

Minnesota Statutes 2010, section 122A.40, subdivision 8, is amended to read:


Subd. 8.

new text beginDevelopment, evaluation, 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 district deleted text beginshalldeleted text endnew text begin, consistent with paragraph (b), maynew text end
develop deleted text beginadeleted text endnew text begin teacher evaluation andnew text end peer review process for new text beginprobationary and new text endcontinuing
contract teachers through joint agreement. new text beginIf a school board and the exclusive
representative of the teachers do not agree to an annual teacher evaluation and peer review
process, then the school board and the exclusive representative of the teachers must
implement the plan for evaluation and review under paragraph (c).
new text endThe process 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 communitiesnew text begin, consistent with paragraph (b)new text end.

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
teachers:
new text end

new text begin (1) must, for probationary teachers, provide for all evaluations required under
subdivision 5;
new text end

new text begin (2) must establish a three-year professional review cycle for each teacher that
includes an individual growth and development plan, a peer review process, the
opportunity to participate in a professional learning community under paragraph (a), and
at least one summative evaluation performed by a qualified and trained evaluator such as a
school administrator. For the years when a tenured teacher is not evaluated by a qualified
and trained evaluator, the teacher must be evaluated by a peer review;
new text end

new text begin (3) must be based on professional teaching standards established in rule;
new text end

new text begin (4) must coordinate staff development activities under sections 122A.60 and
122A.61 with this evaluation process and teachers' evaluation outcomes;
new text end

new text begin (5) may provide time during the school day and school year for peer coaching and
teacher collaboration;
new text end

new text begin (6) may include mentoring and induction programs;
new text end

new text begin (7) must include an option for teachers to develop and present a portfolio
demonstrating evidence of reflection and professional growth, consistent with section
122A.18, subdivision 4, paragraph (b), and include teachers' own performance assessment
based on student work samples and examples of teachers' work, which may include video
among other activities for the summative evaluation;
new text end

new text begin (8) must use an agreed upon teacher value-added assessment model for the grade
levels and subject areas for which value-added data are available and establish state
or local measures of student growth for the grade levels and subject areas for which
value-added data are not available as a basis for 35 percent of teacher evaluation results;
new text end

new text begin (9) must use longitudinal data on student engagement and connection, and other
student outcome measures explicitly aligned with the elements of curriculum for which
teachers are responsible;
new text end

new text begin (10) must require qualified and trained evaluators such as school administrators to
perform summative evaluations;
new text end

new text begin (11) must give teachers not meeting professional teaching standards under clauses
(3) through (10) support to improve through a teacher improvement process that includes
established goals and timelines; and
new text end

new text begin (12) must discipline a teacher for not making adequate progress in the teacher
improvement process under clause (11) that may include a last chance warning,
termination, discharge, nonrenewal, transfer to a different position, a leave of absence, or
other discipline a school administrator determines is appropriate.
new text end

new text begin Data on individual teachers generated under this subdivision are personnel data
under section 13.43.
new text end

new text begin (c) The department, in consultation with parents who may represent parent
organizations and teacher and administrator representatives appointed by their respective
organizations, representing the Board of Teaching, the Minnesota Association of School
Administrators, the Minnesota School Boards Association, the Minnesota Elementary
and Secondary Principals Associations, Education Minnesota, and representatives of
the Minnesota Assessment Group, the Minnesota Business Partnership, the Minnesota
Chamber of Commerce, and Minnesota postsecondary institutions with research expertise
in teacher evaluation, must create and publish a teacher evaluation process that complies
with the requirements in paragraph (b) and applies to all teachers under this section
122A.40 and section 122A.41 for whom no agreement exists under paragraph (a) for an
annual teacher evaluation and peer review process. The teacher evaluation process created
under this subdivision does not create additional due process rights for probationary
teachers under subdivision 5.
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 2014-2015 school year and later.
new text end

Sec. 15.

Minnesota Statutes 2010, section 122A.40, subdivision 9, is amended to read:


Subd. 9.

Grounds for termination.

A continuing contract may be terminated,
effective at the close of the school year, upon any of the following grounds:

(a) Inefficiencynew text begin in teaching or in the management of a school, consistent with
subdivision 8, paragraph (b)
new text end;

(b) Neglect of duty, or persistent violation of school laws, rules, regulations, or
directives;

(c) Conduct unbecoming a teacher which materially impairs the teacher's educational
effectiveness;

(d) Other good and sufficient grounds rendering the teacher unfit to perform the
teacher's duties.

A contract must not be terminated upon one of the grounds specified in clause (a),
(b), (c), or (d), unless the teacher fails to correct the deficiency after being given written
notice of the specific items of complaint and reasonable time within which to remedy them.

new text begin EFFECTIVE DATE. new text end

new text begin This section applies to all collective bargaining agreements
ratified after July 1, 2014.
new text end

Sec. 16.

Minnesota Statutes 2010, section 122A.41, subdivision 1, is amended to read:


Subdivision 1.

Words, terms, and phrases.

Unless the language or context clearly
indicates that a different meaning is intended, the following words, terms, and phrases, for
the purposes of the following subdivisions in this section shall be defined as follows:

(a) Teachers. The term "teacher" includes every person regularly employed, as a
principal, or to give instruction in a classroom, or to superintend or supervise classroom
instruction, or as placement teacher and visiting teacher. Persons regularly employed as
counselors and school librarians shall be covered by these sections as teachers if licensed
as teachers or as school librarians.

(b) School board. The term "school board" includes a majority in membership
of any and all boards or official bodies having the care, management, or control over
public schools.

(c) Demote. The word "demote" means to reduce deleted text beginin rank or to transfer to a lower
branch of the service or to a position carrying a lower salary or
deleted text endnew text begin thenew text end compensationnew text begin a person
actually receives in the new position
new text end.

(d) Nonprovisional license. For purposes of this section, "nonprovisional license"
shall mean an entrance, continuing, or life license.

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.

Minnesota Statutes 2010, section 122A.41, subdivision 2, is amended to read:


Subd. 2.

Probationary period; discharge or demotion.

(a) All teachers in
the public schools in cities of the first class during the first three years of consecutive
employment shall be deemed to be in a probationary period of employment during which
period any annual contract with any teacher may, or may not, be renewed as the school
board, after consulting with the peer review committee charged with evaluating the
probationary teachers under subdivision 3, shall see fit. The school site management team
or the school board if there is no school site management team, shall adopt a plan for a
written evaluation of teachers during the probationary period according to deleted text beginsubdivisiondeleted text endnew text begin
subdivisions
new text end 3new text begin and 5new text end. Evaluation by the peer review committee charged with evaluating
probationary teachers under subdivision 3 shall occur at least three times new text beginperiodically
throughout
new text endeach new text beginschool new text endyear for a teacher performing services deleted text beginon 120 or more school
days, at least two times each year for a teacher performing services on 60 to 119 school
days, and at least one time each year for a teacher performing services on fewer than 60
school days
deleted text endnew text begin during that school year; the first evaluation must occur within the first 90 days
of teaching service
new text end. Days devoted to parent-teacher conferences, teachers' workshops,
and other staff development opportunities and days on which a teacher is absent from
school shall not be included in determining the number of school days on which a teacher
performs services. The school board may, during such probationary period, discharge or
demote a teacher for any of the causes as specified in this code. A written statement of the
cause of such discharge or demotion shall be given to the teacher by the school board at
least 30 days before such removal or demotion shall become effective, and the teacher so
notified shall have no right of appeal therefrom.

(b) A probationary teacher whose first three years of consecutive employment are
interrupted for active military service and who promptly resumes teaching consistent with
federal reemployment timelines for uniformed service personnel under United States
Code, title 38, section 4312(e), is considered to have a consecutive teaching experience
for purposes of paragraph (a).

(c) A probationary teacher must complete at least deleted text begin60deleted text endnew text begin 120new text end days of teaching service
each year during the probationary period. Days devoted to parent-teacher conferences,
teachers' workshops, and other staff development opportunities and days on which a
teacher is absent from school do not count as days of teaching service under this paragraph.

new text begin EFFECTIVE DATE. new text end

new text begin This section applies to all collective bargaining agreements
ratified after July 1, 2013.
new text end

Sec. 18.

Minnesota Statutes 2010, section 122A.41, subdivision 3, is amended to read:


Subd. 3.

Mentoring for probationary teachers.

A board and an exclusive
representative of the teachers in the district must develop a probationary teacher peer
review process through joint agreementnew text begin that is consistent with subdivision 5new text end. The process
may include having trained observers serve as mentors or coaches or having teachers
participate in professional learning communities.

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 2014-2015 school year and later.
new text end

Sec. 19.

Minnesota Statutes 2010, section 122A.41, subdivision 5, is amended to read:


Subd. 5.

new text beginDevelopment, evaluation, 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 district deleted text beginmustdeleted text endnew text begin, consistent with paragraph (b), maynew text end
develop deleted text beginadeleted text endnew text begin an annual teacher evaluation andnew text end peer review process for new text beginprobationary and
new text endnonprobationary teachers through joint agreement. new text beginIf a school board and the exclusive
representative of the teachers in the district do not agree to an annual teacher evaluation
and peer review process, then the school board and the exclusive representative of the
teachers must implement the plan for evaluation and review developed under paragraph
(c).
new text endThe process 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 communitiesnew text begin, consistent with paragraph (b)new text end.

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
teachers:
new text end

new text begin (1) must, for probationary teachers, provide for all evaluations required under
subdivision 5;
new text end

new text begin (2) must establish a three-year professional review cycle for each teacher that
includes an individual growth and development plan, a peer review process, the
opportunity to participate in a professional learning community under paragraph (a), and
at least one summative evaluation performed by a qualified and trained evaluator such
as a school administrator;
new text end

new text begin (3) must be based on professional teaching standards established in rule;
new text end

new text begin (4) must coordinate staff development activities under sections 122A.60 and
122A.61 with this evaluation process and teachers' evaluation outcomes;
new text end

new text begin (5) may provide time during the school day and school year for peer coaching and
teacher collaboration;
new text end

new text begin (6) may include mentoring and induction programs;
new text end

new text begin (7) must include an option for teachers to develop and present a portfolio
demonstrating evidence of reflection and professional growth, consistent with section
122A.18, subdivision 4, paragraph (b), and include teachers' own performance assessment
based on student work samples and examples of teachers' work, which may include video
among other activities for the summative evaluation;
new text end

new text begin (8) must use an agreed upon teacher value-added assessment model for the grade
levels and subject areas for which value-added data are available and establish state
or local measures of student growth for the grade levels and subject areas for which
value-added data are not available as a basis for 35 percent of teacher evaluation results;
new text end

new text begin (9) must use longitudinal data on student engagement and connection and other
student outcome measures explicitly aligned with the elements of curriculum for which
teachers are responsible;
new text end

new text begin (10) must require qualified and trained evaluators such as school administrators to
perform summative evaluations;
new text end

new text begin (11) must give teachers not meeting professional teaching standards under clauses
(3) through (10) support to improve through a teacher improvement process that includes
established goals and timelines; and
new text end

new text begin (12) must discipline a teacher for not making adequate progress in the teacher
improvement process under clause (11) that may include a last chance warning,
termination, discharge, nonrenewal, transfer to a different position, a leave of absence, or
other discipline a school administrator determines is appropriate.
new text end

new text begin Data on individual teachers generated under this subdivision are personnel data
under section 13.43.
new text end

new text begin (c) The department, in consultation with parents who may represent parent
organizations and teacher and administrator representatives appointed by their respective
organizations, representing the Board of Teaching, the Minnesota Association of School
Administrators, the Minnesota School Boards Association, the Minnesota Elementary
and Secondary Principals Associations, Education Minnesota, and representatives of
the Minnesota Assessment Group, the Minnesota Business Partnership, the Minnesota
Chamber of Commerce, and Minnesota postsecondary institutions with research expertise
in teacher evaluation, must create and publish a teacher evaluation process that complies
with the requirements in paragraph (b) and applies to all teachers under this section and
section 122A.41 for whom no agreement exists under paragraph (a) for an annual teacher
evaluation and peer review process. The teacher evaluation process created under this
subdivision does not create additional due process rights for probationary teachers under
subdivision 5.
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 2014-2015 school year and later.
new text end

Sec. 20.

Minnesota Statutes 2010, section 122A.41, subdivision 6, is amended to read:


Subd. 6.

Grounds for discharge or demotion.

(a) Except as otherwise provided
in paragraph (b), causes for the discharge or demotion of a teacher either during or after
the probationary period must be:

(1) immoral character, conduct unbecoming a teacher, or insubordination;

(2) failure without justifiable cause to teach without first securing the written release
of the school board having the care, management, or control of the school in which the
teacher is employed;

(3) inefficiency in teaching or in the management of a schoolnew text begin, consistent with
subdivision 5, paragraph (b)
new text end;

(4) affliction with active tuberculosis or other communicable disease must be
considered as cause for removal or suspension while the teacher is suffering from such
disability; or

(5) discontinuance of position or lack of pupils.

For purposes of this paragraph, conduct unbecoming a teacher includes an unfair
discriminatory practice described in section 363A.13.

(b) A probationary or continuing-contract teacher must be discharged immediately
upon receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the
teacher's license has been revoked due to a conviction for child abuse or sexual abuse.

new text begin EFFECTIVE DATE. new text end

new text begin This section applies to all collective bargaining agreements
ratified after July 1, 2014.
new text end

Sec. 21.

Minnesota Statutes 2010, 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 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 for the 2013-2014 school year and
later.
new text end

Sec. 22.

Minnesota Statutes 2010, 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 to new text end the policies,
rules, and regulations of the new text begin school 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 a principal's leadership skills and support and improve teaching
practices, school performance, and student achievement, a district must develop and
implement a performance-based system for annually evaluating school principals assigned
to supervise a school building within the district. The evaluation must be designed
to improve teaching and learning by supporting the principal in shaping the school's
professional environment and developing teacher quality, performance, and effectiveness.
The annual evaluation must:
new text end

new text begin (1) support and improve a principal's instructional leadership, organizational
management, and professional development, and strengthen the principal's capacity in the
areas of instruction, supervision, evaluation, and teacher development;
new text end

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

new text begin (3) be consistent with a principal's job description, a district's long-term plans and
goals, and the principal's own professional multiyear growth plans and goals, all of which
must support the principal's leadership behaviors and practices, rigorous curriculum,
school performance, and high-quality instruction;
new text end

new text begin (4) include on-the-job observations and previous evaluations;
new text end

new text begin (5) allow surveys to help identify a principal's effectiveness, leadership skills and
processes, and strengths and weaknesses in exercising leadership in pursuit of school
success;
new text end

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

new text begin (7) be linked to professional development that emphasizes improved teaching and
learning, curriculum and instruction, student learning, and a collaborative professional
culture; and
new text end

new text begin (8) for principals not meeting standards of professional practice or other criteria
under this subdivision, implement a plan to improve the principal's performance and
specify the procedure and consequence if the principal's performance is not improved.
new text end

new text begin The provisions of this paragraph are intended to provide districts with sufficient
flexibility to accommodate district needs and goals related to developing, supporting,
and evaluating principals.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2013-2014 school year and
later.
new text end

Sec. 23.

Minnesota Statutes 2010, section 123B.88, is amended by adding a
subdivision to read:


new text begin Subd. 1a. new text end

new text begin Full-service school zones. new text end

new text begin The board may establish a full-service
school zone by adopting a written resolution and may provide transportation for students
attending a school in that full-service school zone. A full-service school zone may be
established for a school that is located in an area with higher than average crime or other
social and economic challenges and that provides education, health or human services, or
other parental support in collaboration with a city, county, state, or nonprofit agency. The
pupil transportation must be intended to stabilize enrollment and reduce mobility at the
school located in a full-service school zone.
new text end

Sec. 24.

Minnesota Statutes 2010, section 123B.92, subdivision 1, as amended by
Laws 2011, chapter 103, section 3, 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, or the
residence of a person new text beginor other location new text endchosen by the pupil's parent or guardian, or an
after-school program for children operated by a political subdivision of the state, 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, residence, or program 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 new text beginfull-service school
zones,
new text endextraordinary 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
new text begin full-service school zones, new text endextraordinary 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;

(vii) 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

(viii) services described in clauses (i) to (vii), 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.

Sec. 25.

Minnesota Statutes 2010, section 124D.09, subdivision 5, is amended to read:


Subd. 5.

Authorization; notification.

Notwithstanding any other law to the
contrary, an 11th or 12th grade pupil enrolled in a school or an American Indian-controlled
tribal contract or grant school eligible for aid under section 124D.83, except a foreign
exchange pupil enrolled in a district under a cultural exchange program, may apply to an
eligible institution, as defined in subdivision 3, to enroll in nonsectarian courses offered by
that postsecondary institution. new text beginNotwithstanding any other law to the contrary, a 9th or 10th
grade pupil enrolled in a district or an American Indian-controlled tribal contract or grant
school eligible for aid under section 124D.83, except a foreign exchange pupil enrolled in
a district under a cultural exchange program, may apply to enroll in nonsectarian courses
offered under subdivision 10, if after all 11th and 12th grade students have applied for a
course, additional students are necessary to offer the course.
new text endIf an institution accepts a
secondary pupil for enrollment under this section, the institution shall send written notice
to the pupil, the pupil's school or school district, and the commissioner within ten days of
acceptance. The notice must indicate the course and hours of enrollment of that pupil. If
the pupil enrolls in a course for postsecondary credit, the institution must notify the pupil
about payment in the customary manner used by the institution.

Sec. 26.

Minnesota Statutes 2010, section 124D.09, subdivision 7, is amended to read:


Subd. 7.

Dissemination of information; notification of intent to enroll.

By March
1 of each year, a district must provide general information about the program to all pupils
in grades new text begin8, 9, new text end10new text begin,new text end and 11. To assist the district in planning, a pupil shall inform the district
by March 30 of each year of the pupil's intent to enroll in postsecondary courses during
the following school year. A pupil is not bound by notifying or not notifying the district
by March 30.

Sec. 27.

Minnesota Statutes 2010, section 124D.09, subdivision 8, is amended to read:


Subd. 8.

Limit on participation.

new text beginA pupil who first enrolls in grade 9 may not
enroll in postsecondary courses under this section for secondary credit for more than
the equivalent of four academic years. A pupil who first enrolls in grade 10 may not
enroll in postsecondary courses under this section for secondary credit for more than
the equivalent of three academic years.
new text endA pupil who first enrolls in grade 11 may not
enroll in postsecondary courses under this section for secondary credit for more than the
equivalent of two academic years. A pupil who first enrolls in grade 12 may not enroll in
postsecondary courses under this section for secondary credit for more than the equivalent
of one academic year. If a pupil in grade new text begin9, 10, new text end11new text begin,new text end or 12 first enrolls in a postsecondary
course for secondary credit during the school year, the time of participation shall be
reduced proportionately. If a pupil is in a learning year or other year-round program and
begins each grade in the summer session, summer sessions shall not be counted against the
time of participation. A pupil who has graduated from high school cannot participate in a
program under this section. A pupil who has completed course requirements for graduation
but who has not received a diploma may participate in the program under this section.

Sec. 28.

Minnesota Statutes 2010, section 124D.091, subdivision 2, is amended to read:


Subd. 2.

Eligibility.

A district that offers a concurrent enrollment course according
to an agreement under section 124D.09, subdivision 10, is eligible to receive aid for the
costs of providing postsecondary courses at the high school. Beginning in fiscal year 2011,
districts only are eligible for aid if the college or university concurrent enrollment courses
offered by the district are accredited by the National Alliance of Concurrent Enrollment
Partnership, in the process of being accredited, or are shown by clear evidence to be of
comparable standard to accredited coursesnew text begin, or are technical courses within a recognized
career and technical education program of study approved by the commissioner of
education and the chancellor of the Minnesota State Colleges and Universities
new text end.

Sec. 29.

Minnesota Statutes 2010, section 124D.10, as amended by Laws 2011,
chapters 27, section 2, and 90, section 3, is amended to read:


124D.10 CHARTER SCHOOLS.

Subdivision 1.

Purposes.

(a) The purpose of this section is to:

(1) improve pupil learning and student achievement;

(2) increase learning opportunities for pupils;

(3) encourage the use of different and innovative teaching methods;

(4) measure learning outcomes and create different and innovative forms of
measuring outcomes;

(5) establish new forms of accountability for schools; and

(6) create new professional opportunities for teachers, including the opportunity to
be responsible for the learning program at the school site.

(b) This section does not provide a means to keep open a school that deleted text beginotherwise would
be closed or to reestablish a school that has been closed. Applicants in these circumstances
bear the burden of proving that conversion to a charter school or establishment of a new
charter school fulfills the purposes specified in this subdivision, independent of the
school's closing
deleted text endnew text begin a school board decides to close. However, a school board may endorse
or authorize the establishing of a charter school to replace the school the board decided
to close. Applicants seeking a charter under this circumstance must demonstrate to the
authorizer that the charter sought is substantially different in purpose and program from
the school the board closed and that the proposed charter satisfies the requirements of this
subdivision. If the school board that closed the school authorizes the charter, it must
document in its affidavit to the commissioner that the charter is substantially different in
program and purpose from the school it closed
new text end.

An authorizer shall not approve an application submitted by a charter school
developer under subdivision 4, paragraph (a), if the application does not comply with this
subdivision. The commissioner shall not approve an affidavit submitted by an authorizer
under subdivision 4, paragraph (b), if the affidavit does not comply with this subdivision.

Subd. 2.

Applicability.

This section applies only to charter schools formed and
operated under this section.

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.

deleted text begin "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.
deleted text end

(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 institution, any person other than a
natural person that directly or indirectly, through one or more intermediaries, controls,
is controlled by, or is under common control with the nonpublic sectarian or religious
institution, and any other charitable organization under this clause that in the federal IRS
Form 1023, Part IV, describes activities indicating a religious purpose, that:

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

(ii) is registered with the attorney general's office;new text begin and
new text end

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

deleted text begin (iv)deleted text end is incorporated in the state of Minnesotanew text begin and has been operating continuously
for at least five years but does not operate a charter school
new text end;

(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) deleted text beginno more than threedeleted text end single-purpose authorizers 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 an authorizer under this paragraph must
submit a proposal to the commissioner that includes the provisions of paragraph (c) and
a five-year financial plan. Such authorizers shall consider and approve 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 deleted text begin60deleted text endnew text begin 45new text end business days of the application deadline. If the commissioner disapproves
the application, the commissioner must notify the applicant of the new text beginspecific new text enddeficiencies
new text begin in writing new text endand the applicant then has 20 business days to address the deficiencies to the
commissioner's satisfaction. new text beginAfter the 20 business days expire, the commissioner has 15
business days to make a final decision to approve or disapprove the application.
new text endFailing 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) deleted text beginThe affidavit to be submitted to and evaluated bydeleted text endnew text begin An applicant must include in
its application to
new text end the commissioner deleted text beginmust includedeleted text endnew text begin to be an approved authorizernew text end at least
the following:

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

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

(3) a description of the application and review process the authorizer will use to make
decisions regarding the granting of chartersdeleted text begin, which will include at least the following:
deleted text end

deleted text begin (i) how the statutory purposes defined in subdivision 1 are addressed;
deleted text end

deleted text begin (ii) the mission, goals, program model, and student performance expectations;
deleted text end

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

deleted text begin (iv) the school's governance plan;
deleted text end

deleted text begin (v) the financial management plan; and
deleted text end

deleted text begin (vi) the administration and operations plandeleted text end;

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

(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) new text begina description of the criteria and process the authorizer will use to grant expanded
applications under subdivision 4, paragraph (j);
new text end

new text begin (7) new text endthe 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

deleted text begin (7)deleted text endnew text begin (8)new text end an assurance specifying that the organization is committed to serving as
an authorizer for the full five-year term.

new text begin (e) new text endA disapproved applicant under this deleted text beginparagraphdeleted text endnew text begin sectionnew text end may resubmit an
application during a future application period.

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

deleted text begin (e)deleted text endnew text begin (g)new text end The authorizer must participate in department-approved training.

deleted text begin (f)deleted text endnew text begin (h)new text end An authorizer that chartered a school before August 1, 2009, must apply by
June 30, 2012, 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.

deleted text begin (g)deleted text endnew text begin (i)new text end 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.new text begin If the commissioner terminates a contract between
an authorizer and a charter school under this paragraph, the commissioner may assist the
charter school in acquiring a new authorizer.
new text end

deleted text begin (h)deleted text endnew text begin (j)new text end 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; deleted text beginor
deleted text end

(3) unsatisfactory performance as an approved authorizernew text begin; or
new text end

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

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 deleted text begincooperative under chapter 308A ordeleted text end 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 deleted text begincooperative under chapter 308A or as adeleted text end 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-approvednew text begin ongoingnew text end
trainingnew text begin throughout the member's termnew text end on board governance, new text beginincluding training on new text endthe
board's role and responsibilities, employment policies and practices, and financial
management. A board member who does not begin the required new text begininitial new text endtraining within six
months deleted text beginofdeleted text endnew text begin afternew text end being seated and complete deleted text beginthe requireddeleted text endnew text begin thatnew text end 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 deleted text begina time whendeleted text endnew text begin thenew text end school deleted text beginis in sessiondeleted text endnew text begin year
but may not be conducted on days when the school is closed for holidays or vacations
new text end.
The charter school board of directors shall be composed of at least five nonrelated
members and include: (i) at least one licensed teacher employed at the school or a licensed
teacher providing instruction under deleted text begina contactdeleted 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 an employee of the charter school
new 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 asnew text end
ex-officio nonvoting board membersnew text begin and may 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 deleted text beginshowdeleted text endnew text begin documentnew text end that:

(1) the deleted text beginexpansiondeleted text end proposed deleted text beginby the charter school is supported bydeleted text endnew text begin expansion plan
demonstrates
new text end need and projected enrollment;

(2) the deleted text begincharter schooldeleted text end 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 deleted text beginfiscallydeleted text endnew text begin financiallynew text end sound and deleted text beginhas the financial capacitydeleted text endnew text begin the
financing it needs
new text end to implement the proposed expansionnew text begin existsnew text end; and

(4) the deleted text beginauthorizer finds that thedeleted text end charter school has the new text begingovernance structure and
new text endmanagement 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 deleted text begin30deleted text endnew text begin 20new text end 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.

Subd. 4a.

Conflict of interest.

(a) An individual is prohibited from serving as a
member of the charter school board of directors if the individual, an immediate family
member, or the individual's partner is an owner, employee or agent of, or a contractor
with a for-profit or nonprofit entity new text beginor individual new text endwith 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) The 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.

(f) The 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.

Subd. 5.

Conversion of existing schools.

A board of an independent or special
school district may convert one or more of its existing schools to charter schools under
this section if 60 percent of the full-time teachers at the school sign a petition seeking
conversion. The conversion must occur at the beginning of an academic year.

Subd. 6.

Charter contract.

The authorization for a charter school must be in the
form of a written contract signed by the authorizer and the board of directors of the charter
school. The contract must be completed within 45 business days of the commissioner's
approval of the authorizer's affidavit. The authorizer shall submit to the commissioner a
copy of the signed charter contract within ten business days of its execution. The contract
for a charter school must be in writing and contain at least the following:

(1) a declaration of the purposes in subdivision 1 that the school intends to carry out
and how the school will report its implementation of those purposes;

(2) a description of the school program and the specific academic and nonacademic
outcomes that pupils must achieve;

(3) a statement of admission policies and procedures;

(4) a governance, management, and administration plan for the school;

(5) signed agreements from charter school board members to comply with all
federal and state laws governing organizational, programmatic, and financial requirements
applicable to charter schools;

(6) the criteria, processes, and procedures that the authorizer will use for ongoing
oversight of operational, financial, and academic performance;

(7) the performance evaluation that is a prerequisite for reviewing a charter contract
under subdivision 15;

(8) types and amounts of insurance liability coverage to be obtained by the charter
school;

(9) new text beginconsistent with subdivision 25, paragraph (d), a provision to indemnify and hold
harmless the authorizer and its officers, agents, and employees from any suit, claim,
or liability arising from any operation of the charter school, and the commissioner and
department officers, agents, and employees notwithstanding section 3.736;
new text end

new text begin (10) new text endthe term of the new text begininitial new text endcontract, which may be up to three years deleted text beginfor an initial
contract
deleted text end plus an additional preoperational planning year, and up to five years for a renewed
contractnew text begin or a contract with a new authorizer after a transfer of authorizers, new text end if warranted by
the school's academic, financial, and operational performance;

deleted text begin (10)deleted text endnew text begin (11)new text end how the board of directors or the operators of the charter school will
provide special instruction and services for children with a disability under sections
125A.03 to 125A.24, and 125A.65, a description of the financial parameters within
which the charter school will operate to provide the special instruction and services to
children with a disability;

deleted text begin (11)deleted text endnew text begin (12)new text end the process and criteria the authorizer intends to use to monitor and
evaluate the fiscal and student performance of the charter school, consistent with
subdivision 15; and

deleted text begin (12)deleted text endnew text begin (13)new text end the plan for an orderly closing of the school under chapter deleted text begin308A ordeleted text end 317A,
if the closure is a termination for cause, a voluntary termination, or a nonrenewal of
the contract, and that includes establishing the responsibilities of the school board of
directors and the authorizer and notifying the commissioner, authorizer, school district in
which the charter school is located, and parents of enrolled students about the closure,
the transfer of student records to students' resident districts, and procedures for closing
financial operations.

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 deleted text begincommissioner receives andeleted text end audit report deleted text beginindicatingdeleted text endnew text begin findsnew text end 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 resolvednew text begin. An auditor, 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 and authorizer upon request
new text end.

Subd. 7.

Public status; exemption from statutes and rules.

A charter school is
a public school and is part of the state's system of public education. A charter school is
exempt from all statutes and rules applicable to a school, school board, or school district
unless a statute or rule is made specifically applicable to a charter school or is included
in this section.

Subd. 8.

Federal, state, and local requirements.

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

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

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

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

(e) Charter schools must not be used as a method of providing education or
generating revenue for students who are being home-schooled.

(f) The primary focus of a charter school must be to provide a comprehensive
program of instruction for at least one grade or age group from five through 18 years
of age. Instruction may be provided to people younger than five years and older than
18 years of age.

(g) A charter school may not charge tuition.

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

(i) A charter school is subject to and must comply with the Pupil Fair Dismissal
Act, sections 121A.40 to 121A.56, and the Minnesota Public School Fee Law, sections
123B.34 to 123B.39.

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

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

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

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

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

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

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

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

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

Subd. 8a.

Aid reduction.

The commissioner may reduce a charter school's state aid
under section 127A.42 or 127A.43 if the charter school board fails to correct a violation
under this section.

Subd. 8b.

Aid reduction for violations.

The commissioner may reduce a charter
school's state aid by an amount not to exceed 60 percent of the charter school's basic
revenue for the period of time that a violation of law occurs.

Subd. 9.

Admission requirements.

A charter school may limit admission to:

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

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

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

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

A charter school shall give new text beginenrollment new text endpreference deleted text beginfor enrollmentdeleted text end to a sibling of an
enrolled pupil and to a foster child of that pupil's parents and may give preference for
enrolling children of the school's deleted text beginteachersdeleted text end new text beginstaff new text endbefore accepting other pupils by lot.

A charter school may not limit admission to pupils on the basis of intellectual ability,
measures of achievement or aptitude, or athletic ability and may not establish any criteria
or requirements for admission that are inconsistent with this subdivision.

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

Subd. 10.

Pupil performance.

A charter school must design its programs to at
least meet the outcomes adopted by the commissioner for public school students. In
the absence of the commissioner's requirements, the school must meet the outcomes
contained in the contract with the authorizer. The achievement levels of the outcomes
contained in the contract may exceed the achievement levels of any outcomes adopted by
the commissioner for public school students.

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.

(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 evaluations of those who hold administrative,
supervisory, or instructional leadership roles. The 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.

Subd. 12.

Pupils with a disability.

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

Subd. 13.

Length of school year.

A charter school must provide instruction
each year for at least the number of days required by section 120A.41. It may provide
instruction throughout the year according to sections 124D.12 to 124D.127 or 124D.128.

Subd. 14.

Annual public reports.

A charter school must publish an annual report
approved by the board of directors. The annual report must at least include information
on school enrollment, student attrition, governance and management, staffing, finances,
academic performance, operational performance, innovative practices and implementation,
and future plans. A charter school must distribute the annual report by publication, mail,
or electronic means to the commissioner, authorizer, school employees, and parents and
legal guardians of students enrolled in the charter school and must also post the report on
the charter school's official Web site. The reports are public data under chapter 13.

Subd. 15.

Review and comment.

(a) The authorizer shall provide a formal written
evaluation of the school's performance before the authorizer renews the charter contract.
The department must review and comment on the authorizer's evaluation process at the
time the authorizer submits its application for approval and each time the authorizer
undergoes its five-year review under subdivision 3, paragraph (e).

(b) An authorizer shall monitor and evaluate the fiscal, operational, and student
performance of the school, and may for this purpose annually assess a charter school
a fee according to paragraph (c). The agreed-upon fee structure must be stated in the
charter school contract.

(c) The fee that each charter school pays to an authorizer each year is the greater of:

(1) the basic formula allowance for that year; or

(2) the lesser of:

(i) the maximum fee factor times the basic formula allowance for that year; or

(ii) the fee factor times the basic formula allowance for that year times the charter
school's adjusted marginal cost pupil units for that year. The fee factor equals .005 in fiscal
year 2010, .01 in fiscal year 2011, .013 in fiscal year 2012, and .015 in fiscal years 2013
and later. The maximum fee factor equals 1.5 in fiscal year 2010, 2.0 in fiscal year 2011,
3.0 in fiscal year 2012, and 4.0 in fiscal years 2013 and later.

(d) The department and any charter school it charters must not assess or pay a fee
under paragraphs (b) and (c).

(e) For the preoperational planning period, the authorizer may assess a charter school
a fee equal to the basic formula allowance.

(f) By September 30 of each year, an authorizer shall submit to the commissioner
a statement of expenditures related to chartering activities during the previous school
year ending June 30. A copy of the statement shall be given to all schools chartered by
the authorizer.

Subd. 16.

Transportation.

(a) A charter school after its first fiscal year of operation
by March 1 of each fiscal year and a charter school by July 1 of its first fiscal year of
operation must notify the district in which the school is located and the Department of
Education if it will provide its own transportation or use the transportation services of the
district in which it is located for the fiscal year.

(b) If a charter school elects to provide transportation for pupils, the transportation
must be provided by the charter school within the district in which the charter school is
located. The state must pay transportation aid to the charter school according to section
124D.11, subdivision 2.

For pupils who reside outside the district in which the charter school is located, the
charter school is not required to provide or pay for transportation between the pupil's
residence and the border of the district in which the charter school is located. A parent
may be reimbursed by the charter school for costs of transportation from the pupil's
residence to the border of the district in which the charter school is located if the pupil is
from a family whose income is at or below the poverty level, as determined by the federal
government. The reimbursement may not exceed the pupil's actual cost of transportation
or 15 cents per mile traveled, whichever is less. Reimbursement may not be paid for
more than 250 miles per week.

At the time a pupil enrolls in a charter school, the charter school must provide the
parent or guardian with information regarding the transportation.

(c) If a charter school does not elect to provide transportation, transportation for
pupils enrolled at the school must be provided by the district in which the school is
located, according to sections 123B.88, subdivision 6, and 124D.03, subdivision 8, for a
pupil residing in the same district in which the charter school is located. Transportation
may be provided by the district in which the school is located, according to sections
123B.88, subdivision 6, and 124D.03, subdivision 8, for a pupil residing in a different
district. If the district provides the transportation, the scheduling of routes, manner and
method of transportation, control and discipline of the pupils, and any other matter relating
to the transportation of pupils under this paragraph shall be within the sole discretion,
control, and management of the district.

Subd. 17.

Leased space.

A charter school may lease space from an independent
or special school board eligible to be an authorizer, other public organization, private,
nonprofit nonsectarian organization, private property owner, or a sectarian organization
if the leased space is constructed as a school facility. The department must review and
approve or disapprove leases in a timely manner.

Subd. 17a.

Affiliated nonprofit building corporation.

(a) Before a charter school
may organize an affiliated nonprofit building corporation (i) to renovate or purchase an
existing facility to serve as a school or (ii) to construct a new school facility, an authorizer
must submit an affidavit to the commissioner for approval in the form and manner the
commissioner prescribes, and consistent with paragraphs (b) and (c) or (d).

(b) An affiliated nonprofit building corporation under this subdivision must:

(1) be incorporated under section 317A and comply with applicable Internal
Revenue Service regulations;

(2) submit to the commissioner each fiscal year a list of current board members
and a copy of its annual audit; and

(3) comply with government data practices law under chapter 13.

An affiliated nonprofit building corporation must not serve as the leasing agent for
property or facilities it does not own. A charter school that leases a facility from an
affiliated nonprofit building corporation that does not own the leased facility is ineligible
to receive charter school lease aid. The state is immune from liability resulting from a
contract between a charter school and an affiliated nonprofit building corporation.

(c) A charter school may organize an affiliated nonprofit building corporation to
renovate or purchase an existing facility to serve as a school if the charter school:

(1) has been operating for at least five consecutive school years deleted text beginand the school's
charter has been renewed for a five-year term
deleted text end;

(2) has had a net positive unreserved general fund balance as of June 30 in the
preceding five fiscal years;

(3) has a long-range strategic and financial plan;

(4) completes a feasibility study of available buildings; and

(5) documents deleted text beginsustainabledeleted text end enrollment projections and the need to use an affiliated
building corporation to renovate or purchase an existing facility to serve as a school.

(d) A charter school may organize an affiliated nonprofit building corporation to
construct a new school facility if the charter school:

(1) demonstrates the lack of facilities available to serve as a school;

(2) has been operating for at least eight consecutive school years;

(3) has had a net positive unreserved general fund balance as of June 30 in the
preceding eight fiscal years;

(4) completes a feasibility study of facility options;

(5) has a long-range strategic and financial plan that includes deleted text beginsustainabledeleted text end enrollment
projections and demonstrates the need for constructing a new school facility; and

(6) has a positive review and comment from the commissioner under section
123B.71.

Subd. 19.

Disseminate information.

(a) The authorizer, the operators, and the
department must disseminate information to the public on how to form and operate
a charter school. Charter schools must disseminate information about how to use
the offerings of a charter school. Targeted groups include low-income families and
communities, students of color, and students who are at risk of academic failure.

(b) Authorizers, operators, and the department also may disseminate information
about the successful best practices in teaching and learning demonstrated by charter
schools.

Subd. 20.

Leave to teach in a charter school.

If a teacher employed by a district
makes a written request for an extended leave of absence to teach at a charter school,
the district must grant the leave. The district must grant a leave not to exceed a total of
five years. Any request to extend the leave shall be granted only at the discretion of the
school board. The district may require that the request for a leave or extension of leave
be made before February 1 in the school year preceding the school year in which the
teacher intends to leave, or February 1 of the calendar year in which the teacher's leave is
scheduled to terminate. Except as otherwise provided in this subdivision and except for
section 122A.46, subdivision 7, the leave is governed by section 122A.46, including, but
not limited to, reinstatement, notice of intention to return, seniority, salary, and insurance.

During a leave, the teacher may continue to aggregate benefits and credits in the
Teachers' Retirement Association account under chapters 354 and 354A, consistent with
subdivision 22.

Subd. 21.

Collective bargaining.

Employees of the board of directors of a charter
school may, if otherwise eligible, organize under chapter 179A and comply with its
provisions. The board of directors of a charter school is a public employer, for the
purposes of chapter 179A, upon formation of one or more bargaining units at the school.
Bargaining units at the school must be separate from any other units within an authorizing
district, except that bargaining units may remain part of the appropriate unit within an
authorizing district, if the employees of the school, the board of directors of the school,
the exclusive representative of the appropriate unit in the authorizing district, and the
board of the authorizing district agree to include the employees in the appropriate unit of
the authorizing district.

Subd. 22.

Teacher and other employee retirement.

(a) Teachers in a charter
school must be public school teachers for the purposes of chapters 354 and 354a.

(b) Except for teachers under paragraph (a), employees in a charter school must be
public employees for the purposes of chapter 353.

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 new text beginbusiness new text enddays 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 deleted text beginadeleted text endnew text begin an informalnew text end
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 deleted text begin308A ordeleted text end 317A.

(c) If the authorizer and the charter school board of directors mutually agree to
terminate or not renew the contract, a change in authorizers is allowed if the commissioner
approves the deleted text begintransferdeleted text endnew text begin changenew text end 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 authorizer that is a party to the existing contract
deleted text begin at leastdeleted text end must inform the deleted text beginapproved different eligibledeleted text endnew text begin proposednew text end authorizer about the fiscal
and operational status and student performance of the school. Before the commissioner
determines whether to approve a deleted text begintransfer ofdeleted text end new text beginchange in new text endauthorizer, the deleted text begincommissioner firstdeleted text endnew text begin
proposed authorizer
new text end must deleted text begindetermine 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
deleted text endnew text begin identify any
outstanding issues in the proposed charter contract that were unresolved in the previous
charter contract and have the charter school agree to resolve those issues
new text end. If no deleted text begintransfer ofdeleted text end
new text begin change in new text endauthorizer 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, 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) repeated or major violations of the law.

deleted text begin (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.
deleted text end

Subd. 23a.

Related party lease costs.

(a) A charter school is prohibited from
entering a lease of real property with a related party unless the lessor is a nonprofit
corporation under chapter 317A or a cooperative under chapter 308A, and the lease cost is
reasonable under section 124D.11, subdivision 4, clause (1).

(b) For purposes of this section and section 124D.11:

(1) "related party" means an affiliate or immediate relative of the other party in
question, an affiliate of an immediate relative, or an immediate relative of an affiliate;

(2) "affiliate" means a person that directly or indirectly, through one or more
intermediaries, controls, is controlled by, or is under common control with another person;

(3) "immediate family" means an individual whose relationship by blood, marriage,
adoption, or partnering is no more remote than first cousin;

(4) "person" means an individual or entity of any kind; and

(5) "control" means the ability to affect the management, operations, or policy
actions or decisions of a person, whether through ownership of voting securities, by
contract, or otherwise.

(c) A lease of real property to be used for a charter school, not excluded in paragraph
(a), must contain the following statement: "This lease is subject to Minnesota Statutes,
section 124D.10, subdivision 23a."

(d) If a charter school enters into as lessee a lease with a related party and the
charter school subsequently closes, the commissioner has the right to recover from the
lessor any lease payments in excess of those that are reasonable under section 124D.11,
subdivision 4
, clause (1).

Subd. 24.

Pupil enrollment upon nonrenewal or termination of charter school
contract.

If a contract is not renewed or is terminated according to subdivision 23, a
pupil who attended the school, siblings of the pupil, or another pupil who resides in the
same place as the pupil may enroll in the resident district or may submit an application
to a nonresident district according to section 124D.03 at any time. Applications and
notices required by section 124D.03 must be processed and provided in a prompt manner.
The application and notice deadlines in section 124D.03 do not apply under these
circumstances. The closed charter school must transfer the student's educational records
within ten business days of closure to the student's school district of residence where the
records must be retained or transferred under section 120A.22, subdivision 7.

Subd. 25.

Extent of specific legal authority.

(a) The board of directors of a charter
school may sue and be sued.

(b) The board may not levy taxes or issue bonds.

(c) The commissioner, an authorizer, members of the board of an authorizer in
their official capacity, and employees of an authorizer are immune from civil or criminal
liability with respect to all activities related to a charter school they approve or authorize.
The board of directors shall obtain at least the amount of and types of insurance up to the
applicable tort liability limits under chapter 466. The charter school board must submit
a copy of the insurance policy to its authorizer and the commissioner before starting
operations. The charter school board must submit changes in its insurance carrier or policy
to its authorizer and the commissioner within 20 business days of the change.

new text begin (d) Notwithstanding section 3.736, the charter school shall assume full liability for
its activities and indemnify and hold harmless the authorizer and its officers, agents, and
employees from any suit, claim, or liability arising from any operation of the charter school
and the commissioner and department officers, agents, and employees. A charter school
is not required to indemnify or hold harmless a state employee if the state would not be
required to indemnify and hold the employee harmless under section 3.736, subdivision 9.
new text end

Sec. 30.

Minnesota Statutes 2010, section 124D.11, subdivision 4, is amended to read:


Subd. 4.

Building lease aid.

When a charter school finds it economically
advantageous to rent or lease a building or land for any instructional purposes and it
determines that the total operating capital revenue under section 126C.10, subdivision 13,
is insufficient for this purpose, it may apply to the commissioner for building lease aid
for this purpose. The commissioner must review and either approve or deny a lease aid
application using the following criteria:

(1) the reasonableness of the price based on current market values;

(2) the extent to which the lease conforms to applicable state laws and rules; and

(3) the appropriateness of the proposed lease in the context of the space needs and
financial circumstances of the charter school.

A charter school must not use the building lease aid it receives for custodial, maintenance
service, utility, or other operating costs. The amount of building lease aid per pupil unit
served for a charter school for any year shall not exceed the lesser of (a) 90 percent of
the approved cost or (b) the product of the pupil units served for the current school year
times deleted text beginthe greater of the charter school's building lease aid per pupil unit served for fiscal
year 2003, excluding the adjustment under Laws 2002, chapter 392, article 6, section 4,
or
deleted text end $1,200.

new text begin EFFECTIVE DATE. new text end

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

Sec. 31.

Minnesota Statutes 2010, section 124D.11, subdivision 9, is amended to read:


Subd. 9.

Payment of aids to charter schools.

(a) Notwithstanding section 127A.45,
subdivision 3
, aid payments for the current fiscal year to a charter school shall be of an
equal amount on each of the 24 payment dates.

(b) Notwithstanding paragraph (a) and section 127A.45, for a charter school ceasing
operation on or prior to June 30 of a school year, for the payment periods occurring after
the school ceases serving students, the commissioner shall withhold the estimated state aid
owed the school. The charter school board of directors and authorizer must submit to the
commissioner a closure plan under chapter 308A or 317A, and financial information about
the school's liabilities and assets. After receiving the closure plan, financial information,
an audit of pupil counts, documentation of lease expenditures, and monitoring of special
education expenditures, the commissioner may release cash withheld and may continue
regular payments up to the current year payment percentages if further amounts are
owed. If, based on audits and monitoring, the school received state aid in excess of the
amount owed, the commissioner shall retain aid withheld sufficient to eliminate the aid
overpayment. For a charter school ceasing operations prior to, or at the end of, a school
year, notwithstanding section 127A.45, subdivision 3, preliminary final payments may
be made after receiving the closure plan, audit of pupil counts, monitoring of special
education expenditures, documentation of lease expenditures, and school submission of
Uniform Financial Accounting and Reporting Standards (UFARS) financial data for the
final year of operation. Final payment may be made upon receipt of audited financial
statements under section 123B.77, subdivision 3.

(c) If a charter school fails to comply with the commissioner's directive to return,
for cause, federal or state funds administered by the department, the commissioner may
withhold an amount of state aid sufficient to satisfy the directive.

(d) If, within the timeline under section 471.425, a charter school fails to pay the state
of Minnesota, a school district, intermediate school district, or service cooperative after
receiving an undisputed invoice for goods and services, the commissioner may withhold
an amount of state aid sufficient to satisfy the claim and shall distribute the withheld
aid to the interested state agency, school district, intermediate school district, or service
cooperative. An interested state agency, school district, intermediate school district, or
education cooperative shall notify the commissioner when a charter school fails to pay an
undisputed invoice within 75 business days of when it received the original invoice.

(e) Notwithstanding section 127A.45, subdivision 3, and paragraph (a), 80 percent
of the start-up cost aid under subdivision 8 shall be paid within 45 days after the first day
of student attendance for that school year.

(f) In order to receive state aid payments under this subdivision, a charter school in
its first three years of operation must submit a school calendar in the form and manner
requested by the department and a quarterly report to the Department of Education. The
report must list each student by grade, show the student's start and end dates, if any,
with the charter school, and for any student participating in a learning year program,
the report must list the hours and times of learning year activities. The report must be
submitted not more than two weeks after the end of the calendar quarter to the department.
The department must develop a Web-based reporting form for charter schools to use
when submitting enrollment reports. A charter school in its fourth and subsequent year of
operation must submit a school calendar and enrollment information to the department in
the form and manner requested by the department.

(g) Notwithstanding sections 317A.701 to 317A.791, upon closure of a charter
school and satisfaction of creditors, cash and investment balances remaining shall be
returned to the state.

new text begin (h) A charter school must have a valid, signed contract under section 124D.10,
subdivision 6, on file at the Department of Education at least 15 days prior to the date of
first payment of state aid for the fiscal year.
new text end

new text begin (i) State aid entitlements shall be computed for a charter school only for the
portion of a school year for which it has a valid, signed contract under section 124D.10,
subdivision 6.
new text end

Sec. 32.

Minnesota Statutes 2010, section 124D.36, is amended to read:


124D.36 CITATION; deleted text beginMINNESOTA YOUTHWORKSdeleted text endnew text begin SERVEMINNESOTA
INNOVATION
new text end ACT.

Sections 124D.37 to 124D.45 shall be cited as the "deleted text beginMinnesota Youthworksdeleted text endnew text begin
ServeMinnesota Innovation
new text end Act."

Sec. 33.

Minnesota Statutes 2010, section 124D.37, is amended to read:


124D.37 PURPOSE OF deleted text beginMINNESOTAdeleted text end deleted text beginYOUTHWORKSdeleted text end new text beginSERVEMINNESOTA
INNOVATION
new text endACT.

The purposes of sections 124D.37 to 124D.45 are to:

(1) renew the ethic of civic responsibility in Minnesota;

(2) empower youth to improve their life opportunities through literacy, job
placement, and other essential skills;

(3) empower government to meet its responsibility to prepare young people to be
contributing members of society;

(4) help meet human, educational, environmental, and public safety needs,
particularly those needs relating to poverty;

(5) prepare a citizenry that is academically competent, ready for work, and socially
responsible;

(6) demonstrate the connection between youth and community service, community
service and education, and education and meaningful opportunities in the business
community;

(7) demonstrate the connection between providing opportunities for at-risk youth
and reducing crime rates and the social costs of troubled youth;

(8) create linkages for a comprehensive youth service and learning program in
Minnesota including school age programs, higher education programs, youth work
programs, and service corps programs; and

(9) coordinate federal and state activities that advance the purposes in this section.

Sec. 34.

Minnesota Statutes 2010, section 124D.38, subdivision 3, is amended to read:


Subd. 3.

Federal law.

"Federal law" means Public Law deleted text begin101-610deleted text endnew text begin 111-13new text end, as
amended, or any other federal law or program assisting youth community service,
work-based learning, or youth transition from school to work.

Sec. 35.

Minnesota Statutes 2010, section 124D.385, subdivision 3, is amended to read:


Subd. 3.

Duties.

(a) The commission shall:

(1) develop, with the assistance of the governor, the commissioner of education, and
affected state agencies, a comprehensive state plan to provide services under sections
124D.37 to 124D.45 and federal law;

(2) actively pursue public and private funding sources for services, including
funding available under federal law;

(3) administer the deleted text beginYouthworksdeleted text end new text beginServeMinnesota new text endgrant program under sections
124D.39 to 124D.44, including soliciting and approving grant applications from eligible
organizations, and administering individual postservice benefits;

(4) establish an evaluation plan for programs developed and services provided
under sections 124D.37 to 124D.45;

(5) report to the governor, commissioner of education, and legislature; and

(6) administer the federal AmeriCorps Program.

(b) Nothing in sections 124D.37 to 124D.45 precludes an organization from
independently seeking public or private funding to accomplish purposes similar to those
described in paragraph (a).

Sec. 36.

Minnesota Statutes 2010, section 124D.39, is amended to read:


124D.39 deleted text beginYOUTHWORKSdeleted text endnew text begin SERVEMINNESOTA INNOVATIONnew text end PROGRAM.

The deleted text beginYouthworksdeleted text endnew text begin ServeMinnesota Innovationnew text end program is establishednew text begin to provide
funding for the commission to leverage federal and private funding
new text end to fulfill the purposes
of section 124D.37. The deleted text beginYouthworksdeleted text endnew text begin ServeMinnesota Innovationnew text end program must
supplement existing programs and services. The program must not displace existing
programs and services, existing funding of programs or services, or existing employment
and employment opportunities. No eligible organization may terminate, layoff, or reduce
the hours of work of an employee to place or hire a program participant. No eligible
organization may place or hire an individual for a project if an employee is on layoff from
the same or a substantially equivalent position.

Sec. 37.

Minnesota Statutes 2010, section 124D.40, is amended to read:


124D.40 deleted text beginYOUTHWORKSdeleted text endnew text begin SERVEMINNESOTA INNOVATIONnew text end GRANTS.

Subdivision 1.

Application.

An eligible organization interested in receiving a
grant under sections 124D.39 to 124D.44 may prepare and submit an application to the
commission.new text begin As part of the grant application process, the commission must establish and
publish grant application guidelines that are consistent with this subdivision, section
124D.37, and Public Law 111-13; include criteria for reviewing an applicant's cost-benefit
analysis; and require grantees to use research-based measures of program outcomes to
generate valid and reliable data that are available to the commission for evaluation and
public reporting purposes.
new text end

Subd. 2.

Grant authority.

The commission must use any state appropriation and
any available federal funds, including any grant received under federal law, to award
grants to establish programs for deleted text beginYouthworksdeleted text endnew text begin ServeMinnesota Innovationnew text end. At least one
grant each must be available for a metropolitan proposal, a rural proposal, and a statewide
proposal. If a portion of the suburban metropolitan area is not included in the metropolitan
grant proposal, the statewide grant proposal must incorporate at least one suburban
metropolitan area. In awarding grants, the commission may select at least one residential
proposal and one nonresidential proposal.

Sec. 38.

Minnesota Statutes 2010, section 124D.42, is amended to read:


124D.42 deleted text beginYOUTHWORKS PROGRAM TRAINING;deleted text end READING CORPS.

Subd. 6.

Program training.

The commission must, within available resources:

(1) orient each grantee organization in the nature, philosophy, and purpose of the
program; deleted text beginand
deleted text end

(2) build an ethic of community service through general community service trainingnew text begin;
and
new text end

new text begin (3) provide guidance on integrating programmatic-based measurement into program
models
new text end.

Subd. 8.

Minnesota reading corps program.

(a) A Minnesota reading corps
program is established to provide deleted text beginAmericorpsdeleted text end new text beginServeMinnesota Innovation new text endmembers with a
data-based problem-solving model of literacy instruction to use in helping to train local
Head Start program providers, other prekindergarten program providers, and staff in
schools with students in kindergarten through grade 3 to evaluate and teach early literacy
skillsnew text begin, including comprehensive, scientifically based reading instruction under section
122A.06, subdivision 4,
new text end to children age 3 to grade 3.

(b) Literacy programs under this subdivision must comply with the provisions
governing literacy program goals and data use under section 119A.50, subdivision 3,
paragraph (b).

new text begin (c) The commission must submit a biennial report to the committees of the
legislature with jurisdiction over kindergarten through grade 12 education that records and
evaluates program data to determine the efficacy of the programs under this subdivision.
new text end

Sec. 39.

Minnesota Statutes 2010, section 124D.44, is amended to read:


124D.44 MATCH REQUIREMENTS.

deleted text begin Youthworksdeleted text endnew text begin ServeMinnesota Innovationnew text end grant funds must be used for the living
allowance, cost of employer taxes under sections 3111 and 3301 of the Internal Revenue
Code of 1986, workers' compensation coverage, health benefitsnew text begin, training and evaluationnew text end
for each program participant, and administrative expenses, which must not exceed
deleted text begin fivedeleted text endnew text begin sevennew text end percent of total program costs. deleted text beginYouthworks grant funds may also be used to
supplement applicant resources to fund postservice benefits for program participants.
deleted text end
Applicant resources, from sources and in a form determined by the commission, must
be used to provide for all other program costsdeleted text begin, including the portion of the applicant's
obligation for postservice benefits that is not covered by state or federal grant funds and
such costs as supplies, materials, transportation, and salaries and benefits of those staff
directly involved in the operation, internal monitoring, and evaluation of the program
deleted text end.

Sec. 40.

Minnesota Statutes 2010, section 124D.45, subdivision 2, is amended to read:


Subd. 2.

Interim report.

The commission must report deleted text beginsemiannuallydeleted text endnew text begin annuallynew text end to the
legislature with interim recommendations to change the program.

Sec. 41.

Minnesota Statutes 2010, section 124D.4531, subdivision 1, is amended to
read:


Subdivision 1.

Career and technical levy.

(a) A district with a career and technical
program approved under this section for the fiscal year in which the levy is certified may
levy an amount equal to the deleted text beginlesserdeleted text end new text begingreater new text endof:

(1) $80 times the district's average daily membership in grades deleted text begin10deleted text end new text begin9 new text endthrough 12 for
the fiscal year in which the levy is certified; or

(2) deleted text begin25deleted text end new text begin35 new text endpercent of approved expenditures in the fiscal year in which the levy is
certified for the following:

(i) salaries paid to essential, licensed personnel providing direct instructional
services to students in that fiscal yearnew text begin, including extended contracts,new text end 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 levy may be spent on
equipment purchases. Districts using the career and technical levy for equipment
purchases must report to the department on the improved learning opportunities for
students that result from the investment in equipment.

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

new text begin (d) The amount of the levy certified under this subdivision may not exceed
$17,850,000 for taxes payable in 2012, $15,520,000 for taxes payable in 2013, and
$15,545,000 for taxes payable in 2014.
new text end

new text begin (e) If the estimated levy exceeds the amount in paragraph (d), the commissioner
must reduce the percentage in paragraph (a), clause (2), until the estimated levy no longer
exceeds the limit in paragraph (d).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2012 and later.
new text end

Sec. 42.

new text begin [124D.855] SCHOOL SEGREGATION PROHIBITED.
new text end

new text begin The state, consistent with section 123B.30 and chapter 363A, does not condone
separating school children of different socioeconomic, demographic, ethnic, or racial
backgrounds into distinct public schools. Instead, the state's interest lies in offering
children a diverse and nondiscriminatory educational experience.
new text end

Sec. 43.

new text begin [124D.98] LITERACY INCENTIVE AID.
new text end

new text begin Subdivision 1. new text end

new text begin Literacy incentive aid. new text end

new text begin In fiscal year 2013 and later, a district's
literacy incentive aid equals the sum of the proficiency aid under subdivision 2, and the
growth aid under subdivision 3.
new text end

new text begin Subd. 2. new text end

new text begin Proficiency aid. new text end

new text begin In fiscal year 2013 and later, the proficiency aid for each
school is equal to the product of the school's proficiency allowance times the number
of pupils at the school on October 1 of the previous fiscal year. A school's proficiency
allowance is equal to the percentage of students in each building that meet or exceed
proficiency on the third grade reading Minnesota Comprehensive Assessment, averaged
across the previous three test administrations, times $85.
new text end

new text begin Subd. 3. new text end

new text begin Growth aid. new text end

new text begin In fiscal year 2013 and later, the growth aid for each school is
equal to the product of the school's growth allowance times the number of pupils enrolled
at the school on October 1 of the previous fiscal year. A school's growth allowance is
equal to the percentage of students at that school making medium or high growth, under
section 120B.299, on the fourth grade reading Minnesota Comprehensive Assessment,
averaged across the previous three test administrations, times $85.
new text end

Sec. 44. new text beginCHARTER SCHOOL START-UP AID.
new text end

new text begin Notwithstanding any law to the contrary, a charter school in its first year of operation
during fiscal year 2012 is not eligible for charter school start-up aid under Minnesota
Statutes, section 124D.11, subdivision 8.
new text end

Sec. 45. new text beginLITERACY INCENTIVE AID LIMIT.
new text end

new text begin Notwithstanding Minnesota Statutes, section 124D.98, subdivision 1, for fiscal year
2013 only, the commissioner must adjust the entitlement for literacy incentive aid under
Minnesota Statutes, section 124D.98, subdivision 1, to ensure that the total entitlement
does not exceed $48,585,000. If the literacy incentive aid exceeds the limit established in
this section, the aid must be reduced proportionately to match the limit.
new text end

Sec. 46. new text beginENGLISH LANGUAGE PROFICIENCY STANDARDS.
new text end

new text begin Subdivision 1. new text end

new text begin Standards. new text end

new text begin The Department of Education shall adopt, as statewide
standards, English language proficiency standards for instruction of students identified as
limited English proficient under Minnesota Statutes, sections 124D.58 to 124D.64.
new text end

new text begin Subd. 2. new text end

new text begin Adoption. new text end

new text begin Notwithstanding Minnesota Statutes, chapter 14, and sections
14.386, 120B.02, 120B.021, and 120B.023, the commissioner of education shall adopt
the most recent English language proficiency standards for English learners developed
by World-Class Instructional Design and Assessment in kindergarten through grade 12.
These standards shall be adopted as permanent rules when:
new text end

new text begin (1) the revisor of statutes approves the form of the rule by certificate;
new text end

new text begin (2) the commissioner signs an order adopting the rule; and
new text end

new text begin (3) a copy of the rule is published by the department in the State Register.
new text end

Sec. 47. new text beginIMPLEMENTING A PERFORMANCE-BASED EVALUATION
SYSTEM FOR PRINCIPALS.
new text end

new text begin (a) To implement the requirements of Minnesota Statutes, sections 123B.143,
subdivision 1, clause (3), and 123B.147, subdivision 3, paragraph (b), the commissioner of
education, the Minnesota Association of Secondary School Principals, and the Minnesota
Association of Elementary School Principals must convene a group of recognized and
qualified experts and interested stakeholders, including principals, superintendents,
teachers, school board members, and parents, among other stakeholders, to develop a
performance-based system model for annually evaluating school principals. In developing
the system model, the group must at least consider how principals develop and maintain:
new text end

new text begin (1) high standards for student performance;
new text end

new text begin (2) rigorous curriculum;
new text end

new text begin (3) quality instruction;
new text end

new text begin (4) a culture of learning and professional behavior;
new text end

new text begin (5) connections to external communities;
new text end

new text begin (6) systemic performance accountability; and
new text end

new text begin (7) leadership behaviors that create effective schools and improve school
performance, including how to plan for, implement, support, advocate for, communicate
about, and monitor continuous and improved learning.
new text end

new text begin The group also may consider whether to establish a multitiered evaluation system
that supports newly licensed principals in becoming highly skilled school leaders and
provides opportunities for advanced learning for more experienced school leaders.
new text end

new text begin (b) The commissioner, the Minnesota Association of Secondary School Principals,
and the Minnesota Association of Elementary School Principals must submit a
written report and all the group's working papers to the education committees of the
legislature by February 1, 2012, discussing the group's responses to paragraph (a) and its
recommendations for a performance-based system model for annually evaluating school
principals. The group convened under this section expires June 1, 2012.
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 principal evaluations beginning in the 2013-2014 school year and later.
new text end

Sec. 48. new text beginTIERED LICENSURE ADVISORY TASK FORCE.
new text end

new text begin (a) The Board of Teaching and the commissioner of education must jointly convene
and facilitate an advisory task force to develop recommendations for a statewide tiered
teacher licensure system, consistent with Minnesota Statutes, section 122A.09, subdivision
4, paragraph (g), that is premised on:
new text end

new text begin (1) appropriate research-based professional competencies that include content skills,
adaptive expertise, college-readiness preparation, multicultural skills, use of student
performance data, and skills for fostering citizenship, among other competencies that
improve all students' learning outcomes;
new text end

new text begin (2) ongoing teacher professional growth to enable teachers to develop multiple
professional competencies;
new text end

new text begin (3) an assessment system for evaluating teachers' performance that is aligned with
student expectations and value-added measures of student outcomes and includes an
emphasis on developing students' reading and literacy skills, among other measures and
outcomes, and recognizes and rewards successful teachers;
new text end

new text begin (4) an expectation that teachers progress through various stages of teaching
practice throughout their teaching careers and receive opportunities for leadership roles
commensurate with their practice and competency; and
new text end

new text begin (5) a periodic evaluation of the licensing structure to determine its effectiveness in
meeting students' learning needs.
new text end

new text begin When developing its recommendations, the task force is encouraged to consider, among
other resources, the draft "Model Core Teaching Standards" developed by the Interstate
Teacher Assessment and Support Consortium.
new text end

new text begin (b) Each of the following entities shall appoint a member to the advisory task force:
Education Minnesota, the Minnesota Association of School Administrators, the Minnesota
Association for Colleges of Teacher Education, the Minnesota Association of School
Personnel Administrators, the Minnesota Elementary School Principals Association, the
Minnesota Secondary School Principals Association, the Parents United Network, the
Minnesota Business Partnership, the Minnesota Chamber of Commerce, the Minnesota
School Boards Association, and the Minnesota Association of Career and Technical
Educators. The executive director of the Board of Teaching or the commissioner may
appoint additional advisory task force members. Task force members may seek advice
from the Educator Development and Resource Center at the University of Minnesota on
developing a research-based framework for a differentiated licensure system in Minnesota.
new text end

new text begin (c) Upon request, the commissioner must provide the task force with technical,
fiscal, and other support services.
new text end

new text begin (d) Task force members' terms and other task force matters are subject to Minnesota
Statutes, section 15.059. The commissioner may reimburse task force members from the
Department of Education's current operating budget but may not compensate task force
members for task force activities.
new text end

new text begin (e) The executive director of the Board of Teaching and the commissioner must
submit by February 15, 2012, a joint report to the education policy and finance committees
of the legislature recommending a differentiated statewide teacher licensing structure.
new text end

new text begin (f) The advisory task force expires on February 16, 2012.
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. 49. new text beginINTEGRATION REVENUE REPLACEMENT ADVISORY TASK
FORCE.
new text end

new text begin (a) The commissioner of education must convene a 12-member advisory task force to
develop recommendations for repurposing integration revenue funds to create and sustain
opportunities for students to achieve improved educational outcomes. The advisory task
force, among other things, must consider how districts may effectively narrow and close
the academic achievement gap and foster academic success for students by:
new text end

new text begin (1) pursuing specific academic achievement goals premised on continuous adapting
of best teaching practices and efficient use of resources; and
new text end

new text begin (2) identifying variables to show annual progress toward achieving student, school,
and district goals for student's academic success.
new text end

new text begin (b) The funding allocation for the new program should ensure funding stability for
districts between the current integration program and the new program. The money shall
be used for the purposes recommended and forwarded by the task force and approved and
appropriated by the legislature.
new text end

new text begin (c) The advisory task force is composed of: six members appointed by the
commissioner of education, three members appointed by the speaker of the house, and
three members appointed by the Subcommittee on Committees of the Committee on Rules
and Administration. The commissioner must convene the first meeting of the task force
and offer assistance to the task force upon request. Task force members must seek input
from organizations and individuals whose expertise can help inform the work of the
task force and must develop recommendations to improve the academic achievement of
students.
new text end

new text begin (d) The commissioner, on behalf of the task force, must submit a report to the
legislature by February 15, 2012, recommending how best to allocate funds previously
allocated under Minnesota Statutes, section 124D.86, to achieve improved educational
outcomes for students.
new text end

new text begin (e) The base appropriation for the new program in this section is $40,911,000 for
2014 and $68,488,000 for 2015.
new text end

new text begin (f) For taxes payable in 2013, districts may certify a levy in an amount equal to
the district's certified levy for taxes payable in 2012, under Minnesota Statutes, section
124D.86.
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. 50. new text beginAPPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are
appropriated from the general fund to the Department of Education for the fiscal years
designated.
new text end

new text begin Subd. 2. new text end

new text begin Charter school building lease aid. new text end

new text begin For building lease aid under Minnesota
Statutes, section 124D.11, subdivision 4:
new text end

new text begin $
new text end
new text begin 43,203,000
new text end
new text begin .....
new text end
new text begin 2012
new text end
new text begin $
new text end
new text begin 52,359,000
new text end
new text begin .....
new text end
new text begin 2013
new text end

new text begin The 2012 appropriation includes $13,336,000 for 2011 and $29,867,000 for 2012.
new text end

new text begin The 2013 appropriation includes $19,910,000 for 2012 and $32,449,000 for 2013.
new text end

new text begin Subd. 3. new text end

new text begin Charter school start-up aid. new text end

new text begin For charter school start-up cost aid under
Minnesota Statutes, section 124D.11, subdivision 8:
new text end

new text begin $
new text end
new text begin 171,000
new text end
new text begin .....
new text end
new text begin 2012
new text end
new text begin $
new text end
new text begin 34,000
new text end
new text begin .....
new text end
new text begin 2013
new text end

new text begin The 2012 appropriation includes $119,000 for 2011 and $52,000 for 2012.
new text end

new text begin The 2013 appropriation includes $34,000 for 2012 and $0 for 2013.
new text end

new text begin Subd. 4. new text end

new text begin Integration aid. new text end

new text begin For integration aid under Minnesota Statutes, section
124D.86:
new text end

new text begin $
new text end
new text begin 59,599,000
new text end
new text begin .....
new text end
new text begin 2012
new text end
new text begin $
new text end
new text begin 67,432,000
new text end
new text begin .....
new text end
new text begin 2013
new text end

new text begin The 2012 appropriation includes $19,272,000 for 2011 and $40,327,000 for 2012.
new text end

new text begin The 2013 appropriation includes $26,884,000 for 2012 and $40,548,000 for 2013.
new text end

new text begin The base for the final payment in fiscal year 2014 for fiscal year 2013 is $34,828,000.
new text end

new text begin Subd. 5. new text end

new text begin Literacy incentive aid. new text end

new text begin For literacy incentive aid under Minnesota
Statutes, section 124D.98:
new text end

new text begin $
new text end
new text begin 29,151,000
new text end
new text begin .....
new text end
new text begin 2013
new text end

new text begin The 2013 appropriation includes $0 for 2012 and $29,151,000 for 2013.
new text end

new text begin Subd. 6. new text end

new text begin Interdistrict desegregation or integration transportation grants. new text end

new text begin For
interdistrict desegregation or integration transportation grants under Minnesota Statutes,
section 124D.87:
new text end

new text begin $
new text end
new text begin 14,917,000
new text end
new text begin .....
new text end
new text begin 2012
new text end
new text begin $
new text end
new text begin 16,612,000
new text end
new text begin .....
new text end
new text begin 2013
new text end

new text begin Subd. 7. new text end

new text begin Success for the future. new text end

new text begin For American Indian success for the future grants
under Minnesota Statutes, section 124D.81:
new text end

new text begin $
new text end
new text begin 1,924,000
new text end
new text begin .....
new text end
new text begin 2012
new text end
new text begin $
new text end
new text begin 2,137,000
new text end
new text begin .....
new text end
new text begin 2013
new text end

new text begin The 2012 appropriation includes $641,000 for 2011 and $1,283,000 for 2012.
new text end

new text begin The 2013 appropriation includes $854,000 for 2012 and $1,283,000 for 2013.
new text end

new text begin Subd. 8. new text end

new text begin American Indian teacher preparation grants. new text end

new text begin For joint grants to assist
American Indian people to become teachers under Minnesota Statutes, section 122A.63:
new text end

new text begin $
new text end
new text begin 190,000
new text end
new text begin .....
new text end
new text begin 2012
new text end
new text begin $
new text end
new text begin 190,000
new text end
new text begin .....
new text end
new text begin 2013
new text end

new text begin Subd. 9. new text end

new text begin Tribal contract schools. new text end

new text begin For tribal contract school aid under Minnesota
Statutes, section 124D.83:
new text end

new text begin $
new text end
new text begin 1,883,000
new text end
new text begin .....
new text end
new text begin 2012
new text end
new text begin $
new text end
new text begin 2,206,000
new text end
new text begin .....
new text end
new text begin 2013
new text end

new text begin The 2012 appropriation includes $600,000 for 2011 and $1,283,000 for 2012.
new text end

new text begin The 2013 appropriation includes $855,000 for 2012 and $1,351,000 for 2013.
new text end

new text begin Subd. 10. new text end

new text begin Early childhood programs at tribal schools. new text end

new text begin For early childhood
family education programs at tribal contract schools under Minnesota Statutes, section
124D.83, subdivision 4:
new text end

new text begin $
new text end
new text begin 68,000
new text end
new text begin .....
new text end
new text begin 2012
new text end
new text begin $
new text end
new text begin 68,000
new text end
new text begin .....
new text end
new text begin 2013
new text end

new text begin Subd. 11. new text end

new text begin Statewide testing and reporting system. new text end

new text begin For the statewide testing and
reporting system under Minnesota Statutes, section 120B.30:
new text end

new text begin $
new text end
new text begin 15,150,000
new text end
new text begin .....
new text end
new text begin 2012
new text end
new text begin $
new text end
new text begin 15,150,000
new text end
new text begin .....
new text end
new text begin 2013
new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
new text end

new text begin Subd. 12. new text end

new text begin Examination fees; teacher training and support programs. new text end

new text begin (a) For
students' advanced placement and international baccalaureate examination fees under
Minnesota Statutes, section 120B.13, subdivision 3, and the training and related costs
for teachers and other interested educators under Minnesota Statutes, section 120B.13,
subdivision 1:
new text end

new text begin $
new text end
new text begin 4,500,000
new text end
new text begin .....
new text end
new text begin 2012
new text end
new text begin $
new text end
new text begin 4,500,000
new text end
new text begin .....
new text end
new text begin 2013
new text end

new text begin (b) The advanced placement program shall receive 75 percent of the appropriation
each year and the international baccalaureate program shall receive 25 percent of the
appropriation each year. The department, in consultation with representatives of the
advanced placement and international baccalaureate programs selected by the Advanced
Placement Advisory Council and IBMN, respectively, shall determine the amounts of
the expenditures each year for examination fees and training and support programs for
each program.
new text end

new text begin (c) Notwithstanding Minnesota Statutes, section 120B.13, subdivision 1, at least
$500,000 each year is for teachers to attend subject matter summer training programs
and follow-up support workshops approved by the advanced placement or international
baccalaureate programs. The amount of the subsidy for each teacher attending an
advanced placement or international baccalaureate summer training program or workshop
shall be the same. The commissioner shall determine the payment process and the amount
of the subsidy.
new text end

new text begin (d) The commissioner shall pay all examination fees for all students of low-income
families under Minnesota Statutes, section 120B.13, subdivision 3, and to the extent
of available appropriations shall also pay examination fees for students sitting for an
advanced placement examination, international baccalaureate examination, or both.
new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
new text end

new text begin Subd. 13. new text end

new text begin Concurrent enrollment programs. new text end

new text begin For concurrent enrollment programs
under Minnesota Statutes, section 124D.091:
new text end

new text begin $
new text end
new text begin 2,000,000
new text end
new text begin .....
new text end
new text begin 2012
new text end
new text begin $
new text end
new text begin 2,000,000
new text end
new text begin .....
new text end
new text begin 2013
new text end

new text begin If the appropriation is insufficient, the commissioner must proportionately reduce
the aid payment to each district.
new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
new text end

new text begin Subd. 14. new text end

new text begin Collaborative urban educator. new text end

new text begin For the collaborative urban educator
program:
new text end

new text begin $
new text end
new text begin 528,000
new text end
new text begin .....
new text end
new text begin 2012
new text end
new text begin $
new text end
new text begin 528,000
new text end
new text begin .....
new text end
new text begin 2013
new text end

new text begin $200,000 each year is for the Southeast Asian teacher program at Concordia
University, St. Paul; $164,000 each year is for the collaborative educator program at
the University of St. Thomas; and $164,000 each year is for the Center for Excellence
in Urban Teaching at Hamline University.
new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
new text end

new text begin Each institution shall prepare for the legislature, by January 15 of each year, a
detailed report regarding the funds used. The report must include the number of teachers
prepared as well as the diversity of each cohort of teachers produced.
new text end

new text begin Subd. 15. new text end

new text begin ServeMinnesota program. new text end

new text begin For funding ServeMinnesota programs under
Minnesota Statutes, sections 124D.37 to 124D.45:
new text end

new text begin $
new text end
new text begin 900,000
new text end
new text begin .....
new text end
new text begin 2012
new text end
new text begin $
new text end
new text begin 900,000
new text end
new text begin .....
new text end
new text begin 2013
new text end

new text begin A grantee organization may provide health and child care coverage to the dependents
of each participant enrolled in a full-time ServeMinnesota program to the extent such
coverage is not otherwise available.
new text end

new text begin Subd. 16. new text end

new text begin Student organizations. new text end

new text begin For student organizations:
new text end

new text begin $
new text end
new text begin 725,000
new text end
new text begin .....
new text end
new text begin 2012
new text end
new text begin $
new text end
new text begin 725,000
new text end
new text begin .....
new text end
new text begin 2013
new text end

new text begin $49,000 each year is for student organizations serving health occupations (HUSA).
new text end

new text begin $46,000 each year is for student organizations serving service occupations (HERO).
new text end

new text begin $106,000 each year is for student organizations serving trade and industry
occupations (SkillsUSA, secondary and postsecondary).
new text end

new text begin $101,000 each year is for student organizations serving business occupations
(DECA, BPA, secondary and postsecondary).
new text end

new text begin $158,000 each year is for student organizations serving agriculture occupations
(FFA, PAS).
new text end

new text begin $150,000 each year is for student organizations serving family and consumer science
occupations (FCCLA).
new text end

new text begin $115,000 each year is for student organizations serving marketing occupations
(DEX).
new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
new text end

new text begin Subd. 17. new text end

new text begin Early childhood literacy programs. new text end

new text begin For early childhood literacy
programs under Minnesota Statutes, section 119A.50, subdivision 3:
new text end

new text begin $
new text end
new text begin 4,125,000
new text end
new text begin .....
new text end
new text begin 2012
new text end
new text begin $
new text end
new text begin 4,125,000
new text end
new text begin .....
new text end
new text begin 2013
new text end

new text begin $4,125,000 each year is for leveraging federal and private funding to support
AmeriCorps members serving in the Minnesota Reading Corps program established by
ServeMinnesota, including costs associated with the training and teaching of early literacy
skills to children age three to grade 3 and the evaluation of the impact of the program
under Minnesota Statutes, sections 124D.38, subdivision 2, and 124D.42, subdivision 6.
new text end

new text begin Any balance in the first year does not cancel, but is available in the second year.
new text end

new text begin Subd. 18. new text end

new text begin Educational planning and assessment system (EPAS) program.
new text end

new text begin For the educational planning and assessment system program under Minnesota Statutes,
section 120B.128:
new text end

new text begin $
new text end
new text begin 829,000
new text end
new text begin .....
new text end
new text begin 2012
new text end
new text begin $
new text end
new text begin 829,000
new text end
new text begin .....
new text end
new text begin 2013
new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
new text end

Sec. 51. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2010, sections 124D.871; and 124D.88, new text end new text begin are repealed effective
for fiscal year 2012 and later.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2010, sections 123B.05; and 124D.38, subdivisions 4, 5,
and 6,
new text end new text begin are repealed.
new text end

new text begin (c) new text end new text begin Minnesota Statutes 2010, section 124D.11, subdivision 8, new text end new text begin is repealed effective
for fiscal year 2013 and later.
new text end

new text begin (d) new text end new text begin Minnesota Statutes 2010, section 124D.86, new text end new text begin is repealed effective for revenue
for fiscal year 2014.
new text end

ARTICLE 3

SPECIAL EDUCATION

Section 1.

Minnesota Statutes 2010, 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 begin anew text end physical 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.

Sec. 2.

Minnesota Statutes 2010, section 125A.0942, subdivision 3, is amended to read:


Subd. 3.

Physical holding or seclusion.

Physical holding or seclusion may be used
only in an emergency. A school that uses physical holding or seclusion shall meet the
following requirements:

(1) the physical holding or seclusion must be the least intrusive intervention that
effectively responds to the emergency;

(2) physical holding or seclusion must end when the threat of harm ends and the
staff determines that the child can safely return to the classroom or activity;

(3) staff must directly observe the child while physical holding or seclusion is being
used;

(4) each time physical holding or seclusion is used, the staff person who implements
or oversees the physical holding or seclusion shall document, as soon as possible after the
incident concludes, the following information:

(i) a description of the incident that led to the physical holding or seclusion;

(ii) why a less restrictive measure failed or was determined by staff to be
inappropriate or impractical;

(iii) the time the physical holding or seclusion began and the time the child was
released; and

(iv) a brief record of the child's behavioral and physical status;

(5) the room used for seclusion must:

(i) be at least six feet by five feet;

(ii) be well lit, well ventilated, adequately heated, and clean;

(iii) have a window that allows staff to directly observe a child in seclusion;

(iv) have tamperproof fixtures, electrical switches located immediately outside the
door, and secure ceilings;

(v) have doors that open out and are unlocked, locked with keyless locks that
have immediate release mechanisms, or locked with locks that have immediate release
mechanisms connected with a fire and emergency system; and

(vi) not contain objects that a child may use to injure the child or others; deleted text beginand
deleted text end

(6) before using a room for seclusion, a school must:

(i) receive written notice from local authorities that the room and the locking
mechanisms comply with applicable building, fire, and safety codes; and

(ii) register the room with the commissioner, who may view that roomnew text begin; and
new text end

new text begin (7) until August 1, 2012, a school district may use prone restraints under the
following conditions:
new text end

new text begin (i) a district has provided to the department a list of staff who have had specific
training on the use of prone restraints;
new text end

new text begin (ii) a district provides information on the type of training that was provided and
by whom;
new text end

new text begin (iii) prone restraints may only be used by staff who have received specific training;
new text end

new text begin (iv) each incident of the use of prone restraints is reported to the department within
five working days on a form provided by the department or on a district's restrictive
procedure documentation form; and
new text end

new text begin (v) a district, prior to using prone restraints, must review any known medical or
psychological limitations that contraindicate the use of prone restraints.
new text end

new text begin The department will report back to the chairs and ranking minority members of the
legislative committees with primary jurisdiction over education policy by February 1,
2012, on the use of prone restraints in the schools
new text end.

Sec. 3.

Minnesota Statutes 2010, section 125A.15, is amended to read:


125A.15 PLACEMENT IN ANOTHER DISTRICT; RESPONSIBILITY.

The responsibility for special instruction and services for a child with a disability
temporarily placed in another district for care and treatment shall be determined in the
following manner:

(a) The district of residence of a child shall be the district in which the child's parent
resides, if living, or the child's guardiandeleted text begin, or the district designated by the commissioner
if neither parent nor guardian is living within the state
deleted text end.new text begin If there is a dispute between
school districts regarding residency, the district of residence is the district designated by
the commissioner.
new text end

(b) If a district other than the resident district places a pupil for care and treatment,
the district placing the pupil must notify and give the resident district an opportunity to
participate in the placement decision. When an immediate emergency placement of a
pupil is necessary and time constraints foreclose a resident district from participating in
the emergency placement decision, the district in which the pupil is temporarily placed
must notify the resident district of the emergency placement within 15 days. The resident
district has up to five business days after receiving notice of the emergency placement
to request an opportunity to participate in the placement decision, which the placing
district must then provide.

(c) When a child is temporarily placed for care and treatment in a day program
located in another district and the child continues to live within the district of residence
during the care and treatment, the district of residence is responsible for providing
transportation to and from the care and treatment program and an appropriate educational
program for the child. The resident district may establish reasonable restrictions on
transportation, except if a Minnesota court or agency orders the child placed at a day care
and treatment program and the resident district receives a copy of the order, then the
resident district must provide transportation to and from the program unless the court or
agency orders otherwise. Transportation shall only be provided by the resident district
during regular operating hours of the resident district. The resident district may provide the
educational program at a school within the district of residence, at the child's residence, or
in the district in which the day treatment center is located by paying tuition to that district.

(d) When a child is temporarily placed in a residential program for care and
treatment, the nonresident district in which the child is placed is responsible for providing
an appropriate educational program for the child and necessary transportation while the
child is attending the educational program; and must bill the district of the child's residence
for the actual cost of providing the program, as outlined in section 125A.11, except as
provided in paragraph (e). However, the board, lodging, and treatment costs incurred in
behalf of a child with a disability placed outside of the school district of residence by the
commissioner of human services or the commissioner of corrections or their agents, for
reasons other than providing for the child's special educational needs must not become the
responsibility of either the district providing the instruction or the district of the child's
residence. For the purposes of this section, the state correctional facilities operated on a
fee-for-service basis are considered to be residential programs for care and treatment.

(e) A privately owned and operated residential facility may enter into a contract
to obtain appropriate educational programs for special education children and services
with a joint powers entity. The entity with which the private facility contracts for special
education services shall be the district responsible for providing students placed in that
facility an appropriate educational program in place of the district in which the facility is
located. If a privately owned and operated residential facility does not enter into a contract
under this paragraph, then paragraph (d) applies.

(f) The district of residence shall pay tuition and other program costs, not including
transportation costs, to the district providing the instruction and services. The district of
residence may claim general education aid for the child as provided by law. Transportation
costs must be paid by the district responsible for providing the transportation and the state
must pay transportation aid to that district.

Sec. 4.

Minnesota Statutes 2010, 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 initialnew text begin
and annual
new text end written notice to the enrolled child's parent or legal representative of its intent
to seek reimbursement from medical assistance or MinnesotaCare for the deleted text beginindividualdeleted text endnew text begin
individualized
new text end education deleted text beginplandeleted text endnew text begin programnew text end health-related services provided by the district.new text begin
The initial notice must give the child's parent or legal representative the right to request
a copy of the child's education records on the health-related services that the district
provided to the child and disclosed to a third-party payer.
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 consequence.

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

(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.

Sec. 5.

Minnesota Statutes 2010, 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. 6.

Minnesota Statutes 2010, section 125A.21, subdivision 5, is amended to read:


Subd. 5.

Informed consent.

When obtaining informed consent, consistent with
sections 13.05, subdivision 4adeleted 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 300
new text end, to bill health plans for covered services, the
school district must notify the legal representative (1) that the cost of the person's private
health insurance premium may increase due to providing the covered service in the school
setting, (2) that the school district may pay certain enrollee health plan costs, including
but not limited to, co-payments, coinsurance, deductibles, premium increases or other
enrollee cost-sharing amounts for health and related services required by an individual
service plan, or 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. 7.

Minnesota Statutes 2010, 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 deleted text beginindividualdeleted text endnew text begin individualizednew text end education deleted text beginplandeleted text endnew text begin programnew text end,
consistent with section 13.32, subdivision 3, paragraph (a),new text begin and Code of Federal
Regulations, title 34, parts 99 and 300;
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 individualnew text begin, including consent that the parent or legal
representative gave as part of the application process for MinnesotaCare or medical
assistance under section 256B.08, subdivision 1
new text end. The school district shall disclose only
that information necessary for the health plan company to decide matters of coverage and
payment. A health plan company may use the information only for making decisions
regarding coverage and payment, and for any other use permitted by law.

Sec. 8.

Minnesota Statutes 2010, section 125A.51, is amended to read:


125A.51 PLACEMENT OF CHILDREN WITHOUT DISABILITIES;
EDUCATION AND TRANSPORTATION.

The responsibility for providing instruction and transportation for a pupil without a
disability who has a short-term or temporary physical or emotional illness or disability, as
determined by the standards of the commissioner, and who is temporarily placed for care
and treatment for that illness or disability, must be determined as provided in this section.

(a) The school district of residence of the pupil is the district in which the pupil's
parent or guardian residesnew text begin. If there is a dispute between school districts regarding
residency, the district of residence is the district designated by the commissioner
new text end.

(b) When parental rights have been terminated by court order, the legal residence
of a child placed in a residential or foster facility for care and treatment is the district in
which the child resides.

(c) Before the placement of a pupil for care and treatment, the district of residence
must be notified and provided an opportunity to participate in the placement decision.
When an immediate emergency placement is necessary and time does not permit
resident district participation in the placement decision, the district in which the pupil is
temporarily placed, if different from the district of residence, must notify the district
of residence of the emergency placement within 15 days of the placement. When a
nonresident district makes an emergency placement without first consulting with the
resident district, the resident district has up to five business days after receiving notice
of the emergency placement to request an opportunity to participate in the placement
decision, which the placing district must then provide.

(d) When a pupil without a disability is temporarily placed for care and treatment
in a day program and the pupil continues to live within the district of residence during
the care and treatment, the district of residence must provide instruction and necessary
transportation to and from the care and treatment program for the pupil. The resident
district may establish reasonable restrictions on transportation, except if a Minnesota court
or agency orders the child placed at a day care and treatment program and the resident
district receives a copy of the order, then the resident district must provide transportation
to and from the program unless the court or agency orders otherwise. Transportation shall
only be provided by the resident district during regular operating hours of the resident
district. The resident district may provide the instruction at a school within the district of
residence, at the pupil's residence, or in the case of a placement outside of the resident
district, in the district in which the day treatment program is located by paying tuition to
that district. The district of placement may contract with a facility to provide instruction
by teachers licensed by the state Board of Teaching.

(e) When a pupil without a disability is temporarily placed in a residential program
for care and treatment, the district in which the pupil is placed must provide instruction
for the pupil and necessary transportation while the pupil is receiving instruction, and in
the case of a placement outside of the district of residence, the nonresident district must
bill the district of residence for the actual cost of providing the instruction for the regular
school year and for summer school, excluding transportation costs.

(f) Notwithstanding paragraph (e), if the pupil is homeless and placed in a public or
private homeless shelter, then the district that enrolls the pupil under section 127A.47,
subdivision 2
, shall provide the transportation, unless the district that enrolls the pupil
and the district in which the pupil is temporarily placed agree that the district in which
the pupil is temporarily placed shall provide transportation. When a pupil without a
disability is temporarily placed in a residential program outside the district of residence,
the administrator of the court placing the pupil must send timely written notice of the
placement to the district of residence. The district of placement may contract with a
residential facility to provide instruction by teachers licensed by the state Board of
Teaching. For purposes of this section, the state correctional facilities operated on a
fee-for-service basis are considered to be residential programs for care and treatment.

(g) The district of residence must include the pupil in its residence count of pupil
units and pay tuition as provided in section 123A.488 to the district providing the
instruction. Transportation costs must be paid by the district providing the transportation
and the state must pay transportation aid to that district. For purposes of computing state
transportation aid, pupils governed by this subdivision must be included in the disabled
transportation category if the pupils cannot be transported on a regular school bus route
without special accommodations.

Sec. 9.

Minnesota Statutes 2010, 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 is not
required to provide education services under this section to a student who:
new text end

new text begin (1) is not a resident of Minnesota;
new text end

new text begin (2) does not have an individualized education program; and
new text end

new text begin (3) does not have a tuition arrangement or agreement to pay the cost of education
from the placing authority.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011, for fiscal year 2012
and later.
new text end

Sec. 10.

Minnesota Statutes 2010, 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 deleted text beginblind-deafdeleted text endnew text begin deafblindnew text end, may be admitted to
the Academy for the Deaf. A pupil who is blind or visually impaired, deleted text beginblind-deafdeleted text endnew text begin deafblindnew text end,
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 incurs 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 academy members of 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

Sec. 11. new text beginAPPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are
appropriated from the general fund to the Department of Education for the fiscal years
designated.
new text end

new text begin Subd. 2. new text end

new text begin Special education; regular. new text end

new text begin For special education aid under Minnesota
Statutes, section 125A.75:
new text end

new text begin $
new text end
new text begin 732,658,000
new text end
new text begin .....
new text end
new text begin 2012
new text end
new text begin $
new text end
new text begin 855,605,000
new text end
new text begin .....
new text end
new text begin 2013
new text end

new text begin The 2012 appropriation includes $235,975,000 for 2011 and $496,683,000 for 2012.
new text end

new text begin The 2013 appropriation includes $331,121,000 for 2012 and $524,484,000 for 2013.
new text end

new text begin Subd. 3. new text end

new text begin Aid for children with disabilities. new text end

new text begin For aid under Minnesota Statutes,
section 125A.75, subdivision 3, for children with disabilities placed in residential facilities
within the district boundaries for whom no district of residence can be determined:
new text end

new text begin $
new text end
new text begin 1,648,000
new text end
new text begin .....
new text end
new text begin 2012
new text end
new text begin $
new text end
new text begin 1,745,000
new text end
new text begin .....
new text end
new text begin 2013
new text end

new text begin If the appropriation for either year is insufficient, the appropriation for the other
year is available.
new text end

new text begin Subd. 4. new text end

new text begin Travel for home-based services. new text end

new text begin For aid for teacher travel for home-based
services under Minnesota Statutes, section 125A.75, subdivision 1:
new text end

new text begin $
new text end
new text begin 322,000
new text end
new text begin .....
new text end
new text begin 2012
new text end
new text begin $
new text end
new text begin 358,000
new text end
new text begin .....
new text end
new text begin 2013
new text end

new text begin The 2012 appropriation includes $107,000 for 2011 and $215,000 for 2012.
new text end

new text begin The 2013 appropriation includes $142,000 for 2012 and $216,000 for 2013.
new text end

new text begin Subd. 5. new text end

new text begin Special education; excess costs. new text end

new text begin For excess cost aid under Minnesota
Statutes, section 125A.79, subdivision 7:
new text end

new text begin $
new text end
new text begin 103,978,000
new text end
new text begin .....
new text end
new text begin 2012
new text end
new text begin $
new text end
new text begin 115,304,000
new text end
new text begin .....
new text end
new text begin 2013
new text end

new text begin The 2012 appropriation includes $53,449,000 for 2011 and $50,529,000 for 2012.
new text end

new text begin The 2013 appropriation includes $63,273,000 for 2012 and $52,031,000 for 2013.
new text end

new text begin Subd. 6. new text end

new text begin Court-placed special education revenue. new text end

new text begin For reimbursing serving
school districts for unreimbursed eligible expenditures attributable to children placed in
the serving school district by court action under Minnesota Statutes, section 125A.79,
subdivision 4:
new text end

new text begin $
new text end
new text begin 80,000
new text end
new text begin .....
new text end
new text begin 2012
new text end
new text begin $
new text end
new text begin 82,000
new text end
new text begin .....
new text end
new text begin 2013
new text end

new text begin Subd. 7. new text end

new text begin Special education out-of-state tuition. new text end

new text begin For special education out-of-state
tuition according to Minnesota Statutes, section 125A.79, subdivision 8:
new text end

new text begin $
new text end
new text begin 250,000
new text end
new text begin .....
new text end
new text begin 2012
new text end
new text begin $
new text end
new text begin 250,000
new text end
new text begin .....
new text end
new text begin 2013
new text end

Sec. 12. 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. 13. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2010, section 125A.54, new text end new text begin is repealed.
new text end

ARTICLE 4

FACILITIES AND TECHNOLOGIES

Section 1.

Minnesota Statutes 2010, section 123B.54, is amended to read:


123B.54 DEBT SERVICE APPROPRIATION.

(a) deleted text begin$17,161,000deleted text endnew text begin $11,022,000new text end in fiscal year 2012 deleted text beginand $19,175,000deleted text endnew text begin, $19,484,000new text end in
fiscal year 2013new text begin, $23,588,000 in fiscal year 2014, and $23,967,000 in fiscal year 2015new text end and
later are appropriated from the general fund to the commissioner of education for payment
of debt service equalization aid under section 123B.53.

(b) The appropriations in paragraph (a) must be reduced by the amount of any
money specifically appropriated for the same purpose in any year from any state fund.

Sec. 2.

Minnesota Statutes 2010, section 123B.57, 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 adoptednew text begin and confirmednew text end by 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 deleted text beginto correctdeleted text endnew text begin for the correction ofnew text end fire and life
safety hazardsdeleted text begin, or for thedeleted 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 beginfound in school buildings or property owned or being acquired by the district,
or the
deleted 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, repair of unsafe outdoor playground
equipment, 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 testing; copper in water testing; cleanup after
major weather-related disasters or flooding; reduction of excessive organic and inorganic
levels in wells and 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; automated external defibrillators and other emergency plan
equipment and supplies specific to the district's emergency action plan;
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 usednew text begin:
new text end

new text begin (1) to finance a lease purchase agreement, installment purchase agreement, or other
deferred payments agreement;
new text end

new text begin (2) for the construction of new facilities, remodeling of existing facilities, or the
purchase of portable classrooms;
new text end

new text begin (3) for interest or other financing expenses;
new text end

new text begin (4) for energy-efficiency projects under section 123B.65, for a building or property
or part of a building or property used for postsecondary instruction or administration or for
a purpose unrelated to elementary and secondary education;
new text end

new text begin (5)new text end for replacement of building materials or facilities including roof, walls, windows,
internal fixtures and flooring, nonhealth and safety costs associated with demolition of
facilities, structural repair or replacement of facilities due to unsafe conditions, violence
prevention and facility security, ergonomics,new text begin or public announcement systems and
emergency communication devices; or
new text end

new text begin (6) fornew text end building and heating, ventilating and air conditioning supplies, maintenance,
and cleaning activities. All assessments, investigations, inventories, and support
equipment not leading to the engineering or construction of a project shall be included in
the health, safety, and environmental management costs in subdivision 8, paragraph (a).

new text begin Subd. 6b. new text end

new text begin Health and safety projects. new text end

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

Sec. 3.

Minnesota Statutes 2010, 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 district proposes a new capital project to begin at the time the existing
capital project expires and 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. An election to renew authority under this
paragraph may be called at any time that is otherwise authorized by this subdivision. The
ballot notice required under section 275.60 may be modified to read:
new text end

new text begin "BY VOTING YES ON THIS BALLOT QUESTION, YOU ARE VOTING
TO RENEW AN EXISTING CAPITAL PROJECTS REFERENDUM THAT IS
SCHEDULED TO EXPIRE."
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 the day following final enactment for
referenda conducted on or after the 53rd day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2010, section 123B.71, subdivision 5, is amended to read:


Subd. 5.

Final plans.

If a construction contract has not been awarded within two
years of approval, the approval shall not be valid. After approval, final plans and the
approval shall be deleted text beginfiled withdeleted text endnew text begin made available, if requested, tonew text end the commissioner of education.
If substantial changes are made to new text beginthe initial new text endapproved plans, documents reflecting
the changes shall be submitted to the commissioner for approval. Upon completing a
project, the school board shall certify to the commissioner that the project was completed
according to the approved plans.

Sec. 5.

Minnesota Statutes 2010, section 123B.72, subdivision 3, is amended to read:


Subd. 3.

Certification.

Prior to occupying or reoccupying a school facility affected
by this section, a school board or its designee shall submit a document prepared by a
system inspector to the building official or to the commissioner, verifying that the facility's
heating, ventilation, and air conditioning system has been installed and operates according
to design specifications and code, according to section 123B.71, subdivision 9, clause
deleted text begin (11)deleted text endnew text begin (12)new text end. A systems inspector shall also verify that the facility's design will provide
the ability for monitoring of outdoor airflow and total airflow of ventilation systems in
new school facilities and that any heating, ventilation, or air conditioning system that is
installed or modified for a project subject to this section must provide a filtration system
with a current ASHRAE standard.

Sec. 6.

Minnesota Statutes 2010, section 126C.40, subdivision 1, is amended to read:


Subdivision 1.

To lease building or land.

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

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

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

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

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

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

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

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

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

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

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

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

(i) In addition to the allowable capital levies in paragraph (a), new text beginfor taxes payable in
2012,
new text enda district that is a member of the "Technology and Information Education Systems"
data processing joint board, that finds it economically advantageous to enter into a lease
deleted text begin purchasedeleted text end agreement deleted text beginfordeleted text endnew text begin to finance improvements tonew text end a building for a group of school
districts or special school districts for staff development purposes, may levy for its portion
of lease costs attributed to the district within the total levy limit in paragraph (e).new text begin The total
levy authority under this paragraph shall not exceed $632,000.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2012.
new text end

Sec. 7.

Laws 1999, chapter 241, article 4, section 25, is amended by adding a
subdivision to read:


new text begin Subd. 3. new text end

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 8. new text beginEARLY REPAYMENT.
new text end

new text begin A school district that received a maximum effort capital loan prior to January 1,
1997, may repay the full outstanding original principal on its capital loan prior to July 1,
2012, and the liability of the district on the loan is satisfied and discharged and interest
on the loan ceases.
new text end

Sec. 9. 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, 2011, may submit an
application for health and safety revenue for taxes payable in 2012 in the form and manner
specified by the commissioner of education.
new text end

Sec. 10. new text beginAPPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are
appropriated from the general fund to the Department of Education for the fiscal years
designated.
new text end

new text begin Subd. 2. new text end

new text begin Health and safety revenue. new text end

new text begin For health and safety aid according to
Minnesota Statutes, section 123B.57, subdivision 5:
new text end

new text begin $
new text end
new text begin 111,000
new text end
new text begin .....
new text end
new text begin 2012
new text end
new text begin $
new text end
new text begin 114,000
new text end
new text begin .....
new text end
new text begin 2013
new text end

new text begin The 2012 appropriation includes $39,000 for 2011 and $72,000 for 2012.
new text end

new text begin The 2013 appropriation includes $48,000 for 2012 and $66,000 for 2013.
new text end

new text begin Subd. 3. new text end

new text begin Debt service equalization. new text end

new text begin For debt service aid according to Minnesota
Statutes, section 123B.53, subdivision 6:
new text end

new text begin $
new text end
new text begin 11,022,000
new text end
new text begin .....
new text end
new text begin 2012
new text end
new text begin $
new text end
new text begin 19,484,000
new text end
new text begin .....
new text end
new text begin 2013
new text end

new text begin The 2012 appropriation includes $2,604,000 for 2011 and $8,418,000 for 2012.
new text end

new text begin The 2013 appropriation includes $5,611,000 for 2012 and $13,873,000 for 2013.
new text end

new text begin Subd. 4. new text end

new text begin Alternative facilities bonding aid. new text end

new text begin For alternative facilities bonding aid,
according to Minnesota Statutes, section 123B.59, subdivision 1:
new text end

new text begin $
new text end
new text begin 17,359,000
new text end
new text begin .....
new text end
new text begin 2012
new text end
new text begin $
new text end
new text begin 19,287,000
new text end
new text begin .....
new text end
new text begin 2013
new text end

new text begin The 2012 appropriation includes $5,786,000 for 2011 and $11,573,000 for 2012.
new text end

new text begin The 2013 appropriation includes $7,714,000 for 2012 and $11,573,000 for 2013.
new text end

new text begin Subd. 5. new text end

new text begin Equity in telecommunications access. new text end

new text begin For equity in telecommunications
access:
new text end

new text begin $
new text end
new text begin 3,750,000
new text end
new text begin .....
new text end
new text begin 2012
new text end
new text begin $
new text end
new text begin 3,750,000
new text end
new text begin .....
new text end
new text begin 2013
new text end

new text begin If the appropriation amount is insufficient, the commissioner shall reduce the
reimbursement rate in Minnesota Statutes, section 125B.26, subdivisions 4 and 5, and the
revenue for fiscal years 2012 and 2013 shall be prorated.
new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
new text end

new text begin Subd. 6. new text end

new text begin Deferred maintenance aid. new text end

new text begin For deferred maintenance aid, according to
Minnesota Statutes, section 123B.591, subdivision 4:
new text end

new text begin $
new text end
new text begin 2,234,000
new text end
new text begin .....
new text end
new text begin 2012
new text end
new text begin $
new text end
new text begin 2,972,000
new text end
new text begin .....
new text end
new text begin 2013
new text end

new text begin The 2012 appropriation includes $676,000 for 2011 and $1,558,000 for 2012.
new text end

new text begin The 2013 appropriation includes $1,038,000 for 2012 and $1,934,000 for 2013.
new text end

ARTICLE 5

NUTRITION AND ACCOUNTING

Section 1.

Minnesota Statutes 2010, section 16A.152, subdivision 2, 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 (a), 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.

Sec. 2.

Minnesota Statutes 2010, section 123B.75, subdivision 5, is amended to read:


Subd. 5.

Levy recognition.

(a) For fiscal years 2009 and 2010, 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, paragraph
(a), and 3
, paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48,
subdivision 6
; plus

(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).

(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:

(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) the greater of 48.6 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

(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, paragraph
(a), and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48,
subdivision 6; plus

(iii) 48.6 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,
deleted text begin not including the levy portions that are assumed by the state,deleted text end that remains after subtracting
the referendum levy certified according to section 126C.17 and the amount recognized
according to item (ii).

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2010, section 124D.11, subdivision 9, is amended to read:


Subd. 9.

Payment of aids to charter schools.

(a) Notwithstanding section
127A.45, subdivision 3, new text beginif the current year aid payment percentage under section
127A.45, subdivision 2, paragraph (d), is 90 or greater,
new text endaid payments for the current
fiscal year to a charter school shall be of an equal amount on each of the 24 payment
dates.new text begin Notwithstanding section 127A.45, subdivision 3, if the current year aid payment
percentage under section 127A.45, subdivision 2, paragraph (d), is less than 90, aid
payments for the current fiscal year to a charter school shall be of an equal amount on
each of the 16 payment dates in July through February.
new text end

(b) Notwithstanding paragraph (a) and section 127A.45, for a charter school ceasing
operation on or prior to June 30 of a school year, for the payment periods occurring after
the school ceases serving students, the commissioner shall withhold the estimated state aid
owed the school. The charter school board of directors and authorizer must submit to the
commissioner a closure plan under chapter 308A or 317A, and financial information about
the school's liabilities and assets. After receiving the closure plan, financial information,
an audit of pupil counts, documentation of lease expenditures, and monitoring of special
education expenditures, the commissioner may release cash withheld and may continue
regular payments up to the current year payment percentages if further amounts are
owed. If, based on audits and monitoring, the school received state aid in excess of the
amount owed, the commissioner shall retain aid withheld sufficient to eliminate the aid
overpayment. For a charter school ceasing operations prior to, or at the end of, a school
year, notwithstanding section 127A.45, subdivision 3, preliminary final payments may
be made after receiving the closure plan, audit of pupil counts, monitoring of special
education expenditures, documentation of lease expenditures, and school submission of
Uniform Financial Accounting and Reporting Standards (UFARS) financial data for the
final year of operation. Final payment may be made upon receipt of audited financial
statements under section 123B.77, subdivision 3.

(c) If a charter school fails to comply with the commissioner's directive to return,
for cause, federal or state funds administered by the department, the commissioner may
withhold an amount of state aid sufficient to satisfy the directive.

(d) If, within the timeline under section 471.425, a charter school fails to pay the state
of Minnesota, a school district, intermediate school district, or service cooperative after
receiving an undisputed invoice for goods and services, the commissioner may withhold
an amount of state aid sufficient to satisfy the claim and shall distribute the withheld
aid to the interested state agency, school district, intermediate school district, or service
cooperative. An interested state agency, school district, intermediate school district, or
education cooperative shall notify the commissioner when a charter school fails to pay an
undisputed invoice within 75 business days of when it received the original invoice.

(e) Notwithstanding section 127A.45, subdivision 3, and paragraph (a), 80 percent
of the start-up cost aid under subdivision 8 shall be paid within 45 days after the first day
of student attendance for that school year.

(f) In order to receive state aid payments under this subdivision, a charter school in
its first three years of operation must submit a school calendar in the form and manner
requested by the department and a quarterly report to the Department of Education. The
report must list each student by grade, show the student's start and end dates, if any,
with the charter school, and for any student participating in a learning year program,
the report must list the hours and times of learning year activities. The report must be
submitted not more than two weeks after the end of the calendar quarter to the department.
The department must develop a Web-based reporting form for charter schools to use
when submitting enrollment reports. A charter school in its fourth and subsequent year of
operation must submit a school calendar and enrollment information to the department in
the form and manner requested by the department.

(g) Notwithstanding sections 317A.701 to 317A.791, upon closure of a charter
school and satisfaction of creditors, cash and investment balances remaining shall be
returned to the state.

Sec. 4.

Minnesota Statutes 2010, 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.

Sec. 5.

Minnesota Statutes 2010, 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.

Sec. 6.

Minnesota Statutes 2010, section 127A.441, is amended to read:


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

new text begin (a) new text endEach 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 (a) or (b), minus (2)
the amount the district recognized as revenue for the current fiscal year pursuant to section
123B.75, subdivision 5, paragraph (a) or (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.

new text begin (b) The commissioner shall schedule the timing of the adjustments under paragraph
(a) as close to the end of the fiscal year as possible.
new text end

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 for fiscal year 2011 and later.
new text end

Sec. 7.

Minnesota Statutes 2010, section 127A.45, subdivision 2, is amended to read:


Subd. 2.

Definitions.

(a) "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) "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) "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 73 in fiscal year 2010deleted text begin,deleted text endnew text begin andnew text end 70 in
fiscal year 2011, and deleted text begin90deleted text endnew text begin 60new text end in fiscal years 2012 and later.

Sec. 8.

Minnesota Statutes 2010, section 127A.45, subdivision 3, is amended to read:


Subd. 3.

Payment dates and percentages.

(a) The commissioner shall pay to a
district on the dates indicated an amount computed as follows: the cumulative amount
guaranteed minus the sum of (1) the district's other district receipts through the current
payment, and (2) the 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

(b) In addition to the amounts paid under paragraph (a), the commissioner shall pay
to a new text beginschool new text enddistrict 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 (c) In addition to the amounts paid under paragraph (a), the commissioner shall pay
to a charter school on the dates indicated an amount computed as follows:
new text end

new text begin Payment 1
new text end
new text begin July 15: 75 percent of the final adjustment for the prior fiscal year for
all aid entitlements
new text end
new text begin Payment 8
new text end
new text begin October 30: 25 percent of the final adjustment for the prior fiscal year
for all aid entitlements
new text end

Sec. 9.

Minnesota Statutes 2010, 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. 10. new text beginLEVY AID RECOGNITION TIMING.
new text end

new text begin Notwithstanding Minnesota Statutes, section 127A.441, paragraph (b), the
commissioner of education shall schedule the portion of the aid adjustment for fiscal year
2011 attributable to the exclusion of levy portions assumed by the state from the levy
recognition calculation under Minnesota Statutes, section 123B.75, subdivision 5, to occur
with the final payment for fiscal year 2011 made on October 30, 2011.
new text end

Sec. 11. new text beginFUND TRANSFER; FISCAL YEARS 2012 AND 2013 ONLY.
new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 123B.80, subdivision 3, for fiscal
years 2012 and 2013 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 or the food 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

Sec. 12. new text beginAPPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are
appropriated from the general fund to the Department of Education for the fiscal years
designated.
new text end

new text begin Subd. 2. new text end

new text begin School lunch. new text end

new text begin For school lunch aid according to Minnesota Statutes,
section 124D.111, and Code of Federal Regulations, title 7, section 210.17:
new text end

new text begin $
new text end
new text begin 12,626,000
new text end
new text begin .....
new text end
new text begin 2012
new text end
new text begin $
new text end
new text begin 12,878,000
new text end
new text begin .....
new text end
new text begin 2013
new text end

new text begin Subd. 3. new text end

new text begin School breakfast. new text end

new text begin For traditional school breakfast aid under Minnesota
Statutes, section 124D.1158:
new text end

new text begin $
new text end
new text begin 4,759,000
new text end
new text begin .....
new text end
new text begin 2012
new text end
new text begin $
new text end
new text begin 4,875,000
new text end
new text begin .....
new text end
new text begin 2013
new text end

new text begin Subd. 4. new text end

new text begin Kindergarten milk. new text end

new text begin For kindergarten milk aid under Minnesota Statutes,
section 124D.118:
new text end

new text begin $
new text end
new text begin 1,084,000
new text end
new text begin .....
new text end
new text begin 2012
new text end
new text begin $
new text end
new text begin 1,105,000
new text end
new text begin .....
new text end
new text begin 2013
new text end

new text begin Subd. 5. new text end

new text begin Summer food service replacement aid. new text end

new text begin For summer food service
replacement aid under Minnesota Statutes, section 124D.119:
new text end

new text begin $
new text end
new text begin 150,000
new text end
new text begin .....
new text end
new text begin 2012
new text end
new text begin $
new text end
new text begin 150,000
new text end
new text begin .....
new text end
new text begin 2013
new text end

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

new text begin Minnesota Statutes 2010, section 127A.46, new text end new text begin is repealed.
new text end

ARTICLE 6

LIBRARIES

Section 1.

Minnesota Statutes 2010, section 134.195, subdivision 8, is amended to read:


Subd. 8.

Funding.

The ordinance or resolution establishing the library shall
provide for joint financing of the library by the school district and the city. The city shall
provide a