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HF 3163

1st Engrossment - 86th Legislature (2009 - 2010) Posted on 03/17/2010 12:46pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to education; providing for prekindergarten through grade 12 education,
including general education, education excellence, and special programs;
authorizing rulemaking; requiring reports; amending Minnesota Statutes 2008,
sections 11A.16, subdivision 5; 120B.15; 122A.14, by adding a subdivision;
122A.16; 122A.18, subdivisions 1, 2; 122A.23, subdivision 2; 123B.12;
123B.75, subdivision 5; 124D.091, subdivisions 2, 3; 125A.21, subdivisions 3,
5, 7; 125A.79, subdivision 1; 127A.42, subdivision 2; 127A.43; 127A.45, by
adding a subdivision; Minnesota Statutes 2009 Supplement, sections 120B.30,
subdivisions 1, 3, 4; 120B.35, subdivision 3; 120B.36, subdivision 1; 122A.09,
subdivision 4; 123B.92, subdivision 1; 124D.10, subdivisions 3, 4, 6a, 23;
124D.11, subdivision 9; 125A.02, subdivision 1; 125A.63, subdivisions 2, 4, 5;
126C.41, subdivision 2; 126C.44; repealing Minnesota Statutes 2008, sections
122A.24; 125A.54.

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

ARTICLE 1

GENERAL EDUCATION

Section 1.

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


Subd. 5.

Calculation of income.

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

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

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

Sec. 2.

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


123B.12 INSUFFICIENT FUNDS TO PAY ORDERS.

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

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

Sec. 3.

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


Subd. 5.

Levy recognition.

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

(b) For fiscal year 2004 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) 31 percent of the referendum levy certified according to section 126C.17, in
calendar year 2000; and

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

Sec. 4.

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


Subdivision 1.

Definitions.

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

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

(1) the sum of:

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

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

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

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

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

(1) Regular transportation is:

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

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

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

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

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

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

(2) Excess transportation is:

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

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

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

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

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

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

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

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

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

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

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

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

(5) "Nonpublic nonregular transportation" is:

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

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


Subdivision 1.

Definitions.

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

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

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

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

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


Subd. 2.

Retired employee health benefits.

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

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

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

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

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

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

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

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

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

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

Sec. 7.

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


126C.44 SAFE SCHOOLS LEVY.

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

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

(c) A school district must set aside at least $3 per adjusted marginal cost pupil
unit of the safe schools levy proceeds for the purposes authorized under paragraph (a),
clause (6). deleted text beginThe 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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to certifications for fiscal year 2010.
new text end

Sec. 8.

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


new text begin Subd. 17. new text end

new text begin Payment to creditors. new text end

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

ARTICLE 2

EDUCATION EXCELLENCE

Section 1.

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


120B.15 GIFTED AND TALENTED STUDENTS PROGRAMS.

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

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

(1) multiple and objective criteria; and

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

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

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

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

Sec. 2.

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


Subdivision 1.

Statewide testing.

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

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

(1) mathematics;

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

(ii) high school level beginning in the 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 (b) are eligible to receive a high school diploma
deleted text begin with a passing state notationdeleted text end if they:

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

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

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

In addition, the school board granting the students their diplomas may formally
decide to include a notation of high achievement on the high school diplomas of those
graduating seniors who, according to established school board criteria, demonstrate
exemplary academic achievement during high school.

(e) The 3rd through 8th grade 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. 3.

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


Subd. 3.

Reporting.

The commissioner shall report test deleted text begindatadeleted text endnew text begin resultsnew text end publicly and
to stakeholders, including the performance achievement levels developed from students'
unweighted test scores in each tested subject and a listing of demographic factors that
strongly correlate with student performance.new text begin The test results must not include personally
identifiable information as defined in Code of Federal Regulations, title 34, section 99.3.
new text end
The commissioner shall also report data that compares performance results among school
sites, school districts, Minnesota and other states, and Minnesota and other nations. The
commissioner shall disseminate to schools and school districts a more comprehensive
report containing testing information that meets local needs for evaluating instruction
and curriculum.

Sec. 4.

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


Subd. 4.

Access to tests.

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

Sec. 5.

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


Subd. 3.

State growth target; other state measures.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin Subdivision 3, paragraph (e), applies to data that are collected
in the 2012-2013 school year and later and reported annually beginning July 1, 2013,
consistent with the recommendations the commissioner receives from recognized and
qualified experts on improving differentiated graduation rates, and establishing alternative
routes to a standard high school diploma for at-risk and off-track students.
new text end

Sec. 6.

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


Subdivision 1.

School performance report cards.

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

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


Subd. 4.

License and rules.

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

(b) The board must adopt rules requiring a person to deleted text beginsuccessfully completedeleted text endnew text begin passnew text end a
skills examination in reading, writing, and mathematics as a requirement for deleted text begininitial teacher
licensure
deleted text endnew text begin entrance into a board-approved teacher preparation programnew text end. Such rules must
require college and universities offering a board-approved teacher preparation program to
provide remedial assistance to persons who did not achieve a qualifying score on the skills
examination, including those for whom English is a second language.

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

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

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

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

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

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

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

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

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

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

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

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

new text begin (o) The board, consistent with section 122A.18, subdivision 4, paragraph (b), must
amend its licensure renewal rules to include professional reflection and growth in best
teaching practices in the preparation requirements for relicensure under this paragraph
and paragraphs (i), (k), (m), and (n), and any other preparation requirements applicable to
teachers seeking to renew their continuing license from the board.
new text end

new text begin (p) The board, consistent with paragraph (d), must adopt rules for approving
programs that allow qualified teacher candidates to teach in a Minnesota classroom on a
limited-term license, consistent with the following:
new text end

new text begin (1) the board may issue a limited-term license, which is not a full standard license,
to a qualified candidate one time for a period of up to two full school years so that the
person may teach in a Minnesota classroom;
new text end

new text begin (2) an approved program provider must be either a college or university with a
board-approved teacher preparation program or a nonprofit corporation established for
an education-related purpose and subject to chapter 317A that forms a partnership with
a college or university with a board-approved teacher preparation program and must be
selective in accepting candidates for a limited-term license;
new text end

new text begin (3) a candidate for a limited-term license must have at least a bachelor's degree and
must pass the required teacher licensure exams in skills, content, and pedagogy under this
section before the program provider may recommend the candidate for a limited-term
license;
new text end

new text begin (4) the program provider and the employer must provide school-based experiences
for a teacher with a limited-term license and ensure that the teacher is supervised, observed,
mentored, and evaluated throughout the time the teacher is teaching in a classroom;
new text end

new text begin (5) each full school year that a teacher with a limited-term license is employed to
teach in a Minnesota school is one year of the teacher's first probationary employment
period;
new text end

new text begin (6) a teacher with a limited-term license may be the teacher of record in a Minnesota
school for up to two full school years and is a qualified teacher under section 122A.16; and
new text end

new text begin (7) a teacher with a limited-term license must successfully complete board-authorized
work samples before the program provider may recommend to the board that it issue
the teacher a full standard license.
new text end

new text begin The board's rules must allow it to issue limited-term licenses to candidates
recommended by research-based, innovative teacher preparation and licensure programs
that the board approves under this paragraph. The rules must allow the board to grant
initial approval to a program provider and make continuing approval contingent on the
program provider meeting the same program accountability and candidate competency
measures that all other program providers must meet for board approval under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to all new and amended rules proposed by the Board of Teaching, including all
new and amended rules that are not yet formally adopted, except that the amendments
to paragraphs (i) and (o) apply to licensees seeking relicensure beginning June 30, 2012.
This section does not affect the requirement that the Board of Teaching continue to finally
adopt rules initially proposed before the effective date of this section, to implement the
requirement of Laws 2003, chapter 129, article 1, section 10, and of Laws 2007, chapter
146, article 2, section 34, that the board adopt rules relating to credentials for education
paraprofessionals.
new text end

Sec. 8.

Minnesota Statutes 2008, section 122A.14, is amended by adding a subdivision
to read:


new text begin Subd. 10. new text end

new text begin Rules incorporating national standards. new text end

new text begin The Board of School
Administrators must engage in rulemaking to incorporate national standards into the
licensing standards for principals. The rules must address national standards for effective
school leadership.
new text end

Sec. 9.

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


122A.16 HIGHLY QUALIFIED TEACHER DEFINED.

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

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

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

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

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

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

(4) test results from the deleted text beginPraxis IIdeleted text end new text beginsubject area new text endcontent test;

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

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

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

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

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

Sec. 10.

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


Subdivision 1.

Authority to license.

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

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

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

new text begin (d) The Board of Teaching and the Department of Education must enter into a data
sharing agreement to share educational data at the K-12 level for the limited purpose
of program approval and improvement for teacher education programs. The program
approval process must include targeted redesign of teacher preparation programs to
address identified K-12 student areas of concern. The Board of Teaching must ensure
that this information remains confidential and shall only be used for this purpose. Any
unauthorized disclosure shall be subject to a penalty.
new text end

new text begin (e) The Board of School Administrators and the Department of Education must enter
into a data sharing agreement to share educational data at the K-12 level for the limited
purpose of program approval and improvement for education administration programs.
The program approval process must include targeted redesign of education administration
preparation programs to address identified K-12 student areas of concern. The Board of
School Administrators must ensure that this information remains confidential and shall
only be used for this purpose. Any unauthorized disclosure shall be subject to a penalty.
new text end

Sec. 11.

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


Subd. 2.

Teacher and support personnel qualifications.

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

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

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

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

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

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

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

new text begin (e) All colleges and universities approved by the Board of Teaching to prepare
persons for teacher licensure must require online pedagogy and at least one online course
to be completed by all persons recommended for teacher licensure.
new text end

new text begin (f) The Board of Teaching must ensure the K-12 teacher licensing standards maintain
a high level of alignment with the K-12 student standards. The Board of Teaching must
adopt a review cycle that mirrors the K-12 student standards review cycle under section
120B.023, subdivision 2. The teacher standards must be reviewed and aligned with the
K-12 student standards within one year of the final review and adoption of the K-12
student standards.
new text end

Sec. 12.

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


Subd. 2.

Applicants licensed in other states.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Sec. 13.

Minnesota Statutes 2008, 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 districtnew text begin: (1)new text end are accredited by the National Alliance of Concurrent
Enrollment Partnershipdeleted text begin,deleted text endnew text begin or arenew text end in the process of being accrediteddeleted text begin, ordeleted text endnew text begin; (2)new text end are shown by
clear evidence to be of comparable standard to accredited coursesnew text begin; or (3) 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. 14.

Minnesota Statutes 2008, section 124D.091, subdivision 3, is amended to read:


Subd. 3.

Aid.

An eligible district shall receive new text beginup to new text end$150 per pupil enrolled in deleted text beginadeleted text end
new text begin an eligible new text endconcurrent enrollment course. The money must be used to defray the cost of
delivering the course at the high school. The commissioner shall establish application
procedures and deadlines for receipt of aid payments.

Sec. 15.

Minnesota Statutes 2009 Supplement, section 124D.10, subdivision 3, is
amended to read:


Subd. 3.

Authorizer.

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

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

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

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

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

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

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

(2) a charitable organization under section 501(c)(3) of the Internal Revenue
Code of 1986, excluding a nonpublic sectarian or religious institutiondeleted text begin,deleted text endnew text begin without an
approved affidavit by the commissioner prior to July 1, 2009, and
new text end any person other than a
natural person that directly or indirectly, through one or more intermediaries, controls,
is controlled by, or is under common control with the nonpublic sectarian or religious
institution, and any other charitable organization under this clause that in the federal IRS
Form 1023, Part IV, describes activities indicating a religious purpose, that:

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

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

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

(iv) is incorporated in the state of Minnesota;

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

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

(5) no more than three single-purpose sponsors that are charitable, nonsectarian
organizations formed under section 501(c)(3) of the Internal Revenue Code of 1986 and
incorporated in the state of Minnesota whose sole purpose is to charter schools. Eligible
organizations interested in being approved as a sponsor under this paragraph must submit a
proposal to the commissioner that includes the provisions of paragraph (c) and a five-year
financial plan. Such authorizers shall consider and approve applications using the criteria
provided in subdivision 4 and shall not limit the applications it solicits, considers, or
approves to any single curriculum, learning program, or method.

(c) An eligible authorizer under this subdivision must apply to the commissioner for
approval as an authorizer before submitting any affidavit to the commissioner to charter
a school. The application for approval as a charter school authorizer must demonstrate
the applicant's ability to implement the procedures and satisfy the criteria for chartering a
school under this section. The commissioner must approve or disapprove an application
within 60 business days of the application deadline. If the commissioner disapproves
the application, the commissioner must notify the applicant of the deficiencies and the
applicant then has 20 business days to address the deficiencies to the commissioner's
satisfaction. Failing to address the deficiencies to the commissioner's satisfaction makes
an applicant ineligible to be an authorizer. The commissioner, in establishing criteria for
approval, must consider the applicant's:

(1) capacity and infrastructure;

(2) application criteria and process;

(3) contracting process;

(4) ongoing oversight and evaluation processes; and

(5) renewal criteria and processes.

(d) The deleted text beginaffidavitdeleted text endnew text begin application for approvalnew text end to be submitted to and evaluated by the
commissioner must include at least the following:

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

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

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

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

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

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

(iv) the school's governance plan;

(v) the financial management plan; and

(vi) the administration and operations plan;

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

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

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

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

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

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

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

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

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

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

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

(3) unsatisfactory performance as an approved authorizer.

Sec. 16.

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


Subd. 4.

Formation of school.

(a) An authorizer, after receiving an application from
a school developer, may charter a licensed teacher under section 122A.18, subdivision
1
, or a group of individuals that includes one or more licensed teachers under section
122A.18, subdivision 1, to operate a school subject to the commissioner's approval of the
authorizer's affidavit under paragraph (b). The school must be organized and operated
as a cooperative under chapter 308A or nonprofit corporation under chapter 317A and
the provisions under the applicable chapter shall apply to the school except as provided
in this section.

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

(b) Before the operators may establish and operate a school, the authorizer must file
an affidavit with the commissioner stating its intent to charter a school. An authorizer
must file a separate affidavit for each school it intends to charter. The affidavit must
state the terms and conditions under which the authorizer would charter a school and
how the authorizer intends to oversee the fiscal and student performance of the charter
school and to comply with the terms of the written contract between the authorizer
and the charter school board of directors under subdivision 6. The commissioner must
approve or disapprove the authorizer's affidavit within 60 business days of receipt of the
affidavit. If the commissioner disapproves the affidavit, the commissioner shall notify
the authorizer of the deficiencies in the affidavit and the authorizer then has 20 business
days to address the deficiencies. If the authorizer does not address deficiencies to the
commissioner's satisfaction, the commissioner's disapproval is final. Failure to obtain
commissioner approval precludes an authorizer from chartering the school that is the
subject of this affidavit.

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

(d) The operators authorized to organize and operate a school, before entering into a
contract or other agreement for professional or other services, goods, or facilities, must
incorporate as a cooperative under chapter 308A or as a nonprofit corporation under
chapter 317A and must establish a board of directors composed of at least five members
who are not related parties until a timely election for members of the ongoing charter
school board of directors is held according to the school's articles and bylaws under
paragraph (f). A charter school board of directors must be composed of at least five
members who are not related parties. Staff members employed at the school, including
teachers providing instruction under a contract with a cooperative, and all parents or legal
guardians of children enrolled in the school are the voters eligible to elect the members
of the school's board of directors. A charter school must notify eligible voters of the
school board election dates at least 30 days before the election. Board of director meetings
must comply with chapter 13D.

(e) Upon the request of an individual, the charter school must make available in
a timely fashion the minutes of meetings of the board of directors, and of members
and committees having any board-delegated authority; financial statements showing all
operations and transactions affecting income, surplus, and deficit during the school's last
annual accounting period; and a balance sheet summarizing assets and liabilities on the
closing date of the accounting period. A charter school also must post on its official Web
site information identifying its authorizer and indicate how to contact that authorizer and
include that same information about its authorizer in other school materials that it makes
available to the public.

(f) Every charter school board member shall attend department-approved training
on board governance, the board's role and responsibilities, employment policies and
practices, and financial management. A board member who does not begin the required
training within six months of being seated and complete the required training within 12
months of being seated on the board is ineligible to continue to serve as a board member.

(g) The ongoing board must be elected before the school completes its third year
of operation. Board elections must be held during a time when school is in session. The
charter school board of directors shall be composed of at least five nonrelated members
and include: (i) at least one licensed teacher employednew text begin and serving as a teachernew text end at the
school or a licensed teacher providing instruction under a deleted text begincontactdeleted text endnew text begin contractnew text end between the
charter school and a cooperative; (ii) the parent or legal guardian of a student enrolled
in the charter schoolnew text begin who is not employed by the charter schoolnew text end; and (iii) an interested
community member who is not employed by the charter school and does not have a child
enrolled in the school. The board may be a teacher majority board composed of teachers
described in this paragraph. The chief financial officer and the chief administrator deleted text beginaredeleted text endnew text begin may
only serve as
new text end ex-officio nonvoting board membersnew text begin and shall not serve as a voting member
of the board. Charter school employees or contractors shall not serve on the board unless
the employee is a licensed teacher for purposes of item (i) or clause (1)
new text end. Board bylaws
shall outline the process and procedures for changing the board's governance model,
consistent with chapter 317A. A board may change its governance model only:

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

(2) with the authorizer's approval.

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

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

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

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

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

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

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

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

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

Sec. 17.

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


Subd. 6a.

Audit report.

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

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

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

Sec. 18.

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


Subd. 23.

Causes for nonrenewal or termination of charter school contract.

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

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

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

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

(3) violations of law; or

(4) other good cause shown.

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

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

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

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

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

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

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

Sec. 19.

Minnesota Statutes 2009 Supplement, 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.

new text begin (g) Notwithstanding chapter 317A, a charter school may not pledge or assign state
aids to be received to a lender or creditor.
new text end

deleted text begin (g)deleted text endnew text begin (h)new text end 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. 20.

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


Subd. 2.

Violations of law.

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

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

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

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

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

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

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

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

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

Sec. 21.

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


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

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

Sec. 22. new text beginIMPLEMENTING DIFFERENTIATED GRADUATION RATE
MEASURES AND EXPLORING ALTERNATIVE ROUTES TO A STANDARD
DIPLOMA FOR AT-RISK AND OFF-TRACK STUDENTS.
new text end

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 23. new text beginRULEMAKING AUTHORITY.
new text end

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

Sec. 24. new text beginREPEALER.
new text end

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

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 3

SPECIAL PROGRAMS

Section 1.

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


Subdivision 1.

Child with a disability.

"Child with a disability" means a child
identified under federal and state special education law deleted text beginas having a hearing impairmentdeleted text endnew text begin
who meets the criteria for deaf and hard-of-hearing
new text end, deleted text beginblindness, visual disabilitydeleted text endnew text begin blind
or visually impaired
new text end, speech or language deleted text beginimpairmentdeleted text endnew text begin impairmentsnew text end, deleted text beginphysical disabilitydeleted text endnew text begin
physically impaired
new text end, other health deleted text beginimpairmentdeleted text endnew text begin disabilitiesnew text end, deleted text beginmentaldeleted text endnew text begin developmental cognitivenew text end
disability, deleted text beginemotional/behavioral disorderdeleted text endnew text begin emotional or behavioral disordersnew text end, specific
learning disability, autismnew text begin spectrum disordersnew text end, traumatic brain injury, deleted text beginmultiple disabilitiesdeleted text endnew text begin
severely multiply impaired
new text end, or deafblind deleted text begindisabilitydeleted text endnew text begin andnew text end who needs special education
and related services, as determined by the rules of the commissionerdeleted text begin, is a child with a
disability
deleted 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 2008, section 125A.21, subdivision 3, is amended to read:


Subd. 3.

Use of reimbursements.

Of the reimbursements received, districts may:

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

(2) regularly obtain from education- and health-related entities training and other
appropriate technical assistance designed to improve the district's ability to deleted text begindetermine
which services are reimbursable and to seek timely reimbursement in a cost-effective
manner
deleted text endnew text begin access third-party payments for individualized education program health-related
services
new text end; or

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

Sec. 3.

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


Subd. 5.

Informed consent.

When obtaining informed consent, consistent with
sections 13.05, subdivision 4, paragraph (d)deleted text begin; and 256B.77, subdivision 2, paragraph (p)deleted text endnew 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. 4.

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


Subd. 7.

District disclosure of information.

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

Sec. 5.

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


Subd. 2.

Programs.

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

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

Sec. 6.

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


Subd. 4.

Advisory committees.

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

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

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

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

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

Sec. 7.

Minnesota Statutes 2009 Supplement, section 125A.63, subdivision 5, is
amended to read:


Subd. 5.

Statewide hearing loss early education intervention coordinator.

(a)
The coordinator shall:

(1) collaborate with the early hearing detection and intervention coordinator for the
Department of Health, the director of the Department of Education Resource Center for
Deaf and Hard-of-Hearing, and the Department of Health Early Hearing Detection and
Intervention Advisory Council;

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

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 8. 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. 9. new text begin REPEALER.
new text end

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